What is Consumer Behavior Chapter 1 Overview of

What is Consumer Behavior? Chapter 1

Overview of Consumer Behavior n Every day interactions n Important to: n n n Marketers Policymakers Consumers

Consumer Behavior n Two definitions: 1. As human behavior: n “Set of value-seeking activities that take place as people go about addressing realized needs”

Basic Consumption Process NEED WANT EXCHANGE COSTS & BENEFITS REACTION VALUE

Consumer Behavior n Two definitions: 2. Study of consumers as they go about the consumption process; study how they seek value to address needs

Consumer Behavior Anthropology Economics Consumer Behavior Sociology Psychology Marketing

How Are Consumers Treated? n Two determinants n How competitive is the environment? n n n License Bureau v. Upscale restaurant Consumer orientation v. market orientation How dependent on repeat business? n n Relationship marketing Touchpoint

Role of Consumer Behavior n CB & Marketing n Resource advantage theory n n n Products v. Attributes n n What do consumers give up? What are they looking for? Milkshake study Understanding value helps determine who your competitors are n Examples:

Role of Consumer Behavior n Business Orientation n Undifferentiated n n n Differentiated n n Production Wal-mart Toyota Niche n One specific group

Role of Consumer Behavior n CB & Society n Purchasing behaviors shape society n n What’s “cool” and “not cool” CB & Personal Growth n n Debt Credit cards

Approaches to CB n How can we study it? n Interpretive research n Qualitative n n Pros & cons Phenomenology Ethnography Quantitative n Pros & cons

CB is Dynamic n n n CB changes over time Internationalization Technological changes n n n TV ads Internet Changing demographics n Changes in the family n How does this affect their CB?