ANALYSING

CONSUMER
MARKETS

MEMBERS:
JOHN RAY EGUALAN
ERL DENVER LAROSCAIN
NAD NAD NUNEZ
 OBJECTIVES

• Describe how the consumer makes

a purchasing decision.
• Determine how cultural, social,
personal, and psychological factors
influence consumer buying
behavior
 ANALYZING CONSUMER
MARKET
• The aim of marketing is to meet and
satisfy target customers’ needs and
wants better than competitors.
Marketers must have a thorough
understanding of how consumers think,
feel, and act and offer clear value to each
and every target consumer.
 CHAPTER QUESTIONS

•How do consumers make purchasing

decision?
•How do marketers analyze consumer
decision making?
•How do consumer characteristics influence
buying behavior?
 HOW DO CONSUMERS MAKE
PURCHASING DECISIONS?
• Consumers go through distinct buying phases when
they purchases products:
(1) realizing the need or want something
(2) searching for information about the item
(3) evaluating different products
(4) choosing a product and purchasing it
(5) using and evaluating the product after the purchase
 HOW DO MARKETERS ANALYZE
CONSUMER DECISION MAKING?

• The consumer decision-making process consists

of five steps, which are need recognition,
information search, evaluations of alternatives,
purchase and post-purchase behavior. These
steps can be a guide for marketers to understand
and communicate effectively to consumers.
 HOW DO CONSUMER
CHARACTERISTICS INFLUENCE
BUYING BEHAVIOR?
• Consumer behavior refers to the selection, purchase
and consumption of goods and services for the
satisfaction of their wants. Consumers buyer
behavior is influenced by Four major factors:
Cultural
Social
Personal
Psychological
CULTURAL FACTORS
• A group of people are associated with a
set of values and ideologies that belong
to a particular community. When a
person comes from a particular
community, his/her behavior is highly
influenced by the culture relating to
that particular community.
 SOCIAL FACTORS
• Humans are social beings and they live
around many people who influence their
buying behavior. Human try to imitate
other humans and also wish to be socially
accepted in the society. Hence their buying
behavior is influenced by other people
around them. These factors are considered
as social factors.
PERSONAL FACTORS

• Factors that are personal to the

consumers influence their buying
behavior. These personal factors
differ from person to person, thereby
producing different perceptions and
consumer behavior.
 PSYCHOLOGICAL
FACTORS
• Human psychology is a major
determinant of consumer
behavior. These factors are
difficult to measure but are
powerful enough to influence a
buying decision.
 FOUR KEY ELEMENTS
PSYCHOLOGICAL PROCESSES
1. MOTIVATION - A motive is a need that is sufficiently pressing
to drive the person to act. Three of the best-known theories of
human motivation—those of Sigmund Freud, Abraham Maslow,
and Frederick Herzberg—carry quite different implications for
consumer analysis and marketing strategy.

2. PERCEPTION - Perception is the process by which an

individual selects, organizes, and interprets information inputs to
create a meaningful picture of the world and physical stimuli and
conditions of individual's surroundings reactions stimuli.
 FOUR KEY ELEMENTS
PSYCHOLOGICAL PROCESSES
3. LEARNING - involves changes in an individual's behavior
arising from experience. Most human behavior is learned.

4. MEMORY - All the information and experience

individuals encounter as they go through life can end up
in their long-term memory.
 FOUR KEY ELEMENTS
PSYCHOLOGICAL PROCESSES

Motivation Perception

Learning Memory
 MOTIVATION
Maslow Theory:
• Abraham Maslow explained that human need a hierarchy from most
to least pressing, Psychological Needs, Safety Needs, Social Needs,
Esteem Needs and Self Actualization. People will try to satisfy their
most important need first and then try their next most important.

Freud’s Theory:
• Sigmund Freud assumed that the psychological forces shaping people's
behavior are largely unconscious, and that a person cannot fully
understand his or her own motivations. Shape, size, weight, material,
color, and brand name can all trigger certain associations and
emotions.
MASLOW’S HIERARCHY
 PERCEPTION
It is the tendency to interpret information in a
way that will fit the Consumers preconceptions.
• Consumers will often distort information to be
consistent with prior brand and product beliefs.
• Selective distortion can work to the advantage of
marketers with strong brands when consumers
distort neutral or ambiguous brand information to
make it more positive.
 LEARNING
When people act, they learn.

• Learning involves changes in an individual's behavior arising

from experience. Most human behavior is learned.

• Drive is a strong internal stimulus impelling action.

• Cues are minor stimuli that determine when, where, and how
a person responds.

• Discrimination means that the person has learned to

recognize differences in sets of similar stimuli and can adjust
responses accordingly.
 MEMORY
All the information and experiences individual encounter
as they go through life can end up in their long-term
memory.

MEMORY PROCESSES:
1. Memory encoding refers to how and where
information gets into memory.
2. Memory retrieval refers to how information
gets out of memory.
 BUYING DECISION
PROCESS
• The buying decision process is the path that
customers take while moving toward doing
business with you. It’s similar to a purchase
funnel in that it is a downward flowing path that
starts wide at the top (as prospects become
aware of a brand) and ends more narrowly at
the bottom (as prospects becoming paying
customers).
CONSUMER BUYING
DECISION PROCESS
Need Recognition

Information Search

Evaluation

Purchase Decision
Post purchase
Behavior
 CONSUMER BUYING
DECISION PROCESS
Need Recognition:
 The buying decision process begins when a consumer
realizes they have a need. They become aware they have a
problem they want to solve or a gap they want to fill. They
may only be aware that they want to change their reality or
situation. Or they may have an idea about what will help
them but are not quite sure which brand, product, service,
or solution will provide the best option.
 CONSUMER BUYING
DECISION PROCESS
Information Search:
The next phase of the buying decision process
begins when the customer starts looking for
information that will help them solve their problem.
They know they need something to fix their
situation but aren’t sure which solution is best for
them.
 CONSUMER BUYING
DECISION PROCESS
Option Evaluation:
Customers at this point in the buying decision
process have a lot to consider. They must determine
what solution is the most trustworthy, affordable,
highest quality, and highest performing. They look
for reasons to believe why one solution has more
benefits than the other.
 CONSUMER BUYING
DECISION PROCESS

Purchase Decision:
At this point of the buying decision process, the
customer is ready to pull the trigger and make a
purchase. They have made their decision about
which product, service, brand, or solution is
best for them, and they are ready to buy.
 CONSUMER BUYING
DECISION PROCESS
Post-Purchase Evaluation:
At the last step of the five-stage consumer decision-
making process, the path to buying is complete. The
customer has made a purchase. But that doesn’t
mean the customer journey is complete. Now is the
time when the customer reflects on whether they
made the right decision.