WELCOME TO A PRESENTATION ON…

1. C U S T O M E R B HAVIOUR WELCOME TO A PRESENTATION ON… Facilitator: Mike du Toit !

2. CUSTOMER BEHAVIOUR Topic 1: Introduction to customer behaviour Topic 2: Determinants of customer behaviour Topic 3: The customer’s mind set Topic 4: Customer decision-making Topic 5: Customer focused marketing

3. INTRODUCTION Definition: Study of individuals, groups or organisations and the processes they use to select, secure, use and dispose of products, services, experiences, or ideas to satisfy needs

4. INTRODUCTION • Types of customers: • Households • Business markets • Roles of customers: • Buyers • Users • Payers

5. IMPORTANCE OF CUSTOMER BEHAVIOUR Customer satisfaction The marketing concept Customer focus Customer retention Focus on needs Serve needs of society Long-term survival

6. MARKETING STRATEGY & CUSTOMER BEHAVIOUR Outcomes Individual Organisation Society Customer decision Marketing strategy Market segmentation Market analysis Organisation Competitors Environment Customers

7. Creating value for the customer • Three meanings of value: • Pricing value (remember the benefits pg 29) • Customer value • Strategic value • How to measure value? • Determine expected value • Prepare strategy • Measure how well value was delivered • Investigate and adapt

8. Market segmentation Bases of market segmentation: Geographic Demographic Psychographic Behaviouristic Needs/benefit Market value

9. OVERALL MODEL OF CUSTOMER BEHAVIOUR External influences Culture Subculture Reference group Social class Family Marketing activities Market characteristics Climate Economy Government Technology Decision-making Individual Organisational Family Customer Internal influences Perception Learning Motivation Lifestyle Attitudes Personality Self-concept Personal characteristics Race Gender Age

10. CULTURE AND SUBCULTURE Culture and society Institutions that transmit the elements of culture • Family • Education institutions • Houses of worship • Mass media

11. REFERENCE GROUPS Types of reference groups • Formal and informal • Primary and secondary • Membership and non-membership • Aspirational reference group • Dissociative reference group • Automatic groups • Negative groups

12. PERSONAL CHARACTERISTICS • Race • Gender • Age Pay special attention to the changing roles of women!

13. THE CUSTOMER’S MINDSET Customer perception and learning Perceptual process Elements of learning

14. LEARNING • Theories of learning • Cognitive learning • Classical conditioning • Instrumental conditioning

15. MOTIVATION Pay special attention to Maslow & Mcguire

16. CUSTOMER ATTITUDES • Sources of influence on attitude formation • Direct experience • Influence of family and friends • Exposure to mass media

17. COMPONENTS OF ATTITUDES • Cognitive component Consists of customer’s beliefs about object • Also customer’s knowledge about object • There are two types of beliefs: • - Informational beliefs – associated with product attributes • - Evaluative beliefs – associated with product benefits • Affective component Involves our feelings and emotions toward object May also be result of several evaluations of performance Products are evaluated in context of specific situation

18. COMPONENTS OF ATTITUDES…cont. • Behavioural component This component represents outcome of cognitive and affective components Does customer buy or not? • Component consistency Three components tend to be consistent Change in one components affects others

19. CUSTOMER ATTITUDES Attitude change • Changing the affective component • Classical conditioning • Positive effect • Mere exposure • Changing the behavioural component • Changing the cognitive component • Changing beliefs • Shifting performance • Adding beliefs • Changing the ideal

20. CUSTOMER ATTITUDES Attitude change Cont. • Changing the product • Packaging • Change of services • Change of properties • Attitude of sales person • Perceptual change • New information • Promotion • Strength of the attitude • Market segmentation

21. CHARACTERISTICS OF PERSONALITY • Personality reflects individual differences • Personality is consistent and enduring • Personality is partially created and influenced by the environment • Personality can change

22. CUSTOMER DECISION-MAKING Stages in the decision-making process Problem recognition Search for information Evaluation of alternatives Buying Post-buying evaluation

23. FAMILY DECISION-MAKING • Influencer • Gatekeeper • Deciders • Buyers • Preparers • Users • Maintainers • Disposers

24. THE FAMILY LIFE-CYCLE Stage Bachelorhood Honeymooners Parenthood Post-parenthood Dissolution

25. MODIFIED TO THE FAMILY LIFE-CYCLE • At-home singles • Starting-out singles • Mature singles • Young couples • New parents • Mature parents • Single parents • Golden nests • Left alones

26. CUSTOMER-FOCUSED MARKETING Stages of brand loyalty • Brand awareness • Brand trial • Brand preference • Brand habit • Brand loyalty

27. Relationship based buying • Steps for after marketing: • Maintain customer info • Blueprint the customer contact point • Analyse info feedback • Conduct satisfaction surveys • Manage communication programme • Host special events for customers • Audit and reclaim lost customers

28. THE END Questions?