Consumer behavior

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  • Identify the major attributes & benefits that customers valueAssess the quantitative importance of the different attributes & benefitsAssess the companies & competitors performancesExamine CustomersMonitor customer values overtime
  • CLV describes the net present value of the stream of future profits expected over the customer’s lifetime purchasesUsed for short term, brand building marketing activities that help in increasing customer loyalty
  • Understanding Perception & Know how of the customers
  • Consumer behavior

    1. 1. Customer Know-How Strategy & Satisfaction Competitive AdvantageByP.Soma GiriDM-o6-035
    2. 2. Those activities directly involved in obtaining , consuming anddisposing of products and services, including the decision processesthat precede and follow these actions‘You cannot take the consumer for granted any more’Therefore a sound understanding of consumer behavior is essential forthe long run success of any marketing programOut of 11000 products launched by 77 companies, only 56% arepresent five years later – Kuczmaski & AssociatesOnly 8% of new product concepts offered by 112 leading companiesreached the market. Out of this 83% failed to reach marketing objectives
    3. 3. Quality Services Cost Comfort levels Safety Reliability Customer PreferencesMaintenance Spare Parts Cost Look & Feel Fuel Efficiency Brand Image
    4. 4. Modern Customer-Oriented Organization Chart Top Management Middle Management Frontline People Customers
    5. 5. CustomerPerceived Value A new product must satisfy consumer needs, not the needs and expectations of management
    6. 6. Measuring Customer Lifetime C1 C2 C3 HighlyP1 profitable + + + ProfitableP2 + UnprofitableP3 - - HighlyP4 Unprofitable - High profit Mixed-Bag Losing customer customer Customer
    7. 7. Marketing Stimuli Other StimuliProduct & Services Model of EconomicPrice Consumer Behavior TechnologicalDistribution PoliticalCommunications Cultural Consumer Consumer Psychology Characteristics Motivation Cultural Perception Social Learning Personal Memory Buying Decision Purchase Decision Process Stimulus – ads, products, hunger pangsProblem recognition Product ChoiceInformation Search Brand Choice Response – physical/mental reaction toEvaluate alternatives Dealer Choice the stimulusPurchase Decision Purchase amountPost purchase Purchase timing Intervening variables – mood,behavior Payment method knowledge, attitude, values, situations…
    8. 8. ProblemRecognition Self actualization Needs (Self development)Information Search Esteem Needs (Self Esteem, recognition, status)Evaluation ofAlternatives Social Needs (sense of belonging, love) Purchase Decision Safety Needs (security, protection)Post purchase Physiological Needs Behavior (Food, water, shelter)
    9. 9. Total Set Awareness Set Consideration Set Choice Set DecisionApple AppleDell Dell AppleHPToshibaCompaq HP Toshiba Dell Toshiba Apple Dell ? CompaqNEC
    10. 10. Customer Centered Companies &Competitor Centered Companies

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