This document contains extensive notes from Mr. Roest's lectures (almost always translated literally as he said it in the lecture). This way you are well prepared for your final exam, good luck!
•The position of Marketing Management and Consumer Behavior in Business Economics
–Illustrate
•A sneak preview of how Consumers and Marketing interact; i.e. influence each other
–Understand
•The importance of really understanding Consumer Behavior in Business Economics
–Convince
Agenda:
•Business Economics and Marketing
–Marketing in Practice
–Consumer and Marketing
•Consumer Behavior
–Knowledge versus Understanding
–Consumer Behavior Research
•Structure
–Course
–Book
–Assessment
Business Economics:
There is interaction between them (the
arrows!): finance is between Capital and
Business. Account is on the downside of
business and Management is on the upperside
of Business. Marketing is the interaction
between Business and Consumer
Marketing:
Marketing is the social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others. (both parties have
in a way an advantage through marketing)
For example: if a friend buys a new computer, you
also want a new computer. This is an influence for
the consumer
,Marketing impact:
100 most valuable brands: this value
is determined by how much the firm
gets if someone buys their business
(M&A)
How so that for the shirt of Real
Madrid people are able to pay
much more compared to the
adidas shirt (which is almost the
same?)
this is the question he
wonders
Consumers’ Impact on Marketing Strategy
•Market Segmentation:
–Demographics
•Age
•Gender
•Family Structure
•Social Class and Income
•Race and Ethnicity
•Lifestyle
•Geography
•Relationship Marketing: Building Bonds with Consumers
–Relationship Marketing
–Database Marketing (example: customer cards, this could increase loyalty! but we have so many
cards, that the cards are more about getting discounts than loyalty)
Marketing Strategy’s Impact on Consumers
•Marketing and Culture
•The Meaning of Consumption
•Conspicuous Consumption
•Intangible and Tangible Objects
•Types of Consumption Activities
•The Global Consumer, et cetera
•... using the marketing mix (the effect of this on how people behave!)
Marketing in practice = marketing in
bedrijf, the course of last year. Now we will
have the course consumer and marketing,
the other arrow!
We will be mostly busy with discussing
the consumers
,Consumer Behavior:
•Why people do what they do?
•Why people feel what they feel?
•Why people think what they think?
Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition,
consumption, and disposition of goods, services, time, and ideas by (human) decision making [over
time] (= always about decision making, costs are NOT only financial costs!)
True or False:
- False, because people react more with
emotions and less rational
- True, because presentation is very
important in preferences. People most of
the time take the middle option (example
of Ice Cream with the number of ice
scopes)
- False, because people buy more with card
than with cash. Endowment effect
dingen weggeven vinden we niet fijn wat
van mij is, met pin is dat anders (je geeft het geld niet lettelrijk weg, maar online: briefje van 50
uit je portemonnee trekken doet meer pijn)
- True. When things are for free, we think about the social aspect: others should have it also. But
when we have to pay for it (so you have to suffer money or time), people become more selfish
(people are in the financial aspect!)
- True. Negative information weighs more than positive information (= prospect theory) people
are more risk averse than seeking on the whole!
Consumer Behavior: knowledge versus understanding
“He knows how to do the math, but doesn’t really understand it”
“She knows the meaning of the words but doesn’t understand the sentence”
An understanding is a mental construct, an abstraction made by the human
mind to make sense of many different pieces of knowledge (you have to make
the connections of the course material yourself!)
If students understand, then they can provide evidence of that understanding
by showing that they know and can do certain specific things in new situations
, Asking the customer can give you clues ... but beware “If I had asked my customers what they
wanted, they would have said: “a faster horse.” (this implies that they do NOT know what they really
want, you have to decide that for them!)
- Henry Ford
Consumer research therefore involves ... understanding consumer behavior
This is about Organ Donation
Yellow: you have to say if you WANT
to be a donor.
Blue: you have to say when you DO
NOT want to be a donor
this is the default effect!
Choice and … is the set up of this
investigation
- most important for (pre)choice: price,
competence and reputation
- most important for (post)evaluation:
service quality, speed and procedures
That was the rank order!
He skips this!
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