Consumer Behaviora How and why People Buy Zou Deqiang, Ph. D School of Management, Fudan University March 26.2008
1 Consumer Behavior: Consumer Behavior: How and Why People How and Why People Buy Zou Deqiang, Ph.D. School of Management, Fudan University March 26, 2008
Something to Mention Term group project proposal Send it to the professor and ta before April 5th(the 6th week) by email Discussion on the term project Meet with the professor in his office to discuss the project Half an hour for each group the 7th week Be prepared O Copy rights reserved, Zou Deqiang
2 2 © Copy rights reserved, Zou Deqiang Something to Mention • Term group project proposal ¾Send it to the professor and TA before April 5th (the 6th week) by email • Discussion on the term project ¾ Meet with the professor in his office to discuss the project ¾Half an hour for each group, the 7th week ¾Be prepared
Consumer Behavior in Marketing Consumer Marketing Behavior Strate Quantitative Model C
3 3 © Copy rights reserved, Zou Deqiang Consumer Behavior in Marketing Quantitative Model Consumer Behavior Marketing Strategy
Quotes Customers buy for their reasons, not yours Orvel Ray Wilson The length of a film should be directly related to the endurance of the human bladder Alfred Hitchcock Never assume the obvious is true William Safire O Copy rights reserved, Zou Deqiang
4 4 © Copy rights reserved, Zou Deqiang Quotes • Customers buy for their reasons, not yours. - Orvel Ray Wilson • The length of a film should be directly related to the endurance of the human bladder. - Alfred Hitchcock • Never assume the obvious is true. - William Safire
Learning Objectives Understand the decision-making processes that consumers go through as they make a purchase Appreciate how those processes differ between different buying situations Understand the influences that affect decision-making, whether environmental psychological or socio-cultural Appreciate the implications of those o Copy rig t reGess@sg and influences for marketing
5 5 © Copy rights reserved, Zou Deqiang Learning Objectives • Understand the decision-making processes that consumers go through as they make a purchase • Appreciate how those processes differ between different buying situations • Understand the influences that affect decision-making, whether environmental, psychological or socio-cultural • Appreciate the implications of those processes and influences for marketing
Case Study Harley-Davidson -Devoted Consumers Building Success Measuring Success Offers good bikes, Currently has 23% of all U.S bike sales and 50% of upgraded showrooms heavyweight segment and sales tactics Demand above supply with Research has helped to waiting lists up to 2 years understand customers Sales doubled in the past six emotions and motivation years while earnings have tripled Consumer emotions motivations, and lifestyle 2005: 19th straight year of record sales and income have been translated into effective advertising O Copy rights reserved, Zou Deqiang
6 6 © Copy rights reserved, Zou Deqiang Building Success • Offers good bikes, upgraded showrooms and sales tactics. • Research has helped to understand customers’ emotions and motivation. • Consumer emotions, motivations, and lifestyle have been translated into effective advertising. Harley-Davidson Davidson – Devoted Consumers Devoted Consumers Case Study Case Study Measuring Success • Currently has 23% of all U.S. bike sales and 50% of heavyweight segment. • Demand above supply with waiting lists up to 2 years. • Sales doubled in the past six years while earnings have tripled. • 2005: 19th straight year of record sales and income
Why Consumer Behavior is Relevant? TVC: Chanel No 5 The first perfume with man-made chemical ingredients, current position? Moulin Rouge: lifestyle? Ideal self? >Unconscious processing? What kind of need? Brand personality? iL IN RouGH O Copy rights reserved, Zou Deqiang
7 7 © Copy rights reserved, Zou Deqiang Why Consumer Behavior is Relevant? • TVC: Chanel No. 5 ¾The first perfume with man-made chemical ingredients, current position? ¾ Moulin Rouge: lifestyle? ¾Ideal self? ¾Unconscious processing? ¾What kind of need? ¾Brand personality?
Consumer Buying Decision-Making Process Individual Situational influences influences Decision-making process Group influences Marketing mix 8 O Copy rights reserved, Zou Deqiang
8 8 © Copy rights reserved, Zou Deqiang Consumer Buying Decision-Making Process Situational influences Individual influences Group influences Marketing mix Decision-making process
Model of Buver Behavior Marketing and other stimuli Buyer's black box Buyer responses Marketin Other Product choice Product Economic Buyer characteristics Brand choice Price Technological Buyer decision process Dealer choice Place Political Purchase timing Promotion Cultural Purchase amount 9 O Copy rights reserved, Zou Deqiang
9 9 © Copy rights reserved, Zou Deqiang Model of Buyer Behavior
Factors Influencing Consumer Behavior Cultural Culture Personal Reference groups Psychological Age and life- cycle stage Motivation Occupation Family Perception Economic situation Buyer Subculture Lifestyle Beliefs and Personality and Roles and status self-concept Social class O Copy rights reserved, Zou Deqiang
10 10 © Copy rights reserved, Zou Deqiang Factors Influencing Consumer Behavior
