This document provides an overview of key concepts in consumer behavior and technology. It discusses the evolution of the marketing concept to focus on satisfying consumer needs. Technology has benefited both marketers and consumers by enabling value exchanges through customized products and access to information in exchange for consumer data. Technology has also enhanced customer loyalty by allowing brands to engage consumers and add value through more personalized experiences. The document stresses that marketers have social responsibilities to incorporate social goals and act ethically. It introduces the concepts of consumer decision-making processes and how understanding consumer behavior can help graduates seek employment in fields like brand management, advertising, and consumer research.
This document provides an overview of marketing management concepts including:
1. It defines marketing management as the analysis, planning, implementation, and control of programs to create exchanges that satisfy objectives.
2. It describes the 4Ps of the marketing mix - product, price, promotion, and place - which are tools that marketers use to achieve their goals.
3. It explains the product lifecycle and how marketing strategies must change as a product moves through the stages of introduction, growth, maturity, and decline.
This document discusses consumer learning objectives including understanding the elements of learning, behavioral learning, classical conditioning, instrumental conditioning, observational learning, and how consumers process information. It also discusses measuring the outcomes of consumer learning and the impact of involvement and passive learning on purchase decisions. Key learning concepts covered are the four elements of learning, classical and instrumental conditioning, stimulus generalization and discrimination, information processing and storage, and measures of recall and brand equity.
This document summarizes how marketing practices are changing to adapt to the new economy. Specifically, it discusses how the rise of e-business, emphasis on website design and customer relationship management (CRM) have impacted marketing. E-business growth has led companies to conduct more business online through various domains like B2C, B2B, C2C and C2B. CRM allows companies to customize offerings for each customer through detailed customer databases and one-to-one marketing.
Consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items. It looks at how products or services are selected, purchased, and disposed of. Understanding consumer behavior is important for businesses as it helps with segmentation, identifying opportunities and threats, and formulating effective marketing strategies. Several models have been developed to understand and explain the various factors that influence consumer decision making.
Ch 17 consumer behavior and promotion strategyHadi Pranoto
This document discusses various types of promotion strategies including advertising, sales promotions, personal selling, publicity, and the promotion mix. It describes the communication process involved in promotions and how marketers can analyze consumer-product relationships to determine the appropriate promotion strategy. The key goals of promotion communications are to stimulate category need, create brand awareness, develop brand attitudes, and influence brand purchase intentions. Effective promotion requires determining objectives, budgets, and designing integrated promotion strategies tailored to specific target markets and consumer-product relationships.
This document provides an overview of consumer behavior and the consumer buying process. It defines consumer behavior as the study of how consumers make purchasing decisions and outlines several key factors that influence those decisions, including cultural, social, personal, and psychological forces. It then describes the common roles that individuals play in the buying process, such as the initiator, influencer, decider, buyer, and user. Finally, it outlines the five main stages of the consumer buying decision process: problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.
Social, Ethical and Legal Issues in Selling.Awais Lakho
This document discusses several social, ethical, and legal issues related to selling. Some of the major issues identified are high pressure selling tactics that persuade unnecessary purchases, planned obsolescence where products are designed to go obsolete to drive more sales, and prioritizing high-income consumers over disadvantaged groups. Additionally, legal issues around competition, fair trade, environmental protection, and truth in advertising are important to consider within a country's commercial framework.
The document discusses various aspects of e-commerce including definitions, examples, patterns, and strategic impacts. It describes how e-commerce can be used for intra-business, business-to-business, and business-to-consumer exchanges. It provides examples of how e-commerce enables added value, differentiation, cost leadership, and a strategic focus. Key applications include improved communication, mass customization, efficiency gains, and penetrating new markets.
This document provides an overview of marketing management concepts including:
1. It defines marketing management as the analysis, planning, implementation, and control of programs to create exchanges that satisfy objectives.
2. It describes the 4Ps of the marketing mix - product, price, promotion, and place - which are tools that marketers use to achieve their goals.
3. It explains the product lifecycle and how marketing strategies must change as a product moves through the stages of introduction, growth, maturity, and decline.
This document discusses consumer learning objectives including understanding the elements of learning, behavioral learning, classical conditioning, instrumental conditioning, observational learning, and how consumers process information. It also discusses measuring the outcomes of consumer learning and the impact of involvement and passive learning on purchase decisions. Key learning concepts covered are the four elements of learning, classical and instrumental conditioning, stimulus generalization and discrimination, information processing and storage, and measures of recall and brand equity.
This document summarizes how marketing practices are changing to adapt to the new economy. Specifically, it discusses how the rise of e-business, emphasis on website design and customer relationship management (CRM) have impacted marketing. E-business growth has led companies to conduct more business online through various domains like B2C, B2B, C2C and C2B. CRM allows companies to customize offerings for each customer through detailed customer databases and one-to-one marketing.
Consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items. It looks at how products or services are selected, purchased, and disposed of. Understanding consumer behavior is important for businesses as it helps with segmentation, identifying opportunities and threats, and formulating effective marketing strategies. Several models have been developed to understand and explain the various factors that influence consumer decision making.
Ch 17 consumer behavior and promotion strategyHadi Pranoto
This document discusses various types of promotion strategies including advertising, sales promotions, personal selling, publicity, and the promotion mix. It describes the communication process involved in promotions and how marketers can analyze consumer-product relationships to determine the appropriate promotion strategy. The key goals of promotion communications are to stimulate category need, create brand awareness, develop brand attitudes, and influence brand purchase intentions. Effective promotion requires determining objectives, budgets, and designing integrated promotion strategies tailored to specific target markets and consumer-product relationships.
This document provides an overview of consumer behavior and the consumer buying process. It defines consumer behavior as the study of how consumers make purchasing decisions and outlines several key factors that influence those decisions, including cultural, social, personal, and psychological forces. It then describes the common roles that individuals play in the buying process, such as the initiator, influencer, decider, buyer, and user. Finally, it outlines the five main stages of the consumer buying decision process: problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.
Social, Ethical and Legal Issues in Selling.Awais Lakho
This document discusses several social, ethical, and legal issues related to selling. Some of the major issues identified are high pressure selling tactics that persuade unnecessary purchases, planned obsolescence where products are designed to go obsolete to drive more sales, and prioritizing high-income consumers over disadvantaged groups. Additionally, legal issues around competition, fair trade, environmental protection, and truth in advertising are important to consider within a country's commercial framework.
The document discusses various aspects of e-commerce including definitions, examples, patterns, and strategic impacts. It describes how e-commerce can be used for intra-business, business-to-business, and business-to-consumer exchanges. It provides examples of how e-commerce enables added value, differentiation, cost leadership, and a strategic focus. Key applications include improved communication, mass customization, efficiency gains, and penetrating new markets.
BB Chapter Five : Evaluating and Selecting AlternativesBBAdvisor
This chapter discusses how consumers evaluate and select alternatives. It covers the key steps in the consumer decision-making process: (1) identifying evaluative criteria, (2) measuring consumer perceptions of alternatives based on those criteria, and (3) applying decision rules to select an alternative. The chapter also examines how individual judgments can lack accuracy and be influenced by surrogate indicators. Marketers must understand consumers' evaluative criteria, perceptions, and decision rules in order to effectively position products.
Perception involves selecting, organizing, and interpreting sensory information. Sensation is the immediate response to stimuli, while perception adds interpretation. Selective perception means we notice some things more than others based on internal factors like motivation and external ones like size and motion. Gestalt principles of perceptual organization include figure/ground, grouping, closure, and good continuation. Perceptual interpretation involves applying stereotypes, judging appearances, using descriptive terms, forming first impressions, and halo effects. Positioning creates an image for a product or service in consumers' minds through communications and benefits rather than attributes. Repositioning may be needed due to competitors, lifestyle changes, or target segments.
BB Practice Essay Questions and MCQ (Part One - Chapters 1-7)BBAdvisor
The document provides a set of practice questions and multiple choice questions related to consumer behavior based on chapters 1-7 of a textbook. It includes review questions on topics like how marketing managers should view consumers and the relevance of studying consumer decision making processes. It also provides sample multiple choice questions testing concepts like the variables that influence consumer behavior and the types of situations that matter most to marketers.
This document provides an overview of financial management. It defines financial management as the activity concerned with planning and controlling a firm's financial resources. It discusses the meaning, definition, scope, objectives and evolution of financial management. Specifically, it covers short-term and long-term sources of finance, the classification of finance functions into public, private, institutional and international, and the traditional and modern approaches to the scope of financial management.
Working capital refers to a company's short-term assets and liabilities related to day-to-day operations. It measures a company's ability to pay off current liabilities with its current assets. There are several approaches to determining a company's working capital needs, including industry norms, economic modeling, and strategic choices. Key determinants of working capital needs include the nature of the business, production and business cycles, credit and production policies, growth plans, profit levels, and operating efficiency. Proper management of working capital is important for ensuring sufficient liquidity and continuity of operations.
Globalization has increased competition by allowing easier movement of goods, services, capital and information across borders. This has led companies to expand internationally to access new markets and resources. There are several approaches for entering foreign markets including exporting, joint ventures, and foreign direct investment. Companies must analyze political, economic, social, technological and other factors in foreign markets and adapt their marketing strategies to local conditions. Success requires understanding local consumer needs and regulations while maintaining a consistent brand image. International expansion can increase sales and profits but also presents challenges in managing operations across diverse and distant markets.
Consumer decision making process.ppt by aliraza afzalAliraza Afzal
Consumer behavior involves the actions people take when purchasing and using products and services. It is influenced by psychological and sociocultural factors. The consumer purchase decision process involves 5 stages - problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior. Motivation, personality, perception, learning, values, beliefs and attitudes shape consumer behavior. Sociocultural influences include personal influences like opinion leaders, reference groups, family, social class, culture and subcultures. Specific subcultures like African Americans, Hispanics and Asians in the US exhibit distinct buying patterns influenced by their unique values, ideas and attitudes.
This document provides an overview of strategic marketing and strategic management. It discusses the nature and scope of strategy, the historical evolution of strategic management, and the principal areas of strategic decisions. It also examines the differences between strategic planning and marketing planning, elements that shape competitive strategies, and the phases of strategic marketing which include strategic analysis, formulating strategy, and implementation. Finally, it discusses external environment analysis and different forms of scanning the external environment.
This document summarizes advertising and models used in advertising. It defines advertising as any paid non-personal promotion of ideas, goods, or services by an identified sponsor. The document discusses traditional advertising theories and consumer behavior models used in advertising. It specifically outlines the FCB model, which categorizes consumers as thinkers, feelers, doers, or reactors based on their involvement and thought in purchasing. For each category, the document provides examples of product types, key models used, and factors that determine advertising success, such as recall rate or attitude change. It concludes by noting some products may appeal to multiple categories in the FCB model.
BB Chapter Seven : Post Purchase Processes, Customer Satisfaction and LoyaltyBBAdvisor
The document discusses post-purchase processes, customer satisfaction, and consumer loyalty. It covers topics like post-purchase dissonance, product use and non-use, product disposal, purchase evaluation, customer satisfaction, and repeat purchase behavior. The key aspects of each topic are explained through examples and frameworks. Customer satisfaction is influenced by expectations, perceived performance across instrumental, symbolic, and affective dimensions. Dissatisfaction can lead to actions like taking no action, switching brands, or warning others.
The document discusses various topics related to consumer behavior including the difference between consumer and organizational buying, factors that influence consumer behavior, and the importance of understanding consumer behavior for marketing and public policy decisions. It provides definitions of key terms, describes the consumer decision making process, and explains how knowledge of consumer behavior can benefit companies, regulators, and social marketing programs.
This document discusses consumer motivation and needs. It defines needs as the driving force behind consumer actions and distinguishes between innate and acquired needs. Goals are what consumers aim to fulfill needs and can be generic or product-specific. Motivation can be positive or negative and rational or emotional. Needs are never fully satisfied and people set new goals as old ones are achieved. Frustration can occur when goals are not met, and people use defense mechanisms. Motivational research aims to uncover hidden motivations through qualitative techniques.
In the highly specialised study of “BUSINESS MANAGEMENT”, today, the function of “MARKETING MANAGEMENT” plays a very critical role. This is because this functional area of management :
(1) “EARNS” the revenue, &
(2) “WORKS” in the close proximity with the public or persons outside the organisation.
Controlling these two attributes to have the desired benefits are the most difficult part of the management, because none of these two are within the direct control of the marketers.
This doesn’t mean that the other functional areas are not important, but they are not “DIRECTLY” involved in the activities mentioned above.
Similarly, within the study of Marketing Management, the “Consumers” or the “Customers” play a very critical role as these are the people who finally BUY the goods & services of the Organisation, and the firm is always on the move to make them buy so as to earn revenue.
The document discusses principles of effective communication for building relationships. It covers the basic elements of communication including listening skills, questioning techniques, verbal and nonverbal communication. Specifically, it emphasizes the importance of two-way communication, addressing barriers, and using a customer-centered approach tailored to their communication preferences and styles. Active listening, asking open-ended questions, maintaining eye contact and appropriate physical distance are some keys to success.
The document discusses how marketers can use different types of consumer data for predictive analytics. It explains that websites visited can help predict purchase likelihood. Level of engagement data like pages viewed and return visits can also be used. Consumer interests, lifestyles and personalities revealed on social media can provide insights. Purchase history details such as abandoned carts and returns allow analysis of consumer behaviors. Predictive models help businesses attract, retain and profit from optimal customers.
This document provides an introduction to consumer behavior. It defines consumer behavior as the actions and decision-making processes of individuals who purchase goods and services for personal use. It also defines a customer as someone who purchases products, while a consumer is the end user of goods and services. The document discusses the nature and characteristics of Indian consumers, noting they are a heterogeneous group with a young demographic, aspirational nature, value consciousness, and diversity in religion, dress, food, and more. It also outlines factors that influence consumer behavior like personality, motivation, family, culture and advertising.
BB Chapter Fourteen : Group Influence And CommunicationBBAdvisor
This chapter discusses group influence and communication in marketing. It covers how groups function and are classified, the impact of reference groups on consumption, and how social roles influence consumption. It also discusses the importance of word-of-mouth communication and opinion leaders in shaping consumer behavior. The chapter examines the diffusion of innovations and the different adopter categories. It provides information on reference group influences, types of groups, and the role of communication and opinion leadership in the consumption process.
The document discusses market segmentation strategies used by marketers. It explains that consumers have heterogeneous needs and motivations, so marketers break the market into more homogeneous segments. Different types of segmentation are described, including demographic, geographic, psychographic, behavioral, and business-to-business versus business-to-consumer. Marketers must understand the marketplace and gather customer information to identify meaningful segments to target. Common segmentation strategies include breadth, depth, and tailored approaches. The goal of segmentation is to create tailored marketing mixes that better meet the needs of different customer groups.
Exposure, Attention and Interpretation -Consumer BehaviorAqib Syed
Exposure, Attention and Interpretation -Consumer Behavior
Exposure provides consumers with the opportunity to pay attention to available information but in no way guarantees it.
Exposure
Kinds of Exposure
Examples of exposure
Attention
Kinds of Attention
Examples of Attention
Interpretation
Kinds of Interpretation
Examples of Interpretation
This document provides an outline for a consumer behavior course. It includes 7 learning objectives that cover understanding the origins of consumer behavior, how technology has impacted both marketers and consumers, and consumer decision making processes. The objectives also address how providing value and satisfaction can enhance customer loyalty and retention. The document then provides details on the various topics that will be covered in the course, including the evolution of marketing concepts, the components of strategic marketing, and models of motivation and consumer decision making. It discusses factors like needs, goals, and how motivation and goals are interrelated.
1. The document discusses how the classic economic model of consumer behavior as rational actors seeking to maximize benefits is an oversimplification and does not account for variability and irrationality in consumer decision making.
2. It then outlines the traditional linear consumer purchase process model involving problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.
3. However, it notes that the modern consumer decision journey is non-linear with multiple touchpoints of influence from various sources, requiring marketers to engage consumers throughout the process through two-way conversations to build loyalty.
BB Chapter Five : Evaluating and Selecting AlternativesBBAdvisor
This chapter discusses how consumers evaluate and select alternatives. It covers the key steps in the consumer decision-making process: (1) identifying evaluative criteria, (2) measuring consumer perceptions of alternatives based on those criteria, and (3) applying decision rules to select an alternative. The chapter also examines how individual judgments can lack accuracy and be influenced by surrogate indicators. Marketers must understand consumers' evaluative criteria, perceptions, and decision rules in order to effectively position products.
Perception involves selecting, organizing, and interpreting sensory information. Sensation is the immediate response to stimuli, while perception adds interpretation. Selective perception means we notice some things more than others based on internal factors like motivation and external ones like size and motion. Gestalt principles of perceptual organization include figure/ground, grouping, closure, and good continuation. Perceptual interpretation involves applying stereotypes, judging appearances, using descriptive terms, forming first impressions, and halo effects. Positioning creates an image for a product or service in consumers' minds through communications and benefits rather than attributes. Repositioning may be needed due to competitors, lifestyle changes, or target segments.
BB Practice Essay Questions and MCQ (Part One - Chapters 1-7)BBAdvisor
The document provides a set of practice questions and multiple choice questions related to consumer behavior based on chapters 1-7 of a textbook. It includes review questions on topics like how marketing managers should view consumers and the relevance of studying consumer decision making processes. It also provides sample multiple choice questions testing concepts like the variables that influence consumer behavior and the types of situations that matter most to marketers.
This document provides an overview of financial management. It defines financial management as the activity concerned with planning and controlling a firm's financial resources. It discusses the meaning, definition, scope, objectives and evolution of financial management. Specifically, it covers short-term and long-term sources of finance, the classification of finance functions into public, private, institutional and international, and the traditional and modern approaches to the scope of financial management.
Working capital refers to a company's short-term assets and liabilities related to day-to-day operations. It measures a company's ability to pay off current liabilities with its current assets. There are several approaches to determining a company's working capital needs, including industry norms, economic modeling, and strategic choices. Key determinants of working capital needs include the nature of the business, production and business cycles, credit and production policies, growth plans, profit levels, and operating efficiency. Proper management of working capital is important for ensuring sufficient liquidity and continuity of operations.
Globalization has increased competition by allowing easier movement of goods, services, capital and information across borders. This has led companies to expand internationally to access new markets and resources. There are several approaches for entering foreign markets including exporting, joint ventures, and foreign direct investment. Companies must analyze political, economic, social, technological and other factors in foreign markets and adapt their marketing strategies to local conditions. Success requires understanding local consumer needs and regulations while maintaining a consistent brand image. International expansion can increase sales and profits but also presents challenges in managing operations across diverse and distant markets.
Consumer decision making process.ppt by aliraza afzalAliraza Afzal
Consumer behavior involves the actions people take when purchasing and using products and services. It is influenced by psychological and sociocultural factors. The consumer purchase decision process involves 5 stages - problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior. Motivation, personality, perception, learning, values, beliefs and attitudes shape consumer behavior. Sociocultural influences include personal influences like opinion leaders, reference groups, family, social class, culture and subcultures. Specific subcultures like African Americans, Hispanics and Asians in the US exhibit distinct buying patterns influenced by their unique values, ideas and attitudes.
This document provides an overview of strategic marketing and strategic management. It discusses the nature and scope of strategy, the historical evolution of strategic management, and the principal areas of strategic decisions. It also examines the differences between strategic planning and marketing planning, elements that shape competitive strategies, and the phases of strategic marketing which include strategic analysis, formulating strategy, and implementation. Finally, it discusses external environment analysis and different forms of scanning the external environment.
This document summarizes advertising and models used in advertising. It defines advertising as any paid non-personal promotion of ideas, goods, or services by an identified sponsor. The document discusses traditional advertising theories and consumer behavior models used in advertising. It specifically outlines the FCB model, which categorizes consumers as thinkers, feelers, doers, or reactors based on their involvement and thought in purchasing. For each category, the document provides examples of product types, key models used, and factors that determine advertising success, such as recall rate or attitude change. It concludes by noting some products may appeal to multiple categories in the FCB model.
BB Chapter Seven : Post Purchase Processes, Customer Satisfaction and LoyaltyBBAdvisor
The document discusses post-purchase processes, customer satisfaction, and consumer loyalty. It covers topics like post-purchase dissonance, product use and non-use, product disposal, purchase evaluation, customer satisfaction, and repeat purchase behavior. The key aspects of each topic are explained through examples and frameworks. Customer satisfaction is influenced by expectations, perceived performance across instrumental, symbolic, and affective dimensions. Dissatisfaction can lead to actions like taking no action, switching brands, or warning others.
The document discusses various topics related to consumer behavior including the difference between consumer and organizational buying, factors that influence consumer behavior, and the importance of understanding consumer behavior for marketing and public policy decisions. It provides definitions of key terms, describes the consumer decision making process, and explains how knowledge of consumer behavior can benefit companies, regulators, and social marketing programs.
This document discusses consumer motivation and needs. It defines needs as the driving force behind consumer actions and distinguishes between innate and acquired needs. Goals are what consumers aim to fulfill needs and can be generic or product-specific. Motivation can be positive or negative and rational or emotional. Needs are never fully satisfied and people set new goals as old ones are achieved. Frustration can occur when goals are not met, and people use defense mechanisms. Motivational research aims to uncover hidden motivations through qualitative techniques.
In the highly specialised study of “BUSINESS MANAGEMENT”, today, the function of “MARKETING MANAGEMENT” plays a very critical role. This is because this functional area of management :
(1) “EARNS” the revenue, &
(2) “WORKS” in the close proximity with the public or persons outside the organisation.
Controlling these two attributes to have the desired benefits are the most difficult part of the management, because none of these two are within the direct control of the marketers.
This doesn’t mean that the other functional areas are not important, but they are not “DIRECTLY” involved in the activities mentioned above.
Similarly, within the study of Marketing Management, the “Consumers” or the “Customers” play a very critical role as these are the people who finally BUY the goods & services of the Organisation, and the firm is always on the move to make them buy so as to earn revenue.
The document discusses principles of effective communication for building relationships. It covers the basic elements of communication including listening skills, questioning techniques, verbal and nonverbal communication. Specifically, it emphasizes the importance of two-way communication, addressing barriers, and using a customer-centered approach tailored to their communication preferences and styles. Active listening, asking open-ended questions, maintaining eye contact and appropriate physical distance are some keys to success.
The document discusses how marketers can use different types of consumer data for predictive analytics. It explains that websites visited can help predict purchase likelihood. Level of engagement data like pages viewed and return visits can also be used. Consumer interests, lifestyles and personalities revealed on social media can provide insights. Purchase history details such as abandoned carts and returns allow analysis of consumer behaviors. Predictive models help businesses attract, retain and profit from optimal customers.
This document provides an introduction to consumer behavior. It defines consumer behavior as the actions and decision-making processes of individuals who purchase goods and services for personal use. It also defines a customer as someone who purchases products, while a consumer is the end user of goods and services. The document discusses the nature and characteristics of Indian consumers, noting they are a heterogeneous group with a young demographic, aspirational nature, value consciousness, and diversity in religion, dress, food, and more. It also outlines factors that influence consumer behavior like personality, motivation, family, culture and advertising.
BB Chapter Fourteen : Group Influence And CommunicationBBAdvisor
This chapter discusses group influence and communication in marketing. It covers how groups function and are classified, the impact of reference groups on consumption, and how social roles influence consumption. It also discusses the importance of word-of-mouth communication and opinion leaders in shaping consumer behavior. The chapter examines the diffusion of innovations and the different adopter categories. It provides information on reference group influences, types of groups, and the role of communication and opinion leadership in the consumption process.
The document discusses market segmentation strategies used by marketers. It explains that consumers have heterogeneous needs and motivations, so marketers break the market into more homogeneous segments. Different types of segmentation are described, including demographic, geographic, psychographic, behavioral, and business-to-business versus business-to-consumer. Marketers must understand the marketplace and gather customer information to identify meaningful segments to target. Common segmentation strategies include breadth, depth, and tailored approaches. The goal of segmentation is to create tailored marketing mixes that better meet the needs of different customer groups.
Exposure, Attention and Interpretation -Consumer BehaviorAqib Syed
Exposure, Attention and Interpretation -Consumer Behavior
Exposure provides consumers with the opportunity to pay attention to available information but in no way guarantees it.
Exposure
Kinds of Exposure
Examples of exposure
Attention
Kinds of Attention
Examples of Attention
Interpretation
Kinds of Interpretation
Examples of Interpretation
This document provides an outline for a consumer behavior course. It includes 7 learning objectives that cover understanding the origins of consumer behavior, how technology has impacted both marketers and consumers, and consumer decision making processes. The objectives also address how providing value and satisfaction can enhance customer loyalty and retention. The document then provides details on the various topics that will be covered in the course, including the evolution of marketing concepts, the components of strategic marketing, and models of motivation and consumer decision making. It discusses factors like needs, goals, and how motivation and goals are interrelated.
1. The document discusses how the classic economic model of consumer behavior as rational actors seeking to maximize benefits is an oversimplification and does not account for variability and irrationality in consumer decision making.
2. It then outlines the traditional linear consumer purchase process model involving problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.
3. However, it notes that the modern consumer decision journey is non-linear with multiple touchpoints of influence from various sources, requiring marketers to engage consumers throughout the process through two-way conversations to build loyalty.
(1) The consumer decision journey has evolved from a linear to a non-linear process with multiple touchpoints and influences. Consumers are actively seeking information from various sources rather than passively receiving marketing messages.
(2) Marketers must align their efforts across all touchpoints of the consumer journey, including consideration, evaluation, purchase and post-purchase. They need to engage in two-way conversations and build loyalty through the customer experience.
(3) The proliferation of digital channels has created more "noise" that marketers must break through. They need new ways to get their brands considered initially and then systematically manage word-of-mouth.
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Services marketing is a sub-field of marketing, The promotion of economic activities offered by a business to its clients. Service marketing might include the process of selling telecommunications, health treatment, financial, hospitality, car rental, air travel, and professional services.
The document discusses key concepts related to e-commerce and internet marketing. It covers topics like the online marketing mix, online branding and traffic building, managing digital content, and factors that influence consumer behavior online. It also examines concepts like e-CRM in virtual worlds and how organizations can leverage customer relationship management systems to better understand customers and improve relationships. The document provides an overview of various components of e-commerce like business-to-business, business-to-consumer, and consumer-to-consumer models.
This document provides an overview of consumer behaviour and culture in a global economic environment. It discusses topics like consumer behaviour and motivation, the consumer decision making process, and the influence of culture on global marketing. The learning objectives are to explain the significance of marketing communications and consumer decision making, identify factors influencing consumer behaviour, and understand the implications of culture on global marketing.
This document provides an overview of Module 4: Digital Marketing from a tourism training program. It discusses key topics like digital marketing and consumer behavior, main communication channels in digital marketing including content marketing, email marketing, social media marketing, Google Ads, and search engine optimization. It also covers the importance of digital marketing metrics and their use in measuring performance. Finally, it discusses the importance of digital marketing for the tourism industry and provides an introduction to digital booking sites.
Overview of Consumer Behavior
The Marketing Concept
The Marketing Mix and Relationships
Digital Technologies
Societal Marketing Concept
A Simplified Model of Consumer Decision Making
This document provides an overview of key marketing topics including fundamentals of marketing, the marketing mix, customer value, product life cycle, segmentation, targeting, positioning, branding, personal selling, and DAGMAR. It was prepared by Deep J. Gurung from CHRIST deemed to be University in Bengaluru, India and covers these concepts at a high level through definitions and brief explanations.
This document provides an overview of consumer behavior and marketing concepts. It discusses the evolution from production and selling concepts to the modern marketing concept. The marketing concept focuses on determining consumer needs and delivering superior value. The document also introduces segmentation, targeting, positioning and the marketing mix. It discusses the importance of creating customer value, satisfaction and retention for business success.
Chapter 1 Consumer Behavior Its Origins And Strategic ApplicationsAvinash Kumar
This document provides an overview of consumer behavior and marketing concepts. It discusses the evolution from production and selling concepts to the modern marketing concept. The marketing concept focuses on determining consumer needs and delivering superior value. The document also introduces segmentation, targeting, positioning and the marketing mix as tools to implement the marketing concept. It discusses the importance of creating customer value, satisfaction and retention through successful relationships.
The document discusses the nature, scope and marketing mix of marketing. It defines marketing as both consumer and competitor oriented, starting with consumers and ending with consumers by satisfying their needs. It notes the long term objective is profit maximization through customer satisfaction. The document then discusses the scope of marketing, including exchange functions, physical distribution functions, facilities functions and core concepts like needs, wants, demands, market offerings, value and satisfaction, exchanges and relationships, and markets. It also defines the marketing mix as the set of controllable tactical tools including product, price, place and promotion.
This document provides an overview of key marketing concepts and principles. It defines marketing according to the American Marketing Association and others as creating and delivering value for customers. The marketing concept holds that organizations should be customer-oriented and focus on satisfying customer needs better than competitors. The document outlines different philosophies like production, product, and selling concepts, and contrasts the selling concept with the preferred marketing concept. It also explains pillars of the marketing concept like target markets, understanding customer needs, and integrating marketing activities.
Lec-2 Elements of marketing mix , its nature and scope.pptxManish Agarwal
The document discusses key elements of marketing including the 4 Ps (Product, Price, Promotion, Place) and 4 Cs (Customer Solution, Customer Cost, Communication, Convenience). It then describes the 4 As framework - Acceptability, Affordability, Accessibility, and Awareness. For each A, it provides a definition and examples to illustrate how companies can improve in that area. Finally, it lists some key aspects of marketing such as studying customer needs and behavior, product planning, branding, packaging, distribution channels, pricing, sales, promotion, and after-sales service.
This document provides an introduction and overview of key marketing management concepts:
- Marketing management involves analyzing, planning, implementing and controlling programs to facilitate exchanges between organizations and target audiences for mutual benefit.
- The core concepts of marketing include needs and wants, products and services, markets, exchanges and relationships, and customer value and satisfaction.
- Marketing serves economic, legal, managerial, and social functions and involves studying customers, products, pricing, distribution, promotion, and ensuring satisfaction.
- Understanding marketing concepts is important for organizations to meet competition, reduce costs, enter new markets, and satisfy customer demand.
This document provides an introduction to consumer behaviour. It defines consumer behaviour as the activities involved in obtaining, consuming, and disposing of products and services. Understanding consumer behaviour is important for marketing success because most new products and many existing products fail within a few years. Consumer behaviour is influenced by psychology, sociology, anthropology, economics, and other disciplines. Marketers must understand consumers' needs and motivations in order to develop products and marketing programs that deliver value and satisfaction. The rise of digital technologies has increased consumers' power and access to information.
The document is a student's summer training report on customer satisfaction with mobile service providers in India. It includes an introduction describing customer satisfaction and factors that influence it. It also discusses the telecom industry in India, including key milestones in its evolution, current market shares of public and private operators, and the global cellular industry. The report will analyze customer satisfaction data collected through surveys to draw conclusions and suggestions.
This document provides an overview of human resource management principles, approaches, and models. It discusses the principles of individual development, scientific selection, communication, participation, fair remuneration, incentives, dignity of labor, cooperation, and team spirit. It also outlines the strategic, management, human resource, commodity, proactive, and reactive approaches to HRM. The Harvard model components and Toyota model goals are defined. Finally, competitive advantage is discussed through guidelines like employment security, selective recruiting, high wages, and employee empowerment.
This document outlines the key learning objectives and content covered in Chapter 3 of the Consumer Behavior textbook. The chapter discusses how consumer motivation and personality impact consumer behavior. It covers topics like how needs, goals, and hidden motives shape decisions. It also examines personality development and traits, how brands take on personalities, and how self-image influences consumption. The key models discussed include Maslow's hierarchy of needs, Murray's psychogenic needs, and the CAD personality scale. Projective techniques for uncovering hidden motives are also outlined.
This document discusses market segmentation and real-time bidding. It covers segmenting markets based on demographics like age, gender, household type; psychographics like values and lifestyle; geodemographics; and product usage. Target markets should be identifiable, profitable, and reachable. Real-time bidding allows advertisers to target users based on their profile and location via web crawlers, predictive analytics, and ad exchanges.
The document provides learning objectives and content about consumer attitudes, including how attitudes are formed and influenced by experience, personality factors, and situations. It discusses the tri-component attitude model consisting of cognitive, affective, and conative components. It also covers how multi-attribute models can be used to change consumer attitudes by altering beliefs about product attributes or importance of attributes. Additionally, it discusses cognitive elaboration and the central and peripheral routes to persuasion as well as cognitive dissonance and attribution theory as they relate to understanding and altering consumer attitudes.
The document discusses corporate governance and strategies for maximizing shareholder wealth. It notes that while managers are tasked with pursuing strategies in the best interest of shareholders, their personal goals may instead prioritize job security, power, and salary. A number of governance mechanisms aim to ensure managers do not pursue self-interest over shareholders, including stockholder meetings, boards of directors, and stock-based compensation linking manager pay to share price. The takeover market also constrains managers from underperforming financially. Strategic decisions have ethical dimensions, and companies should establish ethical climates through leadership, mission statements, and incentive systems. When evaluating strategies, managers should consider stakeholder impacts, moral principles, and long-term profit versus other concerns
The document discusses the key components of an effective mission statement:
1. It defines the organization's business by identifying who it satisfies, what needs it meets, and how it meets those needs.
2. It articulates the organization's vision and major goals to guide strategic decisions.
3. It summarizes the organization's core values and philosophical priorities that guide management.
An effective mission statement provides direction, focuses goals, and influences strategy to maximize long-term shareholder value while balancing the interests of all stakeholders.
The document discusses the strategic management process. It describes the process as having five components: 1) selecting a mission and goals, 2) analyzing external opportunities and threats, 3) analyzing internal strengths and weaknesses, 4) choosing strategies to leverage strengths and opportunities, and 5) implementing strategies. It also discusses defining intended vs emergent strategies, and how companies can succeed through strategic intent rather than just fitting current capabilities to the environment.
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Introduction
Leonardo DiCaprio, A name synonymous with Hollywood excellence. is not only known for his stellar acting career but also for his impressive real estate investments. The "Leonardo DiCaprio house" is a topic that piques the interest of many. as the Oscar-winning actor has amassed a diverse portfolio of luxurious properties. DiCaprio's homes reflect his varied tastes and commitment to sustainability. from retreats to historic mansions. This article will delve into the fascinating world of Leonardo DiCaprio's real estate. Exploring the details of his most notable residences. and the unique aspects that make them stand out.
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Leonardo DiCaprio House: Malibu Beachfront Retreat
A Prime Location
His Malibu beachfront house is one of the most famous properties in Leonardo DiCaprio's real estate portfolio. Situated in the exclusive Carbon Beach. also known as "Billionaire's Beach," this property boasts stunning ocean views and private beach access. The "Leonardo DiCaprio house" in Malibu is a testament to the actor's love for the sea and his penchant for luxurious living.
Architectural Highlights
The Malibu house features a modern design with clean lines, large windows. and open spaces blending indoor and outdoor living. The expansive deck and patio areas provide ample space for entertaining guests or enjoying a quiet sunset. The house has state-of-the-art amenities. including a gourmet kitchen, a home theatre, and many guest suites.
Sustainable Features
Leonardo DiCaprio is a well-known environmental activist. whose Malibu house reflects his commitment to sustainability. The property incorporates solar panels, energy-efficient appliances, and sustainable building materials. The landscaping around the house is also designed to be water-efficient. featuring drought-resistant plants and intelligent irrigation systems.
Leonardo DiCaprio House: Hollywood Hills Hideaway
Privacy and Seclusion
Another remarkable property in Leonardo DiCaprio's collection is his Hollywood Hills house. This secluded retreat offers privacy and tranquility. making it an ideal escape from the hustle and bustle of Los Angeles. The "Leonardo DiCaprio house" in Hollywood Hills nestled among lush greenery. and offers panoramic views of the city and surrounding landscapes.
Design and Amenities
The Hollywood Hills house is a mid-century modern gem characterized by its sleek design and floor-to-ceiling windows. The open-concept living space is perfect for entertaining. while the cozy bedrooms provide a comfortable retreat. The property also features a swimming pool, and outdoor dining area. and a spacious deck that overlooks the cityscape.
Environmental Initiatives
The Hollywood Hills house incorporates several green features that are in line with DiCaprio's environmental values. The home has solar panels, energy-efficient lighting, and a rainwater harvesting system. Additionally, the landscaping designed to support local wildlife and promote
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The Origins of the Dwayne Johnson Kidnapping Saga
Dwayne Johnson: A Brief Background
Before discussing the specifics of the kidnapping. it is crucial to understand who Dwayne Johnson is and why his kidnapping would be so significant. Born May 2, 1972, Dwayne Douglas Johnson is an American actor, producer, businessman. and former professional wrestler. Known by his ring name, "The Rock," he gained fame in the World Wrestling Federation (WWF, now WWE) before transitioning to a successful career in Hollywood.
Johnson's filmography includes blockbuster hits such as "The Fast and the Furious" series, "Jumanji," "Moana," and "San Andreas." His charismatic personality, impressive physique. and action-star status have made him a beloved figure worldwide. Thus, the news of his kidnapping would send shockwaves across the globe.
Setting the Scene: The Day of the Kidnapping
The incident of Dwayne Johnson's kidnapping began on an ordinary day. Johnson was filming his latest high-octane action film set to break box office records. The location was a remote yet scenic area. chosen for its rugged terrain and breathtaking vistas. perfect for the film's climactic scenes.
But, beneath the veneer of normalcy, a sinister plot was unfolding. Unbeknownst to Johnson and his team, a group of criminals had planned his abduction. hoping to leverage his celebrity status for a hefty ransom. The stage was set for an event that would soon dominate worldwide headlines and social media feeds.
The Abduction: Unfolding the Dwayne Johnson Kidnapping
The Moment of Capture
On the day of the kidnapping, everything seemed to be proceeding as usual on set. Johnson and his co-stars and crew were engrossed in shooting a particularly demanding scene. As the day wore on, the production team took a short break. providing the kidnappers with the perfect opportunity to strike.
The abduction was executed with military precision. A group of masked men, armed and organized, infiltrated the set. They created chaos, taking advantage of the confusion to isolate Johnson. Johnson was outnumbered and caught off guard despite his formidable strength and fighting skills. The kidnappers overpowered him, bundled him into a waiting vehicle. and sped away, leaving everyone on set in a state of shock and disbelief.
The Immediate Aftermath
The immediate aftermath of the Dwayne Johnson kidnappin
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2. Learning Objectives
1.1 To understand the evolution of the marketing concept, what consumer behavior is, and the
components of strategic marketing.
1.2 To understand how technology has benefited both marketers and consumers.
1.3 To understand providing value and satisfaction and how technology has enhanced customer
loyalty and retention.
1.4 To understand marketers’ social and ethical responsibilities.
1.5 To understand consumer decision-making as the foundation of this book.
1.6 To explain how the knowledge of consumer behavior advances seeking employment after
graduation.
3. Marketing
Marketing is the activity, set of institutions, and processes for
creating, communicating, and delivering offerings that have
value for customers, clients, partners, and society.
4. Consumer Behavior
Consumer behavior is the study of consumers’ choices during
searching, evaluating, purchasing, and using products and
services that they believe would satisfy their needs.
5. What Can a product Help Express About its Owner?
Expensive
Modern
Sleek
6. Vices
&
Virtues
• Presence of healthy food option
“licensed” consumers to eat
unhealthy food
• Estimated burger calories
decreased over 100 calories when
accompanied by three celery
sticks.
• How and why do consumers
make decisions based on other
factors than facts and rationality?
7. Learning Objective 1.1
To understand the evolution of the
marketing concept, what consumer
behavior is, and the components of
strategic marketing.
8. Marketing Concept
The premise that marketing consists of satisfying consumers’
needs, creating value, and retaining customers, and that
companies must produce only those goods that they have
already determined would satisfy consumer needs and meet
organizational goals.
10. Production Concept Product Concept Selling Concept Marketing Concept
Development of the Marketing Concept
Production Concept
Product Concept
Selling Concept
Marketing Concept
Production Concept
Product Concept
Selling Concept
Marketing Concept
Development of the
Marketing Concept
11. Marketing Myopia
• Short-sighted approach where companies “look
in the mirror instead of out the window”
• In other words, managers focus on the product,
not the needs it is designed to fulfill
14. Value Exchange
• Technologies create a value exchange
• Technology makes it easier to shop
and access information,
entertainment, and customized
products
• Consumers pay for content with
information about themselves
18. Cross-Screen Marketing
A promotional strategy that consists of tracking and targeting
users across their computers, mobile phones, and tablets, and
sending them personalized ads based on their interests, as
observed by marketers.
19. Discussion
Question
How does technology affect the Marketing
Mix?
Provide examples
• Interactive and novel communication
channels
• Customizing products and promotional
messages
• Better prices and distribution
20. Learning Objective 1.3
To understand providing value and
satisfaction and how technology has
enhanced customer loyalty and retention.
21. Successful Relationships (1 of 3)
Value, Satisfaction, and Retention
• Customer Value
• Customer Satisfaction
• Customer Retention
Defined as the ratio between the customer’s
perceived benefits and the resources used to obtain
those benefits
Perceived value is relative and subjective
Developing a value proposition is critical
23. Successful Relationships (2 of 3)
Value, Satisfaction, and Retention
• Customer Value
• Customer Satisfaction
• Customer Retention The individual's perception of the performance of the
product or service in relation to his or her
expectations.
Customer groups based on loyalty include loyalists,
apostles, defectors, terrorists, hostages, and
mercenaries
24. Successful Relationships (3 of 3)
Value, Satisfaction, and Retention
• Customer Value
• Customer Satisfaction
• Customer Retention
The objective of providing value is to retain highly
satisfied customers.
Loyal customers are key
They buy more products
They are less price sensitive
Servicing them is cheaper
They spread positive word of mouth
25. Customer Relationships
For Discussion:
Provide two examples where brands used technology to engage consumers/enhance
customer relationships.
Provide two examples where technology was used to add value to the consumer.
26. Forms of Engagement
Emotional Bonds
Personal commitment and attachment
Social media attempts to get consumers to engage emotionally with products and
brands
Transactional Bonds
Mechanics and structures that facilitate exchanges between consumers and sellers
Factors like assortment and transaction ease could shape the relationship
28. Profitability-Focused Segmentation
Miles Travelled Annually and Matching Revenues
Airplane’s Class and
Matching Revenues
per Mile
At least
250,000
Miles
At least
150,000
miles
At least
100,000
miles
First Class
($ 4 per mile)
$ 1,000,000
DIAMOND
$ 600,000
EMERALD
$ 400,000
EMERALD
Business Class
($ 2 per mile)
$ 500,000
EMERALD
$ 300,000
SAPPHIRE
$ 200,000
SAPPHIRE
Premium Economy
($ 0.6 per mile)
$ 150,000
ELITE
$ 90,000
SELECT
$ 60,000
SELECT
Economy
($ 0.3 per mile)
$ 75,000
SELECT
$ 45,000 $ 30,000
30. Review Question
• What is the difference between emotional and transactional
bonds?
• Identify and describe four of the eleven determinants of
customer satisfaction with online merchants. Characterize each
selected determinant as primarily driven by emotion or
stemming from the mechanics of the transaction.
32. Social Responsibility
Companies incorporate social
goals into their mission
statements
Marketing ethics and social
responsibility can shape
organizational effectiveness
Socially responsible
activities improve
image among
stakeholders
Chapter 1 describes the evolution of the marketing concept and describes the role of consumer behavior in strategic marketing. It describes technology has benefited marketers and consumers. Afterwards, it explains the interrelationships among customer value and satisfaction and describes how technology can enhance loyalty and retention strategies. It provides an overview of marketers’ social and ethical responsibilities and introduces the consumer decision-making foundation for the rest of the book. Lastly, it explains how knowledge about consumer behavior can benefit individuals who are seeking employment.
Marketers work to identify unmet or partially satisfied consumer desires so they can create and promote better offerings.
Consumer behavior explains how people spend their money, time, and effort on the offerings from marketers.
The car ad shown in Figure 1.1., which appears on the slide above, is used to introduce the idea that although people buy cars because they need personal transportation, the types of cars people choose are determined not by needs alone, but also by how cars express their owners’ characteristics.
The tagline in Porsche’s Boxster ad appeals to prospective owners’ psychology by addressing conflicts about paying for performance, stating that “unfulfilled dreams cost a lot more” and assures them that “of all the emotions you can expect while driving a Boxster, regret will never be one of them.” The ad appeals to unfilled needs and understands what the target audience desires.
Consumer behavior sometimes defies logic and common sense. The idea that the presence of healthy options justifies unhealthy choices is one example.
Consumer behavior is related to the marketing concept. The marketing concept asks marketers to satisfy consumer needs and to focus on offerings consumers are likely to buy.
The marketing concept replaced prior business approaches, including the production concept, the product concept, and the selling concept. It is important to note that marketing is not only concerned with satisfying consumer needs, but also meets organizational goals.
The ad appeals to couples who want to wear customized shoes that can gratify their desires for affection and uniqueness.
The marketing concept was developed over time through three other important business orientations: the production concept, the product concept and the selling concept. Under the production concept, marketers focus on product availability at low prices. The implicit marketing objectives are cheap, efficient production and intensive distribution, not product variations. The product concept assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features. The focus on the product rather than the needs of the market is known as marketing myopia. The selling concept creates a focus on selling the products that the marketer has decided to produce. The selling concept assumes that consumers are unlikely to buy the product unless they are aggressively persuaded to do so – and the approach does not consider customer satisfaction or customer retention.
An example of myopia was when Apple failed to allow its users to share software. It lost market share to Microsoft, which was more focused on the user experience at the time.
Humans share common biological needs, but they develop psychological needs through their upbringing, the environment, culture, education, and life experiences. Marketers perform segmentation by looking for groups with common needs. When a marketer chooses the segments that they will pursue, they have chosen a target market. Selection of the correct target market is critical to success of the product since the marketer has assumed that this group of consumers has a similar need with respect to their product or service and they will respond similarly to marketing action. Positioning is how the consumer thinks about a marketer’s product versus the competitor’s product. The marketing mix includes 4 Ps: 1. Product or service: The features, designs, brands, and packaging offered, along with post-purchase benefits such as warranties and return policies. 2. Price: The list price, including discounts, allowances, and payment methods. 3. Place: The distribution of the product or service through stores and other outlets. 4. Promotion: The advertising, sales promotion, public relations, and sales efforts designed to build awareness of and demand for the product or service.
Marketers provide value to consumers in the form of information, including opportunities to customize products easily and entertainment content. Marketers are investing to improve digital sites, increase social media activity, and they are switching resources from traditional to digital media.
Consumers exchange information about themselves for value gained from technology, including efficient shopping, quicker access to information, and the ability to buy customized products.
Figure 1.3 illustrates that across age groups, most Americans own technological gadgets.
Figure 1.4 shows the popularity of different online activities.
Websites track who is interested in what through “cookies” (invisible bits of code stored on Web pages). Marketers also use GPS and selfies to learn about consumer habits. Consumers also have access to better information, and can compare products. Marketers try to reach the right customer with the right message at the right time using individualized targeting.
Advertisers can “push” ads to mobile phones based on the interests that people expressed while surfing online. It is important to use multiple channels to reach the consumer because they are often dividing their attention across more than one type of media at the same time.
Electronic communications enable a two-way interactive exchange in which consumers instantly react to marketers’ messages. Consumers are designing ads and advertisers are using product placements since consumers can skip or avoid ads. Marketers are also attempting to use cross-screen marketing, which consists of tracking and targeting users across their computers, mobile phones, and tablets.
Companies use technology to customize products. Product customization requires that customers clearly understand their preferences and express them, and “high involvement” products (i.e., infrequently purchased and pricey items) represent the best prospects for customization. Companies can also customize promotional messages based on past purchases and/or search behavior.
The Internet allows consumers to compare prices more efficiently, improves distribution and customer service.
Consumers see the value of the benefits associated with the product exceed the cost of the product – the cost in terms of money, time, and opportunity costs.
If a product delivers value, the company is likely to have a high level of customer satisfaction. They will tell others about the product and speak highly of it when asked or when reviewing the product online. A company with strong customer relationships will be able to achieve a high level of customer retention – their customers will not defect to the competitor or stop using their product. They will retain these customer over time and will be more profitable due to these valuable loyal customers.
It is best to think of value as the consumers’ perception of what they gained vs. what they gave up to purchase a product or use a service. Marketers are developing value propositions which are statements of the value their product offers to consumers. If the value propositions are clear and applicable to the consumer, they will understand the strength of the product benefits.
They create bundled meals and dollar menus to create value for price-conscious consumers. In addition, they create value to the health-conscious consumer by offering salads, fruit, and healthy options for Happy Meals.
They communicate this value through television ads, in-store signage, and their website.
It is important to understand the role of customer expectations in customer satisfaction. If you fall below the consumer's expectations, then the consumer is not satisfied, but if you exceed expectations then you can create “customer delight.”
When customers are highly satisfied, they can become loyalists who continue to purchase or apostles, who provide very positive word-of-mouth. When customers are disappointed, they can become defectors and move to the competition or terrorists, who spread negative word-of-mouth. Some dissatisfied customers become hostages and stay with the company but are very unhappy. Mercenaries are satisfied but are not really considered loyal and will move from company to company.
Customer retention is an important strategy to all marketers. The goal is to make customers stay with your company and generate positive word of mouth about your service and products. The Internet and cell phones have helped marketers maintain closer relations with their consumers and have opened easier channels for the customer to contact the company if they have questions, problems, or suggestions.
Loyal customers buy more products and constitute a ready-made market for new models of existing products as well as new ones, and also represent an opportunity for cross-selling.
Long-term customers who are thoroughly familiar with the company’s products are an important asset when new products and services are developed and tested.
Loyal customers are less price-sensitive and pay less attention to competitors’ advertising. Thus, they make it harder for competitors to enter markets.
Servicing existing customers, who are familiar with the firm’s offerings and processes, is cheaper. It is expensive to “train” new customers and get them acquainted with a seller’s processes and policies. The cost of acquisition occurs only at the beginning of a relationship, so the longer the relationship, the lower the amortized cost.
Loyal customers spread positive word-of-mouth and refer other customers.
Marketing efforts aimed at attracting new customers are expensive; indeed, in saturated markets, it may be impossible to find new customers. Low customer turnover is correlated with higher profits.
Increased customer retention and loyalty make the employees’ jobs easier and more satisfying. In turn, happy employees feed back into higher customer satisfaction by providing good service and customer support systems.
Marketers try to engage consumers using technology. One example is Apple’s iTunes, which has a large software selection for editing and posting content online. Marketers also engage with consumers using social media.
Because emotional bonds represent a customer’s high level of personal commitment and attachment to the company, savvy marketers seek emotional bonds with consumers. Transactional bonds are the mechanics and structures that facilitate exchanges between consumers and sellers.
Adaptation measures whether purchase recommendations match customer’s needs; the ability to order tailor-made products; personalized advertisements and promotions; and whether the consumer feels unique and valued. Interactivity measures whether the consumer can view merchandise offerings from different perspectives; use a search tool to locate products; make comparisons easy; and gain useful information. Nurturing measures whether the consumer receives reminders about making purchases; provides relevant information for purchases; acknowledges appreciation; makes an effort to increase business with the customer; and cultivates a relationship with the customer. Commitment measures whether the company delivers goods on time; responds to complaints; has customer-friendly return policies; and takes good care of customers. Network measures whether customers can share experiences about their product purchases on the merchant’s website; whether the network is useful for sharing experiences; and whether shoppers benefit from the community of prospects and customers sponsored by the merchant. Assortment measures depth and breadth of offerings, or whether the merchant has a wide assortment/selection.
Transaction ease measures the intuitiveness of navigation; the ability to make a purchase for the first time without help; and whether the site enables quick transactions. Engagement measures whether the site design is attractive and whether shopping is enjoyable at the site. It also reflects whether the site is inviting and whether the consumer feels comfortable shopping at the site. Loyalty measures switching consideration; whether the consumer clicks on merchant’s site whenever needing to make a purchase; whether the consumer likes to navigate the site; and whether the site is from the favorite merchant with which to do business. Inertia measures whether changing to a new merchant would not be worth the bother unless the consumer is really dissatisfied; whether the consumer finds it difficult to stop shopping at the site; and whether the consumer feels that the cost in time, money, and effort to change merchants are high. Finally, trust measures whether the consumer feels s/he can count on the merchant to complete purchase transactions successfully; whether the consumer trusts the site’s performance; and whether the consumer believes that the merchant is reliable and honest.
The figures in the right column show how much money the airline makes per mile in each of its four service classes. The top row represents the number of miles travelled by a given customer. The twelve cells represent the airline’s revenue from a given customer based on the amount of miles the customer travelled and the class in which he or she travelled.
Customer valuation categorizes customers according to their financial and strategic worth so that the company can decide where to invest for deeper relationships and determine which relationships should be served differently or even terminated.
Retention rates examine the percentage of customers at the beginning of the year who are still customers by the end of the year. Companies can use this ratio to make comparisons between products, between market segments, and over time.
Analyzing defections should look for the root causes, not mere symptoms.
Emotional bonds represent a customer’s high level of personal commitment and attachment to the company. Transactional bonds are the mechanics and structures that facilitate exchanges between consumers and sellers.
The eleven determinants are:
1. Adaptation: The merchant’s purchase recommendations match one’s needs; one is enabled to order products that are tailor-made; personalized advertisements and promotions; feeling like a unique and valued customer. (emotional)
2. Interactivity: Ability to view merchandise offerings from different perspectives; search tool that enables one to quickly locate products; having tools that make comparisons easy; useful information. (transactional)
3. Nurturing: Receiving reminders about making purchases; providing relevant information for one’s purchases; acknowledgment of appreciating one’s business; making an effort to increase business with the customer; cultivating a relationship with the customer. (emotional)
4. Commitment: Delivering goods on time; responding to problems encountered; customer friendly return policies; taking good care of customers. (emotional and transactional)
5. Network: Customers sharing experiences about their product purchases on the merchant’s website; useful network for sharing experiences; shoppers benefit from the community of prospects and customers sponsored by the merchant. (emotional)
6. Assortment: Merchant provides “one-stop shopping” for most online purchases; site satisfies shopping needs; merchant carries wide assortment and selection of products. (transactional)
7. Transaction ease: Merchant’s website can be navigated intuitively; a first-time buyer is able to make a purchase without much help; site is user-friendly and enables quick transactions. (transactional)
8. Engagement: The merchant’s site design is attractive; enjoyable shopping at the site; feel that the site is inviting; feel comfortable shopping at the site. (emotional)
9. Loyalty: Seldom consider switching to another merchant; usually click on the merchant’s site whenever needing to make a purchase; like to navigate the site; one’s favorite merchant to do business with. (emotional and transactional)
10. Inertia: Unless becoming very dissatisfied, changing to a new merchant would not be worth the bother; finding it difficult to stop shopping at the site; feeling that the cost in time, money, and effort to change merchants is high. (transactional)
11. Trust: Counting on the merchant to complete purchase transactions successfully; trusting the site’s performance; feeling that the merchant is reliable and honest. (emotional)
Because almost all companies prosper when society prospers, marketers would be better off if they integrated social responsibility into their marketing strategies.
In addition to companies trying to do the right thing, regulatory agencies and not-for-profit advocacy groups work to advance causes that are ethically and morally right.
Consumer behavior stems from four disciplines. Psychology is the study of the human mind and the mental factors that affect behavior (i.e., needs, personality traits, perception, learned experiences, and attitudes). Sociology is the study of the development, structure, functioning, and problems of human society (the most prominent social groups are family, peers, and social class). Anthropology compares human societies’ culture and development (e.g., cultural values and subcultures). Communication is the process of imparting or exchanging information (including media and persuasive strategies).
The input stage of consumer decision-making includes two influencing factors: the firm’s marketing efforts (i.e., the product, its price and promotion, and where it is sold) and sociocultural influences (i.e., family, friends, neighbors, social class, and cultural and subcultural entities).
The process stage focuses on how consumers make decisions. The psychological factors (i.e., motivation, perception, learning, personality, and attitudes) affect how the external inputs from the input stage influence the consumer’s recognition of a need, prepurchase search for information, and
evaluation of alternatives. The experience gained through evaluation of alternatives, in turn, affects the consumer’s existing psychological attributes.
The output stage consists of two post-decision activities: purchase behavior and post-purchase evaluation.
The diagram summarizes the process of consumer decision making, which includes three components: the input, process, and output stages of decision-making
Brand management is the process of maintaining, improving, and upholding a brand so that it is clearly differentiated from other offerings in the same product category. Studying consumer behavior prepares students for becoming copy writers, planning and implementing advertising strategies, measuring the effectiveness of advertising campaigns and, if necessary, redesign promotional message to make them more persuasive. Consumer research refers to the process and tools used to study consumer behavior