Cultural factors exert the broadest influence on consumer behavior. Motivation is a key psychological process that has direction and intensity. Consumers are influenced by reference groups they belong to as well as groups they aspire to or dissociate from. Marketers learn about the consumer decision process through retrospective methods like surveying recent customers about their purchase experiences.

1. TOP 10 Learning Questions forChapter 6Analyzing Consumer MarketsGrace Sumera24 September 2010

2. 1. ____ factors exert the broadest and deepest influence on consumer behavior.EconomicPersonalCulturalSocialDemographic2

3. Factors Affecting Consumer Behavior3CultureSocialPersonalPsychologicalBuyer

4. Factors Affecting Consumer BehaviorA consumer’s buying behaviour is influenced by cultural, social, and personal factors. Cultural factors exert the broadest and deepest influence.Culture is the fundamental determinant of a person’s wants and behaviour.4

5. 1. ____ factors exert the broadest and deepest influence on consumer behavior.EconomicPersonalCulturalSocialDemographic5

6. 2. ___ is a key psychological process that has both direction and intensity.MotivationPerceptionLearningMemorySensation6

7. Key Psychological Processes7

8. Motivation84 key psychological processes – motivation, perception, learning, & memory – fundamentally influence consumer responses.Motivation has both direction – we select one goal over another – & intensity – the vigor with which we pursue the goal.

9. 2. ___ is a key psychological process that has both direction and intensity.MotivationPerceptionLearningMemorySensation9

10. 3. The following are major information sources to which consumers turn to EXCEPTExperientialCommercial PublicExternalPersonal10

11. Major Information Sources11

12. Major Information Sources12

13. 3. The following are major information sources to which consumers turn to EXCEPTExperientialCommercial PublicExternalPersonal13

14. 4. Buyer’s decisions are influenced by personal characteristics EXCEPTNationalityAge & Stage in the Life CycleOccupation & Economic CircumstancesPersonalityLifestyle14

15. Personal Factors15

16. Nationality is a Cultural Factor!16SUBCULTURES

17. 4. Buyer’s decisions are influenced by personal characteristics EXCEPTNationalityAge & Stage in the Life CycleOccupation & Economic CircumstancesPersonalityLifestyle17

18. 5. Which of the following is true?Groups having either face-to-face or indirect influence to consumer behavior are called membership groups. People are influenced by groups to which they do not belong.Reference groups are groups having direct influence on consumer behavior.Dissociative groups do not influence consumer behavior.Friends are considered secondary groups while family is a primary group.18

19. Social Factors19Reference Groups

20. Social FactorsSocial factors such as reference groups affect consumer behaviour.Reference groups have either direct (face-to-face) or indirect influence.Groups having direct influence are called membership groups.Primary groups are groups with whom a person interacts fairly continuously and informally, such as family & friends.People are also influenced by groups to which they do not belong, such as aspirational & dissociative groups.20

21. 5. Which of the following is true?Groups having either face-to-face or indirect influence to consumer behavior are called membership groups. People are influenced by groups to which they do not belong.Reference groups are groups having direct influence on consumer behavior.Dissociative groups do not influence consumer behavior.Friends are considered secondary groups while family is a primary group.21

22. 6. Which of the following statements is false?The buying decision process is a five-stage model. The model starts with problem recognition & ends with the purchase decision. The buying process starts long before the actual purchase. Consumers don’t always pass through all 5 stages in buying a product. The attitude of others & unanticipated situations may intervene with the purchase decision.22

23. Consumer Buying Process23

24. Consumer Buying ProcessThe Buying Process does not end with the purchase. Marketers monitor the buyer’s feelings or behavior towards the product or service after the purchase. Marketers are concerned about post-purchase satisfaction, actions (repurchase or abandonment), & disposal (rent, lend, or store).24

25. 6. Which of the following statements is false?The buying decision process is a five-stage model. The model starts with problem recognition & ends with the purchase decision. The buying process starts long before the actual purchase. Consumers don’t always pass through all 5 stages in buying a product. The attitude of others & unanticipated situations may intervene with the purchase decision.25

26. 7. MTV appears to have a brand personality ofCompetenceExcitementRuggednessSinceritySophistication26

27. Brand Personalities27Brand Personality is the specific mix of human traits that we can attribute to a particular brand.

28. Brand Personalities caters to the young generation who’s interested in the latest music, fashion, videos, concerts, events, movies, etc. It is a total expression of youth, individuality, and breaking conventions. It exudes a daring, spirited, imaginative, and up-to-date personality – Excitement.28

29. 7. MTV suggests to having a brand personality ofCompetenceExcitementRuggednessSecuritySophistication29

30. 8. Highly Price-sensitive people deciding to purchase the cheapest brand is an example of this purchase strategyConjunctive heuristic Elimination-by-aspects heuristic Lexicographic heuristic Availability heuristic Representative heuristic30

31. Purchase DecisionHeuristics are rules of thumb or mental shortcuts in the decision process.31

32. HeuristicsConjunctive heuristic – consumer chooses the 1st alternative that meets the minimum standard for all attributes.Lexicographic heuristic – consumer chooses the best brand on the basis of its perceived most important attribute.Elimination-by-aspects heuristic – consumer compares brands & eliminates brands that do not meet minimum acceptable cut-offs.32

33. 8. Highly Price-sensitive people deciding to purchase the cheapest brand is an example ofConjunctive heuristic Elimination-by-aspects heuristicLexicographic heuristic Availability heuristic Representative heuristic33

34. 9. A Filipina who recently postponed her trip to HK was influenced by this type of riskPsychological Risk Physical Risk Financial Risk Social Risk All of the above34

35. Perceived Risks35A consumer’s decision to modify, postpone, or avoid a purchase is heavily influenced by perceived risks.

36. Perceived RisksDue to the recent hostage incident, Filipinos may cancel their trip to HK because of perceived risks:Functional Risk – the product may not perform up to expectationsPhysical Risk – the product poses a threat to the physical well-being of the user/othersFinancial Risk – the product is not worth the price paidSocial Risk – the product results in embarrassment from othersPsychological Risk – the product affects the mental well-being of the userTime Risk – wasted time in finding a new product in case of product failure36

37. 9. A Filipina who recently postponed her trip to HK was influenced by this type of riskPsychological Risk Physical Risk Financial Risk Social RiskAll of the above37

38. 10. Marketers who learn about the buying process for their service by conducting surveys on recent diners in their restaurant display an example of this customer profiling methodProspective Method Prescriptive Method Retrospective Method Introspective Method Scientific Method38

39. Profiling the Customer Buying-Decision ProcessMarketers learn about the stages in the buying process for their product through:Introspective MethodRetrospective MethodProspective MethodPrescriptive Method39

40. Profiling the Customer Buying-Decision ProcessInterviewing a small number of recent purchasers, asking them to recall the events leading to their purchase is the retrospective method.40

41. 10. Marketers who learn about the buying process for their service by conducting surveys on recent diners in their restaurant display an example of this customer profiling methodProspective Method Prescriptive MethodRetrospective Method Introspective Method Scientific Method41

42. TOP 10 Learning Questions forAnalyzing Consumer MarketsChapter 6Grace Sumera24 September 2010