Marketing Planning and Applications

Lecture 6

Analyzing Consumer Markets

Discussion Questions
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?

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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
or wants.

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 Model of Consumer Behavior

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 What Influences
Consumer Behavior?

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 Personal Factors

Cultural Factors

Social Factors

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 Cultural Factors
Social Class

Culture

Subculture
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 Culture and subcultures
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

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 Major Social Classes

Upper Class
Upper Uppers (1 percent)
Lower Uppers (2 percent)
Middle Class
Upper Middles (12 percent)
Middle Class (32 percent)
Working Class (38 percent)
Lower class
Upper Lowers (9 percent)
Lower Lowers (7 percent)

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Social and personal Factors
Family
Reference Groups

Role and Status

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 Social factors
Reference Groups

• Opinion leader. is the person who offers advice or

information about a specific product or product category,
• Membership groups. Groups having a direct influence
• Aspirational groups are those a person hopes to join;
• Dissociative groups are those whose values or behavior an
individual rejects.

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 Social factors

• Role and status

• Family

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 Personal Factors
• Age
• Life cycle stage
• Occupation
• Wealth
• Personality
• Values
• Lifestyle
• Self-concept

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 Characteristics Affecting Consumer Behavior
Personal Factors
• Sincerity (down-to-earth, honest,, and
cheerful),
• Excitement (daring, spirited, imaginative,
and up-to-date),
• Competence (reliable, intelligent, and
successful),
• Sophistication (glamorous, upper class,
charming), and
• Ruggedness (outdoorsy and tough).
 Psychological Factors

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 Key Psychological Processes
• Motivation
• Perception
• Learning
• Memory

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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, motivating
motivations unmet need and hygiene
factors

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Maslow’s Hierarchy
of Needs

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Perception
Selective
Attention

Selective Retention

Subliminal
Perception

Selective
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 Perception
Selective attention is the tendency for people to screen out most of
the information to which they are exposed
Selective distortion is the tendency for people to interpret information
in a way that will support what they already believe
Selective retention is the tendency to remember good points made
about a brand they favor and forget good points about competing
brands
Subliminal perception Subliminal messages and perception are linked
to the idea of mind control

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 Learning
Drive becomes a motive when it is directed toward a particular
stimulus object
Cues are minor stimuli that determine when, where, and how the
person responds
Discrimination means we have learned to recognize differences in sets
of similar stimuli and can adjust our responses accordingly.

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 Emotions

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 The Buying Decision Process

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 Problem Recognition “I’m Hungry”

Stimulus
• Internal
• External

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 ed
fin
De INFORMATION SEARCH
Personal. Family, friends, neighbors, acquaintances
Commercial. Advertising, Web sites, salespersons, dealers,
packaging, displays
Public. Mass media, consumer-rating organizations
Experiential. Handling, examining, using the product

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 Evaluation of Alternatives
Beliefs

Attitudes
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Purchase Decision
Noncompensatory Models

Choice Heuristics:
• Conjunctive
• Lexicographic
• Elimination-by-aspect
Purchase Brand
decisions
Dealer
Quantity
Timing
Payment method

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 Non-Compensatory Models of Choice: Heuristics
• Conjunctive: The consumer sets a minimum acceptable cutoff
level for each attribute and chooses the first alternative that
meets the minimum standard for all attributes.
• Lexicographic: The consumer chooses the best brand on the
basis of its perceived most important attribute. (Mobile
Phones)
• Elimination-by-aspects: Elimination of brands based on
negative attributes(Mobile phone compare facility on websites)
eliminates brands that do not meet minimum acceptable cutoffs

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Post purchase Behavior Delighted
Post purchase Satisfaction
Satisfied

Dissatisfied

Loyal

Stay or Go

Post purchase Actions

Defect
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 Disclaimer:
The contents of these slides are adapted from book
Marketing Management (15th Edition) by Philip T. Kotler and Kevin Lane Keller.
It is solely for the purpose of teaching marketing concepts and assessing
Marketing Planning and Applications student at Iqra University.

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Thank you