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.c om Chapter ng th an co ng Consumers Rule cu u du o CONSUMER BEHAVIOR, 8e Michael Solomon CuuDuongThanCong.com https://fb.com/tailieudientucntt Chapter Objectives c om When you finish this chapter you should understand why: ng • Consumer behavior is a process • Consumers use products to help them define their identities co in different settings th an • Marketers need to understand the wants and needs of ng different consumer segments cu u du o • The Web is changing consumer behavior • Consumer behavior relates to other issues in our lives Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- https://fb.com/tailieudientucntt Chapter Objectives (cont.) c om • Consumer activities can be harmful to individuals and to society an co ng • Many different types of specialists study consumer behavior • There are two major perspectives that seek to understand cu u du o ng th and study consumer behavior Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- https://fb.com/tailieudientucntt Aspects of Consumer Behavior c om Gail, business student and consumer • Segmented by marketers by an co ng demographics • Market segmentation: targeting a brand to specific groups of consumers th • Influenced by peer groups (such as ng sorority sisters) cu u du o • Exposed to competing brands seeking her loyalty • Evaluates products by the appearance, taste, texture, smell Hoang Duc Binh, MBA - 2008 1- CuuDuongThanCong.com https://fb.com/tailieudientucntt ng co cu u du o ng th an Consumer behavior: 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 .c om What is Consumer Behavior? Hoang Duc Binh, MBA - 2008 1- CuuDuongThanCong.com https://fb.com/tailieudientucntt cu u du o ng th an co ng c om Consumer Behavior is a “Process” Hoang Duc Binh, MBA - 2008 1- Figure 1.1 CuuDuongThanCong.com https://fb.com/tailieudientucntt ng co an Consumer: a person who identifies a need or desire, makes a purchase, and then disposes of the product .c om Actors in Consumer Behavior th • Purchaser versus user versus ng influencer du o • Organization/group as cu u consumer Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- https://fb.com/tailieudientucntt Consumers’ Impact on Marketing c om Understanding consumer behavior is good business • Understanding people/organizations to satisfy consumers’ co ng needs cu u du o ng th an • Knowledge and data about customers: • Help to define the market • Identify threats/opportunities to a brand Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- https://fb.com/tailieudientucntt Segmenting Consumers co ng c om • Market segmentation is even more important today • Promotion budgets used toward more specialized media • McDonalds uses ethnic programming, women’s blogs, in- an store videos for young men du o cu u customers ng th • Marketers build brand loyalty by going after heavy users • Taco Bell developed higher-calorie Chalupa for its loyal Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- https://fb.com/tailieudientucntt Segmenting Consumers: Demographics ng an co Age ng du o Family structure th Gender Social class and income u Race and ethnicity Geography cu • • • • • • c om Demographics: statistics that measure observable aspects of a population, such as: Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 10 https://fb.com/tailieudientucntt Discussion co ng c om It seems that everywhere you turn, marketers are trying to capture your attention Sports stadiums are named after corporate sponsors, and brands are advertised on everything from buses to t-shirts cu u du o ng th an • Do advertisers have the right to reach you all the time? • If yes, why? • If no, why? Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 19 https://fb.com/tailieudientucntt Marketing Ethics and Public Policy c om • Business ethics: rules of conduct that guide actions in the marketplace th an co ng • Cultural differences in ethics: • Codes of ethics less formal in Mexico • U.S Foreign Corrupt Practices Act prohibits use of bribery cu u • du o ng by U.S businesspeople—no matter where they’re doing business Bribery commonly practiced in other countries Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 20 https://fb.com/tailieudientucntt Do Marketers Create Artificial Needs? ng c om Objective of marketing: create awareness that needs exist, not to create needs co • Need: a basic versus society has taught us that the need can be satisfied cu u du o ng th an biological motive • Want: one way that Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 21 https://fb.com/tailieudientucntt Does advertising foster materialism? c om Are Advertising & Marketing Necessary? cu u du o ng th an co ng • Products are designed to meet existing needs; • Advertising only helps to communicate their availability Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 22 https://fb.com/tailieudientucntt .c om Do Marketers Promise Miracles? ng Does advertising promise “magical” products? an th cu u du o ng know enough about people to manipulate them co • Advertisers simply not Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 23 https://fb.com/tailieudientucntt Public Policy & Consumerism c om Concern for the welfare of consumers Federal Trade Commission th Securities and Exchange Commission cu u du o ng Food and Drug Administration an co ng Department of Agriculture Environmental Protection Agency Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 24 https://fb.com/tailieudientucntt Consumer Activism c om • American Legacy Foundation’s “The Truth “ • Alerts everyone to the lies and hidden practices of the co ng cigarette companies u du o ng th an • Save the Redwoods/Boycott the GAP • The Organic Consumers Association (OCA) cu Click for Adbusters.com  Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 25 https://fb.com/tailieudientucntt Discussion c om Advertisers are often blamed for promoting a materialistic society by making their products as desirable as possible cu u du o ng th an co ng • Do you agree with this? • If yes, is materialism a bad thing? • If no, what are your reasons? Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 26 https://fb.com/tailieudientucntt Interdisciplinary Research Issues in Consumer Behavior Product Role Experimental Psychology Perception, learning, and memory processes Clinical Psychology Psychological adjustment Microeconomics/Human Ecology Allocation of individual or family resources Social Psychology Behavior of individuals as members of social groups Sociology Social institutions and group relationships Macroeconomics Consumers’ relations with the marketplace ng co an th ng du o cu History Verbal and visual communication of meaning u Semiotics/Literary Criticism Demography c om Disciplinary Focus Cultural Anthropology Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com Measurable characteristics of a population Societal changes over time Society’s beliefs and practices Table 1.2 (abridged) 1- 27 https://fb.com/tailieudientucntt Consumerism & Consumer Research c om ng cu u du o ng th an Consumer Rights” (1962) • The right to safety • The right to be informed • The right to redress • The right to choice • Social Marketing • Green Marketing co • JFK’s “Declaration of Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 28 https://fb.com/tailieudientucntt .c om The Consumer “Dark Side” Addictive consumption du o Consumed consumers cu u Compulsive consumption ng th an co ng Consumer terrorism Illegal activities Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 29 https://fb.com/tailieudientucntt Act Year 1951 Fur Product Labeling Act 1968 1953 Flammable Fabrics Act 1969 1958 National Traffic and Safety Act 1958 Automobile Information Disclosure Act 1966 1966 1967 Act Truth-in-Lending Act Consumer Products Safety Act 1975 Consumer Goods Pricing Act Fair Packaging and Labeling Act 1975 Magnuson-Moss WarrantyImprovement Act Child Protection Act 1990 Nutrition Labeling and Education Act Federal Cigarette Labeling and Advertising Act 1998 Internet Tax Freedom Act u du o th 1972 ng National Environmental Policy Act cu an co ng Year c om Sample of Federal Legislation Intended to Enhance Consumers’ Welfare Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com Table 1.1 (abridged) 1- 30 https://fb.com/tailieudientucntt Pyramid of Consumer Behavior cu u du o co an th ng Consumer behavior involves many different disciplines ng c om MICRO CONSUMER BEHAVIOR (INDIVIDUAL FOCUS) MACRO CONSUMER BEHAVIOR (SOCIAL FOCUS) Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com Experimental Psych Clinical Psychology Develop Psychology Human Ecology Microeconomics Social Psychology Sociology Macroeconomics Semiotics/Literary Criticism Demography History Cultural Anthropology 1- 31 Figure 1.2 https://fb.com/tailieudientucntt .c om Positivist versus Interpretivist Approaches Assumptions Positivist Approach Interpretivist Approach Nature of reality Objective, tangible Single Goal Prediction Knowledge generated Time free Context-independent Time-bound Contest dependent View of causality Existence of real causes Multiple, simultaneous shaping events Research relationship Separation between researcher and subject ng co an th ng du o u cu Socially constructed Multiple Understanding Interactive, cooperative with researcher being part of phenomenon under study Hoang Duc Binh, MBA - 2008 1- 32 Table 1.3 CuuDuongThanCong.com https://fb.com/tailieudientucntt cu u du o ng th an co ng c om Wheel of Consumer Behavior Hoang Duc Binh, MBA - 2008 CuuDuongThanCong.com 1- 33 Figure 1.3 https://fb.com/tailieudientucntt ... CuuDuongThanCong.com 1- 29 https://fb.com/tailieudientucntt Act Year 19 51 Fur Product Labeling Act 19 68 19 53 Flammable Fabrics Act 19 69 19 58 National Traffic and Safety Act 19 58 Automobile Information... Automobile Information Disclosure Act 19 66 19 66 19 67 Act Truth-in-Lending Act Consumer Products Safety Act 19 75 Consumer Goods Pricing Act Fair Packaging and Labeling Act 19 75 Magnuson-Moss WarrantyImprovement... Binh, MBA - 2008 1- CuuDuongThanCong.com https://fb.com/tailieudientucntt cu u du o ng th an co ng c om Consumer Behavior is a “Process” Hoang Duc Binh, MBA - 2008 1- Figure 1. 1 CuuDuongThanCong.com

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