Schiffman CB10 PPT 01
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Transcript of Schiffman CB10 PPT 01
Consumer Behavior: Meeting Changes and
Challenges
CHAPTERONE
Learning Objectives
1. To Understand What Consumer Behavior Is and the Different Types of Consumers.
2. To Understand the Relationship Between Consumer Behavior and the Marketing Concept, the Societal Marketing Concept, as Well as Segmentation, Targeting, and Positioning.
3. To Understand the Relationship Between Consumer Behavior and Customer Value, Satisfaction, Trust, and Retention.
4. To Understand How New Technologies Are Enabling Marketers to Better Satisfy the Needs and Wants of Consumers.
Copyright 2010 Pearson Education, Inc. 2Chapter One Slide
Learning Objectives (continued)
5. To Understand How Marketers Are Increasingly Able to Reach Consumers Wherever Consumers Wish to Be Reached.
6. To Understand How the World’s Economic Condition Is Leading to Consumption Instability and Change.
7. To Understand the Makeup and Composition of a Model of Consumer Behavior.
8. To Understand the Structure of This Book
Copyright 2010 Pearson Education, Inc. 3Chapter One Slide
To Which Segment ofConsumers Will This Ad Appeal?
Chapter One Slide 4Copyright 2010 Pearson Education, Inc.
A Segment of Consumers Who are Environmentally Concerned
Copyright 2010 Pearson Education, Inc. Chapter One Slide 5
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.
Copyright 2010 Pearson Education, Inc. 6Chapter One Slide
Two Consumer Entities
Copyright 2010 Pearson Education, Inc. 7Chapter One Slide
Development of the Marketing Concept
Copyright 2010 Pearson Education, Inc. 8Chapter One Slide
Production Orientation
• From the 1850s to the late 1920s• Companies focus on production capabilities• Consumer demand exceeded supply
Copyright 2010 Pearson Education, Inc. 9Chapter One Slide
Sales Orientation
• From the 1930s to the mid 1950s• Focus on selling• Supply exceeded customer demand
Copyright 2010 Pearson Education, Inc. 10Chapter One Slide
Marketing Concept
• 1950s to current - Focus on the customer!• Determine the needs and wants of specific
target markets• Deliver satisfaction better than competition
Copyright 2010 Pearson Education, Inc. 11Chapter One Slide
Discussion Questions
1. What two companies do you believe grasp and use the marketing concept?
2. Why do you believe this?
Copyright 2010 Pearson Education, Inc. Chapter One Slide 12
Societal Marketing Concept
• Considers consumers’ long-run best interest
• Good corporate citizenship
Copyright 2010 Pearson Education, Inc. Chapter One Slide 13
The Marketing Concept
• Consumer Research• Segmentation• Market Targeting• Positioning
• The process and tools used to study consumer behavior
Copyright 2010 Pearson Education, Inc.
Embracing the Marketing Concept
Chapter One Slide 14
The Marketing Concept
• Consumer Research• Segmentation• Market Targeting• Positioning
• Process of dividing the market into subsets of consumers with common needs or characteristics
Copyright 2010 Pearson Education, Inc.
Implementing the Marketing Concept
Chapter One Slide 15
Discussion Questions
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?
Copyright 2010 Pearson Education, Inc. 16Chapter One Slide
The Marketing Concept
• Consumer Research• Segmentation• Market Targeting• Positioning
The selection of one or more of the segments identified to pursue
Copyright 2010 Pearson Education, Inc.
Implementing the Marketing Concept
Chapter One Slide 17
The Marketing Concept
• Consumer Research• Segmentation• Market Targeting• Positioning
• 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
Copyright 2010 Pearson Education, Inc.
Implementing the Marketing Concept
Chapter One Slide 18
The Marketing Mix
Copyright 2010 Pearson Education, Inc. 19Chapter One Slide
Customer Value, Satisfaction, Trust, and Retention
Copyright 2010 Pearson Education, Inc. 20Chapter One Slide
Successful Relationships
• 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
Copyright 2010 Pearson Education, Inc.
Value, Satisfaction, Trust, and Retention
Chapter One Slide 21
Discussion Questions
• How does McDonald’s create value for the consumer?
• How do they communicate this value?
Copyright 2010 Pearson Education, Inc. 22Chapter One Slide
Successful Relationships
• 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.
Value, Satisfaction, Trust, and Retention
Chapter One Slide 23
Successful Relationships
• Customer Value• Customer
Satisfaction• Customer Trust• Customer
Retention
Copyright 2010 Pearson Education, Inc.
• Establishing and maintaining trust is essential.
• Trust is the foundation for maintaining a long-standing relationship with customers.
Value, Satisfaction, Trust, and Retention
Chapter One Slide 24
Successful Relationships
• Customer Value• Customer
Satisfaction• Customer Trust• Customer
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.
Value, Satisfaction, Trust, and Retention
Chapter One Slide 25
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
Copyright 2010 Pearson Education, Inc. Chapter One Slide 26
Customer Profitability-Focused Marketing
• Tracks costs and revenues of individual consumers
• Categorizes them into tiers based on consumption behavior
• A customer pyramid groups customers into four tiers
Copyright 2010 Pearson Education, Inc. 27Chapter One Slide
Copyright 2010 Pearson Education, Inc.Chapter One Slide 28
THE TRADITIONAL MARKETING CONCEPT VALUE- AND RETENTION-FOCUSED MARKETING
Make only what you can sell instead of trying to sell what you make.
Use technology that enables customers to customize what you make.
Do not focus on the product; focus on the need that it satisfies.
Focus on the product’s perceived value, as well as the need that it satisfies.
Market products and services that match customers’ needs better than competitors’ offerings.
Utilize an understanding of customer needs to develop offerings that customers perceive as more valuable than competitors’ offerings.
Research consumer needs and characteristics. Research the levels of profit associated with various consumer needs and characteristics.
Understand the purchase behavior process and the influences on consumer behavior.
Understand consumer behavior in relation to the company’s product.
Realize that each customer transaction is a discrete sale.
Make each customer transaction part of an ongoing relationship with the customer.
Impact of Digital Technologies
Copyright 2010 Pearson Education, Inc. 29Chapter 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
Copyright 2010 Pearson Education, Inc. 30Chapter One Slide
Penetration of Internet Usage Among Mobile Subscribers in 16 Countries - FIGURE 1.3
Consumer Behavior Is Interdisciplinary
Copyright 2010 Pearson Education, Inc. 31Chapter One Slide
A Simple Model of Consumer Decision Making - Figure 1.4
Chapter One Slide 32Copyright 2010 Pearson Education, Inc.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc.
33Copyright 2010 Pearson Education, Inc. Chapter Seven Slide