6

Analyzing
Consumer Markets

Marketing Management, 16th ed

 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?
• How do marketers analyze consumer
decision making?
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 6-2
 Emerging Trends in Consumer
Behavior

Metrosexual –
Straight urban man
who enjoys shopping
and using grooming
products

4-3
 Culture

The fundamental determinant of

a person’s wants and behaviors
acquired through socialization
processes with family
and other key institutions

4-4
 What Influences Consumer Behavior?

Cultural Factor

Social Factors

Personal Factors

4-5
 Subcultures

Nationalities

Religions

Racial groups

Geographic regions

Special interests
4-6
 Fast Facts About
American Culture

• The average American:

• chews 300 sticks of gum a year
• goes to the movies 9 times a year
• takes 4 trips per year
• attends a sporting event 7 times each year

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 6-7

 Fast Facts About
Bangladeshi Culture
Key Facts About Bangladesh
Here are some quick, key facts you should know about
Bangladesh:
Population: 162,650,853.
Capital: Dhaka.
Official language: Bengali.
Area: 57,320 square miles (148,460 square kilometers). That’s
about the size of Pennsylvania and New Jersey combined.
Economy: Bangladesh is known for its garment industry. In fact,
more than 80% of the country’s exports are from the garment
sector. Over 40% of the labor force works in agriculture growing
rice, jute, tea, wheat, sugar cane, potatoes and more.
See the link: https://blog.compassion.com/fun-facts-about-
bangladesh/
 Social Classes

• Upper uppers
• Lower uppers
• Upper middles
• Middle
• Working
• Upper lowers
• Lower lowers

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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)
• Class designation is mobile over time

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 6-10

 Social Factors

• Reference groups—have a direct

(face-to-face) or indirect influence on
their attitudes or behavior.
• Family—parents and siblings
• Social roles—activities within a group
that a person is expected to perform
• Status—prestige

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 6-11

 Reference Groups
Membership groups—direct
influence

Primary groups—family,
friends, neighbors, co-workers

Secondary groups—religious,
professional, trade-union
Aspirational groups—
hope to join

Dissociative groups--
rejects
4-12
 Family

• Family of Orientation
(parents and siblings)
• Religion
• Politics
• Economics

• Family of Procreation
(spouse and children)
Everyday buying
behavior

4-13
 Roles and Statuses

What degree of status is

associated with various
occupational roles?

4-14
 Personal Factors

• Age • Personality
• Life cycle stage • Values
• Occupation • Lifestyle
• More women in • Self-concept
Workplace
• Wealth

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Growth Trends Young and Old (birthrate is the number
of babies born per one thousand people in the population)

Population Growing,
but…U.S. is less
Key Trends than 1% per year

Birthrate – Boom
(1946 to 1964) or
Bust (1975 to 1976)

Graying of America
(Baby Boomers enter
middle age and senior
citizenry)
Growth Trends Young and Old in Bangladesh
(birthrate is the number of babies born per one thousand
people in the population)
Growth Trends Young and Old in Bangladesh
(birthrate is the number of babies born per one thousand
people in the population)
Growth Trends Young and Old in Bangladesh
(birthrate is the number of babies born per one thousand
people in the population)
 Trends in US Households and
Families

Married Couple High Divorce

without children— Rate—50%;
married later 80% remarry

“Traditional”
Family

Unmarried
Single Adult
Living
Households
Together
 Trends in Bangladesh
Households and Families
 The Cultural and Social
Environment

Time
Poverty

Economic
Power

Career
Opportunity Cultural Trend:
The Changing Roles of Women

4-11 22
 Brand Personality

Sincerity--honest

Excitement—daring

Competence—reliable

Sophistication—upper-class

Ruggedness—tough
4-23
 Core Values--the belief systems that
underlie attitudes and behaviors
• Attitudes—a person’s enduring favorable or unfavorable
evaluation, emotional feeling, and action tendencies toward
some object or idea (e.g., Mistrustful; Pessimistic)
• Attitude towards a friend:
• Cognitive --I think my friend is kind, charming, and humorous
• Affective--I feel good when I am around my friend
• Behavioral--I try to hang out with my friend whenever I get the chance
• Belief—a descriptive thought that a person hold about something
• You will have bad luck for 7 years if you break a mirror
• Don't let a black cat cross your path, it will bring you bad luck
• Opening an umbrella indoors will bring you bad luck
• Find a penny, pick it up, all day long you'll have good luck
• Rain on your wedding day is a good omen
 Lifestyle (pattern of living)
Influences

Multi-tasking—doing two or
more things at one time

Time—starved

Money—constrained

4-25
 LOHAS (Lifestyles of Health and
Sustainability) Market Segments
• Sustainable Economy (e.g., green building and
industrial goods)
• Healthy Lifestyles (e.g., natural, organics;
nutritional products)
• Ecological Lifestyles (e.g., ecological home and
office products)
• Alternative Health Care (health and wellness
solutions)
• Personal Development (e.g., mind, body, and spirit
products such as CDs, books, tapes, seminars)

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 Self-Concept

• Actual Self-Concept—how we
view ourselves
• Ideal Self-Concept—how we
would like to view ourselves
• Others’ Self-Concept—how
we think others see us
 Model of Consumer Behavior

4-28
 Key Psychological Processes

• Motivation—drive to act
• Perception—Process of selecting,
organizing, interpreting information to
create a world picture
• Learning—changes in behavior or
insights arising from experience
• Memory—information & experiences
• Short-term—temporary
• Long-term—permanent

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 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

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 6-30

 Maslow’s Hierarchy of Needs

4-31
 Herzberg’s Two-Factor Theory

4-32
 Perception

Selective Attention
(notice)

Selective Retention
(remember)
Selective Distortion
(interpret information
to fit preconceptions)
Subliminal Perception
(embed covert messages)
4-33
 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Post-purchase
Behavior
4-34
 Sources of Information

Personal Commercial
(advertising, websites,
(family, friends, etc)
salesperson, etc)

Public
Experiential
(mass media,
(handling, examining,
consumer-rating
product usage)
Organizations)

4-35
 Non-compensatory Models of Choice
(positive and negative attributes consideration
do not necessarily net out)

• Conjunctive Heuristic
• minimum set of acceptable cutoff for each attribute and
choose 1st alternative that meets the minimum
standard for all attributes (e.g., computer speed)
• Lexicographic
• Choose the best brand on the basis of its perceived
most important attribute (e.g., printer versatility)
• Elimination-by-aspects
• Compares brands on an attribute selected
probabilistically (where the probability of choosing an
attribute is positively related to its importance) and
brands are eliminated if they do not meet minimum
acceptable cutoff levels (e.g., cell phone memory)

4-36
 Perceived Risk
• Functional—product does not perform
• Physical—product poses treat to physical
well-being or health of the user or others
• Financial—product is not worth the price
paid
• Social—product results in embarrassment
from others
• Psychological—product affects the mental
well-being of the user
• Time—failure of product results in an
opportunity cost of finding another
Copyright ©satisfactory product
2009 Pearson Education, Inc.  Publishing as Prentice Hall 6-37
 Other Theories of
Consumer Decision Making
Involvement
• Elaboration Likelihood Model
• High and Low
• Low-involvement marketing
strategies
• Link to some involving
issues
• Personal situations
• Personal values
• Add Important feature
• Variety-seeking buying
behavior
• Encourage habitual buying
behavior by dominating
self-space.
4-38
Decision Heuristics (rules of thumb)
• Availability
• Quickness and ease with which
a particular example of an
outcome comes to mind (e.g.,
break failure of Toyota)
• Representativeness
• How representative or similar
the outcome is to other
examples (e.g., packaging)
• Anchoring and adjustment
• Consumers arrive at an initial
judgment and then make
adjustments of that 1st
impression based on additional
information (e.g., initial service
encounters)
 Mental Accounting (manner which
consumers code, categorize, and evaluate financial outcomes
of choice)
• Consumers tend to…
• Segregate gains
• Sum of parts maybe greater than the whole—multiple
benefits
• Integrate losses
• House buyers more inclined to view additional
expenditures favorably given the high price of the
house
• Integrate smaller losses with larger gains
• Withholding taxes from monthly paycheck than one
lump-sum payment
• Segregate small gains from large losses
4-39
• Rebate for purchasing an automobile
 Study Question 1
A person’s ________ consist(s) of all the groups
that have a direct (face-to-face) or indirect influence
on his/her attitudes or behavior.

A.Culture
B.Subculture
C.Psychographics
D.reference groups
E.demographics
4-40
 Study Question 2
Consumption may be shaped by ________
(such as marriage, childbirth, or divorce).

A.the psychological life cycle

B.the product life cycle
C.the life/death life cycle
D.Post-puberty cycles
E.critical life events or transitions
4-41
 Study Question 3
________ is a set of distinguishing human
psychological traits that lead to relatively
consistent and enduring responses to
environmental stimuli.

A.Image
B.Personality
C.Beliefs
D.Heredity
E.Culture
4-42
 Study Question 4
________ portrays the “whole person”
interacting with his or her environment.

A.Attitude
B.Reference group
C.Lifestyle
D.Culture
E.Subculture
4-43
 Study Question 5
Consumers today are experiencing a time famine
because of their busy lifestyles. One way to avoid
the difficulties of time famine, which is of particular
interest to marketers, is ________.

A.to set fewer goals

B.to multitask
C.to give in to personal burdens
D.to report frustration to management
E.to develop a callous attitude toward marketers
4-44