...CHAPTER 6 ANALYZING CONSUMER MARKETS LEARNING OBJECTIVES In this chapter, we will address the following questions: 1. How do consumer characteristics influence buying behavior? 2. What major psychological processes influence consumer responses to the marketing program? 3. How do consumers make purchasing decisions? 4. In what ways do consumers stray from a deliberative, rational decision process? CHAPTER SUMMARY 1. Consumer behavior is influenced by three factors: cultural (culture, subculture, and social class), social (reference groups, family, and social roles and statuses), and personal (age, stage in the life cycle, occupation, economic circumstances, lifestyle, personality, and self‐concept). Research into these factors can provide clues to reach and serve consumers more effectively. 2. Four main psychological processes affecting consumer behavior are motivation, perception, learning, and memory. 3. To understand how consumers actually make buying decisions, marketers must identify who makes and has input into the buying decision; people can be initiators, influencers, deciders, buyers, or users. Different marketing campaigns might be targeted to each type of person. 4. The typical buying process consists of the following sequence of events: problem recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior. The marketers’ job is to understand the behavior at each stage. The attitudes of others...
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...\CONSUMER BEHAVIOUR Basic concepts and definition Objectives: By the end of this lesson you will be able to: Explain why marketing managers should understand consumer behavior Define and explain basic concepts in the study of consumer behavior. Introduction Why is it difficult to market any product to consumers? The reason is simple: Consumers are complex and constantly changing. Not only is it difficult to figure what marketing program will work but also what worked yesterday may not work today. Thus marketers must constantly improve their understanding of customers. Understanding consumer behavior and knowing your customers is never simple. Customers may say one thing but do another. They may not be in touch with their deeper motivation. They may respond to last minute influences. Some companies like Kenya Airways, Equity Bank, Microsoft, Coca-Cola e.t.c have stood to profit from understanding how and why their customers buy. On the other hand not understanding your customer’s motivations, needs and preferences can hurt. In Kenya, companies like Elliott’s and Sang Yong Motors failed. Consider also the case of Kodak when it introduced its Advantage camera and proudly marketed it as a high-tech product but to a generation (usually referred to as middle-aged baby comers) for which the bells and whistles of new technology had lost their appeal. It was a costly bust. Basic definitions and concepts Marketing: Just to remind ourselves we can say that...
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...Chapter 1 1. Describe the interrelationship between consumer research, market segmentation and targeting, and the development of the marketing mix for the manufacturer of HDTV sets. Consumer research describes the process and tools used to study consumer behavior. Broadly speaking, there are two theoretical perspectives that guide the development of consumer research methodology: the positivist approach (objective and empirical causal research) and the interpretivist approach (qualitative and based on small samples). The focus of the marketing concept is consumer needs. Three elements for creating a strategic framework for discovering and analyzing those needs are market segmentation, market targeting, and positioning. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics. Because most companies have limited resources, few companies can pursue all of the segments identified for the company to pursue. Market targeting is selecting one or more of the segments identified for the company to pursue. Because many companies have adopted the marketing concept, the marketplace is filled with many products and services claiming to satisfy consumer needs. Positioning is developing a distinct image for the product or service in the mind of the consumer, an image that will differentiate the offering from competing ones and squarely communicate to consumers that the particular product or service will fulfill...
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...Chapter 1 1. Describe the interrelationship between consumer research, market segmentation and targeting, and the development of the marketing mix for the manufacturer of HDTV sets. Consumer research describes the process and tools used to study consumer behavior. Broadly speaking, there are two theoretical perspectives that guide the development of consumer research methodology: the positivist approach (objective and empirical causal research) and the interpretivist approach (qualitative and based on small samples). The focus of the marketing concept is consumer needs. Three elements for creating a strategic framework for discovering and analyzing those needs are market segmentation, market targeting, and positioning. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics. Because most companies have limited resources, few companies can pursue all of the segments identified for the company to pursue. Market targeting is selecting one or more of the segments identified for the company to pursue. Because many companies have adopted the marketing concept, the marketplace is filled with many products and services claiming to satisfy consumer needs. Positioning is developing a distinct image for the product or service in the mind of the consumer, an image that will differentiate the offering from competing ones and squarely communicate to consumers that the particular product or service will fulfill...
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...CONSUMER BEHAVIOR PART ONE CONSUMER BEHAVIOR INTRODUCTION As the twentieth century has come to a close and we have moved into the third millennium, we can see many developments and changes taking place around us with all the industries and firms within each industry trying to keep pace with the changes and diverse needs of the people. Though for decades together, marketers have regarded ‘customer’ as the king and evolved all activities to satisfy this concept is gaining more momentum and importance today. This can largely be attributed to the prevailing market situation. Not only competition has become intense but over an above with the market being flooded with many products. The challenge before the marketers is to understand the diversity of consumer behavior and offer goods and services accordingly. Today the company image is built and made known by its customers. Thus the success of the firm will be determined by how effective it has been in meeting the diverse consumer needs and wants by treating each customer as unique and offering products and services to suit his needs and creating a life time value and relationship with him. (Nair 2004; 3) Marketers have come to realize that their effectiveness in meeting consumer needs directly influences their profitability the better they understand the factors underlying consumer behavior, the better able they are to develop effective marketing strategies to meet consumer needs. (Assael 2001; 3) Today, the digital revolution...
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...Smile Consumer Behaviour - chapter 1 - January 2nd, 2009 hie .. these are consumer behaviour schiffman notes .. il b uploading chapter wise (chpter 1 - Chpter 12)... unable to attach them .. CHAPTER 1 Consumer Behavior: Its Origins and Strategic Applications LEARNING OBJECTIVES After studying this chapter students should be able to: 1. Understand the impact of the digital revolution on general consumer behavior. 2. Define consumer behavior. 3. Identify the two major approaches to the study of consumer behavior. 4. Understand the development of the marketing concept. 5. Understand the role of consumer research in the study of consumer behavior. 6. Understand how segmentation, targeting, and positioning are used in the study of consumer behavior. 7. Define customer value, satisfaction, and retention. 8. Discuss the role of ethics in marketing. 9. Describe the societal marketing concept. 10. Briefly discuss the three interlocking stages of consumer decision-making. CHAPTER SUMMARY The study of consumer behavior enables marketers to understand and predict consumer behavior in the marketplace; it is concerned not only with what consumers buy but also with why, when, where, and how they buy it. Consumer research is the methodology used to study consumer behavior; it takes place at every phase of the consumption process: before the purchase, during the purchase, and after the purchase. Consumer behavior is interdisciplinary; that is, it is based on...
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...Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics in the workplace refers to rules (standards, principles) governing the conduct of organizational members and the consequences of marketing decisions (Ferrell, 2005). Therefore, ethical marketing from a normative perspective approach is defined as “practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit...
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...Associate Professor, Department of Textiles and Consumer Sciences, Florida State University, Tallahassee, Florida, USA Assistant Professor, Department of Consumer Sciences and Nutrition, Laval University, Quebec, Canada Keywords Clothing, Consumer behaviour, Fashion, Image, Innovation, Marketing strategy Abstract Describes the results of a survey of 281 adult women in the state of Florida. We used the 15 adjective pairs of the Malhotra self-concept scale to measure their self-image. A valid and reliable self-report scale measured their fashion innovativeness, thus identifying those consumers most likely to buy new fashions after they first appear in the market. T-tests compared the mean scores on the self-image adjective pairs between 30 innovators and 251 later adopters. Pearson correlation analysis was also performed. The results of both analyses showed that the fashion innovators described themselves uniquely as more comfortable, pleasant, contemporary, formal, colorful, and vain than the later adopters. The results were quite consistent with an earlier published study of college students, lending confidence to this approach to profiling fashion innovators and suggesting that using self-image could be a fruitful way to appeal to these important consumers. Fashion innovativeness Introduction Fashion marketers, clothing theorists, and consumer psychologists all study fashion innovativeness in order to better understand the behavior of fashion innovators and the process of fashion...
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...Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics in the workplace refers to rules (standards, principles) governing the conduct of organizational members and the consequences of marketing decisions (Ferrell, 2005). Therefore, ethical marketing from a normative perspective approach is defined as “practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit...
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...Chapter 1: Introduction 1. Describe the interrelationship between consumer behavior and the marketing concept. 2. Describe the interrelationships between consumer research, marker segmentation and targeting, and the development of the marketing mix for a manufacturer of HDTV sets. 3. Discuss the interrelationships among customer expectations and satisfaction, perceived value, and customer retention. Why is customer retention essential? Key Terms: • Consumer behavior 23 • Consumer decision making 36 • Customer retention 30 • Customer Satisfaction 29 • Customer value 29 • Market segmentation 28 • Market targeting 28 • Market concept 26 • Marketing mix 28 • Personal consumer 23 • Organizational consumer 23 • Positioning 28 • Societal marketing concept 27 Chapter 2: Consumer Research 1. What is the difference between primary and secondary research? Under what circumstances might the availability of secondary data make primary research unnecessary? What are some major sources of secondary data? 2. What are the advantages and limitations of secondary data? 3. Why might a researcher prefer to use focus group rather than depth interviews? When might depth interviews be preferable? 4. How would the interpretation of survey results change if the researcher used a probability sample rather than a nonprobability sample? Explain your answer. Key Terms: • Attitude sales 61 • Behavior intention scale 61 • Controlled experiment 55 • Depth interview...
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...Adopting a holistic marketing orientation means understanding consumers – gaining a 360-degrees view of both their daily lives and the changes that occur during their lifetimes so that the right products are marketed to the right customers in the right way. Connecting With Customers Creating Customer Value, Satisfaction, & Loyalty Analyzing Consumer Markets Analyzing Business Markets Identifying Market Segments and Targets Consumer Behavior • The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. According to the book entitled Consumer Behavior: A Primer by Gail Tom – Selective reality is understanding the world from a consumers perspective. By understanding the consumer’s perspective, marketers can give consumers the right product, at the right price at the right time at the right place. But in so doing, are marketers merely reflecting the consumers subjective reality or are they unintentionally or maybe intentionally, also exaggerating, distorting, altering, the consumers needs and wants? And is this for the better or is this for the worst? Cultural Factors - Culture, subculture, and social class are particularly important influences on consumer buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. Through family and other key institutions, a child growing up is exposed to values such as: achievement and success, activity...
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...FACTORS AFFECTING CONSUMER BEHAVIOUR ON PRODUCTS CHOICES:A SURVEY OF SUPERMARKETS IN ELDORET TOWN ABSTRACT This study will look on the ability of the local supermarket to take in to account the consumer buying behavior and characteristic as a baseline for defining marketing programs. To better understand why consumers buy as they do, many marketers turn to the behavioral sciences for help. Similarly, there are numerous theories, models and concepts making up the the field. These variables and the buying process are usually affected by relations with other people too. The study will look at how individuals interact with family, social class, and other group who may have influences. The study will be conducted in Eldoret town in the month of January 2011, and will adopt a survey design. The study will target customers, managers from 10 major supermarkets, cashiers, accountants and supermarkets attendants. Data will be collected using questionnaires, and analyzed using statistical techniques. Similarly some variables of special interest to marketers include motlvation, perception, learning, attitudes, and lifestyle. Much of what we know a bout these psychological [interprets} variables draws from ideas originally developed in the field of psychology. Inadditon,a solid understanding of consumer behavior is necessary because consumer actions influences the success or failure of marketing strategy, and because firms must create marketing mix that satisfies customers. Moreover...
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...Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics in the workplace refers to rules (standards, principles) governing the conduct of organizational members and the consequences of marketing decisions (Ferrell, 2005). Therefore, ethical marketing from a normative perspective approach is defined as “practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit...
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...Attitude and its role in consumer behavior Consumer Behavior – MKTG578 DeVry University, Keller Graduate School of Management October 19, 2014 Abstract This paper will address the role of attitude in consumer behavior that is related to belief, which has a significant influence on consumer’s decision making. The paper will also discuss the major factors of attitude and belief that consumer’s tendency respond to certain brand, product, and service. The finding contains in this paper will also present what can attitudes tell marketers about consumer, and what type of information consumer use in making a decision. Moreover, marketer would learn that it is easier to indirectly influence consumer behavior and belief by providing any type of knowledge, such as information and music, to create a good feeling about the product. Most importantly, the basic components that are an effective approach to changing attitude will be found in this paper, which will be very helpful to marketers in term of marketing and repositioning their brand, product, or service. This approach will alter the cognitive structure of a consumer’s attitude that leads them to changes in behavior. Finally, this paper contains an explanation of the link between attitude towards a brand, product, or service and consumer purchasing behavior. Table...
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...Consumer behavior (Authors Name) (Institutional Affiliation) Consumer behavior The first step to consumer decision making is problem recognition. The root cause to making a decision starts with recognizing a particular problem by a consumer. The consumer has a need or a want that should be satisfied. A consumer can recognize that his current car is not of the new standards and thus he/she is compelled to consider buying a new one. The second step to consumer decision making process is information search. This involves the consumer looking for a product or services that effectively satisfies his/her wants. Most of the information received by the consumer is however through commercial sources such as newspapers, catalogs, media advertisement or through direct contact with the manufacture via mail. In this particular stage the consumer also analyses the strengths and weaknesses of the varieties of products available (Solomon, 2009). Once the consumer decides on which product or service best satisfies his/her needs and wants the consumer goes to the next step which is to evaluate alternatives. The consumer’s main goal is to identify the best deal by comparing the various features and benefits of the different products. This may be based on a number of factors such as price, brands, colors and quality of the product or service, other factors such as preference may also influence their decisions. For consumers considering purchasing a car, price and prestige may be the most...
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