Intro_3 - Introduction to Management, Marketing Part I:...

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Introduction to Management, Marketing Part I: Consumption Dr. Catherine Dolan January 29, 2008
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Today’s Objectives To understand: • The importance of differentiating between the social/symbolic and functional value of products • The different frameworks for interpreting consumers, consumption and branding • How products/brands construct and communicate identities and social relations and the way marketing builds on (or fails to) this knowledge
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How does consumption relate to marketing? • Begin with close understanding of “the market” – consumer value and consumption practices – Use insights to drive strategy • Field “begins” with consumer research Source: Holt, Marketing
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Why do we consume? • Needs Versus Wants? Want: Preferences, desire • Types of Needs Biological needs Social needs Cultural needs Utilitarian needs Hedonic needs Source: Based on Solomon
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Maslow’s Hierarchy of Needs Source: Based on Solomon
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Criticisms of Maslow’s hierarchy • The model is too simplistic (i.e. order of needs etc) • It is too culture-bound • It emphasizes individual needs over group needs • Overlooks conflicts between needs Source: Based on Solomon
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Schudson: a wider set of needs • Need for connectedness • Need to be creditable – “ …in the present times, through the greater part of Europe, a creditable day-labourer would be ashamed to appear in public without a linen shirt, the want of which would be supposed to denote that disgraceful degree of poverty, which, it is presumed, no body can well fall into without extreme bad conduct (Adam Smith 1937, 822). • Need for luxuries Source: Schudson, Anthropology of Goods
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Frameworks/ Models for Interpreting Consumption • Economics • Psychology • Sociology • Anthropology
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Economics: The Premises Rational economic man (REM): •an informed decision-maker •Consumption decisions based on logical-empirical reasons & cost- benefit tradeoffs Source: Based on Denegri Knott
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Economics: The Premises, cont. • Informed by self- interest REM maximises utilities; • Consumers reward producers who offer the most utility over cost Source: Based on Denegri Knott
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Economics of consumption: Limitations • Theory is universal – No history, no society, no culture • Consumer is atomistic individual – No understanding of how media shapes consumption – No understanding of social structure, social change, culture (i.e. what about communal decision-making?) Source: Based on Denegri Knott
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Economics: no role for identity • Identity is fixed (gender, age, nationality etc.) • Because behaviour is mainly rational and identity fixed, consumer behaviour is stable predictable (premise of consumer choice models) • But human behaviour is complex; it cannot be reduced to rational decisions Source: Based on Denegri Knott
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Psychology: the premises • Focuses on the internal forces driving consumers’ behaviour • There are instinctive and learned responses underpinning how consumers relate to marketing information
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This note was uploaded on 04/12/2010 for the course ECON DEAM taught by Professor Vines during the Spring '10 term at Oxford University.

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Intro_3 - Introduction to Management, Marketing Part I:...

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