Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK

Chapter 1
Introduction: The Impact of the Digital Revolution on Consumer Behavior

Opening Vignette


Objectives of One-to-One Marketing • To attain customers • Sell them more products • Make a profit 1-3 .

and promotional messages like never before • Enhances relationships with customers more effectively and efficiently 1-4 .Digital Revolution in the Marketplace • Allows customization of products. services.

Changes in the Business Environment • Increased consumer • Access to customer patterns and power preferences • Access to • Evolution to other information -Web connection • More products and – PDAs services – HDTV • Interactive and – Mobile phones instant exchanges 1-5 .

evaluating. and disposing of products and services that they expect will satisfy their needs. using. 1-6 . purchasing.Consumer Behavior The behavior that consumers display in searching for.

1-7 . for the use of a family member. or for a friend. for household use.Personal Consumer The individual who buys goods and services for his or her own use.

government agency. or other institution (profit or nonprofit) that buys the goods. services. 1-8 . and/or equipment necessary for the organization to function.Organizational Consumer A business.

Development of the Marketing Concept Production Concept Product Concept Selling Concept Marketing Concept 1-9 .

efficient production – Intensive distribution – Market expansion 1-10 .The Production Concept • Assumes that consumers are interested primarily in product availability at low prices • Marketing objectives: – Cheap.

and the most features • Marketing objectives: – Quality improvement – Addition of features • Tendency toward Marketing Myopia 1-11 .The Product Concept • Assumes that consumers will buy the product that offers them the highest quality. the best performance.

The Selling Concept • Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so • Marketing objectives: – Sell. sell • Lack of concern for customer needs and satisfaction 1-12 . sell.

a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition • Marketing objectives: – Profits through customer satisfaction 1-13 .The Marketing Concept • Assumes that to be successful.

Business Leaders Who Understood Consumer Behavior • Alfred Sloan. McDonald’s 1-14 . KFC • Ray Kroc. General Motors • Colonel Sanders.

1-15 .

The Marketing Concept A consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own organizational goals. 1-16 .

Implementing the Marketing Concept • • • • Consumer Research Segmentation Targeting Positioning 1-17 .

• Two perspectives: – Positivist approach – Interpretivist approach 1-18 .Consumer Research • The process and tools used to study consumer behavior.

Targeting.Segmentation. and Positioning • Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics • Targeting: selecting one ore more of the segments to pursue • Positioning: developing a distinct image for the product in the mind of the consumer 1-19 .

rather than its features • Communicating a Unique Selling Proposition for the product 1-20 .Successful Positioning • Communicating the benefits of the product.

The Marketing Mix • • • • Product Price Place Promotion 1-21 .

Successful Relationships Customer Value Customer Satisfaction 1-22 Customer Retention .

Types of Customers • Loyalists • Apostles • Defectors • Terrorists • Hostages • Mercenaries 1-23 .

Customer Profitability-Focused Marketing Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead 1-24 .

that is.Societal Marketing Concept A revision of the traditional marketing concept that suggests that marketers adhere to principles of social responsibility in the marketing of their goods and services. they must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole. 1-25 .

would be better off if social responsibility was an integral component of every marketing decision. 1-26 . • Companies.The Societal Marketing Concept • All companies prosper when society prospers. • Requires all marketers adhere to principles of social responsibility. as well as individuals.

Learning 4. Motivation 2. Repeat purchase Postpurchase Evaluation 1-27 Figure 1-1: A Model of Consumer Decision Making . Trial 2.External Influence Input Firm’s Marketing Efforts 1. Informal sources 3. Channels of distribution Sociocultural Environment 1. Personality 5. Product 2. Price 4. Subculture and culture Consumer Decision Making Need Recognition Prepurchase Search Evaluation of Alternatives Process Psychological Field 1. Perception 3. Family 2. Attitudes Experience Output Post-Decision Behavior Purchase 1. Social class 5. Other noncommercial sources 4. Promotion 3.

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