Analyzing consumer markets

Marketing ManagementArab World EditionKotler, Keller, Hassan, Baalbaki, and Shamma

Chapter 6

Analyzing Consumer Markets

Chapter Questions

1. How do consumer characteristics influence buying behavior?

2. What major psychological processes influence consumer responses to the marketing program?

3. How do consumers make purchasing decisions?

4. How do marketers analyze consumer decision making?

Copyright © 2012 Pearson Education 6-3

؟ المستهلك سلوك على يؤثر مالذىChapter Question 1:

How do consumer characteristics influence

buying behavior?

الثقافية العوامل

االجتماعية العوامل

الشخصية العوامل


Chapter Question 1: How do consumer

characteristics influence buying behavior?


Cultural 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.




Cultural Factors

الفرعية الثقافات

• الجنسيات

• الديانة

• العرقية الجماعات

• الجغرافية المنطقة




Cultural Factors

Multicultural marketing

The Marketing Insight box considers the challenges for marketers in understanding the varied ethnic groups in the UAE




Social Factors

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)

•Individuals can move up or down the social-class ladder over time




Social Factors

Social factors affect our buying behavior, including:

•Reference groups

•Family

•Social roles

•Statuses




Personal Factors

A buyer’s decisions are influenced by personal characteristics:

• Age

• Life cycle stage

• Occupation

• Wealth

• Personality

• Values

• Lifestyle

• Self-concept

Presentation Title runs here l 00/00/0011




Personal Factors

Brand personality is the specific mix of human traits that we

can attribute to a particular brand.

The following traits have been identified:

.(down-to-earth, honest, wholesome, and cheerful) الصدق.1

.(daring, spirited, imaginative, and up-to-date) االثارة.2

.(reliable, intelligent, and successful) الكفاءة .3

.(upper-class and charming) التطور .4

.(outdoorsy and tough) الغلظة .5




Personal Factors

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

in activities, interests, and opinions.

• Marketers search for relationships between their products and life

style groups.

• Consider whether a customer is:

o Multi-tasking

o Time-starved

o Money-constrained

The “convenience involvement segment” of the food market is receptive to time-saver products such as Indomie noodles, which allow them to

easily and quickly prepare a hot meal.




Personal Factors

• LOHAS – Lifestyles of health and sustainability

Table 6.1: LOHAS Segmentation

Key Psychological ProcessesChapter Question 2:

What major psychological processes influence

consumer responses to the marketing program?


Fig. 6.1: Model of Consumer Behavior

Key Psychological ProcessesChapter Question 2:

What major psychological processes influence

consumer responses to the marketing program?


• Motivation

• Perception

• Learning

• Memory

Chapter Question 2: What major psychological

processes influence consumer responses to the

marketing program?


Motivation: Freud, Maslow, Herzberg

Freud’s

Theory

Behavior

is guided by

subconscious

motivations

Maslow’s

Hierarchy

of Needs

Behavior

is driven by

lowest,

unmet need

Herzberg’s

Two-Factor

Theory

Behavior is

guided by

motivating

and hygiene

factors



marketing program?


Motivation: Maslow’s Hierarchy of Needs

• Physiological needs

• Safety needs

• Social needs

• Esteem needs

• Self-actualization needs

Fig. 6.2: Maslow’s Hierarchy of Needs



marketing program?


Perception

People can emerge with different perceptions of the same

object because of three perceptual processes:

• Selective attention

• Selective retention

• Selective distortion



marketing program?


Learning

• When we act, we learn

• Learning causes changes in behavior, arising from experience

• Learning theory can be used by marketers to understand consumer behavior



marketing program?


Memory

• Short-term memory (STM)—a temporary and limited repository of information

• Long-term memory (LTM)—a more permanent, essentially unlimited repository

• Memory encoding—how and where information gets into memory

• Memory retrieval—how and from where information gets out of memory

• Example of Chipsy:

Fig. 6.3: Hypothetical Mental Map for Chipsy

The Buying-Decision Process:The Five-Stage Model

Chapter Question 3: How do consumers make

purchasing decisions?


Some key consumer behavior questions identified by George and Michael Belch are:

• ‘who, what, when, where, how, and why’ of buying products

•Perception of customers

•Attitudes of customers

•Social factors

•Forming decision processes

•Influence of demographic

The Buying-Decision Process:The Five-Stage Model




Fig. 6.4: Five-Stage Model of the Consumer Buying

Process




Problem Recognition

The buying process starts when the buyer recognizes a problem or need




Information Search

Information

sources:

1.Personal

2.Commercial

3.Public

4.Experiential

Search dynamics:Fig. 6.5: Successive Sets Involved in

Consumer Decision Making




Evaluation of Alternatives

We can often segment the market for a product according to

attributes important to different consumer groups.

Tetra Pak changed consumers’ attitudes towards dairy products with it’s Tasbeera snacks.




Expectancy-Value Model

Consumers evaluate products and services by combining their

brand beliefs, positive and negative, according to their weighted

importance.

Table 6.2: A Consumer’s Brand Beliefs about Laptop Computers




Purchase Decision

Non-compensatory models of choice:

•Conjunctive

•Lexicographic

•Elimination-by-aspects

Intervening factors

Two general factors can intervene between the purchase intention and the purchase decision:

•Attitudes of others

•Unanticipated situational factors

Fig. 6.6: Steps Between Evaluation of

Alternatives and a Purchase Decision




Purchase Decision

Perceived risk:

•Functional

•Physical

•Financial

•Social

•Psychological

•Time

Other Theories of ConsumerDecision Making




Level of Consumer Involvement

• Elaboration Likelihood Model

• Low-involvement marketing strategies

• Variety-seeking buying behavior

Decision Heuristics and Biases

• Availability

• Representativeness

• Anchoring and adjustment




Mental Accounting

Consumers tend to…

• Segregate gains

• Integrate losses

• Integrate smaller losses with larger gains

• Segregate small gains from large losses

Chapter Question 4: How do marketers analyze consumer decision making?


How can marketers learn about the stages in the buying process for their product?

•Introspective method – how would they act themselves?

•Retrospective method – ask buyers to recall the events leading to their purchase

•Prospective method – ask consumers who plan to buy a product about the steps in their buying process

•Prescriptive method – the ideal way to buy

Trying to understand the customer’s behavior in connection with a product has been called mapping the customer’s consumption system.

Profiling the Customer Buying-Decision Process

Credits

• Slide 1 Christian Short Photography, photographersdirect.com

• Slide 13 Art Directors and TRIP Photo Library: Helene Rogers

• Slide 14 LOHAS Market Segments, www.lohas.com. Reproduced with permission

• Slide 18 Motivation and Personality, 3rd edition, Prentice Hall (Maslow, A.H., and Frager, R.D., Fadiman, J. (eds), 1987)

• Slide 26 Logo courtesy TetraPak. Reproduced with permission

Documents

Analyzing consumer markets