Analyzing Consumer Markets and Buyer Behavior: Powerpoint by Milton M. Pressley University of New Orleans

Chapter 7
Analyzing Consumer
Markets and Buyer Behavior
by
PowerPoint by
Milton M. Pressley
University of New Orleans
7-1
Copyright © 2003 Prentice-Hall, Inc.
Kotler on
Marketing
The most
important
thing is to
forecast where
customers are
moving, and
be in front of
them.
7-2
Chapter Objectives
 In this chapter, we focus on two questions:

 How do the buyers’ characteristics – cultural,
social, personal, and psychological – influence
buying behavior?
 How does the buyer make purchasing
decisions?
7-3
Influencing Buyer Behavior
 Consumer Behavior
 Cultural Factors
 Culture
 Subcultures
 Diversity marketing
Figure 7-1: Model of Buyer
 Social class
Behavior
7-4
 Social Factors
 Reference Groups
 Reference groups
 Membership groups
 Primary groups
 Secondary groups
 Aspirational groups
 Dissociative groups
 Opinion leader
7-5
Table 7.1: Characteristics of Major U.S. Social Classes
1. Upper Uppers The social elite who live on inherited wealth. They
(less than 1%) give large sums to charity, run the debutante balls,
maintain more than one home, and send their
children to the finest schools. They are a market for
jewelry, antiques, homes, and vacations. They often
buy and dress conservatively. Although small as a
group, they serve as a reference group to the extent
that their consumption decisions are imitated by the
other social classes.
2. Lower Uppers Persons, usually from the middle class, who have
(about 2%) earned high income or wealth through exceptional
ability in the professions or business. They tend to
be active in social and civic affairs and to buy the
symbols of status for themselves and their children.
They include the nouveau riche, whose pattern of
conspicuous consumption is designed to impress
those below them.
See text for complete table

7-6
 Secondary groups
 Aspirational groups
 Dissociative groups
 Opinion leader
7-7
Levi-Strauss’s Silver Tab line is also featured on its Web site
7-8
 Family
 Family of orientation
 Family of procreation
 Roles and Statuses
 Role
 Status
7-9
With the “graying” of the American populace,
marketers have begun to shift images and
cultural references in advertising from things
that are relevant to the twenty-somethings to
images of active seniors, and soundtracks
from the sixties and seventies. Can you
identify any particular
ad campaigns that fit
this pattern?
7-10
 Personal Factors
 Age and Stage in the Life Cycle
 Family life cycle
 Occupation and Economic
Circumstances
7-11
In recent years, many organizations have
“provided” televisions with limited programming
access for use in K-12 classrooms. Do these
entities have a moral obligation to avoid overt
marketing to their captive audiences, or is this a
valid tool for introducing offerings to future
consumers? What should the
responsibilities of the educators
be in these situations?
7-12
Table 7.2: Stages in the Family Life Cycle
1. Bachelor stage: Few financial burdens. Fashion opinion
Young, single, not living leaders. Recreation oriented. Buy: basic home
at home equipment, furniture, cars, equipment for the
mating game; vacations.
2. Newly married Highest purchase rate and highest average
couples: purchase of durables: cars, appliances,
Young, no children furniture, vacations.
3. Full nest I: Home purchasing at peak. Liquid assets low.
Youngest child under Interested in new products, advertised
six products. Buy: washers, dryers, TV, baby food,
chest rubs and cough medicines, vitamins,
dolls, wagons, sleds, skates.
4. Full nest II: Financial position better. Less influenced by
Youngest child six or advertising. Buy larger-size packages,
over multiple-unit deals. Buy: many foods, cleaning
materials, bicycles, music lessons, pianos.
See text for complete table

7-13
Figure 7.2: The VALS segmentation system:
An 8-part typology
 Groups with High

Resources
1. Actualizers
2. Fulfilleds
3. Achievers
4. Experiencers
 Groups with Lower
Resources
1. Believers
2. Strivers
3. Makers
4. Strugglers
7-14
SRI Consulting Business Intelligence’s Web site
7-15
 Personality and Self-Concept
 Personality
 Brand personality
 Sincerity
 Excitement
 Competence
 Sophistication
 Ruggedness
 Self-concept
 Person’s actual self-concept
 Ideal self-concept
 Others’ self-concept
7-16
 Psychological Factors
 Motivation
 Motive
 Freud’s Theory
 Laddering
 Projective techniques
7-17
 Ernest Dichter’s research found:
 Consumers resist prunes because prunes are
wrinkled looking and remind people of old age.
 Men smoke cigars as an adult version of thumb
sucking.
 Women prefer vegetable shortening to animal
fats because the latter arouse a sense of guilt
over killing animals.
 Women don’t trust cake mixes unless they
require adding an egg, because this helps them
feel they are giving “birth.”
7-18
 Maslow’s Theory
Figure 7.3:
Maslow’s
Hierarchy of
Needs
7-19
 Herzberg’s Theory
 Dissatisfiers
 Satisfiers
7-20
 Perception
 Selective attention
 People are more likely to notice stimuli than
relate to a current need
 People are more likely to notice stimuli than
they anticipate
 People are more likely to notice stimuli
whose deviations are large in relation to the
normal size of the stimuli
 Selective distortion
 Selective retention
7-21
 Learning
 Drive
 Cues
 Discrimination
 Beliefs and Attitudes
 Belief
 Spreading activation
 Attitude
7-22
The purchase of a product from a Company A
turns out to be a positive experience. You are
looking for a loosely related product, which is also
offered by Company A. Do you assume that you
will again have a positive experience with
Company A’s offering, or do you
look for the “best of breed,”
regardless of which
company offers it?
7-23
The Buying Decision Process
 Buying Roles
 Initiator
 Influencer
 Decider
 Buyer
 User
 Buying behavior
7-24
Table 7.3: Four Types of Buying Behavior
High Involvement Low Involvement
Significant Differences Complex buying Variety-seeking
between Brands behavior buying behavior
Few Differences between Dissonance-reducing Habitual buying

Brands buying behavior behavior
7-25
 Complex Buying Behavior
 Dissonance-Reducing Buyer Behavior
 Habitual Buying Behavior
 Variety-Seeking Buying Behavior
7-26
Stages in the Buying
Decision Process
 How marketers learn about the stages:
 Introspective method
 Retrospective method
 Prospective method
 Prescriptive method
 Understanding by mapping the customer’s
 Consumption system
 Customer activity cycle
 Customer scenario
 Metamarket
 Metamediaries
7-27
The Edmunds.com home page shows the variety of
services this Web company offers those shopping
for a car.
7-28
Stages of the Buying
Decision Process
 Problem recognition
 Information search
 Personal sources
 Commercial sources
 Public sources
 Experiential sources
7-29
Figure 7.5: Successive Sets Involved in Customer
Decision Making
7-30
 Evaluation of Alternatives
 Potential Attributes of interest
 Cameras
 Hotels
 Mouthwash
 Tires
 Brand beliefs
 Brand image
7-31
Table 7.4: A Consumer’s Brand Beliefs
about Computers
Computer Attribute
Memory Graphics Size and
Capacity Capability Weight Price
A 10 8 6 4
B 8 9 8 3
C 6 8 10 5
D 4 3 7 8
7-32
 Strategies designed to stimulate interest in a
computer
 Redesign the computer
 Alter beliefs about the brand
 Alter beliefs about competitors’ brands
 Alter the importance weights
 Call attention to neglected attributes
 Shift the buyer’s ideas
7-33
 Purchase Decision
Figure 7.6: Steps Between Evaluation of
Alternatives and a purchase decision
7-34
 Informediaries
 Consumer Reports
 Zagats
 Unanticipated situational factors
 Perceived risk
 Brand decision
 Vendor decision
 Quantity decision
 Timing decision
 Payment-method decision
7-35
 Postpurchase Behavior
 Postpurchase Satisfaction
 Disappointed
 Satisfied
 Delighted
 Postpurchase Actions
 Postpurchase Use and Disposal
7-36
Figure 7.7: How Customers Dispose of Products
7-37
 Other Models of the Buying Decision
Process
 Health Model
 Stages of Change Model
 Precontemplation
 Contemplation
 Preparation
 Action
 Maintenance
 Customer Activity Cycle Model
 Pre, during and post phases
7-38
Figure 7.8:
Activity cycle
for IBM
customers in
the global
electronic
networking
capability
market space
7-39
Figure 7.9:
Value adds
for IBM
customers in
the global
electronic
networking
capability
market space
7-40

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Chapter 7

 In this chapter, we focus on two questions:

See text for complete table

See text for complete table

 Groups with High

Few Differences between Dissonance-reducing Habitual buying

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