Understanding Customer Psychology: Key Concepts and Practical Insights
MuhammadTalha922890
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Sep 18, 2024
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About This Presentation
This comprehensive presentation delves into the intricate world of customer psychology, providing valuable insights for businesses and marketers seeking to understand consumer behavior. The material explores various facets of both B2B (Business-to-Business) and B2C (Business-to-Consumer) buying beha...
Slide Content
CUSTOMER
PSYCHOLOGY
Prepared By:
Talha Rafiq
Special Thanks To:
Mobashir Sandila
PSYCHOLOGY
Prepared By:
Talha Rafiq
Special Thanks To:
Mobashir Sandila
DEFINITION:
KEY ELEMENTS OF CUSTOMER PSYCHEITION:
1. Motivation 2. Perception 3. Beliefs and Attitudes4. Learning
5. Social Influences
1. CUSTOMER PSYCHE:
The customer psyche refers to the mental and emotional factors that influence a consumer's de-
cision-making process, preferences, and behaviors when interacting with a product or service. It
encompasses the underlying motivations, beliefs, attitudes, perceptions, and psychological trig-
gers that drive customers' choices and satisfaction. This concept involves understanding how
customers think, feel, and act in relation to their needs, desires, values, and experiences with
brands or products.
02
KEY ELEMENTS OF CUSTOMER PSYCHEITION:
1. Motivation 2. Perception 3. Beliefs and Attitudes4. Learning
5. Social Influences
1. CUSTOMER PSYCHE:
The customer psyche refers to the mental and emotional factors that influence a consumer's de-
cision-making process, preferences, and behaviors when interacting with a product or service. It
encompasses the underlying motivations, beliefs, attitudes, perceptions, and psychological trig-
gers that drive customers' choices and satisfaction. This concept involves understanding how
customers think, feel, and act in relation to their needs, desires, values, and experiences with
brands or products.
02
03
DIFFERENTIATION:
The customer psyche can be differentiated from other consumer behavior models by its empha-
sis on the psychological and emotional aspects of decision-making, rather than just demograph-
ic or economic factors. While consumer behavior as a field study actions, customer psyche zooms
in on why customers make those decisions on a deeper emotional and cognitive level.
Here are some ways in which customer psyche is distinct:
Focus on Emotions1
2
3
4Personalization Cognitive vs. Environmental
Cognitive vs. Environmental
Decision-Making Process
DIFFERENTIATION:
The customer psyche can be differentiated from other consumer behavior models by its empha-
sis on the psychological and emotional aspects of decision-making, rather than just demograph-
ic or economic factors. While consumer behavior as a field study actions, customer psyche zooms
in on why customers make those decisions on a deeper emotional and cognitive level.
Here are some ways in which customer psyche is distinct:
Focus on Emotions1
2
3
4Personalization Cognitive vs. Environmental
Cognitive vs. Environmental
Decision-Making Process
04
EXAMPLE OF CUSTOMER PSYCHE:
When launching a new fitness app, understanding customer psyche involves recognizing the moti-
vations, perceptions, beliefs, and social influences that drive user behavior. Users are often motivat-
ed by personal health goals or social trends, perceiving the app as a cutting-edge tool for achieving
their fitness objectives. Their beliefs about the effectiveness of digital fitness solutions and past expe-
riences with similar apps shape their attitudes, while social recommendations from friends and influ-
encers further influence their decision. Differentiating the app involves focusing on emotional ap-
peals, such as the joy of reaching fitness milestones, and offering personalized workout plans that
cater to individual needs. By addressing these psychological and emotional factors, businesses can
create marketing strategies that resonate deeply with users, enhance engagement, and foster
long-term loyalty.
By understanding customer psyche, businesses can create more effective marketing strategies that
resonate deeply with their target audience, fostering stronger connections and long-term loyalty.
EXAMPLE OF CUSTOMER PSYCHE:
When launching a new fitness app, understanding customer psyche involves recognizing the moti-
vations, perceptions, beliefs, and social influences that drive user behavior. Users are often motivat-
ed by personal health goals or social trends, perceiving the app as a cutting-edge tool for achieving
their fitness objectives. Their beliefs about the effectiveness of digital fitness solutions and past expe-
riences with similar apps shape their attitudes, while social recommendations from friends and influ-
encers further influence their decision. Differentiating the app involves focusing on emotional ap-
peals, such as the joy of reaching fitness milestones, and offering personalized workout plans that
cater to individual needs. By addressing these psychological and emotional factors, businesses can
create marketing strategies that resonate deeply with users, enhance engagement, and foster
long-term loyalty.
By understanding customer psyche, businesses can create more effective marketing strategies that
resonate deeply with their target audience, fostering stronger connections and long-term loyalty.
05
BUYING BEHAVIOR: B2B VS. B2C
Buying Behavior refers to the decision-making
processes and actions that individuals or orga-
nizations go through when selecting, purchas-
ing, and using products or services. This behav-
ior varies significantly between B2B (Busi-
ness-to-Business) and B2C (Business-to-Con-
sumer) markets due to differing motivations,
decision-making processes, and stakeholder
involvement.
BUYING BEHAVIOR:
BUYING BEHAVIOR: B2B VS. B2C
Buying Behavior refers to the decision-making
processes and actions that individuals or orga-
nizations go through when selecting, purchas-
ing, and using products or services. This behav-
ior varies significantly between B2B (Busi-
ness-to-Business) and B2C (Business-to-Con-
sumer) markets due to differing motivations,
decision-making processes, and stakeholder
involvement.
BUYING BEHAVIOR:
06
B2B buying decisions are typically more complex, involving multiple stakeholders and a structured
process.
Decisions are often based on logic, cost-benefit analysis, and alignment with organizational goals.
Emphasis is placed on building and maintaining long-term relationships with
suppliers.
B2B (BUSINESS-TO-BUSINESS) BUYING BEHAVIOR:
CHARACTERISTICS:
COMPLEXITY:
RATIONAL DECISION-MAKING:
LONG-TERM RELATIONSHIPS:
B2B buying decisions are typically more complex, involving multiple stakeholders and a structured
process.
Decisions are often based on logic, cost-benefit analysis, and alignment with organizational goals.
Emphasis is placed on building and maintaining long-term relationships with
suppliers.
B2B (BUSINESS-TO-BUSINESS) BUYING BEHAVIOR:
CHARACTERISTICS:
COMPLEXITY:
RATIONAL DECISION-MAKING:
LONG-TERM RELATIONSHIPS:
07
B2B BUYING PROCESS:
B2B
%
$
€
1. Problem Recognition
3. Supplier Search
7. Order Specification 8. Performance Review
5. Evaluation of Alternatives 6. Purchase Decision
4. Proposal Solicitation
2. Need Description
B2B BUYING PROCESS:
B2B
%
$
€
1. Problem Recognition
3. Supplier Search
7. Order Specification 8. Performance Review
5. Evaluation of Alternatives 6. Purchase Decision
4. Proposal Solicitation
2. Need Description
08
B2C buying decisions are usually simpler and involve fewer decision-makers.
Purchases are often influenced by personal preferences, brand perception, and emotional re-
sponses.
Consumers seek immediate gratification and convenience.
B2C (BUSINESS-TO-CONSUMER) BUYING BEHAVIOR:
CHARACTERISTICS:
SIMPLICITY:
EMOTIONAL DECISION-MAKING:
IMMEDIATE SATISFACTION:
B2C buying decisions are usually simpler and involve fewer decision-makers.
Purchases are often influenced by personal preferences, brand perception, and emotional re-
sponses.
Consumers seek immediate gratification and convenience.
B2C (BUSINESS-TO-CONSUMER) BUYING BEHAVIOR:
CHARACTERISTICS:
SIMPLICITY:
EMOTIONAL DECISION-MAKING:
IMMEDIATE SATISFACTION:
09
B2C BUYING PROCESS:
Need Recognition
Evaluation of Alternatives
Purchase Post-Purchase Behavior
Purchase Decision
Information Search
1
3 4
2
65
B2C BUYING PROCESS:
Need Recognition
Evaluation of Alternatives
Purchase Post-Purchase Behavior
Purchase Decision
Information Search
1
3 4
2
65
10
EXAMPLE OF CUSTOMER BUYING BEHAVIOR:UNDERSTANDING NON-VERBAL COMMUNICATION:
XYZ Corp's decision to upgrade its production line demonstrates the structured and rational nature
of B2B buying behavior. The company's strategic goals of reducing costs and improving quality
guide the process, while budget constraints make ROI a critical factor. Trust in reliable suppliers, es-
pecially those offering strong after-sales support, is essential. Multiple stakeholders, including pro-
duction managers and finance teams, assess technical and financial aspects before making a de-
cision. The complexity of the process highlights the importance of relationships, customization, and
thorough evaluations, distinguishing B2B from B2C buying behavior. Additionally, market conditions
and competitive pressures influence the selection of cost-effective, technically superior equipment.
The decision-making process involves careful comparisons of supplier proposals, ensuring the best
fit for XYZ Corp’s long-term operational needs. Strong post-sale services, such as maintenance and
support, further solidify the importance of trust and reliability in supplier relationships.
EXAMPLE OF CUSTOMER BUYING BEHAVIOR:UNDERSTANDING NON-VERBAL COMMUNICATION:
XYZ Corp's decision to upgrade its production line demonstrates the structured and rational nature
of B2B buying behavior. The company's strategic goals of reducing costs and improving quality
guide the process, while budget constraints make ROI a critical factor. Trust in reliable suppliers, es-
pecially those offering strong after-sales support, is essential. Multiple stakeholders, including pro-
duction managers and finance teams, assess technical and financial aspects before making a de-
cision. The complexity of the process highlights the importance of relationships, customization, and
thorough evaluations, distinguishing B2B from B2C buying behavior. Additionally, market conditions
and competitive pressures influence the selection of cost-effective, technically superior equipment.
The decision-making process involves careful comparisons of supplier proposals, ensuring the best
fit for XYZ Corp’s long-term operational needs. Strong post-sale services, such as maintenance and
support, further solidify the importance of trust and reliability in supplier relationships.
11
UNDERSTANDING NON-VERBAL COMMUNICATION:
NONVERBAL COMMUNICATION:
Non-verbal communication refers to the transmission of messages or information without the
use of words. It encompasses a wide range of behaviors, expressions, and cues that people
use to convey meaning beyond spoken or written language. This form of communication
often occurs subconsciously and includes elements such as gestures, facial expressions, pos-
ture, eye contact, and tone of voice. Understanding non-verbal communication is crucial be-
cause it often reveals true feelings, intentions, or reactions that may not be fully expressed
verbally.
Non-verbal cues can either reinforce the spoken message or contradict it, and people rely
heavily on these signals to interpret the emotions, attitudes, and intentions of others.
UNDERSTANDING NON-VERBAL COMMUNICATION:
NONVERBAL COMMUNICATION:
Non-verbal communication refers to the transmission of messages or information without the
use of words. It encompasses a wide range of behaviors, expressions, and cues that people
use to convey meaning beyond spoken or written language. This form of communication
often occurs subconsciously and includes elements such as gestures, facial expressions, pos-
ture, eye contact, and tone of voice. Understanding non-verbal communication is crucial be-
cause it often reveals true feelings, intentions, or reactions that may not be fully expressed
verbally.
Non-verbal cues can either reinforce the spoken message or contradict it, and people rely
heavily on these signals to interpret the emotions, attitudes, and intentions of others.
12
DIFFERENTIATION:
VERBAL VS. NONVERBAL COMMUNICATION:
BODY LANGUAGE:
• Verbal communication relies on words (spoken or written) to convey messages, whereas
non-verbal communication includes all other forms of conveying meaning without the use of lan-
guage.
• Non-verbal communication is often more subconscious and can reveal emotions or intentions
that may not be explicitly stated.
• Verbal communication can be direct and precise, while non-verbal cues may be more open to
interpretation and can depend on cultural norms.
These physical expressions include:
1. Facial expressions 2. Gestures 4. Posture 5. Eye contact
7. Touch6. Proxemics (personal space)
DIFFERENTIATION:
VERBAL VS. NONVERBAL COMMUNICATION:
BODY LANGUAGE:
• Verbal communication relies on words (spoken or written) to convey messages, whereas
non-verbal communication includes all other forms of conveying meaning without the use of lan-
guage.
• Non-verbal communication is often more subconscious and can reveal emotions or intentions
that may not be explicitly stated.
• Verbal communication can be direct and precise, while non-verbal cues may be more open to
interpretation and can depend on cultural norms.
These physical expressions include:
1. Facial expressions 2. Gestures 4. Posture 5. Eye contact
7. Touch6. Proxemics (personal space)
13
NONVERBAL CUES AND BODY LANGUAGE:
TYPES OF NONVERBAL COMMUNICATION:
• Body language is just one aspect of non-verbal communication. While body language involves
physical movements and gestures, non-verbal communication includes additional elements
such as tone of voice (paralanguage), facial expressions, and eye behavior.
• Non-verbal cues can complement, enhance, or even contradict what is being said verbally. For
example, someone might say "I'm fine" while their body language suggests they are upset.
1. Facial Expressions
4. Eye Contact 5. Proxemics (Personal Space)
6. Paralanguage (Tone, Pitch, and Volume) 7. Touch (Haptics)
8. Appearance 9. Silence
2. Gestures 3. Posture and Movement (Kinesics)
NONVERBAL CUES AND BODY LANGUAGE:
TYPES OF NONVERBAL COMMUNICATION:
• Body language is just one aspect of non-verbal communication. While body language involves
physical movements and gestures, non-verbal communication includes additional elements
such as tone of voice (paralanguage), facial expressions, and eye behavior.
• Non-verbal cues can complement, enhance, or even contradict what is being said verbally. For
example, someone might say "I'm fine" while their body language suggests they are upset.
1. Facial Expressions
4. Eye Contact 5. Proxemics (Personal Space)
6. Paralanguage (Tone, Pitch, and Volume) 7. Touch (Haptics)
8. Appearance 9. Silence
2. Gestures 3. Posture and Movement (Kinesics)
14
GOOD LISTENING SKILLS:
Being a good listener involves more than just hearing words; it requires actively engaging with the
speaker through both verbal and non-verbal cues. Here’s how good listening relates to non-ver-
bal communication:
Good listening enhances communication by showing empathy, understand-
ing, and engagement, which can build stronger relationships and improve in-
terpersonal interactions. It ensures that messages are accurately received
and responded to, creating a more effective and supportive communication
environment.
1. Eye Contact 2. Facial Expressions 3. Posture 4. Gestures
GOOD LISTENING SKILLS:
Being a good listener involves more than just hearing words; it requires actively engaging with the
speaker through both verbal and non-verbal cues. Here’s how good listening relates to non-ver-
bal communication:
Good listening enhances communication by showing empathy, understand-
ing, and engagement, which can build stronger relationships and improve in-
terpersonal interactions. It ensures that messages are accurately received
and responded to, creating a more effective and supportive communication
environment.
1. Eye Contact 2. Facial Expressions 3. Posture 4. Gestures
15
BUYING SITUATIONS:
DEFINITION:
EXAMPLE:
STRAIGHT REBUY:
Buying situations refer to the context or type of purchase that a business or consumer is involved
in, which influences the buying process and decision-making. Understanding these situations
helps businesses tailor their marketing and sales strategies accordingly.
This occurs when a buyer routinely reorders a product or service without making significant
changes. The decision-making process is straightforward and involves minimal evaluation, typi-
cally because the buyer is satisfied with the existing supplier and terms.
A company regularly reorders office supplies from their current vendor.
BUYING SITUATIONS:
DEFINITION:
EXAMPLE:
STRAIGHT REBUY:
Buying situations refer to the context or type of purchase that a business or consumer is involved
in, which influences the buying process and decision-making. Understanding these situations
helps businesses tailor their marketing and sales strategies accordingly.
This occurs when a buyer routinely reorders a product or service without making significant
changes. The decision-making process is straightforward and involves minimal evaluation, typi-
cally because the buyer is satisfied with the existing supplier and terms.
A company regularly reorders office supplies from their current vendor.
16
DEFINITION:
EXAMPLE:
MODIFIED REBUY
In a modified rebuy, the buyer is looking to make changes to an existing purchase, such as seeking
better terms, new features, or improved quality. This situation involves more research and evalua-
tion compared to a straight rebuy.
A business deciding to switch to a new software version with additional features and
and better support, while still working with the same software provider.
DEFINITION:
EXAMPLE:
NEW BUY
This situation involves purchasing a product or service for the first time. The decision-making pro-
cess is more complex and involves extensive research, evaluation of alternatives, and consideration
of various factors due to the lack of previous experience with the product or supplier.
A company looking to invest in a new type of machinery that they have never used before and eval-
uating different suppliers and technologies.
DEFINITION:
EXAMPLE:
MODIFIED REBUY
In a modified rebuy, the buyer is looking to make changes to an existing purchase, such as seeking
better terms, new features, or improved quality. This situation involves more research and evalua-
tion compared to a straight rebuy.
A business deciding to switch to a new software version with additional features and
and better support, while still working with the same software provider.
DEFINITION:
EXAMPLE:
NEW BUY
This situation involves purchasing a product or service for the first time. The decision-making pro-
cess is more complex and involves extensive research, evaluation of alternatives, and consideration
of various factors due to the lack of previous experience with the product or supplier.
A company looking to invest in a new type of machinery that they have never used before and eval-
uating different suppliers and technologies.
17
TYPES OF CUSTOMERS:
1. LOYAL CUSTOMERS
CHARACTERISTICS:
Customers come in various forms, and understanding their different types is crucial for businesses
to cater to their needs effectively. Each type of customer has unique preferences, buying behav-
iors, and expectations. Here’s an overview of the main customer types:
These are customers who consistently return to the same brand or company for their needs. They
trust the business, appreciate the product or service quality, and form long-term relationships
with the brand.
• Repeat buyers.
• Less price-sensitive due to brand loyalty.
• Strong advocates who often recommend the brand to others.
TYPES OF CUSTOMERS:
1. LOYAL CUSTOMERS
CHARACTERISTICS:
Customers come in various forms, and understanding their different types is crucial for businesses
to cater to their needs effectively. Each type of customer has unique preferences, buying behav-
iors, and expectations. Here’s an overview of the main customer types:
These are customers who consistently return to the same brand or company for their needs. They
trust the business, appreciate the product or service quality, and form long-term relationships
with the brand.
• Repeat buyers.
• Less price-sensitive due to brand loyalty.
• Strong advocates who often recommend the brand to others.
18
2. IMPULSE BUYERS
CHARACTERISTICS:
BUSINESS APPROACH:
Impulse buyers make spontaneous decisions based on emotions or immediate desires. They
often do not have a specific plan to purchase but are influenced by sales, promotions, or attrac-
tive product displays.
• Make unplanned purchases.
• Highly responsive to special offers, discounts, or time-limited deals.
• Likely to be attracted to visually appealing products.
• Reward them with loyalty programs and personalized offers.
• Provide excellent customer service to maintain satisfaction.
• Engage them in brand-building activities, such as referrals and reviews.
2. IMPULSE BUYERS
CHARACTERISTICS:
BUSINESS APPROACH:
Impulse buyers make spontaneous decisions based on emotions or immediate desires. They
often do not have a specific plan to purchase but are influenced by sales, promotions, or attrac-
tive product displays.
• Make unplanned purchases.
• Highly responsive to special offers, discounts, or time-limited deals.
• Likely to be attracted to visually appealing products.
• Reward them with loyalty programs and personalized offers.
• Provide excellent customer service to maintain satisfaction.
• Engage them in brand-building activities, such as referrals and reviews.
19
3. PRICESENSITIVE CUSTOMERS
BUSINESS APPROACH:
CHARACTERISTICS:
• Use attention-grabbing promotions, limited time offers, and attractive product placements.
• Ensure an easy and smooth checkout process to capitalize on impulse decisions.
• Cross-sell or upsell related products at the point of sale.
These customers are primarily motivated by price and will often compare products or services to
find the best deal. They are less loyal and may switch brands based on cost-saving opportunities.
• Frequently shop around for the best price.
• Less concerned with brand loyalty or premium features.
• Value discounts, sales, and promotions over product or service quality.
3. PRICESENSITIVE CUSTOMERS
BUSINESS APPROACH:
CHARACTERISTICS:
• Use attention-grabbing promotions, limited time offers, and attractive product placements.
• Ensure an easy and smooth checkout process to capitalize on impulse decisions.
• Cross-sell or upsell related products at the point of sale.
These customers are primarily motivated by price and will often compare products or services to
find the best deal. They are less loyal and may switch brands based on cost-saving opportunities.
• Frequently shop around for the best price.
• Less concerned with brand loyalty or premium features.
• Value discounts, sales, and promotions over product or service quality.
20
CHARACTERISTICS:
BUSINESS APPROACH:
3. PRICESENSITIVE CUSTOMERS
These customers are primarily motivated by price and will often compare products or services to
find the best deal. They are less loyal and may switch brands based on cost-saving opportunities.
• Frequently shop around for the best price.
• Less concerned with brand loyalty or premium features.
• Value discounts, sales, and promotions over product or service quality.
• Offer competitive pricing, discounts, or price-match guarantees.
• Use loyalty discounts to retain price-sensitive customers over the long term.
• Highlight the value proposition or cost savings of the product or service.
CHARACTERISTICS:
BUSINESS APPROACH:
3. PRICESENSITIVE CUSTOMERS
These customers are primarily motivated by price and will often compare products or services to
find the best deal. They are less loyal and may switch brands based on cost-saving opportunities.
• Frequently shop around for the best price.
• Less concerned with brand loyalty or premium features.
• Value discounts, sales, and promotions over product or service quality.
• Offer competitive pricing, discounts, or price-match guarantees.
• Use loyalty discounts to retain price-sensitive customers over the long term.
• Highlight the value proposition or cost savings of the product or service.
21
CHARACTERISTICS:
BUSINESS APPROACH:
4. NEEDBASED CUSTOMERS
Need-based customers purchase products or services based on specific needs or problem-solv-
ing criteria. They are practical, goal-oriented, and tend to be more analytical in their deci-
sion-making process.
• Focus on fulfilling a particular need or solving a problem.
• Research extensively before making a purchase.
• More likely to compare features, reviews, and prices.
• Provide detailed product information, features, and benefits.
• Offer personalized solutions based on their specific needs.
• Deliver excellent customer support to help them make informed decisions.
CHARACTERISTICS:
BUSINESS APPROACH:
4. NEEDBASED CUSTOMERS
Need-based customers purchase products or services based on specific needs or problem-solv-
ing criteria. They are practical, goal-oriented, and tend to be more analytical in their deci-
sion-making process.
• Focus on fulfilling a particular need or solving a problem.
• Research extensively before making a purchase.
• More likely to compare features, reviews, and prices.
• Provide detailed product information, features, and benefits.
• Offer personalized solutions based on their specific needs.
• Deliver excellent customer support to help them make informed decisions.
22
CHARACTERISTICS:
BUSINESS APPROACH:
5. NEW CUSTOMERS
New customers are individuals or businesses who are interacting with the brand for the first time.
They may be hesitant or uncertain about what to expect.
• Require more guidance, information, and reassurance.
• Have little to no brand loyalty at the start.
• Often influenced by first impressions of the product or service.
• Provide a seamless onboarding experience with clear instructions or demonstrations.
• Offer special discounts or introductory offers to encourage them to make a purchase.
• Focus on building trust through customer support, social proof, and follow-up communications.
CHARACTERISTICS:
BUSINESS APPROACH:
5. NEW CUSTOMERS
New customers are individuals or businesses who are interacting with the brand for the first time.
They may be hesitant or uncertain about what to expect.
• Require more guidance, information, and reassurance.
• Have little to no brand loyalty at the start.
• Often influenced by first impressions of the product or service.
• Provide a seamless onboarding experience with clear instructions or demonstrations.
• Offer special discounts or introductory offers to encourage them to make a purchase.
• Focus on building trust through customer support, social proof, and follow-up communications.
23
6. DISSATISFIED CUSTOMERS
7. INFORMED CUSTOMERS
8. WANDERING CUSTOMERS
These are customers who have had a negative experience with the product, service, or customer
support. They may be vocal about their dissatisfaction and can harm the brand’s reputation if not
handled properly.
Informed customers are well-researched and knowledgeable about the product or service they
are looking to purchase. They typically compare brands, read reviews, and are familiar with indus-
try standards.
Wandering customers often visit stores or websites without a clear intention to buy. They may
simply be browsing and are undecided about making a purchase.
6. DISSATISFIED CUSTOMERS
7. INFORMED CUSTOMERS
8. WANDERING CUSTOMERS
These are customers who have had a negative experience with the product, service, or customer
support. They may be vocal about their dissatisfaction and can harm the brand’s reputation if not
handled properly.
Informed customers are well-researched and knowledgeable about the product or service they
are looking to purchase. They typically compare brands, read reviews, and are familiar with indus-
try standards.
Wandering customers often visit stores or websites without a clear intention to buy. They may
simply be browsing and are undecided about making a purchase.
24
EXAMPLE OF CUSTOMER TYPES:
In a bustling electronics store, different types of customers showcase varied interactions. Emma,
a loyal customer, regularly returns for her tech needs, trusting the store’s service and benefiting
from exclusive offers and early access to products. Mike, an impulse buyer, strolls in casually but is
quickly swayed by an eye-catching promotion on smart speakers, making a spontaneous pur-
chase. Sarah, price-sensitive, meticulously compares laptop prices, seeking the best deal, and is
drawn to the store’s price-match guarantee. James, a need-based customer, comes in with a
clear goal of finding an external hard drive and relies on detailed guidance from the staff to meet
his specific needs. Meanwhile, Alex, a new customer, is exploring the store for the first time, guided
by special introductory offers and a seamless shopping experience to build initial trust. Each cus-
tomer type requires a tailored approach to maximize satisfaction and sales.
EXAMPLE OF CUSTOMER TYPES:
In a bustling electronics store, different types of customers showcase varied interactions. Emma,
a loyal customer, regularly returns for her tech needs, trusting the store’s service and benefiting
from exclusive offers and early access to products. Mike, an impulse buyer, strolls in casually but is
quickly swayed by an eye-catching promotion on smart speakers, making a spontaneous pur-
chase. Sarah, price-sensitive, meticulously compares laptop prices, seeking the best deal, and is
drawn to the store’s price-match guarantee. James, a need-based customer, comes in with a
clear goal of finding an external hard drive and relies on detailed guidance from the staff to meet
his specific needs. Meanwhile, Alex, a new customer, is exploring the store for the first time, guided
by special introductory offers and a seamless shopping experience to build initial trust. Each cus-
tomer type requires a tailored approach to maximize satisfaction and sales.
25
NEGOTIATION: DEFINITION AND KEY CONCEPTS:
Negotiation is a process in which two or more parties discuss and agree on the terms of a deal or
settle a conflict. It is a method of reaching a mutually acceptable solution by reconciling differing
interests, needs, or viewpoints. Negotiation is a crucial skill in both personal and professional envi-
ronments, used to resolve disputes, form partnerships, or conclude business transactions.
The goal of negotiation is to achieve an outcome that satisfies all parties involved, ideally creating
a "win-win" scenario where each side gains something valuable. However, it can also involve com-
promises or trade-offs when perfect solutions are unattainable.
KEY ELEMENTS OF NEGOTIATION
1. Parties Involved
5. BATNA (Best Alternative to a Negotiated Agreement
2. Interests 3. Communication 4. Bargaining
6. Leverage 7. Agreement
NEGOTIATION: DEFINITION AND KEY CONCEPTS:
Negotiation is a process in which two or more parties discuss and agree on the terms of a deal or
settle a conflict. It is a method of reaching a mutually acceptable solution by reconciling differing
interests, needs, or viewpoints. Negotiation is a crucial skill in both personal and professional envi-
ronments, used to resolve disputes, form partnerships, or conclude business transactions.
The goal of negotiation is to achieve an outcome that satisfies all parties involved, ideally creating
a "win-win" scenario where each side gains something valuable. However, it can also involve com-
promises or trade-offs when perfect solutions are unattainable.
KEY ELEMENTS OF NEGOTIATION
1. Parties Involved
5. BATNA (Best Alternative to a Negotiated Agreement
2. Interests 3. Communication 4. Bargaining
6. Leverage 7. Agreement
26
TYPES OF NEGOTIATION:
1. Distributive Negotiation (Win-Lose)
3. Collaborative Negotiation
5. Accommodative Negotiation
6. Compromise Negotiation
4. Competitive Negotiation
2. Integrative Negotiation (Win-Win)
TYPES OF NEGOTIATION:
1. Distributive Negotiation (Win-Lose)
3. Collaborative Negotiation
5. Accommodative Negotiation
6. Compromise Negotiation
4. Competitive Negotiation
2. Integrative Negotiation (Win-Win)
27
PHASES OF THE NEGOTIATION PROCESS:
1. Preparation
3. Bargaining
5. Implementation
4. Closing
2. Opening and Framing
A
B
C
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PHASES OF THE NEGOTIATION PROCESS:
1. Preparation
3. Bargaining
5. Implementation
4. Closing
2. Opening and Framing
A
B
C
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28
Marketing Research is the systematic process of gathering, analyzing, and interpreting data about
a market, product, or service. It helps businesses understand customer preferences, market
trends, competition, and the effectiveness of their marketing strategies. The goal of marketing re-
search is to provide actionable insights that guide business decisions, improve products or ser-
vices, and increase customer satisfaction.
KEY STEPS IN MARKETING RESEARCH:
MARKETING RESEARCH:
1. Defining the Problem
3. Data Collection
5. Reporting Findings
4. Data Analysis
2. Developing the Research Plan
Marketing Research is the systematic process of gathering, analyzing, and interpreting data about
a market, product, or service. It helps businesses understand customer preferences, market
trends, competition, and the effectiveness of their marketing strategies. The goal of marketing re-
search is to provide actionable insights that guide business decisions, improve products or ser-
vices, and increase customer satisfaction.
KEY STEPS IN MARKETING RESEARCH:
MARKETING RESEARCH:
1. Defining the Problem
3. Data Collection
5. Reporting Findings
4. Data Analysis
2. Developing the Research Plan
29
Data collected directly from sources, such as through surveys, focus groups, or experiments.
Data gathered from existing sources, such as industry reports, competitor analysis, or internal
data.
The Marketing Mix is a combination of factors that a company can control to influence consumers'
purchasing decisions. It helps businesses plan their marketing strategies around a product or ser-
vice. Traditionally, the marketing mix has been defined by the 4Ps (Product, Price, Place, and Pro-
motion), but it has expanded to include the 7Ps in the context of services marketing.
• PRIMARY RESEARCH
• SECONDARY RESEARCH
TYPES OF MARKETING RESEARCH:
MARKETING MIX:
Data collected directly from sources, such as through surveys, focus groups, or experiments.
Data gathered from existing sources, such as industry reports, competitor analysis, or internal
data.
The Marketing Mix is a combination of factors that a company can control to influence consumers'
purchasing decisions. It helps businesses plan their marketing strategies around a product or ser-
vice. Traditionally, the marketing mix has been defined by the 4Ps (Product, Price, Place, and Pro-
motion), but it has expanded to include the 7Ps in the context of services marketing.
• PRIMARY RESEARCH
• SECONDARY RESEARCH
TYPES OF MARKETING RESEARCH:
MARKETING MIX:
30
In service marketing, three additional Ps are often included to better capture the complexities of
marketing intangible products, such as services.
THE 4PS OF MARKETING:
THE 7PS OF MARKETING:
1. Product: 2. Price
3. Place (Distribution): 4. Promotion
5. People
7. Physical Evidence
6. Process
In service marketing, three additional Ps are often included to better capture the complexities of
marketing intangible products, such as services.
THE 4PS OF MARKETING:
THE 7PS OF MARKETING:
1. Product: 2. Price
3. Place (Distribution): 4. Promotion
5. People
7. Physical Evidence
6. Process
31
DIFFERENCE BETWEEN IDEAS AND OPPORTUNITIES
THE 4CS OF MARKETING:
The 4Cs framework offers an alternative perspective to the traditional 4Ps, focusing on custom-
er-centric elements. Developed by Robert F. Lauterborn, it emphasizes understanding and meet-
ing customer needs.
Understanding the difference between ideas and opportunities is crucial for entrepreneurship, in-
novation, and strategic planning. While they are related, they represent distinct concepts in the
context of business and development.
1. Customer Needs and Wants (Product) 2. Cost to the Customer (Price)
3. Convenience (Place) 4. Communication (Promotion)
DIFFERENCE BETWEEN IDEAS AND OPPORTUNITIES
THE 4CS OF MARKETING:
The 4Cs framework offers an alternative perspective to the traditional 4Ps, focusing on custom-
er-centric elements. Developed by Robert F. Lauterborn, it emphasizes understanding and meet-
ing customer needs.
Understanding the difference between ideas and opportunities is crucial for entrepreneurship, in-
novation, and strategic planning. While they are related, they represent distinct concepts in the
context of business and development.
1. Customer Needs and Wants (Product) 2. Cost to the Customer (Price)
3. Convenience (Place) 4. Communication (Promotion)
32
DEFINITION:
CHARACTERISTICS:
IDEAS:
The 4Cs framework offers an alternative perspective to the traditional 4Ps, focusing on custom-
er-centric elements. Developed by Robert F. Lauterborn, it emphasizes understanding and meet-
ing customer needs.
An idea is a thought or concept that represents a potential solution to a problem, a novel ap-
proach, or a creative notion. It is the starting point in the process of innovation and problem-solv-
ing.
•
Conceptual: An idea is often a broad and abstract notion. It may not yet be fully developed or
refined.
DEFINITION:
CHARACTERISTICS:
IDEAS:
The 4Cs framework offers an alternative perspective to the traditional 4Ps, focusing on custom-
er-centric elements. Developed by Robert F. Lauterborn, it emphasizes understanding and meet-
ing customer needs.
An idea is a thought or concept that represents a potential solution to a problem, a novel ap-
proach, or a creative notion. It is the starting point in the process of innovation and problem-solv-
ing.
•
Conceptual: An idea is often a broad and abstract notion. It may not yet be fully developed or
refined.
33
EXAMPLES:
OPPORTUNITIES:
• Initial Stage: It represents the earliest stage of the creative process, where the focus is on
brainstorming and generating possibilities.
•
Potential: While an idea holds potential, it does not automatically translate into value or suc-
cess without further development and validation.
• A new app concept that helps people track their fitness goals.
• A novel approach to reducing plastic waste in packaging.
• An innovative restaurant concept featuring a unique dining experience.
Definition: An opportunity is a favorable situation or set of circumstances that presents the po-
tential for achieving a specific goal, solving a problem, or capitalizing on a market need. It rep-
resents a practical and actionable path for realizing value or success.
EXAMPLES:
OPPORTUNITIES:
• Initial Stage: It represents the earliest stage of the creative process, where the focus is on
brainstorming and generating possibilities.
•
Potential: While an idea holds potential, it does not automatically translate into value or suc-
cess without further development and validation.
• A new app concept that helps people track their fitness goals.
• A novel approach to reducing plastic waste in packaging.
• An innovative restaurant concept featuring a unique dining experience.
Definition: An opportunity is a favorable situation or set of circumstances that presents the po-
tential for achieving a specific goal, solving a problem, or capitalizing on a market need. It rep-
resents a practical and actionable path for realizing value or success.
34
• ACTIONABLE:
• MARKET-DRIVEN
• VALIDATION:
An opportunity involves specific, actionable steps that can lead to tangible outcomes.
It is often identified based on market research, trends, and analysis of customer needs or compet-
itive dynamics.
Opportunities are typically validated through research, testing, and analysis to ensure their viabili-
ty and potential for success.
CHARACTERISTICS:
• ACTIONABLE:
• MARKET-DRIVEN
• VALIDATION:
An opportunity involves specific, actionable steps that can lead to tangible outcomes.
It is often identified based on market research, trends, and analysis of customer needs or compet-
itive dynamics.
Opportunities are typically validated through research, testing, and analysis to ensure their viabili-
ty and potential for success.
CHARACTERISTICS:
35
EXAMPLES:
SOCIAL INTELLIGENCE:
• A growing demand for eco-friendly products is leading to a market opportunity for sustainable
packaging solutions.
• The rise in remote work creates opportunities for developing productivity tools and remote col-
laboration platforms.
• An underserved niche market that presents a chance for introducing a specialized product or
service.
Social Intelligence refers to the ability to understand and manage interpersonal relationships ef-
fectively. It encompasses the skills and knowledge needed to navigate social environments, build
relationships, and influence others positively. Social intelligence involves recognizing and re-
sponding appropriately to the emotions, needs, and behaviors of others.
EXAMPLES:
SOCIAL INTELLIGENCE:
• A growing demand for eco-friendly products is leading to a market opportunity for sustainable
packaging solutions.
• The rise in remote work creates opportunities for developing productivity tools and remote col-
laboration platforms.
• An underserved niche market that presents a chance for introducing a specialized product or
service.
Social Intelligence refers to the ability to understand and manage interpersonal relationships ef-
fectively. It encompasses the skills and knowledge needed to navigate social environments, build
relationships, and influence others positively. Social intelligence involves recognizing and re-
sponding appropriately to the emotions, needs, and behaviors of others.
36
KEY COMPONENTS OF SOCIAL INTELLIGENCE:
IMPORTANCE OF SOCIAL INTELLIGENCE:
1. Empathy:
2. Social Awareness
5. Relationship Management:
• Personal Relationships
• Social Adaptability
• Professional Success
3. Interpersonal Skills
4. Conflict Resolution
KEY COMPONENTS OF SOCIAL INTELLIGENCE:
IMPORTANCE OF SOCIAL INTELLIGENCE:
1. Empathy:
2. Social Awareness
5. Relationship Management:
• Personal Relationships
• Social Adaptability
• Professional Success
3. Interpersonal Skills
4. Conflict Resolution
37
Social Conformity is the tendency for individuals to align their attitudes, beliefs, and behaviors with
those of a group or social norm. It involves adjusting one’s actions or opinions to fit in with the ex-
pectations or behaviors of others within a social group.
SOCIAL CONFORMITY:
1. Normative Social Influence
3. Private vs. Public Conformity
2. Informational Social Influence
4. Group Dynamics
KEY CONCEPTS IN SOCIAL CONFORMITY:
Social Conformity is the tendency for individuals to align their attitudes, beliefs, and behaviors with
those of a group or social norm. It involves adjusting one’s actions or opinions to fit in with the ex-
pectations or behaviors of others within a social group.
SOCIAL CONFORMITY:
1. Normative Social Influence
3. Private vs. Public Conformity
2. Informational Social Influence
4. Group Dynamics
KEY CONCEPTS IN SOCIAL CONFORMITY:
38
• Group Size: Conformity tends to increase with the size of the group up to a certain point.
• Unanimity: When everyone in the group agrees, individuals are more likely to conform. The
presence of dissenting opinions can reduce conformity.
• Status and Authority: Individuals are more likely to conform to people of higher status or au-
thority within the group.
• Cultural Norms: Conformity levels can vary across cultures. Collectivist cultures may experi-
ence higher levels of conformity compared to individualist cultures.
FACTORS INFLUENCING SOCIAL CONFORMITY:
• Group Size: Conformity tends to increase with the size of the group up to a certain point.
• Unanimity: When everyone in the group agrees, individuals are more likely to conform. The
presence of dissenting opinions can reduce conformity.
• Status and Authority: Individuals are more likely to conform to people of higher status or au-
thority within the group.
• Cultural Norms: Conformity levels can vary across cultures. Collectivist cultures may experi-
ence higher levels of conformity compared to individualist cultures.
FACTORS INFLUENCING SOCIAL CONFORMITY:
o Onboarding:
o Training:
o Engagement:
o Motivation:
39
PEOPLE MANAGEMENT:
People Management refers to the practice of overseeing, guiding, and directing employees to
achieve organizational goals while ensuring their personal growth and satisfaction. It encompasses
a range of activities aimed at maximizing employee performance, fostering a positive work environ-
ment, and aligning individual objectives with the overall strategy of the organization.
o Recruitment:
o Selection:
KEY ASPECTS OF PEOPLE MANAGEMENT:
1. RECRUITMENT AND SELECTION
o Onboarding:
o Training:
2. ONBOARDING AND TRAINING
o Training:
o Engagement:
o Motivation:
39
PEOPLE MANAGEMENT:
People Management refers to the practice of overseeing, guiding, and directing employees to
achieve organizational goals while ensuring their personal growth and satisfaction. It encompasses
a range of activities aimed at maximizing employee performance, fostering a positive work environ-
ment, and aligning individual objectives with the overall strategy of the organization.
o Recruitment:
o Selection:
KEY ASPECTS OF PEOPLE MANAGEMENT:
1. RECRUITMENT AND SELECTION
o Onboarding:
o Training:
2. ONBOARDING AND TRAINING
40
o Recruitment:
o Selection:
1. RECRUITMENT AND SELECTION
o Onboarding:
o Training:
o Goal Setting:
o Performance Appraisal:
o Development Plans:
o Managing Disputes:
o Maintaining Harmony:
o Career Development:
o Succession Planning:
o Engagement:
o Motivation:
2. ONBOARDING AND TRAINING
3. PERFORMANCE MANAGEMENT4. EMPLOYEE ENGAGEMENT AND MOTIVATION
5. CONFLICT RESOLUTION:
o Compensation:
o Benefits:
o Culture:
o Communication:
7. COMPENSATION AND BENEFITS:8. ORGANIZATIONAL CULTURE AND COMMUNICATION
6. CAREER DEVELOPMENT AND SUCCESSION PLANNING
o Recruitment:
o Selection:
1. RECRUITMENT AND SELECTION
o Onboarding:
o Training:
o Goal Setting:
o Performance Appraisal:
o Development Plans:
o Managing Disputes:
o Maintaining Harmony:
o Career Development:
o Succession Planning:
o Engagement:
o Motivation:
2. ONBOARDING AND TRAINING
3. PERFORMANCE MANAGEMENT4. EMPLOYEE ENGAGEMENT AND MOTIVATION
5. CONFLICT RESOLUTION:
o Compensation:
o Benefits:
o Culture:
o Communication:
7. COMPENSATION AND BENEFITS:8. ORGANIZATIONAL CULTURE AND COMMUNICATION
6. CAREER DEVELOPMENT AND SUCCESSION PLANNING
41
Effective people management contributes to higher job satisfaction, reduced turnover, and a more
positive work environment.
By setting clear goals, providing support, and recognizing achievements, people management en-
hances employee performance and productivity.
Aligning employee efforts with organizational goals helps in achieving strategic objectives and
maintaining a competitive edge.
IMPORTANCE OF PEOPLE MANAGEMENT:
• EMPLOYEE SATISFACTION:
• PERFORMANCE AND PRODUCTIVITY:
• ORGANIZATIONAL SUCCESS:
Effective people management contributes to higher job satisfaction, reduced turnover, and a more
positive work environment.
By setting clear goals, providing support, and recognizing achievements, people management en-
hances employee performance and productivity.
Aligning employee efforts with organizational goals helps in achieving strategic objectives and
maintaining a competitive edge.
IMPORTANCE OF PEOPLE MANAGEMENT:
• EMPLOYEE SATISFACTION:
• PERFORMANCE AND PRODUCTIVITY:
• ORGANIZATIONAL SUCCESS:
42
Good people management practices help organizations adapt to changes, manage transitions,
and handle challenges effectively.
HIERARCHY OF CUSTOMER NEEDS:
• ADAPTABILITY
The hierarchy of customer needs is a conceptual framework used to understand and prioritize the
various needs and desires that customers have. This hierarchy helps businesses and marketers to
identify and address these needs effectively to enhance customer satisfaction and loyalty. The hier-
archy can be compared to Maslow's Hierarchy of Needs, which is a psychological theory that cate-
gorizes human needs into a pyramid structure. Similarly, the hierarchy of customer needs can be vi-
sualized as a tiered structure where foundational needs must be met before higher-level needs are
addressed.
Good people management practices help organizations adapt to changes, manage transitions,
and handle challenges effectively.
HIERARCHY OF CUSTOMER NEEDS:
• ADAPTABILITY
The hierarchy of customer needs is a conceptual framework used to understand and prioritize the
various needs and desires that customers have. This hierarchy helps businesses and marketers to
identify and address these needs effectively to enhance customer satisfaction and loyalty. The hier-
archy can be compared to Maslow's Hierarchy of Needs, which is a psychological theory that cate-
gorizes human needs into a pyramid structure. Similarly, the hierarchy of customer needs can be vi-
sualized as a tiered structure where foundational needs must be met before higher-level needs are
addressed.
43
44
LSM (Living Standards Measure) Segmentation is a method used to classify and understand differ-
ent segments of a population based on their socio-economic status and living standards. It is par-
ticularly useful in marketing, market research, and social research to target and understand con-
sumer behavior, preferences, and purchasing power.
LSM SEGMENTATION:
KEY ASPECTS OF LSM SEGMENTATION• Definition: LSM segmentation divides a population into different categories based on various so-
cio-economic factors such as income, education, occupation, and living conditions. It provides in-
sights into the living standards and economic status of individuals or households.
1. DEFINITION AND PURPOSE:
LSM (Living Standards Measure) Segmentation is a method used to classify and understand differ-
ent segments of a population based on their socio-economic status and living standards. It is par-
ticularly useful in marketing, market research, and social research to target and understand con-
sumer behavior, preferences, and purchasing power.
LSM SEGMENTATION:
KEY ASPECTS OF LSM SEGMENTATION• Definition: LSM segmentation divides a population into different categories based on various so-
cio-economic factors such as income, education, occupation, and living conditions. It provides in-
sights into the living standards and economic status of individuals or households.
1. DEFINITION AND PURPOSE:
45
• Purpose: The primary purpose of LSM segmentation is to identify and target specific groups within
a market. It helps businesses and researchers understand different segments' needs, preferences,
and behaviors, enabling more effective and targeted marketing strategies.
• Income Levels: Income is a significant factor in determining living standards. Higher income typi-
cally correlates with higher living standards, allowing for better access to goods and services.
• Education: The level of education often influences socio-economic status and purchasing be-
havior. Higher education levels are associated with higher earning potential and more sophisticated
consumption patterns.
• Occupation: The type of occupation and employment status can provide insights into an individ-
ual's or household's economic status and lifestyle.
• Housing and Living Conditions: The type and quality of housing, as well as the availability of
amenities and services, are indicators of living standards.
2. CRITERIA FOR SEGMENTATION:
• Purpose: The primary purpose of LSM segmentation is to identify and target specific groups within
a market. It helps businesses and researchers understand different segments' needs, preferences,
and behaviors, enabling more effective and targeted marketing strategies.
• Income Levels: Income is a significant factor in determining living standards. Higher income typi-
cally correlates with higher living standards, allowing for better access to goods and services.
• Education: The level of education often influences socio-economic status and purchasing be-
havior. Higher education levels are associated with higher earning potential and more sophisticated
consumption patterns.
• Occupation: The type of occupation and employment status can provide insights into an individ-
ual's or household's economic status and lifestyle.
• Housing and Living Conditions: The type and quality of housing, as well as the availability of
amenities and services, are indicators of living standards.
2. CRITERIA FOR SEGMENTATION:
46
• Ownership of Goods: Ownership of certain goods and services (e.g., cars, appliances, technolo-
gy) can also reflect socio-economic status and living standards.
• LSM 1-2 (Low Living Standards): Individuals or households in this segment typically have lower
income, education levels, and limited access to amenities. Their purchasing power is relatively low,
and they may prioritize basic needs and affordability.
• LSM 3-4 (Lower-Middle Living Standards): This segment includes individuals or households
with moderate income and education levels. They have some access to consumer goods and ser-
vices but may still be price-sensitive and value-conscious.
• LSM 5-6 (Upper-Middle Living Standards): Individuals or households in this segment general-
ly have higher income, better education, and more access to a wide range of goods and services.
They are less price-sensitive and may seek higher quality and premium products.
3. LSM SEGMENTATION CATEGORIES:
• Ownership of Goods: Ownership of certain goods and services (e.g., cars, appliances, technolo-
gy) can also reflect socio-economic status and living standards.
• LSM 1-2 (Low Living Standards): Individuals or households in this segment typically have lower
income, education levels, and limited access to amenities. Their purchasing power is relatively low,
and they may prioritize basic needs and affordability.
• LSM 3-4 (Lower-Middle Living Standards): This segment includes individuals or households
with moderate income and education levels. They have some access to consumer goods and ser-
vices but may still be price-sensitive and value-conscious.
• LSM 5-6 (Upper-Middle Living Standards): Individuals or households in this segment general-
ly have higher income, better education, and more access to a wide range of goods and services.
They are less price-sensitive and may seek higher quality and premium products.
3. LSM SEGMENTATION CATEGORIES:
47
IKIGAI is a Japanese concept that represents the idea of finding one's purpose or reason for being. It
is often illustrated as a Venn diagram with four overlapping circles, representing the intersection of:
The point where all these circles intersect is your "IKIGAI," or your true purpose and fulfillment in life. It’s
about finding a balance between personal satisfaction, skills, societal contribution, and economic vi-
ability.
1. What You Love (Passion)
2. What You Are Good At (Vocation)
3. What The World Needs (Mission)
4. What You Can Be Paid For (Profession)
IKIGAI:
• LSM 7-8 (High Living Standards): This segment includes individuals or households with high
income, advanced education, and access to luxury goods and services. They have significant pur-
chasing power and prioritize quality, brand, and status.
IKIGAI is a Japanese concept that represents the idea of finding one's purpose or reason for being. It
is often illustrated as a Venn diagram with four overlapping circles, representing the intersection of:
The point where all these circles intersect is your "IKIGAI," or your true purpose and fulfillment in life. It’s
about finding a balance between personal satisfaction, skills, societal contribution, and economic vi-
ability.
1. What You Love (Passion)
2. What You Are Good At (Vocation)
3. What The World Needs (Mission)
4. What You Can Be Paid For (Profession)
IKIGAI:
• LSM 7-8 (High Living Standards): This segment includes individuals or households with high
income, advanced education, and access to luxury goods and services. They have significant pur-
chasing power and prioritize quality, brand, and status.
48
49
o Self-Awareness: Knowing your IKIGAI involves deep self-awareness, which can translate into a
better understanding of what motivates you and what you value. This self-knowledge can be critical
in customer psychology because understanding your own motivations helps in empathizing with
and understanding the motivations of customers. For instance, if a business leader knows that their
IKIGAI involves creativity and making a social impact, they may be more attuned to customers who
value innovative and socially responsible products.
RELATING IKIGAI TO CUSTOMER PSYCHOLOGY:
1. UNDERSTANDING PERSONAL FULFILLMENT AND MOTIVATION:
2. ALIGNING PRODUCTS AND SERVICES WITH CUSTOMER VALUES:
o Self-Awareness: Knowing your IKIGAI involves deep self-awareness, which can translate into a
better understanding of what motivates you and what you value. This self-knowledge can be critical
in customer psychology because understanding your own motivations helps in empathizing with
and understanding the motivations of customers. For instance, if a business leader knows that their
IKIGAI involves creativity and making a social impact, they may be more attuned to customers who
value innovative and socially responsible products.
RELATING IKIGAI TO CUSTOMER PSYCHOLOGY:
1. UNDERSTANDING PERSONAL FULFILLMENT AND MOTIVATION:
2. ALIGNING PRODUCTS AND SERVICES WITH CUSTOMER VALUES:
50
o Customer Alignment: When businesses and their employees understand their IKIGAI, they are
more likely to align their products, services, and communications with their personal values and pas-
sions. This alignment can resonate with customers who share similar values. For example, a compa-
ny that deeply values sustainability (part of their IKIGAI) is more likely to attract customers who priori-
tize eco-friendly practices and products.
o
Authenticity in Communication: A clear understanding of IKIGAI helps in creating authentic
and compelling brand messaging. When a company’s mission and values are rooted in its employ-
ees' IKIGAI, the communication is more genuine and resonates more with customers. Authenticity is
crucial in customer psychology because it builds trust and loyalty. For instance, a brand that is gen-
uinely passionate about social causes, reflected in its IKIGAI, can connect more deeply with custom-
ers who value those same causes.
3. CREATING AUTHENTIC CONNECTIONS:
4. ENHANCING CUSTOMER EXPERIENCE:
o Customer Alignment: When businesses and their employees understand their IKIGAI, they are
more likely to align their products, services, and communications with their personal values and pas-
sions. This alignment can resonate with customers who share similar values. For example, a compa-
ny that deeply values sustainability (part of their IKIGAI) is more likely to attract customers who priori-
tize eco-friendly practices and products.
o
Authenticity in Communication: A clear understanding of IKIGAI helps in creating authentic
and compelling brand messaging. When a company’s mission and values are rooted in its employ-
ees' IKIGAI, the communication is more genuine and resonates more with customers. Authenticity is
crucial in customer psychology because it builds trust and loyalty. For instance, a brand that is gen-
uinely passionate about social causes, reflected in its IKIGAI, can connect more deeply with custom-
ers who value those same causes.
3. CREATING AUTHENTIC CONNECTIONS:
4. ENHANCING CUSTOMER EXPERIENCE:
51
o Purpose-Driven Service: Employees who are aligned with their IKIGAI are more likely to provide
a passionate and purpose-driven customer experience. This can enhance customer satisfaction as
the service or product is delivered with a sense of purpose and commitment. For example, a cus-
tomer service representative who finds fulfillment in helping others (part of their IKIGAI) will likely offer
a more empathetic and effective service experience.
Consider someone who loves teaching, is skilled at explaining complex concepts, believes in the im-
portance of education, and can be compensated as a teacher or educator. Their Ikigai might involve
pursuing a career in teaching or educational content creation, where they can combine their pas-
sion, skills, societal contribution, and financial needs.
o
Unique Value Proposition: A business that understands and integrates IKIGAI into its strategy
can differentiate itself in the market by offering unique value propositions that resonate with cus-
tomers. This differentiation can stem from a deep understanding of both what the business stands
for and what the customers value, leading to a stronger market position.
5. DIFFERENTIATING IN THE MARKET:
EXAMPLE OF IKIGAI IN PRACTICE:
o Purpose-Driven Service: Employees who are aligned with their IKIGAI are more likely to provide
a passionate and purpose-driven customer experience. This can enhance customer satisfaction as
the service or product is delivered with a sense of purpose and commitment. For example, a cus-
tomer service representative who finds fulfillment in helping others (part of their IKIGAI) will likely offer
a more empathetic and effective service experience.
Consider someone who loves teaching, is skilled at explaining complex concepts, believes in the im-
portance of education, and can be compensated as a teacher or educator. Their Ikigai might involve
pursuing a career in teaching or educational content creation, where they can combine their pas-
sion, skills, societal contribution, and financial needs.
o
Unique Value Proposition: A business that understands and integrates IKIGAI into its strategy
can differentiate itself in the market by offering unique value propositions that resonate with cus-
tomers. This differentiation can stem from a deep understanding of both what the business stands
for and what the customers value, leading to a stronger market position.
5. DIFFERENTIATING IN THE MARKET:
EXAMPLE OF IKIGAI IN PRACTICE:
Tags
customer service
customer experience
customer psychology
customer satisfaction
customer relationship management
customer connection
b2b
b2c
buying behavior
social intelligence
negotiation
non-verbal communication
lsm segmentation
ikigai
marketing strategies
consumer behavior
brand loyalty
social conformity
business growth
business intelligence
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