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TOK Presentation: Consumer Behavior

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Aura Gilham

on 11 January 2013

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Transcript of TOK Presentation: Consumer Behavior

Case Study: BMW Free Will b) The ability to make decisions, unaffected
by external influences c) The ability to CHOOSE by yourself. a) The ability to act at one's own discretion, without the constraint of necessity or fate Matrix Partners preso! Harvard Business Review How to lower the cost of enterprise sales? Rene Birthday paradigm in the role of consumer behavior and marketing
Observation is crucial in deciding truth of statements and shifting away from subjectivity Logical Empiricism P _ _ _ _ _ _ _ _ _ _ h o l s h p Consumer
Behavior Aura Gilham 0404-008
Angela Zhou 0404-042 JIVE Buying Ethically Moral Perspective Business Ethics Dealing with Criticism of Business Behavior Aesthetics and Beauty Build Around the Buyers Journey? TOK But...
Is beauty a social construct? If so, are our choices governed by society? So, How do people choose? BMW But we are surrounded by advertisements and art... Does advertising affect our ability
to choose freely? "Third Place" "Perfect Cup of Coffee" Why are people willing to pay? Why do they want to feel like they belong? Why are they interested in Starbucks mission? Question Logical Empiricism What affect does beauty have on consumer behavior? Can we freely choose when the society has preordained what is beautiful through advertising? Questions: What moral standards does Toms uphold that influences customer loyalty? Knowledge Issue ~ Logical Empiricism
~ Free Will
~ Aesthetics and Beauty
~ Ethical Decision Making speculation observation Logical Empiricism Theory guess
what? Definition Factors Influencing
Consumer Behavior Questionable
Consumer Behavior Evaluate Options Obtains It Deploys it Right vs. Wrong? Recognizes need Consumer Behavior Ethics is Relative, not Ideal ? Tools Primary Goals for Production Conditions Keep Improving Production Conditions Leverage Social Media Change the we choose! way Ethics consumer ethics scale benefiting from questionable behavior benefiting from illegal activity benefiting at others' expense Case Study: Starbucks Advertising The question becomes: Is advertising an external influence? Advertising is designed to capture the eye and inspire curiosity.
ie.) diagonal lines, off-center focus, etc. ...and this leads us back to the idea of whether advertising affects our ability to make decisions! Favoring of Producers and Producing Countries Philosophical Elements Help me! T H N A K Y O U P R E Z I Case: Fairtrade Evolution of Customers who are more sensitive to socioeconomic needs Focus Statement to obtain enterprise sales here While success takes place here Why What How Paradigm: A worldview underlying the theories and methodology of a particular scientific subject. ~Kuhn Should the ways of knowing play a role in the ethical decision making of consumers? Does logical empiricism mean the observer
can make decisions based on the observed?
Is there free will? What are advertisements really selling? a) DESIGNED with the intent to influence the buyer
b)affects people by inspiring them to be like the advertised
c)doesn't always reflect reality Starbucks' service strategy accompanies quality products with customer friendly service and an attractive ambience. This kind of customer relation that Starbucks follows is one of the reasons that so many consumers of Starbucks went in for repeat purchases. contributors to consumer loyalty
ways an organization attempts to enhance product value
purpose of good purchase experience "Customer Satisfaction" "Creating a Starbucks Community" "Smart Partnerships" "Innovation" "Brand Marketing" increase the market share of "ethical products"
increase consumer's awareness of moral responsibility
potential political power
increase general willingness to listen and accept consumer criticism
use marketing ideas that appeal to morals positive buying
negative purchasing
company-based purchasing
combination of points to see which brand is most ethical no harm..
no foul taking advantage of consumer sovereignty Increasing # of consumers buying products with Fairtrade mark, which ensured fair and stable prices and decent working conditions
Corporates started using Fairtrade Advertisements Although BMW sales in North America have been growing steadily, many believe it is not as big a brand in NA as it is in Europe. Data from 2005 revealed that most people buying luxury cars did not even consider buying a BMW. As a result, the company attempted to appeal to the "creative class" rather than its original customer base of "yuppies." socioeconomic classification
aesthetics determined by society
paradigm of beauty Innovation Process Management "The Ultimate attraction" "We Swear" EXCLUSIVITY What factors affect our decision to buy a type of product? Does the effect of these factors render free will nonexistant? Utilitarian products: service
Hedonic products: desire Where does Beauty fit in? What IS beauty? Hedonistic conception: That which brings us pleasure is that which is beautiful. Beauty is such an order and construction of parts as, either by the primary constitution of our nature, by custom, or by caprice, is fitted to give a pleasure and satisfaction to the soul. … Pleasure and pain, therefore, are not only necessary attendants of beauty and deformity, but constitute their very essence. (Hume 1740, 299) Objective vs. Subjective
nature of beauty Kant: Must people agree
something is beautiful? Case Study: Dove Dove's new promotional campaign
tried to break away from the
stereotype images of beauty
portrayed by the media and
advertisements. The campaign
titled 'Campaign for real beauty'
caught the attention of the public.
What challenges did the company face while implementing the promotional campaign? "Talk to your daughter before the beauty industry does." intuition
logical empiricism (producer/consumer)
hedonic products
free will Do people make choices based on what is "popular"? logical empiricism->current beauty paradigm-> effect on advertising ->effect on free will->effect on public behavior-> consumer behavior What is art? Conclusion
subjective vs. objective
practically, science, history, art, etc can only get us so far
consumer decision making transcends four areas of knowledge
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