Chapter 1

INTRODUCTION TO
CONSUMER BEHAVIOR

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

7
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

10
 Chapter 1 Review

• Definition of CB
» Exhibit 1-2 (pg. 4)

• Factors that affect CB

» Exhibit 1-9 (pg. 14)

• Why should we study CB?

11