Week 1 Introduction

Monday, October 24, 2022
Compulsory page
Bachelor of Business
Management
Introduction to Consumer
Behaviour
Introduction
(Week 1)
1
Compulsory page
Course 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.
2
Learning objectives
5. To Understand How Marketers Are Increasingly Able to
Reach Consumers Wherever Consumers Wish to Be
Reached.
6. To Understand the composition of Consumer Behavior,
consumer adoption process, and consumer decision
model.
3
Introduction - 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.
• Consumer Behavior includes all the decisions a

consumer makes when spending their time and money.
The who, what, where. when, how, and why of consumer
purchases are examined in consumer behavior. It is not
just individuals, but households, families, and groups that
influence the decisions we make.
4
Tutorial Question - To Which Segment of

Consumers Will This Ad Appeal to?
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A Segment of Consumers Who are Environmentally Concerned
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Two Consumer Entities

• Organizational
• Personal Consumer
Consumer
• The individual who • A business,
buys goods and government agency, or
services for his or her other institution (profit
own use, for household or nonprofit) that buys
use, for the use of a the goods, services,
family member, or for and/or equipment
a friend. necessary for the
organization to
function.
7
Development of the
Marketing Concept
• Productio • Product •Sales • Marketin

n
Orientati Orientati g
Orientati
on on Concept
on
8
Production Orientation
• From the 1900s to the late 1930s
• Companies focus on production capabilities
• Consumer demand exceeded supply
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Product Orientation
• From the 1930s to the late 1950s
• Companies focus on production capabilities
• Consumer demand exceeded supply
10
Sales Orientation
• From the 1960s to the mid 1970s
• Focus on selling
• Supply exceeded customer demand
11
Marketing Concept
• 1980s to current - Focus on the customer!
• Determine the needs and wants of specific target
markets
• Deliver satisfaction better than competition
12
Societal Marketing Concept 1990’ - today

• Considers consumers’ long-run best interest
• Good corporate citizenship
13
The Marketing Concept

• Embracing the Marketing Concept
Consumer Research
• The process and tools used to
study consumer behavior
14

• Implementing the Marketing Concept
Segmentation
• Process of dividing the market into subsets of
consumers with common needs or characteristics
15
Tutorial Questions
1. What products that you regularly purchase are
considered a highly segmented product?
2. What are the different segments?
3. Why is segmentation useful to the marketer for these
products?
16

Market Targeting
The selection of one or more of the segments
identified to pursue
17
Positioning
• Developing a distinct image for the product
in the mind of the consumer
• Successful positioning includes:
• Communicating the benefits of the product
• Communicating a unique selling
proposition
• Chapter One Slide

18
The Marketing Mix
• Product • Price
• Marketin
g Mix
• Place • Promotion
19
Customer Value, Satisfaction, Trust, and Retention
• Successful
Relationships
• High level • Strong
of
• Customer sense of • Customer
customer
value customer retention
satisfactio
trust
n
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Successful Relationships
• Value, Satisfaction,
• Trust, and Retention
Customer Value
• 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( statements of the value
their product offers to consumers) is
critical 21
Customer Satisfaction
• The individual's perception of the
performance of the product or service in
relation to his or her expectations.
• Customer groups based on loyalty include
loyalists, apostles, defectors, terrorists,
hostages, and mercenaries
22
Customer Trust
• Establishing and maintaining
trust is essential.
• Trust is the foundation for
maintaining a long-standing
relationship with customers.
23
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
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References
1. Solomon M.R. (2017).Consumer Behavior: Buying,
Having, and Being, Global Edition, 12/E, Pearson
2. 2. Schiffman, L. G. & Wisenblit, J. L. Consumer
Behavior (2015) 11th Edition Pearson International
Edition. New Jersey
25

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Monday, October 24, 2022

Introduction - Consumer Behavior

• Consumer Behavior includes all the decisions a

Tutorial Question - To Which Segment of

A Segment of Consumers Who are Environmentally Concerned

Two Consumer Entities

• Productio • Product •Sales • Marketin

Societal Marketing Concept 1990’ - today

The Marketing Concept

The Marketing Concept

The Marketing Concept

• Communicating a unique selling

• Chapter One Slide

The Marketing Mix

Customer Value, Satisfaction, Trust, and Retention

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