Michael R. Solomon8th edition

Consumer behavior is a process

• Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

• Discuss each highlighted word

Stages in the consumption processConsumers’ Perspective Marketer’s Perspective

Segmenting Consumers

• Demographic Dimensions Age Gender Family Structure Social Class and Income Race and Ethnicity Geography

• Beyond Demographics : Lifestyles

Market Segmentation Categories

Geographic SegmentationGeographic Segmentation Region : Provinces City size : Kota ibukota, kotamadya, desa Density : Urban, Sub-urban, Rural Climate : hot, cool, mountain, coastland

Demographic SegmentationDemographic Segmentation Age Sex/gender Income/Expenditure Education Occupation

+ cohort segmentation

Ethnic group Religion Family lifecycle

AN OVERVIEW OF THE FAMILY LIFE CYCLE AND BUYING BEHAVIORSTAGE IN FAMILY LIFE CYCLE BUYING OF BEHAVIORAL PATTERN

1. Bachelor stage: young, single, people not living at home

Few financial burdens. Fashion opinion leader. Recreation oriented. Buy: basic kitchen equipment, basic furniture, cars, equipment for the mating game, vacations.

2. Newly Married couples: young, no children

Better off financially than the will be in near future. Highest purchase rate and highest ever-age purchase of durables. Buy: cars, refrigerators, stoves, sensible and durable furniture, vacations.

3. Full nest I: youngest child under six

Home purchasing at peak. Liquid assets low. Dissatisfied with financial position and amount of money saved. Interested in new products. Like advertised products. Buy: washers, dryers, TV, baby food, chest rubs and cough medicines, vitamins, dolls, wagons, sled, skates.

4. Full nest II: youngest child six or over.

Financial position better. Some wives work. Less influenced by advertising. Buy larger-size packages, multiple-unit deals. Buy: many foods, cleaning materials, bicycle, music lessons, pianos.

5. Full nest III: older married couples with dependent children

Financial position still better. More wives work. Some children get jobs. Hard to influence with advertising. High average purchase of durables. Buy: new, more tasteful furniture, auto travel, unnecessary appliances, boats, dental services magazines.

6. Empty nest I: older married couples, no children living with them, head in labor force.

Home ownership at peak. Most satisfied with financial position and money saved. Interested in travel, recreation, self-education. Make gifts and contributions. Not interested in new product. Buy: vacations, luxuries, home improvements.

7. Empty nest II: older married. No children living at home, head retired.

Drastic cut in income. Keep home. Buy: medical appliances, medical-care products that aid health, sleep, and digestion.

8. Solitary survivor, in labor force Income still good but likely to sell home

9. Solitary survivor, retired Same medical and product needs as other retired group; drastic cut in income. Special need for attention, affection, and security.

Psychographic SegmentationPsychographic SegmentationLifestyle segmentation : Lifestyle dimensions

A-I-O + D Activities Interests Opinions Demographics

The Meaning of Consumption

• People buy products for– What they do– What they mean

• Relationships between consumers and product:

– Self concept attachment : the product helps to establish user’s identity

– Nostalgic attachment: the product links with past self

– Interdependence : the product is a part of the user’s daily routine

– Love : the product elicits emotional bonds of warmth , passion or other strong emotions.

The Global Consumer

• Growing urban centers

• Global consumer culture : unite people all over the world by common devotion to brand names, movie stars, celebrities, leisure activities, multinational companies.

• Virtual consumption and the power of crowds/communities

Do Marketers Manipulate Consumers?

• Do marketers create needs? -Needs and wants

• Are advertising and marketing necessary?

• Do marketers create miracles?

Two Issues of Consumer Behavior

BRIGHT ISSUES

o Consumerismo Consumer Researcho Social Marketingo Green Marketing

DARK ISSUES

o Consumer Terrorismo Addictive Consumptiono Compulsive Consumptiono Consumed Consumers

• Prostitutes• Organ, blood, hair donors• Babies for sale

o Illegal Activities• Consumer theft and fraud• Anticonsumption :

deliberately deface or mutilate products.

Interdisciplinary Influences on the Study of Consumer Behavior

Disciplinary Focus

• Experimental Psychology• Clinical Psychology• Microeconomics• Social Psychology• Sociology• Macroeconomics• Semiotics• Demography• History• Cultural Anthropology

Product role

• Perception, learning, and memory process• Psychological adjustment• Allocation of individual and family resources• Behavior of individuals as members of social groups• Social institutions and group relationships• Consumers’ relations with the marketplace• Verbal and visual communication of meaning• Measurable characteristics of a population• Societal changes over time• Society’s beliefs and practices

Reading Assignment : Chapter 2

• Review Questions : no. 4, 5, 8, 13• Discuss : no. 1, 3• Apply : 7, 8