1 consumer behaviour, second edition martin evans, ahmad jamal gordon foxall cardiff business school...

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Consumer Behaviour, Second Edition

Martin Evans, Ahmad Jamal Gordon FoxallCardiff Business School

ISBN:978-0-470-99465-8

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

Chapter 11

2© 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


Growth in Data

Informed Marketing

Declining Effectiveness of Traditional Media

Need for Better Targeting

Technology Drivers

Changes in Market Information

• 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)

• Electronic point of sale & Transactional Data, Geodemographics

• Compilation of Lists = Biographics

• Increasing media costs

• Diminishing/Fragmented audiences

• Clutter


Post Code, Census & Electoral Roll

(Contemporary) Lifestyle

Lists

Geodemographics

Competitive Intelligence

Data Fusion

Data Mining

Surveillance data: RFID, GPS, Biometrics

Neurolinguistics (NLP)

Profile/en

han

cemen

t data

Beh

avioural d

ata

Transactional Data: pre-purchase

Transactional Data: company

Transactional Data: consortia

C2C data (eg Social Network data)

Genetic Data

4

5© 2008 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



Transactional Data


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).

Transactional Data: Data Consortia

7


Transactional Data: Prepurchase


• 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 UK2006 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)

Surveillance: RFID

9


Surveillance: GPS

10



Evans et al (2000) The Hidden Sex Life of the Male and Female Shot, International Journal of Advertising 19.1 pp43-65

(remember…chapter 5)

11


• Profiling and enhancement data

• Postcode system

• Electoral roll

• Census

• Life style


Geodemographics:Postal Geography


Census

14


Census

15

Contemporary Lifestyle Data: NOT anonymous




CF10 3EU

C2C Data


Consumer Panels..



Fusion of Data Sources = buying biography

Biographics

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? 21© 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/evans


Post Code, Census & Electoral Roll


Lists

Geodemographics


Data Fusion

Data Mining

Surveillance data: RFID, GPS, Biometrics


Profile/en

han

cemen

t data

Beh

avioural d

ata

Transactional Data: pre-purchase

Transactional Data: company

Transactional Data: consortia

C2C data (eg Social Network data)

Genetic Data

Biographics22


Marketing Metrics: Data Mining


‘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


ReferencesEvans 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

1 consumer behaviour, second edition martin evans, ahmad jamal gordon foxall cardiff business school...

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