CHAPTER 1
WHAT IS CB, AND WHY SHOULD I CARE?
WHAT DO YOU THINK POLLING QUESTION
In any business the customer is truly the most important person.
Strongly disagree 1 2 3 4 5 6 7 Strongly agree
Have students access www.cengagebrain.com to answer the polling questions for each chapter of
CB. Ask them to take the online poll to see how their answers compare with other students taking
a consumer behavior course across the country. Then turn to the last page of the chapter to find
the “What Others Have Thought” box feature. This graph is a snapshot of how other consumer
behavior students have answered this polling question so far.
LEARNING OUTCOMES
After studying this chapter, the student should be able to:
1-1 Understand the meaning of consumption and consumer behavior.
1-2 Describe how competitive marketing environments lead to better outcomes for consumers.
1-3 Explain the role of consumer behavior in business and society.
1-4 Be familiar with the basic approaches to studying consumer behavior.
1-5 Appreciate how dynamic the field of consumer behavior continues to be.
SUGGESTED LECTURE OPENER
New York Mayor Michael Bloomberg’s proposed ban on the sale of sodas and other such
beverages larger than 16 ounces at restaurants, movie theatres and street carts elicited mixed
reactions from the public. The proposed ban was the consequence of research studies that
indicated that the consumption of beverages had increased among children and adults, and this
was a contributing factor to the increasing levels of obesity among Americans.
While the beverage industry has made efforts to reduce calories in products, their best-sellers
have always been the high-calorie drinks. This indicates that consumers prefer these beverages
even though they are aware of their high calorie content. The proposed ban is an attempt to
,modify consumer behavior and preferences through legislation, but soda companies are fighting
back.
Source: Leon Stafford, “Soda makers in a new kind of cola war,” Atlanta Business News, June 3,
2012, http://www.ajc.com/business/soda-makers-in-a-1451241.html
LECTURE OUTLINE WITH POWERPOINT® SLIDES
Consumers make decisions with the intention to improve their lives or do something of value.
The process of making a purchase triggers a chain reaction of value creating actions. Marketers
need to understand consumers to be able to design products with greater value potential, and to
enhance the well-being of stakeholders. An understanding of consumer behavior can mean better
business for companies, better public policy for governments, and a better life for individuals and
households.
LO: 1-1. Understand the meaning of consumption and consumer behavior.
[Instructor PPT Slides 3, 4]
Consumption and Consumer Behavior
Consumer behavior can be looked from two unique perspectives:
Human thought and action involved in consumption, and
A field of study that develops an accumulated body of knowledge.
[Instructor PPT Slide 5]
Consumer Behavior as Human Behavior
Consumer behavior is the set of value seeking activities that takes place as people go about
addressing realized needs.
[Instructor PPT Slide 6]
The Basic Consumption Process
,The basic consumption process is illustrated in Exhibit 1.1. In this chapter, the basic CB process
is explained briefly in the context of a new tablet computer purchase.
The consumer realizes a need for better communication in terms of using the Internet to
access social media and other websites.
He addresses his need through wants which indicates his enhanced desire for a
communication device. He visits an Apple store and chooses the Apple iPad4.
An exchange occurs when money is exchanged for the iPad.
The costs involve the actual price of the product as well as the time and physical effort to
visit the store.
The benefits are the positive results of the purchase, such as better work performance, easier
Facebook access and so on.
The reaction follows the purchase when the consumer evaluates the effectiveness of the iPad.
Ultimately, the process results in a perception of value.
Q: Ask students to explain the consumer behavior process with an example of a
product that they recently purchased.
A: Answers will vary but should include the various steps of the consumer
behavior process, beginning with the student’s realization of the need for the
product till the perception of value gained from the product.
[Instructor PPT Slide 7]
Consumption
Consumption represents the process by which goods, services, or ideas are used and transformed
into value. It produces value through the interactions between the marketer and the consumer.
[Instructor PPT Slide 8]
Consumer Behavior as a Field of Study
Consumer behavior as a field of study is a relatively young field of study (initiated in the 1960s)
that represents how consumers go about the consumption process. It is the science of studying
how consumers seek value in an effort to address real needs.
Consumer behavior has roots in other disciplines like economics, psychology, marketing and
, anthropology. Exhibit 1.2 represents the relations between CB and other disciplines.
Economics and Consumer Behavior
Economics is the study of production and consumption. Marketing has its origins in economics
and economics involves consumption, therefore consumer behavior and economics have a lot in
common.
Psychology and Social Psychology
Psychology is the study of human reactions to the environment. Among the various disciplines of
psychology, social psychology and cognitive psychology are particularly relevant to consumer
behavior.
Social psychology focuses on the thoughts, feelings, and behaviors associated with group
behavior.
Cognitive psychology deals with the intricacies of mental reactions involved in information
processing.
Marketing
Marketing involves various value-producing seller activities that facilitate exchanges
between buyers and sellers. Exchange is involved in marketing and is central to consumer
behavior.
[Instructor PPT Slide 9]
Consumer Behavior and Other Disciplines
Sociology focuses on the study of groups of people within a society. It is important in
consumer behavior because it takes place within group settings.
Anthropology is important in consumer behavior as it allows researchers to interpret the
relationships between consumers and the things they purchase, the products they own,
and the activities in which they participate.
Neuroscience deals with the study of the central nervous system including the brain. It is
important in consumer behavior as it shows how the consumer’s brain functions during
the consumption process.
LO: 1-2. Describe how competitive marketing environments lead to better outcomes
for consumers.
WHAT IS CB, AND WHY SHOULD I CARE?
WHAT DO YOU THINK POLLING QUESTION
In any business the customer is truly the most important person.
Strongly disagree 1 2 3 4 5 6 7 Strongly agree
Have students access www.cengagebrain.com to answer the polling questions for each chapter of
CB. Ask them to take the online poll to see how their answers compare with other students taking
a consumer behavior course across the country. Then turn to the last page of the chapter to find
the “What Others Have Thought” box feature. This graph is a snapshot of how other consumer
behavior students have answered this polling question so far.
LEARNING OUTCOMES
After studying this chapter, the student should be able to:
1-1 Understand the meaning of consumption and consumer behavior.
1-2 Describe how competitive marketing environments lead to better outcomes for consumers.
1-3 Explain the role of consumer behavior in business and society.
1-4 Be familiar with the basic approaches to studying consumer behavior.
1-5 Appreciate how dynamic the field of consumer behavior continues to be.
SUGGESTED LECTURE OPENER
New York Mayor Michael Bloomberg’s proposed ban on the sale of sodas and other such
beverages larger than 16 ounces at restaurants, movie theatres and street carts elicited mixed
reactions from the public. The proposed ban was the consequence of research studies that
indicated that the consumption of beverages had increased among children and adults, and this
was a contributing factor to the increasing levels of obesity among Americans.
While the beverage industry has made efforts to reduce calories in products, their best-sellers
have always been the high-calorie drinks. This indicates that consumers prefer these beverages
even though they are aware of their high calorie content. The proposed ban is an attempt to
,modify consumer behavior and preferences through legislation, but soda companies are fighting
back.
Source: Leon Stafford, “Soda makers in a new kind of cola war,” Atlanta Business News, June 3,
2012, http://www.ajc.com/business/soda-makers-in-a-1451241.html
LECTURE OUTLINE WITH POWERPOINT® SLIDES
Consumers make decisions with the intention to improve their lives or do something of value.
The process of making a purchase triggers a chain reaction of value creating actions. Marketers
need to understand consumers to be able to design products with greater value potential, and to
enhance the well-being of stakeholders. An understanding of consumer behavior can mean better
business for companies, better public policy for governments, and a better life for individuals and
households.
LO: 1-1. Understand the meaning of consumption and consumer behavior.
[Instructor PPT Slides 3, 4]
Consumption and Consumer Behavior
Consumer behavior can be looked from two unique perspectives:
Human thought and action involved in consumption, and
A field of study that develops an accumulated body of knowledge.
[Instructor PPT Slide 5]
Consumer Behavior as Human Behavior
Consumer behavior is the set of value seeking activities that takes place as people go about
addressing realized needs.
[Instructor PPT Slide 6]
The Basic Consumption Process
,The basic consumption process is illustrated in Exhibit 1.1. In this chapter, the basic CB process
is explained briefly in the context of a new tablet computer purchase.
The consumer realizes a need for better communication in terms of using the Internet to
access social media and other websites.
He addresses his need through wants which indicates his enhanced desire for a
communication device. He visits an Apple store and chooses the Apple iPad4.
An exchange occurs when money is exchanged for the iPad.
The costs involve the actual price of the product as well as the time and physical effort to
visit the store.
The benefits are the positive results of the purchase, such as better work performance, easier
Facebook access and so on.
The reaction follows the purchase when the consumer evaluates the effectiveness of the iPad.
Ultimately, the process results in a perception of value.
Q: Ask students to explain the consumer behavior process with an example of a
product that they recently purchased.
A: Answers will vary but should include the various steps of the consumer
behavior process, beginning with the student’s realization of the need for the
product till the perception of value gained from the product.
[Instructor PPT Slide 7]
Consumption
Consumption represents the process by which goods, services, or ideas are used and transformed
into value. It produces value through the interactions between the marketer and the consumer.
[Instructor PPT Slide 8]
Consumer Behavior as a Field of Study
Consumer behavior as a field of study is a relatively young field of study (initiated in the 1960s)
that represents how consumers go about the consumption process. It is the science of studying
how consumers seek value in an effort to address real needs.
Consumer behavior has roots in other disciplines like economics, psychology, marketing and
, anthropology. Exhibit 1.2 represents the relations between CB and other disciplines.
Economics and Consumer Behavior
Economics is the study of production and consumption. Marketing has its origins in economics
and economics involves consumption, therefore consumer behavior and economics have a lot in
common.
Psychology and Social Psychology
Psychology is the study of human reactions to the environment. Among the various disciplines of
psychology, social psychology and cognitive psychology are particularly relevant to consumer
behavior.
Social psychology focuses on the thoughts, feelings, and behaviors associated with group
behavior.
Cognitive psychology deals with the intricacies of mental reactions involved in information
processing.
Marketing
Marketing involves various value-producing seller activities that facilitate exchanges
between buyers and sellers. Exchange is involved in marketing and is central to consumer
behavior.
[Instructor PPT Slide 9]
Consumer Behavior and Other Disciplines
Sociology focuses on the study of groups of people within a society. It is important in
consumer behavior because it takes place within group settings.
Anthropology is important in consumer behavior as it allows researchers to interpret the
relationships between consumers and the things they purchase, the products they own,
and the activities in which they participate.
Neuroscience deals with the study of the central nervous system including the brain. It is
important in consumer behavior as it shows how the consumer’s brain functions during
the consumption process.
LO: 1-2. Describe how competitive marketing environments lead to better outcomes
for consumers.
