Customer Listening: Consumer Behavior & Purchase Process

Customer Listening Overview

• Chapter 1 discusses customer listening, focusing on consumer behavior and customer satisfaction measurement.

Consumer Behavior

• Consumer buying behavior includes all actions directly related to purchasing goods/services, influenced by various factors.
• Consumers differ in age, preferences, gender, and social class.
• Decisions are influenced by personal, psychological, and sociological factors.
• Managers use behavioral models to simplify decision-making processes.

Stages of the Purchase Decision Process

• Awareness of a need prompts the buying process.
• Information search follows, involving store visits and seeking advice.
• Options are evaluated by comparing pros and cons.
• A purchase decision is made, leading to product acquisition.
• Post-purchase attitudes include satisfaction or disappointment.

Participants in the Purchase Process

• Direct participants influence purchasing decisions directly.
• Consumers/users may offer recommendations before purchase.
• Prescribers make decisions for the buyer or strongly recommend the product.
• Influencers provide advice or create a bandwagon effect.
• Marketing stimuli (advertising, sales promotions) play a key role.
• On a cognitive level, marketing informs consumers and integrates brands into their consideration.
• On an affective level, marketing promotes the product.
• On a conative level, marketing tries to incite purchase.

Factors Influencing Purchases

• Purchasing behavior is complex, variable, and diverse.
• Endogenous Factors: related to the individual,
• Personal Factors: age, gender, personality, lifestyle, experience,
• Exogenous Factors: related to the environment.
• Environmental Factors: family, social groups, social classes, culture.
• Additional Factors
• Needs: a sensation of lack felt and the driver to act.
• Motivation: The motivations that drive the person's actions depend on their own personal character such as : Hédonistes, Oblatives, or Auto expression.
• Attitude: A predisposition learned to respond positively/negatively to an object.
  • Cognitive facet: Beliefs about the object.
  • Affective facet: Evaluation of the object.
  • Conative facet: Actions towards the object.
• Perception: The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
  • Selective attention: filters information based on needs and expectations.
  • Selective distortion: distorts information to align with pre-existing views.
  • Selective retention: remembers information that supports beliefs.
• Obstacles / Freins: negative psychological factors that hinder people like ; risks people are willing to take, and inhibitions or their rejected attitudes.

Measuring Customer Satisfaction

• 1. Needs
  • Basic needs such as physiological and safety needs
  • Psychological needs: feeling a sense of belonging, prestige, and accomplishment
• 2. The need is defined by the sensation experienced by an idividual
• 3. Some examples include:
  • Physical needs: wanting to feel safe, eating, resting
  • Psychological needs: finding their identity, finding a sense of accomplishment.
• Important to define satisfaction accurately because
  • It is based on expectation of the outcome rather than the outcome itself
  • It is based on the perception, based on feeling not facts

Realizing the Mesure of satisfaction

• 7 steps to achieve satisfactory
  1. Enumerate the service and customers that must be checked
  2. Identify the priorities of mesurement
  3. Develop a method to analize the situation or choose a framework that can fit
  4. Implementation of the plan in the right setting
  5. Analyze the findings, and decide where they are on the plan created in 3
  6. React to the findings, change where necessary to imporve and adapt
  7. Rate the changes to see if they met the requirements, and if not, recommencer

A. Enumerate the service and customers to review

• 1. What kind of service ?
  • Physical service : nature?
  • Quality of service : intensity and time?
• 2. Which Customers?
  • People directly involved in service ?
  • People not directly involved in service?
• How to classify data?
  • In segment
  • In volume
  • In season depending on the service
  • Other

B. Develop the mesures to asses service and customers

• 1st Step: Identify the service that is required to make it adequate
• 2nd Step: Methods of assesment
  • Complaints from customers
  • Feedback from customers.
  • Sondages with active feedbak
    • Reproductability is important
• 3th Step: Metrics
  • 5 is normally the accepted rating where it is rated from "very unsatisfying" to "very satisfying"
• 4th: Segment the clients to the different type of client
  • Aleatoires
  • Non- Aleatoires

Mise En Oeuvre

• 1. Person in Charge
  • Nommer un responsable is important
• 2. Trouver les ressources to help and group them
  • Create a group and mobilise the personal to communication and discuss
  • Be able to react and improve
• 3. Avoir services externe
  • If all else fails, get an expert

C. Analyze and report

• 1. Show the structure how it afects the satisfaction
• 2. All must be classified according to is importance but with clear and concise information

D. React

• 1. Communication is important as the clients can have access to the information to stay in the loop
  • Get feed back as it is important
  • Improve quickly

E. Recommencer

• Continually imporve and evolve, and find balance and rhythm

Analyse of Information

• 3 ways of analizing information in graph form:
• 1. The matrice where you can see importance related to the satisfaction
• 2. the same as about by modeling the graph
• 3. by valuing which clients value you most on the graph

Conclusion

• Key points:
  • Client satisfaction is paramount to an organization to be at peak efficency.
  • The measurement must reflect all key ingredients to have a fair result
  • Multimensionnal management is the key to a great result.