The Customer an Introduction

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Copyright 1999 by Thomas Southwestern. All rights reserved.1

Consumer Behaviour

Started 1960s

Borrowed heavily from the followingdisciplines:

Psychology

Sociology Social Psychology

Anthropology

Economics


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The Customer:

Key to Market Success


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The Importance of Understanding

Customer Behaviour

A Key to Success

Satisfy customers

Adopt the marketing concept

Gain legitimacy in society


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Satisfying the Customer

Adopt a Customer Culture

Incorporate customer satisfaction as anintegral part of the corporate mission and

utilize an understanding of customer behavior

as input to all marketing plans and decisions


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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 exchangingmoney for the product

vs.


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Gaining Legitimacy in Society

A society supports businesses because they

serve its members by catering to theirneeds and wants

Focus on the customer

Pay attention to customer behavior Respond to customer needs, desires and

preferences


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Customer Orientation

a thorough understanding of customers needs

and wants, the competitive environment, and the

nature of the market used to formulate all the firmsplans and actions to create satisfied customers


8/19Copyright 1999 by Thomas Southwestern. All rights reserved.8

Competitive Advantages Through

Customer Satisfaction

Repeat

Buying

Higher

Prices

Loyalty in

Crisis

Word of

Mouth

New Product

Innovation

Corporate

Performance

One-Stop

shopping

GrowthProfits

Customer

Satisfaction



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

Customer Types Roles

Mental Activities

Physical ActivitiesBusinessHouseholds

(consumers)

Payers Users

Buyers



Customer Behavior Domain

HOUSEHOLD BUSINESS

SERVICES

PRODUCTS Consumer ProductsBusiness

Product

Consumer

Services

Business

Services



Three Roles of the Customer

User

Payer

Buyer



Reasons for Role Specialization

Lack of expertise

Lack of timeLack of buying power

Lack of access

Lack of affordability

When the product or

service is subsidizedby payers

When the product or

service is free



Customer Needs and Wants

Need arousal is driven by discomfort in a

persons physical and psychologicalconditions

Wants occur when and because humans

desire to take their physical andpsychological conditions beyond the state

of minimal comfort



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



Market Value

Market value is the potential of a product

or service to satisfy customers needs andwants

Value is created only if the product or

service has the capability to satisfy acustomers needs and wants



Classification of Market Values

Universal Values

Personal Values


18/19Copyright 1999 by Thomas Southwestern. All rights reserved.

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Matrix of Values and Customer

Roles

CUSTOMER ROLES

User Payer Buyer

UNIVERSAL VALUES Performance Value Price Value Service Value

PERSONAL VALUES

Group specific

Individual-specific

Social value

Emotional value

Credit value

Financing value

Convenience value

Personalization value


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Characteristics of Customer

Value

Values are instrumental

Values are dynamicValues are hierarchical

Diversity of customer values increases withhierarchy

Values are synergistic

Values are role-specific

Values vary across customers

The Customer an Introduction

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