Analyzing

6666Analyzing

Consumer MarketsMr. Mr. Ajit AryaAjit Arya

FacultyFaculty--MarketingMarketing

Department of Business StudiesDepartment of Business Studies

C. U. Shah College of C. U. Shah College of Engg. & TechEngg. & Tech..

Chapter Questions

• How do consumer characteristics influence

buying behavior?

• What major psychological processes

influence consumer responses to the influence consumer responses to the

marketing program?

• How do consumers make purchasing

decisions?

• How do marketers analyze consumer

decision making?

Analyzing Consumer Markets

“The most important ingredient in the success of an organization is a organization is a satisfied customer”

What is Consumer Behavior?

Consumer behavior is the study of how individuals, groups, and

organizations select, buy, use, and dispose of goods, services, ideas, or dispose of goods, services, ideas, or experience to satisfy their needs and

wants.

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 processes with family and other key

institutions.

Subcultures

•• Subcultures:Subcultures: subgroup of culture with its own, different modes of behavior

– Subcultures can differ by:• Ethnicity or Nationality

• Age or Gender• Age or Gender

• Religion

• Social class

• Profession

– Cultural differences are particularly important for international marketers

– Successful strategies in one country often cannot extend to other international markets because of cultural variations

International Perspective on

Cultural Influences

because of cultural variations

Social Classes

•• Social classes:Social classes: groups whose rankings are determined by occupation, income, education, family background, and residence location.1. lower - lowers

2. upper - lowers

3. working class

4. middle class

5. upper middles

6. lower – uppers

7. upper - uppers

Social Factors

• Reference Groups

• Family

• Roles and Status

Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups

•• OpinionOpinion leaderleader is theperson who offersinformal advice orinformation about aspecific product.

• They are trendsetters• They are trendsetterswho purchase newproducts before othersin a group and theninfluence others in theirpurchases.

•• JordacheJordache

– Advertisement Illustrating the Influence of Friendship Friendship Groups on Purchase Decisions

Personal Factors

• Age and stage in the life cycle

• Occupation and economic circumstances

• Personality and self – concept

• Lifestyle and values (AIO)• Lifestyle and values (AIO)

The Family Life Cycle

Model of Consumer Behavior

Key Psychological Processes

Motivation Perception

MemoryLearning

•• PerceptionsPerceptions is the process by which we select, organize, and select, organize, and interpret information to create a meaningful picture of the world.

Perception

Selective Attention

Selective RetentionSelective Retention

Selective Distortion

Learning

• An immediate or expected change in behavior as aresult of experience.

• The learning process includes the component of:

��DriveDrive –– any strong stimulus that impels action[fear, pride, hunger][fear, pride, hunger]

��CueCue –– an object in the environment that determinesthe nature of the consumer’s response to a Drive[ad for a restaurant]

��ResponseResponse –– a reaction to a set of Drives and Cues[go to the restaurant]

��ReinforcementReinforcement –– a reduction in drive that resultsfrom a proper response

Memory

• Short – term memory (STM)

• Long – term memory (LTM)

– Memory processes

– Memory retrieval

Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase

Behavior

Sources of Information

A)Personal (family, friends)

B)Commercial (advertising, Web sites, salespeople)

C)Public (mass media, consumer organizations)

D)Experiential (handling, examining, using the product)

• Personal (family, friends)

• Commercial (advertising, Web sites, salespeople)

• Public (mass media, consumer organizations)

• Experiential (handling, examining, using the

product)product)

Successive Sets Involved in Consumer Decision Making

Evaluation of Alternatives

• Belief —a descriptive thought that a person

holds about something.

• Attitude—a person’s enduring favorable or

unfavorable evaluation, emotional feeling, and

action tendencies toward some object or idea.action tendencies toward some object or idea.

Expectancy – Value Model

• The expectancy-value model of attitude formation posits

that consumers evaluate products and services by

combining their brand beliefs—the positives and

negatives— according to importance.

Importance weight x beliefComputer A: .4(10) + .3(8) + .2(6) + .1(4) = Computer A: .4(10) + .3(8) + .2(6) + .1(4) = 8.08.0

Non-Compensatory Models of Choice

• Conjunctive – minimum cutoff

• Lexicographic – most important attribute

• Elimination-by-aspects – base on probability of choosing an attributeprobability of choosing an attribute

Stages between Evaluation of Alternatives and Purchase

Perceived Risk

Functional

Physical

FinancialFinancial

Social

Psychological

Time

Post Purchase Behavior

• Post purchase satisfaction

• Post purchase action

• Post purchase use and disposal

Thank You!!!Thank You!!!