Looking at it from the customer perspective

Pick a love team. And let us interview each other.. YIHEEEEEEEE

Questions

Basic information name, age, high school graduated, parents? occupation, living with, who gives the allowance, how much (ballpark) Then let us focus on a specific product (bottled iced tea)

Meet George Canlas

George is a 45 year old professional who has made it to top management. A graduate of TIP and has remained loyal to the company which eventually became his ticket to success. He drives a 20 year old car that is still in tip top shape. He remains single and is not actively seeking companionship. He plays chess and he claims he is very good at it. Every morning, he listens to 96.3 Wrock because he can still relate to the music. He finds the current youth to be too adventurous. His deep insecurity is his age. He thinks that he might be replaced by technology and that eventually no one would take care of him He still watches telenolvelas but goes to bed before 9pm. He goes out with old friends and prefers to go to RJ Disco where he can boogie all night. Usually, he cannot relate anymore with the younger generation and still owns a Motorola cellphone because sikat ang brand na iyan dati

How do we turn them on!

Consumer Hot Button

What is that will make consumers buy Softdrinks branding + distribution Shoes endorser and winner image

IT

Why people buy things they dont need

Quality of life Pleasure Beautify home Education Relaxation Entertainment Planned purchase Emotional satisfaction Replace existing item Stress relief Hobby Gift for self Impulse Status

Among the consumer behavior books available

Why we buy Call of the Mall Marketing to Kids Born to Buy The 60s market

Dimensions of Consumer Behavior

How we buy? Where we buy? When? How we spend? What products do we buy? Who buys them? For what occasion?

Essence of studying consumer behavior

Determine how consumers buy Determine WHY they buy Know the drivers behind the purchase Know the process behind the decision making

The Foundations of Thought in Consumer Behavior Where did all the data come from?

Marketing Concept
Knowing what the consumer wants Providing this better than competition At a profit

Consumers uses 2 sides of the brain in determining consumer behavior

Let us take a closer look at the consumer

There are two sides of the consumer Rational thinking side

What are the REASONS why I should buy this

product Features better performance etc

Emotional feeling side

Why I like to buy this product outside of reason

How this works

When buying a brand of computer what are the things do you peruse?

Features Speed Memory Communication Ports CD drive speed Hard disk

YOU TRY TO FIND REASONS FOR BUYING AND CHOICE IS PERFECTLY RELATED TO REASONS

What if you are buying the following.

Shampoo Ketchup Diskette Bath soap Juice THE APPROACH IS DIFFERENT BECAUSE IT IS ALL EMOTIONAL

Rubber shoe war

Power Shifts from all angles

Market leader during aerobics craze

Known for quality and comfort

Known for durability and style

Shoes last for more than 3 years!

Nike merchandised using Michael Jordan and this started the whole sneaker revolution

Scott Bedburry Marketing Director Nike

Then there is a mix

Cars Gasoline Digital Organizer Batteries

THESE EXAMPLES USE BOTH EMOTIONAL AND RATIONAL ANGLE BUT IT IS JUST A MATTER OF HOW WE USE THEM

Consumer buying behavior model

STIMULUS PRODUCT PRICE PLACE PROMOTION EXTERNAL FACTORS NATUIRAL ECONOMIC DEMOGRAPHIC POLITICAL / LEGAL COMPETITIVE CULTURAL / SOCIAL BUYER BLACK BOX MOTIVATION PERSONALITY PERCEPTION LEARNING SOCIAL GROUPS BUYING ROLE

PURCHASE DECISION

THE FACTORS THAT A CONSUMER GOES THROUGH IN DECISION MAKING

Personal Factors
Age Gender (perceived gender) Age life cycle Occupation Civil status

Age

Young adolscent
Carefree Search for identity Strong physically Different worries Personal matters Family

40s
Health How to stay young Career path Maybe midlife crisis Money matters How to sustain the family

Age life cycle

Young nests Empty nests Old nests Mixed nests Young and Single Old and still single

Cultural Factors

Broad culture
Being PINOYS

Sub culture an inner culture within a culture

Youre a pinoy
But you are also from Iloilo / Cebu /

Pampanga

Cebu problem
Still takes siyesta at 12 1 pm Do not eat out Jollibee branches went bankrupt 2x before becoming successful. Very rich Prudent Status symbol

Tale of 2 cities in Bicol

Naga love for food Legaspi love for clothes and looking good

Personality

Outward character Disposition Identity Individuality Distinctiveness

The picture of who you are and who you think you are THE PICTURE OF THE IDEAL SELF (one very valuable consumer driver)

Serious outlook

Bad Boy

Good Boy

I think Im funny

Motivation
What PUSHES a consumer to choose a brand? Maslows Hierarchy of Needs

Theory that states that a person would only

be motivated to gain the next level if he has already accomplished the previous

Maslows Theory
Self Actualization

Ego / Self Esteem / Recognition

Social / Acceptance / Love Security and Safety Physiological

Example of brands

Consumer buying behavior model

STIMULUS PRODUCT PRICE PLACE PROMOTION EXTERNAL FACTORS NATUIRAL ECONOMIC DEMOGRAPHIC POLITICAL / LEGAL COMPETITIVE CULTURAL / SOCIAL BUYER BLACK BOX MOTIVATION PERSONALITY PERCEPTION LEARNING SOCIAL GROUPS BUYING ROLE

PURCHASE DECISION

THE FACTORS THAT A CONSUMER GOES THROUGH IN DECISION MAKING

Learning

Education and learning change things An college graduate would not have the same judgement as a grade school drop out Leaning and focus of education and experience So will their choice of products and brands

Social Groups

1st level people you interact almost everyday

Family, work mates, classmates

2nd level organizations you belong to that are expecting a certain level of behavior.
Clubs and organizations

3rd level social class or any socially endowed role

Reference Groups
Groups that you look up to as role model in choosing a brand. Groups can differ according to product / brand. Example:

Books people in the know Fashion younger generation for gimmick and

the yuppies when one wants to go into corporate

Aspirational Group

Are people or organizations you wish to belong but the possibility is perceived to be remote

Aspirational group is a component of reference group Wish to be a class A group or member of the elite

Buying Role
Initiator person / event that triggers the purchase Influencer a person / thing that influences the brand of choice Decider dictates which brand to buy Buyer physical buyer Consumer physical user

Buying Role CHOCOLATE DRINK

Initiator EMPTY CAN IN THE HOUSE Influencer - KIDS Decider KIDS AND MOM Buyer - MOM Consumer KIDS THE KEY IS TO FIND THE CENTER OF FORCE IN DECISION MAKING

Buying Role WATCH

Initiator Influencer Decider Buyer Consumer THE KEY IS TO FIND THE CENTER OF FORCE IN DECISION MAKING

Types of Buying Behavior

Low involvement
Few questions asked

High involvement
A lot of pondering to do

THE HIGHER THE LEVEL OF INVOLVEMENT THE MORE INFORMATION SHOULD BE GIVEN TO CONSUMERS

It will also vary according to RISK

Higher risk Moderate risk Low risk

The higher the risk the higher the involvement

Purchase Habits
Frequency of Purchase Place of purchase Quantity and size of package purchased With what product was it bought with?

Media habits
What newspapers does he / she reads? When does she read them? What section does she read the most? Followed by what? TV what shows? Radio stations what time?

So let us describe our YIHEE PARTNER Who is she?

How Loyalty is Built

Recognition Awareness Interested Desire Trial purchase Repeat purchase Loyalty

2 types of awareness

Depth
How much does your brand gets

remembered by target segment

Breadth
On what occasions does it get remembered

Gain KEY CONSUMER INSIGHT

What do they like? What are their eccentricities? Are there any differences among consumer groups? How do we turn them on? How do we push their HOT BUTTON?

A person therefore.