CONSUMER BEHAVIOR AND LOYALTY

Lecturer: Mrs. Fidan Manafova

DEFINING
CONSUMER
BEHAVIOR
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WHAT IS
CONSUMER BEHAVIOR
Consumer behavior is the study of how people make decisions
about what they buy, want, need, or act in regards to a product,
service, or company.

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TYPES OF
BUYERS
CONSUMER BUYER
Consumer buyer is the buyer who is
also the consumer of the product or
the service being bought.

ORGANIZATIONAL
BUYER
People in charge of purchasing
products and services for
organizations, governments and
business. Organizational buyers make
buying decisions for their organizations
and purchase products and services
professionally. They buy the raw
material, converts it to some good
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which is then sold to the consumer.

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GROUP
BUSINESS MARKETS
It is usually annual meeting
of an association and
include general sessions,
committee meetings, and
CONVENTIONS
special-interest sessions.
A unique subset of
corporate group
business, is a reward
participants receive for
achieving or exceeding a
goal.

INCENTIVE
TRAVEL MICE ASSOCIATION
MEETINGS

Associations sponsor
many types of meetings,
including regional,
special-interest,
educational and board
meetings.

Corporate meetings CORPORATE

include training, MEETINGS

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planning.
PERSONAL
FACTORS
INFLUENCE
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CULTURAL
FACTORS

• Comprises the basic values, perceptions, wants and

behaviors that a person learns continuously in society.
Culture • Culture is expressed through tangible items like food,
architecture, clothing, and art.

• Groups of people with shared value systems based on

common life experiences and situations.
Subculture • Subculture include nationalities, religions, racial groups,
and geographic regions.

• Ordered divisions in a society whose members share

similar values, interests, and behaviors.
Social Class • Social interests have identified 7 American social classes:
upper uppers, lower uppers, upper middles, middle,
working, upper lowers and lower lowers.

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SOCIAL
FACTORS
• Serve as direct or indirect points of comparison or
reference in the forming of a person’s attitudes and
Reference groups behavior.
• Groups commonly have opinion leaders.

• Marketers are interested in the roles and influence of the

Family husband, wife, and children on the purchase of different
products/services.

• A role consists of the activities that a person is expected

to perform according to the persons around him/her.
Roles & status • Each role carries a status reflecting the general esteem
given to it by society.

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PERSONAL
FACTORS
Age & life-cycle • Depending on age, preferences in travelling are changing among the consumers.
• Whether the traveler is married or not might influence on his/her decision process.
stage
• Example: construction workers buy their lunches from
Occupation industrial catering trucks at the job side, but business
executives purchase meals from a full-service restaurant.

Economic • Income, savings and interest rates are among consumer

decision process influencers.
circumstances
• Is a person’s pattern of living as expressed in his or her
Life-style activities.

• Distinguishing psychological characteristics that lead to relatively

Personality consistent and enduring responses to the environment.

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PSYCHOLOGICAL
FACTORS
• A need becomes a motive when it is aroused to a sufficient
Motivation level of intensity.
• Maslow’s Theory of Motivation; Herzberg’s Theory

• A motivated person is ready to act. How that person acts is

Perception influenced by his/her perception of the situation.

• Three perceptual processes: selective attention; selective
distortion; selective retention

• Descries changes in an individual’s behavior arising from

Learning experience.
• When consumers experience a product, they learn about it.

Beliefs and • Belief is a descriptive thought that a person holds about

something.
• Attitude describes a person’s relatively consistent evolutions,
attitudes feelings and tendencies toward an object or an idea.

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ORGANIZATIO-
NAL FACTORS
INFLUENCE

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DECISION
PROCESS

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INDIVIDUAL
BUYERS

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ORGANIZATIONAL
BUYER Problem
Recognition
Performance Need
review Description
Order-
Routine
Specification Product
s Specification

Supplier Supplier
Selection Search

Proposal

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Solicitations
LOYALTY
PROGRAM

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WHAT IS A
LOYALTY PROGRAM?
Loyalty programs encourage shoppers to return to stores where
they frequently make purchases.
Loyalty programs provide two key functions:

Reward customers rewarding for brand loyalty

Provide the issuing company with a wealth of

consumer information

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PRONS & CONS OF
LOYALTY PROGRAMS

PROS + CONS –
• Keep current • Difficulty in
customers understanding where
• Saves consumer loyal behavior actually
information comes from
• Reduce unprofitable • Discounts may affect
customers financial balance of the
• Better customer company
communication • Similar loyalty program
belonging to
competitors

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INNOVATIVE
LOYALTY PROGRAMS

www.shopify.com/blog/loyalty-program

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