CHAPTER ONE

Consumer
Behavior
Consumer Behavior
and
Marketing
Strategy
and Marketing Strategy
McGraw-Hill/Irwin

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserv

What is 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.

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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
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Applications of Consumer Behavior

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Marketing Strategy
Regulatory Policy
Social Marketing
Informed Individuals

Marketing Strategy & Consumer Behavior

Creating Customer Value:

The difference between all the benefits
derived from a total product and all the
costs of acquiring those benefits.

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Marketing Strategy & Consumer Behavior

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Consumer Insight 1-1

What services could become experienceprovoking events? How would they do this?
How can retailers, including Internet outlets,
provide their customers experiences?
What would a store like Niketown (or a local
shopping mall in your area) have to do to char
ge admission for customers to enter?

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Market Analysis Components

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The Consumers
The Company
The Competitors
The Conditions

Market Segmentation

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

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Market Segment Attractiveness

10

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Marketing Strategy

11

How will we provide superior customer

value to our target market?
Marketing Mix
The Product
Communications
Price
Distribution
Service

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Outcomes

12

Firm:
Product positioning
Sales
Customer Satisfaction
Individual:
Need Satisfaction
Injurious Consumption
Society:
Economic
Physical Environment
Social Welfare
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Creating Satisfied Customers

13

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Overall Model Of Consumer Behavior

14

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Consumer Insight 1-2

15

What does the consumption of a product

like Nikes mean to Andre?
What does this story say about our
society and the impact and role of marke
ting?

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