1. Chapter 1: An Introduction to Consumer Behavior
Consumer Behavior: A Framework John C. Mowen Michael S. Minor CONSUMER BEHAVIOR: A FRAMEWORK John C. Mowen & Michael S. Minor
Chapter 1: An Introduction to Consumer Behavior
Published by Prentice, Inc.

2. Concepts to Learn Definition of CB Theory and CB Consumer primacy
Environmental analysis
Positioning/differentiation
Segmentation
Theory and CB
Research perspectives on consumer behavior
Exchange processes
Organizing model of consumer behavior

3. Consumer Behavior . . .
. . . is defined as the study of the buying units and the exchange processes involved in acquiring, consuming, and disposing of goods, services, experiences, and ideas.

4. Why Study Consumer Behavior?
Foundation of Marketing Management
Public Policy and Consumer Behavior
Altruistic Marketing
Personal Value

5. Three Research Perspectives on Consumer Behavior
The Decision-Making Perspective
The Experiential Perspective
The Behavioral Influence Perspective

6. The Decision-Making Perspective . . .
. . . proposes that buying results from consumers perceiving that they have a problem and then they move through a series of rational steps to solve the problem
Generic Decision Model
Problem Recognition
Search
Alternative Evaluation
Choice
Postacquistion Evaluation

7. The Experiential Perspective.
. . . proposes that in some instances buying results from the consumer’s need for fun, to create fantasies, obtain emotions, and feelings.
Frequently uses interpretative research methods.

8. The Behavioral Influence Perspective . . .
. . . assumes that strong environmental forces propel consumers to make purchases without necessarily first developing strong feelings or beliefs about the product.

9. Exchange Processes and Consumer Behavior
Exchange is the process that involves the “transfer of something tangible or intangible, actual or symbolic, between two or more social actors.”

10. 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 and delivery
Each party must be free to accept or reject the other's offer
Each party must believe that it is appropriate or desirable to deal with the other

11. Elements of Exchange Six Types of Resources Are Exchanged:
Goods
Service
Money
Information
Status
Feelings

12. 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

13. Relational exchange Current hot topic in marketing Characteristics
long term
reciprocal obligations
non-economic rewards: market embeddedness--social ties between buyer and seller increase perceived value of exchange.
extensive formal and informal communications
high interdependence
planning
Relational exchange practiced between members of marketing channel.

14. Market Embeddedness
The social ties between buyer and seller increase the perceived value of the exchange.
Examples, house parties of:
Tupperware
Mary Kay Cosmetics

15. Ethical Issues in Consumer Exchange Relations
Ethics is the study of the normative judgments concerned with what is morally right and wrong, good and bad.
Free riding: example of an unethical action.

16. 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 one’s personal values in exchange for 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.

17. Ethical rules of thumb
Golden rule: act in a way that you would expect others to act toward you.
professional ethic: take actions that would be viewed as proper by an unbiased panel of colleagues.
TV test: Would I feel comfortable explaining my actions on national television?
Kant’s categorical imperative: forego acts, that if used as a universal principle of behavior, would result in negative societal outcomes.

18. An Organizing Model of Consumer Behavior
The model has five primary components:
The Buying Unit
The Exchange Process
The Marketer’s Strategy
The Individual Influencers
The Environment

19. Marketer, who develops strategy
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

20. Environmental Analysis:
the marketer assesses the impact of each of the below facets of the environment on the firm.
situations
groups and families
culture
subculture
cross cultural issues
regulatory environment

21. Managerial Applications Analysis (PERMS)
Five factors to consider when using consumer behavior principles to develop managerial strategy are:
positioning and differentiation
environmental analysis
marketing research
marketing mix
segmentation