Consumer behavior is the study of how individuals and groups select and use products to satisfy their needs, significantly impacting both themselves and society. Understanding consumer behavior is essential for effective marketing, as it enables firms to identify and target specific market segments, ensuring successful engagement and retention. Key elements in this study include decision-making processes, demographic trends, and social influences that shape consumer preferences.

1. CONSUMER BEHAVIOR
Sidra Akhtar

2. WHAT IS CONSUMER BEHAVIOR?
 “The study of individuals, groups, or organizations and
the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to
satisfy needs and the impact that these processes have
on the consumer and society”
-- Hawkins, Best, and Coney 2004
 “The study of the cognitive, emotional, and physical
activities associated with the perception, evaluation,
choice, acquisition, use, and disposition of goods and
services.”

4. WHY STUDY CONSUMER BEHAVIOR?
 The Marketing Concept:
 Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, and services to create more satisfying
exchanges than the competition.
 Corollary:
 Success in the marketplace requires: knowing, then
attracting, satisfying, and retaining customers.

5. WHY STUDY CONSUMER BEHAVIOR?
 No brand/product can appeal to all people.
Firms must segment the market into groups with relatively
homogeneous preferences and target one or more groups.
Firms must position their offerings in the hearts and minds of
these individuals in a favorable way.
Firms must examine all of the touch points that shape how a
consumer will respond to their offering.

6. WHY STUDY CONSUMER BEHAVIOR?
 Our guesses about people are inaccurate.
 This is because human nature leads us to believe that other people
think like us
 false consensus
 People tend to perceive differences even when they don’t exist
 stereotyping

7. WHY STUDY CONSUMER BEHAVIOR?
 Therefore, we must strive to…
Identify customer needs and wants
Engage in research
Understand how customers will respond to different
messages and environments
Learn about and apply theories
Anticipate where preferences are headed
Staying informed

8. ESSENTIAL TOOLS:
 Consumer Decision Making
 Demographics / Trends
 Information Processing
 Social Influence

9. CONSUMER DECISION MAKING
 Consumer-side
 Marketer-side
Choice
Alternative
Evaluation
Search
Need
Recognition
Post-Purchase
Evaluation
Action
Desire
Interest
Awareness

10. ESSENTIAL TOOLS:
 Consumer Decision Making
 Demographics / Trends
 Information Processing
 Social Influence

11. DEMOGRAPHIC TRENDS:
 Aging population
 Cultural Diversity & Globalization

12. LIFESTYLE & SEGMENT TRENDS:
 Staying connected
 Cellular phones
 Instant messaging
 Health & Fitness
 Atkins
 Water

13. ESSENTIAL TOOLS:
 Consumer Decision Making
 Demographics / Trends
 Information Processing
 Social Influence

14. CONSUMER INFORMATION PROCESSING
Stimuli Exposure
Attention
Comprehension
Acceptance
Retention Purchase

15. ESSENTIAL TOOLS:
 Consumer Decision Making
 Demographics / Trends
 Information Processing
 Social Influence

16. SOCIAL INFLUENCE
 Creating “Buzz” through word of mouth
 Cultural and generational influence
 Family & Group Influence