Marketing Management, 12/e A South Asian Perspective

6 Analyzing Consumer Markets

Kotler Keller Koshy Jha

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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What Influences Consumer Behavior? Cultural factors  Social factors  Personal factors


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Culture
The fundamental determinant of a persons wants and behaviors acquired through socialization processes with family and other key institutions.

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Subcultures
Nationalities  Religions  Racial groups  Geographic regions  Special interests


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Socioeconomic Classification (SEC) MatrixIndia (Urban)

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SEC MatrixIndia (Rural)

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Socioeconomic Class-wise Distribution of Households (%)

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Indian Households by Income Groups

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Age Distribution of PopulationIndia

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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, and education). Class designation is mobile over time.

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Social Factors
Reference groups

Family

Social roles

Statuses

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Reference Groups
Membership  Primary  Secondary  Aspirational  Dissociative


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Family


Family of orientation Religion Politics Economics Family of procreation Everyday buying behavior

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Personal Factors
   

Age Life cycle stage Occupation Wealth

   

Personality Values Lifestyle Self-concept

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Stages in the Family Life Cycle

1. Bachelor stage: Young, single, not living at home 2. Newly married couples: Young, no children 3. Full nest I: Youngest child under six Few financial burdens. Fashion opinion leaders. Recreation oriented. Buy: basic home equipment, furniture, cars, equipment for the mating game; vacations. Highest purchase rate and highest average purchase of durables: cars, appliances, furniture, vacations. Home purchasing at peak. Liquid assets low. Interested in new products, advertised products. Buy: washers, dryers, TV, baby food, chest rubs and cough medicines, vitamins, dolls, wagons, sleds, skates.

4. Full nest II: Financial position better. Less influenced by Youngest child six or over advertising. Buy larger-size packages, multipleunit deals. Buy: many foods, cleaning materials, bicycles, music lessons, pianos.

See text for complete table

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Brand Personality
Sincerity  Excitement  Competence  Sophistication  Ruggedness


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Motivation
Biogenic  Psychogenic they arise from the psychological state of tension such as need for recognition, esteem  Motive is need that sufficiently pressing to drive the person to act


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Key Psychological Processes

Motivation  Perception  Learning  Memory


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Motivation
Freuds theory  Maslows hierarchy of needs  Herzbergs two-factor theory


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INFLUENCING BUYER BEHAVIOR Maslows Theory

Maslows Hierarchy of Needs

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INFLUENCING BUYER BEHAVIOR Herzbergs Theory

Dissatisfiers  Satisfiers


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Perception
Selective attention  Selective retention  Selective distortion  Subliminal perception


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Figure 6.4 Consumer Buying Process

Problem recognition  Information search  Evaluation  Purchase decision  Postpurchase behavior


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Sources of Information
Personal  Commercial  Public  Experiential


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Non-compensatory Models of Choice

Conjunctive  Lexicographic  Elimination-by-aspects



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Perceived Risk
  

Functional Physical Financial

  

Social Psychological Time

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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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