Introduction to Behaviour

Exploring Consumer Behaviour

Professional Certificate in Marketing

Chandana Fonseka
 Things would change…so as consumers
Chandana Fonseka
Few Statistics of Sri Lanka

Urban Pop’n =
23%

49% 51%

5.0 m Avge H’hold

Households Size = 4.1

Sector Contribution % to
GDP
29

12 59

Growing at Agriculture Industry Services

Average
1% per year Household
Income
Population LKR 36,000
20.5 m people per Month
 Chapter Overview

• What is ?
• The evolution of the marketing concept
• Customer value, satisfaction, trust and
retention
• New technology and customer satisfaction
• Some macro conditions lead to change
consumer behaviour
• Model of consumer behaviour

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 What is Consumer Behaviour?

Consumer behaviour is defined as the behaviour that

consumers display in searching for, purchasing, using,
evaluating and disposing of products and services that
they expect will satisfy their needs

Search Purchase Use Evaluate Dispose

Behaviour
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 Types of Consuming Ends

2 types of consuming ends could be recognized based on

the purpose of purchasing and using

1. Personal consumers  Who buys goods and services for his

or her use, household use or as a gift to someone

2. Organizational consumers  Who buys goods and services

to run their organizations

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 Products

Consumer Organizational
Market Market

Convenience products Capital Equipment

Shopping Products Accessory Equipment

Specialty Products Raw material

Unsought Products Semi-furnished goods

Components and Parts

Supplies and services

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 The Evolution of Business Concepts

Production Concept  Focus towards manufacturing

skills to expand production and delivery.

Sales Concept  Focus towards selling more which are

produced by the manufacturing department

Product Concept  Focus towards modifying products

and services so that they will be different from
competitors

Marketing Concept  Focus towards consumers and their

preferences

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 Important Dimensions Emerged
through Marketing Concept

- Consumer Research

- Strategic Marketing  Segmentation,

targeting and positioning

- Unique selling proposition

- Integrated effort

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 An Extension to the Marketing Concept

Marketing Concept  Achieving organizational goals depend on knowing the

needs and wants of target markets and delivering the desired satisfactions
better than competitors do

Important modification/extension to the Marketing Concept

 Societal Marketing Concept – Be a good corporate citizen
considering well being and long run survival of the society
and nature.

Two considerations (responsibilities) were highlighted

1. Social Consideration  Corporate Social Responsibility

2. Ethical Consideration  Marketing Ethics

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 Drivers of Customer Relationship

- Customer Value
- Customer Satisfaction
- Customer Trust
- Customer Retention

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 Customer Value
Note: Will be discussed in detail later

The ratio between customer’s perceived benefits

and resources used to obtain those benefits.

Perceived benefits > Resources  Positive value

Perceived benefits < Resources  Negative value

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 Customer Satisfaction

The perception of the performance of the product

or service in relation customer’s expectations.
Expectations

Defectors Loyalists
 Dissatisfaction Delight 
Terrorists Apostles
Satisfaction

Experience
- E2 Cross -

Mercenaries  No genuinely loyal

Hostages  Unhappy and frequent complainers
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 Customer Trust

Refers to what customers

believe. What become loyal to
brands/products which they
trust.

Infact, ‘believe’ is a part of

culture, and will be discussed in
detail at a later chapter

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 Customer Retention (Loyalty)

It is more expensive to secure new customers

than to keep existing ones.

Loyal customers;
- buy more products
- Less price sensitive
- Cheaper to serve
- Spread positive word-of-mouth

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 The Model of Consumer Decision Making
Note: Will be discussed in detail later
External influences
Input Marketing Inputs Non-marketing Inputs
1.Family
1.Product 2.Informal sources
2.Promotion 3.Other non-commercial sources
3.Price 4.Social class
4.Channel of distribution 5.Subculture/culture

Consumer Decision Making

Process Psychological field
Need recognition Motivation
Perception
Pre-purchase search Learning
Personality
Evaluation of alternatives Attitudes

Experience

Post-decision behaviour
Output
Purchase Behaviour
1. Trail
2. Repeat purchase

Chandana Fonseka Post-purchase evaluation

Article
Review
 End

Thank you