Understanding Consumer Behavior
DEFINING CONSUMER BEHAVIOR
consumer behavior reflects the totality of consumers decisions with respect to the acquisition consumption
-
, ,
and disposition of 1 human) decision
goods ,
services , activities , experiences people , and ideas by
,
-
making
units [overtime]
INVOLVES MORE THAN JUST BUYING
marketers interested in how consumers buy use and dispose of an offering
-
, ,
acquiring .
Consumer ways of obtaining goods and services (
buying)
using process
.
by which consumers use an offering (
consuming
disposing . how consumers
get rid of an
offering
DYNAMIC PROCESS
-
acquisition consumption
, ,
and disposition occur over time in a dynamic ,
)
order ( hours , days , weeks months , years
markets are designed around linking one consumer's disposition decision to another consumer's
-
acquisition decisions
INVOLVES MANY DECISIONS
-
Whether to acquire /use / dispose of an
offering ( often related to personal goals safety , ,
or desire
What offering to acquire / use / dispose of
-
why acquire / use / dispose of an offering
-
why an offering is not acquired / used / disposed of
-
how to acquire /use / dispose of an
offering
-
when to acquire / use / dispose of an offering
-
where to acquire /use / dispose of an
offering
how much , often , and long to
acquire /use/ dispose of an
offering
-
INVOLVES EMOTIONS AND COPING
-
positive and negative emotions affect how consumers think , choices they make , how they feel after making a
a decision , what they remember , and enjoyment
-
cope with difficult choices , use goods and services to cope
WHAT AFFECTS CONSUMER BEHAVIOR?
THE PSYCHOLOGICAL CORE: INTERNAL CONSUMER PROCESSES
-
motivation , ability , and opportunity ( learn and think to make choices
attention , perception and comprehension ( information relevant any decisions
-
exposure , ,
to
and knowledge ( choices based information retrieved from memory)
-
memory on
forming and (
change as new information is encountered)
changing attitudes can
-
PROCESS OF MAKING DECISIONS
problem recognition and the search for information
-
occurs when we realize that we have an unfulfilled need
making judgements and decisions
high -
effort decision : exposed to lots of information , think deeply , analyze critically , and form attitudes
low effort decision : less information search and deeply , enduring attitudes
process information less less
-
making postdecision evaluations
-
allows judge whether a decision made
consumers to was the correct one and whether to purchase again
THE CONSUMERS CULTURE: EXTERNAL PROCESS
culture refers to the
typical /expected behaviors , norms , and ideas that characterize of
-
a
group people
reference shared and
groups people
: whose values are
opinions
-
consumers compare themselves with ( behavior attitudes , ,
or )
values
-
diversity influences
-
household and social class influences
values,
-
personality and lifestyles ,
CONSUMER BEHAVIOR OUTCOMES AND ISSUES
symbolize who we are
-
affect the symbols external consciously unconsciously to our
groups can or
signs we use, or express
actual or desired identity
-
diffuse through a market l can affect consumers decisions in a market)
WHO BENEFITS FROM THE STUDY OF CONSUMER BEHAVIOR?
MARKETING MANAGERS
consumer behavior important to develop marketing strategies and tactics
-
marketing is the activity set of institutions , and processes for creating communicating delivering and
exchanging
-
, , , ,
offerings with value for individuals ,
groups ,
and society
consumer behavior insights needed to understand what consumers and clients value
-
ETHICISTS AND ADVOCACY GROUPS
-
consumers sometimes form advocacy groups to create awareness of inappropriate practices
influences other consumers and targeted companies
PUBLIC POLICY MAKERS AND REGULATORS
-
consumer behavior crucial in developing policies and rules to protect consumers from unfair, unsafe , or inappropriate
marketing practices
helps government officials understand and try to improve consumer welfare
ACADEMICS
academics disseminate knowledge about consumer behavior when being taught
-
about consumer behavior when research is conducted act , think , and feel
generates knowledge on how consumers
-
CONSUMERS AND SOCIETY
-
provides tools for more informed decision -
making
-
proudact ,
service , and communication developments to protect certain consumer segments
MARKETING IMPLICATIONS OF CONSUMER BEHAVIOR
how marketers behavior concepts in the real world
apply consumer
-
-
-
marketing segmentation targeting
helps develop product specific plans and broader strategies for
, , ,
and positioning
DEVELOPING AND IMPLEMENTING CUSTOMER-ORIENTED STRATEGY
how is the market segmented ?
-
understand different groups in and
a market whether to make an
offering
how ?
profitable is each
segment
-
identify consumer needs not being met and reveal the size and profitability of each segment
-
What are the characteristics of consumers in each segment ?
demographics ( age , education , and lifestyle)
Know if /shrink
a
segment is to
grow over time
-
are consumers satisfied with existing offerings ?
helps companies come up with new product ideas and new ways of promotion
SELECTING THE TARGET MARKET
-
determine which consumer
groups are appropriate targets for
marketing tactics ( heavy
product users vs .
light)
involved in acquisition ,
identify who is to be
usage , and disposition decisions
-
DEVELOPING PRODUCTS
-
what ideas do consumers have for new
products ?
Customers collaborate with marketers /each other on development of new offerings
-
what attributes can be added / changed in an existing offering?
When and modify tailor meet the needs of new or of consumers
how to or a product to existing groups
-
how should the
offering be branded ?
Choosing a brand and differentiating it from competing brands and other brands in product portfolio
-
What should the packaging look like?
consumer research to test alternative packaging and logos
POSITIONING
image should reflect what the and how it differs from competition
-
product is
( perceptual map)
-
how are competitive offerings positioned ?
-
how should our offerings be positioned ?
-
should our repositioned? ( change image)
offerings be
MAKING PROMOTION AND MARKETING COMMUNICATION DECISIONS
decisions about promotional /marketing communications tools , including advertising sales promotions
-
, ,
personal selling ,
and public relations
-
what are advertising objectives ? -
has our advertising been effective?
-
What should our advertising look like? -
sales promotion objectives and tactics
-
Where should advertising be placed?
-
have our sales
promotions been effective?
-
When should we advertise? -
how can
salespeople best serve customers?
MAKING PRICING DECISIONS
-
the
price of a
product/service can have critical influence on consumer's acquisition usage and disposition decisions
, ,
- What price should be
charged ?
sensitivity and price changes
-
to
price
-
knowing when to use certain tactics
MAKING DISTRIBUTION DECISIONS
-
product distribution and how they are sold to consumers in retail stores
Where and when ?
-
are target customers likely to shop
distribution channels that allow consumers to acquire or use
offerings whenever and wherever it is most convienent
-
What do customers want to see in stores?
retailers want to
carry the assortment of merchandise best suited to consumers who shop in their stores
-
how should stores be designed ?
Consumers think about items in terms of
categories based on
product 's similar characteristics or use
store
design depends on whether consumers are shopping for fun or seeking to quickly accomplish a particular
task like
buying a certain item
stores and retail websites can be
designed to convey a specific image and for friendly functionality on
on devices used by targeted consumer
groups