Consumption Society and

Happiness
Session 2

Recap : Consumer Insights

Managers need actionable consumer insights
in marketing
These could be untested assumptions about
consumers
Consumer Insights are generalizations
Observations
Experience
Formal Learning
Organization's Knowledge base etc
Practitioner theories

Recap : Insights
What do we know about teenage behavior ?
What will work with them?
Theory of Embarrassment?

Recap : What is Consumer Behavior?

The study of the processes involved when
individuals or groups select, purchase, use, or
dispose of products, services, ideas, or
experiences to satisfy needs and desires.
The purpose is to have useful knowledge to
base marketing decisions
Focus on Insights and Explanations
Existing body of Knowledge
Develop the
marketer mindset to look at
consumers.

Study of Consumer Behavior

Knowledge of Consumer Behavior is essential
in formulating marketing strategy
Marketers learn about consumer behavior
through formal and informal means
We look at similarities in Behavior as well as the
Differences

Questions addressed in marketing

Who? What? When ? Where? How? How much?
Why?

Pyramid of Consumer Behavior

MICRO CONSUMER BEHAVIOR
(INDIVIDUAL FOCUS)

Consumer behavior
involves many different
disciplines

MACRO CONSUMER
BEHAVIOR
(SOCIAL FOCUS)

Experimental Psych
Clinical Psychology
Develop Psychology
Human Ecology
Microeconomics
Social Psychology
Sociology
Macroeconomics
Semiotics/Literary Criticism
Demography
History
Cultural Anthropology

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Approaches to Consumer Behaviour

Positivism or Modernism
What?, When?, How?, Where?, How much?,Who?

Describe and Predict

How useful knowledge is for management
Decision Focus
Traditional Marketing Research
Interpretivism or Post Modernism
Why?

Consumption as a unique and personal experience

Qualitative Research

Who is our consumer?

Consumer: a person who identifies a need or desire,
makes a purchase, and then disposes of the product.
Customer: ????
Purchaser versus user versus influencer

Initiator
Influencer
Decider
Buyer
Use
Disposer
Gate keeper

Organization/group as consumer
family

Why do they buy?

Is there always a reason behind our behaviour?
Is consumption always utilitarian/functional?

Consumption of Horror movies?

The Meaning of Consumption

People often buy products not only for what they do,
Utilitarian consumption

Other Reasons

Hedonic
Symbolic
Impulsive
Habits , Rituals and conditioning
Inertia
Herd behaviour and Imitation

Is there always a reason behind our behaviour?

Consumers can develop relationships with brands:

Pervasive Consumption
Consumption is pervasive and Marketing is a powerful
social force
Global Consumer Culture
People united by common devotion to:

Brand name consumer goods

Movie stars
Celebrities
Leisure activities

Virtual Consumption

Impact of the Web on consumer behavior

24/7 shopping without leaving home
Instantaneous access to news
Handheld devices & wireless communications

C2C Networks

Marketing and Reality

Blurred boundaries between marketing efforts
and the real world
Popular culture shaped by marketers
Valentines Day
Akshaya Thritheeya
Diamond in the engagement ring
What is the influence of marketing on the
Society? Is it all positive?

Consumption and society

Marketing is a most potent social force
Compulsive consumption
Consumer addictions
Consumer materialism
Consumer objectification
Consumerism
Consumer activism
Anti-consumption
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www.adbusters.org

Anti-Consumption

Anti-Consumption

Anti-Consumption

Consumer behavior
There is no one Insight
There are many
Different people may choose same product for
different reasons
Different people may choose different product for
same reasons

People are different and their consumption

patterns and preferences are also different
Many marketers can be equally successful with
different approaches
Look at differences and Look at similarities

Consumption
Consumption is certainly Utilitarian
Maximizing utility

Consumption is an Experience
Process is equally important as the outcome

Consumption is Integration
Consumption is a social process of belonging

Consumption is Classification
We are what we consume

Consumption is Play
A game