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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. 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)

  7. 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

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

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

  10. 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.

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

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

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

  14. 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

  15. Brand Relationship Types • Self-Concept Attachment • Nostalgic Attachment • Interdependence • Love

  16. 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

  17. 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

  18. 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

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

  20. 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

  21. 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?

  22. 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

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

  24. 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?

  25. 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%

  26. 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

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

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

  29. BEHINDTHELABEL.ORG Consumer Activism (cont’d) • Coordinated Consumer Protest Movements • The Truth • Save the Redwoods/Boycott the GAP (SRBG) • Pittsburgh Coalition Against Pornography (PCAP)

  30. Consumerism &Consumer Research • JFK’s “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

  31. The Consumer “Dark Side” • Consumer Terrorism • Addictive Consumption • Compulsive Consumption • Consumed Consumers • Illegal Activities

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

  33. 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)

  34. Strategic Focus • The field of consumer behavior… • …as an applied social science • …to understand consumption for its own sake

  35. 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

  36. Wheel of Consumer Behavior Figure 1.3

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