1. What is CB, and Why Should I Care?
BABIN / HARRIS CB
PART 1
CHAPTER 1
What is CB, and Why Should I Care?
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. 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.
1-2
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. Human thoughts and actions Field of study
CB Perspectives
Human thoughts and actions
Field of study
LO1
1-3
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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
1-4
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5. The Basic Consumption Process
Need
Want
Exchange
Costs and Benefits
Reaction
Value
LO1
1-5
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

6. Consumption
The process by which goods, services, or ideas are used and transformed into value.
LO1
1-6
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7. CB as a Field of Study Economics Psychology Marketing
Social psychology
Cognitive psychology
Marketing
Social Psychology
Anthropology
LO1
1-7
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8. Why Are Consumers Treated Differently?
How competitive is the marketing environment?
How dependent is the marketer on repeat business?
LO2
1-8
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9. Some Terminology Consumer (customer) orientation Marketing orientation
Relationship marketing
Touchpoints
LO2
1-9
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10. Why Study CB? Input to business/marketing strategy
Force that shapes society
Input to making responsible decisions as a consumer
LO3
1-10
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11. Resource-Advantage Theory
This theory explains why companies succeed or fail. Companies that do survive long-term do so by obtaining resources from consumers in return for the value the companies create.
LO3
1-11
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12. Business Orientations
Undifferentiated marketing
Product orientation
Same basic product offered to all customers
Differentiated marketing
One-to-one marketing
Serves multiple market segments each with a unique offering
Niche marketing
Specialize in serving one market segment with particularly unique demand characteristics
LO3
1-12
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13. 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
1-13
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14. Approaches to Studying CB
Interpretive Research
Seeks to explain the inner meanings and motivations associated with specific consumption experiences.
Qualitative
Researcher-dependent
LO4
1-14
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

15. Approaches to Studying CB
Quantitative Research
Addresses questions about CB using numerical measurement and analysis tools.
Not researcher-dependent
LO4
1-15
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16. Consumer Behavior Is Dynamic
Consumer behavior changes over time
Consumers are never completely satisfied
Consumer demands lead to innovation
Consumer sales lead to company growth, which can in turn positively affect the environment
LO5
1-16
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17. Trends Internationalization Technological changes
Chains can be found worldwide, but are customized to the local consumer.
This requires considerable consumer behavior research.
Technological changes
Due to the Internet and mobile communications, consumers can shop 24/7 and geographical distance is often a non-issue.
LO5
1-17
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18. Trends Changing communications Changing demographics Changing economy
Preference has switched from face-to-face to , web chats, and texting.
Changing demographics
Households often have two primary earners.
China and India are huge emerging markets.
Changing economy
Consumer spending has changed due to an economic downturn in most of the developed world.
LO5
1-18
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.