Chapter 6

Analyzing Consumer Markets

By SI,XUANYE

What is 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 Factors Can Influence Consumer Behaviour?

Cultural Factors

Social Factors

Personal Factors

Cultural Factors
Subcultural

Nationalities
Religions
Geographical Locations

Cultural Factors
Subcultural has a Significant influence for consumer behavior.

Social Factors
A.

Reference Groups

Primary Groups
--- family, friends, neighbors, co-workers
Secondary Groups --- religious, professional, trade-union groups
Aspirational Groups --- those that a person wishes to join
Dissociative Groups --- those whose values or behavior an individual rejects
B.

Family

2 Families in a Buyers Life:

1.Family of Orientation
2.Family of Procreation

Social Factors
C. Roles and Status

Personal Factors
Age

Personality

Life cycle stage

Values

Occupation

Lifestyle

Wealth

Self-concept

Key Psychological Processes

Motivation
Freuds Theory
Maslows Hierarchy of Needs
Herzbergs Two-Factor Theory

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Freuds Theory of Human Motivation

Freuds
Theory
Behavior
is guided by
subconscious
motivations

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Maslows Theory of Human Motivation

Maslows
Hierarchy
of Needs
Behavior
is driven by
lowest,
unmet need

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Herzbergs Theory of Human Motivation

Herzbergs
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors

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Perception
Perception is the process by which we select,
organize, and interpret information inputs to
create meaningful picture of the world. It not only
depend on the physical stimuli, but also its
relationship to the surrounding.

Selective attention
Selective retention
Selective distortion
Subliminal perception
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Buying decision process: Five-Stage Model

Problem recognition
Cultural,
social,
and personal
factors affect
all step

Information search
Evaluation of alternatives
Purchase decision
Post purchase behavior
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Problem recognition
A buying process starts when a buyer recognizes a problem or need triggered
internal or external stimulus.

Information search
Information can be obtained from personal, commercial or public sources .

Evaluation of alternatives
Consumer processes competitive brand information and make final value
judgment.

Purchase decision
The consumer executes a purchase intention.

Post purchase behavior

The buyer makes post purchase evaluation.

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Behavior Decision Theory

Consumers dont always make deliberate or rational decisions.
Decision Heuristics
1.Availability Heuristic decision based on a past outcome

2. Representativeness Heuristic predictions based on how similar the outcome is

to other examples

3.Anchoring and Adjustment Heuristic first impressions

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Conclusion
Marketers must have a thorough understanding of
how consumers think, feel, and act.
A connection must be made between companies
and consumers

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Thanks !

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