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5

Analyzing
Consumer Markets
Chapter Questions
 How do consumer characteristics influence
buying behavior?
 What major psychological processes influence
consumer responses to marketing?
 How do marketers analyze consumers
decision making?

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Model of Consumer Behavior

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Consumer Behavior
Consumer Behavior
is the study of how
individuals, groups,
and organizations
select, buy, use, and
dispose goods,
services, ideas or
experiences to satisfy
their needs and
desires.

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What Influences
Consumer Behavior?

Cultural
Cultural Factors
Factors

Social
Social Factors
Factors

Personal
Personal Factors
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

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A Few Facts About the
American Culture
The average American:
 spends 32% of income of housing, 8% on

food at home and 6% on food away home.


 has 1.9 vehicles per household.

 spends 9.34 hours on sleeping and personal

care a day.
 chews 300 sticks of gum a year.

 goes to the movies 9 times a year.

 takes 4 trips a year.

 attends a sporting event 7 times a year.

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Cultural Factors: Social Classes
Upper uppers

Lower uppers

Upper middles

Middle

Working

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

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Social Factors

Reference
Family
groups

Social
Statuses
roles

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Social Factors: Reference Groups

Membership
Membership groups
groups

Primary
Primary groups
groups

Secondary
Secondary groups
groups

Aspirational
Aspirational groups
groups

Dissociative
Dissociative groups
groups

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Social Factors:
Family Distinctions Affecting Buying
Decisions

 Family of Orientation: parents and siblings


 Family of Procreation: spouse and
children

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Social Factors: Roles and Status

What degree of status is


associated with various
occupational roles?

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Personal Factors

Age
Self- Life cycle
concept stage

Lifestyle Occupation

Values Wealth
Personality

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LOHAS Market Segments
(Lifestyles of Health and
Sustainability)
 Sustainable Economy (green goods, renewable
energy, socially responsible investing, resource efficient
products)
 Healthy Lifestyles (organic and nutritional products)
 Ecological Lifestyles (ecological home/office
products, environmentally friendly products, ecotourism)
 Alternative Health Care (homeopathy)
 Personal Development (yoga, fitness, weight loss,
CDs, books, seminars)

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Key Psychological Processes

Motivation Perception

Learning Memory

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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

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Maslow’s Hierarchy of Needs

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Herzberg’s Two-Factor Theory

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Perception

Selective Attention

Selective Distortion

Selective Retention

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Learning

changes in behavior arising from experience


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Memory

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Consumer Buying Process

Problem Recognition
Information Search
(personal, commercial,
public, experiential)

Evaluation

Purchase Decision

Postpurchase
Behavior
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Successive Sets in Decision
Making

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Expectancy-Value Model:
A Consumer’s Brand Beliefs
about Laptop Computers

Weights 40% 30% 20% 10%


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Perceived Risk

 Functional – doesn’t perform up to expectations


 Physical – poses a threat to the physical well-being
or health of the user or others
 Financial – product isn’t worth the price paid
 Social – results in embarrassment from other
 Psychological – affects the mental well-being of the
user
 Time – the failure of the product results in an
opportunity cost of finding another good product

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Steps Between Alternative
Evaluation and Purchase

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How Customers
Use or Dispose of Products

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