Introduction to consumer behavior.
Chapter 1.Buying, Having, and Being: An Introduction to Consumer
Behavior
CHAPTER OBJECTIVES
1-1 Summarise how the consumption of goods, services, experiences, and ideas is a major part of
our lives.
1-2 Identify and discuss the technological and sociocultural trends that require constant monitoring
to understand consumer behaviour.
1-3 Explain how consumption both contributes to the world’s problems and provides solutions.
1-4 Describe the many disciplines and perspectives that inform our understanding of consumer
behaviour.
Consumer Behaviour: People in the Marketplace
What Is Consumer Behaviour?
It is the study of the processes involved when individuals or groups select, purchase,
use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
and to define and express their identities.
CB is an ongoing process
3 stages in a consumption process: prepurchase, purchase and post-purchase
Consumption Is a Process
Consumer behaviour is dynamic: It is an ongoing process that extends much beyond
the moment a consumer hands over money in turn receives some good.
Consumption - all facets of the consumer behaviour process (how we observe and
make sense of the world around us, how we choose and purchase things, and how we
communicate our identity and sense of self in society.
Figure 1.1 illustrates all the facets (стороны) of consumer behaviour that we will
address in this book.
,What Does It Mean to Consume?
People buy products not for what they do, but for what they mean. we choose the brand that has an
image (or even a personality!)
Our choices help us define our identity. Identity - multilayered concept that involves
our personal self and our social self. Personal self - how we see ourselves. Social self
- how we fit into groups or society.
Popculture = music, movies, sports, books, celebs, and other forms of entertainment
that the mass market produces and consumes.
Popculture - both a product of marketers and an inspiration to them.
How we divide the market?
Based on different dimensions like
• Demographics = observable aspect of population e.g. age, income, family
structure, race, where they live
• Lifestyles (hobbies, preferences for certain products, challenges)
• Behavior (buying habits)
Our relationships with a product
• Self-concept attachment: the product helps to establish your identity
• Nostalgic attachment: the product serves as a link to a past self
• Interdependence: the product is part of your daily routine
• Love: the product elicits emotional bonds of warmth, passion, or other strong
emotions
A Branded World
,What Brands Do: Brands represent more than products; they reflect values, ideas, and
culture, helping people express who they are.
Example: Nike isn’t just about shoes—it symbolises sports, style, and social causes.
Impact of Branding: Brands shape trends, influence preferences, and even affect how
people see beauty and culture.
How They Attract Us: Logos, packaging, ads, and sensory details (like texture and
smell) play a role in how we choose products.
Global Influence: In a connected world, brands help people explore and connect with
different cultures.
Understanding Consumers Is Good Business
Why It Matters:
Companies exist to satisfy consumer needs. To do that effectively, they must
understand their customers and how their needs evolve.
Adapt or Fall Behind:
Success requires constant innovation; even top brands can’t rely on past
achievements.
Example - BMW:
• BMW recognises trends like eco-friendly products, urban congestion, and rental-based
consumption.
• The company invested heavily in electric cars with sustainable materials and
lightweight designs.
• BMW also offers car-sharing services to meet changing customer demands.
Takeaway:
Staying ahead means anticipating future needs and adapting products and services to
meet them.
Consumers, Society, and Technology: A Moving
Target
I. Modern Connectivity:
- We live in a world of instant access, rapid travel, and diverse urban
environments.
II. Social Media Impact:
, - Social media - online means of communication, conveyance, collaboration, and
cultivation among interconnected and interdependent networks of people,
communities, and organisations enhanced by technological capabilities and
mobility
III. Technology Evolution:
- Internet of Things (IoT): Devices like smart homes and self-driving cars connect
and automate daily life. growing network of interconnected devices embedded in
objects that speak to one another.
- Artificial Intelligence (AI): Tools like Siri and Alexa enhance services and
personalise marketing.
IV. “Big Data” and Data Analytics
- Companies like Walmart use massive data to predict behaviour, make quick
decisions, and target customers effectively. Big Data is reshaping marketing and
consumer understanding.
- In addition to the huge volume of information marketers now must play with, its
velocity (speed) also enables companies to make decisions in real time that used
to take months or years.
V. The Metaverse and Virtual Economy:
- Virtual world where people can interact through avatars, buy digital goods, and
even create their own virtual spaces.
- Virtual Economy: The Metaverse operates on a virtual economy, including things
like cryptocurrency and NFTs (unique digital items).
VI. Globalisation and Consumer Behavior
VII. Global Mobility
- People are traveling more than ever before, and many are living in different
countries, increasing global interactions. This has created two opposing forces in
consumer behaviour:
- Desire to Belong: Consumers often prefer products and brands that remind them of
their home culture.
- Desire for Distinctiveness: On the other hand, many seek brands and products that
allow them to stand out or connect with other cultures.
VIII. Global Brands
Chapter 1.Buying, Having, and Being: An Introduction to Consumer
Behavior
CHAPTER OBJECTIVES
1-1 Summarise how the consumption of goods, services, experiences, and ideas is a major part of
our lives.
1-2 Identify and discuss the technological and sociocultural trends that require constant monitoring
to understand consumer behaviour.
1-3 Explain how consumption both contributes to the world’s problems and provides solutions.
1-4 Describe the many disciplines and perspectives that inform our understanding of consumer
behaviour.
Consumer Behaviour: People in the Marketplace
What Is Consumer Behaviour?
It is the study of the processes involved when individuals or groups select, purchase,
use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
and to define and express their identities.
CB is an ongoing process
3 stages in a consumption process: prepurchase, purchase and post-purchase
Consumption Is a Process
Consumer behaviour is dynamic: It is an ongoing process that extends much beyond
the moment a consumer hands over money in turn receives some good.
Consumption - all facets of the consumer behaviour process (how we observe and
make sense of the world around us, how we choose and purchase things, and how we
communicate our identity and sense of self in society.
Figure 1.1 illustrates all the facets (стороны) of consumer behaviour that we will
address in this book.
,What Does It Mean to Consume?
People buy products not for what they do, but for what they mean. we choose the brand that has an
image (or even a personality!)
Our choices help us define our identity. Identity - multilayered concept that involves
our personal self and our social self. Personal self - how we see ourselves. Social self
- how we fit into groups or society.
Popculture = music, movies, sports, books, celebs, and other forms of entertainment
that the mass market produces and consumes.
Popculture - both a product of marketers and an inspiration to them.
How we divide the market?
Based on different dimensions like
• Demographics = observable aspect of population e.g. age, income, family
structure, race, where they live
• Lifestyles (hobbies, preferences for certain products, challenges)
• Behavior (buying habits)
Our relationships with a product
• Self-concept attachment: the product helps to establish your identity
• Nostalgic attachment: the product serves as a link to a past self
• Interdependence: the product is part of your daily routine
• Love: the product elicits emotional bonds of warmth, passion, or other strong
emotions
A Branded World
,What Brands Do: Brands represent more than products; they reflect values, ideas, and
culture, helping people express who they are.
Example: Nike isn’t just about shoes—it symbolises sports, style, and social causes.
Impact of Branding: Brands shape trends, influence preferences, and even affect how
people see beauty and culture.
How They Attract Us: Logos, packaging, ads, and sensory details (like texture and
smell) play a role in how we choose products.
Global Influence: In a connected world, brands help people explore and connect with
different cultures.
Understanding Consumers Is Good Business
Why It Matters:
Companies exist to satisfy consumer needs. To do that effectively, they must
understand their customers and how their needs evolve.
Adapt or Fall Behind:
Success requires constant innovation; even top brands can’t rely on past
achievements.
Example - BMW:
• BMW recognises trends like eco-friendly products, urban congestion, and rental-based
consumption.
• The company invested heavily in electric cars with sustainable materials and
lightweight designs.
• BMW also offers car-sharing services to meet changing customer demands.
Takeaway:
Staying ahead means anticipating future needs and adapting products and services to
meet them.
Consumers, Society, and Technology: A Moving
Target
I. Modern Connectivity:
- We live in a world of instant access, rapid travel, and diverse urban
environments.
II. Social Media Impact:
, - Social media - online means of communication, conveyance, collaboration, and
cultivation among interconnected and interdependent networks of people,
communities, and organisations enhanced by technological capabilities and
mobility
III. Technology Evolution:
- Internet of Things (IoT): Devices like smart homes and self-driving cars connect
and automate daily life. growing network of interconnected devices embedded in
objects that speak to one another.
- Artificial Intelligence (AI): Tools like Siri and Alexa enhance services and
personalise marketing.
IV. “Big Data” and Data Analytics
- Companies like Walmart use massive data to predict behaviour, make quick
decisions, and target customers effectively. Big Data is reshaping marketing and
consumer understanding.
- In addition to the huge volume of information marketers now must play with, its
velocity (speed) also enables companies to make decisions in real time that used
to take months or years.
V. The Metaverse and Virtual Economy:
- Virtual world where people can interact through avatars, buy digital goods, and
even create their own virtual spaces.
- Virtual Economy: The Metaverse operates on a virtual economy, including things
like cryptocurrency and NFTs (unique digital items).
VI. Globalisation and Consumer Behavior
VII. Global Mobility
- People are traveling more than ever before, and many are living in different
countries, increasing global interactions. This has created two opposing forces in
consumer behaviour:
- Desire to Belong: Consumers often prefer products and brands that remind them of
their home culture.
- Desire for Distinctiveness: On the other hand, many seek brands and products that
allow them to stand out or connect with other cultures.
VIII. Global Brands
