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CONSUMER BEHAVIOUR
MRKT 405
Aysun ŞABANLI
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Aysun Sabanli
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The Book: 10th Edition
Consumer Behaviour
Leon G.Schiffman, Leslie Lazar Kanuk
Pearson
Copyright © 2015 Pearson Education
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Copyright © 2015 Pearson Education
Forget about MARKETING
Copyright © 2015 Pearson Education
How we will work:
 We will learn theories but we will focus more on business
practices
 We will analyse different social groups and segments
 Discuss around case studies
 Build up marketing strategies focusing on different segments
 We will talk about our observations regarding human
behaviour.
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Slide 5 of 26
Consumer Behavior: Meeting Changes
and Challenges
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Chapter 1 Learning Objectives
1.1 To understand the evolution of the marketing concept, the
most prominent tools used to implement marketing strategies.
1.2 To Understand How New Technologies Are Enabling
Marketers to Better Satisfy the Needs and Wants of Consumers.
1.3 To understand consumer behavior as an interdisciplinary area,
consumer decision-making, and the structure of this book.
1.4 To understand the interrelationships among customer value,
satisfaction, and retention, and technology’s revolutionary role
in designing effective retention measures and strategies.
1.5 Marketing Oriented Business Requirements:
1.6 To Understand the Makeup and Composition of a Model of
Consumer Behavior.
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Learning Objective 1.1
1.1 To understand the evolution of the
marketing concept, the most prominent tools
used to implement marketing strategies.
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Slide 8 of 26
Question:
What is marketing do you think?
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Development of the Marketing Concept
Production
Concept
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Product
Concept
Selling
Concept
Marketing
Concept
Slide 10 of 26
Production Orientation
• From the 1850s to the late 1920s
• Companies focus on production capabilities
• Consumer demand exceeded supply
Production
Orientation
Product Concept
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Sales Orientation
Marketing Concept
Chapter One Slide 11
Product Orientation
• Companies focus on highest quality and adding up
features
• Companies believes their product is unique and
offers distinctive benefits.
• Companies focus on product development, and
competitors instead of market needs.
Production
Orientation
Product Concept
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Sales Orientation
Marketing Concept
Chapter One Slide 12
Sales Orientation
• From the 1930s to the mid 1950s
• Focus on selling
• Supply exceeded customer demand
Production
Orientation
Product Concept
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Sales Orientation
Marketing Concept
Chapter One Slide 13
Marketing Concept
• 1950s to current - Focus on the customer!
• Determine the needs and wants of specific
target markets
• Deliver satisfaction better than competition
Production
Orientation
Product Concept
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Sales Orientation
Marketing Concept
Chapter One Slide 14
Marketing Concept
The essence of marketing consists
of satisfying consumers’ needs,
creating value, and retaining
customers.
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Slide 15 of 26
Marketing Concept Application
How does Classico’s ad
relate to the marketing
concept?
Marketing Concept
Kotler Definition
Marketing Management is the Art and Science of
choosing target markets and getting, keeping and
growing customers through creating, delivering and
communicating superior customer value.
Copyright © 2015 Pearson Education
Slide 17 of 26
Learning Objective 1.2
1.2 To Understand How New Technologies Are
Enabling Marketers to Better Satisfy the Needs
and Wants of Consumers.
Consumers Have Embraced Technology
New Era
“Peep Culture Era”
Hal Niedzviecki
“Excessive sharing: Sharing private information. And asking for approval from the
people who has exposed to peep”.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
New Era
“Network Culture”
Beth Coleman
Virtual
Selves
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Real
Selves
New
Marketing Era
The new responsibility of marketing is to the
build real relationship with the customers.
The one and only focus is HUMAN.
Impact of Digital Technologies
Marketers
Consumers
• More products and
services through
customization
• Instantaneous exchanges
• Collect and analyze data
• Power
• Information
• Computers, phones, PDA,
GPS, smart TV
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter One Slide 25
Discussion Question
How does technology affect the Marketing Mix?
Provide examples:
• Interactive and communication channels
• Customizing products and promotional
messages
• Better prices and distribution
Learning Objective 1.3
1.3 To understand consumer behavior as an
interdisciplinary area, consumer decisionmaking, and the structure of this book.
Consumer Behavior
• The behavior that consumers display in
searching for, purchasing, using, evaluating,
and disposing of products and services that
they expect will satisfy their needs.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter One Slide 28
Two Consumer Entities
Personal Consumer
• The individual who
buys goods and
services for his or her
own use, for
household use, for
the use of a family
member, or for a
friend.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Organizational
Consumer
• A business,
government agency,
or other institution
(profit or nonprofit)
that buys the goods,
services, and/or
equipment necessary
for the organization to
function.
Chapter One Slide 29
How can a car help express its owners’ characteristics?
Consumer Behavior Is
Interdisciplinary
Psychology
Economics
Anthropology
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Sociology
Social
psychology
Chapter One Slide 31
Learning Objective 1.5
1.5 Marketing Oriented Business Requirements:
Marketing Concept Requirements
• Consumer Research
• Market Segmentation, Targeting and
Positioning
• The Marketing Mix (4 Ps)
– Product or service
– Price
– Place
– Promotion
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Slide 33 of 26
The Marketing Concept
Embracing the Marketing
Concept
•
•
•
•
Consumer Research
Segmentation
Market Targeting
Positioning
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
• The process and tools
used to study consumer
behavior
Chapter One Slide 34
The Marketing Concept
Implementing the
Marketing Concept
•
•
•
•
Consumer Research
Segmentation
Market Targeting
Positioning
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
• Process of dividing the
market into subsets of
consumers with
common needs or
characteristics
Chapter One Slide 35
Discussion Questions
1. What products that you regularly purchase
are highly segmented?
2. What are the different segments?
3. Why is segmentation useful to the marketer
for these products?
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter One Slide 36
The Marketing Concept
Implementing the
Marketing Concept
•
•
•
•
Consumer Research
Segmentation
Market Targeting
Positioning
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
The selection of one or
more of the segments
identified to pursue
Chapter One Slide 37
The Marketing Concept
Implementing the
Marketing Concept
•
•
•
•
Consumer Research
Segmentation
Market Targeting
Positioning
• Developing a distinct image for
the product in the mind of the
consumer
• Successful positioning includes:
– Communicating the benefits
of the product
– Communicating a unique
selling proposition
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter One Slide 38
The Marketing Mix
Product
Price
Marketing
Mix
Place
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Promotion
Chapter One Slide 39
Learning Objective 1.4
1.4 To understand the interrelationships among
customer value, satisfaction, and retention, and
technology’s revolutionary role in designing effective
retention measures and strategies.
Successful Relationships
Customer value
High level of
customer
satisfaction
Customer
retention
Successful Relationships
Value, Satisfaction,
and Retention
• Customer Value
• Customer
Satisfaction
• Customer
Retention
• Defined as the ratio between
the customer’s perceived
benefits and the resources
used to obtain those
benefits
• Perceived value is relative
and subjective
• Developing a value
proposition is critical
Discussion Questions
• How does McDonald’s
create value for the
consumer?
• How do they
communicate this
value?
Successful Relationships
Value, Satisfaction,
and Retention
• Customer
Value
• Customer
Satisfaction
• Customer
Retention
• The individual's perception
of the performance of the
product or service in
relation to his or her
expectations.
• Customer groups based on
loyalty include loyalists,
apostles, defectors,
terrorists, hostages, and
mercenaries
Successful Relationships
Value, Satisfaction,
and Retention
• Customer Value
• Customer
Satisfaction
• Customer
Retention
• The objective of providing
value is to retain highly
satisfied customers.
• Loyal customers are key
–
–
–
–
They buy more products
They are less price sensitive
Servicing them is cheaper
They spread positive word
of mouth
Customer Profitability-Focused Marketing
• Tracks costs and
revenues of
individual consumers
• Categorizes them
into tiers based on
consumption
behavior
• A customer pyramid
groups customers
into four tiers
Platinum
Gold
Iron
Lead
THE TRADITIONAL MARKETING CONCEPT
VALUE- AND RETENTION-FOCUSED
MARKETING
Make only what you can sell instead of trying
to sell what you make.
Use technology that enables customers to
customize what you make.
Do not focus on the product; focus on the
need that it satisfies.
Focus on the product’s perceived value, as well
as the need that it satisfies.
Market products and services that match
customers’ needs better than competitors’
offerings.
Utilize an understanding of customer needs to
develop offerings that customers perceive as
more valuable than competitors’ offerings.
Research consumer needs and characteristics.
Research the levels of profit associated with
various consumer needs and characteristics.
Understand the purchase behavior process and Understand consumer behavior in relation to
the influences on consumer behavior.
the company’s product.
Realize that each customer transaction is a
discrete sale.
Make each customer transaction part of an
ongoing relationship with the customer.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter One Slide 46
Technology and Customer Relationships
For Discussion:
• Provide two examples where brands used
technology to engage consumers/enhance
customer relationships.
• Provide two examples where technology was
used to add value to the consumer.
Learning Objective 1.6
1.6 To Understand the Makeup and Composition
of a Model of Consumer Behavior.
Consumer Decision Making
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THANK YOU 

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