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Consumer Behavior:Consumer Behavior:A FrameworkA Framework

John C. MowenJohn C. MowenMichael S. MinorMichael S. Minor

CONSUMER CONSUMER BEHAVIOR:BEHAVIOR:

A FRAMEWORK A FRAMEWORK John C. Mowen &John C. Mowen &Michael S. MinorMichael S. Minor

Consumer Behavior:Consumer Behavior:A FrameworkA Framework

John C. MowenJohn C. MowenMichael S. MinorMichael S. Minor

CONSUMER CONSUMER BEHAVIOR:BEHAVIOR:

A FRAMEWORK A FRAMEWORK John C. Mowen &John C. Mowen &Michael S. MinorMichael S. Minor

Chapter 1: An Introduction to Chapter 1: An Introduction to Consumer Behavior Consumer Behavior

Published by Prentice, Inc.Published by Prentice, Inc.

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Concepts to Learn

• Definition of CB• Consumer primacy• Environmental

analysis• Positioning/

differentia-tion• Segmentation

• Theory and CB• Research

perspectives on consumer behavior

• Exchange processes

• Organizing model of consumer behavior

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Consumer Behavior . . .

. . . is defined as the study of the buying units and the exchange processes involved in acquiring, consuming, and disposing of goods, services, experiences, and ideas.

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Why Study Consumer Behavior?

• Foundation of Marketing Management

• Public Policy and Consumer Behavior

• Altruistic Marketing• Personal Value

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Three Research Three Research Perspectives on Perspectives on

Consumer BehaviorConsumer Behavior

• The Decision-Making Perspective

• The Experiential Perspective

• The Behavioral Influence Perspective

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The Decision-Making Perspective . . .

. . . proposes that buying results from consumers perceiving that they have a problem and then they move through a series of rational steps to solve the problem

–Problem Recognition

–Search–Alternative Evaluation

–Choice–Postacquistion Evaluation

Generic Decision Model

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The Experiential Perspective.

. . . proposes that in some instances buying results from the consumer’s need for fun, to create fantasies, obtain emotions, and feelings. Frequently uses interpretative research methods.

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The Behavioral Influence Perspective

. . .

. . . assumes that strong environmental forces propel consumers to make purchases without necessarily first developing strong feelings or beliefs about the product.

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Exchange Processes and Consumer

Behavior

• Exchange is the process that involves the “transfer of something tangible or intangible, actual or symbolic, between two or more social actors.”

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Prerequisites for Exchange:

– Two or more parties must be present– Each party has something of value to the

other– Each party is capable of communication

and delivery– Each party must be free to accept or reject

the other's offer– Each party must believe that it is

appropriate or desirable to deal with the other

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Elements of Exchange

Six Types of Resources Are Exchanged:

• Goods

• Service

• Money

• Information

• Status

• Feelings

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Dimensions of Exchange Relations

• Four types of consumer exchange relations have been identified:

– Restricted versus Complex Exchanges– Internal versus External Exchanges– Formal versus Informal Exchanges– Relational versus Discrete

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Relational exchange– Current hot topic in marketing– Characteristics

• long term• reciprocal obligations• non-economic rewards: market

embeddedness--social ties between buyer and seller increase perceived value of exchange.

• extensive formal and informal communications• high interdependence• planning

– Relational exchange practiced between members of marketing channel.

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Market Embeddedness

• The social ties between buyer and seller increase the perceived value of the exchange.

• Examples, house parties of:– Tupperware– Mary Kay Cosmetics

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Ethical Issues in Consumer Exchange

Relations • Ethics is the study of

the normative judgments concerned with what is morally right and wrong, good and bad.

• Free riding: example of an unethical action.

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Ethical judgments

• deal with serious human injuries and benefits– may, or may not, be laid down by authority– override self interest– are based on impartial considerations

• Ethical dilemma: a decision that involves the trade-off between lowering one’s personal values in exchange for increased organizational or personal profits.

• Ethical exchange– both parties know full nature of agreement– nothing intentionally misrepresented or omitted– no undue influence takes place via power.

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• Ethical rules of thumb– Golden rule: act in a way that you

would expect others to act toward you.

– professional ethic: take actions that would be viewed as proper by an unbiased panel of colleagues.

– TV test: Would I feel comfortable explaining my actions on national television?

– Kant’s categorical imperative: forego acts, that if used as a universal principle of behavior, would result in negative societal outcomes.

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An Organizing Model of Consumer

Behavior

• The model has five primary components:

– The Buying Unit– The Exchange Process– The Marketer’s Strategy– The Individual Influencers– The Environment

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• Buying unit– consumers, firms, government, non-profits,

etc.– Individual influencers

• information processing• behavioral learning• motivation and personality• beliefs, attitudes and behaviors• communications• decision making

• Marketer, who develops strategy– marketing mix– segmentation and positioning– employs marketing research to understand

consumers

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Environmental Analysis:

• the marketer assesses the impact of each of the below facets of the environment on the firm.

•situations•groups and families•culture•subculture•cross cultural issues• regulatory environment

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Managerial Applications Analysis

(SPERM)

– Five factors to consider when using consumer behavior principles to develop managerial strategy are:•segmentation

•positioning and differentiation

•environmental analysis

•marketing research

•marketing mix