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. Tata Steel usedsteeljunction® to encourageconsumers to go steel shopping and to develop deeperunderstanding of individual and household customers.
4. Figure 6.1Model of Consumer Behavior
5. What InfluencesConsumer Behavior? Cultural Factors Social Factors Personal Factors
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. SubculturesNationalities Religions Racial groups Geographic regions
8. Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
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. Social FactorsReference Family groups Social Statuses roles
11. Reference GroupsMembership groups Primary groups Secondary groups Aspirational groups Dissociative groups
12. Provogue uses teenage icons as brand ambassadors and a youthtargeted website to connect to its customers
13. Radio Shack Targets Women with Female Store Managers
14. Roles and Status What degree of status is associated with various occupational roles?
15. Personal Factors Age Self- Life cycleconcept stageLifestyle OccupationValues Wealth Personality
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
27. Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior
28. Problem Recognition
29. Sources of Information Personal Commercial Public Experiential
30. Figure 6.5 Successive SetsInvolved in Consumer Decision Making
31. Table 6.8 Sales and Product Life Cycle
32. Figure 6.6 Stages betweenEvaluation of Alternatives and Purchase
33. Non-Compensatory Models of Choice• Conjunctive• Lexicographic• Elimination-by-aspects
34. Perceived RiskFunctional Physical Financial Social Psychological Time
35. Figure 6.7 How Customers Use and Dispose of Products
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. 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. Mental Accounting• Consumers tend to… – Segregate gains – Integrate losses – Integrate smaller losses with larger gains – Segregate small gains from large losses
39. Marketing Debate Is target marketing ever bad?Take a position:1. Targeting minorities is exploitive.or2. Targeting minorities is a soundbusiness practice.
40. Marketing Discussion Do you have rules you employ inspending money? Do you follow Thaler’s four principlesin reacting to gains and losses?