Introduction To Consumer Behaviour
What Is Consumer Behaviour?
- The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services,
ideas, or experiences to satisfy needs, wants and desires
o Identifying opportunities
o Defining markets
o Segmentation
o Building relationships
o Produce
o Place
o Price
o Promotion
Demographics: gender, income, occupation
Psychographics: lifestyle and personality
Consumers’ Impact On Marketing
- Consumption communities via the internet allow idea sharing and recommendations for consumption
- Various subcultures share certain values
- Brands have defined images that resonate with consumers and result in brand loyalty
- Various groups influence consumer choices by individuals and organizational buyers
Consumer Behaviour Is A “Process”
Consumer’s Perspective
Marketer’s Perspective
Pre purchase Issues
How does a consumer decide that he/she
needs a product? What are the best sources of
information to learn more about alternative
choices?
How are consumer attitudes toward
products formed and/or changed? What
cues do consumers use to infer which
products are superior to others?
Purchase Issues
Is acquiring a product a stressful or pleasant
experience? What does the purchase say about
the consumer?
How do situational factors, such as time
pressure or store displays, affect the
consumer’s purchase decision?
Post purchase Issues
Does the product provide pleasure or perform
its intended function? How is the product
eventually disposed of, and what are the
environmental consequences of this act?
What determines whether a consumer
will be satisfied with a product and
whether he/she will buy it again? Does
this person tell others about his/her
experiences with the product and
influence their purchase decisions?
Impact Of Marketing Strategy
- Knowledge and data about customers:
o Help to define the market
o Identify threats/opportunities in relation to a brand
Segmenting Consumers: Demographics
- Observable (countable) population characteristics
Segmenting Consumers: Psychographics
- Much more difficult to measure than demographics
- Personality
- Lifestyles Patterns of living as expressed by AIO dimensions
- Cultures, subcultures, ethnic identity, organized religion
- Roles
- Values
- Attitudes
- Intentions
- Cognitions, perceptions
- Emotions
- Abilities, intelligence
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Role Theory
- People play different roles and their consumption behaviours may differ, depending on the particular role they are
playing
The Meaning Of Consumption
- People often buy products not for what they do, but for what they mean
o Brands
Convey image/personality
Define our place in modern society
Help us to form bonds with others who share similar preferences
- Strong brand relationships evolve over time and resemble deep relationships
Marketing And Reality
- Difficult to separate popular culture and marketing efforts
- Television programmes, ads, and brands are all part of individual lifestyles
Brand Relationships
- Self concept attachment
- Nostalgic attachment
- Interdependence
- Love (“Love Mark”)
Ethical Standards Of Conduct
- Prescribed code of ethics guidelines:
o Disclosure of substantial risks with a product
o Identifying added features that will increase the cost
o Avoiding false or misleading advertising
o Avoiding selling or fundraising under the guise of market research
The Cognitive Consumer: Perception, Learning And Memory
Sensations
- Colors, sounds, odors, tastes, etc.
o Marketers contribute greatly to commotion
o Advertisements, packaging, radio/TV commercials, billboards, internet ads/banners, produce placement
- We pay attention to some stimuli, tune out others
o What we do pay attention to, we interpret from our unique experiences, biases, and desires
- Sensation
o Immediate response of our sensory receptors … eyes, ears, nose, mouth, fingers …
o Basic stimuli … light, colour, sound, odour, and texture
Sensations And Perceptions
- Perception
o Process by which sensations are selected, organized, interpreted
Adding meaning to raw sensations
Sensory Systems
- Unique sensory quality of product
o Differentiation from competition
- Hedonic consumption
o Demand for derived pleasure over and above functionality of the product
Vision
- Vision Advertising, store design, packaging
- Colour
o Cognitions (associations)
o Provokes emotion (affect)
o Reactions to color: biological & cultural
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Size
- We tend to eat more when food container is larger, our plate still contains food, we see assortment of foods
- We focus on height rather than width when pouring liquid into a glass
Smell And Hearing
- Odours =mood and memory (limbic system)
o Scented marketing
Cadillac’s “Nuance” scent = expensive upholstery
Most recognized smells: J&J Baby Powder, chocolate and coconut
Reactions to odors depend on cultural background Fragrances
- Many aspects of sound affect people’s feelings and behaviours
o Phonemes of brand = unique product meanings
o “I” brands are “lighter” than “a” brands
o Effect of Muzak
o Culture/language & sounds
Pronunciation
Mistranslations: “Bite the wax tadpole” (Coke) or “Eat your fingers off” (KFC)
Touch And Taste
- Haptic (touching) senses affect product experience and judgment
o Kansei engineering Design with feelings in mind
o Fabric textures and surfaces with products and packaging
- Taste & Experience
o Developing new concoctions for consumer palates
o Culture & learning from exposure helps share desirable tastes (i.e. Thai Food)
Exposure
- A stimulus comes within range of someone’s sensory receptors
o We can concentrate, ignore, or completely miss stimuli
- Sensory Thresholds
o Psychophysics study of how the physical world makes it to our brain…
o Absolute threshold minimum detected
Dog whistle we can’t hear it
Billboard with too much print we choose to ignore it
Any add with too much verbage on it ignore
Copy we find offensive when we decode it
o Differential threshold
JND = “just noticeable difference”
Weber’s law differences are relative
Reductions are not readily discernible to the public or are they?
Product improvements are perceived by the public when?
Many studies have shown that our sensory detection abilities decline as we grow older
o Subliminal perception
It is believed that many ads are designed to be perceived unconsciously (below threshold of
recognition)
- Does subliminal advertising work? Ethics?
o James Vicary’s infamous experiments (claimed) at a New Jersey Drive-In movie (1957)
Attention
- The extent to which processing activity is devoted to a particular stimulus
o Sensory overload
3500 ad info pieces per day
Multitasking
Marketers need to break through the clutter
- Perceptual selectivity
o Consumers attend to only a small portion of the stimuli to which they are exposed to
“The Way The Brain Buys” Activity
- Emerging marketing research on buyer behaviour:
o Time needed to “gear-up” for shopping (decompression zone), Bargain bins hint at deals
o Walmart greeters? Fresh fruit/veggies at entrance? Everyday items (bread, milk) at back of store; popular
items in middle of aisles
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