What you will learn

Session 1:
Consumer behaviour and Marketing strategy

Session 2:
Cross-Cultural Variations, and Group Influence
on Consumer Behavior
Session 3:
Customer Perception

Session 8:
Article presentation
Session 9:
The Process and Problem Recognition
Session 10:
Information search
Session 11:
Alternative Evaluation, and Selection

Session 4:
Consumer learning, memory,
and product positioning

Session 12:
Post-purchase processes, customer satisfaction,
and customer commitment

Session 5:
Motivation, Personality, Emotion

Session 13:
Organizations as consumers

Session 6:
Attitudes and Influencing Attitudes

Session 14:
Group Project presentation

Session 7:
Self-concept and lifestyle

Session 15: Final exam

CHAPTER

01

Consumer
Behavior and
Marketing
Strategy

McGraw-Hill/Irwin

Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

1-3

Learning Objectives
Define consumer behavior
Summarize the applications of consumer behavior
Explain how consumer behavior can be used to
develop marketing strategy
Explain the components that constitute a conceptual
model of consumer behavior
Discuss issues involving consumption meanings and
firm attempts to influence them

1-4

ConsumerBehaviorInTheNews
Target Marketing. Pepsi?
Can you predict the characteristics of the
average Pepsi consumers?
Behavioural
Psychographic
Profile
https://www.youtube.com/watch?v=W7jkygJ_Q
No

Source: N. Zmuda, Forget Golf, Advertising Age, October 10, 2011, p. 8.

1-5

ConsumerBehaviorInTheNews

Source: N. Zmuda, Forget Golf, Advertising Age, October 10, 2011, p. 8.

1-6

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.

1-7

Applications in Consumer Behavior

1. Marketing Strategy
https://www.youtube.com/watch?v=-AWukVK2Fnw
2. Regulatory Policy
http://study.com/academy/lesson/governmentregulation-agencies-for-consumer-protection.html
3. Social Marketing
https://www.youtube.com/watch?v=TyqtqEsk4Hk
4. Informed Individuals: reading Engaging
the Consumer

on Sustainability: The Freedom of Data

(http://www.btplc.com/Betterfuture/Videos/TheFreedomofD
ata/index.htm)

1-8

Marketing Strategy and Consumer Behavior

1-9

Market Analysis Components

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

1-10

Market Segmentation

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

1-11

Market Segmentation
Market Segmentation Involves Four Steps:
1. Identifying Product-Related Need Sets: the
need/value/benefit sets that the firms current or
potential product might satisfy
2. Grouping Customers with Similar Need Sets
3. Describing Each Group: in terms of demographics,
lifestyles, and media usage
4. Selecting an Attractive Segment(s) to Serve
1-12

Market Segmentation

1-13

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,
mix which includes the
1. Product
2. Communications
3. Price
4. Distribution,
Distribution and
5. Services

1-14

Consumer Decisions

The consumer decision process intervenes between

the marketing strategy,
strategy as implemented in the
marketing mix,
mix and the outcomes.
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.

1-15

Outcomes
1. Firm Outcomes: product/brand position; Sales
and profit; Customer satisfaction
2. Individual Outcomes: need satisfaction;
Injurious consumption
3. Society Outcomes: economic outcomes,
environment outcome, social welfare

1-16

Outcomes
Creating Satisfied Customers

Pella Windows on Creating Satisfied Customers through

Quality
https://www.youtube.com/user/PellaWindowsandDoors

1-17

The Nature of Consumer Behavior

Overall Conceptual Model of Consumer Behavior

1-18

The Nature of Consumer Behavior

External Influences
Culture
Demographics and social stratification
Ethnic, religious, and regional subcultures
Families and households
Groups

1-19

The Nature of Consumer Behavior

Internal Influences

Perception

Learning
Memory
Motives
Personality
Emotions
Attitudes

1-20

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.

1-21

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

1-22

The Meaning of Consumption

Consumption has meaning beyond satisfaction
of minimum or basic consumer needs
Symbolic needs
Status
Identity
Group acceptance

1-23

Classactivity
Workwithinyourgroup:
Chooseaproductthat
yourgroupismost
familiarwith.
Basedontheconceptual
modelofconsumer
behavior.Pleasepropose
differentquestionstoask
andunderstandthe
consumersofyourchosen
product.