...Chapter 1 Segmentation A segmentation strategy begins by selecting the bases representing the core attributes of a group of existing potential customers. 1. It must be noted that a single characteristics is never used alone and that virtually all segmentation plans are in the forms of hybrid segmentation that include attributes from 2 or more. | |Consumer-rooted |Consumption-specific | |Facts |Demographic factors |use-related characteristics | | |Geographic factors |use-situation factors | |cognitions |Psychological factors |benefit sought | | |Psychographic (lifestyle) characteristics |hybrid segmentation | | |Sociocultural variables | | 1. Facts can be determined from direct questioning and categorized by a single objective measure. (Quantitative) 2. Cognitions...
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...1 Consumer behavior; The behavior that consumers display in searching for, purchasing, using evaluating and disposing of products, services and ideas. Personal vs. organizational consumers; Personal; the individual who buys services for his or her own use. Organizational; a business or government agency or other institution that buys goods, services and equipment necessary to function. Marketing concept – incl. embracing and implementation A company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition. Profit is an appropriate reward for satisfying customers’ needs, not as a right of simply being in business. Embracing- consumer research must be done to study in depth. Implementation- Product/sales orientations Production orientation; 1850’s to late 1920’s gearing up manufacturing skills in order to match production. Challenge was to perfect production capabilities. Sales Orientation; 1930’s to mid 1950’s- Sell more of what the manufacturing department was able to produce. Societal marketing concept Consumers may on occasion respond to their immediate needs or wants while overlooking their own long run interest or that of their neighbors and the entire planet. Marketing mix The 4 P’s; Product Price Place and Promotion. Customer value A ratio between the customers perceived benefits and resources used to obtain those benefits. Relationships in consumer behavior Building...
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...Smile Consumer Behaviour - chapter 1 - January 2nd, 2009 hie .. these are consumer behaviour schiffman notes .. il b uploading chapter wise (chpter 1 - Chpter 12)... unable to attach them .. CHAPTER 1 Consumer Behavior: Its Origins and Strategic Applications LEARNING OBJECTIVES After studying this chapter students should be able to: 1. Understand the impact of the digital revolution on general consumer behavior. 2. Define consumer behavior. 3. Identify the two major approaches to the study of consumer behavior. 4. Understand the development of the marketing concept. 5. Understand the role of consumer research in the study of consumer behavior. 6. Understand how segmentation, targeting, and positioning are used in the study of consumer behavior. 7. Define customer value, satisfaction, and retention. 8. Discuss the role of ethics in marketing. 9. Describe the societal marketing concept. 10. Briefly discuss the three interlocking stages of consumer decision-making. CHAPTER SUMMARY 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. Consumer behavior is interdisciplinary; that is, it is based on...
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...agree that creating customer value is fundamental to both profit-seeking companies and nonprofit organizations. Indeed, creating superior customer value is a necessary condition for a company securing a niche in a competitive environment, not to mention a leadership position in the market. In addition, the difference in the meaning of "value" in the marketing literature, particularly in two areas: marketing strategy and consumer behavior. What marketing strategists mean "customer value", "consumer value" meaning is completely different from the consumer behavior research and discussion. In fact, by emphasizing the customers' perceptions, indicates a direction in which the two different, but related, concepts of value in marketing discipline might be integrated. After the process of product valuation for consumers has been made clear. In the proposed model, product benefits, logistic benefits, and costs are defined in terms of consumers' perception in the activities of acquisition, consumption and maintenance, as well as consumers' expectation of personal values satisfaction before buying. Finally, the implications of consumption behavior analysis for marketing strategy are discussed. Many consumers experience anxiety when consumers decide and buy a car it is because buying a car not only travel for those people travel more than in office of course need most suitable car for them. Often the buying process involves negotiating with a dealer or vendor that consumers perceive as having...
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...Chapter 14 ConsumPTION TO Satisfaction WHAT DO YOU THINK Polling Question When I’m treated unfairly by a business, dissatisfaction describes my feelings well. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far. Learning Outcomes After studying this chapter, the student should be able to: L01 Gain an appreciation of the link from consumption to value to satisfaction. L02 Discuss the relative importance of satisfaction and value in consumer behavior. L03 Know that emotions other than satisfaction can affect postconsumption behavior. L04 Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. L04 Understand problems with commonly applied satisfaction measures. L06 Describe some ways that consumers dispose of products. Suggested Lecture Opener When we think about consumer satisfaction and the consumption process, the link seems clear. Businesses with high levels of consumer satisfaction succeed, and those with low levels fail. However, this isn’t always...
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...T1 Chapter 1 Marketing: is the activity, set of instructions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at-large. Goals are: 1. Attract new customers by promising superior value. 2. Keep and grow current customers by delivering satisfaction Marketing process: Needs: states of felt deprivation. Physical needs: Food, clothing, shelter, safety Social needs: Belonging, affection Individual needs: Learning, knowledge, self‐expression Wants: the form human needs take as shaped by culture and individual personality Demands: Human wants that are backed by buying power. Market offering: Some combinations of products, services, information or experience offered to a market to satisfy a need or want. Products: Persons, places, organizations, information, ideas. Services: Activity or benefit offered for sale that is essentially intangible and does not result in ownership. Brand experiences: “. . . dazzle their senses, touch their hearts, stimulate their minds.” Marketing Myopia: The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. They focus more on the wants and lose sight of the needs. Customer value and satisfaction: Care must be taken when setting expectations: If performance is lower than expectations, satisfaction is low. If performance is higher...
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...for creating, communicating, and delivering value for customers and for managing customer relationships in ways that benefit the organization and its stakeholders. * Utility- the ability of goods and services to satisfy consumer “wants.” * Marketing Concept- a business philosophy that makes customer satisfaction now and in the future the central focus of the entire organization. * Customer Relationship Management (CRM) - the ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value. * Value- a customer perception that a product has a better relationship than its competitors between the cost and the benefits. * Customer Satisfaction- when customers perceive that a good or service delivers value above and beyond their expectations. * Customer Loyalty- when customers buy a product from the same supplier again and again sometimes paying even more of it than they would for a competitive product. * Marketing Plan- a formal document that defines marketing objectives and the specific strategies for achieving those objectives. * Market Segmentation- dividing potential customers into groups of similar people, or segments. * Target Market- the group of people who are most likely to buy a particular product. * Consumer Marketers or Marketing- marketers who direct their efforts toward people who are buying products for personal consumption. * Business Marketers or Marketing- marketers...
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...Consumer Behavior, 10e (Schiffman/Kanuk) Chapter 1 Consumer Behavior: Meeting Changes and Challenges 1) The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs is known as ________. A) the production orientation B) consumer behavior C) narrowcasting D) positioning E) the marketing mix Answer: B Diff: 1 Page Ref: 5 Skill: Concept Objective: 1.1: Understand what consumer behavior is and the different types of consumers 2) Which of the following is considered an example of consumer behavior? A) Janice prefers to buy name-brand pain relievers like Tylenol and Advil, rather than the store brand. B) Javier generally gets gas on Monday mornings on his way to work. C) Jessica prefers to buy her produce from the farmer's market instead of the grocery store. D) Jeremy generally recycles his old newspapers and cardboard boxes. E) All of the above are examples of consumer behavior. Answer: E Diff: 2 Page Ref: 5 Skill: Application Objective: 1.1: Understand what consumer behavior is and the different types of consumers 3) When Bill orders five movie tickets online for himself and his friends for a Friday night showing of the latest action thriller, he is acting as a(n) A) organizational consumer B) team consumer C) non-profit consumer D) market consumer E) personal consumer Answer: E Diff: 2 Page Ref: 5 Skill: Application Objective: 1...
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...Introduction: -In business, business owners need to know are the marketing knowledge, understanding of the consumer and how to persuade consumers to use your product. to achieve high performance in business, we need to understand and know what is the marketing environment, it includes the environment macro and micro environment. In addition, consumer behavior is an extremely important factor in sales for each company, the choice of the customer will determine your company's products. to occupy high positions in the number who consume the products of the company, we should learn more about the goals and business strategy in order to gain the advantage, as well as to capture the market and understand customer behavior. Those are important factors in the business environment. For the Heineken beer company, all of the above concepts are to be demonstrated and put out clear strategies for the marketing of products on the environment. Task 2.1 *Micro environment is the environment includes factors that exist with the company and those affecting the ability to serve clients of that business and is a combination of craft and the scientific method to improve the company looking good products and the direct relationship of the company, then produced and provided about the possibility of serving the company. Micro environment consists of six steps. +Company is where you work, manufacturing and especially the problems related to marketing management. The senior management of the...
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...leader in the competing environment. A well-executed sustainability strategy can enhance the company’s value and reinforce competitive advantage in the market while protecting the capital base. The balance of power has shifted between corporations and it is important to balance economic prosperity along with environmental and social dimensions. Sustainable business strategy represents a marked shift in traditional business practices and companies who do not adapt to the changes in these practices in order to achieve sustainable profitability will be more likely to face the brand value decline or even extinction in the future. For instance, the change represents the need to understand how all three dimensions affect each other and companies ought to consciously create new consumer preferences. However, a lot of companies still are missing guidelines to implementing a marketing strategy of sustainability as an essential part, which is at the core of ensuring organizational, social, economic and environment growth while managing overconsumption issues (White, 2011). Current researches tend to focus on developing a more sustainable approach on product design, pricing, promotion and distribution when it comes to the sustainable business strategy and companies are widely integrating this approach. On the other hand, the theoretical practices of promoting sustainable consumption in customer-citizens are an emerging potential for further development of sustainability. As a...
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...Marketing Chapter 7 Notes Product, Services, and Brands: Building Customer Value I. What is a product? * Product: anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. * can include events, persons, places, organizations, ideas. * Services: An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. * Examples: banking, hotel, airline travel, retail, wireless communication * A company’s market offering often includes both intangible and tangible goods and services. Two extreme ends: pure tangible goods, pure services. * In order for companies to differentiate their offers, they are creating and managing customer experiences with their brands or companies. * Levels of Product and Services: three main levels 1. Core customer value. “What is the buyer really buying?” Most basic level. 2. Actual Product. Need to develop product and service features, a design, a quality level, a brand name, and packaging. 3. Augmented product. Must build an augmented product around the core benefit and actual product services and benefits. * “Consumers see products as a complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core customer value that consumers seed from the product. They must then design the actual product and find ways to augment...
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...A Field Book of Consumer Behavior Mount Ida College BA513 1H Consumer Behavior 09/27/2014 Table of Contents Concept page Positioning by Association with Competitors……........................……………............3 Positioning by Brand Personality …...….............................................................….…..............4 Positioning by Consumer Benefits.................................................................................5 Positioning by Price.......................................................................................................6 Positioning by Brand User.............................................................................................8 Positioning by Brand Personality...................................................................................9 Consumer Lifestyles and Product/Consumption Constellations....................................10 Repetition.....................................................................................................................11 Consumer Familiarity or Experience............................................................................12 Factors Influencing Gestalt Perception........................................................................13 Perceptions of Product/Service Quality........................................................................14 Perception of a Pioneer Brand......
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...last three decades, and the current demand for luxury brand products has grown enormously. Wiedmann, Hennigs and Siebels(2009, p. 627) stated that a luxury good: “brings esteem for its owner and enables consumers to satisfy psychological and functional needs”. This essay will argue that marketing theories: brand theories and the ‘four-P framework’ ( product, pricing, place and promotion) are applied to bring superior value to luxury brands. It will also identify the tangible and intangible resources that are utilized to add superior value to luxury brands, in comparison to low-priced products. An illustration will also be given regarding luxury and basic cosmetic branding. Finally, it will be argued that it is not ethical to charge high prices for products. Nowadays the consumption of luxury products has become so vital to the global economy and the high profile of luxury goods has built widespread awareness of brands in customers’ perception. It is claimed that a luxury brand is one that is selective and exclusive, and which has an additional creative and emotional value for the customer (Chevalier and Mazzalovo, 2008). Even if some consumers cannot afford to buy luxury brands, they are familiar with the name or symbol of some famous brands that are classified as luxuries. A brand name helps differentiate its products from others and makes it distinct from those of other sellers. Brand equity concerns the value of a brand and it is important for a company to compete in...
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...This cability in build and leverage the value of intangible assets shapes the core organizational competency, and recognized as intellectual capital (IC), which has become the most wealth creator in organizations. In other words, the performance of organizations will be determined by their IC. The decison makers must deeply understood that IC for now becoming a major source to have organizational’s sustainable competitive advantage, which proven as the fundamental steps of successful business....
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...on finding the quantitative analysis, consumption patterns, and development of the market relations to that of average income. It will utilize data of both urban and rural areas because of the distinct consumption patterns, show the development analysis and potential markets through supply constrain approach and regression analysis. Coffee in china is more of a habit. People drink it to feel good and not out of necessity. Coffee culture in China appeals to the adventurous, young, affluent, urban consumers in cities like Guangzhou, Beijing, and Shanghai. The paper will look at the consumption patterns and its demand that looks more of a successful lifestyle and culture of the western people. Out from the traditional tea- drinking country, China seems to become one of the largest coffee consumption countries in future (Bantiwalu & Demisse, 2010). Keywords: Coffee market, Quantitative analysis, Coffee consumption patterns, Average income, Regression analysis, Chinese potential market for coffee Introduction Coffee has enormous economic, social, and environmental importance in China. Most especially the Ethiopian coffee grows demand to the Chinese potential markets. Ethiopia continues to produce quality coffee reaching to international markets, like China. People around the world, drink up to a total of 7.4 billion cups of coffee every year, while an approximate 20 million every day. There is an estimate of US$80Billion retail value of Coffee beans each year. This places...
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