CHAPTER 1
CONSUMER BEHAVIOR AND CONSUMER RESOURCES
CHAPTER OUTLINE
I. What is Consumer Behavior?
A. Consumer
behavior is defined as activities people undertake when obtaining consuming,
and disposing of products and services.
1.
Obtaining is activities leading
up to and including the purchase or receipt of a product.
2.
Consuming is how, where, when,
and under what circumstances consumers use products.
3.
Disposing is how consumers get
rid of products and packaging.
B. Consumer behavior can be defined as a field of study focusing on
consume activities.
C. Consumption analysis focuses on why and how people consume as
well as how and why they buy.
D. The
marketing concept states that successful organizations must integrate consumer
behavior into every aspect of its marketing program.
E. Exchange occurs when the firm
offers something of value for which the consumer will pay the price that meets
the needs and objectives of the organization.
II. Why Study Consumer Behavior?
A. Consume behavior helps analyze consumer’s increasing influence.
1.
Consumers “vote” for products
with the money they spend in the marketplace.
2.
“The Consumer is King” so
please the king because it in pacts revenues.
3.
Consumers are sources of
influence on organizations
4.
Marketing is the process of
changing an organization to have what people will buy.
5.
The organization is influenced
by the needs and wants of the market.
B. “Only the customer can fire us all.” – Sam Walton
1.
The business thrust in recent
years has been on keeping customers.
2.
The strategy of the best
retailers has been to recruit and keep customers.
C. Consumer behavior educates and protects consumers
1.
Many people want to help
consumers buy more wisely.
2.
Society can be impacted by
understanding the problems of over consumption and under consumption.
D. Consumer behavior helps formulate public policy.
1.
Economics
2.
Social welfare
3.
Family planning
4.
Any other area of public policy
E. Consumer behavior affects personal policy.
1.
A person’s economic quality of
life is determined by personal policy.
2.
Shopping and spending patterns
can help consumers save money.
3.
Personal policy affects how
individuals define success.
4.
By understanding success in
consumer behavior terms, marketers can understand how to appeal to special
consumers.
III. Evolution of Consumer Behavior
A. Who determines what consumers can buy?
1. The retail supply chain
a. Wholesalers
b. Retailers
c. Consumers
d. Facilitating organizations
1.
advertising agencies
2.
research firms
3.
financial institutes
4.
transportation or logistic
firms
2. Historical shifts in the supply chain:
a. Traders connected European products to U.S. markets until the
Civil War
b.
Manufacturing emerged in the mid-1800’s and had power until the late 20th
century
c. Retailers took control of the supply chain after World War II
d. Power shifted to the consumer by the end of the 20th
century
e. The overdue
shift in business was from a manufacturer focus to a marketing focus
B. Manufacturing orientation
1.
The producer dictated what was
sold.
2.
Manufacturer’s primary concern
was how to make products.
C. From manufacturing to selling
1.
As manufacturing capacity
outran demand, the importance of how to sell products increased.
2.
The practical aspects of
psychology were applied to advertising.
3.
Repetitive advertising was
developed to build awareness and brand preference.
4.
The marketing era flourished
during the 1950’s, 1960’s, and 1970’s.
D. From selling to marketing
1. Shifting from sales to a
marketing organization required sophisticated tools to understand consumers and
their buying.
a. Motivation research to uncover hidden or unrecognized needs
b. Positivism attemps:
1.
To understand and predict
consumer behavior
2.
To discover cause-effect
relationships that govern persuasion and education
c.
Postmodernism uses qualitative and other research methods to understand consumer
behavior.
Comprehensive consumer orientation
IV. How Do You Study Consumers?
A. Consumer
behavior is an applied science drawing from economics, psychology, sociology,
anthropology, statistics, and other disciplines. This information is applied to
product development, advertising, retailing, and all other areas of marketing
planning.
B. Methods of studying consumer behavior
1.Observation
a. In-home observation
b. Shadowing
2. Interviews and surveys
a. Surveys are
an efficient way to collect information from large samples by asking questions
and recording responses
b. Types of surveys include:
1.
Mall intercept
2.
Telephone surveys
3.
Mail questionnaires
4.
Internet surveys
3. Focus
groups are used to gather in-depth information on how consumers prepare to buy,
purchase, and use products.
4.
Longitudinal studies use repeated measures of consumer activities over time to
determine change in buying and consumption.
5.
Experimentation attempts to understand cause-and effect relationships by
manipulating independent variables to determine their change on dependent
variables.
6. Consumption research tries to identify how people use products.
7. Ethnographic research studies people in their normal
environments.
V. The Underlying Principles of Consumer
Behavior
A. The consumer is sovereign
B. The consumer is global
C. Consumers are different; consumers are alike
D. The consumer has rights
E. Everyone needs to understand consumers
VI. Challenges to the Future
A. Gathering
and interpreting correctly the information that organizations need to meet the
sophisticated needs of organizations in the 21st century
B. Developing effective consumer
research methods to keep abreast of the rapid changes in consumer trends and
lifestyles
C. Understanding consumer behavior
from a broader perspective as an important part of life in its own right
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