Chapter 1 Consumers Rule

Chapter 1
Consumers Rule
By Michael R. Solomon
Consumer Behavior
Buying, Having, and Being
Sixth Edition
Cognitive Component (Measuring
Beliefs about Specific Attributes Using
the Semantic Differential Scale)
Diet Coke
Good music —— ——
—— —— —— —— Bad music
Interesting —— ——
—— —— —— —— Not interesting
Fun shows ————
—— —— —— —— Boring shows
Sucks ——
—— —— —— —— Doesn’t suck
Thought listing (cognitive response)
• We would now like for you to list your thoughts that come to
mind as you view the product. Next to the first number write
the first thought that comes to your mind regarding the product
shown, next to the second number write the second thought
that comes to your mind regarding the product shown, etc.
Please put only one thought next to each number
Sentence Completion and
In-Depth Response
• Please complete the following question:
• People who watch MTV:
• Please describe what MTV means to you.
Why study Buyer Behavior?
What is Marketing myopia?
What companies have fallen prey to this?
Saturation + Myopia = Failure
What companies have fallen prey to this?
Saturation + Consumer Identification, Need matching, and
Relationship maintenance = Long term stability.
Success stories?
Who are your customers?
End-use consumer
Members of supply chain
Society (including critics): Treat them as
disgruntled customers (Holt et. al 2004).
What is Consumer Behavior?
• 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
• Role Theory:
– Identifies consumers as actors on the marketplace stage
• Consumer Behavior is a Process:
– Exchange: A transaction in which two or more
organizations give and receive something of value
Some Issues That Arise During Stages in
the Consumption Process
Figure 1.1
Consumer Behavior Involves
Many Different Actors
• Consumer:
– A person who identifies a need or desire, makes a
purchase, and then disposes of the product
• Many people may be involved in this sequence of
– Purchaser / User / Influencer
• Consumers may take the form of organizations
or groups.
Consumers’ Impact on
Marketing Strategy
• Market Segmentation:
– Identifies groups of consumers who are similar to
one another in one or more ways and then devises
marketing strategies that appeal to one or more
• Demographics:
– Statistics that measure observable aspects of a
• Ex.: Age, Gender, Family Structure, Social Class and
Income, Race and Ethnicity, Lifestyle, and
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A Lesson Learned
• Nike was forced to pull
this advertisement for a
running shoe after
disabilities rights groups
claimed the ads were
• How could Nike have
done a better job of
getting its message
across without offending
a powerful demographic?
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Market Segmentation
Finely-tuned marketing
segmentation strategies
allow marketers to
reach only those
consumers likely to be
interested in buying
their products.
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Marketing Strategy and Consumer
Consumer decision process
Problem Recognition
Information Search
Alternative Evaluation
Marketing strategy
Product, Price, Distribution,
Promotion, Service
Marketing segmentation
Identify product-related need sets
Group Customers with similar need sets
Describe each group
Select attractive segment(s) to target
Marketing analysis
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
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Consumers’ Impact on
Marketing Strategy (cont.)
• Relationship Marketing: Building
Bonds with Consumers
– Relationship marketing:
• The strategic perspective that stresses the long-term,
human side of buyer-seller interactions
– Database marketing:
• Tracking consumers’ buying habits very closely, and
then crafting products and messages tailored
precisely to people’s wants and needs based on this
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Marketing’s Impact on Consumers
• Marketing and Culture:
– Popular Culture:
• Music, movies, sports, books, celebrities, and other
forms of entertainment consumed by the mass
– Marketers play a significant role in our view of the
world and how we live in it.
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Popular Culture
Companies often create product icons to develop an
identity for their products. Many made-up creatures and
personalities, such as Mr. Clean, the Michelin tire man and
the Pillsbury Doughboy, are widely recognized figures in
popular culture.
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Marketing’s Impact on Consumers: The
Meaning of Consumption
• The Meaning of Consumption:
– People often buy products not for what they do,
but for what they mean.
– Types of relationships a person may have with a
Self-concept attachment
Nostalgic attachment
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Marketing’s Impact on Consumers: The
Global Consumer
• By 2006, the majority of people on earth
will live in urban centers.
• Sophisticated marketing strategies
contribute to a global consumer culture.
• Even smaller companies look to expand
• Globalization has resulted in varied
perceptions of the United States (both
positive and negative).
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The Global Consumer
American products like Levi jeans are in
demand around the world.
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Marketing’s Impact on Consumers:
Virtual Consumption
• The Digital Revolution is one of the most
significant influences on consumer behavior.
• Electronic marketing increases convenience
by breaking down the barriers of time and
• U-commerce:
– The use of ubiquitous networks that will slowly but surely
become part of us (i.e., wearable computers, customized
advertisements beamed to cell phones, etc.)
• Cyberspace has created a revolution in C2C
(consumer-to-consumer) activity.
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Blurred Boundaries
Marketing and Reality
• Marketers and consumers coexist in a
complicated two-way relationship.
• It’s increasingly difficult for consumers to
discern the boundary between the
fabricated world and reality.
• Marketing influences both popular culture
and consumer perceptions of reality.
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Marketing Ethics and Public Policy
• Business Ethics:
– Rules of conduct that guide actions in the
– The standards against which most people in the
culture judge what is right and what is wrong, good
or bad
• Notions of right and wrong differ among
people, organizations, and cultures.
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Needs and Wants:
Do Marketers Manipulate Consumers?
• Consumerspace
• Do marketers create artificial needs?
– Need: A basic biological motive
– Want: One way that society has taught us that need can be
• Are advertising and marketing necessary?
– Economics of information perspective: Advertising is an
important source of consumer information.
• Do marketers promise miracles?
– Advertisers simply don’t know enough to manipulate
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Discussion Question
• This ad was created
by the American
Association of
Advertising Agencies
to counter charges
that ads create
artificial needs.
• Do you agree with the
premise of the ad?
Why or why not?
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Public Policy and Consumerism
• Consumer efforts in the U.S. have contributed
to the establishment of federal agencies to
oversee consumer-related activities.
Department of Agriculture
Federal Trade Commission
Food and Drug Administration
Securities and Exchange Commission
Environmental Protection Agency
• Culture Jamming:
– A strategy to disrupt efforts by the corporate world to
dominate our cultural landscape
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Culture Jamming
• Adbusters Quarterly
is a Canadian
magazine devoted to
culture jamming. This
mock ad skewers
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Consumerism and
Consumer Research
• Green Marketing:
– When a firm chooses to protect or enhance the
natural environment as it goes about its activities
• Reducing wasteful packaging
• Donations to charity
• Social Marketing:
– Using marketing techniques to encourage positive
activities (e.g. literacy) and to discourage negative
activities (e.g. drunk driving)
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“Declaration of Consumer Rights” (1962)
• The right to the satisfaction of basic needs.
• The right to be protected against hazardous
products and processes.
• The right to have the facts needed to make an
informed choice.
• The right to choose between a variety of products
and services.
• The right to be heard in the making and execution of
government policy.
• The right to a fair settlement of just claims.
• The right to acquire the skills and knowledge to be
an informed and responsible consumer.
• The right to live in a healthy and sustainable
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Consumer Related Issues
• UNICEF sponsored this advertising campaign against child labor.
The field of consumer behavior plays a role in addressing important
consumer issues such as child exploitation.
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The Dark Side of
Consumer Behavior
• Consumer Terrorism:
– An example: Susceptibility of the nation’s food
supply to bioterrorism
• Addictive Consumption:
– Consumer addiction:
• A physiological and/or psychological dependency on
products or services
• Compulsive Consumption:
– Repetitive shopping as an antidote to tension,
anxiety, depression, or boredom
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Positivist vs. Interpretivist Approaches to CB
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Consumer Behavior
As a Field of Study
• Consumer behavior only recently a
formal field of study
• Interdisciplinary influences on the
study of consumer behavior
– Consumer behavior studied by researchers from
diverse backgrounds
– Consumer phenomena can be studied in different
ways and on different levels
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Journal of Consumer Research
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The Pyramid of Consumer Behavior
Figure 1.2
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The Wheel of Consumer Behavior
Figure 1.3
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