Customer Psychology & Buyer
Behaviour

Presented by - MUSTAHID ALI
Roll # - 1334
Understanding Customer Buyer Behaviour
Why is it Important ????
It helps to understand the target Market & its Buying Beha...
3 key questions before any IMC can be carried out
1 Who is the buyer ???
(target market profiles and decision-making
units...
Why buy a burger?
Pavlov’s dog effect.
McDonald’s logo acts as a stimulus to customers to
remind them of food and arouse f...
Choice is often influenced
By familiarity with the brand or sometimes
the level of trust in a brand name.

Front-of-mind
A...
Who is the customer?
Many organizations do not know who their customers are.

Companies spend a lot of time and effort con...
Decision-making units

Several individuals are
involved in any one person’s
decision of purchasing a
product
(Eg: Choice o...
Why do they buy?

Customers do not even know the real reasons they buy

Some reasons are rational, and some are emotional
...
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 whi...
Kevin Roberts CEO of Saatchi & Saatchi says….

80 % of decisions are Emotional

Rational Decision making

Emotional decisi...
There’s an Emotional
connection through the
packaging, advertising
and through your
memory that you make
Customers Buy
the same product for different reasons.
Americans may buy iPod - to listen to their
favourite music without ...
Sigmund Freud
Suggested that the mind was like an iceberg
The tip represents the conscious part of the
mind while the grea...
Penn (4 big ideas in brain science)

Unconscious mind accounts for most of what we think, feel & do.

Conscious reasoning ...
The interconnectedness of the
thinking and
feeling parts of the
facilitates
the interaction of rationality &
emotion in

D...
Marketers have to
know their customers
better than the
customers know
themselves.
Tesco
Before launching its Fresh & Easy chain
A team of 20 executives was dispatched to the
United States
The company hire...
Tesco discovered that US
consumers
were less bothered by the
selection of

wines on offer,
but wanted better-quality

meat...
Survey at Tesco (UK)

What customers are buying & not buying?
Young mothers bought fewer baby products in its
stores becau...
Results

Its share of baby product
sales
in the UK grew from 16% to
24% over 3 years.
How do they buy?

New task buying - The organization has no
experience of the product or service and is buying it
for the ...
Trust is increasingly important.
Surprisingly many customers trust a website
more than a person.
People trust well-known a...
Trust
Well managed brands are trusted as long as their
promise is never broken.
How does it feel when a website remembers ...
What is it called when people visit to the website
again & again?

Relationship

Remember, the 2nd visit is the start of t...
Buying Process for High Involvement
Purchase
Attitudes towards high/low involvement
purchases
Attitudes towards low-involvement brands
can be formed after the brand ex...
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
Perception
Messages and images are not always perceived in
the manner intended by the advertiser.
Perception is selective ...
Simple test on Perception
Smokers can you

recall exactly what the health
warning says on the side of their packet of
ciga...
It causes discomfort every time a cigarette is taken,
since the box will give the smokers an unpleasant
message.

In order...
Humans are conditioned by music
High tempo music in fast food restaurants
encourages faster knife and fork activity, leadi...
Younger shoppers spend more time in a retail
environment playing loud music

Shoppers aged 50 and over spend more in an
en...
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 f...
Marketers must understand how the
intervening
psychological variables influence buyer
behaviour.
Imc, marketing communication
Upcoming SlideShare
Loading in …5
×

Imc, marketing communication

436 views
277 views

Published on

integrated marketing communication, the essential elements of marketing and promotion.

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
436
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Imc, marketing communication

  1. 1. Customer Psychology & Buyer Behaviour Presented by - MUSTAHID ALI Roll # - 1334
  2. 2. 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. 3. 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?
  4. 4. 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.
  5. 5. Choice is often influenced By familiarity with the brand or sometimes the level of trust in a brand name. Front-of-mind Awareness.
  6. 6. 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?
  7. 7. Decision-making units Several individuals are involved in any one person’s decision of purchasing a product (Eg: Choice of a Family Car)
  8. 8. 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)
  9. 9. 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. Customers prefer Coca-Cola despite High Price Coca-Cola’s ‘core concept is product engagement
  10. 10. Kevin Roberts CEO of Saatchi & Saatchi says…. 80 % of decisions are Emotional Rational Decision making Emotional decision making Conclusion Action
  11. 11. There’s an Emotional connection through the packaging, advertising and through your memory that you make
  12. 12. Customers Buy the same product for different reasons. 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.
  13. 13. 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
  14. 14. 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.
  15. 15. The interconnectedness of the thinking and feeling parts of the facilitates the interaction of rationality & emotion in Decision making….
  16. 16. Marketers have to know their customers better than the customers know themselves.
  17. 17. Tesco Before launching its Fresh & Easy chain A 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 customers to try it.
  18. 18. Tesco discovered that US consumers were less bothered by the selection of wines on offer, but wanted better-quality meat than UK consumers.
  19. 19. Survey at Tesco (UK) 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.
  20. 20. Results Its share of baby product sales in the UK grew from 16% to 24% over 3 years.
  21. 21. How do they buy? 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.
  22. 22. Trust is increasingly important. 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 higher in trust than the church and the police.
  23. 23. Trust 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.
  24. 24. What is it called when people visit to the website again & again? Relationship Remember, the 2nd visit is the start of the Relationship.
  25. 25. Buying Process for High Involvement Purchase
  26. 26. 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.
  27. 27. Relief purchases require a more of a rational approach Reward purchases is more of a emotional approach.
  28. 28. Marketers need to understand their customers buying process, whether online, offline or a mixture of both.
  29. 29. Response Hierarchy Model
  30. 30. Black-box models
  31. 31. Perception 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.)
  32. 32. 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
  33. 33. 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).
  34. 34. 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.
  35. 35. 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.
  36. 36. Maslow’s Hierarchy Needs
  37. 37. Which communications tools do what??
  38. 38. 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
  39. 39. Marketers must understand how the intervening psychological variables influence buyer behaviour.

×