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Analyzing
Consumer Markets
Chapter 6
What
Influences
Consumer
Behavior?
●Consumer behavior
●The study of how individuals,
groups, and organizations select,
buy, use, and dispose of goods,
services, ideas, or experiences to
satisfy their needs and wants
●Influenced by cultural, social, and
personal factors
Figure 6.1
Model Of
Consumer
Behavior
Characteristics
Affecting Consumer
Behavior
Factors Influencing Consumer Behavior
Cultural
factors
● Culture is the fundamental determinant of a person’s wants and
behavior.
● Each culture consists of smaller subcultures that provide more
specific identification and socialization for their members.
Subcultures include nationalities, religions, racial groups, and
geographic regions.When subcultures grow large and affluent
enough, companies often design specialized marketing programs
to serve them
● Virtually all human societies exhibit social stratification, most
often in the form of social classes, relatively homogeneous and
enduring divisions in a society, hierarchically ordered and with
members who share similar values, interests, and behavior. One
classic depiction of social classes in the United States defined
seven ascending levels: (1) lower lowers, (2) upper lowers, (3)
working class, (4) middle class, (5) upper middles, (6) lower uppers,
and (7) upper uppers. Social class members show distinct product
and brand preferences in many areas
Social Factors
●Reference Groups A person’s reference groups are
all the groups that have a direct (face-to-face) or
indirect influence on their attitudes or behavior.
● Groups having a direct influence are called
membership groups.
●Some of these are primary groups with whom the
person interacts fairly continuously and informally,
such as family, friends, neighbors, and coworkers.
●People also belong to secondary groups, such as
religious, professional, and trade-union groups,
which tend to be more formal and require less
continuous interaction.
Reference
groups
influence
members in at
least three
ways
●.People are also influenced by groups to which they do
not belong. Aspirational groups are those a person
hopes to join;
●dissociative groups are those whose values or behavior
an individual rejects.
●Where reference group influence is strong, marketers
must determine how to reach and influence the group’s
opinion leaders.
● An opinion leader is the person who offers informal
advice or information about a specific product or
product category, such as which of several brands is
best or how a particular product may be used
Social Factors
●Cliques Communication researchers propose a
social-structure view of interpersonal
communication.
●They see society as consisting of cliques, small
groups whose members interact frequently. Clique
members are similar, and their closeness facilitates
effective communication but also insulates the
clique from new ideas.
●The challenge is to create more openness so
cliques exchange information with others in
society.This openness is helped along by people
who function as liaisons and connect two or more
cliques without belonging to either and by bridges,
people who belong to one clique and are linked to a
person in another.
Cliques
FAMILY
●There are two families in the buyer’s life.The family of
orientation consists of parents and siblings. From
parents a person acquires an orientation toward
religion, politics, and economics and a sense of
personal ambition, self-worth, and love.
●A more direct influence on everyday buying behavior is
the family of procreation—namely, the person’s
spouse.The wife has usually acted as the family’s main
purchasing agent, especially for food, sundries, and
staple clothing items. Now traditional purchasing roles
are changing, and marketers would be wise to see both
men and women as possible targets
Personal
factor
●Age/stage in life cycle
●Occupation and economic
circumstances
●Personality and self-concept
●Lifestyle and values
Characteristic
s Affecting
Consumer
Behavior
● Age and life-cycle stage
● Youth: younger than 18
● Getting started: 18–35
● Builders: 35–50
● Accumulators: 50–60
● Preservers: over 60
Personal Factors
Characteri
stics
Affecting
Consumer
Behavior
Occupation affects the goods and services bought by consumers
Economic situation includes trends in:
Personal Factors
Personal
income
Savings
Interest
rates
Lifestyle is a person’s
pattern of living as
expressed in his or her
psychographics
●Measures a consumer’s
AIOs (activities, interests,
opinions) to capture
information about a
person’s pattern of acting
and interacting in the
environment
Personal Factors
Characteristics
Affecting
Consumer
Behavior
● Personality and self-concept
● Personality refers to the unique psychological characteristics that lead to
consistent and lasting responses to the consumer’s environment
Personal Factors
Characteristics Affecting
Consumer Behavior
Key
Psychological
Processes
Motivation
Perception
Learning
Emotions
Memory
Motivation
Freud’s
Theory
Behavior
is guided by
subconscio
us
motivations
Maslow’s
Hierarchy
of Needs
Behavior
is driven by
lowest,
unmet need
Herzberg’s
Two-Factor
Theory
Behavior is
guided by
dissatisfiers
and
satisfiers
Freud’s
Theory
● Freudian theory postulates that adult personality is made up
of three aspects: (1) the id, operating on the pleasure
principle generally within the unconscious; (2) the ego,
operating on the reality principle within the conscious realm;
and (3) the superego, operating on the morality principle at all
levels of consciousness.
Figure 6.2
Maslow’s
Hierarchy Of
Needs
Perception
●The process by
which we select,
organize, and
interpret
information inputs
to create a
meaningful picture
of the world
perception
Selective attention
Selective distortion
Selective retention
Subliminal perception
PERCEPTION
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 5- slide 25
Psychological Factors
Selective attention is the tendency for
people to screen out most of the
information to which they are exposed
Selective distortion is the tendency for
people to interpret information in a way
that will support what they already believe
Selective retention is the tendency to
remember good points made about a
brand they favor and forget good points
about competing brands
Subliminal perception is the perception of a series of stimulus which
the person is not consciously aware of and gets under the
Key
Psychological
Processes
●Learning
●Induces changes in our behavior
arising from experience
●Drive and cues
●Generalization and discrimination
Key
Psychological
Processes
●Emotions
●Many different
kinds of
emotions can
be linked to
brands
Key
Psychological
Processes
●Memory
●Short-term vs. long-term
memory
●Associative network memory
model
●Brand associations
●Memory encoding
●Memory retrieval
Hypothetical
State Farm
Mental MaP
The Buying
Decision
Process
●The consumer typically
passes through five stages
●Problem recognition
●Information search
●Evaluation of alternatives
●Purchase decision
●Post purchase behavior
The Buyer Decision Process
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 5- slide 34
• Occurs when the buyer recognizes
a problem or need triggered by:
– Internal stimuli: when one of the person’s
normal needs—for example, hunger or
thirst—rises to a level high enough to become a
drive
– External stimuli: an advertisement or a
discussion with a friend might get you thinking
about buying a new car
Need
Recognition
The Buyer Decision Process
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 5- slide 35
• Personal sources—family and friends
• Commercial sources—advertising,
Internet
• Public sources—mass media, consumer
organizations
• Experiential sources—handling,
examining, using the product
Sources of
Information
Figure 6.5
Sets Involved
In Decision
Making
The Buyer Decision Process
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 5- slide 37
• How the consumer processes
information to arrive at brand
choices
Evaluation
of Alternatives
Evaluation of
alternatives
Expectancy-v
alue model
●Suppose Linda has narrowed her choice set to four laptops (A, B, C, and D).
Assume she’s interested in four attributes: memory capacity, graphics capability,
size and weight, and price.Table 6.3 shows her beliefs about how each brand rates
on the four attributes. If one computer dominated the others on all the criteria, we
could predict that Linda would choose it. But, as is often the case, her choice set
consists of brands that vary in their appeal. If Linda wants the best memory
capacity, she should buy C; if she wants the best graphics capability, she should
buy A; and so on.
●Suppose she assigned 40 percent of the importance to the laptop’s memory
capacity, 30 percent to graphics capability, 20 percent to size and weight, and 10
percent to price.
●the expectancy-value model, we multiply her weights by her beliefs about each
computer’s attributes.This computation leads to the following perceived values:
The expectancy-value model is a compensatory model, in that perceived
good things about a product can help to overcome perceived bad things.
But consumers often take “mental shortcuts” called heuristics or rules of
thumb in the decision process.With no compensatory models of
consumer choice, positive and negative attribute considerations don’t
necessarily net out. Evaluating attributes in isolation makes decision
making easier for a consumer, but it also increases the likelihood that she
would have made a different choice if she had deliberated in greater
detail.We highlight three choice heuristics here.
Purchase decision
Compensatory vs. no compensatory models
Purchase
decision
Compensatory
vs. no
compensatory
models
Conjunctive heuristic
Lexicographic heuristic
Elimination-by-aspects heuristic
Purchase
decision
Compensatory
vs. no
compensatory
models
●1. Using the conjunctive heuristic, the consumer sets a
minimum acceptable cutoff level for each attribute and
chooses the first alternative that meets the minimum
standard for all attributes. For example, if Linda
decided all attributes had to rate at least 5, she would
choose laptop B.
● 2.With the lexicographic heuristic, the consumer
chooses the best brand on the basis of its perceived
most important attribute.With this decision rule, Linda
would choose laptop C.
●3. Using the elimination-by-aspects heuristic, the
consumer compares brands on an attribute selected
probabilistically—where the probability of choosing an
attribute is positively related to its importance—and
eliminates brands that do not meet minimum
acceptable cutoffs.
Intervening
factors
1. attitudes of
others
●The first factor is the attitudes of
others.The influence on us of
another person’s attitude depends
on two things: (1) the intensity of the
other person’s negative attitude
toward our preferred alternative and
(2) our motivation to comply with
the other person’s wishes.
2. Types of
perceived risk
Functional
risk Physical risk
Financial risk
Social risk
Psychological
risk
Time risk
2. Other
situational
factors
●1. Functional risk—The product does not perform to
expectations.
●2. Physical risk—The product poses a threat to the
physical well-being or health of the user or others.
●3. Financial risk—The product is not worth the price
paid.
●4. Social risk—The product results in
embarrassment in front of others.
● 5. Psychological risk—The product affects the
mental well-being of the user.
● 6.Time risk—The failure of the product results in
an opportunity cost of finding another satisfactory
product
The Buyer Decision Process
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 5- slide 48
• The satisfaction or dissatisfaction that
the consumer feels about the purchase
• Relationship between:
– Consumer’s expectations
– Product’s perceived performance
• The larger the gap between
expectation and performance, the
greater the consumer’s dissatisfaction
• Cognitive dissonance is the
discomfort caused by a postpurchase
conflict
Post purchase
Decision
Post
purchase
behavior
●Post purchase
behavior
●Post purchase
satisfaction
●Post purchase actions
●Post purchase uses
and disposal
Figure 6.7
Customer
Product
Use/Disposal

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Analyzing Consumer Market CH 6 MKT MGT.pptx.pdf

  • 2. What Influences Consumer Behavior? ●Consumer behavior ●The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants ●Influenced by cultural, social, and personal factors
  • 5. Cultural factors ● Culture is the fundamental determinant of a person’s wants and behavior. ● Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religions, racial groups, and geographic regions.When subcultures grow large and affluent enough, companies often design specialized marketing programs to serve them ● Virtually all human societies exhibit social stratification, most often in the form of social classes, relatively homogeneous and enduring divisions in a society, hierarchically ordered and with members who share similar values, interests, and behavior. One classic depiction of social classes in the United States defined seven ascending levels: (1) lower lowers, (2) upper lowers, (3) working class, (4) middle class, (5) upper middles, (6) lower uppers, and (7) upper uppers. Social class members show distinct product and brand preferences in many areas
  • 6. Social Factors ●Reference Groups A person’s reference groups are all the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior. ● Groups having a direct influence are called membership groups. ●Some of these are primary groups with whom the person interacts fairly continuously and informally, such as family, friends, neighbors, and coworkers. ●People also belong to secondary groups, such as religious, professional, and trade-union groups, which tend to be more formal and require less continuous interaction.
  • 7. Reference groups influence members in at least three ways ●.People are also influenced by groups to which they do not belong. Aspirational groups are those a person hopes to join; ●dissociative groups are those whose values or behavior an individual rejects. ●Where reference group influence is strong, marketers must determine how to reach and influence the group’s opinion leaders. ● An opinion leader is the person who offers informal advice or information about a specific product or product category, such as which of several brands is best or how a particular product may be used
  • 8.
  • 9. Social Factors ●Cliques Communication researchers propose a social-structure view of interpersonal communication. ●They see society as consisting of cliques, small groups whose members interact frequently. Clique members are similar, and their closeness facilitates effective communication but also insulates the clique from new ideas. ●The challenge is to create more openness so cliques exchange information with others in society.This openness is helped along by people who function as liaisons and connect two or more cliques without belonging to either and by bridges, people who belong to one clique and are linked to a person in another.
  • 11. FAMILY ●There are two families in the buyer’s life.The family of orientation consists of parents and siblings. From parents a person acquires an orientation toward religion, politics, and economics and a sense of personal ambition, self-worth, and love. ●A more direct influence on everyday buying behavior is the family of procreation—namely, the person’s spouse.The wife has usually acted as the family’s main purchasing agent, especially for food, sundries, and staple clothing items. Now traditional purchasing roles are changing, and marketers would be wise to see both men and women as possible targets
  • 12. Personal factor ●Age/stage in life cycle ●Occupation and economic circumstances ●Personality and self-concept ●Lifestyle and values
  • 13. Characteristic s Affecting Consumer Behavior ● Age and life-cycle stage ● Youth: younger than 18 ● Getting started: 18–35 ● Builders: 35–50 ● Accumulators: 50–60 ● Preservers: over 60 Personal Factors
  • 14. Characteri stics Affecting Consumer Behavior Occupation affects the goods and services bought by consumers Economic situation includes trends in: Personal Factors Personal income Savings Interest rates
  • 15. Lifestyle is a person’s pattern of living as expressed in his or her psychographics ●Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment Personal Factors Characteristics Affecting Consumer Behavior
  • 16. ● Personality and self-concept ● Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment Personal Factors Characteristics Affecting Consumer Behavior
  • 18. Motivation Freud’s Theory Behavior is guided by subconscio us motivations Maslow’s Hierarchy of Needs Behavior is driven by lowest, unmet need Herzberg’s Two-Factor Theory Behavior is guided by dissatisfiers and satisfiers
  • 19. Freud’s Theory ● Freudian theory postulates that adult personality is made up of three aspects: (1) the id, operating on the pleasure principle generally within the unconscious; (2) the ego, operating on the reality principle within the conscious realm; and (3) the superego, operating on the morality principle at all levels of consciousness.
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  • 23. Perception ●The process by which we select, organize, and interpret information inputs to create a meaningful picture of the world
  • 25. PERCEPTION Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 25 Psychological Factors Selective attention is the tendency for people to screen out most of the information to which they are exposed Selective distortion is the tendency for people to interpret information in a way that will support what they already believe Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands Subliminal perception is the perception of a series of stimulus which the person is not consciously aware of and gets under the
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  • 29. Key Psychological Processes ●Learning ●Induces changes in our behavior arising from experience ●Drive and cues ●Generalization and discrimination
  • 31. Key Psychological Processes ●Memory ●Short-term vs. long-term memory ●Associative network memory model ●Brand associations ●Memory encoding ●Memory retrieval
  • 33. The Buying Decision Process ●The consumer typically passes through five stages ●Problem recognition ●Information search ●Evaluation of alternatives ●Purchase decision ●Post purchase behavior
  • 34. The Buyer Decision Process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 34 • Occurs when the buyer recognizes a problem or need triggered by: – Internal stimuli: when one of the person’s normal needs—for example, hunger or thirst—rises to a level high enough to become a drive – External stimuli: an advertisement or a discussion with a friend might get you thinking about buying a new car Need Recognition
  • 35. The Buyer Decision Process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 35 • Personal sources—family and friends • Commercial sources—advertising, Internet • Public sources—mass media, consumer organizations • Experiential sources—handling, examining, using the product Sources of Information
  • 36. Figure 6.5 Sets Involved In Decision Making
  • 37. The Buyer Decision Process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 37 • How the consumer processes information to arrive at brand choices Evaluation of Alternatives
  • 39. ●Suppose Linda has narrowed her choice set to four laptops (A, B, C, and D). Assume she’s interested in four attributes: memory capacity, graphics capability, size and weight, and price.Table 6.3 shows her beliefs about how each brand rates on the four attributes. If one computer dominated the others on all the criteria, we could predict that Linda would choose it. But, as is often the case, her choice set consists of brands that vary in their appeal. If Linda wants the best memory capacity, she should buy C; if she wants the best graphics capability, she should buy A; and so on. ●Suppose she assigned 40 percent of the importance to the laptop’s memory capacity, 30 percent to graphics capability, 20 percent to size and weight, and 10 percent to price. ●the expectancy-value model, we multiply her weights by her beliefs about each computer’s attributes.This computation leads to the following perceived values:
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  • 41. The expectancy-value model is a compensatory model, in that perceived good things about a product can help to overcome perceived bad things. But consumers often take “mental shortcuts” called heuristics or rules of thumb in the decision process.With no compensatory models of consumer choice, positive and negative attribute considerations don’t necessarily net out. Evaluating attributes in isolation makes decision making easier for a consumer, but it also increases the likelihood that she would have made a different choice if she had deliberated in greater detail.We highlight three choice heuristics here. Purchase decision Compensatory vs. no compensatory models
  • 43. Purchase decision Compensatory vs. no compensatory models ●1. Using the conjunctive heuristic, the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes. For example, if Linda decided all attributes had to rate at least 5, she would choose laptop B. ● 2.With the lexicographic heuristic, the consumer chooses the best brand on the basis of its perceived most important attribute.With this decision rule, Linda would choose laptop C. ●3. Using the elimination-by-aspects heuristic, the consumer compares brands on an attribute selected probabilistically—where the probability of choosing an attribute is positively related to its importance—and eliminates brands that do not meet minimum acceptable cutoffs.
  • 45. 1. attitudes of others ●The first factor is the attitudes of others.The influence on us of another person’s attitude depends on two things: (1) the intensity of the other person’s negative attitude toward our preferred alternative and (2) our motivation to comply with the other person’s wishes.
  • 46. 2. Types of perceived risk Functional risk Physical risk Financial risk Social risk Psychological risk Time risk
  • 47. 2. Other situational factors ●1. Functional risk—The product does not perform to expectations. ●2. Physical risk—The product poses a threat to the physical well-being or health of the user or others. ●3. Financial risk—The product is not worth the price paid. ●4. Social risk—The product results in embarrassment in front of others. ● 5. Psychological risk—The product affects the mental well-being of the user. ● 6.Time risk—The failure of the product results in an opportunity cost of finding another satisfactory product
  • 48. The Buyer Decision Process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 48 • The satisfaction or dissatisfaction that the consumer feels about the purchase • Relationship between: – Consumer’s expectations – Product’s perceived performance • The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction • Cognitive dissonance is the discomfort caused by a postpurchase conflict Post purchase Decision
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