WELCOME TO A PRESENTATION ON…

Facilitator: Mike du Toit

C
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B E HAVIOUR !
R
 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
 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
 INTRODUCTION

 Types of customers:
 Households
 Business markets

 Roles of customers:
 Buyers
 Users
 Payers
 IMPORTANCE OF
CUSTOMER BEHAVIOUR

Customer satisfaction Customer retention

Long-term
The marketing concept Focus on needs survival

Customer focus Serve needs of society

 MARKETING STRATEGY &
CUSTOMER BEHAVIOUR
Outcomes
Individual
Organisation
Society

Customer decision

Marketing strategy

Market segmentation Market analysis

Organisation
Competitors
Environment
Customers
 Creating value for the customer

Three meanings of value:

• Pricing value (remember the benefits pg 29)
• Customer value
• Strategic value

How to measure value?

1. Determine expected value
2. Prepare strategy
3. Measure how well value was delivered
4. Investigate and adapt
 Market segmentation

Bases of market segmentation:

Geographic
Demographic
Psychographic
Behaviouristic
Needs/benefit
Market value
 OVERALL MODEL OF
CUSTOMER BEHAVIOUR
External influences Market characteristics
Culture Climate
Subculture Economy
Reference group Government
Social class Technology
Family
Marketing activities
Decision-making
Individual
Customer
Organisational
Internal influences
Family
Perception
Learning
Motivation
Lifestyle Personal characteristics
Attitudes Race
Personality Gender
Self-concept Age
CULTURE AND SUBCULTURE

Culture and society

Institutions that transmit

the elements of culture
 Family
 Education institutions
 Houses of worship
 Mass media
 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
 PERSONAL
CHARACTERISTICS

 Race
 Gender
 Age

Pay special attention to the changing

roles of women!
 THE CUSTOMER’S MINDSET

Customer perception and learning

Perceptual process

Elements of learning
 LEARNING

Theories of learning
 Cognitive learning
 Classical conditioning
 Instrumental conditioning
 MOTIVATION

Pay special attention to Maslow & Mcguire

 CUSTOMER ATTITUDES

Sources of influence on attitude formation

 Direct experience
 Influence of family and friends
 Exposure to mass media
 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
 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
 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
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
 CHARACTERISTICS OF
PERSONALITY

• Personality reflects individual differences

• Personality is consistent and enduring

• Personality is partially created and

influenced by the environment

• Personality can change

CUSTOMER DECISION-MAKING
Stages in the decision-making process

Problem recognition

Search for information

Evaluation of alternatives

Buying

Post-buying evaluation
FAMILY DECISION-MAKING

 Influencer
 Gatekeeper
 Deciders
 Buyers
 Preparers
 Users
 Maintainers
 Disposers
THE FAMILY LIFE-CYCLE

Stage
1. Bachelorhood
2. Honeymooners
3. Parenthood
4. Post-parenthood
5. Dissolution
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
CUSTOMER-FOCUSED
MARKETING
Stages of brand loyalty

 Brand awareness
 Brand trial
 Brand preference
 Brand habit
 Brand loyalty
 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
THE END

Questions?