Download 1_what is consumer behavior_fall09

What is Consumer Behavior?
Definition: the study of the processes involved when
individuals or groups select, purchase, use, or
dispose of products, services, ideas, or experiences
to satisfy needs and desires.
A PROCESS or Series of Steps:
• Acquisition
• Consumption
• Disposing
Consumer Behavior is a “Process”
Areas of Consumer Behavior
1. Internal Factors = within the self
 Perception

 Learning

 Memory

Personality
Emotions
Attitudes
 Motives
2a. Decision Making


2b. Situational factors

Rational perspective
Shortcuts


Time constraints
Retail environment
Contexts
3. External Factors = outside the self
 Group influence

 Culture

 Subcultures

Economic and Social Conditions
Demographics
Families and households
Why is Theory Important in Understanding CB?
A. Theory provides guidance
1. Overarching framework to explain behavior
2. Underlying principles explain observations
3. Hypotheses
B. Theory allows us to make predictions about factual events based on
our understanding of underlying principles.
C. Pitfalls to avoid when studying CB
1. “Me” mentality
2. Single-minded explanation
3. Application only
Applications of Consumer Behavior
1. Marketing Strategy
 competitive advantage
 reduce bad decisions
Marketing Strategy
Marketing strategies and tactics are based on explicit or
implicit beliefs about consumer behavior.
Decisions based on explicit assumptions and sound theory
and research are more likely to be successful than are
decisions based solely on implicit intuition.
Knowledge of consumer behavior reduces the odds of bad
decisions and market failures!
Marketing Strategy
and Consumer
Behavior
The Meaning of Consumption
 People often buy products not for what they do, but for
what they mean
 Consumers can develop relationships with brands:
Self-Attachment Concept
Nostalgic Attachment
Interdependence
Emotional Bonds
Applications of Consumer Behavior
1. Marketing Strategy
2. Public Policy
 protect consumers (e.g., FTC, FDA, SEC, EPA)
 consumer rights (safety, informed, redress,
choice)
Do Marketers Create Artificial Needs?
Objective of marketing: create awareness that
needs exist, not to create needs
 Need: a basic
biological motive
versus
 Want: one way that
society has taught us that
the need can be satisfied
Are Advertising & Marketing Necessary?
Does advertising foster materialism?
 Products are designed to meet existing needs;
 Advertising only helps to communicate their
availability
Advertisers are often blamed for promoting a
materialistic society by making their products as
desirable as possible.
 Do you agree with this?
 If yes, is materialism a bad thing?
 If no, what are your reasons?
Applications of Consumer Behavior
1. Marketing Strategy
2. Public Policy
3. *****Social Marketing *****
 drinking and smoking prevention
 literacy promotion
 charitable giving
 obesity prevent and/or exercise promotion
 environmental issues
The Dark Side of CB
 Assume we are rational decision makers trying to
maximize health and well-being of ourselves, families
and society
 BUT
 Consumer terrorism
 Additive consumption
 Compulsive consumption
 Consumed consumers