1. ANALYZING CONSUMER MARKETS MARKETING STARTS WITH KNOWING ! Edgardo V. Basa Ateneo Graduate School of Business December 1, 2009

2. OUTLINE Consumer Behavior :The Challenge to understand The Whys define the buys The finger that triggers to buy. The anatomy of buying The process called Buying The rootword of buying : Influence Origins of buying judgments The details of buying What comes next : The behavior after buying What comes last : The behavior of using and disposing

3. Concept 1 CONSUMER BEHAVIOR: THE CHALLENGE TO UNDERSTAND KNOW HOW : CONSUMERS BUY, USE AND DISPOSE PRODUCTS DISCOVER HOW : MARKETERS REACH AND SERVE THEM EFFECTIVELY

6. Family

8. Occupation and economic circumstance

9. Personality and self concept

11. Clarify perceptions

12. Reinforce Learning

14. PERCEPTION

15. LEARNING

16. MEMORYCULTURAL INFLUENCE SOCIAL INFLUENCE PERSONAL INFLUENCE CONSUMER CHARACTERISTICS CONSUMER PSYCHOLOGY

17. Concept 3 UNDERSTAND THE FINGER What triggers the buyer to decide to buy ? Internal stimuli Needs reaching Threshold= Drive or ( Needs ) + External stimuli Arousing the need n

18. Concept 4 THE ANATOMY OF BUYING BUYING IS A PROCESS Consumer psychology and characteristic Marketing stimuli and environmental factors BUY !!

19. Problem Recognition Concept 5 THE PROCESS CALLED BUYING Evaluation of Alternatives Post purchase Behavior Information Search Purchase Decision

20. Concept 6 THE ROOT WORD OF BUYING: INFLUENCE Where does he get the information on what to buy ? Personal Family, friends, neighbors, acquaintances Commercial Adverising, web sites, salesmen, dealers, displays Public Mass media, consumer rating organizations Experiential Handling, using and examining the product

21. Concept 7 ORIGINS OF BUYING JUDGMENTS Beliefs THOUGHTS A PERSON HOLDS ABOUT SOMETHING Attitudes DISPOSITION ABOUT SOMETHING

22. Concept 8 THE DETAILS OF BUYING Buy the preferred brand Determine quantity to be purchased Determine the timing of purchase Payment method

23. Concept 9 WHAT COMES NEXT ? THE BEHAVIOR AFTER BUYING Post purchase Satisfaction Disappointed Delighted Satisfied

24. Concept 9 WHAT COMES NEXT ? THE BEHAVIOR AFTER BUYING Post purchase Actions Grape vine option Voice option “Spread the bad news ” “Spread the good news ” Exit option Re-entry options “Repeat buying” “Stop buying”

25. Concept 10 WHAT COMES LAST ? THE BEHAVIOR OF USING AND DESPOSING Get rid : temporarily Get rid: permanently Keep it

26. Consumer Behavior

27. CONCLUSION UNDERSTANDING YOUR CUSTOMERS PATTERN IN BUYINGUSING AND DISPOSING PRODUCTS WOULD GIVE US IDEAS ON HOW TO REACH AND SERVE THEM WELL. EXTERNAL AND INTERNAL FACTORS AFFECT BUYERS PURCHASING DECISIONS BUYING IS A PROCESS IT IS THE OBJECTIVE OF THE MARKETER TO UNDERSTAND : THE BUYERS “ PSYCHE ” IN BUYING THE EXTERNAL FACTORS THAT AFFECTS HIS DECISIONS THE PROCESS HE UNDERGOES IN BUYING AND HIS BEHAVIOR AFTER DOING SO. 5. UNDERSTAND AND LOVE YOUR CUSTOMERS !!!!