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Chapter 1
OVERVIEW
Content
[Link] of consumer behaviors and customer experience
2. Consumers behavior process
3. Reasons to research consumer behavior
4. Some current trends in Consumer Behaviors
1. Definition of consumer behaviors
“the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or
experiences to satisfy needs and desires and to define and
express their identities”
Solomon & Russell (2024)
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1. Definition of consumer behaviors
Consumer behavior is dynamic: It is an ongoing process
Consumption refers to all facets of the consumer behavior
process, which include how we observe and make sense of the
world around us, how we choose and purchase things, and how
we communicate our identity and sense of self in society.
People buy products not for what they do, but for what they mean
Types of relationships a person might have
with a product
Self-concept attachment—The product helps to establish the user’s
identity.
Nostalgic attachment—The product serves as a link with a past self.
Interdependence—The product is a part of the user’s daily routine.
Love—The product elicits emotional bonds of warmth, passion, or
other strong emotion.
Overall Model
of Consumer
Behavior
Source: Mothersbaugh, D. L.,
Hawkins, D. I. & Kleiser S. B.
(2020). Consumer Behavior:
Building Marketing Strategy,
14th ed. McGraw-Hill
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3. Reasons to research Consumer Behaviors
Changes in marketing points of view
Old approach New approach
Marketing was a function Marketing is a philosophy
Managing the current state Managing the change
Sellers’ power Buyers’ power
Customers accepted all orders Selecting customers
Vendors dominated Customers dominate
Customers had little information Customers have a lot of
Focus on direct customers information
Focus on indirect, direct, current
and potential customers
3. Reasons to research Consumer Behaviors
Importance of studying consumer behaviors
Improving product competitiveness
Launching new products
Designing influencing marketing strategies
3. Reasons to research Consumer Behaviors
Improving product competitiveness
• customers’ noticeable needs
• niche markets
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3. Reasons to research Consumer Behaviors
Customers’ noticeable needs
People who don’t like tucking
3. Reasons to research Consumer Behaviors
Niche markets
Food-allergy segments
3. Reasons to research Consumer Behaviors
Designing influencing marketing strategies
advertising on social media
impressive and memorable content
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3. Reasons to research Consumer Behaviours
Customers aren’t satisfied with the product/service
47% switch brand 27% get frustrated
91% leave without
warning 40% recommend others
not to support
LOSS
Source: [Link]
3. Reasons to research Consumer Behaviors
68% of customers leave you because of your
staff’s negligence and bad attitude.
Source: [Link]
3. Reasons to research Consumer Behaviors
Segmentation
Consumption rate: 80/20 rule
Age, gender
Lifestyle
...
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3. Reasons to research Consumer Behaviors
Segmentation
Segmenting by Behavior: Relationships and “Big Data”
Relationship marketing interact with customers on a
regular basis and give them solid reasons to maintain a
bond with the company over time.
Database marketing tracks specific consumers’ buying
habits closely and tailors products and messages precisely
to people’s wants and needs based on this information
4. Some current trends in Consumer Behaviors
Social Media: The Proactive Consumers and
Horizontal Revolution User-Generated Content
Artificial Intelligence Sharing economy
“Big Data” and Data Authenticity and
Analytics personalization
Globalization of Brands Blurring of gender identity
and Cultural Practices and gender roles
Healthy and ethical living
4.1 Social Media: The Horizontal Revolution
The explosion of social media takes “word of mouse” to a
whole new level because it has created a horizontal
revolution.
Communications not only flow top-down from companies
and established media to passive recipients but also flow
across regular users (hence the word horizontal) through
social media.
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4.2 Artificial Intelligence
Machine learning
analyzes customer
data and predicts
their behaviors to
provide more
individualized ad
effective marketing
strategies.
4.2 Artificial Intelligence
Chatbots: are used
for replying
customers’ questions,
sales consultation,
online customer
service, etc.
4.2 Artificial Intelligence
Augmented Reality:
Augmented reality is an
interactive experience
that enhances the real
world with computer-
generated perceptual
information
Example: Nike Fit app
[Link]
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4.3 “Big Data” and Data Analytics
Consumers are generating massive amounts of information
that hold tremendous value for marketers.
Source: climate information, comments on social media
sites, credit card transactions, GPS signals in smartphones
that let organizations know where most consumers are, etc.
4.4 Globalization of Brands and Cultural
Practices
in-group bias: They prefer culturally related brands that
meet their desire to connect with “home” and their home
culture.
4.4 Globalization of Brands and Cultural
Practices
consumers can feel a sense of cultural distinctiveness
that drives them to seek out brands that represent other
cultural groups
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4.5 Proactive Consumers and User-Generated
Content (UGC)
Consumers can voice their opinions about products,
brands, and companies on blogs, podcasts, and social
networking sites.
Factors leading to UGC:
• technology and
• the gap between the content that customers want to see from
organizations and the content that they’re getting
3.6 Share economy
A continued blurring of the boundary between producers
and consumers, as everyday people take on the roles of
hoteliers, taxi drivers, and even advertising agencies. We
will see a de-emphasis on the value of owning products
such as automobiles and power tools as opposed to leasing
them on an as-needed basis.
3.6 Share economy
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3.6 Share economy
3.7 Authenticity and personalization
Consumers also will demand more individualized
experiences rather than buying mass-market products and
services.
3.7 Authenticity and personalization
Shoppers are willing to pay more for an item when they
know exactly where it comes from, and they are assured
that “real people” have thoughtfully selected the things
from which they choose
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3.8 Blurring of gender identity and gender roles
The continuing movement away from “gender binarism”
as gender identity becomes more fluid and more people do
not identify themselves as male or female.
3.9 Healthy and ethical living
A continued focus on wellness, physical fitness, and
environmental sustainability
THANK YOU
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