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12/10/2023

Consumer behaviour

Dr. Do Khac Xuan Diem


Email: diem.dkx@ou.edu.vn

Learning outcomes
Explain consumer behaviour and its importance to marketers.

Analyse factors that influence consumer behaviour: internal influences,


social and cultural settings.

Describe the process of individual buying decision making.

Apply different approaches to study consumers and develop tailored


marketing strategies.

Work and communicate effectively as an individual or in teams.

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Learning schedule
Week Teaching and Learning Activity Student Tasks
1 Chapter 1 – The foundations of consumer behaviour Quiz/Discussion/Assignment

2 Chapter 2 – Internal influences on consumer behaviour:


Quiz/Discussion/Assignment
3 Perception, Learning and Motivation.
4 Chapter 3 – Internal influences on consumer behaviour: The self,
Quiz/Discussion/Assignment
5 Personality, Lifestyles and Values.
6 Quiz/Discussion/Assignment
Chapter 4 – Consumers’ decisions and choices.
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8 Chapter 5 – Groups and social influence Quiz/Discussion/Assignment
Chapter 6 – Income and social class
9 Chapter 7 – The culture of consumption Quiz/Discussion/Assignment
Chapter 8 – Organisational buyers (Self-study)
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Assessment overview

Tasks Individual/Group Weighting Notes


Attendance Individual 5% 1 mark/1 session
(absence> 3 sessions: 0)

Multiple choice questions (LMS) Individual 10% Every chapter


(10 questions/15 minutes)

Discussion (LMS) Individual 10% Depend


Assignment/Case study Group 25% Every chapter

Final test Group 50%


Assignment of consumer behaviour study

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Textbooks
Textbook
Solomon, M. R. (2017). Consumer behavior: Buying, having, and
being (Vol. 12). Boston, MA: Pearson.
References
Solomon, Michael R, Rebekah Russell-Bennett and Josephine
Previte. (2019) Consumer Behaviour : Buying, Having, and
Being. Pearson Australia, Fourth edition.

Chapter 1
The foundations of Consumer
behaviour.

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Learning objectives

• Objective 1: Understand why studying the consumer is important for marketers.


• Objective 2: Describe how demographic and psychographic variables can be applied
to segment consumer markets.
• Objective 3: Explain how the internet and social media are changing consumers.
• Objective 4: Discuss the different approaches used by researchers to study
consumers.
• Objective 5: Define and explain business ethics and identify some of the issues that
arise from unethical business and consumer deviant behaviours.

Learning objective 1:

Understand why studying the


consumers is important for
marketers.

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What is 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.

Select Purchase Use Dispose

Stages in the consumption process

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For reflection

1. How do you decide that you need a product?


2. What about a purchase makes it pleasant or stressful for you?
3. When using the product, what determines if the experience is
pleasant?

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Consumers’ impact on marketing strategy

To satisfy
customers’ needs

To understand Consumers
customers are different

Market
segmentation

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Learning objective 2:

Describe how demographic and psychographic


variables can be applied to segment consumer
markets.

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Demographic variables for market segmentation

• Age
• Gender
• Family structure
• Social class and income
• Ethnicity
• Geography
• Lifestyles

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Relationship marketing

Relationship marketing
A strategic perspective that stresses the long-term
human side of buyer-seller interactions.
Database marketing
Tracking consumers’ buying habits very closely and then
crafting products and messages tailored precisely to
people’s wants and needs.
Big data
The collection and analysis of extremely large datasets
to identify patterns of behaviour in a group of
consumers.

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Popular culture

• Music
Marketers influence preferences for
• Movies movie and music heroes, fashions,
• Sports food, and decorating choices.
• Books
• Celebrities
• Entertainment

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Consumer-brand relationship

• Role Theory
The perspective that much of consumer behaviour resembles actions in a play.
• Consumer-brand relationship
 Self-concept attachment
 Nostalgic attachment
 Interdependence
 Love

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For reflection

What kind of relationship do you have with your mobile phone?


Do these feelings correspond to the types of relationships consumers
may develop with products?
How do these relationships affect your behavior?

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Motivation
Our motivations to consume are complex and varied. People often buy
products not for what they do but for what they mean.
• Consuming as experience
• Consuming as integration
• Consuming as classification
• Consuming as play

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Motivation
Need vs Want

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For reflection

Describe a need and a want you have and explain the motivation for
the want.

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Learning objective 3:

Explain how the internet and social media are


changing consumers.

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Discussion
Explain how the internet and social
media are changing consumers.
Give examples of a brand/company
to have marketing strategies to
adapt with the changing of
consumers.

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Learning objective 4:

Discuss the different approaches used by researchers to


study consumers.

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Disciplines in consumer research

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Positivist versus Interpretivist approaches

Paradigm
A widely accepted view or model of phenomena being studied.
Positivism
A research perspective that relies on principles of the scientific
method and assumes that a single reality exists.
Interpretivism
As opposed to the dominant positivist perspective on consumer
behaviour, interpretivism instead stresses the importance of symbolic,
subjective experience and the idea that meaning is in the mind of the
person rather than existing ‘out there’ in the objective world.

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Positivist versus Interpretivist approaches

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Learning objective 5:

Define and explain business ethics and identify some of the


issues that arise from unethical business and consumer deviant
behaviours.

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Business ethics

• Business ethics are rules of conduct that guide actions in the marketplace
• There are cultural differences in what is considered ethical.

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Do marketers create artificial needs?

Objective of marketing: create awareness that


needs exist, not to create needs

versus • Want: one way that


• Need: a basic
society has taught
biological motive
us that the need
can be satisfied

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Are advertising and


marketing necessary?

Does advertising foster


materialism?
• Products are designed to
meet existing needs
• Advertising only helps to
communicate their
availability

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Courses of action

If you are not happy with a product or service, what can you do about
it?
1. Voice response
2. Private response
3. Third-party response

Should organisations encourage customers to complain? Justify your responses.

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Market regulation and consumerism

Market Regulation
• Corrective advertising
Consumerism
• Culture jamming

Myth. Make you fat


Myth. Rots your teeth
Myth. Packed with caffeine

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Market regulation and consumerism

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Social marketing and Corporate social responsibility (CSR)

• Social Marketing encourages positive


behavior and discourages negative
activities.
• CSR is the process of encourage
organizations to make a positive impact
on stakeholders.
• Cause marketing is a strategy that
aligns businesses with a cause to
generate business and societal benefits.

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For reflection

• Do you purchase a certain product because of their cause? Why?


• Do you think organizations support a cause for profits or because they
want to be active in their community?

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Data privacy and identity theft

• Identity theft occurs when someone steals your personal information


and uses it without your permission.
• Real-time bidding
An electronic trading system that sells ad space on the webpages
people click on at the moment they visit them.
• Phishing
Scams in which people receive fraudulent emails that ask them to
supply account information.

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Data privacy and identity theft

• Botnets
A set of computers that are penetrated by malicious software
known as malware that allows an external agent to control their
actions and hijack millions of computers without any trace.
• Locational privacy
The extent to which a person’s activities and movements in the
physical world are tracked by his or her devices.

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Market access

• Disabilities
• Food deserts
• Media literacy
• Functionally illiterate

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Sustainability and environmental stewardship

Financial

Triple bottom-line
orientation

Social Environmental
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Sustainability and
environmental stewardship
• Sustainability
Consuming products in a way that doesn’t
jeopardise the needs of future generations.
• Conscientious consumerism
A new value that combines a focus on personal
health with a concern for global health.

“We consume, but at what price? Let’s become human again. Please
donate.” Ad for a Belgian NGO (non-governmental organization)
condemning food industry practices such as the feeding of Thai
prawns with poison.
Source: Christophe Gilbert/Marine Vincent & Pierre Jadot

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Green marketing and


green washing

Green marketing
A marketing strategy that involves the
development and promotion of
environmentally friendly products and
emphasis on protecting the natural
environment.
Greenwashing
Occurs when companies make false or
exaggerated claims about how
environmentally friendly their products are.
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Deviant consumer behaviour

Deviant consumer behaviour


Actions that violate the accepted behaviour in a consumer context
and result in harm for other customers or the organization.

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Consumer terrorism

Bioterrorism
A strategy to disrupt the nation’s food supply with the aim of creating
economic havoc.
Cyberterrorism
The politically or ideologically motivated use of computers and
other information technology networks and infrastructure in acts of
large-scale intimidation, disruption, property damage or physical harm.

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Addictive consumption

• Consumer addiction
• Social media addiction
• Cyberbullying
• Phantom Vibration Syndrome
• Compulsive consumption

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Dark side of consumer behaviour

Consumed consumers
Illegal acquisition and product use
Consumer theft and fraud
• Shrinkage
• Serial wardrobers
• Counterfeiting
Anticonsumption

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For reflection

Do you know someone who is addicted to social media? In what way?


If you work in retail, have you experienced consumers habitually
returning items?

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Applications

• Discussion
Do marketers have the ability to
control our desires or the power
to create needs? Is this situation
changing as the internet creates
new ways to interact with
companies? If so, how?
• Case study (page 53)
• Honda’s Asimo

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References

Solomon, M. R. (2017). Consumer behavior: Buying, having, and being (Vol. 12).

Boston, MA: Pearson.

Solomon, Michael R, Rebekah Russell-Bennett and Josephine Previte. (2019)

Consumer Behaviour : Buying, Having, and Being. Pearson Australia, Fourth

edition.

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