6

Analyzing
Consumer Markets
Mr. Ajit Arya
Faculty--Marketing
Faculty
Department of Business Studies
C. U. Shah College of Engg. & Tech.
 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?
 Analyzing Consumer Markets

“The most important

ingredient in the
success of an
organization is a
satisfied customer”
What is Consumer Behavior?

Consumer behavior is the study of

how individuals, groups, and
organizations select, buy, use, and
dispose of goods, services, ideas, or
experience to satisfy their needs and
wants.
 What Influences
Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors
 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.
 Subcultures
• Subcultures: subgroup of culture with its
own, different modes of behavior
– Subcultures can differ by:
• Ethnicity or Nationality
• Age or Gender
• Religion
• Social class
• Profession
 International Perspective on
Cultural Influences
– Cultural differences are particularly important
for international marketers
– Successful strategies in one country often
cannot extend to other international markets
because of cultural variations
 Social Classes
• Social classes: groups whose rankings
are determined by occupation, income,
education, family background, and
residence location.
1. lower - lowers
2. upper - lowers
3. working class
4. middle class
5. upper middles
6. lower – uppers
7. upper - uppers
 Social Factors

• Reference Groups
• Family
• Roles and Status
 Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups
• Opinion leader is the
person who offers
informal advice or
information about a
specific product.
• They are trendsetters
who purchase new
products before others
in a group and then
influence others in their
purchases.
• Jordache
– Advertisement
Illustrating the
Influence of
Friendship
Groups on
Purchase
Decisions
 Personal Factors
• Age and stage in the life cycle
• Occupation and economic circumstances
• Personality and self – concept
• Lifestyle and values (AIO)
The Family Life Cycle
Model of Consumer Behavior
Key Psychological Processes

Motivation Perception

Learning Memory
• Perceptions is the
process by which we
select, organize, and
interpret information to
create a meaningful
picture of the world.
Perception

Selective Attention

Selective Retention

Selective Distortion
 Learning
• An immediate or expected change in behavior as a
result of experience.
• The learning process includes the component of:

Drive – any strong stimulus that impels action
[fear, pride, hunger]

Cue – an object in the environment that determines
the nature of the consumer’s response to a Drive
[ad for a restaurant]

Response – a reaction to a set of Drives and Cues
[go to the restaurant]

Reinforcement – a reduction in drive that results
from a proper response
 Memory
• Short – term memory (STM)
• Long – term memory (LTM)
– Memory processes
– Memory retrieval
Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase
Behavior
 A)Personal (family, friends)
B)Commercial (advertising, Web sites, salespeople)
C)Public (mass media, consumer organizations)
D)Experiential (handling, examining, using the product)
Sources of Information
• Personal (family, friends)
• Commercial (advertising, Web sites, salespeople)
• Public (mass media, consumer organizations)
• Experiential (handling, examining, using the
product)
Successive Sets Involved in Consumer
Decision Making
 Evaluation of Alternatives
• Belief —a descriptive thought that a person
holds about something.
• Attitude—a person’s enduring favorable or
unfavorable evaluation, emotional feeling, and
action tendencies toward some object or idea.
 Expectancy – Value Model
• The expectancy-value model of attitude formation posits
that consumers evaluate products and services by
combining their brand beliefs—the positives and
negatives— according to importance.

Importance weight x belief

Computer A: .4(10) + .3(8) + .2(6) + .1(4) = 8.0
 Non-Compensatory Models of Choice

• Conjunctive – minimum cutoff

• Lexicographic – most important attribute
• Elimination-by-aspects – base on
probability of choosing an attribute
Stages between Evaluation of Alternatives
and Purchase
Perceived Risk

Functional

Physical

Financial

Social

Psychological

Time
 Post Purchase Behavior
• Post purchase satisfaction
• Post purchase action
• Post purchase use and disposal
Thank You!!!