Professional Documents
Culture Documents
CB 1
CB 1
Consumer Behaviour reflects the totality of consumer decisions with respect to the acquisition, consumption and disposition of goods, services, time and ideas by decision-making units over time Hoyer & MacInnis
Consumer behavior theory provides the manager with the proper questions to ask Marketing practice designed to influence consumer behavior influences the firm, the individual, and society All marketing decisions and regulations are based on assumptions about consumer behavior
What is Customer Value? The difference between all the benefits derived from a total product and all the costs of acquiring those benefits.
What is required of a firm to provide superior customer value? It must do a better job of anticipating and reacting to customer needs than the competition does.
What role does consumer behavior play in creating superior customer value? An understanding of consumer behavior is the basis for marketing strategy formulation, and the consumers reaction to this marketing strategy ultimately determines the firms success or failure.
Market Segmentation
Market Segment: a portion of a larger market whose needs differ somewhat from the larger market. Four steps to segmentation:
Identify product-related need sets Group customers with similar need sets Describe each group Select an attractive segment(s) to serve
Market Segmentation
What is market segmentation? Market segmentation involves aggregating prospective buyers into groups that: 1. have common needs 2. will respond similarly to marketing actions Why segment the market? Market segmentation links market needs to an organizations marketing programs. When does an organization segment the market? When the potential increase in profits as a result of segmenting outweigh the costs of segmenting.
Marketing Strategy
How will we provide superior customer value to our target market? Marketing Mix
Outcomes
Firm:
Product positioning Sales Customer Satisfaction Need Satisfaction Avoid Injurious Consumption Economic Physical Environment Social Welfare
Individual:
Society:
Product Characteristics
Consumer Behavior
Marketing Strategy
Consumption Situation
Consumer Behaviour
Micro Perspective 2. Societal Perspective ______________________________ 1. Positivism 2. Interpretivism
1.
Methods Assumptions