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Customer Analysis: The Right Behaviors

Customer Relationship Management (CRM)- It is making sure that you establish relationship
with your customers well and that the customer trusts your firm and your brand.

Understanding the Customer: The Foundation for Direct Marketing

The first critical step on your journey to increased market share and profits is to deeply
understand your customers—how they think, feel, and act, and, how you can translate these
factors into superior customer value.
Today’s sophisticated customers expect that companies will meet and, at times, surpass their
increased demands. Direct marketing, therefore, requires an understanding of the customer’s
unique needs and preferences.

Through the Customer’s Eye

Looking through the customer’s eyes-It means understanding that each customer perceives
value in his or her own unique way.
 Some customers see value as price only.
 Others are interested only in the product’s features or attributes.
 Yet others base their value perceptions on quality or customer service.

In reality, however, most customers form their value equation around their own unique blending
of price, features, quality, and service.

Customer Value
Three major components of customer value:
(1) the cultural aspects-the parameters in which one thinks and acts;
(2) the emotional or psychological aspects of the products and
(3) the functional aspects of the product

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Cultural Component
Culture consists of all the material (goods, services) and nonmaterial (ideas, norms,
laws) aspects that affect the attitudes and behaviors of individuals living in it.

Cultural Components affecting the differences in customer behavior

A. Geographical Level- The culture of the region will actually hinder or stop particular
trends from being successful. The lifestyle of people living in the urban areas are
different from the lifestyle of people living in the rural areas.
B. Ethnicity- One ethnicity will look differently at products than will those of other ethnic
groups. No matter how interesting or beneficial the product or service may be, if it
contradicts the ethnic or cultural folkways, it will not be viewed as acceptable.
C. Language- Imposes a difference in customer behavior due to communication barriers.
D. Age- Different age groups view the world differently.

Emotional and Psychological Component

Emotional and Psychological Component- It is based on ‘‘feelings’’ and emotions.

Many businesses view customer value only through the functional or operational lens without
appreciating emotional dimensions of the messages and the products or services provided.

Conceptualize the Functional Component

Functional Component- the tangible and intangible factors driving the customer to make the
final purchase decision.

THE INTERDEPENDENCE IMPERATIVE

The cultural, emotional/psychological, and functional components are all interdependent
in making purchase decisions. For given purchases, one component may have more weight than
the others, but they are all usually there in some shape or form. The functional component may
provide you with the product basics, while the emotional may affect your psychological
attachment to it. All of this takes place within the cultural component that shapes how you think
and act.

Activity (Vlog)
My Own Purchase Story
Select a purchase that was significant to you and describe both your thoughts and actions as you
proceeded through the decision of buying the product. For example, you might explain what you
did to gather information about a product, how you evaluated the things to be considered and
what emotions you may have felt after making your decision (confidence, uncertainty, anxiety
about making the right decision, etc.). Present your answer through a video presentation (a video
blog).

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Reference: Thomas, A.R. Lewison, D.M. Hauser, W.J. Foley, L.M. (2007). Direct Marketing in
Action: Cutting-Edge Strategies for Finding and Keeping the Best Customers. Retrieved from
https://www.scribd.com/document/32704043/Direct-Marketing-in-Action pp. 13-25

Internet Sources: http://www.swlearning.com/web_resources/consumer_exer.htm

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Customer Analysis: The Right Behaviors
Direct Marketing