i need help

What is Consumer Behavior, and Why Should I Care?

CHAPTER 1

PART 1

1  

Learning Outcomes

2  

Understand marketing ethics and consumer misbehaviour.

Understand the meaning of consumption and consumer behaviour.

Describe how consumers get treated differently in various types of exchange environments.

Explain the role of consumer behaviour in business and society. Be familiar with basic approaches to studying consumer behaviour.

Describe why consumer behaviour is so dynamic and how recent trends affect consumers.

Consumers make many daily decisions that offer themselves the most value and ultimately drive our economy. Consumer

Behavior is really all about value.

What happens when consumer confidence drops? What is the chain

reaction that follows?

Consuming versus Buying? (Housing Example) Consuming is an

ongoing and connected process. 3  

Relationship Breakdown

Understand marketing ethics and consumer mis-behaviour.

4  

Marketing Ethics and Consumer Misbehaviour

Manipulative marketing practices, deceptive advertising and corporate scandals upset the value equation associated with a given exchange. CMA Code of Ethics extend to Personal Information Practices, Truthfulness, Campaign Guidelines (must not be disparaging, exploitive, unsolicited dissemination, vulnerable customers).

5  

Effect of Corporate Misbehaviour

Ultimately, consumers “vote with their wallets” when companies engage in unethical behaviour.

6  

Understand the meaning of consumption and consumer

behaviour.

7  

Consumer Behaviour Perspectives

Human Thought and

Action

Field of Study

8  

Two Perspectives

HUMAN THOUGHT & ACTION Individuals Actions, Reactions, and Consequences that take place as the Consumer goes through a decision-making Process & puts the product to use.

FIELD OF STUDY The aggregated body of knowledge That researchers accumulate as they attempt to explain these actions, reactions and consequences.

Consumer Behaviour as Human Behaviour

Consumer behaviour is the set of value seeking activities that take place as people go about addressing their needs.

9  

Exhibit 1.2 The Basic Consumption Process

©ANTOINE  ANTONIOL/BLOOMBERG  VIA  GETTY  IMAGES  

10  

Consumption

Process by which goods, services or ideas are used and transformed into value.

© TH

O M A S   BA

RW IC K/ PH

O TO

G RA

PH ER

’S  C H O IC E/ G ET TY  IM

A G ES  

11  

Macro or Micro?

Economists study consumer behaviour from a macro, or broad, perspective.

Consumer behaviour researchers

study consumer behaviour on a micro, or more individual, level.

12  

Consumer Behaviour and Closely Related Disciplines

13  

Psychology is the study of Human Reaction to environments, including behavior and

mental process.

Sociology focuses on the study of groups of people in society

Anthropology has contributed to consumer behavior by interpret relationships between

consumers and the things they purchase and own.

Economists’ focus on consumer behavior is generally broad or macro.

14  

RELATED DISCIPLINES

Describe how consumers get treated differently in various

types of exchange environments.

15  

How are Consumers Treated?

Service Canada

Fine restaurant

AP  IMAGES/DENVER  POST,  CYRUS  MCCRIMMON  

©UPPERCUT  IMAGES/GETTY  IMAGES  

16  

Questions to Consider

How competitive is the marketing environment?

How dependent is the marketer on repeat business?

17  

Some Terminology

Consumer (customer) orientation Market

orientation

Relationship Marketing Touchpoints

18  

Prioritize customer value and satisfaction above other concerns. Organizational culture that embodies the

importance of creating value for customers among all employees,

Belief that the firm’s performance is enhanced through repeat business. Direct contacts (all) between the

Firm and the customer.

Explain the role of consumer behaviour in business and

society.

19  

Why Study CB?

Input to making responsible decisions as a consumer

Force that shapes society

Input to business/marketing strategy

20  

Resource-Advantage Theory

The resource-advantage theory explains why companies succeed or

fail; the company goes about obtaining resources from consumers in return for the value the company’s

resources create.

21  

Exhibit 1.4 How Old are These Companies?

22  

What happened to Zellers when Walmart entered Canada And Loblaws expanded into clothing lines?

Make-Up or Hope?

A myopic business view defines the business in terms of products and not

the value consumers receive. © ISTO CK

PH O TO

.C O M /R A IN FO

RE ST A U ST RA

LI A  

23  

Exhibit 1.5 Different Ways of Doing Business

24  

CB and Personal Growth

Studying CB helps consumers make better decisions by understanding:

Consequences of poor budgeting

Role of emotions

Avenues for redress

Social influences

Environmental effects

25  

Hold the Phone!

Should public restrictions on mobile

phone usage be created?

Influence on Public

Policy.

©ISTOCKPHOTO.COM/JACK  HOLLINGSWORTH  

26  

Be familiar with basic approaches to studying

consumer behaviour.

27  

Different Approaches to Studying CB

Interpretive Research

Quantitative Research

28  

1. Interpretive Research seeks to explain The inner meanings & motivations associated With specific consumption experiences. We interpret these meanings through words that consumers use to describe events or through observation of social interactions.

2. Quantitative Research approach that

Addresses question about consumer behavior using numerical measurement.

3. Experimental – cause & effect

Compare Quantitative & Qualitative Research

Source: Zikmund, W.G. and B.J. Babin (2007), Exploring Marketing Research, Thompson South-Western: Mason, Ohio.

29  

Describe why consumer behaviour is so dynamic and how recent

trends affect consumers.

30  

Trends

Internationalization

Technological Changes

Changing Communications

Changing Demographics

Changing Economy

31  

Internationalization

Starbucks is everywhere!

YONATAN  POMRENZE/NBC  NEWSWIRE  VIA  AP  IMAGES  

32