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PERSPECTIVE ON CONSUMER
BEHAVIOR..

02/10/16

Session Highlights:
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What is consumer behavior?


Evolution of Consumer Behavior
Changing consumers
Consumer Behavior & Marketing Strategy

02/10/16

Consumer Behaviour:
3

The behavior that


consumers display in
searching for, purchasing,
using, evaluating, and
disposing of products,
services, and ideas.
02/10/16

Evolution of Consumer Behaviour:


4

Economics: supply and demand, utility, Role of

Income
Psychology: Motivation, perception, learning, beliefs,
attitudes, etc.
Social psychology: social perceptions, social
influence, social rewards, peer pressure, social cues,
social sanctions
Sociology: role theory, social class, family life cycle, the
diffusion of innovation process, and population groups
Anthropology: Folklore, cultural myths, gift giving,
holiday observance, rituals, superstitions
Physio-pyschological: study of the interaction of the
body with the mind.
Biochemistry: external variables such as the makeup
of the products
Human genetics: how our genes direct our
consumption behavior. ad clip\Gimme.pdf
02/10/16

Elements of Consumer Behavior:


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The dynamic interaction of affect and cognition,

behavior, and the environment by which human


beings conduct the exchange aspects of their lives
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Involves the thoughts and feelings people

experience and the actions they perform in


consumption processes
Includes all things in the environment that
influence thoughts, feelings, and actions
ad clip\Fortune Gold Whiskey-lifestyle.DAT

02/10/16

Consumer Behavior is a Process


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CONSUMERS
PERSPECTIVE

MARKETERS
PERSPECTIVE

PREPURCHASE
ISSUES

How does a
consumer decide
about needing a
product?

How are consumer


attitudes
formed/changed?

PURCHASE
ISSUES

Is product
acquisition a
stressful or
pleasant
experience?

How do situational
factors affect
purchase decision?

POSTPURCHASE
ISSUES

Does product
provide pleasure or
perform function?
How is product

What determines
customer
satisfaction and
repurchase?02/10/16

How to react?
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To be successful, a company must determine the

needs and wants of specific target markets and


deliver the desired satisfactions better than the
competition.

02/10/16

Consumer Behaviors Role in Marketing Strategy


8

Marketing strategy

Design, implementation, and control of a plan to


influence exchanges to achieve organizational objectives
Developing and presenting marketing stimuli at selected
target markets to influence

What they think


How they feel
What they do

Powerful force on consumers and society at large

02/10/16

CONSUMER INFLUENCES
Culture
Ethnicity
Personality
Family
Life-stage
Values
Income
Available
Resources
Attitudes
Opinions
Motivations
Past
Experiences
Feelings
Peer Groups
Knowledge

OBTAINING
How you decide you
want to buy
Products you
consider buying
Where you buy
How you pay for
product
How you transport
product home

ORGANIZATIONAL INFLUENCES
Brand
Product
Features
Advertising
Word of Mouth
Promotions
Retail Displays
Price
Quality
Service
Store Ambiance
Convenience
Loyalty
Programs
Packaging
Product
Availability

CONSUMING
How you use
product
How you store the
product in your
home
Who uses the
product
How much you
consume
How product
compares with
Consumer
Behavior
expectations
02/10
/16

DISPOSING
How you get rid of
remaining product
How much you
throw away after use
If you resell items
yourself or through
a consignment store
How you recycle
products

Weak Customer Focus


Underwhelming Customer and Shareholders

Competitive Advantages Through Customer Satisfaction


11

Customer
Satisfaction

Repeat
Buying

Higher
Prices

Profits

Loyalty in
Crisis

Word of
Mouth

Corporate
Performance

One-Stop
shopping

New Product
Innovation

Growth

02/10/16

Customer Satisfaction

Your performance

Excellent

Poor

Are you putting


too much effort
here?

Dont allow
small fallings
to obscure your
real value

Equity of
performance and
importance, but are
you getting your full
reward?
Must do better

Poor Importance to the customer Excellent