3/6

Analyzing
Consumer Markets
3(16 Ed)
th

1/28
2/28
3/28
4/28
Contents

1. What Influences Consumer

Behavior?
2. Key Psychological Processes
3. The Buying Decision Process: The
Five Stage Model

5/28
 1) What Influences Consumer
Behavior?

6/28
1) What Influences Consumer Behavior 1/13
Consumption Violence !!!!

7/28
8/28
 Consumer Behavior
The field of Consumer Behavior:

“studies how individuals

learn, select, buy, use, dispose &
unlearn
dif solutions to satisfy their needs”

“studies how individuals, groups, and

organizations learn, select, buy, use,
dispose & unlearn of goods,
services, ideas, or experiences to
satisfy their needs and desires.”
9/28
1) What Influences Consumer Behavior 2/13
Chapter 2 - 10
Learn (someone need to educate our customer)
Who will do it: marketers

11/28
 Model of Consumer Behavior
Stimulus Response Model

12/28
1) What Influences Consumer Behavior 4/13
13/28
In optics, a prism is a transparent optical
element with flat, polished surfaces that
refract light. At least two of the flat surfaces
must have an angle between them.
When light passes through
a prism the light bends. As a result, the
different colors that make up
white light become separated.
This happens because each color has a
particular wavelength and each wavelength
bends at a different angle.

14/28
 What Influences Consumer Behavior?
• Cultural Factors
• Social Factors
• Personal Factors
• Psychological Factors

15/28
1) What Influences Consumer Behavior 6/13
Overall Model Of Consumer Behavior
 Culture
• A consumer’s buying behavior is
influenced by cultural, social, and personal
factors.
• Of these, cultural factors exert the
broadest and deepest
influence.

17/28
 1.1.a) Culture

According to Williams (1983),

“culture” is one of the two or three
most complicated words in the
English language.[i]

[i] Raymond Williams, Keywords: a vocabulary of culture and society (London:

Fontana Paperbacks, 1983), 83.

18/28
1) What Influences Consumer Behavior 7/13
 1.1.a) Culture: Definition
According to Hofstede (1994), every person has his/her
own patterns of thinking, feeling, and potential acting
which were learned throughout their lifetime. Most of
them have been acquired in early childhood, because
at that time a person is most susceptible to learning
and assimilating.
As soon as certain patterns of thinking, feeling and
acting have established within a person’s mind, one
must unlearn these before being able to learn
something different, and unlearning is more difficult
than learning for the first time.
As computers are programmed, human brain is also
programmed. Hofstede called it the software of the
mind. The source of one’s mental programs lie within
the social environments in which one grew up and
collected one’s life experiences.
Finally, Hofstede addressed the mental software as
“culture”.[i]
[i] Geert Hofstede, Cultures and organizations: software of the mind: intercultural cooperation and its importance for survival (London:
HarperCollins, 1994), 4-5.

19/28
1) What Influences Consumer Behavior 8/13
 Culture
• Culture is learned and shared
• Culture is adaptive (natural selection)
• Culture is Dynamic
21/28
22/28
23/28
24/28
25/28
26/28
 1.1.b) Subcultures

• Nationalities
• Religions
• Racial groups
• Geographic regions

27/28
1) What Influences Consumer Behavior 9/13
 1.1.c) Social Classes
Social classes are society’s relatively permanent and ordered
divisions
whose members share similar
values,
interests, and
behaviors.
Social class is not determined by a single factor, such as
income,
but is measured as a combination of
occupation,
income,
education,
wealth, and
other variables
28/28
1) What Influences Consumer Behavior 10/13
The Major
American
Social
Classes
 1.1.c) Social Classes
Indian Social Classes
Socio economic classification (SEC)
Urban Households • Rural Households
• A1
• A2
• R1 (landlord)
• B1 • R2
• B2 • R3
• C
• D
• R4(agri labor)
• E1
• E2

30/28
1) What Influences Consumer Behavior 10/13
 1.2) Social Factors
• Reference groups
– Membership Groups
• Primary: (Family/Friends/ Coworkers/neighbors)
Continuous

• Secondary: Less Continuous (religious/professional/CBA)

– Aspirational vs. dissociative groups
– Opinion Leader
• Family
– Family of orientation (parents & siblings)
– Family of procreation (spouse & kids)
• Social roles and statuses
Role: Senior VP and his status
Role: AVP and his Status
31/28
1) What Influences Consumer Behavior 11/13
 Cliques
• Cliques: Communication researchers propose a
social-structure view of interpersonal
communication. They see society as consisting of
7

cliques, small groups whose members interact

frequently. Clique members are similar, and their
closeness facilitates effective communication but also
insulates the clique from new ideas.

32/28
 1.3) Personal Factors

• Age & Stage in life cycle

• Occupation & Economic circumstances
• Personality & Self-concept
• Lifestyle & Values (Core Values & Peripheral Values)

33/28
1) What Influences Consumer Behavior 12/13
 1.3) Personal Factors
• Personality
Personality, is a set of distinguishing human psychological traits that lead to relatively
consistent & enduring responses to environmental stimuli.

Personality is often described in terms of such traits as self-confidence, dominance,

autonomy, deference, sociability, defensiveness, & adaptability.

• Brand personality as the specific mix of human traits that may be attributed to a
particular brand.
• Stanford's Jennifer Aaker conducted research into brand personalities & identified the
following five traits:
1. Sincerity (down-to-earth, honest, wholesome, and cheerful)
2. Excitement (daring, spirited, imaginative, and up-to-date)
3. Competence (reliable, intelligent, and successful)
4. Sophistication (upper-class and charming)
5. Ruggedness (outdoorsy and tough)

34/28
What Influences Consumer Behavior 13/13
Excitement (daring, spirited,
imaginative, and up-to-date)

35/28
36/28
 Ruggedness
Urban Armor Gear [UAG]

URBAN ARMOR GEAR produces the most

rugged, lightweight, cases that are drop
tested to US Military Specs

37/28
38/28
39/28
40/28
41/28
42/28
 2010 Defunct

GM is active in licensing the Hummer. Various companies have licensed the Hummer
trademarks for use on colognes, flashlights, bicycles, shoes, coats, hats, laptops, toys,
clothing, CD players, and other items. An electric quadricycle badged as a Hummer is
43/28
currently produced in the UK.
Sophistication

44/28
Competence
(reliable,
intelligent,
and
successful)
45/28
 Self-concept
Dimensions of a
Consumer’s Self-Concept
47/28
 2) Key Psychological Processes

48/28
2) Key Psychological Processes 1/11
 2) Key Psychological Processes

• Motivation: Freud, Maslow, Herzberg

• Perception
• Learning
• Memory

49/28
2) Key Psychological Processes 2/11
 The Nature of Motivation

Motivation is the reason for behavior.

Need becomes a motive when it is aroused to a sufficient
level of intensity to drive us to act. Motivation has both direction—we select one
goal over another—and intensity—we pursue the goal with more or less vigor.

A motive is a construct representing an unobservable inner

force that stimulates and compels a behavioral response
and provides specific direction to that response.

There are numerous theories of

motivation, and many of them
offer useful insights for the
marketing manager.
10-50
 Sigmund Freud

Sigmund Freud (1856 –1939, was an

Austrian neurologist) assumed that
the psychological forces shaping
people's behavior are largely
unconscious, and
that a person cannot fully understand
his or her own motivations.

51/28
2) Key Psychological Processes 3/11
 Maslow’s
Hierarchy
of Needs

52/28
2) Key Psychological Processes 4/11
 Frederick Herzberg

Frederick Herzberg (1923–2000, was a

psychologist who became one of the
most influential names in business
management ) developed a two-factor
theory that distinguishes
• Dissatisfiers/Hygiene (factors that
cause dissatisfaction) and
• Satisfiers/Motivator (factors that
cause satisfaction).
The absence of dissatisfiers is not
enough; satisfiers must be present to
motivate a purchase.
53/28
2) Key Psychological Processes 5/11
Herzberg’s Two-Factor Theory

54/28
 Perception (plural perceptions) noun
Origin: 14th century. Via French< Latin

1. perceiving: the process of using the senses to

acquire information about the surrounding
environment or situation the range of human
perception

2. impression: an attitude or understanding based on

what is observed or thought

3. powers of observation: the ability to notice or

discern things that escape the notice of most
people

4. psychology: neurological process of observation

and interpretation: any neurological process of
acquiring and mentally interpreting information
from the senses
55/28
2) Key Psychological Processes 6/11
 Perception
• Selective Attention: It has been estimated
that the average person may be exposed
to over 1,500 ads or brand
communications a day. Because a person
cannot possibly attend to all of these,
most stimuli will be screened out—a
process called selective attention.

• Selective Distortion: Selective distortion

is the tendency to interpret information in
a way that will fit our preconceptions.
Consumers will often distort information
to be consistent with prior brand and
product beliefs
• Selective Retention
• Subliminal Perception 57/28
2) Key Psychological Processes 8/11
 Learning

Learning involves changes in an

individual's behavior arising from
experience.

Learning and cognition based on

exposure to other human and their
behavior
" "
D:\SSD EEE PC Nov 16, 14 selective\MKT MGT\Ch#5 CB\Moral behavior in animals - Frans de Waal.mp4

58/28
2) Key Psychological Processes 9/11
 Memory

Short-term Memory (STM)

Long-term Memory (LTM)

Memory Process
• Memory Encoding
• Memory Retrieval

59/28
2) Key Psychological Processes 10/11
 Model of Consumer Behavior
Stimulus Response Model

60/28
2) Key Psychological Processes 11/11
 3) The Buying Decision Process:
The Five-Stage Model

61/28
3) The Buying Decision Process 1/2
 3) The Buying Decision Process: The Five-Stage Model

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase
Behavior

62/28
3) The Buying Decision Process 2/2
 Information Search
Successive Sets Involved in Consumer Decision Making

63/28
 Postpurchase Behavior
1) Postpurchase Satisfaction
2) Postpurchase Actions
3) Postpurchase Use or Dispose of Products

64/28
Types of Buying Decision
Behavior
Fuel
Chips
Cell
Car

Paints/ Cement/ Airlines Ticket

 Diffusion of Innovations
Everett M. Rogers (March 6, 1931 – October 21, 2004) was a american communication
scholar, sociologist, writer, and teacher. He is best known for originating the diffusion of
innovations theory and for introducing the term early adopter.

Adopter Categories

Innovators

Early Adopters

Early Majority

Late Majority

Laggards

7-66