Week 6

Consumer buying behavior refers to the buying behavior of final consumers – individuals &
households who buy goods and services for personal consumption
Five Premises of Consumer Behavior Consumer behavior is purposeful, The consumer has free
choice, this behavior is a process, can be influenced, There is a need for consumer education
Personal Characteristics Affecting Consumer Behavior:
Culture-culture determinant of a person’s wants and behavior, subculture are groups with value
systems based on common life experiences and situations, social class share similar values,
interests, and behaviors,
social-family, roles&status, consumer groups- Membership groups, Reference groups, Aspirational
groups, Opinion leaders;
personal-age, lifestyle, occupation;
psychological-motivation, earning, beliefs.
Maslow’s Hierarchy of Needs: Physiological Needs(hunger, thirst),Safety(security, protection),
Social(sense of belonging, love), Esteem(self-esteem), Self Actualization
Perception: Selective Attention-Consumers are bombarded with information and will screen out
stimuli, Selective Distortion-Messages to do not always come across in the same way the sender
wanted, Selective Retention-People will forget much that they learn but will try to retain information
that supports their attitudes and beliefs
Learning is changes in behavior of an individual’s from experience. A belief is a description that a
person has about something. An attitude describes a person’s evaluations, feelings, and tendencies
toward an object or an idea
Buyer Decision Process :
Need Recognition potential buyer must first recognize a problem or need. Information Search
Personal Sources, Commercial Sources, Public Sources. Evaluation of Alternatives Customers
have attributes and form purchase intentions. Purchase Decision. Post Purchase Behavior

Week 7
A market is all actual and potential buyers of a product or service
Stages of Marketing: Mass marketing, Product-variety marketing, target marketing, micromarketing,
Customized marketing
[Target Marketing: Market Segmentation, Market Targeting, Market Positioning;
Market Segmentation: Geographic Nations, States, Regions, Counties, Cities. Demographic
Age&Life-Cycle Stage, gender&income. Psychographic social class, lifestyle, and personality
characteristics. Behavioral Buyers are divided into groups based on their knowledge, attitude, and
use to a product;
Market Targeting: Evaluating Market Segments Size and Growth, Structural Attractiveness,
Company Objectives and Resources Selecting Market Segments Differentiated, undifferen.,
Concentrated Choosing a Market-Coverage Strategy.
Positioning Strategy Identify Competitive Advantages, Select Competitive Advantages, Effectively
Communicate Chosen Position.]
Positioning Errors :Under positioning failing ever to position the company at all. Confused
Positioning leaving buyers with a confused image of a company, Over-Positioning giving buyers too
narrow a picture of the company

Week 8
Two way effect Employee satisfaction creates customer satisfaction. Customer dissatisfaction
reduces employee satisfaction
Internal Marketing Process: 1.Establishment of service culture 2.Development of marketing
approach to hr management 3.Dissemination of marketing information to employees
4.Implementation of reward system
A service culture is a culture that supports customer service through policies, procedures, reward
systems, and actions
An organizational culture is pattern of values and beliefs that gives members of organization rules
for behavior in the organization
Weak Culture Few or no common values, Employees unsure of their roles, Lack of empowerment
affects guest service
Cross-training is training employees to do 2 or more jobs in the organization.it Shows the
importance of each department and how they work together to provide customer service
Emotional labor is the necessary involvement of the service provider’s emotions in the delivery of
the service
Reward and Recognition System Can be based on:meeting cost objectives, achieving sales
objectives, customer satisfaction

Week 9
product is anything that can be offered to a market for attention that can satisfy a want or need
Product Levels:
Core Product What the buyer is really buying;
Facilitating Products Goods or services that have to be present for the guest to use the core
product;
Supporting Products Extra products offered to add value to the core product and help to
differentiate it from the competition
augmented product includes customer interaction with the service organization, customer
participation, and customers’ interaction with each other
The Physical Environment Can be customer’s reason to choose or not choose, to do business with
an establishment
Customer Interaction with the Service Delivery System:
Joining stage is when the customer makes the first contact ;
Consumption phase takes place when the service is consumed ;
Detachment phase is when the customer ends using a product and departs;
Brand Decisions brand is a name, term, sign, symbol, design, or a combination of these elements
that is intended to identify the goods or services of a seller and differentiate them from competitors
Brand as a product Brands are company’s most valuable assets. It represents what the company is.
It implies trust , consistency, and a defined set of expectations.The strongest brands have place in
the customer’s mind.
New Product Development Process:
Idea generation Internal Sources Customers Competitors Distributors and Suppliers Other Sources
Idea screening The purpose of screening is to spot good ideas and drop poors quickly
Concept development and testing develop an idea into a product concepts, show how attractive
each is to customers.Concept testing occurs within a group of target consumers
Marketing strategy development Includes information about target market and product positioning
Business analysis Business analysis involves a review of the sales, costs, and profit projections to
determine whether they satisfy the company’s objectives
Product development Have the key features described in the product concept statement, as
perceived by the customer
Test marketing The product and marketing program are introduced into market settings
Commercialisation In launching a new product, a company must make four decisions: how?when?
where?
Acquisition A method of development that decreases the risk for large companies that have the
assets to purchase
Product Life-Cycle Strategies:
Product development begins when the company finds and develops a new product idea
Introduction is a period of slow sales growth as the product is being introduced into the market
Growth is a period of rapid market acceptance and increasing profits
Maturity is a period of slowdown in sales growth
Decline is the period when sales fall off quickly and profits drop
The “Product” element answers the question “What does the market or target audience
need?”, the “Price” element helps to determine the cost of selling a product and assess the
level of profitability of sales, the “Place of sale” element helps to build the right distribution
model (or delivery of goods to the end consumer) , and the "Promotion" element answers
the question "How will information about the company's product be distributed on the
market?" "People" means people who can influence the perception of your product in the
eyes of the target market. the process of interaction between a consumer and a company.
physical environment describes what surrounds the consumer at the time of purchasing the
service.

Maslow’s Hierarchy of Needs: