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