Consumer Behavior and Marketing Strategy
How is the field of consumer behavior defined?
It is the study of individuals, groups, or organizations and the processes they use to select,
secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society.
What are the four major uses or applications of an understanding of consumer behavior?
(1) Developing marketing strategy, (2) Developing regulatory policy for marketing actions, (3)
Social marketing, and (4) Understanding how societies function.
What is social marketing?
It is the applications of marketing strategies and tactics to alter or create behaviors that have a
positive effect on the targeted individual and/or society as a whole.
What is customer value and why is it important to marketers?
It is the difference between all of the benefits derived from a total product and all the costs of
acquiring those benefits. It is important because consumers choose those options that they
believe will provide them the most value.
What is required to provide superior customer value?
The organization must do a better job of anticipating and reacting to customer needs than the
competition. This requires knowledge of consumer behavior as well as technical and marketing
What is a total product?
It is all aspects of the product including its price, package, distribution system, image, and so
Describe the process of market segmentation.
Market Segmentation has four steps: (1) identify product-related need sets, (2) group consumers
with similar need sets, (3) describe each group (in terms of demographics, media preferences,
and lifestyles), and (4) select attractive segments to serve.
What is marketing strategy?
Marketing strategy is the answer to the question: "How will we provide superior customer value to
our target market at a profit?" It is deciding how to meet the needs of a defined target segment.
It involves structuring the marketing mix.
What is a marketing mix?
The marketing mix is the product, price, communications, distribution, and services provided to
the target market. An important part of the concept is that these elements are deliberately
blended to achieve a defined impact on the target market.