Analyzing

Consumer Markets

What is Consumer behavior?
• It includes all the thoughts, feelings, decisions & actions of the
consumer in the buying process. It also include all
environmental factors which influence the consumers.
• “consumer behavior is the actions & decision processes of
people who purchase goods and services for personal
consumption.”
• It has 4 types :
a) Routine Response of programmed behavior ,
b) limited decision making,
c) Extensive decision making,
d) inpulse buying

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? .

Figure 6.1 Model of Consumer Behavior .

How do consumer characteristics influence buying behavior? .

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 Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers .

Characteristics of Social Classes • Within a class. wealth) • Class designation is mobile over time . 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.

Social Factors Reference groups Family Social roles Statuses .

Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups .

Talk shawk 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 Selfconcept Life cycle stage Lifestyle Occupation Values Wealth Personality .

The Family Life Cycle .

Brand Personality Sincerity Excitement Competence Sophistication Ruggedness .

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Lifestyle Influences Multi-tasking Time-starved Money-constrained .

Faysal Bank of Pakistan has extended banking hours for time-pressed executives. .

What major psychological processes influence consumer responses to the marketing program? .

Key Psychological Processes Motivation Perception Learning Memory .

Motivation Sigmund Freud’s Theory Behavior is guided by subconscious motivations Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory Behavior is driven by the lowest. Un met need Behavior is guided by motivating and hygiene factors .

etc. Anal stage: children are being potty trained and learning to control the urges to expell urine and fecal matter. sucking on things. Interrupting this stage results in control issues like OCD . Oral stage: children derive sensual pleasure from their mouths. everything people do revolves around satisfying their subconscious urges. The goal of all human behavior is to acheive "love and work" Most of freud's theory is based on Greek drama and his own life. Interrupting this stage can cause fixations later in life like nail biting and excessive oral sex 2. It is done in stages: 1.Sigmund frued Human behavior stems from the desire to cater to our subconscious drives (sex and death or eros and thanatos in greek). 2. Meaning. They are discovering their limits and becoming independent. such as nursing.

etc). etc) 4. The ego is the balance between superego and id and behavior is a result of how much the individual was able to balance their id and superego. The ego of someone who leans strongly towards moral instituions and feeling would lean more towards the superego way of behaving. . Phallic stage: children and discovering sex differences.3. girls get penis envy. whereas someone who lets their innate and animalist drives take the reins would have an ego that is more similar to the id. mountains. Latency: the unconscious urges are put to rest during middle childhood and children focus on academic and sociel acheivement. boys feel confident about their sexual organs. Iterruption in this stage results in seeing penises everywhere and having a natural affinity towards phallic shapes (tall building. religion. There are no fixations from this stage. 5. Genital stage: adolescents and adults seek sexual stimulation and lasting relationships All behavior is a result of a conflict between the id (basic drives) and the superego (morals.

Maslow’s Hierarchy of Needs .

Herzberg’s Two-Factor Theory .

Perception Selective Attention Selective Retention Selective Distortion Subliminal Perception .