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    1. The study of consumer behavior examines how individuals make purchasing decisions regarding products and services to satisfy their needs. 2. Marketers need to understand consumer behavior through research in order to effectively implement the marketing concept of delivering products that satisfy customer needs better than competitors. 3. The marketing concept is rooted in business orientations like production and societal marketing, and emphasizes consumer research, segmentation, targeting, positioning, and developing customer value, satisfaction, trust and retention.

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    1. The study of consumer behavior examines how individuals make purchasing decisions regarding products and services to satisfy their needs. 2. Marketers need to understand consumer behavior through research in order to effectively implement the marketing concept of delivering products that satisfy customer needs better than competitors. 3. The marketing concept is rooted in business orientations like production and societal marketing, and emphasizes consumer research, segmentation, targeting, positioning, and developing customer value, satisfaction, trust and retention.

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    1. The study of consumer behavior examines how individuals make purchasing decisions regarding products and services to satisfy their needs. 2. Marketers need to understand consumer behavior through research in order to effectively implement the marketing concept of delivering products that satisfy customer needs better than competitors. 3. The marketing concept is rooted in business orientations like production and societal marketing, and emphasizes consumer research, segmentation, targeting, positioning, and developing customer value, satisfaction, trust and retention.

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    19 views26 pages

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    1. The study of consumer behavior examines how individuals make purchasing decisions regarding products and services to satisfy their needs. 2. Marketers need to understand consumer behavior through research in order to effectively implement the marketing concept of delivering products that satisfy customer needs better than competitors. 3. The marketing concept is rooted in business orientations like production and societal marketing, and emphasizes consumer research, segmentation, targeting, positioning, and developing customer value, satisfaction, trust and retention.

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    of 26

    Consumer Behavior: Meeting

    Changes and Challenges

    CHAPTER
    ONE
    Consumer Behavior
    The behavior that
    consumers display in
    searching for, purchasing,
    using, evaluating, and
    disposing of products and
    services that they expect
    will satisfy their needs.
    Two Consumer
    Entities

    Consumer behavior focuses


    on how individuals make
    decisions to spend their
    available resources on
    consumption-related items.
    As consumers, we play a
    vital role in the health of the
    economylocal, national,
    and international.
    Marketers need to know
    everything they can about
    consumers.
    Marketers need to
    understand the personal and
    group influences that affect
    consumer decisions and how
    these decisions are made.
    Marketers need to not only
    identify their target
    audiences, but they need to
    know where and how to
    reach them.

    Development of the
    Marketing Concept
    How did consumer
    behavior study
    originate?
    The strategic and applied
    field of consumer behavior
    is rooted in three
    philosophically different
    business orientations that
    lead up to an extremely
    important business
    orientation known as the
    marketing concept.
    Production
    Orientation
    From the 1850s to the late
    1920s
    Companies focus on
    production capabilities
    Consumer demand
    exceeded supply

    Discussion
    Questions
    What two companies do
    you believe grasp and use
    the marketing concept?
    Why do you believe this?

    Societal Marketing
    Concept
    Considers consumers
    long-run best interest
    Good corporate citizenship
    Business Leaders Who
    Understood Consumer
    Behavior
    Alfred Sloan, General Motors
    Colonel Sanders, KFC
    Ray Kroc, McDonalds

    The Marketing
    Concept
    Consumer Research
    Segmentation
    Market Targeting
    Positioning
    The process and tools used to
    study consumer behavior

    The Marketing
    Concept
    Consumer Research
    Segmentation
    Market Targeting
    Positioning
    Process of dividing the market
    into subsets of consumers with
    common needs or
    characteristics. Group of
    people exhibiting similar
    buying behaviour
    Discussion
    Questions
    What products that you
    regularly purchase are
    highly segmented?
    What are the different
    segments?
    Why is segmentation
    useful to the marketer for
    these products?
    The Marketing
    Concept
    Consumer Research
    Segmentation
    Market Targeting
    Positioning
    The selection of one or more of
    the segments identified to
    pursue
    The Marketing
    Concept
    Consumer Research
    Segmentation
    Market Targeting
    Positioning
    Developing a distinct image for the
    product in the mind of the
    consumer
    Successful positioning includes:
    Communicating the benefits of
    the product
    Communicating a unique selling
    proposition

    The Marketing Mix


    Customer Value,
    Satisfaction, Trust,
    and Retention
    Successful
    Relationships
    Customer Value
    Customer Satisfaction
    Customer Trust
    Customer Retention
    Defined as the ratio between
    the customers perceived
    benefits and the resources
    used to obtain those benefits
    Perceived value is relative and
    subjective
    Developing a value proposition
    is critical
    Discussion
    Questions
    How does McDonalds
    create value for the
    consumer?
    How do they communicate
    this value?
    Successful
    Relationships
    Customer Value
    Customer Satisfaction
    Customer Trust
    Customer Retention
    The individual's perception of
    the performance of the
    product or service in relation
    to his or her expectations.
    Customer groups based on
    loyalty include loyalists,
    apostles, defectors, terrorists,
    hostages, and mercenaries

    Ensuring Customer
    Satisfaction
    Loyalistscompletely
    satisfied customers who
    keep purchasing.
    Apostlesthose whose
    experiences exceed their
    expectations and who
    provide very positive word of
    mouth about the company
    to others.
    Defectorsthose who feel
    neutral or merely satisfied
    and are likely to stop doing
    business with the company.
    Ensuring Customer
    Satisfaction
    Terroriststhose who have
    had negative experiences
    with the company and who
    spread negative word of
    mouth.
    Hostagesunhappy
    customers who stay with the
    company because of no
    choice (or other reasons).
    Mercenariesvery satisfied
    customers but who have no
    real loyalty to the company
    and may defect.
    Successful
    Relationships
    Customer Value
    Customer Satisfaction
    Customer Trust
    Customer Retention

    Successful
    Relationships
    Customer Value
    Customer Satisfaction
    Customer Trust
    Customer Retention
    The objective of providing
    value is to retain highly
    satisfied customers.
    Loyal customers are key
    They buy more products
    They are less price sensitive
    Servicing them is cheaper
    They spread positive word of
    mouth
    Top 10 Ranked U.S.
    Companies in Terms of
    Consumers Trust and
    Respect of Privacy
    Table 1.2
    Customer
    Profitability-
    Focused Marketing
    Tracks costs and revenues
    of individual consumers
    Categorizes them into tiers
    based on consumption
    behavior
    A customer pyramid
    groups customers into four
    tiers

    Impact of Digital
    Technologies
    The Mobile
    Consumer
    Wireless Media Messages
    will expand as:
    Flat-rate data traffic
    increases
    Screen image quality is
    enhanced
    Consumer-user experiences
    with web applications
    improve
    Consumer Behavior
    Is Interdisciplinary
    CONSUMER
    BEHAVIOR AND
    DECISION MAKING
    ARE
    INTERDISCIPLINARY
    Psychologythe study of
    the individual.
    Sociologythe study of
    groups.
    Social psychologythe
    study of how an individual
    operates in groups.
    Anthropologythe
    influence of society on the
    individual.
    Economicsto form the
    basis of this new
    marketing discipline.
    Many early theories
    concerning consumer
    behavior were based on
    economic theory, the idea
    that individuals act
    rationally to maximize
    their benefits
    (satisfactions) in the
    purchase of goods and
    services.
    Later research discovered
    that consumers are just as
    likely to purchase
    impulsively, and to be
    influenced not only by
    family, friends, advertisers
    and role models, but by
    mood, situation, and
    emotion.

    A Simple Model of Consumer


    Decision Making - Figure 1.4
    1. What is the
    relationship
    between the study
    of consumer
    behavior and the
    marketing concept
    The term consumer
    behavior refers to the
    behavior that consumers
    display in searching for,
    purchasing, using,
    evaluating and disposing
    of products and services
    that they expect will
    satisfy their needs. The
    study of consumer
    behavior is the study of
    how individuals make
    consumption-related
    decisions.
    the marketing concept
    -determine the needs and
    wants of specific target
    markets, and deliver the
    desired satisfaction better
    than the competition.
    Marketer should make
    what they can sell, instead
    of trying to sell what they
    have made. Thus, a
    company which adopts the
    marketing concept must
    continuously research and
    monitor its customers and
    potential clients needs
    and consumption-related
    behavior in order to
    develop, effectively
    promote, and deliver
    products and services
    which satisfy clients needs
    better than the
    competition.

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