Consumers Behavior What is Consumer Behavior?

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
Some Issues That Arise During Stages in
the Consumption Process
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
– Purchaser / User / Influencer
• Consumers may take the form of organizations
or groups.
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
• Demographics:
What are the segments of
these brands ???
– Statistics that measure observable aspects of a
• Ex.: Age, Gender, Family Structure, Social Class
and Income, Race and Ethnicity, Lifestyle, and
Consumers’ Impact on
Marketing Strategy (cont.)
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
– Marketers play a significant
role in our view of the
world and how we live in it.
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
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
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
• Globalization has resulted in varied
perceptions of the United States (both
positive and negative).
1 - 11
1 - 12
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
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
– 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
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
• 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
• 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”
• 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)
1 - 19
Figure 1.3
1 - 20