from multiple perspectives

from multiple perspectives
Consumer Behavior from multiple perspectives

Consumer vs. customer Which one is contained in the other?
Consumer or Customer? Multiple roles--

Taipei’s residents and …!
Who are the consumers of Taipei City government ? To whom they provide services? Taipei’s residents and …!

Multiple roles of a consumer
initiator Those who recognize a need for a product/service Influ- encer Those who may influence buying decisions by Words or actions. decider Those who make the final decision buyer Those who execuate the transaction user Those who consume the Product/Service.

What Is Consumer Behavior?
Activities people undertake when obtaining, consuming, and disposing of products and services These activities may be influences by many factors that can be classified into two groups—consumer influences and organizational influences.

Consumer Influences Organizational Influences Obtaining Consuming
Disposing Consumer Behavior

Organizational Influences
Consumer Influences Organizational Influences Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Feelings Motivations Past Experiences Peer Groups Knowledge Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability

Obtaining Consuming Disposing
How you decide you want to buy Other products you consider buying Where you buy How you pay for product How you transport product home How you use the product How you store the product in your home Who uses the product How much you consume How product compares with expectations How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle some products

ORGANIZATIONAL INFLUENCES
CONSUMER INFLUENCES Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Motivations Past Experiences Feelings Peer Groups Knowledge ORGANIZATIONAL INFLUENCES Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability OBTAINING How you decide you want to buy Other products you consider buying Where you buy How you pay for product How you transport product home CONSUMING How you use the product How you store the product in your home Who uses the product How much you consume How product compares with expectations DISPOSING How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle some products Consumer Behavior

ORGANIZATIONAL INFLUENCES
CONSUMER INFLUENCES Culture Ethnicity Personality Family Life-stage Values Income/Available Resources Attitudes /Opinions Motivations Past Experiences Feelings Peer Groups Knowledge ORGANIZATIONAL INFLUENCES Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability Consumer Behavior

Inner forces that influence consumers
內在力量 Inner forces that influence consumers 外在力量 Drinking for thirsty Perception: consumers undergo selection, organizing and interpretation of a stimuli. Learning：Consumers may be inflenced to form an attitudes, behavior or an enduring habit. Attitude：The formation of an attitude toward a particular object or symbol. Motives: An internal drive that urge a consumer to do something. How many legs did you see? Repetition of ads.enhances recall

Consumer Behavior How you get rid of remaining product
DISPOSING How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle some products OBTAINING How you decide you want to buy Other products you consider buying Where you buy How you pay for product How you transport product home CONSUMING How you use the product How you store the product in your home Who uses the product How much you consume How product compares with expectations Consumer Behavior

What Is Consumer Behavior?
Activities people undertake when obtaining, consuming, and disposing of products and services A field of study that focuses on consumer activities. Scope goes beyond just why and how people buy to include Consumption Analysis--Why and how people use products in addition to why and how they buy.

The Marketing Concept The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives Satisfaction with an exchange depends on satisfaction with consumption of product and the exchange of money

Why Study Consumer Behavior?
Consumer Behavior Determines the Success of Marketing Programs Consumer Behavior Determines the Economic Health of a Nation 3) Consumer Behavior Determines the Economic Health of Everyone

Consumer Behavior Determines the Success of Marketing Programs Marketing can be used to influence brand choice and purchase, while De-marketing can influence people to stop harmful consumption “The Customer is King” Organization influenced by consumer needs and wants

Consumer Behavior Determines the Success of Marketing Programs Organizations that are Customer-centric use a total marketing approach to focus their resources on satisfying customers Marketing Process of transforming or changing an organization to have what people will buy

Consumer Behavior Determines the Economic Health of Everyone Public policy leaders and social commentators study consumer behavior to alleviate over-consumption and under-consumption by educating consumers about problems and providing assistance.

Educating Consumers About Health
Understanding consumers’ issues or problems and developing methods to reach and educate consumers

Helps Formulate Public Policy
Government Protection and Education Understanding consumers’ needs to formulate public policy and predicting behavioral changes that follow Interest rates Economics Social Welfare Family Planning Warning labels Government Regulations Protection from Competitive Markets

Consumer Behavior Affects Personal Policy Personal policy includes how you behave towards others and in buying situations, your values and beliefs, and how you live your life A person’s economic quality of life is determined by personal policy

Evolution of Consumer Behavior
Supply Chain: all the organizations involved in taking a product from inception to final consumption - Manufacturers - Wholesalers - Retailers - Facilitating Organizations Consumers’ Increased Influence on Business

Consumers’ Increasing Influence
Evolution of Consumer Behavior Consumers’ Increasing Influence Wholesaler Manufacturer Retailer Consumer Manufacturing Orientation Selling Orientation Marketing Orientation Consumer Orientation U.S WWII Europe WWII

Manufacturing Orientation Selling Orientation Marketing Orientation - Motivation research - Positivism - Postmodernism

Manufacturing Orientation Selling Orientation Marketing Orientation Consumer Orientation

Consumer Orientation Beyond a marketing focus
How all organizations in a demand chain adapt to changing consumer lifestyles and behaviors bringing product design, logistics, manufacturing, and retailing together Role of consumers in shaping many aspects of life—society, government, social programs, health cares, and other areas

Consumer Research: Methods of Studying Consumer Behavior Quantitative vs. Qualitative

Types of scholarship I. Scientific scholarship
II. Humanistic scholarship III. A special of social sciences— communication, consumer behavior, etc.

Scientific scholarship
Epistemology (The origin of knowledge) Knowledge is based on Discovery. Purpose: to search for universal laws. Ontology (The nature of human beings) People are passive and responsive to environmental forces. Method of Inquiry – scientific Objective, public, empirical, replication, systematic and cumulative.

Humanistic Scholarship
Epistemology (The origin of knowledge) Knowledge is a transactional product of the knower and the known. Purpose: to construct meaningful interpretations. Ontology (The nature of human beings) People are active and goal-oriented. Method of Inquiry – interpretation Subjective interpretation, interaction, creation.

Economic Man theories A. Utility Theory (Bentham, Kotler)
Consumer always try to maximize benefit and minimize cost. B. Rising Income and expenditure allocation less income—higher % on necessities more income—lower % on necessities and higher % on luxury and saving

Economic Man theories Focal features—rational man, emphasizing buying power --When prices go down, sales go up. --When prices of substitutes go down, sales of original product go down. --Consumers’ real dollar go up, the sales go up. --Greater promotion leads to more sales. Weaknesses: --Not all consumers are rational, they don’t have complete MKT information to make sensible decisions.

Psychological Approaches
1. Psychodynamic Approach (Sigmund Freud ) Human behavior is determined by biological drives, rather than individual cognition, or environmental stimuli. Subliminal persuasion. 2. Behaviorism (Pavlov, Skinner) Stimulus—Response, Mind is a black box classical conditioning, operant conditioning

Cognitive Approaches Information processing
Stimulus-Organism-Response (S-O-R) --Theory of Buyer Behavior (Figure 1.4 ,Bray, p.12/33) --6 learning constructs --5 buyers’ response variables

Cognitive Approaches Consumer Decision Model*
(Engel-Blackwell-Miniard Model ) seven point decision process (Figure 1.5, Bray, p.16/33)

Ideology in consumer research:1980 and 1990 (Hirschman, E., 1993)
Masculine: Feminine Rationality emotionality Objectivity subjectivity Quantitative qualitative Hard soft Personal detachment personal involvement Universalistic particularistic Technology nature Public private Independent dependent

Findings of Hirschman (1993)
In both 1980 and 1990 consumer research 1) quantitative models were used 2)People are treated as machines 3)The economic man and utility maximization 4)Detached, objective methods 5)The capitalist point of view: controlling the consumer 6) Conflict and competition 7) Sex role stereotyping

Consumer Research Methods
Observation In-home observation: examining how and when consumers use and consume products in their households Shadowing: following and observing consumers in the shopping and consumption processes. Researchers may ask questions about reasons for behaviors Physiological methods: Techniques borrowed from medicine, psychology and other sciences including cameras to measure eye movement, galvanic skin response, and MRI

Interviews and Surveys Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires) Focus Groups: a group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest Longitudinal Studies: repeated measures of activities over time to determine changes in opinions, buying, and consumption behaviors

Experimentation Measuring cause-and-effect relation-ships by manipulating independent variables to determine the effects of changes on dependent variables - Laboratory experiment - Field experiment

Experimentation Attempts to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables - Laboratory experiment - Field experiment Independent variables might include number of advertisements and package design Dependent variables might include purchase intent or behavior

Consumption Research Builds on the three primary research methods to examine how people use products and services rather than how they buy them May use ethnographic tools to under-stand how values and culture influence usage of products and other behaviors May identify new uses for existing products or new product to satisfy unmet or changing consumer needs

The Underlying Principles of Consumer Behavior
The Consumer Is Sovereign The Consumer Is Global Consumers Are Different; Consumers Are Alike The Consumer Has Rights

Consumer Bill of Rights

Challenges for the Future
Gathering and interpreting information that organizations need to meet changing needs of consumers Developing effective consumer research methods to capture changes in trends and lifestyles Understanding consumer behavior from a broader perspective as an important part of life

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