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Summary - Consumer behaviour
1.1 DEVELOPMENT OF THE MARKETING CONCEPT AND THE DISCIPLINE OF CONSUMER BEHAVIOUR
Consumer behavior is defined as:The behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.
The term consumer behavior describes two different kinds of consuming entities:
- Personal consumer
- Organisational consumer
Personal consumer:Buys goods and services for his or her own use, for the use of the household, or as a gift for a friend.
Organisational consumer:Includes companies and charities, government agencies, and institutions, all of which must buy products, equipment and services in order to run their organisations.
Production concept:Assumes that consumers are mostly interested in product availability at low prices; its implicit marketing objectives are cheap, efficient production and intensive distribution.
Product concept:assumes that consumers will buy the product that offers them the highest quality, the best performance and the most features.
Selling concept:a marketer's primary focus is selling the product(s) that it has unilaterally decided to produce
1.1.1 The marketing concept
The marketing concept:Instead of trying to persuade customers to buy what the firm had already produced, marketing-oriented firms found that it was a lot easier to produce only products they had first confirmed, through research, that consumers wanted. Consumer needs and wants became the firm’s primary focus
What is the key assumption underlying the marketing concept?to be successful a company must determine the needs and wants of specifi c target markets and deliver the desired satisfactions better than the competition.
The marketing concept focuses on:
- the needs of the buyer
- profits through customer satisfaction
1.1.2 Implementing the marketing concept
The widespread adoption of the marketing concept provided the impetus for the study of consumer behaviour. To identify unsatisfi ed consumer needs, companies had to engage in extensive marketing research. In so doing, they discovered that consumers were highly complex individuals, subject to a variety of psychological and social needs quite apart from their survival needs. They discovered that the needs and priorities of different consumer segments differed dramatically, and in order to design new products and marketing strategies that would fulfi l consumer needs, they had to study consumers and their consumption behaviour in depth. Thus, the marketing concept underscored the importance of consumer research and laid the groundwork for the application of consumer behaviour principles to marketing strategy.
The strategic tool that are used to implement the marketing concept include:
- Marketing mix
1.1.3 The role of consumer research
Consumer research:Describes the process and tools used to study consumer behavior.
What are the two theoretical perspectives that guide the development of consumer research methodology?
- Positivist approach
- interpretivist approach
Positivist approach:tend to be objective and empirical, to seek causes for behavior, and to conduct research studies that can be generalized to larger populations --> Consumer research designed to provide data to be used for strategic managerial decisions falls into this category.
Interpretivist approach:tends to be qualitative and based on small samples. interpretivists seek to fi nd common patterns of operative values, meanings and behaviour across consumption situations
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Technique to identify customers’ means-end chains
Ladder interviews: one to one
Self-knowledge consists of:
- Physical consequences
Product knowledge consists of:
- Functional consequences
Means-end chain consists of:
- Product knowledge
Links consumer knowledge about product attributes with their knowledge about consequences and values
Why is identifying innovators so important?
- Word- of - mouth (WOM)
- Support to others
- Help development (lead users)
Rate of adoption:
The rate of adoption is concerned with how long it takes a new product or service to be adopted by members of a social system, that is, how quickly it takes a new product to be accepted by those who will ultimately adopt it
Basic elements in diffusion process:
- The innovation
- The channels of communication
- The social system
Stages in adoption process
- Adoption (or rejection)
Key characteristics of adoption process:
- Relative advantage (usefulness)
- Complexity (ease of use)
- Trial ability