What is Consumer Behavior? (With Real World Examples) | From A Business Professor

Summary

This video introduces the concept of consumer behavior, which reflects the decisions consumers make regarding acquiring, using, and disposing of goods, services, and experiences. The process involves three main categories: acquisition, consumption, and disposition. It highlights how consumer behavior is dynamic and influenced by internal and external factors like psychology, economics, and social influences. Understanding consumer behavior benefits marketers, non-profits, and consumers by aiding in strategy development, targeting, and decision-making. The video emphasizes the importance of long-term relationships with consumers and effective marketing strategies.

Takeaways

• ☕ Consumers experience marketing transactions daily, such as buying coffee at Starbucks.
• 🛍️ Consumer behavior reflects the totality of decisions related to acquiring, consuming, and disposing of goods, services, and experiences.
• 🧠 Consumer behavior includes not only tangible products but also activities and experiences like vacations, haircuts, and donating.
• 🏛️ Consumers also make decisions in areas like politics, social media usage, and gym memberships.
• 📦 Acquisition is the process of obtaining offerings, including renting, leasing, and trading products or services.
• 👩‍💻 Consumption involves how consumers use products, and satisfaction or regret often follows based on their experience.
• ♻️ Disposition refers to how consumers get rid of products, which can involve donating, selling, or recycling.
• 🌍 Environmentally conscious consumers prefer reducing waste, recycling, and choosing eco-friendly products.
• 🔄 Consumer behavior is a dynamic process involving acquisition, consumption, and disposition over time.
• 📚 Understanding consumer behavior helps marketers develop strategies, position products, and build long-term relationships.

Q & A

What is consumer behavior?

Consumer behavior reflects the totality of consumers' decisions with respect to the acquisition, consumption, and disposition of goods, services, activities, experiences, people, and ideas by decision-making units.

What are the three broad categories in which consumers make decisions?

The three broad categories are acquisition, consumption, and disposition.

What does 'acquisition' mean in consumer behavior?

'Acquisition' refers to the various ways consumers obtain offerings, such as renting, leasing, trading, or sharing.

How does consumer behavior extend beyond buying products?

Consumer behavior includes not only buying tangible products but also using services, activities, and experiences, such as getting haircuts, going to the movies, taking vacations, or donating products.

Why is consumer behavior considered a dynamic process?

Consumer behavior is dynamic because the acquisition, consumption, and disposition processes occur over time and in varying orders. These decisions can also involve multiple people and factors, such as where, when, and how to buy a product.

How do consumer reviews influence other consumers?

Positive or negative consumer reviews significantly influence other consumers' purchasing decisions by shaping their perceptions of products or services.

What is disposition, and why is it important for marketers?

'Disposition' refers to how consumers get rid of an offering, such as selling, donating, or recycling it. Understanding disposition is important for marketers because it provides insight into environmentally conscious consumers and their choices.

What role does psychology play in understanding consumer behavior?

Psychology helps explain internal processes like motivation, perception, and memory, which influence consumers' decision-making.

Why is it important for marketers to understand consumer behavior?

Marketers can develop better strategies, identify target consumers, and properly position their products in consumers' minds, leading to stronger relationships and increased sales.

How can nonprofit organizations benefit from studying consumer behavior?

Nonprofits can understand consumer motivations for donating and develop effective strategies to increase donations, such as focusing on emotional appeals by highlighting time rather than money.