MARKETING MANAGEMENT12th edition

6 Analyzing

Consumer Markets

Kotler Keller 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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Emerging Trends in Consumer Behavior

Metrosexual –Straight urban manwho enjoys shoppingand using groomingproducts

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What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors

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Culture

The fundamental determinant of a person’s wants and behaviors acquired through socialization

processes with familyand other key institutions

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Subcultures

Nationalities

Religions

Racial groups

Geographic regions

Special interests

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Insight into the subculture of wine enthusiasts

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Fast Facts About American Culture

• The average American:– chews 300 sticks of gum a year– goes to the movies 9 times a year– takes 4 trips per year – attends a sporting event 7 times each

year

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Social Classes

Upper uppersLower uppersUpper middlesMiddle class

Working classUpper lowersLower lowers

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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

Referencegroups

Social roles Statuses

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 buying

behavior

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Targeting Women and Their Families

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Roles and Statuses

What degree of status is associated with various occupational roles?

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Personal Factors

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle

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Behavior changesaccording to life cycle stage

•Family•Psychological•Critical life events

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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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Figure 6.1 Model of Consumer Behavior

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Key Psychological Processes

Motivation

MemoryLearning

Perception

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Motivation

Freud’sTheory

Behavioris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behavioris driven by

lowest, unmet need

Herzberg’sTwo-Factor

Theory

Behavior isguided by

satisfiers anddissatisfiers

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Maslow’s Hierarchy of Needs

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Herzberg’s Two-Factor Theory

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Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion

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Figure 6.3 Dole Mental Map

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Encoding Brand Associations

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Figure 6.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

PostpurchaseBehavior

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Problem Recognition

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Sources of Information

Personal

ExperientialPublic

Commercial

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Figure 6.5 Successive Sets

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Evaluation of AttributesTable 6.3

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Figure 6.6 Stages between Evaluation of Alternatives and Purchase

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Non-compensatory Models of Choice

• Conjunctive– Each brand must meet minimum cutoff

standard on attribute A and attribute B and attribute C, etc.

• Lexicographic– Chose brand that has the best performance on

most important criterion.• Elimination-by-aspects

– Eliminate brands that do not meet minimum standards of performance.

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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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Other Theories of Consumer Decision Making

Involvement• Elaboration

Likelihood Model• Low-involvement

marketing strategies

• Variety-seeking buying 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 inspending money?Do you follow Thaler’s four principlesin reacting to gains and losses?