analyzng cnsmr mkt

7/27/2019 analyzng cnsmr mkt

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Consumer Behavior

Kotler Keller


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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?


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6-3

Emerging Trends in Consumer Behavior

Metrosexual

Straight urban manwho enjoys shopping

and using grooming

products
http://images.google.co.in/imgres?imgurl=http://cricketnow.in/wp-content/uploads/2006/10/mahendra-singh-dhoni.jpg&imgrefurl=http://cricketnow.in/india/mahendra-singh-ms-dhoni.php&h=500&w=480&sz=138&tbnid=F1EpFU2Mf-kNIM:&tbnh=130&tbnw=125&prev=/images%3Fq%3Dm%2Bs%2Bdhoni%26um%3D1&start=1&sa=X&oi=images&ct=image&cd=1


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What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors


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Culture

The fundamental determinant ofa persons wants and behaviors

acquired through socialization

processes with family

and other key institutions


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Subcultures

Nationalities

Religions

Racial groups

Geographic regions

Special interests


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Social Factors (Contd)

Reference Group

Membership Group

Primary Group

Secondary Group

Aspirational Group

Dissociative Group

Opinion Leader


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Personal factors (contd)

Age & Stage in the life cycle Occupation & economic circumstances

Lifestyles & Values

Money constrained hand to mouth category (EDLP

everyday low pricing, Walmart, Vishal,6Ten,Subhiksha)

Time constrained, multitasking category (convenience,home delivery, check pick-up, RTE, RTS, convergenttechnology, many in one gadgets etc)

LOHAS (customers with conscience; Lifestyle ofHeallth & Sustainability) Body Shop, PETA, Organicfarming, non-azo dye textiles, pesticide free colas, ratdropping free grains!!!


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Personal factors (contd)

can be of religious fervour too (Gulf customersshunning Danish products due to cartoon controversy,some section of Indian population being urged to shunGodrej products for hosting Salman Rushdie etc, somecommunities being asked not to buy Fida Hussain

paintings, Aamir khan film tickets and some othercommunity being asked not to read Rushdie, Manto,Ismat Chugtie, Taslima Nasreen books etc)

Convenience Involvement segment precookedpackaged food for working moms, cut vegetables inReliance Fresh & other malls, Meal Kits in Home

Core Values


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Social Classes in Western

Markets

Upper uppers

Lower uppersUpper middles

Middle class

Working class

Upper lowers

Lower lowers
http://factfinder.census.gov/


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Social Classes in Developing Markets

Upper uppers (Uber Rich)

Lower uppers

Upper middles Middle class

Working class

Upper lowers (Aspiring)

Lower lowers (BPL Below PovertyLine, Destitute)

Upwardly Mobile

In Indian Scenario SEC (socioeconomic classification) is used using

Education and earning combination as the deciding metric.


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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


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Social Factors

Reference

groups

Social

rolesStatuses

Family


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Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups


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Family

Family of Orientation

Religion

Politics Economics

Family of Procreation

Everyday buyingbehavior


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Targeting Women and Their Families


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Roles and Statuses

What degree of status isassociated with various

occupational roles?
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Personal Factors

Age

Values

Life cycle

stage

Occupation

Personality

Self-

concept

Wealth

Lifestyle


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Behavior changes

according to life

cycle stage

Family

Psychological

Critical life events


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Brand Personality

Sincerity

Excitement

Competence

Sophistication

Ruggedness
http://www.mtv.com/


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Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained


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Model of Consumer Behavior


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Key Psychological Processes

Motivation

MemoryLearning

Perception


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Motivation

Freuds

Theory

Behavior

is guided by

subconscious

motivations

Maslows

Hierarchy

of Needs

Behavior

is driven by

lowest,

unmet need

Herzbergs

Two-FactorTheory

Behavior is

guided bysatisfiers and

dissatisfiers


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Maslows Hierarchy of Needs


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Herzbergs Two-Factor Theory


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Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion


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Dole Mental Map


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Encoding Brand Associations


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Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase

Behavior


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Problem Recognition


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Successive Sets

Evaluation of Attributes


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Evaluation of Attributes


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Expectancy Value Model

Attribute

Computer

Brand

Memor

y

Graphi

cs

Size &

Weight

Pric

e

Perceived

value

A 10 8 6 4 8

B 8 9 8 3 7.8

C 6 8 10 5 7.3

D 4 3 7 8 4.7

Weights: 40 % for memory, 30 % for graphics, 20 % for size & weight and

10 % for price

St b t E l ti f


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Stages between Evaluation of

Alternatives and Purchase
http://d/content/chapter_06/Present/PowerPoint/Media/Subaru.wmv


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Non-compensatory Models of Choice

Conjunctive

Each brand must meet minimum cutoffstandard on attribute A andattribute B and

attribute C, etc. Lexicographic

Chose brand that has the best performance onmost important criterion.

Elimination-by-aspects

Eliminate brands that do not meet minimumstandards of performance.


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Perceived Risk

Functional

Physical

Financial

Social

Psychological

Time

How Customers Use and Dispose of


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How Customers Use and Dispose of

Products

Other Theories of


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Other Theories of

Consumer Decision Making

Involvement

Elaboration

Likelihood Model

Low-involvement

marketing

strategies

Variety-seekingbuying behavior

Decision Heuristics

Availability

Representativeness Anchoring and

adjustment


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Mental Accounting

Consumers tend to

Segregate gains

Integrate losses Integrate smaller losses with larger gains

Segregate small gains from large losses


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Marketing Debate

Is Target Marketing Ever Bad?

Take a position:

1. Targeting minorities is exploitative.

2. Targeting minorities is a soundbusiness practice.


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Marketing Discussion

What are your mental accounts?

Do you have rules you employ in

spending money?

Do you follow Thalers four principlesin reacting to gains and losses?

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