The document analyzes factors that influence consumer behavior such as cultural, social, and personal factors. It also examines psychological processes like motivation, perception, learning, and memory that shape consumer responses. Finally, it discusses how consumers make purchasing decisions through problem recognition, information search, evaluation of alternatives, and the post-purchase experience.

1. Analyzing
Consumer Markets

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 used
steeljunction® to
encourage
consumers to go
steel shopping
and to develop
deeper
understanding of
individual and
household
customers.

4. Figure 6.1
Model of Consumer Behavior

5. What Influences
Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors

6. What is Culture?
Culture is the fundamental determinant of
a person’s wants and behaviors acquired
through socialization processes with family
and other key institutions.

7. Subcultures
Nationalities
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 Factors
Reference
Family
groups
Social
Statuses
roles

11. Reference Groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups

12. Provogue uses teenage icons as
brand ambassadors and a youth
targeted 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 cycle
concept stage
Lifestyle Occupation
Values Wealth
Personality

16. The Family Life Cycle

17. Brand Personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness

18. Lifestyle Influences
Multi-tasking
Time-starved
Money-constrained

19. Faysal Bank of
Pakistan has
extended
banking hours
for time-
pressed
executives.

20. Table 6.2 LOHAS (Lifestyles of
Health and Sustainability) Market
Segments
• Sustainable Economy
• Healthy Lifestyles
• Ecological Lifestyles
• Alternative Health Care
• Personal Development

21. Key Psychological Processes
Motivation Perception
Learning Memory

22. Motivation
Maslow’s Herzberg’s
Freud’s Hierarchy Two-Factor
Theory of Needs Theory
Behavior Behavior Behavior is
is guided by is driven by guided by
subconscious the lowest, motivating
motivations unmet need and hygiene
factors

23. Maslow’s Hierarchy of Needs

24. Herzberg’s Two-Factor Theory

25. Perception
Selective Attention
Selective Retention
Selective Distortion
Subliminal Perception

26. Figure 6.3 State Farm Mental
Map

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 Sets
Involved in Consumer Decision
Making

31. Table 6.8 Sales and Product
Life Cycle

32. Figure 6.6 Stages between
Evaluation of Alternatives and
Purchase

33. Non-Compensatory Models of
Choice
• Conjunctive
• Lexicographic
• Elimination-by-aspects

34. Perceived Risk
Functional
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 Making
Involvement 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.
or
2. Targeting minorities is a sound
business practice.

40. Marketing Discussion
 Do you have rules you employ in
spending money?
 Do you follow Thaler’s four principles
in reacting to gains and losses?