Welcome all of you dear students

Course Name: Consumer Behavior

Course Code: 424

Md. Alal Uddin

Lecturer
Department of Marketing
Islamic University, Kushtia
 Session No: 01
Week: 01
Today’s discussions
 Overview of Consumer Behavior in Bangladesh
 Development of Marketing Concepts and the
Discipline of CB
 Why study CB
 Characteristics of CB
 Factors affecting CB
 Multi-disciplinary nature of CB
 Consumer decision making process
 Origin and strategic applications
Overview of Consumer Behavior in Bangladesh
 Optimistic
 Value foreign products
 Jumping to digital bandwagon
 Purchase with cash and shop at traditional mom and pop outlet
 Bangladeshi consumers class is swelling and dispersing
 Wary about debt
 Consider brand followed by price then quality (strong Brand
identification)
 A willingness for pay to good qualities
 Family Orientation-
 A heavy reliance on traditional channel (Mudhi dokan)
 Approaches for Winning in Bangladesh
 Stress Quality
 Conquer the debt dilemma
 Establish brand
 Educate consumers
 Develop creative ways to serve traditional channels
 Build Mobile centric platform
 What is Consumer Behavior?
The behavior that consumers display in searching for, purchasing,
using, evaluating, and disposing of products and services that they
expect will satisfy their needs.
The American Marketing Association defines Consumer Behavior as
“the dynamic interaction of affect and cognition, behavior and the
environment by which human beings conduct the exchange aspects of
their lives”.
In other words, CB involves the thoughts and feelings people
experience and the actions they perform in consumption processes.
It also includes all the things in the environment that influence these
thoughts, feelings, and actions.
It is important to recognize from this definition that consumer
behaviour is dynamic, involves interactions, and involves exchanges.
Consumer behavior: the study of the processes involved when
individuals or groups select, purchase, use, or dispose of products,
services, ideas, or experiences to satisfy needs and desires.
 Consumer Market vs Business Market
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.
Organizational Consumer
A business, government agency, or other institution (profit or
nonprofit) that buys the goods, services, and/or equipment
necessary for the organization to function.
 Changes in the Business Environment
 Increased consumer power
 Access to information
 More products and services
 Interactive and instant exchanges
 Access to customer patterns and preferences
 Evolution to other -Web connection
– HDTV
– Mobile phones
Development of the Marketing Concept

Product Concept
Selling Concept
Marketing Concept
Societal Concept
Holistic Concept
Sustainable Concept
Sustainable marketing means promoting environmentally and
socially responsible goods, services, or practices.
Sustainable marketing is an approach to marketing that
considers the environmental and social impact of a company's
products or services. It takes into account the needs of both the
present and future generations. In some cases, sustainability
marketing can be thought of as a marketing strategy put into
place to counter criticisms that companies create pollution and
mislead customers. Sustainable marketing includes similar
marketing approaches known as green marketing or eco-
marketing but actually is broader in its overall scope. Green
marketing focuses on the environmental impact of a company's
products or services, while sustainable marketing also attempts to
consider the social and economic impacts.
 Implementing the Marketing Concept
 Consumer Research
 Segmentation: process of dividing the market into subsets of
consumers with common needs or characteristics
 Targeting: selecting one ore more of the segments to pursue
 Positioning: developing a distinct image for the product in the
mind of the consumer
Successful Positioning
 Communicating the benefits of the product, rather than its
features
 Communicating a Unique Selling Proposition (USP)for the
product
 Digital Revolution in the Marketplace
 Allows customization of products, services, and promotional
messages like never before
 Enhances relationships with customers more effectively and
efficiently
 Has increased the power of customers and given them access to
more information
 The exchange between consumers and marketers has become
more interactive
 May affect the way marketing is done
Changes brought on by the digital revolution
 Changes in segmentation strategies
 Re-evaluation of promotional budgets
– reduced impact of television?
– More internet-based promotion?
 Integrated marketing becomes critical
– Using off-line promotions to drive consumers to company’s
website (and vice-a-versa)
 Revamping distribution systems
– Direct distribution becomes more of an option
 Pricing methods may need to be re-evaluated
– Comparison shopping made easier
 Consumer research methods may change
– How do you measure web-based promotions?
 Strategic Applications/ Roles of CB in Marketing Strategy/Why
study consumer behaviour?
• Understanding consumer behaviour will help you become better
marketers as it is the foundation for
 Segmenting markets
 Positioning products
 Developing an appropriate marketing
 Knowledge of consumer behaviour is essential for non-profit
organizations
– Donors, users, volunteers, general public, government
 Public service initiatives have to be based on an understanding of
consumer behaviour
– Most government initiatives (e.g., anti-smoking campaigns)
need a knowledge of consumer behaviour to succeed
 Better understanding of our own consumption behaviour
 Characteristics of CB
 Learned behavior: repetition, work, habit, tanning, experiences,
behavior.
 Motivational behavior: market stimulus----objective----customer
response.
 Combination of various activities: planning, decision, activities, and
evaluation.
 Mental process: combination of internal and external factors is
difficult.
 Different roles: same customer plays different roles in different
situation.
 Influence internal factors: perception, emotion, feeling, attitude,
personality, learning.
 Influence external factors: culture, beliefs, norms, values, rules.
 Varied behavior: differ from one person to another or customer to
customer
 Characteristics of CB
 Maintain sequence: focus most importance issue first then next
important.
 Goal oriented: relates with buying objectives, hungry baby and
crying.
 Same cause different behavior: we overcome our hungry by different
foods
 Same behavior different cause: MBA education for job, promotion,
status or other.
CB as Multi-Disciplinary/ Interdisciplinary in Nature
Consumer behavior was a new field of study in the mid to late 1960s. It
has no bright past history. The new discipline borrowed heavily from
concepts developed in other scientific disciplines such as:
1. Psychology: Psychology is the study of individual. It includes the
study of motivation, perceptions, attitudes, personality, learning,
feeling, emotions, intelligence and memory patterns. All these factors
are integral to understanding of consumer behavior.
2. Sociology: Sociology is the study of groups, group behavior, the
actions of individuals in group – often differ from the actions of
individuals operating alone. The influence of group membership,
family structure and social classes on consumer behavior are all
relevant to the study of consumer segments in the marketplace.
3. Social Psychology: Social psychology is an amalgam of sociology and
psychology. It is the study of how individual operates in a group. How
consumers are influenced by peers group, reference groups, their
families, and opinion leaders.
 CB as Multi-Disciplinary/ Interdisciplinary in Nature

4. Cultural anthropology: The study do human beings in society are

the study cultural anthropology. It includes core beliefs, culture,
subculture, values, customs, etc.
5. Economics: An important component of the study of economics is
the study of consumers; how they spend their funds, how they evaluate
alternatives, how they make decision. It includes consumption, income,
savings, investment, etc.
6. Statistics: An important issue is consumer analysis. It includes
market study, demand analysis etc. Pre-purchase, post purchase and
motivation research is the mainly depends on it.
7. Marketing: ‘Consumer is the king’ – to satisfy the consumers
markets have to formulate effective marketing strategy – product, price,
place & promotion.
 “Consumer behavior is Dynamic
• “Consumer behavior is dynamic, involves interactions and involves
transactions”
• The behavior of people is not static. Because this behavior depends
on some factors. These environmental factors changes so as the
consumer behavior.
• Consumer behavior involves interactions among people’s thinking,
feelings, and actions, and the environment. Consumer behavior is a
social behavior. Consumer behavior depends on society’s changes.
• Changes in society’s norms, values, beliefs etc. have great impact on
Consumer behavior. As a result total consumption patterns changes,
• That means environmental changes affects society, society’s
changes affects Consumer behavior.
Dynamic CB and Marketing Strategy
 External Influence
Firm’s Marketing Efforts Sociocultural Environment
1. Product 1. Family
2. Informal sources
Input 2. Promotion 3. Other noncommercial sources
3. Price 4. Social class
4. Channels of distribution 5. Subculture and culture
Consumer Decision Making

Psychological Field
Need 1. Motivation
Recognition 2. Perception
3. Learning
Prepurchase 4. Personality
Process
Search 5. Attitudes
Evaluation of
Alternatives Experience

Purchase Figure 1-1:

Post-Decision
Behavior

1. Trial
2. Repeat purchase
A Model of
Output
Consumer
Postpurchase Evaluation
Decision
Making
 Any Comments or
Questions?

Thank You For Your Cooperation