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6

Analyzing
Consumer Markets

Marketing Management, 13th ed

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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Consumer Behavior
Personal
Factors

Cultural
Factors

Social Factors

What is Culture?
Culture is the fundamental determinant
of a persons wants and behaviors
acquired through socialization
processes with family and other key
institutions.

Subcultures

Nationalities
Religions
Racial groups
Geographic regions
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Fast Facts About


American Culture
The average American:

chews 300 sticks of gum a year


goes to the movies 9 times a year
takes 4 trips per year
attends a sporting event 7 times each year

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Social Factors
Reference Groups

Family

Role and Status

Social Classes

Upper uppers
Lower uppers
Upper middles
Middle
Working
Upper lowers
Lower lowers

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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)
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 groups
Primary groups
Secondary groups
Aspirational groups
Disassociative groups

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Family Distinctions
Affecting Buying Decisions
Family of Orientation
Family of Procreation

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Personal Factors
Occupation

Value
s

Lifestyle
Economic situation

Personal Factors

Age
Life cycle stage
Occupation
Wealth

Personality
Values
Lifestyle
Self-concept

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Figure 7.2: The VALS segmentation system:


An 8-part typology

Groups with High


Resources
1. Actualizers
2. Fulfilleds
3. Achievers
4. Experiencers

Groups with Lower


Resources
1. Believers
2. Strivers
3. Makers
4. Strugglers

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Brand Personality

Sincerity
Excitement
Competence
Sophistication
Ruggedness

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Lifestyle Influences
Multi-tasking
Time-starved
Money-constrained

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Table 6.2 LOHAS (Lifestyles of Health


and Sustainability) Market Segments

Sustainable Economy
Healthy Lifestyles
Ecological Lifestyles
Alternative Health Care
Personal Development

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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

Behavior
is guided by
subconscious
motivations

Behavior
is driven by
lowest,
unmet need

Behavior is
guided by
motivating
and hygiene
factors

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Maslows Hierarchy of Needs

Physiological needs
Safety needs
Social needs
Esteem needs
Self-actualization needs

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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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Consumer Buying
Process
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior

Sources of Information

Personal
Commercial
Public
Experiential

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Figure 7.5: Successive Sets Involved in Customer


Decision Making

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The Buying Decision Process


Evaluation of Alternatives
Potential Attributes of interest
Cameras
Hotels
Mouthwash
Tires
Brand beliefs/attitudes
Brand image
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A Consumers Brand Beliefs


about Computers
Computer

Attribute
Memory
Capacity

Graphics
Capability

Size and
Weight

Price

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The Buying Decision Process


Strategies designed to stimulate interest in a
computer

Redesign the computer


Alter beliefs about the brand
Alter beliefs about competitors brands
Alter the importance weights
Call attention to neglected attributes
Shift the buyers ideas

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Steps Between Evaluation of


Alternatives and a Purchase Decision
Evaluation
of
alternatives
Attitude
of others
Purchase
intention

Purchase
decision
Unanticipated
situational
factors

2000 Prentice Hall

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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Elaboration Likelihood Model


(ELM)
Two basic routes to persuasion

Central route: is reflective, requires mental

effort, relies on cognitive elaboration, thinking


about, reflecting on a message
Motivation (willingness) to process a message
Ability to process (understand) a message

Example: Babbs is car shopping. She looks up

information comparing safety, reliability,


performance, customer satisfaction, mileage,
and depreciation for three makes of sporty
cars.

ELM, continued
The Peripheral route: is reflexive, based on

mental shortcuts, credibility, appearance cues,


quantity of arguments
heuristic cues (decision rules): rules for simplifying

the thought process


Experts can be trusted, As seen on TV
Source attractiveness (celebrity endorsements) Brad
Pitt is in the movie, so it has to be good.
Perceived similarity: Ill study with her, shes a
Christian too.

Alcohol ads and peripheral


processing
American children view 2,000 beer

and wine commercials per year


(American Academy of Pediatrics,
1995).
Beer advertisements are a significant
predictor of adolescent preference for
beer brands (Gentile, 2001).
56% of students in grades 5-12 say
that alcohol advertising encourages
them to drink (American Academy of
Pediatrics, 2001).

Petty & Cacioppos ELM

Central or peripheral processing?


Typical

tobacco ad
and two
counter-ads
advocating
an antismoking
message

Involvement and the ELM


The role of involvement in the topic or issue:
high involvement increases the likelihood of central
processing, e.g. message scrutiny
low involvement increases the likelihood of peripheral
processing.
high involvement decreases reliance on credibility
(peripheral cue)

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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