An Introduction to Consumer

Behaviour
Recommended Reading:

 Schiffman G.Leon and Kanuk Leslie Lazar (2007), “Consumer

Behaviour”, 9th edition, Prentice Hall of India Private Ltd, .New
Delhi.

 Solomon R. Michel (2007), “Consumer Behavior”, 7th edition,

Allyn and Bacon Publications.

 Rabot(2006), “Consumer Behavior in Fashion”, Prentice Hall

(Higher Education Division, Pearson Education)
 Learning Outcomes:

• Explain the importance of knowing and predicting consumer

behavior

• Key personal factors such as demographics, psychographics

and geographic which influence buying behavior

• Use of behavioural patterns in segmenting the market, and

targeting

• Use of behavioural patterns in designing marketing

communications
Unit Assessment Structure

• End-of- Semester examination - 60%

• Research project - 40%

[Making group presentations of a case analysis using consumer

behaviour concepts and models before a panel and class of 30
minutes].

Pass mark is 50% and it is mandatory to obtain a minimum of

40% from each assessment component.
What is consumer behaviour? – Definition 01

The behavior that consumers display in searching for,

purchasing, using, evaluating and disposing of
products and services that they expect will satisfy
their needs.
Schiffman &Kanuk
What is consumer behaviour? – Definition 02

The decision process and physical activities individuals

engage in when evaluating, acquiring, using, or
disposing of goods and services.
Loudon & Bitta (1993)
What is consumer behaviour? – Definition 03

The dynamic interaction of affect and cognition,

behavior, and environmental events by which human
beings conduct the exchange aspect of their lives.
Peter, P.J., (1996)
What is consumer behaviour? – Definition 04

CB is the study of individuals, groups or organizations

and processes they use to select, secure, use and
dispose of products, services, experiences or ideas to
satisfy needs and impacts that these processes have
on the consumer and the society
Hawkings, D. I. (2005)
 What is consumer behaviour?

The study of consumer behaviour includes:

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 What is consumer behaviour?

When acting as consumers, individuals have one goal in

mind:

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This requires solutions to problems, and the process is

often complex.
 What is consumer behaviour?
Consumer Behavior as “Process”
CONSUMER’S MARKETER’S
PERSPECTIVE PERSPECTIVE

PREPURCHASE How does a consumer How are consumer

ISSUES decide about needing a attitudes
product? formed/changed?

PURCHASE ISSUES Is product acquisition a How do situational

stressful or pleasant factors affect purchase
experience? decision?

POSTPURCHASE Does product provide What determines

ISSUES pleasure or perform customer satisfaction
function? How is and repurchase?
product disposed of?
 What is consumer behaviour?

Consumer roles: Buyers, payers and users

The marketplace activities of individuals entail three functions:

1. the consumer (user) –

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2. the buyer –
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3. the payer -
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WHY Study Buyer Behaviour ?
HOW do marketers know
 Which people to target
 Where to reach them
 What messages to communicate
 What media to use
 What distribution method is best
 Differences between groups
 How to keep customers ?????
Personal consumers and organisational consumers
The personal consumer buys goods and services for:

• his or her own use

• use by the whole household, or a household member
• a gift for someone else.

In all contexts, the products are bought for final use by individuals
(end-users).

Examples of websites targeted at personal users:

• Chanel Apple
Personal consumers and organisational consumers
• The organisational consumer includes:
– commercial for-profit businesses
– non-profit businesses
– public sector agencies (government departments)
– institutions (e.g., schools, churches, sports clubs)

• Organisational consumers buy products to help run their

organisations

• Websites targeting organisational users:

Ford Fleet Telstra Business

Why Marketers Study Consumer Behaviour

To better understand:
•changing product life cycles
•changing environmental views and concerns
•changing consumer protection and public
policy
•the growing role of services marketing
•the growing role of not-for-profit and social
marketing
•the growing role of global marketing
•changing technology
•the impact of constant change.
Changing Product Life Cycles

• Many product categories, and changes in them, are driven by

product life cycle.
• Shorter life cycles arise due to the pace of new product
introductions and changes in technology.
• Life cycles are increasingly shortened.
Changing Environmental Views and Concerns

• Marketers and public policy makers are aware of the potentially

negative impact of products and packaging.
• Many consumers are socially aware and favour products that
address environmental concerns.
Changing Consumer Protection and Public Policy

As a result of consumer research and lobbying, marketers have

become more aware of their responsibility to protect consumer
interests.
Growing Role of Services Marketing

• Service sector forms a large part of the economy.

• Marketing service offerings can be difficult as services are:
• intangible
• perishable
• inconsistent.

• A knowledge of consumer needs and interests is recognised as

being essential to develop effective marketing strategies.
Growing Role of Not-for-profit and Social
Marketing
• Organisations in both the public and private non-profit sectors
recognise the need for marketing strategies that target groups.
• Not-for-profit organisations use consumer research to gain a
better understanding of their target market.
• This allows them to develop more effective marketing.
http://www.sarvodaya.org/
Growing Role of Global Marketing

• Companies recognise the • Government encourages small

need to move beyond and medium sized businesses
domestic markets. to export.
• By marketing globally, they • Cultural needs have to be
can achieve economies of recognised though.
scale and increase sales.
• This assists in their bid for
survival.
Changing Technology

• Companies that are responsive to changing technology,

and advances in the way that consumers interact with
companies through technology, are able to leverage
greater relationships.
• This technology ranges from websites, to electronic or
mobile ordering.
• Consumers have access to more information than ever
before and can easily find, or provide, reviews quickly.
Impact of Constant Change

• Due to continual social, economic and technological

changes, marketers need to know which markets to
target.

• Marketers seek to identify key similarities and

differences and then segment their markets accordingly.

• This is done by identifying common characteristics

among groups of consumers.
Questions/Suggestions