This document provides an overview of consumer behavior and how it is studied. It defines consumer behavior as the activities people undertake when obtaining, consuming, and disposing of products and services. Consumer behavior involves influences on consumers at both the individual level (e.g. culture, personality) and organizational level (e.g. advertising, promotions). Researchers study consumer behavior using methods like observation, interviews, surveys, and experiments in order to understand purchase decisions and consumption activities. Understanding consumer behavior is important because it determines the success of marketing programs and the economic health of individuals, organizations, and nations. It also helps formulate effective public policy.

1. COPYRIGHT © 2012 Cengage Learning Asia
Roger D. Blackwell
Paul W. Miniard
James F. Engel
Pai Di-ching; Norjaya Mohd. Yasin; Wan Jooria Hood
Consumer Behavior

2. COPYRIGHT © 2012 Cengage Learning Asia

3. COPYRIGHT © 2012 Cengage Learning Asia
What Is Consumer Behavior?
Activities people undertake when
obtaining, consuming, and
disposing of products and
services

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ObtainingObtaining ConsumingConsuming DisposingDisposing
ConsumerConsumer
InfluencesInfluences
OrganizationalOrganizational
InfluencesInfluences
Consumer Behavior

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

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

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What Is Consumer Behavior?
Activities people undertake when
obtaining, consuming, and
disposing of products and
services
A field of study that focuses on
consumer activities
Scope goes beyond just why and
how people buy to include
consumption analysis

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Consumption Analysis
Why and how people use products
in addition to why and how they
buy

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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

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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 an exchange
depends on satisfaction with
consumption of product and the
exchange of money

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Why Study Consumer Behavior?
Consumer Behavior Determines the
Economic Health of a Nation
Consumer Behavior Determines the
Success of Marketing Programs
Consumer Behavior Determines the
Economic Health of Everyone
Consumer Behavior Helps
Formulate Public Policy

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Why Study Consumer Behavior?
Consumer Behavior Determines the
Success of Marketing Programs
Marketing can be used to
influence brand choice and
purchase, while Demarketing
can influence people to stop
harmful consumption
“The Customer is King”
Organization influenced by
consumer needs and wants

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14. COPYRIGHT © 2012 Cengage Learning Asia
Why Study Consumer Behavior?
Consumer Behavior Determines the
Success of Marketing Programs
Organizations that are Customer-
centric use a total marketing approach
to focus their resources on satisfying
customers
Marketing
Process of transforming or changing
an organization to have what people
will buy

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Why Study Consumer Behavior?
Consumer Behavior Determines the
Economic Health of Everyone
The individual’s decisions as a
consumer determine their economic
health by making more effective
consumption decisions while avoiding
deceptive practices harmful to them

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Why Study Consumer Behavior?
Consumer Behavior Determines the
Economic Health of Everyone
Public policy leaders and social
commentators study consumer
behavior to alleviate overconsumption
and underconsumption by educating
consumers about problems and
providing assistance

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Educating
Consumers
About
Crises

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Understanding consumers’ issues or
problems and developing methods to
reach and educate consumers
Educating Consumers About Health

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Understanding consumers’ issues or
problems and developing methods to
reach and educate consumers
Educating Consumers About Health

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Understanding
consumers’
needs to
formulate
public policy
and predicting
behavioral
changes that
follow
Helps Formulate Public Policy
Interestrates
Warning
labels
Economics
SocialWelfare Family
Planning
Government
Regulations
Government Protection
and Education
Protection from
Competitive Markets

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Evolution of ConsumerBehavior
Wholesaler Manufacturer Retailer Consumer
Manufacturing
Orientation
Consumer
Orientation
Selling
Orientation
Marketing
Orientation
Consumers’ Increasing Influence
U.S. 1750-1850 1850-WWII 1970-2000 2000+
Europe 1750-1850 1760-WWII 1970-2000 2000+

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Consumer Research:
Methods of Studying Consumer
Behavior

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Consumer Research Methods
Observation
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
Physiological methods: Techniques
borrowed from medicine, psychology and other
sciences including cameras to measure eye
movement, galvanic skin response, and MRI

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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 led by a
moderator skilled in persuading consumers to
thoroughly discuss a topic of interest

25. COPYRIGHT © 2012 Cengage Learning Asia
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 led by a
moderator skilled in persuading consumers to
thoroughly discuss a topic of interest
Longitudinal Studies: repeated measures of
activities over time to determine changes in
opinions, buying, and consumption behaviors

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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

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Consumer Research Methods
Experimentation
Attempts to understand cause-and-effect
relationships by carefully manipulating
independent variables to determine how
these changes affect dependent variables
- Laboratory experiment
- Field experiment
Independent variables might include number
of advertisements and package design
Dependent variables might include purchase
intent or behavior

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Understanding How Consumers
Use Products

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Consumer Research Methods
Consumption Research
Builds on the three primary research
methods to examine how people use
products and services rather than how
they buy them
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