Chapter 1

Introduction to Consumer Beh

aviour

Consumer Behaviour
Canadian Edition
Schiffman/Kanuk/Das
 Opening Vignettes
 Tim Horton’s started in 1964
• Merged with Wendy’s in 1999
• Has operations in several states in
the US
• Mercedes Who is likely to be the
typical buyer of Smart?

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Consumer Behaviour

The behaviour that consumers dis

play in searching for, purchasin
g, using, evaluating, and disposi
ng of products and services that
they expect will satisfy their nee
ds.
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Personal Consumer

The individual who buys goods a

nd services for his or her own u
se, for household use, for the us
e of a family member, or for a fr
iend.
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Development of the Marketing C
oncept
Production
Concept

Product Concept

Selling Concept

Marketing
Concept
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 The Production Concept

 Assumes that consumers are interested

primarily in product availability at lo
w prices
 Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion

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 The Product Concept
 Assumes that consumers will buy the p
roduct that offers them the highest qual
ity, the best performance, and the most
features
 Marketing objectives:
– Quality improvement
– Addition of features
 Tendency toward Marketing Myopia
1-7
Copyrig
The Selling Concept

 Assumes that consumers are unlikely t

o buy a product unless they are aggress
ively persuaded to do so
 Marketing objectives:
– Sell, sell, sell
 Lack of concern for customer needs an
d satisfaction
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The Marketing Concept

 Assumes that to be successful, a compa

ny must determine the needs and wants
of specific target markets and deliver t
he desired satisfactions better than the
competition
 Marketing objectives:
– Profits through customer satisfaction
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Business Leaders Who Understood
Consumer Behaviour
 AlfredSloan, General Motors
 Colonel Sanders, KFC
 Ray Kroc, McDonald’s

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Implementing the Marketing Conc
ept
 Consumer Research
 Segmentation
 Targeting
 Positioning

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Segmentation, Targeting, and Posi
tioning
 Segmentation: process of dividing the
market into subsets of consumers with
common needs or characteristics
 Targeting: selecting one ore more of th
e segments to pursue
 Positioning: developing a distinct imag
e for the product in the mind of the con
sumer
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Successful Positioning

 Communicating the benefits of t

he product, rather than its featur
es
 Communicating a Unique Selling
Proposition for the product

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The Marketing Mix

 Product
 Price
 Place
 Promotion

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The Societal Marketing Concept
 All companies prosper when society pro
spers.
 Companies, as well as individuals, woul
d be better off if social responsibility wa
s an integral component of every market
ing decision.
 Requires all marketers adhere to
principles of social responsibility.
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Digital Revolution in the Marketpl
ace
 Allows customization of products, servi
ces, and promotional messages like nev
er before
 Enhances relationships with customers
more effectively and efficiently
 Has increased the power of customers a
nd given them access to more informati
on
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Digital Revolution in the Marketpl
ace - Continued
 The exchange between consumers
and marketers has become more int
eractive
 May affect the way marketing is do
ne

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 Changes brought on by the digita
l revolution
 Changes in segmentation strategies
 Re-evaluation of promotional budgets
– reduced impact of television?
– More internet-based promotion?
 Integrated marketing becomes critical
– Using off-line promotions to drive consu
mers to company’s website (and vice-a-
Cop
versa)
» Continued

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 Changes brought on by the digital rev
olution - continued
 Revamping distribution systems
– Direct distribution becomes more of an option
 Pricing methods may need to be re-eval
uated
– Comparison shopping made easier
 Consumer research methods may chang
e
– How do you measure web-based promotions?
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Why study consumer behaviour?

 Understanding consumer behaviour wil

l help you become better marketers as i
t is the foundation for
 Segmenting markets
 Positioning products
 Developing an appropriate marketing
 continued

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Why study consumer behaviour?

 Knowledge of consumer behaviour is e

ssential for non-profit organizations
– Non profits have different customers to pl
ease
– Donors, users, volunteers, general public,
government
» continued

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Why study consumer behaviour?
 Publicservice initiatives have to be bas
ed on an understanding of consumer be
haviour
– Canada’s largest advertiser is the federal
government
– Most government initiatives (e.g., antism
oking campaigns) need a knowledge of c
onsumer behaviour to succeed
» continued

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Why study consumer behaviour?

 Better
understanding of our own co
nsumption behaviour

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