Transcript Criteria for Development of Message Ideas

Chapter 1
Understanding
Consumer Behavior
Learning Objectives~ Ch. 1
1.
2.
3.
4.
Define consumer behavior (cb) and explain its
elements.
Identify the 4 domains of consumer behavior.
Discuss the benefits of studying consumer
behavior.
Explain how companies apply consumer behavior
concepts when making marketing decisions.
Consumer Behavior
The acquisition, consumption, and disposition of
goods, services, time & ideas by (human) decision
making units
You do this multiple times a day
Consciously & unconsciously
Rationally & emotionally
Influenced by advertising, social media,
friends/family, celebrity, sport & marketing
communications
Suzy Orman, personal
finance expert, influences
attitudes about milk. Since
1995 the National Milk
Processors Board has run
the “Got Milk?” campaign
using celebrities from
sports, media, and
entertainment, as well as
fictional characters from
TV
& film.
PRNewsFoto/MilkPEP
Consumer Behavior
Involves Attitudes Towards:
Products
Services
Activities
People
Ideas
Consumer Behavior (CB)
Reflects totality of consumer’s decisions with respect to
the acquisition, consumption, & disposition of:
 goods
 services
 time
 ideas by (human) decision-making units
Over time
How does this relate to marketing strategies &
tactics?
What Is Consumer Behavior?
(Exhibit 1.1)
CB & Consumption
Acquisition
Usage
Disposition
Please think of each form of cb that
you have done in the last 24 hours….
Consumer Behavior
Dynamic process
Can involve many people
Involves many decisions big & small
Involves consumer feelings & coping
The abcs of consumer behavior intertwine:
a. attitude/affect
b. behavior
c. cognition
Consumer Decisions
Whether?
What?
Why?
Why Not?
How?
Ways?
When?
Where?
How much?
How often?
How long?
Plus, a plethora of
online decisions…to
tweet or not to
tweet…to check in or
not to check in…
What Impacts
Consumer Behavior?
①
②
③
④
Psychological Core
Decision-making process
Consumer Culture
Consumer Behavior Outcomes
① Psychological Core
Motivation, Ability, & Opportunity
Exposure, Attention, & Perception
Categorizing & Comprehending Information
Forming & Changing Attitudes
Forming & Retrieving Memories
② Decision-making Process
Problem Recognition & Search for Information
Judgments & Decisions
Post-Decision Evaluations
③ Consumer Culture
External Processes/Influences:
Consumer Diversity
Social Class & Household
Values, Personality, & Lifestyles
Reference Groups & Other Social Influences
④ Consumer Behavior
Outcomes
Symbolize who we are—external signs used to
express identity
Diffuse through a market—influence others’
decision making
Ethics & corporate social responsibility (CSR)
Beneficiaries of CB
Research
Marketing Managers
Advertisers
Ethicists/Advocacy
Groups
Public Policy
Makers/Regulators
Scholars
Media/Popular press
Consumers
adage.com; signalsmith.com
Marketing Implications
of Consumer Behavior-1
Developing/implementing customer-orientation
– Segmenting the market?
– Profitability of each segment?
– Characteristics of each segment?
– Customer satisfaction of each segment?
Selecting the target market
Marketing strategy
Marketing Implications
of Consumer Behavior-2
Product positioning decisions
– Positioning of competition?
– How should our offerings be positioned?
– Should we reposition offerings?
Marketing Implications
of Consumer Behavior-3
Products/services development decisions
– Consumers’ ideas for new products?
– Additional or different attributes?
– Brand naming?
– Packaging and logo design?
Marketing Implications
of Consumer Behavior-4
IMC decisions
– Advertising objectives?
– Words and visuals of ads?
– Where should ads be placed?
– When should ads be placed?
– Have ads been effective?
Marketing Implications
of Consumer Behavior-5
IMC decisions (cont.)
– Sales promotion objectives?
– When should sales promotions occur?
– Have sales promotions been effective?
– How large a sales force?
– How can salespeople best serve customers?
Marketing Implications
of Consumer Behavior-6
Pricing decisions
– What should the price be?
– How sensitive are consumers to price and price
changes?
– When should pricing tactics be used?
Distribution decisions
– Where does target market shop?
– How should stores be designed?
Important Aspects
CB involves more than just products (e.g., going to the
dentist, what TV programs to watch, taking aerobics
class, going skydiving, donating to a cause, etc.)
CB involves more than just buying:
a acquisition (leasing, trading, borrowing)
b usage (gives insight on symbolic aspects, usage
patterns, new product ideas or improvements, W-OM)
c disposing- recycling, product durability
CB is a dynamic process (sequence of events over
time)
Importance of CB
to Marketing Managers
IMPORTANCE OF BEING CUSTOMER- FOCUSED
Market Segmentation- can group consumers by
similar needs, wants, & attitudes
- identify the most valued customers for marketing
activities
Customer Relationship Management (CRM)providing value & service to customers over time to
build loyalty
Positioning-- niche in consumers’ minds- critical to
success
What company do you think does this best?
Questions?