PSY603 Lecture Notes - Lecture 1: Cd Player, Theodore Levitt, Intellectual Capital
1
PSY 603 Consumer Behavior
LECTURE 1
Consumer Behavior:
It is about value. Consumer buy thing and the chain reaction begins. Consumption does not end
at the purchase of an item. It depends on the use and worth of a product.
Why is Behavior important to consumers?
• Marketer who understands consumers, designs products with more value
• Policy makers who understand consumers, make effective public policy decisions
• Consumers who understand behavior, make better decisions on how they allocate their
resources
Marketing Ethics + Consumer Behavior
• Relations between marketer (products/companies) and consumers is not always positive
• Misbehavior becomes complicated, not a general agreement on what is unethical
• Ethical. Standards or moral code of conduct to which a person or a group adheres
• Manipulative marketing practices, false advertising, corporate scandals, and change the
value associated with the exchange of good. For example, money for item or service
• Rules of behavior
• Consequences
• Vote for you wallets
Consumer Behavior as field of study:
Looks at consumers as they go about the consumption process. The science of studying how
consumers seek value in effort to address their needs. It is a very new field, closely and
interrelated with other fields of study. For example, economics, marketing, psychology,
anthropology and sociology.
Economics: study of production and consumption, macro
Psychology: study of human reactions to environments behavior and mental processes
• Social psychology: group behavior. Focuses on the thoughts, feelings, behaviors that
people have as they interact with other people. Consumer behavior takes place in group
settings, social psychology and consumer behavior
• Cognitive psychology: study of intricacies of mental reactions involved in information
processing. Consumer evaluates a product or sees advertisement and then information is
processed
Marketing: value producing seller activities that facilitates exchange between buyers and sellers.
It grew out of economics and psychology. Consumer behavior and marketing tied closely together.
Marketing actions target or affect the consumers. Consumer’s actions affect marketers
Consumer orientation: the business prioritizes the customer
Relationship marketing: belief that performance is enhances through repeat business
Touchpoints: direct contact between firm and customer
Consumer Behavior role in business/ society:
• Provides an input to business or marketing strategy
• Provides a force that shapes society
• Provides an input to making responsible decision as a consumer
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Consumer buy thing and the chain reaction begins. Consumption does not end at the purchase of an item. It depends on the use and worth of a product. Why is behavior important to consumers: marketer who understands consumers, designs products with more value, policy makers who understand consumers, make effective public policy decisions, consumers who understand behavior, make better decisions on how they allocate their resources. Marketing ethics + consumer behavior: relations between marketer (products/companies) and consumers is not always positive, misbehavior becomes complicated, not a general agreement on what is unethical, ethical. Standards or moral code of conduct to which a person or a group adheres: manipulative marketing practices, false advertising, corporate scandals, and change the value associated with the exchange of good. For example, money for item or service: rules of behavior, consequences, vote for you wallets. Looks at consumers as they go about the consumption process.
