Consumer

Behavior-1
Consumer Behavior Background
1. Management
2. Marketing
3. Research Danny Abramovich
4. Segmentation
5. Consumer Behavior
Marketing Plan Specialist
6. Creativity

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0. Course Introduction, Main Topics

2
0. Course Introduction, Main Topics
Management, Marketing, Research

Segmentation, Consumer Behavior

3 Cre8ivity
0. Course Introduction, Main Topics
Management
Marketing
Research
Segmentation
Consumer Behavior
Creativity
4
 0. Course Introduction, Schedule
1. Management
part 2. Marketing
1
3. Research part
4. Segmentation 2
5. Consumer Behavior
part
3 6. Creativity
5
0. Course Introduction, Methodology

6 © Danny Abramovich
0. Course Introduction, Methodology
Management

Marketing

Marketing Research

Market Segmentation

Consumer Behavior

Creativity

7 © Danny Abramovich
0. Course Introduction, Why CB?
Ÿ Most marketing decisions & regulations
are based on CB assumptions.
Ÿ Most marketing practices that are
designed to influence CB, do influence
the firm, the individual & the society.
Ÿ CB theory provides management with
many proper questions to ask.
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0. Course Introduction, it’s all about€
CO NS UM ER

BE HA VI OR

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 0. Course Introduction, it’s all about€
CO NS UM ER
M A R K E

BE HA VI OR
T I N G

10
 0. Course Introduction, it’s all about€
CO NS UM ER
M A R K E
M A N A G

BE HA VI OR
T I N G
E M E N T

11
 0. Course Introduction, it’s all about€
CO NS UM ER
M A R K E
M A N A G

BE HA VI OR
T I N G
E M E N T

12 €
0. Course Introduction!

13 CB is taught since 1970’s

1. Management 4 Definition

Management is . . .

1. Management 4. Segmentation
14 2. Marketing 5. Consumer Behavior
3. Research 6. Creativity
1. Management 4 Definition
Ÿ Planning
Ÿ Executing
Ÿ Controlling

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1. Management 4 Methodology
Management

16 © Danny Abramovich
1. Management 4 Introduction

Ÿ Vision
Ÿ Strategy
Ÿ Tactics
Ÿ Standards & procedures

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1. Management 4 Introduction

Ÿ Vision is a mental image of a

possible and desirable
Ÿ Strategy future that is realistic,
Ÿ Tactics credible, and attractive.

Ÿ Standards

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1. Management 4 Introduction

Ÿ Vision A world in which buyers

and sellers can conduct
Ÿ Strategy commerce anywhere,
Ÿ Tactics anytime, and in any
way they choose.
Ÿ Standards

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1. Management 4 Introduction

Ÿ Vision Mobility expanding

into new areas…
Ÿ Strategy …life goes mobile.
Ÿ Tactics
Ÿ Standards

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1. Management 4 Introduction

Ÿ Vision
Ÿ Strategy
Ÿ Tactics
Ÿ Standards

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1. Management 4 Introduction

Ÿ Vision is concerned with the

firm’s choice of business,
Ÿ Strategy markets and activities, thus
Ÿ Tactics it defines the overall scope
and direction of the
Ÿ Standards business (Kay, 1996).

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1. Management 4 Introduction

Ÿ Vision The basis of our daily

commitment is to ensure
Ÿ Strategy the sustainable and
profitable growth of the
Ÿ Tactics company, while always
Ÿ Standards observing balance and
financial transparency.
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1. Management 4 Introduction

Ÿ Vision We work to help

Ÿ Strategy people and businesses
throughout the world
Ÿ Tactics realize their full
Ÿ Standards potential.

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1. Management 4 Introduction

Ÿ Vision
Ÿ Strategy
Ÿ Tactics
Ÿ Standards & procedures

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1. Management 4 Introduction

Ÿ Vision
Ÿ Strategy
Ÿ Tactics
Ÿ Standards & procedures

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1. Management 4 Introduction
Ÿ Planning
Ÿ Executing
Ÿ Vision Ÿ Controlling
Ÿ Strategy
Ÿ Tactics
Ÿ Standards & procedures
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1. Management 4 Business Plan

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1. Management 4 Business Plan

Business Plan

Financial Marketing Operational HR

Plan Plan Plan Plan

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1. Management!

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Course Main Topics
Management ü
Marketing
Research
Segmentation
Consumer Behavior
Creativity
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2. Marketing 4 Definition

Marketing is . . .

1. Management 4. Segmentation
32 2. Marketing 5. Consumer Behavior
3. Research 6. Creativity
2. Marketing 4 Definition

Marketing is the social and managerial

process by which individuals and
groups obtain what they need and want
through creating and exchanging
products and value with others.

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2. Marketing 4 Evolution

Production orientation
“Can we make it?”
Selling orientation
“Can we sell what we make?”
Marketing orientation
“Can we determine what consumers want
that we can make and sell profitably?”
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2. Marketing 4 Methodology
Management

Marketing

35 © Danny Abramovich
2. Marketing Plan 4 Definition

Marketing Plan is . . .

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2. Marketing Plan 4 Definition
A Marketing Plan is a written
document containing description and
guidelines for an organization’s or a
product’s marketing strategies, tactics
and programs - for offering their
products and services over the defined
planning period, often one year.
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2. Marketing Plan: No short-cuts!
Give a man a fish
and he eats for a
day, teach him to
fish and he eats
every day.
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2. Marketing Plan: No short-cuts!

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2. Marketing Plan: 4X4 Structure

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2. Marketing & Marketing Plan!

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Course Main Topics
Management ü
Marketing ü
Research
Segmentation
Consumer Behavior
Creativity
42
3. Research 4 Definition

Consumer Research (CR) is . . .

1. Management 4. Segmentation
43 2. Marketing 5. Consumer Behavior
3. Research 6. Creativity
3. Consumer Research4Methodology
Management

Marketing

Marketing Research

44 © Danny Abramovich
3. Consumer Research 4 Content
Ÿ Definition
Ÿ Research Approaches
Ÿ Secondary Data
Ÿ Primary Research Methods
Ÿ Projective Techniques
Ÿ Types of Survey Questions
Ÿ Sampling Techniques
Ÿ Upgrading Consumer Information
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 3. Consumer Research
The systematic gathering,
recording and analyzing of
Ÿ Definition
data that yields information
about the motives and needs
of consumers, in order to be
able to influence marketing
planning, execution & control.

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 3. Consumer Research
Ÿ Definition
Ÿ Research Approaches
4Positivism, Interpretivism
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A CB research approach
that focuses on consumer
decision making (objectivity).
Positivism
Interpretivism
A CB research approach
that focuses on the act of
consuming rather than on
the act of buying (subjectivity).
3. Consumer Research
PPositivist
ositivist Approach
Approach IInterpretivist
nterpretivist Approach
Approach

Socially
Socially
Objective
Objective Constructed
Constructed

Prediction
Prediction Understanding
Understanding

Independent
Independent Contextual
Contextual

Simultaneous
Simultaneous
Real
RealCause
Cause Shaping
Shaping

Separation
Separation Interaction
Interaction
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 3. Consumer Research
Positi- Interpreti-
vism vism
Nature Rationality: Complexity:
Ÿ Definition objective- no single right
Ÿ Research Approaches (General)
single reality or wrong
4Comparison
Goal (CB) predict understand
Methodology quantitative qualitative &
quantitative
Findings can be often not
generalized generalized
to larger to larger
populations populations

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 3. Consumer Research
Internal External
Ÿ Definition Company Proprietary
Ÿ Research approaches
Ÿ Secondary data records data
Non-proprietary
data

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 3. Consumer Research
Advantages Disadvantages
Ÿ Definition
+ availability - quality of data
Ÿ Research approaches
Ÿ Secondary data + inexpensive - limited to desk
4Advantages/ disadvant.
+ may shed light research.
on the matter.

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 3. Consumer Research
Surveys Observations
Mail @ * Direct/ Indirect
Ÿ Definition
Ÿ Research approaches Phone: e.g. CATI e.g. ethnograph
Ÿ Secondary data
Ÿ Primary research methods or omnibus vs. garbology
Interviews
Personal
Controlled
Focus Group Experiments

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CATI = Computer Assisted Telephone Interview
 3. Consumer Research
Desk Field
Ÿ Definition - Surveys - Interviews 1:1
Ÿ Research approaches
Ÿ Secondary data @* ( - Observations
Ÿ Primary research methods
4Desk vs. Field Research - Focus Groups
- Experiments

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 3. Consumer Research
Quantitative Qualitative
Ÿ Definition - Surveys - Interviews
Ÿ Research approaches
Ÿ Secondary data - Observations - Focus Groups
Ÿ Primary research methods
4Quantitative vs. Qual. - Experiments
y? Q?

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 3. Consumer Research
Research procedures
designed to identify
Ÿ Definition
Ÿ Research approaches consumer’s subconscious
Ÿ Secondary data
Ÿ Primary research methods perceptions & motivations:
Ÿ Projective techniques
- Word association… Bubble
drawing
- Sentence completion or
- Third person description…
- Psychodrawing
“preparing for a holiday”:
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 3. Consumer Research

Ÿ Definition
Ÿ Research approaches
Ÿ Secondary data
Ÿ Primary research methods
Ÿ Projective techniques
4Example

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 3. Consumer Research

Veto-criteria Q?
Ÿ Definition
Ÿ Research approaches Closed format Q?
Ÿ Secondary data
Ÿ Primary research methods
Ÿ Projective techniques Open format Q?
Ÿ Types of survey Questions
Demographic Q?
Keep It Short
& Simple
KISS
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 3. Consumer Research
Ÿ Definition
Ÿ Research approaches
Ÿ Secondary data
Ÿ Primary research methods
Ÿ Projective techniques
Ÿ Types of survey questions
Ÿ Sampling techniques
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Non-probability Sample g
Systematic Sample n
Population (universe)
i
Probability Sample
Simple Random l Quota
p Census
m Cluster
a Judgment
S Convenience
 3. Consumer Research
Ÿ Definition
Ÿ Research approaches
Ÿ Secondary data
Ÿ Primary research methods
Ÿ Projective techniques
Ÿ Types of survey questions
Ÿ Sampling techniques (ex. 1)
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Non-probability Sample g
Systematic Sample “n”
Population (universe)
i
Probability Sample
Simple Random l
p Example:
m call every
a “n”th person
S in the phone book.
 3. Consumer Research
Ÿ Definition
Ÿ Research approaches
Ÿ Secondary data
Ÿ Primary research methods
Ÿ Projective techniques
Ÿ Types of survey questions
Ÿ Sampling techniques (ex. 2)
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Non-probability Sample g
Systematic Sample “n”
Population (universe)
i
Probability Sample
Simple Random l
p the total
m group that
a the marketer
S wants to study.
 3. Consumer Research
When different segments g
are represented in “n”
Ÿ Definition the total sample. i
Ÿ Research approaches
Ÿ Secondary data
Ÿ Primary research methods
Ÿ Projective techniques
l Quota
Ÿ Types of survey questions p Census
Ÿ Sampling techniques (ex. 3)
m Cluster
a Judgment
S Convenience

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 3. Consumer Research
Ÿ Definition
Ÿ Research approaches
Ÿ Secondary data
Ÿ Primary research methods
Ÿ Projective techniques
Ÿ Types of survey questions
Ÿ Sampling techniques (ex. 4)
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When it is difficult to g
ask too many “n”s, “n”
everybody in selected i
areas (clusters) is
being asked. lQuota
p Census
m Cluster
a Judgment
S Convenience
 3. Consumer Research
CR Consumer
Ÿ Definition
Research (data)
Ÿ Research approaches
Ÿ Secondary data
Ÿ Primary research methods MIS Marketing
Ÿ Projective techniques
Ÿ Types of survey questions Information Sys.
Ÿ Sampling techniques (ex.)
Ÿ Upgrading Consumer Info.
CRM Customer
Relationship Mgt.
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3. Consumer Research 4 MIS
Marketing Decision
Databases of Databases of Support System
internal data external data (DSS)

Transaction
Business processing Databases
of valid
Marketing
transactions systems Marketing
(TPS)
transactions
for each
MIS applications
TPS databases

Sales by customer

Sales by salesperson Marketing

Expert System
Operational Sales by product
(ES)
databases Pricing report
Total service calls
Customer satisfaction
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Figure 9.9
3. Consumer Research4CRM & e-CRM
Is managing
consumer
research
information
complex?

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Modern Corporate Information Technology
Infrastructure and e-CRM
Suppliers Internal Customers
Analyze
Product Deliver Design
System to SCM Lifecycle CRM Voice
System Build
(IVR, ACD)
Demand Service
Planning Automation
ERP
Supplier Interaction

Customer Interaction
Collaborative Manufacturing
Planning Execution Distribution Industry-
Industry- Marketing
Legacy Order
Planning Specific Automation Conferencing
Systems Management
Solutions

Supply Sales
Warehouse Automation
E-Mail Planning Manu-
Manu- Human
Management Logistics
facturing Resources
Web
Manufacturing Storefront
Planning Mobile Sales
Portal/ Transportation Web/ (Prod. CFG)
Finance
Extranet Management Intranet
Transportation
Planning Field
E-Mail
Operational Service

EDI
Closed-
Closed-Loop Processing
(EAI Toolkits, ETLM tools,
Embedded Mobile Agents) Direct
Interaction
Conferencing
Knowledge/Content
Management
Data
Warehouse
Intelligence

Financial HR Customer Order Product

Data Mart Data Mart Data Mart Data Mart Data Mart
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E-Business
Analytical
3. Consumer Research!

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Course Main Topics
Management ü
Marketing ü
Research ü
Segmentation
Consumer Behavior
Creativity
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 Part Two out of Six

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