Consumer Behavior

CONSUMER BEHAVIOR:
THE PSYCHOLOGY OF MARKETING
Introduction
The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how
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The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products, and retailers);
The psychology of how the consumer is influencedby his or her
environment (e.g., culture, family, signs, media);
The behavior of consumers while shopping or making other marketing
decisions;
Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome;
How consumer motivation and decision strategies differ between products
that differ in their level of importance or interest that theyentail for the
consumer; and
How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups,
or organizations and the processes they use to select, secure, use, and dispose of
products, services, experiences, or ideas to satisfy needs and theimpacts that
these processes have on the consumer and society." Although it is not necessary
to memorize this definition, it brings up some useful points:
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Behavior occurs either for the individual, or in the context of a group
(e.g., friends influence what kinds of clothes a person wears) or an
organization (people on the job make decisions as to which products the
firm should use).Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to
the marketer, because this may influence how a product is best positioned

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or how we can encourage increased consumption. Since many
environmental problems result from product disposal (e.g., motor oil being
sent into sewage systems tosave the recycling fee, or garbage piling up at
landfills) this is also an area of interest.
Consumer behavior involves services and ideas as well as tangible
products.The impact of consumer behavior on society is also of relevance.
For example, aggressive marketing of high fat foods, or aggressive
marketing of easy credit, may have serious repercussions for the national
health and economy.There are four main applications of consumer behavior:
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The most obvious is for marketing strategy—i.e., for making better
marketing campaigns. For example, by understanding that consumers are
more receptive to food advertising when they are hungry, we learn to
schedule snack advertisements late in the afternoon. By understanding
that new products are usually initiallyadopted by a few consumers and
only spread later, and then only gradually, to the rest of the population,
we learn that (1) companies that introduce new products must be well
financed so that they can stay afloat until their products become a
commercial success and (2) it is important to please initial customers,
since they will in turn influence many subsequent customers’ brand
choices.
Asecond application is public policy. In the 1980s, Accutane, a near
miracle cure for acne, was introduced. Unfortunately, Accutane resulte d
in severe birth defects if taken by pregnant women. Although physicians
were instructed to warn their female patients of this, a number still
became pregnant while taking the drug. To get consumers’ attention, the
Federal Drug Administration (FDA) tookthe step of requiring that very
graphic pictures of deformed babies be shown on the medicine containers.
Social marketing involves getting ideas across to consumers rather than
selling something. Marty Fishbein, a marketing professor, went on
sabbatical to work for the Centers for Disease Control trying to reduce the
incidence of transmission of diseases through illegal drug use. The best...