Lecture 1: Intro to Consumer Behaviour Flashcards
What other disciplines is the study of consumer behaviour derived from?
- Psychology: study of internal though processes
- Sociology: study of behaviour within groups
- Neuroscience: study of the ways in which the human brain works
- Economics: study of demand
- Anthropology: study of what makes us human
- Consumer behaviour is at the…..?
Centre of all marketing decision-making
Example of bad understand of consumer behaviour
Blockbuster and Netflix
- Turned down a buyout of Netflix, who went on to be there biggest competitors
- Did not adapt to changing consumer behaviour and technological advancements
- Failed to capitalize on the growing trend of online services and the increasing comfort of consumers with e-commerce.
- The pivotal moment came with the rise of streaming technology. Netflix was quick to pivot from its DVD-by-mail model to an online streaming service
- Blockbuster, meanwhile, was slow to recognize the potential of online streaming and continued to invest in its brick-and-mortar stores
- Company lost a significant market share to Netflix and other emerging streaming services
- Demonstrates the importance of innovation, understanding consumer trends, and the willingness to disrupt one’s own business model before competitors do
Example of Good understanding of consumer behaviour
Tennent’s the Scottish beer company had to change their behaviour due to Covid-19 pandemic closing pubs.
The company reconsidered their distribution channels, started allowing consumers to order their favourite beer online to be delivered their doorstep.
Partnered with Phillips, released their PerfectDraft 6L keg which could be ordered online
Consumers could enjoy the taste of a Tennent’s Pint as if it were straight from the draft of their local from the comfort of their own home
Extremely smart and acute understanding of consumer behaviour as releasing this whilst everyone was stuck at home is genius, will drive more sales as many prefer a pint from the draft and can’t get it anywhere else whilst stuck indoors.
Why is it important to understand
consumers?
- Consumers are party to the exchange process.
- Consumer purchase decisions are impacted by macro –
environmental factors as well as competing offerings. - Studying consumers helps a business analysis and influence
factors affecting demand
Why study Consumer Behaviour?
Our guesses about people are inaccurate:
- This is because human nature leads us to believe that other people think like us; false consensus
- Our behaviour offers opportunities for marketers
What are the five key
questions of Understanding consumers
- Where do they buy?
- What are their choice Criteria
- When do they buy
- How do they buy
- Who is important?
What are consumer needs?
- States of deprivation
- Physical—food, clothing, warmth and safety
- Social—belonging and affection
- Individual—knowledge and self-expression
What are consumer wants?
- Form taken by human needs when shaped by culture and individual personality
What are consumer Demands
- Human wants that are backed by buying power
Define the modem consumer:
- More demanding / wants more choice
- Has more information / greater knowledge
- Multichannel users
- Less loyal
- Less tolerant
- Customer to customer dialogue has grown
- Less susceptible to marketing messages
What is consumer behaviour?
Cognition (thought processes), Affect (emotion) & Conation (intended behaviour)
+
Personal and environmental factors
What is the Circle of Consumption
- Production
- Acquisition
- Consumption
- Disposal
In order for companies to be successful
internationally they must….
- Understand the differences among international markets.
- Understand the needs of international customers depends
strongly on understanding their behavior patterns.
So how can we as marketers
affect/influence consumer behaviour?
- Social Factors
- Situational Factors
- Marketing Mix
- Psychological Factors
