Understanding Consumer Behavior: A Comprehensive Guide, Slides of Consumer Behaviour

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Chapter 1

Consumers Rule

Chapter Objectives

When you finish this chapter, you should understand why:

• Consumers use products to help them define their identities in different settings.
• Consumer behavior is a process.
• Marketers need to understand the wants and needs of different consumer segments.
• The Web is changing consumer behavior.

Aspects of Consumer Behavior

• Segmented by marketers by demographics
• Influenced by peer groups
• Exposed to competing brands seeking her loyalty
• Evaluates products by the appearance, taste, texture, smell

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.

Actors in Consumer Behavior

A consumer is a person who identifies a need or desire, makes a purchase, and then disposes of the product.

• Purchaser versus user versus influencer
• Organization/group as consumer

Consumers’ Impact on Marketing

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

Redneck Bank Targets by Social Class

Discussion

What are some products or services that are widely used by your social group?

• Do these products or services help you form bonds with your group? If yes, give examples.
• Are there any product or services you would avoid because of the social group you belong to?

Tapping into Consumer Lifestyles

• Relationship marketing: interact with customers regularly; give them reasons to maintain a bond with the company
• Database marketing: tracking specific consumers’ buying habits and crafting products and messages tailored precisely to people’s wants

Popular Culture

• Music
• Movies
• Sports
• Books
• Celebrities
• Entertainment Marketers influence preferences for movie and music heroes, fashions, food, and decorating choices.

The Meaning of Consumption

• People often buy products not for what they do, but for what they mean
• Consumers can develop relationships with brands: Self-Concept Attachment Nostalgic Attachment Interdependence Love

The Global Consumer

• The global consumer culture is one that unites people with a common devotion to - Brand name consumer goods - Movie stars - Celebrities - Leisure activities

Marketing Ethics and Public Policy

• Business ethics: rules of conduct that guide actions in the marketplace
• Cultural differences in ethics:
  • Codes of ethics less formal in Mexico
  • U.S. Foreign Corrupt Practices Act prohibits use of bribery by U.S. businesspeople—no matter where they’re doing business
  • Bribery commonly practiced in other countries

Sample of Federal Legislation Intended to

Enhance Consumers’ Welfare

Year Act 1951 Fur Product Labeling Act 1953 Flammable Fabrics Act 1958 National Traffic and Safety Act 1958 Automobile Information Disclosure Act 1966 Fair Packaging and Labeling Act 1966 Child Protection Act 1967 Federal Cigarette Labeling and Advertising Act Year Act 1968 Truth-in-Lending Act 1969 National Environmental Policy Act 1972 Consumer Products Safety Act 1975 Consumer Goods Pricing Act 1975 Magnuson-Moss Warranty- Improvement Act 1990 Nutrition Labeling and Education Act 1998 Internet Tax Freedom Act