1. Chapter 11 Consumer Behaviour, Second Edition Martin Evans,
Ahmad Jamal
Gordon Foxall
Cardiff Business School
ISBN:
Chapter 11
© 2009 John Wiley & Sons Ltd.

2. 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.

3. 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.

4. 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.

5. 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.
© 2008 John Wiley & Sons Ltd.

6. Transactional Data
© 2009 John Wiley & Sons Ltd.

7. 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.

8. Transactional Data: Prepurchase
© 2009 John Wiley & Sons Ltd.

9. 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.

10. Surveillance: GPS 10 © 2009 John Wiley & Sons Ltd.

11. 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.

12. Profiling and enhancement data
Postcode system
Electoral roll
Census
Life style
© 2009 John Wiley & Sons Ltd.

13. Geodemographics: Postal Geography
© 2009 John Wiley & Sons Ltd.

14. Census
© 2009 John Wiley & Sons Ltd.

15. Census
© 2009 John Wiley & Sons Ltd.

16. (Contemporary) Lifestyle Contemporary Lifestyle Data: NOT anonymous
© 2009 John Wiley & Sons Ltd.

17. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans

18. CF10 3EU
© 2009 John Wiley & Sons Ltd.

19. C2C Data
© 2009 John Wiley & Sons Ltd.

20. Consumer Panels.. Competitive Intelligence
Consumer Panels..
© 2009 John Wiley & Sons Ltd.

21. 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.

22. 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.

23. Marketing Metrics: Data Mining
© 2009 John Wiley & Sons Ltd.

24. “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.

25. 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, pp
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, pp
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.