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Consumers Rule Chapter 1

Consumers Rule Chapter 1. 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. What is Consumer Behavior?.

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Consumers Rule Chapter 1

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  1. Consumers Rule Chapter 1

  2. 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

  3. 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

  4. Consumer Behavior is a “Process” Figure 1.1 (Abridged)

  5. 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

  6. Segmenting Consumers • Market Segmentation • Similar consumers • Example: “Heavy Users”of fast-food industry

  7. Market Segmentation Finely-tuned marketing segmentation strategies allow marketers to reach only those consumers likely to be interested in buying their products.

  8. Segmenting Consumers: Demographics • Age • Gender • Family Structure & Marital Status • Social Class & Income • Race & Ethnicity • Geography

  9. A Lesson Learned • Nike was forced to pull this advertisement for a running shoe after disabilities rights groups claimed the ads were offensive. • How could Nike have done a better job of getting its message across without offending a powerful demographic?

  10. Segmenting Consumers: Lifestyles • Psychographics • The way we feel about ourselves • The things we value • The things we do in our spare time

  11. Relationship Marketing • Success = building lifetime relationships between brands and customers • Regular interaction with customers • Database Marketing

  12. Marketing’s Impact on Consumers • Marketers significantly influence the world and the information we learn! • Advertisements, stores, and products communicate and persuade

  13. 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

  14. CLICK ON LOGO TO SEE VIDEO ABOUT CONSUMERS’ LOVE OF HARLEY DAVIDSON Brand Relationship Types • Self-Concept Attachment • Nostalgic Attachment • Interdependence • Love

  15. 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

  16. AMAZON.COM 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

  17. Virtual Consumption (Cont’d) • “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

  18. Marketing and Reality • “Blurred boundaries” between marketing efforts and “the real world” • Popular culture shaped by marketers

  19. 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

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

  21. RJRT.COM Marketing Ethicsand Public Policy (cont’d) • 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

  22. Needs and Wants:Do Marketers Manipulate Consumers? • Consumerspace • Do marketers create artificial needs? • Need: A basic biological motive • Want: One way that society has taught us that need can be satisfied • Are advertising and marketing necessary? • Economics of information perspective: Advertising is an important source of consumer information. • Do marketers promise miracles? • Advertisers simply don’t know enough to manipulate people.

  23. Manipulating Needs & Wants • Marketers tell people what they should want • Marketerspace vs. Consumerspace • Response: Marketers recommend ways to satisfy basic biological needs

  24. CPSC.GOV 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

  25. Consumer Activism • Adbusters: America = Corporate Brand • Buy Nothing Day & TV Turnoff Week • Culture Jamming • Disrupt corporate efforts in cultural landscape

  26. ADBUSTERS.ORG Adbusters’ Blackspot sneakers in response to Nike’s unfair labor practices

  27. Consumer Related Issues • UNICEF sponsored this advertising campaign against child labor. The field of consumer behavior plays a role in addressing important consumer issues such as child exploitation.

  28. The Dark Side of Consumer Behavior • Consumer Terrorism: • An example: Susceptibility of the nation’s food supply to bioterrorism • Addictive Consumption: • Consumer addiction: • A physiological and/or psychological dependency on products or services • Compulsive Consumption: • Repetitive shopping as an antidote to tension, anxiety, depression, or boredom

  29. The Dark Side of Consumer Behavior (cont.) • Consumed Consumers: • People who are used or exploited, willingly or not, for commercial gain in the marketplace • Illegal Activities: • Consumer Theft: • Shrinkage: The industry term for inventory and cash losses from shoplifting and employee theft • Anticonsumption: • Events in which products and services are deliberately defaced or mutilated

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

  31. 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)

  32. Journal of Consumer Research

  33. Wheel of Consumer Behavior Figure 1.3

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