MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 1

Intro to Consumer Behavior

Consumer behavior--what is it?

ApplicationsConsumer Behavior

and Strategy Elements of strategy Consumer Analysis

Consumer behavior outcomes

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 2

One Definition

Consumer behavior: the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 3

Applications of Consumer Behavior

Marketing StrategyRegulatory (Public)

PolicySocial MarketingPersonal Consumer

Skills

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 4

Orientations in the Study of Consumer Behavior

AnthropologyEconomicsHistory and

geographyPsychologySociology

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 5

Anthropology

The study of people within and across cultures

Emphasis on cross-cultural differences

Questioning of assumptions within own culture

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 6

Economics

Basic economic issues Supply and demand Rational decision making Perfect information

Emphasis on predicting behavior

Complications in real life

Behavioral economics—e.g., “mental accounting”

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 7

History and Geography

Origins of behavior, perspectives, and traditions

Impact of geography on individuals Isolation Language development Climate

Geographic determinism

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 8

Psychology

Study of human thinking and behavior

Some issues Personality Personal development Cognition (thinking),

perception Attention and its

limitations “Learning”—e.g.,

acquired tastes

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 9

Sociology

Cultural and interpersonal influences on consumption—e.g., Fads, fashions Diffusion of

innovation Popular culture

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 10

Marketing Strategy and Consumer Behavior

MARKETANALYSIS

MARKETINGSTRATEGY

MARKETSEGMENTATION

CONSUMER DECISION

PROCESSES

OUTCOMES

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 11

Market Analysis Components

ConsumersFirmsCompetitorsConditions

(environment)

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 12

Market Segmentation (covered in more detail later)

Product-related need sets

Segments: customers with similar needs and responses

Segment description

Segment selection

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 13

Elements in Marketing Strategy

ProductCommunicationsPriceDistributionService

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 14

Outcomes

Firm Product

position/perception Sales Customer

satisfaction

Individual Need satisfaction Injurious

consumption

Society Economic Physical

environment Social welfare

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 15

The Nature of Consumer Behavior

External InfluencesInternal InfluencesSelf-ConceptSituationsExperiences and

acquisitions

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 16

Why We Buy: Some Issues

Questions academics relatively well: Whether, how, why?

Questions academics answer less well: How much? Which effect is stronger? What if…?

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 17

Why We Buy Issues

“Conversion” and “interception” ratesThe “Transition Zone”Thinking like a consumer who is in the

shopping setting!A note on exam questions from the

text: You need to have read the book to be able to answer! (The answers are not obvious.)