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The term Consumer Behavior (CB) refers to
the behavior that individuals display in
searching for, purchasing, using, evaluating
and disposing of products and services that
they expect will satisfy their needs.
needs.
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ã The study of CB is the study of how

individuals make decisions to spend their
available resources (time,
(time, money, effort)
effort)
on consumption related items.
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t includes the study of

º Ñhat they buy it
º Ñhy they buy it
º Ñhen they buy it
º Ñhere they buy it
º How often they buy it
º How often they use it
 

 Ñhat they buy it
º Ñhat type: Gel, regular, striped, in the
tube or with pump
º Ñhat Brand: Local, national, international,
generic
 Ñhy they buy it
º Prevent cavities
º Remove stains
º Brighten or whiten teeth
º As a mouthwash
º To attract romance
 Ñhere they buy it
º Supermarket
º Drugstore
º Convinces store
 How often they buy it
º Ñeekly,
º biweekly
º monthly
 How often they use it
º Ñhen they wake up
º After each meal
º Ñhen they go to bed
 Yur Concern
º Yurfocus will be mostly how and why
consumer make decisions to buy goods
and services
 After purchaseƦ
º CB study goes far beyond these facets of CB and
considers the uses consumers make of the
goods they buy and their subsequent
evaluations
º Toyota at Pakistan (Post purchase behavior)
º Satisfaction not but yes dissatisfaction is
forwarded
º Role of marketer is formulate strategies in their
promotion
 Studies going onƦ.
º Consumer Research also interested how
individual dispose of their products
º Do they store it
º Throw it
º Give it away
º Sell it
º Rent it
º Lend it out
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ã Answers to these questions are very

important for marketer to match their
production and packaging accordingly
 Buyers and users
ã Ñho should be focus for the marketer?
 Ñhy the Field of CB Developed
º Ñhile studying buying behavior they
realized all customers can not be treated
as same
º Mass marketing shifted to Segmentation
(STP)
 Ñhy the Field of CB Developed

º After world war Ʀ rapid production

Ʀnew productsƦ but 80% failedƦ this led
to the study of CB
º Factors like promotional appeals, package,
labels and warranties
Ñhy the Field of CB Developed
º Government agencies in US like Federal
trade commission and Food and Drug
Administration began sponsoring
consumer research to discover the impact
of products and advertisement on
consumer
 Ñhy the Field of CB Developed
º Green marketing
º Global marketer started cross cultural
consumer research studies to develop
their products and their strategies.
 Personal Consumer
The individual who buys goods and services
for his or her own use, for household use,
for the use of a family member, or for a
friend.
 Yrganizational Consumer
A business, government agency, or other
institution (profit or nonprofit) that buys the
goods, services, and/or equipment
necessary for the organization to function.
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 The Production Concept
º Assumes that consumers are interested
primarily in product availability at low
prices
º Marketing objectives:
ƛ Cheap, efficient production
ƛ ntensive distribution
ƛ Market expansion
 The Product Concept
º Assumes that consumers will buy the
product that offers them the highest
quality, the best performance, and the
most features
º Marketing objectives:
ƛ Quality improvement
ƛ Addition of features
º Tendency toward Marketing Myopia
 The Selling Concept
º Assumes that consumers are unlikely to
buy a product unless they are aggressively
persuaded to do so
º Marketing objectives:
ƛ Sell, sell, sell
º Lack of concern for customer needs and
satisfaction
 The Marketing Concept
º Assumes that to be successful, a company
must determine the needs and wants of
specific target markets and deliver the
desired satisfactions better than the
competition
º Marketing objectives:
ƛ Make what you can sell
ƛ Focus on buyerƞs needs
 The Marketing Concept
Implementing the
Marketing Concept
º Consumer º The process and tools
Research used to study
º Segmentation consumer behavior
º Targeting º Two perspectives:
º Positioning ƛ Positivist approach
ƛ nterpretivist approach
 The Marketing Concept
Implementing the
Marketing Concept
º Consumer º Process of dividing
Research the market into
º Segmentation subsets of consumers
º Targeting with common needs
or characteristics
º Positioning
 The Marketing Concept
Implementing the
Marketing Concept
º Consumer The selection of one or
Research more of the segments
º Segmentation to pursue
º Targeting
º Positioning
 The Marketing Concept
Implementing the
Marketing Concept
º Consumer º Developing a distinct image for
Research the product in the mind of the
consumer
º Segmentation
º Successful positioning
º Targeting includes:
º Positioning ƛ Communicating the benefits
of the product
ƛ Communicating a unique
selling proposition
This product is
positioned as a
solution to
facial redness.
 The Marketing Mix
º Product
º Price
º Place
º Promotion
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 Successful Relationships
Ôalue, Satisfaction,
and Retention
º Defined as the ratio between
º Customer the customerƞs perceived
Value benefits and the resources
º Customer used to obtain those benefits
Satisfaction º Perceived value is relative and
subjective
º Customer
º Developing a value proposition
Retention
is critical
 Discussion Question
º How does McDonaldƞs create value for the
consumer?
º How do they communicate this value?
 Successful Relationships
Ôalue, Satisfaction,
and Retention
º Customer º The individual's perception of the
performance of the product or
Value service in relation to his or her
º Customer expectations.
Satisfaction º Customers identified based on
º Customer loyalty include loyalists, apostles,
defectors, terrorists, hostages, and
Retention
mercenaries
 Successful Relationships
Ôalue, Satisfaction,
and Retention
º The objective of providing value is
º Customer to retain highly satisfied customers.
Value º Loyal customers are key
º Customer ƛ They buy more products
Satisfaction ƛ They are less price sensitive
º Customer ƛ They pay less attention to
Retention competitorsƞ advertising
ƛ Servicing them is cheaper
ƛ They spread positive word of
mouth
Traditional Marketing Concept Vs. Value and
Retention Focused Marketing
Table 1-
1-2
Traditional Marketing Concept
Make only what you can sell instead
of trying to sell what you make
Do not focus on the product; focus on
the need that it satisfies
Market products and services that
match customersƞ needs better than
competitorsƞ offerings
Value and Retention
Focused Marketing
Use technology that enables
customers to customize what
you make
Focus on the productƞs
perceived value, as well as the
need that it satisfies
Utilize an understanding of
customer needs to develop
offerings that customers perceive
as more valuable than
competitorsƞ offerings
Societal Marketing Concept
Marketers adhere to principles of social
responsibility in the marketing of their
goods and services; that is, they must
endeavor to satisfy the needs and wants
of their target markets in ways that
preserve and enhance the well-
well-being of
consumers and society as a whole.
 Consumer Behavior s
nterdisciplinary
º Psychology
º Sociology
º Socialpsychology
º Anthropology
º Economics
A Simplified Model of Consumer Decision
Making ƛ Figure 1
1--1
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