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What is
Consumer Behavior?
Chapter 1
Overview of Consumer Behavior

Every day interactions
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Important to:
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Marketers
Policymakers
Consumers
Consumer Behavior
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Two definitions:
1. As human behavior:
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“Set of value-seeking activities that take
place as people go about addressing
realized needs”
Basic Consumption Process
NEED
WANT
EXCHANGE
COSTS & BENEFITS
REACTION
VALUE
Consumer Behavior

Two definitions:
2. Study of consumers as they go about the
consumption process; study how they seek value to
address needs
Consumer Behavior
Anthropology
Economics
Consumer
Behavior
Sociology
Psychology
Marketing
How Are Consumers Treated?
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Two determinants
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How competitive is the
environment?
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License Bureau v. Upscale
restaurant
Consumer orientation v.
market orientation
How dependent on
repeat business?
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Relationship marketing
Touchpoint
Role of Consumer Behavior
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CB & Marketing
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Resource advantage
theory
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Products v. Attributes
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What do consumers give
up?
What are they looking
for?
Milkshake study
Understanding value
helps determine who
your competitors are
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Examples:
Role of Consumer Behavior
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Business Orientation
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Undifferentiated
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Differentiated
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Production
Wal-mart
Toyota
Niche
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One specific group
Role of Consumer Behavior
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CB & Society
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Purchasing behaviors
shape society
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What’s “cool” and “not
cool”
CB & Personal Growth
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Debt
Credit cards
Approaches to CB
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How can we study it?
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Interpretive research
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Qualitative
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Pros & cons
Phenomenology
Ethnography
Quantitative
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Pros & cons
CB is Dynamic
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CB changes over time
Internationalization
Technological changes
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TV ads
Internet
Changing demographics
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Changes in the family
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How does this affect their
CB?