Analysing Consumer Market

MARKETING MANAGEMENT 12th edition 6 Analyzing Consumer Markets

Kotler

Keller

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? 

6-2

T24

Fig. 6.01

Model of Buyer Behavior Marketing Other stimuli stimuli Product Price Place Promotion

Economic Technological Political Cultural

Buyer’s decision Buyer’s characteristics process Cultural Social Personal Psychological

Problem recognition Information search Evaluation Decision Postpurchase behavior

Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount

What Influences Consumer Behavior? Cultural factors  Social factors  Personal factors 

6-4

Culture The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions.

6-5

Subcultures Nationalities  Religions  Racial groups  Geographic regions  Special interests 

6-6

Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers 6-7

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. 

6-8

Social Factors Reference groups

Family

Social roles

Statuses

6-9

Reference Groups Membership  Primary  Secondary  Aspirational  Dissociative 

6-10

Family 



Family of Orientation  Religion  Politics  Economics Family of Procreation  Everyday buying behavior

6-11

Personal Factors    

Age Life cycle stage Occupation Wealth

   

Personality Values Lifestyle Self-concept

6-12

Brand Personality Sincerity  Excitement  Competence  Sophistication  Ruggedness 

6-13

Key Psychological Processes Motivation  Perception  Learning  Memory 

6-14

Motivation Freud’s theory  Maslow’s hierarchy of needs  Herzberg’s two-factor theory 

6-15

Perception Selective attention  Selective retention  Selective distortion  Subliminal perception 

6-16

Five-Stage Consumer Buyer Decision Process Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior

T26

Figure 6.4 Consumer Buying Process Problem recognition  Information search  Evaluation  Purchase decision  Postpurchase behavior 

6-18

Sources of Information Personal  Commercial  Public  Experiential 

6-19

Non-compensatory Models of Choice Conjunctive : Minimum cutoff  Lexicographic : perceived most important attribute  Elimination-by-aspects : Attribute selected probabilistically 

6-20

Perceived Risk   

Functional Physical Financial

  

Social Psychological Time

6-21

Fig. 6.07

Steps Between Evaluation of Alternatives and a Purchase Decision

T27

Attitude of others Evaluation of alternatives

Purchase intention

Purchase decisioin Unanticipated situational factors

Mental Accounting 

Consumers tend to…  Segregate

gains  Integrate losses  Integrate smaller losses with larger gains  Segregate small gains from large losses

6-23

Fig. 6.08

How Customers Use or Dispose of Products Get rid of it temporarily

Rent it Loan it

Give it away Trade it

Product

Get rid of it permanently

Keep it

Use for original purpose Convert to new purpose Store it

Sell it Throw it away

T28

To be (re)sold To be used Direct to consumer Through middleman To intermediary