What is
Consumer Behavior?
Chapter 1
Overview of Consumer Behavior

Every day interactions

Important to:



Marketers
Policymakers
Consumers
Consumer Behavior

Two definitions:
1. As human behavior:

“Set of value-seeking activities that take
place as people go about addressing
realized needs”
Basic Consumption Process
NEED
WANT
EXCHANGE
COSTS & BENEFITS
REACTION
VALUE
Consumer Behavior

Two definitions:
2. Study of consumers as they go about the
consumption process; study how they seek value to
address needs
Consumer Behavior
Anthropology
Economics
Consumer
Behavior
Sociology
Psychology
Marketing
How Are Consumers Treated?

Two determinants

How competitive is the
environment?



License Bureau v. Upscale
restaurant
Consumer orientation v.
market orientation
How dependent on
repeat business?


Relationship marketing
Touchpoint
Role of Consumer Behavior

CB & Marketing

Resource advantage
theory



Products v. Attributes


What do consumers give
up?
What are they looking
for?
Milkshake study
Understanding value
helps determine who
your competitors are

Examples:
Role of Consumer Behavior

Business Orientation

Undifferentiated



Differentiated


Production
Wal-mart
Toyota
Niche

One specific group
Role of Consumer Behavior

CB & Society

Purchasing behaviors
shape society


What’s “cool” and “not
cool”
CB & Personal Growth


Debt
Credit cards
Approaches to CB

How can we study it?

Interpretive research

Qualitative




Pros & cons
Phenomenology
Ethnography
Quantitative

Pros & cons
CB is Dynamic



CB changes over time
Internationalization
Technological changes



TV ads
Internet
Changing demographics

Changes in the family

How does this affect their
CB?