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Analyzing Consumer Markets

Marketing Management
A South Asian Perspective, 13th ed

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?
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Tata Steel used steeljunction to encourage consumers to go steel shopping and to develop deeper understanding of individual and household customers.
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What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors

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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
Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
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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

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Social Factors

Reference groups

Family

Social roles

Statuses

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Reference Groups
Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups
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Provogue uses teenage icons as brand ambassadors and a youth targeted website to connect to its customers

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Radio Shack Targets Women with Female Store Managers

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Roles and Status

What degree of status is associated with various occupational roles?

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Personal Factors
Age
Selfconcept Lifestyle Values Personality Life cycle stage

Occupation
Wealth

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The Family Life Cycle

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Brand Personality
Sincerity
Excitement Competence

Sophistication
Ruggedness
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Lifestyle Influences

Multi-tasking

Time-starved
Money-constrained

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Faysal Bank of Pakistan has extended banking hours for time-pressed executives.

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Table 6.2 LOHAS (Lifestyles of Health and Sustainability) Market Segments

Sustainable Economy Healthy Lifestyles Ecological Lifestyles Alternative Health Care Personal Development

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Figure 6.1 Model of Consumer Behavior

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Key Psychological Processes

Motivation

Perception

Learning

Memory

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Motivation

Freuds Theory Behavior is guided by subconscious motivations

Maslows Hierarchy of Needs Behavior is driven by the lowest, unmet need

Herzbergs Two-Factor Theory Behavior is guided by motivating and hygiene factors

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Maslows Hierarchy of Needs

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Herzbergs Two-Factor Theory

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Perception
Selective Attention
Selective Retention Selective Distortion Subliminal Perception
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Figure 6.3 State Farm Mental Map

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Figure 6.4 Consumer Buying Process

Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior
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Problem Recognition

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Sources of Information

Personal

Commercial

Public

Experiential

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Figure 6.5 Successive Sets Involved in Consumer Decision Making

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Table 6.8 Sales and Product Life Cycle

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Figure 6.6 Stages between Evaluation of Alternatives and 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 and Dispose of Products

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Rural Consumer Behaviour

Rural consumers are more brand loyal Restrictions on consumption Collective consumption behaviour: for family rather than individual Seasonality of consumption based on seasonality of agricultural production/income Specific patterns in the five-stage buying decision process
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Other Theories of Consumer Decision Making

Involvement Elaboration Likelihood Model Low-involvement marketing strategies Variety-seeking buying behavior
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Decision Heuristics Availability Representativeness Anchoring and adjustment

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

Do you have rules you employ in spending money? Do you follow Thalers four principles in reacting to gains and losses?

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