Consumers Rule

1
Consumers Rule Chapter 1
2
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

3
Consumer Behavior is a Process
Figure 1.1 (Abridged)
4
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

5
Discuss Roles

• You are an actor/actress.
• Discuss one of your recent purchases. What does
  this purchase say about you?
• What roles did you play?
• Assume you are a single father of two elementary
  school children. Where do you shop for groceries
  and what do you buy?

6
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

7
Segmenting Consumers

• Market Segmentation
• Similar consumers
• Example Heavy Users of fast-food industry

8
Segmenting Consumers Demographics

• Age
• Gender
• Family Structure Marital Status
• Social Class Income
• Race Ethnicity
• Geography

9
Segmentation

• Abercrombie Fitch
• Vitamin Water
• Cingular Wireless
• Panera Bread
• Favorite Magazine

10
Segmenting Consumers Lifestyles

• Psychographics
• The way we feel about ourselves
• The things we value
• The things we do in our spare time

11
Relationship Marketing

• Success building lifetime relationships between
  brands and customers
• Regular interaction with customers
• Database Marketing

12
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

13
Bonding

• How do these brands help us bond?

14
Brand Relationship Types

• Self-Concept Attachment
• Nostalgic Attachment
• Interdependence
• Love

15
Relationships with Products

• Self-concept attachment Establish user identity
• Nostalgic attachment Product provides a link
  with the past
• Interdependence Product is part of the users
  daily routine
• Love Product elicits emotional bonds of warmth,
  passion, or other strong emotion

16
The Global Consumer

• Global Consumer Culture
• People united by common devotion to
• Brand name consumer goods
• Movie stars
• Celebrities
• Leisure activities
• Pressure to understand similarities and
  differences of customers in various countries

17
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

18
Favorite Website

• Name of website
• Frequency of visits
• What does this website communicate about you?

19
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

20
Manipulating Needs Wants

• Marketers tell people what they should want
• Marketerspace vs. Consumerspace
• Response Marketers recommend ways to satisfy
  basic biological needs

21
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

22
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

23
The Consumer Dark Side

• Consumer Terrorism
• Addictive Consumption
• Compulsive Consumption
• Consumed Consumers
• Illegal Activities

24
Study of Consumer Behavior

• Interdisciplinary Influences
• Many different perspectives/fields
• Consumer Behavior Employers
• Universities, manufacturers, museums, advertising
  agencies, and governments

25
Wheel of Consumer Behavior
Figure 1.3