Download Consumer behaviour helps to formulate public policy

COPYRIGHT © 2006 Thomson Learning Australia
Consumer Behaviour
Roger D. Blackwell
Clare D’Souza
Mehdi Taghian
Paul Miniard
James Engel
Requests for permission to make copies of any part of the work
should be addressed to:
Thomson
Level 7, 80 Dorcas Street
South Melbourne Victoria
Australia 3206
COPYRIGHT © 2006 Thomson Learning Australia
CHAPTER 1
Consumer behaviour and
consumer research
What is consumer behavior?
Activities people undertake when
obtaining, consuming, and disposing
of products and services
A field of study that focuses on
consumer activities
Scope goes beyond just why and
how people buy to include
consumption analysis
Consumer
influences
Obtaining
Organisational
influences
Consuming
Consumer behavior
Disposing
Consumer
influences
Culture
Ethnicity
Personality
Family
Life-stage
Values
Income
Available resources
Attitudes
Opinions
Feelings
Motivations
Past experiences
Peer groups
Knowledge
Organisational
influences
Brand
Product features
Advertising
Word of mouth
Promotions
Retail displays
Price
Quality
Service
Store ambiance
Convenience
Loyalty programs
Packaging
Product availability
Obtaining
Consuming
Disposing
How you decide
you want to buy
How you use the
product
How you get rid of
remaining product
Other products
you consider
buying
How you store the
product in your
home
How much you
throw away after
use
Where you buy
Who uses the
product
If you resell items
yourself or
through a
consignment
store
How you pay for
product
How you
transport
product home
How much you
consume
How product
compares with
expectations
How you recycle
some products
Consumption analysis
Why and how people use products in
addition to why and how they buy
The marketing concept
The process of planning and executing
the conception, pricing, promotion,
and distribution of ideas, goods and
services to create exchanges that
satisfy individual and organisational
objectives
Satisfaction with an exchange
depends on satisfaction with
consumption of product and the
exchange of money
Why Study Consumer Behavior?
Consumer Behavior Determines the
Economic Health of a Nation
Why study consumer behaviour?
Consumer behavior determines the
success of marketing programs
Marketing can be used to
influence brand choice and
purchase, while de-marketing
can influence people to stop
harmful consumption
‘The Customer is King’:
Organisation influenced by
consumer needs and wants
Why study consumer behaviour?
Organisations that are customer-centric use
a total marketing approach to focus their
resources on satisfying customers
Marketing is the process of transforming or
changing an organisation to have what
people will buy
Why study consumer behaviour?
Consumer behavior determines
everyone’s economic health:
The individual’s decisions as a consumer
determine their economic health by making
more effective consumption decisions while
avoiding deceptive practices harmful to them
Public policy leaders and social
commentators study consumer behavior to
alleviate over-consumption and underconsumption by educating consumers about
problems and providing assistance
Consumer
behaviour
helps to
formulate
public policy
Educating consumers about health
Understanding
consumers’ issues or
problems and
developing methods
to reach and educate
consumers
Studying consumer behaviour
helps formulate public policy
Understanding
consumers’
needs to
formulate public
policy and
predicting
behavioral
changes that
follow
Government Protection
and Education
Protection from
Competitive Markets
Consumer behaviour affects
personal policy
Personal policy includes
how you behave
towards others and in
buying situations, your
values and beliefs, and
how you live your life
A person’s economic
quality of life is
determined by personal
policy
Evolution of consumer behavior
Supply chain:
all the organisations involved in taking a
product from inception to final consumption
- Manufacturers
- Wholesalers
- Retailers
- Facilitating organisations
Consumers’ increased influence on
business
Evolution of consumer behaviour
Consumers’ increasing influence
Wholesaler
Manufacturer
Manufacturing
Orientation
Retailer
Consumer
Selling
Marketing Consumer
Orientation Orientation Orientation
US
1750-1850
1850-WWII
1970-2000
2000+
Europe
1750-1850
1760-WWII
1970-2000
2000+
Evolution of consumer behaviour
Manufacturing orientation
Selling orientation
Marketing orientation:
- Motivation research
- Positivism
- Postmodernism
Consumer orientation
Consumer orientation
Beyond a marketing focus
How all organisations in a demand chain
adapt to changing consumer lifestyles and
behaviors bringing product design,
logistics, manufacturing, and retailing
together
Role of consumers in shaping many
aspects of life – society, government, social
programs, health cares, and other areas
Studying consumer behaviour:
Consumer research methods
Observation
Observing consumer behaviors in different
situations such as natural or artificial
settings
In-home observation: examining how and when consumers
use and consume products in their households
Shadowing: following and observing consumers in the
shopping and consumption processes. Researchers may ask
questions about reasons for behaviors
Physiological methods: techniques borrowed from medicine,
psychology and other sciences including cameras to measure
eye movement, galvanic skin response, and MRI
Consumer research methods
Interviews and surveys
Surveys: efficient method for gathering
information from a large sample of consumers by
asking questions and recording responses
(telephone and Internet surveys, mall intercepts,
and mail questionnaires)
Focus groups: a group discussion led by a
moderator skilled in persuading consumers to
thoroughly discuss a topic of interest
Longitudinal studies: repeated measures of
activities over time to determine changes in
opinions, buying, and consumption behaviors
Consumer research methods
Experimentation
Measuring cause-and-effect relationships by
manipulating independent variables to
determine the effects of changes on
dependent variables
- Laboratory experiment
- Field experiment
Independent variables might include number of
advertisements and package design
Dependent variables might include purchase
intent or behavior
Consumer research methods
Consumption research builds on the three
primary research methods to examine how
people use products and services rather
than how they buy them
May use ethnographic tools to under-stand
how values and culture influence usage of
products and other behaviors
May identify new uses for existing products
or new product to satisfy unmet or changing
consumer needs
Understanding how consumers
use products
Underlying principles of
consumer behaviour
The consumer is sovereign
The consumer is global
Consumers are different
Consumers are alike
Consumers appear different but
respond in similar ways to brands
The Underlying Principles of
Consumer Behavior
The Consumer Is
Sovereign
The Consumer Is Global
Consumers Are Different;
Consumers Are Alike
The Consumer Has
Rights
Consumer Bill of Rights
Refer to DOCEP (Department
of Consumer and Employment
Protection) in Western
Australia for information on
consumer rights. Remember
that consumer rights may vary
across countries in the South
East Asian region.
Challenges for the future
Gathering and interpreting information
that organisations need to meet
changing needs of consumers
Developing effective consumer
research methods to capture changes
in trends and lifestyles
Understanding consumer behaviour
from a broader perspective as an
important part of life