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UNDERSTANDING MARKET ‘ Consumer Behavior’ Session 3 Chapter 5&6
The Gaps Model Word-of-mouth Personal Needs Past Experience Expected Product Perceived Product Product Delivery Translation of  perceptions  into product-quality  specifications  Management  perceptions  of consumer  expectations External  communications  to consumers Gap 5 Gap 4 Gap 3 Gap 2 Gap 1 Consumer Marketer
The Gaps ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Consumer Behavior ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Consumer Behavior Model   Marketing & Other Stimuli Marketing Product Price Place Promotion Other Economic Technological Political Cultural Buyer’s Black box Buyer Charac- teristics Buyer Decision Process Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount Figure: Model of Buyer Behavior
Characteristics Affecting Consumer Behavior ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Factors
Characteristics Affecting Consumer Behavior ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Factors
Characteristics Affecting Consumer Behavior ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Factors
Family Life Cycle & Banking Needs An Example Stage Banking Needs Financial Situation Young Single People Few Financial Burdens;  recreation oriented Low-cost checking;  auto loan; credit card Full Nest I: Youngest child under 6 Home purchasing peak; Liquid assets low;  Many working mothers Mortgage; Credit card;  Revolving Credit Line;  Bill Consolidation Loan Full Nest II: Older couples with Dependent  Children Good Financial Position;  Many Working Mothers Home Improvement Loans; Equity Credit Lines; Money Mkt Deposit accounts Investment services Empty Nest: Older Couples; No child at home; One/ both Retired Significantly  reduced Income Monthly Income Checks on CDs; Direct Deposit of Social Security
Characteristics Affecting Consumer Behavior ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Factors
Maslow’s Hierarchy of Needs Once a Lower-level need is Satisfied,  a Higher-level need Emerges,  and Demands Satisfaction Physiological Needs Hunger, thirst Self actualization  Needs Esteem Needs Self-esteem Belongingness & Love Needs Friendship Security & Safety Needs Protection from physical harm
Types of Buying Decision Behavior Difference between brands Significant Complex  buying behavior Low Few Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior High Involvement Level
Five Stages Buyer Decision Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Process Stages
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Process Stages  Five Stages Buyer Decision Process
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Process Stages  Five Stages Buyer Decision Process
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Process Stages  Five Stages Buyer Decision Process
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Process Stages  Five Stages Buyer Decision Process
Marketing Research   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Buyer Decision Process for New Products ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Buyer Decision Process for New Products ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business Markets: Buyer Behavior ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Characteristics   ,[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Characteristics   Business Markets:   Buyer Behavior
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Characteristics   Business Markets: Buyer Behavior
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Eight Stages Business Buying Process
Major Influences on Business Buyers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Factors
Major Influences on Business Buyers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Factors
Major Influences on Business Buyers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Factors
Major Influences on Business Buyers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Factors
[object Object],[object Object],[object Object],[object Object],[object Object],Business Buying on the Internet Strategies Influencing Customer Perception   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Tips for Marketers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Know your Organization Know your Product Know your Customers Know your Competitors Know your Process of Selling Know Yourself

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Consumer Behavior and Segmentation

  • 1. UNDERSTANDING MARKET ‘ Consumer Behavior’ Session 3 Chapter 5&6
  • 2. The Gaps Model Word-of-mouth Personal Needs Past Experience Expected Product Perceived Product Product Delivery Translation of perceptions into product-quality specifications Management perceptions of consumer expectations External communications to consumers Gap 5 Gap 4 Gap 3 Gap 2 Gap 1 Consumer Marketer
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. Family Life Cycle & Banking Needs An Example Stage Banking Needs Financial Situation Young Single People Few Financial Burdens; recreation oriented Low-cost checking; auto loan; credit card Full Nest I: Youngest child under 6 Home purchasing peak; Liquid assets low; Many working mothers Mortgage; Credit card; Revolving Credit Line; Bill Consolidation Loan Full Nest II: Older couples with Dependent Children Good Financial Position; Many Working Mothers Home Improvement Loans; Equity Credit Lines; Money Mkt Deposit accounts Investment services Empty Nest: Older Couples; No child at home; One/ both Retired Significantly reduced Income Monthly Income Checks on CDs; Direct Deposit of Social Security
  • 10.
  • 11. Maslow’s Hierarchy of Needs Once a Lower-level need is Satisfied, a Higher-level need Emerges, and Demands Satisfaction Physiological Needs Hunger, thirst Self actualization Needs Esteem Needs Self-esteem Belongingness & Love Needs Friendship Security & Safety Needs Protection from physical harm
  • 12. Types of Buying Decision Behavior Difference between brands Significant Complex buying behavior Low Few Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior High Involvement Level
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.