Consumer Behavior (Chapter 1)

What is involved in the competitor analysis phase of market analysis in Figure 1-1?

A firm should know its key competitors as well as it knows itself (see #6 above). For particular initiatives, the firm needs to determine which competitors will be harmed and their capability and likely means of responding. The firm's strategy should be evaluated in light of these probable responses.

What is a product?

A product is anything a consumer acquires or could acquire to meet a perceived need. It useful to think of a product in terms of the benefits it provides. It includes both physical products and primary services such as haircuts

What is product position?

It is what consumers think of and feel about a brand in relation to competing brands.

What are the major outcomes for the firm of the marketing process and consumers' responses to it?

(1) A product position or image in the minds of the consumers, (2) sales and profits, and (3) satisfied (at some level) customers.

What are the four major uses or applications of an understanding of consumer behavior?

(1) Developing marketing strategy, (2) Developing regulatory policy for marketing actions, (3) Social marketing, and (4) Understanding how societies function.

What are the major outcomes for society of the marketing process and consumers' responses to it?

(1) Economic impacts, (2) environmental impacts, and (3) social impacts.

What is meant by injurious consumption?

Consumption that has negative consequences for the long run well being of the consumer.

What is involved in creating satisfied customers?

Creating satisfied customers requires that customers continue to believe that the brand purchased offers superior value after they have used it. It must deliver as much or more value than customers originally expected

What is a total product?

It is all aspects of the product including its price, package, distribution system, image, and so forth.

What is social marketing?

It is the applications of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individual and/or society as a whole.

What is customer value and why is it important to marketers?

It is the difference between all of the benefits derived from a total product and all the costs of acquiring those benefits. It is important because consumers choose those options that they believe will provide them the most value

What does an effective communications strategy require?

It requires sound answers to these questions: (1) Who exactly do we want to communicate with? (2) What effect do we want our communication to have on the target audience? (3) What message will achieve the desired effect on our audience? (4) What means and media should we use to reach the target audience? (5) When should we communicate with the target audience?

What is meant by consumer lifestyle?

Lifestyle is how the consumer lives including the products that they purchase, how they use them, and what they think of them. It is the sum of past decisions and future plans.

Describe the process of market segmentation.

Market Segmentation has four steps: (1) identify product-related need sets, (2) group consumers with similar need sets, (3) describe each group (in terms of demographics, media preferences, and lifestyles), and (4) select attractive segments to serve

What is marketing strategy?

Marketing strategy is the answer to the question: "How will we provide superior customer value to our target market at a profit?" It is deciding how to meet the needs of a defined target segment. It involves structuring the marketing mix.

How is service defined in the text?

Service is defined not as a primary service such as a haircut, which is treated as product, but as an auxiliary service which is performed to enhance the primary product or service. Thus, we consider car repairs to be a product but free pick-up and delivery to be services.

What are the major outcomes for the individual of the marketing process and consumers' responses to it?

Some level of need satisfaction and, on occasion, injurious consumption (consumption that harms the individual)

What conclusions can be drawn from the examples at the beginning of this chapter?

Successful marketing decisions require extensive information on consumer behavior theory. Consumer behavior theory provides the manager with the proper questions to ask. Managers, regulators, and others use consumer behavior and knowledge to make decisions.

What is involved in the company analysis phase of market analysis in Figure 1-1?

The firm must understand its ability to meet evolving customer needs better than the competition. This involves evaluating all aspects of the firm ranging from its financial condition to its general management skills to its reputation. This will generally involve both internal analyses as well outside assessments.

What is a marketing mix?

The marketing mix is the product, price, communications, distribution, and services provided to the target market. An important part of the concept is that these elements are deliberately blended to achieve a defined impact on the target market.

What is involved in the consumer analysis phase of market analysis in Figure 1-1?

The organization must be able to anticipate evolving consumer needs which requires a complete understanding of the product related behaviors of the market segments under consideration. This will often require extensive primary research

What is required to provide superior customer value?

The organization must do a better job of anticipating and reacting to customer needs than the competition. This requires knowledge of consumer behavior as well as technical and marketing skills.

What is a price? How does the price of a product differ from the cost of the product to the consumer?

The price is the amount of money one must pay to obtain the right to use the product. The cost of the product to the consumer includes the price plus other costs such as time and effort to acquire the product, finance charges, maintenance expenses and so forth.

What is involved in the conditions analysis phase of market analysis in Figure 1-1?

This is an analysis of the state of the relevant economies, government regulations, the physical environment, and technological developments.

Describe the consumer decision process.

Within the context of a situation, it involves some or all of the following sequence: problem recognition, information search, alternative evaluation and selection, outlet selection and purchase, and post-purchase processes.

How is the field of consumer behavior defined?

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.