Consumer Markets(1)

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Consumer Markets


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Chapter Objectives

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?


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Why do we buy salt from a local shop while a

shirt from a mall?????

Salt

No difference in qualityproduct comes from thesame source to both

Easy accessibility

Low involvement

Not long Lasting

It is not a matter ofpersonal choice .

Shirt

Difference in qualitycomes from differentsources

Not easily available

everywhere High involvement

Matter of personal choice

Status symbol

Long lasting

Though the consumer is the same but behavior varies

in different situations therefore


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Customer holds three sides of consumption circle

ProductsServices

Ideas

Experiences

Individuals

or Groups

AcquiringReceiving, Finding, Inheriting,

Producing, Purchasing

ConsumingCollecting, Nurturing, Cleaning,Preparing,Evaluating, Serving,

Displaying, Storing,Wearing,

Sharing,

Disposing

Giving, Throwing away,Recycling, Depleting

Therefore, consumer is said to be the king


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Any exceptions? Where customer

does not have a choice

Monopoly services like electricity, water where there is no

substitute

Rare Goods

Emergency purchase

Natural calamity


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Rethinking Marketing

The rules of the game have

changed..

(HBSP Article)


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Why studying customer is important for marketer

Understanding Consumers behavior helps to gauge opportunity :

Eg: Advent of electric car or hydro cars; Discovery of ethanol as asubstitute to petrol

Helps in selecting right target market:

Eg. Using kids to market instant food like maggie

Helps in Marketing mix decisions:

Eg. Nano integrates all its 4Ps to give a low cost model to itsconsumers

Used in social and non profit marketing :

Eg. Polio awareness camps use mass appeal to maximize reach


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Emerging Trends in Consumer Behavior

Metrosexual

Straight urban manwho enjoys shopping

and using grooming

products


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What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors


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I. Culture

The fundamental determinant of

a persons wants and behaviors

acquired through socialization

processes with family

and other key institutions


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Subcultures

Nationalities

Religions

Racial groups

Geographic regions


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Social Classes:

Upper uppers

Lower uppersUpper middles

Middle class

Working classUpper 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 Difference in media preferences


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II. Social Factors

Reference

groups

Social

rolesStatus

Family


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1. Reference Groups

Membership groupsPrimary groups

Secondary groups

Aspirational groups

Dissociative groups


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2. Family

Family of Orientation

Religion

Politics Economics

Family of Procreation

Everyday buyingbehavior


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3. Roles and Status

Role consists of activities a

person is expected toperform.

Degree of status is

associated with various

occupational roles.
http://rds.yahoo.com/S=96062857/K=President/v=2/SID=w/l=II/R=1/SS=i/OID=c16fb183d86d5c6a/SIG=1nr8bq8fm/EXP=1112293733/*-http%3A//images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3DPresident%26ei%3DUTF-8%26fr%3DFP-tab-img-t%26fl%3D0%26x%3Dwrt&h=360&w=282&imgcurl=www.immigrantsforamerica.com%2Fimages%2FUS%2520President%2520George%2520W.%2520Bush.jpeg&imgurl=www.immigrantsforamerica.com%2Fimages%2FUS%2520President%2520George%2520W.%2520Bush.jpeg&size=19.3kB&name=US%20President%20George%20W.%20Bush.jpeg&rcurl=http%3A%2F%2Fwww.punt.nl%2Fcount_url.php%3FUrl%3Dhttp%253A%252F%252Fpuntjepuntjepuntje.punt.nl%252Findex.php%253Fgr%253D39554&rurl=http%3A%2F%2Fwww.punt.nl%2Fcount_url.php%3FUrl%3Dhttp%253A%252F%252Fpuntjepuntjepuntje.punt.nl%252Findex.php%253Fgr%253D39554&p=President&type=jpeg&no=1&tt=1,831,044


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III. Personal Factors

Age

Values

Life cycle

stage

Occupation

Personality

Self-

concept

Wealth

Lifestyle


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Behavior

changes

according to life

cycle stage

Family

Psychological

Critical life

events


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Brand Personality

Sincerity

Excitement

Competence

Sophistication

Ruggedness


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A Brand Personality Framework


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Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained


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Psychological Process:

Model of Consumer Behavior


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Key Psychological Processes

Motivation

MemoryLearning

Perception


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Motivation

Freuds

Theory

Behavior

is guided by

subconscious

motivations

Maslows

Hierarchy

of Needs

Behavior

is driven bylowest,

unmet need


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Maslows Hierarchy of Needs


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Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion


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Learning

Drive

Cues

Responses

Reinforcement


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Figure 6.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase

Behavior

Consumer Buying Process


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Sources of Information

Personal

ExperientialPublic

Commercial


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Successive Sets


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How Customers Use and Dispose of

Products

Consumer Markets(1)

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