CONSUMER BEHAVIOUR

MKTG1204/2204

Chapter 1
Introduction to Consumer Behaviour

CHAPTER OBJECTIVES
1.

Consumer behavior is a process.

2.

M arketers need to understand the wants and needs of

different consumer segments.

3.

O ur choices as consumers relate in powerful ways to the

rest of our lives.

4.

O ur motivations to consume are complex and varied.

5.

Technology and culture create a new always on

consumer.

6.

M any different types of specialists study consumer

behavior.

7.

There are differing perspectives regarding how and what

we should understand about consumer behavior.

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WHAT IS CONSUMER BEHAVIOR?

Consumer behavior:
the study of the
processes involved
when individuals or
groups select,
purchase, use, or
dispose of products,
services, ideas, or
experiences to satisfy
needs and desires.
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FOR REFLECTION

How do you decide that you need a product?

What about a purchase makes it pleasant or

stressful for you?

When using the product, what determines if

the experience is pleasant?

1-5

WHAT IS MARKETING?

Creating and communicating

value

Finding, communicating and

sustaining that competitive
advantage that makes a
company great

Every business (e.g. accounting

firm, retailer, resources
company, consulting, banking,
start-ups, charities) NEEDS
marketing strategy to prosper

Underlying this research!

Advertising

Selling

Company
Strategy

Product
Design

Value
creation

Competitive
Analysis

Entrepreneurship

BIG INVESTMENT
bloomberg are-super-bowl-ads-

worth-the-cost?
Nissan superbowl ad

10 best superbowl ads 2015

MARKET RESEARCH SURVEY

Phone, online, mail, intercept, ...
Describe past behaviour
Factors influence decision-making
Expected future behaviour
Details about respondents
Age, gender, race, education, finances
Look for patterns:
Women, 30-45, income $50-100k buy...
Understand needs & communicate

BIG DATA
1-9

http://www.theguar
dian.com/medianetwork/medianetworkblog/video/2014/ma
r/19/changingmedia-summit2014-philip-clarketesco-ecommerce

UNDERSTANDING CONSUMERS IS
GOOD BUSINESS.
The study of the processes involved when:
individuals or groups
select, purchase, use, or dispose of
products, services, ideas, or experiences to
satisfy needs and desires.

Source: blogs.ubc.ca/davieswu/2011/02/10/why-is-coca-cola-so-addicting/

SEGMENTATION, TARGETING & POSITIONING (STP)

Segmentation: Dividing a
heterogeneous market into
a number of smaller,
homogeneous submarkets.

Target
Market

Targeting: Deciding on
the market segment that
can best be served.
Positioning : Setting the
competitive positioning
for the product and
creating a detailed
marketing mix to suit
the target segment.
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UNDERSTANDING CONSUMERS IS GOOD

BUSINESS.
Satisfy needs
Segment consumers
o

Demographics (who)

Observable statistics
Age, gender, income,...

Psychographics (why)

Attitudes, interests, opinions, lifestyles

What we value, what we like to do, the way we feel
about ourselves
Profile segment based on lifestyle, culture, subculture,
ethnicity, values, beliefs, hobbies, religious or political
affiliation

Product Usage (heavy, specific users)

o Benefits (outcome to consumer)
o

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BLIND-TASTE TEST
HTTP://WWW.HUFFINGTONPOST.COM/TASTE/

54% distinguish Diet Coke vs Coca-Cola Zero (preference 50/50)

Specific comments:

Diet Coke: "Tastes fake right away." "Much fresher brighter, crisper."
"Has the wonderful flavors of Diet Coke's artificial sweeteners."

Coca-Cola Zero: "Has more of a sharply sweet aftertaste I associate

with diet sodas." "Tastes more like regular coke, less like fake
sweetener." "Has an odd taste." "Tastes more like regular." "Very sweet."

Overall comments: "That was a lot more difficult than I though it would
be." "Both equally palatable." A few people said Diet Coke tasted much better
... but, they were actually referring to Coca-Cola Zero.
How do people choose between one or the other?
It is either a matter of personal taste, or maybe the marketing
campaigns will influence their choice.

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REDNECK BANK TARGETS BY SOCIAL CLASS

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NEEDS &
MOTIVATION

Needs may be utilitarian or hedonic

The desired end state is the goal
The degree of arousal is drive
Personal and cultural factors combine to
create a want one manifestation of a need
Motivation is described in terms of strength
and direction

LEVELS OF NEEDS IN MASLOW HIERARCHY

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CLASSIFYING CONSUMER NEEDS

NEED FOR ACHIEVEMENT

Value personal accomplishment
o Desire products that signify success (luxury brands,
technology products)
o

NEED FOR POWER

o
o

Control ones environment

Desire products that allow mastery over our
surroundings (SUVs over the elements, luxury resorts to
pamper our whims)
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CLASSIFYING CONSUMER NEEDS

NEED FOR AFFILIATION

o

For the company of other people

Desire products that are used in groups (team sports,

cafes, hanging out at shopping centres or bars)

NEED FOR UNIQUENESS

o

Assert ones individual identity and distinctive qualities

Desire products that emphasise unique character

(perfumes, clothing)

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CONSUMER INVOLVEMENT
We can get pretty attached to

products

Tattoos
o User groups
o Anti-consumption
o

Involvement: perceived

relevance of an object based

on ones needs, values, and
interests
o

The motivation to process information

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CULT PRODUCTS

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PASSION CONSUMPTION

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SUBCULTURE AND CB:

IN RESEARCH RELATING TO PET OWNERS IN THE USA

60% say I love you to their pets

everyday
90% of singles say they would
NEVER date someone that didnt like
their pet
Pets are considered family
Pet owners consider their PETS
HEALTH AS EQUALLY
IMPORTANT as their other family
members
Pet owners are concerned about their
dogs getting cold or uncomfortable,
maybe arthritis:

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Activity 1: Consumer Identity

Choose a possessions that defines who you are
(paste a photograph of the possession on page 2).
Describe your possession.

Describe how this possession defines who you are.

What needs does it fill (Maslows hierarchy: page 44)
What is the most likely segment for this product, in
terms of loyalty or usage?
List the segments demographic and psychographic /
lifestyle characteristics?
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