Download Definition of Consumer Behavior

Definition of Consumer
Behavior
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Individuals or groups acquiring, using
and disposing of products, services,
ideas, or experiences
Includes search for information and
actual purchase
Includes an understanding of consumer
thoughts, feelings, and actions
Acquisition, Consumption and
Disposal
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Acquisition
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Receiving
Finding
Inheriting
Producing
purchasing
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Consumption
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Collecting
Nurturing
Cleaning
Preparing
Displaying
Storing
Wearing
Sharing
Acquisition, Consumption,
Disposal
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Disposal
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Giving
Throwing away
Recycling
depleting
Contributing Disciplines
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Anthropology
Sociology
Psychology
Economics
History
Political Science
Reasons for Studying
Consumer Behavior
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To stay in business by attracting and
retaining customers
To benefit from understanding
consumer problems
To establish competitive advantage
…because it is interesting!
The Circle of Consumption
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Production
Acquisition
Consumption
Disposal
The Circle of Consumption,
continued
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Typically, attention of marketers has focused on
acquisition as the critical phase
Only recently has more attention been given to
include the full circle and the links between its
elements
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Disposal to acquisition
Disposal to production
Disposal to consumption
Production to consumption
Acquisition to consumption
Acquisition to disposal
Consumer Research
The systematic and objective process of
gathering, recording, and analyzing
data for aid in understanding and
predicting consumer thoughts, feelings,
and behaviors.
In a global environment, research has
become truly international.
Important Factors in
Consumer Research
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Speed
The Internet
Globalization
Data Overload
Types of Consumer Research
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Basic Research
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To expand knowledge about consumers in
general
Applied Research
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When a decision must be made about a
real-life problem
The Consumer Research
Process
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Defining the Problem and Project Scope
The Research Approach
The Research Design
Data Collection
Data Analysis and Interpretation
Report
Marketing Management
Philosophies
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Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
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Green Marketing
Cause-Related Marketing
De-Marketing
Production Concept
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Focus on Production
View of consumers:
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They will buy as long as the product is available
and affordable.
Model T: You can have any color as long as it’s
black.
Focus on production justified:
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Demand higher than supply
Non-competitive product cost
Product Concept
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Focus on the product
View of consumers:
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We have to have the best quality and the most
features and they will buy.
Consumers might
Consumers might
best quality
Consumers might
quality difference
Consumers might
not care about quality
not be willing to pay for the
not be able to discern
prefer simplicity
Selling Concept
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Focus on selling
View of consumers:
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We have to sell to them or else they won’t
buy.
Focus on selling justified:
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Introductory stages of product life cycle
Unsought goods
Marketing Concept
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Focus on marketing
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Creating mutually rewarding exchange
relationships
Consumer needs and wants have priority
View of consumers:
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They will buy if you fulfill their needs better
than the competition.
Societal Marketing Concept
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Same as Marketing Concept plus an
added concern for the well-being of
society
Market Research:
Research Designs
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Exploratory Research
Descriptive Research
Causal Research
Exploratory Research
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Literature Research
Experience Survey
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Focus Groups
In-Depth Interviews
Exploratory Research
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Insights and Ideas
Precision: Specific Hypotheses
Establishment of Priorities
Increase of Familiarity with Problem
Clarification of Concepts
Descriptive Research
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Description of Characteristics of a
Certain Group
Estimation of the Proportion of People
in a Specified Population who Behave in
a Certain Way
Specific Predictions
Descriptive Research
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Longitudinal Studies
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True Panel
Omnibus Panel
Cross-Sectional Analysis
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Field Study
Sample Survey
True Panel: Advantages
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Brand Switching Analysis
Collecting Classification Information
Compensation for Participation/Time
Accuracy
Reduced Interaction Bias
True Panel: Disadvantages
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Non-Representativity
Drop-out Rate
Payment
Causal Research
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Laboratory Experiments
Field Experiments
Internal and External Validity
Market Segmentation Bases
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Demographic
Geographic
Geo-Demographic
Benefit
Usage
Lifestyle
Market Segmentation:
Advantages
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Specific Definition of the Market
Satisfaction of Consumer Needs
Meeting Changing Market Demands
Assessment of Competitive Strengths
and Weaknesses
Efficient Allocation of Marketing
Resources
Precise Setting of Marketing Objectives
Haley, 1968
Toothpaste Market
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Sensory Segment
Worrier Segment
Sociable Segment
Independent Segment
Applications of Benefit
Segmentation
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Positioning
Repositioning
Competitive positioning
New market opportunities/niches
Positioning of multiple brands
Usage Segmentation
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Rate of Usage
Brand Loyalty
Usage Situation
Lifestyle Segmentation
Psychographics
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Activities
Interests
Opinions
Demographics
VALS I and II
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Maslow’s Hierarchy of Needs
Consumer Decision Making:
Types of Decisions
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Extensive Problem Solving
Limited Problem Solving
Routinized Response Behavior
Problem Recognition:
Causes in Current State
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Depletion of Stock
Dissatisfaction
Decrease in Finances
Increase in Finances
Problem Recognition:
Causes in Desired State
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New Need Circumstances
New Want Circumstances
New Product Opportunities
Purchase of Other Products
Information Search
and Evaluation
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Incidental Learning
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Directed Search and
Evaluation
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Internal only
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loyalty
impulse
Internal and External
Purchasing Process
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When to buy?
Where to buy?
How to pay?
How much to buy?
Post-purchase Behavior
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Cognitive Dissonance
Satisfaction/Dissatisfaction
Motivation
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Definition
Categories of Needs
Arousal of Motives
Motive Structuring
Motive Conflict
Motivation Theories
Motivation Theories
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Freud
Lewin
Maslow
Freudian Theory
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Basic Principles
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Homeostasis
Hedonism
The Structure of Personality
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Id
Ego
Super-ego
Projective Techniques
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Word Association
Sentence Completion
Cartoon Test
Thematic Apperception Test (TAT)
Rorschach Test (inkblots)
Lewin’s Field Theory
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Life Space
Person
Environment
Formula
Conflict
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Approach-Approach
Avoidance-Avoidance
Approach-Avoidance
Perception
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Definition
Threshold Levels
The Perceptual Process
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Selection
Organization
Interpretation
Selection
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Internal Factor
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Attitudes
Expectations
Motives
Attention Span
Perceptual Defense
Perceptual Vigilance
Adaptation
Perceptual Blocking
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External Factors
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Color
Contrast
Size
Position
Intensity/Magnitude
Movement
Humor
Fear
Organization
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Closure
Figure and Ground
Interpretation
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Physical Appearance
Stereotypes
Irrelevant Cues
First Impressions
Jumping to Conclusions
Halo Effect
Learning
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Definition
Learning Theories
Marketing Applications
Learning Theories
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Behavioral Learning Theories
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Classical Conditioning
Instrumental Conditioning
Cognitive Learning Theories
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Consumer Information Processing
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The Structure of the Memory
Memory Processes
Marketing Applications
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Classical Conditioning
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Creating Associations
Stimulus Generalization
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Family Branding
Product Line Extensions
Licensing
Look Alike Packaging
Marketing Applications
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Instrumental Conditioning
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Rewards
Reinforcement Schedules/Advertising
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Intermittent
Continuous
Involvement
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High Involvement
Hierarchy of Effects
Cognition
Attitude
Behavior
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Low Involvement
Hierarchy of Effects
Cognition
Behavior
Attitude
Communication
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The Nature of Communication
Communication Model
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Sender
Message
Receiver
Psychological Noise
Sender
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Source Credibility
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Trustworthiness
Expertise
Status
Other Dimensions
The Sleeper Effect
The Sleeper Effect
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Consumer forget the source of the message
faster than the message itself.
Over time, high-credibility sources lose power
to change attitudes.
Over time, low-credibility sources gain power
to change attitudes.
High-credibility sources need to reinstate
message.
Low-credibility sources should not reinstate
message.
Message
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Size, Color, Position
Order of Presentation
Humor
Agony Advertising
Content
Fear Appeals (moderate!)
Audience Participation
Order of Presentation
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Climax order
Anticlimax order
Pyramidal order
What works best, depends on consumer
involvement.
Receiver
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Selective Attention
Selective Perception
Selective Appeal
Cultural Dynamics
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Definition of Culture
Cultural Sensitivity
Culture and its Elements
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Material Culture
Social Institutions
Humans and the Universe
Aesthetics
Language
Culture Defined
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The sum total of knowledge, beliefs,
art, morals, laws, customs, and any
other capabilities and habits required by
humans as members of society.
The distinctive way of life of a group of
people, their complete design for living,
a mosaic of human life.
Subculture
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Definition
Types of Subcultures
Selected Subcultures
Acculturation
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the Learning of another Culture/Subculture
Types of Subcultures
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Nationality
Religion
Region
Ethnicity
Age
Gender
…and many more.
Stages of Acculturation
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Honeymoon
Rejection
Tolerance
Integration
Social Groups
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Definition
Types of Groups
Group Properties
Types of Groups
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Primary and secondary
Formal and informal
Membership and symbolic
In and out
Group Properties
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Status
Roles
Norms (Sanctions)
Power
Socialization
Power
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Reward
Coercive
Legitimate
Referent
Expert
Reference Groups
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Influence on product category choice
Influence on brand choice
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Factors:
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Luxuries vs. necessities
Publicly vs. privately consumed
Visibility