ANALYZING

CONSUMERS
MARKETS
BY :
DARREN D. SALMORIN
 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?
• In what ways do consumer stray from a
deliberative, rational decision
process?
 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?
• In what ways do consumer stray from a
deliberative, rational decision
process?
 CONSUMER BEHAVIOR
Is the study of how individuals,
groups, and organizations
select, buy, use, and dispose of
goods, services, ideas, or
experiences to satisfy their
needs and wants.
WHAT INFLUENCES BEHAVIOR?

CULTURAL
FACTORS
SOCIAL
FACTORS
PERSONAL
FACTORS
WHAT INFLUENCES BEHAVIOR?

CULTURAL
FACTORS
SOCIAL
FACTORS
PERSONAL
FACTORS
 CULTURAL FACTORS
THREE IMPORTANT INFLUENCES IN
BUYING BEHAVIOR:
• CULTURE
• SUBCULTURE
• SOCIAL CLASS
CULTURE – is the fundamental
determinant of a person’s wants
and behaviors acquired through
socialization processes with
family and other key
institutions.
SUBCULTURE – A group that has
beliefs and behaviors that are
different from the main groups
within a culture or society. It
includes nationalities,
religions, racial groups, and
geographical regions.
SOCIAL CLASS – A division of a
society based on social and
economic status.
 UP
PE
R
UP
PE
LOWER
RS
UPPERS
UPPER
MIDDLES
MIDDLE CLASS

WORKING CLASS

UPPER LOWERS

LOWER LOWERS
WHAT INFLUENCES BEHAVIOR?

CULTURAL
FACTORS
SOCIAL
FACTORS
PERSONAL
FACTORS
 SOCIAL FACTORS
FOUR IMPORTANT INFLUENCES IN
BUYING BEHAVIOR:
• REFERENCE GROUPS
• FAMILY
• SOCIAL ROLES
• STATUSES
REFERENCE GROUPS – are all the
groups that have a direct
(face-to-face) or indirect
influence on their attitudes or
behavior. These are the
following
 Reference Group

Membership/Direct Indirect

Primary Secondary Aspirational Dissociative

Primary – whom the person interacts
fairly continuously and informally
such as family, friends, neighbors,
and co workers.
Secondary – whom the person
interacts more formal and require
less continuous interaction such as
religious, professional, and trade
union groups.
Aspirational – are those a
person hopes to join.
Dissociative – values or
behavior an individual rejects.
FAMILY – most important consumer
buying organization in society, and
family members constitute the most
influential primary reference group.
TWO TYPES:
FAMILY OF ORIENTATION – Parents and
siblings
FAMILY OF PROCREATION – Person’s
Spouse and children
ROLES – consists of the
activities a person is expected
to perform.
STATUS – the position or rank of
someone or something when
compared to others in a society,
organization, group, etc.
WHAT INFLUENCES BEHAVIOR?

CULTURAL
FACTORS
SOCIAL
FACTORS
PERSONAL
FACTORS
 PERSONAL FACTORS
Personal characteristics that
influence a buyer’s decision
includes:
• Age and Stage in the Life Cycle
• Occupation and Economic
Circumstance
• Personality and Self-Concept
• Lifestyle and Values
 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?
• In what ways do consumer stray from a
deliberative, rational decision
process?
Consumer decisions are also
influenced by core values, the
belief systems that underlie
attitudes and behaviors. Core
values go much deeper than
behavior or attitude and at a
basic level guide people’s
choices and desires over the
long term.
KEY PSYCHOLOGICAL PROCESSES

MOTIVATION PERCEPTION

LEARNING EMOTIONS

MEMORY
KEY PSYCHOLOGICAL PROCESSES

MOTIVATION PERCEPTION

LEARNING EMOTIONS

MEMORY
 MOTIVATION
We all have many needs at any
given time. A need becomes motive
when it is aroused to a
sufficient level of intensity to
drive us to act.
The three best-known theories of
human motivation:
• Sigmund Freud
• Abraham Maslow
• Frederick Herzberg
FREUD’S THEORY
Sigmund Freud assumed the
psychological forces shaping
people’s behavior are largely
unconscious and that a person
cannot fully understand his or
her own motivations.
MASLOW’S THEORY
His answer is that human needs are
arranged in a hierarchy from most to
least pressing – from physiological
needs to safety needs, social needs,
esteem needs, and self actualization
needs. People will try to satisfy
their most important need first and
then move to the next.
HERZBERG’S THEORY
A two-factor theory that
distinguishes dissatisfiers from
satisfiers. The absence of
dissatisfiers is not enough to
motivate a purchase; satisfiers
must be present.
KEY PSYCHOLOGICAL PROCESSES

MOTIVATION PERCEPTION

LEARNING EMOTIONS

MEMORY
 PERCEPTION
Is the process by which we
select, organize, and interpret
information inputs to create a
meaningful picture of the world.
Consumers perceive many
different kinds of information
through their senses.
People emerge with different
perceptions of the same object
because of three perceptual
processes:
• Selective Attention
• Selective Distortion
• Selective Retention
Selective Attention – the
marketers must work hard to
attract consumers’ notice. Here
is the finding:
People are more likely to notice
stimuli that relate to a current
need, they anticipate, and whose
deviations are large in
relationship to the normal size
of the stimuli.
Selective Distortion – is the
tendency to interpret
information in a way that fits
our preconceptions.
Selective Retention –
remembering good points about a
product we like and forget good
points about competing products.
KEY PSYCHOLOGICAL PROCESSES

MOTIVATION PERCEPTION

LEARNING EMOTIONS

MEMORY
 LEARNING
Learning induces changes in our
behavior arising from
experience. Most human behavior
is learned, though much learning
is incidental.
KEY PSYCHOLOGICAL PROCESSES

MOTIVATION PERCEPTION

LEARNING EMOTIONS

MEMORY
 EMOTIONS
A strong feeling(such as love,
anger, joy, hate, or fear). An
emotion-filled brand story has
been shown to trigger’s people
desire to pass along things they
hear about brands, through
either word of mouth or online
sharing.
 MEMORY
• Cognitive psychologists distinguish
between short term memory(STM) a
temporary and limited repository of
information- and long term memory
(LTM)- a more permanent,
essentially unlimited repository.
All the information and experiences
we encounter as we go through life
can end up in our long term memory.
MEMORY PROCESSES
Memory Encoding – describes how
and where information gets into
memory. The more attention we
pay to the meaning of
information during encoding, the
stronger the resulting
associations in memory will be.
Memory Retrieval- is the way
information gets out of memory.
Three facts are important about
memory retrieval.
1.The presence of other product
information in memory can
produce interference effects
and cause us to either overlook
or confuse new data.
2. The time between exposure to
information and encoding has
been shown generally to produce
only gradual decay.
3.Information may be available
in memory but not be accessible
for recall without proper
retrieval cues or reminder.
 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?
• In what ways do consumer stray from a
deliberative, rational decision
process?
 THE BUYING DECISION
PROCESS:THE FIVE STAGE MODEL
PROBLEM
RECOGNITION

INFORMATION
SEARCH

EVALUATION OF
ALTERNATIVES

PURCHASE
DECISION

POSTPURCHASE
BEHAVIOR
 PROBLEM RECOGNITION
The buying process starts when the
buyer recognizes a problem or need
triggered by internal or external
stimuli. With an internal
stimulus, one of the person’s
normal needs- hunger, thirst, sex-
rises to a threshold level and
becomes a drive. A need can also
be aroused by external stimuli.
 INFORMATION SEARCH
Marketers must understand what type of
information consumers seek – or at
least receptive to- a different times
and places.
Information sources fall into four
groups:
• Personal
• Commercial
• Public
• Experiential
EVALUATION OF ALTERNATIVES

Consumers will pay most

attention to attributes that
deliver the sought-after
benefits. We can often segment
the market for a product
according to attributes and
benefits important to different
consumer groups.
 PURCHASE DECISION
In the evaluation stage, the
consumer forms preferences among
the brands in the choice set and
may also form an intention to buy
the most preferred brand. In
executing a purchase intention,
the consumer may make as many as
five subdecisions: brand, dealer,
quantity, timing and payment
 POSTPURCHASE BEHAVIOR
After the purchase, the consumer might
experience dissonance from noticing
certain disquieting features or
hearing favorable things about other
brands and will alert to information
that supports his or her decision. It
triggers the following:
• Postpurchase Satisfaction
• Postpurchase Actions
• Postpurchase Uses and Disposal
 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?
• In what ways do consumer stray from a
deliberative, rational decision
process?
BEHAVIORAL DECISION THEORY AND
BEHAVIORAL ECONOMICS
Consumers are constructive
decision makers and subject to
many contextual influences. They
often exhibit low involvement in
their decisions, using many
heuristics (using experience to
learn and improve)
as a result.
END OF REPORT