L4 Marketing management - Consumer behavior 2

Consumer journey

the newest way of describing the stages consumers pass through as they develop relationships with brands before, during, and after purchase.

- Re conceptualizes the decision process that focus on: Pre-purchase stage -> Purchase stage -> Post-purchase stage with feedback -> Pre-purchase.

Consumer journey includes two processes:

- Start new journey process

- Start classic journey

Start new journey process:

Includes the repeated purchases that goes in a loyalty loop where we skip the evaluation phase and buys directly after the consider stage. After we enjoy, advocate and bond with the product and repeat the loyalty loop.

Start classic journey

Consumers starts engage in extended consideration and evaluation phase before entering the loyalty loop or engage in a new round of consideration and evaluation that may lead to a purchase of a different brand.

Touchpoints

A point of contact or interaction between a customer and organization that can take place online or offline. These interactions shape overall customer experience and influence their relationship with the brand.

Types of touchpoints:

- Brand touchpoints (Include marketing mix aspects e.g. advertising, packaging, customer service, price and loyalty programmes)

- Partner touchpoints: Developed with partners e.g. retailers and other intermediaries who help deliver brand experience.

- Customer-owned touchpoints: Interactions controlled by the consumer e.g customers decide they will use the product in a way that the organization can't control.

- Social (or external) touchpoints: Happens when individuals influence each other e.g. reviews, friends.

Companies need capabilities such as:

- Automation: Streamlining steps, process of making something efficient and simpler in the customer journey to improve efficiency.

- Proactive personalization: Using technology to learn customer preferences and tailor experiences accordingly.

- Contextual interaction: Understanding where the customer is in the journey (e.g. are they just considering, evaluating or ready to purchase) and respond to these.

- Journey innovation: Continuously improving and rethinking the customer journey e.g. suggesting new products based on behavior.

2 levels of loyalty and 1 unloyal:

- Satisfied customers: Customers buying regularly out of habit that values familiarity, ease of purchase and reliability.

- Committed customers: Engage deeply with the brand and expresses strong emotional attachment e.g. can't live without this brand.

- Churning customers: Customers leaving and switching to another brand.

Factors influencing consumer decision-making

- Cultural values factors

- Social factors

- Individual factors

- Psychological factors

Cultural values factors consists of:

o Culture and values: Set of values, norms, attitudes, symbols shaping behavior and the products of that behavior that are transmitted from one generation to the next.

o Subculture: homogeneous groups with shared elements of the overall group and unique elements (traditions, beliefs, practices) within own group e.g. dance group.

o Social class (groups with similar status, wealth and social norms, class hierarchy that share lifestyles and social behaviors e.g. upper, middle and working class)

Social factors consist of:

o Reference groups (groups that serve asa standard for individuals to compare to e.g. someone they aspire to be or want to associate with e.g. influencers.

o Opinion leader (individuals who influence others e.g. family, friends, societies and clubs)

Types of reference groups:

• Primary (direct membership): Small informal group e.g. friends.

• Secondary (direct membership): Large formal group e.g. class.

• Aspirational: Group that someone would like to join.

• Nonaspirational: Group you want to avoid.

Individual factors

o Genders: E.g. Advertising is different based on the gender, for example, different moods for different gender.

o Age and family life cycle: for example, products promoting products with anti-aging features, dull skin.

o Personality and self concept

Personality:

Sum total of who we are and can be seen based on how we react to events and includes our psychological make up (unique personality) and environmental forces. These are the least useful of individual characteristics.

Self concept:

• Ideal self-image: How you would like to be perceived.

• Real self image: the way you actually perceive yourself

- Psychological factors

Perception, motivation, learning, beliefs and attitudes

Perception:

Process where people select, organize, and interpret stimulate into a meaningful and coherent/logical picture.

selective exposure

Process were consumer notice as certain stimulate and ignores the others.

- Selective distortion and selective retention are related to selective exposure.

Selective distortion

a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs

selective retention

a process whereby a consumer remembers only that information that supports his or her personal beliefs.

Motivation

- The desire that makes a person want to satisfy a specific need.

- Maslow's hierarchy of needs:

Maslow's hierarchy of needs:

A method of classifying human needs, and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, self actualization.

Learning:

- Change our behavior through experiences and practices.

Types of learning

Types of learning:

• Experiential: occur when an experience changes behavior. (direct experience).

• conceptual: not learned through direct experience, but based upon reasoning e.g learning from others being scolded.

Stimulus generalization

associate a new product with an existing one due to similar characteristics, for example trusting all the brands products

stimulus discrimination

learning to distinguish between similar products based on unique attributes

stimulus generalization and stimulus discrimination are:

Useful for marketing managers

Beliefs and attitudes

Belief: An organized pattern of knowledge that an individual holds as true about his or her world.

Attitude: A learned tendency to respond consistently toward a given object.

Socialization process

Family: How cultural values are passed down to children. E.g. teaching buying behaviors, habits, norms, and cultural values.

- Initiators

- Influencer

- Decision makers

- Purchasers

- Consumers

Why important to analyze consuker decision making process:

It is therefore important to analyze the consumer decision-making process and the various components that affect these decisions which includes identifying different types of decisions and what types of factors that influence these.

How does marketers use perception to understand what consumers focus the most on?

Marketers use perception to understand what matters most consumers focus on for example price, brand names, quality, and reliability. They noticed they just noticeable difference in products which means that small changes in a product/marketing can make a big impact. When launching or adjusting a product, they focus on people's reaction to the changes. Also, when expanding to global markets, they study different cultures way of perceiving their brains who makes smart adjustments.