consumer mkts
DESCRIPTION
consumer MarketsTRANSCRIPT
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Analyzing
Consumer Markets6
Marketing Management
A South Asian Perspective, 13th ed
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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? -
Tata Steel used steeljunction to encourage consumers to go steel shopping and to develop deeper understanding of individual and household customers.
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What Influences
Consumer Behavior?Cultural Factors
Social Factors
Personal Factors
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What is Culture?
Culture is the fundamental determinant of a 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
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Social Classes
Upper uppers
Lower uppers
Upper middles
Middle class
Working class
Upper lowers
Lower lowers
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Characteristics of Social Classes
Within a class, people tend to behave alikeSocial class conveys perceptions of inferior or superior positionClass may be indicated by a cluster of variables (occupation, income, wealth)Class designation is mobile over time -
Social Factors
Reference
groups
Social
roles
Statuses
Family
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Reference Groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups
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Provogue uses teenage icons as brand ambassadors and a youth targeted website to connect to its customers
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Radio Shack Targets Women with Female Store Managers
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Roles and Status
What degree of status is associated 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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The Family Life Cycle
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Brand Personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
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Lifestyle Influences
Multi-tasking
Time-starved
Money-constrained
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Faysal Bank of Pakistan has extended banking hours for time-pressed executives.
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Table 6.2 LOHAS (Lifestyles of Health and Sustainability) Market Segments
Sustainable EconomyHealthy LifestylesEcological LifestylesAlternative Health CarePersonal Development -
Figure 6.1
Model of Consumer Behavior -
Key Psychological Processes
Motivation
Memory
Learning
Perception
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Motivation
Freuds
Theory
Behavior
is guided by
subconscious
motivations
Maslows
Hierarchy
of Needs
Behavior
is driven by
the lowest,
unmet need
Herzbergs
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors
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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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Figure 6.3 State Farm Mental Map
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Figure 6.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation
Purchase Decision
Postpurchase
Behavior
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Problem Recognition
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Sources of Information
Personal
Experiential
Public
Commercial
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Figure 6.5 Successive Sets Involved in Consumer Decision Making
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Table 6.8 Sales and Product
Life Cycle -
Figure 6.6 Stages between Evaluation of Alternatives and Purchase
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Non-Compensatory Models of Choice
ConjunctiveLexicographicElimination-by-aspects -
Perceived Risk
Functional
Physical
Financial
Social
Psychological
Time
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Figure 6.7 How Customers Use and Dispose of Products
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Rural Consumer Behaviour
Rural consumers are more brand loyalRestrictions on consumptionCollective consumption behaviour: for family rather than individualSeasonality of consumption based on seasonality of agricultural production/incomeSpecific patterns in the five-stage buying decision process -
Other Theories of
Consumer Decision MakingInvolvement
Elaboration Likelihood ModelLow-involvement marketing strategiesVariety-seeking buying behaviorDecision Heuristics
AvailabilityRepresentativenessAnchoring and adjustment -
Mental Accounting
Consumers tend toSegregate gainsIntegrate lossesIntegrate smaller losses with larger gainsSegregate small gains from large losses -
Marketing Debate
Is target marketing ever bad?Take a position:
Targeting minorities is exploitive.or
2. Targeting minorities is a sound
business practice.
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Marketing Discussion
Do you have rules you employ inspending money?
Do you follow Thalers four principlesin reacting to gains and losses?