CHAPTER ONE

Consumer Behavior: Meeting Changes and Challenges

Consumer Behavior
The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.

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Chapter One Slide

Two Consumer Entities

Personal Consumer The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend. Organizational Consumer A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.
Chapter One Slide

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Development of the Marketing Concept

Production Orientation

Sales Orientation

Marketing Concept

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Chapter One Slide

Customer Value, Satisfaction, Trust, and Retention

Successful Relationships
Customer value High level of customer satisfaction Strong sense of customer trust Customer retention

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Chapter One Slide

Impact of Digital Technologies

Marketers Consumers

More products and services through customization Instantaneous exchanges Collect and analyze data

Power Information Computers, phones, PDA, GPS, smart TV

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Chapter One Slide

The Mobile Consumer

Wireless Media Messages will expand as:
Flat-rate data traffic increases Screen image quality is enhanced Consumer-user experiences with web applications improve
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Penetration of Internet Usage Among Mobile Subscribers in 16 Countries - FIGURE 1.3

Chapter One Slide

CHAPTER FOUR
Consumer Motivation

Motivation as a Psychological Force

Motivation is the driving force within individuals that impels them to action. Needs are the essence of the marketing concept. Marketers do not create needs but can make consumers aware of needs.

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Chapter Four Slide

Model of the Motivation Process Figure 4.2

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Chapter Four Slide

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Goals
The sought-after results of motivated behavior Generic goals are general categories of goals that consumers see as a way to fulfill their needs Product-specific goals are specifically branded products or services that consumers select as their goals

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Chapter Four Slide

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Arousal of Motives
Physiological arousal Emotional arousal Cognitive arousal Environmental arousal

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Chapter Four Slide

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Maslows Hierarchy of Needs Figure 4.10

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Chapter Four Slide

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A Trio of Needs
Power
individuals desire to control environment

Affiliation
need for friendship, acceptance, and belonging

Achievement
need for personal accomplishment closely related to egoistic and self-actualization needs
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CHAPTER FIVE
Personality and Consumer Behavior

Personality and The Nature of Personality

The inner psychological characteristics that both determine and reflect how a person responds to his or her environment The Nature of Personality:
Personality reflects individual differences Personality is consistent and enduring Personality can change

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Chapter Five Slide

Discussion Questions
How would you describe your personality? How does it influence products that you purchase?
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Chapter Five Slide

Theories of Personality
Freudian theory
Unconscious needs or drives are at the heart of human motivation

Neo-Freudian personality theory

Social relationships are fundamental to the formation and development of personality

Trait theory
Quantitative approach to personality as a set of psychological traits
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Chapter Five Slide

Freudian Theory
Id
Warehouse of primitive or instinctual needs for which individual seeks immediate satisfaction

Superego
Individuals internal expression of societys moral and ethical codes of conduct

Ego
Individuals conscious control that balances the demands of the id and superego
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Chapter Five Slide

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Neo-Freudian Personality Theory

Social relationships are fundamental to personality Alfred Adler:
Style of life Feelings of inferiority

Harry Stack Sullivan

We establish relationships with others to reduce tensions

Karen Horneys three personality groups

Compliant: move toward others Aggressive: move against others Detached: move away from others

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Chapter Five Slide

Trait Theory
Focus on measurement of personality in terms of traits Trait - any distinguishing, relatively enduring way in which one individual differs from another Personality is linked to broad product categories and NOT specific brands

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Chapter Five Slide

Personality and Understanding Consumer Behavior

Consumer innovativeness Dogmatism Social character

Need for uniqueness

Optimum stimulation level Varietynovelty seeking

Sensation seeking

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Chapter Five Slide

Self and Self-Image

Consumers have a variety of enduring images of themselves These images are associated with personality in that individuals consumption relates to self-image
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Chapter Five Slide

CHAPTER SIX
Consumer Perception

Perception
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world

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Chapter Six Slide

Perceptual Selection Important Concepts

Selective Exposure
Consumers seek out messages which: Are pleasant They can sympathize Reassure them of good purchases
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Selective Attention
Heightened awareness when stimuli meet their needs Consumers prefer different messages and medium

Perceptual Defense
Screening out of stimuli which are threatening

Perceptual Blocking
Consumers avoid being bombarded by: Tuning out TiVo

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Chapter Six Slide

Product Positioning
Establishing a specific image for a brand in the consumers mind in relation to competing brands Conveys the product in terms of how it fulfills a need Successful positioning creates a distinctive, positive brand image

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Chapter Six Slide

Positioning of Services
Image is a key factor for services Services often want a differentiated positioning strategy to market several versions of their service to different markets.

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Chapter Six Slide

Price/Quality Relationship
The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.)

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Chapter Six Slide

Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Types
Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk
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Chapter Six Slide

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CHAPTER SEVEN
Consumer Learning

Learning
The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior

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Chapter Seven Slide

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Classical Conditioning
A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone.
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Instrumental (Operant) Conditioning

A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) resulting from certain responses or behaviors.
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A Model of Instrumental Conditioning Figure 7.9

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Chapter Seven Slide

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Reinforcement of Behavior

Positive
Positive outcome Strengthen likelihood

Negative

Negative outcome Encourages behavior

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Chapter Seven Slide

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Reinforcement of Behavior
Extinction A learned response is no longer reinforced The link is eliminated between stimulus and reward Forgetting The reinforcement is forgotten

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Observational Learning (modeling or vicarious learning)

A process by which individuals learn behavior by observing the behavior of others and the consequences of such behavior
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