MARK 310- PP1.pdf

Consumer Behaviour Ninth Canadian Edition Topic 1 An Introduction to Consumer Behaviour (Chapter 1)...

Consumer Behaviour Ninth Canadian Edition Topic 1 An Introduction to Consumer Behaviour (Chapter 1) Copyright © 2024 Pearson Canada Inc. Agenda 1. What is consumer behaviour? Ø Consumer behaviour is a process. 2. Consumers’ Impact on Marketing Strategy 3. Marketing’s Impact on Consumers 4. Consumer Trends 5. Ethical Issues in Marketing and Consumer Behaviour 6. Dark Side of Consumer Behaviour 7. How to find out about consumers? Consumer Research 1. What is Consumer Behaviour? The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. 1. Consumers Behaviour is a Process Consumer behaviour is more than just a purchase. It involves the issues that influence the consumer before, during, and after the purchase. 5 1. Consumers Behaviour is a Process Bill realizes that Bill talks to a Bill goes shopping Bill chooses one Bill takes the TV he is fed up with few of his friends to compare TVs model/brand for its home and becomes his old TV about a new TV of different brands features and price a couch potato Consumer Behaviour is a “Process” FIGURE 1-1 Some Issues That Arise during Stages in the Consumption Process 2. Consumers’ Impact on Marketing Strategy Understanding consumer behaviour is good business The marketing concept is all about understanding consumer needs. Data about consumers help marketers define the market The purpose of understanding consumer behaviour is to predict the future 2.1 Segmenting Consumers (1 of 3) Market Segmentation Identifying groups of consumers who are similar to one another in one or more ways and then devises marketing strategies that appeal to one or more groups. Importance of the 80/20 rule - The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes 2.1 Segmenting Consumers (2 of 3) The following are important demographic dimensions which influence strategic marketing decisions: Age Gender Family structure and Life Style Social Class and Income Ethnicity Geography 2.1 Segmenting Consumers (3 of 3) Psychographics Differences in consumers’ personalities, attitudes, values, and lifestyles The way we feel about ourselves Our attitudes to things and others around us The things we value The things we do in our spare time Segmenting Consumers Relationship Marketing (1 of 2) Relationship Marketing Involves making an effort to interact with customers on a regular basis, giving them reasons to maintain a bond with the company over time. – One way to create relationships with customers is through database marketing….. Database Marketing Database Marketing tracks specific consumers’ buying habits very closely and crafts products and messages tailored precisely to people’s wants and needs based on this information.. Segmenting Consumers Relationship Marketing (2 of 2) Some other types of relationships a person might have with a product include – Self-concept attachment – Nostalgic attachment – Interdependence – Love 3. Marketing’s Impact on Consumers 3.1 Marketing and Culture Popular culture – Inspirational and an influential – Tweeting, Boxing day shopping, Stanley Cup Playoffs – Movie heroes, sports hero, product usage Consumer generated content – Opinions on brands and products – Social networking 3.2 The Meaning of Consumption People often buy products not for what they do, but for what they mean – Brands… § …convey image/personality § …help us to form bonds with others who share similar preferences 3.3 The Global Consumer Global consumer culture has united people around the globe by common devotion to: – Brand name consumer goods – Movie stars – Celebrities This has influenced by: – U-commerce – the use of Ubiquitous networks – RFID tags – communication chips – Companies expanding overseas 3.4 Virtual Consumers (1 of 2) Impact of the Web on consumer behaviour 24/7 shopping without leaving home Handheld devices & wireless communications Not just B2C, now C2C (consumer to consumer) sharing interests around the world A new generation of digital natives Horizontal Revolution Culture of participation 3.4 Virtual Consumers (2 of 2) A revolution in M2M (machine to machine communication) Artificial intelligence (AI) applications improve precision of ad placements Computer engineering is moving into directions of robot companions 4. Consumer Trends Keep Ahead to Keep Up Important consumer trends that will impact marketing strategies in the near future: – Sharing economy – Authenticity and personalization – Blurring of gender roles – Diversity and multiculturalism – Social shopping – Healthy and ethical living – Simplification – Anonymity 5. Marketing Ethics and Public Policy Business Ethics To conduct business honestly and ethically, rules of conduct that guide the marketplace Knowing right from wrong Various cultures and organizations may conduct themselves differently in certain situations 5. Ethical Standards of Conduct Prescribed code of ethics guidelines: – Disclosure of substantial risks with a product – Identifying added features that will increase the cost – Avoiding false or misleading advertising – Avoiding selling or fundraising under the guise of market research Think about it: Are you willing pay a bit more for fair trade coffee that helps various cultures? 5. Needs and Wants: Do Marketers Manipulate Consumers? (1 of 2) Do marketers give people what they want or, do they tell people what they should want? Do Marketers Create Artificial Needs? Are advertising and Marketing Necessary? 5. Needs and Wants: Do Marketers Manipulate Consumers? (2 of 2) Do marketers give people what they want or, do they tell people what they should want? Public Policy and Consumerism – The welfare of the consumer is protected by many laws at various levels of government. Consumer Activism and Its Impact on Marketing – The act of “culture jamming” – Green Marketing – Corporate Social Responsibility – Social Marketing 6. The Dark Side of Consumer Behaviour Consumer addiction: psychological dependency on products or services – Drinking alcohol, smoking cigarettes, drugs – Addiction to technology Compulsive Consumption – Gambling 6. The Dark Side of Consumer Behaviour Illegal activities – A retail theft takes place every 5 seconds – Shrinkage is the industry term for shoplifting and employee theft – Fraudulent abuse of exchange policies in retail § Wear the item once then return it § Change price tags on the items Anti-consumption – Product tampering, graffiti and political protests where property is destroyed. 7. How Do We Find Out About Consumers? The Role of Consumer Research Primary Research – When the data is collected by the researcher specifically for the research question at hand, this called primary research. Secondary Research – When the marketer finds the information needed by going to a pre-existing source of information collected for another purpose. When the researcher uses pre existing data to answer a new research question this is called secondary research. Wheel of Consumer Behaviour FIGURE 1-2 The Wheel of Consumer Behaviour