AnalyzingConsumer Markets
Chapter Questions• How do consumer characteristics  influence buying behavior?• What major psychological processes  influe...
Tata Steel usedsteeljunction® to   encourageconsumers to go steel shopping and to develop     deeperunderstanding of indiv...
Figure 6.1Model of Consumer Behavior
What InfluencesConsumer Behavior?   Cultural Factors           Social Factors                 Personal Factors
What is Culture? Culture is the fundamental determinant of a person’s wants and behaviors acquiredthrough socialization pr...
SubculturesNationalities       Religions            Racial groups                   Geographic regions
Social Classes  Upper uppers  Lower uppers  Upper middles   Middle class  Working class  Upper lowers  Lower lowers
Characteristics of Social            Classes• Within a class, people tend to behave alike• Social class conveys perception...
Social FactorsReference            Family groups Social            Statuses  roles
Reference GroupsMembership groups      Primary groups           Secondary groups                Aspirational groups       ...
Provogue uses teenage icons as brand ambassadors and a youthtargeted website to connect to its           customers
Radio Shack Targets Women with    Female Store Managers
Roles and Status   What degree of status is   associated with various   occupational roles?
Personal Factors               Age Self-                    Life cycleconcept                     stageLifestyle          ...
The Family Life Cycle
Brand Personality            Sincerity           Excitement           Competence          Sophistication           Ruggedn...
Lifestyle Influences  Multi-tasking  Time-starvedMoney-constrained
Faysal Bank of Pakistan has   extendedbanking hours   for time-   pressed  executives.
Table 6.2 LOHAS (Lifestyles of    Health and Sustainability) Market               Segments•   Sustainable Economy•   Healt...
Key Psychological Processes     Motivation   Perception     Learning      Memory
Motivation                Maslow’s       Herzberg’s  Freud’s       Hierarchy      Two-Factor  Theory        of Needs      ...
Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
Perception      Selective Attention      Selective Retention      Selective Distortion     Subliminal Perception
Figure 6.3 State Farm Mental            Map
Figure 6.4 Consumer Buying          Process     Problem Recognition      Information Search          Evaluation      Purch...
Problem Recognition
Sources of Information Personal    Commercial  Public     Experiential
Figure 6.5 Successive SetsInvolved in Consumer Decision            Making
Table 6.8 Sales and Product         Life Cycle
Figure 6.6 Stages betweenEvaluation of Alternatives and          Purchase
Non-Compensatory Models of           Choice• Conjunctive• Lexicographic• Elimination-by-aspects
Perceived RiskFunctional    Physical             Financial                   Social                   Psychological       ...
Figure 6.7 How Customers Use   and Dispose of Products
Rural Consumer Behaviour• Rural consumers are more brand loyal• Restrictions on consumption• Collective consumption behavi...
Other Theories of   Consumer Decision MakingInvolvement          Decision Heuristics• Elaboration        • Availability  L...
Mental Accounting• Consumers tend to…  – Segregate gains  – Integrate losses  – Integrate smaller losses with larger gains...
Marketing Debate Is target marketing ever bad?Take a position:1. Targeting minorities is exploitive.or2. Targeting minori...
Marketing Discussion Do you have rules you employ inspending money? Do you follow Thaler’s four principlesin reacting to...
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Consumer behavior

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Consumer behavior

  1. 1. AnalyzingConsumer Markets
  2. 2. Chapter Questions• How do consumer characteristics influence buying behavior?• What major psychological processes influence consumer responses to the marketing program?• How do consumers make purchasing decisions?• How do marketers analyze consumer decision making?
  3. 3. Tata Steel usedsteeljunction® to encourageconsumers to go steel shopping and to develop deeperunderstanding of individual and household customers.
  4. 4. Figure 6.1Model of Consumer Behavior
  5. 5. What InfluencesConsumer Behavior? Cultural Factors Social Factors Personal Factors
  6. 6. What is Culture? Culture is the fundamental determinant of a person’s wants and behaviors acquiredthrough socialization processes with family and other key institutions.
  7. 7. SubculturesNationalities Religions Racial groups Geographic regions
  8. 8. Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
  9. 9. Characteristics of Social Classes• Within a class, people tend to behave alike• Social class conveys perceptions of inferior or superior position• Class may be indicated by a cluster of variables (occupation, income, wealth)• Class designation is mobile over time
  10. 10. Social FactorsReference Family groups Social Statuses roles
  11. 11. Reference GroupsMembership groups Primary groups Secondary groups Aspirational groups Dissociative groups
  12. 12. Provogue uses teenage icons as brand ambassadors and a youthtargeted website to connect to its customers
  13. 13. Radio Shack Targets Women with Female Store Managers
  14. 14. Roles and Status What degree of status is associated with various occupational roles?
  15. 15. Personal Factors Age Self- Life cycleconcept stageLifestyle OccupationValues Wealth Personality
  16. 16. The Family Life Cycle
  17. 17. Brand Personality Sincerity Excitement Competence Sophistication Ruggedness
  18. 18. Lifestyle Influences Multi-tasking Time-starvedMoney-constrained
  19. 19. Faysal Bank of Pakistan has extendedbanking hours for time- pressed executives.
  20. 20. Table 6.2 LOHAS (Lifestyles of Health and Sustainability) Market Segments• Sustainable Economy• Healthy Lifestyles• Ecological Lifestyles• Alternative Health Care• Personal Development
  21. 21. Key Psychological Processes Motivation Perception Learning Memory
  22. 22. Motivation Maslow’s Herzberg’s Freud’s Hierarchy Two-Factor Theory of Needs Theory Behavior Behavior Behavior isis guided by is driven by guided bysubconscious the lowest, motivating motivations unmet need and hygiene factors
  23. 23. Maslow’s Hierarchy of Needs
  24. 24. Herzberg’s Two-Factor Theory
  25. 25. Perception Selective Attention Selective Retention Selective Distortion Subliminal Perception
  26. 26. Figure 6.3 State Farm Mental Map
  27. 27. Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior
  28. 28. Problem Recognition
  29. 29. Sources of Information Personal Commercial Public Experiential
  30. 30. Figure 6.5 Successive SetsInvolved in Consumer Decision Making
  31. 31. Table 6.8 Sales and Product Life Cycle
  32. 32. Figure 6.6 Stages betweenEvaluation of Alternatives and Purchase
  33. 33. Non-Compensatory Models of Choice• Conjunctive• Lexicographic• Elimination-by-aspects
  34. 34. Perceived RiskFunctional Physical Financial Social Psychological Time
  35. 35. Figure 6.7 How Customers Use and Dispose of Products
  36. 36. Rural Consumer Behaviour• Rural consumers are more brand loyal• Restrictions on consumption• Collective consumption behaviour: for family rather than individual• Seasonality of consumption based on seasonality of agricultural production/income• Specific patterns in the five-stage buying decision process
  37. 37. Other Theories of Consumer Decision MakingInvolvement Decision Heuristics• Elaboration • Availability Likelihood Model • Representativeness• Low-involvement • Anchoring and marketing adjustment strategies• Variety-seeking buying behavior
  38. 38. Mental Accounting• Consumers tend to… – Segregate gains – Integrate losses – Integrate smaller losses with larger gains – Segregate small gains from large losses
  39. 39. Marketing Debate Is target marketing ever bad?Take a position:1. Targeting minorities is exploitive.or2. Targeting minorities is a soundbusiness practice.
  40. 40. Marketing Discussion Do you have rules you employ inspending money? Do you follow Thaler’s four principlesin reacting to gains and losses?

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