What Is CB And Why Should I Care

What Is Cb And Why Should I Carecopyright 2016 Cengage Learning All

What Is Cb And Why Should I Carecopyright 2016 Cengage Learning All

What Is CB and Why should I Care? What Is CB and Why Should I Care? Learning Outcomes Learning Outcomes Understand the meaning of consumption and consumer behavior Describe how competitive marketing environments lead to better outcomes for consumers Explain the role of consumer behavior in today’s business and society LEARNING OUTCOMES ‹#› CB8 | CH1 2 Learning Outcomes (continued) Be familiar with basic approaches to studying consumer behavior Appreciate how dynamic the field of consumer behavior continues to be, particularly with respect to technological advances such as big data analytics and the sharing economy ‹#› LEARNING OUTCOMES (continued) CB8 | CH1 3 Consumer Behavior (CB) Set of value-seeking activities that take place as people go about addressing their real needs Involves multiple psychological events like: Thinking Feeling Behaving Entire process culminates in value LO 1 ‹#› CB8 | CH.1 The Basic Consumption Process LO 1 ‹#› Exhibit CB8 | CH1 5 Consumption Process by which consumers use and transform goods, services, or ideas into value Involves interaction between the marketer and consumer Outcomes affect the consumer’s well-being and quality of life LO 1 ‹#› CB8 | CH1 Consumer Behavior as a Field of Study Science of studying how consumers seek value in an effort to address real needs CB shares strong interdisciplinary bonds with: Economics Psychology, particularly social psychology Marketing Anthropology LO 1 ‹#› CB8 | CH.2 Relationships of CB with Other Disciplines LO 1 ›#› Exhibit CB8 | CH1 8 Economics and Consumer Behavior Economics: Study of production and consumption Economists focus on the macro perspective of CB bounded by broad assumptions Data is derived from historical sales records Studies involve: Commodity consumption of nations over time Tracking changes in consumption with different price levels LO 1 ‹#› CB8 | CH.3 The Big Mac Index LO 1 ›#› Exhibit CB8 | CH1 10 Consumer Psychology Study of human reactions to their environment Psychology Study that focuses on the thoughts, feelings, and behaviors that people have as they interact with other people Social psychology Study of the intricacies of mental reactions involved in information processing Cognitive psychology LO 1 ‹#› CB8 | CH Consumer Behavior and Marketing Marketing: Multitude of value-producing seller activities that facilitate exchanges between buyers and sellers, including: Production Pricing Promotion Distribution Retailing LO 1 ‹#› CB8 | CH CB and Other Disciplines Sociology: Study of groups of people within a society Consumption is affected by group dynamics Anthropology: Field of study involving interpretation of relationships between consumers and: Things they purchase Products they own Activities in which they participate LO 1 ›#› CB8 | CH Firm Orientations and Consumers Competition drives companies toward a high degree of consumer orientation Firm's actions and decision making prioritize consumer value and satisfaction above all other concerns Key component of a firm with market orientation Culture that embodies importance of creating value for customers among all employees LO 2 ‹#› CB8 | CH1 Firm Orientations and Consumers (continued) Stakeholder marketing: Firms recognize that more than just the buyer and seller are involved in the marketing process Primary stakeholders Customers, employees, owners, suppliers, and regulating agencies Secondary stakeholders Mass media, communities and trade organizations LO 2 ‹#› CB8 | CH Relationship Marketing Activities based on the belief that the firm’s performance is enhanced through repeat business Touchpoints: Direct contacts between the firm and a customer Channels of making contact Phone, email, text messaging, online social networking, and face-to-face contact LO 2 ‹#› CB8 | CH Importance of CB CB provides an input to business/marketing strategy CB provides a force that shapes the society CB provides an input to making responsible decisions as a consumer LO 3 ‹#› CB8 | CH CB and Marketing Strategy Resource-advantage theory: Prominent theory that explains why companies fail or succeed Success is attained by acquiring more resources and using them to gain physical and intellectual capital advantages Product: Potentially valuable bundle of benefits Attribute: Tangible feature of a product that potentially delivers a benefit of consumption LO 3 ‹#› CB8 | CH Characteristics of Successful Innovations Relative advantage Simplicity Observability Trialability Consistency LO 3 ‹#› CB8 | CH.5 Different Ways of Doing Business LO 3 ‹#› Exhibit CB8 | CH1 20 Effects of Consumer Behavior CB and society CB creates the society one lives in and serves as an essential source of input for public policy CB topics that can enlighten customers Consequences of poor budget allocation Role of emotions in decision making Social influences on decision making Environmental effects on CB Avenues for seeking redress for unsatisfactory purchases LO 3 ‹#› CB8 | CH Interpretive Research Seeks to explain the inner meanings and motivations associated with specific consumption experiences Falls into the broader category of qualitative research Qualitative research tools: Means for gathering data in a relatively unstructured way Include case analysis, clinical interviews, and focus group interviews LO 4 ‹#› CB8 | CH1 Interpretive Research Orientations Study of consumers that relies on interpretation of their lived experience associated with some aspect of consumption Phenomenology Study of consumers that relies on interpretation of artifacts to draw conclusions about consumption Ethnography LO 4 ‹#› CB8 | CH Quantitative Consumer Research Addresses questions about consumer behavior using numerical measurement and analysis tools Measurement is structured Data are not researcher dependent Enables researchers to better test hypotheses Doesn't require deep interpretation LO 4 ‹#› CB8 | CH.6 Comparing Quantitative and Qualitative Research LO 4 ›#› Exhibit CB8 | CH1 25 Consumer Behavior Is Dynamic Internationalization Companies are required to deal with geographical and cultural distances People from different cultures interpret products and behaviors differently Consumer perception will determine the success or failure of the product Technological advances have made geographical distance a nonissue LO 5 ‹#› CB8 | CH1 Big Data Represents massive amounts of data available to companies that can be used to predict customer behaviors Predictive analytics: Application of statistical tools in an effort to discover patterns in data that allow prediction of consumer behavior LO 5 ‹#› CB8 | CH1 Changing Economy Factors contributing to stagnant income Unemployment Limited prospects in the workforce Decreased opportunity to work at an acceptable wage Consumers are cautious about expenses and react favorably to price-cutting policies LO 5 ‹#› CB8 | CH1 Key Terms Consumer behavior Want Exchange Costs Benefits Consumption Consumer behavior as a field of study Economics Psychology Social psychology Cognitive psychology Neuroscience Marketing Sociology Anthropology Consumer (customer) orientation Market orientation Stakeholder marketing Relationship marketing Touchpoints Resource-advantage theory KEY TERMS ‹#› CB8 | CH1 Key Terms (continued) Attribute Product Undifferentiated marketing Product orientation Differentiated marketers One-to-one marketing Niche marketing Interpretive research Qualitative research tools Researcher dependent Phenomenology Ethnography Netnography Quantitative research Big data Predictive analysis Sharing economy Collaborative consumption KEY TERMS ‹#› CB8 | CH1 Summary Consumer behavior is a set of value-seeking activities Provides inputs for marketing strategies and shapes society Studied by using qualitative and quantitative approaches Varies with dynamicity in technology, demography, and the sharing economy Competition drives firms toward a high degree of customer orientation SUMMARY ‹#› CB8 | CH1 ‹#› CB8 | CH1 32 Chapter 1 Case Blaire O’Neil is hiring staff for Vous Vois Vision. She purchased the failing optical retail store that formerly operated under the name York Opticians. York had always emphasized what they called value in their advertising and boasted that no glasses in the store were over $199. Blaire is taking a different approach. Her dad had tried to talk her out of getting into a “dying industry.†However, Blaire believes the old positioning around low price was myopic and failed to recognize that things that offer value are the things that are worthy, special, and significant.33 Glasses are no different. Although more and more consumers are opting for corrective surgery to remedy impaired vision, she believes there are untapped market segments consisting of consumers sensitive to the ability to express one’s true self with their eyewear.

She attended an industry “market†(trade show) that emphasized the potential growth in designer frames and contact lenses that change the appearance of one’s eyes. The trade show even boasted that some consumers with perfect vision still wish to purchase designer frames to capture specific moods or to accent their favorite outfits. Additionally, the average price for a pair of sunglasses has more than doubled in the last decade and more and more consumers are visiting optical stores for their sunglass needs. Although Blaire was nervous about this venture at first, a closer look at the market leaves her feeling confident she has found her niche—or niches! Questions 1.

Using the basic consumption process in Exhibit 1.1, illustrate how a consumer “consumes’ eyewear. 2. Do you think Vous Vois Vision should adopt a product, production, or market orientation? Explain why. 3. Almost any business involves some ethical questions. In this case, discuss the ethics involved in potentially selling contact lenses or even designer glasses to a consumer who sees well enough not to actually “need’ vision correction. 4. Why might Blaire be interested in hiring a researcher to do some interpretive research about consumers and eyewear?

Paper For Above instruction

The concept of consumer behavior (CB) encompasses the activities individuals undertake when seeking, purchasing, using, and disposing of products and services that satisfy their needs and desires. Understanding this process is essential for businesses to develop effective marketing strategies and foster customer satisfaction. In the context of eyewear, the consumption process begins with the recognition of a need or desire for enhancing personal appearance or functionality. Consumers may decide to purchase eyeglasses, sunglasses, or contact lenses based on a range of factors including aesthetic appeal, brand reputation, price, and perceived value.

Using the basic consumption process outlined in Exhibit 1.1, the consumer's journey with eyewear begins with need recognition, such as feeling the desire to upgrade their current glasses or to find a fashionable frame that expresses their personality. Next, the consumer searches for information, which may involve browsing online reviews, visiting stores, or seeking recommendations from friends. Evaluation of alternatives follows, where factors like design, price, comfort, and brand influence the decision. The purchase decision is then made, often influenced by promotional incentives or perceived value. Post-purchase, consumers evaluate their satisfaction and determine whether the product meets their expectations, which influences future behaviors and brand loyalty.

Regarding the orientation of Vous Vois Vision, the company should adopt a market orientation rather than a strictly product or production focus. A market-oriented approach emphasizes understanding and fulfilling the specific needs and preferences of target customers, especially in a niche market that values self-expression and style. By focusing on customer insights and tailoring offerings—such as designer frames and customized eyewear—the business can differentiate itself in a competitive landscape and build strong customer relationships. This strategy aligns with Blaire O’Neil’s recognition that value is not solely about low prices but also about offering products that are meaningful and expressive.

Ethically, the sale of contact lenses or designer glasses to consumers who do not require vision correction raises considerations related to consumer honesty, informed consent, and potential exploitation. Selling non-essential corrective devices when not needed could be viewed as misleading or manipulative. Ethical practice necessitates transparency about product benefits and ensuring that consumers are making informed decisions based on their actual needs. Businesses should prioritize consumer health and trust over profit by providing truthful information and avoiding pressure tactics that may promote unnecessary purchases.

Blaire’s interest in hiring a researcher to conduct interpretive research about consumer perceptions and motivations pertains to gaining deeper insights into consumer preferences and emotional drivers related to eyewear. Interpretive research methods, such as phenomenology and ethnography, help uncover underlying values, attitudes, and cultural influences that shape consumer choices. Understanding the “meaning” that consumers associate with eyewear—beyond functional utility—allows the business to craft marketing messages and product offerings that resonate at a personal level. This qualitative approach is particularly valuable in niche markets like designer eyewear, where emotional expression and identity play crucial roles in purchase decisions.

References

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• Schiffman, L. G., & Kanuk, L. L. (2010). Consumer Behavior (10th ed.). Pearson Education.
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