Consumer Behavior: Meeting Changes and Challenges
After studying this chapter students should be able:
1. To understand what consumer behavior is and the different types of consumers. 2. To understand the relationship between consumer behavior and the marketing concept, the societal marketing concept, as well as segmentation, targeting, and positioning. 3. To understand the relationship between consumer behavior and customer value, satisfaction, trust and retention. 4. To understand how new technologies are enabling marketers to better satisfy the needs and wants of consumers. 5. To understand how marketers are increasingly able to reach consumers wherever consumers wish to be reached. 6. To understand how the world’s economic condition is leading to consumption instability and change. 7. To understand the makeup and composition of a model of consumer behavior. 8. To understand the structure of this book.
The study of consumer behavior enables marketers to understand and predict consumer behavior in the marketplace; it is concerned not only with what consumers buy but also with why, when, where, and how they buy it. Consumer research is the methodology used to study consumer behavior; it takes place at every phase of the consumption process: before the purchase, during the purchase, and after the purchase.
The field of consumer behavior is rooted in the marketing concept, a business orientation that evolved in the 1950s through several alternative approaches, referred to, respectively, as the production concept, the product concept, and the selling concept. The three major strategic tools of marketing are market segmentation, targeting, and positioning. The marketing mix consists of a company’s service and/or product offerings to consumers and the pricing, promotion, and distribution methods needed to accomplish the exchange. Consumer behavior is interdisciplinary; that is, it is based on concepts and theories about people that have been developed by scientists in such diverse disciplines as psychology, sociology, social psychology, cultural anthropology, and economics.
Skilled marketers make the customer the core of the company’s organizational culture and ensure that all employees view any exchange with a customer as part of a customer relationship, not as a transaction. The three drivers of successful relationships between marketers and customers are customer value, high levels of customer satisfaction, and building a structure for customer retention.
Digital technologies allow much greater customization of products, services, and promotional messages than do older marketing tools. They enable marketers to adapt the elements of the marketing mix to consumers’ needs more quickly and efficiently, and to build and maintain relationships with customers on a much greater scale. However, these technologies also represent significant challenges to marketers and to business models that have been used for decades.
Consumer behavior has become an integral part of strategic market planning. The belief that ethics and social responsibility should also be integral components of every marketing decision is embodied in a revised marketing concept—the societal marketing concept—that calls on marketers to fulfill the needs of their target markets in ways that improve society as a whole.
1. Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
*****Use Key Term consumer behavior Here, Use Learning Objective #1.1 Here; Use Table #1.1 Here; Use Figure #1.1 and #1.2 Here*****
a) Consumer behavior focuses on how individuals make decisions to spend their available resources on consumption-related items. b) As consumers, we play a vital role in the health of the...