Consumers' Behavior PDF

# SESSION 1: INTRODUCTION TO THE course Note: C = consumer ## I. Why company should understand consumer's behaviour * To extend business overseas * To understand consumers "real" perception of brand/product * To understand consumers purchase process (how they buy/Ex: base on packaging, etc.) ##...

# SESSION 1: INTRODUCTION TO THE course Note: C = consumer ## I. Why company should understand consumer's behaviour * To extend business overseas * To understand consumers "real" perception of brand/product * To understand consumers purchase process (how they buy/Ex: base on packaging, etc.) ## II. What is CB * The study **process** involved when individual / group * **select** * Purchase Products/service * Use Ideas/experience * Dispose * Satisfy needs and desires ## III. Who are consumers? * Individual - buy products * For personal use (X manufacture or resale) ## IV. Stages in Consumption Process ### A. Consumer's perspective 1. **Before purchasing** (Prepurchase issue) * How C decides C needs the product * Best sources of information to learn alternative choice 2. **While purchasing** (Purchase issue) * Buying process: stressful or pleasant * The purchase said what of C? 3. **After purchasing** (Postpurchase issue) * Does product give pleasure or work as expected? * How product was disposed/environmental impact? ### B. Marketer's perspective 1. **Pre-purchase** * How C's attitude formed/changed * What hints that C use to figure out which product is better 2. **Purchasing** * How factor of the situation * ex: time, store display * affect C's decision 3. **After purchasing** * What determines whether C is happy or will buy again * Does C share C's experience and impact other C's decision ## V. Cs are different * 20% of products give 80% profits and help business focus on most valuable customers and optimize their marketing effort * **How:** * **Customers:** Companies target top 20% of customers * **Business:** Invest in 20% most profited product ## VI. Can marketing create needs? * **Needs:** biological requirements, X change * Lack needs: create tension * **Wants:** not important but I comfort * Inconstant, depends on in/ex-ternal * Way of satisfying the recognized need * a. GAP: State vs desired State * **Hierarchy of Needs:** * **Self-Actualization** * **Self-Esteem Needs** * **Love and Belonging** * **Safety Needs** * **Physiological Needs** * **Motivation decrease as deficiency needs are met** - arise due to deprivation, thus, satisfying these lower-level needs is important to avoid negative feelings and consequences * **Why understand needs is important?** * Every product should answer I NEED * Ex: Google Glass failed be C cannot answer a need ## VII. How consumers influence marketing * **Understand C's behaviour = GOOD BUSINESS** * **Knowledge of : incorporated in all aspect of successful marketing plan**