Consumer Behavior

Michael R. Solomon
9th edition

Course Requirements and Grading System

Quizzes Assignments Group presentation Project Midterm Final exam 5% 10% 5% 15% 30% 35%

The Plan of the Book

Consumers in the Market Place

Chapter One

What Is Consumer Behavior?

The Consumer Behavior Model

What is Consumer Behavior?

The expanded view of consumer behavior embraces much more than the study of what & why consumer buy; it also focuses on how marketers influence consumers.

What is Consumer Behavior?

Advertiser vs Consumer.FLV

Consumers Impact on Marketing Strategy

Consumer response is the ultimate test to whether a marketing strategy has succeeded. The marketer should incorporate knowledge of consumer into every aspect of a successful marketing strategy
Fun with iPhone 3G customers in Chicago - YouTube.FLV

Consumers Impact on Marketing Strategy

Consumers Are Different! How We Divide Them Up

Geographic Demographic Psychographic Behavioral

Consumers Impact on Marketing Strategy

Geographic

Country Region City Metro size Population density Climate

Consumers Impact on Marketing Strategy

Age

Demographic

Gender

Education

Consumers Impact on Marketing Strategy

Demographic
Family size

Occupation

Income

Consumers Impact on Marketing Strategy

Few financial commitment. Recreation and fashion oriented. Buys cars, entertainment items, and holidays. Better off financially. High purchase rate of consumer desirables. Buy cars, white goods and furniture. House buying is at peak. Liquid assets are low. Dissatisfied with level of savings and financial position. Buy medicine, toys, school tuition, and white goods. Home ownership is at peak. Financial situation, and savings have improved. Interest in travel, recreation, and selfeducation. Not interested in new products. Buy holidays, luxuries, and home improvements

Family lifecycle

Demographic

Consumers Impact on Marketing Strategy

Demographic
Race

Religion Nationality

Consumers Impact on Marketing Strategy

Psychographic
Social Classes
Upper-upper Lower-upper Middle Working Upper-lower Lower-lower

Life Style

Marketings Impact on Consumers

Popular Culture
Popular culture, which consists of music, sports, books, and other forms of entertainment that the mass market consumes, is both a product of and an inspiration for marketers. It also affects our lives in more far-reaching ways ranging from how we acknowledge cultural events to how we view social issues.

Marketings Impact on Consumers

Popular Culture
The cultural impact is hard to overlook; marketers not only influence consumers preferences but also attitude in different aspects of their life.

Marketings Impact on Consumers

Popular Culture & ConsumerGenerated Content
Consumer generated content,

where everyday people voice their opinions about products, brands, and companies on blogs and social networking by sharing their own experiences. This is changing the way consumer relate to pop cult because increasingly they view not just as consumers of culture but also as producers of culture.

The Scoop for 2007 The Customer will be Video Producer - YouTube.FLV

Marketings Impact on Consumers

The Global Consumer Culture
A global consumer culture

is one which unites people around the world by their common devotion to brand names, movie stars, celebrities, etc. Ubiquitous networks will surely become a part of us, indeed, our old model that requires us to sit in front of a screen to surf the net will soon disappear.
Visions of the Future - Ubiquitous Computing - YouTube.FLV

Marketings Impact on Consumers

Virtual Consumption & the Power of Crowds.
B2C e-commerce C2C e-commerce

Will the web bring people closer together or drive them into their own virtual world?

Marketing Ethics and Public Policy

Needs and Wants: Do Marketers Manipulate Consumers?
Marketing has always been defined in terms of satisfying customers needs and wants. Critics, however, maintain that marketing does much more than that and creates needs that did not exist before. According to critics, marketers encourage consumers to spend more money than they should on goods and services they really dont need. So do marketers create artificial needs?

Marketing Ethics and Public Policy

A need is a state of felt deprivation of some basic satisfaction.

Marketing Ethics and Public Policy

Wants are desires for specific satisfiers for these deeper needs shaped by culture and individual personality.

Marketing Ethics and Public Policy

Demands are wants for specific products that are backed by an ability and willingness to buy them.

Marketing Ethics and Public Policy

Points to Remember:
A need is a basic biological motive; a want represents one way that society has taught us to satisfy that need. Products are designed to meet existing needs, and advertising only helps to communicate their availability. Advertisers simply do not know nough about people to manipulate them.

The Dark Side of Consumer Behavior

Sometimes Consumers Worst Enemies Are Themselves
Consumers desires, choices, and actions often result in negative consequences to individuals and the society in which they live.

Walmart stampede - YouTube.FLV

The Dark Side of Consumer Behavior

Addictive Consumption
This is the physiological or

psychological depends on product or service. Consumer can use virtually any product or service to relieve some problem or satisfy some need to the point that reliance on it becomes extreme.
Chapstick Addiction - YouTube.FLV

Shopping Addiction Symptoms, Causes and Self-help - YouTube.FLV

The Dark Side of Consumer Behavior

Compulsive Consumption
Some consumers take the

expression born to shop literally. They shop because they are compelled to do so rather than because shopping is a pleasurable or a functional task. Compulsive consumption refers to excessive shopping as an antidote to tension, anxiety, depression or boredom.

True Life I'm A Compulsive Shopper - YouTube.FLV