INTRODUCTION TO

CONSUMER BEHAVIOUR
INTRODUCTION
 LEARNING OBJECTIVES
• Understanding the meaning of consumer behaviour in marketing
context
• Discussing about the application of consumer behaviour
• Describe the consumer behaviour process
 What is it????
• The behavior that consumers display in searching for,
purchasing, using, evaluating, and disposing of
products and service that they expect will satisfy their
needs
 Then.
• The field of consumer behavior is the study of
individuals, groups, or organizations and the processes
they use to select, secure, use, and dispose of products,
services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and
society.
 In short
We study about the consumer choice of things
Different people, group, organization will have different choices and the
result is to satisfy the needs
Broader than just how the consumers are purchasing the product
Consumers vs customers
Different consumer = different behavior
 The connection between consumer
behavior and marketing
• Most of the marketing strategies and tactics are based on explicit or
implicit beliefs about consumer behavior
• Support the decision making by understanding how consumer decides.
• Enhancing the marketing effort by applying ethical tactics based on
the information collecting
 Social marketing
Social marketing is the application of marketing strategies and tactics to alter or
create behaviors that have positive effect on the targeted individuals or society as a
whole
Market Analysis
The The conditions
The consumers The company competitors
Complex Understanding Understanding PEST
process its own ability the globalization
to meet competitors’
customer capabilities
needs and strategies
Financial,
management,
production
capabilities,
etc
Market segmentation
 Market segmentation involves four steps
Identifying product-related need set

• Capabilities such as reputation, existing product, technology

• Need sets are often associated with other variables

Customers with similar need sets

• Group them up

Description of each group

Attractive segment(s) to serve

• Target market
• Finding the profitable segments
Marketing strategy

Consumer behavior
Personal
characteristics
Product
characteristics
Consumption
situation
Consumer behavior and marketing
• We know the 4P, then have a look at 4C
• Consumer needs, cost, convenience, communication
The outcomes

The
outcomes

Firm Individual Society

outcomes outcomes outcomes
 Firm outcomes
• An image of the product or brand in the consumer’s
Product position mind relative to competing products and brands
• Beliefs, pictorial representations and feelings

• Sales revenues and profits

Sales and profit

Customer • Retention and attraction through product satisfaction

satisfaction
 Individual outcomes
• Need satisfaction: obvious outcome of the consumption process for
an individual and it can range from no satisfaction to fully satisfaction
• Injurious consumption: occurs when individuals or groups make
consumption decisions that have negative consequences for their long
run well being
 Society outcomes
Economic outcomes Physical environment outcomes Social welfare

The cumulative impact of Consumers make decisions that have Spending for private good (personal
consumers; purchase decisions, and a major impact on the physical purchase) rather than public goods
it will decide whether to buy or save environments of both their own and (support for public education)
affect other societies

Ie: reduce pollution by consuming

ethanol or electric
 Market research and product research

Market research Product research

• Size of current and potential • Product level
markets • Consumer acceptance/ rejection
• Assessing the purchase trends
• Strengths and weaknesses of the
competitors
• Sales forecasting