customer behavior

Marketing 1BCustomer behavior

Hugo van Zyl

083-629 2069

[email protected]

Customer behavior


Hugo van Zyl

083-629 2069

[email protected]

Quiz

1. List the 4 benefits that a consumer could get when making a purchase (4+1)

2. List the 4 types of costs that a consumer could have to carry to when making a purchase (4+1)


Hugo van Zyl

083-629 2069

[email protected]

Pricing Value

• Benefits:– Functional benefits– Social benefits– Personal benefits– Experiential benefits


Hugo van Zyl

083-629 2069

[email protected]

Pricing Value

• Costs:– Monetary costs– Temporal costs– Psychological costs– Behavioral costs


Hugo van Zyl

083-629 2069

[email protected]

Quiz results

0

1

2

3

4

5

6

7

0 1 2 3 4 5 6 7 8 9 10

# Students

Ma

rks

Week 3


Hugo van Zyl

083-629 2069

[email protected]

Class results

Papers Average mark

20 3


Hugo van Zyl

083-629 2069

[email protected]

Quiz

• Name the 4 “channels” through which values, beliefs and customs can be acquired.

• Explain the process under each of them briefly

• 4+4+2 bonus points


Hugo van Zyl

083-629 2069

[email protected]

Learning and Culture

• Beliefs, values and customs are acquired from an early age through:– Playing– Schooling– Sport– Family / home life

• 3 distinct forms of learning– Formal learning – Parents teaching a child how to

behave– Informal learning – child imitating the behavior of others– Technical learning – Teachers / Lecturers instruct


Hugo van Zyl

083-629 2069

[email protected]

Recap

Custom

er

External influences - Cptr. 4/5

•Culture / Subculture

•Reference groups

•Social class

•Family

Internal influences – Chpt 7,8,9,10

•Perception

•Learning

•Motivation

•Lifestyle

•Attitudes

•Personality

•Self concept

Market characteristics –

Chpt. 3

•Climate

•Economy

•Government

•Technology

Personal characteristics –

Chpt 6

•Race

•Gender

•Age


Hugo van Zyl

083-629 2069

[email protected]

Chptr 3 – Market characteristics

• Characteristics of SAF population– Individuals

• Population, Age distribution, Geographic distribution, education levels, Labor market, unemployment, formal/informal sectors, Migrant workers

– Households• Housing, Water, energy, Telephones, Sanitation,

Healthcare, Household income

– Other factors• Climate, Economic Conditions, Government, Technology


Hugo van Zyl

083-629 2069

[email protected]

Chptr 4 – Culture / Sub culture

• Nature of culture– Sub Culture– Needs– Learning– En / Acculturation– Language, Symbols,

rituals– Society– Dynamic nature of

culture

• Measurement of culture– Content– Fieldwork– Values– Value Measurement

• SAF Core Values– Sociomonitor


Hugo van Zyl

083-629 2069

[email protected]

Nature of culture• Culture – sum total of beliefs, values, customs that serve to direct

the customer behavior of members of a particular society

• Beliefs – Very large number of verbal and mental statements that reflect a person’s particular knowledge and assessment of something

• Values – deep seated motivations instilled from culture– Few in number– Guide for behavior– Difficult to change– Not linked to specific objects or situations– Widely accepted by members of society

• Customs – modes of behavior that is culturally approved or accepted ways of behaving in specific situations


Hugo van Zyl

083-629 2069

[email protected]

Nature of culture• Sub culture – Distinct cultural group that exists as

an identifiable segment within a larger group – Language, Religion

• Needs & Culture – 2 way process of creation

• Learning – Formal, Informal , Technical

• En / Acculturation

• Language – Most common expression of specific culture


Hugo van Zyl

083-629 2069

[email protected]

Nature of Culture• Symbols – Anything that stands for something else

– Images and Brands!!

• Rituals – Symbolic activity that consists of a series of steps occurring in fixed sequence and repeated over time.

• Society and social institution play a very important role in Culture

• Culture is a dynamic process that is constantly changing.


Hugo van Zyl

083-629 2069

[email protected]

Chptr 5 – Reference group / Social class

• Reference groups– Types– Marketers– Influence– Advertising

• Social Class – Marketing implications

• Trends in customer behavior – Tech, Socio-cultural, Gov.


Hugo van Zyl

083-629 2069

[email protected]

Types of reference groups• Formal groups – Clearly defined structure• Informal groups – No formal rules

• Primary groups – face to face interaction• Secondary reference groups – no face to face interaction

• Membership groups – part of a group and model behavior• Non membership groups – Not part of but do model behavior

• Aspirational groups – Rich or famous?

• Dissociative groups – Avoid and reject so base behavior on opposite


Hugo van Zyl

083-629 2069

[email protected]

Reference group influence

• Group influence – strong when product or brand is

visible to group

• Reference group influence – higher when

necessity of item is lowest

• Group norms – more commitment a person feels

to group the higher the level of conformity

• Group norms – Relevance of particular activity

will determine level of conformance


Hugo van Zyl

083-629 2069

[email protected]

Social class

• Definition - Social class refers to the hierarchical distinctions between individuals or groups in societies or cultures

• Social class is determined:– Self attribution– Repuational approach– Objective measures - Income


Hugo van Zyl

083-629 2069

[email protected]

Characteristics of social classes in USA

Relative size Group Description

1.5% Upper classOld money + Prominent rich

Antiques, art, rare jewelry, luxury travel and designer products

12.5%Upper middle

class

Professionals, small business owners, senior managers.

Community minded, socially aware and future orientated

32%Lower middle

class

Office workers, teachers, technicians.Concept of hard work based here. Conforming

mindset, home / family orientated

38%Upper lower

class (working class)

Blue collar workers. Concerned about Fin security. Rely on salespeople for Purchase

advice

16%Lower – lower

class

Unskilled laborers, often illiterate. Good market for necessities and products that

make the “moment” more enjoyable


Hugo van Zyl

083-629 2069

[email protected]

Chapter 6

Personal characteristics


Hugo van Zyl

083-629 2069

[email protected]

Personal characteristics

Race

•Race & Products

•Marketing communications

•LSM

Gender

•Role of woman

•Role of Men

Age

•Definition

•Why is it important

•Subcultures


Hugo van Zyl

083-629 2069

[email protected]

Race / Ethnicity

• Race – Genetic heritage group a person is born into• Ethnicity – patterns of association and identification

with common national or cultural origins of a subgroup.– Self perpetuating population– Shared cultural values– Common language– Members define themselves as part of a subgroup

• Is segmentation based on Race/Ethnic lines appropriate?


Hugo van Zyl

083-629 2069

[email protected]

Race / ethnic segmentation


Hugo van Zyl

083-629 2069

[email protected]

Yes vs. No

Yes No

Our purpose as marketers are to satisfy customers needs….


Hugo van Zyl

083-629 2069

[email protected]

KwanzaaKwanzaa is an African-American holiday about the festival of the first harvest of the crops. It begins on December 26, and lasts for seven days. The name Kwanzaa, sometimes spelled Kwanza, comes from a phrase which means

"first fruits" in Swahili, an East African language.Kwanzaa was created by Dr. Maulana Karenga in 1966. It is celebrated

through singing, speaking, dancing and reciting traditional. Stories. Kwanzaa is built on seven principles that are commonly known as "Nguzo Saba". These

principles are: •umoja - unity •ujima - collective work and responsibility •nia - purpose •imani - faith •kujichagulia - self-determination •ujamaa - cooperative economics •kuumba - creativity


Hugo van Zyl

083-629 2069

[email protected]


Hugo van Zyl

083-629 2069

[email protected]

Gender

Category Men Woman

FoodSingle men 25-34 years spend more on food out

of home than woman

Buy fresh food ,diet food and drinks

Clothing White, black, blue, grey and brown

Fabric exclusive use. Full spectrum of colors

HousingConstruction concerns,

heating cooling and building material

Functional use, closet space, size of kitchen

Decorating Focus on entertainment area

Kitchen and living room

Weddings Reception is key event Ceremony is key event


Hugo van Zyl

083-629 2069

[email protected]

Changing role of woman

• Larger part of population than men• More woman in Med school than men• Laws such as BBBEE act drive woman into more

senior / exco roles.


Hugo van Zyl

083-629 2069

[email protected]

Changing role of men

• Increase role of woman in workplace has forced men to adopt.

• “Metro sexual” male category


Hugo van Zyl

083-629 2069

[email protected]

Gay market

• DINKY - Double income , no kids• Brand conscious and loyal• Well traveled and read


Hugo van Zyl

083-629 2069

[email protected]


Hugo van Zyl

083-629 2069

[email protected]

Age

• Chronological / Biological and Psychological age

• Why age is important:– Needs and wants vary– Lifetime value of customers– Shifts in demands and values


Hugo van Zyl

083-629 2069

[email protected]

American demographics

Generation Year Born Age in 2000 % of Pop

GI Generation

+1930 71+ 9%

Depression era

30-39 61-70 7%

War Babies 40-45 55-60 6%

Baby boomers

46/64 36-54 28%

Gen X 65-76 24-35 16%

Gen Y 77-94 6-23 26%

Millennials 95+ 0-5 8%


Hugo van Zyl

083-629 2069

[email protected]

Children (Millennials)

• Big spenders• Sweets, Clothes, Entertainment, Toys• Susceptible to adverts• Influence parental shopping patterns• Concerns about children’s ability to “defend”

themselves against advertising campaigns


Hugo van Zyl

083-629 2069

[email protected]

Teens - Generation Y

• Born in 80’s

• Global communication (Internet users), Focus on materialism

• Very sophisticated and seasoned customers

• Sophisticated decision making skills as they shop from a much earlier age and mostly unaccompanied

• Brand loyalty once established tend to last well into adulthood

• Selection of images, symbols, issues, and media is critical for the marketers

• Ethnic and racial groups are mixed and also represented as such in ads


Hugo van Zyl

083-629 2069

[email protected]

Teens - Generation Y• Due to high level of computer and internet literacy:

– Preferences and demands are transient– Demand customization– Due to wide availability they change minds often.– Prefer self trial than marketing promises.– Not dazzled by technology

• Marketing rules for Gen Y– Don’t talk down– Don’t try to be what ur not– Entertain them– Show empathy– Customize and interact– Try and get to know them.


Hugo van Zyl

083-629 2069

[email protected]

Teens - Generation Y - SAF

• 45% - Nguni languages• 52% female• 65% - Gauteng, KZN, WC , EC• 20% - Have matric

• School pupils• Univ. students• Young working adults


Hugo van Zyl

083-629 2069

[email protected]

Young Adults – Generation X

• Born – mid ’60’s – mid 70’s• Difficult economic times• Disillusioned and less materialistic than previous

generations• Reflected in music such as Pearl Jam, Guns n Roses

and RHCP• Fashion – Grunge look, Earrings and tattoos• Perception is of a “slack” generation.• Found success and achievement through technology• Tend to leave home later than previous generations


Hugo van Zyl

083-629 2069

[email protected]

Young Adults – Generation X

• Pre-occupation with shopping and material possessions

• Concept of Mall rats is Gen X• Heavy exposure to TV – Media knowledgeable

and Customer wise generation• Cynical to “obvious” marketing campaigns but

respond to “clever” campaigns• Respond to marketing aimed at them specifically,

talking their language and suing their style and images


Hugo van Zyl

083-629 2069

[email protected]

Famous Gen X’ers


Hugo van Zyl

083-629 2069

[email protected]

Baby boomers• Generation born after WW2• Boom in the birthrate till mid 1960’s• Characterized by Family and home orientation• High education levels, high income and dual

career households• Time pressure was the norm.• TV shaped their lives• Rock and roll – Beatles, The Who, Jim Morrison• Drugs• BB are now the aging generation and have an

impact on discretionary spend.


Hugo van Zyl

083-629 2069

[email protected]

Famous Baby boomers


Hugo van Zyl

083-629 2069

[email protected]

Seniors• Living longer and able to spend longer• Values:

– Autonomy– Connectedness– Altruism– Personal growth

• Concept of perceived age

• Gerentographics– Healthy indulgers – Focus on enjoying life– Healthy hermits – Withdrawn due to life events– Ailing outgoers – Positive despite life events– Frail recluses – Accepted aging and adjusted their life

customer behavior

Documents