MARKETING MANAGEMENT

Analyzing Consumer Markets

Vimi Jham, Institute of Management Technology, Ghaziabad

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?
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Emerging Trends in Consumer Behavior

Straight urban man who enjoys shopping and using grooming products

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What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors

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Culture

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 Special interests
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Social Classes

Upper uppers Lower uppers Upper middles Middle class Upper lowers Lower lowers
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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

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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 Dissociative groups
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Family
Family of Orientation Religion Politics Economics Family of Procreation Everyday buying behavior

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Roles and Statuses

What degree of status is associated with various occupational roles?

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Personal Factors
Age
Selfconcept Lifestyle Values Personality Life cycle stage

Occupation
Wealth

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Behavior changes according to life cycle stage Family Psychological Critical life events

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PERSONALITY

SET OF DISTINGUISHING HUMAN PSYCHOLOGICAL TRAITS THAT LEAD TO RELATIVELY CONSISTENT AND ENDURING RESPONSES TO ENVIRONMENTAL STIMULI

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Brand Personality
Sincerity
Excitement Competence

Sophistication
Ruggedness
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Lifestyle Influences

Multi-tasking

Time-starved
Money-constrained

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Model of Consumer Behavior

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Key Psychological Processes

Motivation

Perception

Learning

Memory

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Motivation
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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Freuds Theory Behavior is guided by subconscious motivations

Maslows Hierarchy of Needs

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Perception
Selective Attention

Selective Retention
Selective Distortion Subliminal Perception
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Consumer Buying Process

Problem Recognition Information Search Evaluation Purchase Decision Post purchase Behavior
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Sources of Information

Personal

Commercial

Public

Experiential

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Successive Sets

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Stages between Evaluation of Alternatives and Purchase

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Non-compensatory Models of Choice

Conjunctive: Consumer sets a minimum acceptable cutoff level for each attribute . Lexicographic: consumer chooses the best brand. Elimination-by-aspects : consumer compares brands and chooses an attribute positively related to its importance.

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Perceived Risk
Functional Physical Financial Social

Psychological
Time
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How Customers Use and Dispose of Products

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Other Theories of Consumer Decision Making

Involvement Elaboration Likelihood Model (rational) Low-involvement marketing strategies( peripheral route) Variety-seeking buying behavior( different brands)

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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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