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Customer psychology & buyer behaviour


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Published in: Business, Technology

Customer psychology & buyer behaviour

  1. 1. Customer Psychology & BuyerBehaviourPresented by - Susheel RacherlaRoll # - 1215
  2. 2. Understanding Customer Buyer BehaviourWhy 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 out1 Who is the buyer ???(target market profiles and decision-makingunits)?2 Why do they buy (or not buy) a particular brand orproduct?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 toremind them of food and arouse feelings of hunger.Maslows Need effectA teenage burger buyer prefers McDonald’s because friendshang out there and it feels nice to be in with the in-crowd.
  5. 5. Choice is often influencedBy familiarity with the brand or sometimesthe level of trust in a brand name.Front-of-mindAwareness.
  6. 6. Who is the customer?Many organizations do not know who their customers are.Companies spend a lot of time and effort constantly researchingand 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 unitsSeveral individuals areinvolved in any one person’sdecision of purchasing aproduct(Eg: Choice of a Family Car)
  8. 8. Why do they buy?Customers do not even know the real reasons they buySome reasons are rational, and some are emotionalThe split between the two is called the emotional–rationaldichotomy (Clash)
  9. 9. UK customersAre 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 Asdawill sell for .15 pounds.Coca-Cola’s ‘core concept is product engagementCustomers prefer Coca-Cola despite High Price
  10. 10. Kevin Roberts CEO of Saatchi & Saatchi says….80 % of decisions are EmotionalRational Decision making ConclusionEmotional decision making Action
  11. 11. There’s an Emotionalconnection through thepackaging, advertisingand through yourmemory that you make
  12. 12. Americans may buy iPod - to listen to theirfavourite music without being disturbed by othersJapanese buy iPods to listen to their favouritemusic without disturbing others.Customers Buythe same product for different reasons.
  13. 13. Sigmund FreudSuggested that the mind was like an icebergThe tip represents the conscious part of themind while the greater submerged part is theunconscious.Even long-forgotten childhood experiencescan 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 withrational thinking to help us make (better) decisions.
  15. 15. The interconnectedness of thethinking andfeeling parts of thefacilitatesthe interaction of rationality &emotion inDecision making….
  16. 16. Marketers have toknow their customersbetter than thecustomers knowthemselves.
  17. 17. Before launching its Fresh & Easy chainA team of 20 executives was dispatched to theUnited StatesThe company hired a team of anthropologists to live withconsumers for 2 weeks and analyze what they bought andwhy?It also built a mock store and asked selected customersto try it.Tesco
  18. 18. Tesco discovered that USconsumerswere less bothered by theselection ofwines on offer,but wanted better-qualitymeat than UK consumers.
  19. 19. What customers are buying & not buying?Young mothers bought fewer baby products in itsstores because they trusted pharmacies more.So Tesco launched Baby Club to provide expertadvice and targeted coupons.Survey at Tesco (UK)
  20. 20. ResultsIts share of baby productsalesin the UK grew from 16% to24% over 3 years.
  21. 21. New task buying - The organization has noexperience of the product or service and is buying itfor the first time.Modified rebuy - Situation is where the industrialbuyer has some experience of the product orservice.Straight rebuy - is where the buyer, or purchasingdepartment, buys on a regular basis.How do they buy?
  22. 22. Surprisingly many customers trust a websitemore than a person.People trust well-known and well-respectedbrandsIn the UK, several major brands score higherin trust than the church and the police.Trust is increasingly important.
  23. 23. Well managed brands are trusted as long as theirpromise is never broken.How does it feel when a website remembers yourname?And when it remembers your preferences?It seems customers are happy to have unconsciousrelationships with brands.Trust
  24. 24. RelationshipWhat is it called when people visit to the websiteagain & again?Remember, the 2nd visit is the start of theRelationship.
  25. 25. Buying Process for High InvolvementPurchase
  26. 26. Attitudes towards high/low involvementpurchasesAttitudes towards low-involvement brandscan be formed after the brand experience.In high-involvement purchases attitudes are formedafter awareness but before any purchasing behavioractually occurs.
  27. 27. Relief purchasesrequire a more of arational approachReward purchases ismore of aemotional approach.
  28. 28. Marketers need tounderstand their customersbuying process, whetheronline, offline or a mixtureof both.
  29. 29. Response Hierarchy Model
  30. 30. Black-box models
  31. 31. Messages and images are not always perceived inthe 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. 32. Simple test on PerceptionSmokers can you recall exactly what the healthwarning says on the side of their packet ofcigarettes?Very Few will be able to tell you the exact words.Smokers screen out messages or stimuli that maycause 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 unpleasantmessage.In order to reduce this tension, the smokers havetwo options:1) Change behaviour (stop smoking)2) Screen out the message and continue thebehaviour (smoking).
  34. 34. Humans are conditioned by musicHigh tempo music in fast food restaurantsencourages faster knife and fork activity, leading toquicker table turnover.Customers buy more expensive wines in a retailenvironment playing classical music rather thanpop music.
  35. 35. Younger shoppers spend more time in a retailenvironment playing loud musicShoppers aged 50 and over spend more in anenvironment with quiet background music.
  36. 36. Maslow’s Hierarchy Needs
  37. 37. Which communications tools do what??
  38. 38. ConclusionBuying behaviour is complex.There are many different approaches to buying models.Marketers need a continual feed of information oncustomer behaviour..Emotional influences in decision making are still dominantin B2C and exist in B2B markets
  39. 39. Marketers must understand how theinterveningpsychological variables influence buyerbehaviour.