CHAPTER 1
CONSUMER BEHAVIOR
AND MARKETING STRATEGY
LEARNING OBJECTIVES
LEARNING OBJECTIVES
LO1: Define consumer behavior
LO2: Summarize the applications of consumer behavior
LO3: Explain how consumer behavior can be used to develop marketing strategy
LO4: Explain the components that constitute a conceptual model of consumer behavior
LO5: Discuss issues involving consumption meanings and firm attempts to influence them
SUMMARY
LO1: Define consumer behavior
The field of consumer behavior is the study of individuals, groups, or organizations and the
LO2: Summarize the applications of consumer behavior
Consumer behavior can be applied in four areas, namely (a) marketing strategy, (b) regulatory
policy, (c) social marketing, and (d) creating informed individuals. Developing marketing
LO3: Explain how consumer behavior can be used to develop marketing strategy
The interplay between consumer behavior and marketing strategy involves five stages. First
LO4: Explain the components that constitute a conceptual model of consumer behavior
The conceptual model of consumer behavior developed here can be broken into four
interrelated parts. External and internal influences affect the consumer’s self-concept and
lifestyle which, in turn, affects the decision process. External influences (Part 2 of the text)
include culture, reference groups, demographics, and marketing activities. Internal influences
(Part 3) include perception, emotions, attitudes, and personality. Self-concept is the totality of
an individual’s thoughts and feelings about him– or herself. Lifestyle is, quite simply, how one
LO5: Discuss issues involving consumption meanings and firm attempts to influence
them
Consumption has meaning beyond the satisfaction of minimum or basic consumer needs.
Thus, consumers might purchase Nike sneakers not only to satisfy the functional needs
associated with safety and support, but also for symbolic needs associated with status,
LECTURE TIPS AND AIDS
1) It is important to get the student to believe that knowledge of consumer behavior can help
managers understand why people behave as they do, and that this understanding can help
managers predict behavior. One rather simple “gimmick” to help get this point across goes as
follows:
Before the start of class, pin up a card with the number 3 printed on it making sure that none of the
2) It should be pointed out that the model presented in the text is explanatory in nature, the purpose
of which is to give the student an overall “picture” of how the parts of behavior that they will
3) Have students select a product of interest and discuss how various components of the model could
aid development of marketing strategies for various brands of the product.
4) If you allow any free ranging discussion, students will generally ask about particular ads that they
find annoying or otherwise distasteful. Many will claim that they will never buy the product
because of the ad. It is worth your while to cause this discussion to occur. Ask the class to
5) Initiate a discussion on injurious consumption and the responsibilities of marketers, consumers,
and the government. After the students discuss harmful products such as alcohol or tobacco, point
out that improper diets and excess eating are the major causes of health problems in this country.
Should the advertising of snack food be limited or required to carry warning labels? What role
should the education system play in teaching people how to be effective consumers?
6) Assign and/or prepare one or more of the CB PRESS HIGHLIGHTS articles for class discussion.
The searchable CB Press Highlights Database can be found in the Instructor Resources in
Connect.
Review Questions
1) How is the field of consumer behavior defined?
2) What conclusions can be drawn from the examples at the beginning of this chapter?
Successful marketing decisions require extensive information on consumer behavior theory.
3) What are the four major uses or applications of an understanding of consumer behavior?
4) What is social marketing?
It is the applications of marketing strategies and tactics to alter or create behaviors that have a
positive effect on the targeted individual and/or society as a whole.
5) What is customer value and why is it important to marketers?
It is the difference between all of the benefits derived from a total product and all the costs of
6) What is required to provide superior customer value?
The organization must do a better job of anticipating and reacting to customer needs than the
7) What is a total product?
8) What is involved in the consumer analysis phase of market analysis in Figure 1-1?
The organization must be able to anticipate evolving consumer needs which requires a complete
9) What is involved in the company analysis phase of market analysis in Figure 1-1?
The firm must understand its ability to meet evolving customer needs better than the competition.
10) What is involved in the competitor analysis phase of market analysis in Figure 1-1?
A firm should know its key competitors as well as it knows itself (see #6 above). For particular
11) What is involved in the conditions analysis phase of market analysis in Figure 1-1?
This is an analysis of the state of the relevant economies, government regulations, the physical
environment, and technological developments.
12) Describe the process of market segmentation.
Market Segmentation has four steps: (1) identify product-related need sets, (2) group consumers
13) What is marketing strategy?
14) What is a marketing mix?
The marketing mix is the product, price, communications, distribution, and services provided to
15) What is a product?
A product is anything a consumer acquires or could acquire to meet a perceived need. It useful to
16) What does an effective communications strategy require?
It requires sound answers to these questions: (1) Who exactly do we want to communicate with?
17) What is a price? How does the price of a product differ from the cost of the product to the
consumer?
The price is the amount of money one must pay to obtain the right to use the product. The cost of
18) How is service defined in the text?
Service is defined not as a primary service such as a haircut, which is treated as product, but as an
19) What is involved in creating satisfied customers?
Creating satisfied customers requires that customers continue to believe that the brand purchased
20) What are the major outcomes for the firm of the marketing process and consumers’ responses to
it?
21) What are the major outcomes for the individual of the marketing process and consumers’
responses to it?
22) What are the major outcomes for society of the marketing process and consumers’ responses to it?
23) What is product position?
24) What is meant by injurious consumption?
25) What is meant by consumer lifestyle?
26) Describe the consumer decision process.
Within the context of a situation, it involves some or all of the following sequence: problem
Discussion Questions
27) Why would someone shop on the Internet? Buy an iPod? Eat at TGI Friday’s frequently?
a) Why would someone else not make those purchases?
b) How would you choose one outlet, brand, or model over the others? Would others make the
same choice in the same way?
Discussion should focus on lifestyles and the role these products play in relation to various
28) Respond to the questions in Consumer Insight 1-1.
These questions should be fun for students and generate a lot of discussion. Students may suggest
that general mass-merchants such as Walmart target the basic shopper primarily, while specialty
29) Of what use, if any, are models such as the one in Figure 1-3 to managers?
Even though the model does not allow for prediction, point out the value of understanding how all
30) What changes would you suggest in the model in Figure 1-3? Why?
Students will probably find this to be a difficult question. Ask them if it would be a better model
31) Describe your lifestyle. How does it differ from your parents’ lifestyle?
As this question will arise early in the semester, it may be difficult to get students to “volunteer”
this kind of information about themselves. If you are brave, use yourself as the example. (One of
32) Do you anticipate any changes in your lifestyle in the next five years? What will cause these
changes? What new products or brands will you consume because of these changes?
The most obvious cause for change will be the taking of a job and/or the beginning of a family.
33) Describe a recent purchase you made. To what extent did you follow the consumer decision-
making process described in this chapter? How would you explain any differences?
Again, you may have to lead this discussion off with a purchase of your own. Be sure to pick a
34) Describe several “total products” that are more than their direct physical features.
Products such Coca-Cola or Bayer are good products to lead with. Point out that most consumers
cannot easily tell Coke from private label beverages yet Coke cost more and greatly still out sells
35) Describe the needs that the following items might satisfy and the total cost to the consumer of
obtaining the benefits of the total product.
a) Digital video recorder (e.g., TiVo)
b) Lasik eye surgery
c) Motorcycle
d) SUV
This is a fun question. The point is to illustrate how the same product can meet multiple needs in
36) How would you define the product that the Hard Rock Cafe provides? What needs does it meet?
You can use a fun oriented local restaurant or bar if your students are not familiar with Hard Rock
37) To what extent, if any, are marketers responsible for injurious consumption involving their
products?
You can spend a large part of a class on this. If your students are mostly conservative, you may
38) How could social marketing help alleviate some of society’s problems?
Pick a particular problem such as improper diets among teenagers. After the class realizes the
39) Respond to the questions in Consumer Insight 1-2.
Q1 – There are many answers to this question. Consumers naturally imbue brands with person-
like traits that are inferred from such aspects as packaging, design, and brand name. Experiences
associated with a product (first gig played with a certain guitar) can create meaning. People
40) Is the criticism of Nike for creating a shoe that is symbolic of success to some groups valid? Why
or why not??
Most students will not see this as a problem and many should point out that most societies
41) Robert’s American gourmet snack foods produces herbal-based snacks such as Spirulina Spirals
and St. Johns Wort Tortilla Chips. According to the company president, “We’re selling like crazy.
We don’t do research. We react as sort of a karma thing.”
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How would you explain the firm’s
success? What are the advantages and risks of this approach?
The focus of this discussion should be on the trends that occur in consumer needs and desires and