UC - CONSUMER BEHAVIOUR MRd

Introduction to Consumer Behavior

  • Exam structure: 1 group work (presentation) and 1 written exam.

  • Written exam includes 10 statements (True or False) with explanations.

  • Passing requires a minimum of 5 correct answers.

  • Presentation focuses on consumer behavior related to a chosen product.

  • Group size should ideally be 3 (maximum 5).

Topic 1: Sources, Aims, and Scope of Consumer Behavior

1.1 The Concept of Consumer Behavior

  • Study of processes used by individuals, groups, and organizations in purchasing goods/services.

  • Analyzes decision-making processes of buyers.

  • Multidisciplinary approach: economic, psychological, sociological factors affecting buying decisions.

1.2 Key Factors Influencing Consumer Behavior

  1. Economic Factors

    • Prices influence consumer choices.

    • Concept of Homo Economicus (rational consumers).

    • Consumers aim for maximum satisfaction at minimum cost.

  2. Internal Factors

    • Psychological aspects (biological drives, pain, pleasure).

    • Influences of context on decision-making.

  3. External Factors

    • Social influences (groups, family, culture).

    • Cultural appropriations and norms affect consumer loyalty.

1.3 Understanding Consumer Behavior

  • Needs vs. wants: Marketing creates desires based on common needs.

  • Consumption linked to a range of motivations, including social interactions.

Topic 2: The Role of Consumers in Economic Theory

2.1 Assumptions about Homo Economicus

  • Consumers are rational and strive for utility maximization.

  • Markets are influenced by irrational behaviors due to emotional factors.

2.2 Supply and Demand Theory

  • Demand: Willingness of consumers to purchase goods at specified prices.

  • Price dynamics based on demand fluctuations.

2.3 Price Elasticity of Demand

  • Measures consumer sensitivity to price changes.

    • Elastic demand: Significant change in quantity demanded with price change.

    • Inelastic demand: Minor change in quantity demanded regardless of price change.

Topic 3: Complex Choice Models

3.1 The Hedonic Model

  • Utility derived from a product's attributes rather than the product itself.

  • Brand equity relates to perceived quality and consumer expectations.

3.2 Discrete Choice Models

  • Consumers select products based on highest utility without ranking all options.

Topic 4: Intelligence

4.1 Defining Intelligence

  • Measured through various cognitive tests.

  • Distinction between innate intelligence and acquired knowledge.

4.2 Cognitive Styles

  • Holists vs Serialists in processing information.

    • Holists: Broad approach, focus on overall experience.

    • Serialists: Detailed, step-by-step information gathering.

Topic 5: Personality Structure

5.1 The Concept of Personality

  • Internal vs external aspects of personality.

  • Dynamic & consistent behaviors drive individual identities.

5.3 Personality's Influence on Consumer Behavior

  • Brand personality can attract consumers.

    • Example: Coca-Cola vs. Pepsi targeting different demographics.

Topic 6: Learning

6.1 Definition of Learning

  • Processes that lead to knowledge change through experiences.

6.2 Behaviorist vs. Cognitive Theories

  • Behaviorist theories focus on observable actions.

  • Cognitive theories pay attention to internal processes like problem-solving.

Topic 7: Perception

7.1 Definition of Perception

  • Coherence and meaning derived from sensory input.

7.2 Factors Affecting Perception

  • External (size, intensity, position) and internal factors (motivation, interests).

Topic 8: Motivation

8.1 Definition and Process of Motivation

  • Mixture of wants and drives that seek satisfaction.

  • Motivation driven by specific needs.

8.3 The Hierarchy of Needs

  • Maslow’s model: physiological, security, social, esteem, and self-actualization needs.