McGraw-Hill/Irwin

Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

CB definition Key aspects

select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts Marketing decision Conduct research
Complex multidimensional processes

Ethical issues

Applications Marketing Strategy and CB

Marketing Strategy Regulatory Policy Social Marketing Informed Individuals

The Nature of Consumer Behavior

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CHAPTER

CONSUMER BEHAVIOR AND MARKETING STRATEGY

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Consumer Behavior In The News

Segmenting the Automobile Market J.D. Powers Examined Car-Buyer Segments. Can You Predict the Market for Each Brand?

Honda Civic
Honda Accord Toyota Sienna Mini Van Cadillac STS Lexus LS 430
Source: D. Kiley, Sexy or Sensible? Business Week, January 16, 2006, p. 60-61.

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Consumer Behavior In The News

Segmenting the Automobile Market J.D. Powers Examined Car-Buyer Segments. Can You Predict the Market for Each Brand?

Honda Civic teenage terror

Honda Accord recent MBA grad Toyota Sienna Mini Van suburban mom Cadillac STS mid-career executive Lexus LS 430 titan of industry
Source: D. Kiley, Sexy or Sensible? Business Week, January 16, 2006, p. 60-61.

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Consumer Behavior and Marketing Strategy

Consumer behavior is 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.

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Applications of Consumer Behavior

1. Marketing Strategy

2. Regulatory Policy

3. Social Marketing

4. Informed Individuals
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Marketing Strategy and Consumer Behavior

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Market Analysis Components

1. The Consumers 2. The Company 3. The Competitors 4. The Conditions

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Market Segmentation

Market segmentation is a portion of a larger market whose needs differ from the larger market.

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Market Segmentation
Market Segmentation Involves Four Steps:
1. Identifying Product-Related Need Sets 2. Grouping Customers with Similar Need Sets 3. Describing Each Group 4. Selecting an Attractive Segment(s) to Serve

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Market Segmentation
Market Segment Attractiveness Worksheet

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Marketing Strategy
Marketing Strategy is the answer to the question: How will we provide superior customer value to our target market? This requires the formulation of a consistent marketing mix, which includes the
1. Product 2. Price 3. Communications 4. Distribution, and 5. Services

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Consumer Decisions
The consumer decision process intervenes between the marketing strategy, as implemented in the marketing mix, and the outcomes. The firm can succeed only if consumers see a need that its product can solve, become aware of the product and its capabilities, decide that it is the best available solution, proceed to buy it, and become satisfied with the result of the purchase.

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Outcomes
1. Firm Outcomes
2. Individual Outcomes 3. Society Outcomes

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Outcomes

Creating Satisfied Customers

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The Nature of Consumer Behavior

Overall Conceptual Model of Consumer Behavior

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The Nature of Consumer Behavior

External Influences
The following are the major external influences: Culture
Demographics and social stratification Ethnic, religious, and regional subcultures Families and households Groups

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The Nature of Consumer Behavior

Internal Influences
Internal influences include: Perception
Learning Memory Motives Personality Emotions Attitudes
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The Nature of Consumer Behavior

Self-Concept and Lifestyle
Self-concept is the totality of an individuals thoughts and feelings about oneself. Lifestyle is how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them.

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The Nature of Consumer Behavior

Situations and Consumer Decisions
Consumer decisions result from perceived problems and opportunities. Consumer problems arise in specific situations and the nature of the situation influences the resulting consumer behavior.

Using Outdoor Media to Trigger Problem Recognition

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Discussion Questions
27.Why would someone shop on the Internet? Buy an iPod? Eat at TGI Fridays frequently?
Why would someone else not make those purchases? How would you choose one outlet, brand, or model over the others? Would others make the same choice in the same way?

Discussion Questions
31.Describe your lifestyle. How does it differ from your parents lifestyle? 33.Describe a recent purchase you made. To what extent did you follow the consumer decisionmaking process described in this chapter? How would you explain any differences?