Aspects of Consumer Behavior

• Segmented by marketers by
Chapter 1 demographics
Consumers Rule • Influenced by peer groups
• Exposed to competing
brands seeking her loyalty
• Evaluates products by the
CONSUMER appearance, taste, texture,
BEHAVIOR smell

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Figure 1.1
What is Consumer Behavior? Stages in the Consumption Process

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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1
 Actors in Consumer Behavior Consumers’ Impact on Marketing
A consumer is a person Understanding consumer behavior is good
who identifies a need or business
desire, makes a • Understanding people/organizations to
purchase, and then satisfy consumers’ needs
disposes of the product.
• Knowledge and data about customers:
• Purchaser versus user
versus influencer • Help to define the market
• Identify threats/opportunities to a brand
• Organization/group as
consumer

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Segmenting Consumers: Demographics Segmenting Consumers: Lifestyles

Demographics:
Psychographics
statistics that measure
observable aspects of a • The way we feel
population, such as about ourselves
• Age • The things we
• Gender value
• Family structure • The things we do
• Social class/income in our spare time
• Race/ethnicity
• Geography
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2
 Tapping into Consumer Lifestyles The Meaning of Consumption
• Relationship marketing: interact with • People often buy products not for what they
customers regularly; give them reasons to do, but for what they mean
maintain a bond with the company • Consumers can develop relationships with
• Database marketing: tracking specific brands
consumers’ buying habits and crafting
products and messages tailored precisely
to people’s wants

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Marketing Ethics and Public Policy Marketing Ethics and Public Policy
• Business ethics: rules of conduct that guide • Ethics: are beliefs about what is right and wrong or good or
bad.
actions in the marketplace • Ethical Behavior: Behavior conforming to generally accepted
social norms concerning beneficial and harmful actions.
• Cultural differences in ethics: • Business Ethics: Ethical or Unethical behaviors by a manager
• U.S. Foreign Corrupt Practices Act or employer of an organization.
prohibits use of bribery by U.S. • Customers: treat them fairly and honesty by charging fair
prices, honor warranties, delivery commitments and stand
businesspeople—no matter where they’re behind the quality of the product they sell.
doing business • Responsibility Toward Customers: consumer rights (safe
products, informing customers about all aspects of products,
• Bribery commonly practiced in other right to be heard, right to choose what they buy), Unfair pricing
countries (illegal agreements between two or more companies) and
ethics in advertising.

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3
 Do Marketers Create Artificial Needs? Are Advertising & Marketing Necessary?
Objective of marketing: create awareness that
Does advertising foster materialism?
needs exist, not to create needs
• Products are designed to meet existing
• Need: a basic • Want: one way that needs;
versus
biological motive society has taught us
that the need can be
• Advertising only helps to communicate their
satisfied
availability

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Do Marketers Promise Miracles? Discussion

Advertisers are often blamed for promoting a
• Advertisers simply materialistic society by making their
do not know
products as desirable as possible.
enough about
people to • Do you agree with this?
manipulate them • If yes, is materialism a bad thing?
• If no, what are your reasons?

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