Welcome to Topic 1: Introduction to Consumer Behaviour.
We are all consumers; we buy things every day. Some of our purchase decisions are well-considered, while others may be based on impulse buying. Some buying decisions may be short-lived while others will affect our lives in the future and even our families, friends, and the environment. Consumers want companies to understand their expectations, wants and needs.
In this topic, you will learn:
- What consumer behaviour is
- How consumer behaviour relates to marketing
- How consumer behaviour links to sociology, psychology, anthropology, economics, and neuroscience.
These topics relate to the Subject Learning Outcomes:
- Explain the basic psychological and sociological principles, theories and models influencing consumer behaviour.
- Discuss the current trends in consumer behaviour and apply them to the marketing mix.
Welcome to your pre-seminar learning tasks for this week. Please ensure you complete these prior to attending your scheduled seminar with your lecturer.
Click on each of the following headings to read more about what is required for each of your pre-seminar learning tasks.
Read Chapter 1 (pp. 20-34 & 36-40) of the prescribed text - Solomon, MR 2020, Consumer behavior: Buying, having, and being, 13th edn., Pearson Education Ltd.
Task: Take notes on the key points of this reading for use in the seminar.
Read the following two (2) journal articles and summarise key insights from the articles in your own words. Submit your notes to your reflective journal. You can access the reflective journal by clicking on ‘Journal’ in the navigation bar for this subject.
- Almquist, E, Senior, J & Bloch, N 2016, ‘The Elements of value’, Harvard Business Review, 4(9):47-53.
- Kumar, V 2018, 'Transformative marketing: The next 20 years', Journal of Marketing, 82(4):1-12.
Let us share a little bit about ourselves and who we are as consumers.
- Go to Topic 1: Forum activity 1 and start a new post to introduce yourself. Please share your name, where you are from and one (1) interesting fact about yourself. Also share what products you like to buy in physical stores (for example, make-up, clothes or sneakers) and products you prefer to buy online (for example, ink for printers or groceries) and WHY. Photos are welcome!
- Read through the responses and comments to say hi to your peers.
You can also navigate to the forum by clicking on 'MKT101 Subject Forum' in the navigation bar for this subject.
Read the case study, Vimalathasan, V & Putros, K, 2015, 'Beyond Meat: Changing consumers' meat preference', Richard Ivey School of Business Foundation, Version 2018-09.24. Then, answer the questions in Topic 1: Forum activity 2.
Watch the following two (2) videos:
- INSEAD 2018, Understanding consumer behaviour, from the inside out, streaming video, YouTube.
- Consumer Behavior, Chapter 1 - What is consumer behavior, streaming video, YouTube.
Question: Identify five (5) key takeouts from the videos and add these to your reflective journal. They will be required in the seminar.
Read and watch the following content.
Introduction to consumer behaviour
The world has become more transparent as information is readily available at consumers’ fingertips. Digital mobile devices allow consumers to buy and consume products anytime and anywhere. The use of technology has added complexity as consumers are increasingly influenced by information from other consumers via forums, review sites, blogs, and social networks and tend to pay less attention to traditional advertisement (print, radio, TV). Consumers are also more concerned about the environment and local communities. They want to purchase from businesses that are doing the right thing by the environment and have sustainability policies and frameworks in place.
Understanding consumers and their changing behaviours is an indispensable component of marketing strategy. The following figure summarises all components of consumer behaviours that marketers and researchers study and how they influence marketing strategies and tactics (Schiffman & Wisenblit 2019).
Studying consumer behaviour is extremely important to reach the right customer at the right time with the right information and right product to influence the consumer's choices.
What is consumer behaviour
the activities people undertake when obtaining, consuming and disposing of products and services.(Blackwell et al. 2001, p. 6)
The study of consumer behaviour is concerned with the reasons behind the why, what, when, where and how consumers make purchase decisions. It includes how consumers research and evaluate products, the decision-making process, the use of products, services, and experiences, and the disposal thereof. It also includes decisions about politicians or which charities to donate to (Schiffman & Wisenblit 2019).
The following definition for consumer behaviour looks beyond product and services to:
The totality of consumers’ decisions with respect to the acquisition, consumption and disposition of goods, services, activities, experiences, people and ideas by human decision-making units (over time).(Jacoby 1976, p. 333)
Businesses must have a clear understanding of the factors that contribute to consumer decision making to be successful in a competitive globalised world. Consumer behaviour is about the different behaviours that individuals, organisations, or groups demonstrate to research, evaluate, select, purchase, use and dispose of products, services, activities, experiences, people, and ideas that help them fulfil their needs and wants. The study of consumer behaviour seeks to gain greater insights into what, why, how, where, and when of consumer buying decisions, associated emotions and thinking processes, pre- and post-purchase evaluation processes, and how these elements and experiences influence future purchase decisions. Some purchase decisions are more involved than others. For example, purchasing an everyday household item such as bread or toilet paper is less involved than purchasing a TV, smartphone, or a holiday. Qualitative and quantitative consumer research seeks to provide the right insights into consumer behaviour so that marketers can choose the right marketing tactics (Schiffman & Wisenblit 2019).
Consumers can either be personal consumers or organisational consumers who purchase goods for their own use or for the use by someone else, that is why we distinguish between user and buyer. If the purchase is intended for personal use, the individual is often referred to as ‘end user’ or ‘ultimate consumer’. Organisational consumers consist of profit and not-for-profit organisations, institutions, and the public-sector agencies that acquire goods and services to manage their organisations (Schiffman & Wisenblit 2019).
Consumer behaviour is a process. The following figure outlines the consumption process from the consumer and the marketer’s perspective (Solomon 2020).
Consumer behaviour and its link to sociology, psychology, anthropology, economics, and neuroscience
The study of consumer behaviour is an interdisciplinary field with theories and concepts from a variety of disciplines such as economics, psychology, anthropology, neuroscience, and sociology (Solomon 2020), these are outlined in the following figure. You can find consumer researchers with training and interest in a wide range of disciplines from psychology to psychophysiology to sociology and literature and they will approach the research through their disciplinary lens.
Psychologists study mental processes, including what people think, how people learn, their basic drivers of needs, what motivates them, how they perceive products and make sense of the world (i.e., needs, personality traits, perception, learned experiences, and attitudes) (Sethna & Blythe 2019).
Sociology is the study of the development, structure, functioning, and problems of human society. Sociologists study group dynamics and behaviours of family and friend groups, class and culture, and self-image, which is predominantly derived from feedback from others. The self-image influences the cloth we buy, the video games we play, the music we listen to, the food we consume, and much more (Sethna & Blythe 2019).
Anthropology is a wide-ranging academic discipline and covers all aspects of studying what makes us human, both in the past and in the present. The socio-cultural aspects of anthropology, such as similarities or differences in race, gender, nationality, and class are highly relevant to consumer behaviour in creating an understanding of the ‘meaning of life’. In short, anthropologists compare human societies, cultures, and developments (Sethna & Blythe 2019).
Economists study demand, both micro- and macro-economics. This discipline has provided consumer behaviour theorists with various useful concepts that help explain the rational part of consumer behaviour, such as the economic choice and elasticity of demand (Sethna & Blythe 2019).
Neuroscientists study how the human brain works and how it relates to individual behaviours. Neuro-economics seeks to explain people’s economic behaviours in the context of individual decision-making, social interactions, and external factors like the market (Sethna & Blythe 2019).
The following table provides a more comprehensive view of the interdisciplinary research issues in consumer behaviour relating to magazine usage and the level at which each tackles research issues that can be characterized in terms of their focus on micro-versus macro-consumer behaviour topics (Sethna & Blythe 2019).
Disciplinary Focus | Magazine Usage Sample Research Issues |
---|---|
Experimental Psychology: product role in perception, learning, and memory processes | How specific aspects of magazines, such as their design or layout, are recognised and interpreted; which parts of a magazine people are most likely to read. |
Clinical Psychology: product role in psychological adjustment | How magazines affect readers' body images (for example, do thin models make the average person feel overweight?) |
Microeconomics/Human Ecology: product role in allocation of individual or family resources | Factors that influence the amount of money a household spends on magazines. |
Social Psychology: product role in the behaviour of individuals as members of social groups | Ways that ads in a magazine affect readers' attitudes toward the products they depict; how peer pressure influences a person's readership decisions |
Sociology: product role in social institutions and group relationships | Pattern by which magazine preferences spread through a social group (for example, a sorority) |
Macroeconomics: product role in consumers' relations with the marketplace | Effect of the price of fashion magazines and expense of items advertised during periods of high unemployment |
Semiotics/Literary Criticism: product role in the verbal and visual communication of meaning | Ways in which underlying messages communicated by models and ads in a magazine are interpreted |
Demography: product role in the measurable characteristics of a population | Effects of age, income, and marital status of a magazine's readers |
History: product role in societal changes over time | Ways in which our culture's depictions of 'femininity' and 'masculinity' in magazines have changed over time |
Cultural Anthropology: product role in a society's beliefs and practices | Ways in which fashions and models in a magazine affect readers' definitions of masculine versus feminine behaviour (for example, the role of working women, sexual taboos) |
The interdisciplinary context is as important as the input, process, and output of consumer decision-making. The ‘input’ includes four elements: segmentation and targeting implemented through the marketing mix, communications from marketers to consumers (i.e., advertising, promotions etc.), sociocultural dimensions (i.e. family, friends, peers, cultural values, ethnicity, etc.), and communications among consumers (i.e., Word-of-mouth, referrals). The ‘process’ emanates from psychological factors (i.e., study of the human mind and mental factors) and the cognitions that drive people to take actions and includes how they act, perceive, learn (i.e., motivation, personality traits, perceptions, learning, and attitudes). The ‘output’ includes purchase behaviour and post-purchase evaluation. The following figure can help you to understand the input, process, and output of consumer decision-making (Sethna & Blythe 2019).
Marketing mix
- Product
- Promotion
- Price
- Distribution
Sociocultural influences
- Reference groups
- Family
- Social class
- Culture and subculture
Communication sources
- Advertising
- Buzz agents
- Customised messages
- Social media (owned or paid for, self-generated)
- Word-of-mouth: advice and recommendations
Psychological influences
- Needs and motivations
- Personality traits
- Perception
- Attitudes
Key takeouts
Congratulations, we made it to the end of the first topic! Some key takeouts from Topic 1:
- Consumer behaviour is concerned with the why, what, when, where and how consumers make purchase decisions.
- Marketers need to be aware of product life cycles, changing environments, consumer perceptions, legislation, globalisation, technology advancements and how these impact consumer behaviour.
- Consumer behaviour is necessary for marketers to develop and sustain a competitive advantage and a strong focus on four (4) drivers including: delivering customer value, developing customer trust, increasing customer satisfaction, and achieving customer retention.
- Consumer behaviour is an interdisciplinary field and concept.
Welcome to your seminar for this topic. Your lecturer will start a video stream during your scheduled class time. You can access your scheduled class by clicking on ‘Live Sessions’ found within your navigation bar and locating the relevant day/class or by clicking on the following link and then clicking 'Join' to enter the class.
Click here to access your seminar.
The following learning tasks will be completed during the seminar with your lecturer. Should you be unable to attend, you will be able to watch the recording, which can be found via the following link or by navigating to the class through ‘Live Sessions’ via your navigation bar.
Click here to access the recording. (Please note: this will be available shortly after the live session has ended.)
In-seminar learning tasks
The in-seminar learning tasks identified below will be completed during the scheduled seminar. Your lecturer will guide you through these tasks. Click on each of the following headings to read more about the requirements for each of your in-seminar learning tasks.
As part of your pre-seminar learning activities, you have read the Vimalatasan & Putros (2015) case study and answered the questions in forum activity 2.
Please share a summary of your responses with your peers in a breakout room assigned by your lecturer during the scheduled seminar, and build on each other’s key points. In your summary, address key consumer trends that you have learned about and how these trends are disrupting the consumer-packaged goods food business. To keep track of your discussion, add a reflection in your reflective journal.
Using the notes you took when completing the following pre-seminar learning tasks, share your key insights and reflections in a group activity.
- Chapter 1 of the prescribed text - Solomon, MR 2020, Consumer behavior: Buying, having, and being, 13th edn., Pearson Education Ltd.
- Watch the video: Understanding consumer behaviour from the inside out
- Watch the video: Chapter 1 - What is consumer behavior
Your lecturer will assign you to a breakout room to reflect and identify the key take-outs from these tasks. You will enter the information in Worksheet 1. In your discussion, consider how you may apply your new knowledge to your current and future employment.
Add your clarified thoughts and reflections from this task to your reflective journal.
Welcome to your post-seminar learning tasks for this week. Please ensure you complete these after attending your scheduled seminar with your lecturer. Your lecturer will advise you if any of these are to be completed during your consultation session.
Click on each of the following headings to read more about what is required for each of your post-seminar learning tasks.
Please use specific and unique examples to explain your answers to the following questions. Post your responses in your reflective journal.
- Describe the relationship between consumer behaviour and the marketing concept.
- What is market segmentation? How is the practice of market segmentation related to the marketing concept?
- How do the 7 Ps relate to consumer behaviour?
- What is the difference between the personal consumer and the organisational consumer?
- Discuss the concepts of customer expectations, perceived value, satisfaction, and customer retention. How are they related, if at all? Is customer retention important? Why?
- How might group behaviour affect purchasing behaviour?
Prepare a list of key terms from this topic and submit to your reflective journal.
During your consultation session, in a breakout room assigned by your lecturer, start a discussion on the importance of consumer behaviour in relation to marketing planning and strategy.
In your group, discuss the following questions:
- Start by sharing some information about yourself as a consumer – in particular, about your online shopping habits.
- Why is learning important to marketers?
- Why is consumer behaviour important in relation to marketing planning and strategy?
Be prepared to present your group’s reflection and key points to the class.
If you are unable to attend this seminar, place your answers in your reflective journal.
Your lecturer will assign you to a breakout room to complete the following online quiz.
You have only ONE attempt to complete this quiz. Therefore, await your lecturer’s guidance as to when to attempt.
You will reflect on correct and incorrect answers and have the opportunity to seek clarification from your lecturer during your seminar.
If you are unable to attend the seminar, you may complete your knowledge test prior to the scheduled seminar time and submit any queries to your lecturer, who will aim to resolve them during class. This will be available to you through a recording once the seminar has finished.
Knowledge check
Complete the following five tasks. Click the arrows to navigate between the tasks.
Each week you will have a consultation session, which will be facilitated by your lecturer. You can join in and work with your peers on activities relating to this subject. These session times and activities will be communicated to you by your lecturer each week. Your lecturer will start a video stream during your scheduled class time. You can access your scheduled class by clicking on ‘Live Sessions’ found within your navigation bar and locating the relevant day/class or by clicking on the following link and then clicking 'Join' to enter the class.
Click here to access your consultation session.
Should you be unable to attend, you will be able to watch the recording, which can be found via the following link or by navigating to the class through ‘Live Sessions’ via your navigation bar.
Click here to access the recording. (Please note: this will be available shortly after the live session has ended.)
- Taufik, D, Kunz, MC & Onwezen, MC 2021, ‘Changing consumer behaviour in virtual reality: A systematic literature review’, Computers in Human Behavior Reports, 3:100093.
- Gilal, NG, Zhang, J & Gilal, FG 2018, 'Linking product design to consumer behavior: the moderating role of consumption experience', Psychology Research and Behavior Management, 11:169-185.
- Kemp, EA, Borders, AL, Anaza, NA & Johnston, WJ 2018, 'The heart in organizational buying: Marketers’ understanding of emotions and decision-making of buyers', Journal of Business & Industrial Marketing, 33(1):19–28.
References
- Almquist, E, Senior, J & Bloch, N 2016, ‘The Elements of value’, Harvard Business Review, 4(9):47-53.
- Blackwell, RD, Miniard, PW & Engel, JF 2001, Consumer behaviour, 9th edn., Mason.
- Consumer Behavior 2017, Chapter 1 - What is consumer behavior, streaming video, YouTube, https://www.youtube.com/watch?v=gtfPU6nTa9k
- Hoyer, WD, MacInnis, DJ, Pieters, R, Chan, E & Northey, G 2018, Consumer behaviour, Asia-Pacific edn., Cengage Learning.
- INSEAD 2018, Understanding consumer behaviour from the inside out, streaming video, YouTube, https://www.youtube.com/watch?v=XowaDm1GEVk
- Jacoby, J 1976, 'Consumer psychology: An octennium', Annual Review of Psychology, 27(1):331-58.
- Kumar, V 2018, ‘Transformative marketing: The next 20 years’, Journal of Marketing, 82(4):1–12.
- Schiffman, LG & Wisenblit, JL 2019, Consumer behavior, 12th edn., Pearson Education Ltd.
- Sethna Z & Blythe, J 2019, Consumer behaviour, Asia-Pacific edition, Sage Publications Ltd.
- Solomon, MR 2020, Consumer behavior: Buying, having, and being 13th edn., Pearson Education Ltd.
- Vimalathasan, V & Putros, K, 2015, Beyond Meat: Changing consumers’ meat preference, Richard Ivey School of Business Foundation, Version 2018-09.24.