ANALYZING CONSUMER

MARKETS

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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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Socioeconomic Classification (SEC) Matrix

India (Urban)

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SEC MatrixIndia (Rural)

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Socioeconomic Class-wise
Distribution of Households (%)

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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, and education).
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
Primary
Secondary
Aspirational
Dissociative

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Personal Factors

Age
Life cycle stage
Occupation
Wealth

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Personality
Values
Lifestyle
Self-concept

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Key Psychological Processes

Motivation
Perception
Learning
Memory

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Consumer Buying Decision Process

Understand

Buying roles
Buying behavior
Buying decision
process

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Initiator
Influencer
Decider
Buyer
User

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Consumer Buying Decision Process

Understand

Buying roles
Buying behavior
Buying decision
process

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Complex buying behavior

Dissonance-reducing
buying behavior
Habitual buying behavior
Variety-seeking buying
behavior

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Four Types of Buying Behavior

High Involvement

Low Involvement

Significant Differences
between Brands

Complex buying
behavior

Variety-seeking
buying behavior

Few Differences between

Brands

Dissonance-reducing
buying behavior

Habitual buying
behavior

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Consumer Buying Decision Process

Understand

Buying roles
Buying behavior
Buying decision
process

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Five stages in the

consumer buying
process
The amount of time
spent in each stage
varies according to
several factors
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Consumer Buying Decision Process

Five-Stage Model of the Consumer Buying Process

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Consumer Buying Decision Process

Post-purchase Behavior:

Consumers expectations are compared to

performance
Post-purchase satisfaction influences future
behavior

Purchasing behavior
Word-of-mouth communications

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