Part A:
1. Principles of Consumer Behavior:
Consumer behavior is dynamic. It involves thinking, feeling as well as actions of consumers, consumer groups and society. The study of consumer behavior looks at how people buy, what they buy, when they buy and why they buy it. It examines the buyer decision process, both individually and in groups. It also examines characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants and assess consumer influences (such as family, friends, reference groups, and society in general). Ultimately, the focus is on the dynamic interaction of affect, cognition, behavior, and the environment by which human beings exchange aspects of their lives.
2. Who determines what consumers buy?
The consumer determines what factors are important to fufilling their needs. These consumer needs are not only made up by personal preference, but by the consumer environment, the social and physical stimuli that inadvertently affect buying behavior. The major influences of consumer behavior are advertisements, price information, packaging, product appearance and comments from other customers. Consumer behavior researchers determine what customers buy by studying the influencers.
3. What are the major ways to study consumer behavior and what issues addressed in a “marketing analysis”?
There are three major approaches to studying consumer behavior: interpretive, traditional and market science. Interpretive is based on theories and methods from cultural anthropology. The objective is to understand consumption and its meanings. The methods involve the use of long interviews and focus groups to extrapolate knowledge and information. The traditional approach is based on cog ...