Wk4 Customer Analysis

8/7/2019 Wk4 Customer Analysis

1/45


2/45

` Know the goals of and steps in customer research.

` Know the relevance and process of segmentation.

`Apply basic models in measuring customerperceptions.

` Know the advantages and limitations of qualitativeand quantitative research.

` Be able to trace secondary sources of customerdata.


3/45

` Customer research can be used for different

purposes

` Distinctions are often based upon the type ofresearch being conducted Exploratory: Qualitative research

Descriptive: Quantitative research

Causal: Experiments


4/45


5/45


6/45

` There are four usage situations or goals of the

customer analysis

Use forsegmentation and choice ofthe targetmarket

Use as a basis forstrengths and weaknesses

research and positioning decisions

Use to check achieved results and to measure theeffects of marketing mix elements

Use to identify competitors


7/45

Goal of customer analysis is information

for

Required data from

primary research

Type of research

Segmentation and choice of target market Who, what, where,

when, why

Quantitative

Positioning and strengths and weaknesses Value hierarchy and

customer

satisfaction: why,

why not?

Qualitative and quantitative

Analysis of results (control) and research on

effects

Why, why not, e.g.,

brand awareness,

brand associations,customer

satisfaction

Quantitative

Competitor analysis and competitors Who, what, why, why

not: chosen brand

Quantitative


8/45

` A segmentis a group of potential customers` Researching segments relates to the first dimension of

the marketing strategy Choosing a target market ortargeting

` If the following four conditions are met the segment

maybe considered Homogeneity/heterogeneity Sufficient size Measurable/identifiable Accessible

` Only quantitative research can provide insight into theseconditions This type of research involves collecting a large quantity of data

from a large number of people


9/45

` Segmentation analysis is divided into three

phases

Collection of the data tools such as in-depth interviews and group discussions

with customers followed by structured questionnaires are

used to obtain as much insight as possible into the

motivations, attitudes, and behavior of the customers


10/45

` Phase two is theAnalysis of the Data Forward Segmentation customers are classified on

the basis of personal characteristics; subsequently,differences between groups in terms of product and

brand characteristics are examined

Backward segmentation This process starts with

groups of customers that demonstrate different

behavior in relation to the product or brand;subsequently a search is made for general

characteristics that can be used to describe the groups


11/45

Category Sub category Variables

Personal (general) 1. Geographic data y Region

y Province, municipality

y Degree of urbanisation

2. Demographic data/ socio-economic

datay Age

y Gender

y Family size

y Family phase

y Religion

y Race

y

Income

y Profession

y Education

y Social status

3. Psychographic data y Lifestyle (Activities, Interests, Opinions)

y Personality

y General values


12/45

Category Sub category VariablesProduct (category) 1. Benefits y Benefits sought = product-specific

values

y Importance of product

characteristics

(price, quality, taste etc.)

2. Purchasing behaviour y Role in decision-making process

(Initiator, Influencer, Decision Maker)

y Buying process

y Buying/Shopping behaviour

3. Usage behaviour y User status

y Usage situations

y Values in usage situations

y Usage amount (light, medium, heavy

users)


13/45

Category Sub category Variables

Brand 1.Brand awareness and attitude y Towards own brand:

- stage in purchasing process

(awareness, attitude, intention,

purchase)

y Towards competitive brands

- consideration set

2. Brand associations

(perceptions)y Own brand

- strength

- relevance

- uniqueness

y Competitors brands

3. Brand loyalty y Behaviour

- customer share (share of wallet)

- switching behaviour

y Emotional

- recommendation: ambassador, fan


14/45

Category Variables

Demographic Industry sector

Company size

Location

Usage variables Technology (required technology at the customer level)

Usage status (heavy user, light user, none)

Customer capacities (need for service)

Purchasing approach Purchasing organization (centralized, decentralized)

Po er structure (technically oriented, financial, etc.)

Types of relationships (strong, eak)

Purchasing policy (leasing, service, systems, etc.)

Purchasing criteria (quality, service, price, etc.)

Situation-related factors Urgency of delivery

Applications of delivered product

Size of order

Personal characteristics Degree of similarity to supplier


15/45


16/45

` Behavior analysis is often based on differences

in the importance customers attach to certain

product attributes or benefits

This form of segmentation is also called benefitsegmentation

Typically two analysis techniques are used for benefit

segmentation

x Factor analysis is used to reduce the data set to a smaller

number of factors

x Cluster analysis is then used to create segments that are as

differentiated from one another as possible


17/45

` The third phase of the segmentation research

process is the description of segments a profile is created for each discovered segment,

based on the scores for the examined variables

The focus is on identifying the most distinguishing

characteristics of the segments, and for identification

purposes, each segment is given a name

Since markets change, the segmentation phases

should be repeated regularly


18/45

` Before research on customer wishes can beestablished it is important to have an idea of whatcustomer wishes are

` Three models can be utilized here Multi-attribute attitude model

Chain of meanings

SERVQUAL model

` These should be viewed as conceptual models


19/45

` This model shows that the value a customer extractsfrom a product is determined by the importance that

customer attaches to certain product characteristics andthe scores of brands on these characteristics

` As the model name suggests, the scores on manycharacteristics lead to the total judgment or attitude


20/45

` This model states thatit is important to knowthe motivation ofpeople to buy

products` The model is a

combination of twoother models:

Goal-means chain ofmeanings

Customer value model


21/45

` Thi l i t r r i lit

` The entr l i e in ing thi el i that thealit f er i e i efinedas thedifference

et een theexpectedser iceand the reali edser ice


22/45

` The SERVQUAL model has identified a numberof dimensions of service quality: Reliability: the extent to which the provider keeps his

or her promises

Security: how sure a customer can be that his or herexpectations are being met (trust in the provider)

Tangibility: all tangible items of a service, such asleaflets and the atmosphere in a bank

Empathy: the degree to which the provider puts itselfin the position of the customer

Responsiveness: willingness of the provider to listento the customer and do what the customer wants


23/45

` Measurement of service quality can be done bymeasuring the expectation of the customer aswell as the realization

Expectation is measured as what the customer wouldideally want apart from the specific provider

The wishes of the customers are never stable and thatcustomers constantly have to be taught what they canand cannot expect


24/45

` Determination of target audiences

` Determination of possible values per target

audienceUsage situations: Where and when is the productcategory used?

General values per usage situation: What is

important in that situation, and why are you in that

situation?

Product-specific values per usage situation: What is

important in those cases in the product category?


25/45

` Determination of the importance of values Importance of general values (general needs):

Importance of product-specific values (product-specific

needs): How important is?

` The importance a customer attaches to a

certain value makes a statement about that

customers needs

` A competitive advantage can be obtainedfrom a characteristic that customers

consider important


26/45

` One method for researching the importance ofcustomer values is to ask directly about theimportance utilizing a rating scale

There are two disadvantages to this methodx Customers often indicate that the consider everything

important

x Customers have a tendency to think concretely: tangiblecharacteristics are often mentioned as being important but in

reality the abstract images are just as important


27/45

`A second method for researching the

importance of customer values is the conjoint

analysis

This method is used to define the importance ofproduct characteristics through a deductive reasoning

process

` The advantages of conjoint analysis is that: The choice process of customers is imitated and

The respondents have to consider implicitly which

characteristics they consider the most important


28/45

` Performance of brands regarding values anddistinctiveness Satisfaction: perceptions of brand performances,

reasons why or why not

Scores and distinctiveness regarding general values:To what extent is brand X a brand that possesses theabstract characteristic . . . ? To what extent is that adistinguishing feature?

Scores and distinctiveness regarding product-specific

values: To what extent is brand X a brand thatpossesses the tangible characteristic . . . ? To whatextent is that a distinguishing feature?


29/45

` The measurement of brand associations can bedone through both qualitative and quantitativemethods Qualitative methods include

x The direct association method: With what do you associatebrand A?

x Projective techniques: indirect methods such as indicatingmatching photographs or describing the brand as a person witha character

A goal of qualitative analysis is to gain insight into thesatisfaction of consumers and especially into theunderlying causes of the extent of that satisfaction


30/45


31/45


32/45

` A valid method for obtaining such perceptual maps

is the technique of multidimensional scaling (MDS) In MDS, brands, characteristics, and ideal points (wishes)

of users are conveniently arranged in one figure through

the use of a statistical method that employs simple

questions for respondents to answer


33/45


34/45

LabadiLa Palm

AlisaTulip

Maple Leaf

Novotel

Expensive

Less Expensive

High ServiceModerate ServiceCoco nut Groove


35/45

` MDS has several important advantages as a researchmethod The results ofMDS (graphic representations of the positions of

brands) are easily understood, making it an excellent

communication tool for positioning decisions MDS makes it possible to use more than two dimensions. The

dimensions on which people judge a brand are placed in thefigure as vectors

The positions of the brands in the coordinate system space arehard; that is, they have been calculated according to aquantitative method

The method of data collection in MDS is true to life: Respondentsare asked to compare brands as a whole with each other just asthey do in a shop, and only afterward are the characteristicsplaced in the figure


36/45

` This is a simple tool that graphically representsboth tangible and abstract brand characteristicsconveniently

` Conducting measurement research creates insight

into the strengths and weaknesses of a brand

It is important to distinguish between customers andpotential customers

x Potential customers often perceive a brand differently thancustomers


37/45


38/45

` Having a direct insight into what customers willconsider important in the future is more important thanknowing what customers consider important currently

` The following steps should be taken to arrive at a

prognoses for future customer values Aside from customer research, consult sources about trends in

customer wishes such as sellers, researchers, consultants,and other experts

Analyze the tracking data and attempt to link any changes incustomer values to factors such as economic fluctuations and

social-cultural developments Discuss the data from the customer analysis, the other

sources, and the companys self-analysis in brainstormingsessions to arrive at prognoses collectively


39/45

` Primary data are data that the organizationcollects by itself through fieldwork

` In doing primary research the following choiceshave to be made:

Choice of the target audience (who?)

Desired information and choice of quantitative orqualitative research (what?)

Structure (how?):x Data collection

x Sampling

x Method of questioning


40/45

` Quantitative Research isperformed on a large numberof people

` This creates harderconclusions

` Differences betweensubgroups can be madevisible

` This type of research is morefactual in nature

` Qualitative Research consistsof personal interviews withindividuals

` This type of research seeks toprovide answers to:

Strategic market description Consumer decision-making

behavior

Customer satisfaction

Communication research

Idea generation

Development of products andconcepts

Development of a quantitativequestionnaire.


41/45

` Customer research alwaysstarts with qualitative research An inventory of potential

problems is obtained and

information is collected` Quantitative research may

follow to gain insight intowhether or not goals wereachieved

` This maybe followed by a

deeper qualitative analysis todetermine the cause or causesof the problems


42/45

` In many countries market research agencies

collect quantitative data that are very important

in the context of consumer marketing

` Two types of data sets (and agencies) can bedistinguished: Agencies that collect quantitative data, including

consumer purchasing behavior.

Agencies that are involved in collecting data onhouseholds (such as prosperity and lifestyle) for

direct-marketing objectives.


43/45

` The databases of Nielsen, IRI and GfK may beused for markets offast-moving consumer

goods` These databases contain weekly data regarding

sales, price, distribution, and promotions


44/45

Customer Analysis Mainly conducted via marketresearch ( primary and secondary research)

Main objectives of customer analysis:

Identifies segments;

Marketing position ( via values hierarchy research);

information for measuring performance (customer

satisfaction, brand performance etc;

Insights into customer perception of competition.


45/45

` Chapter Five Industry Analysis Know the differences between and the goals of an

industry analysis and a competitor analysis

Know the components of an industry analysis

Realize that a Porter analysis is only part of an

industry analysis, which in turn is part of an external

analysis

Be able to perform a macro environmental analysis for

a company Know how to assess the attractiveness of a market

Wk4 Customer Analysis

Documents

Transcript of Wk4 Customer Analysis