Consumer Behaviour


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  • Consumer Behaviour

    1. 1. MARKETING MANAGEMENT 12 th edition 6 Analyzing Consumer Markets Kotler Keller
    2. 2. Chapter Questions <ul><li>How do consumer characteristics influence buying behavior? </li></ul><ul><li>What major psychological processes influence consumer responses to the marketing program? </li></ul><ul><li>How do consumers make purchasing decisions? </li></ul><ul><li>How do marketers analyze consumer decision making? </li></ul>
    3. 3. Emerging Trends in Consumer Behavior Metrosexual – Straight urban man who enjoys shopping and using grooming products
    4. 4. What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors
    5. 5. Culture The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions
    6. 6. Subcultures Nationalities Religions Racial groups Geographic regions Special interests
    7. 7. Insight into the subculture of wine enthusiasts
    8. 8. Fast Facts About American Culture <ul><li>The average American: </li></ul><ul><ul><li>chews 300 sticks of gum a year </li></ul></ul><ul><ul><li>goes to the movies 9 times a year </li></ul></ul><ul><ul><li>takes 4 trips per year </li></ul></ul><ul><ul><li>attends a sporting event 7 times each year </li></ul></ul>
    9. 9. Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
    10. 10. Characteristics of Social Classes <ul><li>Within a class, people tend to behave alike </li></ul><ul><li>Social class conveys perceptions of inferior or superior position </li></ul><ul><li>Class may be indicated by a cluster of variables (occupation, income, wealth) </li></ul><ul><li>Class designation is mobile over time </li></ul>
    11. 11. Social Factors Reference groups Social roles Statuses Family
    12. 12. Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups
    13. 13. Family <ul><li>Family of Orientation </li></ul><ul><ul><li>Religion </li></ul></ul><ul><ul><li>Politics </li></ul></ul><ul><ul><li>Economics </li></ul></ul><ul><li>Family of Procreation </li></ul><ul><ul><li>Everyday buying behavior </li></ul></ul>
    14. 14. Targeting Women and Their Families
    15. 15. Roles and Statuses What degree of status is associated with various occupational roles?
    16. 16. Personal Factors Age Values Life cycle stage Occupation Personality Self- concept Wealth Lifestyle
    17. 17. <ul><li>Behavior changes </li></ul><ul><li>according to life cycle stage </li></ul><ul><li>Family </li></ul><ul><li>Psychological </li></ul><ul><li>Critical life events </li></ul>
    18. 18. Brand Personality Sincerity Excitement Competence Sophistication Ruggedness
    19. 19. Lifestyle Influences Multi-tasking Time-starved Money-constrained
    20. 20. Figure 6.1 Model of Consumer Behavior
    21. 21. Key Psychological Processes Motivation Memory Learning Perception
    22. 22. Motivation Freud’s Theory Behavior is guided by subconscious motivations Maslow’s Hierarchy of Needs Behavior is driven by lowest, unmet need Herzberg’s Two-Factor Theory Behavior is guided by motivating and hygiene factors
    23. 23. Maslow’s Hierarchy of Needs
    24. 24. Herzberg’s Two-Factor Theory
    25. 25. Perception Selective Attention Subliminal Perception Selective Retention Selective Distortion
    26. 26. Figure 6.3 Dole Mental Map
    27. 27. Encoding Brand Associations
    28. 28. Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior
    29. 29. Problem Recognition
    30. 30. Sources of Information Personal Experiential Public Commercial
    31. 31. Figure 6.5 Successive Sets
    32. 32. Evaluation of Attributes Table 6.3
    33. 33. Figure 6.6 Stages between Evaluation of Alternatives and Purchase
    34. 34. Non-compensatory Models of Choice <ul><li>Conjunctive </li></ul><ul><li>Lexicographic </li></ul><ul><li>Elimination-by-aspects </li></ul>
    35. 35. Perceived Risk Functional Physical Financial Social Psychological Time
    36. 36. Figure 6.7 How Customers Use and Dispose of Products
    37. 37. Other Theories of Consumer Decision Making <ul><li>Involvement </li></ul><ul><li>Elaboration Likelihood Model </li></ul><ul><li>Low-involvement marketing strategies </li></ul><ul><li>Variety-seeking buying behavior </li></ul><ul><li>Decision Heuristics </li></ul><ul><li>Availability </li></ul><ul><li>Representativeness </li></ul><ul><li>Anchoring and adjustment </li></ul>
    38. 38. Mental Accounting <ul><li>Consumers tend to… </li></ul><ul><ul><li>Segregate gains </li></ul></ul><ul><ul><li>Integrate losses </li></ul></ul><ul><ul><li>Integrate smaller losses with larger gains </li></ul></ul><ul><ul><li>Segregate small gains from large losses </li></ul></ul>
    39. 39. Marketing Debate <ul><li>Is Target Marketing Ever Bad? </li></ul><ul><li>Take a position: </li></ul><ul><li>Targeting minorities is exploitative. </li></ul><ul><li>2. Targeting minorities is a sound </li></ul><ul><li>business practice. </li></ul>
    40. 40. Marketing Discussion <ul><li>What are your mental accounts? </li></ul><ul><li>Do you have rules you employ in </li></ul><ul><li>spending money? </li></ul><ul><li>Do you follow Thaler’s four principles </li></ul><ul><li>in reacting to gains and losses? </li></ul>