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Chapter Summary Glossary Terms

CHAPTER 1 IN REVIEWWhat is CB and Why Should I Care?

IN REVIEW: CHAPTER 17

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Chapter SummaryUnderstand the meaning oconsumptionand 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 behavioristhe 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 Termsanthropology study in whichresearchers interpret relationshipsbetween consumers and the things theypurchase, the products they own, andthe activities in which they participate

attribute a product eature that deliv-ers a desired consumer beneft

benefts positive results oconsumption

cognitive psychology study o theintricacies o mental reactions involvedin inormation processing

consumer behaviorset o value-seeking activities that take place aspeople go about addressing realized

needsconsumer behavior as a feldo study study o consumers as theygo about the consumption process; thescience o studying how consumers seekvalue in an eort to address real needs

consumer (customer) orienta-tion way o doing business in whichthe actions and decision making o theinstitution prioritize consumer value andsatisaction above all other concerns

consumptionprocess by whichgoods, services, or ideas are used andtransormed into value

costs negative results o consumption

dierentiated marketers frmsthat serve multiple market segments

each with a unique product oering

economics study o production andconsumption

ethnography qualitative approach tostudying consumers that relies on inter-pretation o artiacts to draw conclusionsabout consumption

exchange acting out o the decisionto give something up in return or some-thing o greater value

interpretive research approachthat seeks to explain the inner meaningsand motivations associated with specifcconsumption experiences

market orientation organizationalculture that embodies the importance o

creating value or customers among allemployees

marketing multitude o activities thatacilitateexchangesbetween buyers andsellers, including production, pricing,promotion, distribution, and retailing,which are all ocused on providing valueor consumers

CHAPTER 1 IN REVIEWWhat Is CB, and Why Should I Care?

CHAPTER ONE WHAT IS CB, AND WHY SHOULD I CARE?

TheBasicConsumptionProcess

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Describe how consumers get treated dierently in varioustypes o 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.

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8/2/2019 Ch01 Chapter Review

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

IN REVIEW: CHAPTER 17

Visit 4ltrpress.cengage.com/cb

for additional study tools.

Explain the role o consumer behavior in business andsociety.

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.

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

niche marketing plan wherein a frmspecializes in serving one market seg-

ment with particularly unique demand

one-to-one marketing planwherein a dierent product is oered oreach individual customer so that each

customer is treated as a segment o one

phenomenology qualitativeapproach to studying consumers thatrelies on interpretation o the lived

experience associated with some aspecto consumption

product potentially valuable bundle obenefts

production orientation approachwhere innovation is geared primarilytoward making the production processas e cient and economic as possible

psychology study o human reactionsto their environment

qualitative research tools meansor gathering data in a relatively unstruc-tured way including case analysis, clinicalinterviews, and ocus group interviews

quantitative research approachthat addresses questions about

consumer behavior using numerical

measurement and analysis tools

relationship marketing activi-ties based on the belie that the frmsperormance is enhanced through repeat

business

researcher dependent subjec-tive data, which requires a researcher tointerpret the meaning

resource-advantage theorytheory that explains why companies suc-ceed or ail; the frm goes about obtain-ing resources rom consumers in returnor the value the resources create

social psychologystudy that ocuseson the thoughts, eelings, and behaviorsthat people have as they interact withother people

sociology the study o groups opeople within a society with relevanceor consumer behavior because a greatdeal o consumption takes place within

group settings or is aected by groupbehavior

touchpoints direct contacts betweenthe frm and a customer

undierentiated marketingplan wherein the same basic product isoered to all customers

want way a consumer goes aboutaddressing a recognized need

CHAPTER ONE WHAT IS CB, AND WHY SHOULD I CARE?

Different Ways of Doing Business

ProductUndifferentiated

Marketing

Product 1

Product 2

Product 3

Differentiated

Marketing

Niche

Marketing

1 Segment

Segment 1

Segment 2

Segment 3

Product 1 Segment 1

Be amiliar with basic approaches to studying consumerbehavior.

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.

Describe why consumer behavior is so dynamic and howrecent trends aect 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.

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