11.10.

2023

CONSUMER BEHAVIOR
PROF.DR.AYŞEN AKYÜZ
PPT1

COURSE PLAN
• MID-TERM (MULTIPLE CHOICE EXAM)
• GROUP PROJECT PRESENTATIONS
• FINAL
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ASSIGNMENT (FINAL GRADE)

• 1. INDIVIDUAL ASSIGNMENT 20 POINTS
• 2. GROUP PROJECT 80 PTS - 2-5 PEOPLE

• NOV 29 COME IF YOU HAVE QUESTIONS REGARDING ASSISGNMENTS

• DEC 6 INDIVIDUAL ASSIGNMENTS
• DEC 13 INDIVIDUAL ASSIGNMENTS
• DEC 20 INDIVIDUAL ASSIGNMENTS
• DEC 27 GROUP PROJECT PRESENTATIONS
• JAN 3 GROUP PROJECT PRESENTATIONS
• JAN 10 GROUP PROJECT PRESENTATIONS

INDIVIDUAL ASSIGNMENT
• Find two printed ads of products in the same industry. For example,
you could choose two brands from the automobile industry such as
Mercedes Maybach and Toyota Corolla.
• Then answer these questions for each ad: 1. What is their main
message to the customer? 2. Which step of Moslow's hierarchy of
needs does this advertisement address?
• The assignment will be given to Ayşen Hoca as a printout at the end
of the presentation.
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FINAL PROJECT
• 1. Choose a product, restaurant, store, etc.
• 2. Ask following questions to 3 users of the product/restaurant/etc.
• Why do you consume this product?
• What attributes do you like most in the …….? ATTRIBUTES
• (30 pts)
• In what way it benefits you?
• Why is that benefit so important for you?
• How frequent you consume this product CONSEQUENCES
(or eat in this restaurant?, etc.)
(30 pts)

FINAL PROJECT (CONT’D)

• 3. You will use the listing method when using the information you
collect. Finally, for the Value section, you will write which social
values the person carries, in your opinion.
• Some of the social values: cooperation, freedom, happiness, honesty, love,
humility, peace, respect, responsibility, simplicity, tolerance, unity, self-
esteem, sophisticated,, etc. (20 pts)
• 4. Don’t forget to take the Picture of the person you interviewed.
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LADDERING TECHNIQUE

EXAMPLE
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IMPORTANT NOTES !!!

• * Student presentation orders will be determined by me.
• * You can change your presentation dates with each other. But you must let
me know in advance.
• * If you do not make your presentation on time: Individual assignment -5;
Group assignment: -10.
• * If you do not make the presentation at all and only submit the
assignment: Individual assignment: -10; Group assignment: -30
• * For group projects, at least two students from each group, should be in
class to present.
• * Groups should be formed by October 27.
• * Link will be sent via Serra.

What is Consumer Behaviour?

Consumer behaviour: the study of the processes involved when
individuals or groups select, purchase, use, or dispose of products,
services, ideas, or experiences to satisfy needs and desires.
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Consumers Behaviour is a Process

• Consumer behaviour is more than just a purchase.
• It involves the issues that influence the consumer before, during, and
after the purchase.

Consumers’ Impact on Marketing Strategy

• Understanding consumer behaviour is good business
• This is because the marketing concept is all about understanding
consumer needs
• Data about consumers help marketers define the market
• The purpose of understanding consumer behaviour is to predict the
future
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Segmenting Consumers (1 of 3)
Market Segmentation
Identifying groups of consumers who are similar to one another in one
or more ways and then devises marketing strategies that appeal to one
or more groups.
• Our diverse culture stresses a segmentation strategy be employed

Segmenting Consumers (2 of 3)
 Market Segmentation***
 Dividing a market into categories of customer types or “segments”
 Geographic-areas of a country or region where buyers are located
 Demographic-statistical information about age, income, sex, race, education,
etc.
 Psychographic- values, attitudes and lifestyles of a consumer or group of
consumers
 Bejavioral-dividing customers into segments depending on their behavior
patterns
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Segmenting Consumers Relationship

Marketing (1 of 2)
Relationship Marketing
Involves making an effort to interact with customers on a regular basis,
giving them reasons to maintain a bond with the company over time.
• One way to create relationships with customers is through database
marketing…..
Database Marketing
Database Marketing tracks specific consumers’ buying habits very
closely and crafts products and messages tailored precisely to people’s
wants and needs based on this information..

Segmenting Consumers Relationship

Marketing (2 of 2)
• relationships a person might have with a product include
• Self-concept attachment
• Nostalgic attachment
• Love
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The Meaning of Consumption

• People often buy products not for what they do, but for what they
mean
• Brands…
• …convey image/personality
• …help us to form bonds with others who share similar preferences

Virtual Consumers (1 of 2)
• Impact of the Web on consumer behaviour
• 24/7 shopping without leaving home
• Handheld devices & wireless communications
• Not just B2C, now C2C (consumer to consumer) sharing interests
around the world
• Culture of participation
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Individual Values and Codes

• Sources of Personal Codes of Ethics
• Childhood responses to adult behavior
• Influence of peers
• Experiences in adulthood

Different Views of Ethics

• The utilitarian view of ethics says that ethical decisions are
made solely on the basis of their outcomes .The goal is to
provide the greatest good for the greatest number of
people.

• In the rights view of ethics, individuals are concerned with

respecting and protecting individual liberties and privileges
such as the the right to privacy, and the right of free
speech. Under this view, making ethical decisions is simple
because the goal is to avoid interfering with the rights of
others who might be affected by the decision.

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• What Does One Do?

• What if you found a bank bag containing $125,000? Would you return it to the
bank?
• Is it fear of being caught?
• Not the right thing to do?

Business and Managerial Ethics

• Managerial Ethics
• The standards of behavior that guide individual managers in their
work
• Ethics affect a manager’s behavior toward:
• Employees
• The organization
• Other economic agents—customers, competitors, stockholders,
suppliers, dealers, and unions
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Approaches to Social Responsibility

• Obstructionist Stance
• A company does as little as possible and may attempt to deny or cover up violations
• Defensive Stance
• A company does everything required of it legally but no more
• Accommodative Stance
• A company meets its legal and ethical requirements and also goes further in certain
cases
• Proactive Stance
• A company actively seeks to contribute to the well-being of groups and individuals in
its social environment

Areas• Responsibility
of Social TowardResponsibility
the Environment
• Properly disposing of toxic waste
• Engaging in recycling
• Controlling air, water, and land pollution
• Green Marketing
• Greenwashing
• Responsibility Toward Customers
• Involves providing quality products and pricing products fairly
• Consumerism
• Social activism dedicated to protecting the rights of consumers in their
dealings with businesses
• Basic Consumer Bill of Rights
• To possess safe products
• To be informed about all relevant aspects of a product
• To choose what to buy
• To be educated about purchases
• To receive courteous service
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Areas of Social Responsibility (cont’d)

• Unfair Pricing
• Collusion: When two or more firms agree to collaborate on such wrongful acts as
price fixing
• Price gouging: Responding to increased demand with overly steep (and often
unwarranted) price increases
• Ethics in Advertising
• Truth in advertising
• Morally objectionable advertising
• Responsibility Toward Employees
• Legal and social commitments to:
• Not practice illegal discrimination
• Provide a physically and socially safe workplace
• Provide opportunities to balance work and life

• Joe Camel!!!
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Environmental Sustainability
• Environmentalism: An organized movement of concerned citizens
and government agencies to protect and improve people’s living
environment
• Environmental sustainability:
• A management approach that involves developing strategies
that both sustain the environment and produce profits for the
company.
• First wave in the 1960s - 1970s was driven by
environmental groups and concerned consumers.
• Second wave in the 1970s and 1980s was driven by
government and resulted in environmental laws.
• Third wave is occurring now. Firms are accepting more
responsibility and many have adopted a policy of
environmental sustainability.

Toyota Hybrid Prius: “How far will you go to save the

planet?”
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Action

To reduce its packaging waste, Coca-Cola is now testing new contour

bottles made from corn, bioplastics, or more easily recycled
aluminum.
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The Salesperson as
a Boundary Spanner
• Boundary spanner: operates both outside of and within an
organization’s boundaries
• Work within their company but also work with customers outside the
company
• Because salespeople are boundary spanners, they encounter ethical
dilemmas externally with customers and internally with other
employees

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Ethical issues
Sales people face many ethical issues including bribery, deception, the hard
sell and reciprocal buying.
Bribery – this is the act of giving payments, gifts or other inducements to
secure a sale. Such actions are thought to be unethical because they violate
the principles of fairness in commercial negotiations.
Tie in sales – Tie-in sales occur when purchasers are forced to buy an
unwanted item or items in return for being allowed to purchase a product in
heavy demand.
The hard sell – a criticism is that sometimes made of personal selling
behaviour is the use of high pressure (hard sell) tactics to secure a sale.
Reciprocal buying – reciprocal buying is when a customer agrees to buy
from a supplier only if that supplier agrees to purchase something from the
customer.
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Needs and Wants: Do Marketers Manipulate

Consumers? (1 of 2)
Do marketers give people what they want or, do they tell people what
they should want?
• Do Marketers Create Artificial Needs?
• Hedonistic pleasures – secular humanism?
• Not materistic enough?
• Are advertising and Marketing Necessary?
• Goods are arbitrarily linked to desirable social attributes

The Dark Side of Consumer Behaviour

Addictive and Compulsive Consumption
• Consumer addiction: psychological dependency on products or
services
• Drinking alcohol, smoking cigarettes, drugs
• Addiction to technology
• Compulsive Consumption
• Gambling in Canada is an example of compulsive consumption