1. Understanding Consumer Behavior
Chapter 1
Understanding
Consumer Behavior

2. Learning Objectives Define consumer behavior and explain its elements.
Identify the four domains of consumer behavior.
Discuss the benefits of studying consumer behavior.
Learn how consumer behavior is used in organizations to make marketing decisions.

3. Consumer Behavior
Reflects totality of consumer’s decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas by (human) decision-making units (over time).

4. Consumer Behavior Involves Attitudes Towards
Products
Services
Activities
People
Ideas

5. What Is Consumer Behavior? (Exhibit 1.1)

6. Consumer Behavior & Consumption
Acquisition
Usage
Disposition

7. Consumer Behavior Dynamic process Can involve many people
Involves many decisions
Involves consumers’ feelings and coping

8. Consumer Decisions Whether? What? Why? Why Not? How? Ways? When?
Where?
How much?
How often?
How long?

9. Model of Consumer Behavior

10. What Affects Consumer Behavior?
Psychological Core
Process of Making Decisions
Consumer’s Culture
Consumer Behavior Outcomes

11. Psychological Core Motivation, Ability, and Opportunity
Exposure, Attention, and Perception
Categorizing and Comprehending Information
Forming and Changing Attitudes
Forming and Retrieving Memories

12. Decision-making Process
Problem Recognition & Search for Information
Judgments & Decisions
Post-Decision Evaluations

13. Consumer’s Culture: External Processes/Influences
Consumer Diversity
Social Class & Household
Values, Personality, & Lifestyles
Reference Groups and Other Social Influences

14. Consumer Behavior Outcomes
Symbolize who we are—external signs used to express our identity
Diffuse through a market—influence others’ decision making
Ethics and social responsibility

15. Who Benefits from the Study of Consumer Behavior?
Marketing Managers
Ethicists/Advocacy Groups
Public Policy Makers/Regulators
Academics
Consumers

16. Marketing Implications of Consumer Behavior
Developing/implementing customer-orientation
Segmenting the market?
Profitability of each segment?
Characteristics of each segment?
Customer satisfaction of each segment?
Selecting the target market

17. Marketing Implications of Consumer Behavior
Product positioning decisions
Positioning of competition?
How should our offerings be positioned?
Should we reposition offerings?

18. Marketing Implications of Consumer Behavior
Products/services development decisions
Consumers’ ideas for new products?
Additional or different attributes?
Brand naming?
Packaging and logo design?

19. Marketing Implications of Consumer Behavior
IMC decisions
Advertising objectives?
Words and visuals of ads?
Where should ads be placed?
When should ads be placed?
Have ads been effective?

20. Marketing Implications of Consumer Behavior
IMC decisions (cont)
Sales promotion objectives?
When should sales promotions occur?
Have sales promotions been effective?
How large a sales force?
How can salespeople best serve customers?

21. Marketing Implications of Consumer Behavior
Pricing decisions
What should the price be?
How sensitive are consumers to price and price changes?
When should pricing tactics be used?
Distribution decisions
Where does target market shop?
How should stores be designed?