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SUMMARY by
Chapter 6
Analyzing Consumer Markets
Since marketing starts from the customer, it is of primary importance to understand the
psyche of the customers and their buying motives. This chapter talks about the various
behavioural patterns that govern the decision making process of a customer. A
marketer needs to understand these factors affecting the customer’s purchase
decisions so as to design an appropriate marketing strategy.
3. Personal Factors
a. Age and Stage in the Life Cycle – Tastes are age related. Markets should also
consider critical life events or transitions.
b. Occupation and Economic Circumstances – Economic Circumstances like
spendable income, savings, assets, debts, borrowing power etc affect
consumption patterns.
c. Personality and Self Concept – Personality, set of distinguishing
characteristics that influence his/her buying behaviour. Consumers match
brand personality with their ideal self concept instead of their actual self
concept.
d. Lifestyle and Values
4. Psychological Factors
a. Motivation: Freud’s theory of id, ego and super ego; Maslow’s need
hierarchy theory; Herzberg’s two factor model.
b. Perception: Process by which we select, organize and interpret information
inputs. In marketing, perceptions are more important than reality.
c. Learning – Induces changes in behaviour arising from experience. Marketers
can build demand by associating the product with positive drives.
d. Memory – Short term and long term memory. Build brand knowledge and
brand recall as node in memory.
Significant
Differences in Brands
Complex
Buying Variety Seeking
Behaviour