5-1

MARKETING MANAGEMENT

Analyzing Consumer Markets

Influences on Consumer Behavior

• Cultural Factors

• Social Factors

• Reference Groups

• Family

• Roles

• Demographics (age, $, education)

• Personality

• Lifestyle and Values

5-2

Psychological approaches

• “Drives”

– Freud

– Maslow

– Hertzberg

• “Learning”

– Pavlov

– Skinner

• “Cognitive”5-3

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Rational Model of Decision Making

6-8

Other Models of Decision Making

Involvement• Elaboration

Likelihood Model• Low-involvement

marketing strategies• Variety-seeking

buying behaviour

Decision Heuristics• Availability• Representativeness• Anchoring and

adjustment

17-9

Elaboration Likelihood Model• Petty & Caccioppo

– Two questions:• Motivation to process?• Ability to process?

– When YES to both: HIGH elaboration• Central cues

–product

– When NO: LOW elaboration• Peripheral cues -

–source or ad

17-10

INVOLVEMENT

Decoding is ACTIVE

– That is, it requires EFFORT

– When will people to spend effort?

• 1. When they CARE about what you’re saying

–personal relevance

This is the concept of INVOLVEMENT

The personal relevance of the product

interest, price

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