Welcome to Consumer Behaviour

Kenneth Yap

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Lecture Outline
Microeconomics 101 Marketing 101 Unanswered questions CB and 4Ps Think about where you are Marketing jobs The marketing graduate Consumers, Consumer Behaviour, and You The application of what you will be learning Course overview and teaching philosophy

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Learning Outcome
Gain an overview of what Consumer Behaviour is about What role does it play in marketing decisions

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Microeconomics 101
Assumptions about consumers

Consumers are rational and maximise utility Limited resources Consumers have full and relevant information

Assumptions about market place

Homogenous demand and supply No one buyer or seller controls the price

Problems??

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Marketing 101
What has Marketing Management taught us?

The 4Ps to produce differentiation

What has Marketing Management taught us about consumers?

Are consumers rational? Do they have full and relevant information? What effect do the 4Ps have on consumers?

So how does Microeconomics fit in with Marketing?

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Unanswered questions
From the consumers perspective:

What do consumers need? What do consumers want? Why do they need it? Why do they want it? How do they choose what is best for their needs and wants?

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Unanswered questions
From the manufacturers perspective:

Would consumers need this? Would consumers want this? Which consumers would need this? Which consumers would want this? How do we get consumers to choose this? How do consumers know what they need or want? How will consumers know this is the best for their needs?

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Consumer Behaviour and the 4Ps

Product Place Promotion Price

Different product types Product lines Branding Packaging New products

Different channel structures and retailer types Role of marketing intermediaries Retailing, merchandising, promotion

Promotional mix Advertising Public relations Personal selling Sales promotion

Price levels and ranges Discounting and promotion Relationship of price to quality Price cues

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Think about where you are

As a consumer yourself, do you have the answers to some of those questions? As an employee of the manufacturer, do you have the answers to some of those questions for others?

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Marketing jobs
Salesperson and sales manager Brand manager or marketing co-ordinator Retail supervisor and manager Advertising creative Account executive Marketing analyst Marketing researcher Promotional executive Events manager Graduate trainee program
Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

10

The marketing graduate

What does a doctor do? What does a mechanic do? What does a marketeer do?

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

11

The marketing graduate

Jobs are harder to find in marketing Employers complain that many graduates are not job-ready Marketing jobs are taken by people who are not marketing graduates The professional standards of marketing could be much higher Problem??

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

12

Marketing is NOT just bulls**t

Maybe more a science than an art Marketing professionals lack the science because marketing graduates lack the science Dont worry because if youre creative or extroverted, youll do well in marketing

Non-marketing graduates can be creative and extroverted

The time has come to reclaim those marketing jobs!!

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

13

START HERE
Consumer behaviour can be very technical Strange unit because as lifelong consumers we are already experts But not everyone is like you And how well do you know yourself

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

14

Approach to learning
Students should be able to demonstrate competency in basic consumer behaviour Demonstrate expertise in a particular consumer behaviour topic Apply this knowledge to assist potential employers I have an example of how this has helped me:

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

15

Consumer Decision Making Process

KIA arent selling many cars so CEO wants to spend $60 million on advertising
Consumers already have brands in mind Consumers dont know KIA so they dont buy KIA Consumers Information receive on KIA not information from readily many sources available

Need recognition

Pre-purchase search

Evaluation of alternatives

Buyers at this 85% are KIA has strong stage know aware of KIA positive WOM quite a bit about (from from owners KIA advertising) Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia
16

Consumer Decision Making Process

At this stage, consumers usually have 4-5 cars in mind KIA is not one At this stage, Consumers dont They of them consumers check out theout KIA check because it is narrow it 4-5 cars the end in not appealing down to 2

75% of the time, KIA was one of the 4-5

90% of the 75% check out KIA

In less than 20% of the time, KIA was one of the 2

17

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Course overview
Consumer decision making process

Problem recognition Information search Evaluating and selecting alternatives Outlet selection and product purchase Post-purchase processes

Perception Learning and memory Motivation, personality and emotion Attitude and attitude change Group influence and communication
Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

18

Course overview
Contact details and tutors Research and Application are key

Tutorials: learn how companies apply CB Assignment: show how CB concepts work in the real world

Assessment overview Assignment

Structure comes from precision and clarity

Test Tutorials
Discussion questions Show and tell
19

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

Housekeeping issues
Lecturer and tutors respond to content issues only

Email or consultation Respond to content issues only

Administrative issues (OLCR, WebCT downloads, outlines and documents)

Contact marketing_professional@biz.uwa.edu.au

Course outline is quite comprehensive

Schiffman, Bednall, OCass, Paladino, Ward & Kanuk: Consumer Behaviour 4e 2007 Pearson Education Australia

20