Professional Documents
Culture Documents
Ele C 3 11 2 Sun M1L1
Ele C 3 11 2 Sun M1L1
PROGRAM OUTCOMES
By the time of graduation, the students of the program shall be able to:
1. Articulate and discuss the latest developments in the specific field of practice.
2. Effectively communicate orally and in writing using both English and Filipino
3. Work effectively and independently in multi-disciplinary and multi-cultural teams.
4. Act in recognition of professional, social, and ethical responsibility.
5. Preserve and promote "Filipino historical and cultural heritage".
6. Perform the basic functions of management such as planning, organizing, staffing, directing and
controlling.
7. Apply the basic concepts that underlie each of the functional areas of business (marketing, finance, human
resource management, production and operations management, information technology, and strategic
management) and employ these concepts in various business situations.
8. Select the proper decision making tools to critically, analytically and creatively solve problems and drive
results.
9. Express oneself clearly and communicate effectively with stakeholders both in oral and written forms.
10. Apply information and communication technology (ICT) skills as required by the business environment.
11. Work effectively with other stakeholders and manage conflict in the workplace.
12. Plan and implement business related activities.
13. Demonstrate corporate citizenship and social responsibility.
14. Exercise high personal moral and ethical standards.
15. Analyse the business environment for strategic direction.
16. Prepare operational plans.
17. Innovate business ideas based on emerging industry.
18. Manage a strategic business unit for economic sustainability.
19. Conduct business research.
20. To participate in various types of employment, development activities, and public discourse particularly in
response to the needs of the communities one serves.
COURSE TITLE
COURSE DESCRIPTION
This course is a study of consumer as a tool for marketing decision. It describes the rational for studying,
the consumer behavior outcomes and the consumer behavior process the psychological core, the process of
making decisions, and the post-decisions evaluation. Consumer’s culture, consumer behavior and issues
concerning consumer welfare is also discussed.
3 Module 1 – Introduction to Consumer Behavior
INTRODUCTION
This module will give us the thorough understanding of consumer behavior and the critical factors that
may affect a consumer’s behavior. This also presents the overall model that guides the organization of this
book. As this model indicates, consumer behavior covers four basic domains: (1) the psychological core, (2)
the process of making decisions, (3) the consumer’s culture, and (4) consumer behavior outcomes and issues.
In addition, you will read about the implications of consumer behavior for making activities.
Consumer behavior is greatly affected by the amount of effort that consumers put into their consumption
behaviors and decisions. Lesson 2 describes three critical factors that affect effort: the (1) motivation. (2) ability,
and (3) opportunity consumers have to engage in behaviors and make decisions.
Lesson 1:
Understanding Consumer Behavior
PRE-ASSESSMENT
MULTIPLE CHOICE
Direction: Read each item carefully. Choose the letter of the correct answer.
7. The typical or expected behaviors’, norms, and ideas that characterize a group of people.
a. Culture
b. Attitude
c. Beliefs
8. A group of people consumers compare themselves with for information regarding behavior, attitudes,
or values.
a. Reference group
b. High-effort decision
c. Recognition
9. External signs that consumers use to express their identity.
a. Values
b. Personality
c. Symbols
10. The activity set of institutions and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.
a. Advocacy
b. Ethics
c. Marketing-
LESSON MAP
Understanding
Consumer Behavior
CORE CONTENTS
They were later joined by Mr. Ash, a marketing graduate who advised the company regarding the
changing consumer preferences, and the changes that were necessary to be incorporated in the product.
He emphasized, and the income factors, and social factors only. He modernized the product to a great
extent, and invested about 30 lakhs on new packing, etc. Even after six months of these changes brought
about by him, the company did not seem to have proportionate increase in sales.
The assistant manager and the product manager were not very happy with the changes, and thought that
although an effort has been made in the right direction, some important factor concerning consumer behavior
had been neglected.
Consumer Behavior Involves Goods, Services, Activities, Experience, People, And Ideas
Consumer behavior means more than just the way that a person buys tangible products such
as bath soap and automobiles. It also includes consumer’s use of services activities, experience, and
ideas such as going to the dentist, attending a concert, taking a trip, and donating to UNICEF. In
addition, consumers make decisions about people, such as voting for politicians, reading books by
certain authors, streaming movies or TV shows starring certain actors, and attending concerts featuring
favorite bands.
Another example of consumer behavior involves choice about the consumption of time, scarce
resources. Will you check to see what’s happening on Facebook, search for a YouTube video, watch a
7 Module 1 – Introduction to Consumer Behavior
sports event live, or record a program and watch it later, for instance? How we use time reflects who
we are, what our lifestyle are like, and how we are both the same as and different from others. Because
consumer behavior includes the consumption of so many things, we use the simple term offering to
encompass these entities.
• Consumer behavior- The totality of consumers decisions with respect to the acquisition,
consumption, and disposition of goods, services, time and ideas by human decision-making
units (over time).
• Offering -A product, service, activity, experience, or idea offered by a marketing organization
to consumers.
Acquiring an Offering
Buying represents one type of acquisition behavior. As shown later in this lesson, acquisition
includes other ways of obtaining goods and services, such as renting, leasing, trading, and sharing. It
also involves decisions about time as well as money. Consumers sometime find themselves interrupted
during a consumption experience; studies show interruption actually makes a pleasant experience
seem more enjoyable when resumed. Deadlines can also affect acquisition behavior. Consumers tend
to procrastinate in redeeming coupons and gift card with far-future deadlines, but move more quickly
when deadlines are closer. Why? Because they do not want to regret having missed out and they
expect to have more time to enjoy and indulge themselves with the acquisition in the future.
Using an Offering
After consumers acquire an offering, they use it, which is why usage is at the very core of
consumer behavior. Whether and why we use certain products can symbolize something about who
we are, what we value, and what we believe. The product we use on Thanksgiving may symbolize the
events significance and how we feel about our guest. The music we enjoy and the jewelry we wear
can also symbolize who we are and how we feel. Moreover, marketers must be sensitive to when
consumer are likely to use a product, whether they find it effective, whether they control their
consumption of it, and how they react after using it –do they spread positive or negative word-of-
mouth reviews about a new for instance?
Disposing of an Offering
Disposition, how consumers get rid of an offering they have previously acquired, can have
important implications for marketers. Consumers can give away their used possessions, sell them on
eBay or on consignment to vintage stores, rent them via sharing websites, or lend them to others. Eco-
minded consumers often seek out biodegradable products made from recycled materials or choose
8 Module 1 – Introduction to Consumer Behavior
goods that so not pollute when disposed. Municipalities are also interested in how to motivate earth-
friendly disposition. Marketers see profit opportunities in addressing disposition concerns.
Consumer behavior also affects decisions about managing debt. For instance, consumers are
likely to make higher repayment when credit card statements make no mention of a mandatory
minimum monthly repayment. Another study found that consumers who close a credit account are more
likely to be successful at eliminating their debt, because taking this step motivates them to persist in
pursuit of their goal. When consumers feel powerful and in control of their resources, they will put more
money in the bank in order to maintain that state power.
Entire markets are designed around linking one consumer’s disposition decision to other
consumer acquisition decisions. When consumers buy used cars, they are buying cars that others have
disposed of. From eBay’s online auction to Goodwill Industries’ second-hand clothing stores, from
consignment shops to used books sold online, many businesses exist to link one consumer’s
disposition behavior with another acquisition behavior. Environmental attitudes and auctions are
changing, which means marketers must take into account consumers’ goals and priorities, perceptions
of brans, and internal processes when planning marketing efforts.
Broader changes in consumer behavior occur over time, as well. Fifty years ago, consumers
had far fewer brand choices and were exposed to fewer marketing messages. In contrast, today’s
consumers (particularly millennia’s) are more connected, easily able to research offerings online,
9 Module 1 – Introduction to Consumer Behavior
access communications and promotions in multiple media, and check what others think of brans with a
quick search or social media post.
They may need to decide whether to order a pizza, clean out a closet, or download a movie.
Come consumers collect items, for example, a practice that has created a huge market for buying,
selling, transporting, storing, and insuring collectible items. Decisions about whether to acquire, use, or
dispose of an offering are often related to personal goals, safety concerns, or a desire to reduce
economic, social, or psychological risk. However, such decisions can also be affected by subtle cues
in our environment. Did you know that the mere act of hand washing can affect people’s decisions to
relinquish their own possessions? Also, simply entering a lottery can undermine someone’s self-control-
making a person more likely, for example, to give in to indulgent purchases. Self-control is an important
factor in many consumer behavior situations, as you’ll see in later chapters.
choose between brands such as whether to buy an Apple iPhone or a Samsung Galaxy phone. Our
choices multiply daily as marketers introduce new products, sizes, and packages.
Sometimes our reasons for using an offering as filled with conflict, which leads to some difficult
consumption decisions. Teenagers may smoke cigarettes or e-cigarettes, even though they know it is
harmful, because they think smoking will help them gain acceptance. Some consumers may be unable
to stop acquiring, using, or disposing of products. They may be physical addicted to products such as
cigarettes, or they may have a compulsion to eat, gamble, or buy.
Using an offering can include what we use with the offering (e.g., chips with salsa) as well as
how we store and organize the items in our homes. Some interesting research suggests that we like to
have things organized in our homes because we fell less anxiety and a greater sense of control over
our lives when things are structured. Notably though what seems organized to one person may seem
messy to another. Whereas you might think about the items in your room in finely grained categories
(e.g., black shirts are different from white shirts, and pants, shoes and belts are in a different category
altogether), your roommate might have broader categories for thinking of items in their closet (they’re
all just “my clothes”). You may think her closet is messy; your roommate may think the organization of
her closet is perfectly fine.
Our need for variety can affect when we acquire, use, or dispose of an offering. We may decide
not to eat a sandwich for lunch today if we have already had it every other day this week. Transitions
such as graduation, birth, retirement, and death also affect when we acquire, use, and dispose of
offerings. When we consume can be affected by traditions influence by our families, our culture, and
the area in which we live.
Decisions about when to acquire or use an offering are also affected by knowing when others
might not be buying or using it. Thus, we might choose to go to the gym when we know that others will
not be doing so. In addition, we may wait to buy until we know something will be on sales; even if we
have to line up to buy something popular, we are likely to continue waiting if we see many people joining
the line behind us. Also, waiting to consume a pleasurable product such as candy increases our
enjoyment of its consumption, even though we may be frustrated by having to wait.
Finally, consumers make decisions regarding where to dispose of goods. Should they toss an
old magazine in the trash or the recycling bin? Should they store an old photo album in the attic or give
it to a relative? Older consumers, in particular, may worry about what will happen to their special
possessions after their death and about how to divide heirlooms without creating family conflict. A
growing number of consumers are recycling unwanted goods through recycling agencies or non-profit
groups or giving them directly to other consumers through websites like The Freecycle Network
Sales of a product can be increased when the consumer (1) use larger amounts of the product,
(2) uses the product more frequently, or (3) uses it for longer periods of time. Bonus packages may
motivate consumers to buy more of a product, but does this stocking lead to higher consumption? In
the case of food products, consumers are more likely to increase consumption when the stock pole
13 Module 1 – Introduction to Consumer Behavior
item requires no preparation. Usage may also increase when consumers sign up for flat-fee pricing
covering unlimited consumption of telephone services or other offerings. However, because many
consumers who choose flat-fee programs overestimate their likely consumption, they often pay more
than if they had chosen per-usage pricing.
Because issues related to consumer behavior can involve stress, consumers often need to cope
in some way. Researchers have studied how consumers cope with difficult choices and an
overwhelming array of goods from which to choose, how consumers use goods and services to cope
with stressful events like having cancer; and how they cope with losing possessions due to divorce,
natural disasters, moving to a residential-care facility, and other significant events. They have even
studied the coping behavior of certain market segments, such as low-literacy consumers, who often
find it challenging to understand the marketplace without being able to read.
14 Module 1 – Introduction to Consumer Behavior
Although the four domains are presented in separate sections of this book, each domain is related to
all the others. For example, to make decisions that affect outcomes like buying new products, consumers must
first engage in processes describe in the psychological core. They need to be motivated, able, and have the
opportunity to be exposed to, perceive, and attend to information. They need to think about and comprehend
this information develop attitudes about is, and form memories they can retrieve during the decision process.
The culture environment also affects what motivates consumers, how they process information, and
the kinds of decisions they make. Age, gender, social class ethnicity, families, friend, and other factors affect
consumer values and lifestyles and, in turn, influence the decisions that consumers make and how and why
they make them.
15 Module 1 – Introduction to Consumer Behavior
Again, the psychological core is invoked in making decisions. With a high-effort decision, Jason
will be motivated to be exposed to lots of information, think about it deeply, analyze it critically, and form
attitudes about it. He may have lasting memories about this information because he has thought about
it so much. Consumers are not always aware of what they are thinking and how they are making their
choices, so Jason might not be able to explain what affected his choices (background music in a travel
agency might even be an influence). Yet the emotions he thinks he will experience from different options
(excitement, relaxation) may well influence his ultimate choice. With a low-effort decision, such as what
17 Module 1 – Introduction to Consumer Behavior
brand of toothpaste to buy, he would probably engage in less information search and process
information less deeply, resulting in less enduring attitudes and memories.
Diversity Influences
Jason is a member of many regional, ethic, and religious groups that directly affect the decisions
he makes. For example, although his decision to ski at a place far from home is fairly typical for a North
America man launch on his career, a consumer from a developing nation or a single woman from a
different culture may not have made the same choice. Also, his age, gender, and educational
background may all affect hi impressions of what constituted a good vacation, accounting for his interest
in a European ski trip.
18 Module 1 – Introduction to Consumer Behavior
On the other hand, both consumers and marketers can and do use marketing for constructive
purposes, balancing short and long-term horizons plus the interest of themselves and others. These
efforts by marketers and consumers may be relatively narrow-focusing on satisfying the needs of a
particular consumer segment-or much broader, such as protecting the environment or improving the
community. In the example of Jason choosing a ski vacation, he might decide to stay at an eco-friendly
resort that conserves water and uses energy from clean sources. Or he may decide to buy his gear
second-hand on eBay or from a retailer that is transparent about its environmental impact.
Marketing Managers
The study of consumer behavior provides critical information to marketing managers for
developing marketing strategies and tactics. The American Marketing Association’s definition of
marketing shows why marketing managers need to learn about consumer behavior:
o Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offering that have value for customers, clients, partners, and society
at large.
As this definition makes clear, marketers need consumer behavior insights to understand what
consumers and clients value; only then can they develop, communicate, and deliver appropriate goods
and services.
Academics
Understanding consumer behavior is important in the academic world for two reasons. First,
academic disseminate knowledge about consumer behaviors when they teach course on the subject.
Second, academics generate knowledge about consumer behavior when they conduct research
focusing on how consumers act, think, and feel when acquiring, using, and disposing of offering. In
turn, such academic research is useful to marketing managers advocacy groups, policy makers,
regulators, and others who need to understands consumer behavior.
Developing Products
Developing goods and services that satisfy consumers’ wants and need is a critical marketing
activity. Marketers apply consumer research when making a number of decisions about products and
branding.
Positioning
Another strategic choice is deciding how an offering should be positioned in consumers’ minds.
The desired image should reflect what the product is and how it differs from the competition. For
example, the window of the World theme park on Shenzhen, China, is positioned as a fun place for
Chinese consumers who want to see the world’s most famous sights without leaving the country.
Online advertising is also being researched. One finding, for instance, is that customizing e-mail
message for targeted customers is an effective way to boost visits to the brand’s website. Another study
showed that both emotion and physiological arousal are factors in whether an online ad goes viral.
Specifically, an ad is more likely to be spread virally when the content evokes a positive emotional
response (such as awe) or a negative emotional response (such as anger). As an example, Kleenex’s
25 Module 1 – Introduction to Consumer Behavior
“Unlikely Best Friends” commercial, which featured a man and a dog-both in wheelchairs-attracted tens
of millions of online views due to positive emotional response?
Also, when making a purchase, consumers consider how much they must pay in relation to the
price of other relevant brands or to the price they previously paid for that product, so marketers must
be aware of these reference prices. When buying multiple units of service for one bundle price (such
as a multiday ski pass), consumers may not feel a great loss if they use only some of the units because
they have difficulty assigns value to each unit. In addition, when consumers buy multiple products for
one bundle price (such as a case of wine), they are likely to increase their consumption because unit
costs seem low. How much consumers will pay can even be affected by the price of unrelated products
they happen to see first. Thus, the price you would be willing to pay for a T-shirt may vary, depending
on whether the prices you notice for shies in the store next door were high or low.
Also, studies indicate that consumers have differing perceptions of what a product is worth,
depending on whether they are buying or selling it. Generally, people tend to overestimate how much
others will pay for goods, particular when they are selling a product they own. Sellers should therefore
avoid this endowment effect; that is, they should not set a higher price than buyers are willing to pay.
27 Module 1 – Introduction to Consumer Behavior
are often used together. Consumer research can also help marketers develop other aspects of their
retail environments.
Store design also depends on whether consumers are shopping for fun or seeking to quickly
accomplish a particular task like buying a certain item. During the back-to-school shopping season, for
instance, Target stores display form-room products together for consumer convenience. Knowing that
some consumers simply like to shop, retailers are increasingly creating more exciting and aesthetically
pleasing store environments.
Given the significant increase in shopping via computer and mobile devices, retailers must
design website for friendly functionality on devices used by target consumer groups. Research shows
that 38 percent of shoppers only use smartphone when buying from the Amazon retail website, for
example; similarly, 44 percent of shoppers only use smartphones when buying from the eBay site.
Stores and retail website must not only function well, they can convey a particular image and shopping
atmosphere. To illustrate, the apparel retailer Abercrombie & Fitch added an online playlist so
customers who shop via the Internet can click to her the same songs that play in its store.
Survey
One of the most familiar research tools in the survey, a method of collecting information from a
sample of consumers, usually by asking questions, to draw quantitative conclusions about a target
population. Some questions may be open-ended, with the consumer filling in the blanks; other
questions may ask consumers to use a rating scale or check marks. Surveys can be conducted in
person, through the mail, over the phone, or by using the Web.
Focus Groups
Unlike a survey, which may collect input from hundreds of people responding individually to the
same questionnaire, a focus group brings together small groups of consumers to discuss an issue or
29 Module 1 – Introduction to Consumer Behavior
an offering. Led by a trained moderator, participants express their opinions about a given product or
topic, which can be particularly useful in identifying and testing new product ideas. Focus groups
provide qualitative insights into consumer attitudes as opposed to the quantitative (numerical) data
resulting from survey.
Focus group is a form of interview involving 8 to 12 people, a moderator leads the group and
asks participants to discuss a product, concept, or other marketing stimulus.
Interview
Like focus groups, interviews involve direct contact with consumers. Interview are often more
appropriate than focus groups when the topic is sensitive, embarrassing, confidential, or emotionally
charges. They provide more in-depth data than surveys when the researchers want to “pick consumers
brains”
In some interviews, researchers ask customers about the process they use to make a purchase
decision. One research company assigns professional interviewers to tape-record consumers thoughts
while shop for groceries. This research helps marketers understand how factors in the shopping
environment affect purchasing. Interviews can also uncover broader attitudes that affect behavior
across product categories. When the Underwriters Laboratories interviews hundreds of consumers in
United States, Germany, China, and India, it found a belief that high-tech firms were bring new products
to market more quickly than needed. The interviews revealed concerns about the fast pace of new
technology and about new products being introduced because companies wanted new products to sell,
not necessarily because the products were innovative.
Storytelling
Another tool for conducting consumer research is storytelling, in which consumers tell
researchers about their experiences with a product. At Patagonia, which markets outdoor clothing and
accessories, researchers collect consumer stories about backpacking and other outdoor experiences
for use in developing the company’s catalogues and online product descriptions. Storytelling not only
provides information relevant to the marketing of the product but also shows that Patagonia is in touch
with its customers and values what they say.
Although storytelling involves the real stories of real consumers, sometimes marketers ask
consumers to tell or write stories about hypothetical situations that the marketers has depicted in a
picture or scenario. The idea is that a consumer’s needs, feelings, and perceptions are revealed by the
way he or she interpret what is depicted in the picture of a woman at the entrance to a Zara store with
30 Module 1 – Introduction to Consumer Behavior
a thought bubble above her head and ask consumers to write what they imagine the woman is thinking.
Such stories can reveal what consumers think of a particular store, purchase situation, and so on.
Diaries
Asking consumers to keep diaries can provide important insights into their behavior, including
product purchasing and media usage. Diaries often reveal how friends and family affect consumers’
decisions about money, cloths, music, fast foods, videos, concerts, and so on. For example, several
Federal reserve Banks around the country recruit consumers each year to maintain a diary of financial
transactions for several days. The purpose is to understand the use of cash, credit, debit, and electronic
payment methods and identify changes in payment preferences over time.
Experiments
Consumer’s researchers can conduct experiments to determine whether certain marketing
phenomena affect consumer behavior. For example, they might design an experiment to learn whether
consumers’ attitudes toward brands are affected by the brand name as opposed to factors such as
product features, package, color, logo, room temperature, or the consumer’s mood. With experiments,
researchers randomly assign consumers to receive different “treatment” and then observe the effects
of these treatments. To illustrate, consumers might be assigned to groups that are shown different
brand names. The researchers collect data about participant’s attitudes toward the name and compare
attitudes across groups. In a taste-test experiment, they might randomly assign consumers to groups
and then ask each group to taste a different product. Comparing evaluations of the product across the
groups will show which product is preferred.
An important aspect of such experiments is that the groups are designed to be identical in all
respects except the treatment, called the independent variable. Thus, in a taste-test experiment, only
the taste of the food or beverage is varied.
Field Experiments
Although experiments are often conducted in controlled laboratory situations, marketers can
plan and implement experiments in the real world, known as “field experiments”. One type of filed
experiments a market test, reveals whether an offering is likely to sell in a given market and which
marketing-mix elements most effectively enhance sales. Suppose marketers want to determine how
much advertising support to give to a new product. They could select two test markets of a similar size
31 Module 1 – Introduction to Consumer Behavior
and demographic composition and spend a different amount of money on advertising in each market.
By observing product sales in the two markets over a set period, the marketers would able to tell
whether the added investment in advertising had a significant sales impact.
Conjoint Analysis
Many marketers use the sophisticated research technique of conjoint analysis to determine
the relative importance and appeal of different levels of an offering’s attributes. To start, researchers
identify the attributes of the offerings, such as package size, specific product features, and price points.
Next, they determine the levels to be tested for each attribute (e.g., large or small size). Then they ask
consumers to react to a series of product concepts that combine these attributes in different ways.
Purchase Panels
Sometimes marketers try to understand consumer behavior by tracking what consumers buy
pm different purchase occasions. This kind of research simply records whether a behavior occurred.
Such behavioral data may be collected from special panel members, from a representative sample of
the general population, or from the marketer’s target market. Every time panel members go shopping,
the cash register records their purchase. By merging purchase data with demographic data, marketers
can tell who is purchasing a product, whether those consumers are also buying competitors pouts, and
whether a coupon or other sales promotion was involved.
Netnography
Researchers can use a variety of methods for netnography, ethnographic research techniques
adapted for the observation and analysis of consumers’ online behaviors and comments. The content
consumers post on social media, brand forums, and website, as well as data on brand like and dislikes
32 Module 1 – Introduction to Consumer Behavior
and consumers’ experiences with offerings all provide rich materials for netnography research.
However, research are sstill learning to interpret the intentions, attitudes, and emotions inherent in
message and images on Twitter, Facebook, Instagram, Pinterest, and other social media.
Neuroscience is the scientific study of the nervous system, which includes the brain, the spinal
cord, and the retina. Development in neuroscience has led to the introduction of new methodologies to
collect data on fundamental brain processes involved in consumer behavior.
Today, consumer researchers are gaining deeper insights by measuring physiological reactions
and applying neuroscience to understand how consumers respond to various stimuli.
that these shoppers associated the retailer with accessory merchandise, rather then with major furniture
piece and sets. The researchers also discovered that IKEA shoppers were looking for creative ideas
they could adapt to personalize their living spaces. Based on this research, the agencies developed a
multimedia campaign showing how the store offers choices for furnishing entire rooms with personal
flair. The campaign included a brand community where consumers could upload photos of rooms the
furnished and decorated with IKEA products, as inspiration for other consumers. The result: IKEA’s
sales of living room set rose 9 percent.
Some advertising agencies have departments to test advertising concepts as part of the service
they provide to clients. Agencies may also conduct advertising pretesting’s, suing drawing of ads or
finished ads, to make sure that an ad is fulfilling its objectives before it is place in the media. Tracking
studies can determine whether the percentage of target market consumers who are aware pf a brand
has changes as a function of the amount, duration, and timing of its advertising.
Nielsen is syndicated data service that tracts the TV viewing habits of thousands of particular
U.S. households. Using digital set-top equipment, it records which TV shows each household member
is viewing and when.
5. Retailers
Large retail chains often conduct consumer research. By using electronic scanners to rack sales
of a brand or product category, they can determine which are their best and worst-selling items and see
how consumers respond to coupons, discounts, and other promotions. Because salespeople often
interact directly with customers, retailers sometimes use research to measure customer satisfaction
34 Module 1 – Introduction to Consumer Behavior
and determine how they can improve service quality. Often retailers use research to uncover new needs
and understand brand perceptions. Raymond, a clothing chain based in India, conducted research to
investigate consumers’ preferences and brand attitudes within the United Arab Emirates and Saudi
Arabia. After ascertaining that Gulf-region consumers accepted its brand and felt an emotional
connection with it, Raymond designed stores specifically for these markets. Now the chain anticipates
ongoing expansion in Dubai and other Gulf markets.
Specialized trade groups may also collect consumer research to better understand the needs
of consumers in their own industries. A trade group is an organization formed by people who work in
the same industry, such as the Recording Industry Association of America, a group whose members
are involves in the music industry through recording, distribution, or retailing activities. This organization
has sponsored a host of research projects, including studies to understand how America musical tastes
and music consumption patterns have change over the years.
7. Government
Although government agencies do not use research to help market an offering, business
frequently use government research for marketing purpose, as when they examine census data to
estimate the size of various demographics markets. U.S. government studies by agencies such as the
Consumer Product Safety Commission, the Department of Transportation, and the Food and Drug
Administration are specifically designed for consumer protection. As an example, the Federal Trade
Commission (FTC) conducts research on potentially deceptive, misleading, or fraudulent advertising.
One issue the FTC continues to study for example is how consumers perceive goods and services
advertising using phases that suggest environmentally friendly properties. After conducting research,
the FTC issued and later clarified guidelines for how marketers are permitted to use specific phrases
(e, g, “renewable materials’) to avoid misleading consumers about “green” claims. Research can also
help resolve court cases involving marketing issues such as whether consumers are confusing a new
products trademark with an established products trademark, a situation that could hurt the establishes
brand.
8. Consumer Organizations
Independent consumer organizations also conduct research, generally for the purpose of
protecting or informing consumers. Consumers Union is an independent, non-profit testing and
information organization designed to serve consumers. The organization publishes the well-known
35 Module 1 – Introduction to Consumer Behavior
consumer Reports magazine. Many of the products described in consumer Reports are tested in
Consumers Union’s independent product-testing lab, and the results are posted on the organization’s
website.
2. What are some of the factors in the psychological core that affect consumer decisions and behavior?
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3. What is an offering?
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6. How can public policy decision makers, advocacy groups, and marketing managers use consumers
research?
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TOPIC SUMMARY
• Each aspect of the psychological core has a bearing on the consumer decision-making process, which
involves (1) problem recognition, (2) information search, (3) judgments and decision-making, and (4)
evaluating satisfaction with the decision.
• Consumer behavior is affected by the consumer’s culture and by the typical or expected behaviors,
norms, and ideas of a particular group.
• Consumers belong to a number of groups, share their cultural values and beliefs, and use their symbols
to communicate group membership.
• Household and social class influences are involved in consumer behavior, as are each individual’s
values, personality and lifestyles. Consumer behavior can be symbolic and express an individual’s
identity. It is also indicative of how quickly an offering spread throughout a market.
• Marketers study consumer behavior to gain insights that will lead to more effective marketing strategies
and tactics.
• Ethicists and advocacy groups are keenly interested in consumer behavior, as are public policy maker
and regulators who want to protect consumers from unsafe or inappropriate offering.
• Finally, studying consumer behavior helps marketers understand how to segments markets and how
to decide which to target, how to position an offering, and which marketing-mix tactics will be most
effective.
• Consumer research is a valuable tool that helps marketers design better marketing programs, aids in
the development of laws and public policy decisions regarding product safety, and promotes our general
understanding of how consumers behave and why.
• Tools may involve data collection from relatively few individual or from many individual and may study
consumers at a single point in time or track their behavior across time
• Some companies have internal marketing research departments to collect data; others use external
research firms to conduct studies. Advertising agencies and syndicates data services are two types of
outside agencies that conduct consumer research.
• Research supports a consumers-oriented view of marketing and can help companies improve
consumption experiences and strengthen customer relationships
REFERENCES
• Hoyer, Wayne D. . et.al., consumer Behavior 7th edition. Cengage Learning Asia Pte Ltd., 2018.
• Retrieved from:/https://bbamantra.com/project/consumer-behaviour-solved-case-Retrieve on August
1, 2021.study/https://bbamantra.com/project/consumer-behaviour- study/https://bbamantra.com