MKTG 315 Chapter Notes - Chapter 1: Consumer Behaviour, Mass Media, Group Dynamics
MKTG 315
Sept. 3, 2018
Book Notes: Chapter 1: What Is CB and Why Should I Care?
Learning Outcomes:
1. Understand the meaning of consumption and consumer behavior.
2. Describe how competitive marketing environments lead to better outcomes
for consumers.
3. Explain the role of consumer behavior in today’s business and society.
4. Be familiar with basic approaches to studying consumer behavior.
5. Appreciate how dynamic the field of consumer behavior continues to be,
particularly with respect to technological advances such as big data analytics
and the sharing economy.
Consumer Behavior
• Set of value-seeking activities that take place as people go about addressing
their real needs
• Involves multiple psychological events like:
•
Thinking
•
Feeling
•
Behaving
• Entire process culminates in value
The Basic Consumption Process
Need → Want → Exchange → Costs and Benefits → Reaction → Value
• Process by which consumers use and transform goods, services, or ideas into
value
• Involves interaction between the marketer and consumer
• Outcomes affect the consumer’s well-being and quality of life
Consumer Behavior as a Field of Study
• Science of studying how consumers seek value in an effort to address real
needs
• CB shares strong interdisciplinary bonds with:
o
Economics
o
Psychology, particularly social psychology
o
Marketing
o
Anthropology
Economics and Consumer Behavior
• Economics: Study of production and consumption
• Economists focus on the macro perspective of CB bounded by broad
assumptions
o
Data is derived from historical sales records
• Studies involve:
o
Commodity consumption of nations over time
o
Tracking changes in consumption with different price levels
Consumer Psychology
• Psychology:
Study of human reactions to their environment
• Social Psychology:
Study that focuses on the thoughts, feelings, and
behaviors that people have as they interact with other people
• Cognitive Psychology:
Study of the intricacies of mental reactions involved in
information processing
Consumer Behavior and Marketing
• Marketing: Multitude of value-producing seller activities that facilitate
exchanges between buyers and sellers, including:
o
Production
o
Pricing
o
Promotion
o
Distribution
o
Retailing
