Instructor:Dr. West Office Hours & Location:M-W 12:30 – 1:15, Fisher 544 Phone & Fax: (O) (F) MKT 750 Consumer Behavior

Agenda Introductions Class website Syllabus highlights Course overview Assignment

Class Website Locations Homepage: Access to Homepage: Username: mkt750, Password: pwest

Syllabus Highlights Course Objective: To develop a deeper understanding of and appreciation for consumers To learn how to better serve your customers Class materials: Consumer Behavior textbook

Syllabus Highlights Requirements: Individual Components Points Two 50 points each100 Two 100 points each200 Participation is worth up to 50 points 50 Team Components A research project worth up to 150 points

Keys to Success Come to class prepared Read the material in advance Keep up on assignments Treat others professionally Show pride in your work Be respectful

Survey Said Please refrain from: 1.Coming in late 2.Leaving class early 3.Sidebar conversations 4.The use of laptops or cell phones 5.Eating food in the classroom

Survey Said Considered appropriate conduct: 1.Be considerate of others 2.Get involved and participate 3.Always strive to be a good teammate 4.Manage your time wisely

Course Overview What is consumer behavior? Why study it? How does this relate to marketing? Some “essential tools”

What is Consumer Behavior? “Activities people undertake when obtaining, consuming, and disposing of products and services” --- Blackwell, Miniard, & Engel 2001 The study of the cognitive, emotional, and physical activities associated with the perception, evaluation, choice, acquisition, use, and disposition of goods and services.”

OBTAINING How you decide you want to buy Products you consider buying Where you buy How you pay for product How you transport product home CONSUMING How you use product How you store the product in your home Who uses the product How much you consume How product compares with expectations DISPOSING How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle products PERSONAL INFLUENCES Personality Life-stage Values Income Resources Attitudes Opinions Motivations Feelings Past Experiences Knowledge SITUATIONAL INFLUENCES Brand Product Features Advertising Display Promotions Price Quality Store Ambiance Service Convenience Product Loyalty Programs Packaging Goals Assortment Involvement Availability Consumer Behavior SOCIAL INFLUENCES Justification Word of Mouth Culture Ethnicity Family Peer Groups

What is Consumer Behavior? An interdisciplinary field Social Psychology Cognitive Psychology Anthropology Sociology Economics Physiology Biology Computer Science

Why Study Consumer Behavior? The Marketing Concept: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create more satisfying exchanges than the competition. Corollary: Success in the marketplace requires attracting, satisfying, and retaining customers.

Why Study Consumer Behavior? No brand/product can appeal to all people. Firms must segment the market into groups with relatively homogeneous preferences and target one or more groups. Firms must position their offerings in the hearts and minds of these individuals in a favorable way.

Why Study Consumer Behavior? Our guesses about people are inaccurate. This is because human nature leads us to believe that other people think like us false consensus People tend to perceive differences even when they don’t exist stereotyping

Why Study Consumer Behavior? Therefore, we must strive to… Identify customer needs and wants Engage in research Understand how customers will respond to different messages and environments Learn about and apply theories Anticipate where preferences are headed Staying informed

Connections to Marketing Segmentation & Targeting Customer Acquisition & Retention Building Loyalty Positioning & Repositioning New Products and Shaping Consumer Preferences Customer-based Brand Equity

Connections to Marketing Communicating with your customers Influence & Persuasion Generating “buzz” Pricing your product Framing Value Pricing Building “community”

Essential Tools: Demographics / Trends Family Life Cycle Consumer Decision Making Information Processing

Demographic Trends: Aging population Cultural Diversity & Globalization

Lifestyle Trends: Staying connected Cellular phones PDAs Instant messaging Health & Fitness Water Low fat foods

Essential Tools: Demographics / Trends Family Life Cycle Consumer Decision Making Information Processing

Family Life Cycle Single Newly Full Empty Married Nest Nest

Essential Tools: Demographics / Trends Family Life Cycle Consumer Decision Making Information Processing

The Rational Decision Process: Objective: To provide useful information and assurance Preferences & Beliefs Need Recognition Search Evaluation Purchase Decision Post-Purchase Feelings

The Emotional Decision Process: Awareness Knowledge Liking Conviction Purchase Consumption Objective: To create excitement

The Routine Decision Process: Purchase decision based on: Impulse Habit Promotion Delicious Red, Ripe California Strawberries 16-oz. Pkg. Buy 1, Get 1 FREE! Save $2.99 with Card

Essential Tools: Demographics / Trends Family Life Cycle Consumer Decision Making Information Processing

Consumer Information Processing Stimuli Exposure Attention Comprehension Acceptance Retention Purchase

Finally, our goals are to … Develop skills for planning, assessing, and interpreting consumer research Foster strategic thinking Improve your ability defend your position both orally and in writing Enhance job performance by improving your ability to work effectively with others

Assignment Carefully read the syllabus! There will be a “quiz” on Wednesday Chapters 1 & 2 of the textbook