WELCOME TO A PRESENTATION ON…

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WELCOME TO A PRESENTATION ON
Facilitator Mike du Toit
!
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CUSTOMER BEHAVIOUR
Topic 1 Introduction to customer behaviour Topic
2 Determinants of customer behaviour Topic 3
The customers mind set Topic 4 Customer
decision-making Topic 5 Customer focused
marketing
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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
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INTRODUCTION

• Types of customers
• Households
• Business markets
• Roles of customers
• Buyers
• Users
• Payers

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IMPORTANCE OF CUSTOMER BEHAVIOUR
Customer satisfaction The marketing
concept Customer focus
Customer retention Focus on needs Serve needs
of society
Long-term survival
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MARKETING STRATEGY CUSTOMER BEHAVIOUR
Outcomes Individual Organisation Society
Customer decision
Marketing strategy
Market segmentation
Market analysis Organisation Competitors Environme
nt Customers
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Creating value for the customer

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

• How to measure value?
• Determine expected value
• Prepare strategy
• Measure how well value was delivered
• Investigate and adapt

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Market segmentation
Bases of market segmentation Geographic Demograph
ic Psychographic Behaviouristic Needs/benefit Mark
et value
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OVERALL MODEL OF CUSTOMER BEHAVIOUR
External influences Culture Subculture Reference
group Social class Family Marketing activities
Market characteristics Climate Economy Government
Technology
Decision-making Individual Organisational Family
Customer
Internal influences Perception Learning Motivation
Lifestyle Attitudes Personality Self-concept
Personal characteristics Race Gender Age
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CULTURE AND SUBCULTURE
Culture and society
Institutions that transmit the elements of
culture

• Family
• Education institutions
• Houses of worship
• Mass media

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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

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PERSONAL CHARACTERISTICS

• Race
• Gender
• Age

Pay special attention to the changing roles of
women!
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THE CUSTOMERS MINDSET
Customer perception and learning
Perceptual process
Elements of learning
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LEARNING

• Theories of learning
• Cognitive learning
• Classical conditioning
• Instrumental conditioning

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MOTIVATION
Pay special attention to Maslow Mcguire
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CUSTOMER ATTITUDES

• Sources of influence on attitude formation
• Direct experience
• Influence of family and friends
• Exposure to mass media

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COMPONENTS OF ATTITUDES

• Cognitive component
• Consists of customers beliefs about object
• Also customers 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

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COMPONENTS OF ATTITUDEScont.

• 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

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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

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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

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• CHARACTERISTICS OF PERSONALITY
• Personality reflects individual differences
• Personality is consistent and enduring
• Personality is partially created and
  influenced by the environment
• Personality can change

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CUSTOMER DECISION-MAKING
Stages in the decision-making process
Problem recognition
Search for information
Evaluation of alternatives
Buying
Post-buying evaluation
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FAMILY DECISION-MAKING

• Influencer
• Gatekeeper
• Deciders
• Buyers
• Preparers
• Users
• Maintainers
• Disposers

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THE FAMILY LIFE-CYCLE
Stage

• Bachelorhood
• Honeymooners
• Parenthood
• Post-parenthood
• Dissolution

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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

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CUSTOMER-FOCUSED MARKETING
Stages of brand loyalty

• Brand awareness
• Brand trial
• Brand preference
• Brand habit
• Brand loyalty

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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

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THE END
Questions?