Analyzing �Consumer Markets

Analyzing �Consumer Markets
What Influences �Consumer Behavior?
What is Culture?
Subcultures
Fast Facts About �American Culture
Social Classes
Characteristics of Social Classes
Reference Groups
Roles and Status
Personal Factors
The Family Life Cycle
Lifestyle Influences
�Model of Consumer Behavior
Motivation
Maslow’s Hierarchy of Needs
Consumer Buying Process
Problem Recognition

1. Analyzing
Consumer Markets
Prepared By,
Mr. Nishant Agrawal

2. Chapter Questions
•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?

3. Crest Used Mobile Phones to Engage
Consumers in Its Irresistibility
Campaign

4. What Influences
Consumer Behavior?
Cultural FactorsCultural Factors
Social FactorsSocial Factors
Personal FactorsPersonal Factors

5. 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.

6. Subcultures
Nationalities Nationalities
ReligionsReligions
Racial/Ethic groupsRacial/Ethic groups
Geographic regionsGeographic regions

7. David’s Bridal Targets the Latino Sub-
Culture with its Collection of
Quinceañera Dresses

8. Fast Facts About
American Culture
•The average American:
•chews 300 sticks of gum a year
•goes to the movies 9 times a year
•takes 4 trips per year
•attends a sporting event 7 times each year

9. Social Classes
Upper uppers
Lower uppers
Upper middles
Middle class
Working class
Upper lowers
Lower lowers

10. Characteristics of Social Classes
•Within a class, people tend to behave alike
•Social class conveys perceptions of inferior(lower) or superior
(higher) position
•Class may be indicated by a cluster of variables (occupation,
income, wealth)
•Class designation is mobile over time

11. Social Factors
Reference
groups
Social
roles
Statuses
Family

12. Reference Groups
Membership groupsMembership groups
Primary groupsPrimary groups
Secondary groupsSecondary groups
Aspirational groupsAspirational groups
Dissociative groupsDissociative groups

13. Family Distinctions
Affecting Buying Decisions
•Family of Orientation
•Family of Procreation

14. Targets Women with Female Store
Managers

15. Roles and Status
A role consist of the activities a
person is expected to perform.
Each role in turn in to Status.

16. Personal Factors
Age
Values
Life cycle
stage
Occupation
Personality
Self-
concept
Wealth
Lifestyle

17. The Family Life Cycle

18. Brand Personality
SinceritySincerity
ExcitementExcitement
CompetenceCompetence
SophisticationSophistication
RuggednessRuggedness

19. Lifestyle Influences
Multi-tasking
Time- starved / hungry
Money-constrained

20. Table 6.2 LOHAS (Lifestyles of Health
and Sustainability) Market Segments
•Sustainable Economy
•Healthy Lifestyles
•Ecological Lifestyles
•Alternative Health Care
•Personal Development

21. Model of Consumer Behavior

22. Key Psychological Processes
Motivation
MemoryLearning
Perception

23. Motivation
Freud’s
Theory
Behavior
is guided by
subconscious
Motivations &
that person
can not understand
His motivation.
Maslow’s
Hierarchy
of Needs
Behavior
is driven by
the lowest,
unmet need.
(Need are
arranged in
Hierarchy)
Herzberg’s
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors

24. Maslow’s Hierarchy of Needs

25. Herzberg’s Two-Factor Theory

26. Perception
Selective Attention
Subliminal Perception
Selective Retention
Selective Distortion
It is process by which we select, organize and interpret information
input to create meaningful picture of the world.

27. Figure 6.3 State Farm Mental Map

28. Bahlsen Uses Crunchy Sounds to
Encode Brand Associations

29. Consumer Buying Process
Problem Recognition
Information Search
Evaluation of Alternative
Purchase Decision
Postpurchase
Behavior

30. Problem Recognition
•The need recognition is the first and most important
step in the buying process. If there is no need, there is
no purchase.
•This recognition happens when there is a lag between
the consumer’s actual situation and the ideal and
desired one.

31. Sources of Information
Personal
ExperientialPublic
Commercial
•Once the need is identified, it’s time for the consumer to seek
information about possible solutions to the problem.
•He will search more or less information depending on the
complexity of the choices to be made

32. Successive Sets Involved in
Consumer Decision Making

33. Evaluation of Alternative
•Once the information collected, the consumer will be
able to evaluate the different alternatives that offer to
him, evaluate the most suitable to his needs and
choose the one he think it’s best for him.

34. A Consumer’s Evaluation of Brand
Beliefs About Laptops

35. Purchase Decision
Non-Compensatory Models of Choice
•Conjunctive
•Lexicographic
•Elimination-by-aspects

36. Stages between Evaluation of
Alternatives and Purchase

37. Perceived Risk
FunctionalFunctional
PhysicalPhysical
FinancialFinancial
SocialSocial
PsychologicalPsychological
TimeTime

38. Purchase decision
•Now that the consumer has evaluated the different solutions
and products available for respond to his need, he will be able
to choose the product or brand that seems most appropriate to
his needs. Then proceed to the actual purchase itself.
•Decision will depend on the information and the selection made
in the previous step based on the perceived value, product’s
features and capabilities that are important to him.

39. Post-purchase behaviour
•Once the product is purchased and used, the
consumer will evaluate
•whether he has made the right choice in buying this
​​
product or not. He will feel either a sense of
satisfaction or a disappointment

40. How Customers Use and
Dispose/arrange of Products
Page No 152

41. 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

42. Mental Accounting
•Consumers tend to…
•Segregate gains
•Integrate losses
•Integrate smaller losses with larger gains
•Segregate small gains from large losses

43. Marketing Debate
Is target marketing ever bad?
Take a position:
1.Targeting minorities is exploitive.
or
2. Targeting minorities is a sound
business practice.

44. Marketing Discussion
Do you have rules you employ in
spending money?
Do you follow Thaler’s four principles
in reacting to gains and losses?

45. Example of Consumer Buying Decision Process
•Stage 1 – Need recognition: It’s Sunday night. You’re and there is nothing in the fridge.
You will order food
•Stage 2 – Information search: You already have ordered to the Indian restaurant in your
street last month .A friend recommended a pizzeria in your neighbourhood. And this
morning you’ve found a flyer for a sushi restaurant in your mailbox.
•Stage 3 – Alternative evaluation: You have a bad opinion of the Indian restaurant since
you’ve been sick the last time. The pizzeria is both recommended by your friend and also
happens to be a well-known brand .As for the sushi restaurant, it got good reviews on
Tripadvisor
•Stage 4 – Purchase decision: After evaluating the possibilities, you’ve decided to
choose the well-known pizza delivery chain. In addition, a new episode of your favorite TV
show is broadcasted tonight on TV.
•Stage 5 – Post-purchase behavior: The pizza was good (positive review). But you know
there was too many calories and you regret a little bit (mixed feelings about yourself). The
next time you will choose the sushi restaurant. There is less fat in sushi than pizza (next
purchase behaviour)!

46. Assignments
1.Discuss the various steps involved in consumer
buying process.
2.Explain the concepts of customer perceived value
and customer lifetime value
3.Explain the various factors affecting the consumption
behaviour (2 time asked)
4.Write a note on BCG matrix

47. Thank You