Consumer Behaviour

Lecture 1

Term IV
 Course Objectives:
• Influences on consumer buying processes
• External and Internal determinants to
consumer behaviour
• How we construe our buying/spending:
perceptions, attitudes & motivations
• Role of psychology and neuroscience on
branding and communication decisions.
• Marketing strategy & communications
design implications
 Chapter Objectives:
1. Consumers use products to help them define their
identities in different settings.
2. Consumer behavior is a process.
3. Marketers need to understand the wants and needs
of different consumer segments.
4. The Web is changing consumer behavior.
5. Many different types of specialists study consumer
behavior.
 Consumer Identity as an Aid to
Marketers
• Consumers segmented by demographics and
psychographics
• Consumers understood in part based on their
consumption communities and reference groups
• Brands target consumers using market
segmentation strategies
• Consumers may choose brands that match with
their own identities
Products and owners’ identity
Products and owners’ identity
 TECHNOLOGY AND CONSUMER

How does technology affect the Marketing Mix?

• Interactive and novel communication

channels
• Customizing products and promotional
messages
• Better prices and distribution
Technology and Marketing
Kfc’s value proposition to
customers
The Pyramid of Consumer Behavior

How we buy (a rational view)
• functional
• emotional ?
• current vs desired situation
• relative importance
• need inhibitors
Need recognition,
problem-awareness
Information search
• internal search (memory)
• external search (personal
sources, commercial sources
• third party reports (e.g. Which)
• personal observation/testing
Window-shop – simmering interests
Shape desire, want
Evoked
Information search set
Evaluate alternatives (against evoked set)
Buy

Evaluate alternatives Post-purchase

• are they aware of need ? evaluation
• can we mediate need inhibitors? Buy
• can we stimulate awareness &
action Post-purchase
evaluation
 Definition of Consumer Behaviour

The dynamic interaction of cognition, behaviour and

environmental events by which human beings
conduct the exchange aspects of their lives.

Those actions directly involved in obtaining, consuming,

and disposing of products and services, including the
decision processes that precede and follow these
actions.
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 Consumer Behaviour Reflects:

The totality of About the

actions consumption Of an By decision
offering making overtime
• Acquisition
units
• Whether
• Products • Information • Hours
• What
• Usage • Services gatherer
• Why
• Time • Influencer • Days
• How
• Ideas • Decider
• When
• Where • Disposition • Purchaser • Weeks
• How • User
much • Months
• How
often • Years
• How long
Howard Sheth Model (1961)