Consumer Behavior and Consumer Research -...

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Consumer Behavior and Consumer Research

What Is Consumer Behavior?

Activities people undertake when obtaining, consuming, and disposing of products and services

ObtainingObtaining ConsumingConsuming DisposingDisposing

ConsumerConsumerInfluencesInfluences

OrganizationalOrganizationalInfluencesInfluences

Consumer Behavior

Consumer Consumer InfluencesInfluences

Organizational Organizational InfluencesInfluences

Consumer Consumer InfluencesInfluences

Organizational Organizational InfluencesInfluences

Culture EthnicityPersonality FamilyLife-stage ValuesIncome Available ResourcesAttitudes OpinionsFeelingsMotivationsPast ExperiencesPeer GroupsKnowledge

BrandProduct FeaturesAdvertisingWord of MouthPromotionsRetail DisplaysPriceQualityService Store AmbianceConvenience Loyalty ProgramsPackaging Product Availability

ConsumerConsumerInfluencesInfluences

OrganizationalOrganizationalInfluencesInfluences

Consumer Behavior

•How you decide you want to buy

•Other products you consider buying

•Where you buy

•How you pay for product

•How you transport product home

•How you use the product

•How you store the product in your home

•Who uses the product

•How much you consume

•How product compares with expectations

•How you get rid of remaining product

•How much you throw away after use

•If you resell items yourself or through a consignment store

•How you recycle some products

OBTAINING•How you decide you want to buy

•Other products you consider buying

•Where you buy •How you pay for product•How you transport

product home

CONSUMING•How you use the product•How you store the product

in your home•Who uses the product •How much you consume•How product compares with expectations

DISPOSING•How you get rid of

remaining product•How much you throw away after use

•If you resell items yourself

or through a consignment store

•How you recycle some products

CONSUMER INFLUENCESCulture EthnicityPersonality FamilyLife-stage ValuesIncome Available ResourcesAttitudes OpinionsMotivations Past ExperiencesFeelings Peer GroupsKnowledge

ORGANIZATIONAL INFLUENCESBrand Product FeaturesAdvertising Word of MouthPromotions Retail DisplaysPrice QualityService Store AmbianceConvenience Loyalty ProgramsPackaging Product Availability

Consumer Behavior

A field of study that focuses on consumer activities

Scope goes beyond just why and how people buy to include consumption analysis

Consumption AnalysisWhy and how people use products in addition to why and how they buy

The Marketing ConceptThe process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

Satisfaction with an exchangedepends on satisfaction with consumption of product and the exchange of money

Why Study Consumer Behavior?

Consumer Behavior Determines the Economic Health of a Nation

Consumer Behavior Determines the Success of Marketing Programs

Marketing can be used to influence brand choice and purchase, while Demarketingcan influence people to stop harmful consumption

“The Customer is King”Organization influenced by consumer needs and wants

Organizations that are Customer-centric use a total marketing approach to focus their resources on satisfying customers

MarketingProcess of transforming or changing an organization to have what people will buy

Consumer Behavior Determines the Economic Health of Everyone

The individual’s decisions as a consumer determine their economic health by making more effective consumption decisions while avoiding deceptive practices harmful to them

Public policy leaders and social commentators study consumer behavior to alleviate overconsumption and underconsumption by educating consumers about problems and providing assistance

Educating Consumers About Crises

Understanding consumers’ issues or problems and developing methods to reach and educate consumers

Educating Consumers About Health

Understanding consumers’ issues or problems and developing methods to reach and educate consumers

Educating Consumers About Health

Consumer Behavior Helps Formulate Public Policy

Understanding consumers’ needs to formulate public policy and predicting behavioral changes that follow

Helps Formulate Public Policy

Interest rates

Warning

labels

EconomicsSocial Welfare Family

Planning

Government

Regulations

Government Protection and Education

Protection from Competitive Markets

Consumer Behavior Affects Personal Policy

Personal policy includes how you behave towards others and in buying situations, your values and beliefs, and how you live your life

A person’s economic quality of life is determined by personal policy

Evolution of ConsumerBehavior

Supply Chain:all the organizations involved in taking a product from inception to final consumption

- Manufacturers- Wholesalers- Retailers- Facilitating Organizations

Supply Chain:all the organizations involved in taking a product from inception to final consumption

- Manufacturers- Wholesalers- Retailers- Facilitating Organizations

Consumers’ Increased Influence on Business

Wholesaler Manufacturer Retailer Consumer

SellingOrientation

MarketingOrientation

ManufacturingOrientation

ConsumerOrientation

Wholesaler Manufacturer Retailer Consumer

SellingOrientation

MarketingOrientation

ManufacturingOrientation

ConsumerOrientation

Consumers’ Increasing Influence

Manufacturing Orientation

Selling Orientation

Marketing Orientation

Selling Orientation

- Motivation research

- Positivism

- Postmodernism

Selling Orientation

Consumer Orientation

ConsumerOrientation

Beyond a marketing focus

How all organizations in a demand chain adapt to changing consumer lifestyles and behaviors bringing product design, logistics, manufacturing, and retailing together

Role of consumers in shaping many aspects of life—society, government, social programs, health cares, and other areas

Consumer Research: Methods of Studying Consumer Behavior

Consumer Research MethodsObservation

Consumer Research MethodsObservationObserving consumer behaviors in different situations such as natural or artificial settings

Consumer Research MethodsObservationIn-home observation: examining how and when consumers use and consume products in their households

Shadowing: following and observing consumers in the shopping and consumption processes. Researchers may ask questions about reasons for behaviors

Physiological methods: Techniques borrowed from medicine, psychology and other sciences including cameras to measure eye movement, galvanic skin response, and MRI

Consumer Research MethodsInterviews and Surveys

Consumer Research MethodsInterviews and SurveysSurveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires)

Focus Groups: a group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest

Consumer Research MethodsInterviews and SurveysSurveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires)

Focus Groups: a group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest

Longitudinal Studies: repeated measures of activities over time to determine changes in opinions, buying, and consumption behaviors

Consumer Research MethodsExperimentationMeasuring cause-and-effect relation-ships by manipulating independent variables to determine the effects of changes on dependent variables

- Laboratory experiment- Field experiment

Consumer Research MethodsExperimentation

Consumer Research MethodsExperimentationAttempts to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables

- Laboratory experiment- Field experiment

Independent variables might include number of advertisements and package design

Dependent variables might include purchase intent or behavior

Consumer Research MethodsConsumption Research

Consumer Research MethodsConsumption Research Builds on the three primary research methods to examine how people use products and services rather than how they buy them

Understanding How Consumers Use Products

May use ethnographic tools to under-stand how values and culture influence usage of products and other behaviors

May identify new uses for existing products or new product to satisfy unmet or changing consumer needs

The Underlying Principles of Consumer Behavior

The Consumer Is Sovereign

The Consumer Is Global

Consumers Are Different; Consumers Are Alike

The Underlying Principles of ConsumerBehaviorThe Consumer Is Sovereign

Consumers Are Different; Consumers Are Alike

The Consumer Has Rights

Challenges for the Future

Gathering and interpreting information that organizations need to meet changing needs of consumers

Developing effective consumer research methods to capture changes in trends and lifestyles

Understanding consumer behavior from a broader perspective as an important part of life

Consumer Behavior and Consumer Research -...

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