Analyzing Consumer Markets

Discussion Questions
1. How do consumer characteristics influence buying behavior? 2. What major psychological processes influence consumer responses to the marketing program? 3. How do consumers make purchasing decisions? 4. In what ways do consumers stray from a deliberative, rational decision process?

Consumer Behavior
The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs or wants.

Consumer Behavior
Personal Factors

Cultural Factors

Social Factors

Cultural Factors
Social Class

Culture

Subculture

Subculture
Nationalities Religions Racial Groups Geographic Regions

Social Class
Within a class, people tend to behave alike. Social class conveys

perceptions of inferior or
superior position.

Special Interest

Class may be indicated by a

cluster of variables (occupation, income, wealth, and education).

Social Factors
Reference Groups

Family

Role and Status

Reference Group
Membership Primary Secondary

Aspirational
Dissociative

Family
Family of Orientation

Religion
Politics Economics Family of Procreation Everyday Buying Behavior

Roles & Status

A role consists of the activities a person Is expected to perform. Each role in turn connotes a status. A Senior vice president of marketing may be seen as having more status than a sales manager. People choose products that reflect and communicate their role and their actual or desired status in society. Marketers must be aware of the status-symbol potential of products brands

Personal Factors
Personality

Age

Life Cycle Stage

Personal Factors
Occupation Values

Lifestyle
Economic situation

Psychological Factors

Motivation
Freud

Maslow

Herzberg

Maslows Hierarchy of Needs

Perception
Selective Attention

Selective Retention

Subliminal Perception

Selective Distortion

Learning
Driver
Cues

Discrimination

Emotions

Memory
Memory Processes

Mental Maps Encoding Retreival

Association Association Association Association Association

Brand Associations

Brand

Hypothetical State Farm Mental Map

The Buying Decision Process

Buying Decision Process

Problem Recognition
Im Hungry

Stimulus Internal External

Information Search
Commercial Public

Personal

Experiential

Successive Sets Involved in Consumer Decision Making

Evaluation of Alternatives
Beliefs

Attitudes

Expectancy-Value Model
Attribute
Memory Capacity
Model A B C D 8 7 10 5 9 7 4 3 6 7 3 8 9 7 2 5

Graphics Capacity

Size and Weight

Price

Model A = 0.4 (8) + 0.3(9) + 0.2(6) + 0.1(9) Model B = 0.4 (7) + 0.3(7) + 0.2(7) + 0.1(7) Model C = 0.4(10) + 0.3(4) + 0.2(3) + 0.1(2) Model D = 0.4 (5) + 0.3(3) + 0.2(8) + 0.1(5)

= = = =

8.0 7.0 6.0 8.0

Steps between Evaluation of Alternatives and Purchase Decision

Purchase Decision
Noncompensatory Models
Choice Heuristics: Conjective Lexicographic Elimination-by-aspect
Brand Dealer

Purchase subdecisions

Quantity Timing

Payment method

Postpurchase Behavior
Postpurchase Satisfaction
Satisfied Dissatisfied

Delighted

Loyal Stay or Go

Defect

Postpurchase Actions

How Customers Use or Dispose of Products

Moderating Effects
Low-involvement

Variety seeking

Behavioral Decision Theory

Decision Framing

Decision Heuristics