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Chapter 1-Buying, Having and Being

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ĐẠI HỌC FPT CẦN THƠ

Chapter 1: Buying, Having and Being:


An Introduction to Consumer Behavior

MKT201- CONSUMER BEHAVIOR


Learning Objectives

• Consumer behavior is a process.


1

• Marketers have to understand the wants and needs of


2 different consumer segments.

• Our choices as consumers relate in powerful ways to


3 the rest of our lives.

• Our motivations to consume are complex and varied.


4

Chapter 1: Buying, Having and Being- DieuTT5 3


Learning Objectives

• Technology and culture create a new “always on”


5 consumer.

• Many different types of specialists study consumer


6 behavior.

• There are differing perspectives regarding how and


what we should understand about consumer behavior.
7

Chapter 1: Buying, Having and Being- DieuTT5 4


Learning Objective 1

Consumer behavior is
a process.

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Consumer Behavior: People in the
Marketplace
The average consumer can be classified and
characterized based on:
Demographics (e.g. age, gender, income, occupation)
Psychographics (lifestyle and personality).
The average consumer’s purchase decisions are heavily
influenced by the opinions and behaviors of their family,
peers, and acquaintances.

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People in the Marketplace

The growth of the Web has created thousands of online


consumption communities where members share
opinions and product recommendations.

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Discussion

List some values of the American that you know.


Independence
Privacy
Directness
Equality
...

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People in the Marketplace

As members of a large society, U.S. consumers share


certain cultural values or strongly held beliefs about the
way the world should be structured.
Subcultures, or smaller groups within the culture, also
share values (e.g. Hispanics gốc Tây Ban Nha, Midwesterners
Trung Tây).

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Market segmentation

The use of market segmentation strategies may be used


to target a brand to only specific groups of consumers
rather than to everybody.

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People in the marketplace

When a product succeeds in satisfying a consumer’s


specific needs or desires it may be rewarded with many
years of brand loyalty, a bond between product and
consumer that is difficult for competitors to break.

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Chapter 1: Buying, Having and Being- DieuTT5 13
What is Consumer Behavior?

The study of the processes involved when individuals or


groups select, purchase, use, or dispose of (tùy ý sử
dụng) products, services, ideas, or experiences to satisfy
needs and desires.

Chapter 1: Buying, Having and Being- DieuTT5 1-14


Buyer Behavior

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Consumer behavior is a process

Most marketers recognize that consumer behavior is an


ongoing process, not merely what happens at the moment a
consumer hands over money or a credit card and in turn
receives some good or service (buyer behavior).
The exchange (trao đổi)—a transaction (giao dịch) where two or
more organizations or people give and receive something of
value—is an integral part of marketing.
However, the expanded view of consumer behavior
emphasizes the entire consumption process. This view
includes issues that influence the consumer before, during,
and after a purchase.

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Stages in the Consumption Process

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Consumer???

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Consumer behavior involves many
different actors
A consumer is a person who identifies a need or desire,
makes a purchase, and then disposes of the product
during the three stages in the consumption process.
The purchaser and user of a product might not be the
same person. A separate person might be an influencer.
This person provides recommendations for or against
certain products without actually buying or using them.
Consumers may be organizations or groups (in which
one person may make the decision for the group or a
large group of people may make purchase decisions).

Chapter 1: Buying, Having and Being- DieuTT5 19


Learning Objective 2

Marketers have to understand the wants and needs


of different consumer segments.

Chapter 1: Buying, Having and Being- DieuTT5 1-21


Consumers Are Different! How We Divide
Them Up
The process of market segmentation identifies groups
of consumers who are similar to one another in one or
more ways and then devises strategies that appeal to
one or more groups. There are many ways to segment a
market.
Companies can define market segments by identifying their
most loyal, core customers or heavy users. Marketers use the
80/20 rule as a rule of thumb, where 20% of users account for
80% of sales.
Demographics are statistics that measure observable aspects
of a population, such as birth rate, age distribution, and
income.

Chapter 1: Buying, Having and Being- DieuTT5 22


Segmenting Consumers: Demographics

Demographics:
Age
Gender
Family structure:
Young bachelors: đàn ông độc thân
Newlyweds: mới cưới
Families with young children
Single-parent households
Social class/income: same social class approximately equal in terms of
income and social standing in the community.
Race/ethnicity
Geography

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Lifestyles

AIOs=Activities, Interests, Opinions

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Segmenting by Behavior

Relationship marketing occurs


when a company makes an effort to
interact with customers on a
regular basis, giving customers
reasons to maintain a bond with
the company over time.
Database marketing involves
tracking consumers’ buying habits
very closely and creating products
and messages tailored precisely to
people’s wants and needs based on
this information.

Chapter 1: Buying, Having and Being- DieuTT5 1-28


Chapter 1: Buying, Having and Being- DieuTT5 29
Big Data

1 petabyte = 1,000,000 gigabytes


We are creating 1 petabyte of data in every 11
seconds, equivalent to a HD quality video lasting 13
years.

1,000,000
(Sep/2013, Intel)
https://www.brandsvietnam.com/tieudiem/3311-Big-
Data-Khai-niem-khai-thac-xu-ly-va-ung-dung-trong-
marketing

Chapter 1: Buying, Having and Being- DieuTT5 30


Learning Objective 3

Our choices as consumers relate in powerful ways


to the rest of our lives.

Chapter 1: Buying, Having and Being- DieuTT5 1-31


Popular Culture

Music
Movies Marketers influence
preferences for movie and
Sports
music heroes, fashions,
Books food, and decorating
Celebrities choices.
Entertainment

Chapter 1: Buying, Having and Being- DieuTT5 1-32


All the world’s a stage

Role theory takes the view that much of consumer


behavior resembles actions in a play.
Consumers have roles and they may alter their
consumption decisions depending upon the role being
played at the time.

Chapter 1: Buying, Having and Being- DieuTT5 34


Consumer-Brand Relationships

People may have various relationships with a product:


Self-concept attachment—the product helps to
establish the user’s identity.
Nostalgic attachment—the product serves as a link with
a past self.
Interdependence—the product is a part of the user’s
daily routine.
Love—the product elicits emotional bonds of warmth,
passion, or other strong emotion.

Chapter 1: Buying, Having and Being- DieuTT5 1-37


Learning Objective 4

Our motivations to consume are complex and


varied.

Chapter 1: Buying, Having and Being- DieuTT5 1-40


Chapter 1: Buying, Having and Being- DieuTT5 41
What does it mean to consume?

A fundamental premise (tiền đề) of consumer behavior is


that people often buy products not for what they do,
but for what they mean.
People, in general, will choose the brand that has an
image (or even a personality) that is consistent with his
or her underlying needs.

Chapter 1: Buying, Having and Being- DieuTT5 42


What Do We Need – Really?

A recent survey has revealed that:


Happiness was linked to being a taker rather than a
giver; whereas meaningfulness went with being a giver
rather than a taker.
Respondents who reported higher levels of worry, stress
and anxiety were less happy but had more meaningful
lives.
Happiness without meaning characterizes a relatively
shallow, self-absorbed or even selfish life.

Chapter 1: Buying, Having and Being- DieuTT5 43


A happy life vs a meaningful life

What is the difference between needing something and


wanting something?

Chapter 1: Buying, Having and Being- DieuTT5 44


Motivation

Motivation refers to the processes that lead people to


behave as they do.
The need creates a state of tension that drives the
consumer to attempt to reduce or eliminate it.
A utilitarian need emphasizes objective, tangible
attributes of products.
Hedonic needs are subjective and experiential.
A want is a specific manifestation (biểu thị) of a need
that personal and cultural factors determine.
A productivity orientation refers to a continual striving
to use time constructively.
Chapter 1: Buying, Having and Being- DieuTT5 45
Chapter 1: Buying, Having and Being- DieuTT5 46
Learning Objective 5

Technology and culture create a new “always on”


consumer.

Chapter 1: Buying, Having and Being- DieuTT5 1-48


The Digital Native: Living a Social [Media]
Life
The digital revolution is one of the most significant
influences on consumer behavior.
Electronic marketing has increased convenience by
breaking down barriers of time and location.
There is now B2C e-commerce (businesses selling to
consumers) and C2C e- commerce (consumers selling to
consumers).
Virtual brand communities are often brought together
by their interests, which expand consumption
communities beyond those available in local
communities.
Chapter 1: Buying, Having and Being- DieuTT5 1-49
The Digital Native: Living a Social [Media]
Life (continued)
Digital natives are consumers who grew up “wired” in a highly
networked, always- on world where digital technology always
existed.
Net neutrality ensure everyone – individual users and behemoth
companies – is guaranteed equal access cyberspace.
Consumers are part of a horizontal revolution, where each
consumer can communicate with huge numbers of people by a
click on a keypad so information flows across people instead of
just coming from big companies and governments.

Chapter 1: Buying, Having and Being- DieuTT5 51


Social media

Social media are the online means of communication,


conveyance, collaboration and cultivation among
interconnected and interdependent networks of people,
communities and organizations enhanced by
technological capabilities and mobility.

Chapter 1: Buying, Having and Being- DieuTT5 52


The Digital Native: Living a Social [Media]
Life (continued)
User-generated content, where everyday people film
commercials, voice their opinions about products,
brands and companies on blogs, podcasts and social
networking sites, is part of the Web 2.0 era, which
shifted the Internet from a one- way transmission
medium to a social, interactive medium.
Social media is characterized by synchronous (real-time)
and asynchronous interactions across social media
platforms that enable a culture of participation.

Chapter 1: Buying, Having and Being- DieuTT5 53


Learning Objective 6

Many specialists study consumer behavior.

Chapter 1: Buying, Having and Being- DieuTT5 1-54


The interdisciplinary nature of consumer
behavior

Ký hiệu học

Nhân chủng học

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Disciplines in Consumer Research

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Learning Objective 7

There are differing perspectives regarding how and what


we should understand about consumer behavior.

Chapter 1: Buying, Having and Being- DieuTT5 1-57


Paradigm

One general way to classify consumer research is in terms


of the fundamental assumptions the researchers make
about what they are studying and how to study it. This set
of beliefs is known as a paradigm (thế giới quan). A paradigm
shift may now be underway (đang vận động).

Chapter 1: Buying, Having and Being- DieuTT5 58


Positivism
chủ nghĩa thực chứng

The dominant paradigm currently is called positivism (or


sometimes called modernism).
It emphasizes that human reason is supreme (tối cao), and
that there is a single, objective truth that can be
discovered by science.
Positivism encourages us to stress the function of
objects, to celebrate technology, and to regard the
world as a rational, ordered place with a clearly defined
past, present, and future.

Chapter 1: Buying, Having and Being- DieuTT5 59


Interpretivism
Chủ nghĩa xã hội diễn giải
The emerging paradigm of interpretivism (or postmodernism)
questions the previous assumptions.
Proponents (người đề xướng) argue that there is too much emphasis
on science and technology in our society, and that this ordered,
rational view of consumers denies the complex social and cultural
world in which we live.
Others say positivism puts too much emphasis on material well-
being, and that this logical outlook is dominated by an ideology
(hệ tư tưởng) that stresses the homogeneous views of a culture
dominated by white males.
Interpretivists instead stress the importance of symbolic,
subjective experience and the idea that meaning is in the mind of
the person because we live a world composed of a pastiche (cóp
nhặt), or mixture of images.
Chapter 1: Buying, Having and Being- DieuTT5 60
Positivist vs. Interpretivist

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Should Consumer Research Have an
Academic or an Applied Focus?
It is still a debate.
Some argue in favor of an applied focus that improves
the effectiveness of marketing practice.
Others argue for a focus on understanding consumption
for its own sake.

Chapter 1: Buying, Having and Being- DieuTT5 63


Chapter Summary

1. Consumer behavior is a process.


2. Marketers have to understand the wants and needs of different
consumer segments.
3. Our choices as consumers relate in powerful ways to the rest of
our lives.
4. Our motivations to consume are complex and varied.
5. Technology and culture create a new “always on” consumer.
6. Many different types of specialists study consumer behavior.
7. There are differing perspectives regarding how and what we
should understand about consumer behavior.

Chapter 1: Buying, Having and Being- DieuTT5 1-64

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