Chapter 1 Consumer Behavior Meeting Changes and Challenges

(1)

Consumer Consumer Behavior: Behavior: Meeting Meeting Changes and Changes and Challenges Challenges

BUS 450

CHAPTER

!E

(2)

(3)

"earning #$e%tives

1.

1. TTo Uno Underderstanstand Whad What Cot Consumnsumer Ber Behavehavior ior Is aIs andnd the Diferent Types o Consumers.

the Diferent Types o Consumers. 2.

2. TTo Undo Underserstand ttand the Rhe Relaelatiotionshinship Betp Betweeweenn Consumer Behavior and th

Consumer Behavior and the ar!ee ar!etin" Con#ept$tin" Con#ept$ the %

the %o#ietal o#ietal ar!ar!etin" Con#epetin" Con#ept$ as t$ as WWell ell asas %e"mentation$ Tar"etin"$ and &ositionin". %e"mentation$ Tar"etin"$ and &ositionin". '.

'. TTo Undo Underserstand ttand the Rhe Relaelatiotionshinship Betp Betweeweenn Consumer Behavior

Consumer Behavior and Customer and Customer ((alue$alue$ %atisa#tion$ Trust$ and Retention.

%atisa#tion$ Trust$ and Retention. ).

). TTo Undeo Understand rstand *ow +*ow +ew Tew Te#hnole#hnolo"ies o"ies ,re,re

-nalin" ar!eters to Better %atisy the +eeds -nalin" ar!eters to Better %atisy the +eeds and W

(4)

(5)

"earning #$e%tives

&%ontinued'

.

. TTo Underso Understand *ow atand *ow ar!r!eters ,reters ,ree

In#reasin"ly ,le to Rea#h Consumers In#reasin"ly ,le to Rea#h Consumers

Wherever Consumers Wish to Be Rea#hed. Wherever Consumers Wish to Be Rea#hed. .

. TTo Understao Understand *ow the Wnd *ow the World3orld3s -#onomis -#onomi## Condition Is 4eadin" to Consumption

Condition Is 4eadin" to Consumption Instaility and Chan"e.

Instaility and Chan"e. 5.

5. TTo Understao Understand the a!nd the a!eup and Compoeup and Compositiositionn o a odel o Consumer Behavior.

o a odel o Consumer Behavior. 6.

(6)

(7)

To (hi%h Segment o)

Consumers (ill This Ad

A**eal+

(8)

(9)

A Segment o) Consumers

(ho are Environmentall,

Con%erned

(10)

(11)

Consumer Behavior

•

• The ehavior that #onsumers display The ehavior that #onsumers display

in sear#hin" or$ pur#hasin"$ usin"$ in sear#hin" or$ pur#hasin"$ usin"$

evaluatin"$ and disposin" o produ#ts evaluatin"$ and disposin" o produ#ts and servi#es that they e7pe#t will

and servi#es that they e7pe#t will satisy their needs.

(12)

(13)

T-o Consumer Entities

(14)

(15)

.evelo*ment o) the

Mar/

(16)

(17)

Produ%tion rientation

•

• 8rom the 16/s to the late 192/s8rom the 16/s to the late 192/s •

• Companies o#us on produ#tionCompanies o#us on produ#tion

#apailities #apailities

•

(18)

(19)

Sales

rientatio

n

•

• 8rom the 19'/s to the mid 19/s8rom the 19'/s to the mid 19/s •

• 8o#us on sellin"8o#us on sellin" •

(20)

(21)

Mar/

eting C

on%e*t

•

• 19/s to #urrent : 8o#us on the19/s to #urrent : 8o#us on the

#ustomer; #ustomer;

•

• Determine the needs and wants oDetermine the needs and wants o

spe#i<# tar"et ma

spe#i<# tar"et mar!r!etsets

•

• Deliver satisa#tion etter thanDeliver satisa#tion etter than

#ompetition #ompetition

(22)

(23)

.is%ussion uestions

1.

1. WhWhat tat two #wo #omompapaninieses do you elieve "rasp do you elieve "rasp and use the

and use the mar!mar!etin"etin" #on#ept=

#on#ept= 2.

2. WhWhy y do do yoyou u eelilievevee this=

(24)

(25)

So%ietal Mar/eting Con%e*t

•

• ConsidersConsiders

#onsumers3 lon": #onsumers3 lon": run est interest run est interest

•

• >ood #orporate>ood #orporate

#iti?enship #iti?enship

(26)

(27)

The Mar/eting Con%e*t

• • ConsumerConsumer Resear#h Resear#h • • %e"mentation%e"mentation • • ar!etar!et T

Tar"etar"etin"in" •

• &ositionin"&ositionin"

•

• The pro#ess The pro#ess andand

tools used to study tools used to study #onsumer ehavior #onsumer ehavior Embracing the Embracing the Marketing Marketing Concept Concept

(28)

(29)

The Mar/eting Con%e*t

Tar"etar"etin"in" •

•

• &ro#ess o dividin"&ro#ess o dividin"

the mar!et into the mar!et into susets o susets o #onsumers with #onsumers with #ommon needs or #ommon needs or #hara#teristi#s #hara#teristi#s Implementing the Implementing the Marketing Marketing Concept Concept

(30)

(31)

.is%ussion uestions

1.

1. WhaWhat prt produodu#ts th#ts that yoat you ru re"ue"ularllarlyy pur#hase are hi"hly se"mented= pur#hase are hi"hly se"mented= 2.

2. WhaWhat art are the the die diferferent sent se"me"mentsents== '.

'. Why Why is sis se"mee"mentatntation ion useuseul ul to thto thee mar!

(32)

(33)

The Mar/eting Con%e*t

Tar"etar"etin"in"

•

The sele#tion o one The sele#tion o one

or more o the or more o the

se"ments identi<ed se"ments identi<ed to pursue to pursue Implementing the Implementing the Marketing Marketing Concept Concept

(34)

(35)

The Mar/eting Con%e*t

Tar"etar"etin"in"

•

• Developin" a distin#tDevelopin" a distin#t

ima"e or the produ#t in ima"e or the produ#t in the mind o the #onsumer the mind o the #onsumer

•

• %u##essul positionin"%u##essul positionin"

in#ludes@ in#ludes@

–

– Communi#atin" theCommuni#atin" the

ene<ts o the produ#t ene<ts o the produ#t

– – Communi#atin" aCommuni#atin" a Implementing the Implementing the Marketing Marketing Concept Concept

(36)

(37)

The Mar/eting Mi1

(38)

(39)

Customer 2alue3

Satis)a%tion3 Trust3 and

Retention

(40)

(41)

Su%%ess)ul Relationshi*s

• • CustomerCustomer (alue (alue • • CustomerCustomer %atisa#tion %atisa#tion • • CustomerCustomer T Trustrust • • CustomerCustomer •

• De<ned as the ratioDe<ned as the ratio

etween the etween the

#ustomer3s per#eived #ustomer3s per#eived ene<ts and the

ene<ts and the resour#es used to resour#es used to

otain those ene<ts otain those ene<ts

•

• &er#eived value is&er#eived value is

relative and sue#tive relative and sue#tive

•

• Developin" a valueDevelopin" a value

oposition is

oposition is #riti#al#riti#al

Value, Value, Satisfaction, Satisfaction, Trust, and Trust, and Retention Retention

(42)

(43)

.is%ussion uestions

•

• *ow does*ow does

#Donald3s #Donald3s

#reate value or #reate value or the #onsumer= the #onsumer=

•

• *ow do they*ow do they

#ommuni#ate this #ommuni#ate this value=

(44)

(45)

Su%%ess)ul Relationshi*s

• • CustomerCustomer (alue (alue • • CustomerCustomer %atisa#tion %atisa#tion • • CustomerCustomer T Trustrust • • CustomerCustomer •

• The individuals per The individuals per#eption#eption

o the perorman#e o the o the perorman#e o the produ#t or servi#e in

produ#t or servi#e in relation to his or her relation to his or her e7pe#tations.

e7pe#tations.

•

• Customer "roups ased onCustomer "roups ased on

loyalty in#lude loyalists$ loyalty in#lude loyalists$ apostles$ dee#tors$

apostles$ dee#tors$ terr

terrorists$ hosta"es$ orists$ hosta"es$ andand mer#enaries mer#enaries Value, Value, Satisfaction, Satisfaction, Trust, and Trust, and Retention Retention

(46)

(47)

Su%%ess)ul Relationshi*s

• • CustomerCustomer (alue (alue • • CustomerCustomer %atisa#tion %atisa#tion • • CustomerCustomer T Trustrust • • CustomerCustomer Retention Retention •

• -stalishin" and-stalishin" and

maintainin" trust maintainin" trust is essential.

is essential.

•

• T Trust is therust is the

oundation or oundation or maintainin" a maintainin" a lon":standin" lon":standin" relationshi

relationship p withwith Value, Value, Satisfaction, Satisfaction, Trust, and Trust, and Retention Retention

(48)

(49)

Su%%ess)ul Relationshi*s

• • CustomerCustomer (alue (alue • • CustomerCustomer %atisa#tion %atisa#tion • • CustomerCustomer T Trustrust • • CustomerCustomer Retention Retention •

• The oe#tive o providin" The oe#tive o providin"

value is to retain hi"hly value is to retain hi"hly satis<ed #ustomers.

satis<ed #ustomers.

•

• 4oyal #ustomers 4oyal #ustomers are !eyare !ey –

– They uy more pr They uy more produ#tsodu#ts –

– They are less pri#e They are less pri#e

sensitive sensitive

–

– %ervi#in" them is%ervi#in" them is

#heaper #heaper

–

– They spread positive They spread positive

word o mouth word o mouth Value, Value, Satisfaction, Satisfaction, Trust, and Trust, and Retention Retention

(50)

(51)

To* 0 Ran/ed US Com*anies in Terms

o) Consumers6 Trust and Res*e%t o)

Priva%, Priva%, Ta#le 7 Ta#le 7 To* 0 To* 0 Com*anies Com*anies • • ,meri#an,meri#an -7press -7press • • eBayeBay • • IBIB • • ,ma?on,ma?on • • ohnson E ohnson E ohnson ohnson • • *ewlett:&a#!ard*ewlett:&a#!ard U.%. &ostal U.%. &ostal

(52)

(53)

THE TRA.8T8!A" MAR9ET8! THE TRA.8T8!A" MAR9ET8!

C!CEPT C!CEPT

2A"UE; A!. RETE!T8!; 2A"UE; A!. RETE!T8!;

<CUSE. MAR9ET8! <CUSE. MAR9ET8! a!e only what you #an sell instead

a!e only what you #an sell instead o tryin" to sell what you ma!e.

o tryin" to sell what you ma!e.

Use te#hnolo"y that enales Use te#hnolo"y that enales

#ustomers to #ustomi?e what you #ustomers to #ustomi?e what you ma!e.

ma!e. Do not o#us on the produ#tF o#us on

Do not o#us on the produ#tF o#us on the need that it satis<es.

the need that it satis<es.

8o#us on the produ#t3s per#eived 8o#us on the produ#t3s per#eived value$ as well as the need that it value$ as well as the need that it satis<es.

satis<es. ar!et produ#ts and servi#es that

ar!et produ#ts and servi#es that mat#h #ustomers3 needs etter than mat#h #ustomers3 needs etter than #ompetitors3 oferin"s.

#ompetitors3 oferin"s.

Utili?e an

Utili?e an understandunderstandin" o in" o #ustomer#ustomer needs to develop oferin"s that

needs to develop oferin"s that

#ustomers per#eive as more valuale #ustomers per#eive as more valuale than #ompetitors3 oferin"s.

than #ompetitors3 oferin"s. Resear#h #onsumer needs and

Resear#h #onsumer needs and #hara#teristi#s.

#hara#teristi#s.

Resear#h the levels o pro<t Resear#h the levels o pro<t asso#iated with various

asso#iated with various #onsume#onsumerr needs and #hara#teristi#s.

needs and #hara#teristi#s. Understand the pur#hase ehavior

Understand the pur#hase ehavior pro#ess and the inGuen#es on

pro#ess and the inGuen#es on #onsumer

#onsumer ehaviorehavior..

Understand #onsumer ehavior in Understand #onsumer ehavior in relation to the #ompany3s produ#t. relation to the #ompany3s produ#t. Reali?e that ea#h #ustomer

Reali?e that ea#h #ustomer transa#tion is a

transa#tion is a dis#redis#rete sale.te sale.

a!e ea#h #ustomer transa#tion part a!e ea#h #ustomer transa#tion part o an on"oin" relationship with the o an on"oin" relationship with the

(54)

(55)

8m*a%t o) .igital

Te%hnologies

(56)

(57)

The Mo#ile Consumer

•

• WirWireless eless ediaedia

essa"es will essa"es will e7pand as@

e7pand as@

–

– 8lat:rate data8lat:rate data

traH# in#reases traH# in#reases

–

– %#reen ima"e%#reen ima"e

Auality is Auality is enhan#ed enhan#ed – – Consumer:userConsumer:user e7perien#es with e7perien#es with we

we appli#atioappli#ationsns improve

improve

&enetration

&enetration o o Internet Internet Usa"e Usa"e ,mon",mon" oile

oile %us#riers %us#riers in 1in 1 Coun Countries :tries : 8I>UR- 1.'

(58)

(59)

Consumer Behavior 8s

8nterdis%i*linar,

(60)

(61)

A Sim*le Model o) Consumer .e%ision

Ma/ing ; <igure 4

(62)