1-1 Chapter 1 An Introduction to Consumer Behavior

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1-3 “Remember Me?” I'm the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. I'm the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. I'm the man who drives into a gasoline station and never blows his horn, but waits patiently while the attendant finishes reading his comic book. "Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy." Source: From a Better Business Bureau bulletin submitted by An Arkansas Reader to Dear Abby

1-4 Defining Consumer Behavior Consumer Behavior is the Process Involved When Individuals or Groups Select, Use, or Dispose of Products, Services, Ideas or Experiences (Exchange) to Satisfy Needs and Desires.

1-5 Issues During Stages in the Consumption Process

1-6 Consumers’ Impact on Marketing Strategy Understanding consumer behavior is good business. –Firms exist to satisfy consumers’ needs, so –Firms must understand consumers needs to satisfy them. The Process of Marketing Segmentation : –Identifies Groups of Consumers Who are Similar to One Another in One or More Ways, and –Devises Marketing Strategies that Appeal to One or More of These Groups.

1-7 Segmenting Consumers by Demographic Dimensions Demographics are Statistics That Measure Observable Aspects of a Population Such As: Age Family Structure Gender Race and Ethnicity Race and Ethnicity Geography Social Class and Income Social Class and Income

1-8 Consumers’ Impact On Marketing Strategy: Building Bonds With Consumers Relationship MarketingRelationship Marketing occurs when a company makes an effort to interact with customers on a regular basis, and gives them reasons to maintain a bond with the company over time. Database MarketingDatabase Marketing involves tracking consumers’ buying habits very closely, and crafting products and messages tailored precisely to people’s wants and needs based on this information.

1-9 Marketing’s Impact on Consumers: The Meaning of Consumption Self-Concept Attachment Helps to Establish the User’s Identity Nostalgic Attachment Serves as a Link With a Past Self Interdependence Part of the User’s Daily Routine Love Elicits Bonds of Warmth, Passion, or Other Strong Emotion Types of Relationships a Person May Have With a Product:

1-10 Marketing’s Impact on Consumers: Consumption Typology Consumption Typology Consumption Typology Explores the Different Ways That Products and Experiences Can Provide Meaning to People. There Are 4 Distinct Types of Consumption Activities: Consuming as Experience Consuming as Integration Consuming as Classification Consuming as Play An Emotional or Aesthetic Reaction to Consumption Objects Express Aspects of Self or Society Communicate Their Association With Objects, Both to Self/ Others Participate in a Mutual Experience and Merge Self With Group

1-11 Marketing’s Impact on Consumers –Marketing and Culture Popular Culture –Intangible and Tangible Objects –The Global Consumer Global Consumer Culture –Virtual Consumption Business to Consumer Selling (B2C Commerce) Consumer to Consumer Selling (B2B Commerce) Virtual Brand Communities –Blurred Boundaries: Marketing and Reality

1-12 Marketing Ethics Business Ethics Business Ethics are Rules of Conduct That Guide Actions in the Marketplace - the Standards Against Which Most People in a Culture Judge What is Right and What is Wrong, Good or Bad.

1-13 Other Marketing Ethics Issues Do Marketers Create Artificial Needs? –Response: Marketing attempts to create awareness that these needs do exist, rather than to create them. Are Advertising and Marketing Necessary? –Response: Yes, if approached from an information dissemination perspective. Do Marketers Promise Miracles? –Not if they are honest; they do not have the ability to create miracles.

1-14 The Dark Side of Consumer Behavior Compulsive Consumption >Behavior is Not Done by Choice >Gratification is Short-Lived >Strong Feelings of Regret or Guilt Afterwards Illegal Activities > Consumer Theft (Shrinkage) >Anti-consumption – Culture Jamming – Cultural Resistance Consumed Consumers > People Who Are Exploited for Commercial Gain in the Marketplace. Addictive Consumption > Gambling

1-15 Interdisciplinary Influences Experimental Psychology Clinical Psychology Developmental Psychology Human Ecology Microeconomics Social Psychology Sociology Macroeconomics Semiotics/Literary Criticism Demography History Cultural Anthropology Individual Focus Social Focus

1-16 Two Perspective on Consumer Research Positivist Approach Positivist Approach Objective Prediction Independent Real Cause Separation Interpretivist Approach Interpretivist Approach Socially Constructed Socially Constructed Understanding Contextual Simultaneous Shaping Simultaneous Shaping Interaction

1-17 Taking it From Here: The Plan of the Book Section II: Consumers As Individuals Section III: Consumers As Decision Makers Section IV: Consumers and Subcultures Section V: Consumers and Culture

1-18 The Wheel of Consumer Behavior