What is Consumer Behavior? Chapter 1. Overview of Consumer Behavior Every day interactions Every day...

What is What is Consumer Behavior?Consumer Behavior?

Chapter 1Chapter 1

Overview of Consumer BehaviorOverview of Consumer Behavior

Every day interactionsEvery day interactions

Important to:Important to: MarketersMarketers PolicymakersPolicymakers Consumers Consumers

Consumer BehaviorConsumer Behavior

Two definitions:Two definitions:1. As human behavior:1. As human behavior:

““Set of value-seeking activities that take Set of value-seeking activities that take place as people go about addressing place as people go about addressing realized needs”realized needs”

Basic Consumption ProcessBasic Consumption Process

NEED

WANT

EXCHANGE

COSTS & BENEFITS

REACTION

VALUE

Consumer BehaviorConsumer Behavior

Two definitions:Two definitions:2. Study of consumers as they go about the 2. Study of consumers as they go about the

consumption process; study how they seek value to consumption process; study how they seek value to address needsaddress needs

Consumer BehaviorConsumer Behavior

Consumer Behavior

Economics

Psychology

Marketing

Anthropology

Sociology

How Are Consumers Treated?How Are Consumers Treated?

Two determinantsTwo determinants How competitive is the How competitive is the

environment?environment? License Bureau v. License Bureau v.

Upscale restaurantUpscale restaurant Consumer orientation v. Consumer orientation v.

market orientationmarket orientation

How dependent on How dependent on repeat business?repeat business?

Relationship marketingRelationship marketing TouchpointTouchpoint

Role of Consumer BehaviorRole of Consumer Behavior

CB & MarketingCB & Marketing Resource advantage theoryResource advantage theory

What do consumers give What do consumers give up?up?

What are they looking for?What are they looking for?

Products v. AttributesProducts v. Attributes Milkshake studyMilkshake study

Understanding value helps Understanding value helps determine who your determine who your competitors arecompetitors are

Examples:Examples:

Role of Consumer BehaviorRole of Consumer Behavior

Business OrientationBusiness Orientation UndifferentiatedUndifferentiated

ProductionProduction Wal-martWal-mart

DifferentiatedDifferentiated ToyotaToyota

NicheNiche One specific groupOne specific group

Role of Consumer BehaviorRole of Consumer Behavior

CB & SocietyCB & Society Purchasing behaviors Purchasing behaviors

shape societyshape society What’s “cool” and “not What’s “cool” and “not

cool”cool”

CB & Personal GrowthCB & Personal Growth DebtDebt Credit cardsCredit cards

Approaches to CBApproaches to CB

How can we study it?How can we study it? Interpretive researchInterpretive research

QualitativeQualitative Pros & consPros & cons PhenomenologyPhenomenology EthnographyEthnography

QuantitativeQuantitative Pros & cons Pros & cons

CB is DynamicCB is Dynamic

CB changes over timeCB changes over time InternationalizationInternationalization Technological changesTechnological changes

TV adsTV ads InternetInternet

Changing demographicsChanging demographics Changes in the familyChanges in the family

How does this affect their How does this affect their CB?CB?