,SOLUTION MANUAL FOR CB Consumer Behaviour
3rd Edition Babin
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
Enriched Instructor’s Manual
Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
Table of Contents
Purpose and Perspective of the Chapter ....................................................................................... 2
Cengage Supplements ..................................................................................................................... 2
Chapter Objectives ........................................................................................................................... 2
Key Terms .......................................................................................................................................... 3
What's New in This Chapter ............................................................................................................ 6
Chapter Outline ................................................................................................................................ 6
Discussion Questions ..................................................................................................................... 15
Additional Activities and Assignments ......................................................................................... 17
Additional Resources ..................................................................................................................... 18
Cengage Video Resources .......................................................................................................................... 18
External Videos or Playlist .......................................................................................................................... 18
Appendix ......................................................................................................................................... 19
Generic Rubrics .......................................................................................................................................... 19
Standard Writing Rubric............................................................................................................................. 19
Standard Discussion Rubric ........................................................................................................................ 20
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
Purpose and Perspective of the Chapter
The purpose of this chapter is to give students an overview of what consumer behaviour
(CB) is and why it is relevant to them. A consumer makes a decision with the intention of
improving their life—that is, doing something of value. The process of making a purchase
starts a chain reaction of value-creating actions. As one can see, people’s behaviour as
consumers is critically important not just to themselves but to many other people. This is
why so many people, not just marketing people, are interested in learning about consumer
behaviour. It is true that the marketer who understands consumers will be able to design
products with greater value potential and thus a greater chance of enhancing the well-
being of stakeholders, including the company and customers. Recognizing trends such as
machine learning and big data helps marketers anticipate new ways to reach customers,
different ways to use existing channels, and take advantage of new data sources to better
inform their marketing plans. An understanding of consumer behaviour can mean better
business for companies, better public policy for governments, and a better life for
individuals and households.
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Centre.
• Educator’s Guide (describes assets in the platform with a detailed breakdown of
activities by chapter with seat time)
• PowerPoint (provides text-based lectures and presentations)
• Cognero Test Bank (contains assessment questions and problems)
• Instructor Solutions Manual (provides hints and answers to all questions from in-
text case studies)
• Image Library (includes a digital copy of all text images and exhibits)
Chapter Objectives
The following objectives are addressed in this chapter:
1-1 Understand the meaning of consumption and consumer behaviour.
1-2 Describe how consumers get treated differently in various types of exchange
environments.
1-3 Explain the role of consumer behaviour in business and society.
1-4 Be familiar with basic approaches to studying consumer behaviour.
1-5 Describe why consumer behaviour is so dynamic and how recent trends affect
consumers.
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
[return to top]
Key Terms
anthropology: study in which researchers interpret relationships between people and the
things they purchase, the products they own, and the activities in which they participate
attributes: product features that deliver a desired consumer benefit
behavioural economics: study of what happens in markets with decision makers who
display human limitations and complications
benefits: positive results of consumption
big data: the massive amounts of data available to companies, which can potentially be
used to predict customer behaviours
cognitive psychology: study of the intricacies of mental reactions involved in information
processing
collaborative consumption: rental transaction activity that is consumer to consumer,
rather than business to consumer or business to business
consumer behaviour: set of value-seeking activities that take place as people go about
addressing needs
consumer behaviour as a field of study: study of consumers as they go about the
consumption process; the science of studying how consumers seek value to address needs
consumer (customer) orientation: way of doing business in which the actions and
decision-making of the institution prioritize consumer value and satisfaction above all other
concerns
consumption: process by which goods, services, or ideas are used and transformed into
value
costs: negative results of consumption
differentiated marketers: firms that serve multiple market segments, each with a unique
product offering
economics: the study of production and consumption, including the distribution of
resources, goods, and services
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
ethnography: qualitative approach to studying consumers that relies on interpretation of
artifacts to draw conclusions about consumption
exchange: acting out of the decision to give something up in return for something of
greater value
experimental methodology: quantitative research approach to research that examines
cause-and-effect relationships by measuring changes in one or more key variables while
systematically manipulating and controlling other variables
Internet of Things: automatic recording of data from everyday products that signal
consumers’ patterns of behaviour
interpretive research: approach that seeks to explain the inner meanings and
motivations associated with specific consumption experiences
machine learning: application of artificial intelligence to automate tasks otherwise
performed by humans
market orientation: organizational culture that embodies the importance of creating
value for customers among all employees
marketing: multitude of value-producing seller activities that facilitate exchanges between
buyers and sellers
netnography: an adaptation of ethnography for the online world, including online
communities and online cultures
neuroscience: study of the central nervous system, including brain mechanisms
associated with thoughts, emotion, and behaviour
niche marketing: plan wherein a firm specializes in serving one market segment with
particularly unique demand characteristics
one-to-one marketing: plan wherein a different product is offered for each individual
customer so that each customer is treated as a segment of one
phenomenology: qualitative approach to studying consumers that relies on interpretation
of the lived experience associated with some aspect of consumption
predictive analytics: application of statistical tools in an effort to discover patterns in data
that allow companies to predict consumer behaviour
product: potentially valuable bundle of benefits
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
production orientation: approach where innovation is geared primarily toward making
the production process as efficient and economic as possible
psychology: study of human reactions to environments, including behaviour and mental
processes
qualitative research tools: means for gathering data in a relatively unstructured way,
including case analysis, clinical interviews, and focus group interviews
quantitative research: approach that addresses questions about consumer behaviour
using numerical measurement and analysis tools
relationship marketing: activities based on the belief that the firm’s performance is
enhanced through repeat business
sharing economy: global consumer trend toward rental (temporary usage for hire) rather
than ownership or doing a task yourself
social psychology: study that focuses on the thoughts, feelings, and behaviours that
people have as they interact with other people or groups in various situations
sociology: study of society, including patterns of social relationships, social interaction, and
culture
stakeholder marketing: orientation in which firms recognize that more than just the
buyer and seller are involved in the marketing process, and a host of primary and
secondary stakeholders affect and are affected by the value creation process
touchpoints: direct contacts between the firm and a customer
undifferentiated marketing: plan wherein the same basic product is offered to all
customers
want: way a consumer goes about addressing a recognized need
[return to top]
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 5
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
What's New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• Expanded sections on netnography and quantitative research.
• Added new topics, including the sharing economy, collaborative consumption,
machine learning, and predictive analytics.
• Two new feature boxes: “Ways of Knowing” and “Can You Spare a Roll?”
• New Case Study: “The Story of Shopify”
[return to top]
Chapter Outline
In the outline below, each element includes references (in parentheses) to related content.
“CH.##” refers to the chapter objective; “PPT Slide #” refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource
Centre). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is
provided for this chapter. Review learning objectives for Chapter 1 (PPT Slides 1–3).
I. Consumption and Consumer Behaviour (1-1, PPT Slides 4–17)
a. People consider CB from two unique perspectives:
• The actual human thoughts, feelings, and actions involved in
consumption experiences, and/or
• A field of study (human inquiry) that is developing an accumulated
body of knowledge about human consumption experiences.
b. Consumer behaviour is the set of value-seeking activities that take place as
people go about addressing and attempting to address real needs. In other
words, when a consumer is motivated by a need, a process kicks in as the
customer sets out to find desirable ways to fill that need.
c. The Basic CB Process:
• A want is a specific desire that spells out a way a consumer can go
about addressing a recognized need. A consumer feels a need to
record memories and be quickly entertained. Either or both of these
needs may create a want for a faster communication device with an
upgraded camera. Realizing the need, the consumer decides to visit a
Telus store where iPhones and other communications devices are
sold. Having made a choice, the consumer completes an exchange in
which resources are given up in return for ownership and the
potential to use the product.
• An exchange is the acting out of a decision to give something up in
return for something perceived to be of greater value. The consumer
then uses the product and experiences all the associated benefits and
costs associated with consumption.
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 6
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
• Costs are the negative results of consumption experiences. More
than just the price, factors such as time, physical effort, and
opportunity costs are all considered.
d. Benefits are the positive results of consumption experiences. Over time, the
consumer evaluates the costs and benefits and reacts to the purchase in
some way. These reactions involve thoughts and feelings. Ultimately, the
process results in a perception of value.
e. Consumption represents the process by which consumers use goods,
services, or ideas and transform the experience into value.
f. Consumer behaviour as a field of study represents the study of consumers
as they go through the consumption process. In this sense, consumer
behaviour is the science of studying how consumers seek value to address
real needs. CB shares particularly strong interdisciplinary connections with
economics, psychology (particularly social psychology), marketing, and
anthropology.
g. Economics is often defined as the study of production and consumption. As
the definition states, economics involves consumption. Therefore, consumer
behaviour and economics have a lot in common. Economists study
consumption at the macro level, such as tracking commodity consumption
by nations over different time periods. This may not include data describing
individual consumers’ thoughts, feelings, or behaviours associated with
consumption.
• Behavioural economics uses traditional econometric models and
techniques in combination with psychological theory and methods to
better understand the choices of consumers, managers, citizens, and
other individuals.
h. Psychology is the study of human reactions to their environment.
Psychology itself consists of several subdisciplines. Social psychology, and
cognitive psychology in particular, are highly relevant to consumer
behaviour.
• Social psychology focuses on the thoughts, feelings, and behaviours
that people have as they interact with other people or groups.
Consumer behaviour most often takes place in some type of social
setting or sometimes with the specific intention of affecting the way
others view oneself. Thus, social psychology and consumer behaviour
overlap significantly.
• Cognitive psychology deals with the intricacies of mental reactions
involved in information processing. Every time a consumer evaluates
a product, sees an advertisement, or reacts to product consumption,
information is processed. Thus, cognitive psychology is also very
relevant to consumer behaviour.
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 7
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
• Neuroscience, the study of the central nervous system including
brain mechanisms associated with emotion, offers potential for
understanding CB by charting a consumer’s psychological brain
functions during the consumption process. One finding suggests that
when consumers simply think about enjoying some of their favourite
foods, their brains become more active than when they actually eat
the food.
i. Marketing consists of the multitude of value-producing seller activities that
facilitate exchanges between buyers and sellers. The value-producing
activities include the production, promotion, pricing, distribution, and
retailing of goods, services, ideas, and experiences, all with the potential to
create value for consumers and other stakeholders. CB and marketing are
closely related. Exchange is intimately involved in marketing and is central to
CB too. Marketing actions are targeted at and affect consumers, while
consumer actions affect marketers.
j. Consumer Behaviour and Other Disciplines
• Sociology focuses on the study of groups of people within a society.
Sociology’s relevance for CB lies in the fact that consumption often
takes place within group settings or is in one way or another affected
by group dynamics.
• Anthropology has contributed to consumer behaviour research by
allowing researchers to interpret the relationships between
consumers and the things they purchase, the products they own, and
the activities in which they participate.
II. The Ways in Which Consumers Are Treated (1-2, PPT Slides 18‒25,)
a. Some organizations can survive while treating customers badly, while others
need to pamper customers just to have a chance of surviving. Consider the
following two questions in trying to understand why this is so:
• How competitive is the marketing environment?
• How dependent is the marketer on repeat business?
b. Competition and Consumer Orientation: Where do consumers go if they
don’t like their service at the local passport office? If the choice comes down
to visiting that office or not travelling, nearly all consumers will put up with
the less-than-immaculate surroundings, long waits, and poor service that all
too typically go along with getting a passport.
c. Few Competitive Pressures? In essence, the passport office typifies a
service organization that operates in a market with practically no competitive
pressure and a captive audience. In a government service like this, the
answers to the two questions above are (1) not at all competitive and (2) not
at all dependent on keeping customers. No matter how poor the service is,
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 8
publicly accessible website, in whole or in part.
3rd Edition Babin
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
Enriched Instructor’s Manual
Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
Table of Contents
Purpose and Perspective of the Chapter ....................................................................................... 2
Cengage Supplements ..................................................................................................................... 2
Chapter Objectives ........................................................................................................................... 2
Key Terms .......................................................................................................................................... 3
What's New in This Chapter ............................................................................................................ 6
Chapter Outline ................................................................................................................................ 6
Discussion Questions ..................................................................................................................... 15
Additional Activities and Assignments ......................................................................................... 17
Additional Resources ..................................................................................................................... 18
Cengage Video Resources .......................................................................................................................... 18
External Videos or Playlist .......................................................................................................................... 18
Appendix ......................................................................................................................................... 19
Generic Rubrics .......................................................................................................................................... 19
Standard Writing Rubric............................................................................................................................. 19
Standard Discussion Rubric ........................................................................................................................ 20
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
Purpose and Perspective of the Chapter
The purpose of this chapter is to give students an overview of what consumer behaviour
(CB) is and why it is relevant to them. A consumer makes a decision with the intention of
improving their life—that is, doing something of value. The process of making a purchase
starts a chain reaction of value-creating actions. As one can see, people’s behaviour as
consumers is critically important not just to themselves but to many other people. This is
why so many people, not just marketing people, are interested in learning about consumer
behaviour. It is true that the marketer who understands consumers will be able to design
products with greater value potential and thus a greater chance of enhancing the well-
being of stakeholders, including the company and customers. Recognizing trends such as
machine learning and big data helps marketers anticipate new ways to reach customers,
different ways to use existing channels, and take advantage of new data sources to better
inform their marketing plans. An understanding of consumer behaviour can mean better
business for companies, better public policy for governments, and a better life for
individuals and households.
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Centre.
• Educator’s Guide (describes assets in the platform with a detailed breakdown of
activities by chapter with seat time)
• PowerPoint (provides text-based lectures and presentations)
• Cognero Test Bank (contains assessment questions and problems)
• Instructor Solutions Manual (provides hints and answers to all questions from in-
text case studies)
• Image Library (includes a digital copy of all text images and exhibits)
Chapter Objectives
The following objectives are addressed in this chapter:
1-1 Understand the meaning of consumption and consumer behaviour.
1-2 Describe how consumers get treated differently in various types of exchange
environments.
1-3 Explain the role of consumer behaviour in business and society.
1-4 Be familiar with basic approaches to studying consumer behaviour.
1-5 Describe why consumer behaviour is so dynamic and how recent trends affect
consumers.
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
[return to top]
Key Terms
anthropology: study in which researchers interpret relationships between people and the
things they purchase, the products they own, and the activities in which they participate
attributes: product features that deliver a desired consumer benefit
behavioural economics: study of what happens in markets with decision makers who
display human limitations and complications
benefits: positive results of consumption
big data: the massive amounts of data available to companies, which can potentially be
used to predict customer behaviours
cognitive psychology: study of the intricacies of mental reactions involved in information
processing
collaborative consumption: rental transaction activity that is consumer to consumer,
rather than business to consumer or business to business
consumer behaviour: set of value-seeking activities that take place as people go about
addressing needs
consumer behaviour as a field of study: study of consumers as they go about the
consumption process; the science of studying how consumers seek value to address needs
consumer (customer) orientation: way of doing business in which the actions and
decision-making of the institution prioritize consumer value and satisfaction above all other
concerns
consumption: process by which goods, services, or ideas are used and transformed into
value
costs: negative results of consumption
differentiated marketers: firms that serve multiple market segments, each with a unique
product offering
economics: the study of production and consumption, including the distribution of
resources, goods, and services
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
ethnography: qualitative approach to studying consumers that relies on interpretation of
artifacts to draw conclusions about consumption
exchange: acting out of the decision to give something up in return for something of
greater value
experimental methodology: quantitative research approach to research that examines
cause-and-effect relationships by measuring changes in one or more key variables while
systematically manipulating and controlling other variables
Internet of Things: automatic recording of data from everyday products that signal
consumers’ patterns of behaviour
interpretive research: approach that seeks to explain the inner meanings and
motivations associated with specific consumption experiences
machine learning: application of artificial intelligence to automate tasks otherwise
performed by humans
market orientation: organizational culture that embodies the importance of creating
value for customers among all employees
marketing: multitude of value-producing seller activities that facilitate exchanges between
buyers and sellers
netnography: an adaptation of ethnography for the online world, including online
communities and online cultures
neuroscience: study of the central nervous system, including brain mechanisms
associated with thoughts, emotion, and behaviour
niche marketing: plan wherein a firm specializes in serving one market segment with
particularly unique demand characteristics
one-to-one marketing: plan wherein a different product is offered for each individual
customer so that each customer is treated as a segment of one
phenomenology: qualitative approach to studying consumers that relies on interpretation
of the lived experience associated with some aspect of consumption
predictive analytics: application of statistical tools in an effort to discover patterns in data
that allow companies to predict consumer behaviour
product: potentially valuable bundle of benefits
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
production orientation: approach where innovation is geared primarily toward making
the production process as efficient and economic as possible
psychology: study of human reactions to environments, including behaviour and mental
processes
qualitative research tools: means for gathering data in a relatively unstructured way,
including case analysis, clinical interviews, and focus group interviews
quantitative research: approach that addresses questions about consumer behaviour
using numerical measurement and analysis tools
relationship marketing: activities based on the belief that the firm’s performance is
enhanced through repeat business
sharing economy: global consumer trend toward rental (temporary usage for hire) rather
than ownership or doing a task yourself
social psychology: study that focuses on the thoughts, feelings, and behaviours that
people have as they interact with other people or groups in various situations
sociology: study of society, including patterns of social relationships, social interaction, and
culture
stakeholder marketing: orientation in which firms recognize that more than just the
buyer and seller are involved in the marketing process, and a host of primary and
secondary stakeholders affect and are affected by the value creation process
touchpoints: direct contacts between the firm and a customer
undifferentiated marketing: plan wherein the same basic product is offered to all
customers
want: way a consumer goes about addressing a recognized need
[return to top]
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 5
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
What's New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• Expanded sections on netnography and quantitative research.
• Added new topics, including the sharing economy, collaborative consumption,
machine learning, and predictive analytics.
• Two new feature boxes: “Ways of Knowing” and “Can You Spare a Roll?”
• New Case Study: “The Story of Shopify”
[return to top]
Chapter Outline
In the outline below, each element includes references (in parentheses) to related content.
“CH.##” refers to the chapter objective; “PPT Slide #” refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource
Centre). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is
provided for this chapter. Review learning objectives for Chapter 1 (PPT Slides 1–3).
I. Consumption and Consumer Behaviour (1-1, PPT Slides 4–17)
a. People consider CB from two unique perspectives:
• The actual human thoughts, feelings, and actions involved in
consumption experiences, and/or
• A field of study (human inquiry) that is developing an accumulated
body of knowledge about human consumption experiences.
b. Consumer behaviour is the set of value-seeking activities that take place as
people go about addressing and attempting to address real needs. In other
words, when a consumer is motivated by a need, a process kicks in as the
customer sets out to find desirable ways to fill that need.
c. The Basic CB Process:
• A want is a specific desire that spells out a way a consumer can go
about addressing a recognized need. A consumer feels a need to
record memories and be quickly entertained. Either or both of these
needs may create a want for a faster communication device with an
upgraded camera. Realizing the need, the consumer decides to visit a
Telus store where iPhones and other communications devices are
sold. Having made a choice, the consumer completes an exchange in
which resources are given up in return for ownership and the
potential to use the product.
• An exchange is the acting out of a decision to give something up in
return for something perceived to be of greater value. The consumer
then uses the product and experiences all the associated benefits and
costs associated with consumption.
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 6
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
• Costs are the negative results of consumption experiences. More
than just the price, factors such as time, physical effort, and
opportunity costs are all considered.
d. Benefits are the positive results of consumption experiences. Over time, the
consumer evaluates the costs and benefits and reacts to the purchase in
some way. These reactions involve thoughts and feelings. Ultimately, the
process results in a perception of value.
e. Consumption represents the process by which consumers use goods,
services, or ideas and transform the experience into value.
f. Consumer behaviour as a field of study represents the study of consumers
as they go through the consumption process. In this sense, consumer
behaviour is the science of studying how consumers seek value to address
real needs. CB shares particularly strong interdisciplinary connections with
economics, psychology (particularly social psychology), marketing, and
anthropology.
g. Economics is often defined as the study of production and consumption. As
the definition states, economics involves consumption. Therefore, consumer
behaviour and economics have a lot in common. Economists study
consumption at the macro level, such as tracking commodity consumption
by nations over different time periods. This may not include data describing
individual consumers’ thoughts, feelings, or behaviours associated with
consumption.
• Behavioural economics uses traditional econometric models and
techniques in combination with psychological theory and methods to
better understand the choices of consumers, managers, citizens, and
other individuals.
h. Psychology is the study of human reactions to their environment.
Psychology itself consists of several subdisciplines. Social psychology, and
cognitive psychology in particular, are highly relevant to consumer
behaviour.
• Social psychology focuses on the thoughts, feelings, and behaviours
that people have as they interact with other people or groups.
Consumer behaviour most often takes place in some type of social
setting or sometimes with the specific intention of affecting the way
others view oneself. Thus, social psychology and consumer behaviour
overlap significantly.
• Cognitive psychology deals with the intricacies of mental reactions
involved in information processing. Every time a consumer evaluates
a product, sees an advertisement, or reacts to product consumption,
information is processed. Thus, cognitive psychology is also very
relevant to consumer behaviour.
© 2024 Cengage Learning Canada, Inc. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a 7
publicly accessible website, in whole or in part.
, Enriched Instructor’s Manual: Babin, CB, 3Ce, 2024, 9781774746646; Chapter 1: What Is CB, and Why Should I Care?
• Neuroscience, the study of the central nervous system including
brain mechanisms associated with emotion, offers potential for
understanding CB by charting a consumer’s psychological brain
functions during the consumption process. One finding suggests that
when consumers simply think about enjoying some of their favourite
foods, their brains become more active than when they actually eat
the food.
i. Marketing consists of the multitude of value-producing seller activities that
facilitate exchanges between buyers and sellers. The value-producing
activities include the production, promotion, pricing, distribution, and
retailing of goods, services, ideas, and experiences, all with the potential to
create value for consumers and other stakeholders. CB and marketing are
closely related. Exchange is intimately involved in marketing and is central to
CB too. Marketing actions are targeted at and affect consumers, while
consumer actions affect marketers.
j. Consumer Behaviour and Other Disciplines
• Sociology focuses on the study of groups of people within a society.
Sociology’s relevance for CB lies in the fact that consumption often
takes place within group settings or is in one way or another affected
by group dynamics.
• Anthropology has contributed to consumer behaviour research by
allowing researchers to interpret the relationships between
consumers and the things they purchase, the products they own, and
the activities in which they participate.
II. The Ways in Which Consumers Are Treated (1-2, PPT Slides 18‒25,)
a. Some organizations can survive while treating customers badly, while others
need to pamper customers just to have a chance of surviving. Consider the
following two questions in trying to understand why this is so:
• How competitive is the marketing environment?
• How dependent is the marketer on repeat business?
b. Competition and Consumer Orientation: Where do consumers go if they
don’t like their service at the local passport office? If the choice comes down
to visiting that office or not travelling, nearly all consumers will put up with
the less-than-immaculate surroundings, long waits, and poor service that all
too typically go along with getting a passport.
c. Few Competitive Pressures? In essence, the passport office typifies a
service organization that operates in a market with practically no competitive
pressure and a captive audience. In a government service like this, the
answers to the two questions above are (1) not at all competitive and (2) not
at all dependent on keeping customers. No matter how poor the service is,
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