Why study consumer behavior?

Consumer behavior theory provides the manager with the proper questions to ask Marketing practice designed to influence consumer behavior influences the firm, the individual, and society All marketing decisions and regulations are based on assumptions about consumer behavior

Marketing Strategy

Applications of Consumer Behavior

To satisfy target consumer needs To protect consumers To help consumers To better understand how societies function

Regulatory Policy

Social Marketing

Informed Individuals

Marketing Strategy & What is Customer Value? Consumer Behavior

The difference between all the benefits derived from a total product and all the costs of acquiring those benefits. What is required of a firm to provide superior customer value? It must do a better job of anticipating and reacting to customer needs than the competition does.

What role does consumer behavior play in creating superior customer value? An understanding of consumer behavior is the basis for marketing strategy formulation, and the consumers reaction to this marketing strategy ultimately determines the firms success or failure.

Marketing Strategy & Consumer Behavior

Market Analysis Components

The Consumers The Company The Competitors The Conditions

Market Segment: a portion of a larger market whose needs differ somewhat from the larger market. Four steps to segmentation:
Identify product-related need sets Group customers with similar need sets Describe each group Select an attractive segment(s) to serve

Market Segmentation

Segmentation What isMarket market segmentation ? Market segmentation involves aggregating prospective buyers into groups that: 1. have common needs 2. will respond similarly to marketing actions
Why segment the market? Market segmentation links market needs to an organizations marketing programs. When does an organization segment the market? When the potential increase in profits as a result of segmenting outweigh the costs of

How will we provide superior customer value to our target market? Marketing Mix
The Product Communications Price Distribution Service

Marketing Strategy

Outcomes Firm:
Product positioning Sales Customer Satisfaction

Individual:
Need Satisfaction Injurious Consumption

Society:
Economic Physical Environment Social Welfare

Creating Satisfied Customers

Consumer Behavior is Product Person Situation Specific

Personal Characteristics

Product Characteristics

Consumer Behavior

Marketing Strategy

Consumption Situation

Consumer Lifestyles and Consumer Decisions

Needs/Attitudes That Influence Consumption Decisions

Consumer Lifestyle

Consumer Choices

Behavior/Experiences That Influence Consumption Decisions