Consumer Behaviour - Chapter 1.0

1. CHAPTER 01
Consumer
Behavior and
Marketing
Strategy
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 1-2
PART I: INTRODUCTION

3. L01
L02
L03
L05
L04
Define consumer behavior
Summarize the applications of consumer behavior
Explain how consumer behavior can be used to
develop marketing strategy
Explain the components that constitute a conceptual
model of consumer behavior
Discuss issues involving consumption meanings and
firm attempts to influence them
Learning Objectives
1-3

4. Target Marketing. Just Your Average Triathlete?
 Can you predict the demographics of the
average triathlete?
 Income:
 Age:
 Gender:
 Marital Status:
Source: N. Zmuda, “Forget Golf,” Advertising Age, October 10, 2011, p. 8.
1-4
Consumer Behavior In The News…

5. Target Marketing. Just Your AverageTriathlete?
 Demographics of the average triathlete?
 Income: $126,000
 Age: 38 Years Old
 Gender: 60% Male
 Marital Status: 63% Married
 Key Target Market: Higher income corporate
executives who spend heavily on the sport.
Source: N. Zmuda, “Forget Golf,” Advertising Age, October 10, 2011, p. 8.
1-5
Consumer Behavior In The News…

6. Consumer behavior is the
study of individuals, groups, or
organizations and the processes
they use to select, secure, use,
and dispose of products,
services, experiences, or ideas
to satisfy needs and the impacts
that these processes have on
the consumer and society.
1-6
Consumer Behavior and Marketing Strategy

7. 1. Marketing Strategy
2. Regulatory Policy
3. Social Marketing
4. Informed Individuals
1-7
Applications in Consumer Behavior

8. United Way Campaign
Provides an Example of
Social Marketing
Courtesy United Way of Metropolitan Chicago
1-8
Applications in Consumer Behavior

9. 1-9
Marketing Strategy and Consumer Behavior

10. 1. The Consumers
2. The Company
3. The Competitors
4. The Conditions
1-10
Market Analysis Components

11. Market segmentation
is a portion of a larger
market whose needs
differ from the larger
market.
1-11
Market Segmentation

12. Market Segmentation Involves Four Steps:
1. Identifying Product-Related Need Sets
2. Grouping Customers with Similar Need Sets
3. Describing Each Group
4. Selecting an Attractive Segment(s) to Serve
1-12
Market Segmentation

13. 1-13
Market Segmentation

14.  Marketing Strategy is the answer to the question:
How will we provide superior customer value to our
target market?
 This requires the formulation of a consistent
marketing mix, which includes the
1. Product
2. Communications
3. Price
4. Distribution, and
5. Services
1-14
Marketing Strategy

15. The following Video Clip shows how
digital signage (the communications
element) keeps the marketing message
fresh!
1-15
Video Application

16. 1-16

17. The consumer decision process intervenes between
the marketing strategy, as implemented in the
marketing mix, and the outcomes.
The firm can succeed only if consumers see a need
that its product can solve, become aware of the
product and its capabilities, decide that it is the best
available solution, proceed to buy it, and become
satisfied with the result of the purchase.
1-17
Consumer Decisions

18. 1. Firm Outcomes
2. Individual Outcomes
3. Society Outcomes
1-18
Outcomes

19. Creating Satisfied Customers
1-19
Pella Windows on Creating Satisfied Customers
through Quality
YouTube Spotlight
Outcomes

20. Overall Conceptual Model of Consumer Behavior
1-20
The Nature of Consumer Behavior

21. External Influences
• Culture
• Demographics and social stratification
• Ethnic, religious, and regional subcultures
• Families and households
• Groups
1-21
The Nature of Consumer Behavior

22. Internal Influences
• Perception
• Learning
• Memory
• Motives
• Personality
• Emotions
• Attitudes
1-22
The Nature of Consumer Behavior

23. Self-Concept and Lifestyle
Self-concept is the totality of an
individual’s thoughts and
feelings about oneself.
Lifestyle is how one lives,
including the products one buys,
how one uses them, what one
thinks about them, and how one
feels about them.
1-23
The Nature of Consumer Behavior

24. Situations and Consumer Decisions
Consumer decisions
result from perceived
problems and
opportunities.
Consumer problems arise
in specific situations and
the nature of the situation
influences the resulting
consumer behavior.
Using Outdoor Media to Trigger Problem Recognition
1-24
The Nature of Consumer Behavior

25.  Consumption has meaning beyond satisfaction
of minimum or basic consumer needs
 Symbolic needs
 Status
 Identity
 Group acceptance
The Meaning of Consumption
1-25