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Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski

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Consumer Behaviour by Karen Webb

This is the textbook for your course. This textbook can be purchased from your campus bookshop.ISBN 0074713434


INTRODUCTION 1


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Introduction to consumer behaviour

At the end of this session, you should understand:• The various approaches to studying buyer behaviour• The role of marketing organisations• The nature of buyer and consumer behaviour• The differences between organisational and consumer

buying• The impact of technology on buying behaviour and

consumption in Australia• The factors influencing buying behaviour


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You the consumer! • Discuss with a partner:

– One product or service that you bought recently? – Why did you buy it?– What particular personal factor/s influenced your

purchase decision?– Did any marketing messages or activities influence

your decision?– Do you think that the purchase may have been different

for someone else? If so, how?


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Consumer behaviour & organisational buying behaviour

• Consumer behaviour of the individual– Consumer behaviour is the behaviour of individuals

in their quest to satisfy needs– Products and services are acquired to satisfy these

personal consumption needs• Organisational behaviour of the business or

organisation – Organisational behaviour is determined by both the

needs of the organisation and the needs of the individual or group responsible for buying

– Needs to be satisfied relate to the purchasing of products and services for resale, use in production, or other business purposes


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Marketing and buying behaviour• Do marketers create needs or respond to them?

– Marketers suggest that they recognise needs and appeal to them

– They may present a stimulus that allows the consumer to recognise the need

See EXHIBIT 1.1 Sydney Water ran this advertisement to encourage behavioural change, page 9.

PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.


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Marketing and buying behaviour

• Buying behaviour includes:– the recognition of a problem (need to be met)– search for information– consideration of alternatives– purchase, consumption, disposal – ongoing evaluation of all thoughts and activities

throughout this process• Marketers must be aware of the buying process and

consumer influences to be effective in understanding, appealing to, and meeting consumer needs

• Marketers also aim to create value in the mind of the consumer by understanding what the consumer values


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The consumption process


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Approaches to understanding buying behaviour

• Behaviourism– Emphasises experimentation involving observable,

measurable responses to stimuli– Marketing strategies try to influence the way consumers

feel about product/service to encourage positive responses

• Cognitive theory– Emphasis is on the role of information processing,

thinking and reasoning– Marketers apply this primarily to brand recognition

and attitude formation


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Evolution of marketing

• Production focus

• Selling focus

• Marketing focus

• Societal focus


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The marketing concept

• ‘An organisation aims alls its efforts in a coordinated and integrated manner, simultaneously satisfying its customers and achieving it own corporate goals’

(Quester et al. 2001)


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Market segmentation

• Market segments - consumers grouped according to their similar needs and characteristics

• Target market - preferred segment based on ability to meet the needs of this group and achieve organisational goals

• Different strategies and different combinations of mix elements (product, price, place, promotion) are often developed for the various target markets


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Market segmentation

See EXHIBIT 1.3 Lexus’s ‘luxury sports vehicle’ and EXHIBIT 1.4 Volvo is well known for safety, page 11.

PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.


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Positioning

• How consumers perceive your product in relation to others in the market

• Achieved through understanding the consumer and applying relevant strategies to the marketing mix elements


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The marketing mix - product, price, place, promotion • A group of four critical elements and decision

areas that reflect the market’s perception of the organisation’s product or service

• The elements combine to present the organisation’s efforts to the market - it’s efforts to satisfy the needs of the target market


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The marketing mix - product

• The product mix– Combinations of tangible (can be seen or touched)

and intangible (cannot be seen or touched, i.e. branding) characteristics of the organisation’s offering to the consumer

– Includes services which are mostly intangible

– Branding, image, packaging, storage or containment, labeling, sizes, assortments, variety, range, usage situations and quality are some of the product mix decision areas


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• Price– Is determined by product value in the marketplace,

demand, input costs, competitors, and other strategies, such as introducing a new product, discounting or distributor allowances

– Is set in order to achieve organisational objectives,such as market share or profit

The marketing mix - price


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The marketing mix - distribution

• Distribution (Place)– The complex process that allows the consumer to gain

access to the offering

– May include type and appearance of retail outlet, use of agents, transport, logistics, intermediaries and decisions about intensity of distribution (exclusive, selective, intensive)


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The marketing mix - promotion• Marketing communication

– The careful planning and strategic placement of marketing messages

– Goals for communication include informing, reminding, persuading the target consumer about the organisation’s offering

– Integrated marketing communications can include advertising, public relations, personal selling, direct marketing and sponsorship

– Promotions may be created using combinations of visuals, sound or other experiences, such as product trial

– Promotions must be developed with an understanding of the consumer and the integrated mix effort


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• Research is an important tool in determining consumer behaviour and the factors influencing behaviour

• Well known research agencies include:– Roy Morgan Research www.roymorgan.com.au– AC Nielsen www.acnielsen.com.au– Colmar Brunton www.cbr.com.au

• Other sources include:– The Australian Bureau of Statistics www.abs.gov.au– News poll www.newspoll.com.au/company_profile_7a.html

• The Market Research Society of Australia (MRSA) monitors the marketing research industry and its interests

Consumer behaviour and marketing research

http://www.roymorgan.com.au/

http://www.acnielsen.com.au/

http://www.cbr.com.au/

http://www.abs.gov.au/

http://www.newspoll.com.au/company_profile_7a.html


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Quantitative research


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Qualitative research


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Technology and buyer behaviour• Reliance on technology • 24-hour shopping• Online buying• Entertainment• Obsolescence• Changing mediums for promotion, distribution• Changing the way we live and consume• Marketers use database marketing, relationship

opportunities, monitoring of consumption patterns, needs and wants, research, store layout and product offerings, and maintain an awareness of new technology and its impact


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A model of consumer behaviour

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