Consumer Behavior

Prof. Dr Ehab M. ABOU AISH

Prof. of Marketing

Agenda

• Opening introduction

• Know:

- Consumer behavior and marketing concept

- Applications of CB

- The consumers’ rights

• Understand

- The process of how CB help in building marketing

strategy

- The nature and mechanism of CB

- Research Trends in CB

- The consumers rights

Dr ABOU AISH 2

Dr ABOU AISH 3

The Course Objectives

• Gain in-depth knowledge and understanding of

consumers, their behavior and how to affect it

Dr ABOU AISH 4

The Course Implementation Plan

The Text and Extra Materials

• See the course outline

Dr ABOU AISH 5

The Term-Project

As a team

• You will develop a comprehensive research paper about different consumer-behavior related issues.

• You will receive detailed guidelines for your project phases, deadlines, contents and deliverables during your tutorials.

Dr ABOU AISH 6

The Mid-term and Final Exams

• Mid-term will be computerized closed book exam

• Final exam will be computerized closed book exam

(or A case and open book exam, will be decided

later)

Dr ABOU AISH 7

Consumer Behavior Definition

• Is the study of individuals, groups or

organizations and the process they use to select,

secure, use and dispose of products, services,

experiences or ideas to satisfy the needs and the

impacts that these process have on the consumer

and the society

Dr ABOU AISH 8

Applications of CB

• Marketing Strategy (Companies)

• Regulatory Policies (Government)

• Social Marketing (NGO)

• Informed Individuals (Customers)

Dr ABOU AISH 9

Marketing Concepts

• Needs: a state of felt deprivation

• Wants: the form taken by a human need as shaped

by culture and individual personality (transformed

into desires to acquire products and services)

• Exchange: give something up in return of another

value

• Costs& Benefits: negative and positive results of

consumption

• Value: a personal assessment of the net worth

obtained from an activity “Relationship between

the benefits derived from the total product and the

costs of acquiring those products”

Dr ABOU AISH 10

Consumer Behavior and Marketing

Strategy

• To survive in a competitive environment the org.

must provide target customers with more Value

than its competitors in order to be in a Resources-

Advantage position

• Competition is the key for Consumer-Orientation

(Decision making in the organization priories

consumers satisfaction over other concerns) which

is a key component of Market-Oriented Culture

(organization culture focus on the importance of

creating value for customers among all employees)

Value

• Utilitarian value: The value derived from a

product that helps the customer with some tasks

• Hedonic value: The value derived from the

immediate gratification that comes from some

activity

Dr ABOU AISH 11

Low UV High UV

LOW HV Negative Position OK Position

High HV OK Position Super Position

Dr ABOU AISH 12

How CB help in building marketing strategy

Consumer Decision Process

Marketing Strategy (4/7P’s)

Market Segmentation STP (Needs-set or Total-Value Concept)

Market Analysis (Company, Competitors,

Conditions and Consumers “Perceptual Maps”)

Outcomes (Individual, Firm and Society)

Dr ABOU AISH 13

The Nature of Consumer Behavior Consumer Value Framework (CVF)

External Influences

-Culture -Subculture -Families -Groups Self-

concept and Life

style (Quality and Switching ..)

Decision Process

(Situation)

- Problem recognition - Information Search - Pre-purchase evaluation - outlet selection and purchase - Post-purchase process

Internal Influences

-Personality -Learning -Emotions -Attitude

The Consumers’ Rights

• The six basic consumers’ rights are:

- The right to be safe

- The right to choose freely

- The right to be heard

- The right to be informed

- The right to education

- The right to service

Dr ABOU AISH 14

Trends in Consumer Research

• Consumer Social Responsibility

(CnSR) ([1]responsible living [counterfeits –

software piracy] [2] Sustainable Consumption)

• Transformative Consumer Research

(TCR) ([1]vulnerable populations (e.g., the poor,

illiterate, elderly, etc.), [2] negative consumer

behaviors (e.g., smoking, poor nutritional habits,

high-risk behaviors, etc.), [3] and positive

consumer behaviors (e.g., environmentally

responsible behavior, volunteer work, organ

donation, etc.)

Dr ABOU AISH 15