Download - 14 CE Chapter 6 - Analyzing Consumer Markets

Copyright 2013 Pearson Canada Inc.

Analyzing Consumer Markets

Marketing Management Canadian Fourteenth Edition

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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?

In what ways do consumers stray from a deliberate rational decision process?

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Consumer Behaviour Consumer behavior is the study of how

individuals, groups, and organizations select,

buy, use, and dispose of goods, services,

ideas, or experiences to satisfy their needs

and wants. Marketers must fully understand

both the theory and reality of consumer

behavior.

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What Influences Consumer

Behavior?

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Cultural Factors

Social Factors

Personal Factors


What is Culture? Culture is the fundamental determinant of a

persons wants and behaviors acquired through socialization processes with family

and other key institutions.

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Subcultures Nationalities

Religions

Racial groups

Geographic regions

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Social Classes

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Upper uppers

Lower uppers

Upper middles

Middle

Working

Upper lowers

Lower lowers


Social Factors

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Reference groups

Family

Social roles

Statuses


Reference Groups Membership groups

Primary groups

Secondary groups

Aspirational groups

Disassociative groups

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Family The family of orientation consists of

parents and siblings.

A more direct influence on everyday buying behavior is the family of procreationnamely, the persons spouse and children.

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Personal Factors

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Age

Life cycle stage

Occupation

Wealth

Personality

Values

Lifestyle

Self-concept


Age and Stage in the Life

Cycle Our taste in food, clothes, furniture, and

recreation is often related to our age.

Consumption is also shaped by the family life cycle and the number, age, and gender of

people in the household at any point in time.

Adults experience certain passages or transformations as they go through life.

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Occupation and Economic

Circumstances Occupation also influences consumption

patterns.

As the recent recession clearly indicated, both product and brand choice are greatly affected

by economic circumstances:

spendable income (level, stability, and time pattern),

savings and assets (including the percentage that is liquid),

debts, borrowing power, and attitudes toward spending and saving.

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Personality and Brand Personality Personality - a set of distinguishing human

psychological traits that lead to relatively

consistent and enduring responses to

environmental stimuli (including buying

behaviour).

Brand personality - the specific mix of human traits that we can attribute to a

particular brand.

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Brand Personality Sincerity

Excitement

Competence

Sophistication

Ruggedness

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Self Concept Consumers often choose and use brands

with a brand personality consistent with their

actual self-concept (how we view ourselves),

although the match may instead be based on

the consumers ideal self-concept (how we would like to view ourselves) or even on

others self-concept (how we think others see us).

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Lifestyle and Values A lifestyle is a persons pattern of living in

the world as expressed in activities, interests,

and opinions.

Marketers search for relationships between their products and lifestyle groups.

Core values are the belief systems that underlie attitudes and behaviours.

Marketers who target consumers on the basis of their values believe that with appeals to peoples inner selves, it is possible to influence their outer

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Table 6.2 LOHAS Market

Segments

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Figure 6.1 Model of

Consumer Behavior

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Motivation

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Freuds Theory

Behavior

is guided by

subconscious

motivations

Maslows Hierarchy

of Needs

Behavior

is driven by

lowest,

unmet need

Herzbergs Two-Factor

Theory

Behavior is

guided by

motivating

and hygiene

factors


Figure 6.2 Maslows Hierarchy of Needs

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Perception Selective attention

Selective retention

Selective distortion

Subliminal perception

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Learning Learning induces changes in our behavior

arising from experience.

A drive is a strong internal stimulus impelling action.

Cues are minor stimuli that determine when, where, and how a person responds.

Discrimination means we have learned to recognize differences in sets of similar stimuli

and can adjust our responses accordingly.

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Emotions Consumer response is not all cognitive and

rational; much may be emotional and invoke

different kinds of feelings.

A brand or product may make a consumer feel proud, excited, or confident. An ad may

create feelings of amusement, disgust, or

wonder.

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Memory Cognitive psychologists distinguish between

short-term memory (STM)a temporary and limited repository of informationand long-term memory (LTM)a more permanent, essentially unlimited repository.

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Memory Processes Memory encoding describes how and

where information gets into memory.

Memory retrieval is the way information gets out of memory.

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Figure 6.3 Hypothetical Dole

Mental Map

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Figure 6.4 Five- Stage Model of

the Consumer Buying Process

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Problem Recognition

Information Search

Evaluation of alternatives

Purchase Decision

Postpurchase Behavior


Sources of Information

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Commercial Personal

Public Experiential


Figure 6.5 Successive Sets in

Decision Making

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Table 6.4 A Consumers Brand Beliefs about Laptop Computers

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Figure 6.6 Steps Between

Alternative Evaluation & Purchase

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Non-Compensatory Models of

Choice Conjunctive

Lexicographic

Elimination-by-aspects

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Perceived Risk Functional

Physical

Financial

Social

Psychological

Time

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Figure 6.7 How Customers

Use or Dispose of Products

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Moderating Effects on

Consumer Decision Making The manner or path by which a consumer

moves through the decision-making stages

depends on several factors, including the

level of involvement and extent of variety

seeking.

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Decision Heuristics Availability

Representativeness

Anchoring and adjustment

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Framing Decision framing is the manner in which

choices are presented to and seen by a

decision maker.

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Mental Accounting Consumers tend to

Segregate gains

Integrate losses

Integrate smaller losses with larger gains

Segregate small gains from large losses

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