1. Chapter 1 Introduction: Diversity in the Marketplace

2. Consumer Research Methodology used to study consumer behavior.

3. Market Segmentation The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.

4. 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. (Also referred to as the Ultimate Consumer or End User.)

5. 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.

6. Consumer Behavior as an Academic Discipline and an Applied Science Factors that contributed to the growing interest in consumer behavior: –accelerated rate of new product development –consumer movement –public policy concerns –environmental concerns –the opening of national markets throughout the world

7. Consumer Behavior The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products, services, and ideas.

8. The Marketing Concept To be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition.

9. 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.

10. The Scope of Consumer Behavior How do individuals make decisions to spend their resources (time, money, effort). –Includes: what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it. How do individuals dispose of their once-new purchases. –Includes: do they store it, throw it or give it away, sell it, rent it, or lend it out?

11. Consumer Behavior’s Interdisciplinary Roots Consumer Behavior borrows from psychology, sociology, social psychology, anthropology. All factors combine to form a comprehensive model that reflects both the cognitive and emotional aspects of consumer decision making.

12. A Simplified Model of Consumer Decision Making The decision-making process can be viewed as three interlocking stages: –The input stage: marketing efforts sociological influences –The process stage: psychological factors –The output stage: purchase behavior postpurchase evaluation

13. Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Output Process Input External Influence Consumer Decision Making Postdecision Behavior Postpurchase Evaluation Purchase 1. Trial 2. Repeat purchase Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Experience Figure 1-1 A Simple Model of Consumer Decision Making

14. Ethics in Marketing Unethical practices occur at every level of the marketing mix: –in the design of the products, in packaging, in pricing, in advertising, and in distribution There are two different types of theories: –teleological theories and deontological theories

15. Teleology An ethical philosophy which considers the moral worth of a behavior as determined by its consequences.

16. Utilitarianism A teleological theory summarized best by the idea of “the greatest good for the greatest number.”

17. Deontology An ethical philosophy that places greater weight on personal and social values than on economic values.

18. Ethics and Social Responsibility Corporate Codes of Ethics Trade Associations Codes of Ethics Mission-Based Social Goals

19. The Societal Marketing Concept All companies prosper when society prospers. Companies as well as individuals, would be better off it social responsibility was an integral component of every marketing decision. Requires all marketers adhere to principles of social responsibility in marketing of their goods and services.

20. 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.