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BEHAVIOUR CONSUMER BEHAVIOUR What Is Consumer Behavior? Activities people undertake when obtaining, consuming, and disposing of products and services OBTAINING REFERS TO THE ACTIVITIES LEADING UP TO AND INCLUDING THE PURCHASE OR RECIPT OF A PRODUCT CONSUMING HOW WHERE WHEN WHAT CONSUMERS USE PRODUCTS DISPOSING HOW CONSUMERS GET RID OF PRODUCTS AND PACKAGING Consumer Behavior The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. WHY WE BUY Consumer Behavior Is Interdisciplinary Psychology Economics Anthropology Sociology Social psychology Why Study Consumer Behavior? Consumer Behavior Determines the Success of Marketing Programs Marketing can be used to influence brand choice and purchase, while Demarketing can influence people to stop harmful consumption “The Customer is King” Organization influenced by consumer needs and wants Why Study Consumer Behavior? Consumer Behavior Determines the Success of Marketing Programs Organizations that are Customercentric use a total marketing approach to focus their resources on satisfying customers 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 Educating Consumers About Crises Educating Consumers About Health Understanding consumers’ issues or problems and developing methods to reach and educate consumers 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 SOME DELIBRATIONS Evolution of Consumer Behavior Supply Chain: all the organizations involved in taking a product from inception to final consumption - Manufacturers - Wholesalers - Retailers - Facilitating Organizations Consumers’ Increased Influence on Business Evolution of Consumer Behavior Wholesaler Wholesaler Manufacturer Manufacturer Manufacturing Orientation Retailer Retailer Consumer Consumer Selling Marketing Consumer Orientation Orientation Orientation Evolution of Consumer Behavior Manufacturing Orientation Selling Orientation Marketing Orientation - Motivation research - Positivism - Postmodernism Evolution of Consumer Behavior Manufacturing Orientation Selling Orientation Marketing Orientation Consumer Orientation Consumer Orientation Beyond a marketing focus How all organizations 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 SOME DELIBRATIONS HOW TO STUDY CONSUMER BEHAVIOUR OBSERVATION CONSUMER BEHAVIOUR EXPERIMENTATION INTERVIEWS AND SURVEYS The Underlying Principles of Consumer Behavior The Consumer Is Sovereign The Consumer Is Global Consumers Are Different; Consumers Are Alike The Consumer Has Rights Consumers appear different but respond in similar ways to brands A Simple Model of Consumer Decision Making - Figure