1. Introduction to Consumer Behavior and Marketing Strategy
Chapter 1
Introduction to Consumer Behavior and Marketing Strategy

2. Introduction
The marketing concept suggests an organization should satisfy consumer needs and wants in order to make a profit
Need to understand customers
Must stay close to customers
Past problems with marketing concept

3. Introduction cont.
Shift of focus to better serve consumers for three major reasons
Dramatic success of Japanese companies
Focus on providing consumers value-laden products
Superior quality and lower prices of Japanese products

4. Introduction cont.
Dramatic increase in the quality of consumer and marketing research
Use of technology to identify and know customers
Ability to track consumer reactions

5. Introduction cont. Development of the Internet as a marketing tool
E-marketing potential
Increased importance of consumer behavior research
Ability to conduct marketing research studies

6. What is Consumer Behavior?
The dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives

7. What is Consumer Behavior? cont.
Involves the thoughts and feelings people experience and the actions they perform in consumption processes
Includes all things in the environment that influence thoughts, feelings, and actions

8. What is Consumer Behavior? cont.
Consumer behavior is dynamic
Thinking, feelings, and actions of individual consumers, targeted consumer groups, and society at large are constantly changing
Requires ongoing consumer research and analysis
Makes development of marketing strategies difficult

9. What is Consumer Behavior? cont.
Consumer behavior involves interactions
Among people’s thinking, feelings and actions, and the environment
Marketers need to understand
What products and brands mean to consumers
What consumers must do to purchase them
What influences shopping, purchase, and consumption

10. What is Consumer Behavior? cont.
Consumer behavior involves exchanges
People give up value to others and receive something in return

11. Approaches to Consumer Behavior Research

12. Approaches to Consumer Behavior Research cont.
Major approaches to studying consumer behavior
Interpretive
Based on theories and methods from cultural anthropology
Objective is to understand consumption and its meanings
Methods of study involve
long interviews
focus groups

13. Approaches to Consumer Behavior Research cont.
Traditional
Based on theories and methods from cognitive, social, and behavioral psychology, and sociology
Objective is to explain consumer decision making and behavior
Methods of study involve
experiments
surveys

14. Approaches to Consumer Behavior Research cont.
Marketing science
Based on theories and methods from economics and statistics
Objective is to predict consumer choice and behavior
Methods of study involve
math-modeling
simulation

15. Uses of Consumer Behavior Research
Three groups use knowledge about consumer behavior and consumer behavior research

16. Uses of Consumer Behavior Research cont.

17. Uses of Consumer Behavior Research cont.
Marketing organizations
Businesses attempting to sell products
Organizations that seek exchanges with consumers
Government and political organizations
Major concern is monitoring and regulating exchanges between marketing organizations and consumers

18. Uses of Consumer Behavior Research cont.
Consumers
Includes consumers and organizational buyers who exchange resources for various goods and services
Interest in making exchanges

19. Consumer Behavior’s Role in Marketing Strategy
Design, implementation, and control of a plan to influence exchanges to achieve organizational objectives

20. Consumer Behavior’s Role in Marketing Strategy cont.
Developing and presenting marketing stimuli at selected target markets to influence
What they think
How they feel
What they do
Powerful force on consumers and society at large

21. Summary
The marketing concept was defined and past problems were discussed
The aspects of consumer behavior were presented
Three major approaches to consumer behavior research were exhibited
The groups that use knowledge about consumer behavior and research were identified
The role of consumer behavior in a marketing strategy was discussed