TOPIC 1.
STUDYING CONSUMER BEHAVIOUR
1. CONSUMER BEHAVIOUR CONCEPT AND CHARACTERISTICS
Consumers are at the centre of marketing activities.
→ How is CB related to marketing?
The consumer behaviour is the first step in the marketing process, we need to understand the consumer needs.
→ Why does CB need to be studied?
To know what our market values most so we can offer this in our products.
→ What is Consumer Behaviour?
Consumer behaviour: all the activities that individuals or groups develop when they: - SELECT, PURCHASE, USE
and DISPOSE of products, services, ideas or experiences to satisfy NEEDS and/or DESIRES. In these activities:
(1) Emotional and mental processes, (2) External factors to consumer and (3) Physical
actions(behaviours) are involved.
→ Dimensions that have to be analysed:
CHARACTERISTICS OF THE CONSUMER BEHAVIOUR
• It is a process that consists of several activities, so it is a process:
- Acquisition phase: Pre-purchase, purchase
- Consumption phase: Post-purchase
- Disposing phase: Post-purchase
It is complex and multi-dimensional.
It differs depending on time.
The making decisions process is situacional.
• It is a motivated behaviour.
• It “switches on” the individual on the whole individual’s psychological system: cognitive, affective and
behavioural
- Cognitive Dimension: Involves information processing, perception, and decision-making. Consumers
actively seek, interpret, and evaluate information to form perceptions.
- Affective Dimension: Influenced by emotions and feelings associated with products or brands.
Emotional responses play a crucial role in shaping purchasing decisions.
- Behavioral Dimension: Encompasses actual purchase decisions and actions taken. Post-purchase
behavior, including satisfaction and loyalty, is a key component.
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• It involves different roles. These roles provide insight into the various stages and responsibilities within the
consumer journey:
- Initiator: The person who first identifies a need or desire for a product or service. Initiators set the
stage for the entire decision-making process by recognizing a problem or a need for a new product.
- Informer: Individuals or sources that provide information and recommendations regarding
products or services. Informers contribute by sharing knowledge and influencing others through
their expertise or experiences.
- Influencer: Those who have the power to sway the opinions and choices of others. Influencers may
include friends, family, celebrities, or experts whose recommendations impact the decision-making
process.
- Decider: The person responsible for making the final decision on which product or service to
purchase. Deciders weigh the information provided, consider preferences, and make the
ultimate choice.
- Buyer: The individual who physically makes the purchase, often distinct from the decision-
maker. Buyers execute the decision made by the decider and may be influenced by factors such
as pricing and availability.
- Payer: The party responsible for covering the financial aspect of the purchase. The payer might
be the buyer or a different individual, such as a parent or spouse.
- User: The person who consumes or utilizes the product or service. Understanding the user's
preferences and experiences is crucial for ensuring satisfaction and repeat business.
• It varies depending on the type of product and its life cycle:
- Tangibility: Tangible/ Intangible products
- Duration: Durable/ Non-durable products
- How consumers purchase them: Convenience products (impulse goods), Shopping products,
Speciality products, Unsought products.
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2. ANALYSING CONSUMERS WITHIN THE MARKETING DISCIPLINE
MARKETING ORIENTATION IN THE COMPANY
Outside-in approach:
• Production orientation
• Product orientation
• Sales orientation
• Marketing orientation:
- Research on consumer behaviour
- Analysis of the factors affecting buyers
- Market segmentation
- Product positioning
- Offers, prices, distribution channels, advertising
→ Why do consumers need to be studied?
The analysis of the consumer is the essence of the Marketing concept and the Marketing management.
We need a consumer knowledge in order to get the company goals and integrated strategy.
Strategic marketing (Analysis, Planification): A systematic and ongoing analysis of consumer needs in
order to provide the necessary information for the development of profitable products for specific buyers,
which demonstrate qualities that differentiate them from competitors.
Operational marketing (Organization, Implementation, Control): Marketing-mix strategies organization
and design: offer strategies (product and price), strategies to market (distribution and communication),
with the aim of conquering the selected markets in a short and medium term.
The role of consumer research in a marketing strategy is the first step and very important.
1) Consumers: Affect and cognition, Behaviours, Environments
2) Consumer research and analysis
3) Marketing strategy development
4) Marketing strategy implementation
MARKET SEGMENTATION
The market is made up of groups of customers with similar needs or sought benefits
What do customers want?
o The consumer choice relies, not on the product itself, but on the benefits or services that consumers expect from
the product
o Each product is a set of attributes or characteristics
o Different products can meet the same need
o The same product can meet different needs
MARKETING MIX
The four Ps of marketing is a marketing concept that summarizes the four key factors of any marketing
strategy. The four Ps are: product, price, place, and promotion. Investigate the consumer to design the:
- Product strategy
- Price strategy
- Distribution channel (Place) strategy
- Communication (Promotion) strategy
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3. APPROACHES WHEN ANALYSING CONSUMER BEHAVIOUR
Consumer behaviour is an interdisciplinary research field: psychology, economics, sociology, anthropology,
marketing and mathematics.
Analysing consumer behaviour involves various approaches that delve into economic, psychological, and
sociological aspects. Each approach offers unique insights into the factors influencing consumers.
• Economic Approach: analyzing the influence of income levels on purchasing power and how price changes
affect consumer choices. Looks at how money and costs affect what people buy. Examines how prices and
budget impact shopping decisions by considering economic indicators and trends that may impact
consumer confidence and spending habits.
• Psychological Approach: understanding the underlying motivations that drive consumer behavior and
how individuals perceive products or brands. Explores why people buy things based on their thoughts and
feelings. Studies why we buy things based on what we think and how we feel by examining how
consumers acquire information, learn from experiences, and retain memories that shape their choices.
• Sociocultural Approach: Exploring the impact of social factors, such as family, friends, reference groups,
and culture, on consumer behavior. Studies how society and culture influence what people buy. Examines
how our community and culture shape our shopping choices by considering cultural norms, values, and
subcultures that shape preferences and buying patterns.
In a nutshell,
economic approach→money,
psychological approach → thoughts and feelings,
sociological approach →influence of society and culture on what people choose to buy.
4. STAGES AND DETERMINANTS IN CONSUMER DECISION MAKING
Internal variables that affect: Personality, Lifestyles, Motivation, Perception, Attitudes, Learning, Memory
External Variables: MICRO: Groups, family || MACRO: Social class, Environment, Culture/subcult.
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• Problem recognition: initial stage where a consumer identifies a need or a problem that can be satisfied
through a purchase. Problems can arise from internal factors (personal needs or desires) or external
factors (advertisements, recommendations, or changing circumstances).
*Marketers aim to create awareness of needs or problems that their products or services can address,
often through advertising and promotional campaigns.
• Information research: after recognizing a problem, consumers actively seek information to find possible
solutions. Consumers may gather information from various sources such as friends, family, online reviews,
advertisements, and product specifications.
*Providing easily accessible and credible information about products or services is crucial at this stage.
Marketers can influence consumers by ensuring their brand is part of the information search results.
• Evaluation of alternatives: consumers compare and evaluate different options based on specific
criteria such as price, quality, brand reputation, and features. The criteria for evaluation vary based on
the nature of the product and individual preferences.
*Marketers aim to highlight their product's unique selling points and advantages during this stage.
Reviews, testimonials, and comparison charts can assist consumers in making informed decisions in
favor of their product.
• Buying (or not) decision: the consumer makes the final decision to purchase or abstain from buying
a particular product or service. The consumer's evaluation of alternatives, personal preferences,
budget constraints, and external influences contribute to the final decision.
*Clear calls to action, promotions, and favorable terms can encourage consumers to make the
purchase. Understanding and addressing potential barriers or concerns is crucial to overcoming
resistance.
• Outcomes after buying the product: this stage involves post-purchase behavior and experiences.
Consumers assess whether the product meets their expectations, leading to satisfaction or
dissatisfaction. Positive experiences may lead to repeat purchases and positive word-of-mouth,
while negative experiences can result in complaints and brand switching.
*Ensuring customer satisfaction through post-purchase support, follow-up communication, and loyalty
programs is essential. Positive post-purchase experiences can lead to brand advocacy and long-term
customer relationships.