Consumer Behavior

Prof. Dr Ehab M. ABOU AISH

Prof. of Marketing

Agenda

Opening introduction
Know:
Consumer behavior and marketing concept
Applications of CB
The consumers rights
Understand
The process of how CB help in building marketing
strategy
- The nature and mechanism of CB
- Research Trends in CB
- The consumers rights
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The Course Objectives

Gain in-depth knowledge and understanding of
consumers, their behavior and how to affect it

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The Course Implementation Plan

The Text and Extra Materials
See the course outline

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The Term-Project
As a team
You will develop a comprehensive research paper
about different consumer-behavior related issues.
You will receive detailed guidelines for your
project phases, deadlines, contents and
deliverables during your tutorials.

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The Mid-term and Final Exams

Mid-term will be computerized closed book exam
Final exam will be computerized closed book exam
(or A case and open book exam, will be decided
later)

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Consumer Behavior Definition

Is the study of individuals, groups or
organizations and the process they use to select,
secure, use and dispose of products, services,
experiences or ideas to satisfy the needs and the
impacts that these process have on the consumer
and the society

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Applications of CB

Marketing Strategy (Companies)

Regulatory Policies (Government)
Social Marketing (NGO)
Informed Individuals (Customers)

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Marketing Concepts
Needs: a state of felt deprivation
Wants: the form taken by a human need as shaped
by culture and individual personality (transformed
into desires to acquire products and services)
Exchange: give something up in return of another
value
Costs& Benefits: negative and positive results of
consumption
Value: a personal assessment of the net worth
obtained from an activity Relationship between
the benefits derived from the total product and the
costs of acquiring those products
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Consumer Behavior and Marketing

Strategy
To survive in a competitive environment the org.
must provide target customers with more Value
than its competitors in order to be in a ResourcesAdvantage position
Competition is the key for Consumer-Orientation
(Decision making in the organization priories
consumers satisfaction over other concerns) which
is a key component of Market-Oriented Culture
(organization culture focus on the importance of
creating value for customers among all employees)

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Value
Utilitarian value: The value derived from a
product that helps the customer with some tasks
Hedonic value: The value derived from the
immediate gratification that comes from some
activity
Low UV
LOW HV Negative Position
High HV

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OK Position

High UV
OK Position
Super Position

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How CB help in building marketing strategy

Outcomes (Individual, Firm and Society)
Consumer Decision Process
Marketing Strategy (4/7Ps)
Market Segmentation STP
(Needs-set or Total-Value Concept)

Market Analysis (Company, Competitors,

Conditions and Consumers Perceptual Maps)

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The Nature of Consumer Behavior

Consumer Value Framework (CVF)
Decision Process

External Influences
-Culture
-Subculture
-Families
-Groups

Internal Influences
-Personality
-Learning
-Emotions
-Attitude

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(Situation)

Selfconcept
and Life
style

(Quality and
Switching ..)

- Problem
recognition
- Information
Search
- Pre-purchase
evaluation
- outlet selection
and purchase
- Post-purchase
process
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The Consumers Rights

The six basic consumers rights are:

The right to be safe
The right to choose freely
The right to be heard
The right to be informed
The right to education
The right to service

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Trends in Consumer Research

Consumer Social Responsibility
(CnSR) ([1]responsible living [counterfeits
software piracy] [2] Sustainable Consumption)

Transformative Consumer Research

(TCR) ([1]vulnerable populations (e.g., the poor,
illiterate, elderly, etc.), [2] negative consumer
behaviors (e.g., smoking, poor nutritional habits,
high-risk behaviors, etc.), [3] and positive
consumer behaviors (e.g., environmentally
responsible behavior, volunteer work, organ
donation, etc.)

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