Customer Psychology & Buyer
Presented by - MUSTAHID ALI
Roll # - 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
2 Why do they buy (or not buy) a particular brand or
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.
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?
Several individuals are
involved in any one person’s
decision of purchasing a
(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
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
Kevin Roberts CEO of Saatchi & Saatchi says….
80 % of decisions are Emotional
Rational Decision making
Emotional decision making
There’s an Emotional
connection through the
and through your
memory that you make
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.
Suggested that the mind was like an iceberg
The tip represents the conscious part of the
mind while the greater submerged part is the
Even long-forgotten childhood experiences
can affect Buying
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
feeling parts of the
the interaction of rationality &
Marketers have to
know their customers
better than the
Before launching its Fresh & Easy chain
A team of 20 executives was dispatched to the
The company hired a team of anthropologists to live with
consumers for 2 weeks and analyze what they bought and
It also built a mock store and asked selected customers
to try it.
Tesco discovered that US
were less bothered by the
wines on offer,
but wanted better-quality
meat than UK consumers.
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.
Its share of baby product
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 first time.
Modified rebuy - Situation is where the industrial
buyer has some experience of the product or
Straight rebuy - is where the buyer, or purchasing
department, buys on a regular basis.
Trust is increasingly important.
Surprisingly many customers trust a website
more than a person.
People trust well-known and well-respected
In the UK, several major brands score higher
in trust than the church and the police.
Well managed brands are trusted as long as their
promise is never broken.
How does it feel when a website remembers your
And when it remembers your preferences?
It seems customers are happy to have unconscious
relationships with brands.
What is it called when people visit to the website
again & again?
Remember, the 2nd visit is the start of the
Attitudes towards high/low involvement
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
require a more of a
Reward purchases is
more of a
Marketers need to
understand their customers
buying process, whether
online, offline or a mixture
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.)
Simple test on Perception
Smokers can you
recall exactly what the health
warning says on the side of their packet of
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
In order to reduce this tension, the smokers have
1) Change behaviour (stop smoking)
2) Screen out the message and continue the
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
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.
Buying behaviour is complex.
There are many different approaches to buying models.
Marketers need a continual feed of information on
Emotional influences in decision making are still dominant
in B2C and exist in B2B markets
Marketers must understand how the
psychological variables influence buyer