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Chapter 2

INTRODUCTION TO
CONSUMER BEHAVIOR

Prof. Sandeep Rathod

1
Definition

Consumer behavior reflects


all decisions about the
acquisition, consumption
and disposal of an offering
by people over time.

2
Implications of our Definition

• Totality of Decisions (all


decisions)
» Whether?
» What?
» Why?
» How?
» When?
» Where?
» How much?
» How often?

3
Implications of Our Definition,
cont.

• In addition to buying, “CB” includes:


» a
» using
» d
• An “offering” can be
» product
» service
» idea
» activity

4
Implications of Our Definition,
cont.

• Consumer behavior
» may involve several people (decision making
units)
» is dynamic (changes over time)

5
Definition

Consumer behavior reflects


all decisions about the
acquisition, consumption
and disposal of an offering
by people over time.

6
Small Group Exercise

• In groups of 3-4, address one of the following


questions:
» what factors affect CB? (Hint: what are the four
“domains of CB?” see pages 12-18)
» why should we study CB? (Hint: who benefits from
the study of CB? See pages 19-21)
• Discuss and be prepared to share your ideas
with the class!
» Write ideas down on paper, record group member
names

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Influences on Consumer
Behavior

• Psychological core
• Culture: External Influences
• Process of Making Decisions
• CB Outcomes

• Exhibit 1-9 (pg. 14)


• CONSUMER BEHAVIOR MAN!!

8
Groups Interested in
Consumer Behavior Issues

• Marketing Managers

• Consumers

• Regulators and
public policy makers

• Ethicists

9
Why Study Consumer
Behavior?

• Marketing applications of
consumer behavior:
» Market segmentation
» Target market selection
» Positioning
» Product or service decisions
» Pricing decisions
» Distribution decisions
» Promotion decisions

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