Consumer Behavior Course Outline

Instructor Reham Farouk

Email [email protected]
[email protected]

Mobile 01001540507

Introduction
It is important for marketers to study consumer behavior. The study of consumer behavior is
concerned with all aspects of purchasing behavior - from pre-purchase activities through to post-
purchase consumption, evaluation and disposal activities. It is also concerned with all persons
involved, either directly or indirectly, in purchasing decisions and consumption activities
including brand-influencers and opinion leaders.
Consumer behavior is very complex because each consumer has different mind and attitude
towards purchase, consumption and disposal of product. Understanding the theories and concepts
of consumer behavior helps to market the product or services successfully. Moreover, studying
consumer behavior helps in many aspects. As there is constant change in the living standards,
trend, fashion and change in technology; consumer's attitude towards the purchase of product
varies. This helps marketers to investigate and understand the way in which consumers behave
so that they can position their products to specific group of people or targeted individuals.

Text Book:
Consumer Behavior: Buying, Having, and Being (13th Edition)
Author: Michael R. Solomon

Grading:
Area Attendance 7 workshop Personal Research Group Project
Grades 10 35 15 40

The Winners in this course:

- On-timers
- Lively Participants
- Impressive presentation
Please read through carefully the below mentioned for your own convenience.

7 Workshop (Reflection- Group Work)

These workshops will contribute 35% of your total grade.
Every 4 to 5 students’ maximum will form a group.
The purpose of this project is to simulate the decisions your target customer might be asked to
make, for searching, evaluating, selecting, purchasing, using and/or disposing the specified
respective consumer product. It is intended to identifying market opportunities and developing
an understanding of consumer behavior and decision making process.

Personal Research
This Personal Research will contribute 15% of your total grade.
Group coordinator must create YouTube channel with the group name (ex: GD-IM24- CB-2020)
Each student will select articles relate to his/ her field of experience from (EBSCOhost or
emeraladinsight- myeslsca portal)
Each student should summarize the article in a report not less than 5 pages.
 The report should be typed with Heading in the font Aril size 14 and the text in the font
Aril size 12 using single spacing.
Each student will present his / her work in maximum 10 minutes’ presentation.
Each student will upload his or her presentation on this YouTube channel.

Group Project
This group presentation will contribute 40% of your total grade.
Every 4 to 5 students’ maximum will form a group.
Group must consider choosing a product which have high levels of consumer involvement to
provide a strong impact to your project. Ex Gluten Free Biscuits, Free Lactose Milk, …

Main Key points to be covered:

Customer profile
 Who will buy your product? Primary and secondary.
 Who is you consumer and who is your customer?
 What is their profile? Age cohort criteria.
 How dose consumer decide that he/ she needs your product?
 What are the best source of information to learn about your product and the
alternative choice?
 Who is the primary influencer in the decision making?
 Who is involved in the purchase decision?
  How can we communicate with all decision-making parties?
 What are the factors influence their decision to buy?
Product description
 How often your customer buy it?
 1 time every 3 –4 years average
 Primary customers: Ferrari cars agencies, car racing companies
 The secondary customers are the consumers : Celebrities, footballers ,
actors, business people, Car Enthusiasts/Collectors,Racing Enthusiasts and
Princes.

 When your customer buy it?

* Need Recognition : consumers who are facing problems like performance (like people
who have a car )

• Opportunity Recognition : Ferrari company has a new model comes out creating his
change to buy a new model also consumers who are looking for unique car and features that
don't exist in another cars.

 How much your customer pay for it?

 338000 $

 Who are your major competitors?

1- Porsche
2- McLaren
3- Lamborghini
4- Bentley
5- Aston Martin
6- Maserati
7- Mercedes AMG
8- Audi (S and RS series)
9- BMW (M)
10- Lotus
11- Chevrolet (Corvette)
12-Pagani
13- Honda
 14- Rolls-Royce

 What share of the market do they have?

 Assign Product strengths and weaknesses (e.g. quality, price, service, payment terms,
location, reputation, etc.)?
Strengths:
1- Excellent reputation brand Ferrari,image
2- Extremely High quality standards .
3- High engine performance
4- Product that is a wonderful combination of beauty with an unforgettable
performance.
5- Excellent customer service after sales, such as regular maintenance on the car
for a period of 7 years, and this is evidence of the excellent quality of Ferrari
car.
6- 15 years warranty on Ferrari car.
7- One of Ferrari's most expensive cars.
8- Low choice of driver assistance features, fuel economy is dismal, not
available with Android Auto smartphone integration.
9- High level of handling, fast train acceleration, relatively large freight capacity.
10- Fuel economy
11- It is common for supercars to be damaged by a narrow compartment, but this
is not the case with this Ferrari. Interior design provides reasonably spacious
accommodation, good ergonomics and modern design. There's also more
charging space than you usually find in high-performance sports cars.
12- High Safety Features.
13- Loyal customers to Ferrari brand

Weakness:

1- High price.
2- Distribution system and limited service
3- Lack of experienced service professionals in a lot of countries.
3- The way of the business management in the company itself reduces the sales
volume despite the presence of much greater demand in the market.
4- Due to the politicization followed in the company and the waiting list the
company loses many customers of this car .
1- Small trunk

 What are the opportunities and the threats?

 opportunities
1- Enlargement of Customer Based for this car
2- People who would like to join Ferrari club
3- Brand Expansion through entering into new markets .

Threats
1- Recession and economic slowdown due to coronavirus.
2- Competitors such as Lamborghini and Porsche are expanding their product range to
include high-performance SUVs where Porsche has already had great success with its model
"Cayenne", all over the world and in particular, in India, leading to its success in the Indian
market. Ferrari has not announced any plans for such a product (high-performance SUVs)
3- competitor brands such as Porsche, for example, do not have the same low volumes
as Ferrari and therefore these brands capture a large part of the market share
4- There is intense competition from supercar brands such as Porsche and Lamborghini

 Describe the decision-making process

 - Cognitive : Ferrari customers will think for a long time to buy it because the cost of
this car is 338000 $ so it's very expensive ( specially the first time ) . Ferrari
customers will think about a lot of problems, such as economy, car brand,
performance, design, and after-sales service. Before purchasing, , they will use a
variety of methods to investigate, collect data online, and ask friends and relatives as
the Cognitive drive for purchasing behavior, has the characteristics of objectivity,
planning and control.

 - habitual : to be one of Ferrari family you have to buy 4 or 5 ferrari cars so these
customers are loyal to Ferrari brand and the will buy Ferrari based on reasons of
experience . there are trust between Ferrari company and these customers.

 What are the factors influence their decision to buy?

Since there are many different types of buyers, some of these buyers are the core the
others are those who use the system intensively and completely and thorough
investigation before making a purchase. While taking these different types of buyers
purchase decision in different ways, there are important factors affect all purchasing
decisions for the consumer.
 1- The economic ( financial ) factor: It is the main and main factor in the purchase
decision as simple people cannot buy expensive products
2- Social factors: which include reference groups, marital status and family, which affect
the decisions and behavior of the consumer.
3- Personal factors: Various personal factors affect consumer behavior such as
profession, age, gender of the consumer, Lifestyle, Personality ,self-concept,economic
and social status, and the sex of the consumer, and these factors affect consumers
purchasing decisions, whether individually or collectively.
4- Psychological factors: The main physiological factors are perception, motivation,
learning, beliefs, belief and attitude.
5- Functional factor: it is related to the needs and interest of the client and is proportional
to him
6- Marketing mix factors: which are pricing, features and availability of the product at the
desired location, promotion and place of distribution, and it has a direct and indirect
impact on the consumer’s purchasing decision.
7- Cultural factors: It is one of the factors that affect the purchasing decisions of
consumers, as each individual lives in a different environment and has a different
culture. Therefore, the products and services that they want to buy may be affected
directly or indirectly by the general culture and the environment in which they live,
which include moral values, customs and traditions. Race, Religion, and Caste.

Stages in the consumption process

 What are the procedures that your consumer is going through in order to acquire your
product?
 How can you ease the procedures to your consumer so you can make it pleasant
experience?
 From marketer perspective, how can we motivate the buyer?
 As a marketer, how are you going to use sensory marketing to create a competitive
advantage?
 As a marketer, what is the appropriate learning theory you are going to embrace, so
your target consumers learn about the products?
 As a marketer, what kind of reinforcement is going to use with customer?
 How can you motivate your customer?
 What are the main motivational conflict that your customer going to face?
 What are the main risk that you should consider? how you are going to resolve it?
 How are consumers attitude toward product formed/ changed?
 How this attitude facilitates social behavior?
 Which hierarchy of affect suits your product? Why?
  What is the consumer level of commitment? why?
 As a marketer, what are the correct actions you are going to take to resolve
dissonance that your customer might face?
 What cues do consumer use to infer which products are superior to others?
 What is your brand personality?
 As a marketer, what is the proper power that the spokesperson of your brand must
have, to influence consumer decisions?
 As a marketer, who is the best opinion leader that you believe he/she can influence
others when they decide to buy your product?
 What determine whether the consumer will be satisfied with product and whether he/
she will buy it again?
 Does your customer tell others about his/ her experience with the product and
influence their purchase decision?

Final Group Project Presentation

Each group will present their project in 25 minutes.
Presentations have to be conducted by all group members.
Each group must submit a report, regarding the contributed by each member in the group
Presenting the project is crucial, accordingly any student will not present in the final presentation
will lose 15 marks of your total grade.

Project grading
Group Presentation 10 points
Group Report 15 points
Individual Presentation 15 points
Total Grade 40 points

Incidentals
Heading in the font Aril size 14 and the text in the font Aril size 12 using single spacing

Good Luck
Reham Farouk