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Chapter 1
Consumers Rule
CONSUMER
BEHAVIOR, 9eMichael R. Solomon
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Chapter Objectives
When you finish this chapter, you shouldunderstand 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.
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Chapter Objectives (continued)
Consumer behavior relates to other issues inour lives.
Consumer activities can be harmful to
individuals and to society. Many different types of specialists study
consumer behavior.
There are two major perspectives that seekto understand and study consumer behavior.
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Aspects of Consumer Behavior
Segmented by marketers bydemographics
Influenced by peer groups
Exposed to competingbrands seeking her loyalty
Evaluates products by the
appearance, taste, texture,smell
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What is Consumer Behavior?
Consumer behavior:the study of the
processes involvedwhen individuals or
groups select,purchase, use, or
dispose of products,
services, ideas, orexperiences tosatisfy needs and
desires.
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Figure 1.1Stages in the Consumption Process
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Actors in Consumer Behavior
A consumer is a personwho identifies a need ordesire, makes apurchase, and then
disposes of the product.
Purchaser versus userversus influencer
Organization/group asconsumer
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Consumers Impact on Marketing
Understanding consumer behavior is goodbusiness
Understanding people/organizations to
satisfy consumers needs Knowledge and data about customers:
Help to define the market
Identify threats/opportunities to a brand
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Segmenting Consumers: Demographics
Demographics:statistics that measureobservable aspects of apopulation, such as
Age
Gender
Family structure
Social class/income
Race/ethnicity
Geography
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Redneck Bank Targets by Social Class
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Discussion
What are some products or services that arewidely used by your social group?
Do these products or services help you form
bonds with your group? If yes, giveexamples.
Are there any product or services you wouldavoid because of the social group you belong
to?
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Segmenting Consumers: Lifestyles
Psychographics
The way we feelabout ourselves
The things wevalue
The things we do
in our spare time
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Tapping into Consumer Lifestyles
Relationship marketing: interact withcustomers regularly; give them reasons tomaintain a bond with the company
Database marketing: tracking specificconsumers buying habits and craftingproducts and messages tailored preciselyto peoples wants
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Popular Culture
Music
Movies
Sports
Books
Celebrities
Entertainment
Marketers influencepreferences for movieand music heroes,
fashions, food, anddecorating choices.
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Consumer-Generated Content
When everydaypeople voice theiropinions aboutproducts, brands,
and companies onblogs, podcasts,and socialnetworking sitessuch as Facebook
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The Meaning of Consumption
People often buy products not for what theydo, but for what they mean
Consumers can develop relationships with
brands:
Self-Concept Attachment Nostalgic Attachment
Interdependence Love
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The Global Consumer
The global consumerculture is one that unitespeople with a commondevotion to
Brand name consumergoods
Movie stars
Celebrities
Leisure activities
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Virtual Brand Communities
C2C e-commerce in addition to B2B andB2C
Wired Americans spend
Less time with friends/family
Less time shopping in stores
More time working at home after hours
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Marketing Ethics and Public Policy
Business ethics: rules of conduct that guideactions in the marketplace
Cultural differences in ethics:
Codes of ethics less formal in Mexico
U.S. Foreign Corrupt Practices Actprohibits use of bribery by U.S.businesspeopleno matter where theyre
doing business
Bribery commonly practiced in othercountries
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Sample of Federal Legislation Intended toEnhance Consumers Welfare
Year Act
1951 Fur Product Labeling Act
1953 Flammable Fabrics Act
1958 National Traffic and SafetyAct
1958 Automobile InformationDisclosure Act
1966 Fair Packaging and Labeling
Act
1966 Child Protection Act
1967 Federal Cigarette Labelingand Advertising Act
Year Act
1968 Truth-in-Lending Act
1969 National EnvironmentalPolicy Act
1972 Consumer Products SafetyAct
1975 Consumer Goods Pricing Act
1975 Magnuson-Moss Warranty-
Improvement Act
1990 Nutrition Labeling andEducation Act
1998 Internet Tax Freedom Act
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Do Marketers Create Artificial Needs?
Need: a basic
biological motive
Want: one way that
society has taught usthat the need can besatisfied
Objective of marketing: create awareness thatneeds exist, not to create needs
versus
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Are Advertising & Marketing Necessary?
Does advertising foster materialism?
Products are designed to meet existingneeds;
Advertising only helps to communicate theiravailability
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Do Marketers Promise Miracles?
Advertisers simplydo not knowenough about
people tomanipulate them
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Discussion
Advertisers are often blamed for promoting amaterialistic society by making theirproducts as desirable as possible.
Do you agree with this? If yes, is materialism a bad thing?
If no, what are your reasons?
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Public Policy & Consumerism
Concern for the welfare of consumers
Department of Agriculture Federal Trade Commission
Food and DrugAdministration
Securities and ExchangeCommission
Environmental ProtectionAgency
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Consumer Activism
Culture jamming is a strategy to disruptefforts by the corporate world to dominateour cultural landscape.
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Consumerism & Consumer Research
JFKs Declaration ofConsumer Rights
(1962)
The right to safety
The right to beinformed
The right to redress
The right to choice
Social Marketing
Green Marketing
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The Consumer Dark Side
Consumerterrorism
Addictiveconsumption
Compulsiveconsumption Consumed
consumers
Illegal activities
I di i li R h I i
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Interdisciplinary Research Issues inConsumer Behavior
Disciplinary Focus Product RoleExperimentalPsychology
Perception, learning, and memory processes
Clinical Psychology Psychological adjustment
Microeconomics/HumanEcology
Allocation of individual or family resources
Social Psychology Behavior of individuals as members of social groups
Sociology Social institutions and group relationships
Macroeconomics Consumers relations with the marketplace
Semiotics/LiteraryCriticism
Verbal and visual communication of meaning
Demography Measurable characteristics of a population
History Societal changes over time
Cultural Anthropology Societys beliefs and practices
Fi 1 2 Di i li i
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Experimental PsychClinical Psychology
Developmental PsychHuman EcologyMicroeconomics
Social Psychology
SociologyMacroeconomics
Semiotics/Literary CriticismDemography
HistoryCultural Anthropology
Figure 1.2 Disciplines inConsumer Research
MICRO CONSUMER BEHAVIOR(INDIVIDUAL FOCUS)
MACRO CONSUMERBEHAVIOR
(SOCIAL FOCUS)
Consumer behaviorinvolves many different
disciplines
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Figure 1.3 Wheel of Consumer Behavior
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Chapter Summary
Consumer behavior is a process. Consumer use products and brands to define
their identity to others.
Consumers from different segments havedifferent needs and wants.
Consumer activities can be harmful.
Consumer behavior benefits from severalfields.
There are two major perspectives guiding ourstudy of consumer behavior.