Customer Behavior

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Customer Behavior Chapter 1 Nicole Howatt
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Consumer Behavior

• The process activities people engage in when
  searching for, selecting, purchasing, using,
  evaluating and disposing of products

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Consumers Impact onMarketing Strategy

• Market Segmentation
• Identifies groups of consumers who are similar to
  one another in one or more ways and then devises
  marketing strategies that appeal to one or more
  groups
• Demographics
• Statistics that measure observable aspects of a
  population

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What is consumer behavior?

• Activities people undertake when
• Obtaining products and services
• Consuming products and services
• Disposing of products and services

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CB Activities

• Obtaining Activities leading to purchase
• information search, evaluations, choice of retail
  store, payment, intended use, delivery
• Consuming
• usage pattern, function, extent of use
• Disposing

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Consumer Influences
Organizational Influences
Consuming
Disposing
Obtaining
Consumer Behavior
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Obtaining
Consuming
Disposing
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Consumer Influences
Organizational Influences
Culture Ethnicity Personality Values
Life-stage Family Income
Feelings Attitudes Opinions Available
Resources Motivations Past
Experiences Peer Groups Knowledge
Brand Product Features Advertising
Word of Mouth Promotions Retail
Displays Price Quality Service
Store Ambiance Convenience Loyalty
Programs Packaging Product Availability
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Determinants of CB

• Consumers are influenced by
• Situational factors
• Physical Surroundings
• Social Surroundings
• Time
• Purchase Reason
• Buyers Mood and Condition

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Determinants of CB

• Consumers are influenced by
• Psychological factors
• Perception
• Motives
• Learning
• Attitudes
• Personality and Self-concept
• Lifestyles

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Determinants of CB

• Consumers are influenced by
• Social factors
• Roles
• Family
• Reference Groups and Opinion Leaders
• Social Classes
• Culture and Subcultures

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Determinants of CB

• Consumers are influenced by
• Consumer variables
• Situational
• Psychological
• Social
• Organizational variables

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So, what are we looking at here?

• Historically, concern was with why consumers buy

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Evolution of CB

• Manufacturing capacity increases
• Competition increases
• Discerning consumers
• Move from selling orientation to marketing
  orientation
• Consumerism movement

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Studying CB-Interdisciplinary Influences
Experimental Psychology Clinical
Psychology Developmental Psychology Human
Ecology Microeconomics Social Psychology Sociology
Macroeconomics Semiotics/Literary
Criticism Demography History Cultural Anthropology
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Why Study Consumer Behavior?

• Its not easy
• Identify similar groups and devise marketing mix
  to appeal to group
• Firms need/want to
• Predict behavior
• Influence behavior
• Learn from potential consumers
• Educate consumers
• Consumers have influence
• Protect consumers-Public Policy

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The Dark Side of Consumer Behavior

• Addictive Consumption

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Social Marketing and Culture Jamming
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Conclusion

• The consumer is the new focus
• The consumer is king!!!