Consumer Behaviour

CONSUMER behaviour
Buying, Having, and
Being

ELEVENTH EDITION

Michael R. Solomon

Consumer behaviour
 Consumer Behaviour
• This course begins with a look at the role of
consumers.

• How consumers influence the field of marketing.

• How marketers influence consumers.

Consumer behaviour
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 Consumer Behaviour
• Topic 1: Consumer behaviour Foundation
• Topic 2: Cultural Influences
• Topic 3: Consumer Perception and Social Well-Being
• Topic 4: Learning, Memory and The Self
• Topic 5: Attitudes & Persuasion
• Topic 6: Buying & Disposing (decision making)

Consumer behaviour
 chapter one
Introduction to
Consumer Behaviour
CONSUMER behaviour
Buying, Having, and
Being

ELEVENTH EDITION

Michael R. Solomon

Consumer behaviour 1-4

 Lecture Objectives
1. Identifying consumer behaviour as a process.

2. Understanding the needs and wants of different consumer

segments.

3. Explaining motivations to consume

4. Different disciplines in consumer research.

Consumer behaviour
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 Learning Objective 1:
What is consumer behaviour?
• In the early stages of development, researchers
referred to the field as buyer behaviour.

• Later marketers recognized that consumer behaviour

is an ongoing process, not only what happens at one
point in the transaction cycle.

• We call the transaction of value between two or more

an exchange. It’s an integral part of marketing but
consumer behaviour recognizes that the entire
consumption process is important for marketers.
Consumer behaviour
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 Learning Objective 1:
Consumer behaviour is a process

Consumer is the person who

and
has a need makes a
disposes
or desire, purchase,
the product

Consumer behaviour
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 Learning Objective 1:
What is consumer behaviour?
The study of the processes
involved with individuals or
groups identifying a need or a
desire to purchase and then
use or dispose products, or
services to satisfy their
needs.
Purchaser is a customer
Vs.
Consumer behaviour
User is a consumer
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 Learning Objective 1:
Scope of consumer behaviour
• Consumer behaviour answers the following
questions:
• ‘What’ consumers buy. (goods / services)
• ‘Why’ they buy it. (need and want)
• ‘When’ do they buy it. (time)
• ‘Where’ they buy it. (place)
• ‘How often they buy it. (time interval)
• ‘How often they use it. (frequency of use)

Consumer behaviour
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 Learning Objective 1:
Consumers’ impact on marketing
• Understanding consumer behaviour is good
business because understanding people is
important to be able to satisfy them.

• Knowledge and data about customers

• Help to define the market
• Identify threats/opportunities to a brand

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 Learning Objective 1:
Stages in the consumption process
• There are three key stages:

• Pre-purchase,
• Purchase
• Post-purchase.

• Marketers need to understand all three stages.

Consumer behaviour
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 Figure 1.1: Stages in the consumption process

/conclude

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 Learning Objective 2:
Understand the needs and wants of
different consumer segments.
• Marketers must understand the various
consumer segments they are targeting.
• Many dimensions are relevant for
understanding consumer needs and
wants.

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 Learning Objective 2:
Consumer segmentation
• Market segmentation is an important aspect of
consumer behaviour.
• Market segmentation is when a firm breaks up its
market (its customers) into smaller groups
(segments) that share similar characteristics. They
will then target different products at different
segments.
• Relationship marketing (lifelong relationships) and
database marketing (track one’s buying habits) made
marketers much more aware of the different
consumer groups.
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 Learning Objective 2:
Tapping into consumer lifestyles
• Relationship marketing: interact with customers
regularly giving them reasons to maintain a bond
with the company

• Database marketing: tracking specific consumers’

buying habits and crafting products and messages
tailored precisely to people’s wants. The collection
and analysis of extremely large datasets is called
Big Data. Generated from:
• Smartphone GPS signals/ Credit card
transactions
• Google searches/ Social media posts
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 Class discussion..
• State some examples of:

• Demographic segmentation

• Psychographics segmentation

• Product usage segmentation

Consumer behaviour
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 Learning Objective 2:
Consumer’s choices in relation to the
rest of their lives.
Popular Culture….Entertainment Industry
• Many people don’t realize the extent to which
marketers influence popular culture.
• music,
• movies,
• sports,
• books
• celebrities, or
• entertainment.
• These forms of popular culture; both influence
and are influenced by marketing.
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 Learning Objective 3:
Motivation

• Our motivations is the processes that lead

people to behave as they do and to consume
certain products and services.
• Consumer- Brand relationships: People often
buy products not for what they do (functional)
but for what they mean (hedonic).
• People may have various relationships with a
product/brands over time.
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 Learning Objective 3:
Consumer-brand relationships
Self-concept attachment
• Means that the product helps to create the user’s identity
"I am a Harley Rider"

Nostalgic attachment
• Means the product serves as a link to the consumer’s past.

Interdependence
• Means that the product is a part of the user’s daily routine.
"I have one cup everyday. It's part of my routine."

Love
• Means that the product brings out emotional bonds of or
other strong emotion.
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 Question
Do marketers create needs?
Objective of marketing: create awareness that
needs exist, not to create needs

Need: a basic versus Want: one way

biological that society has
motive taught us that
the need can be
satisfied

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 Question
Is marketing necessary?

• Products are designed to meet existing needs.

• Marketing triggers the wants and only helps to

communicate their existence.

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 Learning Objective 3:
Classifying consumer needs

• relates to our desire to be associated with

Need for specific people to feel accepted and be in
affiliation: company from others (social pressure).

• relates to our desire to have a mastery

Need for power: over our environment and surroundings.

Need for • relates to our desire to be distinctive.

uniqueness:

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Maslow’s Hierarchy of Needs
• Maslow’s Hierarchy of Needs is also useful in
understanding needs and how consumers seek
to fulfill those needs.
• The needs include:
• Physiological (lower level)
• Safety (lower level)
• Social (upper level)
• Esteem (upper level)
• Self-actualization (upper level)

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 Figure 1.2 Maslow’s Hierarchy of Needs

When the basics

lower order
needs are met, a
person can
fulfill higher
order needs.

In order to move
up the hierarchy,
a person must
have these basic
needs met

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 Learning Objective 3:
Technology
• The Internet changes who you may interact with,
the information you can find, the choices you
see as available and the time and energy you
spend dealing with various decisions.
• The Internet has created different channel of
distribution
• business to consumer (B2C): business or transactions
conducted directly between a company and consumers
who are the end-users.
• consumer to consumer (C2C): in the form of person-to-
person transactions taking place everyday
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Consumer behaviour
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