CH 6

ANALYZING CONSUMER MARKETS

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.

SUBCULTURES

Nationalities

Religions

Racial groups

Geographic regions

SOCIAL CLASSES

Upper uppersLower uppersUpper middlesMiddle class

Working classUpper lowersLower lowers

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

SOCIAL FACTORS

Referencegroups

Social roles

Statuses

Family

REFERENCE GROUPS

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups

ROLES AND STATUS

What degree of status is associated with various occupational roles?

PERSONAL FACTORS

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle

THE FAMILY LIFE CYCLE

BRAND PERSONALITY

Sincerity

Excitement

Competence

Sophistication

Ruggedness

LIFESTYLE INFLUENCES

Multi-tasking

Time-starved

Money-constrained

FAYSAL BANK OF PAKISTAN HAS EXTENDED BANKING

HOURS FOR TIME-PRESSED EXECUTIVES.

FIGURE 6.1 MODEL OF CONSUMER

BEHAVIOR

KEY PSYCHOLOGICAL PROCESSES

Motivation

MemoryLearning

Perception

MOTIVATION

C O P Y R I G H T © 2 0 0 9 D O R L I N G K I N D E R S L E Y ( I N D I A ) P V T . L T D . 6 - 1 7

Freud’sTheory

Behavioris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behavioris driven by the lowest, unmet need

Herzberg’sTwo-Factor

Theory

Behavior isguided by motivating and hygiene

factors

MASLOW’S HIERARCHY OF NEEDS

HERZBERG’S TWO-FACTOR THEORY

PERCEPTION

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion

FIGURE 6.4 CONSUMER BUYING PROCESS

Problem Recognition

Information Search

Evaluation

Purchase Decision

PostpurchaseBehavior

SOURCES OF INFORMATION

Personal

ExperientialPublic

Commercial

FIGURE 6.6 STAGES BETWEEN EVALUATION OF ALTERNATIVES

AND PURCHASE

PERCEIVED RISK

Functional

Physical

Financial

Social

Psychological

Time

FIGURE 6.7 HOW CUSTOMERS USE AND DISPOSE OF

PRODUCTS

RURAL CONSUMER BEHAVIOUR

• Rural consumers are more brand loyal• Restrictions on consumption• Collective consumption behavior: for family

rather than individual• Seasonality of consumption based on

seasonality of agricultural production/income• Specific patterns in the five-stage buying

decision process

MENTAL ACCOUNTING

Consumers tend to…

Segregate gains

Integrate losses

Integrate smaller losses with larger gains

Segregate small gains from large losses