1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-1 Consumer Behaviour by Karen Webb This is the textbook for your course.

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski INTRODUCTION

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-3 GROUP ACTIVITY Take five minutes. Prepare a list of items you expect to learn from this subject.

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-4 What is Buyer Behaviour? “The behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs” Schiffman, Consumer Behaviour

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-5 Marketing Who is buying What People buy How they buy Why they buy When they buy Where they buy What they do with purchases

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-6 Introduction to consumer behaviour At the end of this session, you should understand: The various approaches to studying buyer behaviour The role of marketing organisations The nature of buyer and consumer behaviour The differences between organisational and consumer buying The impact of technology on buying behaviour and consumption in Australia The factors influencing buying behaviour

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-7 You the consumer! Discuss with a partner: – One product or service that you bought recently? – Why did you buy it? – What particular personal factor/s influenced your purchase decision? – Did any marketing messages or activities influence your decision? – Do you think that the purchase may have been different for someone else? If so, how?

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-8 Marketing and buying behaviour Do marketers create needs or respond to them? – Marketers suggest that they recognise needs and appeal to them – They may present a stimulus that allows the consumer to recognise the need See EXHIBIT 1.1 Sydney Water ran this advertisement to encourage behavioural change, page 9.

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-9 Marketing and buying behaviour Buying behaviour includes: – the recognition of a problem (need to be met) – search for information – consideration of alternatives – purchase, consumption, disposal – ongoing evaluation of all thoughts and activities throughout this process Marketers must be aware of the buying process and consumer influences to be effective in understanding, appealing to, and meeting consumer needs Marketers also aim to create value in the mind of the consumer by understanding what the consumer values

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-10 Consumer behaviour & organisational buying behaviour Consumer behaviour of the individual – Consumer behaviour is the behaviour of individuals in their quest to satisfy needs – Products and services are acquired to satisfy these personal consumption needs Organisational behaviour of the business or organisation – Organisational behaviour is determined by both the needs of the organisation and the needs of the individual or group responsible for buying – Needs to be satisfied relate to the purchasing of products and services for resale, use in production, or other business purposes

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-11 The consumption process

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-12 Internal Influences Motivation Personality and self concept Perception Learning Memory attitudes External Influences Social and reference groups Families and households Social class Culture and sub culture Lifestyles Personal influence and diffusion Situational influences Decision processes Problem recognition Information search and evaluation Purchasing process Post purchase behaviour A Framework for Learning Buyer Behaviour

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-13 Approaches to understanding buying behaviour Behaviourism – Emphasises experimentation involving observable, measurable responses to stimuli – Marketing strategies try to influence the way consumers feel about product/service to encourage positive responses Cognitive theory – Emphasis is on the role of information processing, thinking and reasoning – Marketers apply this primarily to brand recognition and attitude formation

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-14 The marketing concept ‘An organisation aims alls its efforts in a coordinated and integrated manner, simultaneously satisfying its customers and achieving it own corporate goals’ (Quester et al. 2001)

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-15 The marketing mix - product, price, place, promotion A group of four critical elements and decision areas that reflect the market’s perception of the organisation’s product or service The elements combine to present the organisation’s efforts to the market - it’s efforts to satisfy the needs of the target market

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-16 The marketing mix - product The product mix – Combinations of tangible (can be seen or touched) and intangible (cannot be seen or touched, i.e. branding) characteristics of the organisation’s offering to the consumer – Includes services which are mostly intangible – Branding, image, packaging, storage or containment, labeling, sizes, assortments, variety, range, usage situations and quality are some of the product mix decision areas

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-17 Price – Is determined by product value in the marketplace, demand, input costs, competitors, and other strategies, such as introducing a new product, discounting or distributor allowances – Is set in order to achieve organisational objectives, such as market share or profit The marketing mix - price

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-18 The marketing mix - distribution Distribution (Place) – The complex process that allows the consumer to gain access to the offering – May include type and appearance of retail outlet, use of agents, transport, logistics, intermediaries and decisions about intensity of distribution (exclusive, selective, intensive)

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-19 The marketing mix - promotion Marketing communication – The careful planning and strategic placement of marketing messages – Goals for communication include informing, reminding, persuading the target consumer about the organisation’s offering – Integrated marketing communications can include advertising, public relations, personal selling, direct marketing and sponsorship – Promotions may be created using combinations of visuals, sound or other experiences, such as product trial – Promotions must be developed with an understanding of the consumer and the integrated mix effort

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-20 Evolution of marketing Production focus Selling focus Marketing focus Societal focus

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-21 Market segmentation Market segments - consumers grouped according to their similar needs and characteristics Target market - preferred segment based on ability to meet the needs of this group and achieve organisational goals Different strategies and different combinations of mix elements (product, price, place, promotion) are often developed for the various target markets

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-22 Market segmentation See EXHIBIT 1.3 Lexus’s ‘luxury sports vehicle’ and EXHIBIT 1.4 Volvo is well known for safety, page 11.

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-23 Positioning How consumers perceive your product in relation to others in the market Achieved through understanding the consumer and applying relevant strategies to the marketing mix elements

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-24 Research is an important tool in determining consumer behaviour and the factors influencing behaviour Well known research agencies include: – Roy Morgan Research www.roymorgan.com.auwww.roymorgan.com.au – AC Nielsen www.acnielsen.com.auwww.acnielsen.com.au – Colmar Brunton www.cbr.com.auwww.cbr.com.au Other sources include: – The Australian Bureau of Statistics www.abs.gov.auwww.abs.gov.au – News pollwww.newspoll.com.au/company_profile_7a.htmlwww.newspoll.com.au/company_profile_7a.html The Market Research Society of Australia (MRSA) monitors the marketing research industry and its interests Consumer behaviour and marketing research

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-25 Quantitative research

26. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-26 Qualitative research

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-27 Technology and buyer behaviour Reliance on technology 24-hour shopping Online buying Entertainment Obsolescence Changing mediums for promotion, distribution Changing the way we live and consume Marketers use database marketing, relationship opportunities, monitoring of consumption patterns, needs and wants, research, store layout and product offerings, and maintain an awareness of new technology and its impact

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-28 A model of consumer behaviour

29. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 1-29 Group Activity Discuss the different types of consumers that might be attracted to the following restaurants: Chinese restaurant Fast food restaurant like McDonald’s a-la carte restaurant in an exclusive hotel