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Consumer BehaviorBuying, Having, and Being

NADEEM IQBAL RAZA

Chapter 1Consumers Rule


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The Wheel of Consumer Behavior

Figure 1.3


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Marketing: profitable exchange relationship

Producer /Seller

Communication

Product/Service

Money

Feedback

Consumer


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Customer Vs Producer

Need Want Preference Demand

Product Services Value


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ExchangesExchangesLearning EnvironmentLearning EnvironmentLearning EnvironmentLearning Environment

TuitionTuitionTuitionTuition

Promised ActionPromised ActionPromised ActionPromised Action

VotesVotesVotesVotes


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P r o d u c t s a n d

S e r v i c e s

Value,

satisfaction,

andquality

N e e d s , w

a n t s ,

a n d d e m

a n d s

Exchange,transactions,

and relationships

M a r k e t s

CoreMarketingConcepts

CoreMarketingConcepts


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Marketing

The process of developing andmaintaining profitablecustomer relationship.


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Elements of Marketing MixElements of Marketing Mix

ProductProduct PricePrice

PromotionPromotionPlacePlace

TargetTargetMarketMarket


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Separations

Spatial Separation

Spatial Separation

Temporal Separation

Temporal Separation

Perceptual

Separation

Perceptual

Separation

Ownership SeparationOwnership

Separation

Values Separation

Values Separation


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UniversalMarketingFunctions

Information Buying

Risk Taking Selling

Financing Transporting

Standardizing

and GradingStoring

MarketingFunctions


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Four Types of UtilityFour Types of Utility

UtilityUtilityUtilityUtility


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Separations Functions of Marketing Utility

Spatial Transporting PlaceStoring

Temporal Storing TimeTransportingFinancingRisk-Taking

Perceptual Selling Form, plusProviding Information facilitates

all others

Separations/Functions/Utility


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Separations Functions of Marketing Utility

Ownership Buying Ownership

SellingRisk-TakingFinancing

Values Buying Ownership

Selling FormStandardizing and GradingProviding Information

Separations/Functions/Utility


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People in Market Place

Individual

Group

Culture Subculture


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Consumer Evaluation Appearance Taste

Texture Design Style Color Smell Symbolism

People in Market Place


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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 off products,services ideas, or experiences to satisfy needs and desires

Forms of Consumer

Consumptions Items Needs and wants to be satisfied

Role Theory: Identifies consumers as actors on the marketplace stage Role: the rights, obligation and expected behavioural

pattern associated with a particular social status


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Consumer Behavior is a Process:

Buyer Behaviour (Transactional Approach) VsConsumer Behaviour (Value Exchange)


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Consumer Behavior InvolvesMany Different Actors

Consumer: A person who identifies a need or desire, makes a

purchase, and then disposes of the product Many people may be involved in this sequence of events. User Payer Buyer

Influencer Consumers may take the form of organizations or groups.


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Consumers Impact onMarketing Strategy

Market Segmentation: Identifies groups of consumers who are similar to

one another in one or more ways and then devises

marketing strategies that appeal to one or moregroups Demographics:

Statistics that measure observable aspects of a population

Ex.: Age, Gender, Family Structure, Social Classand Income, Race and Ethnicity, Lifestyle, andGeography


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Consumers Impact onMarketing Strategy (cont.)

Relationship Marketing: Building Bondswith Consumers Relationship marketing:

The strategic perspective that stresses the long-term,human side of buyer-seller interactions

Database marketing : Tracking consumers buying habits very closely, and

then crafting products and messages tailored preciselyto peoples wants and needs based on this information


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Marketings Impact on Consumers

Marketing and Culture: Popular Culture:

Music, movies, sports, books, celebrities, and otherforms of entertainment consumed by the massmarket.

Marketers play a significant role in our view of theworld and how we live in it.


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Popular Culture

Companies often create product icons to develop anidentity for their products. Many made-up creatures andpersonalities, such as Mr. Clean, the Michelin tire man andthe Pillsbury Doughboy, are widely recognized figures in

popular culture .


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Marketings Impact on Consumers: TheMeaning of Consumption

The Meaning of Consumption: People often buy products not for what they do,

but for what they mean. Types of relationships a person may have with a

product: Self-concept attachment

Nostalgic attachment Interdependence Love


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Marketings Impact on Consumers: TheMeaning of Consumption (cont.)

Consumption includes intangibleexperiences, ideas and services inaddition to tangible objects.

Four types of Consumption Activities: Consuming as experience Consuming as integration

Consuming as classification Consuming as play


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Marketings Impact on Consumers: TheGlobal Consumer

By 2006, the majority of people on earth willlive in urban centers.

Sophisticated marketing strategies contribute

to a global consumer culture. Even smaller companies look to expandoverseas.

Globalization has resulted in variedperceptions of the United States (both positiveand negative).


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Blurred BoundariesMarketing and Reality

Marketers and consumers coexist in acomplicated two-way relationship.

Its increasingly difficult for consumers todiscern the boundary between thefabricated world and reality.

Marketing influences both popular cultureand consumer perceptions of reality.


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Marketing Ethics and Public Policy

Business Ethics: Rules of conduct that guide actions in the

marketplace The standards against which most people in the

culture judge what is right and what is wrong, goodor bad

Notions of right and wrong differ amongpeople, organizations, and cultures.


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Needs and Wants:Do Marketers Manipulate Consumers?

Consumerspace Do marketers create artificial needs?

Need: A basic biological motive

Want: One way that society has taught us that need can besatisfied Are advertising and marketing necessary?

Economics of information perspective: Advertising is animportant source of consumer information.

Do marketers promise miracles? Advertisers simply dont know enough to manipulate

people.


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The Dark Side of Consumer Behavior

Consumer Terrorism: An example: Susceptibility of the nations food supply to

bioterrorism

Addictive Consumption: Consumer addiction:

A physiological and/or psychological dependency on productsor services

Compulsive Consumption: Repetitive shopping as an antidote to tension, anxiety,

depression, or boredom


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The Dark Side of Consumer Behavior (cont.)

Consumed Consumers: People who are used or exploited, willingly or not, for

commercial gain in the marketplace

Illegal Activities: Consumer Theft: Shrinkage: The industry term for inventory and cash

losses from shoplifting and employee theft

Anticonsumption: Events in which products and services are

deliberately defaced or mutilated


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Consumer BehaviorAs a Field of Study

Consumer behavior only recently aformal field of study

Interdisciplinary influences on thestudy of consumer behavior Consumer behavior studied by researchers from

diverse backgrounds

Consumer phenomena can be studied in differentways and on different levels


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