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
Cultural Factors
Factors

Social
Social Factors
Factors

Personal
Personal Factors
Factors

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 What is Culture?

Culture is the fundamental determinant

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

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 Subcultures

Nationalities
Nationalities

Religions
Religions

Racial
Racial groups
groups

Geographic
Geographic regions
regions

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 David’s Bridal Targets the Latino Sub-
Culture with its Collection of
Quinceañera 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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 • Upper upper(social elite who live on inherited
wealth)
• Lower upper(person usually from middle
class who have earned income through
exceptional ability in business)
• Upper middle(concerned with careers)
• Middle class(average pay)
• Upper lower(living standard above poverty)
• Lower lower (charity)

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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
Membership groups
groups

Primary
Primary groups
groups

Secondary
Secondary groups
groups

Aspirational
Aspirational groups
groups

Dissociative
Dissociative groups
groups
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 • Reference groups(direct indirect influence on
person attitude)
• Membership(direct influence)
• Primary (family, friends)vs. secondary
(professionals, religious)
• Aspirational(hopes to join) vs. dissociative(values
an individual reject)
• Family
• Social roles and statuses

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 Family Distinctions
Affecting Buying Decisions

• Family of Orientation(parents
and siblings)
• Family of Procreation
(spouse and children)

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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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 How and Why Consumers Buy

VALS 2 classifies U.S. adults into

eight psychographic groups
• Actualizers • Believers
• Fulfilleds • Strivers
• Achievers • Makers
• Experience • Strugglers
(high resources) (lower resources)

To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in

 The Family Life Cycle

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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

Maslow’s Herzberg’s
Freud’s 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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 Maslow’s Hierarchy of Needs

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 Herzberg’s Two-Factor Theory

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 Perception

Selective Attention

Selective Retention

Selective Distortion

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 Figure 6.3 State Farm Mental Map

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 Consumer Buying Decision
Process

Understand • Initiator(idea of
buying product)
• Buying roles • Influencer(influence
• Buying behavior decision)
• Buying decision • Decider(what and
process how to buy)
• Buyer
• User
To accompany A Framework for Marketing Management, 2nd Edition Slide 30 in
 Consumer Buying Decision
Process

Understand • Complex buying

behavior
• Buying roles • Dissonance-reducing
buying behavior
• Buying behavior • Habitual buying
• Buying decision behavior
process • Variety-seeking
buying behavior

To accompany A Framework for Marketing Management, 2nd Edition Slide 31 in

 Consumer Buying Decision
Process

Understand • Complex buying

behavior
• Buying roles • Dissonance-reducing
buying behavior
• Buying behavior • Habitual buying
• Buying decision behavior
process • Variety-seeking
buying behavior

To accompany A Framework for Marketing Management, 2nd Edition Slide 32 in

 • Complex buying behaviour occurs
when the consumer is highly involved
with the purchaseand when there are
significant differences between brands.
This behaviour can be associated with
thepurchase of a new home or a
personal computer

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 • Dissonance-reducing buying
behaviouroccurs when the consumer
is highly involved but sees little
difference between brands. This is
likely to be the case with
the purchase of a lawn mower or a
diamond ring.

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 • Habitual Buying Behavior refers to situations
where a consumer has low involvement in
a purchase, and is perceiving very few
significant differences between brands in a given
product category.
• Variety Seeking Buying Behavior refers to
situations where there is low consumer
involvement, but the consumer perceives
significant differences between the brand options
in front of them. In variety seeking situations
consumers tend to do a lot of brand switching

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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 Consumer’s Evaluation of
Brand Beliefs About Laptops

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 Figure 6.6 Stages between Evaluation
of Alternatives and Purchase

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 Perceived Risk
Functional
Functional

Physical
Physical

Financial
Financial

Social
Social

Psychological
Psychological

Time
Time

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 Figure 6.7 How Customers Use and
Dispose of Products

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