Chapter 6: Analyzing Consumer Markets

Cafedyllic
Alabado Cruz Dadivas Del Castillo Genio Peralta Viola

Alabado Cruz Dadivas Del Castillo Genio Peralta Viola

1. WHAT IS CONSUMER BEHAVIOR?

Study Decision Buyers

making processes

2. WHAT ARE THE 3 FACTORS THAT INFLUENCES CONSUMER BEHAVIOR?

CULTURAL

FACTORS SOCIAL FACTORS PERSONAL FACTORS

A. WHAT ARE CULTURAL FACTORS?

Culture

determinant of a persons want & behavior

Subcultures

cultures within a culture

SOCIAL FACTORS
Reference Family Social

groups

roles Social statuses

WHAT IS DIRECT INFLUENCE? INDIRECT INFLUENCE?

Direct

Face-to-face Membership groups Hints, requests and demands Secondary groups Initiative

Indirect

B. WHAT ARE PERSONAL FACTORS?

Age Stage

in the life cycle Occupation Economic circumstance Personality Self-concept Lifestyle Values

OCCUPATION AND ECONOMIC CIRCUMSTANCE

Occupational

services Economic Circumstances:

groups Products &

Spendable income Savings & assets Debts Borrowing power Attitude towards borrowing &spending

Personality
Distinguishing

human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli Described as traits (self-confidence, sociability, adaptability)

Brand Personality
Specific

mix of human traits that we can attribute to a particular brand

Sincerity Excitement Competence Sophistication Ruggedness

Marketers

look at brand personality to get lifestyle and core values

Lifestyle
Persons

pattern of living as expressed in activities, interests, and opinions Sees the person interacting with his/her environment Influences

Multi-tasking Time-starved Money-constrained

Lifestyles of Health and Sustainability

Sustainable

economy Healthy lifestyles Ecological lifestyles Alternative health care Personal development

Core Values
Belief

systems that underlie attitudes and behavior

Freuds Theory of Human Motivation

Psychological forces shaping peoples behavior are largely unconscious, and that a person cannot fully understand his or her own motivations
We cannot bear to know certain things about ourselves. Therefore, we do not (consciously) know them. Yet what resides in the unconscious profoundly affects our behavior and experience, even though we do not know we are being affected.

Maslows Theory of Human Motivation

Common sense approach

Human needs are arranged in hierarchy from most to least pressing When one need is fulfilled a person seeks to fulifill the next one, and so on

Herzbergs Theory of Human Motivation

Two-factor theory Dissatisfiers: factors that cause dissatisfaction

their presence is not enough motivation but only prevents dissatisfaction

Satisfiers: factors that cause satisfaction

They create positive and a longer lasting effect on people they make people happy because they serve man's basic needs for psychological growth

PERCEPTION

SELECTIVE ATTENTION
to

attract consumers

Notice

SELECTIVE ATTENTION
stimuli
Need Anticipate Deviations are large

SELECTIVE DISTORTION
Preconception Prior brand and product beliefs and expectations

 Good point on products we like Forget good points about competing products

SELECTIVE RETENTION

SUBLIMINAL PERCEPTION
Engagement

and thought Covert, subliminal messages

The Buying Decision Process: The Five-Stage Model

Five

stage model of the consumer buying process.

Problem Recognition

Information search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Triggered

by a stimuli Internal Stimuli

Persons normal needs

External

Stimuli

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Search

States

Heightened Attention: person becomes receptive to information Active Information Search: looking for articles, asking friends, etc.

Information

Sources

Personal: family, friends, etc. Commercial: Ads, Web sites, sales people, etc. Public: Mass media, Rating firms Experiential: Using the product

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Search

Dynamics

Market partitioning: identifying hierarchy

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Belief: firmly held opinion about something Attitude: evaluation, feelings, action towards something Expectancy-Value Model: consumers evaluate products and services by combining brand beliefs (positive and negative)
Fried Chicken Chickenjoy Chicken Mcdo KFC Tastiness 9 6 10 Attribute Crispiness 8 9 5 Price 10 8 7

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Chickenjoy = 0.5 (9) + 0.3 (8) + 0.2(10) = Chicken Mcdo = 0.5 (6) + 0.3 (9) + 0.2(8) = KFC = 0.5 (10) + 0.3 (5) + 0.2(7) =

8.9 7.3 7.9

Redesign the product: real repositioning Alter beliefs about the brand: psychological repositioning Alter beliefs about competitors brands: competitive depositioning Alter the importance weights Call attention to neglected attributes Shift the buyers ideals

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Non

Compensatory Models of Consumer Choice

Heuristics: mental shortcuts Evaluate product based on single attribute 3 Choices:

1. Conjunctive Heuristic: consumer sets a minimum acceptable level for each attribute and chooses the first alternative that meets the minimum 2. Lexicographic Heuristic: consumer chooses best brand based on most important attribute 3. Elimination-by-aspects Heuristic: consumer chooses based on probability of selected attribute where attribute is positively related to its importance

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Steps Between Evaluation of Alternatives and Purchase Decision Intervening Factors

Attitudes of others

Unanticipated Situational Factors

Other peoples negative attitude Our own motivation to comply

Attitudes of others
Evaluation of alternatives

Purchase intentions
Un anticipated Situational factors

Purchase decisions

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Post

Purchase Satisfaction
Disappointed; satisfied; delighted

Post

Purchase Actions

More like to buy the product again if satisfied Can spread good things about the brand

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decisions

Post Purchase Decisions

Post Purchase Uses and Disposals

Rent it
Get Rid of it temporarily

Give it away Lend it Trade it

Use it to serve original purpose convert it to serve a new purpose

To be (resoled)

Product

Get Rid of it permanently

To be used Sell it

Direct to consumer
Throw it
Through middleman
To intermediary

Keep it

Store it

References

Kotler and Keller http://kmcpsych101.blogspot.com/2009/11/t heories-of-motivation-freud-rogers.html http://www.uxmatters.com/mt/archives/2009 /07/laddering-a-research-interviewtechnique-for-uncovering-core-values.php http://kalyancity.blogspot.com/2010/06/frederickherzberg-two-factor-theory.html