Creating Long Term Loyalty

Relationships

Analyzing Consumer

Markets
Asst. Prof. Dr. Tutku Eker İşcioğlu
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 Marketing is the art of

finding, keeping and growing

profitable customers

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 Understanding Consumers

 Consumers buy the goods/services for their

personal consumption and are the final users

 Companies have to understand consumers’

needs and wants and deliver products and
services to satisfy their needs

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Building Customer Value,
Satisfaction, and Loyalty
Customer Value =
Customer Gains
Product benefit
Service benefit
Image benefit
Personnel benefit

Customer Costs
Monetary cost
Time cost
Energy cost
Psychological cost

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Creating Emotional Value

Samsung Hearing Hands

http://bigumigu.com/haber/samsung-
turkiye-den-duygu-dolu-bir-surpriz

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Creating Emotional Value

Orkid – Uncover the Shame

https://www.internethaber.com/orkid-
utanc-paketleri-reklami-kriz-cikardi-
herkes-orkid-almayin-diyor-video-
galerisi-2058938.htm

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Model of Consumer Behavior

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Who is Your Customer?

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Factors Influencing Consumer
Behavior

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1) Cultural Factors

Culture
Subculture
Social Class

Buyer
Buyer

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1) Cultural Factors

 Culture is the learned values,

perceptions, wants, and behavior from
family and other important institutions

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 1) Cultural Factors

Subculture are groups of people within a culture

with shared value systems based on common life
experiences and situations
 Hispanic
 African American
 Asian
 Mature consumers

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 1) Cultural Factors
 White…
 Symbol of death in far east,
naiveness and happiness in
Turkey.
 Deer…
 Symbol of elegance in USA,
homosexuality in Brazil, in
Turkey???
 The reason of CocaCola’s
marketing failure in Middle
East?
 Nova?

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Nova in Spanish???

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 1) Cultural Factors

Social classes are society’s relatively permanent and

ordered divisions whose members share similar
values, interests, and behaviors

Social Class A
• Income B

• Occupation C1

• Education C2
D
E
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 2) Social Factors

Reference
Groups &Opinion
Leaders

Roles &
Family
Statuses

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 Factors Affecting Gen Z
• Gen Z trusts friends most for references on brands.
• They also trust social media favorites on fashion and style
• Be Google-Proof. Gen Z may believe stories … at first … but they
don’t absorb all content without questioning it. Gen Z can confirm
with multiple sources. With the Internet, that ability to cross check
is at their fingertips at all times.

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Roles and Status

What degree of status is

associated with various
occupational roles?

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 3) Personal Factors

Personal
Personal Factors
Factors

Age
Ageand
and Income Personality
Occupation
Occupation Income Personality
life-cycle
life-cyclestage
stage

Lifestyle
Lifestyle

Activities
Activities Interests
Interests Opinons
Opinons

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 Brand personality of Harley
Davidson

Harley-Davidson’s market
dominance comes from a deep
understanding of the emotions
and motivations that underlie
consumer behavior. Harley
doesn’t just sell motorcycles; it
sells freedom, independence,
power, and authenticity.

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The Family Life Cycle

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 4) Psychological Factors

Motivation
Motivation

Beliefs &
Beliefs &
Perception
Perception Learning
Learning
Attitudes
Attitudes

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Perception&Motivation

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Psychological needs
Psychologicalneeds 1
(food,
(food,water, shelter)
water, shelter)
Safety needs
Safetyneeds 2
(security, protection)
(security,protection)
Social needs
Social needs 3
(sense
(senseof
of belonging, love)
belonging,love)
Esteem needs
Esteemneeds 4
(self-esteem,
and recognition)
(self-esteem,recognition)
realization)
andrealization)
(self-development
(self-development
actualization
actualization
Self-
Self-
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Maslow’s Hierarchy of Needs
Perception

Perception is the
process by which
people select,
organize, and
interpret information
to form a meaningful
picture of the world

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 WHAT ARE THE
CHARACTERISTICS OF
TODAY’S CUSTOMERS ??

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 Today’s Customers

• Increased price sensitivity

• Growing acceptance of private
label products
• Decreasing brand loyalty
• Increased time pressure
• Increased need for convenience
• Increased wish for customization
• Increased after sale service expectations

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Types of Buying Decision
Behavior

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 Types of Buying Decision
Behavior
Four Types of Buying Behavior

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 Complex BB

High
Involvement

Complex
Buying
Behavior
Significant
Differences
btw Brands

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 Marketing Strategies for
Complex Buying Behavior
 Redesign the product: repositioning.
 Alter beliefs about the brand

 Alter beliefs about competitor’s brands:

competitive positioning.
 Alter the important weights.

 Call attention to neglected attributes.

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 Dissonance Reducing BB

High
Involvement

Dissonance
Reducing
Buying
Behavior
Few
Differences
btw Brands

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 Marketing Strategies for
Dissonance-Reducing Buying
Behavior
 Marketing communication should supply
beliefs and evaluations that help the
consumers feel good about his or her
brand choice.

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 Variety Seeking BB

Low
Involvement

Variety
Seeking
Buying
Significant
Behavior
Differences
btw Brands

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 Marketing Strategies for
Variety-Seeking Buying
Behavior
 Brand switching occurs for the sake of
variety rather than dissatisfaction.
 Market leader: dominating the shelf space,
avoiding out-of-stock conditions,
sponsoring frequent reminder advertising.
 Challenger: offering lower price, deals,
coupons, free samples, reasons for trying
something new.
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 Habitual BB

Low
Involvement

Habitual
Buying
Behavior
Few
Differences
btw Brands

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 Marketing Strategies for
Habitual Buying Behavior
 Ad repetition creates brand familiarity rather
than brand conviction.
 Convert consumers’ involvement from low to
high:
 Link the product to some involving issue.
 Link the product to some involving personal
situation.
 Trigger strong emotions related to personal values
or ego defense.
 Add an important feature.

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 Buyer Decision Making
Process

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 The Buyer Decision Process

1) Need Recognition
 Occurs when the buyer recognizes a
problem or need triggered by:
 Internal stimuli
 External stimuli

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 What to do?

• Identify the circumstances that trigger a

particular need.
• Find ways to increase consumer
motivation.
• Show what happens when their need is not
fulfilled.

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 The Buyer Decision Process

2) Information Search
 Personal sources—family and
friends
 Commercial sources—
advertising, Internet
 Public sources—mass media,
consumer organizations
 Experiential sources—
handling, examining, using the
product
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What to do?

• Find which source is the most

important of all
• Commercial sources – information
function
• Personal sources – legitimizing or
evaluation function

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Penti…

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 The Buyer Decision Process

3) Evaluation of Alternatives
 How the consumer processes
information to arrive at brand choices
 product attributes,
 degree of importance,
 importance ranking

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 What to do?

• Identify which attributes are most important?

• Hotels: Location, cleanliness, atmosphere, price
• Mouthwash: Color, effectiveness, germ-killing
capacity, taste/flavor, price
• Tires: Safety, tread life, ride quality, price
• Identify the degree of importance of each
attribute
• Understand how consumers evaluate your
brand
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Example

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 The Buyer Decision Process

4) Purchase decision - buy or not buy,

place, quantity, timing

5) Post-purchase behavior - satisfaction or

dissatisfaction

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 The Buyer Decision Process

Performance>Expectation
Performance>Expectation Very satisfied consumer

Performance=Expectation
Performance=Expectation
Satisfied consumer

Performance<Expectation
Performance<Expectation Dissatisfied consumer

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 Marketers should attempt to influence
and monitor postpurchase behavior
 Postpurchase communications reduce
dissonance, returns, and order cancellations
 Talk with customers to discover new uses for
existing products
 Investigate methods of product disposal

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 Examples

 Car, watch, electrical toothbrush, cigarettes, ketchup,

shampoo, gasoline, beer, TV, coffee, cell phone

 Any product or service that you have recently

purchased or used?

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 The Buyer Decision Process

Customer satisfaction is a key to building

profitable relationships with consumers—
to keeping and growing consumers and
reaping their customer lifetime value

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 Highly satisfied (delighted) customers
 make repeat purchases
 are less price sensitive
 talk favorably about the company and products to
others (+ WOM )
 are loyal customers - Customer Loyalty.

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 Customer Retention

 Retain customers and build profitable long term

relationships with them
 It costs 5 to 10 times as much to attract new
customers than to keep a current customer
satisfied
Complaining customer is an asset for the
company

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 Never think that your
consumer is guaranteed!!!
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