1. ©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. BABIN / HARRIS CB What is CB, and Why Should I Care? CHAPTER 1 PART 1 1 ©JAMES WOODSON/PHOTODISC/JUPITERIMAGES

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. 2 Learning Outcomes Understand the meaning of consumption and consumer behavior. Describe how consumers get treated differently in various 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. LO 1 LO 2 LO 3 LO 4 LO 5

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. LO 1 Understand the meaning of consumption and consumer behavior. 3

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. 4 Consumer Behavior Perspectives Human Thought and Action LO 1 Field of Study

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. 5 Consumer Behavior as Human Behavior Consumer behavior is the set of value seeking activities that take place as people go about addressing realized needs. LO 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. 6 Exhibit 1.1 The Basic Consumption Process LO 1 ©ANTOINE ANTONIOL/BLOOMBERG VIA GETTY IMAGES

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. 7 Consumption Process by which goods, services or ideas are used and transformed into value. LO 1 ©THOMAS BARWICK/PHOTOGRAPHER’S CHOICE/GETTY IMAGES

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. 8 Macro or Micro? Economists study consumer behavior from a macro, or broad, perspective. Consumer behavior researchers study consumer behavior on a micro, or more individual, level. Economists study consumer behavior from a macro, or broad, perspective. Consumer behavior researchers study consumer behavior on a micro, or more individual, level. LO 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. 9 Exhibit 1.2: Consumer Behavior and Closely Related Disciplines LO 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. LO 2 Describe how consumers get treated differently in various types of exchange environments. 10

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. 11 How are Consumers Treated? LO 2 DMV Fine restaurant AP IMAGES/DENVER POST, CYRUS MCCRIMMON ©UPPERCUT IMAGES/GETTY IMAGES

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. 12 Questions to Consider LO 2 How competitive is the marketing environment? How dependent is the marketer on repeat business?

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. 13 Some Terminology LO 2 Consumer (customer) orientation Market orientation Relationship Marketing Touchpoints

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. LO 3 Explain the role of consumer behavior in business and society. 14

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. 15 Why Study CB? LO 3 Input to making responsible decisions as a consumer Force that shapes society Input to business/marketing strategy

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. 16 Resource-Advantage Theory LO 3 The resource-advantage theory explains why companies succeed or fail; the company goes about obtaining resources from consumers in return for the value the company’s resources create.

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. 17 Exhibit 1.3 How Old are These Companies? LO 3 Source: All dates taken from company websites. Samsung was originally founded in 1938 but as a Korean food exporter. In 1969, Samsung Electronics was created.

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. 18 Make-Up or Hope? A myopic business view defines the business in terms of products and not the value consumers receive. © ISTOCKPHOTO.COM/RAINFORESTAUSTRALIA LO 3

19. ©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. 19 Exhibit 1.4 Different Ways of Doing Business LO 3

20. ©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. 20 CB and Society LO 3 As this billboard shows, attitudes toward smoking have certainly changed over the last few decades. Smoking isn’t so cool. IMAGE COURTESY OF THE ADVERTISING ARCHIVES

21. ©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. 21 CB and Personal Growth LO 3 Studying CB helps consumers make better decisions by understanding: Consequences of poor budgeting Role of emotions Avenues for redress Social influences Environmental effects

22. ©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. 22 Hold the Phone! Should public restrictions on mobile phone usage be created? ©ISTOCKPHOTO.COM/JACK HOLLINGSWORTH LO 3

23. ©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. LO 4 Be familiar with basic approaches to studying consumer behavior. 23

24. ©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. 24 Different Approaches to Studying CB LO 4 Interpretive Research Quantitative Research

25. ©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. 25 Exhibit 1.5 Comparing Quantitative and Qualitative Research LO 4 Source: Zikmund, W.G. and B.J. Babin (2007), Exploring Marketing Research, Thompson South-Western: Mason, Ohio.

26. ©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. 26 Sporting Events Ethnography is useful in understanding how consumers turn sports experiences and memorabilia into value. LO 4 ©DIAMOND IMAGES/GETTY IMAGES

27. ©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. LO 5 Describe why consumer behavior is so dynamic and how recent trends affect consumers. 27

28. ©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. 28 Trends Internationalization LO 5 Technological Changes Changing Communications Changing Demographics Changing Economy ©MIKE KEMP/RUBBERBALL/JUPITERIMAGES

29. ©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. 29 Internationalization Starbucks is everywhere! LO 5 YONATAN POMRENZE/NBC NEWSWIRE VIA AP IMAGES