CHAPTER 1

CONSUMER
BEHAVIOR
AND
MARKETING
STRATEGY

Copyright © 2017 by The McGraw-Hill Companies, Inc. All rights reserved.

PART I: INTRODUCTION

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 Learning Objectives

L01 Define consumer behavior

Summarize the applications of consumer behavior

L02

Explain how consumer behavior can be used to

L03 develop marketing strategy

Explain the components that constitute a conceptual

L04
model of consumer behavior

L05 Discuss issues involving consumption meanings and

firm attempts to influence them
Consumer Behavior and Marketing
Strategy

Consumer behavior is the

study of individuals, groups, or
organizations and the processes
they use to select, secure, use,
and dispose of products,
services, experiences, or ideas
to satisfy needs and the impacts
that these processes have on
the consumer and society.

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 Applications in Consumer Behavior

1. Marketing Strategy

2. Regulatory Policy

3. Social Marketing

4. Informed Individuals

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Applications in Consumer Behavior

United Way
Campaign Provides
an Example of Social
Marketing

YouTube Spotlight
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Marketing Strategy and Consumer Behavior

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 Market Analysis Components

1. The Consumers

2. The Company

3. The Competitors

4. The Conditions

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 Market Segmentation

Market segmentation
is a portion of a larger
market whose needs
differ from the larger
market.

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 Market Segmentation

Market Segmentation Involves Four Steps:

1. Identifying Product-Related Need Sets

2. Grouping Customers with Similar Need Sets

3. Describing Each Group

4. Selecting an Attractive Segment(s) to Serve

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Market Segmentation

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 Marketing Strategy
Ø Marketing Strategy is the answer to the question:
How will we provide superior customer value to our
target market?
Ø This requires the formulation of a consistent
marketing mix, which includes the
1. Product
2. Communications
3. Price
4. Distribution, and
5. Service

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 Video Application

The following Video Clip shows how

digital signage (the communications
element) keeps the marketing message
fresh!

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 Consumer Decisions

The consumer decision process intervenes between

the marketing strategy, as implemented in the
marketing mix, and the outcomes.

The firm can succeed only if consumers see a need

that its product can solve, become aware of the
product and its capabilities, decide that it is the best
available solution, proceed to buy it, and become
satisfied with the result of the purchase.

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 Outcomes

1. Firm Outcomes

2. Individual Outcomes

3. Society Outcomes

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 Outcomes

Creating Satisfied Customers

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The Nature of Consumer Behavior
Overall Conceptual Model of Consumer Behavior

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 The Nature of Consumer Behavior

External Influences

• Culture
• Demographics and social stratification
• Ethnic, religious, and regional subcultures
• Families and households
• Groups

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 The Nature of Consumer Behavior

Internal Influences
• Perception
• Learning
• Memory
• Motives
• Personality
• Emotions
• Attitudes

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 The Nature of Consumer Behavior

Self-Concept and Lifestyle

Self-concept is the totality of an

individual’s thoughts and
feelings about oneself.
Lifestyle is how one lives,
including the products one buys,
how one uses them, what one
thinks about them, and how one
feels about them.

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 The Nature of Consumer Behavior

Situations and Consumer Decisions

Consumer decisions
result from perceived
problems and
opportunities.
Consumer problems arise
in specific situations and
the nature of the situation
influences the resulting
consumer behavior.
Using Outdoor Media to Trigger Problem Recognition

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 The Meaning of Consumption

Ø Consumption has meaning beyond satisfaction

of minimum or basic consumer needs
Ø Symbolic needs
Ø Status
Ø Identity
Ø Group acceptance