MKC2110 Study Guide - Final Guide: Consumer Behaviour
6 Jun 2018
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MKC2110 LECTURE 28.07.15
• What is a need – A state of felt deprivation.
• What is a want – The form human needs take as they are shaped by culture, individual
personality and circumstances.
• What is value – The difference between benefits of use/ownership/consumption and costs
of obtaining those benefits.
VALUE
CONSUMER BENEFITS – E.g. Driving a car.
- Functional benefits – getting from A to B
- Symbolic benefits -
- Experiential benefits – playing own music.
- Acquisitions benefits - Shopping
- Disposal benefits – money/packaging
CONSUMER COSTS
- Acquisition costs;
▪ Financial
▪ Time
▪ Psychic – cost of worrying
▪ Search
- Costs of consumption
- Costs of disposal
How do we decrease the cost to the consumer?
- Reduce cost to consumer – decrease to financial cost. If we reduce the financial cost,
consumers will buy more – a high level of price elasticity.
- What impact does selling online have on consumer cost – reduces time and search
cost.
How to increase price and reduce overall consumer cost?
- If we have a strong brand. Reducing price elasticity – reducing all things added to value
(financial, time, psychic, search).
• What is a segment – Individuals with one or more similar characteristics that cause them to
have similar product needs.
- Gender, age, demographics are the last thing we want to use as a main characteristics.
- Aim to satisfy customers’ needs – need segment to share the same needs/benefits
sought.
• What is a theory – Explain some observation, leads to develop hypothesis, which predict
what we expect to happen if one or more variable is changed. Use a theory to manage the
outcome.
How do we segment markets?
- Divide (by benefits sought) then describe
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