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integrated marketing communication, the essential elements of marketing and promotion.
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Customer Psychology & Buyer Behaviour
Presented by - MUSTAHID ALIRoll # - 1334
Understanding Customer Buyer Behaviour
Why is it Important ????
It helps to understand the target Market & its Buying Behaviour.
It is more complex than it appears.
Individuals are not predictable, groups are.
3 key questions before any IMC can be carried out
1 Who is the buyer ???(target market profiles and decision-making
units)?
2 Why do they buy (or not buy) a particular brand or
product?
3 How, when and where do they buy?
Why buy a burger?
Pavlov’s dog effect.
McDonald’s logo acts as a stimulus to customers to remind them of food and arouse feelings of hunger.
Maslows Need effect
A teenage burger buyer prefers McDonald’s because friends hang out there and it feels nice to be in with the in-crowd.
Choice is often influenced
By familiarity with the brand or sometimes the level of trust in a
brand name.
Front-of-mind Awareness.
Who is the customer?
Many organizations do not know who their customers are.
Companies spend a lot of time and effort constantly researching and analyzing exactly who is their target market (in great detail)
Who knows you’re a dog online? (25 y male, 21 f)Guy from new york girl frm miami, meet at JFK……..
50% British companies do not know who their customers are?
Decision-making units
Several individuals are involved in any one person’s decision of purchasing a product
(Eg: Choice of a Family Car)
Why do they buy?
Customers do not even know the real reasons they buy
Some reasons are rational, and some are emotional
The split between the two is called the emotional–rational dichotomy (Clash)
UK customers
Are prepared to pay 800 per cent more for the ‘The Real thing’
A 2-litre bottle of Coca-Cola 1.2 pounds while on same shelf Asda will sell for .15 pounds.
Coca-Cola’s ‘core concept is product engagement
Customers prefer Coca-Cola despite High Price
Kevin Roberts CEO of Saatchi & Saatchi says….
80 % of decisions are Emotional
Rational Decision making
Conclusion
Emotional decision making Action
There’s an Emotional
connection through the
packaging, advertising and
through your memory that you
make
Americans may buy iPod - to listen to their favourite music without being disturbed by others
Japanese buy iPods to listen to their favourite music without disturbing others.
Customers Buythe same product for different
reasons.
Sigmund Freud
Suggested that the mind was like an iceberg
The tip represents the conscious part of the mind while the greater submerged
part is the unconscious.
Even long-forgotten childhood experiences
can affect Buying behaviour
Penn (4 big ideas in brain science)
Unconscious mind accounts for most of what we think, feel & do.
Conscious reasoning may account for only a small part of our ‘thinking.
Emotion precedes our conscious feelings and works in tandem with rational thinking to help us make (better)
decisions.
The interconnectedness of the thinking and
feeling parts of the facilitates
the interaction of rationality & emotion in
Decision making….
Marketers have to know their
customersbetter than the customers know
themselves.
Before launching its Fresh & Easy chainA team of 20 executives was dispatched to the
United States
The company hired a team of anthropologists to live with consumers for 2 weeks and analyze what they
bought and why?
It also built a mock store and asked selected customersto try it.
Tesco
Tesco discovered that US consumers
were less bothered by the selection of
wines on offer, but wanted better-quality
meat than UK consumers.
What customers are buying & not buying?
Young mothers bought fewer baby products in its stores because they trusted pharmacies more.
So Tesco launched Baby Club to provide expert advice and targeted coupons.
Survey at Tesco (UK)
Results
Its share of baby product sales
in the UK grew from 16% to 24% over 3 years.
New task buying - The organization has no experience of the product or service and is buying it for the first time. Modified rebuy - Situation is where the industrial buyer has some experience of the product or service.
Straight rebuy - is where the buyer, or purchasing department, buys on a regular basis.
How do they buy?
Surprisingly many customers trust a website more than a person.
People trust well-known and well-respected brands
In the UK, several major brands score higherin trust than the church and the police.
Trust is increasingly important.
Well managed brands are trusted as long as their promise is never broken.
How does it feel when a website remembers your name?
And when it remembers your preferences?
It seems customers are happy to have unconscious relationships with brands.
Trust
Relationship
What is it called when people visit to the website again & again?
Remember, the 2nd visit is the start of the
Relationship.
Buying Process for High Involvement Purchase
Attitudes towards high/low involvement purchases
Attitudes towards low-involvement brands
can be formed after the brand experience.
In high-involvement purchases attitudes are formed after awareness but before
any purchasing behavior actually occurs.
Relief purchases require a more of a rational approach
Reward purchases is more of a
emotional approach.
Marketers need to understand their customers
buying process, whether online, offline or a mixture
of both.
Response Hierarchy Model
Black-box models
Messages and images are not always perceived in the manner intended by the advertiser.
Perception is selective & biased by Motivation.
We see what we want to see.
Colour affects our perception (Red is a colour that makes food smell better.)
Perception
Simple test on Perception
Smokers can you recall exactly what the health warning says on the side of their packet of
cigarettes?
Very Few will be able to tell you the exact words.
Smokers screen out messages or stimuli that may cause dis-comfort, tension or cognitive dissonance
It causes discomfort every time a cigarette is taken, since the box will give the smokers an unpleasant
message.
In order to reduce this tension, the smokers have two options:
1) Change behaviour (stop smoking) 2) Screen out the message and continue the behaviour (smoking).
Humans are conditioned by music
High tempo music in fast food restaurants encourages faster knife and fork activity,
leading to quicker table turnover.
Customers buy more expensive wines in a retail
environment playing classical music rather than
pop music.
Younger shoppers spend more time in a retail environment playing loud
music
Shoppers aged 50 and over spend more in an environment with quiet
background music.
Maslow’s Hierarchy Needs
Which communications tools do what??
Conclusion
Buying behaviour is complex.
There are many different approaches to buying models.
Marketers need a continual feed of information on customer behaviour..
Emotional influences in decision making are still dominant in B2C and exist in B2B markets
Marketers must understand how the intervening
psychological variables influence buyer
behaviour.