Consumer Behaviour
Chap 1: Buying, Having and Being
O1. Consumer behavior is a process.
Consumer Behavior: People in the Marketplace
What is Consumer Behavior?
Consumer Behavior as a Process:Involves pre-purchase, purchase, and post-
purchase activities.
Think about the last time you bought a new phone. What factors influenced
your decision?
O2. Marketers have to understand the wants and needs of different consumer seg-
ments.
Heavy user & 80/20 rules
Heavy Users: Consumers who frequently purchase or use a brand's products,
often contributing significantly to sales.
Starbucks Rewards Program: Encourages frequent customers to return by of-
fering exclusive perks and discounts.
80/20 Rule (Pareto Principle): 80% of a company’s revenue typically comes from
20% of its most loyal customers.
Amazon Prime Membership: Amazon capitalizes on heavy users by providing
free shipping and exclusive deals to encourage repeat purchases.
Segmentation
Demographic
Age, Gender, Family Structure, Income, Social Class, Ethnicity, Geography,
Lifestyles
Examples: Age: Baby Boomers, Millennials, Gen Z. Gender: Differences in
product preferences. Family Structure: Household size affects buying deci-
sions. Income & Social Class: Luxury vs. budget products. Race/Ethnicity:
Cultural influences on purchasing habits. Geography: Urban vs. rural buy-
ing behavior. Lifestyles: Psychographic segmentation (values, interests).
Behavior
Big Data
Relationship marketing
Database marketing
O3. Our choices as consumers relate in powerful ways to the rest of our lives.
Marketing's impact on Consumers
Problem Recognition: Identifying a need (e.g., realizing a smartphone is out-
dated).
Information Search: Researching online reviews, asking friends.
Evaluation of Alternatives: Comparing different brands and features.
Purchase Decision: Selecting a product, influenced by promotions, brand trust.
Post-Purchase Behavior: Customer satisfaction, word-of-mouth, repeat pur-
chase.
O4. Our motivations to consume are complex and varied.
Consumer-Brand Relationships
Role Theory: Consumers play different roles in different situations (e.g., busi-
ness professional vs. casual buyer).
Types of Attachments:
Self-Concept Attachment: A brand reflects personal identity (e.g., Apple users).
Nostalgic Attachment: Emotional connection to past experiences (e.g., Coca-
Cola).
Interdependence: Daily reliance on a brand (e.g., Starbucks coffee)
Love: Deep emotional connection (e.g., Tesla fans).
O5. Technology and culture create a new “always on” consumer.
Factors Influencing Consumer Behavior
Psychological Factors:
Motivation: Maslow’s hierarchy of needs (basic needs vs. self-fulfillment).
Perception: How consumers interpret marketing messages.
Learning: Past experiences shaping future purchases.
Attitudes & Beliefs: Influencing product preference.
Social Factors:
Family Influence: Parents shaping brand loyalty in children.
Reference Groups: Friends, influencers affecting choices.
Culture & Subculture: Shared values and customs impacting buying habits.
Personal Factors:
Age & Life Stage: Needs change over time (e.g., student vs. parent).
Occupation & Income: Determines affordability and preferences.
Personality & Self-Image: Aligning with brand identity (e.g., eco-conscious
consumers preferring Tesla).
[Link] Impact of Technology on Consumer Behavior
The "Always-On" Consumer: Digital Natives, social media, and mobile commerce.
Due to smartphones, social media, and digital marketing, consumers are con-
stantly connected.
Brands use push notifications, personalized ads, and AI-driven recommenda-
tions to influence decisions in real time.
B2C vs. C2C E-Commerce: Online shopping vs. peer-to-peer selling platforms.
B2C: Traditional online shopping (e.g., Amazon, Apple Store) where businesses
sell directly to consumers.
C2C: Peer-to-peer marketplaces (e.g., eBay, Facebook Marketplace) where
consumers sell to each other.
Synchronous vs. Asynchronous Interactions: Real-time vs. delayed communica-
tion in customer service.
Synchronous: Real-time customer engagement (e.g., live chats, virtual shopping
assistants, live-stream shopping).
Asynchronous: Delayed interactions (e.g., email support, social media mes-
sages, AI chatbots).
[Link] in Consumer Research
Interdisciplinary Nature of Consumer Research:
Psychology: Studying motivation, perception, attitudes.
Sociology: Examining cultural and social influences.
Economics: Analyzing spending behavior.
Anthropology: Understanding consumer rituals and traditions.
Positivist vs. Interpretivist Approaches:
Positivist: Quantitative, objective data-driven research.
Interpretivist: Qualitative, subjective analysis of consumer experiences.