Definition
Consumer behavior: the study
of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
Interdisciplinary Approaches in the Study of Consumer Behavior
Anthropology conomics !istory and geography "sychology Sociology
Anthropology
#he study of people $ithin and across cultures mphasis on cross% cultural differences &uestioning of assumptions $ithin o$n culture
conomics
Basic economic issues
Supply and demand 'ational decision ma(ing "erfect information
mphasis on predicting )ehavior Complications in real life Behavioral economics* e.g., +mental accounting,
"sychology
Study of human thin(ing and )ehavior Some issues
"ersonality "ersonal development Cognition -thin(ing., perception Attention and its limitations +/earning,*e.g., ac0uired tastes
Sociology
Cultural and interpersonal influences on consumption*e.g.,
1ads, fashions Diffusion of innovation "opular culture
C23S45 ' D CISI23S:
#heory and 'eality in Consumer Buying
Problem Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Evaluation/ Behaviors
#heory Complications
#he Buyer Decision "rocess
Need Need Recognition Recognition Information Information Search Search Evaluation Evaluation of of Alternatives Alternatives Purchase Purchase Decision Decision Postpurchase Postpurchase Behavior Behavior
The The Buyer Buyer Decision Decision Process Process
Step Step 1. 1. Need Need Recognition Recognition
Difference Difference$et%een $et%eenan anactual actualstate stateand anda adesired desiredstate state
Need Need Recognition Recognition
Internal Internal Stimuli Stimuli "unger "unger
Thirst Thirst A Aperson#s person#snormal normal needs needs
External External Stimuli Stimuli
TV TVadvertising advertising
aga!ine aga!inead ad Radio Radioslogan slogan Stimuli Stimuliin inthe the environment environment
#he Buyer Decision "rocess
Step 6. Information Search
Personal Sources Commercial Sources Public Sources Experiential Sources
&amil'( friends( neigh$ors ost influential source of information Advertising( salespeople Receives most information from these sources ass edia )onsumer*rating groups "andling the product Examining the product +sing the product
The The Buyer Buyer Decision Decision Process Process
Evaluation Evaluationof ofQuality Quality Price Price ! !"eatures "eatures
Step Step 3. 3. Evaluation Evaluation of of Alternatives Alternatives
Product ProductAttributes Attributes
#hich #hichattributes attributesmatter mattermost mostto tome$ me$
Degree Degreeof ofImportance Importance
#hat #hat%o %oIIbelieve believeabout abouteach eachavailable availablebran%$ bran%$ Base% Base%on on&hat &hatI'm I'mloo(ing loo(ingfor for ho& ho&satisfie% satisfie% &oul% &oul%IIbe be&ith &itheach eachpro%uct$ pro%uct$ Choosing Choosinga apro%uct pro%uct)an% )an%bran%* bran%*base% base%on onone one or ormore moreattributes+ attributes+
Brand BrandBeliefs Beliefs
Total TotalProduct ProductSatisfaction Satisfaction
Evaluation EvaluationProcedures Procedures
#he Buyer Decision "rocess
Step 7. "urchase Decision
Purchase Purchase Intention Intention Desire Desire to to $u' $u'the the most most preferred preferred $rand $rand +nexpected situational factors
Attitudes of others
Purchase Purchase Decision Decision
The The Buyer Buyer Decision Decision Process Process
Step Step .. Postpurchase Postpurchase Behavior Behavior
Consumer's Consumer's Expectations Expectations of of Pro%uct's Pro%uct's Performance Performance Pro%uct's Pro%uct's Perceive% Perceive% Performance Performance
Satisfied Satisfied )ustomer, )ustomer,
Dissatisfied Dissatisfied )ustomer )ustomer
Cognitive Cognitive,issonance ,issonance
Stages in the Adoption "rocess
A%areness A%areness Interest Interest Evaluation Evaluation Trial Trial Adoption Adoption
Defining 5ar(eting
-ar(eting is a societal process by &hich in%ivi%uals an% groups obtain &hat they nee% an% &ant through creating offering an% freely exchanging pro%ucts an% services of value &ith others+ . Philip /otler
Core Concepts of 5ar(eting
3arget -ar(ets ! Segmentation 2ee%s #ants an% ,eman%s Pro%uct Pro%uctor or0ffering 0ffering 1alue 1aluean% an%Satisfaction Satisfaction Exchange Exchangean% an%3ransactions 3ransactions Relationships an% 2et&or(s -ar(eting -ar(etingChannels Channels Supply SupplyChain Chain Competition -ar(eting Environment
Simple 5ar(eting System
Communication
Industry (a collection of sellers)
Goods/services Goods/services
Money Money
Market (a collection of Buyers)
Information Information
3he "our Ps
#he 1our Cs
Marketing Mix Place
Product
Customer Customer Solution Solution
Price
Promotion
ConvenConvenience ience
Customer Cost
Communication
Company 2rientations #o$ards the 5ar(etplace
Production Production )oncept )oncept Product Product )oncept )oncept Selling Selling )oncept )oncept ar-eting ar-eting )oncept )oncept
Consumers Consumersprefer preferpro%ucts pro%uctsthat thatare are &i%ely &i%elyavailable availablean% an%inexpensive inexpensive Consumers Consumersfavor favorpro%ucts pro%uctsthat that offer offerthe themost most4uality 4uality performance performance or orinnovative innovativefeatures features Consumers Consumers&ill &illbuy buypro%ucts pro%uctsonly onlyif if the thecompany companyaggressively aggressively promotes/sells promotes/sellsthese thesepro%ucts pro%ucts "ocuses on nee%s/ &ants of target mar(ets ! %elivering value better than competitors
Customer Delivered 8alue
Starting point
&actor'
&ocus
Existing products
eans
Selling and promotion
Ends
Profits through sales volume
.a/ The selling concept
-ar(et Customer nee%s Integrate% mar(eting Profits Profitsthrough through customer customer satisfaction satisfaction
.$/ The mar-eting concept
