Consumer Behavior and Insights

Consumer Behavior and Insights

By the end of this course you should be able to….

CO1: Analyze the internal factors and its influence on

consumer preferences and insight

CO2: Understand the external factors which influence

consumer preferences

CO3: Appraise the influence of market research and

consumer insight on acquisition and retention of
consumers

CO4: Apply Database marketing in building customer care

and designing advertising campaign

CO5: Develop consumer insight through market research

Consumer Behavior and Insights
The Course structure

3 Credit Course 15 hours credit = 45 Hours of engagement

24 Hrs of Classroom engagement by Faculty

30 Hrs of synchronous learning
6 Hrs of Classroom engagement by Industry
Practitioner

5 Hrs of post-class readings / activities

4 Hrs of post-class assessment work

15 Hrs of asynchronous learning
6 Hrs of self-paced LinkedIn Learning courses
and certifications
Consumer Behavior and Insights
Assessment Structure

Assessment Scheme (CA: UE - 50: 50)

What is important about the brand proposition? Creativity? Imagery?

Ads? Terminology? Jingles? All of them are important provided they are
anchored on consumer behavior to address changes in the environment.
Substantiate with suitable example.

Group Assignment – to be submitted on or before 11-02-23 (10 marks)

 LinkedIn Learning Courses

✔ Marketing Foundations: Consumer Behavior on LinkedIn Learning

✔ Advanced Consumer Behavior on LinkedIn Learning

Let’s Begin!
Consumer Behavior and Insights
Module 1 : Understanding the consumer: Need,
Motivation, Emotion
Consumer Behavior and Insights

Understanding the consumer: Need, Motivation, Emotion

Definition and meaning of Consumer Behavior,

Concept of obtaining, Consuming and Disposing

Need recognition, motivation leading to purchase

decision-types of motivation, self and self-image,
emotion

Communication and Consumer

Behavior-persuading consumers through
advertising, reference group, and WOM
 
 Customer v/s Consumer
BASIS FOR
CUSTOMER CONSUMER
COMPARISON

The purchaser of goods or services is The end user of goods or services

Meaning
known as the Customer. is known as a Consumer.

A customer can be a business entity,

Resell who can purchase it for the purpose No
of resale.

Purchase of goods Yes Not necessary

Purpose Resale or Consumption Consumption

Price of product or
Paid by the customer May not be paid by the consumer
service
Individual, Family or Group of
Person Individual or Organization
people
SATISFYING THE UNMET NEEDS OF THE CUSTOMERS

PUREIT
TATA SWACH

AQUASURE
Evolution of hand sanitizer bottles
 Consumer Behavior

Consumer behavior refers to the actions and decisions made by individuals and
households when acquiring, using, evaluating, and disposing of goods and
services.
Understanding Consumer Behavior

✔ helps marketers to understand the factors that influence

consumer's choice-psychological, personal, social, and
cultural factors
✔ As well understand marketing variables such as product
design, pricing, and advertising.
✔ helps marketers and businesses understand their target
audience and make informed decisions to improve marketing
strategies and increase sales.
What Can a Car Help Express About its Owner?
 Obtaining, Consuming, And Disposing

The concept of obtaining, consuming, and disposing

in consumer behavior refers to the three stages of the
consumer decision-making process.
 Obtaining, Consuming, And Disposing
• Obtaining: In the obtaining stage, consumers are looking to satisfy a need
or want by searching for and evaluating potential products or services.
Involves activities such as researching products, comparing prices, and
evaluating brand reputation.

• Consuming: In the consuming stage, the consumer actually uses the

product or service. This stage can also involve the evaluation of the
product's performance and the satisfaction derived from its use.

• Disposing: In the disposing stage, the consumer decides what to do with the
product after it has been consumed. This can include disposing of it,
returning it, or keeping it for future use. The disposing stage can also
have an impact on the consumer's future purchasing decisions, such as
whether to purchase the same product again or switch to a different brand.
Consumer Decision making process
BUYER ROLES
 CONSUMER INFLUENCES ORGANIZATIONAL INFLUENCES
Culture Ethnicity Brand Product Features
Personality Family Advertising Word of Mouth
Life-stage Values Promotions Retail Displays
Income Available resources Price Quality
Attitudes Opinions Service Store Ambiance
Motivations Past Experiences Convenience Loyalty Programs
Feelings Peer Groups Packaging Product Availability
Knowledge

OBTAINING CONSUMING
∙How you decide you want DISPOSING
∙How you use the product
∙How you get rid of
to buy ∙How you store the product
∙Other products you remaining product
in your home
∙How much you throw
consider buying ∙Who uses the product
∙Where you buy away after use
∙How much you consume
∙How you pay for product ∙If you resell items yourself
∙How product compares with
∙How you transport or through a consignment
expectations
product home store
∙How you recycle some
products

Consumer Behavior
The Nature of Consumer Behavior
Overall Conceptual Model of Consumer Behavior

1-22
 So, Consumer Behavior…
Consists of actions taken while searching for, purchasing, using
evaluating and disposing of the products or services that they
expect will satisfy their needs. For the above marketing of the
products/services must take care to

• Create value for the products in the customers mind

• And, the need is to retain the customers
 Consumer Behavior
has evolved with technology

• Transactional Behavior on online portals

• Whereas on social media it is emotional behavior
Consumer Behavior encourages us to study

• How to retain the consumer

• How does one create loyalty
• How does the trust and faith factor work Also….
• Why is the product unable to create an impact
 Proposing with a Diamond Ring – De Beers

• The modern engagement ring as we know it and the story

behind it was invented by none other than ad agency N.W. Ayer
for their client De Beers in the early 1900s.
• The campaign was set in motion during a time when big
spending was considered to be irresponsible.
• Instead of trying to work with society, De Beers (and their ad
agency) aimed for a more disruptive approach
• But before trying to sell diamonds with an insane profit, De
Beers had to monopolize and stabilize the industry.
• Through extensive research and surveying of customer
attitudes, De Beers determined that they needed to link the
process of buying a diamond to an emotional experience
• Their slogan, “A Diamond is Forever,” became a top
advertisement in the United States and popularized the now
standard practice of purchasing an engagement ring with a
diamond.
https://www.youtube.com/watch?v=0Omo-gr0RU0
 Cadbury
• Pre 1990‟s older generation of the Indian population held the notion that
Cadbury was for kids and they showed a preference of Mithai .

• CDM chocolates strategically in mid-1990‟s redefined their product for all

age group by their “Real Taste Of Life” campaign. This “Kya Khaas Hai
Zindagi Mien” campaign was to appeal to the child in every adult and shifted
and expanded the focus from “Just for KIDS” to “The KID in all of US”.

• The ad concentrates on spontaneity and shared good feeling ‟One of the

revolutionary advertisement in this campaign “The girl dancing in the cricket
field “ad created a boom in the market by targeting every audience and
showcasing the “Kid in Everyone‟.
https://youtu.be/e7JATezA1nY
Segmentation, Targeting, Positioning
And Differentiating
Segmentation, targeting, positioning and differentiation
Basis of Market segmentation
Geographic segmentation
Demographic segmentation generations
Psychographic segmentation
Behavioral segmentation
Example of segmentation
 • Geographic Segmentation:
✔ global presence and operates in more than 100 countries,
✔ significant presence in North America, Europe, and Asia.
✔ The company has tailored its menus, marketing campaigns, and store designs to fit the preferences and cultural
nuances of different countries and regions.
✔ For example, McDonald's offers halal menus in some Muslim-majority countries and vegetarian options in India.
• Demographic Segmentation: McDonald's also segments its market demographically, targeting different age groups,
income levels, and genders.
✔ For example, the Happy Meal is geared towards children, while the Dollar Menu is aimed at value-conscious
customer
✔ McDonald's also segments its market based on customer behavior.
• The company tailors its menu offerings, store designs, and marketing campaigns to different consumer behaviors.
✔ For example, McDonald's introduced all-day breakfast to cater to customers who want breakfast food outside of
traditional breakfast hours.
✔ The company also offers delivery and mobile ordering to appeal to customers who prefer to order food online or
through their smartphones.
✔ McDonald's also segments its market based on occasion. For example, the company's marketing campaigns and menu
offerings change during the holiday season to cater to customers celebrating Christmas or Thanksgiving.
✔ The company also promotes its breakfast menu during the morning rush hour, targeting customers who want a quick
and easy breakfast on the go.
 Targeting in consumer behavior

Targeting is the process of

evaluating the attractiveness of the
consumer segments, as well as
determining how to attract the
consumers
Positioning in consumer behavior
Emerging segments and Market centric brand propositions

• Moov – a balm for back aches

• Fogg Deodorant – on the number of usage sprays for the
value conscious customers
• Glam up – for quick makeup
• Itch guard - for skin issues like itching in a tropical climate
oriented country
• Krack – as a cure for the cracking of heals in a country
where people are used to walking without slipper at home
and damp on rough floors
• Livon – as hair southerner in an urban environment where
haircare and beauty are becoming important
• Colgate Total Mouthwash -Stronger, healthier gums.
• Colgate Plax Antibacterial Mouthwash -Plax shifts plaque ,For longer lasting fresh breath.
• Colgate Toothpaste - So clean, you can feel it ,It stays on the job fighting cavities, Colgate helps
stop cavities before they start.
• Colgate Total Toothpaste - Cleans more than just teeth, Fights germs for 12 hours.
• Colgate Total Daily Repair - A healthier mouth day in, day out.
• Colgate Total Advanced - Whole mouth health.
• Colgate Total Advanced Whitening - Choose the healthier side of whitening.
• Colgate Whitening - Removes stains 30% better!
• Colgate Sensitive Pro-Relief - Stop numbing. Start repairing.
• Colgate Sensitive -Everyday protection for sensitive teeth.
• Colgate Junior Toothpaste - For superstars like you, A lesson learnt young is a lesson for life.
• Colgate Enamel Health Mineral Repair - Smile with strength.
• Colgate Oxygen - Pure. Fresh. Clean.
• Colgate 2 in 1 Toothpaste & Mouthwash -What a refreshing idea.
• Colgate Max Fresh - Packed to the max with freshness.
• Colgate Fresh Confidence -Switch on the power of freshness.
• Colgate Maximum Cavity Protection -Save the world from cavities.
• Colgate Time Control Toothpaste - Everyday protection against time.
• Colgate with MFP -The breath-freshening cavity fighter.
Purchase decision types
Self and self image
Consumer communication process
https://www.bing.com/ck/a?!&&p=79c3c49b09f794c9JmltdHM9MTY3ODIzMzYwMCZp
Z3VpZD0wMDc3NDZmYS1kMzNiLTY3MjAtMTZhYy00OTM3ZDIyZDY2MTEmaW5
zaWQ9NTQ0NA&ptn=3&hsh=3&fclid=007746fa-d33b-6720-16ac-4937d22d6611&u=
a1L3ZpZGVvcy9zZWFyY2g_cT10b3ArNStwZXN1YXNpdmUrYWR2ZXJ0aXNpbmc
rZXhhbXBsZXMrdmlkZW8mdmlldz1kZXRhaWwmbWlkPTQwOURCQjJEQTFGRTg
5NEEyOTYwNDA5REJCMkRBMUZFODk0QTI5NjAmRk9STT1WSVJF&ntb=1
Reference groups
 Types of Reference groups
• Primary groups are generally small and include intimate
relationships
• Secondary groups are larger and more impersonal
• Aspirational group is a reference group that an individual
wishes to join
• Non-aspirational group is a reference group that an
individual wishes to detach him or herself from
 Word of mouth
• Is getting people to talk about
your brand, product, or
business
• Word of mouth marketing is a
tactic used to generate
natural discussions about
and recommendations for a
product or company.
• Example: Netflix encourages
word of mouth marketing by
providing a top-tier service to
their consumers
https://www.youtube.com/watch?v=jAJxdGOAnS4
END OF MODULE 1