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Goals

Understand the brief history and definition of consumer

behaviours
Chapter 1 Identify influencing factors of consumer behaviours

OVERVIEW Understand the effect of consumer behaviours on

Marketing strategies

Content 1. History of Consumer Behaviours

Stage 1: The 1950s – Conception.
v Marketing began to shift its reliance away from economics
1. History of Consumer Behaviours
and towards other disciplines, notably the behavioural
2. Definition of Consumer Behaviours sciences (including sociology, anthropology, and clinical
3. Reasons to research Consumer Behaviours psychology).
4. Consumer Behaviours Research v Consumer behaviour emerged as a distinct sub-discipline
5. Consumer Behaviours and Marketing strategies of marketing.
v Consumer behaviour was heavily influenced by motivation
research, which focused entirely on the consumer,
attempting to explain why he or she did what they did.
Source: Wikipedia, ‘Consumer behaviour’ & ‘History of marketing thought’

1. History of Consumer Behaviours 1. History of Consumer Behaviours

Stage 2: The 1960s - the birth of Consumer Behaviour study Stage 3: the 1970s - development
v 1961- James Engel published an article praising motivation v1968 - Consumer Federation of American was established
research in a regional journal. v1974 - Journal of Consumer Research was first published
v 1964 - The Journal of Marketing published many studies vIn academic research, there emerged important contribution
about consumer behaviours as a scienctific area. from psychology for consumer behaviours.
v 1968 - the first textbook about Consumer Behaviours by
Engel, Kollat and Blackwell was published.
Source: Internet
v 1969 - The theory of Buyer Behavior by John Howard and
Jagdish Sheth was published.
Source: Imternet
Fullerton, R. A. (2013). The birth of consumer behavior: motivation research in the 1940s and 1950s.
Journal of Historical Research in Marketing, 5(2), 212–222. doi:10.1108/17557501311316833

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1. History of Consumer Behaviours 1. History of Consumer Behaviours

Stage 4: The 1980s - consumer research branched out. Stage 5: The present days
v Much of the work in consumer studies remained within the earlier v Technological changes have made customer journey include
tradition of the three R’s - rationality, rigor and relevance more interaction on digital platforms that complements
interaction in physical stores.
v Many other studies embraced three I’s - irrationality,
interpretation and intrinsic motivation v This shift allows us to collect more data at different stages of
the customer journey
v The new branch has two views:
v Research method:
• behavioral economics: understanding consumer financial
decision-making, including decision heuristics • Traditional: scale development, laboratory experiments,
quantitative analyses, etc.
• experiential view: focused on hedonic aspects of consumption
• Modern: Big Data, neuro-marketing techniques, etc.
Sourde: Malter, M. S., Holbrook, M. B., Kahn, B. E., Parker, J. R., & Lehmann, D. R. (2020). The past, present, Sourde: Malter, M. S., Holbrook, M. B., Kahn, B. E., Parker, J. R., & Lehmann, D. R. (2020). The past, present,
and future of consumer research. Marketing Letters. doi:10.1007/s11002-020-09526-8 and future of consumer research. Marketing Letters. doi:10.1007/s11002-020-09526-8

2. Definition of consumer behaviours 2. Definition of consumer behaviours

“The dynamic interaction of affect and cognition, behavior “Those acts of individuals directly involved in obtaining,
and environmental events by which human beings conduct using, and disposing of economic goods and services,
the exchange aspect of their lives” including the decision processes that precede and
American Marketing Association determine these acts”
Engel, Blackwell & Miniard

2. Definition of consumer behaviours 2. Definition of consumer behaviours

“The processes involved when individuals or groups select, In short, consumer behaviours:
purchase, use, or dispose of products, services, ideas, or are human thoughts and feelings during the buying and
experiences to satisfy needs and desires” consumption procress
Solomon et al include buying, using and disposing products/services
are dynamic and interactive

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2. Definition of consumer behaviours 3. Reasons to research Consumer Behaviours

Changes in marketing points of view
Old approach New approach
Ø Marketing was a function Ø Marketing is a philosophy
Ø Managing the current state Ø Managing the change
Ø Sellers’ power Ø Buyers’ power
Ø Customers accepted all orders Ø Selecting customers
Ø Vendors dominated Ø Customers dominate
Ø Customers had little information Ø Customers have a lot of
Ø Focus on direct customers information
Ø Focus on indirect, direct, current
and potential customers

3. Reasons to research Consumer Behaviours 3. Reasons to research Consumer Behaviours

Improving product competitiveness

Importance of stuying consumer behaviours • customers’ noticeable needs
Improving product competitiveness • niche markets
Launching new products
Designing influencing marketing strategies

Customers’ noticeable needs

People who don’t like tucking

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Nich markets Designing influencing marketing strategies

 Food-allergy segments  advertising on social media
 impressive and memorabe content

3. Reasons to research Consumer Behaviours 3. Reasons to research Consumer Behaviours

Customers aren’t satisfied with the product/service

68% of customers leave you because of your
47% switch brand 27% get frustrated staff’s negligence and bad attitude.
Source: https://smallbiztrends.com/
91% leave without
warning 40% recommend others
not to support

LOSS

Source: https://financesonline.com/customer-service-statistics/

4. Research Consumer Behaviours 4. Research Consumer Behaviours

4.1 Research content: 4.2 Research methods:

Customer reactions Survey
Influencing factors of consumer behaviours Interview
Enterprises’ Marketing methods Experiment
Observation
...

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4. Research Consumer Behaviours 4. Research Consumer Behaviours

Identify research
goals

Collect secondary
4.3 Research areas data

Before buying Design qualitative

research
Design quantitative
research
Information search, option evaluation Methodology
Questionnaire
Methodology
Sampling
Purchase decision Discussion guide
Collect
Data collection
secondary
After buying Collect secondary data data Collect primary data

Data analysis Data analysis

Report preparation Report preparation

Consumer Behaviour Research Process

(Source: Consumer Behavior, Leon G. Schiffman & Leslie Lazar Kanuk, 2007)

4. Research Consumer Behaviours 5. Consumer behaviours and marketing

strategies
MAIL TELEPHONE INTERVIEW ONLINE
Analysis
Cost low average high low Consumer behaviours; Competitors; Firms
Speed slow immediate slow fast
Reply ratio low trung bình high
Segmenting- Targeting - Positioning
Geographical accurate moderate difficult accurate
Recognize needs; Idenfify customer groups by needs; Select target
flexibility
markets; Position the product in consumers’ minds
Interviewer’s bias average not certain

reply quality limited limited accurate accurate

Marketing strategies
4P: Product, Price, Place, Promotion

5.1 Consumers’ impact on Marketing 5.2 Marketing’s impact on Consumers

strategies
 Popular culture—the music, movies, sports, books, celebrities, and
List all of the segmentation bases and their variables. other forms of entertainment that the mass market produces and
consumes—is both a product of and an inspiration for marketers.
Explain how consumer behaviours related to these
segmentation bases.

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5.2 Marketing’s impact on Consumers

What is your ideal beauty?

What is your definition of being cool?

5.2 Marketing’s impact on Consumers 5.2 Marketing’s impact on Consumers

Role theory: takes the view that much of consumer behavior  Types of relationships a person might have with a product:
resembles actions in a play. We as consumers seek the lines, • Self-concept attachment—The product helps to establish
props, and costumes necessary to put on a good performance. the user’s identity.
Marketing strategies today is that many organizations try • Nostalgic attachment—The product serves as a link with a
very hard to build relationships with customers. past self.
• Interdependence—The product is a part of the user’s daily
routine.
• Love—The product elicits emotional bonds of warmth,
passion, or other strong emotion.

THANK YOU