INSTRUCTORS MANUAL - Consumer Behaviour Eighth Canadian Edition Mich...

INSTRUCTOR’S MANUAL

Consumer Behaviour Eighth Canadian Edition Michael Solomon Kelley J. Main Katherine White Darren W. Dahl 1 / 4

Copyright © 2021 Pearson Canada Inc.1

CHAPTER 1

An Introduction to Consumer Behaviour

SUMMARY OF CHAPTER OBJECTIVES

When students finish this chapter, they should understand why:

1.1 Consumer behaviour is a process.• Consumer behaviour is the study of the processes involved when individuals or groups select, purchase, and use or dispose of products, services, ideas, or experiences to satisfy needs and desires. A consumer may purchase, use, and dispose of a product, but these functions may also be performed by different people.

1.2 Marketers must understand the wants and needs of different consumer segments.• Market segmentation is an important aspect of consumer behaviour. Consumers can be segmented along many dimensions, including product usage, demographics (the objective aspects of a population, such as age and gender), and psychographics (psychological and lifestyle characteristics). The importance of relationship marketing means that marketers are much more attuned to the wants and needs of different consumer groups over the long terms. In addition, consumers may be thought of as role players who need different products to help them play their various parts.

1.3 Our choices as consumers relate in powerful ways to the rest of our lives.• Marketing activities exert an enormous impact on individuals. Consumer behaviour is relevant to our understanding of both public policy issues (e.g., ethical marketing practices) and the dynamics of popular culture.

• The Internet has transformed the way consumers interact with companies and with each other. Online commerce allows us to locate obscure products from around the world, and consumption communities provide forums for people to share opinions and product recommendations. The benefits are accompanied by potential problems, including the loss of privacy and the deterioration of traditional social interactions as people spend more time online.

1.4 Marketers must be aware of consumer trends.• As society changes, so too does consumption. More recently, we have seen movement toward more of a sharing economy, preferences for simplicity, anonymity, authenticity and personalization, growing recognition of the importance of diversity, and a focus on health and wellness, just to name a few.

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Instructor’s Manual for Consumer Behaviour: Buying, Having, Being, 8

th Canadian Edition Copyright © 2021 Pearson Canada Inc.2

1.5 Ethical issues in marketing and consumer behaviour are important.• Society is placing ever-growing emphasis on the importance of ethics in business practice. Many organizations and associations create and follow rules of conduct that demonstrate the importance of values such as honesty, fairness, respect, and integrity.• Many firms have focused on increasing their actions through corporate social responsibility efforts as well as green and social marketing campaigns.

1.6 There is a “dark side” to some behaviours that can have negative impacts on consumers and society.• Consumer behaviour can also have a “dark side,” which includes outcomes such as addictive consumption, compulsive consumption, and illegal activities.

1.7 Many different research methodologies can be used to understand consumer behaviour.• Primary research is research that is conducted specifically to address the research question at hand. Secondary research refers to research that has been conducted by another party and can be applied to the research question at hand.

• While the majority of consumer research has traditionally been conducted using surveys, a number of other research methodologies are being used by marketers that seek consumer insight. Focus groups, in-depth interviews, observation, qualitative methods, netnography, and experimental approaches represent additional research methods that can be utilized to understand consumer behaviour.

LECTURE/DISCUSSION IDEAS

Lecture Suggestions:

(a) The outline below closely follows the outline in the text.

(b) Marked with  you will find additional Real World Applications of the principles and concepts of consumer behaviour not included in your text. You may want to include some of these in your lecture.

(c) In italics, you will find suggestions for Class Interaction Opportunities that should help get a discussion started. It is virtually impossible to do everything that is included here in your course. One way to use the Lecture/Discussion Ideas is to highlight the portions of the outline you would like to use in class, the questions you would like to pose, and the slides you will need to help a class flow more smoothly.

(d) Consider using Marketing Opportunity 1 to illustrate needs as moving targets. This box discusses how successful companies address ever changing customer needs. Everyone needs to keep innovating to stay ahead of changing customer needs and the marketplace. 3 / 4

Chapter 1: An Introduction to Consumer Behaviour

Copyright © 2021 Pearson Canada Inc.3 For example, BMW is highly sensitive to such key trends (i.e. environmentally friendly products, congested roadways etc.)

(e) The Tangled Web in this chapter provides a great tool for ethical debate. Consider introducing the elements of this box to engage students in discussion on the use of big data analytics and information sharing for the use of marketing and promotion.

• What Is Consumer Behaviour?

It is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and

desires. Consumer Behaviour: People in the Marketplace -- covers topics such

as demographics, psychographics, reference groups, consumption communities, brand loyalty, market segmentation strategies

• Consumer Behaviour is a Process – Ongoing, not a static situation

Marketers now recognize that consumer behaviour is an ongoing process, not merely what happens at the moment a purchase is made. See figure 1.1 (Some Issues That Arise during Stages in the Consumption Process).

II. CONSUMERS' IMPACT ON MARKETING STRATEGY – Consumer research is useful in defining and redefining a market

• Segmenting Consumers – Often begins with observing demographics, geography

and psychographics

• Demographics:

• Age Gender Family structure and life stage Social class and income Ethnicity

• Geography
• Psychographics

Class Interaction Opportunity: What are some products that are primarily segmented by demographics? What are some products (brands) that use psychographics? Why?

• Segmenting by Relationship and Big Data

• Relationship marketing involves making an effort to interact with customers

on a regular basis, giving them reasons to maintain a bond with the company over time.

• Database Marketing- tracking consumer buying habits and crafting products

and messages tailored to people’s wants and needs based on this information.

• Big Data involves the collection and analysis of extremely large datasets
• Types of relationships a person might have with a product:
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