Consumer Behaviour And Product Design
17/02/2015Consumer Behaviour andProduct DesignKathy Byrne12th February 2015“if the market worked perfectly andconsumers were completely rationalthen there would be no need for us. Inthat world firms would treat theircustomers fairly because it was in theirinterest to do so and consumers wouldbuy products and services that were intheir best long-term interest.”Clive Adamson, FCA Director of Supervision , May 201412th February 20151
17/02/2015Why is there a problem with the uctsBehaviouralBiasesProviders petitionFairnessDifficult toJudge12th February 20153Understanding Consumers12th February 201542
17/02/2015FCA Research12th February 20155FCA Consumer Spotlight12th February 201563
17/02/2015FCA Spotlight SegmentsRetired withResourcesRetired on aBudgetAffluent andAmbitiousMature andSavvyLiving For NowStriving andSupportingStarting OutHard PressedStretched ButResourcefulBusy 12th February 20157Affluent & AmbitiousProtectionProductsLife 53%CI 24%PMI 18%IP 17%PPI 12%12th February 201584
17/02/2015Stretched But ResourcefulProtectionProductsLife 55%CI 24%PMI 16%IP9%PPI 9%12th February 20159Busy AchieversProtectionProductsLife 62%CI 33%PMI 23%IP 11%PPI 8%12th February 2015105
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17/02/2015Consumer Behaviour1312th February 2015Consumer Decision Making12th February 2015147
17/02/2015Financial DecisionsThe FCB GridInvolvementHighLowFinancial Decisions2635763ThinkingFeelingQuality vs Price12th February 2015168
17/02/2015Behavioural Biases1712th February 2015Q5 Which would you choose:A Guaranteed 1,000B One in 5 chance of winning 10,000C No opinion / don’t know12th February 2015189
17/02/201512th February 201519Q6 Which would you choose:A 1,000 nowB 1,100 in one yearC No opinion / don’t know12th February 20152010
17/02/201512th February 201521Consumer Understanding12th February 20152211
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17/02/201512th February 201525E2: Information Sources: Life insurance,Critical illness and Income protectionSource: FCA Spotlight question E2 for protection combined for segments 3.Affluent & Ambitious, 9. Stretched but Resourceful and 10. Busy Achievers12th February 20152613
17/02/201512th February 201527Health Optimism17 February 20152814
17/02/2015Income Optimism17 February 20152917 February 20153015
17/02/2015Loyalty and Inertia3112th February 201512th February 20153216
17/02/201512th February 201533Customer Experience & CustomerLoyalty – Banks & Building SocietiesSource: Grant Thornton Customer Experience and Customer Loyalty (CLIX)12th February 20153417
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17/02/2015Product Fairness3712th February 2015Product Fairness difficult to judgeAnnuities the prime candidate for a newmis-selling scandal – Sunday Times 14/12/1412th February 20153819
17/02/2015Annuity Market Review3912th February 2015Over 50s ProductsOPINION FORMERS MAIN CRITICISMS Payout can be substantially less than premiums paid Some plans make you pay until death Lack of flexibility – possibility of losing everything if youstop paying in, inability to reduce premiums Promoted using celebrities and free gifts11Source: Simon Cox, Royal London, ILAG Seminar, 23rd October 201420
17/02/2015Mitigating Market CriticismMarket IssueMarket response Payout can be substantially lessthan premiums paid Increased price to consumers Some plans make you pay untildeathX Some plans still make you payforever Lack of flexibility – possibility oflosing everything if you stop payingin, inability to reduce premiums Modern twist on paid up value Use of celebrities and free gifts Market still operates this way Added value features Terminal Illness Benefit Almost all now have premium capor a maximum term. Flexibility to reduce premiums Funeral Benefit Option Bereavement counsellingSource: Simon Cox, Royal London, ILAG Seminar, 23rd October 2014Summary and Conclusions12th February 20154221
17/02/2015Which segment are actuaries in?12th February 201543Consumer Behaviour andProduct DesignKathy Byrne12th February 201522
Consumer Behaviour and Product Design Kathy Byrne 12th February 2015 . Quality vs Price 12th February 2015 16. 17/02/2015 9 Behavioural Biases 12th February 2015 17 . Promoted using celebrities and free gifts 11 Source: Simon Cox, Royal London, ILAG Seminar, 23 rd October 2014 .
Consumer (and business) buyer and market behaviour Trier 3 . Previewing concepts (1) Define the consumer market and construct a simple model of consumer buyer behaviour Demonstrate how culture, subculture and social class influence consumer buying . – Consumer
Behaviour:-Consumer purchase decision, types of decision, types of decision behaviour, buying stage and situational influence, models of consumer behaviour- . price, promotion and distribution, so that a total product (a set of entire characteristics) is offered. . Market analysis requires an understanding of the 4-Cs which are consumer .
Health-seeking behaviour practice is recognised as an essential tool to prevent the menace of hypertension. The association among health and human behaviour is a major area of interest in public health. Kasl and Cobb 1966 identified three types of health behaviour: preventive health behaviour, illness behaviour, and sick-role behaviour.
out that behaviour comes about from an interaction of ‘capability’ to perform the behaviour and ‘opportunity’ and ‘motivation’ to carry out the behaviour. New behaviour or behaviour change requires a change in one or more of these. As COM-B is an overarching framework of behaviour, it can supplement the CBT model in PWP
Consumer Behaviour: Consumer behaviour is a process in its early stages of development, the field was often referred to as buyer behavior, reflecting an emphasis on the interaction between consumers and producers at the time of purchase. Marketers now recognize that consumer behaviour is an ongoing
! 2! Marketing mix 4 Ps Product, Price, Place (Distribution), Promotion. Products must solve a consumer problem. Consumer behaviour audit: systematic review of all important aspects of consumer behaviour. o List of key questions as guide to develop marketing strategy from CB perspective. o Organised around key decisions MMs must make re: .
consumers' buying behaviour (Peter and Bowler, 2001, Hopes, 1995 and Dubois, 2000). Consumer behaviour research is the scientific study of the processes consumers use to select, secure, use and dispose of products and services that satisfy their needs. Knowledge of consumer behaviour directly affects marketing strategy (Anderson et al, 2005).
The term consumer behaviour is defined as the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behaviour focuses on how individuals make decisions to spend their available
