Introduction to Consumer
Behaviour
Opening Vignettes
Tim Horton’s started in 1964
• Merged with Wendy’s in 1999
• Has operations in several states in
the US
• Mercedes Who is likely to be the
typical buyer of Smart?
Consumer Behaviour
The behaviour that consumers
display in searching for,
purchasing, using, evaluating,
and disposing of products and
services that they expect will
satisfy their needs.
Personal Consumer
The individual who buys goods
and services for his or her own
use, for household use, for the
use of a family member, or for a
friend.
Development of the Marketing
Concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept
The Production Concept
Assumes that consumers are interested
primarily in product availability at low
prices
Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion
Copyright © 2006 Pearson Education Canada Inc. 1-6
The Product Concept
Assumes that consumers will buy the
product that offers them the highest
quality, the best performance, and the
most features
Marketing objectives:
– Quality improvement
– Addition of features
Tendency toward Marketing Myopia
The Selling Concept
Assumes that consumers are unlikely
to buy a product unless they are
aggressively persuaded to do so
Marketing objectives:
– Sell, sell, sell
Lackof concern for customer needs
and satisfaction
The Marketing Concept
Assumes that to be successful, a
company must determine the needs and
wants of specific target markets and
deliver the desired satisfactions better
than the competition
Marketing objectives:
– Profits through customer satisfaction
Business Leaders Who Understood
Consumer Behaviour
AlfredSloan, General Motors
Colonel Sanders, KFC
Ray Kroc, McDonald’s
Implementing the Marketing
Concept
Consumer Research
Segmentation
Targeting
Positioning
Segmentation, Targeting, and
Positioning
Segmentation: process of dividing the
market into subsets of consumers with
common needs or characteristics
Targeting: selecting one ore more of the
segments to pursue
Positioning: developing a distinct image
for the product in the mind of the
consumer
Successful Positioning
Communicating the benefits of
the product, rather than its
features
Communicating a Unique Selling
Proposition for the product
The Marketing Mix
Product
Price
Place
Promotion
The Societal Marketing Concept
All companies prosper when society
prospers.
Companies, as well as individuals,
would be better off if social
responsibility was an integral
component of every marketing decision.
Requires all marketers adhere to
principles of social responsibility.
Digital Revolution in the
Marketplace
Allows customization of products,
services, and promotional messages like
never before
Enhances relationships with customers
more effectively and efficiently
Has increased the power of customers
and given them access to more
information
Digital Revolution in the
Marketplace - Continued
The exchange between consumers
and marketers has become more
interactive
May affect the way marketing is
done
Changes brought on by the
digital revolution
Changes in segmentation strategies
Re-evaluation of promotional budgets
– reduced impact of television?
– More internet-based promotion?
Integrated marketing becomes critical
– Using off-line promotions to drive
consumers to company’s website (and
vice-a-versa)
» Continued
Changes brought on by the digital
revolution - continued
Revamping distribution systems
– Direct distribution becomes more of an option
Pricingmethods may need to be re-
evaluated
– Comparison shopping made easier
Consumer research methods may
change
– How do you measure web-based promotions?
Why study consumer behaviour?
Understanding consumer behaviour
will help you become better marketers
as it is the foundation for
Segmenting markets
Positioning products
Developing an appropriate marketing
continued
Why study consumer behaviour?
Knowledge of consumer behaviour is
essential for non-profit organizations
– Non profits have different customers to
please
– Donors, users, volunteers, general public,
government
» continued
Why study consumer behaviour?
Publicservice initiatives have to be
based on an understanding of consumer
behaviour
– Canada’s largest advertiser is the federal
government
– Most government initiatives (e.g.,
antismoking campaigns) need a knowledge
of consumer behaviour to succeed
» continued
Why study consumer behaviour?
Better
understanding of our own
consumption behaviour