Schiffman CB10 PPT 01

CHAPTER
ONE
Consumer Behavior:
Meeting Changes and
Challenges
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. publishing as Prentice Hall Chapter One Slide 2
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
To Which Segment of
Consumers Will This Ad Appeal?
A Segment of Consumers Who are
Environmentally Concerned
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.
Two Consumer Entities
Development of the
Marketing Concept
Production Orientation
• From the 1850s to the late 1920s

• Companies focus on production capabilities
• Consumer demand exceeded supply
Sales Orientation
• From the 1930s to the mid 1950s

• Focus on selling
• Supply exceeded customer demand
Marketing Concept
• 1950s to current - Focus on the customer!

• Determine the needs and wants of specific
target markets
• Deliver satisfaction better than competition
Discussion Questions
1. What two companies do

you believe grasp and use
the marketing concept?
2. Why do you believe this?
Societal Marketing Concept
• Considers consumers’
long-run best interest
• Good corporate
citizenship
The Marketing Concept
Embracing the Marketing
Concept
• Consumer Research • The process and tools
• Segmentation used to study consumer
• Market Targeting behavior
• Positioning
Implementing the
Marketing Concept
• Consumer Research • Process of dividing the
• Segmentation market into subsets of
• Market Targeting consumers with
common needs or
• Positioning characteristics
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?
Implementing the
Marketing Concept
• Consumer Research The selection of one or
• Segmentation more of the segments
• Market Targeting identified to pursue
• Positioning
Implementing the
Marketing Concept
• Consumer Research • Developing a distinct image for
the product in the mind of the
• Segmentation consumer
• Market Targeting • Successful positioning includes:
• Positioning – Communicating the benefits
of the product
– Communicating a unique
selling proposition
The Marketing Mix
Customer Value, Satisfaction, Trust,
and Retention
Successful Relationships
Value, Satisfaction,
• Defined as the ratio between
Trust, and Retention the customer’s perceived
• Customer Value benefits and the resources
• Customer used to obtain those
Satisfaction benefits
• Customer Trust • Perceived value is relative
and subjective
• Customer
Retention • Developing a value
proposition is critical
• How does McDonald’s

create value for the
consumer?
• How do they
communicate this
value?
Trust, and Retention
• The individual's perception
• Customer of the performance of the
Value product or service in
• Customer relation to his or her
Satisfaction expectations.
• Customer Trust • Customer groups based on
• Customer loyalty include loyalists,
Retention apostles, defectors,
terrorists, hostages, and
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall mercenaries Chapter One Slide 23
Trust, and Retention • Establishing and
• Customer Value maintaining trust is
• Customer essential.
Satisfaction
• Trust is the
• Customer Trust
foundation for
• Customer
Retention maintaining a long-
standing relationship
with customers.
Value, Satisfaction, • The objective of providing
Trust, and Retention value is to retain highly
satisfied customers.
• Customer Value
• Loyal customers are key
• Customer
– They buy more products
Satisfaction
– They are less price
• Customer Trust sensitive
• Customer – Servicing them is cheaper
Retention
– They spread positive
word of mouth
Top 10 Ranked U.S. Companies in Terms of
Consumers’ Trust and Respect of Privacy
Table 1.2
Top 10 Companies
• American Express
• eBay
• IBM
• Amazon
• Johnson & Johnson
• Hewlett-Packard
• U.S. Postal Service
• Procter and Gamble
• Apple
• Nationwide
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
THE TRADITIONAL MARKETING CONCEPT VALUE- AND RETENTION-FOCUSED
MARKETING
Make only what you can sell instead of trying Use technology that enables customers to
to sell what you make. customize what you make.
Do not focus on the product; focus on the Focus on the product’s perceived value, as well
need that it satisfies. as the need that it satisfies.
Market products and services that match Utilize an understanding of customer needs to
customers’ needs better than competitors’ develop offerings that customers perceive as
offerings. 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 Understand consumer behavior in relation to

and the influences on consumer behavior. the company’s product.
Realize that each customer transaction is a Make each customer transaction part of an
discrete sale. ongoing relationship with the customer.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Chapter One Slide 28
Impact of Digital Technologies
The Mobile Consumer
Penetration of Internet Usage Among Mobile
• Wireless Media Subscribers in 16 Countries - FIGURE 1.3
Messages will
expand as:
– Flat-rate data traffic
increases
– Screen image
quality is enhanced
– Consumer-user
experiences with
web applications
improve
Consumer Behavior Is
Interdisciplinary
A Simple Model of Consumer Decision Making - Figure 1.4

Schiffman CB10 PPT 01

Uploaded by

Copyright:

Available Formats

Schiffman CB10 PPT 01

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Schiffman CB10 PPT 01

Uploaded by

Copyright:

Available Formats

CHAPTER

5. To Understand How Marketers Are Increasingly

• The behavior that consumers display in

• From the 1850s to the late 1920s

• From the 1930s to the mid 1950s

• 1950s to current - Focus on the customer!

1. What two companies do

1. What products that you regularly purchase

• How does McDonald’s

Understand the purchase behavior process Understand consumer behavior in relation to

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

You might also like