MBA-Marketing M-Analyzing Consumer Markets

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Analyzing Consumer Markets


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27/9/2008 azi Page 2

Consumer behavior is the study of howindividuals, groups, and organizations select,

buy, use, and dispose of goods, services, ideas,

or experiences to satisfy their needs and wants.

It provides clues for improving or introducing

products or services, setting prices, devising

channels, crafting messages, and developingother marketing activities.

CONSUMER BEHAVIOR


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Explain how consumer characteristics influence buyingbehavior.

Enter your title here

Cultural Factors.

Culture is the fundamental determinant of a persons wants and behavior.

Social Factors.

Reference groups;- groups that have influence on consumers attitudes or

behavior.Family;- the most influential primary reference groups.

Roles and statutes;-

Role activities a person is expected to perform.

Status in society, eg, a senior vice president has more status than a

sales manager.

Personal Factors.

Age, stage in the life-cycle; occupation and economic

circumstances;personality and self-concept; life style and values

QUESTION 1


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Four main psychological processes affect consumer

behavior: motivation, perception, learning, andmemory.

MOTIVATION

A need that is sufficiently

pressing to drive the person toact .

PERCEPTION

A process by which individual

selects, organizes, and interpretsinformation inputs to create a

meaningfull picture of the world.

Psychological Processes

MEMORY

Information and experiences individualencounter as they go through life can

end up in their long-term memory.

LEARNING

Changes in individuals behaviorarising from experience.


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Marketing Stimuli

Products & Services

Price

Distribution

Communications

Other Stimuli

Economic

Technological

Political

Cultural

MODEL OF CONSUMER BEHAVIOR

Marketing

Stimuli

Other

Stimuli

Consumer

Psycholo

gy Co

nsumer

Ch

aracteristic

Buying

Decision

Purchase

Decision

Buying Decision

Process

Problem recognition

Information search

Evaluate alternatives

Purchase decision

Post-purchasebehavior

Purchase Decision- Product choice.Brand choice.Dealer choice.

Purchase amount.Purchase timing.Payment method.


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Discuss how consumers make purchasing decisions

Problem recognition

Buyer recognise need.

Information search

Buyer search for information.

Evaluate alternatives

Buyer make value judgement.

Purchase decision

Form preference and intention to buy.

Post-purchase behavior

After purchase,buyer will be alert to

information that supports decision.

QUESTION 2

Buying Decision Process


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Consumer Involvement

From viewing an ad or evaluating a product orservice.

Elaboration likelihood model.

Make evaluations in both low-and high-involvement.

Low involvement marketing strategies.

Absence of significant brand differences.

OTHER THEORIES OF CONSUMER DECISION MAKING

Variety-seeking buying behavior

Brand switching.

Decision heuristics and biases

Rules of thumb or mental short cuts in decision

process.

Mental accounting

Manner by which consumers code,categorize,and

evaluate financial outcomes of choices.


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The best thing about the future is that it

comes only one day at a time.

Abraham Lincoln (1809-1865)

THANK YOU.

MBA-Marketing M-Analyzing Consumer Markets

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