1. CMK 411 CHAPTER - UNDERSTANING CONSUMER BEHAVIOUR1.ppt

CONSUMER BEHAVIOUR

1. Dr. Gilbert arap Bor
Catholic University of Eastern
Africa: Gaba Campus, Eldoret
SCHOOL OF BUSINESS
Department of Marketing & Management
CMK 411 –CONSUMER BEHAVIOUR
CHAPTER 1:
UNDERSTANDING CONSUMER BEHAVIOUR

2. Dr. Gilbert arap Bor
INTRODUCTION
•This course is meant to enable marketing students understand the
consumer behaviour principles, models of consumer decision
making and assess factors that influence consumer needs and
motivations.
•The course will also highlight the impact of digital revolution of
consumer behaviour, in an attempt to examine the universality of
consumer behaviour.
•Everyone living in the society is a consumer, and therefore, social
and cultural dimensions of consumer behaviour will be covered in
the course.
•We shall highlight the impact of digital revolution of consumer
behaviour, in order to examine the universality of consumer
behaviour.
•Communication is a bridge between individuals and the world
around them. This will be covered, with focus of the effective use of
persuasion.

3. Dr. Gilbert arap Bor
OBJECTIVES OF THE COURSE
•At the end of the course, you should:
1.Understand consumer diversity
2.Appreciate the impact of personality, perception,
learning and attitude of consumer behaviour.
3.Appreciate the impact of group dynamics such as
family, social class, culture and sub-culture on
consumer behaviour.
4.Understand the consumer’s decision –making
process.

4. Dr. Gilbert arap Bor
OBJECTIVES of CHAPTER 1
At the end of this Chapter, you should be able to:
1.Define consumer behaviour and explain the
components that make up the definition.
2.Identify the four domains of consumer behaviour that
affect acquisition, usage and disposition decisions.
3.Discuss the benefits of studying consumer behaviour.
4.Explain how companies apply consumer behaviour
concepts when making marketing decisions.

5. Dr. Gilbert arap Bor
INTRODUCTION TO CONSUMER
BEHAVIOUR

6. Dr. Gilbert arap Bor
DEFINING CONSUMER
BEHAVIOUR
•The acquisition, consumption and
disposition of goods, services, activities,
experiences and ideas by (human) decision-
making units
–You do this multiple times a day
–Consciously and unconsciously
–Rationally and emotionally
–Influenced by:
•advertising, social media, friends/family, celebrity, sport
and marketing communications

7. Dr. Gilbert arap Bor
DEFINING CONSUMER
BEHAVIOUR
•Reflects totality of consumer’s decisions with respect to the
acquisition, consumption, and disposition of:
−Goods,
−Services,
−Activities,
−Experiences,
−People, and
−Ideas by (human),
•Over time
How does this relate to marketing strategies and tactics?

8. Dr. Gilbert arap Bor
DEFINING CONSUMER
BEHAVIOUR
Of goods, services, activities, experiences and
ideas
It is a
dynamic
process
Please think of
each form of
consumer
behaviour that you
have engaged in
over the last 24
hours….

9. Dr. Gilbert arap Bor
DEFINING CONSUMER
BEHAVIOUR
Disposing
RECYCLE YOUR WASTE
1.Plastic Water Bottles....
2.Aluminium Foil.
3.Composting. ...
4.Build an Eco-brick. ...
5.Segregate your wet and dry
waste. ...
6.Reuse Your Home Delivered
Newspaper.
7.Replace Singe-use Plastic
Items.

10. Dr. Gilbert arap Bor
DEFINING CONSUMER
BEHAVIOUR
Consumer behaviourinvolves:
•many people,
•many decisions, and
•emotions and coping

11. Dr. Gilbert arap Bor
DEFINING CONSUMER
BEHAVIOUR: Decisions
The following are relevant to consumer behaviour:
•Whether to acquire, use, or dispose of an offering
•What offering to acquire, use or dispose of
•Why would a consumer acquire, use or dispose of
anoffering
•Why an offering is not acquired, used or disposed of
•Various ways to acquire an offering
•Various ways of using an offering
•Various ways to dispose of an offering
•When to acquire, use or dispose of an offering
•How
much?
•How
often?
•And how
long?

12. Dr. Gilbert arap Bor
DEFINING CONSUMER
BEHAVIOUR: Decisions
Ways of Acquiring

13. Dr. Gilbert arap Bor
CONSUMER BEHAVIOUR:
What affects it?
Psychological Core
The Process of Making Decisions
The Consumer’s Culture
Consumer Behaviour Outcomes

14. Dr. Gilbert arap Bor
WHAT AFFECTS IT?
•Motivation, ability and opportunity
•Exposure, attention, perception and
comprehension
•Memory and knowledge
•Forming and changing attitudes
Psychological Core

15. Dr. Gilbert arap Bor
WHAT AFFECTS IT?
Memory and Knowledge
Psychological Core
In this ad, a Kenyan company
uses the country’s sporting
heritage to draw consumers in
and to prompt them to consider
its products.
It also attempts to have
consumers associate its
products with success in sports,
thereby forming new
associations in consumers’
long-term memory.

16. Dr. Gilbert arap Bor
WHAT AFFECTS IT?
The Decision-making process
•Problem recognition and the search for
information
•Making judgments and decisions
•Making post-decision evaluations

17. Dr. Gilbert arap Bor
WHAT AFFECTS IT?
The Consumer’s culture
External Processes/Influences:
–Reference groups and other social influences
–Consumer diversity
–Household and social class
–Values, personality and lifestyles

18. Dr. Gilbert arap Bor
WHAT AFFECTS IT?
The Consumer’s culture
Reference Groups

19. Dr. Gilbert arap Bor
WHAT AFFECTS IT?
Outcomes and issues
•Symbolise who we are –external signs
used to express identity
•Diffuse through a market –influence
others’ decision making
•Consumer behaviour, ethics and social
responsibility (CSR)

20. Dr. Gilbert arap Bor
BENEFITS OF STUDY OF CB
Marketing
Managers
Ethicists and
Advocacy
Groups
Public Policy
Makers and
Regulators
Academics
Consumers
and Society

21. Dr. Gilbert arap Bor
MARKETING IMPLICATIONS OF
CONSUMER BEHAVIOUR
Developing and implementing customer-oriented strategy
Selecting the target market
Developing products
Positioning
Promotions and marketing communication decisions
Pricing decisions
Distribution decisions

22. Dr. Gilbert arap Bor
MARKETING IMPLICATIONS OF
CONSUMER BEHAVIOUR
–Segmenting the market?
–Profitability of each segment?
–Characteristics of consumerism in
each segment?
–Customer satisfaction of each
segment?
Harnessing a Customer-Oriented Strategy
Selecting Target Markets

23. Dr. Gilbert arap Bor
MARKETING IMPLICATIONS OF
CONSUMER BEHAVIOUR
–Consumers’ideas for new products?
–Additional or different attributes?
–Branding?
–Packaging and logo design?
Developing Products

24. Dr. Gilbert arap Bor
MARKETING IMPLICATIONS OF
CONSUMER BEHAVIOUR
–Positioning of competition?
–How should our offerings be
positioned?
–Should we reposition offerings?
Positioning

25. Dr. Gilbert arap Bor
MARKETING IMPLICATIONS OF
CONSUMER BEHAVIOUR
–What should the price be?
–How sensitive are consumers to price and
price changes?
–When should pricing tactics be used?
Distribution
–Where and when does target market shop?
–What do customers see in stores?
–How should stores be designed?
Pricing

26. Dr. Gilbert arap Bor
MARKETING IMPLICATIONS OF
CONSUMER BEHAVIOUR
•Advertising objectives?
•What should advertising look like?
•Where should ads be placed?
•When should ads be placed?
•Have ads been effective?
•Sales promotion objectives and tactics?
•Have sales promotions been effective?
•How salespeople best serve customers?
Promotion and Marketing Communications

27. Dr. Gilbert arap Bor
MARKETING IMPLICATIONS OF
CONSUMER BEHAVIOUR
Where and when does target market shop?
Distribution

28. Dr. Gilbert arap Bor
IN SUMMARY
•CB involves more than just how a person buys
products
•Includes what, whether, why, when, where, how
much/often/long decisions
•CB involves more than just the way a product is
acquired
•Acquisition (leasing, trading, borrowing)
•Usage (gives insight on symbolic aspects, usage
patterns, new product ideas or improvements,
W-O-M)
•Disposing (recycling, product durability)

29. Dr. Gilbert arap Bor
IN SUMMARY
•The Psychological Core covers internal processes that
affect consumer behaviour
–Motivation, ability and opportunity
–Exposure, attention, perception and comprehension
–Memory and knowledge
–Forming and changing attitudes
•The process of making decisions involves problem
recognition and information search, judgment and
decision making and post-decision processes
•CB is affected by the consumer’s culture and by the
typical or expected behaviours, norms and ideas of a
particular group (external processes)
•Marketers study CB to gain insights that will lead to
more effective marketing strategies and tactics

30. Dr. Gilbert arap
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REVIEW/DISCUSSION QUESTIONS
1.How is consumer behaviour defined?
2.What are some of the factors in the psychological core that affect
consumer decisions and behaviour?
3.What are the main steps involved in making decisions?
4.What aspects of the consumer’s culture influence decisions and
behavior?
5.What are the major outcomes and issues involving consumer
behavior?
6.How can public policy decision-makers and marketing managers use
consumer research?
7.What kinds of marketing questions can companies use consumer
behavior research to answer?
8.How can you benefit from studying consumer behavior?