Consumer Behavior-Chapter 1

Marketing Strategy

marketing decisions based on explicit consumer behavior theory, assumptions, and research are more likely to be successful than those based on hunches or intuition, and they create a competitive advantage.

Need Set

used to reflect the fact that most products in developed economies satisfy more than one need.

Price

THe amount of money one must pay to obtain the right to use the product.

Product

anything a consumer acquires or might acquire to meet a perceived need.

Market Segmentation

a portion of a larger market whose needs differ somewhat from the larger market.

Regulatory Policy

bodies exist to develop, interpret, and/or implement policies designed to protect and aid consumers.

Marketing Communications

Advertising, the sales force, public relations, packaging, and any other signal that the firm provides about itself and its products.

Service

Auxiliary or peripheral activities that are performed to enhance the primary product or primary service.

Firm Outcomes, Individual Outcomes, and Society Outcomes

Consumer Decisions (3 outcomes)

Distribution

Having the product available where target customers can buy it.

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

Market segmentation involves four steps...

1. Marketing Analysis 2. Marketing segmentation 3. Marketing Strategy 4. Consumer Decision Process 5. Outcomes

Marketing Strategy and Consumer Behavior Process (5 steps)

Injurious Consumption

Occurs when individuals or groups make consumption decisions that have negative consequences for their long-run well-being.

Target Market

Segments of the larger market on which we will focus our marketing effort.

Marketing Mix

The product, price, communications, distribution, and services provided to the target market.

Marketing Strategy, Regulatory Policy, Social Marketing, and Informed Individuals

What are the 4 Applications of Consumer Behavior?

Informed Individuals

individuals in these societies spend more time engaged in consumption than in any other activity, including work or sleep (both of which also involve consumption).

Consumer Behavior

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.

Social Marketing

the application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole.