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MK01
Getting Smart
PowerPoint template

B216 Marketing
School of Management and Communication
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Activity 1: The Shopaholic !

MISSION POSSIBLE - SHOPPER

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Activity 1: The Shopaholic !

Your Mission: To buy A Smart Watch!

In your teams, map out

the steps or
consideration that goes
through your minds or
what you have done to
eventually buy the
Smart Watch. You have
5 minutes to complete
this mission.
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Activity 1: The Shopaholic !

Your Mission Begins Now!

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Learning Outcomes
• Explain the role and importance of the
marketing function

• Apply motivational theory in determining

Consumers’ Motivation in buying

• Discuss the stages in the Consumer Buying

Decision Process
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What is Marketing?

Marketing is the process by which companies create

value for customers and build strong relationships in
order to capture value from customers in return

The marketing management philosophy that

achieving organization goals depends on knowing the
needs and wants of target markets and delivering
the desired satisfactions better than competitors do
Marketers select target markets, then create meaningful
relationships with customers, by delivering superior
customer value through the execution of marketing
strategies
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The Consumer Market

The Consumer Market – Markets dominated by products and

services designed for the general consumers or end users.
Also referred to as Business-to-Consumer (B2C) market.
Example: NTUC Fairprice (Business) selling to end users (Consumer)
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Consumer Behaviour
Model of Consumer Behaviour

Environmental
Buyer’s Black Box Buyer Responses
Stimulus
Marketing Buyer’s Characteristics • Product Choice
• Product • Motivation • Brand Choice
• Price • Beliefs & Attitudes • Dealer Choice
• Place • Perception • Purchase Timing
• Promotion • Personality • Purchase Amount
• Learning
Environmental
Application: To attract consumers to
• Economic Purchase Decision Process purchase the new smartphones, we
• Technological • Problem Recognition need to understand:
• Political • Information Search - Why consumers buy (motivation)
• Cultural • Evaluation of Alternatives - How consumers buy (buyer decision
• Demographic • Purchase Decision process)
• Post-purchase Behaviour

Adapted from Kotler, P. & Armstrong, G. (2012). Consumer Markets and Consumer Buyer Behaviour ,Principles of Marketing (14th ed.) [pp 161] Pearson.
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Psychological Factors in Consumer Behaviour

Motivation
Consumer behaviour is
mostly influenced by
psychological factors such as :
Consumer
Behaviour
• Motivation
• Level of purchase
involvement Level of
Purchase
Involvement
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Buyer’s Motivation
The Consumer Market (B2C)
Watch the video on Maslow’s Hierarchy of Needs :-
Maslow's Hierarchy of Needs - What motivates us? – YouTube

Maslow's Hierarchy of Needs - What motivates us? (2018) Retrieved on 24 February 2022 , from YouTube website: Maslow's Hierarchy of Needs - What motivates us? – YouTube
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Buyer’s Motivation
Buyer’s behaviour is influenced by psychological factors such as motivation.
One motivation theory is Maslow’s Hierarchy of Needs, which explains why people are driven by particular needs at
particular times.
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TheBuyer’s Motivation
Consumer Market (B2C)

Self-actualisation - challenge, new

experiences, love of art, nature, etc.

Esteem - competition,
achievement, recognition

Belongingness - team sport,

club 'family‘ and relationships

Safety - against accident

and injury

Biological - health, fitness,

energising mind and body, etc.

Adapted from Maslow’s Hierarchy of Needs, businessballs.com website: Maslow's Hierarchy of Needs (businessballs.com)
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Activity
The 2: What
Consumer is where?
Market (B2C)
Drawing from your own experience, think of the function of the products listed in the box below and the
benefits they offer. Place each of them into their respective levels within the hierarchy in the table.

Branded Fried Fire Starbucks

House iPhone Slippers Guitar Laptop
Wallet Chicken Extinguisher Coffee

Level Product Benefits of the product

E.g. fried chicken – satisfy hunger

(a) Biological and Physiological E.g. fried chicken, house
house – shelter against weather elements

(b) Safety

(c) Belongingness and Love

(d) Esteem

(e) Self-Actualisation
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Which need is the advertised product or service trying to satisfy?

Esteem - Status Safety Needs – Stability

Belongingness & Love - Family
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Which need is the advertised product or service trying to satisfy?

Self-actualisation Safety – Security, Protection Biological – Food

*Situation depends on consumers’ purpose
– New experiences Esteem – Achievement, Status for intending to purchase this product
(Hunger? Happiness?)
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5 Stages of Consumer Buying Decision Process

Problem Information Evaluation of Purchase Post-Purchase
Recognition: Search: Alternatives: Decision: Behaviour:
Perceiving Seeking value Assessing Buying Value in
a need through value value consumption
internal/ or use
external search

I need Whose books

What options I am going to buy Philip Is this Phillip Kotler book
reference books for are better?
do I have? Kotler’s books! a good purchase?
Marketing Author 1 VS Author 2

Internal search:
✓ past experience
Where I can get
External search:
them cheap? From the 2nd
✓ Friends, lecturer ✓ Borders hand bookstore
✓ School bookshop
✓ Online reviews ✓ 2nd hand bookstore
✓ Book catalogue
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Activity
The Consumer 3
Market (B2C)
Jane is shopping in Watsons store for a new hair dye colour as her current dyed hair colour seems to be fading off.
Just as she is browsing, she sees an advertisement by Liese featuring their range of hair colour supplement that
aims to suppress unwanted yellowing of coloured hair.
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Activity 3 - Market
The Consumer continue(B2C)
Consumers go through a process while making purchase decisions.
With reference to each of the stages below, suggest some possible action/response Jane might have after seeing
the advertisement. Also, suggest what Liese can do to facilitate the consumer purchasing decision process. Input
your answers in the table below.
Stages Jane’s response at each stage of decision Strategies for Liese to facilitate the decision
process process
(a) Problem Recognition Jane’s current dyed hair colour is fading off. Advertise e.g. using point of purchase ads in
stores such as Watsons where their customers
are shopping in, particularly near hair dye or
hair care products

Send emailer to customers who bought hair

dye from them.

(b) Information Search

(c) Evaluation

(d) Purchase Decision

(e) Post Purchase

Behaviour/Evaluation
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Levels of Purchase
The Consumer Involvement
Market (B2C)
Two Levels of Purchase Involvement

1. High Involvement Purchase

2. Low Involvement Purchase

The amount of time and energy spent

on the purchase influences the type
of purchase involvement.

Usually High Involvement Purchase

requires MORE time and energy.

While, Low Involvement Purchase

requires LESS time and energy.
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Examples of High Involvement

The Consumer Purchase
Market (B2C)

Houses Cars Shoes

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Examples of Low Involvement

The Consumer Purchase
Market (B2C)

Beverages Pencils Tissues

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Levels of Purchase
The Consumer Involvement
Market (B2C)
• Consumer purchase behaviour is influenced by the level of purchase involvement.
• The characteristics of levels of purchase involvement are as follows:

• When product is usually expensive, • When product is usually low cost

risky, purchased infrequently and/or and/or frequently purchased
highly self expressive
• Consumers do not search extensively
• Consumers gather information for information or evaluate the
about products and evaluate the alternatives before purchase
alternatives before purchase

High Involvement
Purchase Low Involvement
Purchase
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Activity
The Consumer 4
Market (B2C)
Consumer purchase behaviour is influenced by the level of purchase involvement.

a. Is laptop a high or low involvement purchase?

b. Do you think consumers go through all 5 stages of purchase decision for all their purchases? Name
one product where the consumer does not go through all 5 stages of decision process and explain
why.
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Activity
The 5 (Class
Consumer discussion)
Market (B2C)
If your company is planning to market a laptop to RP students, how does understanding the Maslow’s
Hierarchy of Needs influence a prospective consumer’s (buyer’s) decision making process?
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Activity
The 6 (Team):
Consumer Samsung
Market (B2C)

Samsung, known for consumer products such as mobile devices and home entertainment systems, is the
global leading smartphone vendor. Since 2012, the South Korean company has held a share of 20 to 30
percent in the smartphone market. Huawei and Apple have consistently been its closest rivals over the
years, while brands such as Xiaomi and Oppo have also increased their smartphone market share with its
affordable premium and more cutting-edge phones.

Consumers for Samsung’s latest smartphone model can be categorized into the following two types:
1) prefers better resolution for taking higher quality photos with their friends and sharing the captured
sweet memories with each other.

2) prefers a good looking phone design that they can be proud to hold.

Image credits: https://www.computerworld.com/article/3409797/5-best-phones-for-business-2019.html

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Activity 6 (Team): Samsung

Your team must advise Samsung’s
marketing department on how it should
market the latest Samsung Galaxy S23
Ultra Smartphone successfully to the
consumer market.

You need to consider the buyers’

motivations, the level of involvement
and the consumer buying decision
process to suggest suitable strategies
for Samsung to attract the consumer
buyers.

Team to present your solutions in

PowerPoint slides and to be uploaded to
team submission folder.

Disclaimer:
The above problem is fictional and not representative of company’s intent. Students are allowed to visit the
websites of companies offering similar products for information search. However, students are NOT
ALLOWED to contact the company and its personnel for additional information. Students found doing so will
be heavily PENALISED.
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Conclusion
Marketers need to understand why consumers make their purchases and how they
arrive at their purchase decision, especially for a new product.

By understanding the customers firms can better design their marketing strategies
to attract and retain the customers.
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Concept Diagram

The Consumer Market (B2C)

Consumer Buying Decision Process

Buyer’s Motivation
Maslow’s Hierarchy of Needs Stage 1: Stage 2: Stage 3:
• Self Actualization Problem Information Evaluation of
• Esteem Recognition Search Alternatives
• Belongingness & Love
• Safety
Stage 5: Stage 4:
Post-Purchase Purchase
• Biological & Physiological
Behaviour Decision
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Resources
Recommended Textbooks
• Kotler, P. & Armstrong, G. (2012). Consumer Markets and Consumer Buyer Behaviour, Principles of Marketing (14th
ed.) [pp158 – 178, pp 188 - 207] Pearson.

• Kotler, P., Armstrong, G., Ang, S.H., Leong, S.M., Tan, C.T., & Yau, O. (2011). Consumer Markets and Consumer
Buyer Behaviour, Principles of Marketing: An Asian Perspective (3rd edition) [pp 115 – 143, pp 144-156]
Pearson/Prentice-Hall

Reference Textbooks
• Kotler, P. & Keller, K. (2006). Marketing Management (12th ed.) Prentice Hall.

• Gamble, P., Tapp, A., Marsella, A. & Stone, M. (2005). Marketing Revolution. Kogan Page Publications.

• McDaniel, C., Lamb, C.W., Hair, J. (2008). Introduction to Marketing (9th ed.). Thomson South-Western.

• Hoffman, D., Czinkota, M. & Dickson, P. (2003). Marketing – Best Practices. Thomson Learning.

• Fisk P. (2006). Marketing Genius. Capstone Publications

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Resources
Websites
• Mobile Youth – Understanding Youth Culture (2009). Retrieved on 22 February 2022, from mobile youth website:
http://www.mobileyouth.org

• Consumer Buying Behaviour. Retrieved on 24 February 2022, from learn marketing website:
http://www.learnmarketing.net/consumer.htm

• Academy, P. (n.d.). Marketing Theories - The Consumer Decision Making Process. Retrieved on 24 February 2022,
from professionalacadamy.com website: https://www.professionalacademy.com/blogs-and-advice/marketing-theories-
--explaining-the-consumer-decision-making-process

• Consumer Buying Process. Retrieved on 24 February 2022, from scribe.com website:

https://www.scribd.com/doc/7103205/Consumer-Buying-Decision-Process

• Maslow's Hierarchy of Needs. Retrieved on 24 February 2022, from businessballs.com website:

https://www.businessballs.com/self-awareness/maslow-s-hierarchy-of-needs/