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What is Consumer Behavior?

Activities people undertake when

obtaining, consuming, and
disposing of products and
services
 Consumer Organizational
Influences Influences

Obtaining Consuming Disposing

Consumer Behavior
 Consumer Organizational Influences
Influences

Culture Brand
Ethnicity Product Features
Personality Advertising
Values Word of Mouth
Life-stage Promotions
Family Retail Displays
Income Price
Feelings Quality
Attitudes Service
Opinions Store Ambiance
Available Resources Convenience
Motivations Loyalty Programs
Past Experiences Packaging
Peer Groups Product Availability
Knowledge
 Consumer Organizational
Influences Influences

Obtaining Consuming Disposing

Consumer Behavior
 Obtaining Consuming Disposing

· How you · How you use · How you get rid

decide you product of remaining
want to buy product
· How you store
· Products you the product in · How much you
consider your home throw away after
buying use
· Who uses the
· Where you product · If you resell
buy items yourself or
· How much you through a
· How you pay consume consignment
for product store
· How product
· How you compares with · How you recycle
transport expectations products
product home
 CONSUMER INFLUENCES ORGANIZATIONAL INFLUENCES
Culture Ethnicity Brand Product Features
Personality Family Advertising Word of Mouth
Life-stage Values Promotion Retail Displays
Income Available Price Quality
Resources Attitudes Service Store Ambiance
Opinions Motivation Past Convenience Loyalty Programs
Experiences Feelings Peer Packaging Product Availability
Groups Knowledge

OBTAINING CONSUMING DISPOSING

· How you decide you
want to buy
· Products you consider
buying
· Where you buy
· How you pay for product
· How you transport
product home
· How you use product · How you get rid of
· How you store the remaining product
product in your home · How much you throw
· Who uses the product away after use
· How much you · If you resell items
consume yourself or through a
· How product compares consignment store
with expectations · How you recycle
products

Consumer Behavior
What is Consumer Behavior?

Activities people undertake when

obtaining, consuming, and
disposing of products and
services
A field of study focusing on
consumer activities
What is Consumer Behavior?

Activities people undertake when

obtaining, consuming, and
disposing of products and
services
A field of study focusing on
consumer activities
Focus beyond just how people
buy to how they consume goods
The Marketing Concept
The process of planning and
executing the conception, pricing,
promotion, and distribution of
ideas, goods, and services to create
exchanges that satisfy individual
and organizational objectives.
The Marketing Concept
The process of planning and
executing the conception, pricing,
promotion, and distribution of
ideas, goods, and services to create
exchanges that satisfy individual
and organizational objectives.
Satisfaction with exchange depends
on satisfaction with use and
consumption of product
Why Study Consumer Behavior?
Consumer Behavior Helps Analyze
Consumers’ Increasing Influence

Marketing:
Process of transforming or
changing an organization to
have what people will buy

“The Customer is King”

Organization influenced by
consumer needs and wants
Why Study Consumer Behavior?
Consumer Behavior Helps Analyze
Consumers’ Increasing Influence
Consumer Behavior Educates and
Protects Consumers
Educating Consumers About Cancer

Understanding
consumers’
issues or
problems and
developing
methods to
reach and
educate
consumers
Tums
educates
consumers
about the
importance
of calcium
and
increases
awareness of
its calcium
content
Why Study Consumer Behavior?
Consumer Behavior Helps Analyze
Consumers’ Increasing Influence
Consumer Behavior Educates and
Protects Consumers
Consumer Behavior Affects Public
Policy
Consumer Behavior Affects
Personal Policy
Evolution of Consumer Behavior

Retail Supply Chain:

all the organizations involved in taking a
product from inception to final
consumption
-Manufacturers
-Wholesalers
-Retailers
-Facilitating Organizations

Consumers’ Increased Influence on

Business
Evolution of Consumer Behavior

Consumers’ Increasing Influence

Wholesaler Manufacturer Retailer Consumer

Manufacturing Marketing
Orientation Orientation

Selling Comprehensive
Orientation Consumer
Orientation
Evolution of Consumer Behavior

Manufacturing Orientation
Selling Orientation
Marketing Orientation
-Motivation research
-Positivism
-Postmodernism
Evolution of Consumer Behavior

Manufacturing Orientation
Selling Orientation
Marketing Orientation
Comprehensive Consumer
Orientation
Comprehensive Consumer
Orientation
Beyond a marketing focus
Alliances between supply chain
members to focus on the needs of
consumers
-Shared information
-Common consumer-oriented
goal
Role of consumers in shaping all
aspects of life--society, government,
and societal organizations
Consumer Research Methods
Observation
Gaining information by observing
consumers in different situations, in
natural or artificial setting
In-home observation: examining how and when
consumers use and consume products in their households

Shadowing: following and observing consumers in the

shopping and consumption processes. Researchers may ask
questions about reasons for behaviors

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights
Consumer Research Methods
Interviews and Surveys
Surveys: efficient method for gathering information from a
large sample of consumers by asking questions and recording
responses (telephone and Internet surveys, mall intercepts and
mail questionnaires)

Focus Groups: a group discussion lead by a skilled

moderator and designed to probe specific topics in-depth

Longitudinal Studies: repeated measures of

activities over time to examine changes in behaviors/opinions
 Consumer Research Methods
Experimentation
Measuring cause-and-effect relation-ships
by manipulating independent variables to
determine the effects of changes on
dependent variables
-Laboratory experiment -Field
experiment
Independent variables might include advertising
frequency and package design.

Dependent variables might include purchase intent or

behavior.
Consumer Research Methods
Consumption Research
Builds on the three primary research
methods to examine how people buy and
use products and services.
May use ethnographic tools to under-
stand how values and culture influence
usage of products and other behaviors.
May identify new uses for existing
products or new product to satisfy
unmet or changing consumer needs.

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights
The Underlying Principles of
Consumer Behavior
The Consumer is Sovereign
The Consumer is Global
Consumers are exposed to and
buy many global brands

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights
The Underlying Principles of
Consumer Behavior
The Consumer is Sovereign
The Consumer is Global
Consumers are Different;
Consumers are Alike
The Consumer has Rights
Everyone Needs to Understand
Consumers

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights
Challenges for the Future
Gathering and interpreting
information that organizations need
to meet changing needs of
consumers
Developing effective consumer
research methods to capture
changes in trends and lifestyles
Understanding consumer behavior
from a broader perspective as an
important part of life
Thanks