Lesson 3 – Consumer

Behavior
 What is Consumer
Behavior?

The study of how consumers

• Select
• Purchase
• Use
• Dispose of

goods and services in the process of satisfying

their personal and household needs and wants.
Why did consumer behavior become a
separate discipline from marketing?

• Marketers came to realize that consumers did not

always act or react as marketing theory suggested
they would
• Consumers rejected mass-marketed products,
preferring differentiated products that reflected their
own special needs, personalities and lifestyles
• Even in industrial markets, where needs are more
homogeneous than consumer markets, buyers
exhibited diversified preferences and less predictable
purchase behavior
 Other factors that contributed to the
growing interest in consumer behavior

• The accelerated rate of new product

development
• The consumer movement
• Public policy considerations
• Environmental concerns
• The opening of national markets
throughout the world
Consumer behavior is more
than just purchasing

Consumer Behavior involves

• Exposure to the media
• Browsing
• Influencing others
• Being influenced by others
• Complaining about and returning products
Economics alone does not
explain consumer behavior

• Early theories based on notion that

individuals act rationally to maximize their
benefits (satisfaction) from purchasing
• Later research discovered that consumers
are just as likely to
• Purchase impulsively
• Be influenced by family, friends, advertisers and
role models
• Be influenced just as strongly by mood, situation
and emotion
 Consumer behavior is an
Interdisciplinary Field

Psychology Anthropology
Consumer
Behavior
studies

Social
Psychology Economics

Other Fields
 What Do Buying Decisions Involve?

Consider a decision to acquire a pet

• Decision entails determining:

– Where to learn about pets
– Where to purchase the selected pet
– How much to pay for it
– Who will take care of it
– What supplies or services are needed for it
– Where to purchase such supplies or services
– How much to pay for supplies and services
The Marketing Concept

• An operating philosophy of business in which the

consumer is the focal point of the firm’s activities
• Embodies the view that industry is a customer-
satisfying process, not a goods-producing process (the
“selling concept”)
• Key assumption is that, to be successful, a company
must determine the needs and wants of specific target
markets and deliver the desired satisfactions better
than the competition
 Trends influencing consumer behavior in
contemporary society

The Information Superhighway Concern about Safety

Focus on Health and Beauty Focus on Ethics

Shifting Roles of Sexes Diversity

Telecommuting A Global Village

Personalized Economy Ecological Consciousness

Emphasis on Leisure Changing Perception of Religion

 1. Growth of the information
superhighway

Positive Implications
• Marketers can be in touch with anyone,
anywhere, and at any time
• Availability of information increases
consumers’ knowledge and power in the
marketplace.
Negative Implications
• Increased information about consumers
raises serious privacy issues
• Creation of a digital divide that further
stratifies society based on wealth,
education and age
2. Focus on health, fitness,
and beauty

• Golden opportunities are created for marketers

of many products ranging from fat-free foods to
vitamins, as well as for services ranging from
plastic surgery to hair implants.
 3. Shifting roles of men and
women

• More women in the workforce

• More women in management positions
• More women raising children alone
• Gay and lesbian families changing the traditional
model of the family
• A redefinition of buying decision centers
within the family
• A redefinition of sales and advertising
strategies
4. Telecommuting and the
office of the future

• Decline in demand for products and services

such as cars, public transportation,
automobile insurance, car repair, child care,
and baby-sitting services
• Increased need for efficient package-delivery
services
• Rise in demand for state-of-the-art
communication devices
5. Emphasis on leisure

• People engage in leisure activities for

different reasons
• Knowing those reasons helps marketers
select appropriate promotional appeals
 6. Concern About Personal Safety

• Enhanced demand for defense-related products

• Post 9/11 issues relating to travel
 7. Diversity in the workplace and
marketplace

“Traditional” minority groups in the US include:

• Women
• African-Americans
• Asian-Americans
• Latinos
Even in “lily white” Vermont recent immigrant
groups have included:
• Russian Jews
• Bosnians
• Tibetans
• Vietnamese
• Congolese
• Sudanese
• A salad bowl in which these diverse
groups maintain elements of their
traditions
• Diversity offers divergent perspectives and
enhanced creativity and innovation within
the workplace
• Product adaptation becomes necessary to
suit the tastes of distinct ethnic groups
• Promotional appeals must be adjusted
 8. Focus on ethics
• For much of history, business ethics was
considered an oxymoron
• In the 1980’s, ethics became an issue with
the discovery of numerous instances of
corporate wrongdoing
– Ford Pinto
– Bhopal disaster
– Asbestos
– Tobacco
• Ethical codes were enacted by many
companies and institutions and ethics
became part of the curriculum of business
schools
• It is likely that ethics in marketing will
receive greater attention from the public
and from government and private
watchdog groups
 9. Ecological consciousness

Studies show that:

• Consumers consider themselves
“environmentalists”
• They have changed their habits to protect
the environment
• They are willing to pay more for products
that are considered environmentally safe
• An increasing flow of environmentally
friendly products
• Positive shift in public attitudes toward
firms
and products that protect the environment
• As a result, the rise of green marketing
• Greater potential for deception based on
false claims of environmental safety of
products
10. The rise of the global
village
• An increasing acceptance of the free market
system in many foreign countries (e.g., Eastern
Europe)
• Growth of major regional free-trade areas, such
as NAFTA and the EU, resulting in increased
trade
• Expansion of American media—including
advertising—to other nations exposes
consumers to availability of American goods
• More markets opening up for American
products overseas
• Marketers need to understand the cultures
of foreign countries to market their
products effectively
• Potential for abuse arises
THANK YOU