Week 1 Lecture

Question 1

Introduction (why we study consumer behavior)

Answer 1

Marketing professionals want to find out what consumers buy and why
But this information is hidden in consumer’s minds
Therefore, they will investigate how consumers respond to various marketing actions such as advertising

Question 2

Consumer behavior

Answer 2

the study of how and why individuals or groups acquire, consume and dispose products

Question 3

Consumer consumption process

Answer 3

1. Identify a need or desire
2. Make a purchase
3. And then dispose the product
   many people are involved in this process (purchaser-user/mother and child; influencers/messi; family; designers)

Question 4

Why is consumer behavior important?

Answer 4

1. Consumers have a huge impact on marketing strategies
2. Firms exist to satisfy consumers’ needs
3. Consumers have a huge impact on consumer behavior since manufacturers want to know how we are motivated to buy their products

Question 5

Some relevant questions for business

Answer 5

1. Who are your customers?
2. How do we reach them
3. What should we sell them?
4. What will motivate them to buy?
5. What makes them satisfied?
   –> these questions require a sophisticated understanding of consumer behavior

Question 6

The meaning of consumption

Answer 6

1. People often buy brands, not for what they do, but for what they mean
2. Helps us to form bonds with others who share the same preferences
3. Convey image or personality

Question 7

Types of consumer decisions

Answer 7

1. Habitual/Routine decision making
2. Limited decision making
3. Extended decision making

Question 8

Habitual/Routine decision making

Answer 8

Characteristics:
Buying low-involvement, frequently purchased, low-cost items
Need little research and little decision-making
Purchased almost automatically
(Bread, toilet paper)

Marketers task:
Current customers –> maintain brand’s quality, stock and value
Non-customers –> break normal buying habits

Ways to market towards it:
Use promo to call attention to new brand
Ads/promos focus on one message
Message is often repeated

Question 9

Limited decision making

Answer 9

Characteristics:
Buying products occasionally
Moderate amount of time while searching info
Low to medium involvement
Low to moderate-cost goods
New brands may be considered for each purchase
(Clothes)

Marketers task:
Provide reasons for buying a brand (not just reminding in an advertisement)
Nike –> find your greatness

Question 10

Extended decision making

Answer 10

Characteristics:
High involvement
Expensive/infrequently bought products
High degree of economic/performance/psychological risk
Spend a lot of time seeking info and deciding to buy it
(Laptop)

Marketers task:
Promo messages can be longer, more informative
Marketers must work to reduce the consumer’s perception of risk
(Volvo ad)