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    Consumer

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    Sanyam Agarwal
    The document discusses various aspects of consumer behavior, including defining consumer behavior and the factors that influence it, how new technologies are enabling marketers to better understand and satisfy consumer needs and wants, and the importance of considering ethics and social responsibility in marketing. It also covers topics like how the COVID-19 pandemic has impacted consumer preferences and behavior and how brands have responded.

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    Consumer

    Uploaded by

    Sanyam Agarwal
    29 views25 pages
    The document discusses various aspects of consumer behavior, including defining consumer behavior and the factors that influence it, how new technologies are enabling marketers to better understand and satisfy consumer needs and wants, and the importance of considering ethics and social responsibility in marketing. It also covers topics like how the COVID-19 pandemic has impacted consumer preferences and behavior and how brands have responded.

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    The document discusses various aspects of consumer behavior, including defining consumer behavior and the factors that influence it, how new technologies are enabling marketers to better understand and satisfy consumer needs and wants, and the importance of considering ethics and social responsibility in marketing. It also covers topics like how the COVID-19 pandemic has impacted consumer preferences and behavior and how brands have responded.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views25 pages

    Consumer

    Uploaded by

    Sanyam Agarwal
    The document discusses various aspects of consumer behavior, including defining consumer behavior and the factors that influence it, how new technologies are enabling marketers to better understand and satisfy consumer needs and wants, and the importance of considering ethics and social responsibility in marketing. It also covers topics like how the COVID-19 pandemic has impacted consumer preferences and behavior and how brands have responded.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 25

    Understanding

    Consumer Behaviour
    Learning Objectives
    1. To understand what consumer behavior is and
    the different types of consumers.
    2. To understand the relationship between
    consumer behavior and the marketing concept,
    the societal marketing concept
    3. To understand the factors influencing consumers
    4. To understand how new technologies are
    enabling marketers to better satisfy the needs
    and wants of consumers.
    5. Understanding concept of co-creation
    What is Consumer Behavior……?
    • Consumer behavior is the study of consumers’
    choices during searching, evaluating,
    purchasing, and using products and services
    that they believe would satisfy their needs.
    • It is not just individuals, but households,
    families, and groups that influence the
    decisions we make.
    • Consumer research takes place at every phase
    of the consumption process; i.e. before the
    purchase, during the purchase, and after the
    purchase.
    Covid-19 and Consumer behaviour
    • Change in consumers ‘preferences’ and attitude
    • low demand for non-essential goods and services
    • High demand for OTT, Online education providers,
    online gaming etc.
    • Acceleration in "buy local" trend.
    • Boost in digital commerce
    • focus on health
    • rise in conscious consumption
    Brands Respond to COVID-19
    Why Study Consumer Behaviour?

    • Differences among consumers


    • Consumers change with time
    • Limited success with new product launches
    • Better understanding of how we think
    • Rapid environmental changes

    Marketers must become astute analysts


    of consumer motivation and behaviour
    Consumer Behavior Is Interdisciplinary
    • The Marketing Concept The premise that marketing consists
    of satisfying consumers’ needs, creating value, and retaining customers,
    and that companies must produce only those goods that they have
    already determined would satisfy consumer needs and meet
    organizational goals.

    • Societal Marketing Concept


    • -While being customer-centric, the marketer should act in a manner that
    enhances social and ethical well-being and preserves environmental concerns.

    • Consumers consider issues like carbon footprint, raw-materials sourcing


    practices, treatment of employees, contributions to the communities and so on..

    New graffiti ink made from pollution hits the


    streets of Hong Kong
    The Wheel of Consumer Behavior
    Some Issues That Arise During Stages in
    the Consumption Process

    There are many different theories and models used to explain why consumers act as
    they do. Are consumers fundamentally active or passive? Rational or emotional? How
    do they make buying decisions?
    The Stimulus-Response Model or
    Black box model
    Understanding Consumers’ brain
    • Two systems in the Brain: System 1 (Reptilian +
    Middle brain) and System 2 (NeoCortex)
    (source:Daniel Kahneman, recipient of the 2002
    Nobel prize, Thinking Fast and Slow)
    • Outer brain: responsible for processing the written
    language, complex thinking, calculating, and
    rationalizing your decision.
    • Middle brain processes emotional responses
    • reptilian brain is responsible for instinct and
    survival. Its main focus is to avoid pain.
    How To Reach The Reptilian Brain With
    Your Value Proposition
    Marketers use specific techniques to captivate
    consumers:
    • appeal to their innate selfishness,
    • demonstrate importance through contrast,
    • emphasize value tangibility,
    • focus on beginning and end,
    • use a visual metaphor,
    • strike an emotional chord.
    Strategy: 1. DIAGNOSE THE PAIN
    2. DIFFERENTIATE YOUR CLAIMS
    3. DEMONSTRATE THE GAIN
    4. DELIVER TO THE REPTILIAN BRAIN
    Technology Driven Consumer Behavior

    How does technology affect the Marketing Mix?


    Provide examples
    • Interactive and novel communication channels
    • Customizing products and promotional messages
    • Better prices and distribution

    • https://www.youtube.com/watch?time_continue=195&v=R
    8RIqJLUYSE&feature=emb_logo
    Value Exchange
    • Technologies create a value exchange
    • Technology makes it easier to shop and access information,
    entertainment, and customized products
    • Consumers pay for content with information about
    themselves.
    • Provide two examples where brands used technology
    to engage consumers/enhance customer relationships.
    • Provide two examples where technology was used to
    add value to the consumer.
    Adidas:
    https://www.youtube.com/watch?time_continue=78&v=oSNP
    FYTBpBo&feature=emb_logo
    https://www.youtube.com/watch?time_continue=46&v=fFL2D
    k2HYro&feature=emb_logo
    Technology and Customer Relationships
    Technologies often enhance customer relationships and
    retention by engaging consumers with brands.
    • a. Emotional Bonds
    – Personal commitment and attachment; Social media
    attempts to get consumers to engage emotionally with
    products and brands
    • Transactional Bonds
    – Mechanics and structures that facilitate exchanges
    between consumers and sellers; Factors like
    assortment and transaction ease could shape the
    relationship
    More Precise Targeting

    • Cookies
    • Global Positioning Systems (GPS)
    • Selfies
    • Interactive communications

    Cross-Screen Marketing
    A promotional strategy that consists of tracking and targeting users across their
    computers, mobile phones, and tablets, and sending them personalized ads based
    on their interests, as observed by marketers.

    Refer article: What Do Consumers Want? Look at Their Selfies


    Co-creation in Marketing
    “Co-creation is an active, creative and social process, based on collaboration between
    producers and users, that is initiated by the firm to generate value for customers.“
    ITC’s customer interaction Centre, Godrej Hair Care Institute, L’Oreal research and
    innovation Centre, Immersion programmes
    Presumers: push, fund, and promote products and services before they are realized
    Custowners: Funding in the brands they buy from
    User generated content: advt, product innovation, feedback, test marketing
    Threadless.com- online T-shirt seller, crowdsourcing model designs and community
    voting (source: “Local Motors: Designed by the Crowd, Built by the Customer);
    Camisteria (crowd sourcing clothing design), Wacoal
    Challenge-Companies run the risk of diluting the cohesion of their brand message
    and/or the coherence of their product lines; how to maintain sufficient control

    Nike giving customers online tools


    to design their own sneakers

    Reference Book- The Power of Co-Creation: Build it with them to boost growth,
    productivity and profits. University of Michigan professor Venkat Ramaswamy
    (who coined the term co-creation with CK Prahalad) and consultant Francis
    Gouillart
    Ethics and Consumer Behaviour
    • Societal Marketing Concept
    • Marketing Ethics-Moral principles designed to guide marketers’ behavior
    -Privacy Issues (Using Wi-Fi signals from smartphones to track consumers in stores; Smartphone location data;
    Smart TVs; Facebook)
    Should stores be allowed to track your emotions and behavior using your smartphone? Why or why not?
    - Consumer Socialization (Perceptual stage (3-7 years old); Analytical stage (7-11 years old); Reflective
    stage (11-16 years old)

    At what point is it ethical for marketers to communicate with children? Does it depend on other factors
    besides age (e.g. socioeconomic status; product category)?
    - Encouraging Overeating
    - (Short, wide glasses; Clear candy jars; Transparent sandwich wrap; Visible, aromatic food; Organized food
    presentation; Not tracking consumption; Large inventories; Bundling small packages)

    Think of an advertising or social media campaign that you have seen recently that you would consider
    potentially offensive to you or to other consumers.

    • Encouraging Overspending
    • Nutritional Labeling
    • Camouflaged Advertising
    Dark Side of Consumer Behaviour
    • Deceptive advertising
    • Advertising to children
    • Telemarketing frauds
    • Negligent consumer behaviour (product
    misuse, consumption of hazardous products)
    • Drivers of compulsive consumption
    • Corporate social responsibility
    • Corporate rumours

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