Market Segments

& Consumer Behavior

• Define the different buying roles;

• Identify the factors that affect consumer behavior
• Differentiate the different kinds of buying behavior.
• Define market segments;
• Identify the key premises behind market segmentation;
• Select a viable target market
 Lesson 1
Consumer Behavior
Factors That Affect Consumer Behavior

1. Culture 2. Social Factors

2. Personal Factors 4. Psychological

Factors
 Income vs. Socio-Economic Class

Income
Socio Economic Class
(SEC)

A personal demographic  A Social Factor.

factor.  It reflects the
How much do you earn? consumption reality that
How much is your the individual strongly
household family income believes in.
 AGE VS. LIFECYCLE
 Bachelor Stage:Young, single, independent
 Newly Wed: Young, no children, DINKS
 Full Nest I: with children, with youngest 6y.o below
 Full Nest II: with children, with youngest 6y.o above
 Full Nest III: families with dependent children
 Empty Nest I: Older couples, no children living with
them
 Empty Nest II: Older married couples, retired and
no children living with them
 Solitary Survivor: I: older, no family, and supporting
self.
 Solitary Survivor II: older, no family, retired
 Buying Roles

Initiator Buyer

Users Influencers
Decider
 Types of Buying Behavior
Bases for
Buying
Behavior
1. Perception of
the product
2. Attitude
toward the
product
category
 Logical vs. Emotional Decisions
Logical Emotional
 Rational  Inherited
 Objective from
ancestors
 We hope and
assume that  Attuned to
controls all our sensory
our decision experiences
making.
 Lesson 2
Consumer Market Segmentation
Demographic Behavioral
Quantifiable and factual How we behave in buying a
statistics of Population product

Psychographic Geographic
 How consumers see and  Physical location of the
feel about themselves. market.
 Hence, Psycho or of the  General characteristics
mind. of the location.
 Targeting
 Always consider the Firm’s size and growth.

 Assess the structural attractiveness of the potential

market.
 Identify the firms objectives & resources.

 Assess the segment’s potential economies of scope.

 Segment-by-segment invation.
 Positioning

 Act of establishing a strong

brand image for a product.
 Unique Selling Point (USP),
so what makes your product
different?
 A space that the product
owns in the minds of the
customers.
Points of Difference Points of Parity

Packaging