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Chapter
6
Analyzing
Consumer
Markets

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Learning Objectives
1. How do consumer characteristics influence
buying behavior?
2. What major psychological processes influence
consumer responses to the marketing program?
3. How do consumers make purchasing
decisions?
4. In what ways do consumers stray from a
deliberative, rational decision process?

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What Influences Consumer

Behavior?
• Consumer behavior
– 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
– Influenced by cultural, social, and personal
factors

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What Influences Consumer

Behavior?
• Cultural factors

– Culture

– Subcultures

– Social classes

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What Influences Consumer

Behavior?
• Social factors

Reference groups

Cliques

Family

Roles and status

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Reference Groups

• Membership groups
– Primary vs. secondary

• Aspirational groups

• Dissociative groups

• Opinion leader

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Family
• Family of orientation vs. family of
procreation

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What Influences Consumer

Behavior?
• Personal factors
– Age/stage in life cycle
– Occupation and
economic
circumstances
– Personality and self-
concept
– Lifestyle and values

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LIFE-STAGE

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Key Psychological Processes

Motivation

Memory Perception

Emotions Learning

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Figure 6.1
Model Of Consumer Behavior

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Key Psychological Processes

• Motivation
– A need becomes a motive when it is aroused
to a sufficient level of intensity to drive us to
act

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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, dissatisfiers
motivations unmet need and
satisfiers

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Figure 6.2
Maslow’s Hierarchy Of Needs

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Key Psychological Processes

• Perception
– The process by
which we select,
organize, and
interpret information
inputs to create a
meaningful picture
of the world

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Perception

Selective attention

Selective distortion

Selective retention

Subliminal perception

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Key Psychological Processes

• Learning
– Induces changes in our behavior arising from
experience
– Drive and cues
– Generalization and discrimination

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Key Psychological Processes

• Emotions

– Many different
kinds of emotions
can be linked to
brands

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Key Psychological Processes

• Memory
– Short-term vs. long-term memory
– Associative network memory model
– Brand associations
– Memory encoding
– Memory retrieval

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The Buying
Decision Process
• The consumer typically
passes through five stages
– Problem recognition
– Information search
– Evaluation of alternatives
– Purchase decision
– Postpurchase behavior

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The Buying
Decision Process
• Problem recognition
– The buyer recognizes a problem/need
triggered by internal/external stimuli

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The Buying
Decision Process
• Information search

 Personal sources
 Commercial sources
 Public sources
 Experiential sources

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Figure 6.5
Sets Involved In Decision Making

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The Buying
Decision Process
• Evaluation of alternatives
– Expectancy-value model

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The Buying
Decision Process
• Purchase decision
– Compensatory vs. noncompensatory models

Conjunctive heuristic

Lexicographic heuristic

Elimination-by-aspects heuristic
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Intervening factors

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Types of perceived risk

Functional
Physical risk
risk

Financial
Time risk risk

Psychological
Social risk
risk

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The Buying
Decision Process
• Postpurchase
behavior
– Postpurchase
satisfaction

– Postpurchase actions

– Postpurchase uses
and disposal
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Figure 6.7
Customer Product Use/Disposal

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Moderating Effects on Consumer

Decision Making
• Low-involvement Consumer Decision
Making
• Variety-Seeking Buying Behavior

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Behavioral Economics
• Decision Heuristics
– Availability heuristic
– Representativeness heuristic
– Anchoring and adjustment heuristic
• Framing
– Mental accounting

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Project – Group 1
• You have in the process of making a
marketing plan for a product such as
cereals.
• Present some of the key insights that you
have learned from this chapter and how
you will use them in preparing the
marketing plan.

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PROJECT EVALUATION – 30 MARKS

• Project summary report - 5 marks
• Group Project presentation (20- 25 min) – 15 marks
• Individual presentation – 5 marks
• Class participation – 5 marks
 Content Simplicity.
 Depth of the research / study.
 Understanding & correct application of key concepts.
• Soft copy of the ppt to be emailed.
• 4 page report (Executive summary) to be submitted
• Please get a hard copy of the presentation (handout format)
with your Roll numbers at the time of presentation

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Thank you

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