Consumer Behavior

Buying, Having, and Being

Chapter 1
Consumers Rule
NADEEM IQBAL RAZA
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The Wheel of Consumer Behavior

Figure 1.3 1-2

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Marketing: profitable exchange relationship
Communication

Product/Service
Producer
Consumer
/Seller Money

Feedback

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 Customer Vs Producer
• Need
• Want
• Preference
• Demand
• Product
• Services
• Value

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 Exchanges
Learning Environment

Tuition

Promised Action

Votes

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 Pr
ts , od
uc
a n s Se and ts
, w nd rvi
e ds ma ce
Ne d de
s

an

Core
Core

satisfaction,
Marketing

and quality
Marketing

Value,
Concepts
Concepts
M
ar

Exchange,
ke

transactions,
ts

and relationships

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 Marketing
The process of developing and
maintaining profitable
customer relationship.

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Elements of Marketing Mix

Product Price

Target
Market

Place Promotion

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 Separations

Spatial
Perceptual Separation
Separation Values
Separation
Ownership Temporal
Separation Separation

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 Information Buying

Risk Taking Selling

Universal
Marketing
Marketing
Functions
Functions

Financing Transporting

Standardizing
and Grading
Storing
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Four Types of Utility

Utility
Utility

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 Separations/Functions/Utility
Separations Functions of Marketing Utility

Spatial Transporting Place

Storing

Temporal Storing Time

Transporting
Financing
Risk-Taking

Perceptual Selling Form, plus

Providing Information facilitates
all others

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 Separations/Functions/Utility
Separations Functions of Marketing Utility

Ownership Buying Ownership

Selling
Risk-Taking
Financing

Values Buying Ownership

Selling Form
Standardizing and Grading
Providing Information

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 People in Market Place

• Individual

• Group

• Culture
– Subculture

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 People in Market Place

• Consumer Evaluation
• Appearance
• Taste
• Texture
• Design
• Style
• Color
• Smell
• Symbolism

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 What is Consumer Behavior?
• Consumer Behavior:
– The study of the processes involved when individuals or
groups select, purchase, use, or dispose off products,
services ideas, or experiences to satisfy needs and desires
– Forms of Consumer
– Consumptions Items
– Needs and wants to be satisfied
• Role Theory:
– Identifies consumers as actors on the marketplace stage
– Role: the rights, obligation and expected behavioural
pattern associated with a particular social status

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• Consumer Behavior is a Process:
– Buyer Behaviour (Transactional Approach) Vs
Consumer Behaviour (Value Exchange)

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 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.
• User
• Payer
• Buyer
• Influencer
• Consumers may take the form of organizations or groups.

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 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

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 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

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 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.

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 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.
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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

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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

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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).

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 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.

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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.

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 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.

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 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

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 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

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 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

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Let’s
Stop
Here!
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