Consumer Behavior: Meeting Changes and Challenges CHAPTER ONE.

Consumer Behavior: Meeting Changes and

Challenges

CHAPTERONE

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Learning Objectives

• To Understand What Consumer Behavior Is

• Role of Marketing:– Satisfy customers needs and wants• Different marketing orientations

• STP framework

– Build long-term relationship with consumers

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To Which Segment ofConsumers Will This Ad Appeal?

Chapter One Slide 4Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

A Segment of Consumers Who are Environmentally Concerned

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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.


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Development of the Marketing Concept

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Production Orientation

Sales Orientation

Marketing Concept

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• From the 1850s to the late 1920s• Companies focus on production capabilities• Consumer demand exceeded supply



Sales Orientation

Marketing Concept

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Sales Orientation

• From the 1930s to the mid 1950s• Focus on selling• Supply exceeded customer demand



Sales Orientation

Marketing Concept

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Marketing Concept

• 1950s to current - Focus on the customer!• Determine the needs and wants of specific

target markets• Deliver satisfaction better than competition



Sales Orientation

Marketing Concept

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Societal Marketing Concept

• Considers consumers’ long-run best interest

• Good corporate citizenship


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Discussion Questions

1. What two companies do you believe grasp and use the societal marketing concept?

2. Why do you believe this?


The Marketing Concept

• Consumer Research• Segmentation• Market Targeting• Positioning

• The process and tools used to study consumer behavior


Embracing the Marketing Concept

Chapter One Slide

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• Process of dividing the market into subsets of consumers with common needs or characteristics


Implementing the Marketing Concept

Chapter One Slide 13


1. What products that you regularly purchase are highly segmented?

2. What are the different segments?3. Why is segmentation useful to the marketer

for these products?

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The selection of one or more of the segments identified to pursue






• Developing a distinct image for the product in the mind of the consumer

• Successful positioning includes:– Communicating the benefits

of the product– Communicating a unique

selling proposition




The Marketing Mix

Product

Price

Place Promotion

Marketing Mix


Customer Value, Satisfaction, Trust, and Retention

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Successful Relationships

Customer value

High level of

customer satisfaction

Strong sense of

customer trust

Customer retention

Chapter One Slide


• Customer Value• Customer

Satisfaction• Customer Trust• Customer

Retention

• Defined as the ratio between the customer’s perceived benefits and the resources used to obtain those benefits

• Perceived value is relative and subjective

• Developing a value proposition is critical


Value, Satisfaction, Trust, and Retention



• How does McDonald’s create value for the consumer?

• How do they communicate this value?



• Customer Value

• Customer Satisfaction

• Customer Trust• Customer

Retention

• The individual's perception of the performance of the product or service in relation to his or her expectations.

• Customer groups based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenariesCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall






Retention


• Establishing and maintaining trust is essential.

• Trust is the foundation for maintaining a long-standing relationship with customers.






Retention

• The objective of providing value is to retain highly satisfied customers.

• Loyal customers are key– They buy more products– They are less price

sensitive– Servicing them is

cheaper– They spread positive

word of mouthCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall



Top 10 Ranked U.S. Companies in Terms of Consumers’ Trust and Respect of Privacy

Table 1.2Top 10 Companies

• American Express • eBay• IBM• Amazon• Johnson & Johnson• Hewlett-Packard• U.S. Postal Service• Procter and Gamble• Apple• Nationwide

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Discussion: American Express Card

• What is your impression of “American Express”

• According to the video, what does American Express do to improve the usage rate?

• How do they reach the young segment?

https://www.americanexpress.com/

https://www.americanexpress.com/

Impact of Digital Technologies

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Marketers

• More products and services through customization

• Instantaneous exchanges• Collect and analyze data

Consumers

• Power• Information• Computers, phones, PDA,

GPS, smart TV

Chapter One Slide

The Mobile Consumer

• Wireless Media Messages will expand as:– Flat-rate data traffic

increases– Screen image quality

is enhanced– Consumer-user

experiences with web applications improve


Penetration of Internet Usage Among Mobile Subscribers in 16 Countries - FIGURE 1.3

http://www.marketingcharts.com/

Consumer Behavior Is Interdisciplinary

Psychology

Sociology

Social psychologyAnthropology

Economics


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Outlook of this course

• Part one: introduction of consumer behavior (chp1, chp2)

• Part two: psychological characteristics of consumer (chp4, chp5, chp6, chp7 & chp8)

• Part three: social and culture influences on consumer behavior (chp7, chp8, chp10, chp11 and chp 13)

• Consumer decision making process: chp 14

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Summary

• To Understand What Consumer Behavior Is

• Role of Marketing:– Satisfy customers needs and wants• Different marketing orientations

• STP framework

– Build long-term relationship with consumers


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mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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Consumer Behavior: Meeting Changes and Challenges CHAPTER ONE.

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