RMG 302 Chapter 1: Week 1

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Published on 23 Jan 2019
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RMG302 CHAPTER 1
CONSUMPTION AND CONSUMER BEHAVIOUR
Consumer behaviour (CB) defined from 2 different perspectives
o Refers to both
Human though and action
A field of study (human inquiry) that is developing an accumulated body of knowledge
Consider the purchase of a new phone
o CB can be thought of as
Actions
Reactions
Consequences
All these take place as the consumer goes through a decision-making process
reach decision puts product to use
o Consider the field of study surrounding CB
Body of knowledge researchers accumulate as they attempt to explain these actions,
reactions and consequences
Consumer behaviour is the set of value seeking activities that take place as people go about addressing
needs
o When a consumer comes to realize that something is needed a chain reaction begins as the
consumer sets out to find desirable ways to fill this need
Involves
Thoughts
Feelings
Behaviour
THE BASIC CB PROCESS
o Consumer realizes a need
o Realization may be motivated by a desire
A want simply a specific desire that spells out a way a consumer can go about
addressing a recognized need
o Consumer researchers (i.e. visiting store, or looking online)
o Consumer participates in an exchange in which he or she gives up economic resources in return
for receiving a product
An exchange the acting out of a decision to give up something in return for
something of greater value
o Consumer uses the product/service and experiences all the associated benefits and costs
Costs the negative results of consumption
Involve more than just price (e.g. time, effort)
Benefits positive results of consumption
Multifaceted e.g. better job performance or more entertainment
o Over time the consumer evaluates the costs and benefits and reacts to the purchase in some
way
These reactions involve thoughts/feelings
What happens in this process THE PERCEPTION OF VALUE
CONSUMPTION
Consumption represents the process by which goods, services or ideas are used and transformed
into value
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If a product performs well a great deal of value may result
If the consumer is unhappy with the product very little value or even a negative amount of value may
result
o May affect consumer well-being quality of life
Consumer Behaviour as a Field of Study
Consumer behaviour as a field of study represents the study of consumers as they go about the
consumption process
CB in this sense is the science of studying how consumers seek value in an effort to address real needs
CB as a field of study is a very young field
o Much uncertainty remains
o Researchers have less time to develop their body of knowledge
ECONOMICS AND CONSUMER BEHAVIOUR
Economics the study of production and consumption
o Consumer behaviour and economics have much in common
In general economists study consumer behaviour from a macro perspective
o CB researchers tend to focus on a more micro level of behaviour
Consumer research often employs experiments or interviews with responses from
individual consumers
Behavioural economics uses traditional econometric models and techniques in combination with
psychological theory and methods to better understand the choices of consumers, managers, citizens
and other individuals
o Behavioural economists study what happens in markets when the decision makers are
influenced by psychological biases and cognitive limitations
Result
Economics is a close cousin of consumer research and there is great deal the 2
can learn from each other
MARKETING
Marketing involves the multitude of value producing seller activities that facilitate exchanges between
buyers and sellers
o Consumer behaviour + marketing = closely related
o In some ways consumer behaviour involves “inverse” marketing as consumers operate at the
other end of the exchange
Marketing actions are targeted at and affect consumes, while consumer actions affect
marketers
CONSUMER BEHAVIOUR AND OTHER DISCIPLINES
Today consumer behaviour and marketing remain closely tied
o CB and marketing research overlap with each other
CB research is based largely on psychology and to some extent psychology draws from consumer
behaviour research
Other disciplines share things in common with CB
o Sociology focuses on the study of groups of people within a society
o Anthropology contributed to CB research by allowing researchers and the things they
purchase, the products they own and the activities in which they participate
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