Consumer Behavior
The study of how people make decisions on what they buy, want, need, or use.
Consumer Behavior reflects
The totality of decisions (ex. what, why, etc), about the consumption (ex. acquisition, usage, disposition), of an offering (ex. products, services, experiences, etc), by decision-making units (ex. info gatherer, influencer, etc), overtime (ex. hours, days, etc)
Acquisition
Consumer comes to own an
offering
Usage
Consumer uses an offering
Disposition
Consumer discards an offering
How does acquisition, consumption, and disposition relate to marketing strategies and
tactics?
What Affects Consumer
Behavior?
- Psychological core
- Process of making decision
- Consumer’s culture
- Consumer behavior outcomes and issues
Psychological core
- Motivation, ability, and opportunity
- From exposure to comprehension
- Memory and knowledge
- Attitude formation and change
Process of making decision
- Problem recognition and information search
- Judgment and decision making
- Post-decision processes
- Process of making decision
Consumer’s culture
- Social influences on consumer behavior
- Consumer diversity
- Household and social class influences
- Psychographics: Values, personality, and lifestyle
Consumer behavior outcomes and issues
- Innovations: Adoption, resistance, and diffusion
- Symbolic consumer behavior
- Marketing, ethics, and social responsibility
Marketing
Activities, set of institutions, and processes
for creating, communicating, delivering, and
exchanging offerings that have value
Marketing Implications
of Consumer Behavior
**Developing or implementing customer-
oriented strategy
– Segmentation of the market
– Profitability of each segment
– Characteristics of consumers in each segment
– Customer satisfaction with existing offerings
**Selecting target market
**Developing products
– Consumer ideas for new products
– Attributes that can be added or changed in
existing products
– Branding of offering
– Appearance of package and logo
**Positioning decisions
– Positioning of competitive offerings
– Positioning of one’s own offerings
– Need for repositioning offerings
**Promotion and marketing communication
decisions
– Communication objectives
– Appearance of marketing communications
– Location, time, and effectiveness of
advertisement
– Sales promotion objectives and tactics
– Effectiveness of sales promotion
– Number of sales personnel required to best
serve customers
**Pricing decisions
– Price range of a product or service
– Consumer sensitivity to price and price
changes
– Pricing tactics be used
**Distribution decisions
– Time and convenience of consumers
– Assortment of merchandise
– Store design
