Marketing Management

. Analyzing Consumer markets

11th Dec, 2020

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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?
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
Upper uppers

Lower uppers

Upper middles

Middle

Working

Upper lowers

Lower lowers
Social Factors
Reference groups

Family

Social roles

Statuses
Reference Groups
• Membership groups
• Primary groups
• Secondary groups
• Aspirational groups
• Disassociative groups
Family Distinctions
Affecting Buying Decisions

• Family of Orientation
• Family of Procreation
Personal Factors
• Age • Personality
• Life cycle stage • Values
• Occupation • Lifestyle
• Wealth • Self-concept
Brand Personality
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness
 Table 6.2 LOHAS Market Segments
(Lifestyles of
Health and Sustainability)

• Sustainable Economy
• Healthy Lifestyles
• Ecological Lifestyles
• Alternative Health Care
• Personal Development
Figure 6.1 Model of
Consumer Behavior
Key Psychological Processes
• Motivation
• Perception
• Learning
• Memory
Motivation
Maslow’s Herzberg’s
Freud’s Hierarchy Two-Factor
Theory of Needs Theory

Behavior Behavior Behavior is

is guided by is driven by guided by
subconscious lowest, motivating
motivations unmet need and hygiene
factors
Maslow’s Hierarchy
Perception
• Selective attention
• Selective retention
• Selective distortion
• Subliminal perception
Learning

• Drivers

• Triggers

• Discrimination
Emotions
Memory
Figure 6.3 State Farm Mental Map
Figure 6.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation of alternatives

Purchase Decision

Postpurchase Behavior
Sources of Information

Personal Commercial

Public Experiential
Figure 6.4 Successive Sets in Decision Making
Figure 6.5 Steps Between Alternative
Evaluation
and Purchase
Non-Compensatory Models of Choice

• Conjunctive
• Lexicographic
• Elimination-by-aspects
Perceived Risk
• Functional
• Physical
• Financial
• Social
• Psychological
• Time
Other Theories of
Consumer Decision Making

Involvement Decision Heuristics

• Elaboration • Availability
Likelihood Model • Representativeness
• Low-involvement • Anchoring and
marketing strategies adjustment
• Variety-seeking
buying behavior
Figure 6.6 How Customers
Use or Dispose of Products
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?
 THANK YOU!

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