2. Those activities directly involved in obtaining , consuming and
disposing of products and services, including the decision processes
that precede and follow these actions
‘You cannot take the consumer for granted any more’
Therefore a sound understanding of consumer behavior is essential for
the long run success of any marketing program
Out of 11000 products launched by 77 companies, only 56% are
present five years later – Kuczmaski & Associates
Only 8% of new product concepts offered by 112 leading companies
reached the market. Out of this 83% failed to reach marketing objectives
8. Problem
Recognition
Self actualization Needs
(Self development)
Information
Search
Esteem Needs
(Self Esteem, recognition, status)
Evaluation of
Alternatives Social Needs
(sense of belonging, love)
Purchase
Decision Safety Needs
(security, protection)
Post purchase Physiological Needs
Behavior
(Food, water, shelter)
9. Total Set Awareness Set Consideration Set Choice Set Decision
Apple
Apple
Dell
Dell Apple
HP
Toshiba
Compaq
HP
Toshiba
Dell
Toshiba
Apple
Dell ?
Compaq
NEC
Identify the major attributes & benefits that customers valueAssess the quantitative importance of the different attributes & benefitsAssess the companies & competitors performancesExamine CustomersMonitor customer values overtime
CLV describes the net present value of the stream of future profits expected over the customer’s lifetime purchasesUsed for short term, brand building marketing activities that help in increasing customer loyalty
Understanding Perception & Know how of the customers