CHAPTER 1:
UNDERSTANDING CONSUMER BEHAVIOR
OUTCOMES
Define consumer behavior and explain the components that make up the
definition
Identify the four domains of consumer behavior that affect acquisition, usage and
disposition decisions
Discuss the benefits of studying consumer behavior
Explain how companies apply consumer behavior concepts when making
marketing decisions.
DEFINING CONSUMER BEHAVIOR?
Consumer behavior reflects the totality of consumers’ decisions with respect
to the acquisition, consumption and disposition of goods, services, activities,
experiences, people and ideas by (human) decision-making units [over time]
WHAT CONSUMER BAHAVIOR?
WHAT IS CONSUMER BEHAVIOR?
Consumer behavior involves goods, services, activities, experiences, people and
ideas (i.e., offering)
Buying tangible products
Going to the dentist, attending a concert, taking a trip and donating to UNICEF
Make decisions about people (voting, dating, reading book by certain authors, watching
movies by certain actors/actresses)
Acquiring/using/disposing
WHAT IS CONSUMER BEHAVIOR?
Consumption decisions: consumers ‘take in’ these products and services, whether
physiologically (e.g., food) or mentally (e.g., a movie at a cinema)
Consumer behavior is a dynamic process: The sequence of acquisition,
consumption and disposition can occur over time in a dynamic order
Consumer behavior can involve many people: group of friends, a few co-workers, a
family
WHAT IS CONSUMER BEHAVIOR?
Consumer behavior involves many decisions:
Whether to acquire/use/dispose of an offering
What offering to acquire/use/dispose of
Why acquire/use/dispose of an offering
Why an offering is not acquired/used/disposed of
WHAT IS CONSUMER BEHAVIOR?
Consumer behavior involves many decisions:
Ways of acquiring an offering
Ways of using an offering
Ways of disposing of an offering
When to acquire/use/dispose of an offering
Where to acquire/use/dispose of an offering
How much, how often and how long to acquire/use/dispose of an offering
WHAT IS CONSUMER BEHAVIOR?
Consumer behavior involves emotions and coping
Emotions play a powerful role in shaping consumer behavior
Positive and negative emotions
Hope, fear, regret, guilt, embarrassment
Consumers often use products to regulate their feelings, cope with stressful events, …
WHAT AFFECTS CONSUMER BEHAVIOR?
WHAT AFFECTS CONSUMER BEHAVIOR?
The psychological core: internal consumer processes
Motivation, ability and opportunity
Exposure, attention, perception and comprehension
Memory and knowledge
Forming and changing attitudes
WHAT AFFECTS CONSUMER BEHAVIOR?
The consumer’s culture: external processes
Reference groups and other social influences
Diversity influences
Household and social class influences
Values, personality and lifestyles
WHAT AFFECTS CONSUMER BEHAVIOR?
Consumer behavior outcomes and issues
Consumer behaviors can symbolize who we are
Consumer behaviors can diffuse through a market
Consumer behavior, ethics and social responsibility
WHAT AFFECTS CONSUMER BEHAVIOR?
The process of making decisions
Problem recognition and the search for information
Making judgements and decisions
Making post-decision evaluations
WHO BENEFITS FROM STUDYING CONSUMER BEHAVIOR?
Marketing managers
Public policymakers and regulators
Consumers and society
MARKETING IMPLICATIONS OF CONSUMER BEHAVIOUR
Developing and implementing customer-oriented strategy
How is the market segmented?
How profitable is each segment?
What are the characteristics of consumers in each segment?
Are customers satisfied with existing offerings
MARKETING IMPLICATIONS OF CONSUMER BEHAVIOUR
Selecting the target market
MARKETING IMPLICATIONS OF CONSUMER BEHAVIOUR
Developing products
What ideas do consumers have for new products?
What attributes can be added to or changed in an existing offering?
How should the offering be branded?
What should the package and logo look like?
MARKETING IMPLICATIONS OF CONSUMER BEHAVIOUR
Making pricing decisions
What price should be charged?
How sensitive are consumers to price and price changes?
When should certain price tactics be used?
MARKETING IMPLICATIONS OF CONSUMER BEHAVIOUR
Making distribution decisions
Where and when are target consumers likely to shop?
What do customers want to see in stores?
How should stores be designed?
MARKETING IMPLICATIONS OF CONSUMER BEHAVIOUR
Making promotion and marketing communications decisions
What are our advertising objectives?
What should our advertising look like?
Where should advertising be placed?
When should we advertise?
Has our advertising been effective?
What about sales promotion objectives and tactics?
Have our sales promotions been effective?
How can salespeople best serve customers?
THANK YOU