introduction to Consumer Behavior for PGDAM and MBA students. The presentation highlights various aspects of Consumer Behavior, its impact, importance to understand the behavior of target market. Process of Marketing Segmentation for targeting different type of audiences.
The presentation also highlights darker side of consumer behaviour aspects and how companies use black hat techniques to attract more consumers.
The seven principles of persuasion by Dr. Robert Cialdini
Introduction to Consumer Behaviour
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An Introduction to
Consumer Behavior
Moses Gomes
Marcom Consultant and Guest Faculty at
Mumbai University
Garware Institute of Vocational Education
Whistling Woods International
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“Remember
“Remember
Me?”
Me?”
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
6. Consumers’ Impact on
Consumers’ Impact on
Marketing
Marketing
Strategy
• Strategy
Understanding consumer behavior is
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good business.
– Firms exist to satisfy consumers’ needs, so
– Firms must understand consumers needs to
satisfy them.
• The Process of Marketing Segmentation :
– Identifies Groups of Consumers Who are Similar
to One Another in One or More Ways, and
– Devises Marketing Strategies that Appeal to
One or More of These Groups.
7. Segmenting
Segmenting
Consumers by
Consumers by
Demographic Statistics That M easure
Demographic
Demographics are
Observable Aspects of a Population Such As:
Dimensions
Dimensions
Geography
Geography
Race and
Race and
Ethnicity
Ethnicity
Social Class
Social Class
and Income
and Income
Age
Age
Gender
Gender
Family Structure
Family Structure
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8. Consumers’ Impact On Marketing
Consumers’ Impact On Marketing
Strategy: Building Bonds With
Strategy: Building Bonds With
Consumers
Consumers
•
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Relationship Marketing occurs when a
company makes an effort to interact with
customers on a regular basis, and gives them
reasons to maintain a bond with the company
over time.
• Database Marketing involves tracking
consumers’ buying habits very closely, and
crafting products and messages tailored
precisely to people’s wants and needs based
on this information.
9. Marketing’s Impact on
Marketing’s Impact on
Consumers:
Consumers:
The Meaning of Consumption
The of Relationships a Person May Have With a
Types Meaning of Consumption
Product:
Self-Concept Attachment
Helps to Establish the User’s Identity
Nostalgic Attachment
Serves as a Link With a Past Self
Interdependence
Part of the User’s Daily Routine
Love
Elicits Bonds of Warmth, Passion, or Other
Strong Emotion
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Marketing’s Impact on
Marketing’s Impact on
Consumers:
Consumers:
Consumption Typology the Different Ways
Consumption Typology Explores
Consumption Typology
That Products and Experiences Can Provide Meaning
to People.
There Are 4 Distinct Types of Consumption Activities:
Consuming as Experience
An Emotional or Aesthetic
Reaction to Consumption Objects
Consuming as Integration
Express Aspects of Self or
Society
Consuming as Classification
Communicate Their Association
With Objects, Both to Self/ Others
Consuming as Play
Participate in a Mutual Experience
and Merge Self With Group
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Marketing’s Impact on
Marketing’s Impact on
Consumers
Consumers
– Marketing and Culture
• Popular Culture
– Intangible and Tangible Objects
– The Global Consumer
• Global Consumer Culture
– Virtual Consumption
• Business to Consumer Selling (B2C Commerce)
• Consumer to Consumer Selling (B2B Commerce)
• Virtual Brand Communities
– Blurred Boundaries: Marketing and Reality
12. Marketing
Marketing
Ethics
Ethics
Business Ethics are Rules of Conduct That
Guide Actions in the Marketplace - the
Standards Against Which Most People in a
Culture Judge What is Right and What is
Wrong, Good or Bad.
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13. Other Marketing Ethics
Other Marketing Ethics
Issues
Issues
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• 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.
14. The Dark Side of
The Dark Side of
Consumer
Consumer
Behavior
Behavior
Compulsive Consumption
>Behavior is Not Done by Choice
>Gratification is Short-Lived
>Strong Feelings of Regret or
Guilt Afterwards
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Addictive Consumption
> Gambling
Illegal Activities
Consumed Consumers
> Consumer Theft (Shrinkage)
>Anti-consumption
– Culture Jamming
– Cultural Resistance
> People Who Are Exploited for
Commercial Gain in the
Marketplace.
16. Two Perspective on
Two Perspective on
Consumer
Consumer
Research
Positivist
Positivist
Research
Approach
Approach
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Interpretivist
Interpretivist
Approach
Approach
Objective
Objective
Socially
Socially
Constructed
Constructed
Prediction
Prediction
Understanding
Understanding
Independent
Independent
Contextual
Contextual
Real Cause
Real Cause
Simultaneous
Simultaneous
Shaping
Shaping
Separation
Separation
Interaction
Interaction
17. The Wheel of Consumer
The Wheel of Consumer
Behavior
Behavior
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