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C H A P T E R

5. C H A P T E R. Customer Analysis. Meaning of a Customer: - Current and Potential - Immediate and Final. Major Topics. Review of Major Issues from BA390* An Approach for Customer Analysis* Long-term Value of a Customer Market Segmentation.

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C H A P T E R

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  1. 5 C H A P T E R Customer Analysis Meaning of a Customer: - Current and Potential - Immediate and Final

  2. Major Topics • Review of Major Issues from BA390* • An Approach for Customer Analysis* • Long-term Value of a Customer • Market Segmentation

  3. Major Topics for Consumer Behavior • Consumer Decision Process • Types of Buying Decisions • Influences on the Rate of New Product Adoption (RCCDC)

  4. What We Need to Know about Current and Potential Customers • Who buys and uses the product? • What customers buy and how they use it? • Where customers buy? • When customers buy? • How customers choose? • Why they prefer a product over others? • How they respond to marketing programs? • Will they buy it (again)?

  5. 1. Who Buys and Uses the Product • Buyer versus Influencer and User • Describing Consumers • Demographic • Socioeconomic • Personality • Psychographics and values

  6. Buying Roles and Needs/Benefits Sought

  7. Who Buys and Uses the Product (Cont’d) 3. DescribingBusiness Markets • Demographic • Operating variables • Purchasing approaches • Situational factors • Personal characteristics

  8. 2. What Customers Buy and How they Use it • People buy Benefits, not Products • Product Assortment (RFM): Grocery Products • Recency • Frequency • Monetary Value • Product Use

  9. 3. Where and When Customers Buy • Where issue  Desired Service Output in Shopping • When issue  Seasonality

  10. 4. How Customers Choose Multiattribute Model Questions • Which attributesdo customers use to define a product? • What are the perceptions of the products on the attributes?* • What are the importance weights? • What decision rule is used to combine the information? • Compensatory • Noncompensatory

  11. Bank Perceptual Map B• A• Courteous personnel C• E• D• Convenient ATM locations

  12. 5. Why they prefer a product/brand 1. Three elements of a customer value of a brand • Importance of the usage situation • Effectiveness of the product category in the situation • Relative effectiveness of the brand in the situation 2. Sources of Customer Value • Economic • Functional • Psychological: Brand Equity

  13. Measuring Brand Equity • Awareness. • Associations. • Attitude. • Attachment..

  14. [Manifestations of] Customer Value • Price. • Price sensitivity. • Level of Satisfaction. • Complaints and compliments. • Word-of-mouth.*

  15. [Manifestations of] Customer Value (cont’d). • Margin/profit contribution. • Dollar sales. • Repeat purchase rate.

  16. Assessing the Value of the Product Category • Determine the uses of the product • Estimate the importance of the uses • List competing products for the uses • Determine the relative effectiveness of the product category in each usage situation

  17. Personal Computer Product Category Value

  18. Assessing the Value of the Brand/Product • Direct Ratings • Constant Sum Ratings • Graded Pair Comparison* • Conjoint Analysis

  19. Paired Comparison Example: Soft Drink Preference

  20. Will they buy it (again)? • Satisfaction • Intention • Behavior • Loyalty: ex) Casino Study

  21. Methods for market segmentation • Descriptive Purpose Cluster Analysis Tabular Analysis* • Prescriptive Purpose Regression Analysis: Individual-based Latent Class Analysis: Segment-based

  22. Cluster Analysis Illustration

  23. Raw Data: Cranberry Sauce Usage Cooking Attitude

  24. Cranberry Sauce Usage Percentages

  25. Customer Analysis Illustration: Energy Bars • Who the Customers are: • 63.7 percent of volume is from households with greater than $40,000 income • 32.4 percent of volume is from households with greater than $60,000 income • 72.8 percent of volume is from households with no kids • 65.8 percent of volume is from households where the Head has some college education • 39.4 percent of volume is from households with the Head under 35 years old

  26. Percent Who Have Eaten Energy Bars in the Last Six Months

  27. Customer Analysis Illustration: Energy Bars (cont) • What They Buy: • Convenience • Taste • Texture • Health Benefits • Performance/Energy • Hunger Satisfaction • Price (expect to pay $1.00 to $1.50 per bar) • Packaging/Buy In Bulk • Availability

  28. Customer Analysis Illustration: Energy Bars (cont) • What Use For: • Meal Replacements • Snacks • Athletic Energy Booster

  29. Customer Analysis Illustration: Energy Bars(cont) • Where They Buy: • Health Food Stores • Outdoor Retailers (e.g., REI) • Grocery Stores • Drug Stores • Convenience Stores • Mass Merchandisers • Club Stores

  30. Customer Analysis Illustration: Energy Bars • Customer Segments: • “Hard-core Athletes” • “Musclemen” • “Dieters” • “Health Purists” • “Health Conscious and On-the-Go” • “Sports Enthusiasts” • “Specialty Segments” • “Nutrition-seeking Families”

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