There is only one boss the
customer. And he can fire
everyone from the Chairman
down
Sam Walton, Founder, WalMart Stores
Buyer Behavior
Buyer behavior focuses primarily on buyers and
buying.
But, often you buy for others (significant others,
spouses, friends, children)
To buy, you have to engage in activities other than
buying e.g., searching, learning to search, using,
knowing how to use, and disposing.
so buyer behavior cannot be the whole story
Consumption and Consumer
Behavior
Consumption
Activities, thoughts and feelings (of individuals
and groups) directed toward achieving
satisfaction (often using market offerings).
Consumers
Those who engage in consumption activities
Consumer Behavior (Brief definition)
How consumers go about achieving satisfaction.
What is Consumer Behavior?
The study of individuals, groups, or
organizations and the processes
they use to select, secure, use, and
dispose of products, services,
experiences, or ideas to satisfy
needs and the impacts that these
processes have on the consumer
and society.
Some definitions for consumer behaviour
Consumer Behaviour is the decision process and
physical activity individuals engage in when evaluating,
acquiring, using or disposing of goods and services
(Loudon and Della Bitta)
reflects the totality of consumers
decisions with respect to the acquisition, usage and
disposition of goods, services, time and ideas by
(human) decision making units (over time) (Jacob Jacoby)
Consumer Behaviour
A blow up of the definition
Consumer Behaviour reflects:
the totality
of decision
time
Whether
about the
consumption
What
Acquisiti
on
Why
How
When
Where
How
much/
How
often/
How long
Usage
Dispositi
on
of an
by decision
over
offering
making units
Produc
ts
Service
s
Time
Hours
Informati
on
gatherer
Influence
r
Decider
Days
Weeks
Month
s
Purchaser
User
Ideas
Marketing strategies and Tactics
Years
Why study consumer behavior?
Consumer behavior theory provides the
manager with the proper questions to
ask
Marketing practice designed to
influence consumer behavior influences
the firm, the individual, and society
All marketing decisions and regulations
are based on assumptions about
consumer behavior
Applications of Consumer
Behavior
Marketing Strategy
To satisfy target consumer needs
Regulatory Policy
To protect consumers
Social Marketing
To help consumers
Informed Individuals
To better understand how societies function
What is Customer Value?
The difference between all the benefits derived from a total
product and all the costs of acquiring those benefits.
What is required of a firm to provide superior customer
value?
It must do a better job of anticipating and reacting to
customer needs than the competition does.
What role does consumer behavior play in creating
superior customer value?
An understanding of consumer behavior is the basis for
marketing strategy formulation, and the consumers
reaction to this marketing strategy ultimately determines the
firms success or failure.
Who is the consumer?
ROLE
Initiator
DESCRIPTION
Influencer
A person who intentionally, or unintentionally
influences the purchase decision , the actual
purchase and/or the use of the product or service
Buyer
The individual who makes the
purchase transaction
User
The person most directly involved in
the consumption of the purchase
Individual who determines that some need or want
is not being met and initiates purchase behaviour
to rectify the situation
Possible participants in the
purchase process
S uggester
P urchaser
A dvisor
D ecision maker
E nd user
Marketing Strategy & Consumer
Behavior
Market Analysis Components
The Consumers
The Company
The Competitors
The Conditions
Market Segmentation
Market Segment: a portion of a
larger market whose needs differ
somewhat from the larger market.
Four steps to segmentation:
Identify product-related need sets
Group customers with similar need sets
Describe each group
Select an attractive segment(s) to serve
Market Segmentation
What is market segmentation?
Market segmentation involves aggregating
prospective buyers into groups that:
1. have common needs
2. will respond similarly to marketing actions
Why segment the market?
Market segmentation links market needs to an
organizations marketing programs.
When does an organization segment the
market?
When the potential increase in profits as a
result of segmenting outweigh the costs of
segmenting.
Market Segment Attractiveness
Marketing Strategy
How will we provide superior
customer value to our target market?
Marketing Mix
The Product
Communications
Price
Distribution
Service
Firm:
Outcomes
Product positioning
Sales
Customer Satisfaction
Individual:
Need Satisfaction
Injurious Consumption
Society:
Economic
Physical Environment
Social Welfare
Creating Satisfied Customers
Consumer Behavior is Product
Person Situation Specific
Personal
Characteristics
Product
Characteristics
Consumption
Situation
Consumer
Behavior
Marketing
Strategy
Consumer Lifestyles and
Consumer Decisions
Needs/Attitudes
That Influence
Consumption Decisions
Consumer
Choices
Consumer
Lifestyle
Behavior/Experiences
That Influence
Consumption Decisions
Overall Model Of Consumer Behavior
