Chapter 1 Consumers Rule

Chapter 1Consumers RuleBy Michael R. SolomonConsumer BehaviorBuying, Having, and Being

1 - #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 desiresRole Theory:Identifies consumers as actors on the marketplace stageConsumer Behavior is a Process:Exchange: A transaction in which two or more organizations give and receive something of value 1 - #Some Issues That Arise During Stages in the Consumption ProcessFigure 1.1

1 - #Consumers Impact onMarketing StrategyMarket 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 groupsDemographics:Statistics that measure observable aspects of a populationEx.: Age, Gender, Family Structure, Social Class and Income, Race and Ethnicity, Lifestyle, and Geography 1 - #A Lesson LearnedNike was forced to pull this advertisement for a running shoe after disabilities rights groups claimed the ads were offensive.How could Nike have done a better job of getting its message across without offending a powerful demographic?

1 - #Market SegmentationFinely-tuned marketingsegmentation strategiesallow marketers toreach only thoseconsumers likely to beinterested in buyingtheir products.

1 - #Consumers Impact onMarketing Strategy (cont.)Relationship Marketing: Building Bonds with ConsumersRelationship marketing: The strategic perspective that stresses the long-term, human side of buyer-seller interactionsDatabase marketing:Tracking consumers buying habits very closely, and then crafting products and messages tailored precisely to peoples wants and needs based on this information

1 - #Marketings Impact on ConsumersMarketing and Culture:Popular Culture:Music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market. 1 - # Popular CultureCompanies often create product icons to develop anidentity for their products. Many made-up creatures andpersonalities, such as Commander Safeguard etc, which are widely recognized figures in popular culture.

1 - #Consumer Behavior InvolvesMany Different ActorsConsumer:A person who identifies a need or desire, makes a purchase, and then disposes of the productMany people may be involved in this sequence of events.Purchaser / User / InfluencerConsumers may take the form of organizations or groups. 1 - #VDO ADvdos\Commander Safeguard Complete 5 Part 1 [www[1].keepvid.com].mp4

1 - # Popular Culture

1 - #VDO ADSvdos\pepsi call.mp4

vdos\walls noori.mp4

1 - #Marketers play a significant role in our view of the world and how we live in it.

1 - #Marketings Impact on Consumers: The Meaning of ConsumptionThe 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 product:Self-concept attachmentNostalgic attachmentInterdependenceLove

1 - #VDO ADvdos\Coke ad (Coke and Meal, Part1) [www[1].keepvid.com].mp4

1 - #

What kind of statement does the Nike Swoosh make?Discussion Question

1 - #

Discussion QuestionDiscussion QuestionDiscussion Question 1 - #Marketings Impact on Consumers: The Meaning of Consumption (cont.)Consumption includes intangible experiences, ideas and services in addition to tangible objects.

1 - #Marketings Impact on Consumers: The Global ConsumerBy 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 overseas.

1 - #The Global ConsumerAmerican products like Levi jeans are indemand around the world.

1 - #The Global Consumer

1 - #Marketings Impact on Consumers: Virtual ConsumptionThe Digital Revolution is one of the most significant influences on consumer behavior.Electronic marketing increases convenience by breaking down the barriers of time and location.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.

1 - #Virtual Brand Communities

1 - #Blurred BoundariesMarketing and RealityMarketers and consumers coexist in a complicated two-way relationship.Its increasingly difficult for consumers to discern the boundary between the fabricated world and reality.Marketing influences both popular culture and consumer perceptions of reality.

1 - #Blurred BoundariesMarketing managersoften borrow imageryfrom other forms ofpopular culture toconnect with anaudience. This line ofsyrups adapts the lookof a pulp detectivenovel.

1 - #Marketing Ethics and Public PolicyBusiness Ethics:Rules of conduct that guide actions in the marketplaceThe standards against which most people in the culture judge what is right and what is wrong, good or badNotions of right and wrong differ among people, organizations, and cultures. 1 - #Needs and Wants:Do Marketers Manipulate Consumers?ConsumerspaceDo marketers create artificial needs?Need: A basic biological motiveWant: One way that society has taught us that need can be satisfiedAre advertising and marketing necessary?Economics of information perspective: Advertising is an important source of consumer information.Do marketers promise miracles?Advertisers simply dont know enough to manipulate people. 1 - #This ad was created to counter charges that ads create artificial needs.Do you agree with the premise of the ad? Why or why not?Discussion Question

1 - #ConsumerismCulture Jamming:A strategy to disrupt efforts by the corporate world to dominate our cultural landscape 1 - #Culture Jamming

Adbusters Quarterly is a Canadian magazine devoted to culture jamming. This mock ad skewers Benetton.

1 - #Consumerism and Consumer ResearchGreen Marketing:When a firm chooses to protect or enhance the natural environment as it goes about its activitiesReducing wasteful packagingDonations to charitySocial Marketing:Using marketing techniques to encourage positive activities (e.g. literacy) and to discourage negative activities (e.g. drunk driving) 1 - #Consumer Related IssuesUNICEF sponsored this advertising campaign against child labor. The field of consumer behavior plays a role in addressing important consumer issues such as child exploitation.

1 - #The Dark Side of Consumer BehaviorConsumer Terrorism:An example: Susceptibility of the nations food supply to bioterrorismAddictive Consumption:Consumer addiction: A physiological and/or psychological dependency on products or servicesCompulsive Consumption:Repetitive shopping as an antidote to tension, anxiety, depression, or boredom

1 - #The Dark Side of Consumer Behavior (cont.)Consumed Consumers:People who are used or exploited, willingly or not, for commercial gain in the marketplaceIllegal Activities:Consumer Theft: Shrinkage: The industry term for inventory and cash losses from shoplifting and employee theftAnticonsumption:Events in which products and services are deliberately defaced or mutilated 1 - #Consumer BehaviorAs a Field of StudyConsumer behavior only recently a formal field of studyInterdisciplinary influences on the study of consumer behaviorConsumer behavior studied by researchers from diverse backgroundsConsumer phenomena can be studied in different ways and on different levels 1 - #The Wheel of Consumer BehaviorFigure 1.3

1 - #

1 - #