Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Quiz
1. List the 4 benefits that a consumer could get when making a purchase (4+1)
2. List the 4 types of costs that a consumer could have to carry to when making a purchase (4+1)
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Pricing Value
• Benefits:– Functional benefits– Social benefits– Personal benefits– Experiential benefits
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Pricing Value
• Costs:– Monetary costs– Temporal costs– Psychological costs– Behavioral costs
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Quiz results
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# Students
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rks
Week 3
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Class results
Papers Average mark
20 3
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
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
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
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
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Recap
Custom
er
External influences - Cptr. 4/5
•Culture / Subculture
•Reference groups
•Social class
•Family
Internal influences – Chpt 7,8,9,10
•Perception
•Learning
•Motivation
•Lifestyle
•Attitudes
•Personality
•Self concept
Market characteristics –
Chpt. 3
•Climate
•Economy
•Government
•Technology
Personal characteristics –
Chpt 6
•Race
•Gender
•Age
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Chptr 3 – Market characteristics
• Characteristics of SAF population– Individuals
• Population, Age distribution, Geographic distribution, education levels, Labor market, unemployment, formal/informal sectors, Migrant workers
– Households• Housing, Water, energy, Telephones, Sanitation,
Healthcare, Household income
– Other factors• Climate, Economic Conditions, Government, Technology
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Chptr 4 – Culture / Sub culture
• Nature of culture– Sub Culture– Needs– Learning– En / Acculturation– Language, Symbols,
rituals– Society– Dynamic nature of
culture
• Measurement of culture– Content– Fieldwork– Values– Value Measurement
• SAF Core Values– Sociomonitor
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Nature of culture• Culture – sum total of beliefs, values, customs that serve to direct
the customer behavior of members of a particular society
• Beliefs – Very large number of verbal and mental statements that reflect a person’s particular knowledge and assessment of something
• Values – deep seated motivations instilled from culture– Few in number– Guide for behavior– Difficult to change– Not linked to specific objects or situations– Widely accepted by members of society
• Customs – modes of behavior that is culturally approved or accepted ways of behaving in specific situations
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Nature of culture• Sub culture – Distinct cultural group that exists as
an identifiable segment within a larger group – Language, Religion
• Needs & Culture – 2 way process of creation
• Learning – Formal, Informal , Technical
• En / Acculturation
• Language – Most common expression of specific culture
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Nature of Culture• Symbols – Anything that stands for something else
– Images and Brands!!
• Rituals – Symbolic activity that consists of a series of steps occurring in fixed sequence and repeated over time.
• Society and social institution play a very important role in Culture
• Culture is a dynamic process that is constantly changing.
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Chptr 5 – Reference group / Social class
• Reference groups– Types– Marketers– Influence– Advertising
• Social Class – Marketing implications
• Trends in customer behavior – Tech, Socio-cultural, Gov.
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Types of reference groups• Formal groups – Clearly defined structure• Informal groups – No formal rules
• Primary groups – face to face interaction• Secondary reference groups – no face to face interaction
• Membership groups – part of a group and model behavior• Non membership groups – Not part of but do model behavior
• Aspirational groups – Rich or famous?
• Dissociative groups – Avoid and reject so base behavior on opposite
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Reference group influence
• Group influence – strong when product or brand is
visible to group
• Reference group influence – higher when
necessity of item is lowest
• Group norms – more commitment a person feels
to group the higher the level of conformity
• Group norms – Relevance of particular activity
will determine level of conformance
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Social class
• Definition - Social class refers to the hierarchical distinctions between individuals or groups in societies or cultures
• Social class is determined:– Self attribution– Repuational approach– Objective measures - Income
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Characteristics of social classes in USA
Relative size Group Description
1.5% Upper classOld money + Prominent rich
Antiques, art, rare jewelry, luxury travel and designer products
12.5%Upper middle
class
Professionals, small business owners, senior managers.
Community minded, socially aware and future orientated
32%Lower middle
class
Office workers, teachers, technicians.Concept of hard work based here. Conforming
mindset, home / family orientated
38%Upper lower
class (working class)
Blue collar workers. Concerned about Fin security. Rely on salespeople for Purchase
advice
16%Lower – lower
class
Unskilled laborers, often illiterate. Good market for necessities and products that
make the “moment” more enjoyable
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Chapter 6
Personal characteristics
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Personal characteristics
Race
•Race & Products
•Marketing communications
•LSM
Gender
•Role of woman
•Role of Men
Age
•Definition
•Why is it important
•Subcultures
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Race / Ethnicity
• Race – Genetic heritage group a person is born into• Ethnicity – patterns of association and identification
with common national or cultural origins of a subgroup.– Self perpetuating population– Shared cultural values– Common language– Members define themselves as part of a subgroup
• Is segmentation based on Race/Ethnic lines appropriate?
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Race / ethnic segmentation
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Yes vs. No
Yes No
Our purpose as marketers are to satisfy customers needs….
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
KwanzaaKwanzaa is an African-American holiday about the festival of the first harvest of the crops. It begins on December 26, and lasts for seven days. The name Kwanzaa, sometimes spelled Kwanza, comes from a phrase which means
"first fruits" in Swahili, an East African language.Kwanzaa was created by Dr. Maulana Karenga in 1966. It is celebrated
through singing, speaking, dancing and reciting traditional. Stories. Kwanzaa is built on seven principles that are commonly known as "Nguzo Saba". These
principles are: •umoja - unity •ujima - collective work and responsibility •nia - purpose •imani - faith •kujichagulia - self-determination •ujamaa - cooperative economics •kuumba - creativity
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Gender
Category Men Woman
FoodSingle men 25-34 years spend more on food out
of home than woman
Buy fresh food ,diet food and drinks
Clothing White, black, blue, grey and brown
Fabric exclusive use. Full spectrum of colors
HousingConstruction concerns,
heating cooling and building material
Functional use, closet space, size of kitchen
Decorating Focus on entertainment area
Kitchen and living room
Weddings Reception is key event Ceremony is key event
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Changing role of woman
• Larger part of population than men• More woman in Med school than men• Laws such as BBBEE act drive woman into more
senior / exco roles.
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Changing role of men
• Increase role of woman in workplace has forced men to adopt.
• “Metro sexual” male category
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Gay market
• DINKY - Double income , no kids• Brand conscious and loyal• Well traveled and read
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Age
• Chronological / Biological and Psychological age
• Why age is important:– Needs and wants vary– Lifetime value of customers– Shifts in demands and values
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
American demographics
Generation Year Born Age in 2000 % of Pop
GI Generation
+1930 71+ 9%
Depression era
30-39 61-70 7%
War Babies 40-45 55-60 6%
Baby boomers
46/64 36-54 28%
Gen X 65-76 24-35 16%
Gen Y 77-94 6-23 26%
Millennials 95+ 0-5 8%
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Children (Millennials)
• Big spenders• Sweets, Clothes, Entertainment, Toys• Susceptible to adverts• Influence parental shopping patterns• Concerns about children’s ability to “defend”
themselves against advertising campaigns
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Teens - Generation Y
• Born in 80’s
• Global communication (Internet users), Focus on materialism
• Very sophisticated and seasoned customers
• Sophisticated decision making skills as they shop from a much earlier age and mostly unaccompanied
• Brand loyalty once established tend to last well into adulthood
• Selection of images, symbols, issues, and media is critical for the marketers
• Ethnic and racial groups are mixed and also represented as such in ads
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Teens - Generation Y• Due to high level of computer and internet literacy:
– Preferences and demands are transient– Demand customization– Due to wide availability they change minds often.– Prefer self trial than marketing promises.– Not dazzled by technology
• Marketing rules for Gen Y– Don’t talk down– Don’t try to be what ur not– Entertain them– Show empathy– Customize and interact– Try and get to know them.
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Teens - Generation Y - SAF
• 45% - Nguni languages• 52% female• 65% - Gauteng, KZN, WC , EC• 20% - Have matric
• School pupils• Univ. students• Young working adults
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Young Adults – Generation X
• Born – mid ’60’s – mid 70’s• Difficult economic times• Disillusioned and less materialistic than previous
generations• Reflected in music such as Pearl Jam, Guns n Roses
and RHCP• Fashion – Grunge look, Earrings and tattoos• Perception is of a “slack” generation.• Found success and achievement through technology• Tend to leave home later than previous generations
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Young Adults – Generation X
• Pre-occupation with shopping and material possessions
• Concept of Mall rats is Gen X• Heavy exposure to TV – Media knowledgeable
and Customer wise generation• Cynical to “obvious” marketing campaigns but
respond to “clever” campaigns• Respond to marketing aimed at them specifically,
talking their language and suing their style and images
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Baby boomers• Generation born after WW2• Boom in the birthrate till mid 1960’s• Characterized by Family and home orientation• High education levels, high income and dual
career households• Time pressure was the norm.• TV shaped their lives• Rock and roll – Beatles, The Who, Jim Morrison• Drugs• BB are now the aging generation and have an
impact on discretionary spend.
Marketing 1BCustomer behavior
Hugo van Zyl
083-629 2069
Seniors• Living longer and able to spend longer• Values:
– Autonomy– Connectedness– Altruism– Personal growth
• Concept of perceived age
• Gerentographics– Healthy indulgers – Focus on enjoying life– Healthy hermits – Withdrawn due to life events– Ailing outgoers – Positive despite life events– Frail recluses – Accepted aging and adjusted their life
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