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7/22/2019 Schiffman_CB10_PPT_01
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Consumer Behavior:Meeting Changes and
Challenges
CHAPTER
ONE
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Learning Objectives
1. To Understand What Consumer Behavior Is and theDifferent Types of Consumers.
2. To Understand the Relationship Between ConsumerBehavior and the Marketing Concept, the SocietalMarketing Concept, as Well as Segmentation, Targeting,and Positioning.
3. To Understand the Relationship Between ConsumerBehavior and Customer Value, Satisfaction, Trust, and
Retention.4. To Understand How New Technologies Are Enabling
Marketers to Better Satisfy the Needs and Wants ofConsumers.
2Chapter One Slide
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Learning Objectives (continued)
5. To Understand How Marketers Are IncreasinglyAble to Reach Consumers Wherever ConsumersWish to Be Reached.
6. To Understand How the World’s Economic
Condition Is Leading to Consumption Instabilityand Change.
7. To Understand the Makeup and Composition ofa Model of Consumer Behavior.
8. To Understand the Structure of This Book
3Chapter One Slide
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To Which Segment of
Consumers Will This Ad Appeal?
Chapter One Slide 4
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A Segment of Consumers Who are
Environmentally Concerned
Chapter One Slide 5
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Consumer Behavior
• The behavior that consumers display in
searching for, purchasing, using, evaluating,
and disposing of products and services thatthey expect will satisfy their needs.
6Chapter One Slide
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Two Consumer Entities
7
Personal Consumer
• The individual whobuys goods andservices for his or herown use, forhousehold use, forthe use of a familymember, or for afriend.
OrganizationalConsumer
• A business,government agency,or other institution(profit or nonprofit)that buys the goods,services, and/orequipment necessaryfor the organization tofunction.
Chapter One Slide
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Development of the
Marketing Concept
8
ProductionOrientation
SalesOrientation
MarketingConcept
Chapter One Slide
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Production Orientation
• From the 1850s to the late 1920s
• Companies focus on production capabilities
• Consumer demand exceeded supply
9
Production
Orientation
Sales
Orientation
Marketing
Concept
Chapter One Slide
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Sales Orientation
• From the 1930s to the mid 1950s
• Focus on selling
• Supply exceeded customer demand
10
Production
Orientation
Sales
Orientation
Marketing
Concept
Chapter One Slide
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Marketing Concept
• 1950s to current - Focus on the customer!
• Determine the needs and wants of specific
target markets• Deliver satisfaction better than competition
11
ProductionOrientation
SalesOrientation
MarketingConcept
Chapter One Slide
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Discussion Questions
1. What two companies do
you believe grasp and use
the marketing concept?
2. Why do you believe this?
Chapter One Slide 12
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Societal Marketing Concept
• Considers consumers’
long-run best interest
•
Good corporatecitizenship
Chapter One Slide 13
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The Marketing Concept
• Consumer Research
• Segmentation
• Market Targeting
• Positioning
• The process and tools
used to study consumer
behavior
Embracing the Marketing
Concept
Chapter One Slide 14
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The Marketing Concept
• Consumer Research
• Segmentation
• Market Targeting
• Positioning
• Process of dividing the
market into subsets of
consumers with
common needs or
characteristics
Implementing the
Marketing Concept
Chapter One Slide 15
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Discussion Questions
1. What products that you regularly purchase
are highly segmented?
2. What are the different segments?3. Why is segmentation useful to the marketer
for these products?
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The Marketing Concept
• Consumer Research
• Segmentation
• Market Targeting
• Positioning
The selection of one or
more of the segments
identified to pursue
Implementing the
Marketing Concept
Chapter One Slide 17
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The Marketing Concept
• Consumer Research
• Segmentation
• Market Targeting
• Positioning
• Developing a distinct image for
the product in the mind of the
consumer
• Successful positioning includes:
– Communicating the benefits
of the product
– Communicating a unique
selling proposition
Implementing the
Marketing Concept
Chapter One Slide 18
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The Marketing Mix
Product Price
Place Promotion
MarketingMix
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Customer Value, Satisfaction, Trust,
and Retention
20
Successful Relationships
Customer
value
High levelof
customersatisfaction
Strongsense of
customertrust
Customer
retention
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Successful Relationships
• Customer Value
• Customer
Satisfaction
• Customer Trust
• Customer
Retention
• Defined as the ratio between
the customer’s perceived
benefits and the resources
used to obtain those
benefits
• Perceived value is relative
and subjective• Developing a value
proposition is critical
Value, Satisfaction,
Trust, and Retention
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Discussion Questions
• How does McDonald’s
create value for the
consumer?
• How do they
communicate this
value?
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Successful Relationships
• Customer
Value
• Customer
Satisfaction
• Customer Trust• Customer
Retention
• The individual's perception
of the performance of the
product or service in
relation to his or her
expectations.
•Customer groups based onloyalty include loyalists,
apostles, defectors,
terrorists, hostages, and
mercenaries
Value, Satisfaction,
Trust, and Retention
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Successful Relationships
• Customer Value
• CustomerSatisfaction
• Customer Trust
•
CustomerRetention
• Establishing and
maintaining trust is
essential.
• Trust is the
foundation for
maintaining a long-standing relationship
with customers.
Value, Satisfaction,
Trust, and Retention
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Successful Relationships
• Customer Value
• CustomerSatisfaction
• Customer Trust
•
CustomerRetention
• The objective of providingvalue is to retain highlysatisfied customers.
•Loyal customers are key – They buy more products
– They are less pricesensitive
– Servicing them ischeaper
– They spread positiveword of mouth
Value, Satisfaction,
Trust, and Retention
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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 Chapter One Slide 26
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Customer Profitability-Focused
Marketing
• Tracks costs andrevenues ofindividual consumers
•
Categorizes theminto tiers based onconsumptionbehavior
•
A customer pyramidgroups customersinto four tiers
27
Platinum
Gold
Iron
Lead
Chapter One Slide
THE TRADITIONAL MARKETING CONCEPT VALUE- AND RETENTION-FOCUSED
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Chapter One Slide 28
THE TRADITIONAL MARKETING CONCEPT VALUE- AND RETENTION-FOCUSED
MARKETING
Make only what you can sell instead of trying
to sell what you make.
Use technology that enables customers to
customize what you make.
Do not focus on the product; focus on the
need that it satisfies.
Focus on the product’s perceived value, as well
as the need that it satisfies.
Market products and services that match
customers’ needs better than competitors’
offerings.
Utilize an understanding of customer needs to
develop offerings that customers perceive as
more valuable than competitors’ offerings.
Research consumer needs and characteristics. Research the levels of profit associated with
various consumer needs and characteristics.
Understand the purchase behavior process andthe influences on consumer behavior.
Understand consumer behavior in relation tothe company’s product.
Realize that each customer transaction is a
discrete sale.
Make each customer transaction part of an
ongoing relationship with the customer.
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Impact of Digital Technologies
29
Marketers
• More products and
services throughcustomization
• Instantaneous exchanges
• Collect and analyze data
Consumers
• Power
• Information
• Computers, phones, PDA,GPS, smart TV
Chapter One Slide
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The Mobile Consumer
• Wireless MediaMessages willexpand as: –
Flat-rate datatraffic increases
– Screen imagequality is enhanced
– Consumer-user
experiences withweb applicationsimprove
30Chapter One Slide
Penetration of Internet Usage Among Mobile
Subscribers in 16 Countries - FIGURE 1.3
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Consumer Behavior Is
Interdisciplinary
Psychology
Sociology
Socialpsychology
Anthropology
Economics
31Chapter One Slide
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A Simple Model of Consumer Decision Making - Figure 1.4