Consumer Behavior • 1. Consumer Behaviour • Based on concepts from Psychology Sociology Anthropology Marketing Economics • Why do we need to study Consumer Behaviour? Because no longer can we take the customer/consumer for granted. • Failure rates of new products introduced Out of 11000 new products introduced by 77 companies, only 56% are present 5 years later. Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that 83% failed to meet marketing objectives. • All managers must become astute analysts of consumer motivation and behaviour • Can Marketing be standardised?

Because cross - cultural styles, habits, tastes, prevents such standardisation. • Unless Managements act The more successful a firm has been in the past, the more likely is it to fail in the future. Because people tend to repeat behaviour for which they have been rewarded.

Learning Objectives When you finish this chapter, you should understand why: Perception is a three-stage process that translates raw stimuli into meaning. The design of a product today is a key driver of its success or failure. Products and commercial messages often appeal to our senses, but we won't be influenced by most of them. 2-2 Copyright © 2013 Pearson Education, Inc.

Publishing as Prentice Hall 2-11 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Sensory Systems Vision Scent Sound Touch Taste For Reflection How has your sense of touch influenced your reaction to a product? Which of your senses do you feel is most influential in your perceptions of products? 2-12 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Learning Objective 4 The concept of sensory threshold is important for marketing communications 2-13 Copyright © 2013 Pearson Education, Inc.

Publishing as Prentice Hall Sensory Thresholds The absolute threshold refers to the minimum amount of stimulation a person can detect on any given sensory channel The differential threshold refers to the ability of a sensory system to detect changes in or differences between two stimuli 2-14 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall For Reflection How much of a change would be needed in a favorite brand's price, package size, or logo would be needed for you to notice the difference? How would differences in these variables affect your purchase decisions? 2-15 Copyright © 2013 Pearson Education, Inc.

Consumer Markets and Consumer Buyer Behavior Topic Outline Model of Consumer Behavior Characteristics Affecting Consumer Behavior Types of Buying. Consumer Behavior PowerPoint Template is a free PPT template with a tree diagrams that can be used for consumer analysis and consumer behavior presentations.

Publishing as Prentice Hall Learning Objective 5 Subliminal advertising is a controversial but largely ineffective way to talk to consumers 2-16 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 2-10 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Learning Objective 3 Products and commercial messages often appeal to our senses, but because of the profusion of these messages, most won't influence us. For Reflection Imagine you are the marketing consultant for the package design of a new brand of premium chocolate What recommendations would you make? 2-9 Copyright © 2013 Pearson Education, Inc.

Publishing as Prentice Hall Learning Objective 2 The design of a product is now a key driver of its success or failure. 2-8 Copyright © 2013 Pearson Education, Inc.