Consumer behaviour: Summary
Lecture 1: Introduction to the course
Chapter 1: Introduction to consumer behaviour
1. What is consumer behaviour?
1.1 DEFINITION
> Consumer behaviour: It is the study of the processes involved when individuals search, compare,
purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and desires.
- What would motivate a person to buy a car?
- Why do people keep smoking?
- Why do people buy single use coffee cups?
- What would persuade people to donate blood?
Consumer behaviour is an interdisciplinary science:
1
,1.2 CONSUMER VERSUS SHOPPER AND CONSUMERS’ BUYING ROLES
> Shopper: A shopper is someone who is engaged in the process of searching for and selecting products or
services. This term focuses on the buying journey, from the initial search and consideration to the act of
purchasing. Shoppers may not necessarily be the end-users or consumers of the product. For example, a
parent buying toys for their child is the shopper, not the consumer.
> Consumer: A consumer is an individual who ultimately uses or consumes the product or service. This
term emphasises the end-use or consumption of what is bought. The consumer's experience with the
product or service can influence future buying decisions and brand loyalty. In the earlier example, the
child who plays with the toy is the consumer.
What are the consumers’ buying roles:
- Initiator (initiates the idea)
- Gatekeeper (controls access)
- Decider (compares and evaluates)
- Buyer (actual purchase)
- User (consumes products, services, experiences, disposes)
- Influencer (influences)
For example: Whiskas advertising “90% of cats wish that they could do the shopping.”
1.3 CONSUMER VERSUS SHOPPERS NEEDS
The consumers’ needs are requirements that I need fulfilled by the “products” I buy for me and my family
(e.g. healthy, durable, filling, tasty) whereas the shoppers’ needs are requirement that I need to be fulfilled
as part of the shopping process (e.g variety, value, convenience). In sum, the consumer is concerned with
the usage and benefits of the product, while the shopper is concerned with the purchasing experience.
1.4 CONSUMER BEHAVIOUR AS A PROCESS
- Pre-purchase: How do consumers decide that they need a product or a service? What are the best
information sources to learn more about alternative choices?
- Purchase: How do consumers experience acquiring a product or service? What does the purchase say
about the consumer?
- Post-purchase: Does the product perform its intended function? How is the product eventually disposed
of, and what are the environmental consequences of this act?
What determines that one person buys one phone instead of another? The decision of a person to buy one
phone over another can indeed be influenced by a combination of factors that are part of the
product/marketing mix, often referred to as the organisational influences which includes the price,
attributes, quality, design, availability, brand image,…
2
,1.5 CONSUMER’S SUBJECTIVE INFLUENCE AND SITUATIONAL INFLUENCE
SUBJECTIVE SITUATIONAL
Personal influences (demographics, personal Product (attributes, innovation, design,…)
preferences, needs, past experiences)
Psychological influences (motivation, perception, Place (retail, sales channels)
beliefs, attitudes)
Social influences (group dynamic, family, friends, social Price (pricing strategy)
media, peer pressure and recommendations)
Cultural influences (cultural norms, values, social class) Promotion (branding, image, colour, advertising)
1.6 CONSUMER’S IMPACT ON MARKETING STRATEGIES
“There is only one boss. The customer. And he can fire everyone in the company from the chairman on
down, simply by spending his money somewhere else” - Sam Walton, CEO of Walmart
A brand can therefore either the selling concept (push) or the marketing concept (pull):
> Selling Concept (Push strategy): It operates on the principle
that products must be pushed onto consumers. It starts with the
factory as the origin point and focuses on the company's
existing products. The means to achieve sales is through
aggressive selling and promotion. The end goal is to make
profits through high sales volume. This strategy doesn't
necessarily consider consumer needs and desires; instead, it
relies on hard-selling techniques to move products into the market. The push strategy is more about
creating a demand for a product through selling and promotion.
> Marketing Concept (Pull strategy): It begins with the market,
specifically, the needs and wants of consumers. It asks what the
customer wants to buy, not what the company wants to sell.
The focus is on meeting consumer needs through integrated
marketing, which ensures that all aspects of marketing
communication such as advertising, sales promotion, public
relations, and direct marketing are combined cohesively. By
focusing on customer needs and satisfying them, profits are made through customer satisfaction and
loyalty. The pull strategy is about creating a product based on the demand of the market.
True marketing starts with the customer. His realities, his needs, his values. It does not ask «What do we
want to sell?» but rather «What does the costumer want to buy? - Peter Drucker
1.7 MARKETING SEGMENTATION
> Marketing segmentation: It is the process of dividing the mass market into subsets of consumers who
share common needs, characteristics and behaviours.
3
, 1. Psychographic segmentation (Most important)
Categorisation of people is based on their lifestyle, in combination with measures of attitudes, beliefs and
personality. While demographic information focuses on WHO buys the product, psychographic
researchers WHY people buy the product.
-> Lifestyles, attitudes, interests, beliefs, emotions, values and aspirations
2. Behaviour segmentation (Most important)
Exploring groups, audiences and consumers by their actions and behaviours. You look at WHAT the
consumer does.
-> Purchasing behaviour, usage behaviour, benefit sought, customer satisfaction and customer loyalty.
3. Demographic and geographic segmentation
> Demographic Segmentation: It is the process of dividing a market into subgroups based on demographic
factors such as age, gender, income, and education. It helps marketers tailor their strategies to more
precisely match the needs and wants of specific consumer groups.
> Geographic Segmentation: This refers to dividing a target market into geographic units, such as
countries, cities, or neighbourhoods, allowing for marketing efforts to be localised and aligned with the
unique characteristics and preferences of consumers in different locations.
2. Why should we study consumer behaviour?
2.1 VALUE DISCIPLINES
1. Treacy and Wiersema
> Customer Intimacy: This is a business strategy
that prioritises personalised service and close
relationships with customers. Companies that
focus on customer intimacy strive to provide the
best total solution to their customers' needs, often
by tailoring their offerings to individual customer
requirements and building long-term
relationships.
> Operational Excellence: Companies that focus on operational excellence seek to lead the market by
providing their products or services at the lowest total cost. They aim for efficiency, streamlined
operations, and a reliable, no-frills experience that provides value through cost leadership and
convenience.
> Product Leadership: This discipline focuses on delivering the best product by committing to continuous
innovation and creativity. Companies that excel in product leadership consistently bring cutting-edge,
market-leading products to market rapidly, staying ahead of the competition through innovation.
4
Lecture 1: Introduction to the course
Chapter 1: Introduction to consumer behaviour
1. What is consumer behaviour?
1.1 DEFINITION
> Consumer behaviour: It is the study of the processes involved when individuals search, compare,
purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and desires.
- What would motivate a person to buy a car?
- Why do people keep smoking?
- Why do people buy single use coffee cups?
- What would persuade people to donate blood?
Consumer behaviour is an interdisciplinary science:
1
,1.2 CONSUMER VERSUS SHOPPER AND CONSUMERS’ BUYING ROLES
> Shopper: A shopper is someone who is engaged in the process of searching for and selecting products or
services. This term focuses on the buying journey, from the initial search and consideration to the act of
purchasing. Shoppers may not necessarily be the end-users or consumers of the product. For example, a
parent buying toys for their child is the shopper, not the consumer.
> Consumer: A consumer is an individual who ultimately uses or consumes the product or service. This
term emphasises the end-use or consumption of what is bought. The consumer's experience with the
product or service can influence future buying decisions and brand loyalty. In the earlier example, the
child who plays with the toy is the consumer.
What are the consumers’ buying roles:
- Initiator (initiates the idea)
- Gatekeeper (controls access)
- Decider (compares and evaluates)
- Buyer (actual purchase)
- User (consumes products, services, experiences, disposes)
- Influencer (influences)
For example: Whiskas advertising “90% of cats wish that they could do the shopping.”
1.3 CONSUMER VERSUS SHOPPERS NEEDS
The consumers’ needs are requirements that I need fulfilled by the “products” I buy for me and my family
(e.g. healthy, durable, filling, tasty) whereas the shoppers’ needs are requirement that I need to be fulfilled
as part of the shopping process (e.g variety, value, convenience). In sum, the consumer is concerned with
the usage and benefits of the product, while the shopper is concerned with the purchasing experience.
1.4 CONSUMER BEHAVIOUR AS A PROCESS
- Pre-purchase: How do consumers decide that they need a product or a service? What are the best
information sources to learn more about alternative choices?
- Purchase: How do consumers experience acquiring a product or service? What does the purchase say
about the consumer?
- Post-purchase: Does the product perform its intended function? How is the product eventually disposed
of, and what are the environmental consequences of this act?
What determines that one person buys one phone instead of another? The decision of a person to buy one
phone over another can indeed be influenced by a combination of factors that are part of the
product/marketing mix, often referred to as the organisational influences which includes the price,
attributes, quality, design, availability, brand image,…
2
,1.5 CONSUMER’S SUBJECTIVE INFLUENCE AND SITUATIONAL INFLUENCE
SUBJECTIVE SITUATIONAL
Personal influences (demographics, personal Product (attributes, innovation, design,…)
preferences, needs, past experiences)
Psychological influences (motivation, perception, Place (retail, sales channels)
beliefs, attitudes)
Social influences (group dynamic, family, friends, social Price (pricing strategy)
media, peer pressure and recommendations)
Cultural influences (cultural norms, values, social class) Promotion (branding, image, colour, advertising)
1.6 CONSUMER’S IMPACT ON MARKETING STRATEGIES
“There is only one boss. The customer. And he can fire everyone in the company from the chairman on
down, simply by spending his money somewhere else” - Sam Walton, CEO of Walmart
A brand can therefore either the selling concept (push) or the marketing concept (pull):
> Selling Concept (Push strategy): It operates on the principle
that products must be pushed onto consumers. It starts with the
factory as the origin point and focuses on the company's
existing products. The means to achieve sales is through
aggressive selling and promotion. The end goal is to make
profits through high sales volume. This strategy doesn't
necessarily consider consumer needs and desires; instead, it
relies on hard-selling techniques to move products into the market. The push strategy is more about
creating a demand for a product through selling and promotion.
> Marketing Concept (Pull strategy): It begins with the market,
specifically, the needs and wants of consumers. It asks what the
customer wants to buy, not what the company wants to sell.
The focus is on meeting consumer needs through integrated
marketing, which ensures that all aspects of marketing
communication such as advertising, sales promotion, public
relations, and direct marketing are combined cohesively. By
focusing on customer needs and satisfying them, profits are made through customer satisfaction and
loyalty. The pull strategy is about creating a product based on the demand of the market.
True marketing starts with the customer. His realities, his needs, his values. It does not ask «What do we
want to sell?» but rather «What does the costumer want to buy? - Peter Drucker
1.7 MARKETING SEGMENTATION
> Marketing segmentation: It is the process of dividing the mass market into subsets of consumers who
share common needs, characteristics and behaviours.
3
, 1. Psychographic segmentation (Most important)
Categorisation of people is based on their lifestyle, in combination with measures of attitudes, beliefs and
personality. While demographic information focuses on WHO buys the product, psychographic
researchers WHY people buy the product.
-> Lifestyles, attitudes, interests, beliefs, emotions, values and aspirations
2. Behaviour segmentation (Most important)
Exploring groups, audiences and consumers by their actions and behaviours. You look at WHAT the
consumer does.
-> Purchasing behaviour, usage behaviour, benefit sought, customer satisfaction and customer loyalty.
3. Demographic and geographic segmentation
> Demographic Segmentation: It is the process of dividing a market into subgroups based on demographic
factors such as age, gender, income, and education. It helps marketers tailor their strategies to more
precisely match the needs and wants of specific consumer groups.
> Geographic Segmentation: This refers to dividing a target market into geographic units, such as
countries, cities, or neighbourhoods, allowing for marketing efforts to be localised and aligned with the
unique characteristics and preferences of consumers in different locations.
2. Why should we study consumer behaviour?
2.1 VALUE DISCIPLINES
1. Treacy and Wiersema
> Customer Intimacy: This is a business strategy
that prioritises personalised service and close
relationships with customers. Companies that
focus on customer intimacy strive to provide the
best total solution to their customers' needs, often
by tailoring their offerings to individual customer
requirements and building long-term
relationships.
> Operational Excellence: Companies that focus on operational excellence seek to lead the market by
providing their products or services at the lowest total cost. They aim for efficiency, streamlined
operations, and a reliable, no-frills experience that provides value through cost leadership and
convenience.
> Product Leadership: This discipline focuses on delivering the best product by committing to continuous
innovation and creativity. Companies that excel in product leadership consistently bring cutting-edge,
market-leading products to market rapidly, staying ahead of the competition through innovation.
4
