Analyzing

Consumer Markets
By
Tuhin Chattopadhyay
 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?
 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
 Socio-Economic 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
 Social Factors

Reference
Family
groups

Social
Statuses
roles
 Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups
Provogue uses teenage icons as brand
ambassadors and a youth targeted
website to connect to its customers
Roles and Status

What degree of status is

associated with various
occupational roles?
 Personal Factors

Age
Self- Life cycle
concept stage

Lifestyle Occupation

Values Wealth
Personality
The Family Life Cycle
Brand Personality

Sincerity

Excitement

Competence

Sophistication

Ruggedness
 Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained
 LOHAS (Lifestyles of Health and
Sustainability) Market Segments
• Sustainable Economy
• Healthy Lifestyles
• Ecological Lifestyles
• Alternative Health Care
• Personal Development
Model of Consumer Behavior
Key Psychological Processes

Motivation Perception

Learning Memory
 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 the lowest, motivating
motivations unmet need and hygiene
factors
Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
Perception

Selective Attention

Selective Retention

Selective Distortion

Subliminal Perception
Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase
Behavior
Sources of Information

Personal Commercial

Public Experiential
Successive Sets Involved in
Consumer Decision Making
Stages between Evaluation of
Alternatives and Purchase
 Non-Compensatory Models of Choice

• Conjunctive - the consumer sets a

minimum acceptable cutoff level for each
attribute and chooses the first alternative
that meets this minimum.
• Lexicographic - the consumer chooses the
best brand on the basis of its perceived
most important attribute.
• Elimination-by-aspects - the consumer
compares brands on a attribute selected
and brands not meeting this attribute are
eliminated.
Perceived Risk
Functional

Physical

Financial

Social

Psychological

Time
How Customers Use and Dispose of
Products
 Rural Consumer Behaviour

• Rural consumers are more brand loyal

• Restrictions on consumption
• Collective consumption behaviour: for
family rather than individual
• Seasonality of consumption based on
seasonality of agricultural
production/income
• Specific patterns in the five-stage
buying decision process
 Other Theories of
Consumer Decision Making

Involvement Decision Heuristics

• Elaboration • Availability
Likelihood Model • Representativeness
• Low-involvement • Anchoring and
marketing adjustment
strategies
• Variety-seeking
buying behavior
 Mental Accounting

• Consumers tend to…

• Segregate gains
• Integrate losses
• Integrate smaller losses with larger gains
• Segregate small gains from large losses
 Marketing Debate

 Is target marketing ever bad?

Take a position:
1. Targeting minorities is exploitive.
or
2. Targeting minorities is a sound
business practice.
 Marketing Discussion

 Do you have rules you employ in

spending money?
 Do you follow Thaler’s four principles
in reacting to gains and losses?