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Adbms Consumer Bahaviour
Adbms Consumer Bahaviour
Adbms Consumer Bahaviour
Consumer Buying Behaviour refers to the buying behaviour of final consumers (individuals & households) who buy goods and services for personal consumption. We Study consumer behaviour to answer: How do consumers respond to marketing efforts the company might use?
Simplified Model
Marketing Stimuli
Black Box
Motives, perceptions,..
Multiple Stimuli
Marketing Mix Product Price Place Promotion
Black Box
Environmental Events Economic Technology Political Cultural
Consumer Benefits
People do not buy products or services, they buy benefits Hence we make purchases not for the products themselves, but for the benefits of the problems they solve or the opportunities they offer
e.g., always late so a watch helps solve problem; has stopwatch feature so now can keep track of work out times
Consumer Benefits
Consumers seek bundles of types of benefits: Tangible benefits: e.g., a watch keeps good time; has leather band Intangible benefits: e.g., the reliability reputation of the watch manufacturer; the image of the watch wearer
Cultural
Social
Referen Culture ce Subcult Groups ure Family Social Class Roles & Status
E
R
Public sources (rating services like Consumer Reports) Marketerdominated sources (advertising or sales people)
The evoked set: a group of brands from which the buyer can choose
Information Sources
. Internal Sources (Psychological) Experience (first preference) memory storage/retrieval mental processing
Information Sources
Public Sources
government studies product testing magazines media stories
Commercial Sources
advertising (least preference) sales people product pamphlets
Applied Marketing
Picking Physicians
Surveyed consumers said the most frequent sources for selecting a doctor are:
Referral from friend 24%
Referral from another doctor 14% Referral from family member 10% General word of mouth 9%
WSJ, Sect.2, pg.37, 24June 1986.
Information Gaps
Examples of Dells Customer Feedback - Wheres the power button? - Wont work after I washed the keyboard - Wheres the any key? (Click any key to continue) - fax wont work - I refuse to read manual
Applied Marketing
Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994).
s
Evaluation Criteria
Principle: Evaluation criteria change over time and among market segments.
Promotions frame certain product attributes (evaluation criteria) to influence their perceived relative importance
Buying Process
Purchase Decision(s)
Extensive: problem solving occurs when buyers purchase more expensive, less frequently purchased products in an unfamiliar product category requiring information search & evaluation
buyers are confronted with an unfamiliar brand in a familiar product category Routine: response behaviour occurs when buyers purchase low cost, low risk, brand loyal, frequently purchased, low personal identification or relevance, items with which they are familiar.
Low Involvement
Weak attitude
High Involvement
involvement
Social visibility: involvement increases
s with product visibility high involvement
Buying Process
Post-Purchase Behavior
Postpurchase Behavior
Cognitive Dissonance
Did I make a good decision?
Did I buy the right product? Did I get a good value?
Satisfied Customer!
Dissatisfied Customer
Cognitive Dissonance
Cognitive Dissonance
psychological discomfort caused by inconsistencies among a persons beliefs, attitudes, and actions varies in intensity based on importance of issue and degree of inconsistency
:
communicate more negative word of mouth than satisfied customers communicating positive word of mouth FORD says happy customers tell 8 people while unhappy people tell 22 people.
Cognitive Dissonance
Causes: Perceived Risk Performance risk Physical risk (wear-out) High financial commitment High involvement level High social visibility Discrepant information Information Overload insufficient time to evaluate
Social Factors
Lifestyle Identification
Activities Opinions
Interests
Adoption of Innovations
innovators Early Adapters
13.5% 2.5%
Early Majority
34%
Late Majority
Laggards
34% 16%
Relative Advantage
Divisibility
Product Characteristics
Compatibility
Complexit y
Wants
Drives
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Selective Retention
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Selective Perception
Drive
Unconditioned Stimulus
Conditioned Stimuluse
Unconditioned Response
Conditioned Response
Purchase Reason
Purchase Decesion
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Market Demographics
Compared to Consumers, Organizational buyers are:
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1. The use of professional buying specialists following prescribed procedures. 2. Closer buyerseller relationships. 3. Presence of multiple individuals in the buying process (Relevant Others). More apt to Forlani, MKTG MGT, UCDHSC buy on specification than price.
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What is Customer Satisfaction? Customer satisfaction not only involves assuring the quality of the product or service provided, but also meeting the consumer's need as an individual.
Satisfaction reflects the total interactions a customer has with a company and its products It starts the moment a customer thinks of your product
Maximizing the Customer Experience Addresses 3 Questions How well do you meet customer needs?
How smoothly do you solve your customersrp oblems? How quickly do you anticipate what theyll want next?
Customer satisfaction with any product or survey reflects the evaluation of the product, service, company, and environment. Customer satisfaction is critical to any product or service because customer satisfaction is a strong predictor of customer loyalty and product repurchase.
Customer Delight
Adequate Is Not Acceptable Most of what we do is adequate People talk about Customer Delight People talk about bad service People dont talk about adequate service
Customers are lost primarily due to indifference (66%) versus dissatisfaction (14%) WSJ
The Best
Woo the ability to win others over Empathy the ability to understand the mood of others Discipline the ability to work systematically and consistently Command the ability to control a situation through communication Responsibility the ability to own a problem until it is solved
Gallup Survey of Best Customer Service Representatives
Actually
Customer expectations are typically not very high Your job is to surprise them
Cusromer Value
The difference between all the benefits derived from a total product and all the costs of acquiring those benefits.
Customer Value
a customer can evaluate a company's value-proposition on two broad dimensions with multiple subsets: relative performance: what the customer gets from the vendor relative to a competitor's offering; price: which consists of the payment the customer makes to acquire the product or service; plus the access cost