SESSION 1
INTRODUCTION TO CONSUMER BEHAVIOUR
1
LEARNING OBJECTIVES
Define consumer behaviour
1
2 Characteristics of consumer behaviour
3 Explain why consumer behavior can be used to develop marketing strategy
Explain the elements that constitute a conceptual model of consumer
4 behavior
Discuss issues involving consumption meanings and firm attempts to
5 influence them
20/02/2025 2
PART I: INTRODUCTION
1-3
Consumer Behavior and Marketing Strategy
Consumer behavior is the study of
individuals, groups, or organizations and the
processes they use to select, secure, use,
and dispose of products, services,
experiences, or ideas to satisfy needs and
the impacts that these processes have on
the consumer and society.
1-4
Market Segmentation
Market segmentation is
a portion of a larger
market whose needs
differ from the larger
market.
1-5
Market Segmentation
Market Segmentation Involves Four Steps:
1. Identifying Product-Related Need Sets
2. Grouping Customers with Similar Need Sets
3. Describing Each Group
4. Selecting an Attractive Segment(s) to Serve
1-6
Outcomes
Creating Satisfied Customers
1-7
The Nature of Consumer Behavior
Overall Conceptual Model of Consumer Behavior
1-8
The Nature of Consumer Behavior
External Influences
• Culture
• Demographics and social factors
• Ethnic, religious, and regional subcultures
• Families and households
• Groups
1-9
The Nature of Consumer Behavior
Internal Influences
• Perception
• Learning
• Memory
• Motives
• Personality
• Emotions
• Attitudes
1-10
The Nature of Consumer Behavior
Self-Concept and Lifestyle
Self-concept is the totality of an individual’s
thoughts and feelings about oneself.
Lifestyle is how one lives, including the
products one buys, how one uses them,
what one thinks about them, and how one
feels about them.
1-11
The Nature of Consumer Behavior
Situations and Consumer Decisions
Consumer decisions result from
perceived problems and
opportunities.
Consumer problems arise in
specific situations and the nature
of the situation influences the
resulting consumer behavior.
Using Outdoor Media to Trigger Problem Recognition
1-12
It’s not easy to understand humans!
Don’t be a fool. O.O
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BASIC MARKETING
CONCEPTS IN CB
• Need: describes
Self basic human
Maslow’s Actualization
Hierarchy of (Self-development)
requirement
Needs Esteem Needs ( self-
esteem)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
BASIC MARKETING
CONCEPTS IN CB
• Wants: are desires for specific satisfies of these
deeper needs. Human wants are continually shaped
and reshaped by social forces and institutions such as
families, schools, business corporations,….
• Demands: Human wants that are backed up by
buying power. People choose products that they see
as providing the most value and satisfaction for
their money.
BASIC MARKETING
CONCEPTS IN CB
• Products: Anything that can be offered to someone to satisfy a
need or want
• Tangible and intangible products
• Value: The consumer’s assessments of the product’s overall
capacity to satisfy their needs.
– Benefits/costs
– Ex: Mobile telephone are not only fast, flexible, reliable
communications but also status and image.
BASIC MARKETING
CONCEPTS IN CB
• Customer expectations: are based on past buying
experiences, the opinions of friends, supplier
information and promises. Highly satisfied customer
make repeat purchases, less price sensitive, remain
customers longer, and talk favorably to others about
the company and its products (positive WOM)
• Customer # Consumer
BASIC MARKETING
CONCEPTS IN CB
• Satisfaction: The extent to which a product’s perceived
performance matches a buyer’s expectations. If the
product’s performance falls short of expectation, the
buyer is dissatisfied. If performance matches or exceeds
expectations, the buyer is satisfied or delighted.
CONSUMER BEHAVIOUR
The dynamic interaction of affect and cognition, behavior, and the environment
by which human beings conduct the exchange aspects of their lives.
(The American Marketing Association)
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CHARACTERISTICS OF CONSUMER BEHAVIOUR
Consumer behaviour is DYNAMIC.
Consumer behaviour involves
INTERACTIONS.
Consumer behaviour involves
EXCHANGES.
20/02/2025 20
Elements of Consumer Analysis
AFFECT: feelings about stimuli and events.
Affect & • Responses can be favorable or unfavorable.
Cognition
• Responses can vary in intensity.
COGNITION: thinking about stimuli and
Environment Behaviour events.
• Mental structures & processes involved in thinking,
understanding, & interpreting stimuli, events.
• Aspects of cognition are conscious and automatic.
22 May 2019 21
Elements of Consumer Analysis
BEHAVIOUR
physical actions of consumers that can be
Affect &
Cognition directly observed and measured by others.
(overt behaviours)
Environment Behaviour
22 May 2019 22
Elements of Consumer Analysis
Affect & ENVIRONMENT: refers to everything
Cognition
external to consumers that influences what they think,
feel, and do.
• Social stimuli
Environmen • Physical stimuli
Behaviour
t
Important to marketing because it is the medium in
which stimuli are placed to influence consumers.
22 May 2019 23
GROUP ACTIVITY
Read the Starbucks - 2008 (American context) case on page 32 in Peter & Olson (2010) and
answer the following discussion questions:
Base on the case information and you :
1. List at least 3 things you KNOW about Starbucks (cognitions).
2. List at least 3 things you LIKE OR DISLIKE about Starbucks (affect).
3. List at least 3 behaviours you perform when buying a drink from Starbucks (behavior).
4. List at least 3 things Starbucks does to its store environment to influence the
consumers’ coffee purchases. (environment)
5. Does Starbucks employ similar or different strategy for Vietnamese consumers? Why?
22 May 2019 24
