Transcript ch01 (2)
Chapter 1: What is CB, and Why Should I Care? Babin/Harris © 2009 South-Western, a division of Cengage Learning. Learning Outcomes 1. 2. 3. 4. 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 LO1 Human thought and actions Field of study © 2009 South-Western, a division of Cengage Learning. 1-3 Consumer Behavior as Human Behavior 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. 1-4 The Basic Consumption Process LO1 Need Want Exchange Costs and Benefits Reaction Value © 2009 South-Western, a division of Cengage Learning. 1-5 Consumption LO1 The process by which goods, services, or ideas are used and transformed into value. © 2009 South-Western, a division of Cengage Learning. 1-6 CB as a Field of Study Economics Psychology LO1 Social psychology Cognitive psychology Marketing Sociology Anthropology © 2009 South-Western, a division of Cengage Learning. 1-7 Why are consumers treated differently? LO2 How competitive is the marketing environment? How dependent is the marketer on repeat business? © 2009 South-Western, a division of Cengage Learning. 1-8 Some Terminology LO2 Consumer (customer) orientation Marketing orientation Relationship marketing Touchpoints © 2009 South-Western, a division of Cengage Learning. 1-9 Why Study CB? 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. 1-10 Business Orientations Undifferentiated marketing Differentiated marketing Serves multiple market segments each with a unique offering Niche marketing 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. 1-11 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 Quantitative Research Addresses questions about CB using numerical measurement and analysis tools. Not researcherdependent © 2009 South-Western, a division of Cengage Learning. 1-13 Trends LO5 Internationalization Technological changes Changing demographics © 2009 South-Western, a division of Cengage Learning. 1-14