Chapter 1
Consumers Rule
CONSUMER
BEHAVIOR, 8e
Michael Solomon
Chapter Objectives
When you finish this chapter you should understand why:
Consumer behavior is a process.
Consumers use products to help them define their identities
in different settings.
Marketers need to understand the wants and needs of
different consumer segments.
The Web is changing consumer behavior.
Consumer behavior relates to other issues in our lives.
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Chapter Objectives (cont.)
Consumer activities can be harmful to individuals and to
society.
Many different types of specialists study consumer behavior.
There are two major perspectives that seek to understand
and study consumer behavior.
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Aspects of Consumer Behavior
Gail, business student and consumer
Segmented by marketers by
demographics
Market segmentation: targeting a
brand to specific groups of consumers
Influenced by peer groups (such as
sorority 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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Consumer Behavior is a Process
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Figure 1.1
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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 user versus
influencer
Organization/group as
consumer
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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
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Segmenting Consumers
Market segmentation is even more important today
Promotion budgets used toward more specialized media
McDonalds uses ethnic programming, womens blogs, instore videos for young men
Marketers build brand loyalty by going after heavy users
Taco Bell developed higher-calorie Chalupa for its loyal
customers
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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 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?
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Segmenting Consumers: Lifestyles
Psychographics
The way we feel about
ourselves
The things we value
The things we do in our
spare time
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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 peoples wants
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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-Attachment Concept
Nostalgic Attachment
Interdependence
Love
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The Global Consumer
Global Consumer Culture
People united by common
devotion to:
Brand name consumer goods
Movie stars
Celebrities
Leisure activities
Ubiquitous networks (ucommerce)
RFID tags
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Virtual Consumption
Impact of the Web on
consumer behavior
24/7 shopping without
leaving home
Instantaneous access to
news
Handheld devices &
wireless communications
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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
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Discussion
It seems that everywhere you turn, marketers are trying to
capture your attention. Sports stadiums are named after
corporate sponsors, and brands are advertised on everything
from buses to t-shirts.
Do advertisers have the right to reach you all the time?
If yes, why?
If no, why?
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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. businesspeopleno matter where theyre doing
business
Bribery commonly practiced in other countries
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Do Marketers Create Artificial Needs?
Objective of marketing: create awareness that
needs exist, not to create needs
Need: a basic
biological motive
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versus
Want: one way that
society has taught us
that the need can be
satisfied
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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 do not
know enough about
people to manipulate
them
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Public Policy & Consumerism
Concern for the welfare of consumers
Department of Agriculture
Federal Trade Commission
Food and Drug
Administration
Securities and Exchange
Commission
Environmental Protection
Agency
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Consumer Activism
American Legacy Foundations The Truth
Alerts everyone to the lies and hidden practices of the
cigarette companies
Save the Redwoods/Boycott the GAP
The Organic Consumers Association (OCA)
Click for Adbusters.com
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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
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Table 1.2 (abridged)
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Consumerism & Consumer Research
JFKs Declaration of
Consumer Rights (1962)
The right to safety
The right to be
informed
The right to redress
The right to choice
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Social Marketing
Green Marketing
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The Consumer Dark Side
Consumer
terrorism
Addictive
consumption
Compulsive
consumption
Consumed
consumers
Illegal activities
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Sample of Federal Legislation Intended to
Enhance Consumers Welfare
Year
Act
Year
Act
1951
Fur Product Labeling Act
1968
Truth-in-Lending Act
1953
Flammable Fabrics Act
1969
National Environmental
Policy Act
1958
National Traffic and Safety
Act
1972
Consumer Products Safety
Act
1958
Automobile Information
Disclosure Act
1975
Consumer Goods Pricing Act
1966
Fair Packaging and Labeling
Act
1975
Magnuson-Moss WarrantyImprovement Act
1966
Child Protection Act
1990
Nutrition Labeling and
Education Act
1967
Federal Cigarette Labeling
and Advertising Act
1998
Internet Tax Freedom Act
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Table 1.1 (abridged)
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Pyramid of Consumer Behavior
MICRO CONSUMER BEHAVIOR
(INDIVIDUAL FOCUS)
Consumer behavior
involves many different
disciplines
MACRO CONSUMER
BEHAVIOR
(SOCIAL FOCUS)
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Experimental Psych
Clinical Psychology
Develop Psychology
Human Ecology
Microeconomics
Social Psychology
Sociology
Macroeconomics
Semiotics/Literary Criticism
Demography
History
Cultural Anthropology
Figure 1.2
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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
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Table 1.3
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Wheel of Consumer Behavior
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Figure 1.3
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