What does the study of consumer behavior consider?
Consumer behavior - is 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.
Is it a multi-dimensional field
• Yes, consumer Behavior is an interdisciplinary (relating to more than one branch of knowledge)
field that incorporates the theories found in psychology, sociology, communication, etc.
• Researchers from many fields who share interest in how people interact with the marketplace
• Macro and micro
What time frame in the purchase process of a consumer does it cover? Know the process involved
from both the consumer's and the marketer's perspective
A consumer is a person who identifies a need or desire, makes a purchase, and then disposes of the
product during the three stages of the consumption process. In many cases, however, different people play
a role in this sequence of events. The purchaser and user of a product might not be the same person, as
when a parent picks out clothes for a teenager (and makes selections that can result in “fashion suicide” in
the view of the teen). In other cases, another person may act as an influencer when he or she recommends
certain products without actually buying or using them. A friend’s grimace when you try on that new pair
of pants may be more influential than anything your mother might say.
Who is a consumer?
A person who identifies a need or desire, makes a purchase, or disposes a product.
What is an exchange?
,A transaction in which two or more organizations or people give and receive something of value.
Brand loyalty:
Repeat purchase behavior that reflects a conscious decision to continue buying the same brand.
What are demographics?
The observable measurements of a population’s characteristics such as birth rate, income, and age
distribution.
Psychographics?
The use of psychological, sociological, and anthropological factors to construct market segments.
interests, activities, and opinions
the study and classification of people according to their attitudes, aspirations, and other psychological
criteria, especially in market research.
Know what consumption communities are (hint: how has the internet facilitated the growth of
these?)
Web groups where members share views and product recommendations online.
The internet has played a key role in the growth of consumption communities. These are groups of people
who share similar consumption habits. This can include items such as food, fashion, and cosmetics. The
internet has provided a platform for people to connect with others who have similar interests. This has led
to the formation of online communities where members can share information and advice on topics
related to their shared interests.
The growth of consumption communities has also been facilitated by social media platforms such as
Instagram and YouTube. These platforms provide a way for people to share photos and videos of their
everyday lives. This can include what they are eating, what they are wearing, and what products they are
using. This type of content is often shared amongst members of a consumption community, and it can be
used to discover new products and trends.
Ex: tech youtubers discuss new iphone upgrades and devices on twitter
80/20 rule
A rule of thumb in volume segmentation, which says that about 20 percent of consumers in a product
category (the heavy users) account for about 80 percent of sales.
Ex: A study of 54 million shoppers reported that only 2.5 percent of consumers account for 80 percent of
sales for the average packaged- goods brands.
heavy users of a product
A name companies use to identify their customers who consume their products in large volumes.
User-generated content - how does this impact consumption?
Consumers voice their opinions about products, brands, and companies on blogs, podcasts, and social
networking sites such as Facebook and Twitter, and film their own commercials that they post on sites
such as YouTube.
,It holds more influence over their buying decisions than promotional emails and even search engine
results.
Seeing content from real customers increases your credibility and brings your brand's promises into
perspective. Brands make certain promises to their customers or audience.
Are you a digital native? What does this mean?
Young people who have grown up with computers and mobile technology; multitaskers with cell phones,
music downloads, and instant messaging on the Internet; people who are comfortable communicating
online and by text and IM rather than by voice.
Yes, I was born in 2001 and grew up in the 2000’s where computers, phones, cd players, etc were starting
to get popular.
What are the stages of the consumption process?
What is the marketing concept?
Organizations exist to satisfy needs. Marketers can satisfy these needs only to the extent that they
understand the people or organizations that will use the products and services they sell.
How does lifestyle impact marketers' segmentation? Marital status? Age? Gender? Lifestyle?
Marketing segmentation strategies aim to target a brand only to specific groups of consumers who share
relevant and well-defined and relevant characteristics. Segmented according to categories below.
Come from assumptions about what will appeal to each gender. Ex: When microwaves first appeared in
stores, they were alongside TVs and radios and marketed almost exclusively to men. When companies
assumed that these products would only appeal to men they started making them in masculine colors.
Consumers of different age groups have different needs and wants. Glossier marketing on social media
platforms to cater to younger generations.
, Marital status and family structure has a huge effect on consumers’ spending priority. Ex: young
bachelors and newlyweds are most likely to exercise; go to bars, concerts, and movies; and consume
alcohol. Families with children are big purchasers of healthy foods and fruit juices.
Single-parent households and those with older children buy junk food
Couples and bachelors home maintenance services
Social income and class is of great interest to marketers because it determines which groups have the
greatest buying power and potential market.
We all have different lifestyles even if we share same demographic characteristics like age or gender. The
way we feel about ourselves, the things we value, the things we like to do in our spare time help
determine which products we go for.
Ex: Procter and Gamble developed heartburn medication Prilosec OTC with an ideal customer in mind
based on lifestyle analysis.
Even if it means that other consumers who don’t belong to this target market aren’t attracted to it.
Ex: chocolate+vanilla ice cream, bacon flavor ice cream
What does popular culture include
The music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass
market.
Ex: corsets, marvel, mini bags, kpop groups, cosplay, septums, superbowl
Do you have a self-concept attachment to a product? Nostalgic? Interdependence?
Yes, Paula’s choice skincare, black soap, and cetaphil moisturizer because it helps my skin a lot from ever
since I was younger. (Interdependence)
Self-concept attachment – the product helps to establish the user’s identity (waist beads, gold jewelry,
braiding hair)
Nostalgic attachment – the product serves as a link with a past self (ensure, captain crunch, jumbo fluffy
teddy bears)
Interdependence – the product is a part of the user’s daily routine
Define role theory?
The perspective that much of consumer behavior resembles actions in a play
a concept in that considers most everyday activity to be the acting-out of socially defined categories (e.g.,
mother, manager, teacher). Each role is a set of rights, duties, expectations, norms, and behaviors that a
person has to face and fulfil.
As consumers we seek the lines, props, and costumes necessary to put on a good performance. Because
people act out many roles, they sometimes alter their consumption decisions depending on the particular
“play” they are in at the time. The criteria they use to evaluate products and services in one of their roles
may be quite different from those they use in other roles. That’s why it’s important for marketers to
provide each of us “actors” with the props we need to play all of our varied roles.
Consumer behavior - is 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.
Is it a multi-dimensional field
• Yes, consumer Behavior is an interdisciplinary (relating to more than one branch of knowledge)
field that incorporates the theories found in psychology, sociology, communication, etc.
• Researchers from many fields who share interest in how people interact with the marketplace
• Macro and micro
What time frame in the purchase process of a consumer does it cover? Know the process involved
from both the consumer's and the marketer's perspective
A consumer is a person who identifies a need or desire, makes a purchase, and then disposes of the
product during the three stages of the consumption process. In many cases, however, different people play
a role in this sequence of events. The purchaser and user of a product might not be the same person, as
when a parent picks out clothes for a teenager (and makes selections that can result in “fashion suicide” in
the view of the teen). In other cases, another person may act as an influencer when he or she recommends
certain products without actually buying or using them. A friend’s grimace when you try on that new pair
of pants may be more influential than anything your mother might say.
Who is a consumer?
A person who identifies a need or desire, makes a purchase, or disposes a product.
What is an exchange?
,A transaction in which two or more organizations or people give and receive something of value.
Brand loyalty:
Repeat purchase behavior that reflects a conscious decision to continue buying the same brand.
What are demographics?
The observable measurements of a population’s characteristics such as birth rate, income, and age
distribution.
Psychographics?
The use of psychological, sociological, and anthropological factors to construct market segments.
interests, activities, and opinions
the study and classification of people according to their attitudes, aspirations, and other psychological
criteria, especially in market research.
Know what consumption communities are (hint: how has the internet facilitated the growth of
these?)
Web groups where members share views and product recommendations online.
The internet has played a key role in the growth of consumption communities. These are groups of people
who share similar consumption habits. This can include items such as food, fashion, and cosmetics. The
internet has provided a platform for people to connect with others who have similar interests. This has led
to the formation of online communities where members can share information and advice on topics
related to their shared interests.
The growth of consumption communities has also been facilitated by social media platforms such as
Instagram and YouTube. These platforms provide a way for people to share photos and videos of their
everyday lives. This can include what they are eating, what they are wearing, and what products they are
using. This type of content is often shared amongst members of a consumption community, and it can be
used to discover new products and trends.
Ex: tech youtubers discuss new iphone upgrades and devices on twitter
80/20 rule
A rule of thumb in volume segmentation, which says that about 20 percent of consumers in a product
category (the heavy users) account for about 80 percent of sales.
Ex: A study of 54 million shoppers reported that only 2.5 percent of consumers account for 80 percent of
sales for the average packaged- goods brands.
heavy users of a product
A name companies use to identify their customers who consume their products in large volumes.
User-generated content - how does this impact consumption?
Consumers voice their opinions about products, brands, and companies on blogs, podcasts, and social
networking sites such as Facebook and Twitter, and film their own commercials that they post on sites
such as YouTube.
,It holds more influence over their buying decisions than promotional emails and even search engine
results.
Seeing content from real customers increases your credibility and brings your brand's promises into
perspective. Brands make certain promises to their customers or audience.
Are you a digital native? What does this mean?
Young people who have grown up with computers and mobile technology; multitaskers with cell phones,
music downloads, and instant messaging on the Internet; people who are comfortable communicating
online and by text and IM rather than by voice.
Yes, I was born in 2001 and grew up in the 2000’s where computers, phones, cd players, etc were starting
to get popular.
What are the stages of the consumption process?
What is the marketing concept?
Organizations exist to satisfy needs. Marketers can satisfy these needs only to the extent that they
understand the people or organizations that will use the products and services they sell.
How does lifestyle impact marketers' segmentation? Marital status? Age? Gender? Lifestyle?
Marketing segmentation strategies aim to target a brand only to specific groups of consumers who share
relevant and well-defined and relevant characteristics. Segmented according to categories below.
Come from assumptions about what will appeal to each gender. Ex: When microwaves first appeared in
stores, they were alongside TVs and radios and marketed almost exclusively to men. When companies
assumed that these products would only appeal to men they started making them in masculine colors.
Consumers of different age groups have different needs and wants. Glossier marketing on social media
platforms to cater to younger generations.
, Marital status and family structure has a huge effect on consumers’ spending priority. Ex: young
bachelors and newlyweds are most likely to exercise; go to bars, concerts, and movies; and consume
alcohol. Families with children are big purchasers of healthy foods and fruit juices.
Single-parent households and those with older children buy junk food
Couples and bachelors home maintenance services
Social income and class is of great interest to marketers because it determines which groups have the
greatest buying power and potential market.
We all have different lifestyles even if we share same demographic characteristics like age or gender. The
way we feel about ourselves, the things we value, the things we like to do in our spare time help
determine which products we go for.
Ex: Procter and Gamble developed heartburn medication Prilosec OTC with an ideal customer in mind
based on lifestyle analysis.
Even if it means that other consumers who don’t belong to this target market aren’t attracted to it.
Ex: chocolate+vanilla ice cream, bacon flavor ice cream
What does popular culture include
The music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass
market.
Ex: corsets, marvel, mini bags, kpop groups, cosplay, septums, superbowl
Do you have a self-concept attachment to a product? Nostalgic? Interdependence?
Yes, Paula’s choice skincare, black soap, and cetaphil moisturizer because it helps my skin a lot from ever
since I was younger. (Interdependence)
Self-concept attachment – the product helps to establish the user’s identity (waist beads, gold jewelry,
braiding hair)
Nostalgic attachment – the product serves as a link with a past self (ensure, captain crunch, jumbo fluffy
teddy bears)
Interdependence – the product is a part of the user’s daily routine
Define role theory?
The perspective that much of consumer behavior resembles actions in a play
a concept in that considers most everyday activity to be the acting-out of socially defined categories (e.g.,
mother, manager, teacher). Each role is a set of rights, duties, expectations, norms, and behaviors that a
person has to face and fulfil.
As consumers we seek the lines, props, and costumes necessary to put on a good performance. Because
people act out many roles, they sometimes alter their consumption decisions depending on the particular
“play” they are in at the time. The criteria they use to evaluate products and services in one of their roles
may be quite different from those they use in other roles. That’s why it’s important for marketers to
provide each of us “actors” with the props we need to play all of our varied roles.
