MARKETING MANAGEMENT14th edition

6 Analyzing

Consumer Markets

Kotler Keller

CHP: 6&7-2

What Influences Consumer Behavior?

Cultural FactorsCultural Factors

Social FactorsSocial Factors

Personal FactorsPersonal Factors

CHP: 6&7-3

Culture

The fundamental determinant of a person’s wants and behaviors

acquired through socializationprocesses with family

and other key institutions

CHP: 6&7-4

Subcultures

Nationalities Nationalities

ReligionsReligions

Racial groupsRacial groups

Geographic regionsGeographic regions

Special interestsSpecial interests

CHP: 6&7-5

Social Classes

Upper uppersLower uppersUpper middlesMiddle class

Working classUpper lowersLower lowers

CHP: 6&7-6

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

CHP: 6&7-7

Social Factors

Referencegroups

Social roles

Statuses

Family

CHP: 6&7-8

Reference Groups

Membership groupsMembership groups

Primary groupsPrimary groups

Secondary groupsSecondary groups

Aspirational groupsAspirational groups

Dissociative groupsDissociative groups

CHP: 6&7-9

Family

• Family of Orientation– Religion– Politics– Economics

• Family of Procreation– Everyday buying

behavior

CHP: 6&7-10

Personal Factors

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle

CHP: 6&7-11

Behavior changesaccording to life cycle stage

•Family•Psychological•Critical life events

CHP: 6&7-12

Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained

CHP: 6&7-13

Model of Consumer Behavior

CHP: 6&7-14

Key Psychological Processes

Motivation

MemoryLearning

Perception

CHP: 6&7-15

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

CHP: 6&7-16

Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion

CHP: 6&7-17

Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

PostpurchaseBehavior

CHP: 6&7-18

Sources of Information

Personal

ExperientialPublic

Commercial

CHP: 6&7-19

Successive Sets

CHP: 6&7-20

Evaluation of Attributes

CHP: 6&7-21

Stages between Evaluation of Alternatives and Purchase

CHP: 6&7-22

Perceived Risk

FunctionalFunctional

PhysicalPhysical

FinancialFinancial

SocialSocial

PsychologicalPsychological

TimeTime

CHP: 6&7-23

Other Theories of Consumer Decision Making

Involvement• Elaboration

Likelihood Model• Low-involvement

marketing strategies• Variety-seeking

buying behavior

Decision Heuristics• Availability• Representativeness• Anchoring and

adjustment

CHP: 6&7-24

Attitudes

• A predisposition to respond in a consistently favorable or unfavorable way

• An individual’s affective reaction to or overall evaluation of an object, person, action, or concept

CHP: 6&7-25

Involvement

– Involvement Profile:• Personal interest in a product category• Importance of negative consequences• Probability of making a mistake• Pleasure value of the product category• Sign value of the product category• How closely the product is related to the self

CHP: 6&7-26

ELM

• Persuasion = f (Elaboration)• Elaboration = f (Motivation, Ability)• Motivation

InvolvementNeed for cognition

• AbilityCapacityTimingRepetitionDistraction

CHP: 6&7-27

Elaboration: Issue relevant thinking

High Elaboration• Extensive IP• Extensive time• Extensive mental capacity• Extensive motivation• Controlled thinking• Deep thinking• Systematic thinking• Effortful analysis

Low Elaboration• Limited IP• Limited time• Limited mental capacity• Limited motivation• Automatic thinking• Shallow thinking• Heuristic thinking• Mindless analysis

CHP: 6&7-28

Persuasion with ELM

Target: High Elaboration

Strategy: Central Route

Persuasion occurs by:• Careful thinking• Thoughtful analysis• Deep consideration• True merits of info

Target: Low Elaboration

Strategy: Peripheral Route

Persuasion occurs by:• Simple cues• Irrelevant info• Hedonistic content• Side issues

CHP: 6&7-29

The Source

• Source effects: A message will have different effects if communicated by a different source.

• Two important source characteristics:– Credibility and Attractiveness

• Source credibility: A source’s perceived expertise, objectivity, or trustworthiness.

• Attractiveness: A source’s perceived likeability, similarity, celebrity.

CHP: 6&7-30

The Message

• Message Strength– Relevancy– Objectivity– Verifiability

• One- Versus Two-Sided Arguments:– Supportive argument: Presents only positive arguments – Two-sided message: Presents positive and negative info

• Drawing Conclusions• Comparative Advertising:

– A strategy in which a message compares two or more recognized brands and compares them on the basis of attributes.

MARKETING MANAGEMENT14th edition

7 Analyzing

Business Markets

Kotler Keller

CHP: 6&7-32

Organizational Buying

Decision-making process by whichformal organizations establish theneed for purchased products and

services, and identify,evaluate, and choose among

alternative brands and suppliers.

CHP: 6&7-33

Characteristics of Business Markets

• Fewer, larger buyers• Close supplier-

customer relationships• Professional

purchasing• Many buying

influences• Multiple sales calls

• Derived demand• Inelastic demand• Fluctuating demand• Geographically

concentrated buyers• Direct purchasing

CHP: 6&7-34

Buying Situation

Straight rebuyStraight rebuy

Modified rebuyModified rebuy

New taskNew task

CHP: 6&7-35

The Buying Center

InitiatorsInitiators

UsersUsers

InfluencersInfluencers

DecidersDeciders

ApproversApprovers

BuyersBuyers

GatekeepersGatekeepers

CHP: 6&7-36

Organizational Buying Behavior in Japan