Learning Objectives
1. To Understand What Consumer Behavior Is and the Different Types of Consumers. 2. To Understand the Relationship Between Consumer Behavior and the Marketing Concept, the Societal Marketing Concept, as Well as Segmentation, Targeting, and Positioning. 3. To Understand the Relationship Between Consumer Behavior and Customer Value, Satisfaction, Trust, and Retention. 4. To Understand How New Technologies Are Enabling Marketers to Better Satisfy the Needs and Wants of Consumers.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 2
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.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter One Slide 4
1-5
8/15/2012 1-6 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
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.
Chapter One Slide 7
Production Orientation
Sales Orientation
Marketing Concept
Production Orientation
From the 1850s to the late 1920s Companies focus on production capabilities Consumer demand exceeded supply
Production Orientation Sales Orientation Marketing Concept
Sales Orientation
From the 1930s to the mid 1950s Focus on selling Supply exceeded customer demand
Production Orientation Sales Orientation Marketing Concept
Marketing Concept
1950s to current - Focus on the customer! Determine the needs and wants of specific target markets Deliver satisfaction better than competition
Production Orientation Sales Orientation Marketing Concept
Price
Place
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Promotion
Chapter One Slide 18
Successful Relationships
Customer Customer Value Customer Retention Trust Customer Satisfaction loyalists, apostles, defectors, terrorists, hostages & mercenaries
Successful Relationships
Value, Satisfaction, Defined as the ratio between Trust, and Retention the customers perceived
Customer Value Customer Satisfaction Customer Trust Customer Retention benefits and the resources used to obtain those benefits Perceived value is relative and subjective Developing a value proposition is critical
Chapter One Slide 20
Successful Relationships
Value, Satisfaction, Trust, and Retention
The individual's perception Customer of the performance of the Value product or service in relation to his or her Customer expectations. Satisfaction Customer groups based on Customer Trust loyalty include loyalists, Customer apostles, defectors, Retention terrorists, hostages, and Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall mercenaries Chapter One Slide 21
Customer Satisfaction
Loyalists
Completely satisfied customers who keep purchasing
Apostles
Whose experience exceeds their expectations & who provide very positive mouth of word about the company to others
Terrorists
Who have had negative experiences with the company and who spread negative word of mouth about the company
Mercenaries
Who are very satisfied customers but have no real loyalty to the company and may defect because of low prices elsewhere or on impulse
Successful Relationships
Value, Satisfaction, Trust, and Retention
Customer Value Customer Satisfaction Customer Trust Customer Retention
Establishing and maintaining trust is essential. Trust is the foundation for maintaining a longstanding relationship with customers.
Chapter One Slide 25
Successful Relationships
Value, Satisfaction, Trust, and Retention
Customer Value Customer Satisfaction Customer Trust Customer Retention The objective of providing value is to retain highly satisfied customers. Loyal customers are key They buy more products They are less price sensitive Servicing them is cheaper They spread positive word of mouth
Chapter One Slide 26
Successful Relationships
Customer value High level of customer satisfaction Strong sense of customer trust Customer retention
Platinum
Gold Iron Lead
Understand the purchase behavior process and Understand consumer behavior in relation to the influences on consumer behavior. the companys product. Realize that each customer transaction is a discrete sale. Make each customer transaction part of an ongoing relationship with the customer.
Chapter One Slide 29
More products and services through customization Instantaneous exchanges Collect and analyze data
Economics
Sociology
Anthropology
Social psychology
Social Psychology
Sociology Macroeconomics Semiotics/Literary Criticism Demography History Cultural Anthropology
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8/15/2012 1-35 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall