key notions on consumption situating consumption in a historical perspective understanding the...

Key Notions on Consumption

Situating consumption in a historical perspective

Understanding the successive adaptations of the market research approach

Laurence CHERELCatherine MADRIDIUT Tech de Co Bordeaux

The 1950s : From Scarcity to Abundance

High growth in purchasing power

Numerous new products marketed

Sociologists refer to this period as the beginning of the «consumer society»


1.2.1 les faits marquants de la consommation

What is Consumer Society?

It is not a society in which needs are artificially created, they pre-exist

Satisfying such needs is part of a commercial exchange


Consequences for the Marketing Approach

Intensification of competition A fierce competitive market

approach: Priority given to keeping market share

A

B

DCA



The 1960s : Abundance is challenged

Customers purchase goods for pleasure and to demonstrate their purchasing power (ostentatious purchasing)

Beginning of mass distribution The equipment of households

reaches saturation point



Development of a «distributor’s marketing approach» to take into account consumers’ expectations AND department managers’ objectives

Immaterial expectations: developing service activities


The 1970s: Dreams crumble

1973 and 1979 oil shocks are combined with a major economic recession Shift from ostentatious consumption to

more personal consumption

The market for household goods is saturated



Revival of the market for household goods based on: Technological innovation (Colour TV…) More women in work, hence the need for new

household appliances (the toaster, etc) Adaptation of products to the different family

members (radio sets for young people) End of standard identical products for all.

Products now launched to suit different types of clients: Market segmentation



The 1980’s: The Triumph of Individualism

To escape reality and their own worries, consumers adopt an even more self-centred attitude: Priority is given to one’s needs and expectations

Economic stakeholders associate consumption with imaginary representations

The 1980s are characterised by hyper-individualism


Product ranges are increasingly diversified to meet this need for individualism (Limited car series)

Consumers are faced with a «hyper choice» and can no longer differentiate products

The Gulf War challenges the excessiveness of this hyper-individualistic consumption model



The 1990s, 2000s, 2010s ...

Over these three decades several transversal trends have emerged in our society.


The replacement of traditional social groups by tribe phenomena (1)

The splitting of consumption (2)

The search for pleasure through consumption (3)


The Emergence of Tribes (1)

A tribe is a group of people who share experiences and/or emotions: Any individual can belong to several tribes Tribes are difficult to identity and to quantify A tribe justifies a Marketing offer based on

the value of the link.


The splitting of consumption modes (2)

Traditional consumption Split consumption

Product rangeIncome structure

Each product is intended for a target defined in terms of income

It is now difficult to define a link product/individuals .

Purchases are driven by the values each individual associates with the

product.

Income structureProduct range


Since the year 2000, the splitting of consumption has become radicalised.It is known as ‘bipolar consumption’.

• The consumer is the arbitrator between the values of usage and hedonism he associates with each product (Do I buy a car for the pleasure of driving or just for transport?)

• The associated values are personal.

·Over-invested pleasure products:

The customer is prepared to pay a high price for emotional satisfaction.

·Basic products:The customer is prepared to pay for their functional value at a minimum price


Consequences for the Marketing Approach : Bipolar consumption no longer allows commercial targets to be defined

Design of a dual product line for the same customer, according to his consumption mood (in search of functionality or pleasure). « Fun products » are meant to provide

the consumer with emotion The price is a key element for

functional products


In Search of Emotions (3)

An appetite for immediate happiness Worry about an uncertain future Sense of emergency in time

management 3 sources of emotions can be

associated with the product Tribal marketing (As seen above) Sensory marketing The «re-enchantment of the offer».


1.2.1 Highlights in Consumption

Sensory Marketing

Intended to reinforce the sensory dimension of products: delicate flavours, subtle tastes, warm colours, soft lighting, evocative aspect and touch...

2/3


The Re-enchantment of the Offer

Intended to reinforce the imaginary content associated with the product Theatrical setting in shops: Dramatised

setting around products in retail outlets Addition of meaning Extension of the pleasure of purchase

through emotions thanks to the web, Facebook pages…

After the Year 2000

The consumer becomes an «entrepreneur».


The consumer-entrepreneur

Undertakes some of his professional commitments in his private life

Manages his domestic universe with professional methods

Is both a buyer, voter, citizen, environmentalist, etc…

Manages his time…


Impact on the marketing strategy: The «entrepreneur» customer wants to be regarded as a person :

Role of the Internet in the customisation of the offer or how to create a «tailored mass offer» by means of various options based on a main offer

1/3


After 2008

The recession again engenders changes in consumer trends


Pleasure is no longer as much associated with consumption

Consumption is still bipolar but arbitration priorities are modified: Consumption becomes a way to get

one’s identity recognised by others and to turn one’s moral and ethical precepts into action

Consumers are now looking for self-achievement

4 modes of expression of such self-achievement may be distinguished:

Source : CREDOCCAHIER DE RECHERCHE N°268

DÉCEMBRE 2009Département « Consommation »

dirigé par Pascale HEBEL


4 Modes of Self-achievement

Consumption with commitment(ethical, responsible and sustainable consumption)

Functional consumption (Use of products for a life experience rather than to possess a product)

Co-production of the offer (Consumer participation in creating the value of the offer)

Dematerialised consumption(digital consumption)


Various modes of consumption with commitment

Food purchases direct from the producer

Fair trade Reconsideration of the use of

cleaning products Attention paid to sustainable

development Alternative means of transport

Théma http://www.thema-sa.fr/site/thema.php?page=actualites_article&id_article=46


Functional Consumption Self-achievement implies the use of one’s free

time in constraint-free activities likely to lead to personal realization

Using a product is more important than owning it For 76% of French consumers, paying the lowest

price is most important. This is a favourite among the youngest customers, the

proportion reaching 87% among customers aged 20-24 Buying on Groupon, Le Bon Coin, rentals on Zylock,

etc…

TNS Word panel study, Le Figaro 03/09Etude MegaSnapshots d'OMG Nov. 2008


Coproduction

The reconciliation citizen/consumer involves consumer’s empowerment in the consumption process

Technology is the lever for such involvement, in particular the web 2.0, because it allows interaction.


Examples of co-production:

Suggestions to manufacturers danonetevous.com

Choice of a product : La Fraise.com :select a T-shirt myfab.com : co-production of objects mymajorcompany.com : co-production

of musicians reseau-amap.org:networking and

commitment in favour of farm producers


Dematerialised consumption

This concerns Either immaterial products consumed

exclusively via the Internet (Music, video, press, books).

Or services around products that cannot be dematerialised (cinema tickets, drive-through purchasing, etc)

It is fostered by: Widespread access to Internet (Public wifi) The development of smartphones and tablets.


For further reading

Histoire de la consommation à travers les 50 ans de Carrefour Synthèse sur l’évolution du consommateur,

exemples de produits symboliques des décennies L’évolution de la démarche marketing en fo

nction du consommateur Article de marketing magazine N°163 - 28/11/2012

http://www.hyperstorique.carrefour50ans.fr/

http://www.hyperstorique.carrefour50ans.fr/

http://www.e-marketing.fr/Marketing-Magazine/Article/LE-FIL-ROUGE-DU-MARKETING-44862-1.htm

http://www.e-marketing.fr/Marketing-Magazine/Article/LE-FIL-ROUGE-DU-MARKETING-44862-1.htm


Bibliography

Mermet G. Francoscopie 2013 Ed Larousse Rochefort R., Le consommateur

entrepreneur, Ed Odile Jacob,1999 Rochefort R., Le bon consommateur et le

mauvais citoyen, Ed Odile Jacob,2007 http://www.credoc.fr/publications/ www.altema.fr

key notions on consumption situating consumption in a historical perspective understanding the...

Documents

ostentatious consumption

personal consumption

marketing approachdevelopment

marketing approachrevival

household goods

faits marquants

etcadaptation of products

account consumers expectations