Consumer Behaviour

WHAT'S CB?

It tells you why and how people buy products, use them and dispose them.

THREE STAGES
Obtaining the product  How they buy?  Where they buy?  What are their choices?  How you decide? Consuming  How you store?  Who uses?  How much you consume?  How it compares with expectations?

THREE STAGES
Disposing  Disposing package  Resell  recycle

REMEMBER ME?
I'm the fellow who goes into a restaurant, sits down and patiently waits while the I'm the I'm the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. I'm the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. I'm the man who drives into a gasoline station and never blows his horn, but waits patiently while the attendant finishes reading his comic book. "Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy." Source: From a Better Business Bureau bulletin submitted by An Arkansas Reader to Dear Abby

THE NEW CONSUMER

Meet the new customer and smile when you do because she is your boss. It may not be the person you thought you knew. Instead of choosing from what you have to offer, she tells you what she wants. You figure it out how to give it to her. -Fortune Editor

OVERALL MODEL OF CONSUMER BEHAVIOUR

External Influences
Culture Subculture Demographics Social status Reference groups Family Marketing Activities Decision Processes Problem Recognition Information Search Self-Concept & Learning Alt Eval & Selection Outlet select & Purchase

Internal Influences Perception Learning Memory Motives Personality Emotions Attitudes

Postpurchase Processes

THE NATURE OF CONSUMER BEHAVIOUR

Each of us have a view of ourselves (self concept) and we live in aparticulary maner in our resources.(lifestyle) Our view of ourselves and the way we try to live are determined by internal factors- personality, values, emotions, and memory) and external factors- culture, family, friends and subculture. Our view of ourselves and the way we try to live results in desires and needs . Many of this will make us consider a purchase.

PROSPECT THEORY

In 1979, Kahneman and Tversky presented an idea called prospect theory, which contends that people value gains and losses differently, and, as such, will base decisions on perceived gains rather than perceived losses.

EXAMPLE
For example, in a traditional way of thinking, the amount of utility gained from receiving $50 should be equal to a situation in which you gained $100 and then lost $50. In both situations, the end result is a net gain of $50. However, despite the fact that you still end up with a $50 gain in either case, most people view a single gain of $50 more favorably than gaining $100 and then losing $50.

PROSPECT THEORY


Losses are weighted more heavily than an equivalent amount of gains.

Joy

+50/Loss -50/Gain

Pain

OTHER MARKETING ETHICS ISSUES Do Marketers Create Artificial Needs?

 Response: Marketing attempts to create awareness that these needs do exist, rather than to create them.

Are Advertising and Marketing Necessary?

 Response: Yes, if approached from an information dissemination perspective.

Do Marketers Promise Miracles?

 Not if they are honest; they do not have the ability to create miracles.

THE DARK SIDE OF CONSUMER BEHAVIOR

Compulsive Consumption Addictive Consumption
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Behavior is Not Done by Choice >Gratification is Short-Lived >Strong Feelings of Regret or Guilt Afterwards
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Gambling

Illegal Activities

Consumed Consumers
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Consumer Theft (Shrinkage) >Anti-consumption Cultural Resistance

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People Who Are Exploited for Commercial Gain in the Marketplace.

APPLICATION OF CB?
Marketing Strategy Informed Individuals Regulatory Policy Social Marketing