Human Resources University

Consumer Behavior
Year3, Semester 2
Lectured by: Mr. Eng Leaphea,MBA Tel: 012 722076 Email: engleaphea@gmail.com Skype ID: rikreaymagazine
3/28/2012 1

Self-Introduction
Course: Consumer Behavior Lecturer: Mr.Eng Leaphea, MBA Tel: 012 722076 Email: engleaphea@gmail.com rikreaymagazine (skype)

Instructors Profile
Name:Eng Leaphea (Mr.) Date of Birth:February 05, 1979 Sex:Male Nationality:Cambodian Contact: H/P: 012 722076 Email: engleaphea@gmail.com

Educational Background

Working Experiences
02-04-2010 to 02-12-2010 10-12-2010 to Present

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McGraw-Hill/Irwin

Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1

Introduction to Consumer Behavior and Marketing Strategy

Facilitated the Combination by Prof. Muth Vongsa
Lectured by: Mr. Eng Leaphea, MBA

McGraw-Hill/Irwin

Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Questions
1. 2. 3. 4. 5. 6. 7. What are the three elements of marketing strategies? Why is the Japanese company successful? How do they increase the quality? How do they market their products? What is your understanding of consumer behavior? What factors that influence their thoughts, feeling, and actions? Why does the consumers feeling, thoughts, and actions constantly change? 8. What is your understanding of interactions? 9. What does the marketer need to understand? 10. What is your understanding of Exchanges ? 11. How do you study the consumer behavior?

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Questions
How do you study the consumer behavior?

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Three Elements for Marketing Strategy

Online Business to Consumer

Introduction
The marketing concept suggests an organization should satisfy consumer needs and wants in order to make a profit
Need to understand customers Must stay close to customers

Past problems with marketing concept

The concept was not implemented in the entire organization and viewed more as a marketing task
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Introduction cont.
Shift of focus to better serve consumers for three major reasons
Dramatic success of Japanese companies
Focus on providing consumers value-laden products Superior quality and lower prices of Japanese products Increased consumer interest in world markets

Dramatic increase in the quality of consumer and marketing research

Use of technology to identify and know customers personally Ability to track consumer reactions
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Introduction cont.
Shift of focus to better serve consumers for three major reasons
Development of the Internet as a marketing tool
E-marketing potential Increased importance of consumer behavior research Ability to conduct marketing research studies

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What is Consumer Behavior?

The dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives

Involves thoughts and feelings people experience and actions they perform in the consumption processes

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What is Consumer Behavior? cont.

Includes all things in the environment that influence thoughts, feelings, and actions
Comments from other consumers Advertisements Price information Packaging Product appearance etc.

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Dynamic Consumer Behavior

Thinking, feelings, and actions of individual consumers, targeted consumer groups, and society at large are constantly changing Requires ongoing consumer research and analysis of important trends Makes development of marketing strategies difficult and exciting
Shorter product life-cycle increases importance of constant innovation

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Consumer Behavior Involves Interactions

Interactions among peoples thinking, feelings and actions, and the environment Marketers need to understand
What products and brands mean to consumers What consumers must do to purchase and use them What influences shopping, purchase, and consumption

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Consumer Behavior Involves Exchanges

Exchange between people involves giving up of something of value and receiving something in return Role of marketing in society is to help create exchanges by formulating and implementing marketing strategies

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Approaches to the Study of Consumer Behavior

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Major Approaches to Studying Consumer Behavior

Interpretive
Based on theories and methods from cultural anthropology Objective is to understand consumption and its meanings Methods of study involve
Long interviews Focus groups

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Major Approaches to Studying Consumer Behavior cont.

Traditional
Based on theories and methods from cognitive, social, and behavioral psychology, and sociology Objective is to develop theories and methods to explain consumer decision making and behavior Methods of study involve
Experiments Surveys

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Major Approaches to Studying Consumer Behavior cont.

Marketing science
Based on theories and methods from economics and statistics Objective is to develop and test mathematical models to predict the impact of marketing strategies on consumer choice and behavior This method of study has become popular in the consumer packaged goods industry since it can handle large scanner data sets

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Relationship among Action-Oriented Groups in Consumer Behavior

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Uses of Consumer Behavior Research

Three groups use knowledge about consumer behavior and consumer behavior research
Marketing organizations
Businesses attempting to sell products Organizations that seek exchanges with consumers

Government and political organizations

Major concern is monitoring and regulating exchanges between marketing organizations and consumers

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Uses of Consumer Behavior Research cont.

Three groups use knowledge about consumer behavior and consumer behavior research
Consumers
Includes consumers and organizational buyers who exchange resources for various goods and services Interest in making exchanges that help them achieve their goals and the understanding of their own behavior

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Consumer Behaviors Role in Marketing Strategy

Marketing strategy
Design, implementation, and control of a plan to influence exchanges to achieve organizational objectives In consumer markets, these are designed to
Increase chances of favorable thoughts and feelings of particular products, services and brands among consumers Increase chances of trial and purchase

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Consumer Behaviors Role in Marketing Strategy cont.

Marketing strategy
Developed by manufacturers, retail stores, catalog retailers, e-tailers and other direct marketers to
Increase chances of favorable thoughts and feelings among consumers about purchasing from them Increase chances of actual purchase

Developed by companies that make funds available for purchase to

Increase chances of usage of services offered by consumers
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Consumer Behaviors Role in Marketing Strategy cont.

Marketing strategies involve developing and presenting marketing stimuli directed at selected target markets to influence
What they think How they feel What they do

Essence of marketing strategy is to understand markets, develop and implement superior strategies to attract and hold them profitably
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Consumer Behaviors Role in Marketing Strategy cont.

Powerful force on consumers and society at large
The power of marketing and the ability of consumer research and analysis to yield insight into consumer behavior should not be discounted or misused

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Marketing Strategy Queries Consumer Behavior Research Can Help Answer

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Summary
The marketing concept was defined and past problems were discussed The aspects of consumer behavior were presented Three major approaches to consumer behavior research were exhibited The groups that use knowledge about consumer behavior and research were identified The role of consumer behavior in a marketing strategy was discussed
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