COnsumer Behaviour

1. Consumer Behaviour

2. 1-2
Consumer Behaviour
The behavior that consumers display in
searching for, purchasing, using, evaluating,
and disposing of products and services that
they expect will satisfy their needs.

3. 1-3
Development of the Marketing
Concept
Production
Concept
Selling Concept
Product Concept
Marketing
Concept

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The Production Concept
 Assumes that consumers are interested
primarily in product availability at
low prices
 Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion

5. 1-5
The Product Concept
 Assumes that consumers will buy the
product that offers them the highest
quality, the best performance, and the
most features
 Marketing objectives:
– Quality improvement
– Addition of features
 Tendency toward Marketing Myopia

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The Selling Concept
 Assumes that consumers are unlikely
to buy a product unless they are
aggressively persuaded to do so
 Marketing objectives:
– Sell, sell, sell
 Lack of concern for customer needs
and satisfaction

7. 1-7
The Marketing Concept
 Assumes that to be successful, a
company must determine the needs and
wants of specific target markets and
deliver the desired satisfactions better
than the competition
 Marketing objectives:
–Profits through customer satisfaction

8. 1-8
Business Leaders Who Understood
Consumer Behaviour
 Alfred Sloan, General Motors
 Colonel Sanders, KFC
 Ray Kroc, McDonald’s

9. 1-9
Implementing the Marketing
Concept
Consumer Research
Segmentation
Targeting
Positioning

10. 1-10
Segmentation, Targeting, and
Positioning
 Segmentation: Process of dividing the
market into subsets of consumers with
common needs or characteristics
 Targeting: Selecting one ore more of
the segments to pursue
 Positioning: Developing a distinct
image for the product in the mind of
the consumer

11. 1-11
Successful Positioning
Communicating the benefits of
the product, rather than its
features
Communicating a Unique Selling
Proposition for the product

12. 1-12
The Marketing Mix
Product
Price
Place
Promotion

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The Societal Marketing Concept
 All companies prosper when society
prospers.
 Companies, as well as individuals,
would be better off if social
responsibility was an integral
component of every marketing decision.
 Requires all marketers adhere to
principles of social responsibility.

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Why..consumer behaviour?
 Understanding consumer behaviour
will help you become better marketers
as it is the foundation for
 Segmenting markets
 Positioning products
 Developing an appropriate marketing
 continued

15. Copyright © 2006 Pearson Education Canada Inc. 1-15
Conti..
 Knowledge of consumer behaviour is
essential for non-profit organizations
– Non profits have different customers to
please
– Donors, users, volunteers, general public,
government
» continued

16. Copyright © 2006 Pearson Education Canada Inc. 1-16
Conti..
Better understanding of our own
consumption behaviour

17. Consumer Decision Making Model
1-17

18. Consumer Research

19. Consumer Research Paradigms
Quantitative
Research
Qualitative
Research

20. Quantitative Research
Descriptive in nature.
Enables marketers to “predict”
consumer behavior.
Research methods include
experiments, survey techniques,
and observation.
Findings are descriptive, empirical
and generalizable.

21. Positivism
A consumer behavior
research approach that
regards the consumer
behavior discipline as an
applied marketing science.
Its main focus is on
consumer decision making.

22. Qualitative Research
Consists of depth interviews, focus
groups, metaphor analysis, and
projective techniques.
Administered by highly trained
interviewer-analysts.
Findings tend to be subjective.
Findings not usually generalizable
Small sample sizes.

23. Interpretivism
A postmodernist approach to
the study of consumer
behavior that focuses on the
act of consuming rather than
on the act of buying.

24. The Consumer Research Process
The six major steps in the consumer research process
are:
– defining the objectives of the research
– collecting and evaluating secondary data
– designing a primary research study
– collecting primary data
– analyzing the data
– preparing a report on the findings

25. The Consumer Research Process
Develop Objectives
Collect Secondary Data
Design Qualitative Research
• Method
• Screener questionnaire
• Discussion guide
Prepare Report
Analyze Data
(Subjective)
Conduct Research
(Using highly trained
interviewers)
Exploratory
Study
Prepare report
Analyze Data
(Objective)
Collect Primary Data
(Usually by field staff)
Design Quantitative Research
• Method
• Sample design
• Data collection instrument

26. Developing Research Objectives
 Defining purposes and objectives helps
ensure an appropriate research design.
 A statement of objectives helps to define the
type and level of information needed.

27. Secondary
Data
Data that has been collected
for reasons other than the
specific research project at
hand.

28. Collecting Secondary Data
 Secondary information is any data originally
generated for some purpose other than the
present research objectives.
 Provides clues and direction for the design of
primary research.

29. Primary
Research
Original research undertaken
by individual researchers or
organizations to meet
specific objectives.
Collected information is
called Primary Data.

30. Designing Primary Research
Quantitative studies more likely for
collecting descriptive information.
Qualitative studies may be used to
get new ideas.

31. Quantitative Research Designs
Method
Sample Design
Data Collection
Instrument

32. Data Collection Methods
Observation
Experimentation
Surveys

33. Observational Research
 Helps marketers gain an in-depth understanding of
the relationship between people and products by
watching them buying and using products.
 Helps researchers gain a better understanding of
what the product symbolizes.
 Widely used by interpretivist researchers.

34. Experimentation
Can be used to test the relative
sales appeal of many types of
variables.
Only one variable is manipulated at
a time, keeping other elements
constant.
Can be conducted in laboratories or
in the field.

35. Surveys
Personal Interview
Mail
Telephone
Online

36. Data Collection Instruments
Questionnaires
Attitude
Scales
Personal
Interviews
Discussion
Guides

37. Validity
The degree to which a
measurement instrument
accurately reflects what it is
designed to measure.

38. Reliability
The degree to which a
measurement instrument is
consistent in what it
measures.

39. Questionnaires
 Used primarily for quantitative research.
 Can be sent in the mail, or administered by
interviewers in person or by telephone.
 Can be disguised or undisguised as to its
true purpose.
 Questions can be open-ended or closed-
ended.

40. Attitude Scales
 The three most frequently used scales are:
– Likert scales: easy for researchers to prepare and
interpret, and simple for consumers to answer.
– Semantic differential scales: relatively easy to
construct and administer.
– Rank-order scales: subjects rank items in order of
preference in terms of some criteria.

41. Example of a Likert Scale
Pleaseplace the numberthatbestindicateshow stronglyyouagreeor disagreewitheach of the
following statementsabout shoppingon-linein the space to the left of the statement.
1 = AgreeStrongly
2 = Agree
3 = NeitherAgreeor Disagree
4 = Disagree
5 = DisagreeStrongly
_____a. It is fun to shoponline.
_____b. Productsoftencostmoreon-line thantheyare worth.
_____c. It is a good way to find out about newproducts.
_____d. I’mafraidto give out my creditcard numberon-line.
_____e. I can shop wheneverI want--evenat 2 o’clockin the morning.
_____f. SomeWeb sitesreallyencourageyou to browse.
_____g. It’seasyto comparedifferentmakes and modelsone-line.

42. Rank-Order Scales
A. Pleaserankthefollowinge-mailprovidersintermsof easeof accessby placinga 1 infront
of theserviceyouthinkisbest, a 2 alongsidethesecondbest,andcontinuinguntilyou
haverankedallsixserviceproviders.
_____AmericaOnline _____AT&TWorldnet
_____Netscape _____Juno
_____MicrosoftExplorer _____Erols
B. Rankthefollowingcomputermanufacturersintermsof hotlinehelpby placinga 1 next
to theone whoprovidesthe besttelephonehelpa 2 nextto thesecondbest, untilyou
haverankedallsix.
_____IBM _____HewlettPackard
_____Dell _____Gateway
_____Compaq _____NEC

43. Qualitative Data Collection Methods
Depth Interviews
Projective
Techniques
Focus
Groups
Metaphor
Analysis

44. Depth Interviews
 A lengthy non structured interview between a
respondent and a highly trained interviewer.
 Interviewer minimizes his or her own
participation after establishing the general
subject matter.
 Can provide marketers with valuable ideas
about product design and provide insights for
positioning or repositioning the product.

45. Focus Group
A qualitative research
method in which about eight
to ten persons participate in
an unstructured group
interview about a product or
service concept.

46. Focus Groups
 Consists of 8 to 10 respondents who meet with a
moderator-analyst for a focused group discussion.
 Respondents encouraged to discuss their interests,
attitudes, reactions, motives, lifestyles, feelings
about the product or product category, usage
experience, etc.
 Respondents recruited on the basis of consumer
profiles, based on specifications defined by
marketing management.

47. Projective
Techniques
Research procedures
designed to identify
consumers’ subconscious
feelings and motivations.
These tests often require
consumers to interpret
ambiguous stimuli such as
incomplete sentences,
cartoons, or inkblots.

48. Projective Techniques
 Consist of a variety of disguised “tests” that
contain ambiguous stimuli.
 Sometimes administered as part of a focus
group, but usually used with depth
interviews.
 The theory is that respondents’ inner
feelings influence how they perceive
stimuli.

49. Metaphor Analysis
 Based on belief that metaphors are the most basic
method of thought and communication.
 Zaltman Metaphor Elicitation Technique (ZMET)
combines collage research and metaphor analysis
to bring to the surface the mental models and the
major themes or constructs that drive consumer
thinking and behavior.
 Consumer values also play an important role in
understanding consumer behavior.

50. Sampling Plan Decisions
Whom to survey?
How many?
How to
select them?

51. Analysis
 Qualitative Research: Moderator or
test administrator usually analyzes
responses.
 Quantitative Research: Researcher
supervises the analysis.
– Open-ended responses are coded and
quantified
– Responses are tabulated and analyzed

52. Conducting A Research Study
 Researchers often adapt the research
process to the special needs of the study.
 Together with the marketing manager,
the researcher specifies the parameters of
the population to be studied.
 A qualitative study might be undertaken
first to gather information about the
target population's attitudes and concerns
about certain items.
 Then a quantitative study may be
conducted to confirm and attach “hard”
numbers to the findings.

53. Thank - You….!
QUIZ?
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