Buyer Behavior Chapter 1 Notes
Buyer Behavior Chapter 1 Notes MARK 3324
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This 3 page Class Notes was uploaded by Sarah Quinn on Thursday January 28, 2016. The Class Notes belongs to MARK 3324 at University of Texas at Arlington taught by Adwait Khare in Spring 2016. Since its upload, it has received 98 views. For similar materials see Consumer Behavior in Marketing at University of Texas at Arlington.
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Date Created: 01/28/16
Know definitions. Chapter 1:Consumer Behavior and Marketing Strategy Consumer behavior: 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. Traditionally focused on the buyer and immediate antecedents and consequences of purchasing process. 4 key aspects: consusmer behavior is a complex, multidimensional process; successful marketing decisions by firms, nonprofit organizations, and regulatory agencies require an understanding of the processes underlying consumer behavior; successful marketing decisions require organizations to collect information about the specific consumers involved in the marketing decision at hand; and marketing practices designed to influence consumer behavior involve ethical issues that affect the firm, the individual, and society. Applications of Consumer Behavior Marketing Strategy Decisions based on consumer behavior theory, assumptions, and research are more successful than hunches or intuition and create competitive advantage. Regulatory Policy Exist to develop interpret, and/or implement policies to protect and aid consumers like the FDA ect. Social Marketing 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. Used to reduce smoking, receive vaccinations ect. Informed Individuals Consumption societies are most economically developed societies. Consumers must accurately understand strategies and tactics used so they can be more effective consumers. Market Strategy and Consumer Behavior Application of consumer behavior involve the development, regulation, and effects of marketing strategy. Begins with analysis of market, identifies groups, households, or firms with similar needs, select market segments, market strategy, consumer decision process, outcome. Market analysis (company, competitors, conditions, consumers), Market segmentation (identify product related need sets, group customers with similar needs, select attractive segment(s) to target), marketing strategy (product, price, distribution, promotion, service), Consumer decision process (problem recognition, information search, alternative evaluation, purchase, use, evaluation), Outcomes (individual, firm, society). Customer value: the difference between all the benefits derived from a total product and all the costs of acquiring those benefits. From customer perspective. Total product: the entire set of characteristics. Market Analysis Components The Consumers Understanding consumers is complex process. Understand behavioral principles that guide consumption behaviors. The Company Understand own ability to meet customer needs. Evaluate all aspects of the firm to understand strengths and weaknesses. The Competitors Understand competition's capabilities and strategies. Know competition's firm like one knows ones own firm. The Conditions State of economy, environment, government regulations, tech developments. Market Segmentation Market segment: a portion of a larger market whose needs differ somewhat from the larger market. Must be large enough to be served profitably although customization helps. Behavioral targeting: consumers' online activity is tracked and specific banner ads are delivered based on that activity. 4 steps of market segmentation: identifying productrelated need sets, grouping customers with similar need sets, describing each group, and selecting an attractive segment(s) to serve. ProductRelated Need Sets Need set: most products in developed economies satisfy more than one need. Requires focus groups and depth interviews as well as logic and intuition. Need sets associated with age, gender, social class, ethnic group, ect. Customers with Similar Need Sets Group customers together. Involves consumer research including focus group interviews, surveys, and product concept tests and analysis of current consumption patterns. Description of Each Group Describe in terms of demographics, lifestyle, and media usage. Understand potential customers. Attractive Segment(s) to Serve Target market: the segment(s) of the larger market on which we will focus our marketing effort. Size and growth of segment(s), intensity of current and anticipated competition, cost of providing superior value ect are important considerations. Marketing Strategy Marketing strategy: answer to How will we provide superior customer value to our target market? Requires formulation of consistent marketing mix. Marketing mix: product, price, communication (promotions), distribution (placement), and services provided to the target market. Combo meets customer needs and customer value. The Product Product: anything a customer acquires or might acquire to meet a perceived need. Generally buying need satisfaction. Product is physical products and primary or core services. Includes packaging, branding, and logos. Communications Marketing communications: advertising, the sales force, public relations, packaging, and any other signal that the firm provides about itself and its products. Price Price: the amount of money one must pay to obtain the right to use the product. Can serve as signal of quality. Consumer cost: everything the consumer must surrender in order to receive the benefits of owning/using the product. Like insurance, gas, maintenance for a car. Distribution Distribution: having the product available where target customers can buy it. Service Service: auxiliary or peripheral activities that are performed to enhance the primary product or primary service. Like free pickup and delivery of car. Consumer Decisions Consumer decision process intervenes between marketing strategy and outcomes. Consumers must see need that firms product can solve, become aware of the product and its capabilities, decide it's best, buy it, and be satisfied with result. Outcomes Firm Outcomes Product Position: an image of the product or brand in the consumer's mind relative to competing products and brands. Sales and Profits. Customer Satisfaction. Customer satisfaction: customers satisfied with their purchase and use of product. Individual Outcomes Need Satisfaction. Injurious Consumption. Injurious consumption: when individuals or groups make consumption decisions that have negative consequences for their longrun wellbeing. like cigarettes, gambling, ect. Society Outcomes Economic Outcomes. Physical Environment Outcomes. Social Welfare. Nature of Consumer Behavior External Influences (Part II) Culture, subculture, demographics, social status, reference groups, family, marketing activities. Internal Influences (Part III) Perception, learning, memory, motives, personality, emotions, attitudes. SelfConcept and Lifestyle Selfconcept: totality of an individual's thoughts and feelings about themselves. Lifestyle: how one lives. Consumer Decision Process (Part IV) Results from perceived problems and opportunities. Organizations (Part V) and Regulation (Part VI) Orgs and businesses can also be consumers. Businessto business. Meaning of Consumption
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