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 don’t 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
 You’re 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 I’m funny

Motivation
What PUSHES a consumer to choose a brand?  Maslow’s 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

Maslow’s 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….

Sign up to vote on this title
UsefulNot useful