05 Ippt

5
Analyzing
Consumer
Markets
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?
 In what ways do consumers stray from a
deliberate rational decision process?
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation 5-2
from the United States edition of Marketing Management, 14e.
Hariyali Kisaan Bazaar: Connecting
with Customers
Consumer Behavior
Consumer behavior is the study of how

individuals, groups, and organizations select,
buy, use, and dispose of goods, services, ideas,
or experiences to satisfy their needs and wants.
What Influences
Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors
What Is Culture?
Culture is the fundamental determinant of a

person’s wants and behaviors acquired
through socialization processes with family
and other key institutions.
Subcultures
 Nationalities
 Religions
 Racial groups
 Geographic regions
Social Classes
A1
A2
B1
B2
C
D
E1
E2
Social Factors
Reference groups
Family
Social roles
Status
Reference Groups
 Membership groups:
 Primary groups: interact regularly
 Secondary groups: religion, professional, trade
union
 Aspirational groups: person wish to join
 Disassociative groups: people reject to join.
Family
 Family of orientation: parents and
siblings
 Family of procreation: spouse and
children
Personal Factors
 Age  Personality
 Life cycle stage  Values
 Occupation  Lifestyle
 Wealth  Self-concept
Age and Stage of Lifecycle
Occupation and Economic
Circumstances
Marketers try to identify the occupational
groups that have above-average interest in
their products and services. Product and brand
choice are also affected by economic
circumstances—spendable income, savings
and assets, debts, borrowing power, and
attitudes toward spending and saving—to a
great extent.
Personality
Personality refers to a set of distinguishing human

psychological traits that lead to relatively consistent
and enduring responses to environmental stimuli.
Personality can be a useful variable in analyzing
consumer brand choices.
Theories of Personality
1. Freudian theory: Freudian theory suggests

unconscious needs or drives are at the heart of
human motivation
2. Neo-Freudian personality theory: Compliant,
aggressive, detached - Neo-Freudian theory
suggests social relationships are fundamental to
the formation and development of personality
3. Trait theory (Feministic, materialistic,
ethnocentrism ) : A trait is any distinguishing,
relatively enduring way in which one individual
differs from another
The Motivation Process
Motivation
Maslow’s Herzberg’s
Freud’s Hierarchy Two-Factor
Theory of Needs Theory
Behavior Behavior Behavior is

is guided by is driven by guided by
subconscious lowest, motivating
motivations unmet need and hygiene
factors
Maslow’s Hierarchy
Source: A. H. Maslow, Motivation and

Personality, 3rd ed. (Upper Saddle River, NJ:
Prentice Hall, 1987). Printed and electronically
reproduced by permission of Pearson
Education, Inc., Upper Saddle River, NJ.
Needs and Goals
 Needs
 Physiological
 Psychological
 Goals
 Generic
 Product-specific
Brand Personality
 Sincerity
 Excitement
 Competence
 Sophistication
 Ruggedness
Lifestyle and Values
Figure 5.1 Model of
Consumer Behavior
e d
fi n
D e Perception
The process by which individuals

select, organize, and interpret stimuli
into a meaningful and coherent
picture of the world. It can be
described as “how we see the world
around us.”
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 36 of 32
e d
fi n
D e
e d
fi n
D e
e d
fi n Ambush Marketing
D e
Placing ads in places where consumers

do not expect to see them and cannot
readily avoid them.
Experiential Marketing
Allows customers to engage and interact
with offerings in sensory ways in order to
create emotional bonds between
consumers and marketing offerings
e d
fi n
D e
Perception
 Selective attention
 Selective retention
 Selective distortion
 Subliminal perception
Learning
 Drive: A strong internal stimulus impelling action

 Cue: Minor stimuli that determine when, where,
and how a person responds
 Discrimination: Learning to recognize differences
in sets of similar stimuli and adjusting our
responses accordingly
Emotions
Memory
 Short term memory

 Long term memory
Figure 5.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior
Sources of Information
Personal Commercial
Public Experiential
Figure 5.5 Successive Sets in
Decision Making
Table 5.3 A Consumer’s Brand
Beliefs about Laptop Computers
Figure 5.6 Steps Between
Alternative Evaluation
and Purchase
Perceived Risk
 Functional
 Physical
 Financial
 Social
 Psychological
 Time
Perceived Risk
The degree of uncertainty perceived by the

consumer as to the consequences (outcome)
of a specific purchase decision
Figure 5.7 How Customers
Use or Dispose of Products
Source: Jacob Jacoby, et al., “What about Disposition?” Journal of Marketing (July
1977), p. 23. Reprinted with permission from the Journal of Marketing, published by the
American Marketing Association.
Self concept
 Real Self
 Ideal Self
 Real social self
 Ideal social self
For Review
 How do consumer characteristics influence
buying behavior?
 What major psychological processes influence
consumer responses to the marketing
program?
 How do consumers make purchasing
decisions?
 In what ways do consumers stray from a
deliberate rational decision process?

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5

Consumer behavior is the study of how

Culture is the fundamental determinant of a

Personality refers to a set of distinguishing human

1. Freudian theory: Freudian theory suggests

Behavior Behavior Behavior is

Source: A. H. Maslow, Motivation and

The process by which individuals

Placing ads in places where consumers

 Drive: A strong internal stimulus impelling action

 Short term memory

The degree of uncertainty perceived by the

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