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Analyzing Consumer Markets 6 Marketing Management A South Asian Perspective, 13 th ed

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  • Analyzing
    Consumer Markets

    6

    Marketing Management

    A South Asian Perspective, 13th ed

  • 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?How do marketers analyze consumer decision making?
  • Tata Steel used steeljunction to encourage consumers to go steel shopping and to develop deeper understanding of individual and household customers.

  • What Influences
    Consumer Behavior?

    Cultural Factors

    Social Factors

    Personal Factors

  • What is Culture?

    Culture is the fundamental determinant of a persons wants and behaviors acquired through socialization processes with family and other key institutions.

  • Subcultures

    Nationalities

    Religions

    Racial groups

    Geographic regions

  • Social Classes

    Upper uppers

    Lower uppers

    Upper middles

    Middle class

    Working class

    Upper lowers

    Lower lowers

  • Characteristics of Social Classes

    Within a class, people tend to behave alikeSocial class conveys perceptions of inferior or superior positionClass may be indicated by a cluster of variables (occupation, income, wealth)Class designation is mobile over time
  • Social Factors

    Reference

    groups

    Social

    roles

    Statuses

    Family

  • Reference Groups

    Membership groups

    Primary groups

    Secondary groups

    Aspirational groups

    Dissociative groups

  • Provogue uses teenage icons as brand ambassadors and a youth targeted website to connect to its customers

  • Radio Shack Targets Women with Female Store Managers

  • Roles and Status

    What degree of status is associated with various occupational roles?

  • Personal Factors

    Age

    Values

    Life cycle

    stage

    Occupation

    Personality

    Self-

    concept

    Wealth

    Lifestyle

  • The Family Life Cycle

  • Brand Personality

    Sincerity

    Excitement

    Competence

    Sophistication

    Ruggedness

  • Lifestyle Influences

    Multi-tasking

    Time-starved

    Money-constrained

  • Faysal Bank of Pakistan has extended banking hours for time-pressed executives.

  • Table 6.2 LOHAS (Lifestyles of Health and Sustainability) Market Segments

    Sustainable EconomyHealthy LifestylesEcological LifestylesAlternative Health CarePersonal Development
  • Figure 6.1
    Model of Consumer Behavior

  • Key Psychological Processes

    Motivation

    Memory

    Learning

    Perception

  • Motivation

    Freuds

    Theory

    Behavior

    is guided by

    subconscious

    motivations

    Maslows

    Hierarchy

    of Needs

    Behavior

    is driven by

    the lowest,

    unmet need

    Herzbergs

    Two-Factor

    Theory

    Behavior is

    guided by

    motivating

    and hygiene

    factors

  • Maslows Hierarchy of Needs

  • Herzbergs Two-Factor Theory

  • Perception

    Selective Attention

    Subliminal Perception

    Selective Retention

    Selective Distortion

  • Figure 6.3 State Farm Mental Map

  • Figure 6.4 Consumer Buying Process

    Problem Recognition

    Information Search

    Evaluation

    Purchase Decision

    Postpurchase

    Behavior

  • Problem Recognition

  • Sources of Information

    Personal

    Experiential

    Public

    Commercial

  • Figure 6.5 Successive Sets Involved in Consumer Decision Making

  • Table 6.8 Sales and Product
    Life Cycle

  • Figure 6.6 Stages between Evaluation of Alternatives and Purchase

  • Non-Compensatory Models of Choice

    ConjunctiveLexicographicElimination-by-aspects
  • Perceived Risk

    Functional

    Physical

    Financial

    Social

    Psychological

    Time

  • Figure 6.7 How Customers Use and Dispose of Products

  • Rural Consumer Behaviour

    Rural consumers are more brand loyalRestrictions on consumptionCollective consumption behaviour: for family rather than individualSeasonality of consumption based on seasonality of agricultural production/incomeSpecific patterns in the five-stage buying decision process
  • Other Theories of
    Consumer Decision Making

    Involvement

    Elaboration Likelihood ModelLow-involvement marketing strategiesVariety-seeking buying behavior

    Decision Heuristics

    AvailabilityRepresentativenessAnchoring and adjustment
  • Mental Accounting

    Consumers tend toSegregate gainsIntegrate lossesIntegrate smaller losses with larger gainsSegregate small gains from large losses
  • Marketing Debate

    Is target marketing ever bad?

    Take a position:

    Targeting minorities is exploitive.

    or

    2. Targeting minorities is a sound

    business practice.

  • Marketing Discussion

    Do you have rules you employ in

    spending money?

    Do you follow Thalers four principles

    in reacting to gains and losses?