CHAPTER 1 IN REVIEW

What Is CB, and Why Should I Care? What is CB

Chapter Summary
Understand the meaning of consumption and consumer behavior.
Consumption represents the process by which goods, services, or ideas are used and transformed into value. The basic consumer behavior process includes steps that begin with consumer needs and finish with value. Consumer behavior, or CB as it is sometimes called, can be viewed either from the standpoint of human behavior or as a field of study. In terms of human behavior, consumer behavior is the set of value-seeking activities that take place as people go about addressing realized needs. Thus, consumer behavior captures the things that we do as we try to seek out, purchase, and use goods, products, services, and ideas. Consumer behavior as a field of study represents the study of consumers as they go about the consumption process. Thus, textbooks, trade literature, and research journals all direct their subject matter toward the behavior of consumers in an effort to develop consumer behavior theory.

Glossary Terms
anthropology study in which
researchers interpret relationships between consumers and the things they purchase, the products they own, and the activities in which they participate

attribute a product feature that delivers a desired consumer benefit benefits positive results of
consumption

cognitive psychology study of the

intricacies of mental reactions involved in information processing

consumer behavior set of valueseeking activities that take place as people go about addressing realized needs

consumer behavior as a field of study study of consumers as they

go about the consumption process; the science of studying how consumers seek value in an effort to address real needs

The Basic Consumption Process

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consumer (customer) orientation way of doing business in which

the actions and decision making of the institution prioritize consumer value and satisfaction above all other concerns

consumption process by which goods, services, or ideas are used and transformed into value costs negative results of consumption differentiated marketers firms
that serve multiple market segments each with a unique product offering

economics study of production and

consumption

ethnography qualitative approach to studying consumers that relies on interpretation of artifacts to draw conclusions about consumption exchange acting out of the decision
to give something up in return for something of greater value

Describe how consumers get treated differently in various types of exchange environments.
Two market characteristics help explain how customers are treated: competitiveness and dependence. In a competitive market, consumers do not have to put up with poor treatment because some other business will gladly provide a better alternative. Thus, competitive markets drive organizations toward a consumer orientation as a way of surviving in the marketplace. Similarly, a business that depends on repeat business also must emphasize the creation of valuable exchange relationships with its customers; otherwise, customers will simply go elsewhere the next time they desire that particular good or service.

interpretive research approach

that seeks to explain the inner meanings and motivations associated with specific consumption experiences

market orientation organizational

culture that embodies the importance of creating value for customers among all employees

marketing multitude of activities that facilitate exchanges between buyers and sellers, including production, pricing, promotion, distribution, and retailing, which are all focused on providing value for consumers

Visit 4ltrpress.cengage.com/cb for additional study tools.

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W H AT IS C B , A NIN W E VIE W O U LD P TC A R1 7 D R HY SH: CHA I ER E?

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Chapter 1 What is CB, and Why Should I Care? Is

niche marketing plan wherein a firm specializes in serving one market segment with particularly unique demand one-to-one marketing plan
wherein a different product is offered for each individual customer so that each customer is treated as a segment of one

Explain the role of consumer behavior in business and society.

Consumer behavior is clearly important as an input to business/marketing strategy. The firm can build value only with an understanding of what exactly leads to a high-value experience. In addition, consumer behavior knowledge is necessary in understanding how customers view competing firms within a market. Consumer behavior also is important because it is a force that shapes society. In fact, consumer behavior helps form society in many ways. Trends such as the decreasing acceptability of smoking, the increasing acceptability of using mobile phones in social situations, as well as changes in general marketplace etiquette are all caused by consumers. Finally, knowledge of consumer behavior is important in making responsible decisions as a consumer. An educated consumer is a more effective consumer.

phenomenology qualitative approach to studying consumers that relies on interpretation of the lived experience associated with some aspect of consumption product potentially valuable bundle of
benefits

production orientation approach

where innovation is geared primarily toward making the production process as efficient and economic as possible

psychology study of human reactions to their environment qualitative research tools means for gathering data in a relatively unstructured way including case analysis, clinical interviews, and focus group interviews quantitative research approach
that addresses questions about consumer behavior using numerical measurement and analysis tools

Different Ways of Doing Business

Undifferentiated Marketing Product 1 Segment

relationship marketing activities based on the belief that the firms performance is enhanced through repeat business

Product 1 Differentiated Marketing Product 2 Product 3

Segment 1 Segment 2 Segment 3

researcher dependent subjective data, which requires a researcher to interpret the meaning resource-advantage theory
theory that explains why companies succeed or fail; the firm goes about obtaining resources from consumers in return for the value the resources create

Niche Marketing

Product 1

Segment 1

social psychology study that focuses on the thoughts, feelings, and behaviors that people have as they interact with other people sociology the study of groups of
people within a society with relevance for consumer behavior because a great deal of consumption takes place within group settings or is affected by group behavior

Be familiar with basic approaches to studying consumer behavior.

Many people with varied backgrounds study consumer behavior. Thus, consumer behavior is studied from many different perspectives involving many different research tools. An interpretative approach seeks to explain the inner meanings and motivations associated with specific consumption experiences. Interpretative research usually involves qualitative research tools as case analyses, clinical interviews, focus group interviews, and others where data are gathered in a relatively unstructured way. Quantitative research addresses questions about consumer behavior using numerical measurement and analysis tools. The measurement is usually structured, meaning the consumer will simply choose a response from among alternatives supplied by the researcher.

touchpoints direct contacts between the firm and a customer undifferentiated marketing
plan wherein the same basic product is offered to all customers

want way a consumer goes about addressing a recognized need

Describe why consumer behavior is so dynamic and how recent trends affect consumers.
Consumer behavior is ever changing. Several trends are shaping todays consumer climate. These include increasing internationalization of the marketplace, the rate of technological innovation, and changes in demographics that affect buying power and quality of life. Consumer research continues to evolve along with these changes.
Visit 4ltrpress.cengage.com/cb for additional study tools.

CHAP TER : CHAP TER IS IN REVIEWO N E W HAT17 CB, AND WHY SHOULD I CARE ?

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