1. Chapter 1: What is CB, and Why Should I Care?
Babin/Harris
© 2009 South-Western, a division of Cengage Learning.

2. © 2009 South-Western, a division of Cengage Learning.
Learning Outcomes
Understand the meaning of consumption and consumer behavior.
Describe how consumers get treated differently in different types of exchange environments.
Explain the role of consumer behavior in business and society.
Be familiar with basic approaches to studying consumer behavior.
Describe why consumer behavior is so dynamic and how recent trends affect consumers.
© 2009 South-Western, a division of Cengage Learning.

3. © 2009 South-Western, a division of Cengage Learning.
CB Perspectives
Human thought and actions
Field of study
LO1
© 2009 South-Western, a division of Cengage Learning.

4. Consumer Behavior as Human Behavior
Consumer behavior is the set of value seeking activities that take place as people go about addressing realized needs.
LO1
© 2009 South-Western, a division of Cengage Learning.

5. The Basic Consumption Process
Need
Want
Exchange
Costs and Benefits
Reaction
Value
LO1
© 2009 South-Western, a division of Cengage Learning.

6. © 2009 South-Western, a division of Cengage Learning.
Consumption
The process by which goods, services, or ideas are used and transformed into value.
LO1
© 2009 South-Western, a division of Cengage Learning.

7. © 2009 South-Western, a division of Cengage Learning.
CB as a Field of Study
Economics
Psychology
Social psychology
Cognitive psychology
Marketing
Sociology
Anthropology
LO1
© 2009 South-Western, a division of Cengage Learning.

8. Why are consumers treated differently?
How competitive is the marketing environment?
How dependent is the marketer on repeat business?
LO2
© 2009 South-Western, a division of Cengage Learning.

9. © 2009 South-Western, a division of Cengage Learning.
Some Terminology
Consumer (customer) orientation
Marketing orientation
Relationship marketing
Touchpoints
LO2
© 2009 South-Western, a division of Cengage Learning.

10. © 2009 South-Western, a division of Cengage Learning.
Why Study CB?
Input to business/marketing strategy
Force that shapes society
Input to making responsible decisions as a consumer
LO3
© 2009 South-Western, a division of Cengage Learning.

11. Business Orientations
Undifferentiated marketing
Same basic product offered to all customers
Differentiated marketing
Serves multiple market segments each with a unique offering
Niche marketing
Specialize in serving one market segment with particularly unique demand characteristics
LO3
© 2009 South-Western, a division of Cengage Learning.

12. © 2009 South-Western, a division of Cengage Learning.
CB and Personal Growth
Studying CB helps consumers make better decisions by understanding:
Consequences associated with poor budget allocation.
The role of emotions in consumer decision making.
Avenues for seeking redress for unsatisfactory purchases.
Social influences on decision making, including peer pressure.
The effect of the environment on consumer behavior.
LO3
© 2009 South-Western, a division of Cengage Learning.

13. Approaches to Studying CB
Interpretive Research
Seeks to explain the inner meanings and motivations associated with specific consumption experiences.
Qualitative
Researcher-dependent
Quantitative Research
Addresses questions about CB using numerical measurement and analysis tools.
Not researcher-dependent
LO4
© 2009 South-Western, a division of Cengage Learning.

14. © 2009 South-Western, a division of Cengage Learning.
Trends
Internationalization
Technological changes
Changing demographics
LO5
© 2009 South-Western, a division of Cengage Learning.