Chapter 1 – Introduction to Consumer Behavior
1. Meaning of Consumer Behavior
According to the American Marketing Association (AMA),
consumer behavior is:
“The dynamic interaction of affect and cognition, behavior,
and environmental events by which human beings conduct
the exchange aspects of their lives.”
2. Detailed Model of Consumer Behavior
The model includes:
· Cultural Factors: Culture, Subculture, Social Class
· Social Factors: Reference Groups, Family, Roles & Status
· Personal Factors: Age, Occupation, Economic Situation,
Lifestyle, Personality
· Psychological Factors: Motivation, Perception, Learning,
Beliefs & Attitudes
· Buyer’s Decision Process: Problem Recognition →
Information Search → Alternatives → Purchase Decision →
Post-Purchase Behavior
3. Factors Influencing Buying Behavior
· Cultural Factors: Culture, Subculture, Social Class
· Social Factors: Groups, Opinion Leaders, Family, Roles &
Status
· Personal Factors: Age, Occupation, Economic Situation,
Lifestyle, Personality
· Psychological Factors: Motivation, Perception, Learning,
Beliefs, Attitudes
4. Cultural Factors
· Culture: Learned set of beliefs, values, norms, traditions,
and behaviors shared by a society.
· Subculture: Groups with shared values based on common
life experiences (nationalities, religions, racial groups,
geographic regions).
· Social Class: Relatively permanent divisions in society
sharing similar values, interests, and behaviors.
5. Social Factors
· Groups: Membership, Primary, Secondary, Reference
Groups
· Family: Primary social unit influencing behavior
· Roles & Status: Role = act to make a living; Status =
recognition by society
6. Personal Factors
· Lifestyle: Pattern of living expressed through activities,
interests, opinions
· Personality: Distinguishing psychological characteristics
leading to consistent responses
7. Psychological Factors (All 5)
· Motivation: Inner drive to act
· Perception: Process of selecting, organizing, interpreting
information
· Learning: Change in behavior from knowledge/experience
· Beliefs: Descriptive thoughts held about something
· Attitudes: Consistently favorable/unfavorable evaluations
toward an object/idea
Chapter 2 – Affect & Cognition
1. Defining Affect
Affect refers to feeling responses (emotional states)
experienced in the body.
Examples: “I am angry,” “She is in a good mood,” “He feels
bored.”
2. Defining Cognition
Cognition refers to mental responses – thoughts, beliefs,
knowledge – not felt in the body.
Examples: “My grandma thinks past days were better,”
“Samad believes Diet Pepsi is not fattening,” “Nisha knows
where the jewelry store is.”
3. Types of Meanings Created by the Cognitive System
(Note: The PPT lists this heading multiple times but does not
specify types. Typically, these include: semantic meaning,
symbolic meaning, experiential meaning, relational
meaning, and value-based meaning.)
Chapter 3 – Segmenting, Targeting, Positioning
1. Definitions
· Market Segmentation: Dividing a market into smaller
groups with distinct needs, characteristics, or behaviors.
· Target Marketing: Evaluating segment attractiveness and
selecting one or more to enter.
· Positioning: Setting competitive positioning and creating a
detailed marketing mix.
2. Levels of Market Segmentation (5 slides)
1. Mass Marketing: Targeting the whole market with one
offer.
2. Segment Marketing: Targeting broad segments with
tailored offers.
3. Niche Marketing: Focusing on subgroups within segments.
4. Micromarketing: Tailoring to individual customer needs
(one-to-one marketing).
5. Local/Individual Marketing: Customizing for local or
individual preferences.
3. Demographic Segmentation
Dividing the market based on: Age, Gender, Family Size, Life
Cycle, Income, Occupation, Education, Religion, Race,
Nationality.
4. Behavioral Segmentation
Dividing based on: Occasions, Benefits Sought, User Status,
Usage Rate, Loyalty Status, Buyer Readiness, Attitude.
5. Requirements for Effective Segmentation
Segments must be:
· Substantial
· Measurable
· Accessible
· Differentiable
· Actionable