Consumer Behavior

Introduction to Consumer
Behavior and Marketing
Strategy

Objectives

Explain what consumer behavior (CB)

is and why it is important
Describe how CB is studied
Discuss what role CB plays in
marketing strategy
Examine misconceptions about CB

Consumer Behavior (1)

Study of the processes involved when

individuals or groups select, purchase,
use, or dispose of products, services,
ideas, or experiences to satisfy needs
and wants

What influences or determines these

decisions?

Consumer Behavior (2)

Dynamic
interaction of
affect & cognition,
behavior, and the
environment by
which we conduct
exchanges

Influencing Affect

Influencing Cognition

Influencing Behavior

Consumer Behavior

Thoughts and
feelings people
experience and
actions they
perform in
consumption
Elements of the
environment that
influence
thoughts, feelings,
and actions

Discussion Question

Based on our definition of consumer

behavior, identify the consumer
behavior activities you have engaged
in today

Why Study Consumer Behavior

Marketing

Planning and executing the conception,

pricing, promotion, and distribution of
goods, ideas, and services to create
exchanges that profitably satisfy
individuals wants and needs

Why Study Consumer Behavior

Increased focus on consumers

because of

Competition
Development of interactive marketing
tools

Finer segmentation

Shorter product life cycles

Market Penetration Rates

Studying Consumer Behavior

Shopping List Experiment

Read the shopping list below. Try to project yourself into the situation as far
as possible until you can more or less characterize the woman who bought
the groceries. Then write a brief description of her personality and
character.
SHOPPING LIST GROUP A

1 pounds of ground beef

2 loaves of whole wheat bread
1 pound bag of carrots
32 oz Mazola corn oil
Nescaf instant coffee
2 jars of Motts applesauce
5 pound bag of potatoes

SHOPPING LIST GROUP B

1 pounds of ground beef

2 loaves of whole wheat bread
1 pound bag of carrots
32 oz Mazola corn oil
1 pound Maxwell House Coffee (Drip Grind)
2 jars of Motts applesauce
5 pound bag of potatoes

Shopping List Experiment Results

Nescaf

48%
Lazy
48%
Poor at
Planning
4%
Thrifty
16% Spendthrift
16%
Not a good
wife
4%
Good wife

Maxwell House

4%
12%
Planning
16%
0%
0%
wife

Lazy
Poor at

16%

Good wife

Thrifty
Spendthrift
Not a good

Users of Consumer Research

Marketing organizations
Government and political
organizations
Consumers

Users of Consumer Research

Users of Consumer Research

Consumer Behavior

Thoughts and
feelings people
experience and
actions they
perform in
consumption
Elements of the
environment that
influence
thoughts, feelings,
and actions

CB and Marketing Strategy

Marketing strategy

Design, implementation, and control of a

plan to influence exchanges to achieve
organizational objectives to

Increase chances of favorable thoughts and

feelings of particular products, services, and
brands among consumers
Increase chances of trial and purchase

CB and Marketing Strategy

CB and Marketing Strategy

Powerful force on consumers and

society at large

The power of marketing and the ability of

consumer research and analysis to yield
insight into consumer behavior should not
be discounted or misused

Ethical Considerations

The Positive
Aspects of
Consumer
Research

The Negative
Aspects of
Consumer
Research

Ethical Considerations

Ethical Considerations

Ethical Considerations

Discussion Question

This ad was created

by the American
Association of
Advertising Agencies
to counter charges
that marketers create
needs
Do you agree with
the premise of the
ad? Why or why not?

Do Marketers Create Needs?

Objective of marketing

Needs

To create awareness that needs exists

Not to create needs
Basic biological motive

Wants

How we learned to satisfy the need

Beliefs about Consumer

Behavior

It is simple

Beliefs about Consumer

Behavior

It is simple
It is common sense

CB and Bottled Water

Consumer Behavior

Consumers pay 120 to 7,500 times as

much per gallon for bottled water as
for tap water

WHY?

Is it Safer / Healthier?

4-year study by Natural Resources Defense

Council tested more than 1,000 samples of
103 brands of bottled water

18 brands had, in at least one sample, "more

bacteria than allowed under microbiologicalpurity guidelines"
20 brands "contained synthetic organic
chemicals-such as industrial chemicals (e.g.,
toluene or xylene) or chemicals used in
manufacturing plastic (e.g., phthalate, adipate,
or styrene)."

Does it Taste Better?

Blind test on Good Morning America

Cincinnati Enquirer survey

Evian (12%), Poland Spring (24%) and NYC tap

water (45%)
On a 1-to-10 scale, city's tap water rated an 8.2,
compared with Evian's 7.2

Yorkshire, England

Water company found that 60% of 2,800 people

surveyed could not tell the difference between
the local tap water and the U.K.'s bottled waters

Beliefs about Consumer

Behavior

It is simple
It is common sense
Marketers dont really need to
understand Consumer Behavior

Importance of Understanding
Consumer Behavior

Importance of Understanding
Consumer Behavior