Chapter 1 Flashcards
What is consumer behaviour and what are the different types of consumers?
Consumer behaviour is the behaviour that consumers display in searching for, purchasing, evaluating and disposing of products and services that they expect will satisfy their needs. We are all consumers and can determine the health of the economy and success/failure of businesses. There are personal consumers (own use, household or gift for final use) and organisational consumer (govt, business or institution for the running of operations)
What is the relationship between consumer behaviour and the marketing concept?
Consumer behaviour rooted in three different philosophical business orientations – production, sales and marketing.
Production – 1850s to 1920s; gearing up manufacturing skills to expand and make more products. Focus on perfecting production capabilities. Era where demand exceeded supply – consumers happy regardless of variety.
Sales – 1930s to 1950s; focus to sell more; supply>demand,
Marketing – 1950s to current: a response to consumer behaviour - focus on customers and their needs and wants; satisfy consumer better than competitor and rewarded with profit
What is the relationship between consumer behaviour and the societal marketing concept?
extension to the marketing concept which suggests consumers may respond to their immediate wants and needs at the expense of their long-term best interest thus companies ‘remind’ and influence consumers to consume in their best interest.
How do companies embrace the marketing concept?
Companies employ CONSUMER RESEARCH practices to identify consumers’ wants and needs before putting out products, services or promotions. They also recognize that there are different segments in the market and they need to understand needs and wants of different segments in order to better satisfy those wants and needs.
How do companies implement the marketing concept?
Segmentation – process of dividing a market into subsets of consumers with common needs or characteristics
Market targeting – selection of one or more of the segments identified to pursue
Positioning – Developing distinct image for the product in the mind of the consumer – communicating the benefits and the USP
What are the four P’s of the marketing mix?
Product, place, price, promotion
What are the four drivers of a successful relationship between marketers and consumers?
Customer value, customer satisfaction, customer trust, customer retention
Expand on customer value
The ratio between perceived benefits and resources used to obtain; relative and subjective; BEFORE
Expand on customer satisfaction
The perception of performance of product/service in relation to expectation; types – positive (loyalists, apostles), negative (defectors, terrorists, hostages, mercenaries)
Expand on customer trust
Belief that company won’t cause harm. It is essential and determines loyalty. Delight concept - patches things up to reinforce trust
Expand on customer retention
By creating the above three conditions, satisfied customers will be retained; they buy more, are less price sensitive, cheaper to service and spread word of mouth.
How does technology influence marketers ability to better satisfy needs and wants of consumers?
Marketers can: • Offer more services and products than before through customization • Instantaneous exchanges with consumers • Collect and analyse lots of data Consumers have: • More access to information than before • More power than ever • Means of access
