INTRO TO CUSTOMER BEHAVIOR -CHAPTER 1

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CHAPTER 1 : 

1 CHAPTER 1 The Customer: Key to Market Success CUSTOMER BEHAVIOR: A MANAGERIAL PERSPECTIVE PART 1:

The Importance of Understanding Customer Behavior : 

2 The Importance of Understanding Customer Behavior A Key to Success (SAG) Satisfy customers Adopt the marketing concept Gain legitimacy in society

Satisfying the Customer : 

3 Satisfying the Customer Adopt a Customer Culture Incorporate customer satisfaction as an integral part of the corporate mission and utilize an understanding of customer behavior as input to all marketing plans and decisions

Adopting the Marketing Concept : 

4 Adopting the Marketing Concept Market Concept Principle Focus Making what the customer wants or needs Selling Concept Principle Focus Finding a buyer for the product Selling the customer into exchanging money for the product vs.

Gaining Legitimacy in Society : 

5 Gaining Legitimacy in Society A society supports businesses because they serve its members by catering to their needs and wants Focus on the customer Pay attention to customer behavior Respond to customer needs, desires and preferences

Customer Orientation : 

6 Customer Orientation a thorough understanding of: customers’ needs and wants, competitive environment, the nature of the market used to formulate all the firms’ plans and actions to create satisfied customers

Competitive Advantages Through Customer Satisfaction : 

7 Competitive Advantages Through Customer Satisfaction Repeat Buying Higher Prices Loyalty in Crisis Word of Mouth New Product Innovation Corporate Performance One-Stop shopping Growth Profits Customer Satisfaction

Increased Profitability : 

8 Increased Profitability Advantages (CPC) Cost efficiencies from repeat customers Price premiums from established customers Customer loyalty in corporate crisis

Increased Growth : 

9 Increased Growth Advantages(ION) Increased word of mouth One-stop shopping New product innovations

Creates Pride in Employees : 

10 Creates Pride in Employees Customer orientation has an effect on employee morale in the company Satisfied employees create satisfied customers Happy customers lead to employee happiness

Customers: Types, Roles,and Behaviors : 

11 Customers: Types, Roles,and Behaviors Customer Types Roles Mental Activities Physical Activities Business Households (consumers) Payers Users Buyers

Customer Behavior Domain : 

12 Customer Behavior Domain HOUSEHOLD BUSINESS SERVICES PRODUCTS

Three Roles of the Customer : 

13 Three Roles of the Customer User Payer Buyer

Reasons for Role Specialization : 

14 Reasons for Role Specialization Lack of expertise Lack of time Lack of buying power Lack of access Lack of affordability When the product or service is subsidized by payers When the product or service is free

Customer Needs and Wants : 

15 Customer Needs and Wants Need arousal is driven by discomfort in a person’s physical and psychological conditions Wants occur when and because humans desire to take their physical and psychological conditions beyond the state of minimal comfort

Determinants of Needs and Wants : 

16 Determinants of Needs and Wants Customer Needs Individual Traits Genetics Biogenics Psychogenics Market Traits Climate Topography Ecology Customer Wants Individual Context Personal Financial Worth Institutions Culture Market Context Economy Technology Public Policy

Matrix of Personal and Environmental Characteristics : 

17 Matrix of Personal and Environmental Characteristics

Market Value : 

18 Market Value Market value is the potential of a product or service to satisfy customers’ needs and wants Value is created only if the product or service has the capability to satisfy a customer’s needs and wants

Classification of Market Values : 

19 Classification of Market Values Universal Values Personal Values

Matrix of Values and Customer Roles : 

20 Matrix of Values and Customer Roles

Characteristics of Customer Value : 

21 Characteristics of Customer Value Values are instrumental Values are dynamic Values are hierarchical Diversity of customer values increases with hierarchy Values are synergistic Values are role-specific Values vary across customers

Value Synergy : 

22 Value Synergy Best Universal value = (Performance) x (price) x (service value) and   Best Personal value = (Social and emotional) x (convenience and personalization) x (credit and financing)

Conceptual Framework : 

23 Conceptual Framework