Session 1
Consumer Behaviour
and Technology
Consumer Behaviour
Learning Objective 1:
What is consumer
behavior?
MARKETING is a process
for creating,
communicating, and
delivering offerings that
have value for is the
activity, set of institutions,
customers, clients,
partners, and society
Consumer Behaviour
Consumer behavior is the study of consumers’ choices during searching, evaluating,
purchasing, and using products and services that they believe would satisfy their needs
SEARCHING EVALUATING PURCHASING EVALUATING DISPOSING
Who is a prospect?
Desire Authority Money
Who is a consumer?
A consumer is a person who identifies a need or desire,
makes a purchase, and then disposes of the product during
the three stages of the consumption process. In many
cases, however, different people play a role in this sequence
of events.
The purchaser and user of a product might not be the same
person.
Stages in a Consumption Process
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For Reflection 1.1
Think about your own situation
1 2 3
How do you decide that What about a purchase When using the product,
you need a product? makes it pleasant or what determines if the
stressful for you? experience is pleasant?
DIFFERENT CONCEPTS
But before
PRODUCTION CONCEPT, PRODUCT CONCEPT,
SELLING CONCEPT, MARKETING CONCEPT,
RELATIONSHIP MARKETING CONCEPT
we get into TARGETING
SEGMENTATION, TARGETING AND
any further POSITIONING
details- THE VALUE PROPOSITION OR THE
VALUE EXHANGE
Dou you rememeber these concepts? LOWER PRICE, MORE INFORMATION OR
CUSTOMIZED PRODUCTS
Learning Objective 1:
Summarizing Consumer
Behaviour
Consumer Behaviour is a process.
Learning objective 2:
Marketers have to
understand the wants
and needs of different
consumer segments.
10
CUSTOMERS ARE
DIFFERENT AND EVER
CHANGING
Marketers have to understand the
wants and needs of different
consumer segments
They differ in more
than any number of
ways you could think
of
Consumers are different
Heavy Users 80/20 rule
Most faithful customers or 80/20 rule: 20 percent of
heavy users. users account for 80 percent of
sales
Big Data
“The end has come for making marketing
decisions based on gut instincts; everything
marketers do in the digital world can now be
tracked, from the first click all the way to the
deal close. CMOs who do not embrace and
accept this concept will likely not be CMOs for
very long.”
“The world is being reshaped by the
convergence of social, mobile, cloud, big data,
community, and other powerful forces. The
combination of these technologies unlocks an
incredible opportunity to connect everything
together in a new way and is dramatically
transforming the way we live and work.”
Big data is a term that describes large, hard-to-manage volumes of data – both structured and
unstructured – that inundate businesses on a day-to-day basis. But it’s not just the type or amount of data
that’s important, it’s what organizations do with the data that matters. Big data can be analyzed for
insights that improve decisions and give confidence for making strategic business moves.
Learning Objective 3: Does marketing imitate
life or life imitate marketing?
Music
Popular Sports
Culture Movies
Marketers influence preferences for movie
and music heroes, fashions, food, and
decorating choices. Books
Popular Culture
03
Popular culture influencing my life
Learning Objective 4:
Our motivations to
consume are complex
and varied
People often buy products not for what they do but
for what they mean.
The self-concept Nostalgic attachment Interdependence Love
attachment
The product helps to The product serves as a The product is a part of the The product elicits
establish the user's identity. link with a past self. user's daily routine. emotional bonds of warmth,
passion, or other strong
emotion.
Self-concept Nostalgic Attachment
attachment
People
often buy
products
not for what
they do but
for what Interdependence Love
they mean.
Learning Objective 5:
Technology and culture
create a new “always-
on” consumer.
Horizontal revolution
the information doesn't just flow from big companies or
governments down to the people; today each of us can
Digital Native:
communicate with huge numbers of people with a click on a keypad,
so information flows across people as well.
User-generated content
Living a social Probably the biggest marketing phenomenon of this decade is user-
generated content, whereby everyday people voice their opinions
(media) life about products, brands, and companies on blogs, podcasts, and
social networking sites such as Facebook and Twitter, and even film
The term digital native originated in a 2001 their own commercials that thousands view on sites such as
article to explain a new type of student who YouTube.
was starting to turn up on campus. These
Synchronous interactions and asynchronous
consumers grew up "wired” in a highly
networked, always-on world where digital
interactions
technology had always existed. Facebook, a social utility that offers synchronous interactions (those
that occur in real-time, like when you text back-and-forth with a
friend) and asynchronous interactions (those that don't require all
participants to respond immediately, like when you email a friend
and get an answer the next day), photo-sharing, games, applications,
groups, e-retailing, and more has as of the
time of this writing more than 600 million active users.
Digital Native
Lifelog IOT Autonomous Car Robotics
Artificial Intelligence Machine to Machine Augmented Reality Virtual Reality
communications
Questions for reflection:
How has your daily life changed because of
social media?
How has your buying behavior changed because
of social media?
What does your virtual life look like?
The pyramid of
consumer behavior
Learning Objective 6:
There are differing
perspectives regarding
how and what we should
understand about
consumer behavior.
Positivist vs. Interpretivist
How do you think the two paradigms of consumer research affect the choices
marketers make in targeting consumer segments?
Questions Needs and Wants: Do
Marketers Manipulate
Do Marketers Promise
Miracles?
you should Consumers?
consider Do Marketers Create What is your opinion
Artificial Needs? about consumerism?
preparing.
Are Advertising and
Marketing Necessary?
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