Consumer Behavior IIB 3430 Dr. Kevin Wongleedee

Agenda Introductions Syllabus highlights Course overview Assignment

Syllabus Highlights Course Objective: Class materials: To develop a deeper understanding of and appreciation for consumers To learn how to better serve your customers and develop strong relationships Class materials: Consumer Behavior: Building Marketing Strategy, 9th edition (Hawkins, Best, and Coney)

Syllabus Highlights Requirements: Individual Components Percent Participation 10 Two exams @ 100 points each 40 Team Components Phase 1: Assignments 20 Phase 2: Presentation 20 Phase 3: Implementation Report 10 100

Keys to Success Come to class prepared Treat others professionally Keep up on readings Stay on top of deadlines Treat others professionally Show pride in your work Be respectful

Considered appropriate: Be considerate of others Get involved and participate Strive to be a good teammate Manage your time wisely

Please refrain from: Coming in late Leaving class early Sidebar conversations Cellular phone interruptions Eating food in the classroom

Honor Code What is academic misconduct? How will it be dealt with? Any activity that compromises the academic integrity of the institution or subverts the educational process. How will it be dealt with? You will be dismissed from the class. The University Committee on Academic Misconduct will be notified.

Course Overview What is consumer behavior? Why study it? How does this relate to marketing? Some “essential tools”

What is Consumer Behavior? “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 impact that these processes have on the consumer and society” -- Hawkins, Best, and Coney 2004 “The study of the cognitive, emotional, and physical activities associated with the perception, evaluation, choice, acquisition, use, and disposition of goods and services.”

Why Study Consumer Behavior? The Marketing Concept: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create more satisfying exchanges than the competition. Corollary: Success in the marketplace requires: knowing, then attracting, satisfying, and retaining customers.

Why Study Consumer Behavior? No brand/product can appeal to all people. Firms must segment the market into groups with relatively homogeneous preferences and target one or more groups. Firms must position their offerings in the hearts and minds of these individuals in a favorable way. Firms must examine all of the touch points that shape how a consumer will respond to their offering.

Why Study Consumer Behavior? Our guesses about people are inaccurate. This is because human nature leads us to believe that other people think like us false consensus People tend to perceive differences even when they don’t exist stereotyping

Why Study Consumer Behavior? Therefore, we must strive to… Identify customer needs and wants Engage in research Understand how customers will respond to different messages and environments Learn about and apply theories Anticipate where preferences are headed Staying informed

Essential Tools: Consumer Decision Making Demographics / Trends Information Processing Social Influence

Consumer Decision Making Consumer-side Marketer-side Need Recognition Search Alternative Evaluation Choice Post-Purchase Evaluation Awareness Interest Desire Action

Essential Tools: Consumer Decision Making Demographics / Trends Information Processing Social Influence

Demographic Trends: Aging population Cultural Diversity & Globalization                                                                   

Lifestyle & Segment Trends: Staying connected Cellular phones Instant messaging Health & Fitness Atkins Water

Essential Tools: Consumer Decision Making Demographics / Trends Information Processing Social Influence

Consumer Information Processing Stimuli Exposure Attention Comprehension Acceptance Retention Purchase

Essential Tools: Consumer Decision Making Demographics / Trends Information Processing Social Influence

Social Influence Creating “Buzz” through word of mouth Cultural and generational influence Family & Group Influence

Assignment Carefully read the syllabus Study Chapter 1 of the textbook There will be a quiz on it next time Study Chapter 1 of the textbook Begin applying the strategic framework discussed to the team project we will be working on What do we know about the 5 Cs, Segmentation, Targeting, and Positioning?