analyzing consumer mkts

8/7/2019 Analyzing Consumer Mkts

1/23

Analyzing ConsumerAnalyzing Consumer

MarketsMarkets


2/23

What Influences ConsumerWhat Influences Consumer

Behavior?Behavior?

Consumer behavior is the study ofConsumer behavior is the study ofhow individuals, groups, andhow individuals, groups, andorganizations select, buy, use, andorganizations select, buy, use, and

dispose of goods, services, ideas, ordispose of goods, services, ideas, orexperiences to satisfy their needsexperiences to satisfy their needsand wants.and wants.

A consumer buying behavior isA consumer buying behavior isinfluenced by cultural, social,influenced by cultural, social,personal and psychologicalpersonal and psychological(processes) factors .(processes) factors .

Cultural factors exert the broadestCultural factors exert the broadest


3/23

1.1. Cultural FactorsCultural Factors

Culture, subculture, and social classCulture, subculture, and social classare particularly important influencesare particularly important influenceson consumer buying behavior.on consumer buying behavior.

Culture is the fundamentalCulture is the fundamentaldeterminant of a persons wants anddeterminant of a persons wants andbehavior.behavior.

A growing child acquires a set ofA growing child acquires a set ofvalues, perceptions, and behaviorsvalues, perceptions, and behaviorsthrough his or her family and otherthrough his or her family and otherkey institutions.key institutions.


4/23

Culture

Cultural FactorsCultural FactorsCultural FactorsCultural Factors

Subculture

Social Class

Buyer


5/23

Cultural FactorsCultural Factors

Sub cultures provide more specificSub cultures provide more specificidentification and socialization for theiridentification and socialization for theirmembers e.g. nationalities, religions,members e.g. nationalities, religions,

racial groups and geographic regions.racial groups and geographic regions. High culturally diversified countries inviteHigh culturally diversified countries invite

the firms to focus a specific culturalthe firms to focus a specific culturaltarget.target.

All human societies exhibit stratification,All human societies exhibit stratification,which sometimes take in the form of castewhich sometimes take in the form of castesystem, which further take the shape ofsystem, which further take the shape of

social class.social class.


6/23

2.Social Factors2.Social Factors2.Social Factors2.Social Factors

ReferenceGroups

Roles &Statuses

Family


7/23

Social FactorsSocial Factors

1.1. Reference GroupsReference Groups are those groupsare those groupswho have direct or indirectwho have direct or indirect

influence on people attitudes and orinfluence on people attitudes and orbehavior.behavior. Primary groups are like family, friends,Primary groups are like family, friends,

neighbors, and coworkersneighbors, and coworkers

Secondary groups are religious,Secondary groups are religious,professional, and tradeprofessional, and trade--union groupsunion groups


8/23

Social FactorsSocial Factors

Opinion leader is the person whoOpinion leader is the person whooffers informal advice oroffers informal advice or

information about a specific productinformation about a specific productor product category.or product category.

Career counselingCareer counseling

Purchasing convenient or luxuryPurchasing convenient or luxuryitemsitems


9/23

FamilyFamily


10/23

The familyThe family

The family is the most important consumerThe family is the most important consumerbuying organization in society and familybuying organization in society and familymembers constitute the most influentialmembers constitute the most influentialprimary reference group.primary reference group.

We can distinguish between two families in theWe can distinguish between two families in thebuyers life.buyers life.

1.1. The family of orientation: consists of parentsThe family of orientation: consists of parents

and siblings.from parents a person acquiresand siblings.from parents a person acquiresan orientation toward religion, politics andan orientation toward religion, politics andeconomics and a sense of personal ambition,economics and a sense of personal ambition,self worth and loveself worth and love


11/23

..

2. Family of procreation: namely.2. Family of procreation: namely.Ones spouse and childrenOnes spouse and children


12/23

3.Personal Factors3.Personal Factors

Age and Stage in the Life Cycle..Age and Stage in the Life Cycle..

Occupation and Economic CircumstancesOccupation and Economic Circumstances

PersonalityPersonality is a personis a persons distinguishings distinguishingpsychological characteristics that lead topsychological characteristics that lead torelatively consistent and lasting responses to hisrelatively consistent and lasting responses to hisor her environmentor her environment

SelfSelf--ConceptConcept isis the complex mental picturesthe complex mental picturespeople have of themselvespeople have of themselves, also known as self, also known as self--

imageimage Lifestyles and ValuesLifestyles and Values

((a persona persons pattern of living as expressed in his or hers pattern of living as expressed in his or heractivities, interests, and opinions, likings and dislikingactivities, interests, and opinions, likings and disliking))


13/23

Personal Influences

Age, Family and LifeCycle Stage

Lifestyle

Occupation &Economic Circumstances

Personality &Self-Concept


14/23


15/23

Physiological Needs(hunger, thirst)

Safety Needs

(security, protection)

Social Needs(sense of belonging, love)

Esteem Needs

(self-esteem)

SelfActualization

Maslows Hierarchy of NeedsMaslows Hierarchy of Needs

2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens


16/23

Model of Buying BehaviorModel of Buying BehaviorModel of Buying BehaviorModel of Buying Behavior

Buyers decisionsProduct choiceBrand choiceDealer choicePurchase timingPurchase amount

Buyers decisionprocess

Problem recognition

Information searchEvaluation ofalternativesDecisionPost purchase

behavior

Buyerscharacteristics

Cultural

SocialPersonalPsychological

Otherstimuli

Economic

TechnologicalPoliticalcultural

Marketingstimuli

Product

PricePlacePromotion


17/23

Psychological FactorsPsychological Factors

PerceptionPerception Selective AttentionSelective Attention

Consumers are constantly bombardedConsumers are constantly bombarded

with information and will screen outwith information and will screen outstimulistimuli

Selective DistortionSelective Distortion Messages do not always come across inMessages do not always come across in

the same way the sender indented.the same way the sender indented. Selective RetentionSelective Retention

People will forget much that they learnPeople will forget much that they learnbut will tend to retain information thatbut will tend to retain information thatsupports their attitudes and beliefssupports their attitudes and beliefs

2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens


18/23

Key Psychological ProcessesKey Psychological Processes

Selective RetentionSelective Retention

People will forget much that they learn butPeople will forget much that they learn butwill tend to retain information that supportswill tend to retain information that supports

their attitudes and beliefstheir attitudes and beliefs Subliminal PerceptionSubliminal Perception

entering, existing in, or affecting the mindentering, existing in, or affecting the mindwithout conscious awareness.without conscious awareness.


19/23

Key Psychological ProcessesKey Psychological Processes

LearningLearning describes changes in andescribes changes in anindividualindividuals behavior arising froms behavior arising fromexperienceexperience

MemoryMemory is a constructive process. Theis a constructive process. Thestrength of memory process dependsstrength of memory process dependson how much we process theon how much we process the

information at encoding. It describesinformation at encoding. It describeshow and where information get intohow and where information get intomemorymemory


20/23

Buyer Decision ProcessBuyer Decision Process

2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition

Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens


21/23


22/23

Decision Heuristics and biasDecision Heuristics and bias Heuristics are the rules of thumb or mentalHeuristics are the rules of thumb or mental

shortcuts in the decision process.shortcuts in the decision process. As the low involvement discussions suggestAs the low involvement discussions suggest

that. Consumers do not always processthat. Consumers do not always process

information or make decisions in a deliberate,information or make decisions in a deliberate,rational mannerrational manner Heuristics can come into play when consumersHeuristics can come into play when consumers

forecast the likelihood of future outcomes orforecast the likelihood of future outcomes orevents.events.

1.1. The availability Heuristics: a recent productThe availability Heuristics: a recent productfailure may lead a consumer to inflate thefailure may lead a consumer to inflate thelikelihood of a future product failure and makelikelihood of a future product failure and makehim or her more inclined to purchase producthim or her more inclined to purchase productwarranty.warranty.


23/23

2. the representative Heuristics: the2. the representative Heuristics: thepackaging factorpackaging factor

3. the anchoring and adjustment3. the anchoring and adjustmentHeuristics: consumers arrive at anHeuristics: consumers arrive at aninitial judgment and then makeinitial judgment and then makeadjustments of that first impressionadjustments of that first impression

based on additional information.based on additional information.

First impression..develops furtherFirst impression..develops further

analyzing consumer mkts

Documents