BUS630: Consumer Behavior

1a. Explain how consumer behavior is a process

• What do we understand about the consumer who might purchase a product?
• Who is not the ideal consumer for a product?
• Why does a consumer buy one product and not another?
• Is there anything that might increase the likelihood of a consumer buying a product?

Consumer behavior includes the actions and decisions a consumer makes during the buying process. Consumer behavior includes many aspects that need to be understood to properly market to that population. For example, the more the market population is understood, the more tailored the marketing can be. Not only do you need to understand the target market, but also why someone might not want the product. This information will allow a better understanding of what should not be included in the marketing.

Buying behavior includes decision processes a buyer goes through during and after a purchase. It is also important to understand the consumer decision process and how they narrow down their decision to purchase a certain product. Issues to consider might be what might make a customer choose one product over another and what might increase the chances of the consumer choosing the product. It is also important to consider customer loyalty and keep the level of customer satisfaction high. 

Information processing is another aspect of consumer behavior and includes the information consumers gather during the buying process; this may include reading product reviews, watching videos about the product, or reading information on the brand website.

When it comes to marketing, understanding who the ideal consumer is not is almost as important as understanding who the ideal customer is. As a marketer, understanding both is important to fully understand who you are trying to sell to. It is important to understand that consumer behavior is not just one thing but several things that make up that process.

To review, see The Black Box of Consumer Behavior.

1b. Assess how consumers use products to help them define their identities in various settings

• How do consumers visualize themselves using a product during the purchase-gathering phase?
• How does a consumer think about how a product might enhance or change their life?
• Would a consumer buy a product for the life that they want vs. the life they have?
• Can anything be done to increase the likelihood of helping consumers better understand their lives after buying a product?

How consumers feel about themselves determines their needs, and then these desires reflect their purchasing decisions. Consumers believe buying certain products will help them better define themselves and make their lives easier. By using products to better develop their identity, consumers are attempting to determine who they want to be.

For example, many consumers decide they must have the latest cell phone model available and believe that sets them apart from their less tech-savvy friends. They may see themselves as ahead of others when it comes to technology and using new products. Marketing companies may target these early adopters because these are the individuals who may influence others to purchase the same product. It is this identity the consumer decides they want to emulate, and as a result, it may allow them to be very popular with friends and acquaintances. In some sense, a marketer must assist the consumer in understanding their identity, and we see this in commercials and advertising today. By completely understanding how the consumer might identify with a product, the marketing may be more focused.

A marketer will go through the marketing process when developing a marketing plan for the consumer and the buying process. The marketing process includes collecting data about the market, analysis, planning, and implementation. 

To review, see Consumer Behavior in the Marketing Process.

1c. Identify why marketers need to understand the wants, needs, and desires of different consumer segments

• How does understanding consumer wants and needs guide marketing?
• Why is it important to understand consumer desire when developing a marketing plan?
• Without understanding consumer wants and needs, how would you develop an understanding of purchasing?

Understanding self-concept (which may include self-image, self-complexity, and self-esteem) as they relate to consumerism may help marketers better determine how to market a product. Understanding how wants and needs are part of consumer identity may better guide a marketer to focus on using those wants, needs, and desires when developing marketing content. Consumer needs include the motivations that make someone want to buy a product.

Consumers may identify themselves with a product and do not understand themselves without it; that product is a part of who they are. A cell phone is a good example of this because many people keep it with them during the day, check it dozens of times throughout the day, and without it, feel lost and unconnected to the world around them. At this level, a cell phone has become part of a consumer's identity. 

By understanding wants, needs, and desires, a marketer can better connect with the consumer and target advertising directly to those people who have an association with the product. Good marketing may sometimes guide the consumer to understand what they need vs. what they want. Then, at that point, the consumer can decide if they purchase a product that is both a need and a desire.

To review, see Self and Identity.

1d. Explain why the design of a product is a key driver of its success or failure

• How might a good product design connect with a consumer?
• What is the difference between a good and bad product design?
• Can a product fail because of design? If so, how?
• Can you think of a product that was successful in product design? Why or why not?

To better understand the perception of the product or brand, a consumer will undergo the perceptual process, which includes research, organization, and interpreting information. These stages will help them to better understand the buying process to ensure the product matches their needs. 

The design of a product may attract a consumer to buy the product. Sometimes, the more unusual a product, the more likely a consumer may buy it. Color or style may also attract a buyer. Product design begins with the end user in mind. How they might use the product, what might attract the consumer, and what design might look best are all considerations for good product design.

Product design can also be unsuccessful, and as a result, consumers may avoid purchasing a product. One example of this might be Google Glass. In theory, the product seemed as though it would be useful, but too many variables kept consumers from buying the product. These variables included the high price tag, being banned in certain areas, and the somewhat unattractive style that kept consumers from purchasing the high-tech glasses.

We know good product design when we see it. We may like the product immediately and feel as though we need that product. Product design failures work the same way; we immediately know we do not connect with a product, and our faces may even reflect our feelings. This occurs when the product design fails. Understanding good and bad design is important as a key consumer driver because of its effect on customers and sales.

To review, see The Perceptual Process.

Unit 1 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• buying behavior
• consumer behavior
• consumer identity
• good product design
• information processing
• marketing process
• perceptual process
• product design failures
• self-concept