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Chapter 1: What is CB, and
Why Should I Care?
Babin/Harris
© 2009 South-Western, a division of Cengage Learning.
Learning Outcomes
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2.
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5.
Understand the meaning of consumption and
consumer behavior.
Describe how consumers get treated differently in
different types of exchange environments.
Explain the role of consumer behavior in business
and society.
Be familiar with basic approaches to studying
consumer behavior.
Describe why consumer behavior is so dynamic
and how recent trends affect consumers.
© 2009 South-Western, a division of Cengage Learning.
1-2
CB Perspectives
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LO1
Human thought and actions
Field of study
© 2009 South-Western, a division of Cengage Learning.
1-3
Consumer Behavior as Human
Behavior
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LO1
Consumer behavior is the set of value
seeking activities that take place as
people go about addressing realized
needs.
© 2009 South-Western, a division of Cengage Learning.
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The Basic Consumption
Process
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LO1
Need
Want
Exchange
Costs and Benefits
Reaction
Value
© 2009 South-Western, a division of Cengage Learning.
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Consumption
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LO1
The process by which goods, services,
or ideas are used and transformed into
value.
© 2009 South-Western, a division of Cengage Learning.
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CB as a Field of Study
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Economics
Psychology
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LO1
Social psychology
Cognitive psychology
Marketing
Sociology
Anthropology
© 2009 South-Western, a division of Cengage Learning.
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Why are consumers treated
differently?
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LO2
How competitive is the marketing
environment?
How dependent is the marketer on
repeat business?
© 2009 South-Western, a division of Cengage Learning.
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Some Terminology
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LO2
Consumer (customer) orientation
Marketing orientation
Relationship marketing
Touchpoints
© 2009 South-Western, a division of Cengage Learning.
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Why Study CB?
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LO3
Input to business/marketing strategy
Force that shapes society
Input to making responsible decisions
as a consumer
© 2009 South-Western, a division of Cengage Learning.
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Business Orientations
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Undifferentiated marketing
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Differentiated marketing
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Serves multiple market segments each with a
unique offering
Niche marketing
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LO3
Same basic product offered to all customers
Specialize in serving one market segment with
particularly unique demand characteristics
© 2009 South-Western, a division of Cengage Learning.
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CB and Personal Growth

Studying CB helps consumers make better
decisions by understanding:
1.
2.
3.
4.
5.
LO3
Consequences associated with poor budget
allocation.
The role of emotions in consumer decision
making.
Avenues for seeking redress for unsatisfactory
purchases.
Social influences on decision making, including
peer pressure.
The effect of the environment on consumer
behavior.
© 2009 South-Western, a division of Cengage Learning.
1-12
Approaches to Studying CB

LO4
Interpretive Research
 Seeks to explain
the inner meanings
and motivations
associated with
specific
consumption
experiences.
 Qualitative
 Researcherdependent
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Quantitative Research
 Addresses
questions about CB
using numerical
measurement and
analysis tools.
 Not researcherdependent
© 2009 South-Western, a division of Cengage Learning.
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Trends
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LO5
Internationalization
Technological changes
Changing demographics
© 2009 South-Western, a division of Cengage Learning.
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