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Chapter 1

Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK. Chapter 1. Introduction: The Impact of the Digital Revolution on Consumer Behavior. Objectives of One-to-One Marketing. To attain customers Sell them more products Make a profit. Digital Revolution in the Marketplace.

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Chapter 1

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  1. Consumer Behavior,Eighth EditionSCHIFFMAN & KANUK Chapter 1 Introduction: The Impact of the Digital Revolution on Consumer Behavior

  2. Objectives of One-to-One Marketing • To attain customers • Sell them more products • Make a profit

  3. Digital Revolution in the Marketplace • Allows customization of products, services, and promotional messages like never before • Enhances relationships with customers more effectively and efficiently

  4. Increased consumer power Access to information More products and services Interactive and instant exchanges Access to customer patterns and preferences Evolution to other -Web connection PDAs HDTV Mobile phones Changes in the Business Environment

  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.

  6. Personal Consumer The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.

  7. Organizational Consumer A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.

  8. Development of the Marketing Concept Production Concept Product Concept Selling Concept Marketing Concept

  9. The Production Concept • Assumes that consumers are interested primarily in product availability at low prices • Marketing objectives: • Cheap, efficient production • Intensive distribution • Market expansion

  10. The Product Concept • Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features • Marketing objectives: • Quality improvement • Addition of features • Tendency toward Marketing Myopia

  11. The Selling Concept • Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so • Marketing objectives: • Sell, sell, sell • Lack of concern for customer needs and satisfaction

  12. The Marketing Concept • Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition • Marketing objectives: • Profits through customer satisfaction

  13. Business Leaders Who Understood Consumer Behavior • Alfred Sloan, General Motors • Colonel Sanders, KFC • Ray Kroc, McDonald’s

  14. The Marketing Concept A consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own organizational goals.

  15. Implementing the Marketing Concept • Consumer Research • Segmentation • Targeting • Positioning

  16. Consumer Research • The process and tools used to study consumer behavior.

  17. Segmentation, Targeting, and Positioning • Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics • Targeting: selecting one ore more of the segments to pursue • Positioning: developing a distinct image for the product in the mind of the consumer

  18. Communicating the benefits of the product, rather than its features Communicating a Unique Selling Proposition for the product Successful Positioning

  19. The Marketing Mix • Product • Price • Place • Promotion

  20. Successful Relationships Customer Value Customer Retention Customer Satisfaction

  21. Loyalists Apostles Defectors Terrorists Hostages Types of Customers

  22. Customer Profitability-Focused Marketing Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead

  23. Societal Marketing Concept A revision of the traditional marketing concept that suggests that marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole.

  24. The Societal Marketing Concept • All companies prosper when society prospers. • Companies, as well as individuals, would be better off if social responsibility was an integral component of every marketing decision. • Requires all marketers adhere to principles of social responsibility.

  25. Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Input External Influence Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Process Consumer Decision Making Experience Figure 1-1: A Model of Consumer Decision Making Purchase 1. Trial 2. Repeat purchase Post-Decision Behavior Output Postpurchase Evaluation

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