MGMC11H3 Chapter Notes - Chapter 1-6: Marketing Mix, Explicit Memory, Working Memory

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Consumer Behaviour
Chapter 1- Understanding Consumer Behaviour
DEF- Consumer Behaviour: totality of consumers’ decisions including acquisition, consumption, and
disposition of goods, services, experiences, activities, time, and ideas by decision-making units (aka
humans)
- Consumers makes decisions
- They make choices which may involve consumption of time
- Different consumers have different preferences ad choices
DEF- Offering: A product, service, activity, or idea offered by a marketing organization to consumers.
CONSUMER BEHAVIOUR INVOLVES MORE THAN BUYING
1. Acquiring: Buying is an acquisition behaviour. It involves decisions about time as well as money.
Leasing, trading, and sharing are all acquisition behaviour.
DEF- Acquisition: The process by which a consumer comes to own an offering.
2. Using: Usage is core of consumer behaviour. What we use symbolizes who we are, what we
value, and what we believe. Marketers need to be sensitive to when consumers are likely to use a
product, whether the marketing strategy is effective and how consumers are reacting after using.
DEF- Usage: The process by which a consumer uses an offering.
3. Disposing: Marketers see profit opportunities in addressing disposition concerns (eco-friendly,
biodegradable, recycled material etc.)
DEF- Disposition: The process by which consumers discard an offering.
CONSUMER BEVAHIOUR IS A DYNAMIC PROCESS
Acquisition, consumption, and disposition can occur over time in a dynamic order (hours, days, weeks
and so on). For example, a family using a car gives us marketers information about its reliability, effects
to the environment which affects when, how, and why the members will dispose the car by selling,
trading, or junking it. Consumer disposition decisions are linked to their acquisition decisions. Many
businesses exist to link this disposition and acquisition from one consumer to the next (e.g. Goodwill,
eBay). Consumers can become cocreators of products by participating in providing feedback and
suggestions to companies about the logo, the product extensions, ads, and other marketing strategies.
CONSUMER BEHAVIOUR CAN INVOLVE MANY PEOPLE
For example, when a family buys a car some people research about the car’s features while other simply
influence the decision-making process, then some people pay for the car and some or all may use the car
and when to dispose it off. All of this is collective consumer behaviour which affects one purchase.
CONSUMER EHAVIOUR INVOLVES MANY DECISIONS
____ Acquire/ Use/ Dispose
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1. Whether to: Spend or save money when consumers have extra cash. Spending habits need to be
considered. Sometimes decisions are based on personal goals, safety concerns, or a desire to
reduce economic, social, or psychological risks.
2. What Offering to: Choices between product or service categories and between brands. Choices
can be influenced by proper marketing. Different age groups have different spending habits.
People around the age of 34-54 spend the most money. People under 25 spend the least.
3. Why: If the offering meets someone’s needs, values, or goals, consumption will occur. This may
include self-reflection. Reason to use an offering can have conflicts leading to difficult
consumption decisions (addictions).
4. Why not: Outdated products, businesses closing which means consumer won’t have after-sale
support from the company. Also, the consumers may not be able to consume because what they
want is unavailable. Ethics and social responsibility (child labor, pirated movies) also lead
consumer to not buy.
5. How to:
Acquiring: Can be in a store or online. Can be through cash, debit, credit, phone payment, or
PayPal. There are eight ways to acquire an offering
a. Buying- most common acquisition method for an offering
b. Trading- receive as a part of a trade
c. Renting or leasing- houses, vacation homes, cars, and much more
d. Bartering- exchange without money changing hands
e. Gifting- formal or informal
f. Finding- a hat on the bus?
g. Stealing- illegal
h. Sharing- with family, YouTube videos, can be illegal (for example, sharing movies)
Using: Marketers need to ensure that consumers are using their offering correctly. Improper use
can have negative implications (health and safety problems).
Disposing: Some products are disposed off in the form of excretion (i.e. poop). Consumers who
want to dispose off a tangible product have several options:
a. Find a new use for it- old toothbrush to clean rust off tools
b. Get rid of it temporarily- rented vacation home
c. Get rid of it permanently- garbage it, recycle it, trade it, donate it, sell it, or just give it away.
However, some people choose not to throw things away that have an emotional value to the
consumer even if the offering no longer serves a functional purpose.
6. When to: Timing of consumer behaviour can depend on factors like perception and attitude
towards time (“it’s time for me to ____”), as well as spontaneous. Time of the day can influence
our buying choices as well (breakfast on the run, drinks at the pub).
Variety can affect our choices (not wanting to eat a sandwich because you had one yesterday).
Buying decisions can be influenced by family, culture, traditions, and the area we live in. For
example, buying Christmas gift in November or December.
Comparing with others are using/ not using offerings. For example, buying Adidas dry-fit pants
because they are currently in fashion or choosing to go to the gym when it’s less busy. Waiting in
line for sales and product launches can be frustrating but we can be reassured by seeing the line
behind us and think about how desirable a product is.
Acquiring can also include buying a newer version of what we already own. For example, a
laptop, an iPhone, or upgrading to the Netflix premium account. This can be difficult if we have a
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sentimental value but marketers can affect when consumers upgrade by providing economic
incentives.
Using your mom’s old jacket from when she was a teenager can be an example of returning
trends. You have an item but you choose to use it when it is back in fashion. Also, disposing an
item when it is broken, worn off, or lost its value to a consumer.
7. Where to: In store, online, by phone, or by mail. Internet allows us to acquire and dispose
conveniently, get great deals, and we are also able to find unique products. Consuming products
at home (such as a pregnancy test), or food (at a restaurant), wireless connections (phone calls in
public), and charitable donations via text message.
Where to dispose can include throwing a magazine in the garbage or recycling it. Where to
dispose special possessions once one dies and who’ll take on what so there is no conflict. Dying
people may want that their family will treasure their mementos.
8. How much, how often, and how long to: Usage decisions can vary from person to person and
culture can have an impact too (Switzerland consumers a lot more chocolate than Russia).
Sales of an offering can be increased when the consumers use the product a lot or use it more
frequently or use it for a long time. Stockpiling depending on what kind of product is being
stocked. “FUN FACT”: flat-fee pricing usually motivates consumers to pay more because they
over estimate their spending habits.
Some consumers acquire, use, and dispose at an unhealthy rate. Researchers are investigating
what affects consumers’ ability to control temptations, self-control, and change consumption
choices.
CONSUMER BEHAVIOUR INVOLVES EMOTIONS AND COPING
Emotions can determine how customers make decisions, what they remember about an experience, and
how much they enjoyed/ hated an experience. They can also show consumers’ attachment to specific
brands or possessions. Consumers can consume to regulate feelings (eating ice cream on their period).
Coping with difficult situations, stressful events, loss to possessions, and marketing to low-literacy
consumers who might be unable to understand the brand message.
WHAT AFFECTS CONSUMER BEHAVIOUR?
Factors affecting consumers’ AUD decisions can be classified into four domains which are all
interconnected:
1. The psychological core
2. The process of making decisions
3. The consumer’s culture
4. Consumer behaviour outcomes and issues
THE PSYCHOLOGICAL CORE: INTERNAL CONSUMER PROCESSES
Consumers need to have some basic knowledge about an offering upon which they base their decisions.
Motivation, Ability, and Opportunity (MAO): Motivation to learn about offerings and alternatives, ability
to buy/ experience an offering and determine which option works best for individual needs and wants, and
the opportunity to learn about the offering and experience it. Consumers don’t want to make a bad choice
and waste money which is a motivation. Choices can be concrete (costs) or abstract (value) which
depends on self-concept.
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Document Summary

Def- consumer behaviour: totality of consumers" decisions including acquisition, consumption, and disposition of goods, services, experiences, activities, time, and ideas by decision-making units (aka humans) They make choices which may involve consumption of time. Different consumers have different preferences ad choices. Def- offering: a product, service, activity, or idea offered by a marketing organization to consumers. Consumer behaviour involves more than buying: acquiring: buying is an acquisition behaviour. It involves decisions about time as well as money. Leasing, trading, and sharing are all acquisition behaviour. Def- acquisition: the process by which a consumer comes to own an offering: using: usage is core of consumer behaviour. What we use symbolizes who we are, what we value, and what we believe. Marketers need to be sensitive to when consumers are likely to use a product, whether the marketing strategy is effective and how consumers are reacting after using.

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