Download Ch01 - TTU :: RCOBA :: Yong Kim

Chapter 1
What is CB and Why Should I Care?
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcomes
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Understand the meaning of consumption and
consumer behavior
Describe how competitive marketing environments
lead to better outcomes for consumers
Explain the role of consumer behavior in business
and society
Be familiar with basic approaches to studying
consumer behavior
Appreciate how dynamic the field of consumer
behavior continues to be
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Consumer Behavior Perspectives
• Human thought and action involved in
consumption
• A field of study (human inquiry)
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Consumer Behavior as
Human Behavior
• Consumer behavior - Set of value-seeking
activities that take place as people go about
addressing and attempting to address realized
needs
– A process kicks in as the consumer sets out to find
ways to fill the need—thinking, feeling, behaving
culminating in value
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Consumption
• Process by which goods, services or ideas are
used and transformed into value
• Marketer and the consumer interact to
produce value
• Consumption outcomes affect consumer
well-being by affecting quality of life
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Consumer Behavior as a Field of Study
• CB is the science of studying how consumers
seek value in an effort to address real needs
• As a field of study, CB is a very young field—
books on CB date from the 1960s
• CB researchers continue to expand the
knowledge base at a fast pace
• CB field has family roots in other
disciplines—economics, psychology, social
psychology, marketing etc
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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How are Consumers Treated?
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Every organization is not consumer-oriented
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Some organizations can survive while treating
customers little better than dirt
Others need to pamper customers just to have a
chance of surviving
Organizations must determine the importance
of serving customers
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How competitive is the marketing environment?
How dependent is the marketer on repeat business?
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Firm Orientations and Consumers
• Consumer orientation - A business’s priority
is consumer value and satisfaction
• Market orientation - Organizational culture
emphasizing consumer value
• Stakeholder marketing - Recognizes that all
stakeholders are involved in and/or are
affected by the firm’s marketing in some way
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Relationship marketing and CB
• Relationship marketing - A firm’s marketing
activities aimed at increasing repeat business
• Touchpoints - Direct contacts between the
firm and a customer
• Customer–marketer relationship will
continue only as long as both parties see the
partnership as valuable
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Why Study CB?
• Input to business/marketing strategy
• Force that shapes society
• Input to making responsible decisions as a
consumer
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Resource-Advantage Theory
• Explains why companies succeed or fail
• Companies succeed by acquiring more
resources from consumers and in turn using
those resources to gain advantages in
physical and intellectual capital
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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What do people buy?
• To buy something, a consumer gives up
resources in the form of time, money, and
energy in return for the product
• A product is a potentially valuable bundle of
benefits
• Emphasis lies in the value the customer
receives rather than the product itself
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Ways of Doing Business
• Undifferentiated marketing - The same basic
product is offered to all customers
– Production-oriented
• Differentiated marketing - Serving multiple
market segments each with a unique product
offering
– Market-oriented
• Niche marketing - Serving one market segment
with particularly unique demand characteristics
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
CB and Society
• Consumer behavior creates the society in
which we live and serves as an important
source of input to public policy in a free
society
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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CB and Personal Growth
• Studying CB helps consumers make better
decisions by understanding:
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Consequences of poor budgeting
Role of emotions
Avenues for redress
Social influences
Environmental effects
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Different Approaches to Studying CB
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Interpretive research - Seeks to explain the inner
meanings and motivations associated with
specific consumption experiences
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Phenomenology: Represents the study of
consumption as a “lived experience”
Ethnography: Involves analyzing the artifacts
associated with consumption
Quantitative research - Addresses questions
about consumer behavior using numerical
measurement and analysis tools
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Consumer Behavior is Dynamic
• The way marketers respond to consumers is
changing dramatically due to:
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Internationalization
Technological changes
Changing communications
Changing demographics
Changing economy
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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