Introduction to Consumer Behavior

What is Consumer Behavior (CB)?

  • Defined as the dynamic interaction of:

    • Affect

    • Cognition

    • Behavior

    • Environment

  • Explanation of consumer decisions regarding:

    • Acquisition

    • Consumption

    • Disposition of goods, services, time, and ideas

  • Focuses on human decision-making units over time

  • Encompasses processes by which individuals or groups select, acquire, consume, or dispose of products, services, ideas, or experiences to satisfy their needs and desires.

Example of Consumer Behavior

  • Scenario: Deciding which can of soup to buy. Influencing factors include:

    • Taste (hedonic preference)

    • Feelings (emotional state)

    • Hunger (physiological state)

    • Health considerations (cognitive factors)

    • Availability (situational aspects)

    • Friends (social impacts)

    • Childhood experiences (cultural influences)

Model of Consumer Behavior

  • Marketing Response: Comprises the 4 Ps: Product, Price, Place, Promotion

  • The Black Box of the Consumer: Representation of

    • Feelings

    • Thoughts

    • Goals

    • Attitudes

    • Unconscious processes

    • Needs

Importance of Understanding Consumers

  • Marketers aim to influence consumer behavior

  • To effectively influence, understanding consumer preferences is crucial

  • Marketers must consider both preferences and the reasons behind them

How is CB Studied?

  • Interdisciplinary approaches:

    • Psychology

    • Economics

    • Social Psychology

    • Anthropology

    • Sociology

Who Uses Knowledge About CB?

  1. Consumers: Make better choices and decisions

  2. Marketers: Develop better marketing strategies

  3. Finance/Consulting: Understand consumer needs for all businesses

  4. Public Policy Makers: Enhance public policy for market efficiency and fairness.

Application of CB Beyond Products

  • CB concepts are applicable to various contexts such as:

    • Voting behavior

    • Smoking cessation outcomes over a timeline

    • Timeline of a smoker quitting:

      • 20 minutes after quitting: Heart rate and blood pressure normalize

      • 2 weeks after quitting: Improvement in circulation and lung function

      • 12 hours after quitting: Carbon monoxide level in blood returns to normal

      • 1 year after quitting: Risk of coronary heart disease is halved

      • 5 years after quitting: Risk of stroke is similar to non-smoker

      • 10 years after quitting: Lung cancer risk drops to 50% of a smoker

      • 15 years after quitting: Risk of heart disease similar to that of a non-smoker

Good and Evil in CB

  • Nudging for Good: Tools to encourage behaviors such as organ donation or healthy food consumption

  • Manipulation for Evil: Marketing strategies that exploit consumer vulnerabilities (e.g., tobacco products)

Summary of Course Content

  • Consumer Behavior as a key element in marketing

  • Involves interactions of consumers’ affect, cognition, behavior, and environmental factors

  • Study approaches: Interpretive, traditional, and marketing science

  • Relevant for consumers, governments, and organizations (both for-profit and non-profit).