5 Analyzing

Consumer Markets

Chapter Questions

How do consumer characteristics influence buying behavior?

What major psychological processes influence consumer responses to marketing?

How do marketers analyze consumers decision making?

5-2

Model of Consumer Behavior

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Consumer Behavior

5-4

Consumer Behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose goods, services, ideas or experiences to satisfy their needs and desires.

What Influences Consumer Behavior?

Cultural FactorsCultural Factors

Social FactorsSocial Factors

Personal FactorsPersonal Factors

5-6

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

5-7

A Few Facts About the American Culture

The average American:

spends 32% of income of housing, 8% on food at home and 6% on food away home.

has 1.9 vehicles per household.

spends 9.34 hours on sleeping and personal care a day.

chews 300 sticks of gum a year.

goes to the movies 9 times a year.

takes 4 trips a year.

attends a sporting event 7 times a year.

5-8

Cultural Factors: Social ClassesUpper 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

Social Factors

Referencegroups

Social roles Statuses

Family

5-10

Social Factors: Reference Groups

Membership groupsMembership groups

Primary groupsPrimary groups

Secondary groupsSecondary groups

Aspirational groupsAspirational groups

Dissociative groupsDissociative groups

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5-12

Social Factors: Family Distinctions Affecting Buying Decisions

Family of Orientation: parents and siblings

Family of Procreation: spouse and children

5-13

Social Factors: Roles and Status

What degree of status is associated with various occupational roles?

Personal Factors

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle

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5-15

LOHAS Market Segments (Lifestyles of Health and Sustainability)

Sustainable Economy (green goods, renewable energy, socially responsible investing, resource efficient products)

Healthy Lifestyles (organic and nutritional products)

Ecological Lifestyles (ecological home/office products, environmentally friendly products, ecotourism)

Alternative Health Care (homeopathy)

Personal Development (yoga, fitness, weight loss, CDs, books, seminars)

Key Psychological Processes

Motivation

MemoryLearning

Perception

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5-17

Motivation

Freud’sTheory

Behavioris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behavioris driven by

lowest, unmet need

Herzberg’sTwo-Factor

Theory

Behavior isguided by motivating

and hygienefactors

Maslow’s Hierarchy of Needs

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Herzberg’s Two-Factor Theory

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Perception

Selective Attention

Selective Distortion

Selective Retention

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Learning

5-21

changes in behavior arising from experience

Memory

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Consumer Buying Process

Problem Recognition

Information Search(personal, commercial,

public, experiential)

Evaluation

Purchase Decision

PostpurchaseBehavior

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Successive Sets in Decision Making

5-24

Expectancy-Value Model: A Consumer’s Brand Beliefs about Laptop Computers

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Weights 40% 30% 20% 10%

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Perceived Risk

Functional – doesn’t perform up to expectations

Physical – poses a threat to the physical well-being or health of the user or others

Financial – product isn’t worth the price paid

Social – results in embarrassment from other

Psychological – affects the mental well-being of the user

Time – the failure of the product results in an opportunity cost of finding another good product

Steps Between Alternative Evaluation and Purchase

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How Customers Use or Dispose of Products

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