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Chapter 1
Consumers Rule
CONSUMER
BEHAVIOR, 8eMichael Solomon
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Chapter Objectives
When you finish this chapter you should understandwhy:
Consumer behavior is a process.
Consumers use products to help them define theiridentities in different settings.
Marketers need to understand the wants and needsof different consumer segments.
The Web is changing consumer behavior.
Consumer behavior relates to other issues in ourlives.
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Chapter Objectives (cont.)
Consumer activities can be harmful to individualsand to society.
Many different types of specialists study consumerbehavior.
There are two major perspectives that seek tounderstand and study consumer behavior.
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Aspects of Consumer Behavior
Gail, business student and consumer
Segmented by marketers bydemographics
Market segmentation: targeting a
brand to specific groups ofconsumers
Influenced by peer groups (such assorority sisters)
Exposed to competing brands 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
involved when
individuals or groups
select, purchase, use,or dispose of products,
services, ideas, or
experiences to satisfy
needs and desires.
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Actors in Consumer Behavior
Consumer: a person who
identifies a need or
desire, makes a
purchase, 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 good business
Understanding people/organizations to satisfyconsumers 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 measure observable
aspects of a population,
such as:
Age
Gender
Family structure
Social class and income Race and ethnicity
Geography
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Discussion
What are some products or services that are widely
used by your social group?
Do these products or services help you form bondswith your group? If yes, give examples.
Are there any product or services you would avoidbecause of the social group you belong to?
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Segmenting Consumers: Lifestyles
Psychographics
The way we feelabout ourselves
The things we value
The things we do inour spare time
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Tapping into Consumer Lifestyles
Relationship marketing: interact with customersregularly; give them reasons to maintain a bond
with the company
Database marketing: tracking specific consumersbuying habits and crafting products and messagestailored precisely to peoples wants
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The Meaning of Consumption
People often buy products not for what theyPeople often buy products not for what they dodo, but, butfor what theyfor what they meanmean
Consumers can develop relationships with brands:
Self-Attachment Concept
(user identity)
Nostalgic Attachment
(link past self)
Interdependence
(daily routine)
Love
(emotional bonds)
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The Global Consumer
Global Consumer Culture
People united by commondevotion to:
Brand name consumergoods
Movie stars Celebrities Leisure activities
Ubiquitous networks (u-commerce)
RFID tags
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The Global Consumer
American products like Levi jeans are in
demand around the world.
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Virtual Consumption
Impact of the Web onconsumer behavior
24/7 shopping
without leaving home Instantaneous access
to news
Handheld devices &
wirelesscommunications Click photo for Amazon.com
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Virtual Consumption (cont.)
C2C e-commerce
Virtual brand communities
Consumer chat rooms
Wired Americans spend Less time with friends/family
Less time shopping in stores
More time working at home after hours
But, e-mail can strengthen family ties
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Marketing and Reality
Blurred boundaries between marketing efforts and
the real world
One Monopoly game brands its playing pieces
Vermont ski resort has Altoids gondolas San Francisco hotel has a Haagen-Dazs sweet
suite, another has a pole-bear inside their Coca-
Cola suite!
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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 Act prohibits useof bribery by U.S. businesspeopleno matter
where theyre doing business
Bribery commonly practiced in other countries
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Do Marketers Create Artificial Needs?
Need: a basicbiological motive
Want: one way thatsociety has taught us
that the need can be
satisfied
Objective of marketing:
create awareness that
needs exist, not to create
needs
versus
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Are Advertising & Marketing Necessary?
Does advertising foster materialism?
Products are designed to meet existing needs;
Advertising only helps to communicate their
availability
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Do Marketers Promise Miracles?
Does advertising
promise magical
products?
Advertisers simply donot know enough
about people to
manipulate them
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Consumer Activism
American Legacy FoundationsThe Truth
Alerts everyone to the liesand hidden practices of thecigarette companies
Save the Redwoods/Boycott theGAP
The Organic ConsumersAssociation (OCA)
Click for Adbusters.org
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Discussion
Advertisers are often blamed for promoting a
materialistic society by making their products 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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Interdisciplinary Research Issues in
Consumer Behavior
Disciplinary Focus Product Role
Experimental
Psychology
Perception, learning, and memory processes
Clinical Psychology Psychological adjustment
Microeconomics/Human
Ecology
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/Literary
Criticism
Verbal and visual communication of meaning
Demography Measurable characteristics of a population
History Societal changes over time
Cultural Anthropology Societys beliefs and practices
Table 1.2 (abridged)
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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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Consumer Related Issues
UNICEF sponsored this advertising campaign against child labor.The field of consumer behavior plays a role in addressing importantconsumer issues such as child exploitation.
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The Consumer Dark Side
Consumer
terrorismAddictive
consumption
Compulsive
consumptionConsumed
consumers
Illegal activities
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Sample of Federal Legislation Intended to
Enhance Consumers Welfare
Year Act
1951 Fur Product Labeling Act
1953 Flammable Fabrics Act
1958 National Traffic and SafetyAct
1958 Automobile Information
Disclosure Act
1966 Fair Packaging and Labeling
Act
1966 Child Protection Act
1967 Federal Cigarette Labeling
and Advertising Act
Table 1.1 (abridged)
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
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Experimental Psych
Clinical Psychology
Develop Psychology
Human Ecology
Microeconomics
Social PsychologySociology
Macroeconomics
Semiotics/Literary Criticism
Demography
History
Cultural Anthropology
Pyramid of Consumer Behavior
MICRO CONSUMER BEHAVIOR(INDIVIDUAL FOCUS)
MACRO CONSUMER
BEHAVIOR
(SOCIAL FOCUS)
Figure 1.2
Consumer behavior
involves many differentdisciplines
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Positivist versus Interpretivist Approaches
Assumptions Positivist Approach Interpretivist Approach
Nature of
reality
Objective, tangible
Single
Socially constructed
Multiple
Goal Prediction Understanding
Knowledge
generated
Time free
Context-independent
Time-bound
Contest dependent
View of
causality
Existence of real causes Multiple, simultaneous
shaping events
Research
relationship
Separation between
researcher and subject
Interactive, cooperative
with researcher being
part of phenomenon
under study
Table 1.3
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