Consumers Rule

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Consumers Rule Chapter 1
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Factors in Consumer Behavior

• The story of Gail in the marketplace
• Demographics
• Psychographics
• Opinions and behaviors of others
• Market segmentation
• Targeting a brand only to specific groups of
  consumers rather than to everybody

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What is Consumer Behavior?

• The study of the processes involved when
  individuals or groups select, purchase, use, or
  dispose of products, services, ideas, or
  experiences to satisfy needs and desires

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Consumer Behavior is a Process
Figure 1.1 (Abridged)
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Actors in Consumer Behavior

• Consumer A person who identifies a need or
  desire, makes a purchase, and then disposes of
  the product
• Purchaser vs. user vs. influencer
• Organization/group as consumer

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Discussion

• People play different roles and their consumption
  behaviors may differ, depending on the particular
  role they are playing. State whether you agree or
  disagree with this perspective, giving examples
  from your personal life.
• Try to construct a stage set for a role you
  play specify the props, costumes, and script
  that you use to play a role (e.g., job
  interviewee, conscientious student, party animal)

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Consumers Impact

• Understanding consumer behavior is good business
• Understanding people/organizations to satisfy
  consumers needs
• Knowledge and data about customers
• Help to define the market
• Identify threats/opportunities to a brand

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Segmenting Consumers

• Market Segmentation
• Similar consumers
• Example Heavy Users of fast-food industry

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Segmenting Consumers Demographics

• Age
• Gender
• Family Structure Marital Status
• Social Class Income
• Race Ethnicity
• Geography

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Discussion

• Name some products or services that are widely
  used by your social group.
• State whether you agree or disagree with the
  notion that these products help to form group
  bonds, supporting your argument with examples
  from your list of products used by the group.

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Segmenting Consumers Lifestyles

• Psychographics
• The way we feel about ourselves
• The things we value
• The things we do in our spare time

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Relationship Marketing

• Success building lifetime relationships between
  brands and customers
• Regular interaction with customers
• Database Marketing

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Marketings Impact on Consumers

• Marketers significantly influence the world and
  the information we learn!
• Advertisements, stores, and products communicate
  and persuade

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The Meaningof Consumption

• People often buy products not for what they do,
  but for what they mean
• Brands
• Convey image/personality
• Define our place in modern society
• Help us to form bonds with others who share
  similar preferences

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Brand Relationship Types

• Self-Concept Attachment
• Nostalgic Attachment
• Interdependence
• Love

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The Global Consumer

• Global Consumer Culture
• People united by common devotion to
• Brand name consumer goods
• Movie stars
• Celebrities
• Leisure activities
• Pressure to understand similarities and
  differences of customers in various countries

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Virtual Consumption

• Impact of the Web on consumer behavior
• 24/7 shopping without leaving home
• Instantaneous access to news
• Handheld devices wireless communications
• C2C e-commerce
• Virtual brand communities.
• Consumer chat rooms

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Virtual Consumption (Contd)

• Wired Americans spend
• Less time with friends/family
• Less time shopping in stores
• More time working at home after hours
• But, many report that e-mail strengthens family
  ties

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Marketing and Reality

• Blurred boundaries between marketing efforts
  and the real world
• Popular culture shaped by marketers

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Marketing Ethics and Public Policy

• Business Ethics rules of conduct that guide
  actions in the marketplace
• What is Right vs. Wrong
• Differs among people, organizations, and cultures

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Discussion

• There is a computer game called JFK Reloaded that
  lets players reenact President Kennedys
  assassination.
• Have the games developers gone too far, or is
  any historical event fair game to be adapted
  into an entertainment vehicle?

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Marketing Ethicsand Public Policy (contd)

• Consumers think better of products made by firms
  they feel behave ethically
• Marketing violators
• Mislabeling package contents
• Bait-and-switch selling strategy
• Alcohol/tobacco billboards in low-income
  neighborhoods

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Manipulating Needs Wants

• Marketers tell people what they should want
• Marketerspace vs. Consumerspace
• Response Marketers recommend ways to satisfy
  basic biological needs

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Are Advertising Marketing Necessary?

• Marketers foster materialism
• Response Products are designed to meet existing
  needs
• Economics of Information Perspective
• Discussion do marketers have the ability to
  control our desires or the power to create needs?
• Is this situation changing as the Internet
  creates new ways to interact with companies? If
  so, how?

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Do Marketers Promise Miracles?

• Advertising promises magical products
• Response Advertisers simply do not know enough
  about people to manipulate them
• Failure rate for new products 40 to 80

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Public Policy Consumerism

• Concern for the welfare of consumers
• Department of Agriculture
• Federal Trade Commission
• Food and Drug Administration
• Securities and Exchange Commission
• Environmental Protection Agency

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Consumer Activism

• Adbusters America Corporate Brand
• Buy Nothing Day TV Turnoff Week
• Culture Jamming
• Disrupt corporate efforts in cultural landscape

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Adbusters Blackspot sneakers in response to
Nikes unfair labor practices
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Consumer Activism (contd)

• Coordinated Consumer Protest Movements
• The Truth
• Save the Redwoods/Boycott the GAP (SRBG)
• Pittsburgh Coalition Against Pornography (PCAP)

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Consumerism Consumer Research

• JFKs Declaration of Consumer Rights (1962)
• The right to safety
• The right to be informed
• The right to redress
• The right to choice
• Social Marketing
• Green Marketing

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The Consumer Dark Side

• Consumer Terrorism
• Addictive Consumption
• Compulsive Consumption
• Consumed Consumers
• Illegal Activities

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Study of Consumer Behavior

• Interdisciplinary Influences
• Many different perspectives/fields
• Consumer Behavior Employers
• Universities, manufacturers, museums, advertising
  agencies, and governments

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Figure 1.2 (Abridged)
MICRO CONSUMER BEHAVIOR (INDIVIDUAL FOCUS)

• Exp Psych
• Clinic Psych
• Develop Psych
• Human Ecology
• Microeconomics
• Social Psych
• Sociology
• Macroeconomics
• Semiotics/Literary Criticism
• Demography
• History
• Cultural Anthropology

MACRO CONS BEHAV (SOCIAL FOCUS)
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Strategic Focus

• The field of consumer behavior
• as an applied social science
• to understand consumption for its own sake

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Perspectives on Consumer Research

• Positivism
• Function of objects/products
• Celebrate technology
• World as a rational, ordered place
• Interpretivism
• We each construct our own meanings
• Consumption of products diverse experiences

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Wheel of Consumer Behavior
Figure 1.3