Intro to Consumer

Behavior
 Consumer behavior--
what is it?
 Applications
 Consumer Behavior
and Strategy
 Elements of strategy
 Consumer Analysis
 Consumer behavior
outcomes
MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 1
 One Definition

 Consumer behavior: the

study of individuals, groups, or
organizations and the processes
they use to select, secure, use,
and dispose of products, services,
experiences, or ideas to satisfy
needs and the impacts that these
processes have on the consumer
and society.

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 2

 Applications of Consumer
Behavior
 Marketing Strategy
 Regulatory (Public)
Policy
 Social Marketing
 Personal Consumer
Skills

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 3

 Orientations in the Study of
Consumer Behavior

 Anthropology
 Economics
 History and
geography
 Psychology
 Sociology

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 4

 Anthropology
 The study of people
within and across
cultures
 Emphasis on cross-
cultural differences
 Questioning of
assumptions within
own culture

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 5

 Economics
 Basic economic issues
 Supply and demand
 Rational decision making
 Perfect information
 Emphasis on predicting
behavior
 Complications in real life
 Behavioral economics—
e.g., “mental accounting”

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 6

 History and Geography
 Origins of behavior,
perspectives, and
traditions
 Impact of geography on
individuals
 Isolation
 Language development
 Climate
 Geographic determinism

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 7

 Psychology
 Study of human thinking
and behavior
 Some issues
 Personality
 Personal development
 Cognition (thinking),
perception
 Attention and its
limitations
 “Learning”—e.g., acquired
tastes

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 8

 Sociology
 Sociology is Cultural
and interpersonal
influences on
consumption—e.g.,
 Fads, fashions
 Diffusion of innovation
 Popular culture

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 9

 Marketing Strategy and
Consumer Behavior

MARKET MARKET
ANALYSIS SEGMENTATION

MARKETING CONSUMER
DECISION OUTCOMES
STRATEGY
PROCESSES

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 10

 Market Analysis
Components
 Consumers
 Firms
 Competitors
 Conditions
(environment)

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 11

 Market Segmentation
(covered in more detail later)

 Product-related need
sets
 Segments:
customers with
similar needs and
responses
 Segment description
 Segment selection

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 12

 Elements in Marketing
Strategy
 Product
 Communications
 Price
 Distribution
 Service

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 13

 Outcomes
 Firm  Society
 Product  Economic
position/perception  Physical environment
 Sales  Social welfare
 Customer satisfaction
 Individual
 Need satisfaction
 Injurious consumption

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 14

 The Nature of Consumer
Behavior
 External Influences
 Internal Influences
 Self-Concept
 Situations
 Experiences and
acquisitions

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 15

 Why We Buy: Some Issues
 Questions academics relatively well:
Whether, how, why?
 Questions academics answer less well:
 How much?
 Which effect is stronger?
 What if…?

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 16

 Why We Buy Issues
 “Conversion” and “interception” rates
 The “Transition Zone”
 Thinking like a consumer who is in the
shopping setting!
 A note on exam questions from the text:
You need to have read the book to be
able to answer! (The answers are not
obvious.)
MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 17