1. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

2. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

3. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior and Consumer Research CHAPTER 1

4. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Consumer Behavior? Activities people undertake when obtaining, consuming, and disposing of products and services

5. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Obtaining ConsumingDisposing ConsumerInfluencesOrganizationalInfluences Consumer Behavior

6. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. ConsumerInfluences Organizational Influences

7. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. ConsumerInfluences Organizational Influences Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Feelings Motivations Past Experiences Peer Groups Knowledge Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability

8. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Obtaining ConsumingDisposing ConsumerInfluencesOrganizationalInfluences Consumer Behavior

9. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. ObtainingConsumingDisposing

10. ObtainingConsumingDisposing  How you decide you want to buy  Other products you consider buying  Where you buy  How you pay for product  How you transport product home  How you use the product  How you store the product in your home  Who uses the product  How much you consume  How product compares with expectations  How you get rid of remaining product  How much you throw away after use  If you resell items yourself or through a consignment store  How you recycle some products

11. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. OBTAINING  How you decide you want to buy  Other products you consider buying  Where you buy  How you pay for product  How you transport product home CONSUMING  How you use the product  How you store the product in your home  Who uses the product  How much you consume  How product compares with expectations DISPOSING  How you get rid of remaining product  How much you throw away after use  If you resell items yourself or through a consignment store  How you recycle some products CONSUMER INFLUENCES Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Motivations Past Experiences Feelings Peer Groups Knowledge ORGANIZATIONAL INFLUENCES Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability Consumer Behavior

12. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Consumer Behavior? Activities people undertake when obtaining, consuming, and disposing of products and services A field of study that focuses on consumer activities

13. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Consumer Behavior? Activities people undertake when obtaining, consuming, and disposing of products and services A field of study that focuses on consumer activities Scope goes beyond just why and how people buy to include consumption analysis

14. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Analysis Why and how people use products in addition to why and how they buy

15. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Marketing Concept The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

16. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Marketing Concept The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives Satisfaction with an exchange depends on satisfaction with consumption of product and the exchange of money

17. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior?

18. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Determines the Economic Health of a Nation

19. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Determines the Economic Health of a Nation Consumer Behavior Determines the Success of Marketing Programs

20. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Determines the Success of Marketing Programs Marketing can be used to influence brand choice and purchase, while Demarketing can influence people to stop harmful consumption “The Customer is King” Organization influenced by consumer needs and wants

21. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Determines the Success of Marketing Programs Organizations that are Customer- centric use a total marketing approach to focus their resources on satisfying customers Marketing Process of transforming or changing an organization to have what people will buy

22. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Determines the Economic Health of a Nation Consumer Behavior Determines the Success of Marketing Programs Consumer Behavior Determines the Economic Health of Everyone

23. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Determines the Economic Health of Everyone The individual’s decisions as a consumer determine their economic health by making more effective consumption decisions while avoiding deceptive practices harmful to them

24. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Determines the Economic Health of Everyone Public policy leaders and social commentators study consumer behavior to alleviate overconsumption and underconsumption by educating consumers about problems and providing assistance

25. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Educating Consumers About Crises

26. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Understanding consumers’ issues or problems and developing methods to reach and educate consumers Educating Consumers About Health

27. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Understanding consumers’ issues or problems and developing methods to reach and educate consumers Educating Consumers About Health

28. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Determines the Economic Health of a Nation Consumer Behavior Determines the Success of Marketing Programs Consumer Behavior Determines the Economic Health of Everyone Consumer Behavior Helps Formulate Public Policy

29. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Understanding consumers’ needs to formulate public policy and predicting behavioral changes that follow Helps Formulate Public Policy Interest rates Warning labels Economics Social Welfare Family Planning Government Regulations Government Protection and Education Protection from Competitive Markets

30. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Affects Personal Policy

31. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Study Consumer Behavior? Consumer Behavior Affects Personal Policy Personal policy includes how you behave towards others and in buying situations, your values and beliefs, and how you live your life A person’s economic quality of life is determined by personal policy

32. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Evolution of Consumer Behavior

33. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Evolution of Consumer Behavior Supply Chain: all the organizations involved in taking a product from inception to final consumption - Manufacturers - Wholesalers - Retailers - Facilitating Organizations

34. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Evolution of Consumer Behavior Supply Chain: all the organizations involved in taking a product from inception to final consumption - Manufacturers - Wholesalers - Retailers - Facilitating Organizations Consumers’ Increased Influence on Business

35. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Evolution of Consumer Behavior Wholesaler Manufacturer Retailer Consumer Manufacturing Orientation Consumer Orientation Selling Orientation Marketing Orientation U.S. 1750-1850 1850-WWII 1970-2000 2000+ Europe 1750-1850 1760-WWII 1970-2000 2000+

36. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Evolution of Consumer Behavior Wholesaler Manufacturer Retailer Consumer Manufacturing Orientation Consumer Orientation Selling Orientation Marketing Orientation Consumers’ Increasing Influence U.S. 1750-1850 1850-WWII 1970-2000 2000+ Europe 1750-1850 1760-WWII 1970-2000 2000+

37. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Manufacturing Orientation Evolution of Consumer Behavior

38. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Manufacturing Orientation Selling Orientation Evolution of Consumer Behavior

39. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Manufacturing Orientation Selling Orientation Marketing Orientation Evolution of Consumer Behavior

40. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Manufacturing Orientation Selling Orientation Marketing Orientation - Motivation research - Positivism - Postmodernism Evolution of Consumer Behavior

41. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Evolution of Consumer Behavior Manufacturing Orientation Selling Orientation Marketing Orientation Consumer Orientation

42. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Orientation Beyond a marketing focus How all organizations in a demand chain adapt to changing consumer lifestyles and behaviors bringing product design, logistics, manufacturing, and retailing together Role of consumers in shaping many aspects of life—society, government, social programs, health cares, and other areas

43. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research: Methods of Studying Consumer Behavior

44. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Observation

45. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Observation Observing consumer behaviors in different situations such as natural or artificial settings

46. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Observation In-home observation: examining how and when consumers use and consume products in their households Shadowing: following and observing consumers in the shopping and consumption processes. Researchers may ask questions about reasons for behaviors Physiological methods: Techniques borrowed from medicine, psychology and other sciences including cameras to measure eye movement, galvanic skin response, and MRI

47. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Interviews and Surveys

48. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Interviews and Surveys Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires)

49. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Interviews and Surveys Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires) Focus Groups: a group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest

50. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Interviews and Surveys Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires) Focus Groups: a group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest Longitudinal Studies: repeated measures of activities over time to determine changes in opinions, buying, and consumption behaviors

51. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Experimentation Measuring cause-and-effect relation- ships by manipulating independent variables to determine the effects of changes on dependent variables - Laboratory experiment - Field experiment

52. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Experimentation

53. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Experimentation Attempts to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables - Laboratory experiment - Field experiment Independent variables might include number of advertisements and package design Dependent variables might include purchase intent or behavior

54. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Consumption Research

55. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Consumption Research Builds on the three primary research methods to examine how people use products and services rather than how they buy them

56. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Understanding How Consumers Use Products

57. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Consumption Research Builds on the three primary research methods to examine how people use products and services rather than how they buy them May use ethnographic tools to under- stand how values and culture influence usage of products and other behaviors

58. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Research Methods Consumption Research Builds on the three primary research methods to examine how people use products and services rather than how they buy them May use ethnographic tools to under- stand how values and culture influence usage of products and other behaviors May identify new uses for existing products or new product to satisfy unmet or changing consumer needs

59. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Underlying Principles of Consumer Behavior The Consumer Is Sovereign

60. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Underlying Principles of Consumer Behavior The Consumer Is Sovereign The Consumer Is Global

61. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Underlying Principles of Consumer Behavior The Consumer Is Sovereign The Consumer Is Global Consumers Are Different; Consumers Are Alike

62. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers appear different but respond in similar ways to brands

63. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers appear different but respond in similar ways to brands

64. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Underlying Principles of Consumer Behavior The Consumer Is Sovereign The Consumer Is Global Consumers Are Different; Consumers Are Alike The Consumer Has Rights

65. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Bill of Rights

66. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Challenges for the Future Gathering and interpreting information that organizations need to meet changing needs of consumers Developing effective consumer research methods to capture changes in trends and lifestyles Understanding consumer behavior from a broader perspective as an important part of life