1. Define consumer behavior.
Consumer behavior – activities people undertake when obtaining, consuming, and disposing of products and services.
2. Why is consumption a key to understanding why consumers buy products
Consuming means how, where, when, and under what circumstances consumers use products. For example, issues relating to consumption might include decisions about whether consumers use products at home or at the office. Researchers have focused on consumption analysis, which refers why and how people use products in addition to why and how they buy. Consumption analysis is a broader conceptual framework than buyer behavior because it includes ...view middle of the document...
Did you donate blood this year? Do you give time or money to help people with personal, medical, or economic problems, or do you leave those problems for other people to solve?
9. Did you vote in the last election? For whom and why?
10. Compared to other people earning the same income as you, do you save more or less money than they do? Do you make financial decisions based on what pleases you now or what will provide the biggest payoff in the future?
4. List and describe 5 main reasons for studying consumer behavior
* Consumer behavior determines the economic health of the nation.
* Consumer behavior determines the success of marketing programs. People who study consumer behavior generally desire to influence or change the behavior of consumer in some way. Some marketers, such as public health advocates, use demarketing to influence people to stop smoking or abstain for illegal drugs. There are two main principles: “the consumer is the king”(CB analysis helps firms know how to please the king and directly impact bottom line profits. CB studies consumers as sources of influence on organizations. Today the most successful organizations are described as customer-centric, which means that they attempt to focus everyone in the organizations on satisfying customers.) and “only customer can fire us all” (goal of any successful organization is keeping customers so satisfied that they will not only return but also will recruit friends to be customers. To accomplish this goal firms must truly understand customers and the reasons for their behavior)
* CB determines the economic health of everyone. Your decisions as a consumer determine your own economic health, which may be the most important reason to study CB. Anyone can benefit from money saving strategies and tips on how to be “better shoppers”, but educational programs should be based on research into motivation and behavior if they are to e relevant in the real world of consumer life. Consumer economists, home economists, and specialists in consumer affairs are among the leading researchers of how and why people consume products.
Public policy leaders and social commentators study consumer behavior to alleviate problems such as overconsumption and underconsumption. Overeating, overspending, drug and alcohol abuse, and excessive gambling are behavior that individuals and social agencies wish to minimize, whereas exercising, reading, and eating nutritional foods are generally encouraged. Understanding these issues from a consumer perspective helps policy makers, consumer interest groups, and businesses develop the best methods to reach consumers with information and assistance.
* CB helps formulate public policy. Organizations and individuals interested in public policy must understand the needs of consumer when formulating policies relating to economics, social welfare, family planning, or...