Definition of Consumer

Behavior
 Individuals or groups acquiring,
using and disposing of products,
services, ideas, or experiences
 Includes search for information and
actual purchase
 Includes an understanding of
consumer thoughts, feelings, and
actions
Acquisition, Consumption
and Disposal
 Acquisition  Consumption
 Receiving  Collecting
 Finding  Nurturing
 Inheriting  Cleaning
 Producing  Preparing
 purchasing  Displaying
 Storing
 Wearing
 Sharing
Acquisition, Consumption,
Disposal
 Disposal
 Giving
 Throwing away
 Recycling
 depleting
Contributing Disciplines
 Anthropology
 Sociology
 Psychology
 Economics
 History
 Political Science
Reasons for Studying
Consumer Behavior
 To stay in business by attracting
and retaining customers
 To benefit from understanding
consumer problems
 To establish competitive
advantage
 …because it is interesting!
The Circle of Consumption
 Production
 Acquisition
 Consumption
 Disposal
The Circle of Consumption,
continued
 Typically, attention of marketers has focused
on acquisition as the critical phase
 Only recently has more attention been given
to include the full circle and the links between
its elements
 Disposal to acquisition
 Disposal to production
 Disposal to consumption
 Production to consumption
 Acquisition to consumption
 Acquisition to disposal
Consumer Research
The systematic and objective
process of gathering, recording,
and analyzing data for aid in
understanding and predicting
consumer thoughts, feelings, and
behaviors.
In a global environment, research
has become truly international.
Important Factors in
Consumer Research
 Speed
 The Internet
 Globalization
 Data Overload
Types of Consumer
Research
 Basic Research
 To expand knowledge about
consumers in general
 Applied Research
 When a decision must be made about
a real-life problem
The Consumer Research
Process
 Defining the Problem and Project
Scope
 The Research Approach
 The Research Design
 Data Collection
 Data Analysis and Interpretation
 Report
Marketing Management
Philosophies
 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Societal Marketing Concept
 Green Marketing
 Cause-Related Marketing
 De-Marketing
Production Concept
 Focus on Production
 View of consumers:
 They will buy as long as the product is
available and affordable.
 Model T: You can have any color as long as
it’s black.
 Focus on production justified:
 Demand higher than supply
 Non-competitive product cost
Product Concept
 Focus on the product
 View of consumers:
 We have to have the best quality and the
most features and they will buy.
 Consumers might not care about quality
 Consumers might not be willing to pay
for the best quality
 Consumers might not be able to discern
quality difference
 Consumers might prefer simplicity
Selling Concept
 Focus on selling
 View of consumers:
 We have to sell to them or else they
won’t buy.
 Focus on selling justified:
 Introductory stages of product life
cycle
 Unsought goods
Marketing Concept
 Focus on marketing
 Creating mutually rewarding
exchange relationships
 Consumer needs and wants have
priority
 View of consumers:
 They will buy if you fulfill their needs
better than the competition.
Societal Marketing
Concept
 Same as Marketing Concept plus
an added concern for the well-
being of society
Market Research:
Research Designs
 Exploratory Research
 Descriptive Research
 Causal Research
Exploratory Research
 Literature Research
 Experience Survey
 Focus Groups
 In-Depth Interviews
Exploratory Research
 Insights and Ideas
 Precision: Specific Hypotheses
 Establishment of Priorities
 Increase of Familiarity with
Problem
 Clarification of Concepts
Descriptive Research
 Description of Characteristics of a
Certain Group
 Estimation of the Proportion of
People in a Specified Population
who Behave in a Certain Way
 Specific Predictions
Descriptive Research
 Longitudinal Studies
 True Panel
 Omnibus Panel
 Cross-Sectional Analysis
 Field Study
 Sample Survey
True Panel: Advantages
 Brand Switching Analysis
 Collecting Classification
Information
 Compensation for
Participation/Time
 Accuracy
 Reduced Interaction Bias
True Panel: Disadvantages
 Non-Representativity
 Drop-out Rate
 Payment
Causal Research
 Laboratory Experiments
 Field Experiments
 Internal and External Validity
Market Segmentation
Bases
 Demographic
 Geographic
 Geo-Demographic
 Benefit
 Usage
 Lifestyle
Market Segmentation:
Advantages
 Specific Definition of the Market
 Satisfaction of Consumer Needs
 Meeting Changing Market
Demands
 Assessment of Competitive
Strengths and Weaknesses
 Efficient Allocation of Marketing
Resources
 Precise Setting of Marketing
Haley, 1968
Toothpaste Market
 Sensory Segment
 Worrier Segment
 Sociable Segment
 Independent Segment
Applications of Benefit
Segmentation
 Positioning
 Repositioning
 Competitive positioning
 New market opportunities/niches
 Positioning of multiple brands
Usage Segmentation
 Rate of Usage
 Brand Loyalty
 Usage Situation
Lifestyle Segmentation
Psychographics
 Activities
 Interests
 Opinions
 Demographics
 VALS I and II
 Maslow’s Hierarchy of Needs
Consumer Decision
Making:
Types of Decisions
 Extensive Problem Solving
 Limited Problem Solving
 Routinized Response Behavior
Problem Recognition:
Causes in Current State
 Depletion of Stock
 Dissatisfaction
 Decrease in Finances
 Increase in Finances
Problem Recognition:
Causes in Desired State
 New Need Circumstances
 New Want Circumstances
 New Product Opportunities
 Purchase of Other Products
Information Search
and Evaluation
 Incidental  Directed Search
Learning and Evaluation
 Internal only

loyalty

impulse
 Internal and
External
Purchasing Process
 When to buy?
 Where to buy?
 How to pay?
 How much to buy?
Post-purchase Behavior
 Cognitive Dissonance
 Satisfaction/Dissatisfaction
Motivation
 Definition
 Categories of Needs
 Arousal of Motives
 Motive Structuring
 Motive Conflict
 Motivation Theories
Motivation Theories
 Freud
 Lewin
 Maslow
Freudian Theory
 Basic Principles
 Homeostasis
 Hedonism
 The Structure of Personality
 Id
 Ego
 Super-ego
Projective Techniques
 Word Association
 Sentence Completion
 Cartoon Test
 Thematic Apperception Test (TAT)
 Rorschach Test (inkblots)
Lewin’s Field Theory
 Life Space
 Person
 Environment
 Formula
 Conflict
 Approach-Approach
 Avoidance-Avoidance
 Approach-Avoidance
Perception
 Definition
 Threshold Levels
 The Perceptual Process
 Selection
 Organization
 Interpretation
Selection
 Internal Factor  External Factors
 Attitudes  Color
 Expectations  Contrast
 Motives  Size
 Attention Span  Position
 Perceptual  Intensity/Magnitud
Defense e
 Perceptual  Movement
Vigilance  Humor
 Adaptation  Fear
 Perceptual
Organization
 Closure
 Figure and Ground
Interpretation
 Physical Appearance
 Stereotypes
 Irrelevant Cues
 First Impressions
 Jumping to Conclusions
 Halo Effect
Learning
 Definition
 Learning Theories
 Marketing Applications
Learning Theories
 Behavioral Learning Theories
 Classical Conditioning
 Instrumental Conditioning
 Cognitive Learning Theories
 Consumer Information Processing
 The Structure of the Memory
 Memory Processes
Marketing Applications
 Classical Conditioning
 Creating Associations
 Stimulus Generalization
 Family Branding

Product Line Extensions

Licensing
 Look Alike Packaging
Marketing Applications
 Instrumental Conditioning
 Rewards
 Reinforcement Schedules/Advertising
 Intermittent

Continuous
Involvement
 High Involvement  Low Involvement
Hierarchy of Hierarchy of
Effects Effects

 Cognition  Cognition
 Attitude  Behavior
 Behavior  Attitude
Communication
 The Nature of Communication
 Communication Model
 Sender
 Message
 Receiver
 Psychological Noise
Sender
 Source Credibility
 Trustworthiness
 Expertise
 Status
 Other Dimensions
 The Sleeper Effect
The Sleeper Effect
 Consumer forget the source of the
message faster than the message itself.
 Over time, high-credibility sources lose
power to change attitudes.
 Over time, low-credibility sources gain
power to change attitudes.
 High-credibility sources need to
reinstate message.
 Low-credibility sources should not
reinstate message.
Message
 Size, Color, Position
 Order of Presentation
 Humor
 Agony Advertising
 Content
 Fear Appeals (moderate!)
 Audience Participation
Order of Presentation
 Climax order
 Anticlimax order
 Pyramidal order

 What works best, depends on

consumer involvement.
Receiver
 Selective Attention
 Selective Perception
 Selective Appeal
Cultural Dynamics
 Definition of Culture
 Cultural Sensitivity
 Culture and its Elements
 Material Culture
 Social Institutions
 Humans and the Universe
 Aesthetics
 Language
Culture Defined
 The sum total of knowledge,
beliefs, art, morals, laws, customs,
and any other capabilities and
habits required by humans as
members of society.
 The distinctive way of life of a
group of people, their complete
design for living, a mosaic of
human life.
Subculture
 Definition
 Types of Subcultures
 Selected Subcultures
 Acculturation
 the Learning of another
Culture/Subculture
Types of Subcultures
 Nationality
 Religion
 Region
 Ethnicity
 Age
 Gender
 …and many more.
Stages of Acculturation
 Honeymoon
 Rejection
 Tolerance
 Integration
Social Groups
 Definition
 Types of Groups
 Group Properties
Types of Groups
 Primary and secondary
 Formal and informal
 Membership and symbolic
 In and out
Group Properties
 Status
 Roles
 Norms (Sanctions)
 Power
 Socialization
Power
 Reward
 Coercive
 Legitimate
 Referent
 Expert
Reference Groups
 Influence on product category
choice
 Influence on brand choice

 Factors:
 Luxuries vs. necessities
 Publicly vs. privately consumed
 Visibility