3/23/2021

LECTURE 1

INTRO TO CONSUMER
BEHAVIOUR

INTENDED LEARNING OBJECTIVES

With this lecture, you will learn:

1. What is CB and Why Should I Care?

2. Value and the Consumer Behavior Value Framework

Picture of an ancient business

Pompei, Province of Naples, Campania, Italy. 6th–7th century BC to 79
A.D

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CONSUMER ?
NOT CUSTOMER?
WHY?

IT DOESN’T END AT SALE POINT

1-8 AS PRENTICE HALL

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CONSUMPTION PROCESS
Consumer behaviour - Set of value-seeking
activities that take place as people go about
addressing their real needs

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REAL NEED?
What do the kids NEED ?
https://www.youtube.com/watch?v=EQ3ePGr8Q7k&list=PLzzOAOuH
7mFOBeOq1V2z24229sWgRt5tN&index=2&t=20s

KNOW WHAT THEY “VALUE”

Want

Need

CONSUMER BEHAVIOUR AS A FIELD OF

STUDY
Study of consumers as they go about the consumption process; the
science of studying how consumers seek value in an effort .

to address real needs

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CB FIELD’S ROLE IN BUSINESS, SOCIETY,

AND FOR CONSUMERS
CB is important in at least three ways:
Input to business/marketing strategy.
Force that shapes society.
Input to making responsible decisions as a consumer.

CONSUMER BEHAVIOUR GUIDES

MARKETING STRATEGYC

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FIGURE 1.1
STAGES IN THE CONSUMPTION PROCESS

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BEHAVIOUR OF CONSUMER SHAPES OUR

SOCIETY
WHY?

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CONSUMER BEHAVIOUR FACICITATE

PERSONAL GROWTH

Help you to make

more informed

decision as a

consumer

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=> CONSUMPTION IS
IMPORTANT!

HOW DO WE CONSUME THINGS? Behaviour

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Depends on
VALUE!!!

THE END AND THE MEAN To understand why you

arrive at a decision

CONSUMER VALUE FRAMEWORK (CVF)

Consumer Value Framework (CVF) shows factors that shape
consumption-related behaviours and determine the value associated
with consumption

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TWO TYPES OF VALUE

Utilitarian value - Gratification derived because something helps
a consumer solve a problem or accomplish some task

Hedonic value - Value derived from the immediate gratification

that comes from some activity

MARKETING STRATEGY AND CONSUMER VALUE

Marketing strategy - Way a company goes about creating value for
customers

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TOTAL VALUE CONCEPT

Total Value Concept - Business practice wherein companies operate
with the understanding that products provide value in multiple
ways

Example: The Total Value Concept of the 2015 Ferrari 458 Speciale

Transportation
The Ferrari service plan. 
The feelings associated with driving the car.
The feelings of status and pride that come with ownership

Is air sellable?
IS AIR VALUABLE?

$0.80/ breath

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VALUE CAN BE CALCULATED

Customer Lifetime Value (CLV) - Approximate worth of a customer to
a company in economic terms; overall profitability of an
individual consumer

CLV = npv(sales-costs) + npv(equity)

VALUE CAN BE CO-CREATED

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