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 select, buy, use, and
dispose of goods services, ideas or
experiences to satisfy their needs and wants

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 Concept 1: What Influences Consumer
Behavior?
• Cultural Factors
• Social Factors
• Personal Factors

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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

A. Reference Groups

Primary Groups - family, friends, neighbors, co-

workers
Secondary Groups – religious, professional, trade-
union groups

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 Social Factors

B. Family

2 Families in a Buyer’s Life:

1. Family of Orientation
2. Family of Procreation

C. Roles and Status

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 Cultural Factors

Subcultures

• Nationalities
• Racial Groups
• Religions
• Geographical Locations

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 Personal Factors

• Occupation
• Age and Stage in the lifecycle
• Economic Circumstances
• Personality and Self Concept
• Lifestyle
• Time constraints
• Money constraints
• Values

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Concept 2: Freud’s Theory of Human
Motivation

Freud’s
Theory

Behavior
is guided by
subconscious
motivations

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Concept 3: Maslow’s Theory of
Human Motivation

Maslow’s
Hierarchy
of Needs

Behavior
is driven by
lowest,
unmet need

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 Concept 4: Herzberg’s Theory of
Human Motivation

Herzberg’s
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
2. Information Search

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 Buying Decision Process

3. Evaluation of Alternatives
– Beliefs and Attitudes
– Expectancy Value Model

4. Purchase Decision
• Non-compensatory Models of Consumer Choice
– decision short-cuts
• Conjunctive Heuristic

5. Post-purchase Behavior
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 Concept 6: Behavior Decision Theory

• Consumers don’t 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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