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 Over View
¢ Customer: Entity that receives or consumes
products (goods or services) and has the
ability to choose between different products
and suppliers
¢ Customer Analysis: Collection and evaluation
of data associated with customer needs and
market trends, through customer focus
groups, customer satisfaction measurement,
field testing, etc.
 ±hat we need to know about
customers
ß ±ho buys and uses the product / service
ß ±hat customers buy and how they use it
ß ±here customers buy
ß ±hen customers buy
ß How customers choose
ß ±hy they prefer a product
ß How they respond to marketing programs
ß ±ill they buy it (again)?
 ±ho buys and uses product / service
ß Initiator (identifies need for product / service)
ß Influencer (provides info or preference)
ß Decider (decides on spending the money)
ß Purchaser (makes the purchase)
ß User
 Example: hospital food service
ß Initiator: dietitian wants better nutrition
ß Influencer: doctors want happy patients
ß Decider: administrator wants low cost
ß Purchaser: agent wants good contract
ß User: patients want edible food
 Consumer segments
ß Geographic
ß Demographic
ß Psychographic
ß Behavioral
 Geographic Segments
ß Region of country: western, central or eastern
ß City, town or village
ß Climate: northern, southern
 Demographic Segments
ß Age category: cohort?
ß Gender: male, female
ß Family life cycle: single, married, young child, older
child, ͞empty nest͟, elderly
ß Income category: lower, middle, upper
ß Occupation: professional, managerial, etc.
ß Education?
ß Religion?
ß Ethnic group?
ß Nationality?
 Psychographic Segments
ß AIOs (attitudes, interests and opinions)
ß Lifestyle: swingers, physical fitness buffs,
techies, etc.
ß Personality: gregarious, communal, ambitious
(not a good predictor of purchase behavior)
ß Social class?
 Behavioral
ß Occasions: regular (e.g., breakfast), special
ß Benefits: quality, service, economy, speed
ß User status: user, non-user, first-time, regular
ß Usage rate: none, medium, heavy
ß Readiness stage: unaware, aware͙ready
ß Attitude toward product: positive, neutral,
negative
 Business segments
ß Demographics
ß Operating variables
ß Purchasing approaches
ß Situational factors
ß Personal characteristics
 Demographics
ß Type of industry
ß Size of industry
ß Location
 Operating Variables
ß Operating technologies
ß User status: non-users, light, medium, heavy
ß Need for services: few or many
 Purchasing variables

ß Centralized or decentralized purchasing

ß Structure: e.g., financially or engineering driven
ß Relationships: quanxi?
ß Purchase policies: leasing, renting, bids, etc.
ß Criteria: quality, service, price
 Situational factors
ß Urgency: quick, flexible delivery
ß Applications: specific or comprehensive
ß Size of order: small, large, or any
 Personal characteristics
ß Similarity
ß Attitude toward risk
ß Loyalty (relationship management)
 ±hat customers buy
 Customer buy benefits not features
 RFM approach:
ß Recency
ß Frequency
ß Monetary value
 Stages of potential customer
ß Unaware
ß Aware
ß Accepting
ß Attracted
ß Active
ß Advocates
 How they use product
ß Customers vary in how products are used
Home, office, picnic
Breakfast, snack, dinner
Dental floss for sewing up turkeys
ß Customers vary in how products are combined
Coffee, tea or wine with meal
T-shirt with jeans
 ±here customers buy
ß Personal computers
Specialty retailer to discounter
ß Fresh vegetables
Green grocer to super-super market
ß Books
Small bookstore to Amazon
ß Airline tickets
Travel agent to Internet
 ±hen customer buy
ß Timing e.g., season, festival, meals
 How customer choose
¢ Advertisements, an-store personal, brochures,
magazines, internet
¢ Multi-attribute model:
ß Attributes
ß Perceptions
(perceptual mapping)
ß Importance weights
ß Combining
the information