Next week, Next blog…:-D

Hey everybody!

Let us continue with my next blog about the module Understanding the customer. This week we learned something about the decision-making-process and once again about perception. We started with a group activity; our task was to draw a word picture of a typical over 50 year old. This activity is based on perception and experience. Our picture was influenced by people we know or things we have seen. 

After that we talked about Buyer Decision Making Process of Kotler. This process is divided into five stages. The model implies that customers pass through all stages in every purchase. But in reality customers often reverse or skip some of the stages because they have gained experiences concerning the product.

Let us explain the model with an easy example; it is divided into five stages. The whole process begins with need recognition

(I need new shoes) or is a reaction to the marketing stimulus (Sale at a Footlocker Store). Customers need further information about the product; they can use several resources (advertising, newspapers, experience, etc.) for that. The third stage is based on evaluation; the customer has to choose between the different alternatives (brand, product, service). After that the customer is willing to buy the product. The final stage is the post-purchase. The customer decides whether the purchase was useful and a good investment. The customer may feel that an alternative would have been preferable, so he/she buys another brand next time.

The buyer’s decision is not only influenced by experience but also by risk. Everyone has a different tolerance to risk. The perceived risk can be defined as: Consumer's level of uncertainty regarding the outcome of a purchase decision, specially in case of high priced item such as a car, or a complex item like a computer. Consumers attempt to reduce their anxiety by collecting more information and by seeking the recommendations of a peer group or an entity (person or consumer advocacy group) considered an expert on the subject matter.  

Laurent & Kapferer argue that a consumer’s level of involvement will be affected by six different components:

·         Finance

·         Time

·         Performance (Is it working?)

·         Ego (How do I feel about buying the product?)

·         Physical (Can it hurt me?)

·         Social

Our second activity was based on that model. We should consider the likely level of involvement of 1. 21-year old and 2. a 46-year old when they a) buy a car, b) buy a mobile phone, c) buy underwear for their partner. A 46-year old has by buying a car for example a lower involvement in Ego as a 21-year old. And normally the financial risk is also lower. Buying is based on expectations therefore the level of involvement is different for the boy and the man.

My last blog defines the three stages of perception. The second stage is attention: The ability to focus selectively on a selected stimulus, sustaining that focus and shifting it at will.  The goal of companies is to arouse customers’ attention. Companies use different techniques in their advertisements. Many are hiring famous and pretty people to take part in a commercial. Others prefer to create a really funny advertisement. These two videos are good examples for that.

The Perceptual Set was our next discussed theory. It can be described as an internal rulebook or checklist. It is unique and can prevent from problem solving. This image for example was designed to be interpreted as an old or a young woman.

Another topic of the lesson was “Gestalt Psychology”. Gestalt psychology is based on the observation that we often experience things that are not a part of our simple sensations. Gestalt psychology is based on the observation that we often experience things that are not a part of our simple sensations. 

The theory is based on four rules:

a) Figure & Ground (Figure is the central element, background catches less attention)

b) Grouping (people tend to group together objects that share similar physical characteristics)

c) Closure (people need to fill the gaps; example: an incomplete picture)

d) Stimulus ambiguity (People recognize an item, but they need to interpret it or find a context)

Here you will find some further information about Gestalt Psychology. 

The last aspect we talked about was perceptual maps.

In this graphic you can see two dimensions: economical/less economical and Makes your hair look beautiful /makes it not. On this map you can see the different placements of hair washing products. This map shows the perception of consumers regarding quality and economy. 

Well, that is it for today. I hope you had fun while reading :-) 

See you soon!

Sabine