Consumers Rule

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What is Consumer Behavior?

• The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires

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Consumer Behavior is a “Process”

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Actors in Consumer Behavior

• Consumer: A person who identifies a need or desire, makes a purchase, and then disposes of the product

–Purchaser vs. user vs. influencer

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Consumers’ Impact• Understanding consumer behavior

–Understanding people/organizations

–Knowledge and data about customers…•…Help to define the market•…Identify threats/opportunities to a brand

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Segmenting Consumers• Market Segmentation

–Similar consumers•Example: “Heavy Users” of fast-food industry

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Segmenting Consumers: Demographics

• Age• Gender• Family Structure & Marital Status

• Social Class & Income• Race & Ethnicity

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Relationship Marketing• Success = building lifetime relationships between brands and customers

–Regular interaction with customers

–Database Marketing

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Marketing’s Impact on Consumers

• Marketers significantly influence the world and the information we learn!–Advertisements, stores, and products communicate and persuade

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The Meaningof Consumption

• People often buy products not for what they do, but for what they mean–Brands…

•…Convey image/personality•…Define our place in modern society•…Help us to form bonds with others who share similar preferences

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The Global Consumer•Global Consumer Culture•People united by common devotion to:–Brand name–Movie stars–Celebrities–Leisure activities

Pressure to understand similarities and differences of customers in various countries

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Virtual Consumption• Impact of the Web on consumer behavior–24/7 shopping without leaving home–Instantaneous access to news–Handheld devices & wireless communications

• C2C e-commerce–Virtual brand communities.–Consumer chat rooms

AMAZON.COM

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Manipulating Needs & Wants

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Do Marketers Promise Miracles?

• Advertising promises “magical” products–Response: Advertisers simply do not know

enough about people to manipulate them•Failure rate for new products = 40% to 80%