Chap 1 MKT 481
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Nazrul JewelChap 1 MKT 481
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Nazrul JewelConsumer Behavior, 12E
CHAPTER ONE: Consumer Behavior and Technology
Consumer behavior is the study of consumers’ choices or actions during searching, evaluating,
purchasing, using and disposing of products and services that they believe would satisfy their
needs.
The ultimate objective core of marketing is
- identifying unfilled needs (consumer desires that are unmet, or only partially satisfied
by the products or services available)
- delivering products and services that satisfy these needs.
Marketers Responsibility:
Uncover unfilled needs
Create and promote superior offerings
Consumer behavior
- *explains how individuals make decision to spend their available resources (i.e.,
money, time, and effort) on goods that marketers offer for sale
- *describes which products and brands consumers select or bye and why, when,
where, and how often they purchase, use them, how they evaluate them after the
purchase, and whether or not they buy them repeatedly.
*Explain means providing specific details, more detailed than “describe”.
*Describe means a general overview of something
The car ad in Figure 1.1 reflects Porsche’s Understanding of their customers’ needs.
People buy cars because they need personal transportation. However, the types of cars they
purchase are determined not by needs alone, but also by how cars express their owners’
characteristics (i.e., psychological and sociological) and lifestyles, including financial resources.
Therefore, car marketers differentiate their products by how specific car brands and models
appeal to buyers’ psychology. Egotism and power are pervasive psychological needs, and
marketers often appeal to them in advertisement.
The tagline in the Porsche Boxster ad
in Figure 1.1 states that, “unfulfilled
dreams cost a lot more,” and urges
buyers to “fulfill their dreams rather
than deny them.” Recognizing that
many daydreams about buying the top-
of-the-line and exceptionally engineered
Porsche but might feel conflicted
because of its high price, the ad states
that, “It is expensive to fulfill one’s
dreams, but it is worth the expense.”
The ad also reinforces the decisions of
consumers who had purchased the car:
“Of all the emotions you can expect
while driving a Boxster, regret will
never be one of them,” and ends with
Porsche’s classic tagline: “Porsche.
There is no substitute.”
While Porsche appeals to fulfilling a
dream, an advertising campaign for the
Scion’s sporty car—which also appeals
to young adults—features such slogans as Stand with Us by Standing Out, Make an Impression
by Breaking the Mold, and Be an Icon Not an Imitation.
The prices of the two cars are far apart and the two brands target different consumer groups.
Porsche tells consumers that, although the car is very pricey, it is worth the price. The much
more affordable Scion also targets young people, but by appealing to drivers who want to stand
out and appear distinctive from others. Nevertheless, both ads appeal to unfilled needs and
demonstrate marketers’ grasp of car buyers’ mindsets.
Two Consumer Entities
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. For example: This is you when
you go to Best Buy to purchase a new television for your home.
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. The organizational consumer is buying for the organization or to re-sell to the personal
consumer.
Although both types of consumer entities are important, we will be focusing on the personal
consumer throughout these presentations.
Development of the Marketing Concept
1. The Production Concept
Assumes that consumers are interested
primarily in product availability at low prices
Marketing objectives:
- Cheap, efficient production
- Intensive distribution
- Market expansion
2. 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
3. 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
4. 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:
- Make what you can sell
- Focus on buyer’s needs
5. The Societal Marketing Concept
Marketers must think beyond immediate customer satisfaction and business performance toward
sustainable strategies that preserve the world for future generations.
6.
Implementing the Marketing Concept
1. Consumer Research: The process and tools used to study consumer behavior.
2. Segmentation: Process of dividing the market into subsets of consumers with common needs
or characteristics
Think of a product that you regularly purchase is highly segmented?
- Shampoo is usually highly segmented
- There are products based on gender, hair type, preferred smell, and price.
- Segmentation is useful because the marketers can clearly match their product benefits to
the consumer. If you have dandruff, then use our specially formulated dandruff shampoo.
If you are a guy, use our Axe product because it will make you look so good women will
not be able to resist you.