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Analyzing
Consumer Markets
Analyzing Consumer Markets

“The most
important
ingredient in the
success of an
organization is a
satisfied customer”
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 Analyzing Consumer Markets

• Consumer Behavior: Those acts of individuals directly

involved in obtaining and using goods and services,
including the decision processes.

• How do consumers make buying decisions?

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What Influences Consumer Behavior?

Cultural
Cultural Factors
Factors

Social
Social Factors
Factors

Personal
Personal Factors
Factors

Psychological
Psychological Factors
Factors
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What Influences Consumer Behavior?

Key Factors  Culture

 The meanings shared by (most)
people in a society.
 Cultural  Subculture
 Social  Groups with shared value
systems
 Personal
 Social Class
 Psychological  Society’s divisions who share
values, interests and behaviors

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Characteristics Affecting Consumer Behavior

Key Factors  Reference Groups

 Membership Groups:
 Cultural  Primary Groups
 Secondary Groups
 Social
 Non-membership Groups:
 Personal
 Aspirational Groups
 Psychological  Dissociative Groups

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Characteristics Affecting Consumer Behavior

Key Factors  Age and life cycle

 Cultural
 Occupation and Economic
situation
 Social
 Lifestyle and Values
 Personal
 Personality and self-
 Psychological concept

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 Personal Factors
 Family Life Cycle stages throughout which families
pass as they mature over time.
 Stages in family life cycle:
1. Bachelor stage
2. Newly married couples, no children
3. Full nest 1; youngest child under 6
4. Full nest 2; youngest child 6 or over
5. Full nest 3; older married couples with dependent children
6. Empty nest; older married couples no children with them
8. Solitary survivor

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Characteristics Affecting Consumer Behavior

Key Factors  Motivation

 Perception
 Cultural
 Learning
 Social
 Beliefs and attitudes
 Personal
 Psychological

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Psychological Processes
 Maslow’s Theory

Maslow’s
Hierarchy
of Needs

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Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase Behavior
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 Search Processes

Adoption Process
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption

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Evaluation of Alternatives

1. Compensatory heuristics (Expectancy-Value model)

2. Noncompensatory heuristics
a) conjunctive (“and”)
b) disjunctive (“or”
c) lexicographic
d) Elimination-by Aspects

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 Using Compensatory Heuristics:
A Consumer’s Brand Beliefs about Computers

Computer Attribute
Memory Graphics Size and
Capacity Capability Weight Price
A 10 8 6 4

B 8 9 8 3

C 6 8 10 5

D 4 3 7 8

Importance weight x belief

Computer A: .4(10) + .3(8) + .2(6) + .1(4) = 8.0

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Postpurchase Behavior

 Postpurchase Behavior (cognitive

dissonance?? What increases it? What
does it lead to?)
 Postpurchase Satisfaction
(expectations versus performance)
 Disappointed
 Satisfied
 Delighted

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