1 - 1 consumers rule by michael r. solomon consumer behavior buying, having, and being sixth edition
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Consumers Rule
By Michael R. Solomon
Consumer BehaviorBuying, Having, and Being
Sixth Edition
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What is Consumer Behavior?
• Consumer Behavior:– The study of the processes involved when individuals or
groups select, purchase, use, or dispose of products, services ideas, or experiences to satisfy needs and desires
• Role Theory:– Identifies consumers as actors on the marketplace stage
• Consumer Behavior is a Process:– Exchange: A transaction in which two or more
organizations give and receive something of value
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Some Issues That Arise During Stages in the Consumption Process
Figure 1.1
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Consumer Behavior InvolvesMany Different Actors
• Consumer:– A person who identifies a need or desire, makes a
purchase, and then disposes of the product• Many people may be involved in this sequence of
events.– Purchaser / User / Influencer
• Consumers may take the form of organizations or groups.
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Consumers’ Impact onMarketing Strategy
• Market Segmentation:– Identifies groups of consumers who are similar to
one another in one or more ways and then devises marketing strategies that appeal to one or more groups
• Demographics:– Statistics that measure observable aspects of a
population• Ex.: Age, Gender, Family Structure, Social Class
and Income, Race and Ethnicity, Lifestyle, and Geography
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A Lesson Learned
• Nike was forced to pull this advertisement for a running shoe after disabilities rights groups claimed the ads were offensive.
• How could Nike have done a better job of getting its message across without offending a powerful demographic?
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Market Segmentation
Finely-tuned marketing
segmentation strategies
allow marketers to
reach only those
consumers likely to be
interested in buying
their products.
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Consumers’ Impact onMarketing Strategy (cont.)
• Relationship Marketing: Building Bonds with Consumers– Relationship marketing:
• The strategic perspective that stresses the long-term, human side of buyer-seller interactions
– Database marketing:• Tracking consumers’ buying habits very closely, and
then crafting products and messages tailored precisely to people’s wants and needs based on this information
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Marketing’s Impact on Consumers
• Marketing and Culture:– Popular Culture:
• Music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market.
– Marketers play a significant role in our view of the world and how we live in it.
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Popular Culture
Companies often create product icons to develop anidentity for their products. Many made-up creatures andpersonalities, such as Mr. Clean, the Michelin tire man andthe Pillsbury Doughboy, are widely recognized figures inpopular culture.
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Marketing’s Impact on Consumers: The Meaning of Consumption
• The Meaning of Consumption:– People often buy products not for what they do,
but for what they mean.– Types of relationships a person may have with a
product:• Self-concept attachment
• Nostalgic attachment
• Interdependence
• Love
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• What kind of statement does the Nike Swoosh make?
Discussion Question
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Marketing’s Impact on Consumers: The Meaning of Consumption (cont.)
• Consumption includes intangible experiences, ideas and services in addition to tangible objects.
• Four types of Consumption Activities:– Consuming as experience– Consuming as integration– Consuming as classification– Consuming as play
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Marketing’s Impact on Consumers: The Global Consumer
• By 2006, the majority of people on earth will live in urban centers.
• Sophisticated marketing strategies contribute to a global consumer culture.
• Even smaller companies look to expand overseas.
• Globalization has resulted in varied perceptions of the United States (both positive and negative).
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The Global Consumer
American products like Levi jeans are indemand around the world.
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Marketing’s Impact on Consumers: Virtual Consumption
• The Digital Revolution is one of the most significant influences on consumer behavior.
• Electronic marketing increases convenience by breaking down the barriers of time and location.
• U-commerce:– The use of ubiquitous networks that will slowly but surely
become part of us (i.e., wearable computers, customized advertisements beamed to cell phones, etc.)
• Cyberspace has created a revolution in C2C (consumer-to-consumer) activity.
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Marketing Ethics and Public Policy
• Business Ethics:– Rules of conduct that guide actions in the
marketplace– The standards against which most people in the
culture judge what is right and what is wrong, good or bad
• Notions of right and wrong differ among people, organizations, and cultures.
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Needs and Wants:Do Marketers Manipulate Consumers?
• Consumerspace• Do marketers create artificial needs?
– Need: A basic biological motive– Want: One way that society has taught us that need can be
satisfied
• Are advertising and marketing necessary?– Economics of information perspective: Advertising is an
important source of consumer information.
• Do marketers promise miracles?– Advertisers simply don’t know enough to manipulate
people.
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• This ad was created by the American Association of Advertising Agencies to counter charges that ads create artificial needs.
• Do you agree with the premise of the ad? Why or why not?
Discussion Question
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Public Policy and Consumerism
• Consumer efforts in the U.S. have contributed to the establishment of federal agencies to oversee consumer-related activities.– Department of Agriculture– Federal Trade Commission– Food and Drug Administration– Securities and Exchange Commission– Environmental Protection Agency
• Culture Jamming:– A strategy to disrupt efforts by the corporate world to
dominate our cultural landscape
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Culture Jamming
• Adbusters Quarterly is a Canadian magazine devoted to culture jamming. This mock ad skewers Benetton.
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Consumerism and Consumer Research
• Kennedy’s “Declaration of Consumer Rights” (1962)
• Green Marketing:– When a firm chooses to protect or enhance the natural
environment as it goes about its activities
• Reducing wasteful packaging
• Donations to charity
• Social Marketing:– Using marketing techniques to encourage positive activities
(e.g. literacy) and to discourage negative activities (e.g. drunk driving)
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Consumer Related Issues
• UNICEF sponsored this advertising campaign against child labor. The field of consumer behavior plays a role in addressing important consumer issues such as child exploitation.
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The Dark Side of Consumer Behavior
• Consumer Terrorism:– An example: Susceptibility of the nation’s food
supply to bioterrorism
• Addictive Consumption:– Consumer addiction:
• A physiological and/or psychological dependency on products or services
• Compulsive Consumption:– Repetitive shopping as an antidote to tension,
anxiety, depression, or boredom
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The Dark Side of Consumer Behavior (cont.)
• Consumed Consumers:– People who are used or exploited, willingly or not, for
commercial gain in the marketplace
• Illegal Activities:– Consumer Theft:
• Shrinkage: The industry term for inventory and cash losses from shoplifting and employee theft
– Anticonsumption:• Events in which products and services are
deliberately defaced or mutilated
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Consumer BehaviorAs a Field of Study
• Consumer behavior only recently a formal field of study
• Interdisciplinary influences on the study of consumer behavior– Consumer behavior studied by researchers from
diverse backgrounds– Consumer phenomena can be studied in different
ways and on different levels
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The Pyramid of Consumer Behavior
Figure 1.2
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Consumer Behavior Disciplines
• The Issue of Strategic Focus– Should CB have a strategic focus or be studied as a
pure social science?• The Issue of Two Perspectives on
Consumer Research– Positivism (modernism):
• Paradigm that emphasizes the supremacy of human reason and the objective search for truth through science
– Interpretivism (postmodernism):• Paradigm that emphasizes the importance of
symbolic, subjective experience and meaning is in the mind of the person
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Positivist vs. Interpretivist Approaches to CB
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The Wheel of Consumer Behavior
Figure 1.3
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