Service Marketing 1

By RyanDesales | Updated: Nov. 20, 2018, 6:45 p.m.

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Let's talk about
Customer Behavior
CUSTOMER
- BEHAVIOR -
the study of individuals, groups, or organizations, and all the activities associated with the purchase, use and disposal of goods and services, including the consumer's emotional, mental and behavioral responses that precede or follow these activities.
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What they need
What they think
How they work
How they spend their time and money
In order to succeed in today’s dynamic and rapidly evolving marketplace, marketers need to know everything about consumers
Characteristics of Consumers
BEHAVIORAL VARIABLE ( usage rates, usage occasions, loyalty, brand advocacy, willingness to provide referrals.
DEMOGRAPHICS
PERSONALITY
 LIFESTYLE

INFLUENCES from groups such as family, friends, sports, reference groups and society in general
"THE CUSTOMER'S PURCHASE DECISION PROCESS"
1. PROBLEM RECOGNITION

The consumer buying process is usually depicted as consisting of 5 distinct stages.
• This is when the consumer identifies a need, typically defined as the difference between the customer's current state and their desired or ideal state.
Theorists identify 3 broad classes of problem-solving situations relevant for the purchase decision.

a. Extensive Problem-Solving 
• purchases that warrant greater deliberation, more extensive information search and evaluation of alternatives.

b. Limited Problem-Solving 
• known or familiar purchases.

c. Routinized Problem-Solving 
• repeat purchases or habitual purchases.

Consumers become aware of a problem in a variety of ways including:

a. Out of stock
 • when a consumer needs to replenish stocks of a consumable item.

b. Regular Purchase 
• when a consumer purchases a product on a regular basis.

c. New needs or wants 
• lifestyle changes may trigger the identification of new needs.

d. Dissatisfaction 
• when a consumer is not satisfied with the current product or service.

e. Related Products 
• the purchase of one product may trigger the need for complementary goods or services.

f. New products/Categories
 • when a consumer become aware of new, innovative products that offer a superior means of fulfilling a need.

2. INFORMATION SEARCH 
• During the information search, the consumer works through processes designed to arrive at a number of brands that represents viable purchase alternatives.

Internal Search - scan of memory for a suitable brands.

External Search - scan through the use of internet, websites, etc.

Evoked Set - term used to describe set of brands that a consumer can elicit from his/her memory.

Consumer evaluation can be viewed as a distinct stage. Alternatively, evaluation may occur continuously throughout the entire decision process.

Functional Benefits - are tangible outcomes that can be experienced by the consumer such as tastes or physical appearance.

Psycho-social Benefits - are the more abstract outcomes of a brand.

Brand Image (Brand Personality) - is an important psycho-social attribute.

3. EVALUATION OF ALTERNATIVES
• Once the alternatives have been evaluated, the consumer firms up their resolve to proceed through the actual purchase.

Purchase Intention 
- self instruction to make a purchase.

4. PURCHASE DECISION
Buy Now!!!
"We have free gifts for the first 50 buyers"
Limited stocks available
"Don't wait"
• following the purchase and after experiencing the product or service.

Post-Purchase Intention
- Consumers will be encouraged to purchase the same brand or from the same company in the future.

Post-Decision Dissonance 
- term used to describe feelings of anxiety that occur in the post purchase stage.

5. POST-PURCHASE EVALUATION
Influences on purchase decision
Internal factors
Personal 
- consists characteristics such as skills and capabilities, interests and hobbies.

Social identity 
- individual's perception of the central groups to which an individual belongs (may refer to age, lifestyle,religious,educational, or some other reference group)

Psychological
- individual's motivation,
attitudes, personal values and beliefs

Demographic 
- income level, psychographics ( lifestyle), age, occupation and socio economic status

Personality- knowledge, attitude,personal values,beliefs, emotions and feelings

Environment and consumers prior experience with the category or brand

Motivation 
Perception 
Prior experience

culture,subculture,social class,reference groups,family and situational determinants
External factors 
Types of decision roles:

1. Initiator 
2. Influencer 
3. Decider
4. Purchaser
5. User

Purchase decision
Interpersonal stimuli 
Intrapersonal stimuli 
Marketing stimuli 
Environmental stimuli

Elements of model:
DECISION
CuSToMER
STYLE
A decision-making style is defined as a "mental orientation characterising a consumer's approach to making choices." 
Based on these factors, the authors developed a typology of eight distinct decision-making styles:

Quality conscious/Perfectionist
Brand-conscious
Recreation-conscious/ Hedonistic
Price-conscious
Novelty/fashion-conscious
Impulsive
Confused (by over-choice)
Habitual / brand loyal

RUIZ, KRISTIA JUSTIN

MANNA, MARK IVAN

GUMIA, STEPHEN

DESALES, RYAN

GROUP 1 MEMBERS :
FOR LISTENING . . . . 
THANK YOU!

Service Marketing 1

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