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Chapter 1. Buying, Having, and Being: An Introduction To Consumer Behavior

Athena decides to change gyms after feeling her current trainer is overly harsh and abusive. She searches for alternatives and signs up for a 3-month group exercise class recommended by a friend. While the new class has additional costs, Athena feels the benefits of a less stressful environment outweigh the costs. The chapter introduces consumer behavior as the study of how individuals select, purchase, use, and dispose of products and services. Marketers must understand the needs and traits that segment consumers, such as demographics, psychographics, and lifestyles. Consumer behavior is influenced by culture and marketing, and consumers derive value by weighing the tangible and intangible benefits versus costs.

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47 views

Chapter 1. Buying, Having, and Being: An Introduction To Consumer Behavior

Athena decides to change gyms after feeling her current trainer is overly harsh and abusive. She searches for alternatives and signs up for a 3-month group exercise class recommended by a friend. While the new class has additional costs, Athena feels the benefits of a less stressful environment outweigh the costs. The chapter introduces consumer behavior as the study of how individuals select, purchase, use, and dispose of products and services. Marketers must understand the needs and traits that segment consumers, such as demographics, psychographics, and lifestyles. Consumer behavior is influenced by culture and marketing, and consumers derive value by weighing the tangible and intangible benefits versus costs.

Uploaded by

tadinh
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Chapter 1.

Buying, Having, and Being:


An Introduction to Consumer Behavior
MKT201 - CONSUMER BEHAVIOR
Chapter Objectives
1. Consumer behavior is a process.
2. Marketers have to understand the wants and needs of different
consumer segments.
3. Our choices as consumers relate in powerful ways to the rest of our
lives.
4. Our motivations to consume are complex and varied.
5. Technology and culture create a new “always on” consumer.
6. Many different types of specialists study consumer behavior.
7. There are differing perspectives regarding how and what we should
understand about consumer behavior.
You are here!
Athena’s Story
After almost six months with her current gym trainer, Athena realises that
there is a need to change because she feels that he is being overly hard on her,
never listens to what she has to say, and can be quite abusive when she is
unable to keep up with his training program. She realises that there is a need
for her to stop feeling this way and she is motivated to do something about it,
as it is starting to affect her confidence and self-esteem.

Athena decides to search for some alternatives and eventually decides to sign
up for a group exercise class that her friend has recommended. A week later
she attends her first group exercise class and pays for three months in advance.

Although there is the cost of paying to join the group, as well as having the
associated travel and time costs because it is further from the gym that she used
to attend, the benefits far outweigh the costs. Moreover, the cost of joining the
group exercise class was significantly less than the price she paid for her trainer.
Hence, Athena reacted in a positive way and saw value in the decision she had
made.
What is 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.
Stages in the Consumption Process
Consumers Are Different

John Mr. Smith


Consumers Are Different

• Heavy Users
• 80/20 Rule
Segmenting Consumer: Demographics
Segmentation involves dividing consumers into distinct groups based on
certain common and identifiable traits which enables companies to develop
specialised messages and products for those groups.
Demographics:
• Age
• Gender
• Family structure Psychographic
• Social class/income
• Race/ethnicity Segmentation
• Geography
• Lifestyles
Marketing’s Impact on Consumers
• Music Marketers influence
• Movies preferences for movie and
music heroes, fashions,
• Sports
food, and decorating
• Books choices, and more…
• Celebrities - Clean your hand
• Entertainment - How to eat
- And Eat healthy
- How to do
What Does It Means to Consume?
As consumers, we will only buy or consume products based on the extent that
they satisfy our needs and wants. Products can mean a physical product such
as a mobile phone, a service such as a haircut or a travel booking, or
an idea such as supporting a cause or a charity.

However, the modern field of consumer behavior: people often buy products not
for what they do, but for what they mean.
Hence, For marketers, it is important to understand:
1. What consumers needs/wants are
2. Where they originate from
3. How the products being marketed can meet these needs/wants
What Do We Need – Really?

• A Need is something a person must have to live or achieve a goal


• A Want is a specific manifestation of a need that personal and cultural
factors determine.
• Maslow’s Hierarchy of Needs
How Consumers Derive Value
• Consumers derive value based on weighing up the benefits and costs.
• If the benefits outweigh the costs, the consumer is likely to perceive value
for the particular product, and is likely to be satisfied with their purchase
decision.
• These benefits or costs can be either tangible (something that can be
measured or quantified) or intangible (something that cannot be measured
or quantified).

Coke
Apple Store
LV Store
Consumer Trends: Keep Ahead to Keep Up
• Sharing economy
• Authenticity and Personalization
• Blurring of gender roles
• Diversity and multiculturalism
• Social shopping
• Income Inequality
• Healthy and ethical living
• Simplification
• Interconnection and the Internet of Things
• Anonymity
End of Chapter 1

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