consumer behaviour1

7/23/2012 1 Welcome To... MKTG7503 Consumer & Buyer Behaviour Lecture 1 I Introducing Consumer Behaviour UQ Business School Dr Nicole Hartley Introducing who… Course Co-ordinator / Lecturer: Dr Nicole Hartley Office: Colin Clark Building #39 Level 4, Room 443 Email: n.hartley@uq.edu.au [email best contact] Consultation times: By appointment ONLY You must email me to arrange.  Advanced Consumer Behaviour is offered to two cohorts this semester...  Monday 1pm – 4pm – Building 84A, Room 304  Wednesday 1pm – 4pm – Building 24, Room S402  Each lecture/seminar will involve a lecture on the designated CB topic for the week accompanied with a combination of the following:  Case study analysis  Practice-based examples/activities  Class discussions/debates  In-class presentations  Possible guest presenters. Course structure Schiffman, L., O’Cass, A., Paladino, A., D’Alessandro, S. & Bendall, D. (2011), Consumer Behaviour, 5th edition, Pearson Education. Same text as last year! Must have access to the text for the course [particularly as exam content will be drawn from this as well as your lecture notes]. Lecture slides will be available every week from Blackboard. Required text… Week Dates Lecture Topic Reading Week 1 M 23 July & W 25 July Introducing Consumer Behaviour Textbook [ch 1] Week 2 M 30 July & W 1 Aug Pre-purchase Decision Making Textbook [ch 12, 4 & 5] Week 3 M 6 Aug & W 8 Aug Purchase Decision Textbook [ch 12 & 4] Week 4 M 13 Aug & W 15 Aug NO LECTURES – DUE TO SHOW DAY HOLIDAY Week 5 M 20 Aug & W 22 Aug Post-purchase Decision Making Textbook [ch 12] Week 6 M 27 Aug & W 29 Aug Mid-semester Exam Textbook [ch 1, 4, 5 & 12] Perception & Learning Textbook [ch 4 & 5] Week 7 M 3 Sept & W 5 Sept Motivation & Personality Textbook [ch 2 & 3] Week 8 M 10 Sept & W 12 Sept Attitude & Lifestyle Textbook [ch 6, 7 & 11] Week 9 M 17 Sept & W 19 Sept Group, Social & Cultural Influences Textbook [ch 7, 9 & 10] MID-SEMESTER BREAK Week 10 M 1 Oct & W 3 Oct NO LECTURES – DUE TO QUEEN’S BIRTHDAY Week 11 M 8 Oct & W 10 Oct Project Presentations Textbook [plus other sources] Week 12 M 15 Oct & W 17 Oct Project Presentations Textbook [plus other sources] Week 13 M 22 Oct & W 24 Oct Course and Exam Review Textbook FINAL EXAMS Lecture/seminar overview Assessment Overview Three Components Mid-semester Exam – In-class [week 6] 20% CB Group Project Group Presentation – In-class [wk 11 OR 12] 35% Presentation Evaluation – email [week 12] 5% 40% Final Examination 40% Total 100% 7/23/2012 2 Mid- Semester Examination (20%)  The examination will be of 1 hour duration (no perusal).  The exam will be held in-class in the first hour of your week 6 lecture/seminar.  The mid-semester examination will be comprised of multiple choice questions.  The mid-semester examination will test your knowledge of the topics covered in weeks 1-5 inclusive (Textbook chapters 12, sections of chapters 4 & 5 and Lecture Notes). Final Examination (40%)  The examination will be of 2 hours duration (10 mins perusal).  The final examination will be comprised of possible multiple choice, short answer essay and/or case study questions. Further details of the exam structure will be made available through-out the semester.  The final examination will test your knowledge of the topics covered in weeks 6-13 inclusive as well as your comprehensive understanding of the practical application of consumer behaviour theory. Exam structure Form Groups of 5 within Lecture/Seminar Group submissions:  Group registration forms are due at the end of Week 3 by email.  CB project topic nominations are due by end of Week 5 by email.  Group presentations to be held in either Week 11 or Week 12. Individuals:  Presentation evaluation – dues for submission by Friday 21st October, end of Week 12.  A Self and Peer Evaluation Form to be submitted on the day of your presentation [only needs to be submitted if there are group issues]. CB Project – Presentation Project overview Project brief:  Your project requires you to conduct a research analysis on a contemporary CB topic. Suggested topics include:  Addictive Behaviour  Online Shopping  Recreation and Leisure Behaviour  Travel Behaviour  Giving Behaviour  Volunteering / Donating Behaviour  Be as creative as you like in determining an interesting consumer behaviour phenomenon – you are not limited to the list provided above and there are plenty of sub-behaviours to choose from within the above listed topics i.e. within Recreation and Leisure Behaviour there is Film Watching; Sport Attendance; Water Sport Activities; Attending Cultural Events etc. Project overview Project brief cont…  PLEASE NOTE though that a component of this project is to conduct consumer research on people who are engaged in the activity you are investigating. Hence please ensure that you are able to access a sample of this consumer market.  A particular topic can only be chosen by ONE group in the cohort, so your nomination for your chosen consumer topic will operate on a first in, best dressed basis! Your project topic nominations are due by the end of week 5 – but if you email early you stand a better chance of getting your first choice of topic! Project overview Project guidelines:  For this project you are investigating a specific type of consumer behaviour in the form of a mini-documentary.  As such the research component of the project is the qualitative interviews, observations and ethnographical analysis that informs the preparation and the content of your short film.  Your analysis MUST include an in-depth understanding of your consumer market based on various consumer behaviour theories. Theories you can draw upon for your analysis should be from the CB topics we cover in class. Project overview  To conduct your analysis you are required to:  Conduct primary research (via interviews, observations etc.) on your chosen market to investigate your chosen CB theories.  Draw up a storyboard for your short film. This is an overview in either words or drawn out in scenes of what your film will contain.  Film your documentary (it should be 10-15mins max) using smart phones or other filming devices that you are able to access. Editing can be performed on various software packages  A written component has to be submitted on the day of your presentation. This is to include:  A one page director’s statement (basically an abstract or overview of what your documentary is about)  A copy of your film (you can transfer this via USB on the day) 7/23/2012 3 Presentation evaluation  Individually you are also required to complete an evaluation for one [1] of the other groups’ presentations. This presentation WILL BE from a group presenting in a week different to that of your own [if you critique a group from your own presentation week, your evaluation will not be marked].  The evaluations will assess students’ a) understanding/ assessment of the contents transmitted by the presenting group and b) critique of the presentation style and overall effectiveness of the group.  Note that the evaluations will contain criteria grades as well as open-ended comments. The open-ended comments must be AT LEAST one typed page [these can be presented in bullet point format].  To be awarded a high grade for this assessment, you will be need to demonstrate your ability to critical analysis the content and presentation skills of your critiqued group. Phones: Turn them OFF and put them away. If you are receiving calls, placing calls, or text messaging, not only are you not learning, but you are interfering with your fellow students right to learn…you are paying good money to be here! Music players: All music players should be turned off Sleeping in class: I know that you might not find Marketing as exciting as I do, but your snoring will bother other students Eating in class: Understand the need to fuel up…please remember though that chomping away on chips etc can be a major distraction to other students and is a major turn off as well (!) Conversation: All conversations about non-class material should take place outside this lecture theatre and we will break regularly to facilitate this! Class Etiquette LECTURE 1 I OVERVIEW OF CONSUMER BEHAVIOUR UQ Business School Dr Nicole Hartley INTRODUCE CONSUMER BEHAVIOUR... UNDERSTAND THE IMPORTANCE OF CB AS AN INTEGRAL PART OF MARKETING. THE IMPORTANCE OF CONSUMER RESEARCH FOR FIRMS, THEIR BRANDS & CONSUMERS IMPLICATIONS OF CONSUMER BEHAVIOUR FOR MARKETING STRATEGY OVERVIEW OF CONSUMER BEHAVIOUR MODELS. Lecture 1: Overview Consumer Behaviour Copyright 2007 McGraw-Hill Australia Pty Ltd s t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Understanding consumer behaviour the easier it is to:  identify consumer needs, wants and preferences  identify market segments and target markets  design and implement a marketing mix  monitor and respond to changes The more we know about consumers… 7/23/2012 4 Consumer behaviour is product-person-situation specific Personal Characteristics Product Characteristics Consumption Situation Consumer behaviour Marketing strategy Neal, C., Quester, P. & Hawkins, D. (2002) Consumer Behaviour, Implications for Marketing Strategy, 3rd ed p5 Consumer behaviour is product-person-situation specific Consumer behaviour Marketing strategy Market segmentation Positioning Market development strategy Marketing mix decisions Consumer behaviour audit Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins How consumer influences drive marketing decisions Marketing decisions At each stage in this course you will be required to consider the importance of consumer behaviour knowledge in the development of marketing strategy. Marketing decisions are based on:  Market segmentation  Product positioning  Marketing mix Definitions of consumer behaviour  The dynamic interaction of cognition, behaviour and environmental events by which human beings conduct the exchange aspects of their lives (American Marketing Association)  A discipline dealing with how and why consumers purchase (or don’t purchase) products and services. (Neal et al.)  The behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of the products and services that they expect will satisfy their needs. (Schiffman et al.) Think Pink 7/23/2012 5 Consumer decision process Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Consumer decision process  Consumers are problem solvers Example: Buying a holiday... In a given situation the decision process involves:  Problem recognition  Information search  Evaluation and selection  Store choice and purchase  Post-purchase processes Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 1-27 Factors that determine and influence consumer lifestyles Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Overall model of consumer behaviour 29 Marketing Stimuli Other Stimuli Product Price Place Promotion Economic Technological Political Cultural Buyer’s ‘Black Box’ Buyer Characteristics Buyer Decision Process Buyer’s Responses Product Choice Brand choice Dealer choice Purchase timing Purchase amount Kotler (1997), “Marketing management: Analysis, Planning, Implementation and Control”, 9 Ed., New Jersey, Prentice Hall, p. 172 Buyer Behaviour model Decision-Process framework Demographics Cultural influences Social class influences Other influences Family influences Social group influences Personal Influences Decision Process Individual determinants External environment Motivation and involvement Information processing Learning and memory Personality and self concept Attitudes Modified Lawson, Tidwell, Rainbird, Loudon and Della Bitta, (1996), “Consumer Behaviour in Australia and New Zealand”, Sydney, McGraw Hill, p.21 7/23/2012 6 Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Output Process Input E xt e rn a l In flu e n c e Postpurchase Evaluation Purchase 1. Trial 2. Repeat purchase Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Experience Schiffman, Bednall, Cowley, O’Cass, Watson & Kanuk, (2001), “Consumer Behaviour”, 2 Ed., Sydney, Prentice Hall, p.10 Buyer Behaviour model SITUATIONS Problem Recognition Information Search Alternative Evaluation and Selection Outlet Selection and Purchases Postpurchase Processes SITUATIONS EXTERNAL INFLUENCES Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities INTERNAL INFLUENCES Perception Learning Memory Motives Personality Emotions Attitudes SELF-CONCEPT and LIFESTYLE Needs Desires Experiences and Acquisitions Experiences and Acquisitions Hawkins, Best & Coney (2004), “Consumer Behaviour: Building Marketing Strategy”, McGraw Hill, US, pg 37 Buyer Behaviour model Stimuli • Marketer dominated • Other External Search Exposure Attention Comprehension Acceptance Retention Memory Pre-Purchase Alternative Evaluation Search Internal Search Need Recognition Divestment Dissatisfaction Satisfaction Post-Purchase Alternative Evaluation Consumption Purchase Individual Differences • Consumer Resources • Motivation & involvement • Knowledge • Attitudes • Personality, Values & Lifestyles Stimuli • Marketer dominated • Other Blackwell, Miniard & Engel, (2001), “Consumer Behavior”, 9 Ed., USA, Harcourt College Publishers, p. 83 Consumer Decision Process A simplified model of consumer decision making 2011, Pearson Australia, Schiffman et al, Consumer Behaviour, 5th Edition. Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Overall model of consumer behaviour Reasons for the study of CB…  For marketing strategy  Consumer analysis, the foundation of marketing management, assists in:  The design of the marketing mix  Segmentation of the market  Product positioning and differentiation  Environmental analysis  Development of market research studies.  For the development of public policy  Personal/other reasons:  Enable individuals to be more effective consumers  Provide knowledge of overall human behaviour  Provide theories to guide the thinking process Adapted from Mowen, J & Minor, M 1998, Consumer Behavior, 5th ed, p8 7/23/2012 7 Aim is to drive successful relationships  Providing customer value  Customer satisfaction  Building customer trust  Customer retention What is customer value? Customer’s perceived benefits (economic, functional and psychological) Customer’s resources used (money, time, effort and psychological) Developing a value proposition is central. Go to http://content.dell.com/au/en/corp/about-dell.aspx and read Dell’s value proposition 2011, Pearson Australia, Schiffman et al, Consumer Behaviour, 5th Edition. Benefits of customer retention Loyal customers Buy more products Are less price sensitive Pay less attention to competitor's advertising Spread positive word-of-mouth Are cheaper to service 2011, Pearson Australia, Schiffman et al, Consumer Behaviour, 5th Edition. CB insight achieved through research  To gain a better understanding of consumption behaviour  To identify and locate appropriate target markets, and to understand their media habits  To identify both felt and unfelt (latent) needs  To determine how consumers perceive products, brands and stores  Identify attitudes before and after promotional campaigns  Identify how and why they make their consumption decisions 2011, Pearson Australia, Schiffman et al, Consumer Behaviour, 5th Edition. Types of consumer research 2011, Pearson Australia, Schiffman et al, Consumer Behaviour, 5th Edition. Primary research Qualitative Focus groups In depth interviews Quantitative Observational research Experimentation Survey research Combination Uses both qualitative and quantitative methods Course structure for the semester  Consumer decision process  Internal influences  External influences  Special applications of CB [i.e. Organisational buying, Consumers and society] 7/23/2012 8 For next week…  Take a look at Consumer & Buyer Behaviour MKTG7503 on Blackboard  Start forming groups for your group assessment  Familarise yourself with Chapters 12, 4 & 5 from the text