Chapter 1 - Summary Consumer Behavior: Buying Having and Being PDF

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CHAPTER 1: AN INTRODUCTION TO CONSUMER BEHAVIOR 1) Consumer behaviour is a process (consumption process) 2) Marketers must understand needs of different consumers 3) Marketers can influence consumers 4) Consumer behaviour can have a “dark side” (addiction) 5) Marketers use both primary and secondary research to better understand the consumer, and how they consume (before, during, and after) What is Consumer Behavior? Consumption process: Issues that influence the consumer before (research), during (experience, process, meaning of consumption), and after the purchase (use, disposal). 

Study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas, experiences to satisfy needs and desires

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Attitudes are difficult to change, situational factors influence during, satisfaction and expectations met – do they influence others?

Consumer Behavior is a Process 

Field of consumer behavior used to be often referred to as buyer behavior

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It is an ongoing process, not just what happens in the moment

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Exchange: two or more organization or people give and receive something of value

CONSUMERS’ IMPACT ON MARKETING STRATEGY 

Understanding consumer behavior is good business

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Consumer response is ultimate test of whether marketing strategy will succeed

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Discover needs (CB)  satisfy needs (4Ps)

Segmenting Consumers 

Market segmentation: identifies groups of consumers who are similar to one another in one or more ways and then devises strategies that appeal to groups

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80/20 rule: 20% of users account for 80% of percent of sales

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Demographics: stats that measure observable aspects of a population

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CHAPTER 1: AN INTRODUCTION TO CONSUMER BEHAVIOR Birth rate, age, income, geographic 

Psychographics: differences in consumers’ personalities, attitudes, values, lifestyles Lifestyles: Beyond Demographics (what we like to do in our spare time)

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Relationship marketing: Building Bonds w/ Consumers 

Making an effort to interact with customers on a regular basis, giving them reasons to maintain a bond with a company over time

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Database marketing: tailor marketing activities based on collected info

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Big data: the collection and analysis of extremely large datasets.

MAKETING’S IMPACT ON CONSUMERS Marketing and Culture -

Our views of the world can be affected by marketers. Be responsible. 

Popular culture: consists of the music, movies, sports, books, celebrities and other entertainment consumed by the mass market Product and inspiration for marketers

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Consumer generated content: consumers themselves voice their own opinion about products, brands, companies on blogs, podcasts, social networking sites

The Meaning of Consumption 

People often buy products not for what they do but for what they mean – brand personality

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Emphasizes the role that products play in our lives go way beyond the tasks they perform

The Global Consumer 

U-commerce: ubiquitous networks, whether in the form of wearable computers or customized ads beamed to us on our cell phones

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RFID tag: contains computer chip and tiny antenna that lets chip communicate with network

Virtual Consumption

CHAPTER 1: AN INTRODUCTION TO CONSUMER BEHAVIOR  C2C with review sites (rotten tomatoes, tripadvisor, etc) 

Digital native: students that have grown up wired in a highly networked world

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Horizontal revolution: each of us communicate with huge numbers of people by a click on a keypad, characterized by the prevalence of social media

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Social media: online means of communication, conveyance, collaboration, cultivation among interconnected and interdependent networks of people, communities, orgs 

Synchronous interactions: interactions that occur in real time

(facebook) 

Asynchronous interactions: ones that don’t require all participants to

respond immediately (text a friend, get an answer the next day) 

Culture of participation: belief in democracy, ability to interact freely with others

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Open access to venues that allow users to share content

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Social media allows this

MARKETING ETHICS AND PUBLIC POLICY Business Ethics: rules of conduct that guide actions in the marketplace 

Standards against which most people in a marketplace judge what is right,

wrong, good, or bad 

Ethical business is “good business”

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Bribery is wrong

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Biggest problem today, Behavioural marketing.

Prescribing Ethical Standards of Conduct: Guidelines of conduct 

Disclosure of all substantial risks associated with product/services

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Identification of added features that will increase the cost

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Avoidance of false or misleading advertising

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Rejection of high-pressure or misleading sales tactics

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Prohibition of selling or fundraising under the guise of conducting market

research

NEEDS AND WANTS: DO MARKETERS MANIPULATE CONSUMERS?

CHAPTER 1: AN INTRODUCTION TO CONSUMER BEHAVIOR  Criticism of marketing is that we convince people they need thing Do Marketers Create Artificial Needs? 

Needs: past, present, future. Constantly evolving. They are already there; we simply recommend ways to satisfy it

Are Advertising and Marketing Neceessary 

Important tools to manipulate masses, according to john Kenneth

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According to textbook, products are designed to meet existing needs, and advertising merely helps to communicate the product’s availability

Public Policy and Consumerism 

The welfare of the consumer is protected by many laws at the federal, provincial and municipal levels

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Regulation protects consumers from unfair business practices and protects the broad interests of society

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Labeling of harmful products and prohibition of sales of certain substances (melatonin) are meant to protect the health of Canadians.

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Lead paint from Chinese toys pulled off the shelves

Consumer Activism and its Impact on Marketing 

Culture jamming: aims to disrupt efforts by the corporate world to dominate our cultural landscape

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Corporate social responsibility (CSR): choose to protect or enhance positive social and environmental impacts as you go about business activities. Trends: align social impact with business strategy. Shift from CSR to Social Impact

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Corporate giving: some marketers who donate money to good causes

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Cause-related marketing: promising donations to charity as purchase incentives

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Green marketing: offer products in ways that are less harmful to environment

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Social marketing: marketing techniques normally employed to sell beer or detergent to encourage positive behaviors such as increased literacy or discourage negative activities such as drunk driving

CHAPTER 1: AN INTRODUCTION TO CONSUMER BEHAVIOR  Transformative Consumer Research (TCR): researchers organizing to not only study but to rectify what they see as pressing social problems in the marketplace Consumers are not objects of research but collaborators who work with

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researchers to realize this change

THE DARK SIDE OF CONSUMER BEHAVIOR Addictive Consumption Consumer addiction: physiological or psychological dependency on products

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or services. Ex: alcohol, drugs, cigarettes, social media, etc.

Compulsive Consumption 

People who shop because they feel compelled to do so because shopping is pleasurable for them

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Compulsive Consumption: repetitive shopping, often excessive, tension, anxiety, depression, boredom Different from impulse buying, which will be discussed later

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Products control the consumer when someone is a compulsive consumer

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Three common characteristics of negative or destructive consumer behavior

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Behavior is not engaged by choice

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Gratification derived from the behavior is short-lived

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The person experiences strong feelings of regret or guilt afterwards 

An example is gambling

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Shrinkage: industry term for inventory and cash losses from shoplifting and

Illegal Activities: Consumer Theft

employee Frequently stolen products are athletic shoes, logo, brand name apparel, jeans

  Anticonsumption

Abuse of exchange policies

CHAPTER 1: AN INTRODUCTION TO CONSUMER BEHAVIOR  Anticonsumption: destructive consumer behavior, rebelling against the idea of consumption itself Product tampering, innocent consumers are hurt, graffiti on subways, destroying

 billboards

HOW DO WE FIND OUT ABOUT CONSUMERS? THE ROLE OF CONSUMER RESEARCH 

Primary research: data collected by the researcher. Goal: to uncover consumer insights.

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Secondary research: data collected from a pre-existing source to answer a different research question.

Primary Research 

Survey: set of questions posed by the researcher

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Focus Groups: small moderated group sessions

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Interviews: one-to-one interaction with the researcher and subject

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Observational Research: behaviors are directly observed in a natural context or controlled setting. Ethnographic: real world.

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Qualitative Research:

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Storytelling (consumer tell researcher about experience with product)

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Role-playing (consumers put themselves in a particular role)

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Photos or pictures

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Diary

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Projective techniques (presentation of ambiguous, unstructured object) 

Experimental Research

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Experiments: used when researchers want to make cause-and-effect claims

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Random assignment: put participants into groups or experimental conditions by

Experiments

random 

Independent variable: variable that researcher manipulates

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Dependent variable: variable that researcher measures

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