MARKETING MANAGEMENT 12 th edition 6 Analyzing Consumer

MARKETING MANAGEMENT 12 th edition 6 Analyzing Consumer Markets Kotler Keller

Chapter Questions How do consumer characteristics influence buying behavior? n What major psychological processes influence consumer responses to the marketing program? n How do consumers make purchasing decisions? n How do marketers analyze consumer decision making? n 2

What Influences Consumer Behavior? Cultural factors n Social factors n Personal factors n 3

Culture The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions. 4

Subcultures Nationalities n Religions n Racial groups n Geographic regions n Special interests n 5

Fast Facts About American Culture n The average American ¨ chews 300 sticks of gum a year ¨ goes to the movies 9 times a year ¨ takes 4 trips per year ¨ attends a sporting event 7 times each year 6

Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers 7

Characteristics of Social Classes Within a class, people tend to behave alike. n Social class conveys perceptions of inferior or superior position. n Class may be indicated by a cluster of variables (occupation, income, wealth). n Class designation is mobile over time. n 8

Social Factors Reference groups Family Social roles Statuses 9

Reference Groups Membership n Primary n Secondary n Aspirational n Dissociative n 10

Family n n Family of Orientation ¨ Religion ¨ Politics ¨ Economics Family of Procreation ¨ Everyday buying behavior 11

Personal Factors n n Age Life cycle stage Occupation Wealth n n Personality Values Lifestyle Self-concept 12

Brand Personality Sincerity n Excitement n Competence n Sophistication n Ruggedness n 13

Key Psychological Processes Motivation n Perception n Learning n Memory n 14

Motivation Freud’s theory n Maslow’s hierarchy of needs n Herzberg’s two-factor theory n 15

Perception Selective attention n Selective retention n Selective distortion n Subliminal perception n 16

Figure 6. 4 Consumer Buying Process Problem recognition n Information search n Evaluation n Purchase decision n Postpurchase behavior n 17

Sources of Information Personal n Commercial n Public n Experiential n 18

Non-compensatory Models of Choice Conjunctive n Lexicographic n Elimination-by-aspects n 19

Perceived Risk n n n Functional Physical Financial n n n Social Psychological Time 20

Other Theories of Consumer Decision Making Involvement n Elaboration Likelihood Model n Low-involvement marketing strategies n Variety-seeking buying behavior Decision Heuristics n Availability n Representativeness n Anchoring and adjustment 21

Mental Accounting n Consumers tend to… ¨ Segregate gains ¨ Integrate losses ¨ Integrate smaller losses with larger gains ¨ Segregate small gains from large losses 22