Consumer Behaviour

1. Consumer Behaviour Tomas Bata University - Zlín Faculty of Management and Economics Marisa Roriz Ferreira School of Management and Technology of Felgueiras (ESTGF) Porto Polytechnic (IPP) mferreira@estgf.ipp.pt

2. Consumer behavior 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. Solomon, 2006

3. Consumer’s Perspective Marketer’s Perspective How are consumer attitudes toward products formed and changed? What cues do consumers use to infer which products are superior to others? How does a consumer decide that he needs a product? What are the best sources of information to learn more about alternative choices? Prepurchase issues Is acquiring a produc a stressful or plesant experience? What does the purchase say about the consumer? How do situational factors, such as time pressure or store displays, affect the consumers’s purchase decision? Purchase issues What determines wether a consumer will be satisfied with a product and wether he will buy it again? Does this person tell others about his experience with the product and influence their purchase decisions? Does the produc provide pleasure or perform its intend function? How is the product eventually disposed of, and what are the environmental consequences of this act? Postpurchase issues

4. Consumers’ Impact on Marketing Strategy • Consumer response is the ultimate test os wether a marketing strategy will succed • Data about consumers help organizations define the market and identify threats and opportunities to a brand • Also helps to ensure that the product continues to appeal to its core market

6. The process of market segmentation identifies groups of consumers who are similar to one another in more ways and then devises marketing strategies that appeal to one or more groups

7. Popular culture consisting of the music, movies, sports, books, celebrities and other forms of entertainment consumed by the mass market is both a product and an inspiration for marketers

9. Kenya, 2007

12. Madrid, 2007

15. Meaning of consuption • People often buy products not for what they do, but for what they mean • This does not imply that a product´s basic function is unimportant, but rather that the roles products play in our lives extend well beyond the tasks they perform

17. Marketing Ethics and Public Policy • Business ethics are rules of conduct that guide actions in the marketplace • Notions of right and wrong differ among people, organizations and culture Equilibrium

18. Do marketers manipulate consumers? • Do marketers give people what they want or do they tell what they tell people what they should want? • Do the marketers create artificial needs?

19. A need is a basic biological motive; a want represent one way that society has thaught us that the need can be satisfied. Foe example, thirst is biologically based; we taught to want Coca-cola to satisfy that thirst rather than, say, milk. Thus the need is already there, marketers simply recommend ways to satisfy it. A basic objective of marketing is to create awareness that need exist, not to create the needs

21. A consumer purchase is a response to a problem

22. Figure: Stages in Consumer Decision Making

23. Because some purchase decisions are more important than others, the amount of effort we put into each one differs

25. Consumers do follow these decision-making steps when making some purchases, but consumers do not go through this elaborate sequence every time they buy something

26. Exercise - Text

27. Consumers as Individuals Motivations

28. Motivation refers to the process that lead people to behave as they do • We can have an utilitarian or hedonic need

29. The degree to which a person is willing to expend energy to reach one goal as opposed to another reflects his or her underlying motivation to attain that goal • Many theories have been advanced to explain why people behave the way they do

30. People are born with a need for certain elements to maintain life, such as food, water, air… These are called biogenic needs • People have many other needs that are innate

31. For example: need for status, power or affiliation

32. Much research has been done on classifying human needs: • Henry Murray • David McClelland • Abraham Maslow

33. Henry Murray • Delineates a set of 20 psychogenic needs that result in specific behaviour • These include such dimensions as autonomy, defendance and play

34. David McClelland • Focus on specific needs and their ramifications for behaviour • Important needs: affiliation, power and uniqueness

35. Abraham Maslow Travel, education… Cars, furniture… Clothing, drinks… Insurance, alarm systems... Medicine, generics...

36. Simplistic application – gardening example • Physiological – “I like to work in my soil” • Safety – “I fell safe in my garden” • Social – “I can share my produce with others” • Ego – “I can create something of beauty” • Self-actualization – “My garden gives me a sense of peace”

37. Another problem is that a religious person might not agree that physiological needs must be satisfied before belongingness • The point is that this hierarchy is helpful to marketers because it reminds us that consumers may have different needs priorities in different consuption situations

38. Nonprofit Volunteers Attraction and Retention in NGO’s

40. Theoretical Framework • Volunteer is an individual that offers his/her service to certain organisation, without waiting a monetary compensation, service that might originate benefits to him/her and to othersShin and Kleiner (2003) • Many organisations depend, exclusively, of volunteer work • Formal Voluntarism Parboteeah, Cullenb & Lim, 2004; Soupourmas & Ironmonger, 2001

41. Theoretical Framework - Attraction • For many organisations, volunteers represent a large part of the workforce and, sometimes, smaller organisations rely exclusively on volunteers work Jäger, Schmidt & Beyes, 2007 • Some organisations do not need a big effort to attract volunteers, although this process is difficult for the majority Wilson & Pimm 1996 • Communication task  to attract and retain volunteers (consider the variety of factors that influence individuals and make them donate their time to voluntarism programs)Dolnicar & Randle, 2004

43. Theoretical Framework - Attraction • The extensive literature on organisational behaviour of paid employees cannot be applied to volunteer work because there are key differences between the two groups involved: • Monetary questions • Available time • Affiliation • Dependence • Informal recruitment • Norms and values • Evaluation • Motivations Cnaan & Cascio, 1998

44. Theoretical Framework - Attraction • Motivations derived from studies on professionalized individuals represent important and indispensable foundations for the understanding of motivations in the area of voluntarism

48. Theoretical Framework - Retention • The volunteers retention in NGO’s is very important because, probably is more efficient (in terms of costs) than recruit new elements Isham, Kolodinsky & Kimberly, 2004 • Retain actual volunteers can result in continuous and interpersonal relations between who supplies and who benefits the service, allowing an improvement in its quality

49. Theoretical Framework - Retention Satisfaction • Satisfaction that a volunteer can take from her/his experience can have a big impact in his decision of continue to collaborate with an organisation Cnaan & Goldberg-Glen, 1991; Costa, Chalip & Green, 2006; Doherty & V.Carron, 2003 • Assure volunteers satisfaction is crucial to their motivation and retention Trogdon, 2005 • Literature suggests that satisfaction can be a critical factor in an individual decision of remain or not in an organisation Mesch, Tschirhart, Perry & Lee, 1998

50. Theoretical Framework - Retention Commitment • Commitment is a psychological state that characterizes the employee’s relationship with the organisation and has implications for the decision to continue or discontinue membership in the organisation Meyer & Allen, 1991 • A strong relation exists between volunteers’ satisfaction and the level of commitment in voluntarism programs Cnaan & Cascio, 1998; Nunes, Reto & Carneiro, 2001