Chapter 1: Consumer behavior and marketing strategy

consumer behavior
the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
1. key aspect regarding consumer behavior
its a complex multidimensional process
2. key aspect regarding consumer behavior
successful marketing decisions require extensive information about consumer behavior
3. key aspect regarding consumer behavior
firms must collect info about the specific consumers involved in the marketing decision at hand
4. key aspect regarding consumer behavior
marketing practices designed to influence consumer behavior involve ethical issues that affect the firm, the individual, and society.
applications in consumer behavior
(1) marketing strategy
(2) regulatory policy
(3) social marketing
(4) informed individuals
social marketing
positive behaviors
marketing strategy (marketing mix)
the 4 p’s (price, place, promotion, place)
customer value
the difference between all the benefits derived from a total product and all the costs of acquiring those benefits
-value considered from customer’s perspective
-superior customer value means organization has to anticipate and react to customer needs better than competitor
market segmentation
identifying product-related need sets, grouping customers with similar need sets, describing each group, selecting an attractive segment(s) to serve
depth interviews
one on one open-ended discussions between a researcher and a subject
focus groups
involves 8-15 subjects and an interviewer
observation
human or mechanical observation of behavior
physiological measures
direct observations of physical responses to a stimulus
consumer research techniques
depth interviews, focus groups, observation, physiological measures, projective techniques, surveys, experiments
projective techniques
requires the interpretation of ambiguous stimuli to probe hidden feelings, attitudes, and motivations
surveys
involve questionnaires to gather information from a large number of people
experiments
involve changing one or more variables and observing the effects on another variable
IMC
integrated marking communication
(another name for promotion)
outcomes
firm, individual, and society
product position
the image of the product or brand in the consumer’s mind relative to competing products and brands
sales and profits
critical outcomes as they are necessary for the firm to continue in business
customer satisfaction
remains a concern for marketers. retaining customers requires that they be satisfied with their purchase and use of the product. Its more profitable to maintain existing customers than to replace them with new customers.
firm outcome
product position, sales and profits, customer satisfaction
individual outcomes
need satisfaction, injurious consumption
injurious consumption
the dark side of consumer behavior, occurs when individuals or groups make consumption decisions that have negative consequences for their long-run well-being
need satisfaction
the most obvious outcome of the consumption process for an individual, whether or not a purchase is made, is some level of satisfaction of the need that initiated the consumption process
economic outcomes
the cumulative impact of consumers’ purchase decisions, including the decision to forgo consumption, is a major determinant of the state of a given country’s economy
physical environment outcomes
consumers make decisions that have a major impact on the physical environments of both their own and other societies
social welfare
consumer decisions affect the general social welfare of a society, including having a major impact on the overall quality of life in a society
society outcomes
economic, physical environment, social welfare
self-concept
what someone thinks about themselves
lifestyle
how one lives, depends on how they view themselves
symbolic needs
status, identity, group acceptance
positivist perspective
there is a single, object truth that can be discovered by science
interpretivism
knowledge is time, culture, and context dependent. therefore no single truth exists that can explain the behavior of everyone