Consumer Behavior,

Eighth Edition
SCHIFFMAN & KANUK

Chapter 1
Introduction: The Impact of
the Digital Revolution on
Consumer Behavior
1-1

Opening
Vignette

1-2

Objectives of One-to-One
Marketing
To attain customers
Sell them more products
Make a profit

1-3

Digital Revolution in the

Marketplace
Allows customization of products, services,
and promotional messages like never before
Enhances relationships with customers
more effectively and efficiently

1-4

Changes in the Business Environment

Increased consumer Access to customer
patterns and
power
preferences
Access to
Evolution to other
information
-Web
connection
More products and
PDAs
services
HDTV
Interactive and
Mobile phones
instant exchanges
1-5

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.

1-6

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.

1-7

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.

1-8

Development of the Marketing

Concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept
1-9

The Production Concept

Assumes that consumers are interested
primarily in product availability at low
prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion
1-10

The Product Concept

Assumes that consumers will buy the
product that offers them the highest quality,
the best performance, and the most features
Marketing objectives:
Quality improvement
Addition of features

Tendency toward Marketing Myopia

1-11

The Selling Concept

Assumes that consumers are unlikely to buy
a product unless they are aggressively
persuaded to do so
Marketing objectives:
Sell, sell, sell

Lack of concern for customer needs and

satisfaction
1-12

The Marketing Concept

Assumes that to be successful, a company
must determine the needs and wants of
specific target markets and deliver the
desired satisfactions better than the
competition
Marketing objectives:
Profits through customer satisfaction
1-13

Business Leaders Who Understood

Consumer Behavior
Alfred Sloan, General Motors
Colonel Sanders, KFC
Ray Kroc, McDonalds

1-14

1-15

The Marketing Concept

A consumer-oriented philosophy that
suggests that satisfaction of consumer
needs provides the focus for product
development and marketing strategy to
enable the firm to meet its own
organizational goals.

1-16

Implementing the Marketing

Concept

1-17

Consumer Research
Segmentation
Targeting
Positioning

Consumer Research
The process and tools used to study
consumer behavior.
Two perspectives:
Positivist approach
Interpretivist approach

1-18

Segmentation, Targeting, and

Positioning
Segmentation: process of dividing the
market into subsets of consumers with
common needs or characteristics
Targeting: selecting one ore more of the
segments to pursue
Positioning: developing a distinct image for
the product in the mind of the consumer
1-19

Successful Positioning
Communicating the
benefits of the
product, rather than
its features

1-20

Communicating a
Unique Selling
Proposition for the
product

The Marketing Mix

1-21

Product
Price
Place
Promotion

Successful Relationships

Customer
Value
Customer
Satisfaction
1-22

Customer
Retention

Types of Customers
Loyalists
Apostles
Defectors

1-23

Terrorists
Hostages
Mercenaries

Customer Profitability-Focused
Marketing

Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead
1-24

Societal Marketing Concept

A revision of the traditional marketing
concept that suggests that marketers adhere
to principles of social responsibility in the
marketing of their goods and services; that
is, they must endeavor to satisfy the needs
and wants of their target markets in ways
that preserve and enhance the well-being of
consumers and society as a whole.
1-25

The Societal Marketing Concept

All companies prosper when society
prospers.
Companies, as well as individuals, would be
better off if social responsibility was an
integral component of every marketing
decision.
Requires all marketers adhere to
principles of social responsibility.
1-26

External Influence

Process

Consumer Decision Making

Output

1-27

Post-Decision
Behavior

Input

Firms Marketing Efforts

1. Product
2. Promotion
3. Price
4. Channels of distribution

Need
Recognition
Prepurchase
Search
Evaluation of
Alternatives

Purchase
1. Trial
2. Repeat purchase
Postpurchase Evaluation

Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial
sources
4. Social class
5. Subculture and culture

Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience

Figure 1-1:
A Model of
Consumer
Decision
Making