Chapter 1
Consumer Behavior: Its
Origins and Strategic
Appliances
Why Study Consumer Behavior?
What consumers think of our products and those of our
competitors.
What they think of possible improvements in our
products.
How they use our products.
What attitudes they have about our products and our
advertising.
What they feel about their roles in the family and society.
What their hopes and dreams are for themselves and for
their families.
Digital Revolution in the
Marketplace
Allows customization of products, services,
and promotional messages like never before
Enhances relationships with customers
more effectively and efficiently
Changes in the Business Environment
Increased consumer Access to customer
patterns and
power
preferences
Access to
Evolution to other
information
-Web
connection
More products and
i-Pad
services
LED
Interactive and
Utility Mobile
instant exchanges
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.
Broader View of Consumer Behavior
Consumer behavior is 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.
Personal Consumer
The individual who buys goods and
services for his or her own use, for
household use, for the use of a family
member, or for a friend.
Organizational Consumer
A business, government agency, or
other institution (profit or nonprofit)
that buys the goods, services, and/or
equipment necessary for the
organization to function.
Development of the Marketing
Concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept
The Production Concept
Assumes that consumers are interested
primarily in product availability at low
prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion
The Product Concept
Assumes that consumers will buy the
product that offers them the highest quality,
the best performance, and the most features
Marketing objectives:
Quality improvement
Addition of features
Tendency toward Marketing Myopia
The Selling Concept
Assumes that consumers are unlikely to buy
a product unless they are aggressively
persuaded to do so
Marketing objectives:
Sell, sell, sell
Lack of concern for customer needs and
satisfaction
The Marketing Concept
Assumes that to be successful, a company
must determine the needs and wants of
specific target markets and deliver the
desired satisfactions better than the
competition
Marketing objectives:
Profits through customer satisfaction
The Marketing Concept
A consumer-oriented philosophy that
suggests that satisfaction of consumer
needs provides the focus for product
development and marketing strategy to
enable the firm to meet its own
organizational goals.
Implementing the Marketing
Concept
Consumer Research
Segmentation
Targeting
Positioning
Consumer Research
The process and tools used to study
consumer behavior.
Two perspectives:
Positivist approach
Interpretivist approach
Segmentation, Targeting, and
Positioning
Segmentation: process of dividing the
market into subsets of consumers with
common needs or characteristics
Targeting: selecting one or more of the
segments to pursue
Positioning: developing a distinct image for
the product in the mind of the consumer
Successful Positioning
Communicating the
benefits of the
product, rather than
its features
Communicating a
Unique Selling
Proposition for the
product
Successful Relationships
Customer
Value
Customer
Satisfaction
Customer
Retention
Types of Customers
Loyalists
Apostles
Defectors
Terrorists
Hostages
Mercenaries
Customer Profitability-Focused
Marketing
Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead
The Societal Marketing Concept
All companies prosper when society
prospers.
Companies, as well as individuals, would be
better off if social responsibility was an
integral component of every marketing
decision.
Requires all marketers adhere to
principles of social responsibility.
External Influence
Process
Consumer Decision Making
Output
Post-Decision
Behavior
Input
Firms Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Need
Recognition
Prepurchase
Search
Evaluation of
Alternatives
Purchase
1. Trial
2. Repeat purchase
Postpurchase Evaluation
Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial
sources
4. Social class
5. Subculture and culture
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
A Model of
Consumer
Decision
Making
