Chapter 1What is Consumer Behavior?Why did consumer behavior become a separate discipline from marketing?Other factors that contributed to the growing interest in consumer behaviorConsumer behavior is more than just purchasingEconomics alone does not explain consumer behaviorConsumer behavior is an Interdisciplinary FieldWhat Do Buying Decisions Involve?The Marketing ConceptTrends influencing consumer behavior in contemporary society1. Growth of the information superhighwaySlide 122. Focus on health, fitness, and beauty3. Shifting roles of men and womenSlide 154. Telecommuting and the office of the future5. Emphasis on leisure6. Concern About Personal Safety7. Diversity in the workplace and marketplaceSlide 20Slide 21Slide 228. Focus on ethicsSlide 249. Ecological consciousnessSlide 2610. The rise of the global villageSlide 28Introduction toIntroduction to Consumer Behavior Consumer BehaviorChapter 1Introduction to Consumer BehaviorWhat is Consumer Behavior?The study of how consumersSelectPurchaseUse Dispose ofgoods and services in the process of satisfying their personal and household needs and wants.Why did consumer behavior become a separate discipline from marketing?Marketers came to realize that consumers did not always act or react as marketing theory suggested they wouldConsumers rejected mass-marketed products, preferring differentiated products that reflected their own special needs, personalities and lifestylesEven in industrial markets, where needs are more homogeneous than consumer markets, buyers exhibited diversified preferences and less predictable purchase behaviorOther factors that contributed to the growing interest in consumer behaviorThe accelerated rate of new product developmentThe consumer movementPublic policy considerationsEnvironmental concernsThe opening of national markets throughout the worldConsumer behavior is more than just purchasingConsumer Behavior involvesExposure to the mediaBrowsingInfluencing othersBeing influenced by othersComplaining about and returning productsEconomics alone does not explain consumer behaviorEarly theories based on notion that individuals act rationally to maximize their benefits (satisfaction) from purchasingLater research discovered that consumers are just as likely to Purchase impulsivelyBe influenced by family, friends, advertisers and role modelsBe influenced just as strongly by mood, situation and emotionConsumer Behavior studiesConsumer behavior is an Interdisciplinary FieldPsychologySocial PsychologyEconomicsOther FieldsAnthropologyWhat Do Buying Decisions Involve?Decision entails determining:Where to learn about petsWhere to purchase the selected petHow much to pay for itWho will take care of itWhat supplies or services are needed for itWhere to purchase such supplies or servicesHow much to pay for supplies and servicesConsider a decision to acquire a petThe Marketing ConceptAn operating philosophy of business in which the consumer is the focal point of the firm’s activitiesEmbodies the view that industry is a customer-satisfying process, not a goods-producing process (the “selling concept”)Key assumption is that, to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competitionFocus on Health and BeautyThe Information SuperhighwayTrends influencing consumer behavior in contemporary societyShifting Roles of SexesTelecommutingPersonalized EconomyEmphasis on LeisureConcern about SafetyDiversityFocus on EthicsEcological ConsciousnessA Global VillageChanging Perception of Religion1. Growth of the information superhighwayPositive ImplicationsMarketers can be in touch with anyone, anywhere and at any timeAvailability of information increases consumers’ knowledge and power in the marketplace.Negative ImplicationsIncreased information about consumers raises serious privacy issuesCreation of a digital divide that further stratifies society based on wealth, education and age2. Focus on health, fitness, and beautyGolden opportunities are created for marketers of many products ranging from fat-free foods to vitamins, as well as for services ranging from plastic surgery to hair implants.3. Shifting roles of men and womenMore women in the workforceMore women in management positionsMore women raising children aloneGay and lesbian families changing the traditional model of the familyA redefinition of buying decision centers within the familyA redefinition of sales and advertising strategies4. Telecommuting and the office of the futureDecline in demand for products and services such as cars, public transportation, automobile insurance, car repair, child care, and baby-sitting servicesIncreased need for efficient package-delivery servicesRise in demand for state-of-the-art communication devices5. Emphasis on leisurePeople engage in leisure activities for different reasonsKnowing those reasons helps marketers select appropriate promotional appeals6. Concern About Personal SafetyEnhanced demand for defense-related productsPost 9/11 issues relating to travel7. Diversity in the workplace and marketplace“Traditional” minority groups in the US include:WomenAfrican-AmericansAsian-AmericansLatinosEven in “lily white” Vermont recent immigrant groups have included:Russian JewsBosniansTibetansVietnameseCongoleseSudaneseA salad bowl in which these diverse groups maintain elements of their traditionsDiversity offers divergent perspectives and enhanced creativity and innovation within the workplaceProduct adaptation becomes necessary to suit the tastes of distinct ethnic groupsPromotional appeals must be adjusted8. Focus on ethicsFor much of history, business ethics was considered an oxymoronIn the 1980’s, ethics became an issue with the discovery of numerous instances of corporate wrongdoingFord PintoBhopal disasterAsbestosTobaccoEthical codes were enacted by many companies and institutions and ethics became part of the curriculum of business schoolsIt is likely that ethics in marketing will receive greater attention from the public and from government and private watchdog groups9. Ecological consciousnessStudies show that:Consumers consider themselves “environmentalists”They have changed their habits to