Understanding consumer behavior as a foundation for your marketing craft

1 INTRODUCTION Welcome to the Fascinating World of Consumers

1
CONSUMER BEHAVIOR 2013-2015

Welcome to to
Welcome
the
the
Fascinating
Fascinating
World of of
World
Consumers
Consumers

© Open Mentis 2012
OpenMentis.com
MYCBBOOK.COM Human Pursuit ofOpen Mentis 2012 in the World of Goods
© Happiness MYCBBOOK.COM


The New Age of Consumer Empowerment

Arianna lives in Cincinnati, Ohio. Hear her
rave about her new pair of shoes!
These are no ordinary shoes. They are
uniquely mine. With some priceless
elements of my autobiography built into
them. They are my signal to the world
as to who I am. I wear them with spirit,
glee, and pride. I designed them, myself!

I had been dreaming of designing my own pair of shoes for some
time. So, on the afternoon of November 22, 2011, I sat down at
my laptop and launched Keds.com. The Keds design tab led me
step-by-step through the process of creating the shoe I wanted. I
had the option of choosing the basic style and then applying my
own design and paint to the upper, lower, left and right quarters,
tongue, sole, lining, laces, and even eyelets. I made these choices—
giving shape to my needs and my tastes.
Viola, I am now a co-creator !

© Open Mentis 2012
Welcome to the Consumer Age of Web 2.0
MYCBBOOK.COM Human Pursuit of Happiness in the World of Goods

1
CONSUMER BEHAVIOR 2013-2015 INTRODUCTION Welcome to the Fascinating World of Consumers

C h a p t e r O b j e c t i v e s

1. Define and 2. Five 3. Consumer
Dissect Visions of the needs and
Consumer Consumer wants
Behavior

4. Five 6. The
Resources purpose of
All Humans Have
business & of
5. Four marketing, and
the power and
Consumption limits of marketing
Values to influence CB

© Open Mentis 2012
Learn Apply Experience


We Are Consumers 24-7! Yes No

• We are always consuming something.
(like the clothes we are wearing)

• We are sometimes planning future consumption
• We are sometimes enjoying the memory of past
consumption.

Q. Is this person being a consumer at this moment?
Can you think of any moments when you are

© Open Mentis 2012
NOT being a Consumer?



Five VISIONS of CONSUMER

1. Consumer As Problem Solver
2. As Economic Creature
3. As a Computer
4. As a Shopper
5. As a Reveler

© Open Mentis 2012


WHAT IS CONSUMER BEHAVIOR?

Consumer Behavior is the Mental
and Physical Activities undertaken
to Acquire and Consume the
Products and Services so as to
fulfill Needs and Wants.

Physical Activity: Buying a product;
preparing a product for consumption, etc.
 Mental Activity: Evaluating a product in
your mind

© Open Mentis 2012


NEED and WANT

NEED: A Discomforting Human Condition
WANT: A Desire for a Specific Product so as to
Alleviate That Condition

Note that we do not limits needs
to basic survival, nor do we think
of wants as luxuries. Nor do we
confuse product with needs (as in
“I need coffee, therefore
coffee is my need!”).

© Open Mentis 2012
Read in the chapter about the merits of this
conception of needs and wants.



THREE ESSENTIALS of

CONSUMER BEHAVIOR
1. Exchange. An interchange
Five Resources:
between two parties where
 Money
each receives value  Time
2. Resources. Something that  Physical energy
others value  Knowledge & Skills
 Social capital
3. Value. Sum total of all benefits
USER
we receive from a product
U Utilitarian
S Social
E Ego-Identity
R Recreation/

© Open Mentis 2012
Hedonic



V. A. L. U. E.

What consumers seek in marketplace
exchanges
1. Utility
2. Social
3. Ego/identity
4. Recreation

Review pages 12-13 and discuss

© Open Mentis 2012
Which values does this kinetic dress offer consumers?
(Kinetic dress, Vilkas, from xslab.net)



Five Resources

 Money
 Time
 Physical energy
 Knowledge & Skills
 Social capital

Review these on p. 11 and then
Score yourself on each on a 10-point scale

© Open Mentis 2012


DOES MARKETING CREATE A NEED?

Would
Marketing
Create a
Need for
these
products?
In every consumer?

Review p. 14-15 and discuss:

© Open Mentis 2012
Consumers who might want these products--from
where do they learn/acquire these needs/wants?




1. What consumers really need (for survival) are just the basics
YES
(e.g., food, clothing, shelter). As to all other products,
consumers come to believe they need them because marketers
tell them so.
2. Marketers create new products. Until then, consumers
manage with whatever is available. By creating new products,
marketers created consumer needs for those products.
3. Marketers package products and create messages that lure
consumers. By themselves, many of the products would not
have attracted consumers.
4. Marketers flood the media with commercials and deals;
exposed to a barrage of commercial messages day-in and day-
out, it is natural for consumers to succumb

© Open Mentis 2012



1. To limit consumer needs to basic survival is to limit
NO
consumers to mere biological beings. As social and
psychological beings, their social and psychological needs
are just as important.
2. Products are not needs, so creating products cannot
equal creating needs. Products are solutions to needs,
which must already exist in consumers.
3. Many products fail despite heavy marketing. Thus, not
marketing but the product’s benefits (including social and
psychological benefits) cause consumers to want them.
4. Consumers don’t really trust marketers anyway. Rather,
their product choices are based on advice from
independent sources and influence from peers.

© Open Mentis 2012



1. To limit consumer needs to basic

NO
1. What consumers really need (for
YES
survival) are just the basics (e.g., food, survival is to limit consumers to mere
clothing, shelter). As to all other biological beings. As social and
products, consumers come to believe psychological beings, their social and
they need them because marketers tell psychological needs are just as
them so. important.

2. Marketers create new products. Until 2. Products are not needs, so creating
then, consumers manage with whatever products cannot equal creating needs.
is available. By creating new products, Products are solutions to needs, which
marketers created consumer needs for must already exist in consumers.
those products. 3. Many products fail despite heavy
3. Marketers package products and marketing. Thus, not marketing but the
create messages that lure consumers. By product’s benefits (including social and
themselves, many of the products would psychological benefits) cause
not have attracted consumers. consumers to want them.

4. Marketers flood the media with 4. Consumers don’t really trust
commercials and deals; exposed to a marketers anyway. Rather, their product
barrage of commercial messages day-in choices are based on advice from
and day-out, it is natural for consumers independent sources and influence
to succumb from peers.

© Open Mentis 2012
Now, decide which side you are on and why?




NO
1. To limit consumer needs to basic survival is to limit
YES
1. What consumers really need (for survival) are just the

consumers to mere biological beings. As social and
basics (e.g., food, clothing, shelter). As to all other
psychological beings, their social and psychological
products, consumers come to believe they need them
needs are just as important.
because marketers tell them so.
2. Products are not needs, so creating products cannot
2. Marketers create new products. Until then,
equal creating needs. Products are solutions to needs,
consumers manage with whatever is available. By
which must already exist in consumers.
creating new products, marketers created consumer
needs for those products. 3. Many products fail despite heavy marketing. Thus,
not marketing but the product’s benefits (including
3. Marketers package products and create messages
social and psychological benefits) cause consumers to
that lure consumers. By themselves, many of the
want them.
products would not have attracted consumers.
4. Consumers don’t really trust marketers anyway.
4. Marketers flood the media with commercials and
Rather, their product choices are based on advice from
deals; exposed to a barrage of commercial messages
independent sources and influence from peers.
day-in and day-out, it is natural for consumers to
succumb

Now, decide which side you are on and why?

The side you choose will impact your entire life as
a marketer, hugely. If you adopt the “Yes”
perspective, the kind of marketing you will create
and embrace will be materially different from the

© Open Mentis 2012
one created under the “No” perspective. Also
materially different will be your life satisfactions!



What is the purpose of business?

And of marketing?
Closely read this topic on p. 18
Now, do you still believe that it is:
• To Make Money
• To create consumer needs
• To mastermind the consumer mind

Or you believe, instead, that it is:
(Fill-in your answers below)
….......................................................
…………………………………………

© Open Mentis 2012


The Age of the Empowered Consumer

 The age of Co-creation & personalization
 The age of the authentic experience
 The age of collaborative consumption
 The Age of the Consumer in the driver’s
seat

Review this rich material on p. 20-22 and then discuss:
Which of these trends do you

© Open Mentis 2012
personally find useful in your
own firm?


The age of Co-creation, personalization

Z a z z l e Anything
On Zazzle.com, you can customize 49
products: clothing (T-shirts, hoodies, hats,
etc.), accessories (ties, necklaces, bags,
etc.), cards and postage, office products,
home products, art posters, and cases for
your iPhones, iPads, Blackberrys, and
Samsung Galaxy S. Prices are reasonable
(hats: $14.95; men’s ties: $29.95; greeting
cards: $2.95; iPad cases: $49.95 and up, etc.),
and the customized items are shipped
within 24 hours!

© Open Mentis 2012


The age of the consumer in the driver’s seat

Zaarly This U.S. company, launched in May 2011, is
eBay in reverse. Consumers post what they want, when,
Get it here, and how much they are willing to pay for it. Then other
consumers (as well as conventional sellers) offer to fulfill
get it now the consumers’ needs. The notable feature is the kinds
and varieties of needs that you can post: baby-sitting
services, a wedding singer, a chance to ride in a sports
car, interior design advice, and the like. You can post
your order on the Web and also on your mobile with an
app; no need to tell it where you are—the “hyper-local”
app already knows. Zaarly is a first, in that it is buyer-
driven, and delivers in the “here and now” (e.g., want
coffee delivered in an hour). The company boasts over
9.1 million posts in 200 U .S. cities (as of November 2011).
And now its name is also a verb: its Web site offers a
step-by-step guide, “How to Zaarly”!

© Open Mentis 2012


The age of empowerment

David vs. Goliath
On October 1, 2011, Molly Katchpole, a
22-year old Roger Williams University
student, posted a petition on Change.org
against Bank of America’s proposed $5-a-
month debit card fee. By the month’s end,
more than 300,000 people had signed the
petition. And more than 20,000 people had
pledged to close their Bank of America
checking accounts. On November 1, the Big
Bank aborted the plan!

© Open Mentis 2012


Tattoo as a metaphor

The Tattoo
is Already Inside the Consumer
To satisfy the consumer, you have to
bring that tattoo out.

Tattoo : Desire
The desire to wear a shoe like
this is already inside the
consumer

The PURPOSE of MARKETING is to help
the consumer experience the proverbial

© Open Mentis 2012
tattoo that is already within him/her.


The Art of
Romancing the Consumer

Maxwell House In July 2011, Maxwell House Canada opened its second
Optimism Café in Toronto (the first was in Montreal), giving away a free cup
of coffee throughout the month of July. As part of its Brew Some Good
campaign, it launched its Is Your Cup Half Full or Half Empty Optimism
campaign. It invited consumers to take an optimism break and post a video
clip or a letter on its Web site. Among the posted videos was this one :

A blind person sat on a sidewalk with a cardboard sign that
read “I’m blind. Please help.” Passersby occasionally dropped a
few small coins. Then a woman came by and wrote something
on the other side of the cardboard. For the rest of the day,
people came by and emptied their pockets of change. The
woman had changed the sign to read: “It is a beautiful day.
But I can’t see it!”

© Open Mentis 2012

1
CONSUMER BEHAVIOR 2013-2015 INTRODUCTION Welcome to the Fascinating World of Consumers
Review your understanding of CB
1. How does the book define Consumer NEEDS and WANTS
and how it differs from your everyday speech. Why
defining these in this way is helpful to marketers?
2. Do you believe marketing creates consumer needs?
Explain. Also articulate how your belief on this will impact
your work as a marketer?
3. How are today’s consumers more empowered?
4. What five resources all humans have and how they are
usable in exchange?
5. What four values consumers seek (USER). How does your
product respond to consumer search for these values?
6. What is the purpose of business? And of marketing?
What should it be?

© Open Mentis 2012
Learn Apply Experience


Source of Material:

CONSUMER BEHAVIOR
Human Pursuit of Happiness in the
World of Goods
(by Ban Mittal, Ph.D.)
ISBN: 978-0-979-1336-3-3
(Paperback: 978-0-979-1336-4-0)
Open Mentis Publishers
Ban Mittal, Ph. D.

I welcome and will highly value your comments.
PowerPoint by:

Ban@mycbbook.com

© Open Mentis 2012
Ban@myvaluespace.com

www.mycbbook.com www.openmentis.com

Understanding consumer behavior as a foundation for your marketing craft

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a Understanding consumer behavior as a foundation for your marketing craft

Semelhante a Understanding consumer behavior as a foundation for your marketing craft (20)

Último

Último (20)

Understanding consumer behavior as a foundation for your marketing craft