ANALYZING

CONSUMER MARKET
 SEQUENCE OF THE LECTURE

● What influences consumer behavior?

● What major psychological processes influence consumer
responses to the marketing program?
● Consumer Buying Process
What Influences Consumer
Behavior?

Cultural Factors

Social Factors

Personal Factors
 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.
 Social Factors

Reference groups Family

Social Roles Statuses

 Reference Groups

Reference groups are all the groups that have a direct (face to face) or indirect influence on
attitudes or behavior. Reference groups influence members in at least three ways:

● expose an individual to new behaviors and lifestyles

● influence attitudes and self-concept
● create pressures for conformity that may affect product and brand choices.
 Reference Groups

People are also influenced by groups to which they do not belong:

● Aspirational groups are those a person hopes to join

● Dissociative groups are those whose values or behavior an individual rejects.

Where reference group influence is strong, marketers must determine how to reach and
influence the group’s opinion leaders.
 Family

FAMILY is the most important consumer buying organization in society and family members
constitute the most influential primary reference group.
 Roles and Status

social roles and status are the groups, family, clubs, and organizations to which a person
belongs that can define role and social status.
Personal Factors
 Age and Life Cycle Stage

● Our taste in food, clothes, furniture, and recreation is often

related to our age.
● It is also shaped by the family life cycle and the number, age
and gender of people in the household at any point in time.
 Occupation and Economic Circumstances

● Occupation also influences consumption patterns.

● Product and brand choice are also affected by economic
circumstances: spendable income ,savings ,assets ,debts ,
borrowing power, and attitudes toward spending and saving
 Personality and Self-concept

● Personality. Each person has personality characteristics that influence his or her buying
behavior. Personality means a set of distinguishing human psychological traits that lead
to relatively consistent and enduring responses to environmental stimuli (including
buying behavior).
● Self Concept. It is how we view ourselves. Consumers often choose and use brands that
relate with their actual self-concept , although the match may instead be based on the
consumer’s ideal self-concept (how we would like to view ourselves) or even on others’
self-concept(how we think others see us)
 Lifestyle and Values

● A lifestyle is a person’s pattern of living in the world as

expressed in activities, interests and opinions. It portrays the
person interacting with his or her environment.
● Values are the belief systems that underlie attitudes and
behaviors. Values go much deeper than behavior or attitude and
determine people’s choices and desires over the long term.
 Motivation

● Freud’s Theory
● Maslow’s Theory
● Herzberg’s Theory
 Motivation

● Freud’s Theory - Sigmund Freud assumed the psychological forces shaping

people’s behavior are largely unconscious, and that a person cannot fully
understand his or her own motivations.
● Maslow’s Theory - Abraham Maslow explained that human needs are arranged in
a hierarchy
 Motivation

Herzberg’s Theory. Frederick Herzberg developed a two factor theory that

distinguishes dissatisfiers (factors that cause dissatisfaction) from satisfiers (factors that
cause satisfaction).
 Perception

Perception is the process by which we select, organize, and interpret information inputs to
create a meaningful picture of the world.

There are three perceptual processes:

● selective attention
● selective distortion
● selective retention
 Learning and Memory

● Learning induces changes in our behavior arising from experience.

● Memory may be short term or long term. Short-term memory (STM) is a
temporary and limited repository of information and Long-term memory (LTM) is a
more permanent, essentially unlimited repository.
Consumer Buying Process
 Consumer Buying Process

● The buying process starts when the buyer recognizes a problem or need triggered by
internal or external stimuli. With an internal stimulus, one of the person’s normal needs
such as hunger, thirst ,etc rises . A need can also be aroused by an external stimulus
such as a friend’s new car or a television ad for a vacation which inspires thoughts about
the possibility of making a purchase.
● The person then enters an information search: looking for reading material, phoning
friends, going online, and visiting stores to learn about the product
 Consumer Buying Process

Evaluation. The consumer sees each product as a bundle of attributes with varying abilities to
deliver the benefits. The attributes of interest to buyers vary by product. Consumers will pay
the most attention to attributes that deliver the sought-after benefits.
 Consumer Buying Process

● Purchase Decision. After Evaluation , two factors can intervene between the purchase
intention and the purchase decision:
○ The attitudes of others. The influence of another person’s attitude depends on two things:
■ The intensity of the other person’s negative attitude toward our preferred alternative
■ Our motivation to comply with the other person’s wishes.
● Unanticipated situational factors or perceived risk may cause a person to change the
purchase intention.
 Consumer Buying Process

● • Post Purchase Satisfaction. Satisfaction is a function of the closeness between

expectations and the product’s perceived performance.If performance falls short of
expectations, the consumer is disappointed; if it meets expectations, the consumer is
satisfied; if it exceeds expectations, the consumer is delighted
● Postpurchase Actions .A satisfied consumer is more likely to purchase the product again
and will also tend to say good things about the brand to others. Dissatisfied consumers
may abandon or return the product.
● Postpurchase Uses and Disposal
REFERENCES

1. https://www.google.com/search?biw=1745&bih=886&tbm=isch&sa=1&ei=fghkXcCtOIW5wAP8woy4BA
&q=family&oq=family&gs_l=img.3..0i67l10.1335776.1336830..1337055...0.0..0.236.1050.0j2j3......0....1.
.gws-wiz-img.......0.P4idNX40Tgc&ved=0ahUKEwjA5IqV-
qDkAhWFHHAKHXwhA0cQ4dUDCAY&uact=5#imgrc=W3vlLbxysFuzfM:
2. https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKE
wigscGwgKHkAhXIc3AKHUS8BtAQjhx6BAgBEAI&url=https%3A%2F%2Fmedium.com
%2Fchristian-perspectives-society-and-life%2Fstatus-and-role-of-a-christian-in-the-
world-
328f90ee667f&psig=AOvVaw2Mmtrh7uQjd6B6Xyr3tx1M&ust=1566924902903524
3. https://www.google.com/search?q=role+and+status&tbm=isch&tbs=rimg:CVRhkW0iybb3ImBQQAzDv4l
1OhmMBA52gSNu24oPEFmD-gZ7QlKKkUUEEXfRR9IPqiGcTVJ46rOZiIVX-
THura0BV04rWH0OcfY7xEUPYjFCCG5jSw6hIRg15qFe4ZvRyAZ43XKi_1rwVWKAqEglQQAzDv4l1Oh
FfeqvOZO2nXyoSCRmMBA52gSNuEUV1GMjwTCNhKhIJ24oPEFmD-
gYRE02clTm0JYMqEgl7QlKKkUUEERE2ta8tQ2DELioSCXfRR9IPqiGcEQtMNqZWHesoKhIJTVJ46rO
ZiIUR6ah5O3V3bG0qEglX-
THura0BVxEGxEEqMg4bnioSCU4rWH0OcfY7EextvS9rijXwKhIJxEUPYjFCCG4RETxz4a603L0qEgljS
w6hIRg15hE7xcvronz9HioSCaFe4ZvRyAZ4EYvnl3APQCbQKhIJ3XKi_1rwVWKARCvJfI-
REFERENCES

● https://www.google.com/search?biw=1745&bih=886&tbm=isch&sa=1&ei=EhVkXa-
EC8uGoATJ1qXoCA&q=Freud%E2%80%99s+Theory+in+marketing&oq=Freud%E2%80%99s+Theory
+in+marketing&gs_l=img.3...23975.28038..28134...7.0..0.181.2552.0j17......0....1..gws-wiz-
img.......35i39.5HwTCosXEj8&ved=0ahUKEwiv1ZKUhqHkAhVLA4gKHUlrCY0Q4dUDCAY&uact=5#im
gdii=8574Kc2e7lcpfM:&imgrc=hxyaFoeSAyuYsM:
● https://nraomtr.blogspot.com/2011/12/analysis-of-consumer-
markets.html?m=1&fbclid=IwAR0lUXSsjyUywLNXv7Sxf2EOphmwhXHA7VWLII2u5B_0cSnLcOZtnMJc
fm0