Analysing Consumer Market

MARKETING MANAGEMENT12th edition

6 Analyzing

Consumer Markets

Kotler Keller

6-2

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?

Model of Buyer Behavior

T24

Marketingstimuli

ProductPricePlacePromotion

Otherstimuli

EconomicTechnologicalPoliticalCultural

Buyer’s decisions

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

Buyer’scharacteristics

CulturalSocialPersonalPsychological

Buyer’s decisionprocess

Problem recognitionInformation searchEvaluationDecisionPostpurchase behavior

Fig. 6.01

6-4

What Influences Consumer Behavior?

Cultural factors Social factors Personal factors

6-5

Culture

The fundamental determinant of a person’s wants and behaviors

acquired through socializationprocesses with family

and other key institutions.

6-6

Subcultures

Nationalities Religions Racial groups Geographic regions Special interests

6-7

Social Classes

Upper uppersLower uppersUpper middlesMiddle class

Working classUpper lowersLower lowers

6-8

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.

6-9

Social Factors

Referencegroups

Social roles

Statuses

Family

6-10

Reference Groups

Membership Primary Secondary Aspirational Dissociative

6-11

Family

Family of OrientationReligionPoliticsEconomics

Family of ProcreationEveryday buying behavior

6-12

Personal Factors

Age Life cycle stage Occupation Wealth

Personality Values Lifestyle Self-concept

6-13

Brand Personality

Sincerity Excitement Competence Sophistication Ruggedness

6-14

Key Psychological Processes

Motivation Perception Learning Memory

6-15

Motivation

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

6-16

Perception

Selective attention Selective retention Selective distortion Subliminal perception

Five-Stage Consumer Buyer Decision Process

T26

ProblemProblemrecognitionrecognition

InformationInformationsearchsearch

Evaluation ofEvaluation ofalternativesalternatives

PurchasePurchasedecisiondecision

PostpurchasePostpurchasebehaviorbehavior

6-18

Figure 6.4 Consumer Buying Process

Problem recognition Information search Evaluation Purchase decision Postpurchase behavior

6-19

Sources of Information

Personal Commercial Public Experiential

6-20

Non-compensatory Models of Choice

Conjunctive : Minimum cutoff Lexicographic : perceived most important

attribute Elimination-by-aspects : Attribute selected

probabilistically

6-21

Perceived Risk

Functional Physical Financial

Social Psychological Time

Steps Between Evaluation of Alternatives and a Purchase Decision

T27

EvaluationEvaluationofof

alternativesalternatives

Fig. 6.07

Purchaseintention

Unantici-pated

situationalfactors

Attitudeof others

Purchasedecisioin

6-23

Mental Accounting

Consumers tend to…Segregate gains Integrate losses Integrate smaller losses with larger gainsSegregate small gains from large losses

How Customers Use orDispose of Products

T28

Product

Get rid of ittemporarily Loan it

Give itaway

Direct toconsumer

Fig. 6.08

Get rid of itpermanently

Keep it

Rent it

Store it

Convertto new

purpose

Use fororiginalpurpose

Trade it

Sell it

Throw itaway

Tointermediary

Throughmiddleman

To beused

To be(re)sold