CUSTOMER PROFILING

HOW TO USE DEMOGRAPHIC, PSYCHOGRAPHIC AND GEOGRAPHIC FACTORS TO GENERATE BUYING MOTIVES
  Customer profiling is the collection of information about the
customers of a business who are the consumers of their
RECAP: products.
CUSTOMER  Customers have their own motives for purchasing different
PROFILING AND products as such, not every product will appeal to every
SEGMENTS customer.
 To profile a customer we build their Demographic,
Psychographic and Geographic data as well as buy motive.
RATIONAL BUYING MOTIVES
 The customer is often aware of specific requirements they
may have for the product or service they are buying. These
motives are conscious and quantifiable reasons for the
purchase.

 This includes:
 Reliability
 Durability
 Efficiency
 Ease of use
 Expense
EMOTIONAL BUYING MOTIVES
 Emotional motives may have more of an influence then
rational motives. Customers may create rational motives to
justify an emotional purchase.
 Emotional buying influences include:
 Financial Gain or Loss
 Self-gratification
 Comfort or convenience
 Security
 To feel satisfied
PEER GROUP FACTORS
 Humans are inherently social animals, and individuals
greatly influence each other.
 A useful framework of analysis of group influence on the
individual is the so-called reference group—the term comes
about because an individual uses a relevant group as a
standard of reference against which oneself is compared.
Reference groups come in several different forms.
ASPIRATIONAL FACTORS

 The aspirational reference group refers to those

others against whom one would like to compare
oneself.
 For example, many firms use athletes as
spokespeople, and these represent what many
people would ideally like to be.
  Associative reference groups include people
ASSOCIATIVE FACTORS who more realistically represent the
individuals’ current equals or near-equals—
e.g., coworkers, neighbors, or members of
churches, clubs, and organizations.
 Paco Underhill, a former anthropologist turned
retail consultant and author of the book Why
We Buy has performed research suggesting that
among many teenagers, the process of clothes
buying is a two-stage process.
 In the first stage, the teenagers go on a
"reconnaissance" mission with their friends to
find out what is available and what is "cool."
This is often a lengthy process.
 In the later phase, parents—who will need to
pay for the purchases—are brought. This stage
is typically much briefer.
DISSOCIATIVE FACTORS
 Dissociative reference group includes people
that the individual would not like to be like.
 For example, the store literally named The Gap
came about because many younger people
wanted to actively dissociate from parents and
other older and "uncool" people.
 The Quality Paperback Book Club specifically
suggests in its advertising that its members are
"a breed apart" from conventional readers of
popular books.
COMPARE
THE
TWO ADS