Introduction: The Impact of The Digital Revolution On Consumer Behavior

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
power patterns and
• Access to preferences
information • Evolution to other
• More products and – Internet
services
– PDA  BB
• Interactive and
– BB  Smartphone
instant exchanges
1-5
1-6
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.
1-7
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.
1-8
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.
1-9
Development of the Marketing
Concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept
1-10
The Production Concept
• Assumes that consumers are interested

primarily in product availability at low
prices
• Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion
1-11
The Product Concept
• Assumes that consumers will buy the

product that offers them the highest quality,
the best performance, and the most features
– Quality improvement
– Addition of features
• Tendency toward Marketing Myopia
1-12
The Selling Concept
• Assumes that consumers are unlikely to buy

a product unless they are aggressively
persuaded to do so
– Sell, sell, sell
• Lack of concern for customer needs and
satisfaction
1-13
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
– Profits through customer satisfaction
1-14
Business Leaders Who Understood
Consumer Behavior
• Alfred Sloan, General Motors

• Colonel Sanders, KFC
• Ray Kroc, McDonald’s
1-15
1-16
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.
1-17
Implementing the Marketing
Concept
• Consumer Research
• Segmentation
• Targeting
• Positioning
1-18
Consumer Research
• The process and tools used to study
consumer behavior.
• Two perspectives:
– Positivist approach
– Interpretivist approach
1-19
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
1-20
Successful Positioning
• Communicating the • Communicating a
benefits of the Unique Selling
product, rather than Proposition for the
its features product
1-21
The Marketing Mix
• Product
• Price
• Place
• Promotion
1-22
Successful Relationships
Customer Customer
Value Retention
Customer
Satisfaction
1-23
Types of Customers
• Loyalists • Terrorists
• Apostles • Hostages
• Defectors • Mercenaries
1-24
Customer Profitability-Focused
Marketing
Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead
1-25
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.
1-26
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.
1-27
External Influence
Firm’s Marketing Efforts Sociocultural Environment
1. Product 1. Family
2. Informal sources
Input 2. Promotion 3. Other noncommercial sources
3. Price 4. Social class
4. Channels of distribution 5. Subculture and culture
Consumer Decision Making
Psychological Field
Need 1. Motivation
Recognition 2. Perception
3. Learning
Prepurchase 4. Personality
Process
Search 5. Attitudes
Evaluation of
Alternatives Experience
Purchase Figure 1-1:

Post-Decision
Behavior
1. Trial
2. Repeat purchase
A Model of
Output
Consumer
Postpurchase Evaluation
Decision
1-28
Making

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Consumer Behavior,

SCHIFFMAN & KANUK

Introduction: The Impact of

A business, government agency, or

• Assumes that consumers are interested

• Assumes that consumers will buy the

• Assumes that consumers are unlikely to buy

• Alfred Sloan, General Motors

A revision of the traditional marketing

Purchase Figure 1-1:

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