Consumer Behavior as a Field of Study

Initiated in the 1960s, consumer behavior as a field of study is, as described by your textbook, "the study of consumers as they go about the consumption process." Knowing how consumers seek value when identifying and satisfying their needs is a core function in marketers’ ability to successfully position their products to fulfill those needs. Consumer behavior is dynamic because there are many disciplines that are applied to understanding buyer behavior, including anthropology, economics, psychology, social psychology, and sociology.

Treatment of Customers Varies

The customer may be treated differently depending on the place of business and type of service being performed. Consider the following two questions to understand the importance any given organization places on providing good service to customers:

Figure 1.2. Considerations for Customer Service

Competition and Consumer Orientation

Let’s be clear. There actually is a difference—however subtle—between consumer orientation and market orientation.

According to a study by Slater and Narver (1998), “The first, a customer-led philosophy, is primarily concerned with satisfying customers’ expressed needs, and is typically short term in focus and reactive in nature.” Think of it as good customer service in response to a consumer inquiry or complaint.

“The second, a market-oriented philosophy, goes beyond satisfying expressed needs to understanding and satisfying customers’ latent needs and, thus, is longer term in focus and proactive in nature” (p. 1001).

Businesses who engage in market research to determine or even anticipate consumer needs and who then make decisions about the four Ps (product, pricing, place, and promotion) based on these insights are implementing a market orientation. It follows, though, that businesses that are market oriented are also consumer oriented, but those that are consumer oriented may not necessarily be market oriented.

Relationship Marketing and Consumer Behavior

Relationship marketing is described by your textbook as the group of "activities based on the belief that a firm's performance is enhanced through repeat business." Effective relationship marketing relies on creating a lasting connection with customers in order to turn one touchpoint into an ongoing series of interactions with those customers.

In the car buying example presented earlier, the car dealership established a relationship with Ahmed during the sales transaction. Every instance of contact Ahmed had with the dealership was a touchpoint (any time a brand touches the customer).

What other touchpoints will Ahmed experience throughout the buying process? How will they contribute to the dealer’s efforts at relationship marketing? Why is this type of marketing preferred?