Consumer Behaviour Model 2

8/11/2019 Consumer Behaviour Model 2

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Copyright Atomic Dog Publishing, 2002

Chapter Spotlights Consumer benefits

Total product concept

Market segmentation and segmentationstrategies

Positioning

Consumer decision-making Engel, Kollat, and Blackwell (EKB)

Model


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Course Objectives Better understand why people do what they

do in the marketplace when they do it

Better understand yourself as a shopper,buyer, and consumer

Improve yourself as a shopper, buyer, andconsumer

Improve your current/future job performance Better understand marketer communications

and behaviors in the marketplace


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Consumer Benefits People do not buy products or services,

they buy benefits

Hence we make purchases not for theproducts themselves, but for thebenefits of the problems they solve orthe opportunities they offer e.g., always late so a watch helps solve

problem; has stopwatch feature so nowcan keep track of work out times


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Consumer Benefits Consumers seek

bundles of types ofbenefits:

Tangible benefits: e.g., awatch keeps good time;has leather band

Intangible benefits: e.g.,the reliability reputationof the watchmanufacturer; the imageof the watch wearer


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The Total Product Concept Total product: refers to the sum of benefits offered

by a product, service, outlet, etc. Basic core: bundle of utilitarian benefits (e.g., design,

features, etc.) Accessory ring: added-value benefits with no apparent extra

cost (e.g., store reputation, manufacturer prestige,convenient location, etc.)

Psychological ring: benefits resulting from the consumersfeelings associated with owning/using the product (e.g.,belonging, youthful, powerful, sexy, etc.)

Time: products/service give or take time; this can begood or bad (e.g., fast food versus conventionalrestaurant)


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Market Segmentation Market segmentation is the study of the

marketplace in order to discover already

existing viable groups of consumerswho are similar or homogeneous intheir approaches to choosing and/or

consuming goods and services.



Segment Bounding Segment bounding is a means by which

marketers differentiate among consumersand among market segments Determine the descriptors of the

consumers/units in the segment (e.g.,demographics, psychographics, benefits sought,product usage rate, type of retail outlet, etc.)

Determine specific geographic location ofsegment

Bound segments in time to ensure that all datais relevant and up to date for the time of use.



Segment Viability Four factors are

used to assess

segment viability.Viable segmentsare:

Of sufficient size

Measurable

Differentiated

Reachable


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Segmentation in the Global

Marketplace There are two approaches to market

segmentation

Localization: treating each country as a separatemarket and seeking consumer segmentsaccordingly

Intermarket segmentation (also calledstandardization): selecting groups of consumers

who exhibit similar consumption behavior acrossdifferent countries Marketers emphasize similarities rather than differences

across country markets



Consumer Benefits and

Product Positioning Product positioning is the placement of a product,

service, outlet, etc. in the mind of the consumer

There are five ways used to position products,

services, outlets, etc. On perceived benefits

On image

On attributes

Against competitors

Combination of two or more of the above

Repositioning: shifting position in the consumersmind through changes in important product, price,distribution, and promotional and/or personal selling

benefits.



The Consumer Decision-

Making Process A consumer decision model

is a means of describingthe processes that

consumers go throughbefore, during, and aftermaking a purchase(choice).

A model shows the causesor antecedentsof aparticular behavior andeach of its results orconsequences.



Engel, Kollat, and Blackwell

(EKB) Model The EKB model is comprehensive and

shows the components of decision

making and the relationships andinteractions among them.

The five distinct parts of consumerdecision making presented are: Input, information processing, a decision

process, decision process variables, andexternal influences



Input Input includes all kinds of stimuli from

our contact with the world around us:

Our experiences, contact with others

Marketer-controlled stimuli (e.g.,advertising, store display, demonstrations)

Other stimuli (e.g., personal recollections,conversations with friends)

External search


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Decision Process

It is triggered at any time during informationprocessing

It consists of five steps: Problem recognition

Search

Alternative evaluation

Choice

Outcomes (post-purchase evaluation andbehavior)



Decision Process Variables

Those individual qualities that makepeople/consumers unique.

Decision process variables include

Motives Beliefs Attitudes Lifestyles Intentions Evaluative criteria Normative compliance and informational influence Other aspects of self


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External Influences

Such influences arecalled Circles ofSocial Influence.They are: culture,sub-culture (co-culture), social class,reference groups,

and family orhouseholdinfluences

Documents

Consumer Behaviour Model 2