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Summary: Consumer Behaviour
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Summary of consumer behaviour
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Consumer behaviour: SummaryLecture 1: Introduction to the course
Chapter 1: Introduction to consumer behaviour
1. What is consumer behaviour?
1.1 DEFINITION
> Consumer behaviour: It is the study of the processes involved when individuals search,
compare, purchase, use, or dispose of products, services, ideas or experiences to satisfy needs
and desires.
- What would motivate a person to buy a car?
- Why do people keep smoking?
- Why do people buy single use co ee cups?
- What would persuade people to donate blood?
Consumer behaviour is an interdisciplinary science:
1.2 CONSUMER VERSUS SHOPPER AND CONSUMERS’ BUYING ROLES
> Shopper: A shopper is someone who is engaged in the process of searching for and selecting
products or services. This term focuses on the buying journey, from the initial search and
consideration to the act of purchasing. Shoppers may not necessarily be the end-users or
consumers of the product. For example, a parent buying toys for their child is the shopper, not the
consumer.
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, > Consumer: A consumer is an individual who ultimately uses or consumes the product or
service. This term emphasises the end-use or consumption of what is bought. The consumer's
experience with the product or service can in uence future buying decisions and brand loyalty. In
the earlier example, the child who plays with the toy is the consumer.
What are the consumers’ buying roles:
- Initiator (initiates the idea)
- Gatekeeper (controls access)
- Decider (compares and evaluates)
- Buyer (actual purchase)
- User (consumes products, services, experiences, disposes)
- In uencer (in uences)
For example: Whiskas advertising “90% of cats wish that they could do the shopping.”
1.3 CONSUMER VERSUS SHOPPERS NEEDS
The consumers’ needs are requirements that I need ful lled by the “products” I buy for me and
my family (e.g. healthy, durable, lling, tasty) whereas the shoppers’ needs are requirement that I
need ful lled as part of the shopping process (e.g variety, value, convenience). In sum, the
consumer is concerned with the usage and bene ts of the product, while the shopper is
concerned with the purchasing experience.
1.4 CONSUMER BEHAVIOUR AS A PROCESS
- Pre-purchase: How do consumers decide that they need a product or a service? What are the
best information sources to learn more about alternative choices?
- Purchase: How do consumers experience acquiring a product or service? What does the
purchase say about the consumer?
- Post-purchase: Does the product perform its intended function? How is the product eventually
disposed of, and what are the environmental consequences of this act?
What determines that one person buys one phone instead of another? The decision of a person to
buy one phone over another can indeed be in uenced by a combination of factors that are part of
the product/marketing mix, often referred to as the organisational in uences which includes the
price, attributes, quality, design, availability, brand image,…
1.5 CONSUMER’S SUBJECTIVE INFLUENCE AND SITUATIONAL INFLUENCE
SUBJECTIVE SITUATIONAL
Personal in uences (demographics, personal Product (attributes, innovation, design,…)
preferences, needs, past experiences)
Psychological in uences (motivation, perception, Place (retail, sales channels)
beliefs, attitudes)
Social in uences (group dynamic, family, friends, Price (pricing strategy)
social media, peer pressure and recommendations)
Cultural in uences (cultural norms, values, social Promotion (branding, image, colour, advertising)
class)
1.6 CONSUMER’S IMPACT ON MARKETING STRATEGIES
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, “There is only one boss. The customer. And he can re everyone in the company from the
chairman on down, simply by spending his money somewhere else” - Sam Walton, CEO of
Walmart
A brand can therefore either the selling concept (push) or the marketing concept (pull):
> Selling Concept (Push strategy): It operates on the principle that products must be pushed
onto consumers. It starts with the factory as the origin
point and focuses on the company's existing products.
The means to achieve sales is through aggressive selling
and promotion. The end goal is to make pro ts through
high sales volume. This strategy doesn't necessarily
consider consumer needs and desires; instead, it relies on
hard-selling techniques to move products into the market.
The push strategy is more about creating a demand for a
product through selling and promotion.
> Marketing Concept (Pull strategy): It begins with the market, speci cally, the needs and wants
of consumers. It asks what the customer wants to buy, not what the company wants to sell. The
focus is on meeting consumer needs through integrated
marketing, which ensures that all aspects of marketing
communication such as advertising, sales promotion,
public relations, and direct marketing are combined
cohesively. By focusing on customer needs and satisfying
them, pro ts are made through customer satisfaction and
loyalty. The pull strategy is about creating a product based
on the demand of the market.
True marketing starts with the customer. His his realities, his needs, his values. It does not
ask «What do we want to sell?» but rather «What does the costumer want to buy? - Peter
Drucker
1.7 MARKETING SEGMENTATION
> Marketing segmentation: It is the process of dividing the mass market into subsets of
consumers who share common needs, characteristics and behaviours.
1. Psychographic segmentation (Most important)
Categorisation of people is based on their lifestyle, in combination with measures of attitudes,
beliefs and personality. While demographic information focuses on WHO buys the product,
psychographic researchers WHY people buy the product.
-> Lifestyles, attitudes, interests, beliefs, emotions, values and aspirations
2. Behaviour segmentation (Most important)
Exploring groups, audiences and consumers by their actions and behaviours. You look at WHAT
the consumer does.
-> Purchasing behaviour, usage behaviour, bene t sought, customer satisfaction and customer
loyalty.
3. Demographic and geographic segmentation
> Demographic Segmentation: It is the process of dividing a market into subgroups based on
demographic factors such as age, gender, income, and education. It helps marketers tailor their
strategies to more precisely match the needs and wants of speci c consumer groups.
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, > Geographic Segmentation: This refers to dividing a target market into geographic units, such
as countries, cities, or neighbourhoods, allowing for marketing e orts to be localised and aligned
with the unique characteristics and preferences of consumers in di erent locations.
2. Why should we study consumer behaviour?
2.1 VALUE DISCIPLINES
1. Treacy and Wiersema
> Customer Intimacy: This is a business
strategy that prioritises personalised service
and close relationships with customers.
Companies that focus on customer intimacy
strive to provide the best total solution to their
customers' needs, often by tailoring their
o erings to individual customer requirements
and building long-term relationships.
> Operational Excellence: Companies that focus on operational excellence seek to lead the
market by providing their products or services at the lowest total cost. They aim for e ciency,
streamlined operations, and a reliable, no-frills experience that provides value through cost
leadership and convenience.
> Product Leadership: This discipline focuses on delivering the best product by committing to
continuous innovation and creativity. Companies that excel in product leadership consistently
bring cutting-edge, market-leading products to market rapidly, staying ahead of the competition
through innovation.
For example: Serving chicken Caesar salad on a ight from Maastricht to Barcelona would not
align with Ryanair's strategic goal of cost leadership. O ering such a menu option would increase
the overall expenses for each passenger, which contradicts their commitment to keeping costs
low.
For example: In the case of the Bernie vs. Hillary example, it seems to be highlighting that while
Hillary Clinton o ered a detailed college plan, it may not have been perceived as a clear value
proposition when compared to Bernie Sanders, who presented broader themes like healthcare,
defense, education, civil rights, energy, immigration, and taxes. However, the critique here is that
by promoting too many themes, the clarity of the message may be lost - this is encapsulated in
the saying, "If you say three things, you don’t say anything”.
2. Purpose
The purpose has more value than the product itself:
Why: This is the core belief of the business. It's the reason the
organisation exists beyond just making money. It's about the
purpose and the cause; why the company does what it does, why
it believes in what it believes. He suggests that companies should
start with the 'Why' when communicating their message because it
speaks to the part of the listener's brain that in uences behaviour
and decision-making.
How: This refers to the process or the unique selling proposition that di erentiates a company
from its competitors. It's about how the company ful ls its core belief, the speci c actions it takes
to realise its 'Why', and how it delivers its products or services.
What: This is what the company does, the products it sells or the services it o ers. Most
companies communicate what they do, but the 'Golden Circle' theory posits that communicating
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