Presentation on theme: "Why marketing managers should understand consumer behaviour"— Presentation transcript:
1 Why marketing managers should understand consumer behaviour Why marketing managers should understand consumer behaviour. Marketers use an understanding of consumer behaviour in their efforts to satisfy the needs and wants of customers and in their efforts to communicate with customers.TrueFalse1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
2 Analyze the components of the consumer decision-making process Analyze the components of the consumer decision-making process. The consumers' decision process begins with Need Recognition and ends with a purchase.TrueFalse1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
3 Consumer's post-purchase evaluation process Consumer's post-purchase evaluation process. Cognitive dissonance is an internal tension that the consumer experiences due to doubts about a purchase decision.TrueFalse1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
4 Types of consumer buying decisions and the significance of consumer involvement. Consumers face three basic categories of decision making: (1) routine response behaviour; (2) limited decision making, and (3) existential decision making.TrueFalse1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
5 Cultural factors that affect consumer buying decisions Cultural factors that affect consumer buying decisions. With respect to consumer behaviour, marketers recognize culture as one of the most obvious influences on consumer choices.TrueFalse1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
6 Individual factors that affect consumer buying decisions Individual factors that affect consumer buying decisions. There are many personal characteristics which influence buying behaviour such as personality, self-concept, lifestyles, gender and others. Marketers can rely on these characteristics to understand consumer behaviour because they are generally stable and if they do change, they change gradually.TrueFalse1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
7 Psychological factors that affect consumer buying decisions Psychological factors that affect consumer buying decisions. Perception is an important influence on consumer buying decisions that marketers must understand in order to design effective promotional strategies. In particular marketers need to be aware that perception can be affected by the concepts of: selective exposure, selective extortion, and selective retention.TrueFalse1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
9 Learning Objectives1. Explain why marketing managers should understand consumer behaviour.2. Analyze the components of the consumer decision-making process.3. Explain the consumer’s postpurchase evaluation process.
10 Learning Objectives (continued) 4. Identify the types of consumer buying decisions and discuss the significance of consumer involvement.5. Identify and understand the cultural factors that affect consumer buying decisions.
11 Learning Objectives (continued) 6. Identify and understand the social factors that affect consumer buying decisions.7. Identify and understand the individual factors that affect consumer buying decisions.8. Identify and understand the psychological factors that affect consumer buying decisions.
12 Consumer BehaviourProcesses a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use.
13 Marketers need to pay very close attention to the study of consumer behaviour because: the internet allows consumers to communicate with each other better than ever.consumers' product and service preferences are constantly changing.there are more consumer groups today than ever before.government legislation requires consumer studies prior to regulatory approvals.their competitors are continually launching new products.1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
14 Consumer Decision-Making Process 5 Steps PostpurchasebehaviourPurchaseEvaluationof AlternativesInformation SearchNeed RecognitionCultural, Social, Individual andPsychological factors affect all steps
15 Internal Tension Disorder. Internal Purchase Worry. Marketers recognize that consumers have certain expectations when they make product purchases. Consumers may experience an internal tension after they make a purchase because they have doubts about their decision. This phenomenon is known as:Internal Tension Disorder.Internal Purchase Worry.Post Purchase Depression.Cognitive Dissonance.Post Product Depression.1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
18 Purchase To buy or not to buy... Identifies which attributes are most important in influencing a consumer’s choiceMarketing
19 Post-purchase Behaviour Consumers expect certain outcomes from the purchaseSatisfied or dissatisfied with the purchase
20 Cognitive Dissonance Marketing Help reduce through: Effective CommunicationFollow-upGuarantees WarrantiesDid I make a good decision?Did I buy the right product?Did I get a good value?
21 Types of Consumer Buying Decisions RoutineResponseBehaviourLimitedDecisionMakingExtensiveDecisionMaking
22 perceived risk of negative consequences. All of the following are factors that determine the level of consumer involvement in a purchase decision EXCEPT:perceived risk of negative consequences.situation.social visibility.previous experience.amount of advertising.1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
23 Continuum of Consumer Buying Decisions Exhibit 4.2
24 Routine Response Behaviour Little involvement in selection processFrequently purchased low cost goodsMay stick with one brandBuy first/evaluate laterQuick decision
25 Limited Decision Making Low levels of involvement (emotional ads work well)Low to moderate cost goodsEvaluation of a few alternative brandsShort to moderate time to decide
26 Extensive Decision Making High levels of involvementHigh cost goods (image ads help mold buyers)Evaluation of many brandsLong time to decideMay experience cognitive dissonance
27 Level of Involvement Factors determining level of Involvement Previous ExperienceInterestFactors determining level of InvolvementPerceived Risk of Negative ConsequencesSituationSocial Visibility
28 Marketing Implications of Involvement High-involvement purchases require:Extensive and informative promotionto target marketLow-involvement purchases require:In-store promotion, eye-catching package design, and good displays
30 Global Language Blunders Chevrolet’s “Nova” translated to “No Go”Coors “Turn it Loose” became “Suffer from Diarrhea”Toyota’s MR2 sounded like a swearword in FrenchCoca-Cola in Chinese means “bite the wax tadpole”
31 Multicultural Canada Visible-minority groups Chinese (23%), Blacks (19%), South Asians (Pakistani and Indian) (19%), Arabs and West Asians (13%), Filipinos and Other Pacific Islanders (8%), Latin Americans (6%), Southeast Asians (5%), and others (7%).Ethnic Diversity
32 Social ClassA group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioural norms.
34 Social Class Measurements OccupationIncomeSocial ClassMeasurementsEducationWealthOther Variables
35 Social Influences on Buying Decisions Reference GroupsOpinion LeadersFamily MembersCourtesy of the Nelson RF Collection
36 Relationships among Purchasers and Consumers in the Family TV AdRelationships among Purchasers and Consumers in the FamilyExhibit 4.8
37 Individual Influences GenderAge Family Life CyclePersonalitySelf-Concept Lifestyle
38 Family Life CycleAn orderly series of stages through which consumers’ attitudes and behavioural tendencies evolve through maturity, experience, and changing income and status.
39 LifestyleA mode of living as identified by a person’s activities, interests, and opinions.Psychographics is the analytical technique used to examine consumer lifestyles and to categorize consumersHealth CanadaOttawa’s Youthography Report
40 Psychological Influences on Buying Decisions PerceptionMotivationLearningBeliefs & Attitudes
41 PerceptionProcess by which people select, organize, and interpret stimuli into a meaningful and coherent picture.
43 Consumer notices certain stimuli PerceptionSelective ExposureConsumer notices certain stimuliand ignores othersSelective DistortionConsumer changes or distorts information that conflicts with feelings or beliefsSelective RetentionConsumer remembers only that information that supports personal beliefs
44 A Consumer’s Selective Exposure Exposure to over 250 advertisement messages per dayNotices only 11 to 20 ads
45 Marketing Implications of Perception Important attributes (price or quality)Brand namesQuality and reliabilityThreshold level of perceptionProduct or repositioning changes
46 MotivationBy studying motivation, marketers can analyze the major forces influencing consumers to buy or not buy products.MotiveA driving force that causes a person to take action to satisfy specific needs.
48 Changing attitudes Changing beliefs about the brand’s attributes Changing the relative importance of these beliefsAdding new beliefsThe Canadian hearing Society
49 Opinion leadership is one type of important social influence on consumer buying behaviour. Marketers who want to try and manage the impact of opinion leadership need to be aware that:opinion leaders are most influential for established products.opinion leaders need to be different from the group whose opinion they are leading.opinion leaders are usually very wealthy.teenagers are fickle which makes them unsuitable as opinion leaders.locating opinion leaders can be a challenge.1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
50 marital status, income, and age. religion, culture, and language. Consumer lifestyles are of particular interest to marketers for understanding consumer behaviour. Psychographics is an analytical technique that is used to examine consumer lifestyles. Marketers undertake lifestyle analysis by examining which of the following:marital status, income, and age.religion, culture, and language.education, income, and occupation.vacations, club membership, and political affiliation.activities, interests, and opinions.1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950
51 beliefs. attitudes. perception. learning. motivation. There are a number of important psychological influences on consumer buying decisions including: beliefs and attitudes, perception, motivation, and learning. Marketers need to be keenly aware of all of these influences. The distribution of product samples in consumer mail boxes would most likely be designed to affect which of the following psychological influences:beliefs.attitudes.perception.learning.motivation.1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950