ANALYZING Consumer Markets Maricel Fererras

OBJECTIVES To be able to define the consumer characteristics that influence buying behavior To be able to know the major psychological processes that influence consumer responses to the marketing program To determine how do consumers make purchasing decisions And to determine how do marketers analyze consumer decision making

Consumer Behavior Is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Successful marketing requires that companies fully connect with their customers.

Factors that Influences Consumer Behavior 1. Cultural Factors 2. Social Factors 3. Personal Factors

Cultural Factors Culture- is the fundamental determinant of a person’s wants and behavior. The growing child acquires a set of values, perceptions, preferences, and behaviors through his or her family and other key institutions. Subculture- includes nationalities, religions, racial groups and geographic region.

Social Factors Reference Groups It consist of all the groups that have a direct (face- to-face) or indirect influence on his/her attitudes or behavior. Family Is the most important consumer buying organization in society, and family members constitute the most influential primary preference group. Roles and Statuses A role consist of the activities a person is expected to perform. Each role carries a status.

Personal Factors Age and Stage in the Life-Cycle Occupation and Economic Circumstances Personality and Self-concept Lifestyle and Values

Personal Factors Age and Stage in the Life-Cycle People buy different goods and services over a lifetime. Taste in food, clothes, furniture is often age related. Occupation and Economic Circumstances Occupation influences consumption patterns. Blue collar will buy work clothes and the likes while the company president will buy a dress suits and the likes.

Personal Factors Personality and Self-concept By personality we mean a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. Lifestyle and Values Is a person’s pattern of living in the world as expressed in activities, interest and opinions.

Key Psychological Processes Motivation: Freud, Maslow, Herzberg Freud’s Theory Sigmund Freud assumed that the psychological forces shaping people’s behavior are largely unconscious, and that a person cannot fully understand his or her own motivation.

Key Psychological Processes Maslow’s Theory People will try to satisfy their most important needs first. When a person succeed on satisfying an important needs, he or she will then try to satisfy the next most-important need.

Maslow’s Hierarchy of Needs

Key Psychological Processes Herzberg’s Theory Frederick Herzberg a two-factor theory that distinguishes dissatisfiers (factors that cause dissatisfaction) and satisfiers ( factors that cause satisfaction). The absence of dissatisfiers is not enough; satisfiers must be present to motivate a purchase.

Key Psychological Processes Perception Is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. 3 perceptual processes: Selective attention Selective distortion Selective retention Subliminal Perception

Key Psychological Processes Learning Involves changes in an individual’s behavior arising from experience. It is produce through the interplay of: Drives Stimuli Cues

Key Psychological Processes Memory All information and experiences individuals encounter as they go through life can end up in their long-term memory. Short term memory (STM)- a temporary repository of information. Long term memory (LTM)- a more permanent repository

The Buying Decision Process: The Five-Stage Model Problem recognition Information search Evaluation of alternatives Purchase of decision Post purchase behavior

The Buying Decision Process: The Five-Stage Model 1. Problem recognition The buying process starts when the buyer recognizes a problem or a need. The need can be triggered by internal or external stimuli. 2. Information search 4 groups of information sources: Personal Commercial Public Experiential

The Buying Decision Process: The Five-Stage Model 3. Evaluation of Alternatives Evaluation process: A customer is trying to satisfy a need. The consumer is looking for a certain benefits from the product solution The consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits sought to satisfy this need. The attributes of interest to buyers vary by product

The Buying Decision Process: The Five-Stage Model 4. Purchase Decisions Non-compensatory models of consumer choice Positive and negative attributes considerations do not necessarily net out. Intervening Factors Attitudes of others- like the converse said: a buyers preference for a brand will increase if someone he or she respects favors the same brand strongly. Unanticipated situational factors- it may erupt to change the purchase intention.

The Buying Decision Process: The Five-Stage Model 5. Postpurchase Behavior After the purchases, consumer might experience dissonance that stems from noticing certain disquieting features or hearing favorable things about other brands, and will be alert to information that supports his or her decision.

Other Theories of Consumer Decision Making Level of consumer involvement Decision heuristics and biases Mental accounting Profiling the customer buying decision process

Thank you very much!