This document discusses customer psychology and buyer behavior. It explains that understanding buyer behavior is important for targeting the market and its purchasing habits. Buyer behavior is complex as individuals are unpredictable but groups are more predictable. Marketers must understand who the buyer is, why they buy or don't buy a product, and how, when and where they purchase. Choice is influenced by familiarity, branding, and awareness. Both rational and emotional factors affect purchasing decisions, with emotions often playing a larger role. Marketers need deep insights into customers to understand their buying processes whether online, offline, or a combination.

1. Customer Psychology & Buyer
Behaviour
Presented by - Susheel Racherla
Roll # - 1215

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 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. 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. Choice is often influenced
By familiarity with the brand or sometimes
the level of trust in a brand name.
Front-of-mind
Awareness.

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. Decision-making units
Several individuals are
involved in any one person’s
decision of purchasing a
product
(Eg: Choice of a Family Car)

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. 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

10. Kevin Roberts CEO of Saatchi & Saatchi says….
80 % of decisions are Emotional
Rational Decision making Conclusion
Emotional decision making Action

11. There’s an Emotional
connection through the
packaging, advertising
and through your
memory that you make

12. 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 Buy
the same product for different reasons.

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. 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. The interconnectedness of the
thinking and
feeling parts of the
facilitates
the interaction of rationality &
emotion in
Decision making….

16. Marketers have to
know their customers
better than the
customers know
themselves.

17. 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.
Tesco

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. 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)

20. Results
Its share of baby product
sales
in the UK grew from 16% to
24% over 3 years.

21. 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?

22. 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.
Trust is increasingly important.

23. 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

24. Relationship
What is it called when people visit to the website
again & again?
Remember, the 2nd visit is the start of the
Relationship.

25. Buying Process for High Involvement
Purchase

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. Relief purchases
require a more of a
rational approach
Reward purchases is
more of a
emotional approach.

28. Marketers need to
understand their customers
buying process, whether
online, offline or a mixture
of both.

29. Response Hierarchy Model

30. Black-box models

31. 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

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. 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. 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. 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. Maslow’s Hierarchy Needs

37. Which communications tools do what??

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. Marketers must understand how the
intervening
psychological variables influence buyer
behaviour.