How to Leverage Behavioral Science Insights for Direct Mail Success
Analyzing customer & business market
1.
2. 2nd Group
Nira Puspitasari 110810251009
Andy Dinastyo 110810251010
Marza Ramadhan 110810251011
Mahadiyyah Rahmi 110810251012
Eka Ardha N. 110810251013
3. • Consumer behavior is the study of how
individuals, groups, and organizations
select, buy, use, and dispose of
goods, services, ideas, or experiences to
satisfly their needs and wants.
• A consumer’s buying behavior is influenced by
cultural, social, and personal factors.
What influences consumer behavior?
4. Cultural Factors
• Cultur
• Subculture
• Social class
They are particularly important
influences on consumer buying
behavior.
6. Personal Factors
A buyer’s decisions are also influenced
by personal characteristics. There are
include:
a. the buyer’s age and stage in the
life cycle
b. occupation and economic
circumstances
c. personality and self-concept
d. lifestyle and values.
11. Selective Attention
It has been estimated that a person is
exposed to over 1,500 ads or brand
communi-cations a day. Because a
person cannot possibly attend to all of
these, most stimuli will be screened
out—a process called selective
attention.
12. Selective attention means
that marketers have to work
hard to attract consumers’
notice.
People are more likely to
notice stimuli that relates
to a current need.
13. Selective Distortion
Selective distortion is the
tendency to interpret information in a
way that will fit our preconceptions.
Consumers will often distort
information to be consistent with
prior brands and product beliefs.
14. Selective Retention
• People will fail to register much
information to which they are
exposed in memory, but will tend to
retain information that supports their
attitudes and beliefs.
• Because of selective retention, we are
likely to remember good points about
a product we like and forget good
16. FIGURE 6.4 CONSUMER BUYING PROCESS
Problem Recognition
Information Search
Evaluation
Purchase Decision
Postpurchase
Behavior
17. THE BUYING PROCESS STARTS WHEN
THE BUYER RECOGNIZES A PROBLEM OR
NEED.
THE NEED CAN BE TRIGGERED BY
INTERNAL OR EXTERNAL STIMULI.
MARKETERS NEED TO IDENTIFY THE
CIRCUMSTANCES THAT TRIGGER A
PARTICULAR NEED SO THAT THEY CAN
DEVELOP MARKETING STRATEGIES THAT
TRIGGER CONSUMER INTEREST.
Problem Recognition
18. Evaluation of Alternatives
No single process is used by
all consumers or by one
consumer in all buying
situations. The most current
models see the process as
cognitively orientated.
19. First, the consumer is trying to satisfy
a need.
Second, the consumer is looking for
certain benefits from the product
solution.
Third, the consumer sees each product
as a bundle of attributes with varying
abilities for delivering the benefits
sought to satisfy this need.
20. Purchase Decision
There are three such
choice heuristics
here:
• conjunctive heuristic
• lexicographic heuristic
• elimination-by-aspects
heuristic
Consumers may
perceive many
types of risk in
buying and
consuming a
product:
• Functional risk
• Physical risk
• Financial risk
• Social risk
21. Marketers must monitor post
purchase satisfaction, post purchase
actions, and post purchase product
users.
a.Post purchase use and disposal
b.Post purchase satisfaction
c.Post purchase actions
Post Purchase Behavior
22. Other Theories of Consumer Decision Making
1. Level of Consumer Involvement
2. Elaboration likelihood model
3. Low Involvement Marketing Strategies
4. Variety Seeking Buying Behavior
5. Decision Heuristics and Biases:
a. The availability heuristic
b. The representative heuristic
c. The anchoring and adjustment heuristic
6. Mental Accounting
Mental accounting is based on a set of key core
principles:
a. Consumers tend to segregate gains
b. Consumers tend to integrate losses
c. Consumers tend to integrate smaller losses with larger
gains
d. Consumers tend to segregate small gains from larger
losses.
7. Profiling the Costumer Buying Decision Process
23. Webster and Wind define
organizational buying as the decision
making process by which formal
organizations establish the need for
purchased products and services and
identify, evaluate, and choose among
26. Systems Buying and Selling
• One variant of systems selling is
systems contracting, where a
single supplier provides the buyer
with his entire requirement of MRO
(maintenance, repair, operating)
supplies.
• Systems selling is a key industrial
marketing strategy in bidding to build
large-scale industrial projects.
• With systems selling, customers
present potensial suppliers with a list
27. Participants in the Business
Buying Process
The Buying Center
• Initiators
• Users
• Influencers
• Deciders
• Approvers
• Buyers
• Gatekeepers
28. Buying Center Influences
o Buying centers usually include several participants with
differing interest, authority, status and persuasiveness and
sometimes very different decision criteria.
o Business buyers also have personal motivations, perceptions
and preferences that are influenced by their
age, income, education, job position, personality, attitudes
toward risk and culture.
o There are “keep-it-simple” buyers, “own-
expert” buyers, “want-the-best” buyers and
“want-everything-done” buyers. Some
younger, highly educated buyers are computer
experts who conduct rigorous analyses of
competitive proposals before choosing a supplier.
29.
There are four questions must known by business
marketer:
• Who are the major decision participants?
• What decisions do they influence?
• What is their level of influence?
What evaluation criteria do they use?
Small sellers concentarte on reaching the key buying
influencers. Larger sellers go for multilevel-in depth
selling to reach as many participants are possible.
Companies must rely more heavily on their
communications programs to reach hidden buying
influences and keep current customers informed.
Buying Center Targeting
30. The Purchasing / Procurement
Process
It’s includes of Purchasing Departments
Perceptions and Purchasing Organizations and
Administration.
Purchasing Department Perceptions
• In the past, purchasing department occupied a
low position in the management hierarchy, in spite
of often managing more than half he company’s
costs.
• These now, more strategically oriented purchasing
deparments have a misson to seek the best value
elevated them to “strategic supply
departments”, with responsibility for globla
sourching and partnering.
31. Stages in the Buying Process
Stages in the buying process are:
• Problem Recognition
• General Need Description and
Product Specification
• Supplier Search
• Proposal Solicitation
• Supplier Selection
32. Some companies handle price-oriented
buyers by setting a lower price but
establishing restrictive conditions :
- Limited quantities,
- No refunds,
- No adjustments, and
- No services.
Overcoming Price Pressures
33. Number of Suppliers
As part of the buyer
selection process, buying
centers must decide how many
suppliers to use. Companies are
increasingly reducing the
number of supplies.
34. • To improve effectiveness and
efficiency, business suppliers
and customers are exploring
different ways to manage their
relationship.
• Closer relationships are driven
in part by supply chain
management, early supplier
Managing Business to Business Customer
Relationship
35. Much research has advocated
greater vertical coordination
between buying partners and
sellers, so they can transcend
merely transacting and instead
engage in activities that create
more value for both parties.
The Benefits of Vertical
Coordination
36. Business Relationship:
Risks and Opportunism
• Specific investments are those
expenditures tailored to a particular
company and value chain partner
(investments in company-specific
training, equipment, and operating
procedures or systems).
• Opportunism is “some form cheating or
undersupply relative to an implicit or
explicit contract.
37. Institutional And Government Market
• Institutional market consists of
schools, hospitals, nursing homes, prisons,
and other institutions that must provide
goods and service to people in their care.
Many of these organizations are
characterized by low budgets and captive
clienteles.
• In most countries, government
organizations are a major buyer of goods
and service. Just as companies provide
