WEEK 1 Flashcards
The 3 term Consumer Behavior is synonymously related to the following jargons:
Individual Buyer Behavior
End-User Behavior
Consumer Buying Behavior
The emotional and physical actions people take when they choose, buy, use and get rid of products or services to meet their needs and wants. the “interplay” of forces that takes place during a consumption process,
within a consumer’s self and his environment.
Consumer Behavior
Consumer Behavior’s three elements:
a. Knowledge
b. Affect
c. Behavior
looks at how people think and feel when making decisions about what to buy. It combines ideas from different fields to
understand how human interact with products, services, and ideas.
Consumer psychology
This means that our buying behavior
may be influenced by those of other especially those whom we “admire”.
Spread Effect
Consumers who are in possession of
luxury cars, premium watches, expensive jewelries, branded clothes and many other high-end stuffs are conscious of their image. What they own, reflects their status symbol.
Reflect Status
Awareness of product availability where
familiarity and discernment that an individual can get either from marketing and advertising or other sources from the internet– using
Information Search
is one more distinctive feature of consumer behavior. People have a tendency to stick to a certain brand or service for as long as he is satisfied with it. Factors usually considered are its
high quality and level of performance.
Brand Loyalty
the “knowledge” part. It includes the mental processes involved in processing of information, thinking and interpretation of stimuli (people, objects, things, places and events.
Cognition
– the “feelings” or “emotions” part. It includes the favorable or unfavorable feelings and corresponding emotions towards a stimulus. These vary in direction, intensity and persistence.
B. Affect
– the “visible” part. It could be the purchase activity– to buy or not to buy?
C. Behavior
pertain to an individual’s internal self. It includes psychological components such
as: Personal Motivation
Individual determinants
pertain to external influences surrounding an individual and include sociological, anthropological and economic components such as: Family and Culture
Environmental determinants
(3) major segments of consumer behavior
- The Decision Process
- The Consumer Determinants
- The External Environment
• Goods and services necessary to “sustain” life
• Basic needs
• Needed from birth ‘til death
• For survival
• FOOD
HUMAN NEEDS
• Goods and services that are NOT
necessarily needed for survival but are
nonetheless sought to improve the quality of living.
HUMAN WANTS
In life, there is always a choice. Learn to scout for alternatives or substitutes
Evaluation of Alternatives
In studying consumer behavior, it
helps identify unfulfilled needs and wants of the buying public.
Analyzing Market Opportunities
Periodic re-assessment of market
opportunities time and again helps in
identifying certain consumer segments with very distinct and unique wants and needs
Selecting Target Market
- The marketer has to further determine
the right marketing mix for their respective business to earn and benefit as well. The factors of marketing mix decisions are also known as the four P’s of marketing (Product, Price, Promotion, Place).
Marketing-Mix Decisions
- This is done to design marketing
strategies to make their programs more
effective and increase awareness that would benefit the society in general
Use in Social and Non-Profit Marketing
- Policies are very important to earn and maintain the trust of consumers.
Business enterprise must consider also the habits, culture and traditions of its
patrons.
Production Policies
- Prices should be competitive and regulated to benefit both the
consumers and the business sectors.
Price Policies
- In today’s day and age, many products and services are made
available through conventional channels (physical outlet stores) and via the
internet– thus increasing channels and option availability
Decision Concerning Channels of Distribution
- Promotional campaigns awaken our desire to rush to the mall and avail
of big discounts. It’s a win-win scenario for both consumers and the enterprise.
Sales Promotion Decisions
- Understanding consumer needs, expectations, glitches, and other
issues are beneficial for marketers to design and offer something “new” to
satisfy its target market.
Developing Marketing Opportunities
- Due to technological advancement, innovation and creation of new
products has become more extensive and widespread than ever.
Swift Launch of New Products
- The marketing concept is the philosophy that businesses should first
and foremost analyze the needs of their market and then make decisions to
deliver the desired customer satisfaction and delight– better than their
competition
Implementing the “Marketing Concept”
5 Evolution of Consumer Behavior
Consumers draws its concepts from:
• Psychology
• Sociology
• Marketing
• Economics
• Cultural Anthropology
- The study of the individual determinants in buying behavior
PSYCHOLOGY
-The study of groups: group dynamics in buying behavior
SOCIOLOGY
- The study of how an individual operates in group/groups and its buying behavior
SOCIO-PSYCHOLOGY/MARKETING
- Household Management
ECONOMICS
Beliefs
Values
Attitude towards Wealth
CULTURAL ANTHROPOLOGY
- Refers to the physical presence of a
business in certain location.
Brick & Mortar Retail Store
- Also known as On-line shopping
- Buying of products and/or services
over the Internet
Internet Shopping Website
- Offers a list of goods and services on sale usually with photos, its description, and corresponding prices.
Catalogue/E-Catalog
- Also known as m-commerce
- The delivery of electronic commerce
capabilities directly into the consumer’s hand, anywhere, via wireless technology
Mobile Commerce
“We always overestimate the
change that will occur in the next two
years and underestimate the change thatwill occur in the next ten.
”
- WHO
Bill Gates
