CHAPTER 1: INTRODUCTION TO THE STUDY OF CONSUMER BEHAVIOR

Learning Objectives:

• Understand the difference between "customers" and "consumers," and grasp why this distinction
is important in the study of consumer behavior.
• Clearly articulate what consumer behavior is, including its various components and how it impacts
marketing practices.
• Develop an understanding of the range of topics covered under consumer behavior and how they
apply to real-world business and marketing scenarios.
• Realize why studying consumer behavior is essential, not only from an academic perspective but
also for practical marketing strategies.
• Develop an historical context by understanding how the field of consumer behavior has evolved
over time, and the different influences that have shaped it.
• Recognize that the study of consumer behavior is not confined to marketing alone but is
influenced by various other disciplines like psychology, sociology, and economics.

INTRODUCTION:

Consumer behavior is an interdisciplinary field that studies the actions, motivations, and decision-making
processes of consumers—individuals, groups, or organizations—involved in acquiring, using, and
disposing of products and services. This field is integral for marketers, product developers, customer
service agents, and anyone else aiming to provide value to consumers and build brand loyalty.

Detailed Discussion:

Definition: Consumer behavior extends beyond just buying a product; it includes the mental, emotional,
and physical activities that take place before, during, and after making a purchase.

Example: When you're hungry and craving fast food, you might look up different options online, ask for
recommendations from friends, visit multiple restaurants before choosing one, and then perhaps share
your meal on social media. Each of these steps involves distinct elements of consumer behavior.

Importance: Understanding consumer behavior provides actionable insights that inform every stage of
product development and marketing—from product design to the 4 P's (Product, Price, Place, Promotion).

Example: Tesla not only identifies a market need for sustainable energy vehicles but understands the
consumer's desire for a luxury experience. Their entire marketing strategy—from the design of the car to
the layout of the showrooms—is tailored to meet these complex consumer expectations.

Scope: Consumer behavior encompasses a wide range of activities: need recognition, information search,
evaluation of alternatives, purchase, and post-purchase evaluation. It's a cycle that's continually
influenced by various internal and external factors.

Example: The COVID-19 pandemic influenced consumer behavior significantly, causing a shift towards
online shopping, greater focus on health and hygiene products, and a reduced emphasis on luxury items.

Interdisciplinary Nature: This field doesn't exist in a vacuum. It draws from psychology (why people make
decisions), sociology (how group dynamics affect choices), anthropology (how culture influences
behavior), economics (how scarcity and abundance influence choices), and even neuroscience (what
happens in the brain during decision-making).

Example: Behavioral economics has shown that people don't always act rationally when making decisions,
which has significant implications for pricing strategies. For instance, a pricing model that exploits the
'anchoring effect'—where the first price you see influences your perception of subsequent prices—can be
more effective at leading consumers to make a purchase.

Conclusion:

Understanding consumer behavior isn't a 'nice-to-have'; it's a 'must-have' for anyone serious about
succeeding in today's competitive marketplace. Over the next few weeks, we'll delve deeper into the
complexities of consumer behavior and look at how you can harness this knowledge to drive both business
and customer success.

CUSTOMERS VS. CONSUMERS - UNDERSTANDING THE DIFFERENCE

1. Definition:

Customers: These are individuals or entities that purchase a product or service. They are the ones involved
in a transaction, which might involve a monetary exchange, barter, or other forms of compensation.

Consumers: These are the end-users who actually use or consume the product or service. In many cases,
the customer and the consumer can be the same person, but not always.

Example: A mother buys baby food. Here, she is the customer. The baby who eats the food is the
consumer.

2. Importance:

Customers: Understanding who the customers are is essential for sales tactics, payment solutions, and
distribution strategies.

Consumers: Knowing the consumers is critical for product development, feature selection, and marketing
communication.

Example: In B2B software, the purchasing department might be the customer, but the end-users could be
in another department entirely. Each requires different messaging and feature prioritization.

Table: Comparing Customers and Consumers

Criteria Customers Consumers

Trading/ May resell or trade the product or service Usually uses the product/service for
Reselling personal use

Purchasing Involved in the transaction May not be involved in the transaction

Purpose May have various purposes including reselling, The primary purpose is consumption or
gifting, or personal use usage
 Payment Responsible for the payment or transaction Not necessarily responsible for the
payment

Persona Varied: could be businesses, parents, friends, Usually the end-user, could be children,
etc. employees, etc.

Example Scenarios:

• Trading/Reselling: A retail store (customer) buys toys in bulk to sell them. The children who will
eventually own these toys are the consumers.
• Purchasing: In a company, the IT department might purchase software (customer), but the
marketing department might be the one using it (consumer).
• Purpose: A gym owner buys a set of yoga mats (customer) for gym members to use (consumers).
• Payment: Parents (customers) might pay for a Netflix subscription that their children (consumers)
predominantly use.
• Persona: A pet owner (customer) buys pet food. The pet (consumer) is the one who will consume
the food.

Conclusion:

Understanding the difference between customers and consumers can help businesses tailor strategies at
each touchpoint of the buyer's journey, from product design and marketing to sales and customer service.

DEFINING CONSUMER BEHAVIOR

1. Definition:
• Consumer Behavior: This term refers to the actions, decisions, and attitudes that consumers
display when searching for, purchasing, using, evaluating, and disposing of products and services.
2. Components:
• Cognitive Processes: These are the mental procedures consumers go through to make sense of
information, like perception, memory, and problem-solving.
• Emotional Aspects: This refers to the feelings or emotions that consumers experience during the
buying process.
• Behavioral Outcomes: These are the actions consumers take, such as purchasing, using, and
disposing of a product.
3. Scope: Consumer behavior is not just about the act of purchasing; it's a multidimensional process
that begins long before the actual transaction and continues long after.

The statement "Consumer behavior is not just about the act of purchasing; it's a multidimensional
process that begins long before the actual transaction and continues long after" underscores the
complexity and ongoing nature of how consumers interact with products and services. Let's break it
down:

Multidimensional Process:
Consumer behavior is multifaceted, involving cognitive, emotional, and behavioral dimensions.
Consumers don't just walk into a store, make a purchase, and end their journey there. Instead, they go
through several phases:

Cognitive Aspects: This involves thinking, learning, and problem-solving. Before a purchase, a consumer
might research different brands, read reviews, and compare prices.

Emotional Aspects: Feelings and sentiments are also at play. A consumer might feel aspirational about
a luxury item, nostalgic about a classic product, or even anxious about making an expensive purchase.

Behavioral Aspects: These are the tangible actions taken, such as visiting stores, clicking on an ad,
placing an item into an online shopping cart, making a purchase, or even returning the product.

Begins Long Before:

• Problem Recognition: Consumers first identify a need or problem. Maybe their current
smartphone is outdated, or perhaps they're looking for a car because they just moved to a new
city.
• Information Search: Then comes the quest for information. They might search online, ask friends
for recommendations, or visit physical stores.
• Evaluation: Consumers evaluate alternatives based on their criteria, which could include price,
features, or brand reputation.

The Actual Transaction:

• This is what most people think of when considering consumer behavior—the act of making a
purchase. However, as this model shows, it's just one part of a broader journey.

Continues Long After:

• Post-Purchase Evaluation: After the purchase, consumers evaluate their decision. Was it a good
buy? Did it meet their expectations?
• Future Behavior: Based on this evaluation, the consumer's future behavior is shaped. They may
choose to be a repeat customer, write a review, or even become a brand advocate. Conversely,
dissatisfaction could lead to product returns or negative reviews.

In Summary:

Consumer behavior is an ongoing loop rather than a one-time transaction. It encompasses everything
from identifying a need, researching and comparing options, to making a purchase and evaluating its
worth post-purchase. Each of these phases can influence the next, creating a continuous cycle of
consumer behavior.

Temporal Aspects:

It covers pre-purchase activities (need recognition, information search), actual purchase activities,
and post-purchase activities (evaluation, disposal).

Table or Figure:
 Stage of Consumer Cognitive Emotional Aspects Behavioral
Behavior Processes Outcomes

Pre-Purchase Information Curiosity Browsing stores

search

Purchase Decision-making Excitement Buying

Post-Purchase Evaluation Satisfaction/Regret Usage/Disposal

Example Scenarios:

• Pre-Purchase: Consider a consumer who realizes they need a new smartphone. They might
research online (cognitive), feel curious about new models (emotional), and visit stores to
look at options (behavioral).
• Purchase: The consumer decides to buy a particular model after considering its features
(cognitive), feeling confident about the choice (emotional), and making the payment
(behavioral).
• Post-Purchase: After using the phone, the consumer may evaluate its performance and
features (cognitive), feel satisfied or regretful (emotional), and continue using or decide to
sell/exchange it (behavioral).

Explanation of the Table/Figure:

Columns:

1. Stage of Consumer Behavior: This column represents the time frame within the consumer
decision-making process—specifically, Pre-Purchase, Purchase, and Post-Purchase.
2. Cognitive Processes: Here, you'll see the mental activities or thinking processes that
consumers engage in during each stage.
3. Emotional Aspects: This column lists the kinds of emotions that consumers might feel at each
stage of the buying process.
4. Behavioral Outcomes: This focuses on the actions that consumers may actually take at each
stage.

Rows:

1. Pre-Purchase: This row deals with the stage before making an actual purchase. For instance,
in our smartphone example, the consumer might conduct online research (Cognitive
Processes), feel curious about new features (Emotional Aspects), and visit stores to explore
options (Behavioral Outcomes).
2. Purchase: This row pertains to the act of buying the product. For example, the consumer
makes a decision based on phone features (Cognitive), feels excited or confident about their
choice (Emotional), and completes the transaction (Behavioral).
3. Post-Purchase: This covers actions and feelings after the purchase. The consumer evaluates
the smartphone's performance (Cognitive), feels either satisfied or regretful depending on
the experience (Emotional), and opts to continue using the phone or possibly resell or
exchange it (Behavioral).
 How to Use the Example to Explain the Table:

You could say something like:

"In the case of purchasing a smartphone, during the Pre-Purchase stage, a consumer typically goes
through cognitive processes like information searching. They may feel emotions like curiosity and
take behaviors like visiting a store to browse options.

When it comes to the Purchase stage, the cognitive action might involve finalizing the decision
based on researched features and specs. The emotional aspects could involve excitement or even
nervousness, and the behavior would be the actual purchase transaction.

Lastly, in the Post-Purchase stage, the cognitive process involves evaluating whether the phone
meets expectations. Emotionally, the consumer may feel satisfaction or regret, and behaviorally,
they may continue to use the phone or even consider reselling it based on their evaluation."

THE NATURE OF CONSUMER BEHAVIOR

The nature of consumer behavior is intricate and involves multiple phases, each with its own set of
factors, influencers, and consequences. The entire process can be encapsulated in a cyclical model,
emphasizing that consumer behavior is not a linear one-time transaction but a recurring process that
evolves with each cycle.

NEED
IDENTIFICATION

POST-PURCHASE INFORMATION
EVALUATION SEARCH

PURCHASE ALTERNATIVE
DECISION EVALUATION

The arrows between each segment point in a clockwise direction, emphasizing that the process is ongoing.
A feedback loop from 'Post-Purchase Evaluation' back to 'Need Identification' highlights the iterative
nature of consumer behavior.
Phase Explanations:

1. Need Identification

The consumer becomes aware of a gap—be it emotional, functional, or social—that needs to be filled. For
instance, a consumer realizing their phone's battery life isn't lasting the day may identify a need for a new
phone with better battery life.

Example: Jane notices that her current phone's battery drains quickly, and it doesn't support the latest
software updates. She feels the need for a more reliable smartphone with long-lasting battery life and
software support.

2. Information Search

In this phase, consumers seek information from various sources: reviews, friends' recommendations, or
expert advice. Someone looking for a new phone might scour tech blogs, watch YouTube reviews, or visit
retail stores for hands-on experience.

Example: Jane starts her research process. She asks for recommendations from friends who recently
bought smartphones. She also visits tech blogs and watches YouTube reviews focusing on smartphones
with the best battery life and software support.

3. Alternative Evaluation

Consumers compare the available choices based on their individual criteria such as price, brand, features,
or quality. For example, the consumer may compare phones from Apple, Samsung, and Google based on
battery life, camera quality, and price.

Example: Jane narrows her choices down to three models: iPhone 13, Samsung Galaxy S21, and Google
Pixel 6. She compares them based on battery life, camera quality, software support, and price. She makes
a pros and cons list for each based on her criteria.

4. Purchase Decision

At this stage, the consumer makes the final decision and proceeds with the purchase. However, last-
minute factors like promotional offers or peer influence can alter the decision. Our consumer, now
convinced that a particular model meets all the criteria, buys the phone.

Example: After days of research and comparison, Jane decides to buy the iPhone 13. However, upon
arriving at the store, she sees a special promotion for the Samsung Galaxy S21, giving her pause. After
considering the offer, she sticks with her initial choice and buys the iPhone 13.

5. Post-Purchase Evaluation

After acquiring the product or service, the consumer assesses satisfaction levels. Based on this, they may
either become a loyal customer, indifferent, or a detractor. For instance, if the new phone's battery
surpasses expectations, the consumer may write a glowing review or recommend it to friends, thereby
initiating a new cycle of 'Need Identification' for others.

Example: After using the iPhone 13 for a month, Jane is highly satisfied with the battery life and software
experience. She decides to write a positive review online and even recommends it to a friend who is also
looking for a new phone. This positive review and recommendation could trigger the 'Need Identification'
phase for her friend, continuing the cycle.

SCOPE AND APPLICATION OF CONSUMER BEHAVIOR

Scope of Consumer Behavior:

Consumer behavior is a complex, multi-faceted field that seeks to understand the decision-making
processes, determinants, and external environments that influence people's choices in purchasing goods
and services. It's about much more than just why someone decides to buy a specific product; it's about
understanding the nuances that lead to that decision and the repercussions that follow.

1. The Decision Process

• Need Identification: Before making a purchase, consumers recognize a need or a problem that
needs solving.
• Information Search: Consumers search for information about the various alternatives available in
the market.
• Alternative Evaluation: Consumers compare different products or services based on a range of
factors.
• Purchase Decision: The final selection is made and the transaction occurs.
• Post-Purchase Evaluation: Consumers assess their satisfaction with the purchase.

Understanding Human Needs and Wants:

Needs: Basic requirements for survival like food, water, and shelter.

Wants: Desires that go beyond basic needs, often shaped by culture or individual personality.

Example: You realize your smartphone is outdated and unable to run new apps efficiently. The need is for
better, faster technology, but the want might be for a specific brand like Apple or Samsung.

2. The Consumer Determinants

• Psychological Factors: Individual attitudes, learning, and perception.

• Personal Factors: Age, lifestyle, occupation, and economic circumstances.
• Social Factors: Influence of family, friends, and society at large.

3. The External Environments

• Cultural Factors: Norms, beliefs, and expectations of society or sub-cultures.

• Economic Factors: Economic conditions, inflation rates, and employment levels.
• Technological Factors: The level of technology available can also significantly impact consumer
behavior.

Example: In a booming economy, a consumer might opt for a luxury car, but in a recession, the same
consumer might choose a more economical vehicle.

Evaluation of Alternatives:

• Degree of Importance: How critical is each attribute to the consumer.

 • Product Attributes: Features, benefits, and drawbacks of each product.
• Brand Beliefs: What does the consumer believe about each available brand?
• Total Product Satisfaction: How happy will the consumer be with each product?

Example: When choosing a smartphone, some may prioritize camera quality (Degree of Importance),
compare megapixels (Product Attributes), believe that iPhones have better cameras (Brand Beliefs), and
ultimately, find that the iPhone satisfies all their needs (Total Product Satisfaction).

Incorporating the Law of Demand:

In basic economics, the Law of Demand states that, all else being equal, as the price of a product increases,
the demand for that product decreases. Understanding this law is essential for marketers as they evaluate
how price-sensitive their consumers are and what the optimum pricing strategy should be.

Example: If the price of an iPhone increases dramatically, demand might decrease, especially if
alternatives offer similar attributes at a lower cost.

By diving deeply into these aspects, we gain comprehensive insights into consumer behavior, which is
invaluable for businesses aiming to understand, predict, and influence consumer choices.

NARRATIVE:

Let's start by breaking down the Decision Process. Imagine you realize your smartphone is slow and can't
handle new apps; this is what we call 'Need Identification.' Your 'need' is for a faster, more efficient device,
but your 'want' might be for a high-end brand like Apple or Samsung. This leads you to gather information,
possibly looking at different models, their features, and prices, which is the 'Information Search' phase.

Once you've gathered enough information, you enter the 'Alternative Evaluation' stage. Here you're
looking at things like camera quality, battery life, and processing speed. It's not just about what you need
but what you want—the extras that go beyond the basics, which brings us to the concept of Human Needs
and Wants. While 'needs' are essential for survival, like food and water, 'wants' are the added desires that
vary from person to person.

After you evaluate your choices, you make the 'Purchase Decision.' But it doesn't end there. After the
purchase, you assess whether the smartphone meets your expectations, marking the 'Post-Purchase
Evaluation' stage.

Now, what factors influenced you to make this specific choice? That leads us to the 'Consumer
Determinants.' Your personal factors like age, economic condition, or lifestyle could play a role. Maybe
your friend's recommendation, a form of social influence, pushed you toward a specific brand.

But remember, your decision also gets affected by the broader 'External Environment.' In a booming
economy, you might opt for a high-end phone, but during a recession, you might go for a budget-friendly
option. This is where we touch upon the Law of Demand. If the iPhone you're eyeing becomes too costly,
you might reconsider your options, leading to a drop in demand for that particular product.

Lastly, how do you evaluate alternatives? You might weigh the 'Degree of Importance' of each attribute,
harbor certain 'Brand Beliefs,' and seek 'Total Product Satisfaction.' It's a complicated process but vital for
marketers to understand for pricing strategies, promotional efforts, and more.
In conclusion, understanding consumer behavior is not just beneficial but crucial for effective marketing.
It's like a jigsaw puzzle, and each piece—whether it's human needs, economic conditions, or personal
preferences—adds value to the bigger picture."

Driving Forces of Consumer Needs

1. Time

This factor refers to the chronological changes that influence consumer behavior. Over time,
needs evolve due to natural progression or changes in one's lifestyle. For instance, what a consumer
required as a college student will not be the same as what they need when they are in a full-time job
or as a parent.

2. Changed Circumstances

Any significant alteration in a consumer's situation, like a new job, a move to a different city, or
even shifts in health, can lead to new needs. Such circumstances make previously irrelevant products
or services suddenly relevant.

3. Product Acquisition

The act of obtaining a new product can alter consumer needs. A new product can either meet the
existing need or create a new set of secondary needs. For example, buying a smartphone might lead
to the need for accessories like a screen protector or a phone case.

4. Product Consumption

This refers to the actual usage of the product or service and how that influences future needs. For
example, if a consumer finds that a newly purchased product lacks certain features, this will create a
need for a complementary product or service.

5. Individual Differences

This force acknowledges that every consumer is unique, with different preferences, lifestyles, and
financial capabilities. These individual differences drive the unique needs of each consumer. For
example, some people might need a basic smartphone for calls and texts, while others may need a
high-end model for professional use.

6. Market Influences

Market trends, advertising, social proof, and other external factors can artificially create or
amplify needs. Even if a consumer doesn't have an intrinsic need for a particular product, aggressive
marketing can create a perceived need.

Interconnected Example: The Smartphone

Now, let's connect these driving forces using our ongoing example of a smartphone:

• Time: As technology advances, the phone you bought two years ago might now be obsolete,
triggering the need for a new one.
 • Changed Circumstances: A new job requiring frequent video calls might reveal that your old
phone's camera is inadequate, generating a need for a new phone with better camera capabilities.
• Product Acquisition: After acquiring a new smartphone, you may find a 'need' to buy accessories
like a phone case or a better pair of headphones.
• Product Consumption: As you start using your new smartphone, you might realize your current
data plan is not sufficient, leading to a 'need' for a better plan.
• Individual Differences: Your personal need for high-quality audio on your phone might lead you
to choose a particular model over others.
• Market Influences: Constant ads or peer pressure regarding the convenience of contactless
payments via smartphone may create a 'need' you weren't previously aware of.
• Understanding each of these driving forces helps in comprehending the cyclical and ever-changing
nature of consumer needs, which is crucial in the scope and application of consumer behavior.

Consumer Behavior and Factors that Influence Demand

1. Income

Income is a primary factor in consumer demand. A higher income often leads to increased purchasing
power, allowing consumers to buy more or higher-quality items. On the other hand, lower income might
restrict a consumer to essential items or cheaper alternatives.

Example: Someone with a high income might opt for the latest iPhone model, while someone with a
limited budget may choose a more affordable smartphone brand.

2. Climatic/Seasonal Condition

Seasonal changes can heavily impact consumer demand. For instance, the demand for winter clothing
rises during colder seasons, while swimsuits are more popular in the summer.

Example: Around the time when a new iPhone is typically released, phone cases designed for that model
might see an increase in demand.

3. Price and Related Goods

• Complementary Goods: These are goods often consumed together. If the price of one
rises, the demand for its complement may fall.
• Substitute Goods: These are goods that can replace each other. If the price of one rises,
the demand for its substitute may increase.
Example (Complementary Goods): If the price of smartphones increases significantly, the demand
for smartphone accessories may decrease.
Example (Substitute Goods): If high-end smartphones become too expensive, consumers may
shift to buying more affordable models or brands.
4. Price Expectations

If consumers expect the prices of goods to rise in the future, they are more likely to buy now rather than
later. Conversely, if they expect prices to fall, they might hold off on purchasing.
Example: If there's an expectation that smartphone prices will drop after the holiday season, many
consumers might wait to make a purchase.

5. Tastes and Preferences of Consumers

This relates to how much consumers like or dislike a product, often influenced by social factors,
advertising, and individual experiences.

Example: A trending social media campaign about a smartphone's exceptional camera features may
increase consumer demand for that specific model.

Interconnected Example: The Smartphone

To connect these factors using our ongoing example:

• Income: A recent job promotion might enable a consumer to buy the latest smartphone model.
• Climatic/Seasonal Condition: The release of a new waterproof smartphone model before the
summer may spike demand as consumers prepare for beach vacations.
• Price and Related Goods: A discount on smartphones could lead to increased demand for phone
accessories. Or if the latest iPhone becomes too expensive, consumers might opt for a cheaper
Android phone.
• Price Expectations: Upcoming Black Friday sales might delay consumer purchases, as they wait for
discounts.
• Tastes and Preferences: A celebrity endorsement might make a specific smartphone more
desirable, affecting consumer preferences and demand.

Understanding these influencing factors adds depth to our understanding of the scope and complexities
involved in consumer behavior. This knowledge is crucial for marketers and decision-makers who aim to
meet consumer needs effectively.

Applications of Consumer Behavior

Understanding consumer behavior is crucial for various aspects of marketing and business strategy. Here
are some of the primary applications:

1. Analyzing Market Opportunities

Consumer behavior helps in understanding unmet needs and wants, identifying gaps in the market, or
opportunities for innovation. Through careful analysis, companies can introduce new products or features
that better meet consumer needs.

Example: The rise in health consciousness led to the growth of the wearables market. Companies like
Apple and Fitbit seized this opportunity, offering products that monitor various health metrics.

2. Selecting Target Market

Understanding consumer behavior enables businesses to identify and focus on the most profitable
customer segments. This involves examining demographics, psychographics, and behavioral traits.
Example: Apple targets tech-savvy, brand-conscious consumers willing to pay a premium for quality and
design. Their marketing strategies are geared to appeal to this specific segment.

3. Marketing-Mix Decisions

Consumer behavior insights are crucial for making decisions about product, price, place, and promotion—
the "4 Ps" of marketing. Understanding consumer preferences and pain points can guide choices about
product features, pricing strategies, distribution channels, and promotional tactics.

Example: In smartphones, manufacturers like OnePlus offer high-end features at a mid-range price,
targeting budget-conscious consumers who still want premium quality. This is a strategic pricing decision
based on consumer behavior insights.

4. Use in Social and Non-Profit Marketing

Understanding consumer behavior is not just for profit-making companies but also for social and non-
profit organizations. These organizations use these insights to promote social causes and drive behavioral
change.

Example: A non-profit aiming to reduce smoking might leverage consumer behavior data to understand
the triggers and social factors that encourage smoking. They might then design more effective anti-
smoking campaigns targeting those specific triggers.

Interconnected Example: The Smartphone

To tie it all together, let's continue with our smartphone example:

• Analyzing Market Opportunities: Companies identified a demand for better mobile photography,
leading to smartphones with increasingly advanced cameras.
• Selecting Target Market: Different brands target different consumer segments, like budget-
conscious consumers, tech enthusiasts, or professionals who use their smartphone for work.
• Marketing-Mix Decisions: Brands like Samsung offer a range of smartphones at various price
points with different features, ensuring they cater to multiple consumer segments.
• Use in Social and Non-Profit Marketing: A public health agency might use smartphone data to
track physical activity levels, using the information to design campaigns encouraging exercise.

Understanding the applications of consumer behavior can provide a significant competitive advantage
and is essential for effective marketing strategy planning.