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CONSUMER BEHAVIOR:CONSUMER BEHAVIOR:A FRAMEWORKA FRAMEWORKJohn C. Mowen &John C. Mowen &
Michael S. MinorMichael S. Minor
CONSUMER BEHAVIOR:CONSUMER BEHAVIOR:A FRAMEWORKA FRAMEWORKJohn C. Mowen &John C. Mowen &
Michael S. MinorMichael S. Minor
Chapter 1: An Introduction toChapter 1: An Introduction to
Consumer BehaviorConsumer 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
Researchperspectives onconsumer behavior
Exchange processes
Organizing model ofconsumer behavior
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Consumer Behavior . . .
. . . is defined as thestudy of the buying units
and the exchangeprocesses involved inacquiring, consuming, anddisposing of goods,
services, experiences, andideas.
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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 PerspectivesThree Research Perspectives
on Consumer Behavioron Consumer Behavior
The Decision-Making Perspective
The Experiential Perspective
The Behavioral InfluencePerspective
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The Decision-Making
Perspective . . .
. . . proposes thatbuying results fromconsumers perceivingthat they have aproblem and then theymove through a seriesof rational steps tosolve the problem
Problem Recognition
Search
AlternativeEvaluation
ChoicePostacquistionEvaluation
Generic Decision Model
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The Experiential
Perspective.. . . proposes that in someinstances buying results
from the consumers needfor fun, to createfantasies, obtainemotions, and feelings.
Frequently usesinterpretative researchmethods.
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The Behavioral Influence
Perspective . . .
. . . assumes that strong
environmental forces propelconsumers to make purchaseswithout necessarily first developing
strong feelings or beliefs about theproduct.
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Exchange Processes and
Consumer Behavior
Exchange is the process
that involves thetransfer of somethingtangible or intangible,actual or symbolic,
between two or moresocial 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 anddelivery
Each party must be free to accept or reject theother's offer
Each party must believe that it is appropriate ordesirable to deal with the other
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Elements of ExchangeSix 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 buyerand seller increase perceived value of
exchange. extensive formal and informalcommunications
high interdependence planning
Relational exchange practiced between
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Market Embeddedness
The social ties between buyer and
seller increase the perceived valueof 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 concernedwith what is morallyright and wrong, goodand bad.
Free riding: exampleof 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 ones personal values in exchangefor 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 youwould expect others to act toward you.
professional ethic: take actions thatwould be viewed as proper by an
unbiased panel of colleagues. TV test: Would I feel comfortable
explaining my actions on nationaltelevision?
Kants categorical imperative: foregoacts, that if used as a universalprinciple of behavior, would result innegative 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 Marketers 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 ofthe below facets of the environment on thefirm.
situations
groups and families
culture
subculture cross cultural issues
regulatory environment
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Managerial Applications
Analysis (SPERM) Five factors to consider when usingconsumer behavior principles to develop
managerial strategy are: segmentation
positioning and differentiation
environmental analysis
marketing research
marketing mix