Chapter 6 Analyzing Consumer Markets

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ANALYZINGCONSUMERMARKETS

Mary Anne Cuartero

September 18, 2013


Key Questions

1. What Influences Consumer Behavior?2. What are the Three Theories of Human

Motivation?3. What are the Five Stages of Consumer

Buying Process?4. What is Behavioral Decision Theory?


What is Consumer Behavior?

Study of how individuals, groups,

and organizations select,buy, use, and dispose of goods

services, ideas or

experiences to satisfy their needs and wants


Concept 1: What Influnces Consumer Behavior?

Cultural Factors Social Factors

Personal Factors


Cultural Factors

Subcultures

Nationalities Racial GroupsReligions

Geographical Locations


Social Factors

A. Reference Groups

Primary Groups - family, friends, neighbors, co-workers

Secondary Groups – religious, professional, trade-union groups


Social Factors

Aspirational Groups – those that a person wishes to join

Dissociative Groups – those whose values or behavior an individual rejects


Social Factors

B. Family

2 Families in a Buyer’s Life:

1.Family of Orientation

2.Family of Procreation


Social Factors

C. Roles and Status


Personal Factors

Age and Stage in the Lifecycle


Personal Factors

Occupation

Economic Circumstances

Personality and Self Concept


Personal Factors

Lifestyle

Time MoneyConstrained Constrained

Values


Concept 2: Freud’s Theory of Human Motivation

Freud’sTheory

Behavioris guided by subconsciousmotivations


Concept 3: Maslow’s Theory of Human Motivation

Maslow’sHierarchyof Needs

Behavioris driven by

lowest, unmet need


Concept 4: Herzberg’s Theory of Human Motivation

Herzberg’sTwo-Factor

Theory

Behavior isguided by motivating and hygiene

factors


Concept 5: Buying Decision Process

1. Problem Recognition

Internal ExternalStimuli Stimuli


Buying Decision Process

2. Information Search



3. Evaluation of Alternatives

Beliefs and Attitudes

Expectancy Value Model



4. Purchase Decision

Non-compensatory Models of Consumer Choice – decision short-cuts

Cojunctive Heuristic



Lexicographic Heuristic

Elimination by Aspect Heuristic



Intervening Factors

Influence of Others

Unanticipated Situational Factors

Mitsubishi to recall

Montero units due to weld

issues



5. Post-purchase Behavior


Concept 6: Behavior Decision Theory

• Consumers don’t always make deliberate or rational decisions.

Decision Heuretics

1. Availability Heuristic – decision based on a past outcome


Behavior Decision Theory

2. Representativeness Heuristic – predictions based on how similar the outcome is to other examples

3.Anchoring and Adjustment Heuristic – first impressions


Conclusion

Marketers must have a thorough understanding of how consumers think,

feel, and act.

A connection must be made between companies and consumers


ANALYZINGCONSUMERMARKETS

Mary Anne Cuartero

September 18, 2013

Chapter 6 Analyzing Consumer Markets

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Transcript of Chapter 6 Analyzing Consumer Markets