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CH 1 Consumer Behavior
CH 1 Consumer Behavior
ONE
Consumer Behavior:
Meeting Changes and
Challenges
Consumer Behavior
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 2
Marketing concept
3
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.
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Learning Objectives (continued)
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A Segment of Consumers Who are
Environmentally Concerned
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Two Consumer Entities
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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
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The Marketing Concept
Embracing the Marketing
Concept
• Consumer Research • The process and tools
• Segmentation used to study consumer
• behavior
Market Targeting
• Positioning
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The Marketing Concept
Implementing the
Marketing Concept
• Consumer Research • Process of dividing the
• Segmentation market into subsets of
• consumers with
Market Targeting
common needs or
• Positioning characteristics
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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
• identified to pursue
Market Targeting
• Positioning
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 18
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 19
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
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 22
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 24
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 25
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
Retention cheaper
– They spread positive
word of mouth
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 26
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 28
THE TRADITIONAL MARKETING CONCEPT VALUE- AND RETENTION-FOCUSED
MARKETING
Make only what you can sell instead of trying Use technology that enables customers to
to sell what you make. customize what you make.
Do not focus on the product; focus on the Focus on the product’s perceived value, as well
need that it satisfies. as the need that it satisfies.
Market products and services that match Utilize an understanding of customer needs to
customers’ needs better than competitors’ develop offerings that customers perceive as
offerings. more valuable than competitors’ offerings.
Research consumer needs and characteristics. Research the levels of profit associated with
various consumer needs and characteristics.
Realize that each customer transaction is a Make each customer transaction part of an
discrete sale. ongoing relationship with the customer.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 30
The Mobile Consumer
Penetration of Internet Usage Among Mobile
• Wireless Media Subscribers in 16 Countries - FIGURE 1.3
Messages will
expand as:
– Flat-rate data traffic
increases
– Screen image
quality is enhanced
– Consumer-user
experiences with
web applications
improve
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Consumer Behavior Is
Interdisciplinary
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A Simple Model of Consumer Decision Making - Figure 1.4
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All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 34