Chapter 1
Introduction: Consumer Behavior
1-1
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.
1-2
Customer & Consumer
• Customer: Anyone who regularly makes
purchases from a store or a company
• Consumer : Personal or Organizational
1-3
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.
1-4
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.
1-5
Development of the Marketing
Concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept
1-6
The Production Concept
• Assumes that consumers are interested
primarily in product availability at low
prices
• Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion
1-7
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
1-8
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
1-9
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
1-10
Business Leaders Who Understood
Consumer Behavior
• Alfred Sloan, General Motors
• Colonel Sanders, KFC
• Ray Kroc, McDonald’s
1-11
1-12
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.
1-13
Implementing the Marketing
Concept
• Consumer Research
• Segmentation
• Targeting
• Positioning
1-14
Consumer Research
• The process and tools used to study
consumer behavior.
• Two perspectives:
– Positivist approach
– Interpretivist approach
1-15
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
1-16
Successful Positioning
• Communicating the • Communicating a
benefits of the Unique Selling
product, rather than Proposition for the
its features product
1-17
The Marketing Mix
• Product
• Price
• Place
• Promotion
1-18
Successful Relationships
Customer Customer
Value Retention
Customer
Satisfaction
1-19
Types of Customers
• Loyalists • Terrorists
• Hostages
• Apostles
• Mercenaries
• Defectors
1-20
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.
1-21
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.
1-22
External Influence
Sociocultural Environment
Firm’s Marketing Efforts 1. Family
1. Product 2. Informal sources
Input 2. Promotion 3. Other noncommercial
3. Price sources
4. Channels of distribution 4. Social class
Consumer Decision Making 5. Subculture and culture
Psychological Field
Need 1. Motivation
Recognition 2. Perception
3. Learning
Prepurchase 4. Personality
Process
Search 5. Attitudes
Evaluation of
Alternatives Experience
Purchase Figure 1-1:
Post-Decision
Behavior
1. Trial
2. Repeat purchase
A Model of
Output
Consumer
Postpurchase Evaluation
Decision
1-23
Making