Chapter 1

Understanding Consumer
Behavior

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Learning Objectives
1. Define consumer behavior and explain the
components that make up the definition
2. Identify the four domains of consumer behavior
that affect acquisition, usage, and disposition
decisions
3. Discuss the benefits of studying consumer
behavior
4. Explain how companies apply consumer
behavior concepts when making marketing
decisions
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 1.1 - What Is Consumer Behavior?

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Consumer Behavior

Acquisition, consumption, and disposition of

goods, services, time, and ideas by human
decision-making units
– Acquisition: Consumer comes to own an
offering
– Usage: Consumer uses an offering
– Disposition: Consumer discards an offering

How does this relate to marketing strategies and

tactics?
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Consumer Behavior (continued 1)
Dynamic process
Can involve many people
Involves many decisions
Involves consumer emotions and coping

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Exhibit 1.2 - Disposition

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Exhibit 1.4 - Eight Ways to Acquire an
Offering

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 What Affects Consumer
Behavior?
Psychological core

• Motivation, ability, and opportunity

• From exposure to comprehension
• Memory and knowledge
• Attitude formation and change

Process of making decision

• Problem recognition and information search

• Judgment and decision making
• Post-decision processes

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 What Affects Consumer
Behavior? (continued)
Consumer behavior outcomes and issues

• Innovations: Adoption, resistance, and diffusion

• Symbolic consumer behavior
• Marketing, ethics, and social responsibility

Consumer’s culture

• Social influences on consumer behavior

• Consumer diversity
• Household and social class influences
• Psycholgraphics: Values, personality, and lifestyle

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Exhibit 1.7 - Forming and
Retrieving Memories

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Exhibit 1.8 - Influence of
Reference Groups

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Beneficiaries of Consumer
Behavior Studies
Marketing managers - understand what
consumers and clients value
Ethicists and advocacy groups - create
public awareness of inappropriate practices
Public policy makers and regulators -
protect consumers from unfair, unsafe, or
inappropriate marketing practices

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Beneficiaries of Consumer
Behavior Studies
Academics
– (a) disseminate knowledge about consumer
behavior when they teach courses
– (b) generate knowledge about consumer behavior
when they conduct research focusing on how
consumers act, think, and feel when acquiring,
using, and disposing of offerings
Consumers - enables marketers and other
organizations to provide tools for more
informed decision-making
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Marketing

Activity, set of institutions, and processes for

creating, communicating, delivering, and
exchanging offerings that have value
Aimed at individuals, groups, and society

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Marketing Implications
of Consumer Behavior
Developing or implementing customer-
oriented strategy
– Segmentation of the market
– Profitability of each segment
– Characteristics of consumers in each segment
– Customer satisfaction with existing offerings
Selecting target market

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Marketing Implications
of Consumer Behavior (continued 1)
Developing products
– Consumer ideas for new products
– Attributes that can be added or changed in
existing products
– Branding of offering
– Appearance of package and logo

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Marketing Implications
of Consumer Behavior (continued 2)
Positioning decisions
– Positioning of competitive offerings
– Positioning of one’s own offerings
– Need for repositioning offerings

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Marketing Implications
of Consumer Behavior (continued 3)
Promotion and marketing communication
decisions
– Communication objectives
– Appearance of marketing communications
– Location, time, and effectiveness of
advertisement
– Sales promotion objectives and tactics
– Effectiveness of sales promotion
– Number of sales personnel required to best
serve customers
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Marketing Implications
of Consumer Behavior (continued 4)
Pricing decisions
– Price range of a product or service
– Consumer sensitivity to price and price
changes
– Pricing tactics be used
Distribution decisions
– Time and convenience of consumers
– Assortment of merchandise
– Store design

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.