Consumer
Behaviour
Sajjad Hussain
 Learning Outcomes (1)
Recognise the importance of studying consumer behaviour for the
implementation of the marketing concept.
Be able to demonstrate an understanding of the importance of the academic
subjects (psychology, sociology, and anthropology) that underpin the study
of consumer behaviour.
Be able to critically assess competing theories of consumer behaviour.
 Learning Outcomes (2)
Be able to evaluate research methods, theories and concepts
commonly used in exploring and understanding consumer
behaviour.
Show a developing critical reflexivity towards the subject
matter.
Demonstrate written and oral communication skills;
independent study skills; researching skills; team working &
organizational skills.
                  Approach to teaching
I recommend this for every class, not just this one and there are three reasons for this. First,
  research is quite convincing in showing distributed learning lasts much longer. Second,
    earlier exposure to the ideas will let you think about them in ways that help critical
thinking. Third, because this is a class, participation is a significant portion of your marks.
    What’s expected of you during class
✔   All cell phones & other electronic devices must be put on silent or turned off and not on
    your desk during class.
✔   Students are responsible for what transpired if they miss a class. It is the student’s
    responsibility to contact other classmates to determine what was missed.
✔   Talking and other disruptive behavior are not permitted while classes are in session.
✔   Students are expected and must do ORIGINAL work for all assignments, including
    exams.
Attendance Guidelines
   A.   Attendance will be marked during the first five minutes of class.
   B.   Those who are not in class within five minutes will be marked late.
   C.   To discourage tardiness, students who have been late a total of six
        or more times will have two Lates marked as one Absent.
          Reading Material
• Main    textbook:
 Schiffman, L.G., Leslie Kanuk, (2010),
 Consumer Behaviour (Global edition) Tenth
 Edition, Pearson ISBN-10: 0-13-700670-5.
• Other   books (See MO)
• Academic    Papers
Some useful information
regarding module..
The slides are only the starting point for discussion in class.
 Students are expected to keep notes during the class and use
 multiple sources (journal articles and books) to further
 investigate and understand the various concepts.
Focusing only on the slides for their revision might find it difficult
  to have high achievements in the course.
Other material not provided in this area might be also delivered in
 class. This might include slides, examples or any other material.
Often older editions of books have been used to develop some of
 the slides used in class. You could use newer editions of the
 same books as references if you want to study more thoroughly a
 specific topic.
Assessment
Sessional I                   10%
Sessional II                  15%
Quiz/Assignments/                    10%
Projects/Presentations               15%
Class Participation                  10%
Terminal Examination after 16 week          40%
Group assignment 2500 ± 5% words
   ● Groups are self-selected
   ● 3-6 members
   ● Must confirm members by submitting names and contact
     details to lecturer by week 2
Group Project
•1   Group Project: 15 Points
 ●Presentation: 5 Points
 ●Essay: 10 Points
 ●2 Topics; Select ONE
Topic 1: Subscription
Services
•   Part A: Discuss the different motivations identified in
    the literature for the purchase of subscription services
    (streaming platforms). In doing so you must
    acknowledge the different product classifications
    identified by previous literature (convenience, luxury
    and experiential).
•   Part B: With your group, conduct 2 focus groups to
    uncover the motivations for the purchase of subscription
    services (streaming platforms). Analyse your findings
    and compare them with existing literature on
    motivations identified in part A.
Topic 2: Vacation
Destination
•   Part A: With your group identify the evaluation criteria for
    the selection of a vacation destination. Provide an evaluation
    of the different destinations discussing your choice of
    decision rule.
•   Part B: Create a printed advertisement with a promotional
    message that provides the consumer with a decision strategy
    to follow in choosing a vacation destination.
Q&A
Spring 2024 - Timeframe for Module
Development of
Consumer
Research
Why Understand
Consumer Behavior?
-   To determine what consumers need
Consumer      Information   Firm
-   To influence consumers through marketing
    strategies
Firm     Marketing Strategies   Consumer
•   Consumer behavior
    reflects the totality of
    consumers’ decisions with
    respect to the acquisition,
    consumption, and
    disposition of goods,
    services by (human)
    decision making [over
    time].
•   It is the behavior that
    consumers display in
    seeking, purchasing,
    using, evaluating and
    disposing of products and
    services that they expect
    will satisfy their needs.
What is Consumer behavior?
•Consumer   behavior is the study of how
  individuals make decisions to spend
their available resources such as money,
time, and effort on consumption related
                  items.
• More
     generally, consumer behavior is a marriage
between psychology and marketing.
• Understanding the Psychology and behavior of the
consumer can help marketers determine whether new
products are likely to be adopted or expect reactions to
changes in the marketing mix.
Key Consumer Behaviour Concepts for
Marketers
• Customer value (Unique selling proposition or
value selling proposition)
• Satisfaction   (function of customer expectations)
• Trust
• Customer   Retention
Origins of Consumer behavior and
Evolution as a Field of Enquiry
• Economictheory (from production-driven to
market-driven)
               Production    Marketing
               orientation   orientation
• Behavioral
           sciences (e.g., psychology, social psychology,
anthropology, sociology)
• Consumer   behavior evolved as a field of
enquiry after WWII owing to environmental
   factors which encouraged the need for
    formal theories and models of buyer
                  behavior
Environmental Influences After WWII
                                                                     Distribution underwent a virtual
 Competitive growth leading to    Television emerged as the ‘great
                                                                        revolution: emergence of
 the situation where productive    salesperson’. When combined
                                                                      shopping centres and discount
  capacity outstripped demand,       with other media the mass
                                                                     houses. Potential buyers could
  thus motivating a widespread      communication age hit full
                                                                     purchase with convenience and
 turn to the marketing concept.                speed.
                                                                                   ease.
                                                                                            Engel et al. (1995)
Environmental Influences after WWII
  Manufacturers used advertising
                                        Economic growth burgeoned
   and mass media power to pull
                                        with, and the western world
     new products through the
                                       experienced an unprecedented
    channel of distribution, and
                                        period of wealth and buying
  distributors had little choice but
                                                   power.
             to comply.
                                                        Engel et al. (1995)
Approaches to Consumer behavior
Theory Development
• There   are 3 approaches
 ● The a priori approach (exploration
   of theories and concepts from the
   behavioral sciences and introduction
   in consumer behavior, e.g.,
   involvement, persuasive
   communication, symbolic
   consumption)
• Theempirical approach (derive
patterns of consumer behavior
from empirical research using
panel data-concerned with how
things work as opposed to what
motivates those things to work)
• The eclectic approach (combines both a
 priory and empirical approaches to
 provide a comprehensive perspective
 of consumer behavior)
 ● It applies theories and concepts from
   behavioral sciences
 ● It derives findings from systematic
   empirical research in consumer behavior
   domain
Alternative Perspectives of
Consumer behavior
•5alternative perspectives of consumer
behavior (Marsden and Littler 1998)
 ● Cognitive perspective (researchers
   investigate consumers’ information
   processing, e.g., mental process, store &
   retrieval and use of information in the
   decision-making process)
• Behavioral   perspective (Stimulus-Organism –Response or ‘black
 box’)
• Trait
      perspective (behavior of consumer is a result of enduring
 personality characteristics, e.g., innovator-adaptor,
 extrovert-introvert, risk taker-avoider)
• Interpretiveperspective (understanding consumer behavior at an
 individual level, e.g., symbolic consumption, using qualitative
 methodologies)
• Postmodern perspective (no
definition, only a loose set of
ideas as to what represents reality.
In consumer behavior
postmodernism deconstructs
common agreed-upon themes).
Positivism VS Interpretivism
  Positivists are interested in knowing specific    Interpretivists are interested in understanding
 cause of consumer behaviour and predicting it.    consumption behaviour and the meaning behind
                                                                    such behaviour.
Consumer Research
Consumer Research Paradigms
    ● Quantitative Research (Positivism)
    ● Qualitative Research (Interpretivism)
    ● Triangulation (Quantitative+
      Qualitative)
Consumer Research Process
                                                Designing
                           Literature
      Objectives                                primary
                            Review
                                                research
• To find consumer   • Collection of     • Data Collection
  attitude towards     secondary data.     Methods
  online shopping?                       • Data Collection
                                           Instrument
Consumer Research Process (Contd...)
                                                         Report the
      Data Collection             Analysis
                                                          Findings
• Data is collected     • Software can be used.   • Discussion
  from respondents/     • In qualitative          • Conclusion
  participants, etc.      research, moderator     • Recommendations
                          or test admin
                          analyzes the
                          responses received.
Next Week
Session 2: Consumer Decision Making
Reading: Chapter 4 S/K
References
•   Marsden, D. and Little, D. (1998) “Positioning Alternative Perspectives of Consumer
    Behaviour”, Journal of Marketing Management, 14, p3-28.
•   Lunn, J.A. (1974) “Consumer Decision Process Models”, in J.N. Sheth (Ed.) Models of
    Buyer Behaviour: Conceptual, Quantitative, Empirical, p34-64, Harper & Raw.