MKT20025 Consumer Behaviour 代写

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MKT20025

Consumer Behaviour

Summer Semester, 2016

Lecture 1

Introduction to CB

Consumer Decision Making

Process

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Course Lecturers:

Daniel Rayne

Lecturer

drayne@swin.edu.au

Dushan Jayawickrama

Convenor & Lecturer

djayawickramawithan@swin.edu.au

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Dan’s Background - education

BA in Business, LaTrobe University

Masters in International Business, Swinburne

Reading for PhD Business, Swinburne

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Daniel’s Background - Career

Tutor/Lecturer:

> Swinburne University

> RMIT

Subjects:

> Consumer Behaviour

> International Business

> Fundamentals of

Marketing

> Marketing Strategy &

Planning

Business Strategist:

> Elite (BP)

Marketing and Research:

> Orica

> Reliance (BP)

> Brazil English school

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Dushan’s Background

B.Sc. Marketing Management (Sri Lanka)

M.Sc. Management (Sri Lanka)

CTHE (Sri Lanka), SEDA (UK)

Reading for PhD Marketing, Swinburne

Teaching experience in the areas of marketing and consumer behaviour

5 years in Australia

9 years overseas

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Objectives

1. Describe and apply insights of consumers using the

theoretical principles of human behaviour.

2. Analyse the relationship between psychological and

social drivers behind consumer behaviour and marketing.

3. Classify and evaluate theories of the consumer decision-

making processes.

4. Apply consumer behaviour principles in a variety of

contexts, and in an ethical manner.

5. Communicate their thinking regarding these principles in

a style appropriate for a business environment

individually and in teams.

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Assessment

 Assignment 1 (Individual) 20%

 Assignment 2 (Group- 3 students) 30%

 Final Exam 50%

Textbook

Title: Consumer Behaviour

Authours: Schiffman,L.,

O’Cass, A., Paladino, A., &

Carlson, J.

Year: 2014

Edition: 6 rd Edition.

Publisher: Pearson Education

Australia.

Place published: Frenchs

Forest N.S.W.

Introduction to Consumer Behaviour

Consumer Decision Making Process

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Learning Objectives

- To understand what consumer behaviour is and the different types of

consumers.

- To understand why marketers study consumer behaviour.

- To understand the relationship between consumer behaviour and the

societal marketing concept.

- To understand what a consumer decision is.

- To understand the three levels of consumer decision making.

- To understand four different views or models of consumer decision

making.

- To understand in detail the model of consumer decision making

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What is consumer behaviour?

Consumer behaviour is the behaviour that consumers

display in searching for, purchasing, using, evaluating and

disposing of the products and services that they expect will

satisfy their needs (Schiffman et al., 2014, p. 4).

The study of consumer behaviour includes:

- how consumers think - what they buy

- why they buy it - how often they buy it

- how often they use it - how they dispose of it.

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When acting as consumers, individuals have one

goal in mind:

To obtain goods and services that meet their needs

and wants.

This requires solutions to problems, and the

process is often complex.

What is consumer behaviour

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Consumer roles: Buyers, payers and users

The marketplace activities of individuals entail three

functions:

1. the consumer (user) - who consumes or uses the

product

2. the buyer - who undertakes activities to procure or

obtain the product

3. the payer - who provides the money (or other value)

to obtain the product.

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Target the Consumer

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Targeting the Buyer

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Target the payer

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Why Study Consumer Behaviour?

 By studying consumer behaviour we try to

understand & gain insight into:

 Consumer decision making processes

 What we buy, how we buy, and why we buy

 Enables us to become better consumers and

marketers

 We try to gain a better understanding of consumer

related behaviour and why individuals act in

consumer related ways.

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WHY Study Buyer Behaviour ?

HOW do marketers know

 Which people to target

 Where to reach them

 What messages to communicate

 What media to use

 What distribution method is best

 Differences between groups

 How to keep customers ?????

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Development of the marketing concept

Production

concept

Product

concept

Selling

concept

Marketing

concept

Societal

marketing

concept

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Societal marketing concept

A restructured definition of the marketing concept:

Seeks to fulfil the needs of the target audience in ways that

improve society as a whole, while also fulfilling the objectives of

the organisation.

Marketers should adhere to principles of social responsibility in

the marketing of their goods and services and satisfy the needs

and wants of their target markets in ways that preserve and

enhance the well-being of consumers and society.

Range Rover Evoque - Sustainability

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What is a decision?

A decision is the selection of an action from two or

more alternative choices.

> Note: This includes the decision of whether or

not to make the purchase, and which brand to

purchase.

A forced choice (no alternatives) is known as

Hobson’s choice: and are therefore forced to make

a particular purchase.

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Four views of consumer decision making

Economic model Passive model

Cognitive model Emotional model

Decision-making

models

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Consumer Decision Making Models

Economic (rational) Model

Consumer makes economically rational decisions → aware of all

alternatives → can evaluate pros and cons → make best

decision.

Unrealistic because of consumer limited skill sets and pre-existing

habits and values.

Passive Model

Consumer is depicted as being easily persuaded by marketing

techniques → conceptualised as submissive.

Ignores scenarios where consumers are equal / dominant within

the buying situation.

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Consumer Decision Making Models (cont.)

Cognitive (problem-solving) Model

Consumer depicted as problem solver → receptive / seeking products or

services that fulfill their needs.

Focus is on how consumers seek + evaluate information.

Does not predict economically rational decisions.

Emotional Model

Focus is on the emotional issues that influence purchase decisions (e.g. fear,

hope, fantasy, joy etc.).

Consumer spends less time on eliciting information and evaluation.

Emphasis is on current mood and feelings (e.g. self-rewards),

but this does not mean the decision is irrational .

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Levels of Consumer Decision Making

Extensive Problem

Solving

Limited Problem

Solving

Routinised Response

Behaviour

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A Continuum of Buying Decision Behavior

Routine response

behavior

Limited

problem solving

Extensive

problem solving

Low-cost products

Frequent purchasing

Low consumer involvement

Familiar product class

and brands

Little thought, search, or

time given to purchase

More expensive products

Infrequent purchasing

High consumer involvement

Unfamiliar product class

and brands

Extensive thought, search,

or time given to purchase

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A simple model of consumer decision making

Input

• Firms’ marketing strategies

• Sociocultural environment

Process

• Need recognition

• Pre-purchase search

• Evaluation of alternatives

Output

• Purchase

• Post-purchase evaluation

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A simplified model of consumer decision making

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Marketing inputs

Inputs

Product

Packaging

Mass media

advertising

Direct

marketing

Personal selling Brand Pricing

Channels

utilised

Promotional

strategies

Target

markets

Overall

strategies

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Sociocultural inputs

Inputs

Discussion with

friends

Usage by

others

Mass media

editorial

Comments from

experts

Internet discussion

groups

Culture

Subculture

Government

advertising

Lobbying

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Process

Need recognition Pre-purchase search

Evaluation of

alternatives

Process is concerned with how consumers make decisions.

It has three steps and is influenced by the psychological

field.

The psychological field has two key concepts: perceived risk

and the evoked set.

Engel, Kollat and Blackwell (1978)

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1. Need recognition: actual versus desired state model

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2. Pre-purchase (Information) Search

Consumers rely on past experiences (memory) as an internal

source of information.

If this is insufficient then consumers undertake an external

search for information.

Extent of external search determined by:

> level of product knowledge

> perceived risk

> perceived impact information will have on quality of

decision

> available time

> ease of obtaining information.

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A Framework for Consumer Information Search

Prepurchase Search

Ongoing Search

Determinants

Involvement with the purchase

Involvement with the product

Motives

Making better purchase decision

Building a bank of information for future use

Experiencing fun and pleasure

Outcomes

Increased product and market knowledge

Better purchase decisions

Increased satisfaction with the purchase outcomes

Increased product and market knowledge leading to

- future buying efficiencies

- personal buying

Increased impulse buying

Increased satisfaction from search and other outcomes

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Types of perceived risks

Functional risk

Product will not work as

well as expected (or meet

the need)

Physical risk

Product may not be safe

(for self or family)

Financial risk

Product will not be worth

its cost

Social risk

Possible social

embarrassment as a

result of the purchase

Psychological risk

Risk a poor product

choice will impact on

consumer’s self-esteem

Time risk

Amount of time spent in

product search will be

wasted if product does not

perform as expected

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Factors that increase pre-purchase search

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3.Evaluation of alternatives

Consumers rely on two types of information:

1. their evoked set – list of brands or stores

from which they will make their selection

2. the criteria they use to evaluate each

brand.

Evoked set also called the consideration set.

The evoked set is a small number of brands.

The criteria used to evaluate brands is usually

based on important product attributes.

Consideration set - Gumtree

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The evoked set as a subset of all brands in a product class

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Consumer decision rules

• Consumer evaluates brands in terms of each

attribute and computes a summated score

for each brand

• Allows a positive evaluation on one attribute

to balance out a negative evaluation on

another attribute

Compensatory decision rules

• Does not allow consumers to balance

positive evaluations on one attribute against

a negative evaluation on another attribute

• Products with a negative evaluation on key

attributes are eliminated from further

consideration

Non-compensatory decision rules

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Consumer decision rules - ratings

9781442561533/Schiffman/Consumer behaviour/6e

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4. Purchase behaviour

1.Trial purchases:

> first-time purchase of a product, usually designed to

evaluate the brand.

2.Repeat purchases:

> consumer has found the product satisfactory and

repurchases.

3.Long-term commitment purchases:

> purchase of durable goods (e.g. fridge, stove) where a trial

purchase is not possible.

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Retail environment, mood and behaviour

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5. Post-purchase evaluation

Prior

expectations

Product

performance is

below

expectations

Product

performance

exceeds

expectations

Product

performance

matches

expectations

Product

performance

Neutral feeling Dissatisfaction Satisfaction

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Strategies to reduce post-purchase cognitive dissonance

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A model of consumption

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Relationship marketing

Why are

consumers less

loyal?

Greater

choice

Availability of

information

Sense of

entitlement

Products

commoditised

Financial

insecurity

Time scarcity

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Relationship marketing (cont.)

Many firms have relationship marketing programs designed

to encourage loyalty.

Programs create ongoing communication with customers.

Programs simulate a sense of belonging.

Real relationship programs go beyond simple database

marketing – needs to be the development of a two-way

valued relationship.

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Benefits of a loyalty building strategy

Loyalty building

strategy

Reduced

marketing

costs

Lower

transaction

costs

Fewer lost

customers

to replace

Increased

cross-selling

positive

word of

mouth

Reduced

failure costs

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A simplified model of consumer decision making

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Consumer Involvement

Involvement:

> A person’s perceived relevance of the object based on their

inherent needs, values and interests.

– Object: a good, service, advertisement or purchase

situation.

Levels of Involvement—from Inertia to Passion:

> Type of information processing depends on the consumer’s

level of involvement.

– Simple processing: only the basic features of the

message are considered.

– Elaboration: incoming information is linked to pre-existing

knowledge.

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Involvement Theory: Consumers engage in a

range of information processing activity from

extensive to limited problem solving, depending on

the relevance of the purchase.

 Involvement Theory and Media Strategy

 Central and Peripheral Routes to Persuasion

Involvement Theory – Key Areas

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Involvement Theory

Low

Involvement

High

Involvement

Low Involvement

 Purchases of minimal personal relevance

Awareness of need → purchase of item

High Involvement

 Purchases of high personal relevance

Awareness → evaluation → purchase → adoption/ rejection

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Different levels of involvement

Different levels of involvement occur

with different products.

Involvement can also differ at

different stages of the purchase

process.

Consumer involvement is considered

a causal (motivating) factor that

drives attitudes and decision

making.

Is considered to be individual specific

– the consumer determines the

level of involvement the product

has with them.

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Framework for predicting level of involvement

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Consumer responses

Three theories illustrate the concepts of problem solving for

high and low-involvement consumers:

1. central and peripheral routes to persuasion theory

(Elaboration Likelihood Model – ELM)

2. social judgement theory

3. informational/transformational theory.

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Central and peripheral routes to persuasion theory

• More effective for high involvement

purchases

• Consumer more likely to evaluate

information and products carefully when

the product is more relevant to them

• Focus on the attributes of the product

Central route to

persuasion

• More effective for low involvement

purchases

• Consumer more likely to engage in

limited information search and evaluation

when purchase is less important to them

• Focus on the presentation of message

Peripheral route to

persuasion

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Examples of Content versus Peripheral

Cues

Milk – Product involvement

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Social judgement theory

Posits our processing of information about an issue is

determined by our involvement with the issue

Highly involved individuals will interpret a message

congruent with their beliefs as more positive

(assimilation effect). And one that is not congruent as

more negative (contrast effect)

Uninvolved individuals will be more receptive to arguments

for and against

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Informational theory

Informational motivation is seen as

negative motivation consisting of:

1. Problem removal

2. Problem avoidance

3. Incomplete satisfaction

4. Mixed

approach/avoidance

5. Normal depletion (i.e.

‘out of stock’)

Transformational theory

Transformational motivation is seen

as positive motivation consisting

of:

1. Sensory gratification

2. Intellectual stimulation

3. Social approval

Informational theory versus

transformational theory

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Informational theory versus transformational theory and

involvement

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This Week

Tutorial 1: Introduction to CB and house keeping (meet your tutor and friends)

Next Week

Tutorial 2: Consumer decision making process (case study: eftpos: The

building of a brand)

Chapter 3: Needs and Motivation