Consumer Behavior 5750 Summer 2 2013
Areas to be covered on exam # 1
(Primarily short essay)
A. Consumer Behavior - Definition & key components/elements
* Consumer Behavior - the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
* An analysis of Consumer Behavior requires you to examine consumer’s motivations, thoughts, feelings, needs, wants, desires and actions.
* Consumers are multi-dimensional and their behavior is shaped by cultural, personal, social and personality factors with culture having the deepest influence and being the fundamental determinant of a person’s wants and behavior. * Cultural refers to social class, which in the U.S. can mean upper class, middle class, etc. and subculture - nationalities, religions, racial groups, and geographic regions. * Personal refers to factors such as age, stage in life cycle and occupation. * Social refers to family roles, reference groups, and status. * Personality refers to lifecycle and values.
* Be able to describe in your own words, the challenge facing marketers and the steps related to consumer behavior that marketers have to take to convince consumers to buy their brands (Source: second page bottom “attention…action”
* Challenge facing Marketers:
* Finding new and unique ways to attract customers and distinguish a product in today’s fast paced world where traditional channels such as television and billboards are not as effective as they once were. * Mainly due to the consumers short attention spans and a shift in media consumption habits to online formats where many elements such as social networks are playing a larger role in consumer’s lives.
* Steps to Convince consumers to buy brands
* Attention (a.k.a. awareness) - attract the attention of the customer. * Interest- raise customer interest by focusing on and demonstrating advantages and benefits. * Desire- convince customers that they want and desire the product or service and that it will satisfy their needs. * Action- lead customers towards taking action and/or purchasing.
* Left Brain-Right Brain
* Left Brain - Rational, Active, Realistic (Order, logic, practical) * Right Brain - Emotional, Metaphoric, Impulsive, Intuitive (Creative, Passionate, Imaginative)
* Emotions behind purchasing a brand (Crestor Article)
* Research can help a brand decide how to market a product to a consumer by appealing to a particular emotion. * Research found that most people’s brand purchasing choices in the UK are influenced by just 8 emotions (Pleasure, confidence, responsibility, status, effectiveness, individuality, saving, belonging) * Brands can make people feel happy, confident, part of a group, etc. * Women derive greater emotional value in terms of life enrichment than men * Brands targeting men have to work harder to enrich men’s lives than one targeting women. * Companies need to analyze which group a new product will be appealing to help drive consumption. * The hierarchy of dimensions depends on gender, marital status, and presence of children. * Less enrichment for married couples with no children than single parents. * People earning less get more emotional value from buying brands.
The Consumer PPT
* Just focus on the dilemma of trying to understand consumer behavior and be able to provide brand examples and explain how they use excellent consumer behavior to be successful.
Brands align themselves with basic human passions; use it to appeal to consumers desires. * Old Spice - Manliness
* Coke - Happiness
* Axe - Sex
B. STP (Segmentation, Targeting & Positioning)
STP Overall - the heart of any market research, needed to evaluate any consumer behavior. *...
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