Topic outline
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The analysis of consumers is key in developing a marketing strategy, primarily because consumers' reaction to a product or service determines the success or failure of that strategy. This process includes market analysis, market segmentation, marketing strategy, the consumer decision process, and outcomes.
The market analysis thoroughly examines consumers, competitors, the company, and the relevant environmental conditions. From this analysis, we can reach market segmentation decisions.
After one or more target market segments are selected, a marketing strategy is developed and implemented. Next comes the consumer decision process, which includes problem recognition, information search, alternative evaluation, purchase, use, and evaluation. Finally, the outcome of the consumer decision impacts the firm (such as with product position, sales, and satisfied customers), the consumer (such as with satisfied needs or injurious consumption), and society (such as the economy, environment, and social welfare). This unit introduces the study of consumer behavior and its importance in developing a marketing strategy.
Completing this unit should take you approximately 3 hours.
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A good basic knowledge of consumer behavior in its current state of development should provide managers with the right questions to ask concerning a proposed marketing activity. Some of these questions are:
- What types of consumers are likely to buy our product?
- How are they different from the consumers who won't buy our product?
- How can we get our message to the consumers who are most likely to respond?
- What criteria do consumers use when deciding which products/brands to purchase?
- What strategies should be used to encourage consumers to choose our brand over the competition?
- What's the highest price a consumer will pay for our product and still feel they're getting a good deal?
- What can we do to satisfy our current customers and maintain their loyalty?
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Students mustMark as doneWe study consumer behavior because marketers need to know who is buying their product or service to satisfy their needs. Watch this video to learn about the external and internal factors influencing consumer behavior and the psychological and behavioral aspects of a consumer's decision-making process. As each factor is discussed, think about how the factor influences you.
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Students mustMark as done
Read this article to learn why it is important to learn about consumer behavior. New consumers are born every minute, but marketers start marketing to them through their parents before they are even born. They understand that a brand choice can be a lifetime decision.
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Students mustMark as done
The relationship between the buyer (customer) and the seller forms through market exchange. During the exchange process, each party assesses the trade-offs they have to make to meet their needs and wants. Read this chapter about the exchange process between the buyer and the seller of products and services. Review The Exchange Process chart and note that the exchange presents value for the buyer and the seller. Additionally, both parties have needs, wants, and trade-offs.
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At the heart of the consumer behavior model presented are self-concept and lifestyle. This model demonstrates that how we think and feel about ourselves and how we live our lives determines most of our needs and desires, which drive our purchase and consumption decisions. Our culture, with its values, norms, and traditions, is a major influence on our lifestyle. Additionally, social classes and subcultures within any culture create differing self-concepts and lifestyles.
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Students mustMark as done
Read this chapter on how marketers link consumers' self-concept to their buying behavior. Although self-concept is the fundamental cognitive part of the self, there are several variations of our self-concept, including self-complexity, self-esteem, and the extended self. Marketers need to know about all of these self-ideals when creating marketing plans to target consumers.
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The four major stages of information processing are exposure, attention, interpretation, and memory. Perception, a combination of the first three stages, consists of those activities by which an individual acquires and assigns meaning to stimuli. More specifically, it is the process through which those stimuli are chosen, organized, and interpreted.
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Students mustMark as done
Read this chapter on how consumers interpret their environment and make sense of it. We receive various stimuli through our five senses for our brains to interpret. Perception is the process of selecting, organizing, and interpreting information. The chapter discusses how marketers focus on the various senses to develop a brand's positioning strategy.
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This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.
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Watch this as you work through the unit and prepare to take the final exam.
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You can also download the presentation slides so you can make notes.
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We also recommend that you review this Study Guide before taking the Unit 1 Assessment.
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Students mustReceive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.
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