analyzing customers and buyer behavior
TRANSCRIPT
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ANALYZING
CUSTOMERS ANDBUYER BEHAVIOR
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What is customer analysis?
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Customer analysis is the process of determining customer
segmentation, value, purchasing behavior and motivationin order to better target marketing and increase sales.
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Customer analysis
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80-20 rule!!
The purpose of customer analysis is to identify
the top 20% of customers (gold customers),
middle 60% (silver customers) and bottom20% (lead customers).
We then try to determine how to keep the gold
customers happy and how to encourage silvercustomers to become gold customers. Then
we have to figure out what to do with our lead
customers.
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Customer analysis
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Most important questions??
Who?
Where?
When ?
What?
How?
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Factors influencing customer
behavior
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Culture
Culture, sub culture, social class
Social
Reference groups, family, roles& status
Personal
Age& life cycle stages, occupation, economic
situation lifestyle, personality & self concept Psychological
Motivation, perception, learning, beliefs &
attitudes
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Factors influencing customer
behavior
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CULTURE
culture is the fundamental determinant of a persons
wants and behavior.
Perception Set of values
Preferences
Behavior
Sub culture
Sub culture provides more specific identifications and
socialization
For their members
Nationalities, religions, racial groups, geographical regions
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Factors influencing customer
behavior
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Social classRelativity homogeneous and sustainable divisions in a society. They
are hierarchically ordered and their members exhibit similarinterests, values and behavior
Characteristics of a social class
1. Members of same social class tends to behave morealike then members of two different classes
2. members are perceived as occupying superior orinferior positions according to their social class
3. Social class is indicated by a cluster of variables likeeducation, wealth , income
4. Members can move up and down in a social classladder during their lifetime
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Factors influencing consumer
behavior
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The social classes of Pakistan.
1. Upper social class ( lower upper class)
2. Middle social class ( upper middle class)
3. Working social class ( lower working
class)
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Factors influencing consumer
behavior
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1.Upper social class.
their size is 2% of the total society and
approximately 3.7 million they have 60% to 65% of
money of the country.They are actually
1. High status political leadership
2. Big business man3. Top management of the company
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Factors influencing customer
behavior
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2. Middle Social Class.
their population is 28% out of the total population
their population is 53 to 54 million of the total
population
They are actually
1. They are small to medium size business man.
2. Middle management
3. Low ranking govt officer
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Factors influencing consumer
behavior
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3. Working Social Class.
size is 70% out total population of Pakistan.
1. They are very small size shop owner. Skill,
semi skill & unskilled
2. Low grade government staff ( peons, driver)
3. Poor former
4. Political worker
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Factors influencing consumer
behavior
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Factors influencing consumer
behavior
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SOCIAL Factor
Consumer behavior is influenced by the
following social factor
References groups
Family
Social role & statuses
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Factors influencing consumer
behavior
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References groups
A persons reference group consists of all the
groups that have a direct or indirect influence on
a persons behavior or attitudeMembership group: direct influence
primary groups: family, friends, neighbor, co-
workers (informal interaction)
secondary groups: religious groups,professional trade unions ( formal interaction)
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Factors influencing consumer
behavior
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People are affected by references in 3 ways
1. References groups expose an individual to new
behaviors and lifestyle
2. Influence attitude and self-concept3. Create pressure for conformity ( affect product
and brand choice)
Aspiration groups
Dissociative groups
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Factors influencing consumer
behavior
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FAMILY FACTOR
The family of orientation (parents & sibling)
Family of procreation ( spouse & children)
ROLES AND STATUSES
A role consists of the activities the a person is
expected to perform. each role carries astatus.
People choose products that communicate their role and
status in society.
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Factors influencing consumer
behavior
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PERSONAL FACTORBuyers decision is also influenced by personal factor,
which are as follow:
Age & stage in life cycle
Occupation & economic circumstances
Life style & psychographics
Personality and self concept
Age & stage in life cycle:
People buy different type of goods and services duringtheir life time. Taste in food, clothing, furniture etc isalso age dependent.
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Factors influencing consumer
behavior
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Family life cycle1. Bachelor stage
2. Newly married couples
3. Full nest14. Full nest2
5. Full nest 3
6. Empty nest1
7. Empty nest28. Solitary survivor
9. Solitary survivor
Highly influenced by
advertisement
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Factors influencing consumer
behavior
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Occupation & economic circumstances
Occupation and economic circumstances influence buying
behavior and patterns.
Blue collar workers buying basket
Work clothes
Work shoes
Lunch boxes
Companies presidents buying basket
Expensive suits Air travel
Country club membership
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Factors influencing consumer
behavior
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Lifestyle & psychographicsLife style is a persons pattern of living in the world as
expressed in activities, interests, and opinions.
Marketers search for the relationship between productand the life style group.
Psychographics is the science of using psychology &
demographics to better understand consumer
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Factors influencing consumer
behavior
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Factors influencing consumer
behavior
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Personality and self-concept
we define brand personality as the specific mix of
human trails that may be attributed to a particular brand.
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Factors influencing consumer
behavior
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Factors influencing consumer
behavior
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Factors influencing consumer
behavior
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Brand personalities
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Factors influencing consumer
behavior
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PSYCHOLOGICAL FACTOR
a persons buying choice is influenced by
following major psychological factors
Motivation
Perception
Beliefs & attitudes
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Factors influencing consumer
behavior
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Motivation
Motivation is the driving force by which humans
achieve their goals. A need becomes a motive when
it is arouse to a sufficient level of intensity. Two
important theories of motivation Maslows theory of motivation
Herzbergs two factor theory of motivation
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Factors influencing consumer
behavior
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Factors influencing consumer
behavior
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Herzberg 2 factor theory:
Herzberg proposed the Motivation-Hygiene
Theory, also known as the two factor
theory(1959) of job satisfaction. According tohis theory, people are influenced by two sets of
factor
hygiene factor
motivator factor
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Factors influencing consumer
behavior
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f
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Factors influencing consumer
behavior
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PERSEPTION:
perception is the process by which an individual
select, organize, and interprets information inputs to
create a meaningful picture of the world.A motivated person is ready to act
How the motivated person acts is influenced by
his/her perception of the situation.
People can emerge with different perception ofthe same situation because of three perceptual
processes
F t i fl i
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Factors influencing consumer
behavior
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Selective attention People are more likely to respond to stimuli that relates
to their current situation
People are more likely to respond to stimuli that they
anticipate
People are more likely to respond to stimuli whose
deviations are large in relation to the actual size the
stimuli.
Selective distortion
Is the tendency to twist information into personalmeanings and interpret information in a way that will fit
our preconception.
Selective retention People will retain only that information that supports their
attitudes and beliefs.
F t i fl i
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Factors influencing consumer
behavior
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BELIEFS & ATTITUDES
belief is a though which a person carried about
something.
BUYING DECISION PROCESS
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BUYING DECISION PROCESS
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BUYING DECISION PROCESS
Buyers role
Initiator
Influencer
Decider
Buyer
user
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BUYING DECISION PROCESS
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BUYING BEHAVIOUR
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Steps in consumer behavior
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Information Search
The Purchase decision
Post purchase behavior
Problem Recognition
Evaluation of alternatives
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Steps in consumer behavior
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Informationsearch:
Personal sources
Public sources
Commercial sources
Experimental sources
Th f t t l t
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The move from consumer total set
to choice set
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Total set
Awareness set
Considerationset
Choice set
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Organizational buying behavior
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Organization buying is the decision-making
process by which formal organizations
establish the need for purchased products
and services and identify, evaluate, andchoose among alternative brands and
suppliers.
h t i ti f i ti l
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characteristics of organizational
buyers
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1. Consumer market is a huge market in millions
of consumers where organizational buyers are
limited in number for most of the products.
2. The purchases are in large quantities.3. Close relationships and service are required.
4. Demand is derived from the production and
sales of buyers.
h t i ti f i ti l
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characteristics of organizational
buyers
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5. Demand fluctuations are high as purchases
from business buyers magnify fluctuation in
demand for their products.
6. The organizational buyers are trainedprofessionals in purchasing.
7. Several persons in organization influence
purchase.8. Lot of buying occurs in direct dealing with
manufacturers.
Organizational Buying
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Organizational Buying
Situations
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Organizational Buying
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Organizational Buying
Situations
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Straight re-buyIn this buying situation, only purchasing department is involved.They get an information from inventory control department orsection to reorder the material or item and they seek quotationsfrom vendors in an approved list.
The "in-suppliers" make efforts to maintain product and servicequality. The "out-suppliers" have to make efforts to get their namelist in the approved vendors' list and for this purpose they have tooffer something new or find out any issues of dissatisfaction withcurrent suppliers and promise to provide better service.
Modified re-buyIn this buying situation, there is a modification to the specificationsof the product or specifications related to delivery. Executives apartfrom the purchasing department are involved in the buyingdecisions. The company is looking for additional suppliers or isready to modify the approved vendors list based on the technicalcapabilities and delivery capabilities.
Organizational Buying
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Organizational Buying
Situations
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New buyIn this situation, the buyer is buying the product for the first time. Asthe cost of the product or consumption value becomes higher, morenumber of executives are involved in the process. The stages ofawareness, interest, evaluation, trial, and adoption will be there forthe products of each potential supplier. Only the products whichpass all the stages will be on the approved list and price competitionwill follow subsequently.
Systems buySystems buying is a process in which the organization gives a
single order to a single organization for supplying a full system. Thebuying organization knows that no single party is producing all theunits in the system. But it wants the system seller to engineer thesystem, procure the units from various vendors and assemble,fabricate or construct the system.
Participants in the Business Buying
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Participants in the Business Buying
Process
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Users: The persons who use the item. Say for safety gloves theoperators.
Initiators: The persons who request the purchase. The safety officer mayinitiate the request for the purchase.
Influencers: Persons who defines specifications. In this case of safety
gloves, the safety officer may himself define specifications. If an industrialengineer is in the organization, he may also be consulted. There can bedifferent gloves for different working situations and industrial engineer maybe more aware of specific requirements due to his special nature of work
Buyers: They are the person who actually do the buying transaction.
Gatekeepers: They control access to personnel in a company. Thereceptionist, the secretaries etc.
Deciders: People who decide on product requirements and suppliers. Itis the final approval for product specifications and suppliers'list.
Approvers: Persons who approve the purchase. In the case of safetygloves, the personal manager may have the power to approve.
Organizational
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OrganizationalBuying/Purchasing/Procurement
Process
Problemrecognition
Generalneed
description
Productspecification
Suppliersearch
Proposalsolicitation
Supplierselection
Order routinespecification
Supplierperformance
review