Analyzing Consumer Markets and Consumer Buyer Behavior

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					Analyzing Consumer Markets and Consumer Buyer Behavior

Major aim of marketing: to meet & satisfy customers’ needs & wants.
The most important thing is to forecast where customers are moving, and be in front of them.

Consumer Buying Behavior
The central question for marketers :
“How do consumers respond to various

marketing efforts the company might use?”

Model of Buyer Behavior
Marketing and Other Stimuli
Marketing Product Price Place Promotion Other Economic Technological Political Cultural

Buyer’s Black Box
Buyer Characteristics Cultural Social Personal Psychological

Buyer Responses
Product Choice Brand Choice Dealer Choice

Buyer Decision Process Problem recognition Information search Evaluation Decision Postpurchase behavior

Purchase Timing Purchase Amount

Factors Influencing Consumer Behavior
Cultural

Social
•Culture •Subculture •Social class •Reference groups •Family •Roles and status

Personal
•Age and life-cycle •Occupation •Economic situation •Lifestyle •Personality and self-concept

Psychological
•Motivation •Perception •Learning •Beliefs and attitudes

BUYER

Factors Influencing Consumer Behavior: Cultural
Cultural
•Culture •Subculture •Social class

• Culture
Forms a person’s wants and behavior

• Subculture
Groups with shared value systems

• Social Class
Society’s divisions who share values, interests and behaviors

Factors Influencing Consumer Behavior: Social
• Reference Groups
Social
•Reference groups
•Family

• Membership • Aspirational
• Opinion Leaders • “Buzz marketing”

• Family
• Many influencers • Buyers vs. users

•Roles & status

• Roles and Status

Factors Influencing Consumer Behavior: Social (cont.)
• Ref. Groups : have a direct or
Social
•Reference groups
•Family

indirect influence on the person’s attitudes or behavior
to which a person belongs • primary groups • secondary groups

• Membership Groups  groups

•Roles & status

• Aspirational Groups  groups

to which a person would like to belong

Factors Influencing Consumer Behavior: Social (cont.)
• Opinion Leader  person within a reference group who exert influence on others
• offers advice or information about a specific product or product category, • can be found in all social classes

Social
•Reference groups
•Family

•Roles & status

Factors Influencing Consumer Behavior: Social (cont.)
• The most important consumerbuying organization in the society
Social
•Reference groups
•Family

• Roles and relative influence of family members in buying decisions

• Buying roles vary in different countries and social classes • Buying roles change with evolving life-styles
• joint decision making • women arising as active buyers • increasing role of children

•Roles & status

Factors Influencing Consumer Behavior: Social (cont.)
• The person’s position in each group  can be defined in terms of both role and status:
• A Role  consists of the activities that a person is expected to perform according to the people around him
• Each role  carries a status

Social
•Reference groups
•Family

•Roles & status

• A Status  is the general esteem given a role by society

Factors Influencing Consumer Behavior: Personal
Personal
•Age and life-cycle •Occupation •Economic situation •Lifestyle •Personality and self-concept

• Family Life Cycle  stages throughout which families pass as they mature over time
1. 2. 3. 4. 5. 6. 7. 8. 9. bachelor stage newly married couples, no children full nest 1; youngest child under 6 full nest 2; youngest child 6 or over full nest 3; older married couples with dependent children empty nest 1; older married couples no children with them empty nest 1; older married couples no children at home; retired solitary survivor, working solitary survivor, retired

Factors Influencing Consumer Behavior: Personal (cont.)
• Consumption patterns often shaped by: • occupation & • economic circumstances:
• • • • spendable income, savings and assets, debts, attitudes towards spending & saving.

Personal
•Age and life-cycle •Occupation •Economic situation •Lifestyle •Personality and self-concept

Factors Influencing Consumer Behavior: Personal (cont.)
Personal
•Age and life-cycle •Occupation •Economic situation •Lifestyle •Personality and self-concept

• Lifestyle  a person’s pattern of living as expressed in his activities, interests and opinions
• Psychographics  technique of measuring lifestyles and developing lifestyle classifications • Major dimensions measured are: • Activities (work, hobbies, social events, entertainment, shopping, sports,vacation) • Interests (family, home, job, recreation, fashion, food, media, achievements) • Opinions (themselves, social issues, politics, business, economics, products, future)

The VALS segmentation system:
An 8-part typology

Factors Influencing Consumer Behavior: Personal (cont.)
Personal
•Age and life-cycle • Occupation •Economic situation •Lifestyle •Personality and self-concept • Personality  a person’s unique characteristics that lead to relatively consistent and lasting responses to the environment
• Brand personality  specific mix of human traits that may be attributable to a particular brand

• Self-concept  the self image or general picture that people have of themselves
• Person’s actual self-concept  how she views herself • Ideal self-concept  how she would like to view herself • Others’ self-concept  how she thinks others see her

Factors Influencing Consumer Behavior: Psychological
• Freud’s Theory : Psychological
Psychological
•Motivation •Perception •Learning •Beliefs & attitudes

forces shaping people’s behavior  largely unconscious
• A person cannot understand fully his/her own motivations • Motivation research  looks for hidden and subconscious motivation
• in-depth interviews / laddering • projective techniques (i.e. word association, sentence completion, picture interpretation, role playing)

• Maslow’s Theory : Maslow ordered
needs based on how pressing they are to the consumer

Factors Influencing Consumer Behavior: Psychological (cont.)
• Research found: • Consumers resist prunes because prunes are wrinkled looking and remind people of old age. • Men smoke cigars as an adult version of thumb sucking. • Women prefer vegetable shortening to animal fats because the latter arouse a sense of guilt over killing animals.

Psychological Factors:

Maslow’s Hierarchy of Needs

Factors Influencing Consumer Behavior: Psychological (cont.)
• Perception  process by which people select, organize and interpret information to form a meaningful picture of the world
1.Selective attention  tendency of people to eliminate most of the information to which they are exposed 2.Selective distortion  to interpret information in a way that will support what they already believe 3.Selective retention  to retain only part of the information to which they are exposed

Psychological
•Motivation •Perception •Learning •Beliefs & attitudes

Factors Influencing Consumer Behavior: Psychological (cont.)
• Learning  changes in a person’s behavior, arising from experience • Learning occurs through the interplay of: drives, stimuli, cues, responses and reinforcement
• A drive: strong internal stimulus that calls for action • Cues: minor stimuli that determine when, where and how the person responds • If the experience is rewarding  the response will be positively reinforced

Psychological
•Motivation •Perception •Learning •Beliefs & attitudes

Factors Influencing Consumer Behavior: Psychological (cont.)
• Through doing and learning  people acquire beliefs and attitudes  have influence on buying behavior • A Belief  descriptive thought that a person holds about something

Psychological
•Motivation •Perception •Learning •Beliefs & attitudes

• An Attitude  a person’s consistently favorable or unfavorable evaluations, feelings and tendencies toward an object or idea


				
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