1. Definition of Consumer
Behavior
 Individuals or groups acquiring, using
and disposing of products, services,
ideas, or experiences
 Includes search for information and
actual purchase
 Includes an understanding of consumer
thoughts, feelings, and actions

2. Acquisition, Consumption and
Disposal
 Acquisition
 Receiving
 Finding
 Inheriting
 Producing
 purchasing
 Consumption
 Collecting
 Nurturing
 Cleaning
 Preparing
 Displaying
 Storing
 Wearing
 Sharing

3. Acquisition, Consumption, Dis
posal
 Disposal
 Giving
 Throwing away
 Recycling
 depleting

4. Contributing Disciplines
 Anthropology
 Sociology
 Psychology
 Economics
 History
 Political Science

5. Reasons for Studying
Consumer Behavior
 To stay in business by attracting and
retaining customers
 To benefit from understanding
consumer problems
 To establish competitive advantage
 …because it is interesting!

6. The Circle of Consumption
 Production
 Acquisition
 Consumption
 Disposal

7. The Circle of
Consumption, continued
 Typically, attention of marketers has focused on
acquisition as the critical phase
 Only recently has more attention been given to
include the full circle and the links between its
elements
 Disposal to acquisition
 Disposal to production
 Disposal to consumption
 Production to consumption
 Acquisition to consumption
 Acquisition to disposal

8. Consumer Research
The systematic and objective process of
gathering, recording, and analyzing
data for aid in understanding and
predicting consumer
thoughts, feelings, and behaviors.
In a global environment, research has
become truly international.

9. Important Factors in
Consumer Research
 Speed
 The Internet
 Globalization
 Data Overload

10. Types of Consumer Research
 Basic Research
 To expand knowledge about consumers in
general
 Applied Research
 When a decision must be made about a
real-life problem

11. The Consumer Research
Process
 Defining the Problem and Project Scope
 The Research Approach
 The Research Design
 Data Collection
 Data Analysis and Interpretation
 Report

12. Marketing Management
Philosophies
 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Societal Marketing Concept
 Green Marketing
 Cause-Related Marketing
 De-Marketing

13. Production Concept
 Focus on Production
 View of consumers:
 They will buy as long as the product is available
and affordable.
 Model T: You can have any color as long as it’s
black.
 Focus on production justified:
 Demand higher than supply
 Non-competitive product cost

14. Product Concept
 Focus on the product
 View of consumers:
 We have to have the best quality and the most
features and they will buy.
 Consumers might not care about quality
 Consumers might not be willing to pay for the
best quality
 Consumers might not be able to discern
quality difference
 Consumers might prefer simplicity

15. Selling Concept
 Focus on selling
 View of consumers:
 We have to sell to them or else they won’t
buy.
 Focus on selling justified:
 Introductory stages of product life cycle
 Unsought goods

16. Marketing Concept
 Focus on marketing
 Creating mutually rewarding exchange
relationships
 Consumer needs and wants have priority
 View of consumers:
 They will buy if you fulfill their needs better
than the competition.

17. Societal Marketing Concept
 Same as Marketing Concept plus an
added concern for the well-being of
society

18. Market Research:
Research Designs
 Exploratory Research
 Descriptive Research
 Causal Research

19. Exploratory Research
 Literature Research
 Experience Survey
 Focus Groups
 In-Depth Interviews

20. Exploratory Research
 Insights and Ideas
 Precision: Specific Hypotheses
 Establishment of Priorities
 Increase of Familiarity with Problem
 Clarification of Concepts

21. Descriptive Research
 Description of Characteristics of a
Certain Group
 Estimation of the Proportion of People
in a Specified Population who Behave in
a Certain Way
 Specific Predictions

22. Descriptive Research
 Longitudinal Studies
 True Panel
 Omnibus Panel
 Cross-Sectional Analysis
 Field Study
 Sample Survey

23. True Panel: Advantages
 Brand Switching Analysis
 Collecting Classification Information
 Compensation for Participation/Time
 Accuracy
 Reduced Interaction Bias

24. True Panel: Disadvantages
 Non-Representativity
 Drop-out Rate
 Payment

25. Causal Research
 Laboratory Experiments
 Field Experiments
 Internal and External Validity

26. Market Segmentation Bases
 Demographic
 Geographic
 Geo-Demographic
 Benefit
 Usage
 Lifestyle

27. Market Segmentation:
Advantages
 Specific Definition of the Market
 Satisfaction of Consumer Needs
 Meeting Changing Market Demands
 Assessment of Competitive Strengths
and Weaknesses
 Efficient Allocation of Marketing
Resources
 Precise Setting of Marketing Objectives

28. Haley, 1968
Toothpaste Market
 Sensory Segment
 Worrier Segment
 Sociable Segment
 Independent Segment

29. Applications of Benefit
Segmentation
 Positioning
 Repositioning
 Competitive positioning
 New market opportunities/niches
 Positioning of multiple brands

30. Usage Segmentation
 Rate of Usage
 Brand Loyalty
 Usage Situation

31. Lifestyle Segmentation
Psychographics
 Activities
 Interests
 Opinions
 Demographics
 VALS I and II
 Maslow’s Hierarchy of Needs

32. Consumer Decision Making:
Types of Decisions
 Extensive Problem Solving
 Limited Problem Solving
 Routinized Response Behavior

33. Problem Recognition:
Causes in Current State
 Depletion of Stock
 Dissatisfaction
 Decrease in Finances
 Increase in Finances

34. Problem Recognition:
Causes in Desired State
 New Need Circumstances
 New Want Circumstances
 New Product Opportunities
 Purchase of Other Products

35. Information Search
and Evaluation
 Incidental Learning  Directed Search and
Evaluation
 Internal only
 loyalty
 impulse
 Internal and External

36. Purchasing Process
 When to buy?
 Where to buy?
 How to pay?
 How much to buy?

37. Post-purchase Behavior
 Cognitive Dissonance
 Satisfaction/Dissatisfaction

38. Motivation
 Definition
 Categories of Needs
 Arousal of Motives
 Motive Structuring
 Motive Conflict
 Motivation Theories

39. Motivation Theories
 Freud
 Lewin
 Maslow

40. Freudian Theory
 Basic Principles
 Homeostasis
 Hedonism
 The Structure of Personality
 Id
 Ego
 Super-ego

41. Projective Techniques
 Word Association
 Sentence Completion
 Cartoon Test
 Thematic Apperception Test (TAT)
 Rorschach Test (inkblots)

42. Lewin’s Field Theory
 Life Space
 Person
 Environment
 Formula
 Conflict
 Approach-Approach
 Avoidance-Avoidance
 Approach-Avoidance

43. Perception
 Definition
 Threshold Levels
 The Perceptual Process
 Selection
 Organization
 Interpretation

44. Selection
 Internal Factor
 Attitudes
 Expectations
 Motives
 Attention Span
 Perceptual Defense
 Perceptual Vigilance
 Adaptation
 Perceptual Blocking
 External Factors
 Color
 Contrast
 Size
 Position
 Intensity/Magnitude
 Movement
 Humor
 Fear

45. Organization
 Closure
 Figure and Ground

46. Interpretation
 Physical Appearance
 Stereotypes
 Irrelevant Cues
 First Impressions
 Jumping to Conclusions
 Halo Effect

47. Learning
 Definition
 Learning Theories
 Marketing Applications

48. Learning Theories
 Behavioral Learning Theories
 Classical Conditioning
 Instrumental Conditioning
 Cognitive Learning Theories
 Consumer Information Processing
 The Structure of the Memory
 Memory Processes

49. Marketing Applications
 Classical Conditioning
 Creating Associations
 Stimulus Generalization
 Family Branding
 Product Line Extensions
 Licensing
 Look Alike Packaging

50. Marketing Applications
 Instrumental Conditioning
 Rewards
 Reinforcement Schedules/Advertising
 Intermittent
 Continuous

51. Involvement
 High Involvement
Hierarchy of Effects
 Cognition
 Attitude
 Behavior
 Low Involvement
Hierarchy of Effects
 Cognition
 Behavior
 Attitude

52. Communication
 The Nature of Communication
 Communication Model
 Sender
 Message
 Receiver
 Psychological Noise

53. Sender
 Source Credibility
 Trustworthiness
 Expertise
 Status
 Other Dimensions
 The Sleeper Effect

54. The Sleeper Effect
 Consumer forget the source of the message
faster than the message itself.
 Over time, high-credibility sources lose power
to change attitudes.
 Over time, low-credibility sources gain power
to change attitudes.
 High-credibility sources need to reinstate
message.
 Low-credibility sources should not reinstate
message.

55. Message
 Size, Color, Position
 Order of Presentation
 Humor
 Agony Advertising
 Content
 Fear Appeals (moderate!)
 Audience Participation

56. Order of Presentation
 Climax order
 Anticlimax order
 Pyramidal order
 What works best, depends on consumer
involvement.

57. Receiver
 Selective Attention
 Selective Perception
 Selective Appeal

58. Cultural Dynamics
 Definition of Culture
 Cultural Sensitivity
 Culture and its Elements
 Material Culture
 Social Institutions
 Humans and the Universe
 Aesthetics
 Language

59. Culture Defined
 The sum total of
knowledge, beliefs, art, morals, laws, cu
stoms, and any other capabilities and
habits required by humans as members
of society.
 The distinctive way of life of a group of
people, their complete design for
living, a mosaic of human life.

60. Subculture
 Definition
 Types of Subcultures
 Selected Subcultures
 Acculturation
 the Learning of another Culture/Subculture

61. Types of Subcultures
 Nationality
 Religion
 Region
 Ethnicity
 Age
 Gender
 …and many more.

62. Stages of Acculturation
 Honeymoon
 Rejection
 Tolerance
 Integration

63. Social Groups
 Definition
 Types of Groups
 Group Properties

64. Types of Groups
 Primary and secondary
 Formal and informal
 Membership and symbolic
 In and out

65. Group Properties
 Status
 Roles
 Norms (Sanctions)
 Power
 Socialization

66. Power
 Reward
 Coercive
 Legitimate
 Referent
 Expert

67. Reference Groups
 Influence on product category choice
 Influence on brand choice
 Factors:
 Luxuries vs. necessities
 Publicly vs. privately consumed
 Visibility