CB PPT

Consumer Behaviour by Karen Webb

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

Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour by Karen Webb 1-1
Slides prepared by Sarah Fletcher and Morena Dobrowolski

INTRODUCTION

PPTs t/a Consumer Behaviour by Karen Webb
1

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


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?


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


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.


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


The consumption process


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


Evolution of marketing

• Production focus

• Selling focus

• Marketing focus

• Societal focus


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)


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


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.


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


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


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


The marketing mix - price

• 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 - 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)


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


Consumer behaviour and marketing
research
• 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

Quantitative research


Qualitative research


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


A model of consumer behaviour


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