Documente Academic
Documente Profesional
Documente Cultură
CHAPTER-1
INTRODUCTION OF CONSUMER
BEHAVIOR
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Remember Me?
I'm the fellow who goes into a restaurant, sits down and
patiently waits while the waitresses do everything but take
my order. I'm the fellow who goes into a department store
and stands quietly while the sales clerks finish their little
chitchat. I'm the man who drives into a gasoline station and
never blows his horn, but waits patiently while the attendant
finishes reading his comic book.
"Yes, you might say, I'm a good guy. But do you know who else I
am? I am the fellow who never comes back, and it amuses
me to see you spending thousands of dollars every year to get
me back into your store, when I was there in the first place,
and all you had to do to keep me was to give me a little
service; show me a little courtesy."
Consumers
Those who engage in consumption activities
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Examples of Consumption
(and why it is just not buying)
Personal Perfume
Created for you, and only you.
Based on your style, taste, activities etc.
Only $32,000
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What Does it Mean to Study Consumer
Behavior?
It is a study of the feelings, thoughts, and behaviors of
consumers.
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What is Marketing Exchange?
Marketing is an exchange process between the consumer and
the producer benefits are exchanged for profits; more
concretely, goods and services exchanged for money.
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Why should Consumer Behavior be
Studied
Suppose, your product is not selling well. Should you
decrease the price, increase advertising, offer
consumer promotions?
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How to Study Consumer Behavior:
A Real World Application of
How Studying Consumer Behavior Facilitates Marketing Exchanges
Activebuyersguide.com is a website which
assesses your goals, preferences, what you
like and dont like about the features of
products and then creates a list of products
that fit your needs.
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Returning to Consumer Behavior
What do we study?
Primarily, three aspects
Affect/Cognition:
Feelings (I love the restaurant)
Thoughts (Rs.20.99 for a bowl of soup? Why is it so expensive?)
Behavior:
Action (Going to the restaurant)
Environment:
Context (The lighting in the restaurant)
In other words, we will be examining consumers affective/cognitive and
behavioral responses in the environmental context.
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Consumer Behavior Perspectives
Field of Study
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Consumer Behavior as Human Behavior
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Exhibit 1.1
The Basic Consumption Process
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Consumption
Process by which goods, services or ideas are
used and transformed into value.
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Exhibit 1.2: Consumer Behavior and Closely Related
Disciplines
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Describe how consumers get
treated differently in various
types of exchange
environments.
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How are Consumers Treated?
Local
Fine
restaurant
UPPERCUT IMAGES/GETTY IMAGES
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Questions to Consider
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Some Terminology
Consumer
Market
(customer)
orientation
orientation
Relationship
Touchpoints
Marketing
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Explain the role of consumer
behavior in business and society.
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Why Study CB?
Input to business/marketing
strategy
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Exhibit 1.3 How Old are These
Companies?
Source: All dates taken from company websites. Samsung was originally founded in 1938 but as a Korean food exporter. In 1969,
Samsung Electronics was created.
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Exhibit 1.4
Different Ways of Doing Business
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LO3 CB and Society
As this billboard shows, attitudes toward smoking have
certainly changed over the last few decades. Smoking
isnt so cool.
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CB and Personal Growth
Consequences of
Role of emotions
poor budgeting
Environmental
effects
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LO5 Trends
Internationalization
Technological Changes
Changing Communications
Changing Demographics
MIKE KEMP/RUBBERBALL/JUPITERIMAGES
Changing Economy
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LO5 Internationalization
Starbucks is
everywhere!
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Defining Consumer Behavior
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What is Consumer Behavior?
The study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of
products, services, experiences, or ideas to satisfy needs and
the impact that these processes have on the consumer and
society
-- Hawkins, Best, and Coney 2004
The study of the cognitive, emotional, and physical
activities associated with the perception, evaluation, choice,
acquisition, use, and disposition of goods and services.
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Why Study Consumer Behavior?
The Marketing Concept:
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, and services to create more satisfying exchanges
than the competition.
Corollary:
Success in the marketplace requires: knowing, then
attracting, satisfying, and retaining customers.
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Influences on Consumer Behavior
Psychological core
Culture: External Influences
Process of Making Decisions
CB Outcomes
Groups Interested in Consumer
Behavior Issues
Marketing Managers
Consumers
Ethicists
Why Study Consumer Behavior?
Marketing applications of
consumer behavior:
Market segmentation
Target market selection
Positioning
Product or service decisions
Pricing decisions
Distribution decisions
Promotion decisions
Issues During Stages in the
Consumption Process
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Consumers Impact on Marketing
Strategy
Understanding consumer behavior is good
business.
Firms exist to satisfy consumers needs, so
Firms must understand consumers needs to satisfy
them.
The Process of Marketing Segmentation:
Identifies Groups of Consumers Who are Similar to
One Another in One or More Ways, and
Devises Marketing Strategies that Appeal to
One or More of These Groups.
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Segmenting Consumers by
Demographic Dimensions
Demographics are Statistics That Measure Observable Aspects of a
Population Such As:
Geography Age
Race and
Ethnicity Gender
Social Class
Family Structure
and Income
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Consumers Impact On Marketing
Strategy: Building Bonds With Consumers
Relationship Marketing occurs when a company
makes an effort to interact with customers on a
regular basis, and gives them reasons to maintain
a bond with the company over time.
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Marketings Impact on Consumers:
The Meaning of Consumption
Self-Concept Attachment
Helps to Establish the Users Identity
Nostalgic Attachment
Serves as a Link With a Past Self
Interdependence
Part of the Users Daily Routine
Love
Elicits Bonds of Warmth, Passion, or Other
Strong Emotion
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Marketings Impact on Consumers:
Consumption Typology
Consumption Typology Explores the Different
Ways That Products and Experiences Can Provide
Meaning to People.
There Are 4 Distinct Types of Consumption
Activities:
An Emotional or Aesthetic
Consuming as Experience
Reaction to Consumption Objects
Virtual Consumption
Business to Consumer Selling (B2C Commerce)
Consumer to Consumer Selling (B2B Commerce)
Virtual Brand Communities
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Other Marketing Ethics Issues
Do Marketers Create Artificial Needs?
Response: Marketing attempts to create awareness
that these needs do exist, rather than to create them.
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The Dark Side of Consumer
Behavior
Compulsive Consumption Addictive Consumption
>Behavior is Not Done by Choice
> Gambling
>Gratification is Short-Lived
>Strong Feelings of Regret or
Guilt Afterwards
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Interdisciplinary Influences
Individual Focus
Experimental Psychology
Clinical Psychology
Developmental Psychology
Human Ecology
Microeconomics
Social Psychology
Sociology
Macroeconomics
Semiotics/Literary Criticism
Demography
History
Cultural Anthropology
Social Focus
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Two Perspective on Consumer
Research
Positivist Interpretivist
Approach Approach
Socially
Objective
Constructed
Prediction Understanding
Independent Contextual
Simultaneous
Real Cause
Shaping
Separation Interaction
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Taking it From Here:
Saba (II), ____ (III), And cr (IV)
Section II: Consumers As Individuals
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The Wheel of Consumer Behavior
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Exercise # 1
Out of Class Exercise
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Chapter # 2
How Consumers Analysis Affects Business
Strategy
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Implementation
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Organization Consumer
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Chapter # 3
The Consumer Decision Process
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Influence memory
Memory is influenced by Environmental
Influences and Individual Differences
Environmental Influences are Culture, Social
Class, Personal Influences, Family and Situation
Individual Differences are Consumer Resources,
Motivation, Knowledge, Attitudes, Personality,
Values and Lifestyle
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Purchase
Individual differences/ Preferences play the most
important role at the time of purchase
Pre-Purchase evaluation of Alternative also help
consumers prioritize the alternative at the time of
purchase
At this stage consumers select particular retail
outlet for purchasing purpose
A consumer may switch retailers based upon
schemes, sales, or right assortment of brands
A consumer may buy an entirely different product
or brand due to Point of Purchase Influences or
salesmanship
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CONSUMPTION
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Post-Consumption Evaluation
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DIVESTMENT
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CONSUMER REPEAT PURCHASE
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