Analyzing consumer markets

Marketing Management
Arab World Edition
Kotler, Keller, Hassan, Baalbaki, and Shamma
Chapter 6
Analyzing
Consumer Markets

Chapter Questions
1. How do consumer characteristics influence buying
behavior?
2. What major psychological processes influence consumer
responses to the marketing program?
3. How do consumers make purchasing decisions?
4. How do marketers analyze consumer decision making?
Copyright © 2012 Pearson Education 6-3

مالذى يؤثر على سلوك المستهلك ؟
Chapter Question 1:
How do consumer
characteristics influence
buying behavior?
العوامل الثقافية
العوامل الجتتماعية
العوامل الشخصية

Chapter Question 1:
How do consumer
buying behavior?
Cultural 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.

Chapter Question 1:
How do consumer
buying behavior?
Cultural Factors
الثقافات الفرعية
الجنسيات •
الديانة •
الجماعات العرقية •
المنطقة الجغرافية •

Chapter Question 1:
How do consumer
buying behavior?
Cultural Factors
Multicultural marketing
The Marketing Insight box considers the challenges for
marketers in understanding the varied ethnic groups in the
UAE

Chapter Question 1:
How do consumer
buying behavior?
Social Factors
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)
•Individuals can move up or down the social-class ladder over
time

Chapter Question 1:
How do consumer
buying behavior?
Social Factors
Social factors affect our buying behavior, including:
•Reference groups
•Family
•Social roles
•Statuses

Chapter Question 1:
How do consumer
buying behavior?
Personal Factors
A buyer’s decisions are influenced by personal characteristics:
• Age
• Life cycle stage
• Occupation
• Wealth
• Personality
• Values
• Lifestyle
• Self-concept

Presentation Title runs 11 here l 00/00/00

Chapter Question 1:
How do consumer
buying behavior?
Personal Factors
Brand personality is the specific mix of human traits that we
can attribute to a particular brand.
The following traits have been identified:
الصدق. 1 (down-to-earth, honest, wholesome, and cheerful).
الثاارة. 2 (daring, spirited, imaginative, and up-to-date).
الكفاءة . 3 (reliable, intelligent, and successful).
التطور . 4 (upper-class and charming).
الغلظة . 5 (outdoorsy and tough).

Chapter Question 1:
How do consumer
buying behavior?
Personal Factors
• A lifestyle is a person’s pattern of living in the world as expressed
in activities, interests, and opinions.
• Marketers search for relationships between their products and life
style groups.
• Consider whether a customer is:
o Multi-tasking
o Time-starved
o Money-constrained
The “convenience involvement segment” of the
food market is receptive to time-saver products
such as Indomie noodles, which allow them to
easily and quickly prepare a hot meal.

Chapter Question 1:
How do consumer
buying behavior?
Personal Factors
• LOHAS – Lifestyles of health and sustainability
Table 6.1: LOHAS Segmentation

Key Psychological Processes
Chapter Question 2:
What major psychological
processes influence
consumer responses to the
marketing program?
Fig. 6.1: Model of Consumer Behavior

Key Psychological Processes
Chapter Question 2:
processes influence
marketing program?
• Motivation
• Perception
• Learning
• Memory

Chapter Question 2:
processes influence
marketing program?
Motivation: Freud, Maslow,
Herzberg
Freud’s
Theory
Behavior
is guided by
subconscious
motivations
Maslow’s
Hierarchy
of Needs
Behavior
is driven by
lowest,
unmet need
Herzberg’s
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors

Chapter Question 2:
processes influence
marketing program?
Motivation:
Maslow’s Hierarchy of Needs
• Physiological needs
• Safety needs
• Social needs
• Esteem needs
• Self-actualization needs
Fig. 6.2: Maslow’s Hierarchy of Needs

Chapter Question 2:
processes influence
marketing program?
Perception
People can emerge with different perceptions of the same
object because of three perceptual processes:
• Selective attention
• Selective retention
• Selective distortion

Chapter Question 2:
processes influence
marketing program?
Learning
• When we act, we learn
• Learning causes changes in behavior, arising from experience
• Learning theory can be used by marketers to understand
consumer behavior

Chapter Question 2:
processes influence
Memory
• Short-term memory (STM)—a temporary and limited repository of
marketing program?
information
• Long-term memory (LTM)—a more permanent, essentially unlimited
repository
• Memory encoding—how and where information gets into memory
• Memory retrieval—how and from where information gets out of memory
• Example of Chipsy:
Fig. 6.3:
Hypothetical
Mental Map
for Chipsy

The Buying-Decision Process:
The Five-Stage Model
Chapter Question 3:
How do consumers make
purchasing decisions?
Some key consumer behavior questions identified by
George and Michael Belch are:
• ‘who, what, when, where, how, and why’ of buying
products
•Perception of customers
•Attitudes of customers
•Social factors
•Forming decision processes
•Influence of demographic

The Buying-Decision Process:
The Five-Stage Model
Chapter Question 3:
Fig. 6.4: Five-Stage Model of
the Consumer Buying Process

Chapter Question 3:
Problem Recognition
The buying process starts when the buyer recognizes a
problem or need

Chapter Question 3:
Information Search
Information
sources:
1.Personal
2.Commercial
3.Public
4.Experiential
Search dynamics:
Fig. 6.5: Successive Sets Involved in
Consumer Decision Making

Chapter Question 3:
Evaluation of Alternatives
We can often segment the market for a product according to
attributes important to different consumer groups.
Tetra Pak changed consumers’ attitudes towards
dairy products with it’s Tasbeera snacks.

Chapter Question 3:
Expectancy-Value Model
Consumers evaluate products and services by combining their
brand beliefs, positive and negative, according to their weighted
importance.
Table 6.2: A Consumer’s Brand Beliefs
about Laptop Computers

Chapter Question 3:
Purchase Decision
Non-compensatory models of choice:
•Conjunctive
•Lexicographic
•Elimination-by-aspects
Intervening factors
Two general factors can intervene between the
purchase intention and the purchase decision:
•Attitudes of others
•Unanticipated situational factors
Fig. 6.6: Steps Between
Evaluation of
Alternatives and a
Purchase Decision

Chapter Question 3:
Purchase Decision
Perceived risk:
•Functional
•Physical
•Financial
•Social
•Psychological
•Time

Other Theories of Consumer
Decision Making
Chapter Question 3:
Level of Consumer Involvement
• Elaboration Likelihood Model
• Low-involvement marketing strategies
• Variety-seeking buying behavior
Decision Heuristics and Biases
• Availability
• Representativeness
• Anchoring and adjustment

Chapter Question 3:
Mental Accounting
Consumers tend to…
• Segregate gains
• Integrate losses
• Integrate smaller losses with larger gains
• Segregate small gains from large losses

Chapter Question 4:
How do marketers analyze
consumer decision making?
Profiling the Customer Buying-Decision
Process
How can marketers learn about the stages in the buying process
for their product?
•Introspective method – how would they act themselves?
•Retrospective method – ask buyers to recall the events leading to their
purchase
•Prospective method – ask consumers who plan to buy a product about
the steps in their buying process
•Prescriptive method – the ideal way to buy
Trying to understand the customer’s behavior in connection with
a product has been called mapping the customer’s consumption
system.

Credits
• Slide 1 Christian Short Photography,
photographersdirect.com
• Slide 13 Art Directors and TRIP Photo Library: Helene
Rogers
• Slide 14 LOHAS Market Segments, www.lohas.com.
Reproduced with permission
• Slide 18 Motivation and Personality, 3rd edition, Prentice
Hall (Maslow, A.H., and Frager, R.D., Fadiman, J. (eds),
1987)
• Slide 26 Logo courtesy TetraPak. Reproduced with
permission

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