In the next 32 sessions…. W’s of Consumer Behavior (1 session) Factors that influence the behavior (19 sessions) Decision making process (4 sessions)
Consumer behavior defined…. A study of how people/org select, buy, use and dispose goods/services to satisfy their needs and wants
Why study consumer behavior Lack of knowledge of CB = big mistakes! dictates Marketing Tactics
Why Study CB Helps firms to understand The psychology of how consumers think, feel, reason The psychology of how the consumer is influenced by environment The behavior of consumers while shopping Limitations in consumer knowledge and its influence The motivation levels and the ways it varies between products How marketers can adapt and improve their campaigns
Cultural influence Social Class Social Group Influence Family Influence Other Influences Learning & Memory Personality & Self-concept Attitudes Motivation & Involvement Information Processing Problem Recognition Information Search Evaluation Purchasing Process Post Purchase Behavior
Consumer Research The process and tools used to study consumer behavior. Two perspectives: –Positivist approach/Modernism (approach that regards the CB discipline as an applied marketing science, focus is on consumer decision making) –Interpretivist approach/Post modernism (approach that focuses on the act of consuming rather that on act of buying)
Market segmentation Finely-tuned marketing segmentation strategies allow marketers to reach only those consumers likely to be interested in buying their products.
Firms need to be cautious when they reach out to newer segments 750 million people in the world are disabled, according to the World Health Organization (WHO) 80% of disabled people live in developing countries $800 billion in spending power in US alone
Consumers’ Impact on Marketing Strategy Relationship Marketing: Building Bonds with Consumers –Relationship marketing: The strategic perspective that stresses the long-term, human side of buyer-seller interactions –Database marketing: Tracking consumers’ buying habits very closely, and then crafting products and messages tailored precisely to people’s wants and needs based on this information
Marketing’s Impact on Consumers Marketing and Culture: –Popular Culture: Music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market. –Marketers play a significant role in our view of the world and how we live in it.
Marketing’s Impact on Consumers: The Meaning of Consumption The Meaning of Consumption: –People often buy products not for what they do, but for what they mean. –Types of relationships a person may have with a product: Self-concept attachment Nostalgic attachment Interdependence Love
Marketing’s Impact on Consumers: The Global Consumer Majority of people on earth live in urban centers. Sophisticated marketing strategies contribute to a global consumer culture. Even smaller companies look to expand overseas. Globalization has resulted in varied perceptions of countries(both positive and negative).
Marketing’s Impact on Consumers: Virtual Consumption The Digital Revolution is one of the most significant influences on consumer behavior. Electronic marketing increases convenience by breaking down the barriers of time and location. Cyberspace has created a revolution in C2C (consumer-to-consumer) activity. ‘Recently, I had a terrible experience with Apple MacBook and Apple India. I posted a review at your community and only then Apple listened and actually gave me a new laptop. Thanks to your community and its power...Fortunately, the review is being read by around 6000 people and people have been writing to me whether they should be Apple MacBook.’ P radeep Chopra co-founder OmLogic ( m outhshut.com)
Needs and Wants: Do Marketers Manipulate Consumers? Consumerspace Do marketers create artificial needs? –Need: A basic biological motive –Want: One way that society has taught us that need can be satisfied Are advertising and marketing necessary? –Economics of information perspective: Advertising is an important source of consumer information. Do marketers promise miracles? –Advertisers simply don’t know enough to manipulate people.
Consumerism Culture Jamming: –A strategy to disrupt efforts by the corporate world to dominate our cultural landscape
The Dark Side of Consumer Behavior Addictive Consumption: –Consumer addiction: A physiological and/or psychological dependency on products or services Compulsive Consumption: –Repetitive shopping as an antidote to tension, anxiety, depression, or boredom Consumed Consumers: –People who are used or exploited, willingly or not, for commercial gain in the marketplace