CONSUMER BEHAVIOUR

 10 September 2022
 MM - Ukrida

Consumer Behaviour 1
Questions to be answered

• What is the difference between Customer and Consumer?

• Why do we need to learn about Consumer behavior?
• What drives consumer behavior.

Consumer Behaviour 2
Difference between consumer and customer

• Who is customer?
• Who is consumer?

Consumer Behaviour 3
Who is customer?

• Customer is a person who buys goods and services from the seller and pays
for it to satisfy their needs.

• Explanation
• Many times when a customer who buys a product is also the consumer, but
sometimes it is not.
• For example : when parents purchase a product for their children, the parent is the
customer, the children are the consumer.
• Questions:
• Who is the customer of elementary school?
• Who is the consumer of elementary school?
• Who is the customer of university?
• Who is the consumer of university?

Source: byjus.com
Consumer Behaviour 4
Customers are divided into two catagories

• Trade Customers
• These customers who buy the product, add value and resell it. Like a reseller,
wholesaler and distributor etc.

• Final Customers
• These are the customers who buy the product to fulfill their own needs or desires.

• If we analyze from the angle of product satisfaction and relationship with

customers, the customers are divided into 3 kinds:
• Present Customers
• Former Customers
• Potential Customers

Source: byjus.com
Consumer Behaviour 5
Who is Consumer?

• Someone who purchases the product for his/her own need and
consumes it.

• A consumer cannot resell the good or service but can consume it to

earn his/her livelihood and self employment.
• All individuals who engage themselves in the economy is a consumer
of the product.

Consumer Behaviour 6
 The difference between customer and consumer

Customer Consumer
Definition
Customer is the one who is purchasing the goods Consumer is the one who is the end user of any goods and
services
Ability to resell
Customer can purchase the good and is able to resell Consumers are unable to resell any product or service
Motive of buying
The motive of buying is either for resale or for consumption The motive of buying is only for consumption
Is payment necessary
Must be paid by customer May or may not be paid by the consumer
Target group
Individual or company Individual, family or group

Consumer Behaviour 7
What is consumer behavior?

• Consumer behaviour is a physiological process it is all related

to the emotions of the consumer.
• In this process the consumer starts with recognizing the need
of the product, and then finds a way or a medium of solving
these needs, makes purchase decisions like planning whether
he should buy or not buy a certain product, and then he
confirms the information, jots down a plan and then
implements the plan of making the purchase.

Consumer Behaviour 8
Example in Banking

CONSUMER BANKING

RETAIL BANKING - UMKM

COMMERCIAL BANKING

CORPORATE BANKING

PRODUCT OF CONSUMER BANKING

a. KPR , Kredit kepemilikan rumah

b. KKB , Kredit kepemilikan kendaraan
c. Credit Card
d. KTA – Kredit tanpa agunan
e. Tabungan
f. Etc. etc.

Consumer Behaviour 9
What is consumer behavior

• Actions and the decision making process of people who purchase

goods and services

www.cloorack.com
Consumer Behaviour 10
Why do we need to study consumer behavior, especially marketer.

• To understand the expectation of consumers

• To learn what influences consumer’s buying decision
• To design marketing mix strategies

76% of consumers expect companies to understand

their needs and expectations

www.cloorack.com
Consumer Behaviour 11
What are the benefits of studying consumer behavior

1. Consumer differentiation
2. Retention of consumers
3. Design marketing program
4. Predicting market trend
5. Understanding competition
6. Innovating new products
7. Staying relevant in the market
8. Improving customer service

www.cloorack.com
Consumer Behaviour 12
1. Consumer differentiation

• To know the target customers.

• This is a part of customer segmentation strategy

• We do segmentation due to
• We have limited resources
• We have limited fund
• We have limited time
• But we want to get maximum result.
• So effectiveness is important.

www.cloorack.com
Consumer Behaviour 13
2. Retention of consumers

• To convince customers to buy the product repeatedly

• In sales we have to basic approach:

• New Acquistion (new customers)
• Deepening, widening, broadening

• Why maintaining and keeping customers repurchasing is important?

• Zeithaml et al, 2001 mengatakan biaya untuk mendapatkan konsumen baru
bisa 5 sampai 10 kali lebih mahal dibandingkan mempertahankan consumer
yang ada.

www.cloorack.com
Consumer Behaviour 14
To retain customer you have to :

• Give best customer experience.

• Customer satisfaction is enough?

Satisfaction Trust Commitment Engagement

• Satisfaction is not enough , we have to aim to “engagement”

• Let us see what happen in the era of Service 4.0 (industry 4.0)
Consumer Behaviour 15
source : Dr. Ferdi Antonio, 2019 , Service 4.0 16
source : Dr. Ferdi Antonio, 2019 , Service 4.0 17
 Rp. 520 Rp. 5.000 Rp. 35.000
(2 gram)
source : Dr. Ferdi Antonio, 2019 , Service 4.0 18
 Customer experience quality needs technology to be delivered

source : Dr. Ferdi Antonio, 2019 , Service 4.0 19

20
 Contoh customer experience

source : Dr. Ferdi Antonio, 2019 , Service 4.0 21

 To be able to retain customers, what do we have to do?
• Have data
• Invest people – hire good people
• Invest technology (AI) - later

Consumer Behaviour 22
3. Designing relevant marketing program

• To design campaigns with the product, price and promotion decision.

Consumer Behaviour 23
4. Predicting market trend

• To study continuous response pattern

• To predict changes in the market place

Consumer Behaviour 24
5. Understanding Competition

• To offer competitive products based on expectations

Consumer Behaviour 25
6. Innovating new products

• To develop the best fit product

Consumer Behaviour 26
7. Stat relevant in the market

• To enable to see , seize and shift ahead in the market

Consumer Behaviour 27
8. Improve customer service

• To understand differences within the customer base

• To provide appropriate service for individuals

Consumer Behaviour 28
Consumer behavior explains why people buy what they buy

www.cloorack.com
Consumer Behaviour 29
What does the study of consumer behavior include?

www.cloorack.com
Consumer Behaviour 30
What drives consumer behaviour?

1. Cultural Factors : Cultures & Social Class.

Consumer Behaviour 31
Culture differences

Hofstede,2010
Cultures &
Organization

Consumer Behaviour 32
What drives consumer behaviour? (..cont)

2. Social Factors
• Reference Group
• Family
• Role and status
3. Personal Factors
• Age and life cycle stage
• Occupation
• Financial and economic situations
• Lifestyle
• Self concept and personality

Consumer Behaviour 33
What drives consumer behaviour? (cont...)

4. Psycological factors
• Motivation
• Perception
• Learning and experience
• Attitude and beliefs.

Consumer Behaviour 34
 Consumer behavior in the context of strategy
Where to compete : industry perspective versus arena perspective
Industry
Goal Positional Advantage
Measure of success Market share
Biggest threat Intra-industry competitive
moves
Definition of customer segment Demographic or geographic
Key drivers Comparative price,
functionality, quality
Likely acquisition behavior Within industry , consolidation
or beyond industry
diversification
Consumer Behaviour
Gunther, Rita, 2013, the end
Of competitive advantage
Arena
Capturing Territory
Share of potential opportunity
spaces
Inter-industry moves:
disruption of existing model
behavioral
“Jobs to be done” in total
customer experience
Bolt on for new capacity
acquisition, often across
industry boundaries 35
Behavior changes due to generation and technology

• Generation
• Technology influence.

Consumer Behaviour 36
 Perubahan demografi generasi mempengaruhi perilaku konsumen

37
Source : Suwanda, Siti Nuraiyiah, 2019, mengenal Gen z Lokal dan Global, Majalah PPM
Penduduk Indonesia mayoritas Generasi A, Z, Y, X

38
Demography and technology change behavior

39
Consumer behavior in digital
Consumer behaviour

Source : NUS, Digital Marketing Strategy, 2021

40
Source : NUS, Digital Marketing Strategy, 2021
41
Source : NUS, Digital Marketing Strategy, 2021
42
Source : NUS, Digital Marketing Strategy, 2021
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 Name : .................................................
Pesona Description : Who is he/she?
e.g. background, salary, age, nation, tribe, gender,
social status etc.

Roles : e.g teller, housewife etc.

Pains : e.g Lack of knowledge, poor communication

skill etc.

Job to be done :
• Do the job correctly and satisfy customers
• To keep family happy as housewife.
• Food
• House cleaning
• Etc

Use Cases :
• How he/she access product information,
buy product etc.
Source : NUS, Digital Marketing Strategy, 2021
44
Source : NUS, Digital Marketing Strategy, 2021
45
Source : NUS, Digital Marketing Strategy, 2021
46
Conclusion

• We have studied:
• The differences between customer and consumer
• Why do we need to study consumer behavior
• What drives consumer behavior
• The benefits of studying consumer behavior

Consumer Behaviour 47
Quiz

Consumer Behaviour 48