1. Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK
Chapter 1
Introduction: The Impact of the Digital Revolution on Consumer Behavior

2. Opening Vignette

3. Objectives of One-to-One Marketing
To attain customers
Sell them more products
Make a profit

4. Digital Revolution in the Marketplace
Allows customization of products, services, and promotional messages like never before
Enhances relationships with customers more effectively and efficiently

5. Changes in the Business Environment
Increased consumer power
Access to information
More products and services
Interactive and instant exchanges
Access to customer patterns and preferences
Evolution to other -Web connection
PDAs
HDTV
Mobile phones

6. 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.

7. Personal Consumer
The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.

8. Organizational Consumer
A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.

9. Development of the Marketing Concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept

10. The Production Concept
Assumes that consumers are interested primarily in product availability at low prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion

11. The Product Concept
Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features
Marketing objectives:
Quality improvement
Addition of features
Tendency toward Marketing Myopia

12. The Selling Concept
Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so
Marketing objectives:
Sell, sell, sell
Lack of concern for customer needs and satisfaction

13. The Marketing Concept
Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition
Marketing objectives:
Profits through customer satisfaction

14. Business Leaders Who Understood Consumer Behavior
Alfred Sloan, General Motors
Colonel Sanders, KFC
Ray Kroc, McDonald’s

16. The Marketing Concept
A consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own organizational goals.

17. Implementing the Marketing Concept
Consumer Research
Segmentation
Targeting
Positioning

18. Consumer Research
The process and tools used to study consumer behavior.
Two perspectives:
Positivist approach
Interpretivist approach

19. Segmentation, Targeting, and Positioning
Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics
Targeting: selecting one ore more of the segments to pursue
Positioning: developing a distinct image for the product in the mind of the consumer

20. Successful Positioning
Communicating the benefits of the product, rather than its features
Communicating a Unique Selling Proposition for the product

21. The Marketing Mix
Product
Price
Place
Promotion

22. Successful Relationships
Customer
Value
Customer
Retention
Customer
Satisfaction

23. Types of Customers Loyalists Apostles Defectors Terrorists Hostages
Mercenaries

24. Customer Profitability-Focused Marketing
Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead

25. Societal Marketing Concept
A revision of the traditional marketing concept that suggests that marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole.

26. The Societal Marketing Concept
All companies prosper when society prospers.
Companies, as well as individuals, would be better off if social responsibility was an integral component of every marketing decision.
Requires all marketers adhere to principles of social responsibility.

27. Evaluation of Alternatives Consumer Decision Making
Firm’s Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial sources
4. Social class
5. Subculture and culture
Input
External Influence
Need Recognition
Prepurchase Search
Evaluation of Alternatives
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Consumer Decision Making
Process
Experience
Figure 1-1:
A Model of Consumer Decision Making
Purchase
1. Trial
2. Repeat purchase
Post-Decision
Behavior
Output
Postpurchase Evaluation