FINAL EXAM

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18 Apr 2012
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Chapter 1 Notes: Introduction to Consumer Behaviour
Consumer Behaviour:
-study of the process involved when individuals or groups select, purchase, use or dispose of products,
services, ideas, or experiences to satisfy needs and desires
-consumers take many forms, such as an 8year old begging her mom for a Barbie doll to a large
corporation choosing a multimillion dollar computer system
-items consumed can include anything from canned peas to a massage, democracy to a hip hop
-needs and desires to be satisfied range from hunger to thirst to love, status etc
-consumer behaviour is an ongoing process, not what happens the moment when a consumer hands
over money/credit card and in turn receives a good or service
-exchange is when 2 or more organizations or people give and receive something of value
-consumer is generally thought of a person who identifies a need or desire, makes a purchase, and then
disposes the product during the 3 stages in the consumption process (pre-purchase issue, purchase
issue, post-purchase issues)
-consumers may also be organizations/groups in which one person may make the decision involved in
purchasing products that will be used by many
EX: when a purchasing agent orders a company’s office supplies which will be used by many
-purchase decisions may also be made by large groups of people
EX: company accountants, designers, engineers, sales personnel’s
-very simple and good understanding of consumer behaviour equals good business
Basis marketing concept states that firms exist to satisfy consumer needs, these needs can be
satisfied only to the extent that marketers understand the people/org. that will use the products
and services they are trying to sell which results in doing better than their competitors
-purpose of understanding consumer is to predict the future, anyone can see what is happening at
present, however in consumer behaviour we are also focused on what happens tomorrow
Segmenting Consumers:
-marketing segmentation identifies groups of consumers who are similar to one another in 1 or more
ways and then devises marketing strategies that appeal to one or more groups
-building loyalty to a brand is a very smart marketing strategy so sometimes companies define market
segments by identifying their most faithful customers or heavy users
-demographics are statistics that measure aspects of a population, such as birth rate, age distribution
and income
The changes and trends revealed in demographics studies are of great interest to marketers
because data can be used to locate and predict the size of markets for many products, ranging
from home mortgages to brooms and can openers
-demographic dimensions include:
Age- different age groups have different needs and wants
Gender- many products are targeted at either men or women
Family Structure- persons family and marital status is another important demographic because
it has such a big effect on a consumers spending priorities
Social Class and Income- people are grouped within social class are mostly equal in terms of
their income and social standing in the community, the distribution of wealth has a great
interest to marketers because it determines which groups have the greatest buying power and
market potential
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Ethnicity- multiculturalism and Canada go hand in hand, Canada accepts nearly 1 million
immigrants and refugees every 4 years, by far the highest per capita rate of immigration in the
world
Geography- climate change drastically from region to region, makes segmenting some products
by region obvious. Ex: more snow blowers and fur costs are sold more east of the Rocky
Mountain; more umbrellas are rain coats to the west.
Lifestyles (Beyond Demographic) consumers have a very different lifestyle, even if they share
same characteristics such as gender/age. The way they feel about themselves, what they like to
do in their spare time
The Dark Side of Consumer Behaviour:
-consumer desires, choices and actions sometimes result in negative consequences to the individual
or society
-some customer activities form social pressure such as drinking or cigarette smoking, and the
cultural value placed upon money can encourage activities such as shoplifting or insurance frauds
-sometimes exposure to unattainable media ideals of beauty and success can create dissatisfaction
with self
-Dark Side Includes:
Addictive Consumption: consumer addiction is a physiological or psychological dependency
on products or services.
This type of addiction includes alcohol, drugs, cigarettes, and many companies
profits by selling addictive products or selling solutions to addiction
Technology can also be addicting such as Blackberry, some people even call it
“crackberry” now since it is so hard to stop checking your phone. Internet addiction
is already a big problem in South Koreans.
Compulsive Consumption: refers to a repetitive shopping, often excessive, done as an
antidote to tension, anxiety, depression or boredom.
“Shopaholics” turn shopping in much the same way as those with addiction to drugs
These consumers shop because they are compelled to do so rather than because
shopping is a pleasurable or functional task, the act of shopping itself is an addicting
experience for some consumers
Gambling is an example of consumption to addiction that touches every segment of
consumer society, whether it takes form of casino gambling, playing slots, betting
on sports, buying lottery tickets. Excessive gambling can be quite destructive
Illegal Activities: includes consumer theft, anti-consumption and many more etc
Consumer Theft can occur online and offline. Online by receiving emails offering us
fabulous riches if we help to recover a lost fortune from a back account etc.
In North America, a retail theft happens every 5 seconds. Shrinkage is the
industry term for inventory and cash losses from shoplifting and employee
theft
Exchange and Return Policies- is another growing factor. Big companies like
Guess and Staples are using software’s that lets them track shopper’s track
record of bring items back. They are trying to crack down “serial wardrobes”
that buy an outfit, wear it once, and return it. Also, customers who change
price tags on items return one item for the higher amount and shoppers
who use fake or old receipts when making a return.
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Anti consumption- products and services are deliberately defaced or mutilated. Can
range from product tampering where innocent consumers are hurt or killed, to
graffiti on buildings and subways.
Can also take form of political protest, where activists alter or destroy
billboards and other advertisements that promote which they feel are
unhealthy or unethical acts. For EX: Alcohol advertising
Consumer Behaviour as a Field of Study:
-consumer researchers can be found from anywhere we find consumers
-consumer researchers work for manufacturers, retailers, marketing research firms, governments and
not for profit organizations, colleges and universities
-they may conduct focus groups or run large scale polling operations, they work on many types of topics
from everyday household products to high tech installations to professional services, museum exhibits
-consumer behaviour can be influenced by many different perspectives, people with trainings from
different fields such as psychophysiology to literature can be found doing consumer research
-look at the pyramid of consumer behaviour it gives some of an understanding of the disciplines working
in the field and at the level of which each approaches research issues
Field closer to the top of the pyramid concentrates on the individual consumer (micro issues),
while those towards the base are interested in aggregate activities that occur amount larger
groups of people (macro issues)
Chapter 2: Perception
Perception:
-where ever we turn to we are bombarded by a symphony of colours, sounds, and odors
-some of the notes in this “symphony” such as loud barking of a dog, the shades of the evening sky or
the smell of a rose occur naturally
-sensation is the immediate response of our sensory receptors (eyes, ears, nose, mouth, and fingers) to
such basic stimuli as light, colour, and sound
-Perception is the process by which these sensations are selected, organized, and interpreted, study of
perception focuses on what we add or take away from these raw sensations as we choose which to
notice and then go about assigning meaning to them
-like computers, people undergo stages of information processing in which stimuli are input and stored
however, unlike computers consumers do not passively process whatever information happens to be
present
-there are 3 stages that make up the process of perception
Exposure
Attention
Interpretation
Sensory Systems:
-external stimuli or sensory inputs can be received on a number of channels
-inputs picked up by our 5 senses constitute the raw data that generate many types of response
For EX: hearing a song on the radio can generate internal sensory experiences when the song on
the radio triggers a young man’s memory of his first dance and brings to mind the smell of his
date’s perfume or the feel of her hair on his cheek
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