Consumer Behaviour
Started 1960s Borrowed heavily from the following disciplines:
Psychology Sociology Social Psychology Anthropology Economics
Copyright 1999 by Thomas Southwestern. All rights reserved.
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The Customer: Key to Market Success
The Importance of Understanding Customer Behaviour
A Key to Success
Satisfy customers Adopt the marketing concept Gain legitimacy in society
Copyright 1999 by Thomas Southwestern. All rights reserved.
Satisfying the Customer
Adopt a Customer Culture
Incorporate customer satisfaction as an integral part of the corporate mission and utilize an understanding of customer behavior as input to all marketing plans and decisions
Copyright 1999 by Thomas Southwestern. All rights reserved.
Adopting the Marketing Concept
Market Concept Principle Focus
vs.
Selling Concept Principle Focus
Making what the customer wants or needs
Finding a buyer for the product Selling the customer into exchanging money for the product
Copyright 1999 by Thomas Southwestern. All rights reserved.
Gaining Legitimacy in Society
A society supports businesses because they serve its members by catering to their needs and wants
Focus on the customer Pay attention to customer behavior Respond to customer needs, desires and preferences
Copyright 1999 by Thomas Southwestern. All rights reserved.
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Customer Orientation
a thorough understanding of customers needs and wants, the competitive environment, and the nature of the market used to formulate all the firms plans and actions to create satisfied customers
Competitive Advantages Through Customer Satisfaction
Customer Satisfaction
Repeat Buying
Higher Prices
Loyalty in Crisis
Word of Mouth
One-Stop shopping
New Product Innovation
Profits
Corporate Performance
Growth
Copyright 1999 by Thomas Southwestern. All rights reserved.
Creates Pride in Employees
Customer orientation has an effect on employee morale in the company
Satisfied employees create satisfied customers Happy customers lead to employee happiness
Copyright 1999 by Thomas Southwestern. All rights reserved.
Customers: Types, Roles, and Behaviors
Households (consumers)
Business
Mental Activities Physical Activities
Payers
Users
Buyers
Customer Types
Copyright 1999 by Thomas Southwestern. All rights reserved.
Roles
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Customer Behavior Domain
HOUSEHOLD
BUSINESS Business Product
PRODUCTS Consumer Products
SERVICES
Consumer Services
Business Services
Copyright 1999 by Thomas Southwestern. All rights reserved.
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Three Roles of the Customer
User Payer Buyer
Copyright 1999 by Thomas Southwestern. All rights reserved.
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Reasons for Role Specialization
Lack of expertise Lack of time Lack of buying power Lack of access Lack of affordability When the product or service is subsidized by payers When the product or service is free
Copyright 1999 by Thomas Southwestern. All rights reserved.
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Customer Needs and Wants
Need arousal is driven by discomfort in a persons physical and psychological conditions Wants occur when and because humans desire to take their physical and psychological conditions beyond the state of minimal comfort
Copyright 1999 by Thomas Southwestern. All rights reserved.
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Determinants of Needs and Wants
Customer Needs
Customer Wants
Individual Traits
Individual Context
Genetics Biogenics Psychogenics
Personal Financial Worth Institutions Culture
Market Traits
Market Context
Climate Topography Ecology
Economy Technology Public Policy
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Copyright 1999 by Thomas Southwestern. All rights reserved.
Market Value
Market value is the potential of a product or service to satisfy customers needs and wants Value is created only if the product or service has the capability to satisfy a customers needs and wants
Copyright 1999 by Thomas Southwestern. All rights reserved.
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Classification of Market Values
Universal Values Personal Values
Copyright 1999 by Thomas Southwestern. All rights reserved.
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Matrix of Values and Customer Roles
CUSTOMER ROLES User UNIVERSAL VALUES PERSONAL VALUES Group specific Individual-specific Performance Value Payer Price Value Buyer Service Value
Social value Emotional value
Credit value Financing value
Convenience value Personalization value
Copyright 1999 by Thomas Southwestern. All rights reserved.
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Characteristics of Customer Value
Values are instrumental Values are dynamic Values are hierarchical Diversity of customer values increases with hierarchy Values are synergistic Values are role-specific Values vary across customers
Copyright 1999 by Thomas Southwestern. All rights reserved.
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