Download - Consumer and Behaviour
Week 1: Course Introduction & Introduction to Consumer
Behaviour
Presented by: Dr. Trevor Smith
January 24, 2014
1
2
3
Career Track
Consultancy
Executive Employment Entrepreneurship
Researcher/ Lecturer
Course OverviewThis course explores the dynamics of consumer behaviour throughout the purchasing process and provides students with the necessary skills to analyze and shape marketing strategies for effectively meeting consumer needs. Consumer motivation, behavioural considerations affecting consumer purchasing decisions; and meeting consumer needs through selling, advertising and distribution are some of the key areas presented in this course.
4
Student Learning Objectives Upon successful completion of this course, the
student should be able to: Determine the factors that motivate
consumers into buying certain products/services. Assess products as "bundles of satisfaction" and
develop strategies to maximize consumer acceptance of such products.
Demonstrate an understanding of how consumers process information into decisions and the strategic implications of this process.
Demonstrate insight into the continuum of factors that affect consumer decisions.
Develop an understanding of the environmental considerations affecting the behaviour of consumers.
5
Readings Required Text
◦ Schiffman, L.G., Kanuk, L. L., Wisenblit, J. (2010), “Consumer Behavior”, 10th Edition, Prentice Hall, Upper Saddle River, NJ .
◦ Articles The material presented in the required text will be
supplemented with hand-outs. These hand-outs will be distributed by the course instructors.
6
Guest Lecture A guest lecture will be delivered by an
industry practitioner aimed at enhancing classroom knowledge with industry experience. Date of guest lecture will be announced on confirmation.
7
Deliverables◦ Midterm Test 15% - February 28, 2014◦ Group Project 25% - Mar 28, 2014◦ Final Exam 60%
8
Office Hours◦ Wednesdays 10-12noon
9
10
Week Topic DeliverablesWK1 Introduction to Course
Introduction to Consumer Behaviour Read course outline Read chapter 1
WK2 Consumer Research & Market Segmentation
Read chapter 2 & 3
WK3 Consumer Motivation Read chapter 4
WK4 Personality and Consumer Behaviour
Read chapter 5
WK5 Consumer Perception Read chapter 6
WK6 Exam Take Mid-Semester Exam (February 28)
WK7 Consumer Learning Read chapter 7WK8 Consumer Attitude formation and
Change & Communication and Consumer Behaviour
Read chapters 8 & 9
WK9 Social Class and Consumer Behaviour
Read chapter 11
WK10 Influence of Culture/Subculture / Cross Culture on Consumer Behaviour
Read chapters 12, 13 & 14
Submit Project (March 28)
WK11 Consumer Decision Making and Beyond
Read chapter 16
WK12 Revision
Exam Period) To be announced Take Final Exam
Overview of Consumer Behavior The Marketing Concept The Marketing Mix and Relationships Digital Technologies Societal Marketing Concept A Simplified Model of Consumer Decision
Making
11
The behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
12
13
weblink
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.
14
A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.
15
16
Production Concept
Selling Concept
Product Concept
Marketing Concept
Assumes that consumers are interested primarily in product availability at low prices
Marketing objectives:◦ Cheap, efficient production◦ Intensive distribution◦ Market expansion
17
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
18
Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so
Marketing objectives:◦ Sell, sell, sell
Lack of concern for customer needs and satisfaction
19
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:◦ Make what you can sell◦ Focus on buyer’s needs
20
What two Jamaican companies do you believe grasp and use the marketing concept?
Why do you believe this?
21
22
Consumer Research
Segmentation Targeting Positioning
The process and tools used to study consumer behavior
Two perspectives:◦ Positivist approach◦ Interpretivist approach
Implementing the Marketing Concept
23
Consumer Research
Segmentation Targeting Positioning
Process of dividing the market into subsets of consumers with common needs or characteristics
Implementing the Marketing Concept
24
What products that you regularly purchase that are highly segmented?
What are the different segments? Why is segmentation useful to the marketer
for these products?
25
26
Consumer Research
Segmentation Targeting Positioning
The selection of one or more of the segments to pursue
Implementing the Marketing Concept
27
Consumer Research
Segmentation Targeting Positioning
Developing a distinct image for the product in the mind of the consumer
Successful positioning includes:◦ Communicating the
benefits of the product◦ Communicating a unique
selling proposition
Implementing the Marketing Concept
28
This product is positioned as a solution to
facial redness.
Product Price Place Promotion
29
30
Customer Value
Customer Satisfaction
Customer Retention
Customer Trust
31
Customer Value
Customer Satisfaction
Customer Retention
Customer Trust
Defined as the ratio between the customer’s perceived benefits and the resources used to obtain those benefits
Perceived value is relative and subjective
Developing a value proposition is critical
Value, Satisfaction, ,Retention & Trust
How does Burger King create value for the consumer?
How do they communicate this value?
32
33
Customer Value
Customer Satisfaction
Customer Retention
Customer Trust
The individual's perception of the performance of the product or service in relation to his or her expectations.
Customers identified based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries
Value, Satisfaction, Retention, Trust
34
Customer Value
Customer Satisfaction
Customer Retention
The objective of providing value is to retain highly satisfied customers.
Loyal customers are key◦ They buy more products◦ They are less price sensitive◦ They pay less attention to
competitors’ advertising◦ Servicing them is cheaper◦ They spread positive word of
mouth
Value, Satisfaction, Retention & Trust
35
Customer Value
Customer Satisfaction
Customer Retention
Customer Trust
The objective is for the customer to trust the company and its products
Foundation for maintaining long standing relationship with customer; helps to increase loyalty
Trust is key◦ Online and off-line product◦ Neilsen’ Customize Research Services:
Word-of mouth communications/ recommendations from other consumers (78% trusting such source)
Newspaper, consumer opinion posted on-line, brand website (high in trust)
“Online banner ads”, text ads to mobile phones (low in trust)
Value, Satisfaction, Retention & Trust
Tracks costs and revenues of individual consumers
Categorizes them into tiers based on consumption behavior
A customer pyramid groups customers into four tiers
36
37
Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead
38
Traditional Marketing Concept
Value and Retention Focused Marketing
Make only what you can sell instead of trying to sell what you make
Use technology that enablescustomers to customize whatyou make
Do not focus on the product; focus on the need that it satisfies
Focus on the product’s perceived value, as well as theneed that it satisfies
Market products and services that match customers’ needs better thancompetitors’ offerings
Utilize an understanding of customer needs to develop offerings that customers perceive as more valuable than competitors’ offerings
39
Consumers have more power and access to information
Marketers can gather more information about consumers
The exchange between marketer and customers is interactive and instantaneous and goes beyond the PC.
Marketers must offer more products and services
40
Marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must
endeavor to satisfy the needs and wants of their target markets in ways that
preserve and enhance the well-being of consumers and society as a whole.
41
Psychology Sociology Social psychology Anthropology Economics
42
Consumer Research & Market Segmentation ◦ Chapters 2&3
43
44