Chapter 1

Consumer Behavior & Marketing Management

Copyright Atomic Dog Publishing, 2002

Kollat. 2002 .Chapter Spotlights       Consumer benefits Total product concept Market segmentation and segmentation strategies Positioning Consumer decision-making Engel. and Blackwell (EKB) Model Copyright Atomic Dog Publishing.

and consumer Improve yourself as a shopper. buyer.Course Objectives      Better understand why people do what they do in the marketplace when they do it Better understand yourself as a shopper. 2002 . and consumer Improve your current/future job performance Better understand marketer communications and behaviors in the marketplace Copyright Atomic Dog Publishing. buyer.

g. has stopwatch feature so now can keep track of “work out” times Copyright Atomic Dog Publishing.Consumer Benefits   People do not buy products or services. 2002 .. but for the benefits of the problems they solve or the opportunities they offer  e. they buy benefits Hence we make purchases not for the products themselves. “always late” so a watch helps solve problem.

the “reliability” reputation of the watch manufacturer. the image of the watch wearer Copyright Atomic Dog Publishing. a watch keeps good time.g.g. 2002 ..Consumer Benefits  Consumers seek bundles of types of benefits:   Tangible benefits: e.. has leather band Intangible benefits: e.

g.) Accessory ring: added-value benefits with no apparent extra cost (e... belonging. features. youthful. powerful. store reputation.g.) Time: products/service “give” or “take” time. etc..     Basic core: bundle of utilitarian benefits (e. convenient location.. etc. etc. design. manufacturer prestige. this can be “good” or “bad” (e. 2002 . outlet.) Psychological ring: benefits resulting from the consumer’s feelings associated with owning/using the product (e. sexy. etc.g. service.The Total Product Concept  Total product: refers to the sum of benefits offered by a product. fast food versus conventional restaurant) Copyright Atomic Dog Publishing.g.

Copyright Atomic Dog Publishing. 2002 .Market Segmentation  Market segmentation is the study of the marketplace in order to discover already existing viable groups of consumers who are similar or homogeneous in their approaches to choosing and/or consuming goods and services.

) Determine specific “geographic location” of segment Bound segments in “time” to ensure that all data is relevant and up to date for the time of use. benefits sought. Copyright Atomic Dog Publishing. product usage rate. psychographics. 2002 .g.Segment Bounding  Segment bounding is a means by which marketers differentiate among consumers and among market segments    Determine the “descriptors” of the consumers/units in the segment (e. demographics. type of retail outlet. etc..

Viable segments are:     Of sufficient size Measurable Differentiated Reachable Copyright Atomic Dog Publishing. 2002 .Segment Viability  Four factors are used to assess segment viability.

even though the product may also appeal to others Differentiated marketing: selecting two or more different segments Copyright Atomic Dog Publishing.Segmentation Strategies    Mass marketing (undifferentiated marketing): offering the same product to the entire consumer population Concentrated marketing (focused or niche marketing): selecting one market segment. 2002 .

2002 .Segmentation in the Global Marketplace  There are two approaches to market segmentation   Localization: treating each country as a separate market and seeking consumer segments accordingly Intermarket segmentation (also called “standardization”): selecting groups of consumers who exhibit similar consumption behavior across different countries  Marketers emphasize similarities rather than differences across country markets Copyright Atomic Dog Publishing.

and promotional and/or personal selling benefits. service.Consumer Benefits and Product Positioning   Product positioning is the placement of a product. outlet. distribution. in the mind of the consumer There are five ways used to position products. services. price. etc. 2002 .      On perceived benefits On image On attributes Against competitors Combination of two or more of the above  Repositioning: shifting position in the consumer’s mind through changes in important product. etc. outlets. Copyright Atomic Dog Publishing.

The Consumer DecisionMaking Process   A consumer decision model is a means of describing the processes that consumers go through before. Copyright Atomic Dog Publishing. and after making a purchase (choice). A model shows the causes or antecedents of a particular behavior and each of its results or consequences. during. 2002 .

a decision process. The five distinct parts of consumer decision making presented are:  Input. decision process variables. and Blackwell (EKB) Model   The EKB model is comprehensive and shows the components of decision making and the relationships and interactions among them. and external influences Copyright Atomic Dog Publishing. information processing. Kollat.Engel. 2002 .

contact with others Marketer-controlled stimuli (e..g.Input  Input includes all kinds of stimuli from our contact with the world around us:     Our experiences. personal recollections. 2002 .. conversations with friends) External search Copyright Atomic Dog Publishing. advertising. demonstrations) Other stimuli (e.g. store display.

Information Processing   Stimuli are processed into meaningful information Five methods of information processing:      Exposure Attention Comprehension Yielding Retention Copyright Atomic Dog Publishing. 2002 .

2002 .Decision Process   It is triggered at any time during information processing It consists of five steps:      Problem recognition Search Alternative evaluation Choice Outcomes (post-purchase evaluation and behavior) Copyright Atomic Dog Publishing.

Decision process variables include         Motives Beliefs Attitudes Lifestyles Intentions Evaluative criteria Normative compliance and informational influence Other aspects of self Copyright Atomic Dog Publishing.Decision Process Variables   Those individual qualities that make people/consumers unique. 2002 .

reference groups.External Influences  Such influences are called “Circles of Social Influence.” They are: culture. sub-culture (coculture). and family or household influences Copyright Atomic Dog Publishing. 2002 . social class.

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