Consumer Behavior

Kotler Keller
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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Emerging Trends in Consumer Behavior

Metrosexual –
Straight urban man
who enjoys shopping
and using grooming
products

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What Influences Consumer Behavior?

Cultural
Cultural Factors
Factors

Social
Social Factors
Factors

Personal
Personal Factors
Factors

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Culture

The fundamental determinant of

a person’s wants and behaviors
acquired through socialization
processes with family
and other key institutions

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Subcultures

Nationalities
Nationalities

Religions
Religions

Racial
Racial groups
groups

Geographic
Geographic regions
regions

Special
Special interests
interests
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Social Factors (Contd…)
• Reference Group
• Membership Group
– Primary Group
– Secondary Group
– Aspirational Group
– Dissociative Group
• Opinion Leader

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Personal factors (contd…)
• Age & Stage in the life cycle
• Occupation & economic circumstances
• Lifestyles & Values
– Money constrained hand to mouth category (EDLP –
everyday low pricing, Walmart, Vishal,6Ten,
Subhiksha)
– Time constrained, multitasking category (convenience,
home delivery, check pick-up, RTE, RTS, convergent
technology, many in one gadgets etc)
– LOHAS (customers with conscience; Lifestyle of
Heallth & Sustainability) Body Shop, PETA, Organic
farming, non-azo dye textiles, pesticide free colas, rat
dropping free grains!!!

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Personal factors (contd…)
– can be of religious fervour too (Gulf customers
shunning Danish products due to cartoon controversy,
some section of Indian population being urged to shun
Godrej products for hosting Salman Rushdie etc, some
communities being asked not to buy ‘Fida’ Hussain
paintings, Aamir khan film tickets and some other
community being asked not to read Rushdie, Manto,
Ismat Chugtie, Taslima Nasreen books etc)
– Convenience Involvement segment – precooked
packaged food for working moms, cut vegetables in
Reliance Fresh & other malls, Meal Kits in Home
– Core Values

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Social Classes in Western
Markets

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

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Social Classes in Developing
Markets

• Upper uppers (Uber Rich)

• Lower uppers
• Upper middles Upwardly Mobile
• Middle class
• Working class
• Upper lowers (Aspiring)
• Lower lowers (BPL – Below Poverty
Line, Destitute)

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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
Family
groups

Social
Statuses
roles

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Reference Groups

Membership
Membership groups
groups

Primary
Primary groups
groups

Secondary
Secondary groups
groups

Aspirational
Aspirational groups
groups

Dissociative
Dissociative groups
groups
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Family

• Family of Orientation
– Religion
– Politics
– Economics

• Family of Procreation
– Everyday buying
behavior

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Targeting Women and Their Families

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Roles and Statuses

What degree of status is

associated with various
occupational roles?

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Personal Factors

Age
Self- Life cycle
concept stage

Lifestyle Occupation

Values Wealth
Personality

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Behavior changes
according to life
cycle stage

•Family
•Psychological
•Critical life events

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Brand Personality

Sincerity
Sincerity

Excitement
Excitement

Competence
Competence

Sophistication
Sophistication

Ruggedness
Ruggedness
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Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained

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Figure 6.1
Model of Consumer Behavior

6-22
Key Psychological Processes

Motivation Perception

Learning Memory

6-23
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,
satisfiers and
motivations unmet need
dissatisfiers

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Maslow’s Hierarchy of Needs

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Herzberg’s Two-Factor Theory

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Perception

Selective Attention

Selective Retention

Selective Distortion

Subliminal Perception
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Figure 6.3 Dole Mental Map

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Encoding Brand Associations

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Figure 6.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase
Behavior
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Problem Recognition

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Sources of Information

Personal Commercial

Public Experiential

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Figure 6.5 Successive Sets

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Evaluation of Attributes
Table 6.3

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Figure 6.6 Stages between Evaluation of
Alternatives and Purchase

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Non-compensatory Models of Choice

• Conjunctive
– Each brand must meet minimum cutoff
standard on attribute A and attribute B and
attribute C, etc.
• Lexicographic
– Chose brand that has the best performance on
most important criterion.
• Elimination-by-aspects
– Eliminate brands that do not meet minimum
standards of performance.
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Perceived Risk
Functional
Functional

Physical
Physical

Financial
Financial

Social
Social

Psychological
Psychological

Time
Time

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Figure 6.7 How Customers Use and
Dispose of Products

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Other Theories of
Consumer Decision Making

Involvement Decision Heuristics

• Elaboration • Availability
Likelihood Model • Representativeness
• Low-involvement • Anchoring and
marketing strategies adjustment
• Variety-seeking
buying behavior

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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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Marketing Debate

 Is Target Marketing Ever Bad?

Take a position:
1. Targeting minorities is exploitative.
2. Targeting minorities is a sound
business practice.

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Marketing Discussion

 What are your mental accounts?

Do you have rules you employ in

spending money?
Do you follow Thaler’s four principles
in reacting to gains and losses?

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