Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc. 6277 Sea Harbor Drive Orlando, Florida 32887-6777 Copyright© 2000 by Harcourt, Inc. All rights reserved.

Consumer Behavior and Consumer Research CHAPTER 1 Consumer Behavior and Consumer Research Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, Ninth Edition Copyright© 2001 by Harcourt, Inc. All rights reserved.

What is Consumer Behavior? Activities people undertake when obtaining, consuming, and disposing of products and services Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Influences Organizational Influences Obtaining Consuming Disposing Consumer Behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Organizational Influences Consumer Influences Organizational Influences Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Organizational Influences Consumer Influences Organizational Influences Culture Ethnicity Personality Values Life-stage Family Income Feelings Attitudes Opinions Available Resources Motivations Past Experiences Peer Groups Knowledge Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Influences Organizational Influences Obtaining Consuming Disposing Consumer Behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Obtaining Consuming Disposing Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Obtaining Consuming Disposing How you decide you want to buy Products you consider buying Where you buy How you pay for product How you transport product home 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 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 Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

ORGANIZATIONAL INFLUENCES CONSUMER INFLUENCES Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Motivations Past Experiences Feelings Peer Groups Knowledge ORGANIZATIONAL INFLUENCES Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability 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 Consumer Behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

What is Consumer Behavior? Activities people undertake when obtaining, consuming, and disposing of products and services A field of study focusing on consumer activities Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

What is Consumer Behavior? Activities people undertake when obtaining, consuming, and disposing of products and services A field of study focusing on consumer activities Focus beyond just how people buy to how they consume goods Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Marketing Concept The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Marketing Concept The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Satisfaction with exchange depends on satisfaction with use and consumption of product Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Why Study Consumer Behavior? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Why Study Consumer Behavior? Consumer Behavior Helps Analyze Consumers’ Increasing Influence Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Why Study Consumer Behavior? Consumer Behavior Helps Analyze Consumers’ Increasing Influence Marketing: Process of transforming or changing an organization to have what people will buy “The Customer is King” Organization influenced by consumer needs and wants Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Why Study Consumer Behavior? Consumer Behavior Helps Analyze Consumers’ Increasing Influence Consumer Behavior Educates and Protects Consumers Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Educating Consumers About Cancer Understanding consumers’ issues or problems and developing methods to reach and educate consumers Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Tums educates consumers about the importance of calcium and increases awareness of its calcium content Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Why Study Consumer Behavior? Consumer Behavior Helps Analyze Consumers’ Increasing Influence Consumer Behavior Educates and Protects Consumers Consumer Behavior Affects Public Policy Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Why Study Consumer Behavior? Consumer Behavior Helps Analyze Consumers’ Increasing Influence Consumer Behavior Educates and Protects Consumers Consumer Behavior Affects Public Policy Consumer Behavior Affects Personal Policy Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

How much people spend and save Personal Policy Where people shop: Odd Lots How much people spend and save Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Evolution of Consumer Behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Evolution of Consumer Behavior Retail Supply Chain: all the organizations involved in taking a product from inception to final consumption -Manufacturers -Wholesalers -Retailers -Facilitating Organizations Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Evolution of Consumer Behavior Retail Supply Chain: all the organizations involved in taking a product from inception to final consumption -Manufacturers -Wholesalers -Retailers -Facilitating Organizations Consumers’ Increased Influence on Business Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Evolution of Consumer Behavior Wholesaler Manufacturer Retailer Consumer Manufacturing Orientation Marketing Orientation Comprehensive Consumer Orientation Selling Orientation Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumers’ Increasing Influence Evolution of Consumer Behavior Consumers’ Increasing Influence Wholesaler Manufacturer Retailer Consumer Manufacturing Orientation Marketing Orientation Comprehensive Consumer Orientation Selling Orientation Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Evolution of Consumer Behavior Manufacturing Orientation Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Evolution of Consumer Behavior Manufacturing Orientation Selling Orientation Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Evolution of Consumer Behavior Manufacturing Orientation Selling Orientation Marketing Orientation -Motivation research -Positivism -Postmodernism Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Pillsbury Builds its Brand with Icon Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Apple Rejuvenates Itself with A Marketing Focus Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Apple Rejuvenates Itself with A Marketing Focus Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Evolution of Consumer Behavior Manufacturing Orientation Selling Orientation Marketing Orientation Comprehensive Consumer Orientation Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Comprehensive Consumer Orientation Beyond a marketing focus Alliances between supply chain members to focus on the needs of consumers -Shared information -Common consumer-oriented goal Role of consumers in shaping all aspects of life--society, government, and societal organizations Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

How To Study Consumer Behavior Consumer Research: How To Study Consumer Behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Observation Gaining information by observing consumers in different situations, in natural or artificial setting Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Observation Gaining information by observing consumers in different situations, in natural or artificial setting In-home observation: examining how and when consumers use and consume products in their households Shadowing: following and observing consumers in the shopping and consumption processes. Researchers may ask questions about reasons for behaviors Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Interviews and Surveys Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts and mail questionnaires) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Interviews and Surveys Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts and mail questionnaires) Focus Groups: a group discussion lead by a skilled moderator and designed to probe specific topics in-depth Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Interviews and Surveys Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts and mail questionnaires) Focus Groups: a group discussion lead by a skilled moderator and designed to probe specific topics in-depth Longitudinal Studies: repeated measures of activities over time to examine changes in behaviors/opinions Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Experimentation Measuring cause-and-effect relation-ships by manipulating independent variables to determine the effects of changes on dependent variables -Laboratory experiment -Field experiment Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Experimentation Measuring cause-and-effect relation-ships by manipulating independent variables to determine the effects of changes on dependent variables -Laboratory experiment -Field experiment Independent variables might include advertising frequency and package design. Dependent variables might include purchase intent or behavior. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Consumption Research Builds on the three primary research methods to examine how people buy and use products and services. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Consumption Research Builds on the three primary research methods to examine how people buy and use products and services. May use ethnographic tools to under-stand how values and culture influence usage of products and other behaviors. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Research Methods Consumption Research Builds on the three primary research methods to examine how people buy and use products and services. May use ethnographic tools to under-stand how values and culture influence usage of products and other behaviors. May identify new uses for existing products or new product to satisfy unmet or changing consumer needs. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Underlying Principles of Consumer Behavior The Consumer is Sovereign Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Underlying Principles of Consumer Behavior The Consumer is Sovereign The Consumer is Global Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumers are exposed to and buy many global brands Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Underlying Principles of Consumer Behavior The Consumer is Sovereign The Consumer is Global Consumers are Different; Consumers are Alike Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Cosmopolitan readers are different: Cosmopolitan readers are different: Speak different languages & live in different countries Cosmopolitan readers are alike: Interested in similar topics (love, men, and sex) and fashions Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Underlying Principles of Consumer Behavior The Consumer is Sovereign The Consumer is Global Consumers are Different; Consumers are Alike The Consumer has Rights Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Underlying Principles of Consumer Behavior The Consumer is Sovereign The Consumer is Global Consumers are Different; Consumers are Alike The Consumer has Rights Everyone Needs to Understand Consumers Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Challenges for the Future Gathering and interpreting information that organizations need to meet changing needs of consumers Developing effective consumer research methods to capture changes in trends and lifestyles Understanding consumer behavior from a broader perspective as an important part of life Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc. 6277 Sea Harbor Drive Orlando, Florida 32887-6777 Copyright© 2000 by Harcourt, Inc. All rights reserved.