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?
Tata Steel usedsteeljunction® to encourageconsumers to go steel shopping and to develop deeperunderstanding of individual and household customers.
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 processes with family and other key institutions.
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 perceptions of inferior or superior position• Class may be indicated by a cluster of variables (occupation, income, wealth)• Class designation is mobile over time
Social FactorsReference Family groups Social Statuses roles
Reference GroupsMembership groups Primary groups Secondary groups Aspirational groups Dissociative 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 OccupationValues Wealth Personality
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
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 Time
Figure 6.7 How Customers Use and Dispose of Products
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
Other Theories of Consumer Decision MakingInvolvement Decision Heuristics• Elaboration • Availability Likelihood Model • Representativeness• Low-involvement • Anchoring and marketing adjustment strategies• Variety-seeking buying behavior
Mental Accounting• Consumers tend to… – Segregate gains – Integrate losses – Integrate smaller losses with larger gains – Segregate small gains from large losses
Marketing Debate Is target marketing ever bad?Take a position:1. Targeting minorities is exploitive.or2. Targeting minorities is a soundbusiness practice.
Marketing Discussion Do you have rules you employ inspending money? Do you follow Thaler’s four principlesin reacting to gains and losses?