6

Analyzing
Consumer Markets
 What Influences
Consumer Behavior?
Cultural
Cultural Factors
Factors

Social
Social Factors
Factors

Personal
Personal Factors
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
Nationalities

Religions
Religions

Racial
Racial groups
groups

Geographic
Geographic regions
regions
Social Classes

Upper uppers
Lower uppers
Upper middles
Middle class
Working class
Upper lowers
Lower lowers
 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)
• Class designation is mobile over time
 Social Factors

Reference
Family
groups

Social
Statuses
roles
 Reference Groups
Membership
Membership groups
groups

Primary
Primary groups
groups

Secondary
Secondary groups
groups

Aspirational
Aspirational groups
groups

Dissociative
Dissociative groups
groups
Roles and Status

What degree of status is

associated with various
occupational roles?
 Personal Factors

Age
Self- Life cycle
concept stage

Lifestyle Occupation

Values Wealth
Personality
The Family Life Cycle
Brand Personality

Sincerity
Sincerity

Excitement
Excitement

Competence
Competence

Sophistication
Sophistication

Ruggedness
Ruggedness
 Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained
 Table 6.2 LOHAS (Lifestyles of Health and
Sustainability) Market Segments
• 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 the lowest, motivating
motivations unmet need and hygiene
factors
Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
Perception

Selective Attention

Selective Retention

Selective Distortion

Subliminal Perception
Figure 6.3 State Farm Mental Map
Figure 6.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase
Behavior
Sources of Information

Personal Commercial

Public Experiential
Figure 6.5 Successive Sets Involved in
Consumer Decision Making
Figure 6.6 Stages between Evaluation of
Alternatives and Purchase
 Non-Compensatory Models of Choice

• Conjunctive
• Lexicographic
• Elimination-by-aspects
Perceived Risk
Functional
Functional

Physical
Physical

Financial
Financial

Social
Social

Psychological
Psychological

Time
Time
Figure 6.7 How Customers Use and Dispose of
Products
 Rural Consumer Behaviour
• Rural consumers are more brand loyal
• Restrictions on consumption
• Collective consumption behaviour: for family
rather than individual
• Seasonality of consumption based on
seasonality of agricultural production/income
• Specific patterns in the five-stage buying
decision process
 Other Theories of
Consumer Decision Making

Involvement Decision Heuristics

• Elaboration • Availability
Likelihood Model • Representativeness
• Low-involvement • Anchoring and
marketing adjustment
strategies
• Variety-seeking
buying behavior
 Mental Accounting

• Consumers tend to…

– Segregate gains
– Integrate losses
– Integrate smaller losses with larger gains
– Segregate small gains from large losses