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An Introduction to

Consumer Behavior

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Example 1 The Logo of Giordano is Much Bigger in mainland

China than Hong Kong

Why??

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Example 2 Marketers sometimes sell products below cost. This

guarantees a loss

McDonalds Ice-cream for 1 dollar.

Why do they do this?

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Example 3 Marketers often price an item as x.99

A 3-pack of soap: 10.99

Why not 11?

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Example 4 Dim Lighting in upscale restaurants

Why?

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Example 5.Continued In the US, the Marlboro cowboy is usually shown alone

In Japan, the cowboy is shown in a group

Why?

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Example 6 Coca-Cola was a big failure when it was first

introduced in mainland China

Why?

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Example 7 McDonalds in India: no beef in their hamburgers!

Why?

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Example 8 During periods when consumers are not shopping

much (e.g., bad economy), store managers often playslow music within stores

During busy periods (e.g., holiday season), fast musicis played

Why?

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Example 9 Mercedes-Benz sponsors certain sports

Which types does it sponsor? Which does it notsponsor?

Why?

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Example 11 The Levis brand name stands for which product??

Yet, in the 1980s, Levis introduced a very differentkind of pant called Dockers

Loose, semi-formal

Why?

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Who Am I?

I'm the fellow who goes into a restaurant, sits down and patiently

waits while the waitresses do everything but take my order. I'mthe fellow who goes into a department store and stands quietly

while the sales clerks finish their little chitchat. I'm the man who

drives into a gasoline station and never blows his horn, but waits

patiently while the attendant finishes reading his comic book.

"Yes, you might say, I'm a good guy. But do you know who else I

am? I am the fellow who never comes back, and it amuses me to

see you spending thousands of dollars every year to get me back

into your store, when I was there in the first place, and all you hadto do to keep me was to give me a little service; show me a little

courtesy."

Source: From a Better Business Bureau bulletin submitted by AnArkansas Reader to Dear Abby

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Defining Consumer Behavior

Consumer Behavior is the ProcessInvolved When Individuals or GroupsSelect, Use, or Dispose of Products,

Services, Ideas or Experiences(Exchange) to Satisfy Needs and

Desires.

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Issues During Stages in the

Consumption Process

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Consumers Impact on Marketing

Strategy

Understanding consumer behavior is goodbusiness. Firms exist to satisfy consumers needs, so

Firms must understand consumers needs to satisfy them.

The Process of Marketing Segmentation: Identifies Groups of Consumers Who are Similar to One

Another in One or More Ways, and

Devises Marketing Strategies that Appeal to One or More ofThese Groups.

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Consumers are Affected by

Different Dimensions

Age

Family Structure

GenderRace and

Ethnicity

Geography

Social Class

and Income

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Consumption Typology

Different Ways That Products and Experiences CanProvide Meaning to People.

4 Distinct Types of Consumption Activities:

Consuming as Experience

Consuming as Integration

Consuming as Classification

Consuming as Play

An Emotional or AestheticReaction to Consumption Objects

Express Aspects of Self or

Society

Communicate Their Association

With Objects, Both to Self/ Others

Participate in a Mutual Experience

and Merge Self With Group

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Types of Relationships a Person May Have With

a Product:

Self-Concept AttachmentHelps to Establish the Users Identity

Nostalgic AttachmentServes as a Link With a Past Self

InterdependencePart of the Users Daily Routine

LoveElicits Bonds of Warmth, Passion, or Other

Strong Emotion

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The Dark Side of Consumer

Behavior

Compulsive Consumption

>Behavior is Not Done by Choice>Gratification is Short-Lived>

Strong Feelings of Regret orGuilt Afterwards

Illegal Activities

> Consumer Theft (Shrinkage)>Anti-consumption

Culture Jamming Cultural Resistance

Consumed Consumers

> People Who Are Exploited forCommercial Gain in theMarketplace.

Addictive Consumption

> Gambling

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The Wheel of Consumer Behavior

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Three important ideas: People are viewed as symbolic beings who foresee the

probable consequences of their behavior.

People learn by watching the actions of others and theconsequences of these actions (i.e. vicarious learning).

People have the ability to regulate their own behavior.

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7 Types of Consumer Risks.

Financial

Performance Physical

Psychological

Social

Time

Opportunity Loss

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The Structure of Emotions

Ten Fundamental Emotions People Experience:

Disgust InterestJoy Surprise

Sadness Anger

Fear Contempt Shame Guilt

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Businesss Impact on Consumers Marketing and Culture

Popular Culture

Intangible and Tangible Objects

The Global Consumer Global Consumer Culture

Virtual Consumption

Business to Consumer Selling (B2C Commerce)

Consumer to Consumer Selling (B2B Commerce)

Virtual Brand Communities

Blurred Boundaries: Marketing and Reality

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Thank You