A FRAMEWORK for MARKETING MANAGEMENT Chapter 5 Analyzing

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A FRAMEWORK for MARKETING MANAGEMENT Chapter 5 Analyzing Consumer Markets Kotler Keller Cunningham

A FRAMEWORK for MARKETING MANAGEMENT Chapter 5 Analyzing Consumer Markets Kotler Keller Cunningham

Chapter Questions • How do cultural, social, and personal factors influence consumer behaviour buying?

Chapter Questions • How do cultural, social, and personal factors influence consumer behaviour buying? • What major psychological processes influence consumer behaviour to marketing stimuli? • How do consumers make purchasing decisions? © Copyright 2008 Pearson Education Canada 5 -2

Profile: Canadian Marketing Excellence BMW CANADA • BMW dominates the luxury passenger segment in

Profile: Canadian Marketing Excellence BMW CANADA • BMW dominates the luxury passenger segment in Canada • Although it reported a 8. 3% growth in sales from the previous year, its sales still only accounted for 1. 4% of the total Canadian market • To increase this, BMW reinforces its brand, passion and joy: • Customers are able to customize cars to their own needs • BMW invested $150 million to transform its Canadian dealerships to reflect its brand aspirations • Use of movies, kiosks at sporting events, and BMW Fascination Driver Training © Copyright 2008 Pearson Education Canada 5 -3

What Influences Consumer Behaviour? Cultural factors Social factors Personal factors © Copyright 2008 Pearson

What Influences Consumer Behaviour? Cultural factors Social factors Personal factors © Copyright 2008 Pearson Education Canada 5 -4

Culture Influences Buyer Behaviour Culture is the most fundamental determinant of a person’s wants

Culture Influences Buyer Behaviour Culture is the most fundamental determinant of a person’s wants and behaviours © Copyright 2008 Pearson Education Canada 5 -5

Figure 5. 1 Model of Consumer Behaviour Consumer psychology Marketing stimuli Decision process Other

Figure 5. 1 Model of Consumer Behaviour Consumer psychology Marketing stimuli Decision process Other stimuli Purchase decision Consumer characteristics © Copyright 2008 Pearson Education Canada 5 -6

Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers

Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers © Copyright 2008 Pearson Education Canada 5 -7

Characteristics of Social Classes • Within a class, people tend to behave alike •

Characteristics of Social Classes • Within a class, people tend to behave alike • Social class conveys perceptions of inferior or superior position • Class may be indicated by a cluster of variables (occupation, income, wealth) • Class designation is mobile over time © Copyright 2008 Pearson Education Canada 5 -8

Social Factors Reference groups Family Roles and statuses © Copyright 2008 Pearson Education Canada

Social Factors Reference groups Family Roles and statuses © Copyright 2008 Pearson Education Canada 5 -9

Social Factors DESJARDINS • Desjardins, a Quebec-based banking cooperative has used programs aimed at

Social Factors DESJARDINS • Desjardins, a Quebec-based banking cooperative has used programs aimed at children since 1901 • Provides schools with educational material • Around 200, 000 student account holders bank with Desjardins • The bank also educates children with regards to money management © Copyright 2008 Pearson Education Canada 5 -10

Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups © Copyright

Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups © Copyright 2008 Pearson Education Canada 5 -11

Family of orientation Family of procreation © Copyright 2008 Pearson Education Canada 5 -12

Family of orientation Family of procreation © Copyright 2008 Pearson Education Canada 5 -12

Roles and Statuses What degree of status is associated with various occupational roles? ©

Roles and Statuses What degree of status is associated with various occupational roles? © Copyright 2008 Pearson Education Canada 5 -13

Personal Factors Age Selfconcept Life cycle stage Lifestyle Occupation Values Wealth Personality © Copyright

Personal Factors Age Selfconcept Life cycle stage Lifestyle Occupation Values Wealth Personality © Copyright 2008 Pearson Education Canada 5 -14

Lifestyle influences Multitasking Time-starved Money-constrained © Copyright 2008 Pearson Education Canada 5 -15

Lifestyle influences Multitasking Time-starved Money-constrained © Copyright 2008 Pearson Education Canada 5 -15

Key Psychological Processes Motivation Perception Learning Memory © Copyright 2008 Pearson Education Canada 5

Key Psychological Processes Motivation Perception Learning Memory © Copyright 2008 Pearson Education Canada 5 -16

Motivation Freud’s Theory Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory Behaviour is guided by

Motivation Freud’s Theory Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory Behaviour is guided by subconscious motivations Behaviour is driven by lowest unmet need Behaviour is guided by motivating and hygiene factors © Copyright 2008 Pearson Education Canada 5 -17

Perception Selective attention Selective retention Selective distortion © Copyright 2008 Pearson Education Canada 5

Perception Selective attention Selective retention Selective distortion © Copyright 2008 Pearson Education Canada 5 -18

Figure 5. 2 Hypothetical Dole Mental Map © Copyright 2008 Pearson Education Canada 5

Figure 5. 2 Hypothetical Dole Mental Map © Copyright 2008 Pearson Education Canada 5 -19

Figure 5. 3 Consumer Buying Process Problem recognition Information search Evaluation Purchase decision Postpurchase

Figure 5. 3 Consumer Buying Process Problem recognition Information search Evaluation Purchase decision Postpurchase behavior © Copyright 2008 Pearson Education Canada 5 -20

Sources of Information Personal Commercial Public Experiential © Copyright 2008 Pearson Education Canada 5

Sources of Information Personal Commercial Public Experiential © Copyright 2008 Pearson Education Canada 5 -21

Figure 5. 4 Successive Sets © Copyright 2008 Pearson Education Canada 5 -22

Figure 5. 4 Successive Sets © Copyright 2008 Pearson Education Canada 5 -22

Basic Concepts Underlying the Consumer Evaluation Process • Consumer seeks to satisfy a need

Basic Concepts Underlying the Consumer Evaluation Process • Consumer seeks to satisfy a need • Consumer is looking for specific benefits • Each product is viewed as a bundle of attributes with varying abilities to deliver benefits that satisfy needs • Attributes of interest vary by product © Copyright 2008 Pearson Education Canada 5 -23

Evaluations Influence Behaviour Beliefs Attitudes © Copyright 2008 Pearson Education Canada 5 -24

Evaluations Influence Behaviour Beliefs Attitudes © Copyright 2008 Pearson Education Canada 5 -24

Factors Affecting Purchase Decisions Consumer’s own preferences Attitudes of others Unanticipated situational factors ©

Factors Affecting Purchase Decisions Consumer’s own preferences Attitudes of others Unanticipated situational factors © Copyright 2008 Pearson Education Canada 5 -25

Postpurchase Behaviour Postpurchase satisfaction Postpurchase actions Postpurchase product uses © Copyright 2008 Pearson Education

Postpurchase Behaviour Postpurchase satisfaction Postpurchase actions Postpurchase product uses © Copyright 2008 Pearson Education Canada 5 -26

Postpurchase Behaviour BELL CANADA • Bell Canada is a leader in reducing customer attrition

Postpurchase Behaviour BELL CANADA • Bell Canada is a leader in reducing customer attrition • Agents are encouraged to approach “at risk” customers to identify problems ahead of time • Bell’s customer service department compares Bell’s offers with the competition in real time and shares this information with its marketing department for action © Copyright 2008 Pearson Education Canada 5 -27

Figure 5. 5 How Customers Use and Dispose of Products © Copyright 2008 Pearson

Figure 5. 5 How Customers Use and Dispose of Products © Copyright 2008 Pearson Education Canada 5 -28

For Discussion How might time-starvation affect consumer needs and wants? What businesses developed in

For Discussion How might time-starvation affect consumer needs and wants? What businesses developed in response to time-starved consumers? © Copyright 2008 Pearson Education Canada 5 -29