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8/3/2019 A Brief History of Consumer Behaviour
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A Brief History of Consumer
Behaviour
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History of consumer behavior seems to be highly intertwined with the history of marketing thought.Over the years, marketing has shifted its reliance on other disciplines as well as its focus of
understanding. For example, the classical schools of marketing thought relied on the social sciences such
as economics, sociology and anthropology and focused oil aggregate market behavior. This gave way to
the managerial schools of marketing thought in which tire focus of attention and understanding shifted
to the individual customers while social sciences disciplines continued to dominate marketing thinking.
Eventually, marketing kept its focus on individual customers but began to borrow more and more from
the behavioral sciences. This resulted in what I will call as the behavioral schools of marketing thought.
Consumer Behaviour:INTRODUCTION
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Consumer Behaviour:Define Consumer Behavior?The activities directly involved in obtaining, consuming, and
disposing of products and services, including the decision
processes that precede and follow these actions
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Consumer Behaviour:Consumer BenefitsPeople do not buy products or services, they buy benefits. We make
purchases not for the products themselves, but for the problems they solve
or the opportunities they offer.
E.g., A watch offers different benefits to different people Tangible (attributes
of the watch) and intangible (such as reputation of the brand)
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Consumer Behaviour:
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Consumer Behaviour:Consumer Benefits and Product PositioningProduct positioning is the means through which marketers seek the right fit between aproduct and desired benefits
Three different ways of positioning products for targeted segments are:
On perceived benefits or image
Against competitors
Combination of the above
Repositioning: re-educating the consumer about changes in important product, price,
distribution, and promotional and/or personal selling benefits.
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The Consumer Decision-Making ProcessA consumer decision model is a means of describing the
processes that consumers go through before, during, and
after making a purchase. The EKB Model has been astandard in Consumer education.
Consumer Behaviour:
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Consumer Behaviour:The Consumer Decision - Making Process
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Consumer Behaviour:How Companies Can Get Into Consumers Consideration Sets -:Ask to be in the set
Adjust one of the 4Ps
Encourage consumers to consider its brand and
competitors brandAttraction effect: enhance odds of becoming consumer
choice by adding an inferior product to the consideration
set
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Consumer Behaviour:What Can Attitudes tell us about Consumers?1. Consumers who like sushi are likely to eat it
2. Consumers who like rich ice cream are likely
to eat it3. Consumers who like to eat healthy will be
likely to eat things that are not high in
calories.
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Consumer Behaviour:
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Consumer Behaviour:Development of a consumer culture A consumer culture is one in which a high level of economic
development is reflected in a high level of consumption of goods and
services by a majority of its members macro-consumption .
The goods often take on specific meanings or functions in society Consider the national epidemic of obesity .
How have portions of foods changed over time? Study findings from
National Heart, Lung, and Blood Institute Obesity Education Initiative
Super Size Me .
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Consumer Behaviour:The Effect of Consumption on the Quality of Life Consumers in higher income brackets own more
material possessions than those in lower brackets
Ownership of economic goods enhances subjective well
being (an indicator of quality of life) Satisfaction with life was found to increase with income
Life satisfaction was also found to be positively correlated
with the possession of material things (but only for
materialistic people)
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Consumer Behaviour:MANAGERIAL MARKETING AND CONSUMER BEHAVIOR
'Fire classical schools of marketing thought with their emphasis oil descriptive market behavior gave way to the
managerial schools of thought with their emphasis on controlling the market behavior.
The managerial schools of marketing thought emerged in the early fifties soon after World War If and tire
consequent unprecedented economic boom partly fueled up new product introductions. it generated such concepts
as the four Ps of marketing, marketing mix, product differentiation in market segmentation.
Tire managerial schools of marketing thought still relied on the social sciences but borrowed the more recent
concepts and methodologies. For example, it eagerly borrowed Concepts and methods of the emerging field ofmanagerial economics Which shifted focus away from demand theory to the theory of the firm, and especially the
concepts of monopolistic competition and product differentiation. Similarly, it latched onto the diffusion of
innovations traditions generated in economic anthropology.
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Consumer Behaviour:BEHAVIORAL MARKETING AND CONSUMER BEHAVIOR
Consumer behavior began to borrow both concepts and methods from clinical, social and organizational psychology
resulting in numerous theories of buying behavior, attitude research, family and organizational buying behavior as well aspsychographics and life style research.
Along with the substantive knowledge, consumer behavior also borrowed the research methods of t h e behavioral sciences.
These included motivation research (focused group interviews, projective techniques), laboratory experiments especially With
physiological behavioral measures such as pupil dilation and galvanic skin tests, and cross-sectional mail or telephone
surveys appropriate for attitude and psychographic research.
It is important to note that it is the behavioral schools of marketing which has been largely responsible for increasing the
Scientific sophistication of consumer behavior With respect to both theory development and theory testing procedures.
indeed, consumer behavior Matured significantly enough to assert its independence from marketing, and started the
movement t a establish its own association (ACR) and its own journals JCR).
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ThankYou