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    1-15/5/2012Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

    Chapter 1

    Consumers Rule

    CONSUMER

    BEHAVIOR, 9eMichael R. Solomon

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    1-25/5/2012Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

    Chapter Objectives

    When you finish this chapter, you shouldunderstand why:

    Consumers use products to help them define

    their identities in different settings. Consumer behavior is a process.

    Marketers need to understand the wants and

    needs of different consumer segments. The Web is changing consumer behavior.

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    Chapter Objectives (continued)

    Consumer behavior relates to other issues inour lives.

    Consumer activities can be harmful to

    individuals and to society. Many different types of specialists study

    consumer behavior.

    There are two major perspectives that seekto understand and study consumer behavior.

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    Aspects of Consumer Behavior

    Segmented by marketers bydemographics

    Influenced by peer groups

    Exposed to competingbrands 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 involvedwhen individuals or

    groups select,purchase, use, or

    dispose of products,

    services, ideas, orexperiences tosatisfy needs and

    desires.

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    Figure 1.1Stages in the Consumption Process

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    Actors in Consumer Behavior

    A consumer is a personwho identifies a need ordesire, makes apurchase, 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 goodbusiness

    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: Demographics

    Demographics:statistics that measureobservable aspects of apopulation, such as

    Age

    Gender

    Family structure

    Social class/income

    Race/ethnicity

    Geography

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    Redneck Bank Targets by Social Class

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    Discussion

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

    Do these products or services help you form

    bonds with your group? If yes, giveexamples.

    Are there any product or services you wouldavoid because of the social group you belong

    to?

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    Segmenting Consumers: Lifestyles

    Psychographics

    The way we feelabout ourselves

    The things wevalue

    The things we do

    in our spare time

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    Tapping into Consumer Lifestyles

    Relationship marketing: interact withcustomers regularly; give them reasons tomaintain a bond with the company

    Database marketing: tracking specificconsumers buying habits and craftingproducts and messages tailored preciselyto peoples wants

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    Popular Culture

    Music

    Movies

    Sports

    Books

    Celebrities

    Entertainment

    Marketers influencepreferences for movieand music heroes,

    fashions, food, anddecorating choices.

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    Consumer-Generated Content

    When everydaypeople voice theiropinions aboutproducts, brands,

    and companies onblogs, podcasts,and socialnetworking sitessuch as Facebook

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    The Meaning of Consumption

    People often buy products not for what theydo, but for what they mean

    Consumers can develop relationships with

    brands:

    Self-Concept Attachment Nostalgic Attachment

    Interdependence Love

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    The Global Consumer

    The global consumerculture is one that unitespeople with a commondevotion to

    Brand name consumergoods

    Movie stars

    Celebrities

    Leisure activities

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    Virtual Brand Communities

    C2C e-commerce in addition to B2B andB2C

    Wired Americans spend

    Less time with friends/family

    Less time shopping in stores

    More time working at home after hours

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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 Actprohibits use of bribery by U.S.businesspeopleno matter where theyre

    doing business

    Bribery commonly practiced in othercountries

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    Sample of Federal Legislation Intended toEnhance Consumers Welfare

    Year Act

    1951 Fur Product Labeling Act

    1953 Flammable Fabrics Act

    1958 National Traffic and SafetyAct

    1958 Automobile InformationDisclosure Act

    1966 Fair Packaging and Labeling

    Act

    1966 Child Protection Act

    1967 Federal Cigarette Labelingand Advertising Act

    Year Act

    1968 Truth-in-Lending Act

    1969 National EnvironmentalPolicy Act

    1972 Consumer Products SafetyAct

    1975 Consumer Goods Pricing Act

    1975 Magnuson-Moss Warranty-

    Improvement Act

    1990 Nutrition Labeling andEducation Act

    1998 Internet Tax Freedom Act

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    Do Marketers Create Artificial Needs?

    Need: a basic

    biological motive

    Want: one way that

    society has taught usthat the need can besatisfied

    Objective of marketing: create awareness thatneeds exist, not to create needs

    versus

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    Are Advertising & Marketing Necessary?

    Does advertising foster materialism?

    Products are designed to meet existingneeds;

    Advertising only helps to communicate theiravailability

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    Do Marketers Promise Miracles?

    Advertisers simplydo not knowenough about

    people tomanipulate them

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    Discussion

    Advertisers are often blamed for promoting amaterialistic society by making theirproducts 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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    Public Policy & Consumerism

    Concern for the welfare of consumers

    Department of Agriculture Federal Trade Commission

    Food and DrugAdministration

    Securities and ExchangeCommission

    Environmental ProtectionAgency

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    Consumer Activism

    Culture jamming is a strategy to disruptefforts by the corporate world to dominateour cultural landscape.

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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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    The Consumer Dark Side

    Consumerterrorism

    Addictiveconsumption

    Compulsiveconsumption Consumed

    consumers

    Illegal activities

    I di i li R h I i

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    Interdisciplinary Research Issues inConsumer Behavior

    Disciplinary Focus Product RoleExperimentalPsychology

    Perception, learning, and memory processes

    Clinical Psychology Psychological adjustment

    Microeconomics/HumanEcology

    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/LiteraryCriticism

    Verbal and visual communication of meaning

    Demography Measurable characteristics of a population

    History Societal changes over time

    Cultural Anthropology Societys beliefs and practices

    Fi 1 2 Di i li i

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    Experimental PsychClinical Psychology

    Developmental PsychHuman EcologyMicroeconomics

    Social Psychology

    SociologyMacroeconomics

    Semiotics/Literary CriticismDemography

    HistoryCultural Anthropology

    Figure 1.2 Disciplines inConsumer Research

    MICRO CONSUMER BEHAVIOR(INDIVIDUAL FOCUS)

    MACRO CONSUMERBEHAVIOR

    (SOCIAL FOCUS)

    Consumer behaviorinvolves many different

    disciplines

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    Figure 1.3 Wheel of Consumer Behavior

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    Chapter Summary

    Consumer behavior is a process. Consumer use products and brands to define

    their identity to others.

    Consumers from different segments havedifferent needs and wants.

    Consumer activities can be harmful.

    Consumer behavior benefits from severalfields.

    There are two major perspectives guiding ourstudy of consumer behavior.