MARKETING MANAGEMENT

14th edition

6
Analyzing
Consumer Markets

Kotler

Keller

What Influences Consumer Behavior?

Cultural
Cultural Factors
Factors

Social
Social Factors
Factors

Personal
Personal Factors
Factors

CHP: 6&7-2

Culture

The fundamental determinant of

a persons wants and behaviors
acquired through socialization
processes with family
and other key institutions

CHP: 6&7-3

Subcultures
Nationalities
Nationalities
Religions
Religions
Racial
Racial groups
groups
Geographic
Geographic regions
regions
Special
Special interests
interests
CHP: 6&7-4

Social Classes
Upper uppers
Lower uppers
Upper middles
Middle class
Working class
Upper lowers
Lower lowers
CHP: 6&7-5

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

CHP: 6&7-6

Social Factors

Reference
groups

Family

Social
roles

Statuses

CHP: 6&7-7

Reference Groups
Membership
Membership groups
groups
Primary
Primary groups
groups
Secondary
Secondary groups
groups
Aspirational
Aspirational groups
groups
Dissociative
Dissociative groups
groups
CHP: 6&7-8

Family
Family of Orientation
Religion
Politics
Economics
Family of Procreation
Everyday buying
behavior

CHP: 6&7-9

Personal Factors
Age
Selfconcept

Life cycle
stage

Lifestyle

Occupation

Values

Wealth
Personality

CHP: 6&7-10

Behavior changes
according to life
cycle stage
Family
Psychological
Critical life events

CHP: 6&7-11

Lifestyle Influences

Multi-tasking
Time-starved
Money-constrained

CHP: 6&7-12

Model of Consumer Behavior

CHP: 6&7-13

Key Psychological Processes

Motivation

Perception

Learning

Memory

CHP: 6&7-14

Motivation

Freuds
Theory

Maslows
Hierarchy
of Needs

Herzbergs
Two-Factor
Theory

Behavior
is guided by
subconscious
motivations

Behavior
is driven by
lowest,
unmet need

Behavior is
guided by
motivating
and hygiene
factors
CHP: 6&7-15

Perception
Selective Attention
Selective Retention
Selective Distortion
Subliminal Perception
CHP: 6&7-16

Consumer Buying Process

Problem Recognition
Information Search
Evaluation
Purchase Decision
Postpurchase
Behavior
CHP: 6&7-17

Sources of Information

Personal

Commercial

Public

Experiential

CHP: 6&7-18

Successive Sets

CHP: 6&7-19

Evaluation of Attributes

CHP: 6&7-20

Stages between Evaluation of

Alternatives and Purchase

CHP: 6&7-21

Perceived Risk
Functional
Functional
Physical
Physical
Financial
Financial
Social
Social
Psychological
Psychological
Time
Time
CHP: 6&7-22

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

CHP: 6&7-23

Attitudes

A predisposition to respond in a
consistently favorable or unfavorable
way
An individuals affective reaction to or
overall evaluation of an object, person,
action, or concept
CHP: 6&7-24

Involvement
Involvement Profile:
Personal interest in a product category
Importance of negative consequences
Probability of making a mistake
Pleasure value of the product category
Sign value of the product category
How closely the product is related to the self

CHP: 6&7-25

ELM
Persuasion = f (Elaboration)
Elaboration = f (Motivation, Ability)
Motivation
Involvement
Need for cognition
Ability
Capacity
Timing
Repetition
Distraction
CHP: 6&7-26

Elaboration: Issue relevant thinking

High Elaboration
Extensive IP
Extensive time
Extensive mental capacity
Extensive motivation
Controlled thinking
Deep thinking
Systematic thinking
Effortful analysis

Low Elaboration
Limited IP
Limited time
Limited mental capacity
Limited motivation
Automatic thinking
Shallow thinking
Heuristic thinking
Mindless analysis

CHP: 6&7-27

Persuasion with ELM

Target: High Elaboration
Strategy: Central Route

Target: Low Elaboration

Strategy: Peripheral Route

Persuasion occurs by:

Careful thinking
Thoughtful analysis
Deep consideration
True merits of info

Persuasion occurs by:

Simple cues
Irrelevant info
Hedonistic content
Side issues

CHP: 6&7-28

The Source
Source effects: A message will have different effects if
communicated by a different source.
Two important source characteristics:
Credibility and Attractiveness
Source credibility: A sources perceived expertise, objectivity, or
trustworthiness.
Attractiveness: A sources perceived likeability, similarity,
celebrity.

CHP: 6&7-29

The Message

Message Strength
Relevancy
Objectivity
Verifiability

One- Versus Two-Sided Arguments:

Supportive argument: Presents only positive arguments
Two-sided message: Presents positive and negative info
Drawing Conclusions
Comparative Advertising:
A strategy in which a message compares two or more
recognized brands and compares them on the basis of
attributes.

CHP: 6&7-30

MARKETING MANAGEMENT
14th edition

7
Analyzing
Business Markets

Kotler

Keller

Organizational Buying

Decision-making process by which

formal organizations establish the
need for purchased products and
services, and identify,
evaluate, and choose among
alternative brands and suppliers.

CHP: 6&7-32

Characteristics of Business Markets

Fewer, larger buyers
Close suppliercustomer relationships
Professional
purchasing
Many buying
influences
Multiple sales calls

Derived demand
Inelastic demand
Fluctuating demand
Geographically
concentrated buyers
Direct purchasing

CHP: 6&7-33

Buying Situation
Straight
Straight rebuy
rebuy

Modified
Modified rebuy
rebuy

New
New task
task

CHP: 6&7-34

The Buying Center

Initiators
Initiators
Users
Users
Influencers
Influencers
Deciders
Deciders
Approvers
Approvers
Buyers
Buyers
Gatekeepers
Gatekeepers
CHP: 6&7-35

Organizational Buying Behavior

in Japan

CHP: 6&7-36