Consumer Behavior Twelfth Edition PDF

Consumer Behavior Twelfth Edition Chapter 1 Consumer Behavior and Technology Copyright © 2019, 2015, 2010 Pearson Education, In...

Consumer Behavior Twelfth Edition Chapter 1 Consumer Behavior and Technology Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Learning Objectives 1.1 To understand the evolution of the marketing concept, what consumer behavior is, and the components of strategic marketing. 1.2 To understand how technology has benefited both marketers and consumers. 1.3 To understand providing value and satisfaction and how technology has enhanced customer loyalty and retention. 1.4 To understand marketers’ social and ethical responsibilities. 1.5 To understand consumer decision-making as the foundation of this book. 1.6 To explain how the knowledge of consumer behavior advances seeking employment after graduation. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Marketing Defined Marketing is the activity, set of institutions, and processes for creating, communicating, and delivering offerings that have value for customers, clients, partners, and society. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Consumer Behavior Defined Consumer behavior is the study of consumers’ choices during searching, evaluating, purchasing, and using products and services that they believe would satisfy their needs. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved What Can a Car Help Express About its Owner? Boxster ad appeal: addressing conflicts about paying for performance, stating that “unfulfilled dreams cost a lot more” and assures them that “of all the emotions you can expect while driving a Boxster, regret will never be one of them.” The ad appeals to unfilled needs and understands what the target audience desires. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Learning Objective 1.1 1.1 To understand the evolution of the marketing concept, what consumer behavior is, and the components of strategic marketing. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Marketing Concept Defined The premise that marketing consists of satisfying consumers’ needs, creating value, and retaining customers, and that companies must produce only those goods that they have already determined would satisfy consumer needs and meet organizational goals. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Marketing Concept Application How does the Vans ad relate to the marketing concept? Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Development of the Marketing Concept Production Concept Product Concept Selling Concept Marketing Concept Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Marketing Myopia Short-sighted approach where companies “look in the mirror instead of out the window” In other words, managers focus on the product, not the needs it is designed to fulfill Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Marketing Concept Requirements Market Segmentation - groups with common needs Targeting - chooses the segments Positioning - how the consumer thinks about a marketer’s product versus the competitor’s product The Marketing Mix (4 Ps) – Product or service – Price – Place – Promotion Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Learning Objective 1.2 1.2 To understand how technology has benefited both marketers and consumers. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Value Exchange Technologies create a value exchange Technology makes it easier to shop and access information, entertainment, and customized products Consumers pay for content with information about themselves Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Consumers Have Embraced Technology Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Most Prominent Online Activities Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved More Precise Targeting Cookies Global Positioning Systems (GPS) Selfies Interactive communications Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Cross-Screen Marketing Defined A promotional strategy that consists of tracking and targeting users across their computers, mobile phones, and tablets, and sending them personalized ads based on their interests, as observed by marketers. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Discussion Question How does technology affect the Marketing Mix? Provide examples Interactive and novel communication channels Customizing products and promotional messages Better prices and distribution Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Learning Objective 1.3 1.3 To understand providing value and satisfaction and how technology has enhanced customer loyalty and retention. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Successful Relationships (1 of 3) Value, Satisfaction, Defined as the ratio between and Retention the customer’s perceived benefits and the resources Customer Value used to obtain those benefits Customer Perceived value is relative Satisfaction and subjective Customer Retention Developing a value proposition is critical Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Discussion Questions How does McDonald’s create value for the consumer? How do they communicate this value? Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Successful Relationships (2 of 3) Value, Satisfaction, The individual's perception and Retention of the performance of the product or service in relation Customer Value to his or her expectations. Customer Customer groups based on Satisfaction loyalty include loyalists, Customer Retention apostles, defectors, terrorists, hostages, and mercenaries Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Successful Relationships (3 of 3) Value, Satisfaction, The objective of providing and Retention value is to retain highly satisfied customers. Customer Value Loyal customers are key Customer Satisfaction – They buy more products – They are less price Customer Retention sensitive – Servicing them is cheaper – They spread positive word of mouth Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Customer Relationships For Discussion: Provide two examples where brands used technology to engage consumers/enhance customer relationships. Provide two examples where technology was used to add value to the consumer. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Forms of Engagement Emotional Bonds – Personal commitment and attachment – Social media attempts to get consumers to engage emotionally with products and brands Transactional Bonds – Mechanics and structures that facilitate exchanges between consumers and sellers – Factors like assortment and transaction ease could shape the relationship Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved 11 Determinants of Site Satisfaction Adaptation Transaction ease Interactivity Engagement Nurturing Loyalty Commitment Inertia Network Trust Assortment Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Profitability-Focused Segmentation Miles Travelled Annually and Matching Revenues Airplane’s Class At least At least At least and Matching 250,000 150,000 100,000 Revenues per Mile Miles miles miles First Class $ 1,000,000 $ 600,000 $ 400,000 ($ 4 per mile) DIAMOND EMERALD EMERALD Business Class $ 500,000 $ 300,000 $ 200,000 ($ 2 per mile) EMERALD SAPPHIRE SAPPHIRE Premium Economy $ 150,000 $ 90,000 $ 60,000 ($ 0.6 per mile) ELITE SELECT SELECT Economy $ 75,000 $ 45,000 $ 30,000 ($ 0.3 per mile) SELECT Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Measures of Customer Retention Customer valuation - categorizes customers according to their financial and strategic worth Retention rates - %of customers retained by the end of the year Analyzing defections - look for the root causes, not mere symptoms Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Review Question What is the difference between emotional and transactional bonds? Identify and describe four of the eleven determinants of customer satisfaction with online merchants. Characterize each selected determinant as primarily driven by emotion or stemming from the mechanics of the transaction. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Learning Objective 1.4 1.4 To understand marketers social and ethical responsibilities. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Social Responsibility Companies incorporate social goals into their mission statements Marketing ethics and social responsibility can shape organizational effectiveness Socially responsible activities improve image among stakeholders Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Learning Objective 1.5 1.5 To understand consumer decision-making as the foundation for this book. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Consumer Decision Making (1 of 2) Inputs – Firm marketing efforts – Sociocultural influences Process – Psychological factors – Need Recognition, Decision Type, Prepurchase Search, Evaluation of Alternatives – Learning Outputs – Purchase – Post-purchase evaluation Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Consumer Decision Making (2 of 2) Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Learning Objective 1.6 1.6 To explain how knowledge of consumer behavior advances seeking employment after graduation. Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Employment Opportunities Brand management Advertising Consumer research Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved Copyright Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved