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solomon01im
CHAPTER
CONSUMERSRULE
1
CHAPTERSUMMARY
Asstudentswillsoonsee,thefieldofconsumerbehaviorcoversalotofground.WhethertheconsumerisonashoppingtriptothemallorsurfingontheInternet,generalprinciplesandtheoriesofconsumerbehaviorapply.Theformaldefinitionofconsumerbehaviorusedinthetextis“thestudyoftheprocessesinvolvedwhenindividualsorgroupsselect,purchase,use,ordisposeofproducts,services,ideas,orexperiencestosatisfyneedsanddesires.”
Consumerscanbeseenasactorsonthemarketplacestage.Asinaplay,eachconsumerhaslines,props,andcostumesthatarenecessarytoputonagoodperformance.Therolesthatconsumersperformareamongthemostimportantelementstobestudiedinconsumerbehavior.Consumerbehaviorisalsoaneconomicprocesswhereexchangestakeplace.Theseexchangesofteninvolvemanyplayers.Infact,consumersmayeventaketheformoforganizationsorgroups.Whateverthecomposition,thedecisionsmadebytheconsumerandtheseotherplayersarecriticaltoanexchangebeingcarriedoutsuccessfullytothebenefitofallconcernedparties.
Marketsegmentationisanimportantaspectofconsumerbehavior.Consumerscanbesegmentedalongmanydimensions.Onesuchdimensionisdemographics(thestatisticsthatmeasuretheobservableaspectsofapopulation,suchasageorbirthrate).Oneoftheimportantreasonsforsegmentingmarketsistobeabletobuildlastingrelationships(relationshipmarketing)withthecustomers.Marketersarecurrentlyimplementingmanypracticesthatseektoaidinformingalastingbondwiththeoftenfickleconsumer.Oneofthemostpromisingofthesepracticesisdatabasemarketingwhereinconsumers’buyinghabitsaretrackedveryclosely.Theresultofthispracticeisthatproductsandmessagescanbetailoredtopeople’swantsandneeds.
Forbetterorforworse,weallliveinaworldthatissignificantlyinfluencedbytheactionsofmarketers.Marketersfiltermuchofwhatwelearn.Therefore,consumerbehaviorisaffectedbytheactionsofmarketers.Domesticandglobalconsumptionpracticesareexaminedinthischapterwithaneyetowardtheroleofthemarketerandtheinfluenceofsuchsocialvariablesasculture.
Thefieldofconsumerbehavioranditsapplicationisnot,however,withoutitscritics.Ethicalpracticestowardtheconsumerareoftendifficulttoachieve.“Domarketersmanipulateconsumers?
”isaseriousquestion.Perhapstheanswermaybefoundbyexaminingseveralsecondaryquestionssuchas:
“Domarketerscreateartificialneeds?
”“Areadvertisingandmarketingnecessary?
”or“Domarketerspromisemiracles?
”Theresponsestothesequestionsareformulatedinthischapter.
Astherewasa“DarkForce”intheStarWarstrilogy,consumerbehaviormayalsohaveadarkside.Excesses,illegalactivities,andeventheftarenotuncommon.Ethicalpracticesdoofferpositivesolutions,however,tomostoftheseproblems.
Thechapterconcludesbyprovidingaglimpseofconsumerbehaviorasafieldofstudyandprovidesaplanforstudyofthefield.Simpledecisions(buyingacartonofmilk)versuscomplexdecisions(selectionofacomplexnetworkedcomputersystem)canallbeexplainedifconsumerbehaviorisstudiedcarefullyandcreatively.Strategicfocusandsoundconsumerresearchseemtobeamongseveraltoolsthatcanprovidetheguidinglightthatisprobablynecessaryinourcomplexandever-changingworld.
LectureSuggestions:
(a)Thefollowingoutlinecloselyfollowstheoutlineinthetext;(b)Inaregularitalicsboxyouwillfindsuggestionsthatshouldhelpgetadiscussionstarted;(c)Inabolditalicsbox(indicatedwith*****),youwillfindreferencenotationstotheFiguresandConsumerBehaviorChallengequestionsthathavebeenplacedintheoutlinewheretheyarerelevanttothechaptercontent;(d)Youwillfindspecialboxedinsertsthatrefertointerestingconsumerbehaviorfactsthatmightbeusedtomakeorenhanceapoint(EndNotesareprovidedattheendofeachchapterintheInstructor’sResourceManual).Becauseitisvirtuallyimpossibletodoeverythingthatisincludedhereinyourcourse,agoodwaytousethisChapterOutlineistohighlightwithamagicmarkertheportionsoftheoutlineyouwouldliketouseinclass,thequestionsyouwouldliketopose,andtheancillarymaterialsyouwillneed.Thishelpstomakeaclassflowmoresmoothly.Lastly,itisadvisedthattheinstructorassignanyoftheindividualorgroupprojectsinadvanceoftopiccoverage.Inthisway,ashortlivelydiscussioncanbeinitiated.
CHAPTEROUTLINE
1.ConsumerBehavior:
PeopleintheMarketplace
a.Theaverageconsumercanbeclassifiedandcharacterizedonthebasisof:
1)Demographics—age,sex,income,oroccupation.
2)Psychograpics—referstoaperson’slifestyleandpersonality.
b.Theaverageconsumer’spurchasedecisionsareheavilyinfluencedbytheopinions
andbehaviorsoftheirfamily,peers,andacquaintances.
1)ThegrowthoftheWebhascreatedthousandsofonlineconsumption
communitieswheremembersshareviewsandproductrecommendations.
2)Groupsexertpressuretoconform.
c.Asamemberofalargesociety,U.S.consumerssharecertainculturalvaluesor
stronglyheldbeliefsaboutthewaytheworldshouldbestructured.
1)Someofthevaluesarebasedonsubcultures(suchasHispanicsorteens).
d.Theuseofmarketsegmentationstrategiesmaybeusedtotargetabrandtoonly
specificgroupsofconsumersratherthantoeverybody.
e.Brandsoftenhaveclearlydefinedimagesor“personalities”createdbyproduct
advertising,packaging,branding,andothermarketingstrategiesthatfocuson
positioningaproductinacertainway.
f.Whenaproductsucceedsinsatisfyingaconsumer’sspecificneedsordesires,it
mayberewardedwithmanyyearsofbrandloyalty.
1)Thisbondisoftendifficultforcompetitorstobreak.
2)Achangeinone’slifesituationorself-concept,however,canweakenthe
bond.
g.Consumers’evaluationsofproductsareaffectedbytheirappearance,taste,texture,
orsmell.
1)AgoodWebsitehelpspeopletofeel,taste,andsmellwiththeireyes.
2)Aconsumermaybeswayedbytheshapeandcolorofapackage,symbolism
usedinabrandname,oreveninthechoiceofacovermodelforamagazine.
h.Inamodernsense,aninternationalimagehasanappealtomanyconsumers.
Increasingly,consumersopinionsanddesiresareshapedbyinputfromaroundthe
world.
WhatIsConsumerBehavior?
i.Consumerbehavioristhestudyoftheprocessesinvolvedwhenindividualsor
groupsselect,purchase,use,ordisposeofproducts,services,ideas,orexperiences
tosatisfyneedsanddesires.
1)Consumersareactorsonthemarketplacestage.
a)Theperspectiveofroletheorytakestheviewthatmuchofconsumer
behaviorresemblesactionsinaplay.
DiscussionOpportunity—Askstudentstoconsiderandevenwritedownsomeoftherolestheyplayinlife.Havethemalsoconsideriftheyweretodescribethemselvesasafamousactororactress,whowouldtheybe?
Askstudentstosharewhattheyhavewritten,followedbythequestion,“Whatdoestheactororactressyouhaveselectedhavetodowiththerolesyouplayinlife?
”
b)Peopleactoutmanyrolesandsometimesconsumptiondecisionsareaffected.
c)Evaluationcriteriamaychangedependingonwhichroleinthe“play”
aconsumerisfollowing.
2)Consumerbehaviorisaprocess.
a)Mostmarketersrecognizethatconsumerbehaviorisanongoingprocess,
notmerelywhathappensatthemomentaconsumerhandsovermoneyor
acreditcardandinturnreceivessomegoodorservice.
b)Theexchange—atransactionwheretwoormoreorganizationsorpeople
giveandreceivesomethingofvalue—isanintegralpartofmarketing.
1.Theexpandedviewemphasizestheentireconsumptionprocess.
2.Thisviewwouldincludeissuesthatinfluencetheconsumerbefore,
during,andafterapurchase.
*****UseFigure1-1Here;UseConsumerBehaviorChallenge#5Here*****
3)Consumerbehaviorinvolvesmanydifferentactors.
a)Aconsumerisgenerallythoughtofasapersonwhoidentifiesaneedor
desire,makesapurchase,andthendisposesoftheproductduringthe
threestagesintheconsumptionprocess.
b)Thepurchaseranduserofaproductmightnotbethesameperson.
c)Aseparatepersonmightbeaninfluencer.Thispersonprovides
recommendationsfororagainstcertainproductswithoutactuallybuying
orusingthem.
d)Consumersmaybeorganizationsorgroups(inwhichonepersonmay
makethedecisionforthegroup).
*****UseConsumerBehaviorChallenge#1Here*****
2.Consumers’ImpactonMarketingStrategy
a.Understandingconsumerbehaviorisgoodbusiness.Abasicmarketingconcept
statesthatfirmsexisttosatisfyconsumers’needs.
1)Consumerresponseistheultimatetestofwhetheramarketingstrategywillsucceed.
2)Dataaboutconsumershelpsorganizationstodefinethemarketandtoidentify
threatsandopportunitiestoabrand.
SegmentingConsumers
b.Theprocessofmarketsegmentationidentifiesgroupsofconsumerswhoare
similartooneanotherinoneormorewaysandthendevisesstrategiesthat
appealtooneormoregroups.Therearemanywaystosegmentamarket.
1)Companiescandefinemarketsegmentsbyidentifyingtheirmostfaithful,core
customersorheavyusers.
2)Demographicsarestatisticsthatmeasureobservableaspectsofapopulation,
suchasbirthrate,agedistribution,andincome.
a)TheU.S.CensusBureauisamajorsourceofdemographicdataonfamilies.
3)Importantdemographicdimensionsinclude:
a)Age
b)Gender
c)Familystructure