CHAPTER 1 - What is Consumer Behavior

Summary

This video explores the concept of consumer behavior, highlighting the processes individuals and organizations use to select, secure, and dispose of products and services. It delves into factors influencing consumer purchases, such as economic conditions, social influences, and personal preferences. The video also examines the benefits and costs of consumption, the exchange process, and the disciplines contributing to consumer behavior, including economics, psychology, sociology, marketing, and anthropology. Ultimately, understanding consumer behavior helps businesses create products and services that better meet customer needs and drive satisfaction.

Takeaways

• 😀 Consumer behavior is the study of individuals, groups, and organizations, and how they select, use, and dispose of products or services to satisfy their needs and wants.
• 😀 Consumer behavior helps to explain why consumers make specific purchases and the factors influencing those decisions, such as economic conditions, social influence, and seasons.
• 😀 'Want' refers to desires for non-essential products, while 'Need' refers to things that are essential for survival or functionality.
• 😀 The concept of 'benefits' refers to the positive outcomes of consumption (e.g., self-esteem boost from buying a luxury product).
• 😀 'Cost' refers to the negative outcomes of consumption, such as high maintenance or associated expenses.
• 😀 The exchange process involves individuals or organizations offering goods, services, or money in exchange for satisfying needs or wants.
• 😀 Consumer behavior is an applied social science drawing from economics, psychology, sociology, and anthropology to understand human decision-making in the marketplace.
• 😀 Economics is concerned with resource allocation and decision-making under scarcity, and it influences consumer behavior, especially during economic downturns.
• 😀 Psychology, specifically social psychology, studies how emotions and social influences affect consumer decisions, such as the use of emotional buzzwords in marketing.
• 😀 Marketing is the art of creating and delivering value to customers, focusing on satisfying their needs and wants profitably, through product creation, pricing, promotion, and distribution.

Q & A

What is consumer behavior?

Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and wants.

Why do consumer buying tendencies increase during certain periods, like Christmas or Valentine's week?

Consumer buying tendencies increase during times like Christmas and Valentine's week due to seasonal influences, cultural practices, and emotional factors, such as the desire to give gifts and celebrate events.

What is the difference between 'wants' and 'needs' in consumer behavior?

'Wants' are desires for products or services that are not essential but are wished for, while 'needs' refer to basic requirements necessary for survival or functioning.

How do benefits and costs relate to consumer behavior?

Benefits in consumer behavior refer to the positive results or value a product provides to the consumer, while costs refer to the negative consequences, such as maintenance or high prices, that might discourage purchase.

What is the concept of 'exchange' in consumer behavior?

An exchange is the process where individuals or organizations satisfy their needs or wants by offering money, goods, or services in return for something of value. This exchange forms the basis of marketing and consumer transactions.

What are the main disciplines contributing to consumer behavior?

Consumer behavior is influenced by several disciplines including economics, psychology, sociology, anthropology, and marketing science, each offering insights into decision-making, social influences, and market dynamics.

How does psychology influence consumer behavior?

Psychology influences consumer behavior by examining how people think, feel, and behave in response to different stimuli, including emotional and cognitive responses to marketing, social influence, and purchasing decisions.

What role does social influence play in consumer behavior?

Social influence affects consumer behavior by shaping how people behave in the presence of others, such as following trends or buying products endorsed by celebrities, reinforcing the social status associated with certain products.

How does anthropology contribute to understanding consumer behavior?

Anthropology studies how culture, society, and human relationships impact consumer choices, including how cultural beliefs and values influence the products people buy and the ways they interact with goods and services.

What is the difference between consumer orientation and market orientation?

Consumer orientation focuses on meeting and exceeding customer satisfaction by monitoring standards and addressing customer needs, while market orientation involves developing products based on the wants and needs of the market rather than following industry trends.