CHAPTER 1

Excerped from
CONSUMER BEHAVIOR
OPEN MENTIS
How Humans Think, Feel, And Act In The
Marketplace
2008

MY

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Welcome
to the Fascinating World
of Consumers
Dear DiaryHere Is My
Consumer Behavior
Visions of the Consumer
From Shopper to Reveler
Exchange, Value, Resources
The Holy Trinity of Market and
Consumption
Marketing Creates a Need!A
Profession Under Delusion
Seeing The Future First
Marketings Not-So-Obvious
Mission

MY


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hoebe. Phoebe and Rachel
two friends, two roommates.
Phoebe is excited to see in their
living room a new coffee table Ra-
chel bought that dayan antique
apothecary table from Pottery
Barn. The problem is that Phoebe
hates Pottery Barn because she
doesnt like anything that is mass-
produced. So Rachel lies about
the source of the table, telling
Phoebe that she bought the table
from the fea market. Phoebe gets
all wrapped up, examining the ta-
ble and taking pleasure in visual-
izing how, in the drawers of that
table, they must have kept all the
stuff to make their potions. She
is very happy, having something
with a history behind it.
Rumor Has It, Phobe Loves Pottery Barn!
One day Rachel and Phoebe are taking a walk when they arrive in front
of a Pottery Barn store, and, peeking through the glass door, Phoebe spots
an identical table in the store. Afraid the lie she (Rachel) told Phoebe is
about to be exposed, Rachel tries to pull Phoebe away, but Phoebe is drawn
in by the look of the entire living room display in the store, which, she
notices, looks exactly identical to her (and Rachels) own apartment. She
realizes now that, indeed, Rachel had bought not only the table, but also all
the other items from this storeitems about which, too, Rachel had made
up stories of their unique historic origins.
All the items except a
lamp, that is. The lamp is
there in the store but not in
their apartment. While Rachel
is begging Phoebe not to be
mad at discovering the truth
about the source of the stuff
in their apartment, Phoebe is
actually now contemplating
buying that lamp. She takes
Rachel inside the store and
buys that lamp. Hate Pottery
Barn? No, Phoebe actually
loves it!
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INTROdUCTION
Phoebe. Phoebe Bufay. One of the six most famous Friends in TV land, who share
their everyday life with one another, and, vicariously, with millions of viewers around the
world. A life flled with the usual quota of travails and jubilations of coming to grips with
mature adulthood. Of working at a job, a career, a credo. Of falling in love and then fall-
ing out of it. Of fnding a date and a mate. Of choosing things, buying stuf, admiring it,
connecting to it. Of constructing an inner world, only half grounded in the reality of the
stuf we buy and use and live our lives with and through; the other half existing only as
fgments of our imaginations. Show Phoebe a thinglike this cofee table, tell her it is
an antique, and she has transported herself to an extra-terrestrial experience of the mind.
An experience where she is unique, and proving it is all her one of a kind stuf. Tell her
instead that it was really mass-marketed ware from Pottery Barn, and she is back on terra
frma, questioning if it is worthy of her real-self, her cherished identity (no matter that
Pottery Barn is actually a store many consider chic). But terra frma has, by defnition, its
own solid footing, and it reminds her that this stuf is realtake it or leave it. She will take
it, of course, that cofee table and a few more thingslike that lamp out there.
Phoebe. Each one of us has a little bit of Phoebe in us. Tat is our nature, as humans
and as consumers. Male or female, young or old, rich or poor, we are all consumers in the
Pottery Barn that the marketplace is. We love it. We hate it. But we cant live without it.
From it we pick things, to build the mosaic we call living. It is a hassle. It is fun. But above
all, it is an experience.
Welcome to the fascinating world of consumers. In this book, we are going to de-
scribe, dissect, and discourse about consumer behaviorhuman behavior in the world of
products. We will study how we think, feel, and act in the marketplacehow we come to
see the products the way we see them, how we make our choices from the mind-boggling
array of goods, how we buy them and then weave them into the tapestry of our lives. How
we consume them to sustain and energize our bodies, feed our minds, and construct our
egos and our identities. Tis is the study of consumer behavior.
WE ARE CONSUMERS24-7!
We are all consumers. Tis much must come as no surprise to you. But what you
may have not realized is how much of your waking day you spend being a consumerand
we count not just when you are consuming or you are buying something, but rather, as
we will explain later, you are a consumer
anytime you are even thinking about ac-
quiring and/or consuming anything. To
be sure, we also live at least part of our
lives not being consumerslike when
we are conversing with a friend (without
using a phone or any other product), re-
fecting on our futures or for that mat-
ter the future of mankind. But most of
the rest of the day is flled with plotting
and enacting consumption. Write a daily
journal for a week if you like and see for
yourself. A group of consumers did just
that, at our request. We reproduce one
of them (see box: Te Diary of a Con-
sumer). Tis journal was quite represen-
tative of all we received in one respect;
they all showed the same thingWe are
consumers 24-7!
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dear diaryHere is My Consumer Behavior
by Ellen Tibbs
Monday, 10 July 2006
This morning on the way to work I bought a Sugar Free Red Bull and Special
K blueberry breakfast bar. On the way out I spotted the newest issue of
Cosmopolitan, grabbed it, got back in line and made my second purchase of the
day.
I ran out of laundry detergent so I went to Kroger to pick some up. ..
I was walking to my car earlier and saw a woman with a new Coach purse. I am
getting sick of the one I am carrying now. Once I save up some money I might
treat myself and buy one!
My friend just called and said she had an extra ticket to go to the Journey concert
in two weeks. I really want to go so I told her I would meet up with her later to
pay for the ticket.
Tuesday, 11 July 2006
I got my hair colored and highlighted at the salon, Madalyn San Tangelo this
morning.
My friend Lindsay and I wanted to eat sushi so I placed a carry out order at AOI, a
Japanese cuisine restaurant at Newport on the Levee. We both ordered California
Rolls, rice and we split an appetizer.
Lindsay and I are planning to see Pirates of the Caribbean with some friends to-
night. We dont know if we want to go to see it at the Levee because it costs to
park and is kind of a hassle. The other movie theatre we could see it at would
be Wilder. We will probably go there because it is close, has free parking and is
never crowded.
I was online today and bought and downloaded music from iTunes. I have a gift
certifcate for music downloads and bought some songs by James Blunt and Jack
Johnson. I also checked out some iPods online because I am thinking of upgrading. I
currently have the Mini, but I think I might want a Nano..
Wednesday, 12 July 2006
I bought gas today at UDF on my way to work. I went inside, grabbed a Sugar
Free Red Bull (my morning fx) and prepaid for my gas.
For lunch, I was craving barbeque so I called Hoggys, a new restaurant near my
ofce and requested they fax a menu. I decided on the pulled pork lunch with a
sweet potato and a sweet tea.
I love my car, but I want a new one. I saw a new dark gray/silver Scion today and
want it badly. I called my mom and talked to her about trading my car in for a new car. She said she would
have to think about it because she is buying a car for my younger brother.
I looked online for a desk for my room. I have a computer and printer, but no work station. I usually sit at
my kitchen table or on the foor to do homework and its getting really annoying. I looked at Pottery Barn,
Bova and a couple of random sites, but didnt see anything I liked.
Saturday, 15 July 2006
I bought an Icee Mango at Panera Bread
I went shopping today at Kenwood Mall for something to wear tonight. I went to a couple of stores, but
didnt fnd anything. I went into Forever 21 and was excited when I found a white skirt and black camisole.
I was even more excited when I found great accessories to match!
I bought a birthday card and gift bag at Hallmark. It is my friend Brittneys 21st birthday and we are going
out tonight. I also need to stop at a liquor store before meeting up so I can buy a mini bottle of Patron to
give to her as a present.
We met at Brio on the Levee for appetizers and cocktails. ..
Sunday, 16 July 2006
I had a headache this morning and was out of Advil so I went to Walgreens. I bought water and a bottle of
Advil gel caplets. In line I grabbed a new tube of Burts Beeswax and bought that too.
I had to buy gas again today. I feel like I flled up! I hate buying gas. It is so expensive and is a pain in the
butt. The only thing worse than buying it is to know you will have to buy it again in three days!
I work at J B Fins on the Levee, so I went shopping on my break. I went to Hollister and PacSun. I didnt fnd
anything I liked. However, I did buy a new belly button ring from the outside vendor.

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5

CONSUMERS ARE FASCINATINg
As consumers, we are fascinating. Consider a conversation we recently had with a con-
sumer, Jackie, 30. We will let that interview speak for itself, and you decide whether you
agree that conusmers are indeed fascinating.
V I S I O N S O F T H E C O N S U M E R
When we think of consumers such as Jackie, several images come to mind. Tey are the
browsers in the department store, shoppers in the mall, patrons enjoying a meal in a res-
taurant, visitors standing in long lines at Disneyland, youngsters focking to video arcades,
and old ladies rushing to grab the door-buster sale items. Tese and many other visions of
the consumer can be aptly grouped into the following fve categories:
1. Consumer as a Problem-Solver
2. Consumer as an Economic Creature
3. Consumer as a Computer
4. Consumer as a Shopper
5. Consumer as a Reveler
Consumer as a Problem Solver In this vision, consumers are searching for solutions
to the needs of daily life, looking for a product or service that will meet that need in the
best possible way. Once they fnd the solution product, they can relax and move on with
their lives. Te following self-report from a consumer illustrates this
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After I purchased my new pants recently, I spent most of my free time thinking
about the shoes I already have, which ones would go with the new outft that
was also forming in my mind. Finally, I decided that I didnt have any shoes to
go with my new pants. I formed an idea in my mind about the type of shoes that
would be a perfect match for my new pants. On Tuesday, I started my search
at Payless Shoe Source, but didnt have any luck. I continued my search at
Dillards and JC Pennys but once again I just didnt see what I was looking for.
I became very discouraged. I decided that later that evening, my fnal store to
shop would be Shoe Carnival. As soon as I walked in I saw them, the perfect
pair of shoes. They were a little pricey at $38.99 but with a 10% sale, I bought
them. I was very excited and relieved that I had found the shoes I was looking
for. Angie, 22
Consumer as an Economic Creature Consumers are also planners and manag-
ers of personal fnances; they want to use their money wisely. As such they seek to buy
products at the best prices available. Tis does not mean that they always go for the lowest
price (although often they do), but always that they want to maximize their utility. As one
consumer stated:
My fance and I always cut coupons before we go grocery shopping. It always
saves us at least $20 per trip. We both agree that Kroger and Thriftway are too
expensive for our large bi-monthly shopping trips. We prefer to go to Meijer
and likely save another $40 just by going there. Once at Meijer, we arent
too picky about the brands we buy. We can often be seen calculating the per
unit price based on the Meijer brand versus the name brand with coupon. On
most everything, the lower per-unit cost always wins. Oddly enough ketchup is
the one item that I purchase based on the brand name. I grew up with Heinz
Ketchup and I still prefer it to generic. Other than that, I would rather save
money and buy the generic version of canned vegetables, macaroni & cheese,
chips, soda, etc. Christopher, 23.

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Consumer as a Computer We also see consumers reading package labels, asking
salespersons questions, checking-of items on a shopping list, pondering information in
their heads, looking at an ad, making sense of instructions on how to use a productin
other words, sorting out all the information about products and the marketplace. Indeed,
our brains act like human computers. Tis vision can be seen in the following self-report
from a couple:
We were in the market for a house. We began by searching the MLS site on
the Internet. We searched listings by price, by location, by school district, and
by features. Then we found a realtor and let him do the searching. He showed
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I Obey My Thirst!
A Consumer Interview
______________________
1. Pretty hot and tempting.
2. Down Low
We intercepted Jackie Cooper, a 30-year old African-American
male, walking with a shopping bag in hand, in the Downtown Mall,
Cincinnati. Our interviewer was Pamela Ryckman, a junior marketing
student, who conducted the interview as part of her class project.
Q. Excuse me sir, would you mind answering a few questions for my
class project?
A. Sure, you can ask me anything.
Q. Great, thank you. (Pointing at the shopping bag) What did you
buy today?
A. I just bought this new fy Fubu jersey. It is uh, blue and yellow,
double zero on the back. Its phat.
1
Q. How do you buy your clothing?
A. You know, whatever looks good. Stay away from stripes though.
Q. Why?
A. Oh, it could make you look bulky, you know.
Q. What kind of clothes do you buy?
A. Well, I have a lot of Nike. My favorite is Fubu, you know. I also got
Sean-John. That is the only kind of stuf I buy.
Q. Why do you like these brands? What do you look for when you
buy clothes?
A. Its gotta be comfortable. I have to be able to move in it, or play
ball in it, and still go to the clubs comfortable but still nice.
Q. Do you go on spending sprees?
A. Nah, I try to keep my platinum bill on the D.L.
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Q. Are you happy with the way you buy clothes?
A. Yeah, I got my own system. Hasnt failed me yet.
Q. Do you like shopping for clothes?
A. Clothes shopping? Yes, I like it. I love it. You know, I gotta keep my
threads on top of the game.
Q. Is choosing clothes a problem for you?
A. Nah, I usually just try whatever catches my eye and I just buy it. I
go in, do my business, and then I m out. I am like fash you
know fashin in, fashin out. Bling blingin!
Q. What role does clothing play in your life?
A. See, I look at clothing like its a part of me. Its like people be lookin at my
clothes. It is like theyre seein into my soul. You know what I mean? Thats
why I dress the way I dress.
Q. Do you pay attention to clothes advertising?
A. Nah, I just buy what I like; I will not bow to any sponsor. I buy what I want!
Im like SpriteI obey my thirst. That is the way it is.
INTERVIEWER: Ok. Thank you for your time.
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us several houses on the computer within our price range. One house seemed
to have all the features but was on a street with no sidewalks, and sidewalks
were important to us because we have children. Another house had everything
but the deck was small; a third house had a large deck but the kitchen was
small. We tried to fgure how much it would cost to make the deck bigger, and
we thought that expanding the kitchen would be very cumbersome. We kept
turning in our heads the three houses we liked and their various features, and
fnally, taking everything into account, we settled on the one with the small
deck. Jenny, 23, and Paul, 24
Consumer as a Shopper Tis is the familiar image of consumers, coming out of a
store, loaded with shopping bags in both hands. Inside the store, they are totally taken in
by vast merchandise, enchanted by all that is on display, theirs to have if they like, but to
enjoy the sight anyway. Stores and marketplaces are the proverbial Alices Wonderland for
the consumer as a shopper. As one of our research respondents put it:
I shop all the time. Days, evenings, weekdays, weekends. Whenever I can get
out. I shop at department stores and just as much at boutique shops. And I
shop onlinemy favorite site is Alloy.com. I shop for sales and I shop for rare
merchandise. If I am getting bored I will go to the mall. In fact if I dont go shop-
ping for 2 or 3 days at a stretch, I begin to feel depressed. I buy very carefully,
after full deliberation, but I browse a lot and I window-shop a lot. Mall is a place
I couldnt live without. You could say I was born to shop.
Christy, 22
Consumer as a Reveler Finally, we all have visions of consumers just having a
good timeat a restaurant, a rock concert, a beach resort on Spring Breakenjoy-
ing life with all the wonderful things the marketplace has to ofer. Below are two
excerpts from consumer interviews.
I am really big into smelling good. I spend hundreds of dollars on top name
cologne. I feel that appearance and smell at frst are what make the man what
he is. I can be running to the grocery store and I put on cologne. Chad, 22.
I love attending a live concert. Rap, country, rock, gospel, alternativeI love
them all. My favorite band is Dave MathewsI have got all 14 of their CDs and
two live concert DVDs! Joe , 23.
We obtained a photo of a group of consumers. When it comes to consumers as revelers, a
picture does speak a thousand words!

All of these visions are true. Tey exist not only in diferent consumers, but also
sometimes in the same consumer. Tus, we are economic creatures sometimes, watching
every penny; at other times, we just want to experience, just want to be revelers, with
money as no object. Sometimes, we are assessing a product and soaking up all the informa-
tion, with our internal computers drives whirring. A consumer is indeed multi-faceted.
And our study will cover all these facets.
Now, we are ready to begin our formal study consumer behavior.
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WHAT IS CONSUMER BEHAVIOR?
We defne consumer behavior as the mental and physical activities undertaken by
consumers to acquire and consume products so as to fulfll their needs and wants.
Our defnition of consumer behavior has several elements worth noting. Let us discuss
these one by one.
Mental and Physical Activities First, consumer behavior includes both mental and
physical activities. Mental activities are acts of the mind, and they relate to what we think,
feel, and know about products. Physical activities are, in contrast, acts of the human
body, and they relate to what we physically do to acquire and consume products.
When you are contemplating buying a product, even dreaming about it, you are
engaging in a mental activity. You are also engaging in a mental activity when you are
mulling over a products benefts and risks; making sense of an advertisement; trying to
remember the price of a product in the store you previously visited; trying to recall what
you read in Food and Wine magazine about the wines that go well with the pasta you are
planning to cook tonight; or just wondering if a three-buttoned suit jacket will be good to
wear to a forthcoming job interview or if instead you should stick to the more conservative
two-buttoned jacket.
Physical activities include visiting stores, clipping coupons, talking to salespeople,
surfng the Internet, test-driving a car, placing an item in the shopping cart, abandoning a
shopping cart, and saving empty cartons for later recycling. Physical activities entailed in
actual consumption are also includedsuch as preparation to consume (e.g., setting the
table, soaking of grease from pizzas and fries, etc.), consumption situations (e.g., choosing
take out or dining in, using cell phone while driving), consumption rituals (e.g., a makeup
regimen), or routine trivial behaviors (e.g., TV channel fipping). Indeed, it is by observing
consumer inconveniences and improvisations during product use that market-
ers often conceive new products and tailor their communications. Some activi-
ties are hybridsboth physical and mentalsuch as reading Consumer Reports,
or reading product labels.
It should be noted that mental and physical activities we study under con-
sumer behavior are not limited to the specifc act of buying and using the prod-
uct. Rather they include activities that the consumer undertakes in preparation
for and prior to the actual buying act, and they include activities that continue
long after the product is actually consumed or used. When a consumer hears
a friend praising a product and makes a mental note to try it sometime in the
future, this preparatory activity is part of consumer behavior. Likewise, a few
months after using the product, if the consumer suddenly recalls the experience
of using that product and chuckles about it, enjoying the memory of past con-
sumption, then that post-use mental activity is also consumer behavior.
Product Second, we use the term product broadly, to refer to any physical
or nonphysical product or service that ofers some beneft to the consumer,
including a place, a person, or an idea ofered for exchange. Tus, not only
are the physical products we buy included, such as a car, a shirt, a golf club,
etc., but also services such as a ftness club, college education, wireless phone
service, TV programs, and a breakup letter servicemore on that later. Also
included are places such as vacation destinations, outlet malls, or video arcades.
And persons such as political candidates or candidates for the student council
of your college seeking your votes are included. And, fnally, ideas are included
such as the idea of opposing a tax levy for a new stadium, donating blood, veg-
etarianism, or buying virtual ice cream (!) (read about it in Chapter 19). Te
important point here is that casting your vote for a candidate is just as good an
example of consumer behavior as is buying a brand of toothpaste; so is visiting
a museum, choosing a college, donating to the Tsunami Relief Fund, reading
Malcolm Gladwells 2005 best seller, Blink, or displaying a Save Our Environ-
ment bumper sticker on your new Element.
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Consumers Tird, our defnition includes the word consumers. In general, a consumer
is anyone engaged in the acquisition and use of products and services available in the
marketplace. Although a few humans on our planet might well be living lives sustained
entirely by self-produced products and services (rather than those acquired in the market-
place), most of us acquire the products and services we need and want through market-
place exchange. Each of us, therefore, is a consumer.
Te use of the term consumer in this text is broader than in practice, where diferent
marketers call them, instead, by diferent names. For example, retail stores generally refer
to their patrons as customers (rather than as consumers); so do utility companies (e.g.,
electricity or phone service providers), fnancial companies (e.g., banks), and service com-
panies (e.g., dry cleaners, etc.). Professional service providers refer to them as clients (e.g.,
lawyers, real estate agents, tax advisors) or by their more context-specifc roles (e.g., doc-
tors call them patients, educators call them students, fund-raisers call them donors,
etc.). And personal service providers call them either customers or clients (e.g., palm read-
ers and fortune tellers, massage therapists, and boutiques that do the piercing and tattoo-
ing of our bodies). Only manufacturers who do not routinely deal with the end-users of
a product (e.g., Procter & Gamble, Johnson & Johnson, Kraft, and General Foods, etc.)
refer to these household end users as consumers. In this text, however, we refer to all of
these kinds of acquirers and users of products and services as consumers.
Our use of the term consumer also goes beyond its literal meaningpersons who
consume. Of course, some products do get consumed, such as food items, but other prod-
ucts do not get consumed (i.e., depleted), such as household appliances or other du-
rables. For these products, we are users rather than consumers. Again, we will use the
term consumers to refer to the users of all products or services, whether these products are
consumables or durables.
Correspondingly, we defne consumption as any and all usage of products whether
or not the products are actually consumed away; i.e., depleted. Tus, when we look at
our digital pictures and we show them to others or email them, we are consuming them.
Hi, My Name Is Bon Milano
Hi, my name is Bon Milano. I was born on July 21, 2006. I live on Happy
Island. On this Island, we dont count our age by the earthly clock. I
was born 35 years old. As soon as I was born, I got myself some new
skin, a face job, and a mini hair transplant too. But most exciting was
getting a new wardrobe. See the blue shirt, black jeans, and beige blazer
I am wearing? My new clothes are cool, arent they? In case you didnt
realize it, they are all virtual.
So is my Avatarmy alter ego in Second Life world.
Soon I plan to buy some land on the island and build myself a house.
And get to know the Residents. The other day, I met Kooletti godmother, Waterfalzz
Extraordinaire, Anomaly Rothschild, and Nevermind Bliss. They told me about the
listening party for Regina Spektors new album Begin to Hope, podcasted exclusively in
Second Life worldand exclusively means you cant hear it in meatspace (that is what
we avatars call our First Life world, namely, our equally wonderful planet earth).
I missed it. But I am going to have my avatar audition for MTVs next Virtual Fashion
Show. Someday, you and I might share a discussion on MyCBBook,
here on the Happy Island. Life here is surreal.
Visit me sometime.
We Are Consumers and This Is What We Do
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And of course we also count as consumption activities such as TV viewing, visiting art gal-
leries, and being in a chat-room on our PCs.
Needs and Wants Finally, two important words in our defnition are needs and wants.
Needs and wants are perhaps the two words most freely used by consumersfreely in the
sense that they seldom ponder before uttering these words. Tey utter these words merely,
but unmistakably, to indicate their desire or intent to possess and/or consume something.
Philosophers of diverse ilk have ruminated for centuries as to what need and want mean,
and understandably there is no consensus. Consequently, consumer researchers who study
consumer needs and wants also vary in their defnitions of the terms. Indeed, it would be
futile to search for a defnition on which everyone would agree. So, here is the defnition
we will use in this book.
A need can be defned as a discomforting human condition. It can be discomforting
in a physiological sense or in a psychological sense. Examples of the physiologically dis-
comforting condition are a hungry stomach or a body unprotected against the winter cold;
examples of discomforting psychological conditions are feeling bored, feeling insecure, or
experiencing being looked down upon. As consumers, we seek products or services in the
marketplace exchange so as to alleviate these conditions of discomfort. A want is a desire
for a specifc object or product. Te consumer who wants a product judges that it would
restore his or her condition to a satisfactory state. Tus, the felt discomfort of a hungry
stomach is a need; desire for food and for a specifc kind of food is a want. Feeling insecure
is a need; desire for the latest model of Nike shoes, even when barely within ones means,
is a want.
Te defnitions we use here difer from common speech, where needs are equated
with necessities, and wants with luxuries. Tere are good reasons for this, which we will
explore in a later section. For now, just remember that need is your felt discomfort, period.
And remember also that the discomfort has to be perceived by the person himself or her-
self. Tus, a need is not someone elses assessment of your condition. I cannot say that your
hair looks long, so you need a haircut, or that your clothes look all faded and worn out, so
you need a new pair of jeans. Or, that you dont need a PDA (personal digital assistant), a
diamond ring, hair coloring, body piercing, or a HUMMER. It is for you to decide if not
having these things is discomforting for you, psychologically speaking. Indeed, then, need
is a very subjective word. It is a very personal feeling.
ExCHANgE, VALUE, ANd RESOURCES
Three Essentials of Consumer Behavior
Tere are three essential elements in all consumer behavior. Without these, no con-
sumer behavior can take place. And they work in unisoninseparably, as three grand
enablers of consumer behavior. Tese are exchange, resources, and value. Let us examine
each.
ExCHANgE
Exchange refers to an interchange between two parties where each receives from the
other something of more value and gives up something of less value. Within that specifc
exchange, what is given up is of less value to the giver than it is to the receiver, so that both
parties gain more in value than they give up. Tus, when we buy a shirt, we part with our
money (say, 20 dollars or 40 rubles or 25 euros or 120 pesos or 80 yen) because at that
time that particular shirt is more valuable to us than keeping that money in our pockets;
conversely, when we sell that shirt in a garage sale for one dollar, at that time, that shirts
value to us is less than even one dollar.
Although an exchange can also occur between any two consumers, it is customary
to call one of the parties the marketer and the other party the consumer. A marketer is an
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individual or an organization with an organizational goal that ofers products and services
in exchange for the consumers money or (occasionally) other resources. When a marketer
primarily seeks money and has making money as the principal organizational goal, then
that marketer is referred to as a commercial entity. When a marketer ofers products and
services either free of cost or at a nominal charge insufcient to cover costs or make any
proft, the marketer is typically a non-proft or social organization. Typically, nonproft
or social organizations promote an idea (e.g., smoking cessation) or a person (e.g., a presi-
dential candidate). An important point here is that the study of consumer behavior is just
as useful for non-proft and social and community organizations.
RESOURCES
A resource is something we own or possess that people value. Since people value
those resources, more or less universally, as consumers we can use them to acquire a whole
host of products and services. Tat is, as humans, we value resources ourselves, and, be-
cause other humans value them too, we can exchange some of them to satisfy our needs
and wants.
Fi ve Resources
Tere are fve types of resources: money, time, skills and knowledge, body and physi-
cal energy, and social capital. Of these, money is the most often used resource for market-
place exchangeswhen we acquire products and services, we typically pay for them with
money. We also use money to acquire the other four resources. We buy time-saving devices
to gain more time; we hire a maid so we ourselves dont expend time in housekeeping
chores. We buy books and take college courses to gain knowledge, we buy home-improve-
ment books to learn to do handiwork, and we pay for dancing lessons to acquire dancing
skills.
To build our bodies and enhance physical energy as a resource, we spend money and
join a gym. We spend time doing yoga. And we buy vitamins and nutrition-supplements
to get energy. Finally, we spend time and money to build social capitalthe network of
friends and professional connections that can be of help in our hours of need. We buy
designer brand clothes that will help us gain acceptance among our peers. We spend time
writing thank-you notes and sending gifts to keep the friends we have. And we pay fees to
join social clubs and associations to enlarge our social networks.
Sometimes we use other resources so we can pay less in money. We pay, in part, with
our time when we choose to take a cheaper airline fight with a stopover instead of a direct
fight. Or when we buy a modular furniture system that we have to assemble ourselves, we
exchange our time, physical energy, and skills to save money. If we believe that we have the
requisite skills, then we choose a low fee discount broker rather than a full service invest-
ment advisor, or we buy stocks online. We use our healthy bodies themselves as a resource
when we donate blood or pledge to donate some organ. And good looks are themselves
exchanged to attract a date, companion, and mate.
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VALUE
Te third essential element in all consumer behavior is value. Value is the sum total
of net benefts we receive from an activity or an exchange. Indeed, value is the core goal of
all exchanges humans undertake.
Value, not money, is the basic currency of all human interaction. When we
meet someone, we try to quickly assess how long it would be worth our while
to be talking to that person. If an incoming phone call shows up on our caller
ID, we promptly decide if we would gain anything by taking that call at that
time. It is even more true of marketplace exchanges. The only reason cus-
tomers are even in the marketplace is that they are looking for something of
value. (ValueSpace, 2001, p. 3-4.)
2
Value comes from all the benefts, all the desired outcomes that consumers obtain and
experience from their use of products. When a cream eradicates our zits, that is a desired
outcome to us and hence a value; when a musical play uplifts our moods, that is a desired
outcome and hence it is a value; when wearing a particular suit or dress brings us compli-
ments from others, we are receiving value. And when we feel good about ourselves donat-
ing to a charity, we are experiencing value. In everything we buy, in everything we con-
sume, in every advertisement to which we pay attention, from every salesperson to whom
we lend our ears, in every store we enter, on every Web site we visit, we seek value.
Tus, value comes in multiple forms. Basically, value accrues when some need is sat-
isfed. Because human needs are countless, so also are forms of value. However, they can
be categorized into four major types, captured in the acronym USER: (a) utilitarian, (b)
social, (c) ego/identity, and (d) recreational.
3
Utilitarian value is the set of tangible outcomes of a products usage (or of an activ-
ity). It comprises physical consequences of a product and its efects in the physical world
around us and within us (i.e., our body). Also called functional value, utilitarian value
comes from objects when they enable us to manage our lives as biological and physical
beings and to manage our external physical environments as well. Examples include flling
our bellies with food, energizing our bodies with nutrients, moisturizing our skin with lo-
tions, navigating physical distance by using a Segway, etc. But dont mistake it for mere
basic necessity. A computer that allows us to write and save letters, a personal jet that
enables us to reach places at will, and a digital camera phone that lets us shoot pictures
anytime anywhere and then email them instantly to our friendsthese products yield
specifc benefts that are also utilitarian.
Social value comes from our ability to manage our social worlds
dOES MARKETINg CREATE A NEEd?
Some people blame marketing for creating consumer needs. Tey charge that market-
ing creates a desire for products we dont need. Does it? Let us examine this closely. Mainly,
this charge is based on two prevalent views of what a need is. First, the charge comes from
those who defne true needs as only the basic things we require for survival. Consequently,
they argue that we only need a basic car, not a fancy car, but marketers create in us a desire
for a fancy car, and that we do not need a $150 Nike shoe, but fancy advertising beguiles
us into believing that we do.
Te second defnitional problem is that in common parlance, a need is confused
with a product. Tis leads to the argument that no one needed a DVD player until DVDs
came along, and no one needed hair transplants until hair transplants became available. A
discourse on whether or not we needed something is impossible if we use the terms need
and product interchangeably.
In contrast, we have defned need as a condition (an unsatisfactory one), not as a
TExT OMITTEd (1 PAgE)
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product that improves that condition. So the need to be entertained always existed; DVDs
provided a solution. And the need to impress peers or express ourselves had always existed;
Nike ofers, to some consumers, a way to do it. Consider digital camera cell phones. Before
they became available, we did not need digital camera cell phones. In fact, we did not even
need cell phones. But the need to be able to call our moms or friends from a place with
no payphone nearby had always existed. And every once in a while we were in a place and
we were looking at something, some product, some transient scene, and then we wished
we could capture it in a photo and show it to a friend far away in real time to get his or
her opinion. We had always needed, too, the ability to see the callers face in our tiny cell
phones screen. Since these possibilities were not available, we dreamed about them every
once in a while and then pushed the thought away from our active attention. Until one
day, science made available the cell phone, and then the cell phone with digital camera
and with email capabilities, and we suddenly recognized these products as solutions to
our long-dormant needs. But it was science that gave us those products, not marketing.
Marketing brought the news and explained their functions and benefts. Te same goes
for every inventionfrom Post-it Digital Notes to hair transplants, science made them
available, and, after that, marketing brought us the information and ofered the invention
at a price (sometimes a hefty sum, mind you). And those who saw these products as solu-
tions to their needsthe conditions that were bugging thembought them immediately,
without much persuasion, whereas others waited a while or never bought them (a high
intensity marketing efort, not withstanding!).
Speaking of the products science has brought us, smart consumers would have discov-
ered their benefts even in the absence of marketers, and from them, in turn, all consumers
would have. Marketers should be fattered to receive this credit, but it is not duly theirs.
Consumers who credit marketers with creating in them the need for all those new inven-
tions are merely shifting responsibility, or guilt if you will, from themselves to marketers.
What about products that are not scientifc inventions, but mere packaging of im-
age, you might ask. Like designer brands? Here, too, marketing receives more blame (or
credit) than it deserves. Imagine a world where only one brand and one type of shoes (in
all sizes, of course) was available, and only one brand and one style of clothes, and only one
make and style of car. Would you then have been happier? When people got their clothes
tailored, they got them customized not only for size but for style as well; when they sewed
them themselves, they always gave them little personal touches, to refect their personali-
ties. Tis need to diferentiate, not to be stamped from a cookie cutter, to show something
unique, is also an inherent human need. What marketers do, to consumers beneft, is sim-
ply to make those varieties, those diferentiations in product oferings available to humans
who had until then improvised those style diferentiations. And in countries where these
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Two consumers.
Two different self-identities.
Expressed through clothes.
_____, a watch repair artist (L),
______ an eco-design professor,
Fedora hat and tie-dye T-shirtto
each his own, courtesy of the
marketplace.
(Incidently, no amount of clever
marketing can make ____ trade his
fedora hat for the tie-dye T. And __
__ will absolutely, positively not do
the trade either. They might as well,
but not because of marketing.)
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products are not freely available (and thus there is no marketing), many consumers would
kill to get them from the gray market if they could!
Somehow, consumers have their ideas of what will make them happy, and they will
do anything to get those things, marketing or no marketing. Te important question
therefore is this: From where do consumers get their ideas? From diverse sources, actu-
ally. From the media for one. From seeing what the flm stars are driving, and what the
rap artists are wearing. And they observe people around them. Who is wearing Seven7
or True Religion jeans, who is driving the Scion, and who is walking with iPod ear buds
as a fashion statement? Tus, it is the media, and it is the society as a whole, the culture,
the world around us, or the streets we are roamingthese are the sources of our desires.
Marketing is a part of this environment, no more, and no less.
Let us look at it another way. Consider how many products are introduced in a typi-
cal year, and how many of them become abysmal failures. With all the marketing prowess
behind them, marketers just cant convince enough number of consumers to part with
their money to buy those products. And then there is the battle of the brands. In clothing,
there is Kenneth Cole, and there is Tommy Hilfger. Open any issue of GQ or Esquire and
you can fnd advertisements for both. And yet, why do you buy one brand and not the
other? Tere is a very simple reason: each brand makes a certain brand promise, each proj-
ects a certain image, each fts a certain consumers inner self-image, and the consumer buys
that which speaks to him or her. To other marketers, consumers vote a Nowith their
wallets and purses. Yes, consumers respond to advertising, to marketing, but only to the
brand and only to the marketer that in fact respond frst to what is within the consumer
already. As one tattoo artist, describing how he helps his clients choose a design, put it:
Te tattoo is already within the consumer; all I do is bring it out for the world to see!
SEEINg THE FUTURE FIRST: MEETINg
CONSUMERS LATENT NEEdS
Consider the telephone. It is a miracle. It was invented in 1876. Suddenly, two per-
sons continents apart could talk to each other. Since then, the technology experts in phone
companies have upgraded the device over the years, improving sound fdelity and adding
such features as pulse tone, and later speed dial, memory, and mute features. But their gaze
remained focused on the telephone device. And while they kept in mind the consumer
need the device served, that need seems to have been understood in its most obvious form:
the need to talk to someone not within hearing range. Tey did not look deeper; it was
assumed, inadvertently, that whenever someone wanted to talk to a distant person, that
other person would be available at that location and at that time, and that he or she would
want to talk to the caller. Furthermore, it was assumed that the two would speak the same
A car is more than transportation.
For some consumers, it is an
extension of themselves.
Jamie Schworer, a thirty-
something consumer, a res-
ident of Clincinnati (U.S.A.)
A marketing graduate, she
now runs her own Limo Ser-
vice business. She bought
the 2006 Scion tC the mo-
ment she saw it.
The Tattoo is already
inside you!
This consumer, Victor
Strunk, used to sixth-sense
extra-terrestrial characters
protecting him from dangers
both from outside and from
within, and then got them on
his skin.
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language! After all, it was not until 1971 that the answering machine was invented.
4
And
it was not until 1987 that caller ID was frst ofered to consumers.
5
And fnally, technology
experts are only now building automatic, built-in translation software. Maybe consumers
had to wait until appropriate technologies were invented; maybe they had to wait until
mass-manufacturing of these devices became commercially feasible; or maybe they had to
wait until government regulatory bodies cleared the way. Regardless, the important point
is that there had been no recognition of these consumer communication needs. No one
had bothered to look deeper.
Marketing Is All About Satisfying A Consumer Need
MATERIAL OMITTEd (2 PAgES)
Consider some other products and see if they create a new need, or, merely, albeit
admirably, satisfy a latent need of consumers.
Self-watering fower pot Te pot has two chambers; the lower half is flled with
water; a wick from the top half, which contains soil, reaches out to the bottom chamber.
Would you buy it? If yes, that is becasue the moment you see it, you recognize it as the
perfect solution to a latent needthe challenge of taking care of plants while on vacation.
If not, then no amount of marketing efort will make you buy it.
Five Finger Shoes A shoe with fve fngers. Yes, the shoe fts your foot and toes
individually; provides the same sole support. Liberate your toes. Walk
barefoot. Like the idea? Ten, you will buy it. If not, no amount of mar-
keting will make you buy it. (Check it out at www.vibramfvefngers.
com.)
Ipod My Photo You send in your photo, and, for $19.99, they will
put the iPod, complete with the white ear buds on it. Since its inception
in early 2001, the company has been doing brisk business. Did it create
a need? Or just gave us one more avenue to exercise our whims, our need
to be playful, to make our photos cool and then savor them. (Check it
out at www.ipodmyphoto.com.)
Hug Shirt It has wearable electronics. It enables a person to send
you a hug from far away. Here is how it works: It has two high-tech com-
ponents, embedded in the fabric: (1) sensors that will sense the strength
of the touch, skin warmth, and the heart beat of the sender at a distance;
and (2) actuators that will reproduce the same sensations for the wearer.
Yes, now you can hug your teacher everyday. (Check it out at www.
cutecircuit.com.)
Finger Ring Suppose you are in a group conversation, and the
other persons phone rings. Dont you wish it hadnt. Now you can make
it happen. Each person in the group wears a special ring. Ten, an in-
coming call on any of your cell phones will send a vibration to each ring,
and each ring-wearer will press a button to allow or disallow the phone
to ring. Of course, none of the wearer knows whose phone is receiving
the call. Tis is called social pollinglet your company decide if you can
take the call or not.
Silent Dating Tis is a new concept in social networking. You meet
up people in a group, but you are not allowed to talk at all. Tey give
you a generous supply of index cards and a pen. Scribble a message on
one and slide it over to the other person. And wait for him/her to doodle
back. Says one recent, happy, silent-dater: I havent had this much fun
since passing notes in school. Te parties are held in such cities as New
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York, San Francisco, Washington D.C., and even Beijing. Check out the schedule for the
next party at www.quietparty.com.
Now, let us consider briefy what role marketing plays (or will play) for these prod-
ucts. Consider the hug shirt. Okay, hugging your teacher was the wrong pitch. How
about hugging your spouse, or your children, when you are away from home. If the wear-
able vest doesnt cost too much, some of us may just buy it. But, and this is an important
but, only if the sensations are realistic; and if we can bring ourselves to believe that the
hug we just experienced felt just as if the other person was in touching proximity. If not,
no amount of marketing prowess is going to get you to part with your money. (Unless,
realistic or not, you wanted to send hugs to an interesting stranger, but that is another
story, and, at any rate, that need too, will have not been created by marketing.) Te truth
is, many of us cant wait to try it on. At least as a novelty experience, initially, and then,
later, also for real emo-interface with a loved one far away.
Will you buy the social polling Finger Ring? Yes or No, whatever be your answer,
it is your answerthe outcome of you determining if it will meet any of your needs. A
million dollar ad campaign might make you buy it? No, a million dollar ad campaign will
make you, at most and if at all, reassess if it will satisfy your need. Tat is all.
Silent dating, now what can we you say about this cool idea! Tat other dating scene,
with loud music and the noise of a thousand conversations, has been utterly frustrating for
any intelligent interaction. Silent Dating is also a fresh breather for the tongue-tied among
us. And it is a low risk, reversible, venture (you can always go back to your regular dating
venues). More than anything else, it is a new, alluring, sport to play out your spontaneity
and your desire for sensation-seeking. (Check out some of the notes someone glided over
to you!) Tose of us, who have this mindset of constant exploration will fnd it a value;
those who do not, will not, marketing or no marketing.
Te point is, marketing gets false blame; or, false credit. Te irony is that marketers
will, when charged, deny that they create a need. In their hearts, though, many believe that
they do. After all, all that marketing planning, all that multi-million dollar ad budget, all
those positioning games, they couldnt have been in vain. But in all likellihood what they
believe is actually false, and that which they deny, knowing they are lying, is actually the
truth. Marketing does not create a need, period.
Creating Consumer Value: The Supreme Purpose of
Business
What is the purpose of marketing? For that matter, what is the basic purpose of busi-
ness itself? To make money? Wrong, says Harvard professor Teodore Leavitt, who ex-
plains this by an analogy: all humans have to breathe to survive, but breathing is not their
purpose. Likewise, making money cannot be called the purpose of business.
9
Te basic
purpose has to relate to why society allows businesses to exist. It is, says Peter F. Drucker,
one of the worlds leading management gurus, to create a satisfed customer.
10

Marketing does not create a need. It creates a satisfed consumer. And in striving to do
so, marketing serves a very important role for consumers, and for society. It creates prod-
ucts it hopes will satisfy the latent needs of some segment of consumers; or it commercial-
izes inventions of inventors, adapting them to suit consumer needs and tastes. It brings,
too, art, culture, aesthetics, design, and creativity to morph and sculpt a socio-cultural
identity for the productthe so called brand image, one it hopes will resonate with the tar-
get consumer. However, creating that brand image in the marketers own image will bring
all that multi-million dollar efort and all that marketing prowess to naught (see the story
of OK Soda in Chapter 7); creating it, instead and as it should, in the target consumers
image (backed by a product that can withstand the burdens imposed by that brand im-
age, and live up to what the brand image promises) will bring admiration (and economic
votes, i.e., dollars or Euros or Yen) of its target consumers. (As examples, see any of the
brand ads in this bookthey, each and every one of them, have been chosen with this
criterion in mind). Marketers belabor as well deciding what price will make it a good value
Thats a loud shirt
for a quiet party.
Forget the paper.
Write on my body.
Notes from Silent
Daters (source:www.
quietparty.com)
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for the consumer and still bring the frm fair economic returns on investment. It brings
the product to the consumers doorsteps or to the Web portal on their cell phone screens.
And it creates the physical, social, and cultural milieu that makes smooth the acquisition
of the product and that invites, enables, and enhances the consumption experience. Tis
is the art of marketing and doing it right is the profession of marketing. Tis is, in efect,
the supreme mission of marketing.
How do you fulfll this mission? How do you create a satisfed customer? How else
but by studying consumer needs, by analyzing how the consumer thinks, feels, and acts
in the marketplace and how he or she connects products and specifc bands to his or her
needs. By seeing the proverbial tattoo that is already within the consumer, so to speak.
Tat is why understanding consumer behavior is of paramount importance to the success
of all organizations, commercial or social.
CONSUMER BEHAVIOR AS A FIELd OF STUdY
When we seek to understand consumer behavior, we seek to understand, basically,
human behavior, albeit in the world of goods. As an applied feld of study, it draws on
all four felds of basic social sciences dedicated to the study of human behavior; namely,
anthropology, sociology, economics, and psychology. You already know what these felds
are, but here is a quick refresher:
11
MATERIAL OMITTEd (2 PAgES)

Self-Parking Cars from Toyota
When it comes to parallel parking a car, even most expert drivers sometimes struggle with the chore, especially on cramped city
streets. A fantasy wish runs through our
minds: how nice it would be if these cars
could park themselves. Well, your fan-
tasy wish might be about to come true.
All thanks to the innovative car design-
ers at Toyota Motor Company.
Toyota engineers have invented an
automatic car parking system the com-
pany calls Intelligent Parking Assist,
now available on its Prius models in the
UK. All you need do is bring the car next
to a parking space and press a button
on the dash. The cars rear mounted
camera and a radar sensor senses and
judges whether the space is adequate
for the car and then guides the car to-
ward the curb into the parking spot.
The system has been available in Japan
since 2003 and in the U.K. since 2005. It
is soon coming to the U.S. Look for it on
a road near you.
The Intelligent Parking Assist is but one component of a program at Toyota called Mobility TomorrowProviding mobility
that is friendly to people, society, and the environment. One of its works in progress is a collision avoidance and injury reduc-
tion system. The roadside sensors mounted on the car will detect approaching vehicles, pedestrians, even a curbside or a
roadblock, and warn the driver. In a second application, the system will provide information in real time about traffc conditions
ahead and will suggest alternative routes. It will also update information on parking lot availability and make a reservation if
desired. A network hookup will send notices for the cars scheduled maintenance, send automatic alerts about an accident or
theft, make automatic payments at gas stations, transmit medical records to a preauthorized medical facility, and of course,
download your favorite music. The goal of the Mobility Tomorrow program is to enhance your total usability experience.
Marketing is a lot of things to a lot of people. But its core purpose is to make a consumers life more satisfying.
To Keep Romancing the Consumer.
Source: Toyota Motors Corporation Web site.
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WHO SHOULd STUdY CONSUMER BEHAVIOR?
Tere are four parties who should be interested in a study of consumer behavior and can
beneft from understanding consumer behavior. Tey are (1) marketers, (2) social organi-
zations, (3) public policy makers, and (d) consumers themselves.
An Experiential Journey
But dont worry, this is not a preachy reading. We wont draw your attention to your
splurges and shopping sprees, and we wont embarrass you for your stinginess or penny-
wise, pound-foolish actions. Te books goal is to describe the consumer phenomenon,
not to prescribe it. In fact, we dont really tell you anything about your own behavior at
all. You see, when we say you will understand your motives, for example, we dont mean
that in the book we tell you specifcally what your motives are. How could we? Rather,
what we do is this: we give a litany of possible consumer motives and tell you what sort
of behaviors these motives cause and under what circumstances. And we do the same for
other topics, such as perceptions, attitudes, and decision-making. Now, that is where the
fun begins. You read a topic with all its whats, hows, and whys and then apply it to your
own personal situation.
We give you a universal template with a collage of mirrors of diferent shapes and siz-
es, so to speak, and you fnd for yourself which mirror refects you the best. Tat is where
it becomes a learning experience. Or experiential learning. Tat is why it is a discovery ex-
peditionabout yourself and about the world of consumers. Welcome to the expedition!
MATERIAL OMITTEd (1 PAgE)
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receive from an exchange. And we identifed four broad
categories of value: utilitarian, social, ego, and recreation-
al (i.e., hedonic), captured in the acronym USER. All
consumer needs can be grouped into this classifcation.
We then raised a question, Does marketing create con-
sumer needs? Tis charge, often levied against market-
ing, is based on the mistaken view of consumer needs,
we argue. Marketing merely presents products and brings
their benefts to consumers attention, and consumers
pick and choose what meets their needs. We point out
that many products fail despite great marketing prowess,
and the only products that succeed are those that satisfy
consumers needs.
Satisfying a consumer need is the very purpose of
business. And in order to do just that, marketers must, we
argue, study consumer behavior. Te study of consumer
behavior is built upon the core disciplines of anthropol-
ogy, sociology, psychology, and economics. And besides
marketers, social organizations and public policy agents
too must study it. Lastly, consumers themselves should
study it so they may understand their own consumer be-
havior. Tis book is directed at all students of consumer
behaviorand who among us is not a student in the
school of life? Our gain from reading the book is two-
foldfrst, we refect on and understand our own behav-
ior as consumers; and second, we become knowledgeable
about how, as marketers, we must fashion our marketing
programs so as to appeal to consumers.
We began this introductory chapter with a basic fact:
we spend most of our waking hours as consumers. We are
consumers 24/7! Tis is because we defned consumer
behavior as not just the act of buying and consuming but
also as all of the mental and physical activities we under-
take when we contemplate and experience productsan
ongoing process that begins much before we actually
acquire and consume a product, and continues, in our
memories, long afterwards.
Taking the viewpoint of consumers 24/7, we por-
trayed marketplace products as solutions to consumer
needs and wants. We then defned need as a discomfort-
ing condition, whether physiological or psychological,
and want as a desire for specifc solutions to that con-
dition. We next identifed three essentials that frame all
consumer behavior: exchange, resources, and value. Con-
sumers marketplace activities are basically an exchange
with marketers, where consumers acquire products and
part with their money. Money is one of the fve resources
consumers possess, the other four being time, knowledge,
physical energy, and social capital. Sometimes consumers
conserve money (i.e., pay less) by supplementing the pay-
ment with their time, efort, or skills. And many products
are acquired with money so as to build up the other four
resources. In all these exchanges, and regardless of what-
ever resources they invest and expend, what consumers
seek frst, foremost, and always is value.
We defned value as the set of net benefts consumers
S U M M A R Y
K E Y T E R M S
Marketers
Mental activities
Need
Physical activities
Product
Psychology
Recreation Value
Anthropology
Consumer
Consumer Behavior
Economic
Ego/Identity Value
Exchange
Hedonic Value
Resource
Social Capital
Social Value
Sociology
Utilitarian Value
Value
Want
Y O U R T U R N
Briefy explain what aspects of consumer behavior are
enlightened by various disciplines, such as econom-
ics, anthropology, sociology, etc.
THINK+Apply
Give an example from your own life in which you
exchanged one resource for the other four.
Give an example of each exchange value you have
sought in recent marketplace exchange.
Some accuse marketing of creating consumer needs,
making us buy things we did not need. Do you agree
6.
1.
2.
3.
REVIEW+Rewind
What is consumer behavior? Isnt it basically people
buying products? Why or why not?
Who should study consumer behavior and why?
How are needs and wants defned here? Are these
defnitions diferent from how we use the words need
and wants in everyday language? Which approach to
defning these is better and why?
What are the fve resources all consumers have?
What is the USER model of consumer value?
1.
2.
3.
4.
5.
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whether your arguments had any efect on his/her
initial view.
An Extended Engagement Because this question is
fundamental to consumer behavior and marketing, this
exercise can become an extended engagement as you read
the rest of the book.
Maybe the interview in Question 4 above has caught
up with you, and you are now eager to educate everyone
about this enlightened point of view. Over the next several
months, carry on the same dialog with several consumers,
and record your experience with their responses. Refect
on and describe why you were successful (in educating
these consumers) in some cases and not in others.
[Remember, for the frst half of your conversation, and
towards the closing, you are more of a listener, trying to
understand the consumers point of view from the con-
sumers perspective. If you do this successfully, you will
have developed the important skills of listening and be
ready to understand consumers frsthand on a variety of
topics we will cover in this book.]
In the Marketing Managers Shoes
Most concepts in the chapter have some lessons for
the marketing manager; i.e., they suggest to the market-
ing manager what to do diferently in practice. Indeed,
often these applications are implicit in our explanations
of the concepts and models in the chapter. Identify at
least fve specifc applications of the chapters concepts
all of which should be entirely newdiferent from the
examples cited here.
or disagree? Defend your answer.
A Must do
Write a short memo to yourself, evangelizing how
this book is going to beneft you personally in your
role as (a) a consumer, and (b) a marketing profes-
sional (current or future).
PRACTICE+Experience
Write a journal of your own consumer behavior of
the past one week, Record one episode each for when
you were an economic creature, a problem solver, a
computer, a shopper, and (here comes your favorite
part) a reveler.
Find four advertisements that ofer, individually, each
of the four values of the USER model, and explain
your selections.
Interview a consumer (similar to the interview of
Jackie in the chapter), and then identify the four
values of the USER model in his or her consumer
behavior. (Direct your topics so that the interview re-
veals all four values.)
Set up a dialog with a consumer to debate the twin-
concepts of needs and wants. Start by asking what
products he or she has bought recently and why. Lead
into whether the consumer thinks he or she needed
them and then whether he or she thinks marketers
created this need. First listen so you understand his
or her point of view, and then proceed to argue the
point of view laid out in this chapter. Make a note
of the consumers reactions, and then comment on
4.
1.
2.
3.
4.
A Photo Quiz
A product can serve
more than one need, as cap-
tured in the acronym USER.
Which needs do the products
in this picture serve for this
consumer, ------------?
Discuss the role market-
ing might have played in ___
acquisition and consumption
experience of these products,
especially in relation to the
role of other factors or forces
in ____s life.
2002 Suzuki Intruder VS800;
helmet by HJC Helmets;
jacket by Joe Rockets
(Ballistic Series); and cool
shades from Serengeti.
IMAgE
OMITTEd
IMAgE
OMITTEd
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