customer relationship and consumer behavior

1. Chapter 1
Understanding
Consumer Behavior
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives~ Ch. 1
1. Define consumer behavior and explain the components
that make up the definition.
2. Identify the four domains of consumer behavior shown
in Exhibit 1.4 that affect acquisition, usage, and
disposition decisions.
3. Discuss the benefits of studying consumer behavior.
4. Explain how companies apply consumer behavior
concepts when making marketing decisions.

3. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumer Behavior
The acquisition, consumption, and disposition of goods,
services, time & ideas by (human) decision making units
You do this multiple times a day
Consciously & unconsciously
Rationally & emotionally
Influenced by advertising, social media, friends/family,
celebrity, sport & marketing communications

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Consumer Behavior (CB)
Reflects totality of consumer’s decisions with respect to
the acquisition, consumption, & disposition of:
− Good
− Services
− Time
− Ideas by (human)
Over time
How does this relate to marketing strategies &
tactics?

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CB & Consumption
Acquisition
Usage
Disposition
Please think of each form of cb that you have
done in the last 24 hours….

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Consumer Behavior
Dynamic process
Can involve many people
Involves many decisions big & small
Involves consumer feelings & coping
The abcs of consumer behavior intertwine:
− Attitude/affect
− Behavior
− Cognition

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What Impacts
Consumer Behavior?
① Psychological Core
② Decision-Making Process
③ Consumer Culture
④ Consumer Behavior Outcomes

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① Psychological Core
Motivation, ability, & opportunity
Exposure, attention, & perception
Categorizing & comprehending information
Forming & changing attitudes
Forming & retrieving memories

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② Decision-making Process
Problem recognition & search for information
Judgments & decisions
Post-decision evaluations

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③ Consumer Culture
External Processes/Influences:
Consumer diversity
Social class & household
Values, personality, & lifestyles
Reference groups & other social influences

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④ Consumer Behavior
Outcomes
Symbolize who we are—external signs used to
express identity
Diffuse through a market—influence others’
decision making
Ethics & corporate social responsibility (CSR)

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Important Aspects
CB involves more than just products (e.g., going to the
dentist, what TV programs to watch, taking aerobics
class, going skydiving, donating to a cause, etc.)
CB involves more than just buying:
− Acquisition (leasing, trading, borrowing)
− Usage (gives insight on symbolic aspects, usage
patterns, new product ideas or improvements, W-O-M)
− Disposing (recycling, product durability)
CB is a dynamic process (sequence of events over time)

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Importance of CB
to Marketing Managers
Importance of being customer-focused
Market segmentation: can group consumers by
similar needs, wants, & attitudes
− identify the most valued customers for marketing
activities
Customer relationship management (CRM):
providing value & service to customers over time to
build loyalty
Positioning: niche in consumers’ minds − critical to
success
What company do you think does this best?