H1: understanding consumer behaviour in context
Concepts
- Consumer: someone who uses, consumes and/or enjoys the benefit of a product/service
- Disposal: divestment of a product when its worn out or used up
- Consumer behavior: interaction of affect and cognition, behaviour, and environmental
events by which human beings conduct the exchange aspects of their lives
General model of consumer behaviour
- Affect (emotion) + conation (intended behaviour) + cognition (thought processes) + personal
& environmental factors = consumer behaviour
- Basic attitudes = thoughts, emotion and intended behaviour
- Influencing thought processes by providing relevant info at the right time
- Influencing emotion by using appealing communication and imagery
- Influencing purchase by providing suitable environmental stimuli
Segmentation
The act of dividing up a market into groups of people with similar needs
- Geographic: smaller groups based on location
- Psychographic: divide according to psychological profiles of potential customers
- Behavioural; divide according to behaviour of members
- Demographic; divide according to people’s age, income and social standing
Marketing
- Relationship: its cheaper to retain an existing customer than to recruit a new one
Transactional marketing Relationship marketing
Focus on single sale Focus on customer retention
Orientation on product features Orientation on product benefits
Short timescale Long timescale
Little emphasis on customer service High emphasis on customer service
Limited customer commitment High customer commitment
Moderate customer contact High customer contact
Quality is the concern of the production Quality is the concern of all
department
Goals and incentives
- Goal: specific targets towards which consumption behaviour is directed
- Incentives; reasons for actions
- Personality; those factors which make up the individual’s mental processes
- Self-concept; the belief one has about oneself
Psychological drivers for consumer behaviour
- Drive and motivation studies
- Studies of goals and incentives
, - Perception studies
- Studies of personality and self-concept
- Learning studies
- Studies of attitude formation and change
Sociological drivers for consumer behaviour
- Studies of peer and reference groups
- Studies of the family
- Studies of class and culture
- Studies of self-image and role
Summary
- People try to behave in ways that enable them to enjoy their lives, to relate to their friends
and families, and to contribute to society at large
- This is likely to involve consumption of products and services produced by other people
H2: decisions, behaviors and interactions
Decision making using goals
- When goals conflict, strongly active goals will inhibit competing goals until the stronger goal
has been achieved and the weaker or less active goal will re-emerge
Concepts
- Evoked set: group of brands a consumer can remember spontaneously
- Consideration set; group of brands that a consumer believes will meet his or her need, and
that are therefore seriously being considered for purchase
Dominant end goal / drivers Basic purchase motivation Examples
for end goals
Optimize satisfaction Seek maximum positive Buy dinner at best restaurant
consequences rather than risking a cheap
diner
Prevention Avoid potential unpleasant Buy weatherproofing for a
consequences house
Resolve conflict See satisfactory balance of Choosing quality above looks
positive and negative of a car; avoiding high
consequences maintenance costs
Escape Reduce or escape from current Buying anti-dandruff in order
aversive circumstances to prevent
Maintenance (satisfy) Maintain satisfaction of a basic Buying bread at a local shop
need with minimal effort
Decision making progress
1. need recognition; individual recognizes something is missing in their life
2. search for information; internal (recalling info/remembering) or external (outside sources)
3. pre-purchase evaluation of alternatives (which of possible alternatives might be best for
fulfilling the need)
4. purchase; act of making the final selection & paying for it
5. consumption; using product for purpose of fulfilling the need
6. post-consumption evaluation; considering whether product satisfied need or not, any
problems arising from the purchase / consumption
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