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5Analyzing Consumer Markets
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?
Hariyali Kisaan Bazaar: Connecting with Customers
Consumer Behavior
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.
What Influences Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors
What Is Culture?
Culture is the fundamental determinant of a person’s wants and behaviors acquired
through socialization processes with family and other key institutions.
Subcultures
Nationalities Religions Racial groups Geographic regions
Social Classes
A1
A2
B1
B2
C
D
E1
E2
Social Factors
Reference groups
Family
Social roles
Statuses
Reference Groups
Membership groups Primary groups Secondary groups Aspirational groups Disassociative groups
Family
Family of orientation: parents and siblings Family of procreation: spouse and children
Personal Factors
Age Life cycle stage Occupation Wealth
Personality Values Lifestyle Self-concept
Age and Stage of Lifecycle
Occupation and Economic CircumstancesMarketers try to identify the occupational groups that have above-average interest in their products and services. Product and brand choice are also affected by economic circumstances—spendable income, savings and assets, debts, borrowing power, and attitudes toward spending and saving—to a great extent.
Personality
Personality refers to a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. Personality can be a useful variable in analyzing consumer brand choices.
Brand Personality
Sincerity Excitement Competence Sophistication Ruggedness
Lifestyle and Values
Figure 5.1 Model of Consumer Behavior
Motivation
Freud’sTheory
Behavioris guided by subconsciousmotivations
Maslow’sHierarchyof Needs
Behavioris driven by
lowest, unmet need
Herzberg’sTwo-Factor
Theory
Behavior isguided by motivating
and hygienefactors
Maslow’s Hierarchy
Source: A. H. Maslow, Motivation and Personality, 3rd ed. (Upper Saddle River, NJ: Prentice Hall, 1987). Printed and electronically reproduced by permission of Pearson Education, Inc., Upper Saddle River, NJ.
Perception
Selective attention Selective retention Selective distortion Subliminal perception
Learning
Drive: A strong internal stimulus impelling action Cue: Minor stimuli that determine when, where, and how a person responds Discrimination: Learning to recognize differences in sets of similar stimuli and adjusting our responses accordingly
Emotions
Memory
Short term memory Long term memory
Figure 5.3 Hypothetical LIC Mental Map
Figure 5.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior
Sources of Information
CommercialPersonal
Public Experiential
Figure 5.5 Successive Sets in Decision Making
Table 5.3 A Consumer’s Brand Beliefs about Laptop Computers
Figure 5.6 Steps Between Alternative Evaluation and Purchase
Non-Compensatory Models of Choice
Conjunctive Lexicographic Elimination-by-aspects
Perceived Risk
Functional Physical Financial Social Psychological Time
Figure 5.7 How Customers Use or Dispose of Products
Source: Jacob Jacoby, et al., “What about Disposition?” Journal of Marketing (July 1977), p. 23. Reprinted with permission from the Journal of Marketing, published by the American Marketing Association.
Low-Involvement Decision Making
Elaboration Likelihood Model Central Route Peripheral route
Decision Heuristics
Availability Representativeness Anchoring and adjustment
Framing
Choice architecture Nudge
Mental Accounting
Consumers tend to: Segregate gains Integrate losses Integrate smaller losses with larger gains Segregate small gains from large losses
For Review
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?