Consumer Behavior

1. Chapter 1
Introduction to
Consumer Behavior
and Marketing
Strategy
McGraw-Hill/Irwin

2. 1-2
Three Elements for Marketing Strategy

3. 1-3
The American Marketing Association defines
consumer behavior as:
The dynamic interaction of affect and cognition,
behavior, and the environment by which human
beings conduct the exchange aspects of their lives.
Involves thoughts and feelings people experience
and actions they perform in the consumption
processes.
What is Consumer Behavior?

4. 1-4
Includes all things in the environment that
influence thoughts, feelings, and actions.
Comments from other consumers
Advertisements
Price information
Packaging
Product appearance
What is Consumer Behavior?

5. 1-5
Thinking, feelings, and actions of individual
consumers, targeted consumer groups, and
society at large are constantly changing.
Requires ongoing consumer research and analysis
of important trends.
Makes development of marketing strategies
difficult and exciting.
Shorter product life-cycle increases importance of
constant innovation.
Consumer Behavior is Dynamic

6. 1-6
Interactions among people’s thinking, feelings
and actions, and the environment
Marketers need to understand:
What products and brands mean to consumers?
What consumers must do to purchase and use them?
What influences shopping, purchase, and consumption?
Consumer Behavior Involves Interactions

7. 1-7
Exchange between people involves giving up of
something of value and receiving something in
return.
Role of marketing in society is to help create
exchanges by formulating and implementing
marketing strategies.
Consumer Behavior Involves Exchanges

8. 1-8
Exhibit 1.1 - Approaches to the Study of
Consumer Behavior

9. 1-9
Interpretive
Based on theories and methods from cultural
anthropology.
Objective is to understand consumption and its
meanings.
Methods of study involve:
 Long interviews
 Focus groups
Major Approaches to Studying Consumer
Behavior

10. 1-10
Traditional
Based on theories and methods from cognitive, social,
and behavioral psychology, and sociology.
Objective is to develop theories and methods to
explain consumer decision making and behavior.
Methods of study involve:
Experiments
Surveys
Major Approaches to Studying Consumer
Behavior

11. 1-11
Marketing science
Based on theories and methods from economics and
statistics.
Objective is to develop and test mathematical models
to predict the impact of marketing strategies on
consumer choice and behavior.
This method of study has become popular in the
consumer packaged goods industry since it can handle
large scanner data sets.
Major Approaches to Studying Consumer
Behavior

12. 1-12
Exhibit 1.2 - Relationship Among Action-
Oriented Groups in Consumer Behavior

13. 1-13
Three groups use knowledge about consumer
behavior and consumer behavior research
Marketing organizations
Businesses attempting to sell products.
Organizations that seek exchanges with consumers.
Government and political organizations
Major concern is monitoring and regulating exchanges
between marketing organizations and consumers.
Uses of Consumer Behavior Research

14. 1-14
Consumers
Includes consumers and organizational buyers who
exchange resources for various goods and services.
Interest in making exchanges that help them achieve their
goals and the understanding of their own behavior.
Uses of Consumer Behavior Research (cont.)

15. 1-15
Marketing strategy
Design, implementation, and control of a plan to
influence exchanges to achieve organizational
objectives.
In consumer markets, these are designed to:
Increase chances of favorable thoughts and feelings of
particular products, services and brands among consumers.
Increase chances of trial and purchase.
Consumer Behavior’s Role in Marketing
Strategy

16. 1-16
Marketing strategy
Developed by manufacturers, retail stores, catalog
retailers, e-tailers and other direct marketers to:
Increase chances of favorable thoughts and feelings among
consumers about purchasing from them.
Increase chances of actual purchase.
Developed by companies that make funds available
for purchase to:
Increase chances of usage of services offered by
consumers.
Consumer Behavior’s Role in Marketing
Strategy

17. 1-17
Marketing strategies involve developing and
presenting marketing stimuli directed at selected
target markets to influence:
What they think?
How they feel?
What they do?
Essence of marketing strategy is to understand
markets, develop and implement superior
strategies to attract and hold them profitably.
Consumer Behavior’s Role in Marketing
Strategy

18. 1-18
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.
Consumer Behavior’s Role in Marketing
Strategy

19. 1-19
Defined the marketing concept and discussed
early views.
Presented aspects of consumer behavior.
Examined three major approaches to consumer
behavior research.
Identified the groups that use knowledge about
consumer behavior and research.
Discussed the role of consumer behavior in
marketing strategy.
Summary