1. 5-1

2. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved. Customer Analysis Chapter 05

3. 5-3 What We Need to Know about Current and Potential Customers

4. 5-4 Who Buys and Uses the Products  Initiator–identifies the need for product  Influencer–has informational or preference input to the decision  Decider–makes the final decision through budget authorization  Purchaser–makes the actual purchase  User

5. 5-5 Buying Roles and Needs/Benefits Sought

6. 5-6 Categories for Describing Consumers  Demographic  Socioeconomic  Personality  Psychographics and values

7. 5-7 Major Segmentation Variables for Consumer Markets

8. 5-8 List of Values  Self-respect  Security  Warm relationship with others  Sense of accomplishment  Self-fulfillment  Sense of belonging  Respect from others  Fun and enjoyment  Excitement

9. 5-9 Lifestyle Typologies

10. 5-10 Major Segmentation Variables for Business Markets

11. 5-11 Key Variables Used in Direct Marketing Campaigns in Europe

12. 5-12 What Customers Buy and How They Use It  Benefits  Purchase Pattern (Product Assortment)  Recency  Frequency  Monetary value

13. 5-13 Multiattribute Model Questions  Which attributes do customers use to evaluate a product?  What are the perceptions of the products on these attributes?  What are the relative importances of the attributes?  What decision rule is used to combine the information?

14. 5-14 Bank Perceptual Map

15. 5-15 Conjoint Analysis: Notebook Computers

16. 5-16 Importance Weight Variation by Segment

17. 5-17 Multiattribute Decision Making: Compensatory Rule

18. 5-18 Sources of Customer Value  Economic:  The economic benefit a customer derives from using a product  Functional:  Those aspects of a product that provide functional or utilitarian benefits to customers  Psychological:  The image of the product, including how the product “feels” and whether that feeling matches the image the customer wants to project

19. 5-19 Measuring Brand Equity  Awareness  Associations  Attitude  Attachment  Activity

20. 5-20 Manifestations of Customer Value  Price  Price sensitivity  Satisfaction  Complaints and compliments  Word-of-mouth  Margin/profit contribution  Dollar sales  Competitive activity  Repeat purchase rate

21. 5-21 Assessing the Value of a 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

22. 5-22 Personal Computer Product Category Value

23. 5-23 Dollar Metric Example: Soft Drink Preference

24. 5-24 Valuing a Hypothetical Customer

25. 5-25 Calculating the Expected Value of a Customer

26. 5-26 The Impact of Growth

27. 5-27 Desirable Criteria for Segments  Sizable  Identifiable  Reachable  Respond differently  Coherent  Stable

28. 5-28 Cluster Analysis Illustration

29. 5-29 Cluster Analysis: Phone Company Market Segmentation Scheme

30. 5-30 Raw Data: Cranberry Sauce Usage

31. 5-31 Cranberry Sauce Usage Percentages

32. 5-32 Cranberry Usage Data by Person

33. 5-33 Light and Heavy Buyers by Mean Purchase Rates for Different Socioeconomic Cells

34. 5-34 Four-Segment Solution for the Instant- Coffee Market

35. 5-35 Preference Segmentation and Price Sensitivity