Introduction to

Consumer Behavior
CHAPTER 1
Recap of Marketing

 Production Concept
 Product Concept
 Selling concept
 Market Segmentation
 Market targeting
 Positioning
 Marketing Mix
 Customer Value
 Customer Satisfaction
Consumers do not buy Drill bits- they buy ways to
make holes
Why Consumer Behavior??
Consumer Behavior

 . . . is defined as the study of the processes

involved in acquiring, consuming, and disposing
of goods, services, experiences, and ideas.
What is the difference between

 Customer
 Consumer
Exchange process

 Exchange is the process that involves the

“transfer of something tangible or
intangible, actual or symbolic, between
two or more social actors.”
Pre-reqs for exchange

 Two or more parties must be present

 Each party has something of value to the other
 Each party is capable of communication and delivery
 Each party must be free to accept or reject the other's offer
 Each party must believe that it is appropriate or desirable to
deal with the other
Consumer are different
Consumer are different

 Mass Culture Highly customized society

 Heavy users
 Age
 Gender
 Family structure
 Race & Ethnicity
 Geography
 Lifestyle
Product Positioning

 . . . is how consumers perceive a brand’s characteristics relative to

those of competitive offerings

 Goal is to influence demand by creating a product with specific

characteristics (i.e. brand attributes) and a clear image that
differentiates it from competitors
 Specific Positioning
 positioning a brand by creating linkages between brand and key attributes
and benefits. E.g., acceleration, reliability etc. for an automobile

 Competitive Positioning
 positioning a brand in relation to competitors
 E.g. Coca Cola & Pepsi Cola

 Psychological Positioning
 positioning a brand based upon dominant personality characteristic of target
market.
 E.g. Do the Dew
All the World’s a Stage

 We all are actors, who act differently in each situation.

 We as consumers seek the lines, props, costumes necessary to put on
for a good performance.
 Self-concept attachment
 Nostalgic attachment
 Interdependence
 Love
 Self-concept attachment: The product helps to establish the user’s
identity
 Nostalgic attachment: The product serves as a link with the past self.
 Interdependence: The product is a part of the user’s daily routine
 Love: The product elicits emotional bonds of warmth
Age of Digitization

 If you were paid $1 on your article posted on Wikipedia, you would be

earning $156/hour
 It took radio 38 years to reach 50Mn population, TV took 13 years ad
Internet took 4 years. In less than 9 months FB added 100 Mn new
accounts.
 About 70% of user on FB are outside US
 80% of the companies use LinkedIn as primary tool for recruiting
 People share more than 1.5 BN pieces of content on FB every day
 80% twitter usage is from mobile devices and 17% tweets were posted
while in toilet.