MKTG203 LECTURE 1

LECTURE 1:

Chapter 1: The foundations of consumer behaviour:

What is consumer behaviour: is the behaviour that consumers display in searching

for, purchasing, using, evaluating and disposing of the products and services that
they expect will satisfy their needs. The study of consumer behaviour includes:
- Hoe consumers think
- What they buy
- Why they buy it
- How often they buy it
- How often they use it
- How they dispose of it
Attitudinal Loyalty is the why… of the why…

Changing Product Life Cycle: many product categories, and changes in them are
driven by product life cycle. Shorter life cycle arises due to the pace of new product
introductions and changes in technology. Life cycle are increasingly shortened.

Changing Environmental Views and Concerns: marketers and public policy makers
are aware of the potentially negative impact of products and packaging. Many
consumers are socially aware and favour products that address environmental
concerns.

Changing Consumer Protection and Public Policy: as a result of consumer research

and lobbying, marketers have become more aware of their responsibility to protect
consumer interests. The ACCC ensures that companies act responsibly and
ethically.

Growing role of Service Marketing: Australia’s service sector forms a large part of the
economy. Marketing service offering can be difficult as services are  intangible,
perishable and inconsistent.
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Inseparability: service and experience are produced and consumed simultaneously.

Co-creation of value.

Growing Role of Global Marketing:

Changing Technology: technology has advanced the way that consumers interact
with companies and has allowed enhanced relationships. We do not longer need to
go to a store, we can buy online since we are in a global environment. There is a
constant force of consumption.

Changing technology: we love at what other people posts friends, influencers,

famous people in order to know what we want to buy. We no longer look at our
primary reference group, but we put our trust in strangers looking at what they linked
and how they move. We put our trust in stranger. Things have changed our form of
recommendation due to technology.

Develop of the Marketing Concept: we moved from Production Concept

(organisation centric, what their company need and what they think the market might
need)  Product Concept (recognition that they need variation since of differences
in the market)  selling Concept (sales person and sales orientation is needed,
manipulation and incentivise people)  Marketing Concept (Market research is
needed, understanding of society and society needs)  Societal Marketing Concept.

Student Activity: Consumer Culture, and Consumption Communities:

Concept of Consumption Community: in the modern era a high mobility, people look
not only to neighbourhood as a basis for feelings of community; but also, to
communality of consumption behaviour. We not only follow the brand, but we follow
other consumers who follow the brand, and the way they react to it, therefore
whatever they think and say impact us and its important and creates value for us not
only what the brand says. Also, brands tend to use normal people, normal
consumers for marketing encouraging everyday consumers to feel alike the brands
and other consumers and feel comfortable in order to feel like using the brand. This
is the poser so social media marketing and consumption community. Millennials are
more receptive as normal people wearing the brand than the marketing made by the
brands. In the past we had a vertical relationship  brand to consumer (traditional
marketing method of advertising) now we have horizontal relationship  consumer
to consumer, influencers, social media. Value of a brand is no longer created by the
brand; it is created by other consumers who wear the brand and makes you feel
alike. Consumer content is seen as authentic and consumers tend to believe more
on it, it is the power of social media marketing, making consumers believe.
Millennials are more resistant to traditional marketing message and more receptive
to content generated by other consumers. This is called ONLINE BRAND
COMMUNITY (OBC)  collection of consumers that follow a particular brand in an
online environment and create content and create value for the brand and other
consumers.

Marketing Impact on Consumers: consumption includes intangible experiences,

ideas and services in addition to tangible objects. Brands create personalities in
order to target consumers.
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Self-brand connection: we consumer brands that add something to tour identity, and
we use that to enhance our self, self-esteem, self-connection (how much does that
brand represent you).

Some of the types of consumption activities:

- Consuming as experience: subjective, emotional reactions to consumption
objects.
- Consuming as integration: consumers acquire and manipulate object
meanings.

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SELF brand connection: we consume brands that adds something to our identity.

Virtual consumption: the digital revolution is one of the most significant influences on
consumer behaviour, electronic marketing increases convenience by breaking down
the barriers of time and location. Has created a revolution in B2C e-commerce
(businesses selling to consumers) and C2c e-commerce (consumers selling to each
other).

All about relationships: branding and consumer behaviour is all about relationships
which is not anymore with the brand but external consumers. This day we are
focused on interactive activity, we want the consumers to be dynamically involved, in
a multidirectional direction with other brands consumers to influence.
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Co-creation of Value occurs whenever consumers interact with companies or

products and thereby have an active role in the shaping of their experience and
ultimately value perception. Co-creation is about collective intelligence of consumers.

-Static perspective
 consumers are
active agents.
Constant dialogue
with consumers.
24/7 constant
market research.

Primary Research:
Qualitative: focus groups, in depth interviews, (story telling).
Quantitative: observational research, experimentation, survey research, ().
Combination: uses both qualitative and quantitative methods.

 Companies offer value propositions  core reasons to buy brand.

 Customers are responsible for value actualization.
 Customer are co-creators (social media environment, what happens there,
comments, competitions, hashtags, what kind of content do contribute to) and
resources.