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• Consumer Behavior


  • Dynamic process
  • Involves many people
  • Involves many decisions big and small
  • Involves consumer feelings and coping
• Disposition

  Consumers dispose of old products they acquired in a number of ways, oftentimes through recycling or vintage shops
• Consumer Behavior


  The acquisition, consumption, and disposition of goods, services, time, and ideas by decision-making units
• Secondary Culture


  Influenced by group/individuals, adapt, changes from time to time
• Primary Culture

  Since birth, sticking to one
• Consumer Behavior involves attitudes towards

  • Products
  • Services
  • Activities
  • People
  • Ideas
• Consumer Behavior reflects the totality of consumer's decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas
• Consumer Decisions


  • A plethora of online decisions... to tweet or not to tweet... to check in or not to check in
• Forming and Retrieving memories


  Ads that make consumers form and retrieve memories can be effective if the memories are of a positive experience
• Factors impacting Consumer Behavior

  • Psychological Core
  • Decision-Making Process
  • Consumer Culture
  • Consumer Behavior Outcomes
• Decision-making Process

  1. Problem recognition and search for information

  2. Judgements and decisions

  3. Post-decision evaluations
• External Processes/Influences on Consumer Behavior

  • Consumer diversity
  • Social class and household
  • Values, personality, and lifestyles
  • Reference groups and other social influences
• Beneficiaries of Consumer Behavior Research

  • Marketing managers
  • Advertisers
  • Ethicists/advocacy groups
  • Public policy makers/regulators
  • Scholars
  • Media/popular press
  • Consumers
• Influence of Reference Groups

  Reference groups are people whose values we share and whose opinions we value, as evidenced in the Got Milk campaigns
• Marketing Implications of Consumer Behavior

  1. IMC decisions (cont.)

  2. Pricing Decisions

  3. Distribution decisions
• Marketing Implications of Consumer Behavior

  1. Developing/Implementing customer-orientation

  2. Selecting the target market

  3. Marketing strategy
• Important aspects of Consumer Behavior
• Marketing Implications of Consumer Behavior

  1. Product positioning decisions

  2. Products/services development decisions

  3. IMC decisions
• Aspects of Consumer Behavior

  • Acquisition (leasing, trading, borrowing)
  • Usage (gives insight on symbolic aspects, usage patterns, new product ideas or improvements, W-O-M)
  • Disposing (recycling, product durability)
• Consumer Behavior is a dynamic process (sequence of events over time)
• Importance of Consumer Behavior to Marketing Managers
• Pricing tactics

  1. Distribution decisions

  2. Where does target market shop?

  3. How should stores be designed?
• Customer relationship management (CRM)


  Providing value & service to customers over time to build loyalty
• Market segmentation

  1. Can group consumers by similar needs, wants, & attitudes

  2. Identify the most valued customers for marketing activities
• Consumer motivation includes needs, wants, drives, and desires that lead to the purchase of products or ideas
• Positioning


  Niche in consumers’ minds - critical to success
• Needs


  An internal state of tension caused by disequilibrium from an ideal or desired state
• The hierarchy by Maslow suggests that people are motivated to fulfill basic needs before moving on to more advanced needs
• Motivation is an inner state of arousal that creates energy to achieve a goal
• Consumer motivation can be physiologically, psychologically, or environmentally driven
• Consumer Goals influence involvement in ads
• Perceived Risk is the extent to which the consumer is uncertain about the personal consequences of buying, using, or disposing of an offering
• Types of Needs by Maslow

  • Physiological
  • Safety
  • Love/Belongingness
  • Esteem
  • Self-actualization
• Consumer opportunity includes time, amount of information, complexity of information, repetition of information, and control of information
• Circumstances Causing Increased Perceived Risk

  • Lack of information
  • Newness
  • High price
  • Complex technology
  • Brand differentiation
• Types of Perceived Risk

  • Performance
  • Financial
  • Physical (safety)
  • Social
  • Psychological
  • Time
• Enhancing Information Processing

  1. Repeat communications

  2. Simplify

  3. Reduce purchasing/using/learning time

  4. Provide information
• pHYSCILOCIGICAL NEEDS

  air,water,food,sex,shelter,sleep
• Safety

  security, stability, resources, employment, health, property
• Love and belongingness

  love, affection,sexual intimacy