solomon consumer beahvior

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    Consumers Rule

    Chapter 1

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    Factors in Consumer Behavior

    The story of Gail in the marketplace Demographics

    Psychographics

    Opinions and behaviors of others

    Market segmentation

    Targeting a brand only to specific groups of

    consumers rather than to everybody

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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 tosatisfy needs and

    desires

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    Consumer Behavior is a Process

    Figure 1.1 (Abridged)

    CONSUMERSPERSPECTIVE

    MARKETERSPERSPECTIVE

    PREPURCHASEISSUES

    How does a consumer

    decide about needing

    a product?

    How are consumer

    attitudes

    formed/changed?

    PURCHASEISSUES

    Is product acquisition

    a stressful or pleasant

    experience?

    How do situational

    factors affect

    purchase decision?

    POSTPURCHASEISSUES

    Does product provide

    pleasure or perform

    function? How is

    product disposed of?

    What determines

    customer satisfaction

    and repurchase?

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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

    Organization/group as consumer

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    Discussion

    People play different roles and theirconsumption behaviors may differ, depending onthe particular role they are playing. State

    whether you agree or disagree with thisperspective, giving examples from your personallife.

    Try to construct a stage set for a role you play

    specify the props, costumes, and script that you useto play a role (e.g., job interviewee, conscientiousstudent, party animal)

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    Consumers Impact

    Understanding consumer behavior is good

    business

    Understanding people/organizations to satisfy

    consumers needs

    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 Usersof

    fast-food industry

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    Segmenting Consumers:

    Demographics

    Age

    Gender

    Family Structure & Marital Status Social Class & Income

    Race & Ethnicity

    Geography

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    Discussion

    Name some products or services that arewidely used by your social group.

    State whether you agree or disagree with the

    notion that these products help to form groupbonds, supporting your argument withexamples from your list of products used by

    the group.

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    Segmenting Consumers: Lifestyles

    Psychographics

    The way we feel

    about ourselves

    The things we value

    The things we do in

    our spare time

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    Relationship Marketing

    Success = building lifetime relationships

    between brands and customers

    Regular interaction with customers

    Database Marketing

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    Marketings Impact on Consumers

    Marketers significantly influence the world

    and the information we learn!

    Advertisements, stores, and products

    communicate and persuade

    TOYMUSEUM.COM

    http://www.toymuseum.com/
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    The Meaning

    of 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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    Brand Relationship Types

    Self-Concept Attachment

    Nostalgic Attachment

    Interdependence Love

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    The Global Consumer

    Global ConsumerCulture People united by common

    devotion to:

    Brand name consumergoods

    Movie stars

    Celebrities

    Leisure activities

    Pressure to understandsimilarities anddifferences of customersin 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

    http://www.amazon.com/
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    Virtual Consumption (Contd)

    Wired Americans spend

    Less time with friends/family

    Less time shopping in stores

    More time working at home after hours

    But, many report that e-mail strengthens

    family ties

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    Marketing and Reality

    Blurred boundaries between marketing

    efforts and the real world

    Popular culture shaped by marketers

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    Marketing Ethics and Public Policy

    Business Ethics: rules of conduct that

    guide actions in the marketplace

    What is Right vs. Wrong

    Differs among people, organizations, and cultures

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    Discussion

    There is a computer gamecalled JFK Reloaded thatlets players reenact

    President Kennedysassassination.

    Have the games developers

    gone too far, or is any

    historical event fair game tobe adapted into anentertainment vehicle?

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    Marketing Ethics

    and Public Policy (contd)

    Consumers think better of products made

    by firms they feel behave ethically Marketing violators

    Mislabeling package contents Bait-and-switch selling strategy

    Alcohol/tobacco billboards in low-income

    neighborhoods

    RJRT.COM

    http://www.rjrt.com/
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    Manipulating Needs & Wants

    Marketers tell

    people what they

    should want

    Marketerspace vs.

    Consumerspace

    Response:

    Marketersrecommend ways tosatisfy basicbiological needs

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    Are Advertising &

    Marketing Necessary?

    Marketers foster materialism

    Response: Products are designed to meetexisting needs

    Economics of Information Perspective Discussion: do marketers have the ability

    to control our desires or the power tocreate needs? Is this situation changing as the Internet

    creates new ways to interact with companies?If so, how?

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    Do Marketers Promise Miracles?

    Advertising promises magical products

    Response: Advertisers simply do not knowenough about people to manipulate them

    Failure rate for new products = 40% to 80%

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    Public Policy & Consumerism

    Concern for the welfare of consumers

    Department of Agriculture

    Federal Trade Commission

    Food and Drug Administration

    Securities and Exchange Commission

    Environmental Protection Agency

    CPSC.GOV

    http://www.cpsc.gov/
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    Consumer Activism

    Adbusters: America = Corporate Brand

    Buy Nothing Day & TV Turnoff Week

    Culture Jamming

    Disrupt corporate efforts in cultural landscape

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    ADBUSTERS.ORG

    Adbusters Blackspot sneakers in response to Nikes unfair labor practices

    http://www.adbusters.org/
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    Consumer Activism (contd)

    Coordinated Consumer Protest

    Movements

    The Truth

    Save the Redwoods/Boycott the GAP (SRBG)

    Pittsburgh Coalition Against Pornography

    (PCAP)

    BEHINDTHELABEL.ORG

    http://www.behindthelabel.org/
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    Consumerism &

    Consumer Research

    JFKs Declaration of Consumer Rights

    (1962)

    The right to safety

    The right to be informed

    The right to redress

    The right to choice

    Social Marketing

    Green Marketing

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    The Consumer Dark Side

    Consumer Terrorism

    Addictive Consumption

    Compulsive Consumption Consumed Consumers

    Illegal Activities

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    Study of Consumer Behavior

    Interdisciplinary Influences

    Many different perspectives/fields

    Consumer Behavior Employers

    Universities, manufacturers, museums,

    advertising agencies, and governments

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    Figure 1.2 (Abridged)

    Exp Psych

    Clinic Psych

    Develop Psych

    Human EcologyMicroeconomics

    Social Psych

    Sociology

    Macroeconomics

    Semiotics/Literary Criticism

    Demography

    History

    Cultural Anthropology

    MICRO CONSUMER BEHAVIOR

    (INDIVIDUAL FOCUS)

    MACRO CONS BEHAV

    (SOCIAL FOCUS)

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    Strategic Focus

    The field of consumer behavior

    as an applied social science

    to understand consumption for its own sake

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    Perspectives on Consumer

    Research

    Positivism Function of

    objects/products

    Celebrate technology

    World as a rational,ordered place

    Interpretivism We each construct our

    own meanings Consumption of products

    = diverse experiences

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    Wheel of Consumer Behavior

    Figure 1.3