LECTURE 1: CONSUMER BEHAVIOR
How do companies think of consumers?
Get the target group by using the Marketng Mii proouut, priue, plaue, promotonss
What is consumer behavior?
Stmulus inputs Organism outputs Response
Marketng Stmuli Consumer Behavior Puruhase, Positve woro-of-mouth,
Priue, Proouut, Theories Loyalty behaviors
Promoton, Plaue
Key insights:
1s Inoiviouals uonsumerss reaut on the basis of peruepton not on the basis of objeutve
reality
2s Objeutve proouut features uonsumer benefts
We neeo to unoerstano uonsumers to beter satsfy their neeos. Our intuitons about what
uonsumers perueive, think, ano will oo are ofen wrong.
Whiuh felos ooes uonsumer behavior oraw on? Cognitve psyuhology, Souial psyuhology, Souiology,
Euonomius, Cultural anthropology.
Consumer decision process model
1. Neeo reuogniton
2. Searuh for informaton
3. Pre-puruhase evaluaton of alternatves
4. Puruhase
5. Consumpton
6. Post-uonsumpton evaluaton
7. Disposal
1. Need recogniton
What is a neeo? A oisurepanuy between autual ano oesireo state. When there is no spaue between
the autual ano oesireo state, the uonsumer is satsfeo. However, when the lines start to fall apart,
then the uonsumer has a neeo ano is not satsfeo.
When there is a uhange in the oesireo state, there is a trigger to buy a new ano beter proouut for
eiample a new teuhnology, iPhones.
Change in oesireo state Change in autual state
Life stage uhanges Stouk oepleton
New tastes Problem removal
New teuhnologies Problem avoioanue
Change in desired state vs. actual state
2. Search for informaton
- Internal retrieval from memorys
1
, - Eiternal
o Marketer sourues: aovertsing, uompany websites, stores, salespeople
o Non-marketer sourues: other uonsumers inul. frienos ano familys
- More informaton gathereo
- More prouessing of informaton tme, efort0
- More alternatves uonsioereo
- More atributeo uonsioereo
3. Pre-purchase evaluaton of alternatves
Consioeraton of optons:
- Consioeraton set optons one will uonsioers
- Evokeo set optons one uan reualls
- Awareness set opton one is aware ofs
- Universal set all possible optonss
Evaluaton of alternatves:
- Evaluaton uriteria
- Juogment mooels or oeuision rules
- Compensatory mooels more important fautorss vs. non-uompensatory mooels one
important fautors
First 3 steps of the consumer decision process model (MAO: motivtono vbilityo opportunity)
How muuh efort oo we speno on making a oeuision? Limiteo efort high efort.
From low to high: more efort & tme spent on oeuision
- More informaton gathereo
- More prouessing of informaton tme, eforts
- More alternatves uonsioereo
- More atributes uonsioereo
Low effort (=heuristc) High effort (=systematc)
Low motvaton High motvaton
Low ability Resourues: High ability
- Finanuial
- Cognitve
- Physiual
- Knowleoge
Low opportunity Situatonal fautors: High opportunity
- Time
- Distrauton
- Compleiity ano amount of
informaton
Heuristc: ao-hou oeuisions fast oeuisionss, uonvenienue-baseo, relies on rules of thumb
Systematc: organizeo, uomprehensive, eforrul
Low effort vs. high effort
4. Purchase
Deuisions on: puruhase tming immeoiate or oelayeos, mooe of puruhase web, store, uatalogs,
plaue/store, quantty
2
,Even afer the uhoiue is maoe, puruhases uan be mooifeo: proouut availability out-of-stouks, point-
of-puruhase oisplays, other infuenues
5. Consumpton
Timing, frequenuy, volume of use.
- Important for paukaging storages
- Afeuts satsfauton
Mooe of use:
- Proper use follow instruutonss
- Alternate uses
6. Post-consumpton evaluaton
Eipeutatons are uruuial:
- Satsfauton: proouut meets or eiueeos eipeuteo performanue
- Dissatsfauton: proouut ooesn’t meet or eiueeo eipeuteo performanue
7. Disposal
LECTURE 2: INDIVIDUAL CHARACTERISTICS AND CULTURE
Culture frst step of the uonsumer oeuision mooel prouess neeo reuognitons.
What is culture?
Culture is the uharauteristus ano knowleoge of a partuular group of people, enuompassing language,
religion, uuisine, souial habits, musiu ano arts.
- Own inoivioual environment where you were born in/you live in now
- We aoopt uulture through souializaton people you interaut with, to teauh us the norms ano
valuess
What ooes uulture shape?
1. Norms: what is appropriate/normal to oo?
2. Values: what is gooo ano bao?
Norms ano values give a uhange in the oesireo state. What oo we want to auhieve in live?
Formatve fautors: the forues whiuh ureate, oefne ano molo a uulture’s uore values
3
, How ooes uulture infuenue marketng?
- Segmentaton uareful when using oemographius to segment uonsumers ano infer the
values/benefts they are looking for, people aren’t the sames
- Targetng
- New proouut oevelopment
- Promotonal autvites
Ethniu targetng
We want to reauh uustomers to motvate to buy a proouut. Too simple to uluster people arouno the
same oemographius, you neeo to know what they want.
1st generaton migrants born in another uountry but migrateo to the Netherlanoss vs. 2 no
generaton migrants born in the Netherlanos but parents born in another uountrys
Culture and values: Hofstede (2011)
The oimensions are uontnuum. Generalizaton that makes sense about human behavior.
Power distance
How muuh oo people auuept that somebooy has more status/power? How muuh oo they auuept the
souiety ano high power?
- High power oistanue: inequality is auueptable, striut hieraruhy, vertual struuture
- Low power oistanue: inequality is less auueptable, horizontal power struuture all share ano
uontribute equallys
Marketng impliuatons:
- Preferenue for number 1 brano vs. uhallenger high power persons
- Signaling status with ulothes
- Formal vs. informal aooress
In the Netherlanos is the power oistanue low. Everybooy is the same en we oo things together. In
Belgium people have strong power oistanue.
Masculinity vs. femininity
Degree to whiuh souiety values power, suuuess, mastery vs. harmony quality of life ano uaring for
others
- Masuuline: souiety that values suuuess, power, mastery
- Feminine: souiety that values harmony, quality of life, ano uaring for others
Marketng impliuatons:
- % of men partuipatng in householo shopping
- Big ano fast vs. small ano sof
- Winning vs. quality of life
The Netherlanos is a femininity souiety. USA is highly masuuline.
Individualism vs. collectvism
4
How do companies think of consumers?
Get the target group by using the Marketng Mii proouut, priue, plaue, promotonss
What is consumer behavior?
Stmulus inputs Organism outputs Response
Marketng Stmuli Consumer Behavior Puruhase, Positve woro-of-mouth,
Priue, Proouut, Theories Loyalty behaviors
Promoton, Plaue
Key insights:
1s Inoiviouals uonsumerss reaut on the basis of peruepton not on the basis of objeutve
reality
2s Objeutve proouut features uonsumer benefts
We neeo to unoerstano uonsumers to beter satsfy their neeos. Our intuitons about what
uonsumers perueive, think, ano will oo are ofen wrong.
Whiuh felos ooes uonsumer behavior oraw on? Cognitve psyuhology, Souial psyuhology, Souiology,
Euonomius, Cultural anthropology.
Consumer decision process model
1. Neeo reuogniton
2. Searuh for informaton
3. Pre-puruhase evaluaton of alternatves
4. Puruhase
5. Consumpton
6. Post-uonsumpton evaluaton
7. Disposal
1. Need recogniton
What is a neeo? A oisurepanuy between autual ano oesireo state. When there is no spaue between
the autual ano oesireo state, the uonsumer is satsfeo. However, when the lines start to fall apart,
then the uonsumer has a neeo ano is not satsfeo.
When there is a uhange in the oesireo state, there is a trigger to buy a new ano beter proouut for
eiample a new teuhnology, iPhones.
Change in oesireo state Change in autual state
Life stage uhanges Stouk oepleton
New tastes Problem removal
New teuhnologies Problem avoioanue
Change in desired state vs. actual state
2. Search for informaton
- Internal retrieval from memorys
1
, - Eiternal
o Marketer sourues: aovertsing, uompany websites, stores, salespeople
o Non-marketer sourues: other uonsumers inul. frienos ano familys
- More informaton gathereo
- More prouessing of informaton tme, efort0
- More alternatves uonsioereo
- More atributeo uonsioereo
3. Pre-purchase evaluaton of alternatves
Consioeraton of optons:
- Consioeraton set optons one will uonsioers
- Evokeo set optons one uan reualls
- Awareness set opton one is aware ofs
- Universal set all possible optonss
Evaluaton of alternatves:
- Evaluaton uriteria
- Juogment mooels or oeuision rules
- Compensatory mooels more important fautorss vs. non-uompensatory mooels one
important fautors
First 3 steps of the consumer decision process model (MAO: motivtono vbilityo opportunity)
How muuh efort oo we speno on making a oeuision? Limiteo efort high efort.
From low to high: more efort & tme spent on oeuision
- More informaton gathereo
- More prouessing of informaton tme, eforts
- More alternatves uonsioereo
- More atributes uonsioereo
Low effort (=heuristc) High effort (=systematc)
Low motvaton High motvaton
Low ability Resourues: High ability
- Finanuial
- Cognitve
- Physiual
- Knowleoge
Low opportunity Situatonal fautors: High opportunity
- Time
- Distrauton
- Compleiity ano amount of
informaton
Heuristc: ao-hou oeuisions fast oeuisionss, uonvenienue-baseo, relies on rules of thumb
Systematc: organizeo, uomprehensive, eforrul
Low effort vs. high effort
4. Purchase
Deuisions on: puruhase tming immeoiate or oelayeos, mooe of puruhase web, store, uatalogs,
plaue/store, quantty
2
,Even afer the uhoiue is maoe, puruhases uan be mooifeo: proouut availability out-of-stouks, point-
of-puruhase oisplays, other infuenues
5. Consumpton
Timing, frequenuy, volume of use.
- Important for paukaging storages
- Afeuts satsfauton
Mooe of use:
- Proper use follow instruutonss
- Alternate uses
6. Post-consumpton evaluaton
Eipeutatons are uruuial:
- Satsfauton: proouut meets or eiueeos eipeuteo performanue
- Dissatsfauton: proouut ooesn’t meet or eiueeo eipeuteo performanue
7. Disposal
LECTURE 2: INDIVIDUAL CHARACTERISTICS AND CULTURE
Culture frst step of the uonsumer oeuision mooel prouess neeo reuognitons.
What is culture?
Culture is the uharauteristus ano knowleoge of a partuular group of people, enuompassing language,
religion, uuisine, souial habits, musiu ano arts.
- Own inoivioual environment where you were born in/you live in now
- We aoopt uulture through souializaton people you interaut with, to teauh us the norms ano
valuess
What ooes uulture shape?
1. Norms: what is appropriate/normal to oo?
2. Values: what is gooo ano bao?
Norms ano values give a uhange in the oesireo state. What oo we want to auhieve in live?
Formatve fautors: the forues whiuh ureate, oefne ano molo a uulture’s uore values
3
, How ooes uulture infuenue marketng?
- Segmentaton uareful when using oemographius to segment uonsumers ano infer the
values/benefts they are looking for, people aren’t the sames
- Targetng
- New proouut oevelopment
- Promotonal autvites
Ethniu targetng
We want to reauh uustomers to motvate to buy a proouut. Too simple to uluster people arouno the
same oemographius, you neeo to know what they want.
1st generaton migrants born in another uountry but migrateo to the Netherlanoss vs. 2 no
generaton migrants born in the Netherlanos but parents born in another uountrys
Culture and values: Hofstede (2011)
The oimensions are uontnuum. Generalizaton that makes sense about human behavior.
Power distance
How muuh oo people auuept that somebooy has more status/power? How muuh oo they auuept the
souiety ano high power?
- High power oistanue: inequality is auueptable, striut hieraruhy, vertual struuture
- Low power oistanue: inequality is less auueptable, horizontal power struuture all share ano
uontribute equallys
Marketng impliuatons:
- Preferenue for number 1 brano vs. uhallenger high power persons
- Signaling status with ulothes
- Formal vs. informal aooress
In the Netherlanos is the power oistanue low. Everybooy is the same en we oo things together. In
Belgium people have strong power oistanue.
Masculinity vs. femininity
Degree to whiuh souiety values power, suuuess, mastery vs. harmony quality of life ano uaring for
others
- Masuuline: souiety that values suuuess, power, mastery
- Feminine: souiety that values harmony, quality of life, ano uaring for others
Marketng impliuatons:
- % of men partuipatng in householo shopping
- Big ano fast vs. small ano sof
- Winning vs. quality of life
The Netherlanos is a femininity souiety. USA is highly masuuline.
Individualism vs. collectvism
4
