1

Introduction to
Consumer Behavior

By
Dr. Kevin Lance Jones
2
Intro to Consumer Behavior
Consumer behavior--
what is it?
Applications
Consumer Behavior
and Strategy
Elements of strategy
Consumer Analysis
Consumer behavior
outcomes

3
One Definition
Consumer behavior: the study
of individuals, groups, or
organizations and the processes
they use to select, secure, use,
and dispose of products, services,
experiences, or ideas to satisfy
needs and the impacts that these
processes have on the consumer
and society.
4
Applications of Consumer
Behavior
Marketing Strategy
Regulatory (Public)
Policy
Social Marketing
Personal Consumer
Skills
5
Orientations in the Study of
Consumer Behavior
Anthropology
Economics
History and
geography
Psychology
Sociology
6
Anthropology
The study of people
within and across
cultures
Emphasis on cross-
cultural differences
Questioning of
assumptions within own
culture
7
Economics
Basic economic issues
Supply and demand
Rational decision making
Perfect information
Emphasis on predicting
behavior
Complications in real life
Behavioral economics
e.g., mental accounting
8
History and Geography
Origins of behavior,
perspectives, and
traditions
Impact of geography on
individuals
Isolation
Language development
Climate
Geographic determinism
9
Psychology
Study of human thinking
and behavior
Some issues
Personality
Personal development
Cognition (thinking),
perception
Attention and its limitations
Learninge.g., acquired
tastes
10
Sociology
Cultural and
interpersonal
influences on
consumptione.g.,
Fads, fashions
Diffusion of
innovation
Popular culture

11
Marketing Strategy and
Consumer Behavior
MARKET
ANALYSIS
MARKETING
STRATEGY
MARKET
SEGMENTATION
CONSUMER
DECISION
PROCESSES
OUTCOMES
12
Market Analysis Components
Consumers
Firms
Competitors
Conditions
(environment)
13
Market Segmentation
Product-related
need sets
Segments:
customers with
similar needs and
responses
Segment description
Segment selection
14
Elements in Marketing Strategy
Product
Communications
Price
Distribution
Service
15
Outcomes
Firm
Product
position/perception
Sales
Customer
satisfaction
Individual
Need satisfaction
Injurious
consumption
Society
Economic
Physical
environment
Social welfare

16
The Nature of
Consumer Behavior
External
Influences
Internal Influences
Self-Concept
Situations
Experiences and
acquisitions

17
Why We Buy: Some Issues
Questions academics answer relatively well:
Whether, how, why?
Questions academics answer less well:
How much?
Which effect is stronger?
What if?


18
Why We Buy Issues
Conversion and interception rates
The Transition Zone
Thinking like a consumer who is in the
shopping setting!
A note on exam questions from the text: You
need to have read the book to be able to
answer! (The answers are not obvious.)