1 Consumer Behavior

Question 1

What is Consumer Behavior?

Answer 1

“The study of the processes involved when individuals or groups select, purchase, use, or
dispose of products, services, ideas, or experiences to satisfy needs and desires.”

• Consumer / Marketer Perspective
• Prepurchase / Purchase / Postpurchase Issues

Question 2

Brand-Owned Touchpoints

Answer 2

• Designed and managed by the firm and
under the firm’s control
• Brand-owned media (e.g., advertising,
websites, loyalty programs)
• Brand-controlled elements of the
marketing mix (e.g., attributes of
product, packaging, service, price,
convenience, sales force)

Question 3

Partner-Owned Touchpoints

Answer 3

Jointly designed, managed, or controlled
by the firm and one or more of its
partners
• Examples of partners: marketing
agencies, distribution partners,
communication channel partners, loyalty
program partners (e.g., Payback)

Question 4

Customer-Owned Touchpoints

Answer 4

Not influenced or controlled by the firm
or its partners
• Customer co-creation
• Social media

Question 5

Social/External Touchpoints

Answer 5

• Other customers, peer influences, thirdparty information sources (social media,
review sites), environments

Question 6

Marketing Strategy and Consumer Behavior (Segmentation)

Answer 6

Identify product-related need sets
Group customes with similar need sets
Describe each group
Select attractive segment(s) to target

Question 7

Market Analysis POW

Answer 7

Company
Recognizing firms’ (marketing) abilities
(strength/ weaknesses), including NPD,
channel, advertising, service, research,
consumer knowledge, …

Competitors
Knowledge of competitors’ capabilities and
strategies

Conditions
State of economy, physical environment,
government regulations, technological
developments

Consumers
Knowledge of consumers’ needs and desires
and anticipate their reactions

Question 8

Market Segmentation Types

Answer 8

Steady Shoppers / Last-minute Shoppers / Balck Friday Shoppers / Early Bird Shoppers

Question 9

Marketing Strategy Components

Answer 9

Product
Consumers buy need satisfaction, not a
physical product

Price
Consumer cost: everything a consumer
must surrender in order to receivethe
benefits of owning/using a product

Communication
With whom? What? Where? When? What
effect?

Distribution
How? Where? When?

Service
Auxiliary or peripheral activities that are
performed to enhance the primary produc

Question 10

Outcomes

Answer 10

Firm outcomes
Product/Brand position
Sales and profits
Customer satisfaction

Individual outcomes
Need satisfaction
Injurious consumption

Society outcomes
Economic
Physical environment
Social welfare

Question 11

Consumer Trends

Answer 11

Health Undefined
 Collective
 Empowerment 
Priority Shift
Coming Together 
Sustainable Spaces 
Digital Dilemmas

Question 12

Consumer Behavior Summary

Answer 12

what consumer behavior is
…how consumer behavior shapes marketing strategy (and vice versa?)
…the scientific disciplines that study consumer behavior
…consumer trends to look out for