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Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship
marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-
affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.
The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses.[1] It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within people).[2] The black box model is related to the black box theory of behaviourism, where
the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned
and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a
society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response.
The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the
problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer.
Information search
Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain
that consumers undertake both an internal (memory) and an external search.
The relevant internal psychological process that is associated with information search is perception. Perception is defined as "the process by which an individual
receives, selects, organises, and interprets information to create a meaningful picture of the world".
Stage Description
• Selective exposure consumers select which promotional messages they will expose themselves to.
• Selective attention consumers select which promotional messages they will pay attention to.
• Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences.
• Selective retention consumers remember messages that are more meaningful or important to them.
The implications of this process help develop an effective promotional strategy, and select which sources of information are more effective for the brand.
Internal influences
Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer
behaviour concern with consumer need consumer actions in the direction of satisfying needs leads to his behaviour of every individuals depend on thinking
External influences
Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity, family, social class, past experience reference groups, lifestyle, market mix
factor
4) Purchase
After a comprehensive review of solutions and specific products and services, the consumer makes a purchase decision. At this point in the buying process,
supporting information needs to be provided to reinforce the decision to buy. Depending on your product or service, you may need to provide different payment
options or billing terms.
• The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy. :
1. problem recognition,
2. information search,
Five Stages
3. alternative evaluation,
of
4. purchase decision, and
Consumer Behavior
5. post-purchase behavior.
• Can be as simple as noticing an empty milk carton or it can be activated by marketing efforts.
B. Information Search: Seeking Value
The information search stage clarifies the options open to the consumer and may involve
two steps of information Internal search • Scanning one’s memory to recall previous experiences with products or brands.
search
• Often sufficient for frequently purchased products.
• When past experience or knowledge is insufficient
• The risk of making a wrong purchase decision is high
o the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or
she is aware
D. Purchase Decision: Buying Value
Three possibilities • which depends on such considerations
o Terms of sale
From whom to buy o Past experience buying from the seller
o Return policy.
When to buy • which can be influenced by
o store atmosphere
o time pressure
o a sale
• Cognitive Dissonance. The feelings of postpurchase psychological tension or anxiety a consumer often experiences
• Firms often use ads or follow-up calls from salespeople in this postpurchase stage to try to convince buyers that they made the right
decision.
F. Involvement and Problem-Solving Variations
• Consumers may skip or minimize one or more steps in the purchase decision process depending on
o the level of involvement
o the personal, social, and economic significance of the purchase
• Three characteristics of high-involvement purchase
1. is expensive,
2. can have serious personal consequences, or
• Once basic physiological needs are met, people seek to satisfy learned needs.
Physiological needs • basic to survival.
• self-preservation
Safety needs
• physical well-being.
• love
• friendship.
From lowest to highest, the hierarchy is:
• achievement
Social needs • status
• prestige
• self-respect.
Self-actualization needs • personal fulfillment.
2. Personality
• A person's consistent behavior or responses to recurring situations.
• Research suggests that key traits affect brand and product-type preferences.
• Cross-cultural analysis also suggests that residents of different countries have a national character, or a distinct set of personality
characteristics common among people of a country or society.
• Personality characteristics are often revealed in a person’s self-concept, which is the way people see themselves and the way they
believe others see them.
B. Perception
• The process by which an individual uses information to create a meaningful picture of the world by
o selecting,
o organizing
o interpreting
• Perception is important because people selectively perceive what they want and it affects how people see risks in a purchase.
1. Selective Perception
• Filtering
o exposure,
o comprehension, and
Selective perception
o retention
o Thinking.
1. Behavioral Learning
• The process of developing automatic responses to a situation built up
o helps to segment and target consumers for new and existing products.
Values and Lifestyles (VALS) Program
• Developed by SRI International
• Identified eight interconnected categories of adult lifestyles
o Subculture.
A. Personal Influence
• individuals who exert direct or indirect social influence over
Opinion leaders
others
Aspects of personal influence important to • People influencing each other during face-to-face conversations.
marketing
Word of mouth
• Power of word of mouth has been magnified by the Internet and
e-mail
B. Reference Groups
Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference
groups have an important influence on the purchase of luxury products but not of necessities. :
Membership
• one to which a person actually belongs
group
Three groups have clear marketing
Aspiration group • one with which a person wishes to be identified.
implications
Dissociative • one from which a person wants to maintain a distance because of
group differences in values or behaviors
C. Family Influence
• Family influences on consumer behavior result from three sources:
o consumer socialization
o passage through the family life cycle
o education.
• Social class is a basis for identifying and reaching particularly good prospects for products and services.
o Upper classes are targeted by companies for items such as financial investments, expensive cars, and evening wear.
o Middle classes represent a target market for home improvement centers and automobile parts stores.
o Lower classes are targeted for products such as sports and scandal magazines.
E. Culture and Subculture
Culture refers to the set of values, ideas and attitudes that are accepted by a homogeneous group of people and transmitted to the next
generation.
• Subcultures - groups within the larger, or national, culture with unique values, ideas, and attitudes.
• three largest racial/ethnic subcultures in the U.S
o Hispanics,
o African-Americans
o Asians .
• Each of these groups exhibits sophisticated social and cultural behaviors that affect their buying patterns.
1. African-American Buying Patterns
• African-Americans have the largest spending power of the three subcultures
• While price conscious, they are motivated by product quality and choice.
• Respond to products and advertising that appeal to their African-American pride and heritage as well as address their ethnic features
and needs.
2. Hispanic Buying Patterns
• Hispanics represent the largest subculture
• About 50% are immigrants
• The majority are under the age of 25.
• Marketing to Hispanics has proven to be a challenge because
o The diversity of this subculture
o The language barrier.
• Sensitivity to the unique needs of Hispanics by firms has paid huge dividends.
3. Asian Buying Patterns
• The Asian is the fastest growing subculture.
• About 70% of Asians are immigrants
• Most are under the age of 30.
• Asians represent a diverse subculture, including Chinese, Japanese, Filipinos, Koreans, Asian-Indians, people from Southeast Asia,
and Pacific Islanders.
• Two groups of Asian-Americans have been identified:
o Assimilated Asians are
conversant in English
highly educated
exhibit buying patterns very much like "typical" American consumers.
o Nonassimilated Asians
A Johari window is a cognitive psychological tool created by Joseph Luft and Harry Ingham in 1955[1] in the United States, used to help people better understand
their interpersonal communication and relationships. It is used primarily in self-help groups and corporate settings as a heuristic exercise.
When performing the exercise, subjects are given a list of 56 adjectives and picks five or six that they feel describe their own personality. Peers of the subject are
then given the same list, and each picks five or six adjectives that describe the subject. These adjectives are then mapped onto a grid.[2]
Charles Handy calls this concept the Johari House with four rooms. Room 1 is the part of ourselves that we see and others see. Room 2 is the aspects that others
see but we are not aware of. Room 3 is the most mysterious room in that the unconscious or subconscious part of us is seen by neither ourselves nor others. Room
4 is our private space, which we know but keep from others.
The concept is clearly related to the ideas propounded in the Myers-Briggs Type Indicator program, which in turn derive from theories about the personality first
explored by psychologist Carl Jung.
It's a well known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers
to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close
working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued,
wanted and loved.
1. Encourage Face-to-Face Dealings
This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking
experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a
project.
My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or
someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe
that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale.
This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with
all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them
about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it.
A good example of this is my Web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the
way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also
apologised repeatedly, which was nice. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my
business elsewhere. But because they took time to keep me informed, it didn't seem so bad, and I at least knew they were doing something about the problems.
That to me is a prime example of customer service.
A fellow SitePointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your
clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt
object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous.
This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long
run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical
enquiries? If they're not satisfied with any aspect of your customer service, who should they tell?
There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at
each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be
useful.
5. Attention to Detail (also known as 'The Little Niceties')
Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalised sign-up confirmation email for a
service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of
that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship.
Take this as an example: you're working on the front-end for your client's exciting new ecommerce endeavour. You have all the images, originals and files backed
up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal
marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the
images you've used on the site. A note accompanies it which reads:
"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. Hopefully
you'll be able to make use of some in your brochure."
Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office,
you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several referrals your way.
It's possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project
delivery dates.
Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late,
technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss.
Conclusion
Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles
with the customer. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends
and they'll always come back.
The following descriptions explore the role of consumer behavior in designing and deploying three major marketing activities.
Market-Opportunity Analysis
This activity involves examining trends and conditions in the marketplace to identify consumers' needs and wants that are not being fully satisfied. The analysis
begins with a study of general market trends, such as consumers' lifestyles and income levels, which may suggest unsatisfied wants and needs. More specific
examination involves assessing any unique abilities the company might have in satisfying identified consumer desires.
A variety of recent trends have resulted in many new product offerings for consumer satisfaction. For example, companies attuned to the fitness interests of
Americans have been quick to offer such new products as exercise bicycles, weight training books, and clothing. In the health care field, companies sensing
consumers' unmet medical needs have offered coin-operated blood pressure testing machines at shopping centers and other convenient locations.
Target-Market Selection
The process of reviewing market opportunities often results in identifying distinct groupings of consumers who have unique wants and needs. This can result in a
decision to approach each market segment with a unique marketing offering. Consider the soft drink market. Here, major segments of ultimate consumers are
distinguished by the type of purchase situation: (1) the food store segment, (2) the "cold bottle" or vending machine segment, and (3) the fountain market, which
includes fast-food outlets. Unique packaging arrangements (container type and size), point of purchase promotions, and other variations are made for each
segment.
In other cases, the marketer may decide to concentrate company efforts on serving only one or a few of the identified target markets. An excellent example of this
occurred in the bath soap market. By segmenting consumers according to their lifestyle patterns and personalities, the Colgate-Palmolive company was able to
identify a unique group of consumers in need of a certain type of deodorant soap. Development of Irish Spring for this target group led to the capturing of 15
percent of the deodorant soap market within three years of introduction.
Marketing-Mix Determination
This stage involves developing and implementing a strategy for delivering an effective combination of want-satisfying features to consumers within target markets.
A series of decisions are made on four major ingredients frequently referred to as the marketing mix-variables: product, price, place, and promotion.
Physiological Needs
• air
• water
• nourishment
• sleep
According to Maslow's theory, if such needs are not satisfied then one's motivation will arise from the quest to satisfy them. Higher needs such as social needs and
esteem are not felt until one has met the needs basic to one's bodily functioning.
Safety
Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might
be fulfilled by:
Social Needs
Once a person has met the lower level physiological and safety needs, higher level needs become important, the first of which are social needs. Social needs are
those related to interaction with other people and may include:
Esteem
Once a person feels a sense of "belonging", the need to feel important arises. Esteem needs may be classified as internal or external. Internal esteem needs are
those related to self-esteem such as self respect and achievement. External esteem needs are those such as social status and recognition. Some esteem needs are:
• Self-respect
• Achievement
• Attention
• Recognition
• Reputation
Maslow later refined his model to include a level between esteem needs and self-actualization: the need for knowledge and aesthetics.
Self-Actualization
Self-actualization is the summit of Maslow's hierarchy of needs. It is the quest of reaching one's full potential as a person. Unlike lower level needs, this need is
never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow.
• Truth
• Justice
• Wisdom
• Meaning
Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow,
only a small percentage of the population reaches the level of self-actualization.
Implications for Management
If Maslow's theory holds, there are some important implications for management. There are opportunities to motivate employees through management style, job
design, company events, and compensation packages, some examples of which follow:
• Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient to purchase the essentials of life.
• Safety Needs: Provide a safe working environment, retirement benefits, and job security.
• Social Needs: Create a sense of community via team-based projects and social events.
• Esteem Needs: Recognize achievements to make employees feel appreciated and valued. Offer job titles that convey the importance of the position.
• Self-Actualization: Provide employees a challenge and the opportunity to reach their full career potential.
However, not all people are driven by the same needs - at any time different people may be motivated by entirely different factors. It is important to understand the
needs being pursued by each employee. To motivate an employee, the manager must be able to recognize the needs level at which the employee is operating, and
use those needs as levers of motivation.
While Maslow's hierarchy makes sense from an intuitive standpoint, there is little evidence to support its hierarchical aspect. In fact, there is evidence that
contradicts the order of needs specified by the model. For example, some cultures appear to place social needs before any others. Maslow's hierarchy also has
difficulty explaining cases such as the "starving artist" in which a person neglects lower needs in pursuit of higher ones. Finally, there is little evidence to suggest
that people are motivated to satisfy only one need level at a time, except in situations where there is a conflict between needs.
Even though Maslow's hierarchy lacks scientific support, it is quite well-known and is the first theory of motivation to which many people they are exposed. To
address some of the issues of Maslow's theory, Clayton Alderfer developed the ERG theory, a needs-based model that is more consistent with empirical findings.
david mcclelland
david c mcclelland's motivational needs theory
American David Clarence McClelland (1917-98) achieved his doctorate in psychology at Yale in 1941 and became professor at
Wesleyan University. He then taught and lectured, including a spell at Harvard from 1956, where with colleagues for twenty years
he studied particularly motivation and the achievement need. He began his McBer consultancy in 1963, helping industry assess
and train staff, and later taught at Boston University, from 1987 until his death. McClelland is chiefly known for his work on
achievement motivation, but his research interests extended to personality and consciousness. David McClelland pioneered
workplace motivational thinking, developing achievement-based motivational theory and models, and promoted improvements in
employee assessment methods, advocating competency-based assessments and tests, arguing them to be better than traditional
IQ and personality-based tests. His ideas have since been widely adopted in many organisations, and relate closely to the theory
of Frederick Herzberg.
David McClelland is most noted for describing three types of motivational need, which he identified in his 1961 book, The
Achieving Society:
McClelland's particular fascination was for achievement motivation, and this laboratory experiment illustrates one aspect of his theory about the affect of
achievement on people's motivation. McClelland asserted via this experiment that while most people do not possess a strong achievement-based motivation, those
who do, display a consistent behaviour in setting goals:
Volunteers were asked to throw rings over pegs rather like the fairground game; no distance was stipulated, and most people seemed to throw from arbitrary,
random distances, sometimes close, sometimes farther away. However a small group of volunteers, whom McClelland suggested were strongly achievement-
motivated, took some care to measure and test distances to produce an ideal challenge - not too easy, and not impossible. Interestingly a parallel exists in biology,
known as the 'overload principle', which is commonly applied to fitness and exercising, ie., in order to develop fitness and/or strength the exercise must be
sufficiently demanding to increase existing levels, but not so demanding as to cause damage or strain. McClelland identified the same need for a 'balanced
challenge' in the approach of achievement-motivated people.
McClelland contrasted achievement-motivated people with gamblers, and dispelled a common pre-conception that n-ach 'achievement-motivated' people are big
risk takers. On the contrary - typically, achievement-motivated individuals set goals which they can influence with their effort and ability, and as such the goal is
considered to be achievable. This determined results-driven approach is almost invariably present in the character make-up of all successful business people and
entrepreneurs.
Interesting comparisons and relationships can be drawn between McClelland's motivation types, and the characteristics defined in other behavioural models, eg:
John Adair's Action-Centred Leadership model: Achievement-motivated managers are firmly focused on the Task, often to the detriment of the Individual and the
Team. Affiliation-motivation people are Team and Individual centred. (Note that John Adair's Action-Centred leadership model is ©John Adair.)
Katherine Benziger'sThinking Styles model: Achievement-motivation is a double-frontal brain mode style; affiliation-motivation is right basal (rear); authority-
motivation is arguably left basal (rear).
DISC (Inscape, Thomas International, etc) system: Achievement-motivated people are 'D' profiles - results-driven, decisive, dominant, etc. Affiliation-motivated
people are I (proactive) and S (reactive) profiles. Authority-motivated people are S and C profiles.
Hersey/Blanchard's Situational Leadership® model: Achievement-motivated people tend to favour the styles of the first and second modes ('telling' and 'selling');
affiliation-motivated people tend to favour the third mode ('participating'); and the authority-motivated people tend to favour the style of mode four ('delegating').
Please note that Situational Leadership® is protected intellectual property: Situational Leadership® is a trademark of the Centre for Leadership Studies. Situational
Leadership II® is a trademark of The Ken Blanchard Companies. Use of material relating to Situational Leadership® and/or Situational Leadership II® requires
licence and agreement from the respective companies.