Damelin - Cust behavior Chp 6 - Week 4

Document Sample
Damelin - Cust behavior Chp 6 - Week 4 Powered By Docstoc
					               Customer behavior




Hugo van Zyl
083-629 2069
                               Marketing 1B
hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
                         Pricing Value
• Benefits:
  –   Functional benefits
  –   Social benefits
  –   Personal benefits
  –   Experiential benefits




  Hugo van Zyl
  083-629 2069
                                 Marketing 1B
  hugo@changesolutions.co.za   Customer behavior
                          Pricing Value

• Costs:
  –   Monetary costs
  –   Temporal costs
  –   Psychological costs
  –   Behavioral costs




   Hugo van Zyl
   083-629 2069
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
                         Quiz results




Hugo van Zyl
083-629 2069
                               Marketing 1B
hugo@changesolutions.co.za   Customer behavior
                        Class results



                    Papers   Average mark


                        20               3




Hugo van Zyl
083-629 2069
                               Marketing 1B
hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
                  Learning and Culture
• Beliefs, values and customs are acquired from an early
  age through:
   –   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
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
External influences
     - Cptr. 4/5
                                Recap
                                                         Market
•Culture / Subculture
                                                     characteristics –
•Reference groups                                        Chpt. 3
•Social class                                       •Climate
•Family                                             •Economy
                                                    •Government
          Internal influences                       •Technology
            – Chpt 7,8,9,10
          •Perception
                                                             Personal
          •Learning
                                                          characteristics –
          •Motivation
                                                               Chpt 6
          •Lifestyle
                                                        •Race
          •Attitudes
                                                        •Gender
          •Personality
                                                        •Age
          •Self concept


   Hugo van Zyl
   083-629 2069
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                    Marketing 1B
   hugo@changesolutions.co.za     Customer behavior
  Chptr 4 – Culture / Sub culture
• Nature of culture                          • Measurement of culture
   – Sub Culture                                    –   Content
   – Needs                                          –   Fieldwork
   – Learning                                       –   Values
   – En / Acculturation                             –   Value Measurement
   – Language, Symbols,
     rituals
   – Society
                                              • SAF Core Values
   – Dynamic nature of culture
                                                    – Sociomonitor




   Hugo van Zyl
   083-629 2069
                                  Marketing 1B
   hugo@changesolutions.co.za   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
     –   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
                                           Marketing 1B
     hugo@changesolutions.co.za          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
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
Characteristics of social classes in USA

Relative size             Group                                Description
                                                        Old money + Prominent rich
     1.5%               Upper class         Antiques, art, rare jewelry, luxury travel and designer
                                                                   products
                                                 Professionals, small business owners, senior
                       Upper middle                               managers.
    12.5%
                          class                  Community minded, socially aware and future
                                                                  orientated
                                                   Office workers, teachers, technicians.
                       Lower middle
     32%                                        Concept of hard work based here. Conforming
                          class
                                                     mindset, home / family orientated

                     Upper lower class        Blue collar workers. Concerned about Fin security.
     38%                                          Rely on salespeople for Purchase advice
                      (working class)
                                              Unskilled laborers, often illiterate. Good market for
                       Lower – lower
     16%                                      necessities and products that make the “moment”
                          class                                more enjoyable

  Hugo van Zyl
  083-629 2069
                                        Marketing 1B
  hugo@changesolutions.co.za          Customer behavior
                             Chapter 6

                       Personal characteristics




Hugo van Zyl
083-629 2069
                                 Marketing 1B
hugo@changesolutions.co.za     Customer behavior
          Personal characteristics

                                        Gender
           Race                                                   Age
                               •Role of woman
•Race & Products                                        •Definition
                               •Role of Men
•Marketing                                              •Why is it important
communications
                                                        •Subcultures
•LSM




  Hugo van Zyl
  083-629 2069
                                      Marketing 1B
  hugo@changesolutions.co.za        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.
   –   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
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
   Race / ethnic segmentation




Hugo van Zyl
083-629 2069
                               Marketing 1B
hugo@changesolutions.co.za   Customer behavior
                             Yes vs. No
               Yes                                 No




    Our purpose as marketers are to satisfy customers needs….

Hugo van Zyl
083-629 2069
                                 Marketing 1B
hugo@changesolutions.co.za     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
                                    Marketing 1B
    hugo@changesolutions.co.za    Customer behavior
Hugo van Zyl
083-629 2069
                               Marketing 1B
hugo@changesolutions.co.za   Customer behavior
                                 Gender
    Category                             Men                        Woman

                              Single men 25-34 years
                                                            Buy fresh food ,diet food
       Food                  spend more on food out of
                                                                   and drinks
                                home than woman

                             White, black, blue, grey and   Fabric exclusive use. Full
    Clothing                            brown                  spectrum of colors

                               Construction concerns,
                                                             Functional use, closet
    Housing                  heating cooling and building
                                                             space, size of kitchen
                                       material

                               Focus on entertainment
  Decorating                            area
                                                            Kitchen and living room


   Weddings                    Reception is key event        Ceremony is key event

Hugo van Zyl
083-629 2069
                                       Marketing 1B
hugo@changesolutions.co.za           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
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
                                Gay market
• DINKY - Double income , no kids
• Brand conscious and loyal
• Well traveled and read




   Hugo van Zyl
   083-629 2069
                                     Marketing 1B
   hugo@changesolutions.co.za      Customer behavior
Hugo van Zyl
083-629 2069
                               Marketing 1B
hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                          Marketing 1B
   hugo@changesolutions.co.za           Customer behavior
                   Children (Millennials)
•   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
                                   Marketing 1B
    hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
                  Teens - Generation Y
• Due to high level of computer and internet literacy:
    –   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
    –   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
                                        Marketing 1B
   hugo@changesolutions.co.za         Customer behavior
        Teens - Generation Y - SAF
•   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
                                   Marketing 1B
    hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   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
                                  Marketing 1B
   hugo@changesolutions.co.za   Customer behavior
                Famous Gen X’ers




Hugo van Zyl
083-629 2069
                               Marketing 1B
hugo@changesolutions.co.za   Customer behavior
                         Baby boomers
•   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
                                   Marketing 1B
    hugo@changesolutions.co.za   Customer behavior
          Famous Baby boomers




Hugo van Zyl
083-629 2069
                               Marketing 1B
hugo@changesolutions.co.za   Customer behavior
                                Seniors
• Living longer and able to spend longer
• Values:
   –   Autonomy
   –   Connectedness
   –   Altruism
   –   Personal growth

• Concept of perceived age

• Gerentographics
   –   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
                                    Marketing 1B
   hugo@changesolutions.co.za     Customer behavior

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:6
posted:9/21/2011
language:French
pages:43