CONSUMER BEHAVIOR

the study of exchange processes involved in

acquiring, consuming, and disposing of
goods, services, experiences, and ideas

The study of consumer behavior (CB) incorporates theories and concepts from all of the
behavioral sciences:

* cognitive, experimental, social psychology

* sociology
* anthropology
* economics
* - etc.

Acquisition:
The factors that influence the product/service choices of consumers. Much of CB research has
focused on this stage. E.g., how did you decide to purchase one brand of car over another?

Consumption:
How consumers actually use a product/service. E.g., what sorts of attitudes are you forming
during the time that you own a car, and how does this affect future purchases?

Disposition:
What consumers do with a product once they have completed their use of it. E.g., if you purchase
a new car several years later, do you keep the old one, trade it in, sell it yourself through the
newspaper, give it to a friend, or have it towed to a junk yard?

PERSPECTIVES TOWARD THE STUDY OF CB

Marketer:
How to best satisfy the wants and needs of a target market.

Consumer:
How to become a better consumer by learning how people go about consumption activities and
how marketers sell products.

Public policy maker:

How to make rules, regulations, or laws which influence marketers and consumers in the
marketplace.

INFLUENCES ON CONSUMER BEHAVIOR

Intrinsic:
Individual, internal influence factors: personality, motivation, beliefs, attitudes, etc.

Extrinsic:
External factors of influence:

* group influences, such as culture, family, reference groups

* environmental and situational factors, such as time of day, temperature, etc.

PERSPECTIVES ON ACQUISITION BEHAVIOR

Decision-making
Consumers move through a series of steps when making a purchase:

* problem recognition
* search
* alternative evaluation
* choice
* post purchase evaluation

* E.g., we might go through the above steps in buying an expensive product such as a car or
house. In the study of consumer behavior, we are less interested in whether or not this generic
model is the "correct" model, and are more interested in the sorts of factors that influence this as
a generic model. Hence, we are interested in the intrinsic and extrinsic influences on this model.

Experiential:
Pople do not always make purchases according to a rational decision-making process; they
sometimes buy products to have fun, create fantasies, and obtain emotions and feelings.

* E.g., concerts, movies, camping: these are experiences that do not result in the ownership of
a physical thing, but rather result in a pleasant (or unpleasant) memory. Why would someone go
out to eat at a fancy restaurant when they could make dinner at home for less cost in money and
time?

Behavioral:
Environmental forces propel consumers to make purchases without necessarily first developing
strong feelings or beliefs about the product.

* E.g., using a coupon, responding to a contest, feeling proud when the national song is
played. If the national song is played during commercials for a political candidate, we might later
associate a feeling of pride with that candidate (classical conditioning) even though we otherwise
know nothing substantial about the candidate.

EXCHANGE
a transfer of something,
tangible or intangible
actual or symbolic
between two or more social actors

Exchange occurs between organizations as well as between organizations and household

consumers.

Exchanges can be

* simple: involves two parties in a reciprocal relationship

* complex: involves a set of three or more actors enmeshed in a set of mutual relations

RESOURCES OF EXCHANGE:

* money
* goods
* services
* information
* status
* feelings

TWO MODELS OF EXCHANGE

1) Homans' basic exchange equation:

Profit = Rewards - Costs

When would satisfaction be the result?

2) equity theory:

Outcomes of A / Inputs of A
- vs.
Outcomes of B / Inputs of B

When would satisfaction be the result?

http://www.sykronix.com/tsoc/courses/cb/index.html

Ethical Issues in Consumer Exchanged Relation

1. Should a consultant own stock in the companies to which he/she consults?

2. Is it unethical to individually coach family members in a family-owned business when the

organization is the client?

3. Can organizational consultants go to social events with their clients?

4. What do you do if you are working with a CEO and learn that she is guilty of malfeasance?

5. You conducted a 360 assessment for an executive coaching client and one of the respondents
(a direct report) writes in the open-ended comment section that your client has been sexually
harassing people (not the direct report). When your client reads the comment, he says it’s a lie
and tries to guess who made the comment. How would you handle that?

6. A client asks you for referral recommendations for a consultant who will provide a service you
do not offer. You give your client 2 names, one of which you have a referral fee arrangement
where you receive 15% of the fees they charge. How do you handle that type of arrangement
with your client?

7. You have been consulting with a client organization, providing executive team assessment
and development services. You have developed a very good relationship with the senior
executive team. One of the executives asks you if you would be her executive coach. Would that
be unethical?

8. Drawing from your experience, would you describe one of the more challenging ethical
quandaries you faced and how you dealt with it?

9. In your experience, what are some of the most common types of ethical dilemmas we face as
consultants that have not been mentioned above?
10. What advice would you give to consultants if they face an ethical situation that they are not
sure about?

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