A FRAMEWORK for MARKETING MANAGEMENT Kotler KellerCunningham Chapter 5 Analyzing Consumer Markets.

A FRAMEWORK for MARKETING MANAGEMENT

Kotler Keller Cunningham

Chapter 5Chapter 5Analyzing Consumer

Markets

Chapter Questions

• How do cultural, social, and personal factors influence consumer behaviour buying?

• What major psychological processes influence consumer behaviour to marketing stimuli?

• How do consumers make purchasing decisions?

© Copyright 2008 Pearson Education Canada5-2

Profile: Canadian Marketing Excellence

BMW CANADA

• BMW dominates the luxury passenger segment in Canada• Although it reported a 8.3% growth in sales from the previous

year, its sales still only accounted for 1.4% of the total Canadian market

© Copyright 2008 Pearson Education Canada

•To increase this, BMW reinforces its brand, passion and joy:

•Customers are able to customize cars to their own needs•BMW invested $150 million to transform its Canadian dealerships to reflect its brand aspirations•Use of movies, kiosks at sporting events, and BMW Fascination Driver Training

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What Influences Consumer Behaviour?

Cultural factorsCultural factors

Social factorsSocial factors

Personal factorsPersonal factors


Culture Influences Buyer Behaviour

Culture is the most fundamental determinant of

a person’s wants and behaviours


Figure 5.1 Model of Consumer Behaviour

Marketing stimuli

Other stimuli

Consumer characteristics

Consumer psychology

Decision process

Purchase decision


Social Classes

Upper uppersLower uppersUpper middlesMiddle class

Working classUpper lowersLower lowers


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


Social Factors

Referencegroups

Roles andstatuses

Family


Social Factors

DESJARDINS

•Desjardins, a Quebec-based banking cooperative has used programs aimed at children since 1901•Provides schools with educational material•Around 200,000 student account holders bank with Desjardins•The bank also educates children with regards to money management


Reference Groups

Membership groupsMembership groups

Primary groupsPrimary groups

Secondary groupsSecondary groups

Aspirational groupsAspirational groups

Dissociative groupsDissociative groups


Family

Family of orientation

Family of procreation


Roles and Statuses

What degree of status is associated with various

occupational roles?


Personal Factors

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle


Lifestyle influences

Multitasking

Time-starved

Money-constrained


Key Psychological Processes

Motivation

MemoryLearning

Perception


Motivation

Freud’sTheory

Behaviouris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behaviouris driven by

lowestunmet need

Herzberg’sTwo-Factor

Theory

Behaviour isguided by motivating

and hygienefactors


Perception

Selective attention

Selective retention

Selective distortion


Figure 5.2 Hypothetical Dole Mental Map


Figure 5.3 Consumer Buying Process

Problem recognition

Information search

Evaluation

Purchase decision

Postpurchasebehavior


Sources of Information

Personal

ExperientialPublic

Commercial


Figure 5.4 Successive Sets


Basic Concepts Underlying the Consumer Evaluation Process

• Consumer seeks to satisfy a need

• Consumer is looking for specific benefits

• Each product is viewed as a bundle of attributes with varying abilities to deliver benefits that satisfy needs

• Attributes of interest vary by product


Evaluations Influence Behaviour

Beliefs Attitudes


Factors Affecting Purchase Decisions

Consumer’s own preferences

Attitudes of others

Unanticipated situational factors


Postpurchase Behaviour

Postpurchase satisfaction

Postpurchase actions

Postpurchase product uses


Postpurchase BehaviourBELL CANADA

• Bell Canada is a leader in reducing customer attrition

• Agents are encouraged to approach “at risk” customers to identify problems ahead of time

© Copyright 2008 Pearson Education Canada

• Bell’s customer service department compares Bell’s offers with the competition in real time and shares this information with its marketing department for action

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Figure 5.5 How Customers Use and Dispose of Products


For Discussion

How might time-starvation affect consumer needs and wants?

What businesses developed in

response to time-starved consumers?


A FRAMEWORK for MARKETING MANAGEMENT Kotler KellerCunningham Chapter 5 Analyzing Consumer Markets.

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