1_what is consumer behavior_fall09
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Transcript 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