CONSUMER BEHAVIOR: A FRAMEWORK John C. Mowen & Michael S. Minor Chapter 1: An Introduction to Consumer Behavior Published by Prentice, Inc.
Concepts to Learn
Definition of CB Consumer primacy Environmental analysis Positioning/differentiat ion Segmentation
Theory and CB Research perspectives on consumer behavior Exchange processes Organizing model of consumer behavior
Consumer Behavior . . . . . . is defined as the study of the buying units and the exchange processes involved in acquiring, consuming, and disposing of goods, services, experiences, and ideas.
Why Study Consumer Behavior?
Foundation of Marketing Management Public Policy and Consumer Behavior Altruistic Marketing Personal Value
Three Research Perspectives on Consumer Behavior
The Decision-Making Perspective
The Experiential Perspective
The Behavioral Influence Perspective
The Decision-Making Perspective . . . . . . proposes that Generic Decision buying results from Model consumers perceiving Problem Recognition Search that they have a problem and then Alternative they move through a Evaluation series of rational Choice steps to solve the problem Postacquistion
Evaluation
The Experiential Perspective. . . . proposes that in some instances buying results from the consumer’s need for fun, to create fantasies, obtain emotions, and feelings. Frequently uses interpretative research methods.
The Behavioral Influence Perspective . . . . . . assumes that strong environmental forces propel consumers to make purchases without necessarily first developing strong feelings or beliefs about the product.
Exchange Processes and Consumer Behavior
Exchange is the process that involves the “transfer of something tangible or intangible, actual or symbolic, between two or more social actors.”
Prerequisites for Exchange:
Two or more parties must be present Each party has something of value to the other Each party is capable of communication and delivery Each party must be free to accept or reject the other's offer Each party must believe that it is appropriate or desirable to deal with the other
Elements of Exchange
Six Types of Resources Are Exchanged: Goods
Information
Service
Status
Money
Feelings
Dimensions of Exchange Relations
Four types of consumer exchange relations have been identified:
Restricted versus Complex Exchanges Internal versus External Exchanges Formal versus Informal Exchanges Relational versus Discrete
Relational exchange
Current hot topic in marketing Characteristics
long term reciprocal obligations non-economic rewards: market embeddedness--social ties between buyer and seller increase perceived value of exchange. extensive formal and informal communications high interdependence planning
Relational exchange practiced between members of marketing channel.
Market Embeddedness
The social ties between buyer and seller increase the perceived value of the exchange. Examples, house parties of:
Tupperware Mary Kay Cosmetics
Ethical Issues in Consumer Exchange Relations
Ethics is the study of the normative judgments concerned with what is morally right and wrong, good and bad. Free riding: example of an unethical action.
Ethical judgments
deal with serious human injuries and benefits may, or may not, be laid down by authority override self interest are based on impartial considerations Ethical dilemma: a decision that involves the trade-off between lowering one’s personal values in exchange for increased organizational or personal profits.
Ethical exchange
both parties know full nature of agreement nothing intentionally misrepresented or omitted no undue influence takes place via power.
Ethical rules of thumb
Golden rule: act in a way that you would expect others to act toward you. professional ethic: take actions that would be viewed as proper by an unbiased panel of colleagues. TV test: Would I feel comfortable explaining my actions on national television? Kant’s categorical imperative: forego acts, that if used as a universal principle of behavior, would result in negative societal outcomes.
An Organizing Model of Consumer Behavior
The model has five primary components:
The The The The The
Buying Unit Exchange Process Marketer’s Strategy Individual Influencers Environment
Buying unit
consumers, firms, government, non-profits, etc. Individual influencers information processing behavioral learning motivation and personality beliefs, attitudes and behaviors communications decision making
Marketer, who develops strategy
marketing mix segmentation and positioning employs marketing research to understand consumers
Environmental Analysis:
the marketer assesses the impact of each of the below facets of the environment on the firm. situations groups and families culture subculture cross cultural issues regulatory environment
Managerial Applications Analysis (PERMS)
Five factors to consider when using consumer behavior principles to develop managerial strategy are:
positioning and differentiation environmental analysis marketing research marketing mix segmentation