4. What is Consumer Behavior?
• The study of consumers and the processes they use to
choose, consume, and dispose of products and services.
• Incorporates elements from psychology, sociology,
social anthropology and economics.
• Essentially, refers to how and why people make the
purchase decisions they do.
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5. Steps of Consumer Decision Making:
1. Become Aware of a Problem or Opportunity
2. Search for Information
3. Evaluate Alternatives
4. Decide & Purchase
5. Reassess the Purchase
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7. To understand consumer behavior,
experts examine purchase decision
processes, especially any particular
triggers that compel consumers to
buy a certain product.
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8. In order to understand these influences,
researchers try to ascertain what happens
inside consumers' minds and to identify
physical and social exterior influences on
purchase decisions.
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9. Two principal ways to evaluate the
motivation behind consumer purchases:
Direction – What you want
Intensity – How much you want it
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10. DIRECTION
(What you want)
For example, if a consumer is selecting pain reliever,
they may like the idea that one pain reliever is cheaper
than another, but what they really want is fast pain relief,
and will probably pay more if they think the more
expensive brand can do that more effectively.
Marketers need to understand the principal
motivation behind each type of product to
correctly target potential consumers.
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11. INTENSITY
(How much you want it)
Refers to whether a consumer's interest in a
product is compelling enough that they will go
out and make the purchase.
What can create that kind of intensity?
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12. CEREAL vs NEW CAR
The importance of the purchase, as
well as the risk involved, adds to how
much time and effort will be spent
evaluating the merits of each product
or service under consideration.
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13. So, why is it important to understand
the behaviors of consumers?
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14. Marketers strive to understand this behavior
so they can use this information to:
1. Provide value and consumer satisfaction
2. Effectively target consumers
3. Enhance the value of the company
4. Improve products and services
5. Create a competitive advantage
6. Understand how consumers view their products
7. Expand the knowledge base in field of marketing
8. Apply marketing strategies toward a positive affect on society
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15. Result: Increased sales and most importantly
brand loyalty
What every brand wants!
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19. Did you know...
• World coffee production is est. at 120 million bags per year
• 14 billion espresso coffees are consumed in Italy each year
• Americans consume 400 million cups of coffee per day
• Coffee represents 75% of all caffeine consumed in the U.S.
• 35% prefer their coffee black, 65% prefer adding sugar/cream
• We’ll wait in line nearly 45 hours this year for our cup of coffee
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21. Did you know...
• Total annual sales reach approx. $600 billion
• 48,000+ items on avg. in a grocery store
• Consumers make 2.1 trips per week to the grocery store
• Avg. grocery shopper takes less than 21 minutes to
purchase groceries
• On avg. only cover 23% of the store, giving marketers a
very limited amount of time to influence shoppers
• 59% of all supermarket purchases were unplanned
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