Consumers Rule

Chapter 1

Factors in Consumer Behavior

The story of Gail in the marketplace
Demographics Psychographics Opinions and behaviors of others

Market segmentation
Targeting a brand only to specific groups of consumers rather than to everybody

1-2

What is 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
1-3

Consumer Behavior is a Process

CONSUMERS PERSPECTIVE MARKETERS PERSPECTIVE

PREPURCHASE ISSUES

How does a consumer decide about needing a product? Is product acquisition a stressful or pleasant experience? Does product provide pleasure or perform function? How is product disposed of?
Figure 1.1 (Abridged)

How are consumer attitudes formed/changed? How do situational factors affect purchase decision? What determines customer satisfaction and repurchase?
1-4

PURCHASE ISSUES

POSTPURCHASE ISSUES

Actors in Consumer Behavior

Consumer: A person who identifies a need or desire, makes a purchase, and then disposes of the product
Purchaser vs. user vs. influencer Organization/group as consumer

1-5

Discussion
People play different roles and their consumption behaviors may differ, depending on the particular role they are playing. State whether you agree or disagree with this perspective, giving examples from your personal life.
Try to construct a stage set for a role you play specify the props, costumes, and script that you use to play a role (e.g., job interviewee, conscientious student, party animal)
1-6

Consumers Impact
Understanding consumer behavior is good business
Understanding people/organizations to satisfy consumers needs Knowledge and data about customers
Help to define the market Identify threats/opportunities to a brand

1-7

Segmenting Consumers
Market Segmentation
Similar consumers
Example: Heavy Users of fast-food industry

1-8

Segmenting Consumers: Demographics

Age Gender Family Structure & Marital Status Social Class & Income Race & Ethnicity Geography

1-9

Discussion
Name some products or services that are widely used by your social group.
State whether you agree or disagree with the notion that these products help to form group bonds, supporting your argument with examples from your list of products used by the group.

1-10

Segmenting Consumers: Lifestyles

Psychographics
The way we feel about ourselves The things we value The things we do in our spare time

1-11

Relationship Marketing
Success = building lifetime relationships between brands and customers
Regular interaction with customers Database Marketing

1-12

Marketings Impact on Consumers

Marketers significantly influence the world and the information we learn!
Advertisements, stores, and products communicate and persuade

TOYMUSEUM.COM

1-13

The Meaning of Consumption

People often buy products not for what they do, but for what they mean
Brands
Convey image/personality Define our place in modern society Help us to form bonds with others who share similar preferences

1-14

Brand Relationship Types

Self-Concept Attachment Nostalgic Attachment Interdependence Love

1-15

The Global Consumer

Global Consumer Culture
People united by common devotion to:
Brand name consumer goods Movie stars Celebrities Leisure activities

Pressure to understand similarities and differences of customers in various countries

1-16

Virtual Consumption
Impact of the Web on consumer behavior
24/7 shopping without leaving home Instantaneous access to news Handheld devices & wireless communications

C2C e-commerce
Virtual brand communities. Consumer chat rooms
AMAZON.COM

1-17

Virtual Consumption (Contd)

Wired Americans spend
Less time with friends/family Less time shopping in stores More time working at home after hours

But, many report that e-mail strengthens family ties

1-18

Marketing and Reality

Blurred boundaries between marketing efforts and the real world
Popular culture shaped by marketers

1-19

Marketing Ethics and Public Policy

Business Ethics: rules of conduct that guide actions in the marketplace
What is Right vs. Wrong
Differs among people, organizations, and cultures

1-20

Discussion
There is a computer game called JFK Reloaded that lets players reenact President Kennedys assassination.
Have the games developers gone too far, or is any historical event fair game to be adapted into an entertainment vehicle?
1-21

Marketing Ethics and Public Policy (contd)

Consumers think better of products made by firms they feel behave ethically
Marketing violators
Mislabeling package contents Bait-and-switch selling strategy Alcohol/tobacco billboards in low-income neighborhoods
RJRT.COM

1-22

Manipulating Needs & Wants

Marketers tell people what they should want
Marketerspace vs. Consumerspace Response: Marketers recommend ways to satisfy basic biological needs
1-23

Are Advertising & Marketing Necessary?

Marketers foster materialism
Response: Products are designed to meet existing needs
Economics of Information Perspective

Discussion: do marketers have the ability to control our desires or the power to create needs?
Is this situation changing as the Internet creates new ways to interact with companies? If so, how?
1-24

Do Marketers Promise Miracles?

Advertising promises magical products
Response: Advertisers simply do not know enough about people to manipulate them
Failure rate for new products = 40% to 80%

1-25

Public Policy & Consumerism

Concern for the welfare of consumers
Department of Agriculture Federal Trade Commission Food and Drug Administration Securities and Exchange Commission Environmental Protection Agency
CPSC.GOV

1-26

Consumer Activism
Adbusters: America = Corporate Brand
Buy Nothing Day & TV Turnoff Week

Culture Jamming
Disrupt corporate efforts in cultural landscape

1-27

Adbusters Blackspot sneakers in response to Nikes unfair labor practices

ADBUSTERS.ORG

1-28

Consumer Activism (contd)

Coordinated Consumer Protest Movements
The Truth Save the Redwoods/Boycott the GAP (SRBG) Pittsburgh Coalition Against Pornography (PCAP)
BEHINDTHELABEL.ORG

1-29

Consumerism & Consumer Research

JFKs Declaration of Consumer Rights (1962)
The right to safety The right to be informed The right to redress The right to choice

Social Marketing Green Marketing

1-30

The Consumer Dark Side

Consumer Terrorism Addictive Consumption Compulsive Consumption Consumed Consumers Illegal Activities

1-31

Study of Consumer Behavior

Interdisciplinary Influences
Many different perspectives/fields

Consumer Behavior Employers

Universities, manufacturers, museums, advertising agencies, and governments

1-32

Figure 1.2 (Abridged)

MICRO CONSUMER BEHAVIOR (INDIVIDUAL FOCUS) Exp Psych Clinic Psych Develop Psych Human Ecology Microeconomics Social Psych Sociology Macroeconomics Semiotics/Literary Criticism Demography History Cultural Anthropology
1-33

MACRO CONS BEHAV (SOCIAL FOCUS)

Strategic Focus
The field of consumer behavior
as an applied social science to understand consumption for its own sake

1-34

Perspectives on Consumer Research

Positivism
Function of objects/products Celebrate technology World as a rational, ordered place

Interpretivism
We each construct our own meanings Consumption of products = diverse experiences
1-35

Wheel of Consumer Behavior

Figure 1.3
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