Chapter 1 Consumer Behavior

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    Chapter 1

    Consumers Rule

    CONSUMER

    BEHAVIOR, 9eMichael R Solomon

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    Chapter O!"ecti#es

    $hen %ou &inish this chapter, %ou shoul'un'erstan' (h%)

    Consumers use pro'ucts to help them 'e&ine

    their i'entities in 'i&&erent settin*s Consumer !eha#ior is a process

    Mar+eters nee' to un'erstan' the (ants an'

    nee's o& 'i&&erent consumer se*ments he $e! is chan*in* consumer !eha#ior

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    Chapter O!"ecti#es -continue'.

    Consumer !eha#ior relates to other issues inour li#es

    Consumer acti#ities can !e harm&ul to

    in'i#i'uals an' to societ% Man% 'i&&erent t%pes o& specialists stu'%

    consumer !eha#ior

    here are t(o ma"or perspecti#es that see+to un'erstan' an' stu'% consumer !eha#ior

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    Aspects o& Consumer Beha#ior

    Se*mente' !% mar+eters !%'emo*raphics

    In&luence' !% peer *roups

    E/pose' to competin*!ran's see+in* her lo%alt%

    E#aluates pro'ucts !% the

    appearance, taste, te/ture,smell

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    $hat is Consumer Beha#ior0

    Consumer behavior:the study of the

    processes involvedwhen individuals or

    groups select,purchase, use, or

    dispose of products,services, ideas, or

    experiences tosatisfy needs and

    desires.

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    i*ure 11

    Sta*es in the Consumption 2rocess

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    Actors in Consumer Beha#ior

    A consumer is a personwho identifies a need or

    desire, makes a

    purchase, and then

    disposes of the product.

    2urchaser #ersus user

    #ersus in&luencer

    Or*ani3ation4*roup as

    consumer

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    Consumers5 Impact on Mar+etin*

    Un'erstan'in* consumer !eha#ior is *oo'!usiness

    Un'erstan'in* people4or*ani3ations to

    satis&% consumers5 nee's6no(le'*e an' 'ata a!out customers)

    Help to 'e&ine the mar+et

    I'enti&% threats4opportunities to a !ran'

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    Se*mentin* Consumers) 7emo*raphics

    7emo*raphics) statisticsthat measure o!ser#a!le

    aspects o& a population,

    such as

    A*e8en'er

    amil% structure

    Social class4income

    Race4ethnicit%

    8eo*raph%

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    Re'nec+ Ban+ ar*ets !% Social Class

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    7iscussion

    What are some products or services that arewidely used by your social group?

    o these products or services help you form

    bonds with your group? !f yes, giveexamples.

    Are there any product or services you would

    avoid because of the social group you belong

    to?

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    Se*mentin* Consumers) i&est%les

    2s%cho*raphics

    he (a% (e &eel

    a!out oursel#es

    he thin*s (e

    #alue

    he thin*s (e 'o

    in our spare time

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    appin* into Consumer i&est%les

    Relationship mar+etin*) interact (ithcustomers re*ularl%: *i#e them reasons to

    maintain a !on' (ith the compan%

    7ata!ase mar+etin*) trac+in* speci&icconsumers5 !u%in* ha!its an' cra&tin*

    pro'ucts an' messa*es tailore' precisel%

    to people5s (ants

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    2opular Culture

    Music

    Mo#ies

    Sports

    Boo+s

    Cele!rities

    Entertainment

    Mar+eters in&luence

    pre&erences &or mo#ie

    an' music heroes,

    &ashions, &oo', an''ecoratin* choices

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    Consumer;8enerate' Content

    $hen e#er%'a%people #oice their

    opinions a!out

    pro'ucts, !ran's,

    an' companies on!lo*s, po'casts,

    an' social

    net(or+in* sitessuch as ace!oo+

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    he Meanin* o& Consumption

    2eople o&ten !u% pro'ucts not &or (hat the%'o, !ut &or (hat the% mean

    Consumers can 'e#elop relationships (ith

    !ran's)

    Sel&;Concept Attachment Nostal*ic Attachment

    Inter'epen'ence o#e

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    he 8lo!al Consumer

    he *lo!al consumerculture is one that unitespeople (ith a common'e#otion to

    Bran' name consumer*oo's

    Mo#ie stars

    Cele!rities eisure acti#ities

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    Virtual Bran' Communities

    C Americans spen'?

    ess time (ith &rien's4&amil%

    ess time shoppin* in stores

    More time (or+in* at home a&ter hours

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    Mar+etin* Ethics an' 2u!lic 2olic%

    Business ethics) rules o& con'uct that *ui'eactions in the mar+etplace

    Cultural 'i&&erences in ethics)

    Co'es o& ethics less &ormal in Me/ico

    US orei*n Corrupt 2ractices Act

    prohi!its use o& !ri!er% !% US

    !usinesspeople@no matter (here the%5re

    'oin* !usiness

    Bri!er% commonl% practice' in other

    countries

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    Sample o& e'eral e*islation Inten'e'

    to Enhance Consumers5 $el&are

    ear Act

    191 ur 2ro'uct a!elin* Act

    19 lamma!le a!rics Act

    19D National ra&&ic an' Sa&et%Act

    19D Automo!ile In&ormation7isclosure Act

    19 air 2ac+a*in* an' a!elin*

    Act

    19 Chil' 2rotection Act

    19F e'eral Ci*arette a!elin*an' A'#ertisin* Act

    ear Act

    19D ruth;in;en'in* Act

    199 National En#ironmental2olic% Act

    19F< Consumer 2ro'ucts Sa&et%Act

    19F Consumer 8oo's 2ricin* Act

    19F Ma*nuson;Moss $arrant%;

    Impro#ement Act

    199G Nutrition a!elin* an'E'ucation Act

    199D Internet a/ ree'om Act

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    7o Mar+eters Create Arti&icial Nee's0

    Nee') a !asic

    !iolo*ical moti#e

    $ant) one (a% that

    societ% has tau*ht usthat the nee' can !e

    satis&ie'

    O!"ecti#e o& mar+etin*) create a(areness thatnee's e/ist, not to create nee's

    #ersus

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    Are A'#ertisin* Mar+etin* Necessar%0

    7oes a'#ertisin* &oster materialism0

    2ro'ucts are 'esi*ne' to meet e/istin*nee's:

    A'#ertisin* onl% helps to communicate theira#aila!ilit%

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    7o Mar+eters 2romise Miracles0

    A'#ertisers simpl%

    'o not +no(

    enou*h a!out

    people tomanipulate them

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    7iscussion

    Advertisers are often blamed for promoting amaterialistic society by making their

    products as desirable as possible.

    o you agree with this? !f yes, is materialism a bad thing?

    !f no, what are your reasons?

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    2u!lic 2olic% Consumerism

    Concern &or the (el&are o& consumers

    7epartment o& A*riculture e'eral ra'e Commission

    oo' an' 7ru*

    A'ministration

    Securities an' E/chan*e

    Commission

    En#ironmental 2rotection

    A*enc%

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    Consumer Acti#ism

    Culture "ammin* is a strate*% to 'isrupte&&orts !% the corporate (orl' to 'ominate

    our cultural lan'scape

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    Consumerism Consumer Research

    65s =7eclaration o&Consumer Ri*hts>

    -19

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    he Consumer =7ar+ Si'e>

    Consumer

    terrorismA''icti#e

    consumption

    Compulsi#e

    consumption Consume'

    consumers

    Ille*al acti#ities

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    Inter'isciplinar% Research Issues in

    Consumer Beha#ior7isciplinar% ocus 2ro'uct Role

    E/perimental2s%cholo*%

    2erception, learnin*, an' memor% processes

    Clinical 2s%cholo*% 2s%cholo*ical a'"ustment

    Microeconomics4HumanEcolo*%

    Allocation o& in'i#i'ual or &amil% resources

    Social 2s%cholo*% Beha#ior o& in'i#i'uals as mem!ers o& social *roups

    Sociolo*% Social institutions an' *roup relationships

    Macroeconomics Consumers5 relations (ith the mar+etplace

    Semiotics4iterar%Criticism

    Ver!al an' #isual communication o& meanin*

    7emo*raph% Measura!le characteristics o& a population

    Histor% Societal chan*es o#er time

    Cultural Anthropolo*% Societ%5s !elie&s an' practices

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    E/perimental 2s%chClinical 2s%cholo*%

    7e#elopmental 2s%ch

    Human Ecolo*%

    Microeconomics

    Social 2s%cholo*%

    Sociolo*%

    Macroeconomics

    Semiotics4iterar% Criticism7emo*raph%

    Histor%

    Cultural Anthropolo*%

    i*ure 1< 7isciplines in

    Consumer ResearchMICRO CONSUMER BEHAVIOR

    -IN7IVI7UA OCUS.

    MACRO CONSUMER

    BEHAVIOR

    -SOCIA OCUS.

    Consumer !eha#ior

    in#ol#es man% 'i&&erent

    'isciplines

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    a!le 1

    2ositi#ist #ersus Interpreti#ist Approaches

    Assumptions 2ositi#ist Approach Interpreti#ist Approach

    Nature o&realit%

    O!"ecti#e, tan*i!leSin*le

    Sociall% constructe'Multiple

    8oal 2re'iction Un'erstan'in*

    6no(le'*e*enerate'

    ime &reeConte/t;in'epen'ent

    ime;!oun'Contest 'epen'ent

    Vie( o&causalit%

    E/istence o& real causes Multiple, simultaneousshapin* e#ents

    Researchrelationship

    Separation !et(eenresearcher an' su!"ect

    Interacti#e, cooperati#e(ith researcher !ein*part o& phenomenonun'er stu'%

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    i*ure 1 $heel o& Consumer Beha#ior

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    Chapter Summar%

    Consumer !eha#ior is a process Consumer use pro'ucts an' !ran's to 'e&ine

    their i'entit% to others

    Consumers &rom 'i&&erent se*ments ha#e

    'i&&erent nee's an' (ants

    Consumer acti#ities can !e harm&ul

    Consumer !eha#ior !ene&its &rom se#eral &iel's

    here are t(o ma"or perspecti#es *ui'in* our

    stu'% o& consumer !eha#ior