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Chapter 1 Consumers Rule

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Chapter 1 Consumers Rule By Michael R. Solomon Consumer Behavior Buying, Having, and Being Sixth Edition Opening Vignette: Gail What useful ways can marketers ... – PowerPoint PPT presentation

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Title: Chapter 1 Consumers Rule


1
Chapter 1Consumers Rule
By Michael R. Solomon
Consumer Behavior Buying, Having, and Being Sixth
Edition
2
Opening Vignette Gail
  • What useful ways can marketers categorize Gail as
    a consumer?
  • How do others influence Gails purchase
    decisions?
  • What role did brand play in Gails surfing
    habits?
  • What other factors influence Gails evaluation of
    products?

3
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 desires
  • Role Theory
  • Identifies consumers as actors on the marketplace
    stage
  • Consumer Behavior is a Process
  • Exchange A transaction in which two or more
    organizations give and receive something of value

4
Some Issues That Arise During Stages in the
Consumption Process
Figure 1.1
5
Consumer Behavior InvolvesMany Different Actors
  • Consumer
  • A person who identifies a need or desire, makes a
    purchase, and then disposes of the product
  • Many people may be involved in this sequence of
    events.
  • Purchaser / User / Influencer
  • Consumers may take the form of organizations or
    groups.

6
Consumers Impact onMarketing Strategy
  • Market 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
    groups
  • Demographics
  • Statistics that measure observable aspects of a
    population
  • Ex. Age, Gender, Family Structure, Social Class
    and Income, Race and Ethnicity, Lifestyle, and
    Geography

7
A Lesson Learned
  • Nike 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?

8
Market Segmentation
  • Finely-tuned marketing
  • segmentation strategies
  • allow marketers to
  • reach only those
  • consumers likely to be
  • interested in buying
  • their products.

9
Consumers Impact onMarketing Strategy (cont.)
  • Relationship Marketing Building Bonds with
    Consumers
  • Relationship marketing
  • The strategic perspective that stresses the
    long-term, human side of buyer-seller
    interactions
  • Database marketing
  • Tracking consumers buying habits very closely,
    and then crafting products and messages tailored
    precisely to peoples wants and needs based on
    this information

10
Marketings Impact on Consumers
  • Marketing and Culture
  • Popular Culture
  • Music, movies, sports, books, celebrities, and
    other forms of entertainment consumed by the mass
    market.
  • Marketers play a significant role in our view of
    the world and how we live in it.

11
Popular Culture
  • Companies often create product icons to develop
    an
  • identity for their products. Many made-up
    creatures and
  • personalities, such as Mr. Clean, the Michelin
    tire man and
  • the Pillsbury Doughboy, are widely recognized
    figures in
  • popular culture.

12
Marketings Impact on Consumers The Meaning of
Consumption
  • The 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 attachment
  • Nostalgic attachment
  • Interdependence
  • Love

13
Discussion Question
  • What kind of statement does the Nike Swoosh make?

14
Marketings Impact on Consumers The Meaning of
Consumption (cont.)
  • Consumption includes intangible experiences,
    ideas and services in addition to tangible
    objects.
  • Four types of Consumption Activities
  • Consuming as experience
  • Consuming as integration
  • Consuming as classification
  • Consuming as play

15
Marketings Impact on Consumers The Global
Consumer
  • By 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.
  • Globalization has resulted in varied perceptions
    of the United States (both positive and
    negative).

16
The Global Consumer
  • American products like Levi jeans are in
  • demand around the world.

17
Marketings Impact on Consumers Virtual
Consumption
  • The 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.

18
Virtual Brand Communities
19
Blurred BoundariesMarketing and Reality
  • Marketers 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.

20
Blurred Boundaries
  • Marketing managers
  • often borrow imagery
  • from other forms of
  • popular culture to
  • connect with an
  • audience. This line of
  • syrups adapts the look
  • of a pulp detective
  • novel.

21
Marketing Ethics and Public Policy
  • Business Ethics
  • Rules of conduct that guide actions in the
    marketplace
  • The standards against which most people in the
    culture judge what is right and what is wrong,
    good or bad
  • Notions of right and wrong differ among people,
    organizations, and cultures.

22
Needs and WantsDo Marketers Manipulate
Consumers?
  • Consumerspace
  • Do marketers create artificial needs?
  • Need A basic biological motive
  • Want One way that society has taught us that
    need can be satisfied
  • Are 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.

23
Discussion Question
  • This ad was created by the American Association
    of Advertising Agencies to counter charges that
    ads create artificial needs.
  • Do you agree with the premise of the ad? Why or
    why not?

24
Public Policy and Consumerism
  • Consumer efforts in the U.S. have contributed to
    the establishment of federal agencies to oversee
    consumer-related activities.
  • Department of Agriculture
  • Federal Trade Commission
  • Food and Drug Administration
  • Securities and Exchange Commission
  • Environmental Protection Agency
  • Culture Jamming
  • A strategy to disrupt efforts by the corporate
    world to dominate our cultural landscape

25
The Consumer Product Safety Commission
26
Culture Jamming
  • Adbusters Quarterly is a Canadian magazine
    devoted to culture jamming. This mock ad skewers
    Benetton.

27
Consumerism and Consumer Research
  • Kennedys Declaration of Consumer Rights (1962)
  • Green Marketing
  • When a firm chooses to protect or enhance the
    natural environment as it goes about its
    activities
  • Reducing wasteful packaging
  • Donations to charity
  • Social Marketing
  • Using marketing techniques to encourage positive
    activities (e.g. literacy) and to discourage
    negative activities (e.g. drunk driving)

28
Consumer Related Issues
  • UNICEF sponsored this advertising campaign
    against child labor. The field of consumer
    behavior plays a role in addressing important
    consumer issues such as child exploitation.

29
The Dark Side of Consumer Behavior
  • Consumer Terrorism
  • An example Susceptibility of the nations food
    supply to bioterrorism
  • Addictive Consumption
  • Consumer addiction
  • A physiological and/or psychological dependency
    on products or services
  • Compulsive Consumption
  • Repetitive shopping as an antidote to tension,
    anxiety, depression, or boredom

30
The Dark Side of Consumer Behavior (cont.)
  • Consumed Consumers
  • People who are used or exploited, willingly or
    not, for commercial gain in the marketplace
  • Illegal Activities
  • Consumer Theft
  • Shrinkage The industry term for inventory and
    cash losses from shoplifting and employee theft
  • Anticonsumption
  • Events in which products and services are
    deliberately defaced or mutilated

31
Consumer BehaviorAs a Field of Study
  • Consumer behavior only recently a formal field of
    study
  • Interdisciplinary influences on the study of
    consumer behavior
  • Consumer behavior studied by researchers from
    diverse backgrounds
  • Consumer phenomena can be studied in different
    ways and on different levels

32
Journal of Consumer Research
33
The Pyramid of Consumer Behavior
Figure 1.2
34
Consumer Behavior Disciplines
  • The Issue of Strategic Focus
  • Should CB have a strategic focus or be studied as
    a pure social science?
  • The Issue of Two Perspectives on Consumer
    Research
  • Positivism (modernism)
  • Paradigm that emphasizes the supremacy of human
    reason and the objective search for truth through
    science
  • Interpretivism (postmodernism)
  • Paradigm that emphasizes the importance of
    symbolic, subjective experience and meaning is in
    the mind of the person

35
Positivist vs. Interpretivist Approaches to CB
36
Taking it From HereThe Plan of the Book
  • Section I Consumer Behavior
  • Section II Consumers as Individuals
  • Section III Consumers as Decision Makers
  • Section IV Consumers and Subcultures
  • Section V Consumers and Culture

37
The Wheel of Consumer Behavior
Figure 1.3
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