Chapter 11 Consumer Behaviour, Second Edition Martin Evans, Ahmad Jamal Gordon Foxall Cardiff Business School ISBN:978-0-470-99465-8 Chapter 11 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Chapters Objectives Explore the trend towards knowledge generation of consumer characteristics and lifestyle Analyse and evaluate the role and nature of geodemographics and contemporary life style research in understanding and profiling consumer behaviour Discuss the importance of privacy concerns in the context of database marketing © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Growth in Data Informed Marketing Declining Effectiveness of Traditional Media Increasing media costs Diminishing/Fragmented audiences Clutter Technology Drivers Need for Better Targeting Growth in Data Informed Marketing rise of the database Improvements in capacity Analytical systems Digital Printing Developments in telephone technology (mobiles/GPS) Internet Changes in market behaviour: more complex consumers (Individualism/time hungry/cash rich/cynical) Changes in Market Information Electronic point of sale & Transactional Data, Geodemographics Compilation of Lists = Biographics © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Data Fusion Data Mining Behavioural data Transactional Data: company Transactional Data: consortia Transactional Data: pre-purchase Data Fusion Surveillance data: RFID, GPS, Biometrics Neurolinguistics (NLP) Post Code, Census & Electoral Roll Profile/enhancement data (Contemporary) Lifestyle Geodemographics Data Mining C2C data (eg Social Network data) Lists Competitive Intelligence Genetic Data © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Data Sources: Behavioural Data Transactional Data Mail order Data Tracking Loyalty Scheme Data Tracking Online Data Tracking Credit/Debit Card Data Tracking 5 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Transactional Data © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Transactional Data: Data Consortia If you have a Nectar card, are you aware of all of the organisations in the consortia? They include BP, Barclaycard, Sainsbury’s, First Quench (Thresher, Victoria Wine, Wine Rack, Bottoms Up, Drinks Cabin, Haddows, Huttons), Adams, Ford, Vodafone, EDF Energy, London Energy, Seeboard Energy, SWEB Energy, Hertz, Brewsters, TNS Market Research surveys, Blockbusters, Cannons Health Clubs, Alton Towers, Argos, Winemark, AllSports, Magnet, Beefeaters, eBookers, Carphone Warehouse, Racecourses and 160online brands (Anon, 2007). The ‘small print’ states that data will only be used within group & where needed to operate the system. You may want a relationship with some but how do you feel about ‘all’? Transactis hosts a data consortia of mail order companies whose customer transactional data is pooled to provide profiles of the ‘best ‘ mail order consumers across sectors – even by RFM score (Anon 2004). 7 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Transactional Data: Prepurchase © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Surveillance: RFID Radio Frequency Identification Tags: surveillance through supply chain and maybe in use and through to disposal? Tesco, Marks & Spencer, Asda – deny using tags to trace past purchase but need to be deactivates leaving store (or microwaved) Used as implants/tags for German Club members and for some Health Care in the USA and now in the UK 2006 trial – RFID tags in loyalty cards – allow retailers to identify when a customer enters a store and can approach them with offers or send offers to them via mobile phones (Benjamin, 2006) 9 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Surveillance: GPS 10 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Neurolinguistics (NLP) (remember…chapter 5) Evans et al (2000) The Hidden Sex Life of the Male and Female Shot, International Journal of Advertising 19.1 pp43-65 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Profiling and enhancement data Postcode system Electoral roll Census Life style © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Geodemographics: Postal Geography © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Census © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Census © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

(Contemporary) Lifestyle Contemporary Lifestyle Data: NOT anonymous © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

© 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

CF10 3EU © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

C2C Data © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Consumer Panels.. Competitive Intelligence   Consumer Panels.. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Fusion of Data Sources = buying biography Biographic segmentation Individualised (custom) segmentation or mass customisation is the legitimate polar opposite of undifferentiated or large segments based on, eg just gender.. Biographic segmentation Marketers are more able now to analyse customer behaviour at an individual level and target as individuals Is the segment of one possible? © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Data Fusion Data Mining Biographics Behavioural data Transactional Data: company Transactional Data: consortia Transactional Data: pre-purchase Data Fusion Surveillance data: RFID, GPS, Biometrics Neurolinguistics (NLP) Post Code, Census & Electoral Roll Profile/enhancement data (Contemporary) Lifestyle Geodemographics Data Mining C2C data (eg Social Network data) Lists Competitive Intelligence Genetic Data Biographics © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

Marketing Metrics: Data Mining © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

“We cant rewind, we’ve gone too far…” Horn 1979 ‘The digital computer… provide… the means to treat individuals as individuals… protection of privacy will be at large” Shubik 1967 Or is it (cynically?) “We cant rewind, we’ve gone too far…” Horn 1979 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

References Evans M, Patterson M, O’Malley L (2001) The Direct Marketing-Direct Consumer Gap: Qualitative Insights, Qualitative Market Research: An International Journal, Vol 4 No 1 pp17-24 O’Malley L, Patterson M and Evans M, (1999) Data Fusion and Data Control: Privacy Problems - and Solutions? Journal of Targeting, Measurement and Analysis for Marketing Vol 7 No 1, pp288-302 Evans M, O’Malley L and Patterson M (1998) Relationship Marketing and Privacy Issues: Building Bonds or Barriers Journal of Database Marketing, Vol 6 No 1, pp34-47 O’Malley L, Patterson M and Evans M (1997) Intimacy or Intrusion? The Privacy Dilemma for Relationship Marketing in Consumer Markets, Journal of Marketing Management, vol 3 no 6, pp541-559   Evans M (2005)The Data Informed Marketing Model and its Social Responsibility, IN Lace S (Ed (2005) The Glass Consumer, Policy Press/NCC © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans