1. The Foundations of Consumer Behaviour
MCD 2064 Consumer Behaviour

2. CONSUMER BEHAVIOUR
Behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect to satisfy their needs

3. PERSONAL AND ORGANISATIONAL CONSUMERS
Personal consumer
his or her own use/for the household/another member of the household
gift for a friend
Organizational consumer
profit and non-profit organizations
public sector agencies
institutions

4. BUYERS AND USERS (CONSUMERS)
Purchaser – procures or obtains product/service
Payer – person who provides the money or object of value to obtain the product/service
Consumer – person that consumes or uses product/service

5. INTERDISCIPLINARY SCIENCES IN CONSUMER BEHAVIOUR
Psychology
Sociology
Social psychology
Cultural anthropology
Economics

6. A MODEL OF CONSUMER DECISION-MAKING
External Influences
Firm’s Marketing Efforts
Product
Promotion
Price
Channels of Distribution
Socio-cultural Environment
Family
Informal sources
Other noncommercial sources
Social class
Subculture and culture
Input
Process
Consumer Decision Making
Psychological Field
Motivation
Perception
Learning
Personality
Attitudes
Need Recognition
Prepurchase Search
Evaluation of Alternatives
Output
Experience
Post-decision behaviour
Purchase
Trial
Repeat Purchase
Post purchase Evaluation

7. WHY STUDY CONSUMER BEHAVIOUR?
Key information in marketing strategies
Market segmentation
Target market selection
Positioning
Product or service decisions
Pricing decisions
Distribution decisions
Promotion decisions

8. WHY STUDY CONSUMER BEHAVIOUR? (..cont’d)
Shorter product life cycles
Environmental concerns
Consumer protection and public policy concerns
Growth of services marketing
Not-for-profit/social marketing
Growth of global marketing

9. CONSUMER BEHAVIOUR SCOPE IN A NUTSHELL
How individuals make decisions to spend their resources
How individuals dispose of their once new purchases

10. SUCCESSFUL RELATIONSHIPS
CUSTOMER VALUE
CUSTOMER SATISFACTION
CUSTOMER RETENTION

11. SEGMENTATION,TARGETING AND POSITIONING
Segmentation - process of dividing the market into subsets of consumers with common needs and characteristics
Targeting – selecting one or more of the segments to pursue
Positioning- developing a distinct image for the product in mind of customer

12. THE FOUR Ps
PRICE
PRODUCT
MARKETING MIX
PLACE
PROMO

13. DEVELOPMENT OF THE MARKETING CONCEPT
PRODUCTION CONCEPT
PRODUCT CONCEPT
SELLING CONCEPT
MARKETING CONCEPT

14. THE PRODUCTION CONCEPT
Assumes consumers are interested primarily in product availability at low prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion

15. THE PRODUCT CONCEPT
Assumes the consumers will buy the product that offers them the highest quality, best performance and most features
Marketing objectives:
Quality improvement
Addition of features

16. THE SELLING CONCEPT
Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so
Lack of concern for customer needs and satisfaction
Marketing objectives:
- Sell, sell, sell!

17. THE MARKETING CONCEPT
Assumes that a company must determine the needs and wants of specific target markets and deliver the desired satisfaction better than the competition
Marketing objectives:
- Profits through customer satisfaction

18. SOCIETAL MARKETING CONCEPT
A revision of traditional marketing concepts
Suggests marketers to adhere to principles of social responsibility in the marketing of their goods and services
Must endeavour to satisfy needs and wants of their target markets
To enhance the well-being of consumers and society as a whole

19. SOCIETAL MARKETING CONCEPT (..cont’d)
All companies prosper when society prospers
Companies will be better off if social responsibility was an integral component of every marketing decision

20. McDonald’s

21. Viva La Glam - MAC

22. GAP