MKT 3020 Consumer Behavior Chapter 1 Consumer Behavior Perspectives 1 Human Thought and Action a Actions reactions and consequences b Decision making and product use 2 Field of Study a Knowledge accumulated in explaining the actions reactions and consequences Consumer Behavior as Human Behavior set of value seeking activities that take place as people go about addressing and attempting to address realized needs Ex If you buy Axe products you will have sex Consumption process by which goods services or ideas are used and transformed into value Ex Actually using the Axe instead of just obtaining buying the product Basic Consumption Process acting out on the decision to give something up time Need Want addressing a recognized need Exchange money effort in return for something of greater value Costs and Benefits Reaction Value good or bad purchase defined by the consumer negative or positive results of consumption Understand consumer behavior as a field of study CB is a very young field with textbooks only dating back to the 1960 s CB knowledge is growing at a fast pace Consider these questions when looking at competition in the marketplace 1 How competitive is the marketing environment 2 How dependent is the marketer on repeat business The greater the competitiveness and dependency the better the consumers are treated generally Ex Department of Motor Vehicles no competition and not dependent on repeat business Consumer Orientation a business s priority is consumer value and satisfaction Market Orientation organizational culture emphasizing consumer value Stakeholder Marketing recognizes that all stakeholders are involved in and or affected by the firm s marketing in some way Relationship Marketing a firm s marketing activities aim to increase repeat business Touchpoints direct contacts between the firm and a customer Why study Consumer Behavior 1 Input to business and marketing strategy 2 Force that shapes society Ex Valentine s Day expressing love through consumption 3 Input to making responsible decisions as a consumer Walking out of a store and asking yourself why you bought this product Why do people buy Product potentially valuable bundle of benefits Focusing on the value the customer receives rather than the product itself Consumer Behavior and Society CB creates the society we live in CB serves as a source of input to public policy Consumer Behavior and Personal Growth CB helps consumers make better decisions by understanding consequences of 1 poor budgeting 2 role of emotions 3 social influences and 4 environmental effects Approaches to studying Consumer Behavior 1 Qualitative Research Interpretive research Underlying meanings and motivations Researcher is independent from study 2 Quantitative Research Numerical research Allows researchers to test a hypothesis Researcher is dependent from study Qualitative Research Types 1 In depth Interviews 2 Focus Groups 3 Ethnography one on one interview between researcher and similar to an interview but with several people at a First hand observation of daily participation where informant regarding detailed information about the informant s thoughts and behavior time participation is key relies on interpretation or artifacts to draw conclusions about consumption detect the strength of a person s automatic association between mental representation of objects concepts in memory something observing and participating with groups online Similar to ethnography however it is conducted by a measure within social psychology designed to Learn about hidden emotions about 5 Projective Techniques 4 Association Tests 6 Netnography Quantitative Research Types 1 Surveys 2 Experiments 3 Database Mining 4 Structural Equation Modeling surveys with a manipulation Consumer Behavior s Current Trends that make CB dynamic 1 Internationalization 2 Changes in Technology 3 Changing Communication 4 Changing Demographics 5 Changing Economy