Transcript Consumer Behavior

Chapter 1
Consumer Behavior & Marketing
Management
Copyright Atomic Dog Publishing, 2002
Chapter Spotlights
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Consumer benefits
Total product concept
Market segmentation and segmentation
strategies
Positioning
Consumer decision-making
Engel, Kollat, and Blackwell (EKB)
Model
Copyright Atomic Dog Publishing, 2002
Course Objectives
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Better understand why people do what they
do in the marketplace when they do it
Better understand yourself as a shopper,
buyer, and consumer
Improve yourself as a shopper, buyer, and
consumer
Improve your current/future job performance
Better understand marketer communications
and behaviors in the marketplace
Copyright Atomic Dog Publishing, 2002
Consumer Benefits
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People do not buy products or services,
they buy benefits
Hence we make purchases not for the
products themselves, but for the
benefits of the problems they solve or
the opportunities they offer
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e.g., “always late” so a watch helps solve
problem; has stopwatch feature so now
can keep track of “work out” times
Copyright Atomic Dog Publishing, 2002
Consumer Benefits
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Consumers seek
bundles of types of
benefits:
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Tangible benefits: e.g., a
watch keeps good time;
has leather band
Intangible benefits: e.g.,
the “reliability” reputation
of the watch
manufacturer; the image
of the watch wearer
Copyright Atomic Dog Publishing, 2002
The Total Product Concept
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Total product: refers to the sum of benefits offered
by a product, service, outlet, etc.
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Basic core: bundle of utilitarian benefits (e.g., design,
features, etc.)
Accessory ring: added-value benefits with no apparent extra
cost (e.g., store reputation, manufacturer prestige,
convenient location, etc.)
Psychological ring: benefits resulting from the consumer’s
feelings associated with owning/using the product (e.g.,
belonging, youthful, powerful, sexy, etc.)
Time: products/service “give” or “take” time; this can be
“good” or “bad” (e.g., fast food versus conventional
restaurant)
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Market Segmentation
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Market segmentation is the study of the
marketplace in order to discover already
existing viable groups of consumers
who are similar or homogeneous in
their approaches to choosing and/or
consuming goods and services.
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Segment Bounding
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Segment bounding is a means by which
marketers differentiate among consumers
and among market segments
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Determine the “descriptors” of the
consumers/units in the segment (e.g.,
demographics, psychographics, benefits sought,
product usage rate, type of retail outlet, etc.)
Determine specific “geographic location” of
segment
Bound segments in “time” to ensure that all data
is relevant and up to date for the time of use.
Copyright Atomic Dog Publishing, 2002
Segment Viability
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Four factors are
used to assess
segment viability.
Viable segments
are:
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Of sufficient size
Measurable
Differentiated
Reachable
Copyright Atomic Dog Publishing, 2002
Segmentation Strategies
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Mass marketing (undifferentiated marketing):
offering the same product to the entire
consumer population
Concentrated marketing (focused or niche
marketing): selecting one market segment,
even though the product may also appeal to
others
Differentiated marketing: selecting two or
more different segments
Copyright Atomic Dog Publishing, 2002
Segmentation in the Global
Marketplace
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There are two approaches to market
segmentation
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Localization: treating each country as a separate
market and seeking consumer segments
accordingly
Intermarket segmentation (also called
“standardization”): selecting groups of consumers
who exhibit similar consumption behavior across
different countries
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Marketers emphasize similarities rather than differences
across country markets
Copyright Atomic Dog Publishing, 2002
Consumer Benefits and
Product Positioning
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Product positioning is the placement of a product,
service, outlet, etc. in the mind of the consumer
There are five ways used to position products,
services, outlets, etc.
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On perceived benefits
On image
On attributes
Against competitors
Combination of two or more of the above
Repositioning: shifting position in the consumer’s
mind through changes in important product, price,
distribution, and promotional and/or personal selling
benefits.
Copyright Atomic Dog Publishing, 2002
The Consumer DecisionMaking Process
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A consumer decision model
is a means of describing
the processes that
consumers go through
before, during, and after
making a purchase
(choice).
A model shows the causes
or antecedents of a
particular behavior and
each of its results or
consequences.
Copyright Atomic Dog Publishing, 2002
Engel, Kollat, and Blackwell
(EKB) Model
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The EKB model is comprehensive and
shows the components of decision
making and the relationships and
interactions among them.
The five distinct parts of consumer
decision making presented are:
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Input, information processing, a decision
process, decision process variables, and
external influences
Copyright Atomic Dog Publishing, 2002
Input
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Input includes all kinds of stimuli from
our contact with the world around us:
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Our experiences, contact with others
Marketer-controlled stimuli (e.g.,
advertising, store display, demonstrations)
Other stimuli (e.g., personal recollections,
conversations with friends)
External search
Copyright Atomic Dog Publishing, 2002
Information Processing
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Stimuli are processed
into meaningful
information
Five methods of
information processing:
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Exposure
Attention
Comprehension
Yielding
Retention
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Decision Process
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It is triggered at any time during information
processing
It consists of five steps:
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Problem recognition
Search
Alternative evaluation
Choice
Outcomes (post-purchase evaluation and
behavior)
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Decision Process Variables
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Those individual qualities that make
people/consumers unique.
Decision process variables include
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Motives
Beliefs
Attitudes
Lifestyles
Intentions
Evaluative criteria
Normative compliance and informational influence
Other aspects of self
Copyright Atomic Dog Publishing, 2002
External Influences
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Such influences are
called “Circles of
Social Influence.”
They are: culture,
sub-culture (coculture), social class,
reference groups,
and family or
household
influences
Copyright Atomic Dog Publishing, 2002