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Customer behavior Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Quiz Name the 4 “channels” through which values, beliefs and customs can be acquired. Explain the process under each of them briefly 4+4+2 bonus points Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Learning and Culture Beliefs, values and customs are acquired from an early age through: Playing Schooling Sport Family / home life 3 distinct forms of learning Formal learning – Parents teaching a child how to behave Informal learning – child imitating the behavior of others Technical learning – Teachers / Lecturers instruct Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Quiz results Week 3 Week 4 7 6 5 Marks 4 3 2 1 0 0 1 2 3 4 5 # Students Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 6 7 8 9 10 Class results Papers Average mark Week 3 20 3 Week 4 16 2 Average 18 3 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Quiz Discuss the 3 “personal characteristics” relevant in Customer behavior and explain why each of them is important to you as a marketer by use of examples? 3 – Personal characteristics 3 – Explanation 3 – Examples 1 - Bonus point Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Quiz Age – As a customer age their needs change. Different age groups grew up with different influence determining their Purchasing behavior Gender – Men and woman differ in their consumer needs. The roles of both sexes have changed over years and this needs to be taken into consideration Race / Ethnicity – Is closely linked to culture and the different needs that this brings along. Race / Ethnicity is not static and changes over generations Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Perception research Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 1 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 2 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 3 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 4 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 5 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 6 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 7 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 8 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 9 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 10 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 11 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior 12 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Customer perception and learning Chapter 7 Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior What are Perceptions? Process. Personal. Influenced. Learned. Changeable Definition – Process by which people select, organize and interpret stimuli to the five senses. It is the way that consumers interpret or give meaning to the world around them Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Nature of perception Perception is selective We attend to and pass on only a small portion of info that we are exposed to – Perceptual defense. This means we are not passive recipients of marketing messages Motives and goals play major role in selection or discarding of messages – Perceptual vigilance Use of Questions in ads raises the awareness levels – Maxi door Consumers are more perceptually vigilant during periods of transition – Move to new house, birth of child, new jobs. Technology enables us to “skip the ad” Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Nature of perception Perception is Subjective “My perception is my truth” Perceptions are learned as part of the enculturation process. They can thus be changed and altered The subjective nature of perceptions provide a challenge for marketers Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Nature of perception Perception is based on Frame’s of reference Every perception is based on past experiences. Experiences build a stable cognitive framework This framework is used to add or take away from sensations when we give meaning to them Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Perceptual process Exposure •The degree to which people notice a stimuli. Attention •The extent to which attention is devoted to a particular stimulus. Interpretation Memory •The meaning that people assign to sensory stimuli. •The recall of that message at a later stage Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Perceptual process - Exposure The degree to which a person notices a stimuli that is within range of their sensory receptors. Most Stimuli that we notice is “self-selected” i.e. we have mentally tuned out those stimuli that we don’t “need” to notice Due to level of Advertising stimuli marketers have to become more creative to get their messages noticed. Attention to a message only means that the consumer have noticed it, not that he will pay any attention to it. Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Perceptual process - Attention The extent to which “processing” activity is devoted to a particular stimulus 3 Factors determine attention: Individual • Internal factors – Personality, Motivation, Previous experience Stimulus • External factors – Size, Position, Intensity, Color, Contrast, Motion, Repetition, Novelty, Familiarity Situation • Context in which the stimuli is seen/heard Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Perceptual process - Interpretation The meaning that people assign to a Stimuli or the interpretation of the stimuli. Interpretation tends to happen according to existing beliefs, attitudes, disposition and previous experiences Interpretation is selective i.e.. We filter or screen out certain bits of info: Misindexing – way customers categorize the message Distorting – warping of message to fit in with likes, dislikes, prejudices or attitudes Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Perceptual process - Memory The recall of the message and its content at a later stage Factors that affect recall: Positive sleeper effect – Consumer re-act positive although unconvinced of message Boomerang effect – Consumer acts negatively although convinced of message Overcrowded file space – Confusion re the message due to high level of marketing noise in environment Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Perceptions and Marketing Retail strategy Regular goods are split. High margin goods in high traffic areas Shelf position and space allocations Point of purchase displays and gondola ends Signage Brand image Perception of product is more important than actual characteristics Marketers position their products to occupy a niche in customers minds. Price as a Quality cue. High price is often perceived as a sign of quality and exclusivity Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Customer learning Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Nature of learning The whole decision making process is dependant on the customer “learning” from past experiences Definition – process by which individuals acquire the buying and consumption knowledge and experience they apply to future behavior Learning is a change in the content of the long term memory Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Elements of learning Stimulus Stimulus – Something that stimulates the learners interest. Response Response – any action, reaction or state of mind resulting from a particular stimulus Reinforcement Reinforcement – satisfaction resulting from successful behavior that triggers human memory of how satisfaction was obtained Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Elements of learning - Stimulus Consumers can be stimulated by: Physical things such as products, size, colors Intangible things – Service, quality, satisfaction Once stimulus is perceived a level of motivation needs to be present before learning will begin. A specific reason or goal is normally a visible sign of motivation Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Elements of learning - Response Without “cues” learning will be unstructured and not in a direction that marketers would be satisfied with. Cues in marketing talk is Advertisements. A specific response to a cue/stimulus may happen a couple of times before its learnt. That is why we do multi add campaigns and seldom once off’s Remember that there are many cues competing fro attention in your consumers life. Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Elements of learning - Reinforcement Increases the likelihood that a particular response will occur in the future as a result of specific stimuli or cues. Two important aspects of reinforcement: Repetition – to increase reinforcement actions should be repeated several times. • Learning a store layout, having good service 3 times in a row, being impressed with more than one item in a range of clothes. Participation – I see, and retain 10%, hear, and retain 30% experience and learn a skill. • Samples, testers, trial periods Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Theories of learning Classical conditioning Pairing of Stimuli and conditioning ala Pavlov’s dogs Instrumental conditioning Learning takes place over time and is shaped by rewards and positive re-enforcement Cognitive Theory Iconic rote learning – Making a mental / Intellectual connection between a familiar and unfamiliar concept Vicarious learning model – observation and copying of others behaviors Reasoning – cognitive process in which the consumer engages in creative problem solving Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Classical conditioning Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior Instrumental conditioning Hugo van Zyl 083-629 2069 [email protected] Marketing 1B Customer behavior