Chapter 1.Consumer Behavior 2

7/31/2019 Chapter 1.Consumer Behavior 2

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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?

Chapter 1.Consumer Behavior 2

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Transcript of Chapter 1.Consumer Behavior 2