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Chapter 1
OVERVIEW
Content
1. Definition of consumer behavior
2. Reasons to research Consumer Behaviors
3. Current trends in consumer behavior
4. Consumer Behaviors Research
5. Consumer Behaviors and Marketing strategies
1. Definition of consumer behaviors
“the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or
experiences to satisfy needs and desires and to define and
express their identities”
Solomon & Russell (2024)
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1. Definition of consumer behaviors
Consumer behavior is dynamic: It is an ongoing process
Consumption refers to all facets of the consumer behavior
process, which include how we observe and make sense of the
world around us, how we choose and purchase things, and how
we communicate our identity and sense of self in society.
People buy products not for what they do, but for what they mean
Overall Model
of Consumer
Behavior
Source: Mothersbaugh, D. L.,
Hawkins, D. I. & Kleiser S. B.
(2020). Consumer Behavior:
Building Marketing Strategy,
14th ed. McGraw-Hill
2. Reasons to research Consumer Behaviors
Changes in marketing points of view
Old approach New approach
Marketing was a function Marketing is a philosophy
Managing the current state Managing the change
Sellers’ power Buyers’ power
Customers accepted all orders Selecting customers
Vendors dominated Customers dominate
Customers had little information Customers have a lot of
Focus on direct customers information
Focus on indirect, direct, current
and potential customers
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2. Reasons to research Consumer Behaviors
Importance of stuying consumer behaviours
Improving product competitiveness
Launching new products
Designing influencing marketing strategies
2. Reasons to research Consumer Behaviors
Improving product competitiveness
• customers’ noticeable needs
• niche markets
2. Reasons to research Consumer Behaviors
Customers’ noticeable needs
People who don’t like tucking
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2. Reasons to research Consumer Behaviors
Niche markets
Food-allergy segments
2. Reasons to research Consumer Behaviors
Designing influencing marketing strategies
advertising on social media
impressive and memorable content
Neuro-marketing
If the baby looks directly at
the camera, viewers focus
more on the baby’s face
rather than the ad content.
If the baby look at the
product or text, viewers
focus more on the ad
content.
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2. Reasons to research Consumer Behaviours
Customers aren’t satisfied with the product/service
47% switch brand 27% get frustrated
91% leave without
warning 40% recommend others
not to support
LOSS
Source: https://financesonline.com/customer-service-statistics/
2. Reasons to research Consumer Behaviours
68% of customers leave you because of your
staff’s negligence and bad attitude.
Source: https://smallbiztrends.com/
3. Some current trends in Consumer Behaviors
Social Media: The Proactive Consumers and
Horizontal Revolution User-Generated Content
Artificial Intelligence Sharing economy
“Big Data” and Data Authenticity and
Analytics personalization
Globalization of Brands Blurring of gender identity
and Cultural Practices and gender roles
Healthy and ethical living
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3.1 Social Media: The Horizontal Revolution
The explosion of social media takes “word of mouse” to a
whole new level because it has created a horizontal
revolution.
Communications not only flow top-down from companies
and established media to passive recipients but also flow
across regular users (hence the word horizontal) through
social media.
3.2 Artificial Intelligence
Machine learning analyzes customer data and predicts their
behaviors to provide more individualized ad effective
marketing strategies.
Chatbots: are used for replying customers’ questions, sales
consultation, online customer service, etc.
Augmented Reality: Augmented reality is an interactive
experience that enhances the real world with computer-
generated perceptual information
3.3 “Big Data” and Data Analytics
Consumers are generating massive amounts of information
that hold tremendous value for marketers.
Source: climate information, comments on social media
sites, credit card transactions, GPS signals in smartphones
that let organizations know where most consumers are, etc.
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3.4 Globalization of Brands and Cultural
Practices
in-group bias: They prefer culturally related brands that
meet their desire to connect with “home” and their home
culture.
consumers can feel a sense of cultural distinctiveness
that drives them to seek out brands that represent other
cultural groups
3.5 Proactive Consumers and User-Generated
Content (UGC)
Consumers can voice their opinions about products,
brands, and companies on blogs, podcasts, and social
networking sites.
Factors leading to UGC:
• technology and
• the gap between the content that customers want to see from
organizations and the content that they’re getting
3.6 Share economy
A continued blurring of the boundary between producers
and consumers, as everyday people take on the roles of
hoteliers, taxi drivers, and even advertising agencies. We
will see a de-emphasis on the value of owning products
such as automobiles and power tools as opposed to leasing
them on an as-needed basis.
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3.7 Authenticity and personalization
Consumers also will demand more individualized
experiences rather than buying mass-market products and
services.
Shoppers are willing to pay more for an item when they
know exactly where it comes from, and they are assured
that “real people” have thoughtfully selected the things
from which they choose
3.7 Authenticity and personalization
The continuing movement away from “gender binarism”
as gender identity becomes more fluid and more people do
not identify themselves as male or female.
3.9 Healthy and ethical living
A continued focus on wellness, physical fitness, and
environmental sustainability
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4. Research Consumer Behaviors
4.1 Research content:
Customer reactions
Influencing factors of consumer behaviours
Enterprises’ Marketing methods
4. Research Consumer Behaviors
4.2 Research methods:
Survey
Interview
Experiment
Observation
...
4. Research Consumer Behaviors
4.3 Research areas
Before buying
Information search, option evaluation
Purchase decision
After buying
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4. Research Consumer Behaviors
Identify research
goals
Collect secondary
data
Design qualitative Design quantitative
research research
Methodology Methodology
Questionnaire Sampling
Discussion guide Data collection
Collect
secondary
Collect secondary data data Collect primary data
Data analysis Data analysis
Report preparation Report preparation
Consumer Behaviour Research Process
(Source: Consumer Behavior, Leon G. Schiffman & Leslie Lazar Kanuk, 2007)
4. Research Consumer Behaviors
MAIL TELEPHONE INTERVIEW ONLINE
Cost low average high low
Speed slow immediate slow fast
Reply ratio low trung bình high
Geographical accurate moderate difficult accurate
flexibility
Interviewer’s bias average not certain
reply quality limited limited accurate accurate
5. Consumer behaviors and marketing
strategies
5.1 Segmentation
Consumption rate: 80/20 rule
Age, gender
Lifestyle
...
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5. Consumer behaviors and marketing
strategies
5.1 Segmentation
Segmenting by Behavior: Relationships and “Big Data”
Relationship marketing interact with customers on a
regular basis and give them solid reasons to maintain a
bond with the company over time.
Database marketing tracks specific consumers’ buying
habits closely and tailors products and messages precisely
to people’s wants and needs based on this information
5. Consumer behaviors and marketing
strategies
5.2 User-Generated Content
Everyone can voice their opinions about products, brands,
and companies on blogs, podcasts, and social networking
sites such as Facebook and Twitter, and even film their
own commercials that thousands view on sites such as
YouTube
5. Consumer behaviors and marketing
strategies
5.3 Role theory
Role theory takes the view that much of consumer
behavior resembles actions in a play. We as consumers
seek the lines, props, and costumes necessary to put on a
good performance.
Marketing strategies today is that many organizations try
very hard to build relationships with customers.
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5. Consumer behaviors and marketing
strategies
Types of relationships a person might have 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.
THANK YOU
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