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6

Analyzing Consumer Markets

Marketing Management
Canadian Fourteenth Edition
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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? In what ways do consumers stray from a deliberate rational decision process?
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Consumer Behaviour
Consumer behavior is 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. Marketers must fully understand both the theory and reality of consumer behavior.

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What Influences Consumer Behavior?


Cultural Factors

Social Factors

Personal Factors

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

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Subcultures
Nationalities Religions Racial groups Geographic regions

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Social Classes
Upper uppers Lower uppers Upper middles Middle Working Upper lowers Lower lowers
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Social Factors
Reference groups Family Social roles Statuses

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Reference Groups
Membership groups Primary groups Secondary groups Aspirational groups Disassociative groups

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Family
The family of orientation consists of parents and siblings. A more direct influence on everyday buying behavior is the family of procreation namely, the persons spouse and children.

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Personal Factors

Age Life cycle stage Occupation Wealth

Personality Values Lifestyle Self-concept

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Age and Stage in the Life Cycle


Our taste in food, clothes, furniture, and recreation is often related to our age. Consumption is also shaped by the family life cycle and the number, age, and gender of people in the household at any point in time. Adults experience certain passages or transformations as they go through life.

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Occupation and Economic Circumstances


Occupation also influences consumption patterns. As the recent recession clearly indicated, both product and brand choice are greatly affected by economic circumstances:
spendable income (level, stability, and time pattern), savings and assets (including the percentage that is liquid), debts, borrowing power, and attitudes toward spending and saving.
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Personality and Brand Personality


Personality - a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli (including buying behaviour). Brand personality - the specific mix of human traits that we can attribute to a particular brand.

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Brand Personality
Sincerity Excitement Competence Sophistication Ruggedness

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Self Concept
Consumers often choose and use brands with a brand personality consistent with their actual self-concept (how we view ourselves), although the match may instead be based on the consumers ideal self-concept (how we would like to view ourselves) or even on others self-concept (how we think others see us).

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Lifestyle and Values


A lifestyle is a persons pattern of living in the world as expressed in activities, interests, and opinions.
Marketers search for relationships between their products and lifestyle groups.

Core values are the belief systems that underlie attitudes and behaviours.
Marketers who target consumers on the basis of their values believe that with appeals to peoples inner selves, it is possible to influence their outer selvestheir purchase behaviour.
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Table 6.2 LOHAS Market Segments

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Figure 6.1 Model of Consumer Behavior

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Motivation
Freuds Theory Behavior is guided by subconscious motivations Maslows Hierarchy of Needs Behavior is driven by lowest, unmet need Herzbergs Two-Factor Theory Behavior is guided by motivating and hygiene factors

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Figure 6.2 Maslows Hierarchy of Needs

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Perception
Selective attention Selective retention Selective distortion Subliminal perception

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Learning
Learning induces changes in our behavior arising from experience. A drive is a strong internal stimulus impelling action. Cues are minor stimuli that determine when, where, and how a person responds. Discrimination means we have learned to recognize differences in sets of similar stimuli and can adjust our responses accordingly.
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Emotions
Consumer response is not all cognitive and rational; much may be emotional and invoke different kinds of feelings. A brand or product may make a consumer feel proud, excited, or confident. An ad may create feelings of amusement, disgust, or wonder.

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Memory
Cognitive psychologists distinguish between short-term memory (STM)a temporary and limited repository of informationand long-term memory (LTM)a more permanent, essentially unlimited repository.

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Memory Processes
Memory encoding describes how and where information gets into memory. Memory retrieval is the way information gets out of memory.

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Figure 6.3 Hypothetical Dole Mental Map

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Figure 6.4 Five- Stage Model of the Consumer Buying Process


Problem Recognition Information Search Evaluation of alternatives Purchase Decision Postpurchase Behavior

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Sources of Information
Personal Public Commercial Experiential

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Figure 6.5 Successive Sets in Decision Making

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Table 6.4 A Consumers Brand Beliefs about Laptop Computers

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Figure 6.6 Steps Between Alternative Evaluation & Purchase

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Non-Compensatory Models of Choice


Conjunctive Lexicographic Elimination-by-aspects

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Perceived Risk
Functional Physical Financial Social Psychological Time

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Figure 6.7 How Customers Use or Dispose of Products

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Moderating Effects on Consumer Decision Making


The manner or path by which a consumer moves through the decision-making stages depends on several factors, including the level of involvement and extent of variety seeking.

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Decision Heuristics
Availability Representativeness Anchoring and adjustment

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Framing
Decision framing is the manner in which choices are presented to and seen by a decision maker.

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Mental Accounting
Consumers tend to
Segregate gains Integrate losses Integrate smaller losses with larger gains Segregate small gains from large losses

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