1

What is CB
and Why
Should I
Care?

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
 LEARNING OUTCOMES

1 Understand the meaning of consumption and

consumer behavior
2 Describe how competitive marketing
environments lead to better outcomes for
consumers
3 Explain the role of consumer behavior in
business and society

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 2
 LEARNING OUTCOMES

4 Be familiar with basic approaches to

studying consumer behavior
5 Appreciate how dynamic the field of
consumer behavior continues to be
particularly with respect to technological
advances such as big data applications

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 3
 Consumer Behavior as Human Behavior

Consumer behavior: Set of value-seeking

activities that take place as people go about
addressing their real needs
Involves multiple psychological events
Thinking, feeling, and behaving; the entire
process culminates in value
Consumption: Process by which consumers
use goods, services, or ideas and transform
the experience into value

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 4
 Firm Orientations and Consumers

Competition drives companies toward a

high degree of consumer orientation
Consumer orientation: Way of doing business in
which actions and decision making prioritize
consumer value and satisfaction
Market orientation: Organizational culture
that embodies the importance of creating
value for customers among all employees

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 5
 Firm Orientations and Consumers

Stakeholder marketing: Firms recognize that

more than just the buyer and seller are involved
in the marketing process
Primary - Customers, employees, owners,
suppliers, and regulating agencies
Secondary - Mass media, communities, and
trade organizations
Relationship marketing: Activities based on the
belief that the firms performance is enhanced
through repeat business

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 6
 CB Fields Role in Business, Society, and for
Consumers

Offers an input to business/marketing strategy

Provides a force that shapes society

Gives an input to making responsible decisions as a consumer

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 7
 Different Approaches to Studying Consumer
Behavior

Interpretive research: Seeks to explain the

inner meanings and motivations associated
with specific consumption experiences
Falls into the broader category of qualitative
research
- Qualitative research tools: Means for
gathering data in a relatively unstructured
way
Case analysis, clinical interviews, and focus group
interviews

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 8
 Types of Interpretative Orientations

Phenomenology: Study of consumers that

relies on interpretation of their lived
experience associated with some aspect of
consumption
Relies on casual interviews with consumers by
winning their confidence and trust.
Ethnography: Study of consumers that
relies on interpretation of artifacts to draw
conclusions about consumption

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 9
 Types of Interpretative Orientations

Ethnographer decides to go through trash or see

the inside of a refrigerator in an effort to learn
about the consumer
Netnography: Branch of ethnography that
studies the behavior of online cultures and
communities
- Results help to explore the interplay between
brands, products, and belonging based on
virtual relationships

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 10
 Different Approaches to Studying Consumer
Behavior

Quantitative research: Addresses questions

about consumer behavior using numerical
measurement and analysis tools
Data are not researcher dependent
Enables researchers to test hypotheses as
compared to interpretive research
Stands on its own and does not require deep
interpretation

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 11
 Consumer Behavior is Dynamic

Internationalization
Companies are required to deal with
geographical distances and cultural distances
Different cultures people interpret products and
behaviors differently
- Consumer perception will determine the
success or failure of the product

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 12
 Consumer Behavior is Dynamic

Changing technology
Internet has made geographical distance a
nonissue
- Consumer can shop on his or her own
schedule
Big data: Represents massive amounts of data
available to companies that can be used to
predict customers behaviors
- Scanner purchase data, survey responses,
web traffic records, social network
interactions, and GPS tracking
Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 13
 Consumer Behavior is Dynamic

- Predictive analytics: Application of statistical

tools to discover patterns in data that allow
prediction of consumer behavior
Changing demographic trends
Households include two primary income
providers
Family size is decreasing throughout western
culture

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 14
 Consumer Behavior is Dynamic

Changing economy
Factors contributing to stagnant income
- Unemployment
- Limited prospects in the workforce
- Decreased opportunity to work at an
acceptable wage
Consumers are cautious about expenses and
react favorably to price-cutting policies
- Private label brands become attractive
alternatives for saving money

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 15
 SUMMARY

Consumer behavior is a set of value-seeking

activities and consumption is the process
where experience is transformed into value
Consumer behavior provides inputs for
marketing strategies and shapes society
Qualitative and quantitative approaches are
used to study consumer behavior
Consumer behavior varies with dynamicity
in technology, demography, and economy

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 16
 KEY TERMS

Consumer behavior Neuroscience

Exchange Marketing
Costs Sociology
Benefits Anthropology
Want Consumer orientation
Consumption Market orientation
Economics
Stakeholder marketing
Psychology
Relationship marketing
Social psychology
Cognitive psychology Touchpoints
Resource-advantage
theory
Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 17
 KEY TERMS

Attributes Interpretive research

Products Qualitative research
tools
Product orientation
Research dependent
Differentiated
marketers Phenomenology
Undifferentiated Ethnography
marketing Netnography
One-to-one Quantitative research
marketing Big data
Niche marketing Predictive analytics

Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 18
Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH3 19