Transcript Customer behavior

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:
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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
Chapter 4 & 5
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Chapter 4 – Culture & Subculture
• We need to understand the role that cultures and sub
cultures play in influencing customer behavior
• Culture is the broadest of social influences that a
Marketer will have deal with.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Culture & Subculture
Nature of culture
•Subculture
Measurement of
culture
•Needs & Culture
•Content of culture
SAF core values
•Learning & culture
•Cust fieldwork
•Sociomonitor
•En/ acculturation
•Measuring values
•Language, symbols and
rituals
•Instruments
•Culture & society
•Dynamic nature of
culture
•Value survey
•LOV
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
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
Implications for marketers
• Culture is often expressed in material objects such as
clothing, Jewelry, cars, computers, Music systems etc.
• Ineffective strategies will be formulated by not adapting
to the specific culture that is predominant in your target
market.
• Cultural shifts is important environmental changes that
might make your strategy obsolete.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Subculture
• A distinct cultural group that exists as an identifiable
segment within a larger more complex society.
• Language groups
• Religious groups
• Ancestral cultures
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Needs and culture
• Culture and Needs are closely linked.
• Culture can create needs - Direct or indirect
• Culture can also influence the satisfaction of needs
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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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
En / Acculturation
• Enculturation – the learning of one’s own culture
• Acculturation – learning of new or foreign culture
– Marketers need to do this continuously
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Language, symbols and Rituals
•
Language
– Most common expression of a specific culture.
– Creates shared meaning
– NB to remember the symbolic nature of language – Its not what I say but “how” I
say it…
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Symbols
– Anything that stands for something else.
– Brands are symbols
– Image is symbols
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Rituals
– Symbolic activity consisting of a series of steps occurring in a fixed sequence
and repeated over time
– Public / Private
– Often formal and scripted
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Culture and society
• Cultural characteristic - shared by a significant portion of
a society
• Social institutions transmit elements of culture.
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Family
Educational institutions
Houses of worship
Mass media
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Dynamic nature of culture
• Culture changes continuously and marketers should be
aware of what's happening at all times
• Aspects to reconsider
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Why customers are now doing what they are
Who the customers and who the consumers are
When do they purchase
How and were the media can reach them
What is new on the product front
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Measurement of culture
• Content analysis
– Verbal, pictorial and written communications.
– Objective way of determining changes in culture
• Customer fieldwork
– Small sample of consumer are monitored in natural environment,
without being aware of it and focus on behavior.
– Focus groups and Interviews are also used.
• Rockeach
• List of Values (LOV)
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Measurement of culture
Life is better in the sun
When the sun shines, life feels better, brighter colors,
warmth on our skin, freedom to be outside and importantly
a healthy color that makes us look and feel better
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Clarins has made Sun Protection a priority. As
a leading Skin Care authority, we consider it
essential to safeguard sun exposed skin
because the sun is both a pleasure and a risk.
Smart sun protection is without question,
imperative.
Measurement of culture contin…
• Measuring values
– Values are the fundamental force that drives markets – Zetterberg
– Indicate how people wish to live and can be expressed in the
marketplace.
– Knowledge of values are important for marketers:
• Understand why customers behave in specific way.
• Predict the products customers will use
• Predict the Marketing channel that will be most effective
• Values are often used in Marketing segmentation models
– VALS, Rokeach value survey, Nine nations of America, PRIZM
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
“Nine Nations of America”
Values
New
England
Dixie
The Islands
Mex America
Ecotopia
Security
21.7
23.3
15.6
17.3
19.6
Relationship with
others
14.2
13.8
9.4
18
18.5
Being respected
8.3
11
15.6
2.7
4.2
Fun, enjoyment
5
3.5
9.4
5.3
6.9
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
“PRIZM” – Claritas
( www.claritas.com )
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Lifestyle segmentation that deals with regional lifestyles at micro level.
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Principle – People with similar lifestyles tend to life (Work) near one another.
Divided USA into 14 groups and 66 segments
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
“PRIZM”- Urban uptown
Young digerati
Tech Savvy singles and couples. Stays in
Fashionable neighborhoods on urban fringe.
Areas are filled with trendy boutiques, health
clubs & casual restaurants
Money & Brains
High income, degrees & sophisticated tastes. City
dwellers, married with few kids and stay in houses
with neatly manicured gardens
Bohemian mix
Young, urban, mobile. Liberal lifestyles Across
race lines, mostly liberal and progressive. Early
adopters
Cosmopolitans
Immigrants and descendants of multi cultural
backgrounds. Married and with large families.
Affluent from working hard at multiple jobs
American Dreams
More than half is from Hispanic, African American
or Asian descent. Multicultural and lingual.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
SAF core values
• Geographically dispersed society with many different
cultures.
• Sociomonitor is SAF values survey that gives us a tool to
measure values and the potential impact on consumer
behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Sociomonitor
Innovatives – 24% Urban Whites
•Individualistic
•Open to change
•Status through ownership
Conservatives – 36% of Urban Blacks
•Religious
•Family oriented
•Sense of National identity
•Concern for community
Responsibles – 25% of Urban Whites
•Traditional values
•Collectivism
•Reluctance to accept change
Progressives – 31% of Urban Blacks
•Individualistic
•Self centered
•Physical health focused
•Self improvement focused
•Antagonistic to authority
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
SAF Core Values
• Young and Rubicam model
• Reaching critical mass – SABC survey
• SAF core values
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Achievement and success
Activity
Efficiency / Practicality
Progress
Material comfort
Individualism
Freedom
Conformity
Humanitarianism
Youthfulness
Fitness and health
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Summary
• Culture gives society its distinctive character and
personality
• The impact of Culture is natural and ingrained.
• Culture is acquired through formal / informal learning and
Tech training
• Culture is communicated through language and symbols
• Marketers can measure culture.
• SAF core values can be identified.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Chapter 5 – Reference groups and
Social class
• Reference groups – any person or group that serves as
a point of comparison / reference for an individual
customer in forming certain values, attitudes and
behavior patterns
• Social class – Group of people in a country who are
considered basically equal in status or community
esteem, who socialize on a regular basis formally and
informally and who share behavior patterns
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Reference groups & Social class
Reference groups
•Types
•How marketers use
groups
•Determinant of
reference group
influence
Social class
•Marketing
implications
•Technology
•Socio-cultural trends
•Government
•Reference group and
advertising
Hugo van Zyl
083-629 2069
[email protected]
Trends in Customer
behavior
Marketing 1B
Customer behavior
Reference groups
• Types of reference groups
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Formal / Informal (Clubs / Families)
Primary / secondary (Class groups / soccer supporters)
Membership / Non membership ( Church / Believer)
Aspirational reference groups ( Jet set)
Dissociative reference groups (Smokers)
• How marketers use groups
– Information (Education)
– Reward / Punishment (Enhanced image / Exclusion from group)
– Identification influence (Association with group)
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Determinants of Reference group
influence
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Visibility
Level of necessity
Commitment to group
Relevance of activity
• Reference groups in Advertising
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Admiration
Empathy
Aspiration
Recognition
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Social class
• Marketing implications of Social class.
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Consumers buy products that communicate their social status
Based on concept of similarity
Social class determines media usage
Education determines channel of media preference
• LSM – Living standards measure
– Category 1-10
– Based on access to Flush toilets, Microwaves, Retail credit
cards, Fridges, TVs, Hot running water
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Social class
• Membership of a particular class
– Products demonstrate membership of social class
– Car, Music centre, Suit/clothing, Education, TV, Cell phone.
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
Trends in customer behavior
• Technology
– Cell phones
– Internet
• Socio –cultural
– Less traditional households
– HIV/Aids
– Crime
• Government
– Tobacco control act
– Lottery license
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Summary
• Types of reference groups
• Value lies in Info, rewards and identification value that
customers get from these groups
• Social class plays a major role in purchase decision
making process
• Trends influence behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior