ppt with details on consumer behavior and its strategic application, best suited for MBA students. it also tells you the origin of CB.

1. Consumer Behavior:
Its Origins and
Strategic Applications

2. Chapter Outline
• Overview of Consumer Behavior
• The Marketing Concept
• The Marketing Mix and Relationships
• Digital Technologies
• Societal Marketing Concept
• A Simplified Model of Consumer
Decision Making

3. 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.

4. 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.

5. 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.

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

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

8. 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

9. 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

10. 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

11. The Marketing Mix
• Product
• Price
• Place
• Promotion

12. Successful Relationships
Customer Customer
Value
Customer
Satisfaction
Retention

13. Successful Relationships
• Customer
Value
• Customer
Satisfaction
• Customer
Retention
• Defined as the ratio between
the customer’s perceived
benefits and the resources
used to obtain those
benefits
• Perceived value is relative
and subjective
• Developing a value
proposition is critical
Value, Satisfaction,
and Retention

14. Successful Relationships
• Customer
Value
• Customer
Satisfaction
• Customer
Retention
• The individual's perception of
the performance of the product
or service in relation to his or
her expectations.
• Customers identified based on
loyalty include loyalists,
apostles, defectors, terrorists,
hostages, and mercenaries
Value, Satisfaction,
and Retention

15. Successful Relationships
• Customer
Value
• The objective of providing value
is to retain highly satisfied
customers.
Value, Satisfaction,
and Retention
• Customer
Satisfaction
• Customer
Retention
• Loyal customers are key
– They buy more products
– They are less price sensitive
– They pay less attention to
competitors’ advertising
– Servicing them is cheaper
– They spread positive word of
mouth

16. Traditional Marketing Concept Vs. Value
and Retention Focused Marketing
Table
Make only what you can sell instead of
trying to sell what you make
Use technology that enables
customers to customize what
you make
Do not focus on the product; focus on the
need that it satisfies
Focus on the product’s perceived
value, as well as the need that it
satisfies
Market products and services that
match customers’ needs better than
competitors’ offerings
Utilize an understanding of
customer needs to develop
offerings that customers perceive
as more valuable than
competitors’ offerings

17. Impact of Digital Technologies
• Consumers have more power and access to
information
• Marketers can gather more information about
consumers
• The exchange between marketer and
customers is interactive and instantaneous
and goes beyond the PC.
• Marketers must offer more products and
services

18. Societal Marketing Concept
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.

19. Consumer Behavior Is
Interdisciplinary
• Psychology
• Sociology
• Social psychology
• Anthropology
• Economics

20. A Simplified Model of Consumer
Decision Making – Figure