LEARNING OBJECTIVES
CHAPTER 4
CONSUMER BEHAVIOUR
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THE BUYER
Initiator
Influencer
Payer
Decider
Buyer
User
Information search
Consumer first conducts an internal search
If internal search is insufficient, the
consumer goes in for external search
Third party reports provide unbiased
information
Personal experience with the product
unsubstitutable
Objective of information search to build up
awareness set
Advertising stimulates information search
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CHOICE CRITERIA
Features and benefits a customer uses when
evaluating products
Technical criteria
Economic criteria
Social criteria
Personal criteria
Risk reduction
Choice criteria may be of emotional nature
Undergo changes over time even for the
same customer
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PERSONAL INFLUENCES
Perception
Selective attention
Selective distortion
Selective retention
Learning
Classical conditioning
Operant conditioning
Cognitive learning
Modeling/Vicarious learning
Reasoning
SOCIAL INFLUENCES
Culture
Social class
Reference groups
Motivation
Maslows theory of motivation
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EMOTIONAL ENGAGEMENT
WITH CUSTOMERS
Important to show that the company cares about
loyal customers
Treat customers with dignity especially when
they are faltering on some of their commitments
Subtle way to earn loyalty is to show that the
company trusts its customers
CUSTOMER PORTFOLIO
MANAGEMENT
CUSTOMER
RELATIONSHIP
MANAGEMENT
Create a customer strategy before implementing
CRM
Before CRM technology is installed, a
customer-focused organization has to be created
Objectives of CRM can be fulfilled without
installing a high-tech solution
Wrong to try to build relationships with all the
existing and potential customers
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RELATIONSHIP
MARKETING