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Consumer Markets

Chapter Objectives
How do consumer characteristics influence buying behavior? What major psychological processes influence consumer responses to the marketing program? How do consumers make purchasing decisions? How do marketers analyze consumer decision making?
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Why do we buy salt from a local shop while a shirt from a mall?????
Salt No difference in quality product comes from the same source to both Easy accessibility Low involvement Not long Lasting It is not a matter of personal choice . Shirt Difference in quality comes from different sources Not easily available everywhere High involvement Matter of personal choice Status symbol Long lasting

Though the consumer is the same but behavior varies in different situations therefore

Customer holds three sides of consumption circle

Acquiring
Receiving, Finding, Inheriting, Producing, Purchasing

Consuming
Individuals or Groups Products Services Ideas Experiences Collecting, Nurturing, Cleaning, Preparing,Evaluating, Serving, Displaying, Storing,Wearing, Sharing,

Disposing
Giving, Throwing away, Recycling, Depleting

Therefore, consumer is said to be the king

Any exceptions? Where customer does not have a choice


Monopoly services like electricity, water where there is no substitute Rare Goods Emergency purchase Natural calamity

Rethinking Marketing
The rules of the game have changed..

(HBSP Article)

Why studying customer is important for marketer


Understanding Consumers behavior helps to gauge opportunity :
Eg: Advent of electric car or hydro cars; Discovery of ethanol as a substitute to petrol

Helps in selecting right target market: Eg. Using kids to market instant food like maggie Helps in Marketing mix decisions: Eg. Nano integrates all its 4Ps to give a low cost model to its consumers Used in social and non profit marketing : Eg. Polio awareness camps use mass appeal to maximize reach

Emerging Trends in Consumer Behavior

Metrosexual Straight urban man who enjoys shopping and using grooming products

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What Influences Consumer Behavior?


Cultural Factors

Social Factors

Personal Factors

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I. Culture

The fundamental determinant of a persons wants and behaviors acquired through socialization processes with family and other key institutions

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Subcultures
Nationalities Religions Racial groups Geographic regions

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Social Classes:
Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
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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 Difference in media preferences
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II. Social Factors

Reference groups

Family

Social roles

Status

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1. Reference Groups
Membership groups
Primary groups Secondary groups

Aspirational groups

Dissociative groups
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2. Family
Family of Orientation Religion Politics Economics

Family of Procreation Everyday buying behavior

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3. Roles and Status


Role consists of activities a person is expected to perform. Degree of status is associated with various occupational roles.
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III. Personal Factors


Age
Selfconcept Lifestyle Values Personality Life cycle stage

Occupation
Wealth

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Behavior changes according to life cycle stage


Family Psychological Critical life events
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Brand Personality
Sincerity
Excitement Competence

Sophistication
Ruggedness
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A Brand Personality Framework

Lifestyle Influences
Multi-tasking

Time-starved
Money-constrained

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Psychological Process: Model of Consumer Behavior

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Key Psychological Processes

Motivation

Perception

Learning

Memory

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Motivation
Freuds Theory Behavior is guided by subconscious motivations Maslows Hierarchy of Needs Behavior is driven by lowest, unmet need
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Maslows Hierarchy of Needs

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Perception
Selective Attention

Selective Retention
Selective Distortion Subliminal Perception
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Learning
Drive Cues Responses Reinforcement

Figure 6.4 Consumer Buying Process Consumer Buying Process


Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior
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Sources of Information
Personal Commercial

Public

Experiential

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Successive Sets

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How Customers Use and Dispose of Products

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