© 2018 Cengage Learning®. May not be scanned, copied or duplicat

© 2018 Cengage Learning®. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole
or in part.
© 2018 Cengage Learning.® May not be scanned, copied or
or in part.
1
2
Customer Behavior
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2. 2
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2.
2
Marketing Framework
3
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2.
Discussion Question #1
Describe the process you used when you decided which college
to attend.
4
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2.
The Science of Consumer Behavior
There are known, reliable patterns that comprise consumer
behavior, including:
The phases consumers go through when making a purchase
The different kinds of purchases that consumers make
How consumers sense and perceive, become motivated, form
attitudes, and make decisions
The cultural differences that influence consumers
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2.
The Purchase Process
6
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2.

Pre-Purchase Phase
Customers recognize a need/desire
Some are heavily marketer influenced; some are not
e.g., Having trendy clothes vs. needing to eat
Customers search and evaluate products that address their need
e.g., Conduct online search, ask friends, etc.
Customers create a consideration set
All brands considered as candidates for purchase
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or in part.
2.
Discussion Questions #2
What need/desire drove you to consider “purchasing” college?
How did you search for information?
Which colleges were in your consideration set?
What criteria did you utilize to form this set?
8
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2.
Purchase Phase
Customers narrow the consideration set
Customer may delay the purchase
Customer may decide not to purchase
Customers decide on retail channel

9
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2.
Post-Purchase Phase
Customers assess the purchase and the purchase process
Customers determine satisfaction
Did the customer get what he expected?
Customers’ level of satisfaction leads to
Repeat purchases
Negative or positive word of mouth
Product returns, etc.
10
or in part.
2.
Are you satisfied with your college decision? Why or why not?
Could your level of satisfaction affect the college? If so, how?
11
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2.
Who Utilizes the Purchase Process?
Business-to-Consumer (B2C) and Business-to-Business (B2B)

both utilize the buying process
The amount of time spent on a stage depends upon what is being
bought
A business customer is an agent buying something on behalf of
an organization
e.g., Administrative assistants, operations department, etc.
12
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2.
Three Types of Consumer Purchases
(slide 1 of 2)
Convenience purchases
Low involvement; standard, frequently consumed goods or
impulse purchase
Consumers don’t spend much time thinking or planning the
purchase
Shopping purchases
Medium involvement; not as frequently purchased
Consumers spend time and effort prior to purchase
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2.
Three Types of Consumer Purchases
(slide 2 of 2)
Specialty purchases
High involvement; occasional purchases, often more expensive,
require more thought

Customers put much effort into the purchase
14
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2.
Types of Business Purchases
Straight rebuy
Low involvement; purchase what was purchased last time with
little or no thought
Modified rebuy
Medium involvement; something about the purchase is altered
requiring some thought
New buy
High involvement; purchase something that hasn’t been
purchased before requiring much thought and planning
15
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2.
Types of Purchases
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2.

Low-Involvement Purchases
Low-involvement purchases
Have more price sensitivity
Use price discounts
Generally don’t generate word of mouth
Are usually distributed intensively
Marketers should focus on how to capture consumers’ attention
17
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2.
High-Involvement Purchases
High-involvement purchases
Have less price sensitivity
Use brand communities and events
May generate word of mouth
Are usually distributed selectively
Marketers should focus on providing consumers with
information
18
or in part.
2.
Anatomy of a Grocery Store
Layout of a grocery store encourages purchases
Group similar products
Group complementary products
Place common purchases far from the entrance
Group products to form consideration sets

Place high-profit and impulse-purchase items at end of aisles
and checkout lanes
19
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2.
Sensation and Perception
(slide 1 of 5)
Utilize senses to convey information
Consumers have selective attention; they block out what is not
relevant
Visual: colors can convey
Product characteristics (white for freshness for toothpaste)
Brand identity (Tiffany’s aqua blue)
Meaning (affected by culture)
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2.
(slide 2 of 5)
Hearing can
Increase spending
e.g., Quick tempo music = increased spending
Convey a brand
e.g., Harley-Davidson’s distinctive sound
Smell can
Get attention
e.g., Smelling the Cinnabon store

Allow product sampling
e.g., Perfume in magazines
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2.
(slide 3 of 5)
Taste can
Distinguish one brand from another
e.g., Coke vs. Pepsi
Touch can
Convey brand imagery
e.g., Well-designed products compared to value designed
products
e.g., Ergonomics, clean lines, simplicity, beauty, and sensual
experiences
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2.
(slide 4 of 5)
Subliminal advertising
An ad that is shown so quickly that is doesn’t meet the
threshold of liminal recognition
Has been debunked by research
23

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2.
(slide 5 of 5)
Mere exposure
Repeated exposure to an ad brings familiarity and a positive
feeling
Perceptual fluency
Customers may pay the most attention to the content of a
message
However, the colors, font, etc. make a brand impression as well
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2.
Learning, Memory, and Emotions
Sensory and perceptual impressions can become brand
associations
Learning is the process by which associations get past the
sensory and perception stages into short-term memory and then,
with repetition and elaboration, into long-term memory
Classical and operant conditioning
25
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2.

Classical Conditioning
(slide 1 of 2)
Pavlov’s dogs
Stage 1: a dog drools at sight of food
Stage 2: a dog doesn’t respond to a bell
Stage 3: ringing a bell while placing food in front of the dog
elicits drool
Stage 4 (occurs over time): a bell rung in front of the dog elicits
drool
A similar process can be used in advertising and jingles
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2.
Classical Conditioning
(slide 2 of 2)
Companies may have negative brand associations in customers’
memories
Some companies change names to help create new associations
e.g., Philip Morris is now Altria
e.g., ValuJet is now AirTran
27
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2.

Use classical conditioning theory to explain this advertisement.
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2.
Operant Conditioning
Skinner used pigeons to show that learning occurs by positively
reinforcing behavior
Fixed ratio reward: reward is given every time or every 4th
time, etc.
Variable ratio reward: reward timing varies unpredictably
Subject will engage in the behavior more often if rewarded on
the variable schedule
29
or in part.
2.
Discuss how a deli could utilize operant conditioning to design
a loyalty program under
fixed ratio reward, and
variable ratio reward
Which reward ratio do you think would be more effective and
why?
30

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2.
Motivation: Hierarchy of Needs
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2.
Maslow’s Hierarchy of Needs
(slide 1 of 2)
Maslow suggests that people must have their basic needs met
before moving on to more abstract needs
Marketers may identify their product with one of Maslow’s
needs
e.g., Volvo and safety needs
Many brands are associated with a sense of belonging, social
acceptance, and respect
32
or in part.
2.
Maslow’s Hierarchy of Needs
(slide 2 of 2)
Marketers may identify products with aspiration groups
Marketers may offer an extended brand line for customers at
different levels in Maslow’s hierarchy

e.g., Mercedes has a lower-end C model, then upward to E, S,
and finally CL models
Marketers use hierarchy for positioning
33
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2.
Distinguishing Motivations
Utilitarian vs. hedonic
e.g., Suit for interviews vs. Armani suit
Conformity vs. individuality
May vary over lifetime or in different situations
Risk seeking vs. risk averse
Risk tolerance may vary with product knowledge
34
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2.
Attitudes and Decision Making
Attitudes and decision making influence whether consumers
Will buy a brand
Repeatedly purchase it
Become loyal
Recommend it to others, etc.
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2.
What Are Attitudes?
Attitudes are a mix of beliefs and importance weights
Beliefs
e.g., I think Sprite has caffeine
Importance
e.g., I think having caffeine is important
Customer may differ on both importance and beliefs
36
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2.
Decision Making
(slide 1 of 3)
Decision making:
With a few choices, consumers easily compare brands to make
decision
With many choices, consumers use two stages:
Stage 1: Determine consideration set
Stage 2: Compare brands to make a purchase decision
37
or in part.
2.
Decision Making
(slide 2 of 3)
Stage 1
Non-compensatory method: if a brand doesn’t have important
attributes, it is cut

Lexicographic method: compare all brands on most important
attribute; cut brands that don’t have it; move on to next
important attribute and compare and cut, etc.
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2.
Decision Making
(slide 3 of 3)
Stage 2: Compare brands in detail
Compensatory model (cost/benefits)
One excellent attribute can compensate for a poor attribute
Some websites aid this process by allowing users to view a side -
by-side comparison of attributes
39
or in part.
2.
Cultural Differences
Socio-cultural differences influence consumers and produce
shopping patterns
Social class
e.g., Old-monied people seek exclusivity; nouveaus indulge in
conspicuous consumption
Age
e.g., Young people buy furniture; as they get older they buy
diapers and minivans; then college and finally healthcare

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2.
How can a marketer capitalize on the Baby Boomer segment?
41
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2.
Managerial Recap
(slide 1 of 2)
Three major phases of consumption
Pre-purchase, purchase, post-purchase
Three major classes of purchases
B2C: convenience, shopping, specialty
B2B: straight rebuy, modified rebuy, new buy
Involvement determines class
42
or in part.
2.
Managerial Recap
(slide 2 of 2)

How do consumers think?
Sensing and perceiving information that is learned and stored in
memory
Motivations help marketers understand what consumers are
seeking to satisfy
Attitudes and decision making are subject to influence by good
information and biases
Social norms define consumers
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2.
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1
1
Why Is
Marketing Management Important?
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1.
2

‹#›
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1.
2
What is the definition of marketing?
What can be marketed?
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1.
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1.
Marketing Defined
Marketing is defined as an exchange between a firm and its
customers
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1.
What Can We “Market”?
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1.
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1.
Evolution of Modern Marketing
Product/production orientation
Focus on building a better gadget
Sales orientation
Focus on convincing the customer that your product works best
for them
Customer orientation
Focus on identifying customers’ wants BEFORE formulating
attractive solutions
6
1.
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1.

Which orientation do you think would mostly likely lead to an
exchange?
Who do you think is responsible for marketing?
7
1.
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1.
Who Is Responsible for Marketing?
Marketing and customer satisfaction is everyone’s
responsibility
Marketing should permeate the firm
Accounting/finance
Sales
Research and development
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1.
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1.

Reasons to Measure Marketing Success
Pressure to show results
Ensure that the chief marketing officer (CMO) carries as much
weight as the CEO, CFO, or COO
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1.
Measuring Marketing Success
(slide 1 of 2)
Quantify results when possible
Sometimes the effectiveness of marketing programs is easy to
quantify
Did the coupon promotion lift sales?
Measure the percentage sales increase, etc.
Did the direct mail campaign increase web usage?
Measure the number of web visits, etc.
10
1.
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1.
Measuring Marketing Success

(slide 2 of 2)
However, sometimes the effectiveness is not easy to quantify
Was the segmentation study effective?
Difficult to quantify
Did the advertising campaign increase sales?
Difficult to quantify because great advertising is geared toward
long-term brand building not short-term results
11
1.
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1.
Marketing Management Framework
The 5Cs, STP, and the 4Ps constitute the marketing management
framework
12
1.
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1.
5Cs
(slide 1 of 3)
Customer

The firm’s current and potential customers
What are current customers’ preferences, buying trends, etc.?
What are potential customers’ preferences? Should they be
targeted?
Company
The firm’s capabilities, resources, etc.
What does it do well?
What doesn’t it do well?
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1.
5Cs
(slide 2 of 3)
Context
Macro-environmental forces facing the firm
What is going on politically or legally that might affect the
firm?
What is going on with the economy that might affect the firm?
What trends are occurring in society that might affect the firm?
What technological innovations might affect the firm?
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1.
5Cs
(slide 3 of 3)
Collaborators
The companies/people firm works with
Are these relationships strong? Can these relationships be
improved or leveraged?
Competitors
The companies/people firm works against and how they
compare to the firm in terms of resources, capabilities, customer
preferences, reaction patterns, etc.
15
1.
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or in part.
1.
STP
Segmentation
Grouping customers with similar needs
Targeting
Pursuing segment who makes the most sense for the firm
Positioning
Communicating product’s benefits clearly to the intended target
Developed through the 4Ps
16

1.
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1.
4Ps
(slide 1 of 2)
Product
Goods or services customers need or want
What should constitute your product mix? What features and
benefits should comprise each product?
Price
How much should you charge given your costs, competitive
pricing, and customer demand?
17
1.
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1.
4Ps
(slide 2 of 2)
Place
How will you get the product into the customers’ hands? Will
you go directly to customers or use channel partners?
Promotion
What communications mix will you use to communicate with

your targets? What message will you use?
18
1.
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1.
Considerations
(slide 1 of 2)
The situation facing the company changes over time
Customer preferences change
Competitors change offerings
Government passes new laws, etc.
Firm must consistently monitor the 5Cs
19
1.
or in part.
or in part.
1.
Considerations
(slide 2 of 2)
5Cs, STP, and 4Ps are interdependent
As contextual factor changes, what would the impact be on
distribution channels?

As a collaborator shifts their demands, what will that do to our
pricing structure?
As our company sells off a nonperforming function, what
impact might that have on our positioning and customer
satisfaction?
Marketers must understand the interdependencies
20
1.
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or in part.
1.
Book Layout
21
1.
or in part.
or in part.
1.
Flow of Each Chapter
Each chapter covers the “What,” “Why,” and “How.”
What is the topic in this chapter?
Why does it matter?
How do I do this?
22

1.
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or in part.
1.
Managerial Recap
(slide 1 of 2)
Marketing can make customers happier and companies more
profitable
Marketing is about trying to find out what customers would
like, providing it to them, and doing so profitably
Marketing facilitates a relationship between customers and a
company
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1.
or in part.
or in part.
1.
Managerial Recap
(slide 2 of 2)
Just about anything can be marketed

The marketing management framework—5Cs, STP, 4Ps—will
structure the book
If you can remain customer-centric, you’ll be five steps ahead
of the competition
24
1.
or in part.
or in part.
1.

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