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ANALYZING

CONSUMER
MARKETS

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Key Questions
1. What Influences Consumer
Behavior?
2. What are the Three Theories of
Human Motivation?
3. What are the Five Stages of
Consumer Buying Process?
4. What is Behavioral Decision
Theory?

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What is Consumer
Behavior?
Study
of how individuals, groups,
and organizations
buy, use, and dispose

select,
of goods

services, ideas or

experiences to satisfy their needs and wants

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Individuals or
groups acquiring
and disposing of
products, services,
ideas or
experiences
Includes search for
information and
actual purchase
Includes an
understanding of
consumer thoughts ,
feelings and actions.
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Concept 1: What Influnces


Consumer Behavior?
Cultural Factors

Social Factors

Personal Factors

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Cultural Factors
Subcultures
Nationalities
Racial Groups
Religions

Geographical Locations
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Example of Nationalities /
Religion

McDonalds is a brilliant example of adaptation to the specificities of each culture and each
market. Well aware of the importance to have an offer with specific products to meet the
needs and tastes of consumers from different cultures, the fast-food giant has for example:
a McBaguette in France (with french baguette and Dijon mustard), a Chicken Maharaja Mac
and a Masala Grill Chicken in India (with Indian spices) as well as a Mega Teriyaki Burger
(with teriyaki sauce) or Gurakoro (with macaroni gratin and croquettes) in Japan.
While all the ingredients used by McDonalds in arabic andmuslim countries are certified
halal. The fast food chain not offering, of course, any product with bacon or pork.
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Example of Racial
groups / ethnicities /
Geographical Locations

For example in recent years, the segment of


ethnic cosmetics has greatly expanded. These
are products more suited to non-Caucasian
populations and to types of skin pigmentation for
african, arab or indian populations for example.
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Social Factors
A. Reference Groups
Primary Groups - family, friends,
neighbors, co-workers
Secondary Groups religious,
professional, trade-union groups

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Social Factors
Aspirational Groups those that a
person wishes to join

Dissociative Groups those whose


values or behavior an individual
rejects

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Social Factors
B. Family
2 Families in a Buyers Life:
1.Family of Orientation
2.Family of Procreation

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Example of Family in Buying


Decision

This is the family in which a person takes birth. The


influences of parents and individuals upbringing
have a strong effect on the buying habits. For
instance, an individual coming form an orthodox
Tamil or Gujarati vegetarian family may not
consume meat or egg even though she may
appreciate its nutritional values.
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Social Factors
C. Roles and Status

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Example of Roles & Status

For example, a consumer may buy a Ferrari or a Porsche for the


quality of the car but also for the external signs of social success
that this kind of cars represents. Moreover, it is likely that a CEO
driving a small car like a Ford Fiesta or a Volkswagen Golf would
be taken less seriously by its customers and business partners
than if he is driving a german luxury car.
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Personal Factors
Age and Stage in the Lifecycle

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Age and Stage of life


example

Teenagers would be more interested in buying bright and loud colours as


compared to a middle aged or elderly individual who would prefer decent and
subtle designs.
A bachelor would prefer spending lavishly on items like beer, bikes, music,
clothes, parties, clubs and so on. A young single would hardly be interested in
buying a house, property, insurance policies, gold etc.An individual who has a
family, on the other hand would be more interested in buying something which
would benefit his family and make their future secure.

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Personal Factors
Occupation

Economic Circumstances
Personality and Self Concept

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Personal Factors
Lifestyle
Time
Constrained

Money
Constrained

Values

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Example of Personality and Self Concept

For example, since its launch, Apple cultivates an image of


innovation, creativity, boldness and singularity which is able to
attract consumers who identify to these values and who feel valued
in their self-concept by buying a product from Apple.

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Concept 2: Freuds Theory


of Human Motivation
Freuds
Theory
Behavior
is guided by
subconscious
motivations

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Concept 3: Maslows
Theory of Human Motivation
Maslows
Hierarchy
of Needs
Behavior
is driven by
lowest,
unmet need
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Concept 4: Herzbergs
Theory of Human Motivation
Herzbergs
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors
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Concept 5: Buying Decision


Process

1. Problem Recognition
Internal
Stimuli

External
Stimuli

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Buying Decision Process


2. Information Search

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Buying Decision Process


3. Evaluation of Alternatives
Beliefs and Attitudes
Expectancy Value Model

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Buying Decision Process


4. Purchase Decision
Non-compensatory Models of
Consumer Choice decision short-cuts
Cojunctive Heuristic

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Buying Decision Process


Lexicographic Heuristic
Elimination by Aspect
Heuristic

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Buying Decision Process


Intervening Factors
Influence of Others
Unanticipated Situational Factors
Mitsubishi to
recall
Montero units
due to weld
issues
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Buying Decision Process


5. Post-purchase Behavior

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Concept 6: Behavior
Decision Theory

Consumers dont always make


deliberate or rational decisions.
Decision Heuretics
1. Availability Heuristic decision
based on a past outcome

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Behavior Decision Theory


2. Representativeness Heuristic
predictions based on how similar the
outcome is to other examples

3.Anchoring and Adjustment Heuristic


first impressions

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Conclusion
Marketers must have a thorough
understanding of how consumers
think, feel, and act.
A connection must be made between
companies and consumers

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ANALYZING
CONSUMER
MARKETS

Mary Anne Cuartero


September 18, 2013

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