Textbook Notes (362,734)
Canada (158,032)
Marketing (881)
MKT 400 (66)
Chapter 1

Chapter 1 An Introduction to Customer Behaviour.docx

3 Pages
Unlock Document

Ryerson University
MKT 400
Melanie Dempsey

MKT400 Understanding Customers and the New Media CHAPTER 1 An Introduction to Customer Behaviour INTRODUCTION WHAT IS CUSTOMER BEHAVIOUR  Customer behaviour: study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences, to satisfy needs and desires o Ongoing process emphasizing on the interaction between consumers and producers  Exchange: two or more organizations or people give and receive something of value CONSUMERS’ IMPACT ON MARKETING STRATEGY  Basic marketing concept states that firms exist to satisfy consumers’ needs  Marketing segmentation: identifies groups of consumers who are similar to one another in one or more ways and then devises marketing strategies that appeal to one or more groups  Demographics: statistics that measure observable aspects of a population o Age – people who belong to the same age group tend to share a set of values and common cultural experiences that they carry throughout life o Gender – products are targeted either at men or women o Family structure – family and marital status has a big effect on a consumer’s spending priorities o Social class and income – people grouped within the same social class are approximately equal in terms of their incomes and social standings in the community  It determines which groups have the greatest buying power and market potential o Ethnicity – diverse in languages and in cultural consumption that stems from different ethnicities o Geography – climate changes drastically from region to region, which makes segmenting some products by region obvious  Relationship marketing: interaction with customers on a regular basis, giving them reasons to maintain a bond with the company over time  Database marketing: tracking consumers’ buying habits very closely and crafting products and messages tailored precisely to people’s wants and needs based on this information MARKETING’S IMPACT ON CONSUMERS  What we learn about the world is filtered by marketers; we rely on them to sell us products that are safe and that perform as promised, to tell us the truth about what they are selling, and to price and distribute these products fairly  Popular culture: forms of entertainment consumed by the mass market, is both a product of and an inspiration for marketing  Consumer-generated content: people voice opinions about products, brands, and companies on blogs, podcasts, and social networking sites  Web 2.0: rebirth of the Internet as an interactive medium from its original roots as a one-way transmission from producers to consumers THE MEANING OF CONSUMPTION  Fundamental premises of midterm field of consumer behaviour is that people buy products not for what they do but for what they mean o All things being equal, a person will choose the brand that has an image consistent with his or her underlying needs  Types of relationships consumers can have with a product: o Self-concept attachment – the product helps to establish the user’s identity o Nostalgic attachment – the product serves as a link with a past self o Interdependence – the product is a part of the user’s daily routine o Love – the product elicits emotional bonds of warmth, passion, and other strong emotions THE GLOBAL CONSUMER  One by-product of sophisticated marketing strategies is the movement towards a global consumer culture, where people around the world are united by their common devotion to brand-name consumer goods, movie stars, and celebrities  U-commerce: use of ubiquitous networks that will slowly but surely become part of us, whether in the form of wearable computers or customized advertisements beamed to us on our cell phones MKT400 Understanding Customers and the New Media  RFID tag: computer chip and a tiny antenna that lets the chip communicate with a network  Virtual brand communities are forming where the cyberspace explosion has created a revolution in customer-to-customer activity (C2C commerce) MARKETING ETHICS AND PUBLIC POLICY  Conf
More Less

Related notes for MKT 400

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.