Consumer Behaviour Lecture 1

The Study of processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

• -Individual
• -Purchase for self, family friend, household

• -A business, government agency, or other institution (profit and not-for-profit)
• -Purchase for organization

Assumes that consumers are interested primarily in product availability at low prices.

Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features.

Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so.

Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition.

When the data is collected by the researcher specifically for the research question at hand.

When the researcher uses pre-existing data to anwser a new research question.

• -They convey image/ personality
• -help us to form bonds with others who share similar preferences

Process of dividing the market into subsets of consumers with common needs or characteristics.

The selection of one or more of the segments to pursue.

Developing a distinct image for the product in the mind of the consumer.

Product, Price, Place, Promotion.

• -Customer's Perceived benefits and the resources needed to obtain them
• -Relative and subjective
• -Value proposition

• -Perception vs. Expectations
•   -Loyalists
•   -Apostles
•   -Defectors
•   -Terrorists
•   -Mercenaries

• -The objective of providing value is to retain highly satisfied customers.
• -Loyal customers are key.

Psychological dependency on products or services. Ex// Alcohol, smoking, drugs.

The process of grouping customers within a market according to similar needs, habits or attitudes that can be addressed through marketing.

Ex// Benefits sought , rate of usage, attitude toward product and usage, price sensitivity.

Age, Gender, family status, household size, income, occupation, education.

Location, distance, climate.

Lifestyle, activities, interests

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Concentrated on one segment.

Several segments with individual marketing targets.

Physiological (or biogenic) needs that are considered primary needs or motives.

Generally psychological (or psychogenic) needs that are considered secondary needs or motives

• -The general categories of goals that consumers see as a way to fulfill their needs.
• -Ex// "I want to get a graduate degree."

• -The specifically branded products or services that consumers select as their goals.
• Ex// "I want to get an MBA in Marketing from Kellogg School of Management."

• -Personal experiences
• -Physical capacity
• -Prevailing cultural norms and values
• -Goal's accessibility in the physical and social environment.

A positive goal toward which behaviour is directed.

A negative goal from which behaviour is directed away.

Rationality implies that consuimers select goals based on totally objective criteria such as size, weight, price, or miles per gallon.

• The selection of goals according to personal or subjective criteria.
• -These can be powerful.

Failure to achieve a goal may result in frustration. Some adapt; others adopt defense mechanisms to protect their ego.

• -Aggression
• -Rationalization
• -Regression
• -Withdrawal
• -Projection
• -Identification
• -Repression

• -Physiological arousal
• -Emotional arousal
• -Cognitive arousal
• -Environmental arousal

Bodily needs at any one specific moment in time.

Ex// An advertisement that provides reminders of home might trigger instant yearning to speak with one's parents.

• -Behaviour is response to stimulus
• -Elements of conscious thoughts are to be ignored
• -Consumer does not act, but reacts.
• Ex// A buyer who buys on impulse.

• - Behavior is directed at goal achievement
• -Need to consider needs, attitudes, beliefs, etc. in understanding consumer behavior.

• -Self Actualization (Self-fulfillment)
• -Ego Needs (Prestige, status, self-esteem)
• -Social Needs (affection, friendship, belonging)
• -Safety and Security Needs (Protection, order, stability)
• -Physiological Needs (Food, air, water, shelter)

• -Power- individual's desire to control environment.
• -Affiliation- Need for friendship, acceptance and belonging.
• -Achievenment-Need for personal accomplishment, closely related to egoistic and self-actualization needs.