There is only one boss the

customer. And he can fire

everyone from the Chairman
down
Sam Walton, Founder, WalMart Stores

Buyer Behavior
Buyer behavior focuses primarily on buyers and
buying.
But, often you buy for others (significant others,
spouses, friends, children)
To buy, you have to engage in activities other than
buying e.g., searching, learning to search, using,
knowing how to use, and disposing.

so buyer behavior cannot be the whole story

Consumption and Consumer

Behavior
Consumption
Activities, thoughts and feelings (of individuals
and groups) directed toward achieving
satisfaction (often using market offerings).

Consumers
Those who engage in consumption activities

Consumer Behavior (Brief definition)

How consumers go about achieving satisfaction.

What is 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.

Some definitions for consumer behaviour

Consumer Behaviour is the decision process and
physical activity individuals engage in when evaluating,
acquiring, using or disposing of goods and services
(Loudon and Della Bitta)

reflects the totality of consumers

decisions with respect to the acquisition, usage and
disposition of goods, services, time and ideas by
(human) decision making units (over time) (Jacob Jacoby)
Consumer Behaviour

A blow up of the definition

Consumer Behaviour reflects:
the totality
of decision
time
Whether

about the
consumption

What

Acquisiti
on

Why
How
When
Where
How
much/
How
often/
How long

Usage
Dispositi
on

of an
by decision
over
offering
making units
Produc
ts
Service
s
Time

Hours
Informati
on
gatherer
Influence
r
Decider

Days
Weeks
Month
s

Purchaser
User

Ideas
Marketing strategies and Tactics

Years

Why study consumer behavior?

Consumer behavior theory provides the
manager with the proper questions to
ask
Marketing practice designed to
influence consumer behavior influences
the firm, the individual, and society
All marketing decisions and regulations
are based on assumptions about
consumer behavior

Applications of Consumer
Behavior
Marketing Strategy
To satisfy target consumer needs

Regulatory Policy
To protect consumers

Social Marketing
To help consumers

Informed Individuals
To better understand how societies function

What is Customer Value?

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

What is required of a firm to provide superior customer

value?
It must do a better job of anticipating and reacting to
customer needs than the competition does.

What role does consumer behavior play in creating

superior customer value?
An understanding of consumer behavior is the basis for
marketing strategy formulation, and the consumers
reaction to this marketing strategy ultimately determines the
firms success or failure.

Who is the consumer?

ROLE
Initiator

DESCRIPTION

Influencer

A person who intentionally, or unintentionally

influences the purchase decision , the actual
purchase and/or the use of the product or service

Buyer

The individual who makes the

purchase transaction

User

The person most directly involved in

the consumption of the purchase

Individual who determines that some need or want

is not being met and initiates purchase behaviour
to rectify the situation

Possible participants in the

purchase process

S uggester
P urchaser
A dvisor
D ecision maker
E nd user

Marketing Strategy & Consumer

Behavior

Market Analysis Components

The Consumers
The Company
The Competitors
The Conditions

Market Segmentation
Market Segment: a portion of a
larger market whose needs differ
somewhat from the larger market.
Four steps to segmentation:
Identify product-related need sets
Group customers with similar need sets
Describe each group
Select an attractive segment(s) to serve

Market Segmentation
What is market segmentation?
Market segmentation involves aggregating
prospective buyers into groups that:
1. have common needs
2. will respond similarly to marketing actions
Why segment the market?
Market segmentation links market needs to an
organizations marketing programs.
When does an organization segment the
market?
When the potential increase in profits as a
result of segmenting outweigh the costs of
segmenting.

Market Segment Attractiveness

Marketing Strategy

How will we provide superior

customer value to our target market?
Marketing Mix
The Product
Communications
Price
Distribution
Service

 Firm:

Outcomes

Product positioning
Sales
Customer Satisfaction

Individual:
Need Satisfaction
Injurious Consumption

Society:
Economic
Physical Environment
Social Welfare

Creating Satisfied Customers

Consumer Behavior is Product

Person Situation Specific
Personal
Characteristics

Product
Characteristics

Consumption
Situation

Consumer
Behavior

Marketing
Strategy

Consumer Lifestyles and

Consumer Decisions
Needs/Attitudes
That Influence
Consumption Decisions
Consumer
Choices

Consumer
Lifestyle
Behavior/Experiences
That Influence
Consumption Decisions

Overall Model Of Consumer Behavior