intro to cb

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 1

Intro to Consumer Behavior

� Consumer behavior--what is it?

� Applications� Consumer 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 Strategy� Regulatory (Public)

Policy� Social Marketing� Personal Consumer

Skills

MKTG 371 INTRO TO ONSUMER BEHAVIOR Lars Perner, Instructor 4

Orientations in the Study of Consumer Behavior

� Anthropology� Economics� History and

geography� Psychology� Sociology

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

� Consumers� Firms� Competitors� Conditions

(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

� Product� Communications� Price� Distribution� Service

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 Influences� Internal Influences� Self-Concept� Situations� Experiences 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” rates� The “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.)