concepts of consumer behavior
DESCRIPTION
This slides explains the concepts of Consumer Behavior and relations.Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and societyTRANSCRIPT
![Page 1: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/1.jpg)
Consumer Behavior: Meeting Changes and
Challenges
CHAPTERONE
![Page 2: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/2.jpg)
Consumer Behavior
• The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
2Chapter One Slide
![Page 3: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/3.jpg)
Two Consumer Entities
3Chapter One Slide
![Page 4: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/4.jpg)
Development of the Marketing Concept
4Chapter One Slide
![Page 5: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/5.jpg)
Production Orientation
• From the 1850s to the late 1920s• Companies focus on production capabilities• Consumer demand exceeded supply
5Chapter One Slide
![Page 6: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/6.jpg)
Sales Orientation
• From the 1930s to the mid 1950s• Focus on selling• Supply exceeded customer demand
6Chapter One Slide
![Page 7: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/7.jpg)
Marketing Concept
• 1950s to current - Focus on the customer!• Determine the needs and wants of specific
target markets• Deliver satisfaction better than competition
7Chapter One Slide
![Page 8: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/8.jpg)
Societal Marketing Concept
• Considers consumers’ long-run best interest
• Good corporate citizenship
Chapter One Slide 8
![Page 9: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/9.jpg)
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 9
![Page 10: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/10.jpg)
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 10
![Page 11: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/11.jpg)
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 11
![Page 12: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/12.jpg)
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 12
![Page 13: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/13.jpg)
The Marketing Mix
13Chapter One Slide
![Page 14: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/14.jpg)
Customer Value, Satisfaction, Trust, and Retention
14Chapter One Slide
![Page 15: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/15.jpg)
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
Chapter One Slide 15
![Page 16: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/16.jpg)
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 on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries
Value, Satisfaction, Trust, and Retention
Chapter One Slide 16
![Page 17: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/17.jpg)
Successful Relationships
• Customer Value• Customer
Satisfaction• Customer Trust• Customer
Retention
• Establishing and maintaining trust is essential.
• Trust is the foundation for maintaining a long-standing relationship with customers.
Value, Satisfaction, Trust, and Retention
Chapter One Slide 17
![Page 18: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/18.jpg)
Successful Relationships
• Customer Value• Customer
Satisfaction• Customer Trust• Customer
Retention
• The objective of providing value is to retain highly satisfied customers.
• Loyal customers are key– They buy more products– They are less price
sensitive– Servicing them is cheaper– They spread positive
word of mouth
Value, Satisfaction, Trust, and Retention
Chapter One Slide 18
![Page 19: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/19.jpg)
Top 10 Ranked U.S. Companies in Terms of Consumers’ Trust and Respect of Privacy
Table 1.2Top 10 Companies
• American Express • eBay• IBM• Amazon• Johnson & Johnson• Hewlett-Packard• U.S. Postal Service• Procter and Gamble• Apple• Nationwide
Chapter One Slide 26
![Page 20: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/20.jpg)
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
20Chapter One Slide
![Page 21: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/21.jpg)
Chapter One Slide 21
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 and the influences on consumer behavior.
Understand consumer behavior in relation to the company’s product.
Realize that each customer transaction is a discrete sale.
Make each customer transaction part of an ongoing relationship with the customer.
![Page 22: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/22.jpg)
Impact of Digital Technologies
22Chapter One Slide
![Page 23: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/23.jpg)
The Mobile Consumer
• Wireless Media Messages will expand as:– Flat-rate data traffic
increases– Screen image
quality is enhanced– Consumer-user
experiences with web applications improve
23Chapter One Slide
Penetration of Internet Usage Among Mobile Subscribers in 16 Countries - FIGURE 1.3
![Page 24: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/24.jpg)
Consumer Behavior Is Interdisciplinary
24Chapter One Slide
![Page 25: Concepts of Consumer Behavior](https://reader031.vdocument.in/reader031/viewer/2022020722/577cc67c1a28aba7119e5d39/html5/thumbnails/25.jpg)
A Simple Model of Consumer Decision Making - Figure 1.4
Chapter One Slide 25