Chapter 6

IPE 4101:Industrial and Business Management
Lecture Series on Marketing Management

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Analyzing
Consumer Markets
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?
 In what ways do consumers stray from a
deliberate rational decision process?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-3

Consumer Behavior

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
 Nationalities
 Religions
 Racial groups
 Geographic regions

Fast Facts About
American Culture
 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

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

Social Factors
Reference groups
Family
Social roles
Statuses

Reference Groups
 Membership groups
 Primary groups
 Secondary groups
 Aspirational groups
 Disassociative groups

Family Distinctions
Affecting Buying Decisions

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

Age and Stage of Lifecycle

Occupation and Economic
Circumstances

Personality

Brand Personality
 Sincerity
 Excitement
 Competence
 Sophistication
 Ruggedness

Figure 6.1 Model of
Consumer Behavior

Motivation
Maslow’s Herzberg’s
Freud’s Hierarchy Two-Factor
Theory of Needs Theory
Behavior Behavior Behavior is

is guided by is driven by guided by
subconscious lowest, motivating
motivations unmet need and hygiene
factors

Maslow’s Hierarchy

Perception
 Selective attention:- It means the marketers must work
hard to attract consumers notice. Here, some findings:
 People are more likely to notice stimuli that relate to a current need.
 People are more likely to notice stimuli they anticipate.
 People are more likely to notice stimuli with large deviations .
 Selective retention:
 Consumers will often distort information to be consistent with prior brand and
product beliefs.
We remember good points about a product we like
And forget bad points
Advantage of strong brands

Perception
 Selective distortion:
 -It is a Tendency to interpret information in a way that will fit our
preconceptions
 Comsumer will often distort information to be consistant with prior
brand, product believe and expectations.
 Subliminal perception:
 Its mechanisms requires consumers active engagements and
thought. It has long long fascinated armchair marketers, Hidden
message conveyed through the advertisement but Consumers
are not consciously aware of them,yet the affect behavior. Here
Mental Processes include many subtle subconscious effects.

Learning
Learning: It induces changes in our permanent behavior

arising from the experience.
Drive: A strong internal stimuli's impelling actions.
Cue: are stimuli's that determines when, where and how a
person responds.
Generalization: Example of HP laptops Promotes HP

Pointers.
Discrimination: A countertendency of Generalization.

Emotions
Emotions: Consumer response is not all cognitive and rational; much
may be emotional and invoke different kinds of feelings. A brand or
product may make a consumer feel proud, excited or confident. An ad
may create feelings of amusement, disgust or wonder.
Amusement
Disgust
Wonder

Memory
Memory
Short Term Memory(STM)
Long Term Memory(LTM)
Memory Encoding
Memory Retrieval
Interference Effect
Time between exposure and encoding
Proper cues and memory triggers

Figure 6.3 State Farm Mental Map

Figure 6.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior

Sources of Information
Personal Commercial
Public Experiential

Figure 6.5 Successive Sets in
Decision Making

Table 6.4 A Consumer’s Brand
Beliefs about Laptop Computers

Figure 6.6 Steps Between
Alternative Evaluation
and Purchase

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IPE 4101:Industrial and Business Management

Lecture Series on Marketing Management

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-3

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-4

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-5

Culture is the fundamental determinant of a

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-6

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-7

 The average American:

 goes to the movies 9 times a year

 takes 4 trips per year

 attends a sporting event 7 times each

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-8

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-9

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-10

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-11

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Behavior Behavior Behavior is

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Learning: It induces changes in our permanent behavior

Generalization: Example of HP laptops Promotes HP

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