6

Analyzing
Consumer Markets

Marketing Management, 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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 Crest Used Mobile Phones to Engage
Consumers in Its Irresistibility
Campaign

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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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 Davids Bridal Targets the Latino Sub-
Culture with its Collection of
Quinceaera Dresses

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 Fast Facts About
American Culture

The average American:

chews 300 sticks of gum a year
goes to the movies 9 times a year
takes 4 trips per year
attends a sporting event 7 times each year

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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
Family
groups

Social
Statuses
roles

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 Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups
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 Family Distinctions
Affecting Buying Decisions

Family of Orientation
Family of Procreation

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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
Self- Life cycle
concept stage

Lifestyle Occupation

Values Wealth
Personality

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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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 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

Maslows Herzbergs
Freuds Hierarchy Two-Factor
Theory of Needs Theory

Behavior Behavior Behavior is

is guided by is driven by guided by
subconscious the lowest, motivating
motivations unmet need 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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 Bahlsen Uses Crunchy Sounds to
Encode Brand Associations

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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 6.4 A Consumers Evaluation of
Brand Beliefs About Laptops

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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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 Other Theories of
Consumer Decision Making

Involvement Decision Heuristics

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

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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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