Professional Documents
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ONE
Consumer Behavior:
Meeting Changes and
Challenges
Technology Driven
Consumer Behavior
Learning Objectives
1. To Understand What Consumer Behavior Is and the
Different Types of Consumers.
2. To Understand the Relationship Between Consumer
Behavior and the Marketing Concept, the Societal
Marketing Concept, as Well as Segmentation, Targeting,
and Positioning.
3. To Understand the Relationship Between Consumer
Behavior and Customer Value, Satisfaction, Trust, and
Retention.
4. To Understand How New Technologies Are Enabling
Marketers to Better Satisfy the Needs and Wants of
Consumers.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 2
Learning Objectives (continued)
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Consumer Behavior
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Two Consumer Entities
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Consumer Behavior Is
Interdisciplinary
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• PSYCHOLOGY- investigate the mental processes and
behavior of individuals as they react to stimuli in their
environment- psychological concepts like perception,
learning ,memory motivation, emotion ,personality and
self image
9
• ECONOMICS- examines people’s production and
exchange of resources for goods and services.
Emphasizes demand more than supply
10
Development of the
Marketing Concept
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Production Orientation
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Sales Orientation
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Marketing Concept
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Discussion Questions
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Societal Marketing Concept
• Considers consumers’
long-run best interest
• Good corporate
citizenship
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 16
The Marketing Concept
Embracing the Marketing
Concept
• Consumer Research • The process and tools
• Segmentation used to study consumer
• Market Targeting behavior
• Positioning
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 17
The Marketing Concept
Implementing the
Marketing Concept
• Consumer Research • Process of dividing the
• Segmentation market into subsets of
• Market Targeting consumers with
common needs or
• Positioning characteristics
• Psychography
• Geo
• dEmo
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 18
Discussion Questions
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The Marketing Concept
Implementing the
Marketing Concept
• Consumer Research The selection of one or
• Segmentation more of the segments
• Market Targeting identified to pursue
• Positioning
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 20
The Marketing Concept
Implementing the
Marketing Concept
• Consumer Research • Developing a distinct image for
the product in the mind of the
• Segmentation consumer
• Market Targeting • Successful positioning includes:
• Positioning – Communicating the benefits
of the product
– Communicating a unique
selling proposition
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 21
The Marketing Mix
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Customer Value, Satisfaction, Trust,
and Retention
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Successful Relationships
Value, Satisfaction,
• Defined as the ratio between
Trust, and Retention the customer’s perceived
• Customer Value benefits and the resources
• Customer used to obtain those
Satisfaction benefits
• Customer Trust • Perceived value is relative
and subjective
• Customer
Retention • Developing a value
proposition is critical
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Discussion Questions
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Successful Relationships
Value, Satisfaction,
Trust, and Retention
• The individual's perception
• Customer of the performance of the
Value product or service in
• Customer relation to his or her
Satisfaction expectations.
• Customer Trust • Customer groups based on
• Customer loyalty include loyalists,
Retention apostles, defectors,
terrorists, hostages, and
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall mercenaries Chapter One Slide 26
Successful Relationships
Value, Satisfaction,
Trust, and Retention • Establishing and
• Customer Value maintaining trust is
• Customer essential.
Satisfaction
• Trust is the
• Customer Trust
foundation for
• Customer
Retention maintaining a long-
standing relationship
with customers.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 27
Successful Relationships
Value, Satisfaction, • The objective of providing
Trust, and Retention value is to retain highly
satisfied customers.
• Customer Value
• Loyal customers are key
• Customer
– They buy more products
Satisfaction
– They are less price
• Customer Trust sensitive
• Customer – Servicing them is cheaper
Retention
– They spread positive
word of mouth
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 28
Top 10 Ranked U.S. Companies in Terms of
Consumers’ Trust and Respect of Privacy
Table 1.2
Top 10 Companies
• American Express
• eBay
• IBM
• Amazon
• Johnson & Johnson
• Hewlett-Packard
• U.S. Postal Service
• Procter and Gamble
• Apple
• Nationwide
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 26
Customer Profitability-Focused
Marketing
• Tracks costs and
revenues of
individual consumers
• Categorizes them
into tiers based on
consumption
behavior
• A customer pyramid
groups customers
into four tiers
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 30
Impact of Digital Technologies
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A Simple Model of Consumer Decision Making - Figure 1.4
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