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CONSUMER BEHAVIOR:CONSUMER BEHAVIOR:A FRAMEWORKA FRAMEWORKJohn C. Mowen &John C. Mowen &

Michael S. MinorMichael S. Minor

CONSUMER BEHAVIOR:CONSUMER BEHAVIOR:A FRAMEWORKA FRAMEWORKJohn C. Mowen &John C. Mowen &

Michael S. MinorMichael S. Minor

Chapter 1: An Introduction toChapter 1: An Introduction to

Consumer BehaviorConsumer Behavior

Published by Prentice, Inc.Published by Prentice, Inc.


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PENERBIT ERLANGGADesign by Cahyo

Concepts to Learn

Definition of CB

Consumer primacy Environmental analysis

Positioning/differentia-tion

Segmentation

Theory and CB

Researchperspectives onconsumer behavior

Exchange processes

Organizing model ofconsumer behavior


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Consumer Behavior . . .

. . . is defined as thestudy of the buying units

and the exchangeprocesses involved inacquiring, consuming, anddisposing of goods,

services, experiences, andideas.


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Why Study Consumer

Behavior?

Foundation of Marketing

Management Public Policy and Consumer

Behavior

Altruistic Marketing

Personal Value


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Three Research PerspectivesThree Research Perspectives

on Consumer Behavioron Consumer Behavior

The Decision-Making Perspective

The Experiential Perspective

The Behavioral InfluencePerspective


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The Decision-Making

Perspective . . .

. . . proposes thatbuying results fromconsumers perceivingthat they have aproblem and then theymove through a seriesof rational steps tosolve the problem

Problem Recognition

Search

AlternativeEvaluation

ChoicePostacquistionEvaluation

Generic Decision Model


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The Experiential

Perspective.. . . proposes that in someinstances buying results

from the consumers needfor fun, to createfantasies, obtainemotions, and feelings.

Frequently usesinterpretative researchmethods.


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The Behavioral Influence

Perspective . . .

. . . assumes that strong

environmental forces propelconsumers to make purchaseswithout necessarily first developing

strong feelings or beliefs about theproduct.


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Exchange Processes and

Consumer Behavior

Exchange is the process

that involves thetransfer of somethingtangible or intangible,actual or symbolic,

between two or moresocial actors.


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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 anddelivery

Each party must be free to accept or reject theother's offer

Each party must believe that it is appropriate ordesirable to deal with the other


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Elements of ExchangeSix Types of Resources Are

Exchanged:

Goods

Service

Money

Information

Status

Feelings


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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


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Relational exchange Current hot topic in marketing Characteristics

long term reciprocal obligations non-economic rewards: market

embeddedness--social ties between buyerand seller increase perceived value of

exchange. extensive formal and informalcommunications

high interdependence planning

Relational exchange practiced between


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Market Embeddedness

The social ties between buyer and

seller increase the perceived valueof the exchange.

Examples, house parties of: Tupperware

Mary Kay Cosmetics


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Ethical Issues in Consumer

Exchange Relations Ethics is the study of

the normative

judgments concernedwith what is morallyright and wrong, goodand bad.

Free riding: exampleof an unethical action.


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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 ones personal values in exchangefor 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.


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Ethical rules of thumb

Golden rule: act in a way that youwould expect others to act toward you.

professional ethic: take actions thatwould be viewed as proper by an

unbiased panel of colleagues. TV test: Would I feel comfortable

explaining my actions on nationaltelevision?

Kants categorical imperative: foregoacts, that if used as a universalprinciple of behavior, would result innegative societal outcomes.


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An Organizing Model of

Consumer Behavior

The model has five primary components:

The Buying Unit

The Exchange Process

The Marketers Strategy

The Individual Influencers The Environment


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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


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Environmental Analysis:

the marketer assesses the impact of each ofthe below facets of the environment on thefirm.

situations

groups and families

culture

subculture cross cultural issues

regulatory environment


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Managerial Applications

Analysis (SPERM) Five factors to consider when usingconsumer behavior principles to develop

managerial strategy are: segmentation

positioning and differentiation

environmental analysis

marketing research

marketing mix

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