Chapter 3

MARKETING INSIGHT

Submitted by:

Balindan, Mark Dredd

Bernales, Aaron

Saturninas, Janine

Pante, Aizel Kate

Submitted to:

Mrs. De Grano

MARKETING INSIGHT
Social Influences on Consumer decision making

In terms of consumer behavior, culture, social classes, and rrference group influences have
beeen related to purchase and consumption decisions. It should be noted that these influence
canhave both direct and indirect effects on the buying process.

Culture and Sub culture

Culture is one of the most basic influences on an individual's needs, wants, and behavior.
Cultural values are transmitted through 3 basic organization: the family religious organizations,
and educational institutions, and in today's society, educational institutions are playing an
increasing greater role in regard.

Social Class

Social classes develop on the basis of such things as wealth, skill, and power. For marketing
purposes, 4 different social classes have been identified.

 Upper Americans
 The Middle Class
 The working
 Lower Americans

Reference Groups and Families

Groups that an individual looks to when forming attitudes and opinions are described as
reference groups.

 Primary reference group - include family and close friends.

 Secondary reference group - include fraternal organizations and professional
associations.

A person normally has several reference groups or reference individuals for various subjects or
different decisions.

The family is generally recognized to be an important reference group and it has been
suggested that the household rather than the individual, is the relevant unit for studying
consumer behavior.

Marketing influences on Consumer decision making

Element of the marketing mix

Product influence - the physical appearance of the product, ackagong, and labeling
information.

Price influence - the price of the products and services often influences whether consumers
will purchase then at all.

Promotion influences - advertising, sales promotions, salespeople and publicity can influence
what consumers think about products.

Place influences - the marketer's strategy for distributing products can influence consumers in
several ways.

Situational influences on Consumer decision making

Situational influences cab be defined as all the factors particular to a time and place that have a
demonstrable and systematic effect on current behavior.

These Five Influences may be perceived either consciously or subconsciously:

 Physical Features - are the most readily apparent features of a situation.

 Social Features - provide additional depth to a description of a situation.
 Time - is a dimesion of a situations that may be specified in units ranging from time of
day to season of the year.
 Task Features - a situation include an intent or requirement to select, shop for, or obtain
information about a general or specific purchase.
 Current Conditions - make up a final feature that characterize a situation.

Phychological Influences on consumer Decision Making.

Two of the most important Psychological factors are:

1. Product knowledge - refers to the amount of information a consumer has stored in her or
his memory about particular product classes, product forms, brands, models, and ways to
purchase them.

2. Product Involvement - refers to a consumer's perception of the importance or personal

relevance of an item.

These are three types of decision making:

1. Extensive Decision Making

2. Limited Decision Making
3. Self - Actualization Needs
The Consumer Decision - Making Process.

1. Need Recognition
2. Alternative Search
3. Alternative Evaluation
4. Purchase Decision
5. Post purchase Evaluation

Marketers of products for which consumers usually do limited decision making often use eye-
cathing advertising and in store displays to make consumers aware of thier products.

Alternative Search

Once a need is recognized, the individual then seraches for alternatives for satisfying the
need.

Five basic sources for a Particular Purchase Decision.

1. Internal Sources- in most cases the individual has had some previous experience in dealing
with a particular need.
2. Group Sources- a common source of information for purchase decision comes from
communication with other people.
3. Marketing Sources – include such factors as advertising salespeople dealers packaging and
displays.
4. Public Sources – include publicity such as newspaper article about the product
5. Experiential Sources – experiential sources refer to handling, examining this actually
requires an actual shopping.

In general, Information processing is viewed as a four - step process in which the individual is

1.)Exposed to information,

2.) Becomes attentive to the information,

3.) Understands the information,

4.) Retains the information.

ALTERNATIVE EVALUATION

Consumer evaluates alternatives on the basis of what he or she had learned. One approarch to
describing the evaluation process is as follows:

1. the consumer has information about a number of brands in a product class.

2. the consumer perceives that at ,east some of the brands in a product class are viable
alternatives for satisfying a recognized need.
3. each of these brands has a set of attributes (color, quality, size and the like.)
4. a set of these attributes is relevant to the consumer, and the consumer perceives that
different brands vary in how much each attribute they possess.
5. the brand that is perceived as offering the greatest number of desired attributes in the desired
amount.
6. the brand the consumer likes best is the brand the consumer will intend to purchase

PURCHASE DECISION

If no other factors intervene after the consumer has decided on the brand that is intended for
purchase, the actual purchase is a common result of search and evaluation.

POST PURCHASE EVALUATION

In general, if the individual finds a certain response achieves a desired goal or satisfies a need,
the success of this cue-response pattern will be remembered.