Consumer Behavior (CB) PDF

1 What Is CB and Why Should I Care? Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ...

1 What Is CB and Why Should I Care? Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  LO 1 Consumer Behavior (CB) Set of value-seeking activities that take place as people go about addressing their real needs Involves multiple psychological events like: Thinking Feeling Behaving R eflects totality of consumer’s decision, with respect to the acquisition, consumption and disposition of goods, services, time and ideas by (human) decision- making units (over time). Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 2  LO 1 Exhibit 1.1 The Basic Consumption Process Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 3  LO 1 Acquisition - the process by which a consumer comes to own an offering. Acquiring represents one type of acquisition behavior. Usage - the very core of consumer behavior. The process by which a consumer uses an offering. Whether and why we use the certain products can symbolize something about who we are, what we value and what we believe. Disposition - the process by which a consumer discards an offering. It is how consumers get rid of an offering they have previously acquired which has an important implication to marketers. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 4  LO 1 Consumer Behavior as a Field of Study Science of studying how consumers seek value in an effort to address real needs CB shares strong interdisciplinary bonds with: Economics Psychology, particularly social psychology Marketing Anthropology Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 5  LO 1 Exhibit 1.2 Relationships of CB with Other Disciplines Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 6  LO 1 Consumer Psychology Psychology Study of human reactions to their environment Social psychology Study that focuses on the thoughts, feelings, and behaviors that people have as they interact with other people Cognitive psychology Study of the intricacies of mental reactions involved in information processing Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 7  LO 1 Exhibit 2.1 Consumer Value Framework (CVF) Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH2 8  LO 1 Exhibit 2.2 External Influences Shape Consumers’ Decisions Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH2 9  LO 2 Value Personal assessment of the net worth obtained from an activity Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH2 10  LO 2 Utilitarian Value Gratification derived because something helps a consumer solve a problem or accomplish some task Consumers provide a rational explanation for their purchases Value is provided because the object or activity allows something good to happen or be accomplished Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH2 11  LO 2 Hedonic Value Value derived from immediate gratification that comes from some activity Provided by the actual experience and emotions associated with consumption End in and of itself rather than a means to an end Emotional and subjective in nature Action to obtain hedonic value can be difficult to explain objectively Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH2 12  LO 3 Importance of CB CB provides an input to business/marketing strategy CB provides a force that shapes the society CB provides an input to making responsible decisions as a consumer Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 13  LO 3 CB and Marketing Strategy Resource-advantage theory: Prominent theory that explains why companies fail or succeed Success is attained by acquiring more resources and using them to gain physical and intellectual capital advantages Product: Potentially valuable bundle of benefits Attribute: Tangible feature of a product that potentially delivers a benefit of consumption Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 14  LO 3 Effects of Consumer Behavior CB and society CB creates the society one lives in and serves as an essential source of input for public policy CB topics that can enlighten customers Consequences of poor budget allocation Role of emotions in decision making Social influences on decision making Environmental effects on CB Avenues for seeking redress for unsatisfactory purchases Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 15  LO 5 Consumer Behavior Is Dynamic Internationalization Companies are required to deal with geographical and cultural distances People from different cultures interpret products and behaviors differently Consumer perception will determine the success or failure of the product Technological advances have made geographical distance a nonissue Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 16  LO 5 Changing Economy Factors contributing to stagnant income Unemployment Limited prospects in the workforce Decreased opportunity to work at an acceptable wage Consumers are cautious about expenses and react favorably to price-cutting policies Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CB8 | CH1 17