marketing ch06

8/6/2019 Marketing Ch06

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6

6-15-16-1

AnalyzingConsumer

Markets


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6-2Copyright 2009 Pearson Education South Asia Pte Ltd

Know how consumer characteristics influencebuying behavior

Know what major psychological processesinfluence consumer responses to themarketing program

Know how consumers make purchasing

decisions Know how marketers analyze consumer

decision making

Learning Objectives:

Copyright 2009 Pearson Education South Asia Pte Ltd


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A Model of Consumer Behavior(Figure 6.1)


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Consumer Buyer Behavior

The buying behavior of final consumers-

individuals & households who buy goods& services for personal consumption.

Consumer Market: All individuals &households who buy or acquire goods &services for personal consumption.


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Factors influencing consumer

behavior

Cultural

Culture

Subculture

Social Class

Social

ReferenceGroups

Family

Roles &status

Personality

Age & Life-Cycle Stage

Occupation

EconomicSituation

Lifestyle

Personality& self-concept

Psychological

Motivation

Perception

Learning

Beliefs &

attitudes

Buyer


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What InfluencesConsumer Behavior?

Cultural Factors

Social Factors

Personal Factors

Research provide clues to reach & serve consumers more effectively


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Culture:The set of basic values, perceptions, wants &behaviors learned by a member of society from family& other important institutions.

Subculture: A group of people with shared valuesystems based on common life experiences &situations.

Social Class: Relatively permanent & ordered divisionsin a society whose members share similar values,interests & behaviors.

Measured by occupation, income, education, wealth

& other variables.

Cultural Factors



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Cultural Forces

Culture is the fundamental determinant of apersons wants and behaviors.

Each culture consists of smaller subculturesthat provide more specific identification andsocialization for their members. Subcultures include nationalities, religions, racial

groups, and geographic regions.

Multicultural marketing grew out of carefulmarketing research that revealed that different ethicand demographic niches did not always respondfavorable to mass-market advertising.


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Main determinant of wants & behavior

E.g. Asian child exposed to filial piety, hard

workSUBCULTURE

Subset of each culture - more specific

identity for members E.g. religions, nationalities

Cultural Factors


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Subcultures

Nationalities

Religions

Racial groups

Geographic regions


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Multicultural marketing

Ethnic & demographic niches

Dont respond favorably to massmarketing

Where applied? Regional and international marketing

Marketers must recognize and respond todifferences in cultural norms and valuesand adapt products and promotionsaccordingly

Multi- cultural Marketing


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Social Class

Virtually all human societies exhibit socialstratification. Social stratification sometimes takesthe form of a caste system where members of

different castes are reared for certain roles andcannot change their caste membership.

More frequently, it takes the form of social classes,relatively homogeneous and enduring divisions in

a society that are hierarchically ordered andwhose members share similar values, interests,and behavior.


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Social Factors

Reference

groups

Socialroles

Statuses

Family


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Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups


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Group:Two or more people who interact toaccomplish individual or mutual goals

Membership Groups: groups that have a direct

influence to which a person belongs to` Reference Groups: Serve as direct or indirect

points of reference in forming a personsattitudes or beliefs

Aspirational Group: Group to which a personaspires to belong to

Opinion Leader: Person within a referencegroup who, because of special skills, knowledge,personality, or other characteristics, exerts social

influence on others.


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Impact of Groups

Groups having a direct influence on aperson are called membership groups.

Some memberships groups are primary

groups such as family, friends,neighbors, and co-workers with whomthe person interacts fairly continuouslyand informally.

Some membership groups are secondarygroups such as religious, professionalgroups that tend to be more formal.


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Reference Groups

Reference groups expose an individual to newbehaviors and lifestyles, influencing attitudes andself-concept.

They create pressures for conformity that mayaffect actual product and brand choices.

People are also influenced by groups to which theydo no belong:

Aspiration groups are those a person hopes to join. Dissociative groups are those whose values or behavior

an individual rejects. The buyer evaluates these elementstogether with the monetary cost to form a total customercost.


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Marketing applications of referencegroups:

Manufacturers of products and brands where groupinfluence is strong must determine how to reach andinfluence opinion leaders in these reference groups.

An opinion leaderis the person in informal, product-related communications who offers advice orinformation about a specific product or productcategory.

Marketers try to reach opinion leaders byidentifying demographic and psychographic

characteristics associated with opinionleadership, identifying the media read by opinionleaders, and directing messages at opinionleaders.


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Social Factors- Family

The family is the most important consumer-buyingorganization in society, and family members constitutethe most influential primary reference group.

We can distinguish between two families in the buyerslife.

The family of orientation consists of parentsand siblings.

A more direct influence on everyday buyingbehavior is the family of procreation namely,ones spouse and children.


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Family

Family members strongly influence buyerbehavior

Marketers in roles & influence of husband, wife &

children on purchase of different products &services.

Men account for 40% food shopping

Women make 85% of purchases

Children ages 3-11 yield $18 bn in disposableincome

Children influence $115 bn in areas like food,clothing, entertainment & personal care items.


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Application in Marketing

Marketers are interested in the roles and relativeinfluence of family members in the purchase of alarge variety of products and services.

With expensive products and services, the vastmajority of husbands and wives engage in more jointdecision-making.

Men and women may respond differently to marketingmessages.

Another shift in buying patterns is an increase in theamount of dollars spent and the direct and indirectinfluence wielded by children and teens.

Marketers of cars, cell phones, restaurants & travelare now placing ads On Cartoon Network, Pogo &Nickelodeon


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Roles and Status

A person participates in many groupsand a persons position in each group

can be defined in terms of role andstatus.

A role consists of the activities aperson is expected to . Each rolecarries a status.

Marketers must be aware of the statussymbol potential of products and

brands


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Roles and Status- MarketingApplication

People choose products that reflect andcommunicate their role and actual or

desired status in society. Company presidents often drive

Mercedes, wear expensive suits.

Marketers must be aware of the statussymbol potential of products and brands.


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Personal Factors

Age

Values

Life cycle

stage

Occupation

Personality

Self-

concept

Wealth

Lifestyle


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Age and Life Cycle Stages

People change goods & services they buy

over lifetimes. Buying is shaped by stage of the family life

cycle- the stages through which familiesmight pass as they mature over time.

Marketers should also consider critical lifeevents or transitions, marriage, child birth,illness, relocation, divorce, career change,widowhood, as giving rise to new needs


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Age and Life Cycle Stages

Psychological life-cycle stages matter

Critical life events/transitions:

Marriage Relocation etc

Give rise to new needs


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Occupation and Economic

Circumstances

Identify occupational groups with above-averageinterest in products

Tailor products for some of them, Blue collared

individuals buy work clothes, shoes, lunch boxes.

Economic conditions also affect product choice,

spendable income, savings, assets, debts,

purchasing power.


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Product choice affected by economic

circumstances: income, savings

Occupation and Economic

Circumstances


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Personality and Self-Concept

Each person has personality characteristics thatinfluence his or her buying behavior.

Personality: A set of distinguishing human

psychological traits that lead to relatively consistentand enduring responses to environmental stimuli.

Defined in terms of traits such as self confidence,dominance, sociability, defensiveness

The idea is that brands have personalities andconsumers are likely to choose brands whose

personalities match their own.


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Brand Personality

Brand personality is defined as the specificmix of human traits that may be attributedto a particular brand.

Consumers also choose and use brandthat have a brand personality consistentwith their own actual self-concept (howone views themselves).

Although in some cases, the match may bebased on the consumers ideal self-concept(how we would like to view ourselves).


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Five Brand Personality Traits:

1. Sincerity (down to earth, honest, cheerful).

2. Excitement (daring, spirited, imaginative).

3. Competence ( reliable, intelligent, successful)

4. Sophistication ( upper class & charming)5. Ruggedness (outdoorsy & tough).

Nike ruggedness

MTV excitementCNN competence

Campbell sincerity


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Lifestyle and Values

People from the same subculture, social class,and occupation may lead quite differentlifestyles.

A lifestyle is a persons pattern of living in theworld as expressed in activities, interests, andopinions.

Lifestyle portrays the whole personinteracting with his or her environment. Marketers search for relationships between their

products and lifestyle groups. Lifestyle is a persons pattern of living in the world

as expressed in activities, interests, and opinions.


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Lifestyles shaped partly by being:

Money-constrained - lower cost products

Time-constrained - multitasking,

convenient products

Lifestyle and Values


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Core Values

Consumer decisions - core values

Core values - choices in long-term

Values

:

Appeal to inner selves

Influence outer selves

Lead to purchase behavior


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Key Psychological Processes

Motivation

MemoryLearning

Perception


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Motivation

Motive (or Drive ) : A need that is

sufficiently pressing to direct the person

to seek satisfaction

Example : An ageing person seeking skin

electrolysis Drive :

1 To look young and feel independent

2 To feel young


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Motivation: Freud, Maslow, Herzberg

A person has many needs at any giventime. Some needs are:

Biogenic (arise from physiological states oftension such as hunger).

Others are psychogenic and arise from aneed for recognition, esteem, or belonging.

A motive is a need that is sufficientlypressing to drive the person to act.


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Motivation

Freuds

Theory

Behavioris guided bysubconsciousmotivations

Maslows

Hierarchy

of Needs

Behavioris driven by

lowest,unmet need

Herzbergs

Two-FactorTheory

Behavior is

guided bymotivating

factors


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Freuds Theory

Psychological forces shape behavior thata person cannot fully understand ( will

react to less conscious cues such assize, shape, weight, material, color)

Laddering

Decide message & appeal

In-depth interviews - deeper motives

Useprojective techniques


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Human needs arranged in a hierarchyaccording to importance

Physiological, safety, social, esteem & self-

actualization

How products fit in plans & lives

If self-actualization apply to Asians

Social needs important for Asians: Affiliation, Admiration, Status

Maslows Theory


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Maslows Hierarchy of Needs


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2-factor theory - dissatisfiers &

satisfiers

Absence of dissatisfiers not enough to

motivate a purchase, satisfiers must be

present

Satisfiers required to motivate purchase

Eg computer without warranty

dissatisfier

Herzbergs Theory


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Marketing implications of Herzbergsmodel of motivation

Herzbergs theory has two implications:

Sellers should do their best to avoid

dissatisfiers Sellers should identify the major satisfiers or

motivators of purchase in the market andsupply them. These satisfiers will make the

major difference as to which brand thecustomer buys


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Perception

How the motivated person actually acts isinfluenced by his or her view or perception of thesituation.

Perception is the process by which an individualselects, organizes, and interprets informationinputs to create a meaningful picture of the world.

Perception depends not only on the physicalstimuli, but also on the stimulis relation to the

surrounding field and on conditions within theindividual.

The key point is that perceptions vary widelyamong individuals exposed to the same reality.


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Key point to note:

In marketing, perceptions are more

important than the reality, as it is

perceptions will affect consumersactual behavior.


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Aspects of Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion


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Perception

Selective Attention: the tendency for people to screenbut most of the information to which they are exposed-marketers must work hard to attract the consumersattention.

Selective Distortion: the tendency of people to interpretinformation in a way that will support what they willalready believe.

Selective Retention: Consumers are likely to remembergood points made about a brand they favor & to forgetgood points made about competing brands.

Subliminal Advertising: Subconsciously affecting aconsumers mind about a product or brand without theconsumer even knowing it.


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Selective attention: Screening out unnecessary stimuli,marketers have to work hard to attract consumers notice

People are more likely to notice stimuli than relate

to a current need (A person who is motivated tobuy a computer will notice computer ads, he/she

will not notice DVDs)

People are more likely to notice stimuli than they

anticipate. (You

are more likely to noticecomputers than radios in a computer store)

People are more likely to notice stimuli whosedeviations are large in relation to the normal size ofthe stimuli. (You are more likely to notice an ad

offering Rs.100 off rather than Rs.5)


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Drive is a strong internal stimulus that calls foraction.

Drive becomes a motive when it is directedtowards a particular stimulus object.

Cues are minor stimuli that determine when,where & how the person responds.

If an experience is rewarding, the consumer willuse the product more, reinforcinghis response.


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Selective distortion

The tendency to twist information intopersonal meanings & interpret information

in a way that will fit our preconceptions.

Selective retention

We are likely to remember good points

about a product we like & forget goodpoints mentioned about competingproducts. Selective retentions helpsmarketers use drama & repetition in

sending messages to target market.


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Gaining customer attention throughproduct design and presentation


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Selective distortion is the tendency to interpretinformation in a way that will fit our preconceptions.Consumers will often distort information to be

consistent with prior brands and product beliefs. Examples of branded differences can be found with

virtually every type of product.

Selective distortion can work to the

advantage of marketers with strongbrands when consumers distort neutral or

ambiguous brand information to make it

more positive.


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E.g.: Blind taste tests

Only 1 group knows brand

Opinions different but same product

Earlier brand beliefs changed product

perceptions


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Selective Retention

People will fail to register much information towhich they are exposed in memory, but willtend to retain information that supports their

attitudes and beliefs. Because of selective retention, we are likely to

remember good points about a product we likeand forget good points about competing

products.


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Subliminal Perception

Covert, subliminal messages in ads or

packages

Unconscious of them but affect behavior

No evidence consumers can be

controlled at that level


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Learning

Learning - behavior change withexperience

Drive - strong internal stimulus impelaction

Cues - minor stimuli- when, where, how

person responds Discrimination - recognize differences

in similar stimuli & adjust responses


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Belief: A descriptive thought that aperson has about something.

Attitude: A persons relatively consistentevaluations, feelings & tendencies

toward an object or idea.


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Brand knowledge

Linked associations determineinformation recalled on brand

Brand associations

Brand-related thoughts, feelings,perceptions linked to brand node

Right product experience - right branddata created & maintained in memory

Memory


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Memory

MEMORYPROCESSES: ENCODING

How & where information enters memory

Determinant of strength of association

1. Quantity & quality of processing

2. Organization & strength in memory

3. Its nature: simple, vivid, concrete

4. Repeat exposures -- stronger associations


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MEMORYPROCESSES: RETRIEVAL

How information gets out of memory

Brand association strength - easy access, recall

Successful brand information recall, 3 factors:Successful brand information recall, 3 factors:

1. Other information in memory - interference

2. Time since exposure affects strength3. Information available but not accessible

Memory


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The Buying Decision-Process:

The Five-Stage Model

Basic psychological processes -important - how consumers make buyingdecisions

Stage model of buying decision process 5 stages

Buying process starts long before actualpurchase and consequences long after

May skip or reverse stages


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Figure 6.4

Five-Stage Model

of the Consumer

Buying Process



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The Five-Stage Model Problem

Recognition

Buying starts - recognize problem/need

Need triggered by stimuli

Internal stimulus: normal needs, hunger External stimulus: love new car- triggers buying one



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Copyright 2009 Pearson Education South Asia Pte Ltd 5-66


The Five-Stage Model Information

Search

Information Search

Aroused consumer search

for more Heightened attention:

receptive to information

Active information search:

find ways to learn about

product

4 sources:4 sources:1. Personal

2. Commercial

3. Public

4. Experiential



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The Buying Decision Process:


Search

Total brands available totalset

Know only subset of total awareness set

Meet initial criteria consideration set

More information, few remain choice set

Makes final choice from this set


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Figure 6.5 Successive Sets Involved in Consumer

Decision Making



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The Buying Decision Process:


Search

Marketers need to know:

Consumers other brands in choice set -

competition

Identify sources & importance

Prepare effective communications for target

market


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Evaluation of Alternatives

The stage in which the consumer usesinformation to evaluate alternativebrands in the choice set.

Example:

Cameras (Picture sharpness, camera speeds,camera size, price)

Hotels (Locations, cleanliness, atmosphere,price)

Mouthwash (Color, effectiveness, price,taste)

Tires (Safety, tread life, ride quality, price)


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The Buying Decision-Process: The Five-

Stage Model Evaluation of Alternatives

BELIEFS & ATTITUDES

Influence buying behavior

Belief- descriptive thought on something

Attitude enduring evaluation, feeling &

action tendencies toward something

To fit product into existing attitudes


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A Got Milk ad

from the very successful

campaign features China

star Ziyi Zhang

from film

Crouching Tiger,

Hidden Dragon


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Purchase Decisions:

In the evaluation stage, the consumer formspreferences among the brands in the choice set. Theconsumer may also form an intention to buy the most

preferred brand. In executing a purchase intention, theconsumer may make up to five sub-decisions:

Brand

Dealer

Quantity Timing

Payment-method


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Intervening Factors

Between purchase intention & decision

1.

Attitudes of others:

Intensity of others attitude

Motivation to comply with others wishes

2. Unanticipated situational factors


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Figure 6.6

Steps Between

Evaluation of

Alternatives & a

Purchase

Decision


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Decision influenced by perceived risk:Decision influenced by perceived risk:

1. Functional risk not up to expectations

2. Physical risk threat to well-being/health

3. Financial risk not worth price

4. Social risk embarrassment from others

5. Psychological risk mental well-being

6. Time risk opportunity cost to find another

Perceived Risks:


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After the purchase, the consumer mightexperience dissonance about their purchaseand be alert to information that supports their

decision. Marketing communications shouldsupply beliefs and evaluations that reinforcethe consumers choice and help him or her feelgood about the brand.

Marketers must monitor post-purchase

satisfaction, post-purchase actions, and

post-purchase uses.

Post-purchase Behavior


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POSTPURCHASESATISFACTION

Satisfaction = performance - expectations

(()) disappointed (0)(0) satisfied ((++)) delighted

Expectations - from sellers, friends etc

Larger gap - greater dissatisfaction Product claims must truthfully represent

likely performance

Post-purchase Satisfaction


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Abandon/return product

1. Seek to confirm high value

2.

Public action - complain, go to lawyer3. Private actions - stop buying or warn

friends

Post-purchase communications - fewerproduct returns & cancellations

Post-purchase Actions

marketing ch06

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