1. Chapter One Understanding Consumer Behavior

2. Copyright © Houghton Mifflin Company. All rights reserved.7 | 2Copyright © Houghton Mifflin Company. All rights reserved.1 | 2 Key Concepts Define consumer behavior and explain its elements Identify the four domains of consumer behavior Discuss the benefits of studying consumer behavior

3. Copyright © Houghton Mifflin Company. All rights reserved.7 | 3Copyright © Houghton Mifflin Company. All rights reserved.1 | 3 Marketing “…an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” Source: American Marketing Association, http://www.marketingpower.com/content4620.phphttp://www.marketingpower.com/content4620.php

4. Copyright © Houghton Mifflin Company. All rights reserved.7 | 4Copyright © Houghton Mifflin Company. All rights reserved.1 | 4 Consumer Behavior Reflects totality of consumer’s decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas by (human) decision making units (over time).

5. Copyright © Houghton Mifflin Company. All rights reserved.7 | 5Copyright © Houghton Mifflin Company. All rights reserved.1 | 5 Consumer Behavior Involves Attitude Towards Products Services Activities Ideas

6. Copyright © Houghton Mifflin Company. All rights reserved.7 | 6Copyright © Houghton Mifflin Company. All rights reserved.1 | 6 What Is Consumer Behavior? (Exhibit 1.2)

7. Copyright © Houghton Mifflin Company. All rights reserved.7 | 7Copyright © Houghton Mifflin Company. All rights reserved.1 | 7 Consumer Behavior & Consumption Acquisition Usage Disposition

8. Copyright © Houghton Mifflin Company. All rights reserved.7 | 8Copyright © Houghton Mifflin Company. All rights reserved.1 | 8 Consumer Behavior Dynamic process Can involve many people Involves many decisions

9. Copyright © Houghton Mifflin Company. All rights reserved.7 | 9Copyright © Houghton Mifflin Company. All rights reserved.1 | 9 Consumer Decisions Whether? What? Why? Why Not? How? Ways? When? Where? How much? How often? How long?

10. Copyright © Houghton Mifflin Company. All rights reserved.7 | 10Copyright © Houghton Mifflin Company. All rights reserved.1 | 10 Model Of Consumer Behavior (Exhibit 1.8)

11. Copyright © Houghton Mifflin Company. All rights reserved.7 | 11Copyright © Houghton Mifflin Company. All rights reserved.1 | 11 What Affects Consumer Behavior? Psychological Core Process of Making Decisions Consumer’s Culture Consumer Behavior Outcomes

12. Copyright © Houghton Mifflin Company. All rights reserved.7 | 12Copyright © Houghton Mifflin Company. All rights reserved.1 | 12 Psychological Core Motivation, Ability, and Opportunity Exposure, Attention, and Perception Categorizing and Comprehending Information Forming and Changing Attitudes Forming and Retrieving Memories

13. Copyright © Houghton Mifflin Company. All rights reserved.7 | 13Copyright © Houghton Mifflin Company. All rights reserved.1 | 13 Decision Making Process Problem Recognition & Search for Information Judgments & Decisions Post-Decision Evaluations

14. Copyright © Houghton Mifflin Company. All rights reserved.7 | 14Copyright © Houghton Mifflin Company. All rights reserved.1 | 14 Consumer’s Culture: External Processes/Influences Diversity Social Class & Household Values, Personality, & Lifestyles Reference Groups

15. Copyright © Houghton Mifflin Company. All rights reserved.7 | 15Copyright © Houghton Mifflin Company. All rights reserved.1 | 15 Consumer Behavior Outcomes Symbolize who we are- external signs used to express our identity Diffuse through a market- influence others’ decision making

16. Copyright © Houghton Mifflin Company. All rights reserved.7 | 16Copyright © Houghton Mifflin Company. All rights reserved.1 | 16 Who Benefits from Study of Consumer Behavior? Marketing Managers Ethicists/Advocacy Groups Public Policy Makers/Regulators Academics Consumers

17. Copyright © Houghton Mifflin Company. All rights reserved.7 | 17Copyright © Houghton Mifflin Company. All rights reserved.1 | 17 Subfields of Consumer Psychology/Behavior Advertising- Radio/TV, magazines, etc. Consumer perception- Consumers “taste” with their eyes and ears Life stages- Consumers view product/service from level of maturity Motivation- Why do consumers purchase? Psychology of price- What is something really worth? Source: http://www.wcupa.edu/_ACADEMICS/sch_cas.psy/Career_Paths/Consumer/Career05.htmhttp://www.wcupa.edu/_ACADEMICS/sch_cas.psy/Career_Paths/Consumer/Career05.htm