Transcript Chapter 6 - changesolutions.co.za

Customer behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Quiz
1. List the 4 benefits that a consumer could get when
making a purchase (4+1)
2. List the 4 types of costs that a consumer could have to
carry to when making a purchase (4+1)
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Pricing Value
• Benefits:
–
–
–
–
Functional benefits
Social benefits
Personal benefits
Experiential benefits
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Pricing Value
• Costs:
–
–
–
–
Monetary costs
Temporal costs
Psychological costs
Behavioral costs
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Quiz results
Week 3
7
6
5
Marks
4
3
2
1
0
0
1
2
3
4
5
# Students
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
6
7
8
9
10
Class results
Papers
Average mark
20
3
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Quiz
• Name the 4 “channels” through which values, beliefs and
customs can be acquired.
• Explain the process under each of them briefly
• 4+4+2 bonus points
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Learning and Culture
• Beliefs, values and customs are acquired from an early
age through:
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–
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Playing
Schooling
Sport
Family / home life
• 3 distinct forms of learning
– Formal learning – Parents teaching a child how to behave
– Informal learning – child imitating the behavior of others
– Technical learning – Teachers / Lecturers instruct
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
External influences
- Cptr. 4/5
Recap
Market
characteristics –
Chpt. 3
•Culture / Subculture
•Reference groups
•Social class
•Climate
•Family
•Economy
•Government
•Technology
Internal influences
– Chpt 7,8,9,10
•Perception
Personal
characteristics –
Chpt 6
•Learning
•Motivation
•Lifestyle
•Race
•Attitudes
•Gender
•Personality
•Age
•Self concept
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Chptr 3 – Market characteristics
• Characteristics of SAF population
– Individuals
• Population, Age distribution, Geographic distribution, education
levels, Labor market, unemployment, formal/informal sectors,
Migrant workers
– Households
• Housing, Water, energy, Telephones, Sanitation, Healthcare,
Household income
– Other factors
• Climate, Economic Conditions, Government, Technology
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Chptr 4 – Culture / Sub culture
• Nature of culture
• Measurement of culture
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–
–
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Sub Culture
Needs
Learning
En / Acculturation
Language, Symbols,
rituals
– Society
– Dynamic nature of culture
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–
–
–
• SAF Core Values
Hugo van Zyl
083-629 2069
[email protected]
Content
Fieldwork
Values
Value Measurement
Marketing 1B
Customer behavior
– Sociomonitor
Nature of culture
•
Culture – sum total of beliefs, values, customs that serve to direct the
customer behavior of members of a particular society
•
Beliefs – Very large number of verbal and mental statements that reflect a
person’s particular knowledge and assessment of something
•
Values – deep seated motivations instilled from culture
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•
Few in number
Guide for behavior
Difficult to change
Not linked to specific objects or situations
Widely accepted by members of society
Customs – modes of behavior that is culturally approved or accepted ways
of behaving in specific situations
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Nature of culture
• Sub culture – Distinct cultural group that exists as an
identifiable segment within a larger group – Language,
Religion
• Needs & Culture – 2 way process of creation
• Learning – Formal, Informal , Technical
• En / Acculturation
• Language – Most common expression of specific culture
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Nature of Culture
• Symbols – Anything that stands for something else –
Images and Brands!!
• Rituals – Symbolic activity that consists of a series of
steps occurring in fixed sequence and repeated over
time.
• Society and social institution play a very important role in
Culture
• Culture is a dynamic process that is constantly changing.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Chptr 5 – Reference group / Social
class
• Reference groups
–
–
–
–
Types
Marketers
Influence
Advertising
• Social Class – Marketing implications
• Trends in customer behavior – Tech, Socio-cultural, Gov.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Types of reference groups
• Formal groups – Clearly defined structure
• Informal groups – No formal rules
• Primary groups – face to face interaction
• Secondary reference groups – no face to face interaction
• Membership groups – part of a group and model behavior
• Non membership groups – Not part of but do model behavior
• Aspirational groups – Rich or famous?
• Dissociative groups – Avoid and reject so base behavior on opposite
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Reference group influence
• Group influence – strong when product or brand is
visible to group
• Reference group influence – higher when necessity of
item is lowest
• Group norms – more commitment a person feels to
group the higher the level of conformity
• Group norms – Relevance of particular activity will
determine level of conformance
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Social class
• Definition - Social class refers to the hierarchical
distinctions between individuals or groups in societies or
cultures
• Social class is determined:
– Self attribution
– Repuational approach
– Objective measures - Income
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Characteristics of social classes in USA
Relative size
Group
Description
Upper class
Old money + Prominent rich
Antiques, art, rare jewelry, luxury travel and designer
products
12.5%
Upper middle
class
Professionals, small business owners, senior
managers.
Community minded, socially aware and future
orientated
32%
Lower middle
class
Office workers, teachers, technicians.
Concept of hard work based here. Conforming
mindset, home / family orientated
38%
Upper lower class
(working class)
Blue collar workers. Concerned about Fin security.
Rely on salespeople for Purchase advice
16%
Lower – lower
class
Unskilled laborers, often illiterate. Good market for
necessities and products that make the “moment”
more enjoyable
1.5%
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Chapter 6
Personal characteristics
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Personal characteristics
Gender
Race
•Race & Products
•Marketing
communications
•Role of woman
•Role of Men
•Definition
•Why is it important
•Subcultures
•LSM
Hugo van Zyl
083-629 2069
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Age
Marketing 1B
Customer behavior
Race / Ethnicity
• Race – Genetic heritage group a person is born into
• Ethnicity – patterns of association and identification with
common national or cultural origins of a subgroup.
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Self perpetuating population
Shared cultural values
Common language
Members define themselves as part of a subgroup
• Is segmentation based on Race/Ethnic lines
appropriate?
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Race / ethnic segmentation
Hugo van Zyl
083-629 2069
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Marketing 1B
Customer behavior
Yes vs. No
Yes
No
Our purpose as marketers are to satisfy customers needs….
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Kwanzaa
Kwanzaa is an African-American holiday about the festival of the first harvest
of the crops. It begins on December 26, and lasts for seven days. The name
Kwanzaa, sometimes spelled Kwanza, comes from a phrase which means
"first fruits" in Swahili, an East African language.
Kwanzaa was created by Dr. Maulana Karenga in 1966. It is celebrated
through singing, speaking, dancing and reciting traditional. Stories. Kwanzaa
is built on seven principles that are commonly known as "Nguzo Saba". These
principles are:
•umoja - unity
•ujima - collective work and responsibility
•nia - purpose
•imani - faith
•kujichagulia - self-determination
•ujamaa - cooperative economics
•kuumba - creativity
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Gender
Category
Men
Woman
Food
Single men 25-34 years
spend more on food out of
home than woman
Buy fresh food ,diet food
and drinks
Clothing
White, black, blue, grey and
brown
Fabric exclusive use. Full
spectrum of colors
Housing
Construction concerns,
heating cooling and building
material
Functional use, closet
space, size of kitchen
Decorating
Focus on entertainment
area
Kitchen and living room
Weddings
Reception is key event
Ceremony is key event
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Changing role of woman
• Larger part of population than men
• More woman in Med school than men
• Laws such as BBBEE act drive woman into more senior /
exco roles.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Changing role of men
• Increase role of woman in workplace has forced men to
adopt.
• “Metro sexual” male category
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Gay market
• DINKY - Double income , no kids
• Brand conscious and loyal
• Well traveled and read
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Age
• Chronological / Biological and Psychological age
• Why age is important:
– Needs and wants vary
– Lifetime value of customers
– Shifts in demands and values
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
American demographics
Generation
Year Born
Age in 2000
% of Pop
GI Generation
+1930
71+
9%
Depression era
30-39
61-70
7%
War Babies
40-45
55-60
6%
Baby boomers
46/64
36-54
28%
Gen X
65-76
24-35
16%
Gen Y
77-94
6-23
26%
Millennials
95+
0-5
8%
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Children (Millennials)
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Big spenders
Sweets, Clothes, Entertainment, Toys
Susceptible to adverts
Influence parental shopping patterns
Concerns about children’s ability to “defend” themselves
against advertising campaigns
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Teens - Generation Y
• Born in 80’s
• Global communication (Internet users), Focus on materialism
• Very sophisticated and seasoned customers
• Sophisticated decision making skills as they shop from a much
earlier age and mostly unaccompanied
• Brand loyalty once established tend to last well into adulthood
• Selection of images, symbols, issues, and media is critical for the
marketers
• Ethnic and racial groups are mixed and also represented as such in
ads
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Teens - Generation Y
• Due to high level of computer and internet literacy:
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Preferences and demands are transient
Demand customization
Due to wide availability they change minds often.
Prefer self trial than marketing promises.
Not dazzled by technology
• Marketing rules for Gen Y
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Don’t talk down
Don’t try to be what ur not
Entertain them
Show empathy
Customize and interact
Try and get to know them.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Teens - Generation Y - SAF
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•
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45% - Nguni languages
52% female
65% - Gauteng, KZN, WC , EC
20% - Have matric
• School pupils
• Univ. students
• Young working adults
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Young Adults – Generation X
• Born – mid ’60’s – mid 70’s
• Difficult economic times
• Disillusioned and less materialistic than previous
generations
• Reflected in music such as Pearl Jam, Guns n Roses
and RHCP
• Fashion – Grunge look, Earrings and tattoos
• Perception is of a “slack” generation.
• Found success and achievement through technology
• Tend to leave home later than previous generations
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Young Adults – Generation X
• Pre-occupation with shopping and material possessions
• Concept of Mall rats is Gen X
• Heavy exposure to TV – Media knowledgeable and
Customer wise generation
• Cynical to “obvious” marketing campaigns but respond to
“clever” campaigns
• Respond to marketing aimed at them specifically, talking
their language and suing their style and images
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Famous Gen X’ers
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Baby boomers
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Generation born after WW2
Boom in the birthrate till mid 1960’s
Characterized by Family and home orientation
High education levels, high income and dual career
households
Time pressure was the norm.
TV shaped their lives
Rock and roll – Beatles, The Who, Jim Morrison
Drugs
BB are now the aging generation and have an impact on
discretionary spend.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Famous Baby boomers
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Seniors
• Living longer and able to spend longer
• Values:
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Autonomy
Connectedness
Altruism
Personal growth
• Concept of perceived age
• Gerentographics
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Healthy indulgers – Focus on enjoying life
Healthy hermits – Withdrawn due to life events
Ailing outgoers – Positive despite life events
Frail recluses – Accepted aging and adjusted their life
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior