CONSUMER BEHAVIOR:

A FRAMEWORK
John C. Mowen &
Michael S. Minor

Chapter 1: An Introduction to
Consumer Behavior

Published by Prentice, Inc.

 Concepts to Learn
 Definition of CB
 Consumer primacy
 Environmental analysis
 Positioning/differentiation
 Segmentation
 Theory and CB
 Research
perspectives on
consumer behavior
 Exchange processes
 Organizing model of
consumer behavior
Consumer Behavior . . .
. . . is defined as the
study of the buying
units and the exchange
processes involved in
acquiring, consuming,
and disposing of goods,
services, experiences,
and ideas.
Why Study Consumer
Behavior?

 Foundation of Marketing
Management
 Public Policy and Consumer
Behavior
 Altruistic Marketing
 Personal Value
Three Research
Perspectives on Consumer
Behavior
 The Decision-Making Perspective

 The Experiential Perspective

 The Behavioral Influence Perspective

The Decision-Making Perspective . .
.
. . . proposes that Generic Decision Model
buying results from  Problem Recognition
consumers  Search
perceiving that they
 Alternative Evaluation
have a problem and
then they move  Choice

through a series of  Postacquistion

rational steps to Evaluation
solve the problem
The Experiential Perspective.
. . . proposes that in
some instances buying
results from the
consumer’s need for
fun, to create fantasies,
obtain emotions, and
feelings.
Frequently uses
interpretative research
methods.
The Behavioral Influence
Perspective . . .

. . . assumes that strong environmental

forces propel consumers to make
purchases without necessarily first
developing strong feelings or beliefs
about the product.
Exchange Processes and
Consumer Behavior
 Exchange is the
process that
involves the
“transfer of
something tangible
or intangible, actual
or symbolic,
between two or
more social actors.”
Prerequisites for Exchange:
 Two or more parties must be present
 Each party has something of value to the other
 Each party is capable of communication and
delivery
 Each party must be free to accept or reject the
other's offer
 Each party must believe that it is appropriate or
desirable to deal with the other
Elements of Exchange

Six Types of Resources Are Exchanged:

 Goods  Information

 Service  Status

 Money  Feelings
 Dimensions of Exchange
Relations
 Four types of consumer exchange
relations have been identified:

 Restricted versus Complex Exchanges

 Internal versus External Exchanges
 Formal versus Informal Exchanges
 Relational versus Discrete
Relational exchange
 Current hot topic in marketing
 Characteristics
 long term
 reciprocal obligations
 non-economic rewards: market embeddedness--social
ties between buyer and seller increase perceived value
of exchange.
 extensive formal and informal communications
 high interdependence
 planning
 Relational exchange practiced between members
of marketing channel.
Market Embeddedness
 The social ties between buyer and seller
increase the perceived value of the
exchange.
 Examples, house parties of:
 Tupperware
 Mary Kay Cosmetics
Ethical Issues in Consumer
Exchange Relations
 Ethics is the study of
the normative
judgments
concerned with what
is morally right and
wrong, good and
bad.
 Free riding:
example of an
unethical action.
Ethical judgments
 deal with serious human injuries and benefits
 may, or may not, be laid down by authority
 override self interest

 are based on impartial considerations

 Ethical dilemma: a decision that involves the trade-

off between lowering one’s personal values in exchange
for increased organizational or personal profits.
 Ethical exchange
 both parties know full nature of agreement
 nothing intentionally misrepresented or omitted
 no undue influence takes place via power.
 Ethical rules of thumb
 Golden rule: act in a way that you would
expect others to act toward you.
 professional ethic: take actions that would
be viewed as proper by an unbiased panel
of colleagues.
 TV test: Would I feel comfortable
explaining my actions on national
television?
 Kant’s categorical imperative: forego acts,
that if used as a universal principle of
behavior, would result in negative societal
outcomes.
 An Organizing Model of
Consumer Behavior
 The model has five primary components:

 The Buying Unit

 The Exchange Process
 The Marketer’s Strategy
 The Individual Influencers
 The Environment
 Buying unit
 consumers, firms, government, non-profits, etc.
 Individual influencers
 information processing

 behavioral learning

 motivation and personality

 beliefs, attitudes and behaviors

 communications

 decision making

 Marketer, who develops strategy

 marketing mix
 segmentation and positioning
 employs marketing research to understand consumers
Environmental Analysis:
 the marketer assesses the impact of each of the
below facets of the environment on the firm.
 situations

 groups and families

 culture

 subculture

 cross cultural issues

 regulatory environment
Managerial Applications
Analysis (PERMS)
 Five factors to consider when using
consumer behavior principles to develop
managerial strategy are:
 positioning and differentiation
 environmental analysis
 marketing research
 marketing mix
 segmentation