CH 1
CH 1
Introduction to Consumer
Behaviour
Schiffman/Kanuk
Introduction
Behavior or Attitude
1-2
Consumer Behaviour
1-4
Development of the Marketing
Concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept
1-5
The Production Concept
Assumes that consumers are interested
primarily in product availability at low
prices
Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion
1-6
The Product Concept
1-11
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
1-12
Successful Positioning
1-13
The Marketing Mix
Product
Price
Place
Promotion
1-14
Digital Revolution in the
Marketplace
Allows customization of products,
services, and promotional messages
like never before
Enhances relationships with customers
more effectively and efficiently
Has increased the power of customers
and given them access to more
information
1-15
Digital Revolution in the
Marketplace - Continued
The exchange between consumers
and marketers has become more
interactive
May affect the way marketing is
done
1-16
Changes brought on by the
digital 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
consumers to company’s website (and vice-
a-versa)
» Continued
1-17
Changes brought on by the digital
revolution - continued
Revamping distribution systems
– Direct distribution becomes more of an option
Pricingmethods may need to be re-
evaluated
– Comparison shopping made easier
Consumer research methods may
change
– How do you measure web-based promotions?
1-18
Why study consumer behaviour?
1-19
Why study consumer behaviour?
1-20
Why study consumer behaviour?
Publicservice initiatives have to be
based on an understanding of
consumer behaviour
– Canada’s largest advertiser is the federal
government
– Most government initiatives (e.g.,
antismoking campaigns) need a
knowledge of consumer behaviour to
succeed
» continued
1-21
Why study consumer behaviour?
Better
understanding of our own
consumption behaviour
1-22
1-23