1. Consumer Behavior

2. Why Study Consumer Behavior
Consumer Behavior determines the economic health of a nation
Consumer Behavior determines the success of marketing programs
Consumer Behavior determines the economic health of everyone
Consumer Behavior helps formulate public policy
Consumer Behavior affects Personal Policy

3. Evolution of Consumer Behavior
Who determines what consumers can buy?
Supply Chain
Manufacturer
Wholesaler
Retailer
Other helping agencies
Shifting from Supply to demand
From Manufacturing to Selling
From selling to Marketing

4. Marketing Orientation
You don’t like the style? Buy it & I will give you free service for a year.
Product
Concept
Selling
Concept
Marketing
Concept
Production
Concept
Consumer prefer products that are widely available and expensive.
Consumers favor products that offer the most quality, performance, or innovative features.
Consumer will buy products only if the company aggressively promotes / sells these products.
Focuses on needs / wants of target markets & delivering value better than competitors.

5. Marketing Vs. Selling Concept

6. Marketing Concept Marketing Concept Market Customer Needs
Integrated
Marketing
Profitability

7. Customer Needs Secret Needs Delight Needs Unstated Needs Real Need
Status Symbol
Delight Needs
Gift from Dealer
Unstated Needs
Good Service from Dealer
Real Need
Operating Cost low,
Not Initial Price
Stated Needs
Want Inexpensive Car

8. Customer Needs & Marketing
Responsive
Marketing
Anticipative
Marketing
Creative
Marketing
Creative Marketer discover and produces solutions customers did not ask for but to which they enthusiastically respond.
Responsive Marketer finds a stated need and fills it.
Anticipative marketer looks ahead into what needs customer may have in near future.

9. Integrated Marketing Internal External Marketing Marketing
1st Level Integration:
All marketing functions must work together (sales force, advertising, customer service, product management, marketing research)
Internal
Marketing
External
Marketing
2nd Level Integration:
Marketing must be embraced by the other departments, they must also “think customer”.
Marketing directed
at people outside
the company
Task of hiring, training
& motivating able
Employees who want
to serve customers well

10. Profitability Factors Affecting Profitability Sales Decline
Slow Growth
Factors
Affecting
Profitability
Changing buying
pattern
Increasing Marketing
Expenditures
Increasing Competition

11. Evolving Views of Marketing’s Role in the Company
Production
Finance
Production
Finance
Human
Resource
Marketing
Human
Resource
Marketing
Finance
Production
Production
Human
Resource
Customer
Marketing
Finance
Human Resource
Marketing

12. Customer as the controlling function and Marketing as the Integrative Function

13. Traditional Organization Chart
Top Management
Middle Management
Front Line People
Customers

14. Modern Customer Oriented Organization Chart
Customers
Front Line People
Middle Management
Top Management

15. Societal Marketing

16. Methods of studying Consumer Behavior
Observation
Interviews and Surveys
Experimentation

17. Observation
In home observation: Placing marketers inside people’s homes to examine exactly how products are consumed.
Shadowing: Method in which a researcher accompanies or shadows consumer through the shopping and consumption process, asking questions about each step of the process.
Physiological observational methods: These include cameras to measure eye movement, galvanic skin response, MRI etc.

18. Interviews and Surveys
Surveys are an efficient way of gathering information from a large sample of consumers by asking questions and recording responses.
Mail Questionnaire
Internet Surveys
Telephonic Interviews
Personal Interview
Intercept
Focus Group: 8-10 people involved in a discussion led by a moderator skilled in persuading consumers to discuss thoroughly a topic of interest to the researcher.
Longitudinal Studies: Involve repeat measures of consumer activities over time to determine changes in their opinions, buying and consumption behavior.

19. Experimentation
Attempts to understand cause and effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables.
Laboratory Experiment: Conducted in physical environment that permits maximum control of variables being studied.
Field Experiment: takes place in a natural setting such as a home or a store.

20. Thank You !