Consumer Behaviour Notes

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Chapter 1
Read pages 4 – 6 and 22 for digital revolution
Consumer behaviour is defined as the behaviour that consumers undertake in seeking, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their personal needs. Personal and organisational consumers (page 9)

The personal consumer buys good and services for his or her own use, for use by the whole household, for another member of the household or as a gift for a friend. In all these contexts, the goods are bought for final use by individuals, who are referred to as ‘end users’ or ‘ultimate consumers’. The organisational consumer includes profit and non-profit businesses, public sector agencies and institutions, all of which buy products, equipment and services in order to run their organisations. All organisations must purchase materials as direct and indirect inputs to their offerings and to support their markets. Buyers and users (consumers)

Consumer – the person who consumes or uses the product or service. Buyer – the person who undertakes the activities to procure or obtain the product or service. Payer – the person who provides the money or other object of value to obtain the product or service. The interdisciplinary nature of consumer behaviour research (page 12) Psychology – the study of the individual. It includes the study of motivation, perception, attitudes, personality and learning patterns. Sociology – the study of groups. Group behaviour describes the actions of individuals in groups, which often differ from the actions of individuals operating on their own. Social psychology – the study of how an individual operates in a group. The study of how individuals are influenced in their personal consumption behaviour by those whose opinions they respect, such as peers, reference groups, family and opinion leaders. Cultural anthropology – the study of human beings in society. It traces the development of the core beliefs, values and customs that are passed down to individuals from their parents and grandparents and influence their purchase and consumption behaviour. It also includes the study of subcultures, which is the comparison of consumers of different nationalities with diverse cultures and customs. Economics – the study of consumers; how they spend their funds, how they evaluate alternatives, and how they make decisions to maximise satisfaction. This theory postulates that individuals act rationally to maximise their utilities in the purchase of goods and services. More recent studies have indicated that individuals often acts less than rationally (i.e. emotionally) to fulfil their psychological needs. Consumer decision making (page 14)

Input stage – influences the consumer’s recognition of a product need and consists of two external influences: firm’s marketing efforts - product, promotion, pricing, channels of distribution and marketing segmentation. Sociocultural environment – communication and reference groups, family, social class, culture and subculture, opinion leadership and diffusion of innovation, public policy and consumer protection. Process stage – focuses on how consumers make decisions.

Need recognition pre-purchase search Evaluation of alternatives. The consumers' experience with a product exploration happens in the process stage. Output stage – purchase: trial and repeat purchase

post-purchase evaluation
Why marketers study consumer behaviour (page 16 or 18)
* Shorter product life cycles
* Environmental concerns
* Consumer protection and public policy concerns
* Growth of services marketing
* Not-for-profit/social marketing
* Growth of global marketing
Societal marketing concept (page 20)
Marketers adhering to principles of social responsibility in the marketing of their goods and services; that is, they must endeavour to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being and consumers and society as a whole....
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