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INTRODUCTION TO CONSUMER BEHAVIOR AND MARKETING STRATEGY Chapter One MKTG102A I. GASCAL
INTRODUCTION TO CONSUMER BEHAVIOR AND MARKETING STRATEGY Chapter One MKTG102A I. GASCAL

INTRODUCTION TO

CONSUMER BEHAVIOR AND

MARKETING STRATEGY

Chapter One

MKTG102A

I. GASCAL

CONSUMER BEHAVIOR : DEFINITION

The dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives. (American Marketing Association)

Involves thoughts, feelings, and actions during the consumption process and

environmental factors which influence them

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 (Hawkins & Mothersbaugh)

It is DYNAMIC AND INVOLVES INTERACTIONS AND EXCHANGES

CONSUMER BEHAVIOR DEFINED

Consumer activities associated with the purchase, use, and disposal of goods and services.

■ Consumers’ emotional, mental, and behavioral responses to marketing activities.

disposal of goods and services. ■ Consumers’ emotional, mental, and behavioral responses to marketing activities.

INDIVIDUAL vs. ORGANIZATIONAL

CONSUMERS

Individual consumers purchase goods and services to:

Satisfy their own personal needs and wants.

Satisfy the needs and wants of other individuals.

Organizational consumers purchase goods and services to:

Produce other good or services.

Resell goods and services.

Help manage their organizations.

CONSUMER ACTIVITIES

PURCHASE ACTIVITIES

Gathering and evaluating information

Purchase/transaction method

Additional services (e.g., warranties)

USE ACTIVITIES

Where? on premise vs. off premise

When? immediate vs. delayed consumption

How? complete vs. partial consumption

DISPOSAL ACTIVITIES

Recycling (e.g., biodegradable waste)

Reuse (e.g., charity)

Resale (e.g., eBay)

CONSUMER RESPONSES

AFFECTIVE RESPONSES

Emotions (e.g., ecstasy, grief) Feelings (e.g., joy, sadness) Moods (e.g., serenity, pensiveness)

COGNITIVE RESPONSES

Beliefs: non-evaluative

Opinions: advanced propositions

Attitudes: evaluative

Intentions: inclinations

BEHAVIORAL RESPONSES Inquiring Trying Buying Recommending

CONSUMER BEHAVIOR AS A FIELD OF

STUDY

CONSUMER BEHAVIOR AS A FIELD OF STUDY

APPROACHES TO CONSUMER

BEHAVIOR RESEARCH

INTERPRETIVE APPROACH

Based on theories and methods from cultural anthropology

Uses long interviews and focus groups

TRADITIONAL APPROACH

Based on theories and methods from cognitive, social, and behavioral psychology and sociology

Seeks to develop theories and methods to explain consumer decision making and behavior

Experiments and surveys to test theories and develop insights

MARKETING SCIENCE APPROACH

Bases on theories and methods from economics and statistics

Developing and testing mathematical models to predict impact of marketing strategies

CONSUMER BEHAVIOR RESEARCH

MARKETING RESEARCH

A systematic process of planning, collecting, analyzing, and interpreting data and information relevant to marketing.

TYPES OF RESEARCH

Basic Research

Examines general relationships between variables.

Applied Research

Examines specific contexts of interest to marketers.

TYPES OF RESEARCH DATA

Secondary Data: Already exist

Primary Data: Observation, Direct Questioning, Experiments, Projective Techniques

CORRELATION

CORRELATION

CAUSATION (CAUSE & EFFECT)

CAUSATION (CAUSE & EFFECT)

USES OF CONSUMER BEHAVIOR

RESEARCH

Marketing

organizations

Marketing

strategies

RESEARCH Marketing organizations Marketing strategies Public policy Government and political organizations

Public policy

organizations Marketing strategies Public policy Government and political organizations Consumer

Government and

political

organizations

Public policy Government and political organizations Consumer activities Consumers  To improve business
Public policy Government and political organizations Consumer activities Consumers  To improve business
Public policy Government and political organizations Consumer activities Consumers  To improve business

Consumer

activities

Consumers

To improve business performance by anticipating

and satisfying customer needs

To influence public policy

To help consumers make better decisions

CONSUMER BEHAVIOR’S ROLE IN

MARKETING STRATEGY

A marketing strategy is the design, implementation, and control of a plan to influence exchanges to achieve organization objectives.

Marketing strategies involve developing and presenting marketing stimuli to influence what they think, how they feel, and what they do.

Some marketing strategy questions which consumer behavior can help answer:

Which types of consumers are most likely to buy our product?

What criteria are consumers likely to use to decide which products and brands to purchase?

What price are consumers willing to pay for our product and still believe they

are getting good value?

Should sales promotions be used? If so, which ones and how should they be timed?

QUESTIONS?