Consumer Behavior and the Purchase Decision Process

The Idea is to see the Needs of the Consumer, the Characteristics of the Products and / or the Services that they need, the dynamics of the market and the Environment, to make a match between all these variables.

The key to avoiding the negative effects of markets is to focus and discover what is happening with consumers and their potential needs.

“The Game Theory analyzes the Strategic Interactions in which the result of several decisions we make will also depend on the decisions of the Others”

John Nash

Strategy of Conflict “We would like to control and influence the behavior of others in a conflict or negotiation, and we would like, therefore, to know how the variables that are subject to our control can affect their behavior”

Thomas Schelling

– Most of the time Personal interest and ethical values ​​are always in conflict, almost all the time, that is to say, the theory of personal interest wins ”

“This is what happens when in the Game of the Ultimatum Game, someone offers less than $ 2 of $ 10 to distribute, to stay with $ 8, the responder does not accept and both lose, this is what is called the “Negative reciprocity” for having been treated unfairly by the person ”

George Stigler-Nobel Prize in Economics

“Despite all the resources spent on market research, almost 80% of the new products that come onto the market fail. Consumers say that they want something, companies create something and once available, no one buys it, why, many times consumers know what they want, but the marketers do not”

MIT- Massachusetts Institute of Technology

Needs of Consumers

“Clients and Consumers do not always know what they want …

… but that does not mean that we do not think about how to get to them ”

The Customer’s Mind is not the Voice of the Customer.

Needs, Drivers, Handlers and Features

The needs refer to consumers-the value they receive for the product or service.

The characteristics refer to the products- the way in which an organization decides to apply a technology to reach the customer’s need.

The drivers or managers refer to the dynamics of the market-the particular points of the needs or characteristics that consumers want to improve.

“Consumers tend to think only in terms of characteristics relative to the needs of which they are aware”

“Approximately 1 million quarter-inch drills will be sold this year”

“This does not mean that customers want quarter-inch drills”

“This means that customers want to make holes of a quarter of an inch”

Director of Marketing Black and Decker

“The idea is not to make more laptops with more light but also to make the places or places that people see better”

That people achieve better focus-This is where the need is.

Identifying the Needs of Customers and Consumers

1.- Evaluate the industry trends

– Past patterns and Present patterns

– Competitive and industrial firms

2.- What are the needs in which the material products of the market are being focused?

3.- Interaction of the same clients and consumers

Positioning, Searching Customers and Consumers

1.- Visits

2.- Panels

3.- Social media and advanced research

4.- Planning and Development of joint work

5.- Through indicators, metrics, analytics and measures:

– Internet and web monitoring

– Street monitoring

– Ethnographic and psychological studies

– Analysis of internal interaction documentation

You have to look for ways to figure out and solve human behavior.

Why do people buy?

“People do not drink Cocacola because it tastes good, people buy Cocacola because people feel alive”

Guidelines for the Interaction with Consumers and Clients:

-Questions:

* -What you like or dislike (Market research) ?

* -What are you trying to do, how would you do it better, faster cheaper (research problems) ?

* -What adaptations have you made to improve (leading user)?

* -What do you do, before, you lie and after you use the product (context analysis) ?

* -What new technologies are being considered (technological forecast) ?

* -Keep what the different characteristics, needs and differences are in mind.

* – Quantify whenever possible.

* Do not expect consumers and clients to do your job.

Interesting tips regarding Memory and Consumer Behavior

“Memory is malleable, not only does it tend to disappear with time, but it changes all the time each time it comes to mind, with each new experience of each person”

Elizabeth Loftus, University of Washington

“The Memory of the consumers are formed by the society and the culture of the world in which the consumer develops and lives, and in which they define themselves, this is what is called sins of suggestibility”

Jeffrey Prager, Professor of Sociology at UCLA

Learn and Memory are closely connected processes.

Through learning one acquires new information. And through the memory one keeps the information that one would then take out to be used.

There are three types of memory: semantic (words and symbols), episodic (time, place and some situational aspects of events) and Procedimental (when one learns things, skills, etc.).

Memory can be explicit (which one can voluntarily bring to mind) or implicit (can not be brought voluntarily, unconscious memory.

Almost to Conclude and Remember:

1.- We must focus on understanding the needs and dynamics of the market and characteristics that consumers want and need, not only to hunt new technologies that change everything.

2.- We must monitor the technology that exists outside of our industry, and in related areas, to identify the technology that can address your consumers or potential consumers in a better way than your old technology.

3.- Disruptive technologies will not necessarily give you an innovative change of success. However, you can not predict the future, but you can anticipate changes and prepare for them, if you focus on market dynamics, the needs and characteristics that consumers have and look for new technologies. ”

4.- We are in the new era of Artificial Intelligence, so make sure to learn about it, all new model business and how to improve all you business and your profession.

And almost finally:

“Every time we reach a comfort zone, we have to find a way out of it, because being comfortable in a business is extremely dangerous.”

Daniel Lamarre- President Cirque DuSoleil

“Let’s march against Philip”

I do not consider advertising as an entertainment or an art form, but as a means of information. When I write an advertising article, I do not want you to tell me that you found this very creative, but I want you to find it so interesting that you buy the product.

When Aeschine gave his speech, they said, “How well he speaks.” But when Demosthenes opened his mouth and spoke, they said, “Let’s march against Philip.”

David Ogilvy- Ogilvy on Advertising

And finally

Recommendations:

-Do not ignore the current or potential client, nor focus on only what the client wants, focus on your need.

-Focus on drivers of the future or potential, those that emerge from consumers, changes to new drivers, or those that emerge when the environment changes.

-Imply processes that help anticipate changes, such as collecting data, needs, see the competitor.

-The Manager has to make changes, work to improve and make changes, if he does not do it, he can not be called Manager, he will have to be called Manager or something else.

“Do not be a Copy-Cat”

Rudyard Kipling wrote this poem about a wealthy businessman named Sir Anthony Gloster. On his deathbed, the man reviewed the course of his life for the benefit of his son, and impetuously referred to some of his competitors:

They copied everything they could…

But they could never copy my mind..:

And I left Them sweating and stealing…

A lot more than a year and a half ago…

If you ever had the fortune to create a large advertising campaign, you could soon see another agency copying it. This is annoying, but do not let this worry you, nobody has ever built a brand imitating another publicist.

The Imitation could be “A Sincere Form of Plagiarism”, but this is the Mark of an inferior person.

David Ogilvy

Ralh Waldo Emerson and Thomas Carlyle once walked through a Field. When Emerson saw this Field, the Earth and the People so poor, He asked Carlyle,

“What can we get from an Earth like this?

Carlyle quickly said, “We will take your People”

What kind of men can we get from this poor Earth?

And what will become of them when they come to our Lands?

They work hard. The best proverb of my father that whispers in my ears comes to my mind “Hard Work never kills Man”

David Ogilvy

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