...MKT2CBE Consumer Behaviour Week 2 Chapter 2, Value and the Consumer Behaviour Value Framework Learning Outcome 1: Describe the consumer value framework, including its basic components CVF: Identifies variables that influence the consumer both internal and external whilst also looking at the process of turning a need into a want into the acquisition of a product; then having the product do something for them (creating value) be it hedonic or utilitarian. Internal Influences: Learning, Perception, Memory, Attitude, Categorisation (cool, uncool) Personality of Consumer: Motivation, Personal Values, Lifestyle, Emotional Expressiveness (Assignment) Consumption Process: Needs, Wants, Exchange, Costs/Benefits, Reactions Value: Utilitarian/Hedonic Relationship Quality External Influences Situational Influencers Affect: feelings Consumer research: defining, establishing and testing individual differences in order to divide market External Influences: interpersonal, social environment (workmates/housemates/family) Situational Influences: time of day Learning Outcome 2: Define consumer value and compare and contrast two key types of value Value: What you get – What you give up eg. 7/11 convenience of opening 24/7 allows the company to introduce a higher premium Utilitarian: utility aspect (product, functionally, does something for you) Hedonic: facebook updates on your phone Learning Outcome 3: Apply the concepts of marketing strategy and...
Words: 2168 - Pages: 9
...Consumer behaviour is the study of individuals, groups, or organisations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society (Kuester, 2012). These helps the marketers to answer questions such as why people choose one product or brand over another, how they make these choices, and how companies use this knowledge to provide value to consumers. Specifically, we considered a number of internal factors that influence consumer behaviour including motivation and learning to help us in understanding the consumer. Solomon, et al (2010:177) defines motivation as “the process that cause people to behave as they do … Motivation occurs when a need is aroused that the consumer wishes to satisfy. Once a need has been activated, a state of tension exists that drives the consumer to attempt to eliminate or reduce the need.” Dr Abraham Maslow formulated a widely accepted theory of human motivation based on the notion of a universal hierarchy of human needs. This identifies five basic levels of human need which rank in order of importance from lower level needs (biogenic) to higher level needs (psychogenic). This theory says that individuals need to satisfy the lower needs before higher level needs arise (Maslow, 1965). Physiological needs are the lowest or the first level needs. These include food, water, air, clothing, and shelter. Once the first...
Words: 950 - Pages: 4
...Sociology and Marketing Hand in Hand Written By Yomna, Aiman, Anaa To excel in business, you need more than a solid grasp of math and economics. Business requires an understanding of people -- large populations in particular. Sociology provides the educational background needed for managers to understand their employees and customers. Business leaders that understand sociology are able to anticipate customer needs and respond to employee problems in ways others cannot. What is Sociology? Sociology is the study of human social relationships and institution. Sociology is a subject that differentiate the alternating matter of society like from race to crime, family to social class, beliefs of similar culture and it talks about the social stability to radical change in the whole societies. The study of sociology helps the individual to understand how human act and realization both shape and shaped by the surrounding culture and social structure. Sociology is an exciting and helpful field to study that evaluates and explains the important matter in our personal live, our communities and the world. For our personal lives sociology studies the social cause and consequences of things like racial and gender identity, family conflict, aging and religious. As for the society level, sociology examines and explains matters like for example prejudice and discrimination, poverty and wealth, crime and law, school and education and social movements. With the help of the 4 main...
Words: 1930 - Pages: 8
...Christian Andrea (77142477) Prakash Pothina (77144112) Shrey Sugla (77144256) CONTENTS INTRODUCTION 4 LITERATURE REVIEW 4 L'ORÉAL MARKETING PLAN AND CONSUMER BEHAVIOUR 6 Cultural factors: 6 Social factors 7 Psychological factors 8 CONCLUSION 10 APPDENDICES 10 REFERENCES 11 REPORT ON THE EFFECTS OF CONSUMER BEHAVIOUR ON L'ORÉAL MARKETING PLANS ABSTRACT: Consumer behaviour strongly affect the consumer buying process, hence marketers always want to know what is actually happening inside customer's mind in order to provide additional values of products to users to satisfy their needs and wants. However, it is mainly influenced by three key factors - cultural factors, social factors and psychological factors - that are vital conditions for every marketing strategy to be considered before launching in the market. In cosmetic industry, although L'Oréal is the leader of the market, it is necessarily for the company to concern these factors in its marketing plan, so as to gain the market shares and remain its position above rivals such as P&G and Unilever. The report will try to find out the role of consumer behaviour in marketing strategy planning and discover the process of how L'Oreal adapt the three factors to their marketing plans order to achieve success. INTRODUCTION The term consumer behaviour is defined as "the study of how individuals, groups and organisations select, buy, use and dispose of goods, ideas or experiences to satisfy their needs and...
Words: 3009 - Pages: 13
...with sufficient funds or status. Do brands really influence us as consumers that much? Do we really have a choice in the current consumer market or do brands define our purchases? If so, how does brand personality affect our own human personality? Value and its subjectivity is an important concept to understand when looking at brand value and its market power. Factors such as memory, socio-economic status and culture all affect an individual’s perception towards value. Materialism is a way of life, a manner in which people attach themselves to material objects. This is done to increase self-worth by putting possessions at the centre of our lives and using these to determine happiness and to define success. In understanding this we have the ability to critique brand personality and its effect on society. This paper will argue that a brands personality is the main catalyst of change to an individual’s personality. This questions the presence and importance of our own personality if we purchase brands to portray another. Value varies from person to person and product to product, influencing consumers to purchase certain brands which they see valuable. Value highlights the buyers/owners desire to exchange a certain product or service (Neap et al, 1999). This concept of value only really relates to the product or service. Barwise in his text Brands as ‘separable assets’ argues that a true sense of value comes from the whole business, he suggests that to separate a product...
Words: 2252 - Pages: 10
...undeniably one of the most important concepts of marketing. Through the tutorials, I have learnt that STP sets the base of the entire marketing effort. Segmentation divides the market through demographic, geographic, psychographic and behavioural segmentation. It clearly defines the boundaries of the different market opportunities that one may want to develop in. Targeting involves evaluating the different market segments and then choosing the best target market(s) which are feasible and in line with the company’s goals. Positioning creates a value proposition which represent a set of differences or competitive advantages that differentiates the product, delivering more customer value. STP aids one in creating a product that is based on a customer-driven marketing strategy. In this aspect, I believe that my team has done relatively well. By understanding STP, my team was able to use multiple segmentation bases (Demographic, Psychographic and Behavioural) to define our target market. This enables us to better understand our key customer segments in order to target them more efficiently. Through this project, I firmly believe that we must almost always, in any situation, use multiple segmentation bases to better define our target segments. When segmenting the market, it is highly possible that we may unconsciously generate stereotypes. A perfect example of this was discussed in one of the...
Words: 1663 - Pages: 7
...Analysis………………………………………………9 7. Logistical and ethical consideration……………………9 8. Proposed Outcomes……………………………………...10 9. Planned timetable for completing dissertation……….....10 10. References ……………………………………………….11 11. Appendix…………………………………………………12 1. Title: Advertisement and its impacts on consumer buying behaviour; In case of Dominos Pizza Company. 2. Introductions: Advertisement plays a vital role in the business of any organisation. This is simply the medium of communication and delivering paid message from an organisation to customers regarding their products. Also, it is the strategy of a company for the promotion of product by gaining the attention of consumers towards itself and sometimes recalling the product in customer’s mind. Today, most of the products come with the advertisement and many of them come with the celebrity endorsement which acts as a credible means of spending money for consumers. Advertisement makes such kinds of perception in the consumer’s mind that, sometimes having that product becomes their social status. People want to have right choice of their products when they are using or buying. Studying the behaviour of consumers, if a consumer observes messages...
Words: 2576 - Pages: 11
...Module tutor: Kandis Watson Course: MBA Word count: 2,854 I. According to Bloisi, W., Cook, C.W. and Hunsaker, P.L (2003), consumer market refers to the purchase of goods and services purely for personal consumption. Consumer market and consumer buying behaviour must be studies and understood before an appropriate marketing plan can be developed. In general, organisations and companies need to know and understand the behaviour not only for their own customers but also for all consumers. Multiple roles of Consumers As users of a product, consumers are concerned with product features, thus users define what is needed from a product. Payers are consumers who pay for the product and are primarily concerned with its price and other financial considerations (reasonable life cycle of the product, cost of maintenance, cost of consumables, etc). Buyers focus on the logistics of the products (online, by phone, mail or retail center).In a particular purchase situation, the roles may be filled by a signal individual or by multiple people, for example, a parent may decide on the type of baby food that they wish to purchase but their partner may also beinvolved in the decision making or transaction, while the baby is the ultimate user of the food. The stages of consumer buying process The consumer buying process: Irrespective of the particular role, consumers constantly face a number of choices: -Whether to purchase -What to purchase. -Where to purchase. -From which supplier or...
Words: 2898 - Pages: 12
...discuss the Methodology in Economics differentiate between Microeconomic Issues and Macroeconomic Issues 1.1 WHAT IS ECONOMICS? Some opinions: “Supply and Demand - that’s all there is to economics. The rest is nonsense.” “Economics is about what everyone knows in a language that nobody understands.” “Economics explains the price of everything and the value of nothing.” “Economists are quite unique in their failure to solve a single one of the problems of their profession.” John Papworth Economist– the one profession where you can gain great eminence without ever being right.” George Meany While these views / opinions of economics / economists contain some element of truth, they hardly give a meaningful insight into the nature of the subject and the work of economists. What is Economics? Many definitions have been offered for Economics. Mostly, they focus on two inter-related approaches to the above question: 1. 2 the problems that Economics deals with; and the methods that economists use in dealing with these problems. An example of the ‘problem’ type of definition is given below: “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.” Lord Robbins 1929 Simply put, Economics can be defined as the social science which studies how human beings use what is available to get what is wanted. An example of the ‘methods’ type of definition comes from a famous economist: MDIS 1–1 Introduction to Economics BASIC...
Words: 4957 - Pages: 20
...A Project On Consumer Behaviour Submitted To University of Mumbai In the partial fulfillment of the B.M.S. Degree By Vivek .R. Jaiswal Roll No. 29 Uder the guidance of Prof. Furquan Shaikh Studying at Rizvi Education Society’s Rizvi College of Art, Science & Commerce Rizvi Educational Complex, Bandra (West), Mumbai Academic Year 2012-2013 Declaration I Mr.Vivek .R. Jaiswal a student of the TYBMS class, Roll No.29 of the academic year 2011-2013 studying at Rizvi College of Art, Science & Commerce, herby declare that the work done on the project entitled CONSUMER BEHAVIOUR is true and original to the best of my knowledge and my any reference used in the project is duly acknowledged. Date: Signature of Student (Name of student Vivek .R. Jaiswal) Cerificate This is to certify that Mr.Vivek.R.Jaiswal a student of TYBMS class, Roll No. 29 of the academic year 2012-2013 studying at Rizvi College of Art, Science & Commerce, has successful completed the project entitled Consumer Behaviour. Prof. Furqan Shaikh Prof. Furqan Shaikh (Project Guide) (Prof. Furqan Shaikh) External Examiner Dr.M.Z. Farooqui (Principal) . Introduction As the twentieth century has come to a close and we have move into the third millennium...
Words: 6277 - Pages: 26
...Table of Contents Introduction 4 Objectives 6 Literature Review 7 Framework 9 Data Analysis 14 Qualitative Analysis 14 Qualitative Analysis 16 Research Methodology 17 Conclusion 20 Bibliography 21 APPENDIX – I APPENDIX – II APPENDIX – III APPENDIX – IV APPENDIX - V Introduction Predictive analytics has its origin from a famous saying: Past performance is the basic indicator of future results. It looks at historical cases and builds models which can then be applied to benefit present scenarios or predict future scenarios. Predictive Analytics is the best way for a business to predict customer responses in the future. It provides solutions for businesses facing main problems like ‘What segment of potential consumers will respond best to our message’ and ‘how can I stop my customers from leaving, and why am I losing them?’(Curtis, 2010). Predictive analytics is not just for providing a solution for a business problem but involves techniques mainly to improve the focus of company towards customers and customers towards company. The magnificence of predictive analytics is that a business characteristically perceives a win-win situation. In other words, a business not only benefits from higher returns but also gets to save on cost (Colin, 2009). Predictive analytics is becoming a competitive necessity and an important aspect of many types of business, particularly in this type of economy where an organization is trying to increase its efficiency and at...
Words: 5988 - Pages: 24
...number of people what marketing is, they will answer the question in various ways. Marketing involves more activities than most people might imagine. Although a single definition of marketing does not exist, there are a few definitions that have been widely approved. And one of them is given by The American Marketing Association (AMA). It defines marketing as "a process for creating, communicating, delivering, and exchanging ideas, goods and services, establishing their prices, promotion and distribution, in order to satisfy the goals of customers, clients, partners, and society at large". This definition emphasises the marketing focus on planning and performing marketing activities in order to satisfy the customers’ needs and wants. Today, marketing must not be interpreted by considering it in its old nature of "making and selling" but, instead, by referring to its new meaning which focuses on the satisfaction of customers' needs and wants. Sales cannot be performed before creating a product. Marketing starts long before a product is created by a company. It encompasses activities carried out by managers in order to assess the wants, define their scope, and find out whether profits are possible or not. Marketing activities continue over the entire lifetime of a product, trying to attract new clients and keep the existing ones by improving the product's quality and appeal, using the insights into sales results and the management of repeated orders. But what is Neuro-Marketing...
Words: 3438 - Pages: 14
...spot in Adelaide, and has over 50% of its population with people over the age of 45 (ABS 2014). Currently Baxter Bakeries is owned and operated by James Baxter who is an experienced pastry chef, with years of experience in making exotic and delicious pastries. James and his small team have a vision of delivering an experience to customers that not only creates a moment, but a lasting memory for the consumer. In order for James and his team at Baxter Bakeries to be able to achieve this outcome a competitive marketing strategy must be formed to ensure that this goal can be fulfilled in the near future. In order to create a competitive marketing strategy one must look at all the aspects that make up a market starting with the analysis of the market that Baxter Bakeries want to enter. In this analysis we will look at everything that could influence or create challenges for James and his team, including the buyer behaviour, microenvironment, and the macroenvironment. The purpose of looking at the buyer behaviour is that it allows Baxter Bakeries to better understand what drives a consumer to purchase a baked good. The macro and microenvironment looks everything that could influence James and his team internally and externally, including but not limited to suppliers and intermediaries, publics and to identify possible competitors in the area which are Bakers Delight, Brumby’s, Michel’s Patisserie , and Pie...
Words: 7068 - Pages: 29
...my Bachelor of Commerce’s curriculum for semester VI. I am very much thankful to her for valuable guidance, keen interest and encouragement at various stages of my literature review work. I would further like to thank my Marketing teacher Ms. Monika Bansal whose guidance and suggestion contributed immensely to the evolution of my ideas on the project. I would also like to thank my friends and family without whom the project would have been a distant reality. Divanshu Saxena Table of Contents Title Page Number 1. Introduction 1.1 Introduction to Neuro-Marketing 7 1.2 Example of Neuro-Marketing 9 2. Review of Literature 2.1 New science of Consumer Behaviour 10 2.2 Evolution of Neuro-Marketing 10 2.3 Understanding Consumer Behaviour 11 2.4 Techniques in Neuro Marketing 12 2.5 Influence of Neuro Marketing...
Words: 4787 - Pages: 20
...A Project Report On FACTORS INFLUENCING THE PURCHASE DECISION OF BIMTECH STUDENTS FOR SPORTS APPAREL SUBMITTED IN PARTIAL FULLFILLMENT OF THE POST GRADUATION DIPLOMA IN MANAGEMENT AT BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY Submitted to: Prof. A.K. Dey Submited by- Dhruv Chauhan 14DM074 Dishant Gupta 14DM078 Himanshu Garg 14DM091 Ishan Biswari 14DM096 Jitender Kumar 14DM105 Karan Vithlani 14DM109 LETTER OF TRANSMITTAL Dr. A. K. Dey Date: 13-12-2014 Professor Operations & Decision Sciences Birla Institute of Management Technology Greater Noida Respected Sir, We would like to inform you that we have completed the project work assigned by you. We are also sending you the results contained in our research report entitled “FACTORS INFLUENCING THE PURCHASE DECISION OF BIMTECH STUDENTS FOR SPORTS APPAREL.” As already discussed with you, the said report is based on the inputs obtained from 216 subjects taken from BIMTECH only, Report is arranged in chapters and explains all the details pertaining to the research conducted by us. We have followed the standard pattern of conducting the research. We sincerely hope that the results presented in the report are up to your expectations. We would be looking forward to your feedback. Sincerely, Dhruv Chauhan 14DM074 Dishant Gupta 14DM078 Himanshu Garg 14DM091 ...
Words: 7120 - Pages: 29
