Consumers Behavior What is Consumer Behavior?

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Consumers Behavior
What is Consumer Behavior?
• Consumer Behavior:
– 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
• Consumer Behavior is a Process:
– Exchange: A transaction in which two or more
organizations give and receive something of value
Consumer Behavior
Buying, Having, and Being
Sixth Edition
By Michael R. Solomon
1-1
Some Issues That Arise During Stages in
the Consumption Process
1-2
Consumer Behavior Involves
Many Different Actors
• Consumer:
– A person who identifies a need or desire, makes a
purchase, and then disposes of the product
• Many people may be involved in this sequence of
events.
– Purchaser / User / Influencer
• Consumers may take the form of organizations
or groups.
1-3
1-4
1
Consumers’ Impact on
Marketing Strategy
• Market Segmentation:
– Identifies groups of consumers who are similar to
one another in one or more ways and then devises
marketing strategies that appeal to one or more
groups
• Demographics:
What are the segments of
these brands ???
– Statistics that measure observable aspects of a
population
• Ex.: Age, Gender, Family Structure, Social Class
and Income, Race and Ethnicity, Lifestyle, and
Geography
1-5
Consumers’ Impact on
Marketing Strategy (cont.)
1-6
Marketing’s Impact on Consumers
• Relationship Marketing: Building
Bonds with Consumers
• Marketing and Culture:
– Popular Culture:
– Relationship marketing:
• Music, movies, sports,
• The strategic perspective that stresses the long-term,
human side of buyer-seller interactions
– Database marketing:
books, celebrities, and other
forms of entertainment
consumed by the mass
• Tracking consumers’ buying habits very closely, and
then crafting products and messages tailored
precisely to people’s wants and needs based on this
information
1-7
market.
– Marketers play a significant
role in our view of the
world and how we live in it.
1-8
2
Marketing’s Impact on Consumers: The
Meaning of Consumption
Popular Culture
• The Meaning of Consumption:
– People often buy products not for what they do,
but for what they mean.
– Types of relationships a person may have with a
product:
Companies often create product icons to develop an
identity for their products. Many made-up creatures and
personalities, such as Mr. Clean, the Michelin tire man and
the Pillsbury Doughboy, are widely recognized figures in
popular culture.
•
•
•
•
Self-concept attachment
Nostalgic attachment
Interdependence
Love
1-9
1 - 10
Marketing’s Impact on Consumers: The
Meaning of Consumption (cont.)
Marketing’s Impact on Consumers: The
Global Consumer
• Consumption includes intangible
experiences, ideas and services in
addition to tangible objects.
• By 2006, the majority of people on earth
will live in urban centers.
• Sophisticated marketing strategies
contribute to a global consumer culture.
• Even smaller companies look to expand
overseas.
• Globalization has resulted in varied
perceptions of the United States (both
positive and negative).
1 - 11
1 - 12
3
Marketing’s Impact on Consumers:
Virtual Consumption
The Global Consumer
American products like Levi jeans are in
demand around the world.
• The Digital Revolution is one of the most
significant influences on consumer behavior.
• Electronic marketing increases convenience
by breaking down the barriers of time and
location.
1 - 13
Blurred Boundaries
Marketing and Reality
1 - 14
Marketing Ethics and Public Policy
• Marketers and consumers coexist in a
complicated two-way relationship.
• It’s increasingly difficult for consumers to
discern the boundary between the
fabricated world and reality.
• Marketing influences both popular culture
and consumer perceptions of reality.
1 - 15
• Business Ethics:
– Rules of conduct that guide actions in the
marketplace
– The standards against which most people in the
culture judge what is right and what is wrong, good
or bad
• Notions of right and wrong differ among
people, organizations, and cultures.
1 - 16
4
Needs and Wants:
Discussion Question
Do Marketers Manipulate Consumers?
• Consumerspace
• Do marketers create artificial needs?
– Need: A basic biological motive
– Want: One way that society has taught us that need can be
satisfied
• Are advertising and marketing necessary?
– Economics of information perspective: Advertising is an
important source of consumer information.
• Do marketers promise miracles?
– Advertisers simply don’t know enough to manipulate
people.
• This ad was created
by the American
Association of
Advertising Agencies
to counter charges
that ads create
artificial needs.
• Do you agree with the
premise of the ad?
Why or why not?
1 - 17
Consumerism and
Consumer Research
1 - 18
The Wheel of Consumer Behavior
• Kennedy’s “Declaration of Consumer Rights”
(1962)
• Green Marketing:
– When a firm chooses to protect or enhance the natural
environment as it goes about its activities
• Reducing wasteful packaging
• Donations to charity
• Social Marketing:
– Using marketing techniques to encourage positive activities
(e.g. literacy) and to discourage negative activities (e.g.
drunk driving)
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Figure 1.3
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5
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