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Customer behavior

Customer behavior. Quiz. List the 4 benefits that a consumer could get when making a purchase (4+1) List the 4 types of costs that a consumer could have to carry to when making a purchase (4+1). Pricing Value. Benefits: Functional benefits Social benefits Personal benefits

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Customer behavior

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  1. Customer behavior Marketing 1B Customer behavior

  2. Quiz • List the 4 benefits that a consumer could get when making a purchase (4+1) • List the 4 types of costs that a consumer could have to carry to when making a purchase (4+1) Marketing 1B Customer behavior

  3. Pricing Value • Benefits: • Functional benefits • Social benefits • Personal benefits • Experiential benefits Marketing 1B Customer behavior

  4. Pricing Value • Costs: • Monetary costs • Temporal costs • Psychological costs • Behavioral costs Marketing 1B Customer behavior

  5. Quiz results Marketing 1B Customer behavior

  6. Class results Marketing 1B Customer behavior

  7. Quiz • Name the 4 “channels” through which values, beliefs and customs can be acquired. • Explain the process under each of them briefly • 4+4+2 bonus points Marketing 1B Customer behavior

  8. Learning and Culture • Beliefs, values and customs are acquired from an early age through: • Playing • Schooling • Sport • Family / home life • 3 distinct forms of learning • Formal learning – Parents teaching a child how to behave • Informal learning – child imitating the behavior of others • Technical learning – Teachers / Lecturers instruct Marketing 1B Customer behavior

  9. Recap • External influences - Cptr. 4/5 • Culture / Subculture • Reference groups • Social class • Family • Market characteristics – Chpt. 3 • Climate • Economy • Government • Technology Customer • Internal influences – Chpt 7,8,9,10 • Perception • Learning • Motivation • Lifestyle • Attitudes • Personality • Self concept • Personal characteristics – Chpt 6 • Race • Gender • Age Marketing 1B Customer behavior

  10. Chptr 3 – Market characteristics • Characteristics of SAF population • Individuals • Population, Age distribution, Geographic distribution, education levels, Labor market, unemployment, formal/informal sectors, Migrant workers • Households • Housing, Water, energy, Telephones, Sanitation, Healthcare, Household income • Other factors • Climate, Economic Conditions, Government, Technology Marketing 1B Customer behavior

  11. Chptr 4 – Culture / Sub culture • Nature of culture • Sub Culture • Needs • Learning • En / Acculturation • Language, Symbols, rituals • Society • Dynamic nature of culture • Measurement of culture • Content • Fieldwork • Values • Value Measurement • SAF Core Values • Sociomonitor Marketing 1B Customer behavior

  12. Nature of culture • Culture – sum total of beliefs, values, customs that serve to direct the customer behavior of members of a particular society • Beliefs – Very large number of verbal and mental statements that reflect a person’s particular knowledge and assessment of something • Values – deep seated motivations instilled from culture • Few in number • Guide for behavior • Difficult to change • Not linked to specific objects or situations • Widely accepted by members of society • Customs – modes of behavior that is culturally approved or accepted ways of behaving in specific situations Marketing 1B Customer behavior

  13. Nature of culture • Sub culture – Distinct cultural group that exists as an identifiable segment within a larger group – Language, Religion • Needs & Culture – 2 way process of creation • Learning – Formal, Informal , Technical • En / Acculturation • Language – Most common expression of specific culture Marketing 1B Customer behavior

  14. Nature of Culture • Symbols – Anything that stands for something else – Images and Brands!! • Rituals – Symbolic activity that consists of a series of steps occurring in fixed sequence and repeated over time. • Society and social institution play a very important role in Culture • Culture is a dynamic process that is constantly changing. Marketing 1B Customer behavior

  15. Chptr 5 – Reference group / Social class • Reference groups • Types • Marketers • Influence • Advertising • Social Class – Marketing implications • Trends in customer behavior – Tech, Socio-cultural, Gov. Marketing 1B Customer behavior

  16. Types of reference groups • Formal groups – Clearly defined structure • Informal groups – No formal rules • Primary groups – face to face interaction • Secondary reference groups – no face to face interaction • Membership groups – part of a group and model behavior • Non membership groups – Not part of but do model behavior • Aspirational groups – Rich or famous? • Dissociative groups – Avoid and reject so base behavior on opposite Marketing 1B Customer behavior

  17. Reference group influence • Group influence – strong when product or brand is visible to group • Reference group influence – higher when necessity of item is lowest • Group norms – more commitment a person feels to group the higher the level of conformity • Group norms – Relevance of particular activity will determine level of conformance Marketing 1B Customer behavior

  18. Social class • Definition - Social class refers to the hierarchical distinctions between individuals or groups in societies or cultures • Social class is determined: • Self attribution • Repuational approach • Objective measures - Income Marketing 1B Customer behavior

  19. Characteristics of social classes in USA Marketing 1B Customer behavior

  20. Chapter 6 Personal characteristics Marketing 1B Customer behavior

  21. Personal characteristics • Gender • Role of woman • Role of Men • Age • Definition • Why is it important • Subcultures • Race • Race & Products • Marketing communications • LSM Marketing 1B Customer behavior

  22. Race / Ethnicity • Race – Genetic heritage group a person is born into • Ethnicity – patterns of association and identification with common national or cultural origins of a subgroup. • Self perpetuating population • Shared cultural values • Common language • Members define themselves as part of a subgroup • Is segmentation based on Race/Ethnic lines appropriate? Marketing 1B Customer behavior

  23. Race / ethnic segmentation Marketing 1B Customer behavior

  24. Yes No Yes vs. No Our purpose as marketers are to satisfy customers needs…. Marketing 1B Customer behavior

  25. Kwanzaa • Kwanzaa is an African-American holiday about the festival of the first harvest of the crops. It begins on December 26, and lasts for seven days. The name Kwanzaa, sometimes spelled Kwanza, comes from a phrase which means "first fruits" in Swahili, an East African language. • Kwanzaa was created by Dr. Maulana Karenga in 1966. It is celebrated through singing, speaking, dancing and reciting traditional. Stories. Kwanzaa is built on seven principles that are commonly known as "Nguzo Saba". These principles are: • umoja - unity • ujima - collective work and responsibility • nia - purpose • imani - faith • kujichagulia - self-determination • ujamaa - cooperative economics • kuumba - creativity Marketing 1B Customer behavior

  26. Marketing 1B Customer behavior

  27. Gender Marketing 1B Customer behavior

  28. Changing role of woman • Larger part of population than men • More woman in Med school than men • Laws such as BBBEE act drive woman into more senior / exco roles. Marketing 1B Customer behavior

  29. Changing role of men • Increase role of woman in workplace has forced men to adopt. • “Metro sexual” male category Marketing 1B Customer behavior

  30. Gay market • DINKY - Double income , no kids • Brand conscious and loyal • Well traveled and read Marketing 1B Customer behavior

  31. Marketing 1B Customer behavior

  32. Age • Chronological / Biological and Psychological age • Why age is important: • Needs and wants vary • Lifetime value of customers • Shifts in demands and values Marketing 1B Customer behavior

  33. American demographics Marketing 1B Customer behavior

  34. Children (Millennials) • Big spenders • Sweets, Clothes, Entertainment, Toys • Susceptible to adverts • Influence parental shopping patterns • Concerns about children’s ability to “defend” themselves against advertising campaigns Marketing 1B Customer behavior

  35. Teens - Generation Y • Born in 80’s • Global communication (Internet users), Focus on materialism • Very sophisticated and seasoned customers • Sophisticated decision making skills as they shop from a much earlier age and mostly unaccompanied • Brand loyalty once established tend to last well into adulthood • Selection of images, symbols, issues, and media is critical for the marketers • Ethnic and racial groups are mixed and also represented as such in ads Marketing 1B Customer behavior

  36. Teens - Generation Y • Due to high level of computer and internet literacy: • Preferences and demands are transient • Demand customization • Due to wide availability they change minds often. • Prefer self trial than marketing promises. • Not dazzled by technology • Marketing rules for Gen Y • Don’t talk down • Don’t try to be what ur not • Entertain them • Show empathy • Customize and interact • Try and get to know them. Marketing 1B Customer behavior

  37. Teens - Generation Y - SAF • 45% - Nguni languages • 52% female • 65% - Gauteng, KZN, WC , EC • 20% - Have matric • School pupils • Univ. students • Young working adults Marketing 1B Customer behavior

  38. Young Adults – Generation X • Born – mid ’60’s – mid 70’s • Difficult economic times • Disillusioned and less materialistic than previous generations • Reflected in music such as Pearl Jam, Guns n Roses and RHCP • Fashion – Grunge look, Earrings and tattoos • Perception is of a “slack” generation. • Found success and achievement through technology • Tend to leave home later than previous generations Marketing 1B Customer behavior

  39. Young Adults – Generation X • Pre-occupation with shopping and material possessions • Concept of Mall rats is Gen X • Heavy exposure to TV – Media knowledgeable and Customer wise generation • Cynical to “obvious” marketing campaigns but respond to “clever” campaigns • Respond to marketing aimed at them specifically, talking their language and suing their style and images Marketing 1B Customer behavior

  40. Famous Gen X’ers Marketing 1B Customer behavior

  41. Baby boomers • Generation born after WW2 • Boom in the birthrate till mid 1960’s • Characterized by Family and home orientation • High education levels, high income and dual career households • Time pressure was the norm. • TV shaped their lives • Rock and roll – Beatles, The Who, Jim Morrison • Drugs • BB are now the aging generation and have an impact on discretionary spend. Marketing 1B Customer behavior

  42. Famous Baby boomers Marketing 1B Customer behavior

  43. Seniors • Living longer and able to spend longer • Values: • Autonomy • Connectedness • Altruism • Personal growth • Concept of perceived age • Gerentographics • Healthy indulgers – Focus on enjoying life • Healthy hermits – Withdrawn due to life events • Ailing outgoers – Positive despite life events • Frail recluses – Accepted aging and adjusted their life Marketing 1B Customer behavior

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