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Summary book Consumer Behavior Hoyer, Chapters 1 - 18 in English
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Marketing for Pre-Master SummaryChapter 1 | Understanding Consumer Behavior
1-1 Defining Consumer Behavior
Consumer behavior = Consumer behavior reflects the totality of consumers’ decisions with respect
to the acquisition, consumption, and disposition of goods, services, activities, experiences, people, and
ideas by (human) decision-making units [over time].
Offering = A product, service, activity, experience, or idea offered by a marketing organization to
consumers.
Consumer behavior involves more than buying:
• Acquisition (= the process by which a consumer comes to owe an offering) includes buying,
renting, leasing, trading, and sharing goods. Involves decisions about time and money.
• Usage (= the process by which a consumer uses an offering) is at the core of consumer behavior,
which is after the acquisition.
• Disposition (= the process by which a consumer discards an offering) is how consumers get rid of
the acquired offering by giving it away or selling the offering.
Thus: acquisition → usage → disposition.
Characteristics of consumer behavior:
• Consumer behavior is a dynamic process
- The sequence (acquisition, consumption/usage, disposition) can occur over time in a dynamic
order.
- 50 years ago: fewer brand choices, fewer marketing messages exposition.
- Endowment effect: Once we possess something, the value increases for the consumer.
• Consumer behavior can involve many people
- Not necessarily reflect the action of a single individual
- The individuals (a group of friends, a few co-workers, entire family) can take on one or more roles:
information gatherer, influencer, purchaser
- Several can be involved in the disposal
• Consumer behavior involves many decisions
- Consumer behavior also involves understanding whether, why, when, where, how, how much,
how often, and for how long consumers will buy, use, or dispose of an offering
o Decision: whether to spend or to save money when they earn extra cash
o Decision: whether to order pizza, download a movie, or clean out a closet
o Choices among product or service categories (buying food vs. downloading new music) or
brand (Apple vs. Samsung)
o Self-control is an important factor in many consumer behavior situations
o The ways in which an offering meets someone’s needs, values, or goals
o Ethics and social responsibility play a role: some consumers may want to avoid products
made in factories with questionable labour practices → transparency
• Consumer behavior involves emotions and coping
- Play a powerful role in consumer behavior
- Affect how consumers think, how they feel after making a decision, the choices they make, how
they feel after making a decision, what they remember, and how much they enjoy an experience.
Decision-making | Important questions for marketers
Marketers gain a lot of insight by understanding how consumers acquire, consume, and dispose of an
offering.
• Ways of acquiring an offering: in a store/mall, online or in auction? Cash, check, debit, creditcard
or PayPal?
8 ways to acquire an offering:
, Acquisition method Description
Buying Buying is a common acquisition method used for many offerings.
Trading Consumers might receive a good or service as a part of a trade.
Renting or leasing Instead of buying, consumer rent or lease cars, furniture, vacation homes, and more.
Bartering Consumers (and businesses) can exchange goods or services without having money change hands.
Gifting Each society has many gift-giving occasions as well as informal or formal rules dictating how gifts
are to be given, what is an appropriate gift, and how to respond to a gift.
Finding Consumers sometimes find goods that others have lost (hats left on a bus) or thrown away.
Stealing Because various offerings can be acquired through theft, marketers have developed products to
deter this acquisition method, such as alarms to deter car theft.
Sharing Another method of acquisition is sharing. Some types of ‘’sharing’’ are illegal and border on theft,
as when consumers copy and share movies.
• Ways of using an offering: ensure that the offering is used correctly. Can include what we use with
the offering (e.g., chips with salsa) as well as storing and organizing.
• Ways of disposing an offering: find a new use for it (DIY), get rid of it temporarily (renting or
lending), get rid of it permanently (throwing away, trading, giving it away, selling it).
• When to acquire/use/dispose an offering: time influences many consumption decisions. Besides
time, the season, temperature and so on also have a big influence on our decisions (getting ice
cream). Another time related issue is buying new products or products that are already known.
• Where to acquire/use/dispose an offering: where to consume various products and where to
dispose of goods.
• How much, how often, how long to acquire/use/dispose an offering: consumers don’t like to waste
things. Usage decisions can vary widely from person to person and culture to culture.
- Sales of product can be increased when the consumer (1) uses larger amounts of the product, (2)
uses the product more frequently, or (3) uses it for longer periods of time.
1-2 What affects consumer behavior?
The many factors that affect acquisition, usage, and disposition decisions can be classified into the
following four domains:
The psychological core: internal consumer processes
Before consumers make decisions, they must have some source of knowledge or information upon
which to base their decisions:
• Motivation, ability, and opportunity
• Exposure, attention, perception, and comprehension
• Memory and knowledge
• Forming and changing attitudes
The process of making decisions
• Problem recognition
• Information search
• Decision-making
• Post purchase evaluation
The consumer’s culture: external processes
Our consumption decisions and how we process information are affected by our culture (= the typical
or expected behaviors, norms, and ideas that characterize a group of people). It can be a powerful
influence on all aspects of human behavior.
• Reference groups and other social influences
- Reference groups = a group of people consumers compare themselves with for information
regarding behavior, attitudes, or values.
• Diversity influences
• Household and social class influences
• Values, personality, and lifestyle
,Consumer behavior outcomes and issues
• Consumer behaviors can symbolize who we are
- Symbols = external signs that consumers use to express their identity
• Consumer behaviors can diffuse through a market
• Consumer behavior, ethics, and social responsibility
1-3 Who benefits from the study of consumer behavior?
• Marketing managers
- Provides critical information to marketing managers for developing marketing strategies and
tactics.
- Marketing = the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings with value for individuals, groups, and society.
- Marketers need consumer behavior insights to understand what consumers and clients value;
only then can they develop, communicate, and deliver appropriate goods and services.
• Ethicists and advocacy groups
- Concerned consumers sometimes form advocacy groups to create public awareness of
inappropriate practices
- Influence other consumers as well as targeted companies through strategies such as media
statements and boycotts
• Public policy makers and regulators
- Developing policies and rules to protect consumers from unfair, unsafe, or inappropriate
marketing practices
- Understanding how consumers comprehend and categorize information is important for
recognizing and guarding against misleading advertising
• Academics
- Academics disseminate knowledge about consumer behavior when they teach courses on the
subject
- Academics generate knowledge about consumer behavior when they conduct research focusing
on how consumers act, think, and feel when acquiring, using, and disposing of offerings
• Consumers and society
- Providing tools to consumers for more informed decision-making: chart, matrix, or grid
comparing brands and their attitudes
1-4 Making business decisions based on the marketing implications of consumer behavior
• Developing and implementing customer-oriented strategy
- Marketing is designed to provide value to customers: conduct research to understand the various
groups of consumers within the marketplace so that they can develop a strategy and specific
offerings that will provide such value
o How is the market segmented?
o How profitable is each segment?
o What are the characteristics of consumers in each segment?
o Are customers satisfied with existing offerings?
• Selecting the target market
- Understanding consumer behavior helps marketers determine which consumer groups are
appropriate targets for marketing tactics and how heavy users of a product differ from light users.
• Developing products
- Developing goods and services that satisfy consumers’ wants and needs
o What ideas to consumers have for new products?
o What attributes can be added to or changed in an existing offering?
o How should the offering be branded?
o What should the package and logo look like?
• Positioning
- Deciding how an offering should be positioned in consumers’ minds
, o How are competitive offerings positioned?
o How should our offerings be positioned?
o Should our offerings be repositioned?
• Making promotion and marketing communications decisions
- Research can help companies make decisions about promotional/marketing communications
tools, including advertising, sales promotions, personal selling, and public relations.
o What are our communication objectives?
o What should our marketing communications look like?
o Where should advertising be placed?
o When should we advertise?
o Has our advertising been effective?
o What about sales promotion objectives and tactics?
o Have our sales promotions been effective?
o How can salespeople best serve customers?
• Making pricing decisions
- Very important to understand how consumers react to price and to use this information in pricing
decisions
o What price should be charged?
o How sensitive are consumers to price and price changes?
o When should certain price tactics be used?
• Making distribution decisions
- How products are distributed and sold to consumers in retail stores
o Where and when are target consumers likely to shop?
o What do customers want to see in stores?
o How should stores be designed?
Knowledge clips | Prior to lecture 1
1.1 Course Structure
Course objectives
• Think broadly about consumer behavior and think big
• Appreciate the importance of understanding the consumer for a firm’s success
• Understand how consumer behavior drives marketing strategies and tactics
• Learn about cognitive, social, and behavioral theories underlying consumer behavior
• Make you a better consumer, decision maker (and a better brand)
Course structure
• External influences
- Culture
- Values
- Demographics
• Internal influences
• Judgment and decision-making
Lecture 1 | Introduction to Marketing for Pre-Master
Misconception 1: Consumers are sales figures
Misconception 2: We should trust our intuition.
How companies often think of consumers:
Tailor, the marketing mix → Our target group → we get them to do/think X.
How we should think of consumers:
Stimulus (S) → Organism (O) → Response (R)
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