Chapter 1

Front 1

Consumer Behavior

Back 1

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 have on the consumer and society.

Front 2

Four key aspects regarding Consumer Behavior

Back 2

1) Successful marketing decisions by firs require extensive information about consumer behavior and apply it on a daily basis
2) Must collect information about the specific consumers involved in the marketing decision at hand, gives manager proper questions to ask
3) Consumer Behavior is a complex multidimensional process
4) Marketing practices designed to influence consumer behavior involve ethical issues that affect the firm, the individual, and society

Front 3

What are all marketing decisions and regulations based on?

Back 3

Assumptions and knowledge about consumer behavior

Front 4

What applications does CB have on marketing strategy?

Back 4

Developing customer value and a better understanding of our target market

Front 5

Social Marketing

Back 5

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.

Front 6

Customer Value

Back 6

The difference between all the benefits derived from a total product and all the costs of acquiring those benefits.

Front 7

Who should firms consider when it comes to value?

Back 7

customer's and their perspective

Front 8

What is the essence of a good marketing strategy?

Back 8

Providing superior customer value by requiring the organization to do a better job of anticipating and reacting to customer needs than the competition does.

Front 9

Applications of Consumer Behavior (consumers)

Back 9

Marketing research done to discover the consumers needs. Knowing the consumer requires understanding the behavioral principles that guide consumption behaviors.

Front 10

Applications of CB (Marketers)

Back 10

A firm must fully understand its own ability to meet customer needs. Evaluation of all aspects of the firm including financial, management, production capabilities, technology, reputation, and marketing skills. Not understanding one's own strengths can be dangerous.

Front 11

Applications of CB (Government)

Back 11

Agencies of gov. have greatly reduced international trade barriers and raised the level of both competition and consumer expectations.

Front 12

Market Segment

Back 12

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

Front 13

Small segment

Back 13

more expensive it is to serve

Front 14

4 steps of market segmentation

Back 14

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

Front 15

Bases for segmentation

Back 15

Firms approach market segmentation with a set of current and potential capabilities (i.e. reputation, existing product, technology).
1. first task to identify need sets that firm is capable or could become capable of meeting
2. Use of focus groups and depth interview to identify sets.
3. Attempt to discover similarities between different groups to appeal to them as well

Front 16

Need Set

Back 16

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

Front 17

Segmentation basis

Back 17

1. needs
2. consumer characteristics associated with needs
3. Group consumers with similar need sets( focus groups, surveys, product concept tests)
4. Description of each individual group
5. Election of target market, based on our ability to provide the selected segment with superior customer value at a profit.

Front 18

Target Market

Back 18

That segment(s) of the larger market on which we will focus our marketing effort.