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


that they have a  Search

problem and then  Alternative

they move through a
series of rational
Evaluation
 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 Buying Unit

 The Exchange Process
 The Marketer’s Strategy
 The Individual Influencers
 The 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