Introduction to Consumer Behaviour and Consumer Research Process

Transcription

1 Study Unit 1 -Part 1 Introduction to Consumer Behaviour and Consumer Research Process Introduction In this presentation, you will learn: Introduction to Consumer Behaviour Consumer Research Process

2 Consumer Behaviour The behaviourthat consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs Two Categories of Consumer Behaviour Personal Consumer The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend Organisational Consumer A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organisationto function Consumer Behaviour and Business Success One of the determinants of business success is how well a marketer understands consumer behaviour What they want What they think about How they spend their disposable income and time How they plan for future needs Who they defer to (influencers) as an individual and as a member of a group How they make purchasing decisions

3 How is Consumer BehaviourRelated to the Marketing Concept? Marketers profitability depends on their ability to satisfy the needs and wants of consumers Predicting consumer behaviour through consumer research is a way to reduce uncertainty Strategies in line with the marketing concept can then be formulated Successful Relationships Increase customer value Customer Perceived Valueis defined as the ratio between the customer s perceived benefits and the resources used to obtain those benefits Perceived value is relative and subjective Developing a value proposition is critical

4 Successful Relationships Achieve high levels of customer satisfaction The individual's perception of the performance of the product or service in relation to his or her expectations Customer groups based on loyalty include: loyalists (continue to consume the product) apostles (provide positive WoM) defectors (move to the competition) terrorists (spread negative WoM) hostages (stay with the company but very unhappy) mercenaries (satisfied but not loyal) Successful Relationships Invest on building customer trust Trust is the foundation for maintaining a long-standing relationship with customers

5 Successful Relationships Secure high customer retention The objective of providing value is to retain highly satisfied customers Benefits of loyal customers They buy more products They are less price sensitive Servicing them is cheaper They spread positive word of mouth Customer Profitability-Focused Marketing Tracks the costs and revenues of individual consumers Categorises them into tiers based on consumption behaviour A customer pyramid groups customers into four tiers Platinum: Heavy product users; they are not price-sensitive, and are loyal to a company Gold: Heavy product users, but are also pricesensitive Iron: Very likely to switch brands Lead: This group occupies much of a firm s time and effort

6 Impact of New Technologies on Marketing Strategies Marketers More products and services through customisation Instantaneous exchanges Collect and analyse data Consumers Power Information Computers, smart phones, PDA, GPS, smart TV Revisiting the Consumer Research Process Marketers must understand customers to design effective: Marketing strategies Products Marketing communication messages

7 Consumer Research Process Develop research objectives Collect secondary data Design primary research Qualitative and quantitative research methods Sampling plan Data collection Data analysis Report findings Qualitative Research Qualitative Research Depth Interviews Focus Groups Projective Techniques Metaphor Analysis Chapter Two Slide

8 Qualitative Research Methods Projective techniques Research procedures designed to identify consumers subconscious feelings and underlying motivations A variety of disguised tests Some established techniques are: Word associations Sentence completions Photo/visuals for story telling Role playing Qualitative Research Methods Metaphor Analysis Based on belief that metaphors are the most basic method of thought and communication Examples include pictures, sound, music, gestures, etc.

9 Quantitative Research Quantitative Research Observation Experimentation Survey questionnaires Chapter Two Slide Quantitative Research Methods Observational Research To gain in-depth understanding of relationship between people and products by watching them buying and using products Better understand what the product represents Uses mechanical or electronic device to record behaviour or response Experimentation Can be used to test the relative sales appeal of many types of variables An experiment is usually controlled with only some variables manipulated Test markets are conducted on a single market area Experimentation can be conducted in laboratories or in the field

10 Attitude Scales in Survey Questionnaires Figure 2.7 (page 62) Likert scales Semantic differential scales Asked to agree or disagree with a statement Easy to prepare & interpret Simple for consumers Includes bipolar adjectives Relatively easy to construct and administer Behaviourintention scales Measures likelihood consumers will act a certain way Easy to construct and administer Rank-order scales Items ranked in order of preference in terms of some criteria Quantitative Research Data Collection Methods Mail Telephone Personal Interview Online Cost Low Moderate High Low Speed Slow Immediate Slow Fast Response rate Geographic flexibility Interviewer bias Interviewer Supervision Low Moderate High Self-selected Excellent Good Difficult Excellent N/A Moderate Problematic N/A N/A Easy Difficult N/A Copyright 2010 Pearson Education, Inc. Chapter Two Slide

11 Summary In this presentation you have learned: The study of consumer behaviourenables marketing managers to understand and predict the behavioursof consumers in the marketplace. The consumer research process Reflection Question A manufacturer of a new product for whitening teeth would like to investigate the effects of package design and label information on consumers perceptions of the product and their intentions to buy it. Would you advise the manufacturer to use observational research, experimentation, or a survey? Explain your choice.