fajardo analyzing consumer markets

Analyzing Consumer Markets

Connecting with Customers

Paul Vincent D Fajardo, DVMV49 Marketing Management

May 2010

Outline

• Definition• How does consumer characteristics influence buying behavior? • How do consumers make purchasing decisions?• Summary

Consumer behavior

Is the study of how individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas, experiences to satisfy their needs and wants

Concept 1:Consumer’s buying behavior is influenced by Cultural Factor

Culture is the fundamental determinant of a person’s wants

andbehavior

5

Concept 1: Consumer’s buying behavior is influenced by Cultural Factor

Kotler: Quinceanera

Local : Mc Donald’s

RP Medical Application:-Herbal Medicine

Concept 2:Social factors affect buying behavior

Primary groups: Family

Secondary groups: Religious

Opinion Leader

Concept 2: Social factors affect buying behavior

Kotler: General Motorsteam up w/ Mc Donald’sHappy Meals

Local : Ironman team up w/ Jollibee

RP Medical Application:Century Tuna Health and Wellness

Concept 3:Buyer’s decision are influenced by personal characteristics

Age and Stage In Life Cycle

Personality and Self-concept

Occupation & Economic Circumstances

Lifestyle and Values

Concept 3: Buyer’s decision are influenced by personal characteristics

Kotler:

Local :

RP Medical Application:-Calayan Medical

Concept 4:Motivation is the vigor which we pursue the goal

• Needs:

•Biogenic: Food, water, shelter

• Psychogenic : Recognition, esteem belonging

Concept 4:

Motivation is the vigor which we pursue the goal

Kotler: Chrysler PT Cruiser

Local : Vista Land

RP Medical Application:-Organization/Associations

Concept 5:Perception affects consumer behavior

• Perception is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world

•3 Perceptual process:

•Selective attention

•Selective distortion

•Selective retention

Concept 5: Perception affects consumer behavior

Kotler: Coors Co. changed label from “Banquet beer” to “Original Draft”

Local : Coke to Coke Zero

RP Medical Application:

Alaxan vs Alaxan FR

Concept 6:Buying Decision Process

• Problem Recognition

• Information Search

• Evaluation of Alternatives

• Purchase Decision

• Post purchase behavior

Concept 6:Problem Recognition

Kotler: Neighbor’s new car

Local : Buy a better car

RP Medical Application:-Executive Health Check

Buyer recognizes a need

Concept 7:Information Search

Heightened attention

Active information search

Concept 7: Information Search

Kotler: Doctors learn new info but still consults on fellow Physicians.

Local : Wheatgrass

RP Medical Application:-Wheatgrass

-Controversial. Not yet substantiated by medical research.

Concept 8:Evaluation of Alternatives

Consumer :• Trying to satisfy a need•Looking for certain benefits from the product solution•Will pay the most attention to attributes that deliver the sought-after benefits.

Concept 8: Evaluation of Alternatives

Kotler: Hotel- Location, cleanliness,atmosphere, price

Local : Vacation promos/packages

RP Medical Application:Health packages

Concept 9:Purchase decision

Consumer :• form an intention to buy the most powerful brand.

•The attitudes of others can intervene between purchase intention and purchase decision.•The unanticipated situational factors may erupt to change the purchase intention.

Concept 9:Purchase decision

Kotler: Intel inside processor logo.

Local :San MiguelBeer

RP Medical Application:

Concept 10:Post purchase behavior

Postpurchase satisfaction

Satisfaction is a function of the closeness between EXPECTATION and the product’s perceived PERFORMANCE.

Satisfied

Disappointed

Delighted

Concept 10:Post purchase behavior

Kotler: Oral B Toothbrush Indicator

Local: Customer satisfaction surveys

RP Medical Application: Cosmetic Surgery

Summary:Understanding the factors (Cultural, Social & Personal) that influence

can provide marketers with clues to reach and serve consumers effectively

Analyzing Consumer Markets

Connecting with Customers

Paul Vincent D Fajardo, DVMV49 Marketing Management

May 2010