1. Consumer Behavior at 3 segments-Apostles, Mercenaries and Terrorists
SUBMITTED BY:-
ABHINAV MEHROTRA
SANDEEP GREWAL

2. Consumer Behaviour
Actions a person takes in purchasing and using products and services, including the mental physical and social processes that precede and follow these actions.

3. Consumer Decision Making Model- Factors
External Env
Social-Class Influences
Internal
Determinants
Motivation &
Involvement
Sub-Cultural
Influences
Personal
Influences
Prob Recognition
Inf Search & Evaluation
Pur process
Post Pur Beh
Learning
&
Memory
Attitudes
Cultural
Family
Influences
Personality &
Self-Concept
DECISION PROCESS
Social-Group Influences

4. STEPS IN CONSUMER BUYING DECISION MAKING PROCESS

5. EVALUATION OF ALTERNATIVES PURCHASE & CONSUMPTION
NEED RECOGNITION
INFORMATION SEARCH
EVALUATION OF ALTERNATIVES
PURCHASE & CONSUMPTION
POST-PURCHASE EVALUATION
DIVESTMENT
CONSUMER DECISION PROCESS

6. Customer satisfaction & customer behavior
Loyalists
Apostles
Defectors
Terrorists
Hostages
Mercenaries

8. APOSTLES
Apostles - at the other end of the scale the highly loyal and highly satisfied customers.  What sets them apart is the fact they actively go out and spread the good word. Some interesting research carried out by Xerox found that customers rating “extremely satisfied” were 6 times more likely to repurchase than those ranking “satisfied” the very next option down.  These are the company’s best friends

9. LOYALISTS
Loyalists - High satisfaction and high loyalty but do not spread the word that much. What separates loyalists from apostles is really how they spread the word. As well as being active Apostles need to be very well connected and typically influential – i.e. they are able to spread the word to lots of people and those people are likely to listen.  However the loyalists can be thought of as the bedrock of your company, they keep on coming back.

10. MERCENARIES
Mercenaries - often the bulk of the customer base. Apparently satisfied and loyal these people tend to switch to the best deal as they see it. In industries with a low cost of switching they are likely to change supplier quickly and without warning. For example where there are plenty of reasonable “me too” products then price / special offer is often the differentiator.  Many Mercenaries have the behavior to deeply ingrained to change, but others would willingly become Loyalists when they receive the right product and service combination from a supplier.

11. TERRORISTS
Terrorists - at the very bottom of the scale there are customers who are extremely dissatisfied and have very low loyalty. They can do great damage to the business – particularly in the Internet age -though blogs, s and word of mouth are the more likely outlets.

12. HOSTAGES
Hostages - with medium to high loyalty and satisfaction these customers tend be to “stuck”  – think of contracts where you are locked in for months, not very happy but no easy way out or where other “costs of switching” keep you locked in to your current supplier.  Monopoly / oligopoly supply situations create hostages too.

13. DEFECTORS
Defectors - neither particularly loyal nor particularly satisfied.  If they haven’t already left they are likely to.  However they tend not be as vocal as the Terrorists in expressing their dissatisfaction.  They are often one trigger away from leaving.  As with Mercenaries many would willingly become Loyalists when they receive the right product and service combination from a supplier.

14. WHAT THIS MODEL IS FOR?
As with all such models the key lies not so much with the analysis, but what you actively do to improve things for your business. How do you win over the terrorists or increase the number of apostles, for example.

15. Customer retention 1. Loyal customers buy more
2. Loyal customers are less price sensitive
3. Servicing existing customers are cheaper
4. Loyal customers spread positive word-of mouth