...Understanding customer behavior in retail banking The impact of the credit crisis across Europe February 2010 Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Key findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The impact on trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Loyalty: the end of an era? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Reasons customers look elsewhere Measuring satisfaction Conclusion 8 How Ernst & Young can help . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Introduction ...
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...VALUE TO MARKETERS ABOUT UNDERSTANDING CONSUMER BEHAVIOR THEORIES AND CONCEPTS Modern day’s business is controlled by Consumers. Large variations in consumer needs and strong competition demands market driven business and marketing plans. It’s the response of Consumers that decides the success of Marketing. Most of the marketers not only avoid theories but also consider them to be irrelevant. They believe that huge experience of Managerial facts and direct observation of consumer’s behavior is enough to succeed. What marketers fail to understand is that experience and observation on one hand and theories on the other hand are inter-linked. By understanding consumer behavior, marketers will be able to investigate and learn consumer’s purchase mannerism and make marketing decisions. 1. INTERNAL INFLUENCES: These are the factors that happen within the consumers. 1.1. LEARNING: Learning is the behavioral change occurring due to the outcome of past experience. Based on Consumers gained experience on purchased and consumed product, they learn about the brands they like and dislike and the qualities they prefer the most. With this experience consumers adjust their behavior for the future. For marketers to understand the learning behavior better, two thoughts are developed – The behaviorist and the cognitive. 1.1.1. Behaviorist Learning Theory: This Theory is concerned with observing changes in an individual’s responses as a result of exposure to stimuli. (Henry...
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...Oklahoma State University Understanding Consumer Behavior Alex Urso DHM 1433 Final Paper Dr. Jane Swinney December 9th, 2013 Understanding consumer behavior is anything related to how people buy or select products and how the companies are meeting consumer needs. This is important to the field of merchandising and the design field because the consumers are what make a company successful. If a designer or a merchandiser does not understand their consumer their company will not flourish. Understanding consumer behavior can be described through material learned in this class, the textbook used and information from recent NRF Smartbriefs. In the first chapter of the textbook, In Fashion, the first principle of fashion is “consumers establish fashions by accepting or rejecting the styles offered”(Stone 24). It is false to say that designers design clothes with little regard for the acceptance of the designs. “The consumer is the ultimate user: the person who uses the finished fashion garment”(Stone 25). The designs that are made are specifically to please the consumer. With consumers having the power to reject styles and accept many styles, overall the consumer is who makes the style a fashion. “No designer can be successful without the support and acceptance of the customer”(Stone 24). Professionally, the designer has to know their target market in order to know what kind of consumers their design or company is going to attract. “Target markets are specific groups...
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...Consumer Traits and Behaviors PSY/322 University of Phoenix Consumer Traits and Behaviors Introduction “Consumer behavior involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, and making purchase decisions .whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these” (Perner, 1999-2008.). People in today’s society perceive messages differently. The way people perceive a message has a lot to do with consumer traits and behaviors. “The behavior that consumers undertake in seeking, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their personal needs” (Perner, 1999-2008.). As human beings we are all unique and have our own opinion, this reflects on our pattern of purchases. Marketing strategies of different product and services are why purchases differ from one another. One individual may enjoy colorful scenery throughout their household while another individual love the simple more modern scenery. The consumer goes through a process of receiving a stimulus and acting accordingly. This then triggers decision making. Culture plays a role in a person needs and behavior. According to Perreau, “an individual will be influenced by his family, his friends, his cultural environment or society that will “teach” him values, preferences as well as common behaviors to their own culture.” Individuals...
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...person. Sometimes in the consumer market people are involved in a purchase decision, example: in planning for a family vacation the father may make the hotel reservations but others in the family may have input on the hotel choice. Therefore, understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases. Consumer buyer behavior refers to the buying behavior of final consumers (individuals and households who buy goods and services for personal consumption). All of there final consumers combine to make up the consumer market. Customers go through a five-stage decision-making process in any purchase: 1. Need Recognition & Problem Awareness 2. Information Search Customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet, example: food and shelter, while others are not required for basic survival and vary depending on the person. Sometimes in the consumer market people are involved in a purchase decision, example: in planning for a family vacation the father may make the hotel reservations but others in the family may have input on the hotel choice. Therefore, understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases. Consumer buyer behavior refers to the buying behavior of final consumers (individuals and households...
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...Personal Consumption Journal Project MK 385 Consumer Behavior In today’s world of various products and services, businesses aim to excel and lead the competition by marketing the most number of consumers, which is a full time endeavor of business. To survive in the market, a firm or an organization has to be constantly innovating and understand the latest consumer trends and tastes. Marketers need to understand consumer behavior because the decision-making process for consumers is anything but straight forward. Consumers’ behaviors and their purchasing patterns is a huge advantage to understanding the way customers think and the reason for their purchases. Therefore, the study of consumer behavior is important because it allows the marketers to understand the factors which influence the customer’s thoughts while buying any products or services. There are many factors that can affect this process as a person works through the purchase decision, such as external, internal, and marketing influences. For example, culture, group, or purchase situation are just a few of external influences. Perceptual, attitude, personality, lifestyle, roles, and motivation are a few of internal influences that can affect a consumer’s purchase decision. Marketing strategies, such as price, product, place, and promotion influences the consumer as well. The number of potential influences on consumer behavior is endless. However, by understanding the key influences, marketers can adapt and improve...
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...Why is Consumer Behavior Important? Manisha Shrestha MKT 212 Professor Ross March 2, 2012 Why is Consumer behavior important? “Consumer behavior” is the understanding of why, how, where and when consumers make purchases and based on what do they those decisions. It involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs and making purchase decisions. Understanding these psychological patterns of consumers help companies produce or provide to the extent where the customer needs are satisfied, as they are the important person to any company. *Why consumers make the purchase they make? *What factors influence consumer purchases? *What are the changing factors in our society that influence the customers? These are some of the basic questions that companies or firms need to analyze and study to improve their marketing strategy. In today’s world of rapidly changing technology and increasing competitions, consumer tastes are also characterized by fast changes. A company’s success largely depends upon the consumer’s behavior and today’s consumer are very aware about the products available in the market. Therefore, understanding their behavior helps companies design the optimal product, determine what location, what price and which method of promotion would be most effective. The study of consumer behavior helps companies improve the performance of the organization and...
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...How do consumers respond to various marketing efforts the company might use? “Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Consumers make many buying decisions every day. Most large company’s research consumer buying decisions in great detail to answer questions about what consumers buy where they buy, how and how much they buy, when they buy, and why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behavior is not so easy—the answers are often locked deep within the consumer's head. The company that really understands how consumers will respond to different product features, prices, and advertising appeals has a great advantage over its competitors. The starting point is the stimulus-response model of buyer behavior. Marketers must figure out what is in the buyer's black box. Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces and events in the buyer's environment: economic, technological, political, and cultural. All these inputs enter the buyer's black box, where they are turned into a set of observable buyer responses: product choice, brand choice, dealer choice, purchase timing, and...
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...Pillsbury Cookie Challenge What are consumer insights? In order to market a product, we must first understand customer needs and wants. Consumer insight is the information gathered about a target population in order to better align market strategies with consumer needs. The goal is to better understand the customer in the Pillsbury Cookie Case, Guillen focused on his cookie customers. What types of challenges can benefit from consumer insights? One type of challenge that can be solved using consumer insights is increasing volume and profit growth of particular business segments. Generating new insights into current and potential consumers allows for a more focused marketing effort that appeals to consumers. Understanding the consumer insights of geographic, demographic, psychographic, and behavioral segments allows for a more effective targeting strategy. In the case of refrigerated baked goods, Guillen needed to gain market insights on his cookie customer market. Geographically separating the his Canadian market from the U.S. segment allowed Guillen to target and study consumer behaviors to better understand his current and prospective cookie customers. The better Guillen understands his consumer, the better he can improve and market his product to reflect customer wants. For the most part, increased customer insight leads to increased sales volumes. How does a company obtain consumer insights? Consumer insights are developed through quantitative and qualitative research...
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...Consumer Behavior Outline of the Study The first chapter of the study covers the introduction about the company (Iceland Frozen Foods) and consumer behavior and follows with the scope and significance of the study. The second chapter of the study will represent several literature reviews on research relating to the previous studies carried out by various authors. The third chapter of the study will conduct the methodology chapter, which will indicate the research methods and designs. The analysis and finding for the research study will be in the fourth chapter. The final and fifth chapter will conclude the study and provide useful and justified recommendations for the further research (Welford, 2007, 52–62). Observing consumer behavior while they are shopping gathers a wide variety of information about their behavior in choosing products and services. The consumer behavior is observed upon number of observable phenomenon like physical actions, such as the actual shopping pattern of consumers (in store or through online interface); verbal behavior, such as sales conversation between buyer and the seller or communication of buyer with other buyers in the store; expressive behavior, such as facial expressions and tone of voice or behavior while interacting with product features they are buying; and temporal patterns, such as amount of time spent by consumers while making their purchase decision (Zikmund, pp. 239-240). The marketing activity of Starbucks can be made more effective...
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...Project Marketing Management 571 Analyzing Consumer Buying Behavior Factors that influence consumer decision making Consumer buying decision process Techniques of analyzing consumer buying behavior The aim of marketing is to meet and satisfy target customers' needs and wants better than competitors. Marketers must have a thorough understanding of how consumers think, feel, and act and offer clear value to each and every target consumer. Successful marketing requires that companies fully connect with their customers. Adopting a holistic marketing orientation means understanding customers – gaining a 360 degree view of both their daily lives and the changes that occur during their lifetimes so that the right products are always marketed to the right customers in the right way. The product must bring a benefit to the customer in order for the company to maximize its profit. Consumer decision-making processes are undertaken by consumers in regard to potential market transaction before, during, and after the purchase of a product or service. A consumer's buying behavior is influenced by cultural, social, and personal factors. Cultural factor carries the most impact on consumer buying decision-making. Culture is the fundamental determinant of a person's wants and behavior. Two children growing up in different countries would have significantly different beliefs and values in life. Therefore their buying decision-making will not be the same...
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...An understanding of consumer behavior can mean better business for companies, better public policy for governments, and a better life for individuals. 2. While consumer behavior refers to human thought and action, it is not considered a field of study. 3. Consumer behavior can be thought of as the actions, reactions and consequences that take place as the consumer goes through a decision making process, reaches a decision and then uses the product. 4. Consumer behavior is the set of value-seeking activities that take place as people go about addressing realized needs. 5. The basic consumption process begins with the consumer recognizing that he or she wants something new. 6. The basic consumption process involves a consumer assessing the costs and benefits associated with a choice. 7. The final step in the consumption process is satisfaction. 8. An exchange is the acting out of a decision to give something up in return for something of equal value. 9. Consumer behavior represents the process by which goods, services, or ideas are used and transformed into value. 10. Costs involve more that just the price of the product. MKT 305 WK 2 QUIZ 1 CHAPTER 1 & 2 To purchase this visit here: http://www.activitymode.com/product/mkt-305-wk-2-quiz-1-chapter-1-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MKT 305 WK 2 QUIZ 1 CHAPTER 1 & 2 MKT 305 WK 2 Quiz 1 Chapter 1,2 TRUE/FALSE 1. An understanding of consumer behavior...
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...SUKKUR INSTITUTE OF BUSINESS ADMINISTRATION SUKKUR Faculty of Business Administration CONSUMER BEHAVIOR Programs & Class: BBA & MBA (Specialization) Semester: Spring 2016 Credit Hours: Instructor: Mr. Nabeel Nisar 03 Pre-requisite Courses: Principles of Marketing Co-requisite Courses: Post-requisite Courses: e-mail: nabeel.nisar@iba-suk.edu.pk Office Hours: 9 AM-5 PM Consulting Hours: Monday 11:00 AM-1:00 PM & Wednesday 11:00 AM-1:00 PM (kindly confirm your schedule via email for these days) Office Location: Room No: 102 Block II EVALUATION 1. Group Project 2. Individual Project 01 3. Individual Project 02 4. First Term 5. Second Term 6. Final Examination 15 % 10 % 05 % 15 % 15 % 40 % RECOMMENDED BOOKS: Publisher Name & Edition S.No Book Name Author/s Name 1. Consumer Behavior Schiffman and Leslie Lazer Pearson Education REFERENCE BOOKS: 1. Consumer Behavior: Soloman, M Buying, Having and Being Prentice Hall 2. Consumer Behavior: Managerial Perspective Shelth, J. and Mittal, B Thomson-South Western 3. Consumer Behavior Eagle, Blackwell and Miniard Thomson-South Western A Official Course Outline Template Page 1 of 13 DIGITAL & WEB RESOURCES: http://iradio.oum.edu.my/icast/fbm/learning_segment/?p=archive&cat=bbgp_4103_consumer_behavior http://builderradio.com/blog/?p=678 http://www.london.edu/videoandaudio/facultyandresearch/ http://www.consumerpsychologist...
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...*CONSUMER BEHAVIOR: *THE PSYCHOLOGY OF MARKETING Introduction The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points: Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person...
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...Reflection essay on Consumer Behavior «We used to think that the enterprise was the hardest customer to satisfy, but we were wrong. It turns out, consumers are harder than the enterprise because the consumer will not give you a second chance.» (Eric Schmidt) Using the provided material and basic knowledge of this subject I got acquainted with the definition of consumer behavior. The main object of the system of marketing is good`s customer (or consumer) which can be an individual person or a whole organization. All final consumers combine to make up the consumer market. It is important to know the degree of involvement of certain groups of consumers in making decisions about the purchase of certain goods. In the system of marketing the key role is the understanding the mechanism of formation of purchasing decisions, which can have its own characteristics, depending on the socio-psychological characteristics of the buyer or the nature of the purchased goods. Thus, in accordance with one of the patterns of behavior for the buyer, this mechanism includes: awareness, interest, desire and effect. It is important to know how and when the customer begins to show interest in the product, under the influence of what factors consumer makes a decision. Enterprise (company) cannot succeed if it doesn`t take into consideration the needs of customers. Consumer behavior is defined as the activities directly related to yield, consumption and disposal of goods and services, including decision-making...
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