Marketing Management Arab World Edition Kotler Keller Hassan

Marketing Management Arab World Edition Kotler, Keller, Hassan, Baalbaki, and Shamma Chapter 6 Analyzing Consumer Markets

Chapter Questions 1. How do consumer characteristics influence buying behavior? 2. What major psychological processes influence consumer responses to the marketing program? 3. How do consumers make purchasing decisions? Copyright © 2012 Pearson Education 6 -2

Chapter Questions • Consumer behavior The study of how individuals, groups and organization select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Copyright © 2012 Pearson Education 6 -3

What Influences Consumer Behavior? • Cultural factors • Social factors • Personal factors Copyright © 2012 Pearson Education 6 -4 Chapter Question 1: How do consumer characteristics influence buying behavior?

Chapter Question 1: How do consumer characteristics influence buying behavior? 1 - Cultural 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. Copyright © 2012 Pearson Education 6 -5

Chapter Question 1: How do consumer characteristics influence buying behavior? Cultural Factors Subcultures • Nationalities • Religions • Racial groups • Geographic regions Copyright © 2012 Pearson Education 6 -6

Chapter Question 1: How do consumer characteristics influence buying behavior? 2 - Social Factors 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) • Individuals can move up or down the social-class ladder over time Copyright © 2012 Pearson Education 6 -7

Chapter Question 1: How do consumer characteristics influence buying behavior? Social Factors Social factors affect our buying behavior, including: • Reference groups • Family • Social role and Status • Role ; the activities someone excepted to perform • Status ; one’s position within his own culture Copyright © 2012 Pearson Education 6 -8

Chapter Question 1: How do consumer characteristics influence buying behavior? Social Factors Reference groups are all the groups that have a direct (face-toface) or indirect influence on an individual’s attitudes or behavior. These include: • Membership groups : direct influence • Primary groups : interact continuously & informally (family) • Secondary groups : vs professional • Aspirational groups : hope to join • Disassociative groups : VS Copyright © 2012 Pearson Education 6 -9

Chapter Question 1: How do consumer characteristics influence buying behavior? Social Factors Family distinctions affecting buying decisions: • Family of Orientation • Family of Procreation Copyright © 2012 Pearson Education 6 -10

Chapter Question 1: How do consumer characteristics influence buying behavior? 3 - Personal Factors A buyer’s decisions are influenced by personal characteristics: • Personality : • Age • Life cycle stage set of distinguishing psychological traits • Occupation • • Wealth The belief systems underline consumer attitudes and behavior • Values : Lifestyle A person’s pattern of living in the world as expressed in activities, interests, and opinions Copyright © 2012 Pearson Education 6 -11

Chapter Question 1: How do consumer characteristics influence buying behavior? Personal Factors • A lifestyle is a person’s pattern of living in the world as expressed in activities, interests, and opinions. • Marketers search for relationships between their products and life style groups. The “convenience involvement segment” of the food market is receptive to time-saver products such as Indomie noodles, which allow them to easily and quickly prepare a hot meal. Copyright © 2012 Pearson Education 6 -12

Chapter Question 1: How do consumer characteristics influence buying behavior? Personal Factors Brand personality is the specific mix of human traits that we can attribute to a particular brand. The following traits have been identified : 1. Sincerity (down-to-earth, honest, wholesome, and cheerful). Quaker 2. Excitement (daring, spirited, imaginative, and up-to-date). MTV 3. Competence (reliable, intelligent, and successful). CNN 4. Sophistication (upper-class and charming) 5. Ruggedness (outdoorsy and tough). Levi’s Copyright © 2012 Pearson Education 6 -13

Key Psychological Processes Fig. 6. 1: Model of Consumer Behavior Copyright © 2012 Pearson Education 6 -14 Chapter Question 2: What major psychological processes influence consumer responses to the marketing program?

Key Psychological Processes • Motivation • Perception • Learning • Memory Copyright © 2012 Pearson Education 6 -15 Chapter Question 2: What major psychological processes influence consumer responses to the marketing program?

Motivation: Freud, Maslow, Herzberg Chapter Question 2: What major psychological processes influence consumer responses to the marketing program? Maslow’s Herzberg’s Freud’s Hierarchy Two-Factor Theory of Needs Theory Behavior is is guided by is driven by guided by subconscious lowest, motivating motivations unmet need and hygiene factors Copyright © 2012 Pearson Education 6 -16

Key Psychological Processes Copyright © 2012 Pearson Education 6 -17 Chapter Question 2: What

Motivation: Maslow’s Hierarchy of Needs • Physiological needs • Safety needs • Social needs • Esteem needs • Self-actualization needs Chapter Question 2: What major psychological processes influence consumer responses to the marketing program? Fig. 6. 2: Maslow’s Hierarchy of Needs Copyright © 2012 Pearson Education 6 -18

Chapter Question 2: What major psychological processes influence consumer responses to the marketing program? Perception : the process by which an individual selects, organizes, interprets information to create a meaningful picture of the world. People can emerge with different perceptions of the same object because of three perceptual processes: • Selective attention: screening out with noticing others • Selective retention: recall good points for product you like VS • Selective distortion : fits consumer perception Copyright © 2012 Pearson Education 6 -19

Chapter Question 2: What major psychological processes influence consumer responses to the marketing program? Perception https: //www. youtube. com/watch? v= H 4 o. Zlwvvc. MM Copyright © 2012 Pearson Education 6 -20

Chapter Question 2: What major psychological processes influence consumer responses to the marketing program? Learning • When we act, we learn • Learning causes changes in behavior, arising from experience • Learning theory can be used by marketers to understand consumer behavior Copyright © 2012 Pearson Education 6 -21

Chapter Question 2: What major psychological processes influence consumer responses to the marketing program? Memory • Short-term memory (STM)—a temporary and limited repository of information • Long-term memory (LTM)—a more permanent, essentially unlimited repository • Memory encoding—how and where information gets into memory • Memory retrieval—how and from where information gets out of memory • Example of Chipsy: Fig. 6. 3: Hypothetical Mental Map for Chipsy Copyright © 2012 Pearson Education 6 -22

The Buying-Decision Process: The Five-Stage Model Chapter Question 3: How do consumers make purchasing decisions? Fig. 6. 4: Five-Stage Model of the Consumer Buying Process Copyright © 2012 Pearson Education 6 -23

Chapter Question 3: How do consumers make purchasing decisions? Problem Recognition The buying process

Chapter Question 3: How do consumers make purchasing decisions? Information Search Information sources: 1. Personal: Family 2. Commercial : Ad 3. Public : Mass M 4. Experiential Use Search dynamics: Copyright © 2012 Pearson Education Fig. 6. 5: Successive Sets Involved in Consumer Decision Making 6 -25

Evaluation of Alternatives Chapter Question 3: How do consumers make purchasing decisions? We can often segment the market for a product according to attributes important to different consumer groups. Tetra Pak changed consumers’ attitudes towards dairy products with it’s Tasbeera snacks. Copyright © 2012 Pearson Education 6 -26

Chapter Question 3: How do consumers make purchasing decisions? Expectancy-Value Model Consumers evaluate products and services by combining their brand beliefs, positive and negative, according to their weighted importance. Table 6. 2: A Consumer’s Brand Beliefs about Laptop Computers Copyright © 2012 Pearson Education 6 -27

Chapter Question 3: How do consumers make purchasing decisions? Purchase Decision Non-compensatory models of choice: • Conjunctive set of minimum B • Lexicographic most important attribute C • Elimination-by-aspects Intervening factors Two general factors can intervene between the purchase intention and the purchase decision: • Attitudes of others • Unanticipated situational factors Fig. 6. 6: Steps Between Evaluation of Alternatives and a Purchase Decision Copyright © 2012 Pearson Education 6 -28

Chapter Question 3: How do consumers make purchasing decisions? Purchase Decision Perceived risk: • Functional performance • Physical threat • Financial price • Social embarrassment • Psychological mental • Time opportunity cost Copyright © 2012 Pearson Education 6 -29

Other Theories of Consumer Decision Making Level of Consumer Involvement • Elaboration Likelihood Model • Low-involvement marketing strategies • Variety-seeking buying behavior Decision Heuristics and Biases • Availability • Representativeness • Anchoring and adjustment Copyright © 2012 Pearson Education 6 -30 Chapter Question 3: How do consumers make purchasing decisions?

Chapter Question 3: How do consumers make purchasing decisions? Mental Accounting Consumers tend to… • Segregate gains • Integrate losses • Integrate smaller losses with larger gains • Segregate small gains from large losses Copyright © 2012 Pearson Education 6 -31

Chapter Question 4: How do marketers analyze consumer decision making? Profiling the Customer Buying-Decision Process How can marketers learn about the stages in the buying process for their product? • Introspective method – how would they act themselves? • Retrospective method – ask buyers to recall the events leading to their purchase • Prospective method – ask consumers who plan to buy a product about the steps in their buying process • Prescriptive method – the ideal way to buy Trying to understand the customer’s behavior in connection with a product has been called mapping the customer’s consumption system. Copyright © 2012 Pearson Education 6 -32

Credits • Slide 13 Art Directors and TRIP Photo Library: Helene Rogers • • • Slide 1 Christian Short Photography, photographersdirect. com Slide 14 LOHAS Market Segments, www. lohas. com. Reproduced with permission Slide 18 Motivation and Personality, 3 rd edition, Prentice Hall (Maslow, A. H. , and Frager, R. D. , Fadiman, J. (eds), 1987) • Slide 26 Logo courtesy Tetra. Pak. Reproduced with permission