Lecture 1 2005

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Presentation Transcript

Welcome to Consumer Behaviour: 

Welcome to Consumer Behaviour Why study consumer behaviour? What is consumer behaviour? How does it affect marketing strategy?

The Marketing Car: 

Market research Marketing manager Consumer behaviour ‘the engine of marketing’ Advertising Distribution ﴀCopyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–2 The Marketing Car

Slide3: 

Consumer behaviour knowledge is... the ‘engine’ of a marketing strategy

Subject Objectives: 

Subject Objectives Knowledge and understanding Theories Working Model of CB implications for strategic marketing decisions a focus on marketing decisions Communication skills Increase your skills in developing and presenting ideas orally and in writing

Assessment (example): 

Assessment (example) Final 2 hour exam 70% Mid semester test (4.4.05) 15% (Chapters 1-7) Assignment - case study 15% (Virgin credit – 365) 100%

Tip !!: 

Tip !! When answering Case Studies and exam questions, think of the TEAS approach: T = Theory E = Explain the relevant theory A = Apply the theory S = Strategy

Reading: 

Reading Consumer Behaviour: Implications for Marketing Strategy Neal, Quester and Hawkins, 4th Aust. edition Supplementary Reading See information booklet

Course Structure: 

Course Structure Introduction Consumer decision process Internal influences External influences Organisational buying Consumers and society

Chapter 1 Consumer Behaviour and Marketing Strategy: 

Chapter 1 Consumer Behaviour and Marketing Strategy Studying the consumer is important for marketers Implications of consumer behaviour for marketing strategy Components of a consumer behaviour audit Relevance of consumer behaviour for non-profit organisations, government agencies &/or consumer groups A working model of consumer behaviour

Why study consumer behaviour?: 

Why study consumer behaviour? The study of consumer behaviour is relevant to: Consumers Marketers Students Scholars in fact all those interested in human behaviour By studying consumer behaviour we try to understand & gain insight into: Consumer decision making processes What we buy, how we buy, and why we buy Enables us to become better consumers and marketers We try to gain a better understanding of consumer related behaviour and why individuals act in consumer related ways.

Types of consumers: 

Types of consumers Personal Consumer Is the individual who buys goods for his or her own use. Household Consumer Is the individual or group of individuals that buy goods for the household or family unit. Organisational Consumer Includes private businesses, government departments and agencies, and institutions.

Understanding Consumer Behaviour : 

Understanding Consumer Behaviour

Consumer Behaviour and Marketing Strategy: 

Consumer Behaviour and Marketing Strategy Positioning strategy Market segmentation New products New market applications Global marketing Marketing mix Consumerism Non-profit marketing

How Consumer Influences Drive Marketing Decisions: 

How Consumer Influences Drive Marketing Decisions

Definitions of Consumer Behaviour : 

Definitions of Consumer Behaviour The dynamic interaction of cognition, behaviour and environmental events by which human beings conduct the exchange aspects of their lives (American Marketing Association) A discipline dealing with how and why consumers consumers purchase (or don’t purchase) products and services. (Neal et al.)

Definitions of Consumer Behaviour (cont.): 

Definitions of Consumer Behaviour (cont.) Those behaviours performed by decision-making units in the purchase, usage and disposal of goods and services (Kotler & Levy) The decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services (London & Della Bitta)

Definitions of Consumer Behaviour (cont.): 

Definitions of Consumer Behaviour (cont.) Those actions directly involved in obtaining, consuming, and disposing of products and services, including the decision processes that precede and follow these actions (Engel, Blackwell & Miniard)

Slide18: 

Consumer Lifestyle and Consumer Decisions

Consumer Decision Process: 

Consumer Decision Process

Factors that Determine and Influence Consumer Lifestyles : 

Factors that Determine and Influence Consumer Lifestyles

Overall Model of Consumer Behaviour: 

Overall Model of Consumer Behaviour

Next Lecture…: 

Next Lecture… Chapter 2: Situational Influences

Influences on Behaviour: 

Influences on Behaviour Influences on Behaviour B=f(PxS) Where: B= behaviour P=psychological set of the person S=the situation External influences culture, religion, social class and family Internal influences (genetic factors) Talents, Physical, Motivation, intelligence, personality

Chapter 2 Situational Influences: 

Chapter 2 Situational Influences Situations influence consumer behaviour four main types of situations can be categorised according to five main dimensions implications for marketing strategy

Topics: 

Topics The types of situational influence The nature of situational influence Dimensions of situation Physical Social Time (temporal) Task Antecedent Situational influences and marketing strategy

Types of Situation: 

Types of Situation Communication situation Where? Alone or with others? Surrounding noise? Purchase situation Where? Alone or with others? In a hurry? Usage situation With guests or alone? For pleasure or for work? Disposal situation Before the next purchase? Trade-ins? Or after the purchase, e.g. packaging

Consumer Behaviour is Product–Person–Situation Specific: 

Consumer Behaviour is Product–Person–Situation Specific

The Role of Situation in Consumer Behaviour: 

The Role of Situation in Consumer Behaviour

Five Dimensions of Situational Influence : 

Five Dimensions of Situational Influence Physical surroundings Social surroundings Temporal perspectives Task definition Antecedent states

Examples of Physical Surroundings: 

Examples of Physical Surroundings Store location Interior decor Music Smell / aromas Temperature (air-conditioning or heating) Amount of choice provided (by product category or across the categories)

Typology of Service Environments: 

Typology of Service Environments

The Impact of Background Music on Restaurant Patrons: 

The Impact of Background Music on Restaurant Patrons

Impact of Physical Density on Shopper Perceptions: 

Impact of Physical Density on Shopper Perceptions

Examples of Social Surroundings: 

Examples of Social Surroundings Types of customers in the store Queues and crowding Whether the consumer is likely to be known by others/recognised Whether there are high-profile people/celebrities shopping at that store Whether the product will be consumed privately or in the presence of others

The Impact of Social Situations on Desired Dessert Attributes: 

The Impact of Social Situations on Desired Dessert Attributes

Examples of Temporal Influences: 

Examples of Temporal Influences Whether the product is seasonal Whether the product is urgently required (snack between lectures) Time available for shopping limited/excess (the product may be just an excuse for shopping) How long the previous product lasted or was expected to last

Examples of Task Influences: 

Examples of Task Influences Is the product utilitarian or used as a status symbol? Is it a gift or for oneself? Must the product be long-lasting/tough? (e.g. an everyday watch) or decorative? (e.g. a dress watch) Is the product intended for several uses? (e.g. a family computer for study and internet access)

Buying Factors in Gift-Giving Purchase Situations: 

Buying Factors in Gift-Giving Purchase Situations

Examples of Antecedent States: 

Examples of Antecedent States Moods Feeling sad triggers buying sweets or going to a funny movie Feeling rejected triggers buying games software Momentary conditions Can’t eat ice cream because teeth hurt Can’t buy a book because left the credit card at home Buy more groceries because hungry before shopping

Ritual Situations: 

Ritual Situations A ritual situation can be described as a set of interrelated behaviours that occur in a structured format, that have symbolic meaning and that occur in response to socially-defined occasions Important to marketers as they define consumption, e.g. anniversaries, seasonal gifts Traditions and rituals being continued and developed, e.g. Valentine's Day

Situational Influences and Marketing Strategy: 

Situational Influences and Marketing Strategy Developing a situational influence matrix Positioning the product based on situation Segmenting the market based on usage situation alone in combination with other segmentation variable person/situation segmentation

The Situational Influence Matrix: 

The Situational Influence Matrix

Usage Situations and Product Positioning: 

Usage Situations and Product Positioning