An Introduction to Consumer Behavior

Example 1
The Logo of Giordano is Much Bigger in mainland

China than Hong Kong

Why??

Example 2
Marketers sometimes sell products below cost. This

guarantees a loss
McDonalds Ice-cream for 1 dollar.

Why do they do this?

Example 3
Marketers often price an item as x.99 A 3-pack of soap: 10.99
Why not 11?

Example 4
Dim Lighting in upscale restaurants
Why?

Example 5.Continued
In the US, the Marlboro cowboy is usually shown alone
In Japan, the cowboy is shown in a group Why?

Example 6
Coca-Cola was a big failure when it was first

introduced in mainland China

Why?

Example 7
McDonalds in India: no beef in their hamburgers!
Why?

Example 8
During periods when consumers are not shopping

much (e.g., bad economy), store managers often play slow music within stores
During busy periods (e.g., holiday season), fast music

is played
Why?

Example 9
Mercedes-Benz sponsors certain sports
Which types does it sponsor? Which does it not

sponsor?
Why?

Example 11
The Levis brand name stands for which product??
Yet, in the 1980s, Levis introduced a very different

kind of pant called Dockers

Loose, semi-formal

Why?

Who Am I?
I'm the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. I'm the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. I'm the man who drives into a gasoline station and never blows his horn, but waits patiently while the attendant finishes reading his comic book.

"Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy."
Source: From a Better Business Bureau bulletin submitted by An Arkansas Reader to Dear Abby

Defining Consumer Behavior

Consumer Behavior is the Process Involved When Individuals or Groups Select, Use, or Dispose of Products, Services, Ideas or Experiences (Exchange) to Satisfy Needs and Desires.

Issues During Stages in the Consumption Process

Consumers Impact on Marketing Strategy

Understanding consumer behavior is good

business.
Firms exist to satisfy consumers needs, so Firms must understand consumers needs to satisfy them.

The Process of Marketing Segmentation:

Identifies Groups of Consumers Who are Similar to One

Another in One or More Ways, and Devises Marketing Strategies that Appeal to One or More of These Groups.

Consumers are Affected by Different Dimensions

Geography Age

Race and Ethnicity

Gender

Social Class and Income

Family Structure

Consumption Typology
Different Ways That Products and Experiences Can Provide Meaning to People.

4 Distinct Types of Consumption Activities:

Consuming as Experience An Emotional or Aesthetic Reaction to Consumption Objects Express Aspects of Self or Society Communicate Their Association With Objects, Both to Self/ Others Participate in a Mutual Experience and Merge Self With Group

Consuming as Integration

Consuming as Classification

Consuming as Play

Types of Relationships a Person May Have With a Product:

Self-Concept Attachment
Helps to Establish the Users Identity

Nostalgic Attachment
Serves as a Link With a Past Self

Interdependence
Part of the Users Daily Routine

Love
Elicits Bonds of Warmth, Passion, or Other Strong Emotion

The Dark Side of Consumer Behavior

Compulsive Consumption
>Behavior is Not Done by Choice >Gratification is Short-Lived >Strong Feelings of Regret or Guilt Afterwards

Addictive Consumption
> Gambling

Illegal Activities
> Consumer Theft (Shrinkage) >Anti-consumption Culture Jamming Cultural Resistance

Consumed Consumers
> People Who Are Exploited for Commercial Gain in the Marketplace.

The Wheel of Consumer Behavior

Three important ideas:

People are viewed as symbolic beings who foresee the

probable consequences of their behavior.

People learn by watching the actions of others and the

consequences of these actions (i.e. vicarious learning).

People have the ability to regulate their own behavior.

7 Types of Consumer Risks.

Financial Performance Physical Psychological Social Time Opportunity Loss

The Structure of Emotions

Ten Fundamental Emotions People Experience:
Disgust

Joy
Sadness Fear

Shame

Interest Surprise Anger Contempt Guilt

Businesss Impact on Consumers

Marketing and Culture Popular Culture Intangible and Tangible Objects

The Global Consumer

Global Consumer Culture

Virtual Consumption
Business to Consumer Selling (B2C Commerce) Consumer to Consumer Selling (B2B Commerce) Virtual Brand Communities

Blurred Boundaries: Marketing and Reality

Thank You