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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 Crest Used Mobile Phones to Engage
Consumers in Its Irresistibility
Campaign

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 What Influences
Consumer Behavior?

Cultural
Cultural Factors
Factors

Social
Social Factors
Factors

Personal
Personal Factors
Factors

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 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.

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 Subcultures

Nationalities
Nationalities

Religions
Religions

Racial
Racial groups
groups

Geographic
Geographic regions
regions

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 David’s Bridal Targets the Latino Sub-
Culture with its Collection of
Quinceañera Dresses

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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 Classes

Upper uppers
Lower uppers
Upper middles
Middle class
Working class
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
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 Distinctions
Affecting Buying Decisions

• Family of Orientation
• Family of Procreation

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 Radio Shack Targets Women with
Female Store Managers

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 Roles and Status

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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 The Family Life Cycle

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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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 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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 Figure 6.1
Model of Consumer Behavior

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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 the lowest, motivating
motivations unmet need and hygiene
factors
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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 State Farm Mental Map

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 Bahlsen Uses Crunchy Sounds to
Encode 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 Involved in
Consumer Decision Making

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 Table 6.4 A Consumer’s Evaluation of
Brand Beliefs About Laptops

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 Figure 6.6 Stages between Evaluation
of Alternatives and Purchase

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 Non-Compensatory Models of Choice

• Conjunctive
• Lexicographic
• Elimination-by-aspects

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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 adjustment
strategies
• 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 exploitive.
or
2. Targeting minorities is a sound
business practice.

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 Marketing Discussion

 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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