1. Ch. 1 Consumer Behavior vs. Marketing Strategy
What is Consumer Behavior?
The dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives.
The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

2. Why Is It Important?
“The purpose of a business is to create and keep a customer.” -- Ted Levitt
Ex: Federal Express
A deep understanding of consumers is extremely useful for developing effective marketing strategies.
Ex: Pizza, Coffee
It is also important to public policy makers.

3. Marketing organizations Government and political organizations
Relationships among Action-Oriented Groups Interested in Consumer Behavior
Marketing organizations
Marketing strategies
Public Policy
Government and political organizations
Consumer activities
Consumers

4. Marketing Strategy
A plan designed to influence exchanges to achieve organizational objectives.
Typically, a marketing strategy is intended to increase the probability or frequency of certain consumer behaviors.
External Influence
Consumer Behavior
Marketing Strategy
Internal Influence

5. Marketing Strategy and Consumer Behavior
1-1
Outcomes
Individual
Firm
Society
Problem Recognition
Information Search
Alternative Evaluation
Purchase
Use
Evaluation
Consumer Decision Process
Marketing Strategy
Product, Price, Distribution,
Promotion, Service
Identify product-related need sets
Group Customers with similar need sets
Describe each group
Select attractive segment(s) to target
Marketing Segmentation
Company
Competitors
Conditions
Consumers
Marketing Analysis
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

6. Overall Model of Consumer Behavior
1-5
EXTERNAL INFLUENCES
Culture
Subculture
Demographics
Social Status
Reference Groups
Family
Marketing Activities
Experiences and Acquisitions
SITUATIONS
Problem
Recognition
Information
Search
Alternative Evaluation
and Selection
Outlet Selection
and Purchases
Postpurchase
Processes
SELF-CONCEPT
and
LIFESTYLE
Needs
Desires
INTERNAL INFLUENCES
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes
Experiences and Acquisitions

7. Cultural anthropology
Approaches to the Study of Consumer Behavior
Approach
Interpretive
Core Disciplines
Cultural anthropology
Primary Objectives
Understand consumption and its meaning
Primary Methods
Long interviews & focus groups

8. Approaches to the Study of Consumer Behavior (cont.)
Traditional
Core Disciplines
Psychology & Sociology
Primary Objectives
Explain consumer decision making and behavior
Primary Methods ??

9. Approaches to the Study of Consumer Behavior (cont.)
Marketing Science
Core Disciplines
Economics & Statistics
Primary Objectives
Predict consumer choice and behavior
Primary Methods ??