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1 - 1
Chapter 1
Consumers Rule
By Michael R. Solomon
Consumer Behavior
Buying, Having, and Being
Sixth Edition
1 - 2
• What useful ways can marketers categorize
Gail as a consumer?
• How do others influence Gail’s purchase
decisions?
• What role did brand play in Gail’s surfing
habits?
• What other factors influence Gail’s evaluation
of products?
Opening Vignette: Gail
1 - 3
What is Consumer Behavior?
• Consumer Behavior:
– The study of the processes involved when individuals or
groups select, purchase, use, or dispose of products,
services ideas, or experiences to satisfy needs and desires
• Role Theory:
– Identifies consumers as actors on the marketplace stage
• Consumer Behavior is a Process:
– Exchange: A transaction in which two or more
organizations give and receive something of value
1 - 4
Some Issues That Arise During Stages in
the Consumption Process
Figure 1.1
1 - 5
Consumer Behavior Involves
Many Different Actors
• Consumer:
– A person who identifies a need or desire, makes a
purchase, and then disposes of the product
• Many people may be involved in this sequence of
events.
– Purchaser / User / Influencer
• Consumers may take the form of organizations
or groups.
1 - 6
Consumers’ Impact on
Marketing Strategy
• Market Segmentation:
– Identifies groups of consumers who are similar to
one another in one or more ways and then devises
marketing strategies that appeal to one or more
groups
• Demographics:
– Statistics that measure observable aspects of a
population
• Ex.: Age, Gender, Family Structure, Social Class
and Income, Race and Ethnicity, Lifestyle, and
Geography
1 - 7
A Lesson Learned
• Nike was forced to pull
this advertisement for a
running shoe after
disabilities rights groups
claimed the ads were
offensive.
• How could Nike have
done a better job of
getting its message
across without offending
a powerful demographic?
1 - 8
Market Segmentation
Finely-tuned marketing
segmentation strategies
allow marketers to
reach only those
consumers likely to be
interested in buying
their products.
1 - 9
Consumers’ Impact on
Marketing Strategy (cont.)
• Relationship Marketing: Building
Bonds with Consumers
– Relationship marketing:
• The strategic perspective that stresses the long-term,
human side of buyer-seller interactions
– Database marketing:
• Tracking consumers’ buying habits very closely, and
then crafting products and messages tailored
precisely to people’s wants and needs based on this
information
1 - 10
Marketing’s Impact on Consumers
• Marketing and Culture:
– Popular Culture:
• Music, movies, sports, books, celebrities, and other
forms of entertainment consumed by the mass
market.
– Marketers play a significant role in our view of the
world and how we live in it.
1 - 11
Popular Culture
Companies often create product icons to develop an
identity for their products. Many made-up creatures and
personalities, such as Mr. Clean, the Michelin tire man and
the Pillsbury Doughboy, are widely recognized figures in
popular culture.
1 - 12
Marketing’s Impact on Consumers: The
Meaning of Consumption
• The Meaning of Consumption:
– People often buy products not for what they do,
but for what they mean.
– Types of relationships a person may have with a
product:
• Self-concept attachment
• Nostalgic attachment
• Interdependence
• Love
1 - 13
Marketing’s Impact on Consumers: The
Meaning of Consumption (cont.)
• Consumption includes intangible
experiences, ideas and services in
addition to tangible objects.
• Four types of Consumption Activities:
– Consuming as experience
– Consuming as integration
– Consuming as classification
– Consuming as play
1 - 14
Marketing’s Impact on Consumers: The
Global Consumer
• By 2006, the majority of people on earth
will live in urban centers.
• Sophisticated marketing strategies
contribute to a global consumer culture.
• Even smaller companies look to expand
overseas.
• Globalization has resulted in varied
perceptions of the United States (both
positive and negative).
1 - 15
The Global Consumer
American products like Levi jeans are in
demand around the world.
1 - 16
Marketing’s Impact on Consumers:
Virtual Consumption
• The Digital Revolution is one of the most
significant influences on consumer behavior.
• Electronic marketing increases convenience
by breaking down the barriers of time and
location.
• U-commerce:
– The use of ubiquitous networks that will slowly but surely
become part of us (i.e., wearable computers, customized
advertisements beamed to cell phones, etc.)
• Cyberspace has created a revolution in C2C
(consumer-to-consumer) activity.
1 - 17
Blurred Boundaries
Marketing and Reality
• Marketers and consumers coexist in a
complicated two-way relationship.
• It’s increasingly difficult for consumers to
discern the boundary between the
fabricated world and reality.
• Marketing influences both popular culture
and consumer perceptions of reality.
1 - 18
Blurred Boundaries
Marketing managers
often borrow imagery
from other forms of
popular culture to
connect with an
audience. This line of
syrups adapts the “look”
of a pulp detective
novel.
1 - 19
Marketing Ethics and Public Policy
• Business Ethics:
– Rules of conduct that guide actions in the
marketplace
– The standards against which most people in the
culture judge what is right and what is wrong, good
or bad
• Notions of right and wrong differ among
people, organizations, and cultures.
1 - 20
Needs and Wants:
Do Marketers Manipulate Consumers?
• Consumerspace
• Do marketers create artificial needs?
– Need: A basic biological motive
– Want: One way that society has taught us that need can be
satisfied
• Are advertising and marketing necessary?
– Economics of information perspective: Advertising is an
important source of consumer information.
• Do marketers promise miracles?
– Advertisers simply don’t know enough to manipulate
people.
1 - 21
• This ad was created
by the American
Association of
Advertising Agencies
to counter charges
that ads create
artificial needs.
• Do you agree with the
premise of the ad?
Why or why not?
Discussion Question
1 - 22
Public Policy and Consumerism
• Consumer efforts in the U.S. have contributed
to the establishment of federal agencies to
oversee consumer-related activities.
– Department of Agriculture
– Federal Trade Commission
– Food and Drug Administration
– Securities and Exchange Commission
– Environmental Protection Agency
• Culture Jamming:
– A strategy to disrupt efforts by the corporate world to
dominate our cultural landscape
1 - 23
The Consumer Product Safety Commission
1 - 24
Culture Jamming
• Adbusters Quarterly
is a Canadian
magazine devoted to
culture jamming. This
mock ad skewers
Benetton.
1 - 25
Consumerism and
Consumer Research
• Kennedy’s “Declaration of Consumer Rights”
(1962)
• Green Marketing:
– When a firm chooses to protect or enhance the natural
environment as it goes about its activities
• Reducing wasteful packaging
• Donations to charity
• Social Marketing:
– Using marketing techniques to encourage positive activities
(e.g. literacy) and to discourage negative activities (e.g.
drunk driving)
1 - 26
Consumer Related Issues
• UNICEF sponsored this advertising campaign against child labor.
The field of consumer behavior plays a role in addressing important
consumer issues such as child exploitation.
1 - 27
The Dark Side of
Consumer Behavior
• Consumer Terrorism:
– An example: Susceptibility of the nation’s food
supply to bioterrorism
• Addictive Consumption:
– Consumer addiction:
• A physiological and/or psychological dependency on
products or services
• Compulsive Consumption:
– Repetitive shopping as an antidote to tension,
anxiety, depression, or boredom
1 - 28
The Dark Side of
Consumer Behavior (cont.)
• Consumed Consumers:
– People who are used or exploited, willingly or not, for
commercial gain in the marketplace
• Illegal Activities:
– Consumer Theft:
• Shrinkage: The industry term for inventory and cash
losses from shoplifting and employee theft
– Anticonsumption:
• Events in which products and services are
deliberately defaced or mutilated
1 - 29
Consumer Behavior
As a Field of Study
• Consumer behavior only recently a
formal field of study
• Interdisciplinary influences on the
study of consumer behavior
– Consumer behavior studied by researchers from
diverse backgrounds
– Consumer phenomena can be studied in different
ways and on different levels
1 - 30
Journal of Consumer Research
1 - 31
The Pyramid of Consumer Behavior
Figure 1.2
1 - 32
Consumer Behavior Disciplines
• The Issue of Strategic Focus
– Should CB have a strategic focus or be studied as a
pure social science?
• The Issue of Two Perspectives on
Consumer Research
– Positivism (modernism):
• Paradigm that emphasizes the supremacy of human
reason and the objective search for truth through
science
– Interpretivism (postmodernism):
• Paradigm that emphasizes the importance of
symbolic, subjective experience and meaning is in
the mind of the person
1 - 33
Positivist vs. Interpretivist Approaches to CB
1 - 34
Taking it From Here:
The Plan of the Book
• Section I – Consumer Behavior
• Section II – Consumers as Individuals
• Section III – Consumers as Decision Makers
• Section IV – Consumers and Subcultures
• Section V – Consumers and Culture
1 - 35
The Wheel of Consumer Behavior
Figure 1.3

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Solomon

  • 1. 1 - 1 Chapter 1 Consumers Rule By Michael R. Solomon Consumer Behavior Buying, Having, and Being Sixth Edition
  • 2. 1 - 2 • What useful ways can marketers categorize Gail as a consumer? • How do others influence Gail’s purchase decisions? • What role did brand play in Gail’s surfing habits? • What other factors influence Gail’s evaluation of products? Opening Vignette: Gail
  • 3. 1 - 3 What is Consumer Behavior? • Consumer Behavior: – The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services ideas, or experiences to satisfy needs and desires • Role Theory: – Identifies consumers as actors on the marketplace stage • Consumer Behavior is a Process: – Exchange: A transaction in which two or more organizations give and receive something of value
  • 4. 1 - 4 Some Issues That Arise During Stages in the Consumption Process Figure 1.1
  • 5. 1 - 5 Consumer Behavior Involves Many Different Actors • Consumer: – A person who identifies a need or desire, makes a purchase, and then disposes of the product • Many people may be involved in this sequence of events. – Purchaser / User / Influencer • Consumers may take the form of organizations or groups.
  • 6. 1 - 6 Consumers’ Impact on Marketing Strategy • Market Segmentation: – Identifies groups of consumers who are similar to one another in one or more ways and then devises marketing strategies that appeal to one or more groups • Demographics: – Statistics that measure observable aspects of a population • Ex.: Age, Gender, Family Structure, Social Class and Income, Race and Ethnicity, Lifestyle, and Geography
  • 7. 1 - 7 A Lesson Learned • Nike was forced to pull this advertisement for a running shoe after disabilities rights groups claimed the ads were offensive. • How could Nike have done a better job of getting its message across without offending a powerful demographic?
  • 8. 1 - 8 Market Segmentation Finely-tuned marketing segmentation strategies allow marketers to reach only those consumers likely to be interested in buying their products.
  • 9. 1 - 9 Consumers’ Impact on Marketing Strategy (cont.) • Relationship Marketing: Building Bonds with Consumers – Relationship marketing: • The strategic perspective that stresses the long-term, human side of buyer-seller interactions – Database marketing: • Tracking consumers’ buying habits very closely, and then crafting products and messages tailored precisely to people’s wants and needs based on this information
  • 10. 1 - 10 Marketing’s Impact on Consumers • Marketing and Culture: – Popular Culture: • Music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market. – Marketers play a significant role in our view of the world and how we live in it.
  • 11. 1 - 11 Popular Culture Companies often create product icons to develop an identity for their products. Many made-up creatures and personalities, such as Mr. Clean, the Michelin tire man and the Pillsbury Doughboy, are widely recognized figures in popular culture.
  • 12. 1 - 12 Marketing’s Impact on Consumers: The Meaning of Consumption • The Meaning of Consumption: – People often buy products not for what they do, but for what they mean. – Types of relationships a person may have with a product: • Self-concept attachment • Nostalgic attachment • Interdependence • Love
  • 13. 1 - 13 Marketing’s Impact on Consumers: The Meaning of Consumption (cont.) • Consumption includes intangible experiences, ideas and services in addition to tangible objects. • Four types of Consumption Activities: – Consuming as experience – Consuming as integration – Consuming as classification – Consuming as play
  • 14. 1 - 14 Marketing’s Impact on Consumers: The Global Consumer • By 2006, the majority of people on earth will live in urban centers. • Sophisticated marketing strategies contribute to a global consumer culture. • Even smaller companies look to expand overseas. • Globalization has resulted in varied perceptions of the United States (both positive and negative).
  • 15. 1 - 15 The Global Consumer American products like Levi jeans are in demand around the world.
  • 16. 1 - 16 Marketing’s Impact on Consumers: Virtual Consumption • The Digital Revolution is one of the most significant influences on consumer behavior. • Electronic marketing increases convenience by breaking down the barriers of time and location. • U-commerce: – The use of ubiquitous networks that will slowly but surely become part of us (i.e., wearable computers, customized advertisements beamed to cell phones, etc.) • Cyberspace has created a revolution in C2C (consumer-to-consumer) activity.
  • 17. 1 - 17 Blurred Boundaries Marketing and Reality • Marketers and consumers coexist in a complicated two-way relationship. • It’s increasingly difficult for consumers to discern the boundary between the fabricated world and reality. • Marketing influences both popular culture and consumer perceptions of reality.
  • 18. 1 - 18 Blurred Boundaries Marketing managers often borrow imagery from other forms of popular culture to connect with an audience. This line of syrups adapts the “look” of a pulp detective novel.
  • 19. 1 - 19 Marketing Ethics and Public Policy • Business Ethics: – Rules of conduct that guide actions in the marketplace – The standards against which most people in the culture judge what is right and what is wrong, good or bad • Notions of right and wrong differ among people, organizations, and cultures.
  • 20. 1 - 20 Needs and Wants: Do Marketers Manipulate Consumers? • Consumerspace • Do marketers create artificial needs? – Need: A basic biological motive – Want: One way that society has taught us that need can be satisfied • Are advertising and marketing necessary? – Economics of information perspective: Advertising is an important source of consumer information. • Do marketers promise miracles? – Advertisers simply don’t know enough to manipulate people.
  • 21. 1 - 21 • This ad was created by the American Association of Advertising Agencies to counter charges that ads create artificial needs. • Do you agree with the premise of the ad? Why or why not? Discussion Question
  • 22. 1 - 22 Public Policy and Consumerism • Consumer efforts in the U.S. have contributed to the establishment of federal agencies to oversee consumer-related activities. – Department of Agriculture – Federal Trade Commission – Food and Drug Administration – Securities and Exchange Commission – Environmental Protection Agency • Culture Jamming: – A strategy to disrupt efforts by the corporate world to dominate our cultural landscape
  • 23. 1 - 23 The Consumer Product Safety Commission
  • 24. 1 - 24 Culture Jamming • Adbusters Quarterly is a Canadian magazine devoted to culture jamming. This mock ad skewers Benetton.
  • 25. 1 - 25 Consumerism and Consumer Research • Kennedy’s “Declaration of Consumer Rights” (1962) • Green Marketing: – When a firm chooses to protect or enhance the natural environment as it goes about its activities • Reducing wasteful packaging • Donations to charity • Social Marketing: – Using marketing techniques to encourage positive activities (e.g. literacy) and to discourage negative activities (e.g. drunk driving)
  • 26. 1 - 26 Consumer Related Issues • UNICEF sponsored this advertising campaign against child labor. The field of consumer behavior plays a role in addressing important consumer issues such as child exploitation.
  • 27. 1 - 27 The Dark Side of Consumer Behavior • Consumer Terrorism: – An example: Susceptibility of the nation’s food supply to bioterrorism • Addictive Consumption: – Consumer addiction: • A physiological and/or psychological dependency on products or services • Compulsive Consumption: – Repetitive shopping as an antidote to tension, anxiety, depression, or boredom
  • 28. 1 - 28 The Dark Side of Consumer Behavior (cont.) • Consumed Consumers: – People who are used or exploited, willingly or not, for commercial gain in the marketplace • Illegal Activities: – Consumer Theft: • Shrinkage: The industry term for inventory and cash losses from shoplifting and employee theft – Anticonsumption: • Events in which products and services are deliberately defaced or mutilated
  • 29. 1 - 29 Consumer Behavior As a Field of Study • Consumer behavior only recently a formal field of study • Interdisciplinary influences on the study of consumer behavior – Consumer behavior studied by researchers from diverse backgrounds – Consumer phenomena can be studied in different ways and on different levels
  • 30. 1 - 30 Journal of Consumer Research
  • 31. 1 - 31 The Pyramid of Consumer Behavior Figure 1.2
  • 32. 1 - 32 Consumer Behavior Disciplines • The Issue of Strategic Focus – Should CB have a strategic focus or be studied as a pure social science? • The Issue of Two Perspectives on Consumer Research – Positivism (modernism): • Paradigm that emphasizes the supremacy of human reason and the objective search for truth through science – Interpretivism (postmodernism): • Paradigm that emphasizes the importance of symbolic, subjective experience and meaning is in the mind of the person
  • 33. 1 - 33 Positivist vs. Interpretivist Approaches to CB
  • 34. 1 - 34 Taking it From Here: The Plan of the Book • Section I – Consumer Behavior • Section II – Consumers as Individuals • Section III – Consumers as Decision Makers • Section IV – Consumers and Subcultures • Section V – Consumers and Culture
  • 35. 1 - 35 The Wheel of Consumer Behavior Figure 1.3