DEFININGCONSUMER BEHAVIOR

Prof. SAVICA

WHY STUDYING CONSUMER BEHAVIOR?

psychological elements

internal motives

individuality

environment

invisible motives

Buying

DEFINITIONS OF CONSUMER BEHAVIOR

--- set of activities that

people undertake in the

selection, purchase, use and disposal of

products and services to meettheir needs and

wants

----is a science of internal and

external factors that

affect consumers in their decision making process

DEFINITIONS OF CONSUMER BEHAVIOR

--- focuses on how consumers make

decisions to spend resources

(time, money, effort) for

purchasing certain products and

services.

----is the process of research as

how, why, when, where, how often consumers buy and

consume.

ELEMENTS OF DEFINITION OF CONSUMER BEHAVIOR

Actions that people take when they buy, consume, dispose products and services!

BUYING = request information, evaluation of alternatives, how

consumers buy, when and how they pay?!

CONSUMPTION = how, when, where the products are consumed or used. Are they used at once, part by part, at home, in the office, instructions for use!DISPOSAL = environmental aspect, littering, recycling, decomposition, reuse, rent!

CONSUMER BEHAVIOR HAS THE ANSWERS FOR:

as a process

how

why

what

when

where

how much

DEFINITION OF CONSUMER BEHAVIOR

Feeling after the usage of products!

---is a process of satisfying consumer needs and

answering the questions: why they buy, what they

buy, when they buy, where they buy, how much and how often

they buy and how they feel after the

consumption of goods.

This is the key for providing of efficient marketing

strategy.

CONSUMER BEHAVIOR

Decision on:

Activity: Object: From: Period:

WhatWhyHow

WhereWhen

How muchHow oftenHow long

Buying

Consumption

Disposal

GoodsServicesActivities

ExperienceIdeas

People

Buyer

Consumer

End user

HoursDays

WeeksMonthsYears

Marketing strategies and tactics

CONSUMER BEHAVIOR COMES FROM THE MARKETING CONCEPT

Production concept

Product concept

Sales concept

Marketing concept

Social marketing concept

CONSUMER BEHAVIOR COMES FROM THE MARKETING CONCEPT

Production concept

consumers available products and low prices

companies high production, low costs, mass distribution

CONSUMER BEHAVIOR COMES FROM THE MARKETING CONCEPT

Product concept

consumers high-quality, better features of products

companies superior products, innovations

Marketing myopia= focusing more on a

product than consumer needs!

CONSUMER BEHAVIOR COMES FROM THE MARKETING CONCEPT

Sales concept

consumers lots of products available

companies aggressive sales, needs are not important

CONSUMER BEHAVIOR COMES FROM THE MARKETING CONCEPT

Marketing concept

consumers consumer needs and wants are important

companies targeting, consumer satisfaction, integrated marketing

Appearance of

consumer behavior

CONSUMER BEHAVIOR COMES FROM THE MARKETING CONCEPT

Social marketing concept

consumers consumer needs and wants are important

companies consumer satisfaction, environment protection, profit

CONSUMER BEHAVIOR AS A SCIENCE

Late 1950-es and the beginning of 1960-es

marketing + psychology + sociology

Association for Consumer Research, 1969

CONSUMER BEHAVIOR AS A SCIENCE

Reasons

The consumer is King!

The consumer can dismiss all the employees!

Consumer behavior educates and protects consumers!

Creates public policy!

Creates personal policy!

The consumer is not behaving rational!

CONSUMER BEHAVIOR AS A SCIENCE

Process

Starts before the act of buying

Lasts during the act of buying

Lasts when deciding where to buy

Lasts when deciding how much to buy

Lasts when deciding how will be paid

Ends after the process of buying

INTERDISCIPLINARY OF CONSUMER BEHAVIOR

Using the knowledge, concepts, results of other disciplines for understanding the internal and external factors that influence

consumer behavior

А. Psychology

• Mental processes• Motivation• Perceptions• Attitudes• Process of learning• Memory• Data processing

INTERDISCIPLINARY OF CONSUMER BEHAVIOR

Using the knowledge, concepts, results of other disciplines for understanding the internal and external factors that influence

consumer behavior

Б. Sociology

• Group behavior• Behavior in a group• Family• Social class• Reference group

INTERDISCIPLINARY OF CONSUMER BEHAVIOR

Using the knowledge, concepts, results of other disciplines for understanding the internal and external factors that influence

consumer behavior

В. Social Psychology

• sociology + psychology• person-group-person• Group over individual

INTERDISCIPLINARY OF CONSUMER BEHAVIOR

Using the knowledge, concepts, results of other disciplines for understanding the internal and external factors that influence

consumer behavior

Г. Social biology

• Genetics• Coded DNA molecule

INTERDISCIPLINARY OF CONSUMER BEHAVIOR

Using the knowledge, concepts, results of other disciplines for understanding the internal and external factors that influence

consumer behavior

Д. Cultural anthropology

• Behavior in society• Impact of culture• Beliefs• Values• Tradition• Folklore

INTERDISCIPLINARY OF CONSUMER BEHAVIOR

Using the knowledge, concepts, results of other disciplines for understanding the internal and external factors that influence

consumer behavior

Ѓ. Economics

• Marketing• Market Research• Advertising• Spending money• Needs satisfaction

WHO IS A CUSTOMER?

The consumer is the one who decides and chooses!

Individual / household legal entities

CONSUMER, BUYER, USER

consumer buyer

user

TYPES OF CUSTOMERS

children

adults

teenagers

According to age:

old customers

Little, tiny, colorful products

New, fashionable products / price and quality unimportant

Price, quality, availability

medical services, confidence

TYPES OF CUSTOMERS

men

women

According to sex:

• Technical goods• Quick decisions• Require help in deciding on

gifts

• Outnumber men• Quality and price have a

priority• Fashion, new products• Attention to discounts, gifts,

promotions• Hesitating a lot

TYPES OF CUSTOMERS

determined

silent

patient

According to character

qualified

undecided

nervous

talkative

unqualified

TYPES OF CUSTOMERS

choleric

melancholic

sanguine

According to temper

phlegmatic

active, optimistic, aggressive

moody, sociable, talkative

slow, sad, anxious, rigid

even-tempered, calm, reliable

TYPES OF CUSTOMERS

According to temper

TYPES OF CUSTOMERS

visual

audio-visual

audio

According to usage of senses

mixed

Examine products, design, style, color, ornaments

Look for information, advice

combination of the previous two

Using all the senses, touch, taste, smell….

TYPES OF CUSTOMERS

innovators

early majority

early entrants

According to readiness to try a new product

late majority

adventurers, new ideas

carefully adopt new products

careful, but accept new ideas

skeptical

ignorant

traditional

MINI TEST

Explain the following terms:

• Consumer behavior: --------------------• Disposal: ------------------------------------------• Main elements of definition for consumer behavior:-------• Product concept:------------------------------• Creating public policy means:------------------------------------• Social psychology:----------------• End user:---------------------------• Consumer:-------------------------------------------• Melancholic type:-----------------------------------• Sanguine type:----------------------------------------