Class notes Introduction to Consumer Behaviour (EDB20203) Consumer Behavior
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Introduction to Consumer Behaviour (EDB20203)
Institution
Universiti Kuala Kumpur
Book
Consumer Behavior
This is a lecture notes for the first topic of Consumer Behaviour subject. Students will find infographic to summarise the points. There are also QR that link to relevant YouTube video to strengthen the points.
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INTRODUCTION TO CONSUMER BEHAVIOUR
C
onsumer behaviour is di erent from other marketing subjects. Learning about consumer
behaviour involves to a large extent psychological elements. It is a topic where we need to
understand about people. Consumers are normal human being with feelings, emotions, and
perceptions. Hence, in order to under the consumers, it will be wise to look at consumers as
human being rather than target markets.
In this topic, we will brie y discuss about the following topics:
1. Consumer behaviour as process in identifying and understanding about consumer and market
segmentation.
2. Understanding about consumer choices
3. Explain about the di erent between needs and wants.
4. Di ering perspective on research on consumer behaviour.
5. Motivations to consume.
6. The connection between culture and technology.
What is consumer behaviour ?
“Consumer behaviour is a study on process involved when an individual or groups of people
select, purchase, use, or dispose of products, service, ideas, or experience to satisfy their needs
and desires”
To understand about consumer behaviour, we need to ask few questions.
Consumer behaviour studies about where the consumer get the information about the product,
from what channel? Why do consumers use that channel to get information?
Consumer behaviour is a process of understanding individual or groups preferences in selecting a
particular product, service, idea or experience. For example, why do you choose brand A and not
brand B.
After the consumer had consume the product, how the consumer dispose of the leftovers of the
product. For example, the wrapper or the container of the product. Is the consumer going to put
in the garbage bin? Some product such as electrical goods, does the consumer will send the
product back to the originator of the product to be reuse, recycle, or repurpose?
Basically, consumer behaviour is looking the whole consumer experience with the product,
service, idea, or experience. We want to know how the consumer behave at every contact point
with the product.
We can summarise the whole consumer journey with the following 3 stages of consumption
process:
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, Consumer is a person who identi es the need and the desire, makes the purchase and then
dispose of the product through that 3 stages of consumption process. Consumers for speci c
industries may behave di erently from one industry to another. For example, consumers who buys
environmental friendly products may behave di erently from consumers who buys sports
equipment products.
There are two types consumers:
(1) Personal
(2) Business
For the purpose of this subject, we will concentrate only on personal consumer.
One may question why should we concern with post purchase issues. How consumer dispose the
product does not give any revenue to the product owner. On one hand, this presumption may be
correct. On the other hand, post purchase issue give rise to environmental issue and also another
business idea. For example, during this Covid 19 pandemic, the usage of disposable face mask
will ll the dumpsite for years to come. However, this problem give an
opportunity to marketers to introduce reusable face mask. The introduction is
not only able to ease the pressure to the dumpsite but present pro table
opportunity to marketers. Understanding the post purchase behaviour also
present the opportunity for companies to increase their public image. By
providing an avenue for consumers to recycle the company’s product, the
company can contribute in creating better sustainable business and enhance its
public image at the same time.
Choices
We have choice and we acted based on our right to choose. However, how do we exercise our
choice? Marketing activities asserts enormous impact on our understanding on policy issues and
pop culture. Due to the extensive advertisements bombarded through the social media and mass
media, perhaps it had in uenced our opinions to choose certain products, service, or even to
embrace certain ideology. We may think that we are exercising our power to choose, but we
subconsciously limiting our choice to conform with social acceptance or peer pressure. The
pressure to conform with these social acceptance of what being perceived as being the trend
such as the current popular culture or current technology.
Market Segmentation
We put consumers on speci c segments based on what the consumer want, what the consumer
value, at what quantity, the time of the purchase, and the place consumer buy the product.
Marketers can strategically choose 1 or 2 segments based on demographic, geographic,
psychographic or behavioural attitudes.
Marketers need to specify what segment they are targeting. We cannot sell to everyone as not
very one will buy our product. In consumer behaviour subject, we need to understand the
behaviour of the targeted segmentation.
For demographic segmentation, say we take age as an indicator. Although demographic
segmentation is a good indicator on how we segmented our market, it may not be accurate.
However, it may be presumptuous to generalised everyone at the same location, same age, or
social class shares the same interest.
A more accurate segmentation is through psychographic. We can target to sell our product from
18 to 50 years old. You have buyers from di erent age group, from di erent social class, and from
di erent countries. For example, you have Avery age 21 from Ontario, Carl age 50 from Mexico,
and Killian age 35 from Spain. What connects all these di erent people? What are the
characteristic of all these people have in common?
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