There is only one boss the customer. And he can fire everyone from the Chairman down Sam Walton, Founder, WalMart Stores

Buyer BehaviorBuyer 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 BehaviorConsumptionActivities, thoughts and feelings (of individuals and groups) directed toward achieving satisfaction (often using market offerings).

ConsumersThose 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)

Consumer Behaviour 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)

A blow up of the definition Consumer Behaviour reflects:

the totality about the of an by decision over of decision consumption offering making units timeWhetherWhatWhyHowWhenWhereHow much/ How often/ How long

Acquisition

Usage

Disposition

Products

Services

Time

Ideas

Information gathererInfluencerDeciderPurchaserUser

Hours

Days

Weeks

Months

YearsMarketing strategies and Tactics

Why study consumer behavior?Consumer behavior theory provides the manager with the proper questions to askMarketing practice designed to influence consumer behavior influences the firm, the individual, and societyAll marketing decisions and regulations are based on assumptions about consumer behavior

Applications of Consumer BehaviorMarketing StrategyTo satisfy target consumer needsRegulatory PolicyTo protect consumersSocial MarketingTo help consumersInformed IndividualsTo 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?

Possible participants in the purchase processS uggesterP urchaserA dvisorD ecision makerE nd user

Marketing Strategy & Consumer Behavior

Market Analysis ComponentsThe ConsumersThe CompanyThe CompetitorsThe Conditions

Market SegmentationMarket Segment: a portion of a larger market whose needs differ somewhat from the larger market.Four steps to segmentation:Identify product-related need setsGroup customers with similar need setsDescribe each groupSelect an attractive segment(s) to serve

Market SegmentationWhat is market segmentation?Market segmentation involves aggregating prospective buyers into groups that:1. have common needs2. will respond similarly to marketing actionsWhy 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 StrategyHow will we provide superior customer value to our target market?Marketing MixThe ProductCommunicationsPriceDistributionService

OutcomesFirm:Product positioningSalesCustomer SatisfactionIndividual:Need SatisfactionInjurious ConsumptionSociety:EconomicPhysical EnvironmentSocial Welfare

Creating Satisfied Customers

Consumer Behavior is Product Person Situation SpecificPersonalCharacteristicsProductCharacteristicsConsumptionSituationConsumerBehaviorMarketingStrategy

Consumer Lifestyles and Consumer DecisionsConsumerLifestyleNeeds/AttitudesThat InfluenceConsumption DecisionsBehavior/ExperiencesThat InfluenceConsumption DecisionsConsumerChoices

Overall Model Of Consumer Behavior