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Consumer BehaviourChapter 1
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Consumer behaviour have changed
dramatically in the past decade .
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An Introduction to The Study of
Consumer Behavior
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consumer behavior
Definition:
The behaviour that consumer displays in searching , purchasing,using , evaluating and disposing of the product or services that
they expect will satisfy their needs.
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There are two kinds of consumers:
1- Personal consumer
2-Orgnizational consumer
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Development of the marketing concept and
the discipline of consumer behaviour
-Production concept
-Product concept
-Selling concept
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The Marketing concept
Consumer needs and wants became the firms primary
focus.
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Implementing the marketing concept
(Through doing research and using strategic tools)
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Segmentation, Targeting and positioning
-With a large country
-Many different types of people
it is too difficult to create a product that will satisfyeverybody, that is why we focus on a segment of thetotal market
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Segmentation
-The process of dividing a market into subsets ofconsumers with common needs or
characteristics.
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Targeting
-Targeting is selecting one or more of segments
identified for the company to pursue.
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Positioning
Positioning is developing a distinct image for theproduct or service in the mind of the consumer, an
image that will differentiate the offering from
competing ones and squarely communicate toconsumers that the particular product or service will
fulfill their needs better than competing brands.
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The marketing mix
(product and service offered by the company toconsumers and the tools selected to
accomplish the exchange)
-Product
-Price
-Promotion
-Place(distribution)
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Customer value, satisfaction and
retention
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Providing Customer Value
Definition:
Customer Value is defined as the ratio between thecustomers perceived benefits and the resources
used to obtain those benefits.
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Customer Satisfaction
Definition:
Customer satisfaction is the individuals perception of
performance of the product or service in relation to his
or her expectations.
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Customer Retention
Definition:
Makes it in the best interest of customer to stay withthe company rather than switch to another firm.
1-loyal customers buy more products
2-loyal customers are less price sensitive and pay less attention tocompetitors' advertising
3-servising existing customers, who are familiar with the firms
offerings and process, is cheaper
4-loyal customers spread positive word-of-mouth and refer to othercustomers.
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The impact of Digital Technologies onmarketing strategies
-Consumers have access to more informationthan ever before
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Consumer have more power than ever before
-Locate best prices , bids.
-Pass distribution outlets.
-Shop goods around the globe to their
homes.
Consumer have access to more information than
before
-Easily find reviews for the product-Click the button to compare the features of different
product models of the site of an online retailers.
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Challenge Marketers Face( ex. specializeddigital recorders)
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Marketing Ethics and social responsibility
Firms have become viewed as responsible for more
than generating profits.Corporate social responsibility refers to the idea
that firms have an obligation to help the larger
society by offering some of their resources.
A businesss self-interest could be advanced if the
business embraced a long-run view.
This position would permit expenditures in support
of socially responsible activities and provide future
benefits in the form of consumer approval and
loyalty.
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One way of showing that companies are
socially responsible is by creating a positivepublic image.
Another way that firms can show they are
socially responsible is by making speedy
product recalls.
Public peace of mind can be corrupted by
diffusion of rumors.
Rumors often plague both large and small
companies.
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Consumer behavior and Decision-Making are
Interdisciplinary(rational,emotion,mood and
situations).
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A simplified Model of Consumer Decision
Making1-Input
2-Process
3-Output
External Influence
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Firms marketing efforts
1-product
2-promotion
3-price
4-channels of distribution
Purchase
1-Trial
2-Repeat purchase
Need
Recognition
Pre-Purchase search
Evaluation of alternatives
Psychological Field
1-Motivation
2-Perception3-Learning
4-Personality
5-Attitudes
Sociocultural Environment
1-Family
2-Informal sources
3-other non-commercial
sources
4-social class
5-cultural and subculture
Experience
Post-Purchase Evaluation
Input
output
Process
External Influence
Post decision behaviour
Consumer decision- making
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Discussion Questions
1- Describe the interrelationship betweenconsumer behavior and the marketing mix?
2-Describe the interrelationship between consumer
research ,market segmentation and targeting andthe development of the marketing mix for a
manufacturer of high definition television sets?
3-Define the societal marketing concept and discuss
the importance of integrating marketing ethics
into the companys philosophy and operations?
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4-Discuss the interrelationships amongcustomer expectations and satisfactionperceived value and customer retention
essential?5-Discuss the role of the social and behavioral
science in developing the consumer decision-making model?
6-Apply the two models depicted in table 1-3 tothe marketing of mobile phone services?