Introduction to Consumer Behaviour

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Questions and Answers

What misconception characterizes a myopic business view?

It focuses on consumer value over products.

It defines the business in terms of the value consumers receive.

It emphasizes the importance of consumer emotions.

It defines the business solely in terms of products. (correct)

What factor does studying consumer behavior help consumers understand?

The consequences of poor budgeting. (correct)

The impact of competition on product choice.

The relationship between budgeting and emotional health.

The importance of product advertising.

Which research approach focuses more on numerical data?

Descriptive Research

Quantitative Research (correct)

Qualitative Research

Interpretive Research

How has the perception of smoking changed over the years, according to societal attitudes?

Smoking is considered less socially acceptable. Signup and view all the answers

What is a significant dynamic aspect of consumer behavior?

Recent trends can significantly influence consumer behavior. Signup and view all the answers

Which approach is NOT typically used to study consumer behavior?

Behavioral Research Signup and view all the answers

What role does social influence play in consumer behavior?

It helps consumers understand their purchasing decisions. Signup and view all the answers

What misconception might consumers have about environmental effects on their decisions?

Consumers often overlook environmental effects. Signup and view all the answers

What does consumer behavior primarily involve?

The set of value seeking activities addressing realized needs Signup and view all the answers

Which of the following describes the basic consumption process?

The transformation of goods, services, or ideas into value Signup and view all the answers

What perspective do economists typically use to study consumer behavior?

Macro perspective Signup and view all the answers

Which learning outcome focuses on the varied treatment of consumers in different exchange environments?

LO2 Signup and view all the answers

Why is consumer behavior considered dynamic?

Recent trends significantly impact consumer choices Signup and view all the answers

What does consumer behavior NOT include?

Collecting products as a hobby Signup and view all the answers

Which of the following is a key component of consumer behavior?

Evaluating and disposing of products Signup and view all the answers

In the study of consumer behavior, what is NOT a focus area?

Comparison of advertising strategies Signup and view all the answers

What level do consumer behavior researchers primarily focus on?

Individual level analysis of consumer behavior Signup and view all the answers

In what way are consumers treated differently in various exchange environments?

Based on the level of competition in the environment Signup and view all the answers

What is one key output of studying consumer behavior?

Input to business and marketing strategy Signup and view all the answers

Which term best describes the theory explaining why companies succeed or fail based on resource acquisition from consumers?

Resource-Advantage Theory Signup and view all the answers

What is one reason for the marketing environment's competitiveness?

The reliance on repeat business Signup and view all the answers

How does consumer behavior influence society?

It shapes societal trends through purchasing decisions. Signup and view all the answers

What is the focus of relationship marketing?

Building long-term relationships with consumers Signup and view all the answers

What role does consumer behavior play in making responsible decisions?

It helps shape awareness and understanding of product value. Signup and view all the answers

Study Notes

Consumer Behaviour Introduction

Consumer behaviour is a field of study examining how consumers make decisions.
Individuals seek value when making consumption decisions.
Consumer behaviour is a dynamic field, impacted by recent trends.

Module Details

Weekly 2-hour lectures
Weekly 1-hour compulsory seminars
Mid-term module evaluation
Mock exam question and answer support (Week 11)
Final exam support

Learning Outcomes

LO1: Understand consumption and consumer behaviour.
LO2: Describe differing treatment of consumers in various exchange environments.
LO3: Explain consumer behaviour’s role in business and society.
LO4: Be familiar with basic approaches to studying consumer behaviour.
LO5: Explain dynamic consumer behaviour and the effect of recent trends.

Icebreaker Activity

Students pair up and interview each other.
Determine how many times they took on the role of consumer in the past week.
Describe the process and emotions associated with these experiences.

Consumer Behaviour Perspectives

Consumer behaviour is a field studying human thought and action related to consumption.

Consumer Behaviour as Human Behaviour

Consumer behaviour involves value-seeking activities to address needs.
Activities include searching for, purchasing, using, evaluating, and disposing of products/services.

The Basic Consumption Process

The basic consumption process involves need, want, exchange, costs/benefits, reaction, and value.

Consumption

Consumption is the process by which goods, services, or ideas are used and transformed into value.

Macro or Micro Perspective

Economists study consumer behaviour from a broad (macro) perspective.
Consumer behaviour researchers focus on the individual (micro) level.

Evolving New Dominant Logic

Pre-1900: Goods-centered exchange (tangibles, static trans).
21st Century: Service-centered exchange (intangibles, dynamics).

Diverse disciplines like law, economics, neuroscience, marketing, statistics, psychology, finance, anthropology, history, sociology, and management are closely related to consumer behaviour.

Describing Different Exchange Environments

This learning objective focuses on how various factors influence different consumer experiences in exchange environments (e.g., fast-food chains vs. fine restaurants).

Questions to Consider

Analyze the competitive marketing environment.
Evaluate the marketer's dependence on repeat business.

Some Terminology

Consumer (customer) orientation: Focus on customer needs and desires.
Market orientation: Company strategy focused on consumer needs.
Relationship marketing: Building long-term relationships with customers.
Touchpoints: Interactions between customers and businesses.

Role of Consumer Behaviour in Business and Society

Explains how businesses understand consumers and make marketing strategies.
Explains how changing consumer behaviour impacts society.

Why Study Consumer Behaviour?

Input to business/marketing strategies.
Force that shapes society.
Responsible consumer decision-making.

Resource-Advantage Theory

Companies succeed/fail based on resource acquisition from consumers.
This acquisition is in return for the value the company's resources create.

Make-Up or Hope?

Myopic view focuses on products rather than the value consumers receive.

Different Ways of Doing Business

Differentiated, undifferentiated, and niche marketing strategies.

Consumer Behaviour and Society

Social attitudes toward smoking have significantly evolved over the past few decades.

Consumer Behaviour and Personal Growth

Understanding consumer behaviour improves consumer decision-making.
Factors like consequences of poor budgeting, emotions, social influences, and environmental effects are crucial.

Basic Approaches to Studying Consumer Behaviour

Interpretive research, qualitative research, and quantitative research are different research approaches.

Comparing Quantitative and Qualitative Research

Qualitative research discovers ideas, uses exploratory research on general objects, observes and interprets; unstructured, subjective.
Quantitative research tests hypotheses, measures and tests, structured response, objective, and large sample sizes.

Dynamic Consumer Behaviour and Recent Trends

Trends like internationalization, technological changes, and changing demographics and economies impact consumer behaviour.

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Description

This quiz covers the fundamentals of consumer behaviour, exploring how individuals make consumption decisions and the value they seek. Students will learn about the dynamic nature of consumer behaviour and its impact on business and society. Prepare to analyze recent trends and their influence on consumer choices.