Analyzing Consumer Markets CH 6

What Influences Consumer Behavior? Cultural Factors Social Factors Personal 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.

Subcultures Nationalities Religions Racial groups Geographic regions

Upper uppers Lower uppers Upper middles Middle class Working class Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

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) Class designation is mobile over time

Social Factors Reference groups Family Social roles Statuses

Membership groups Primary groups Secondary groups Aspirational groups Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups

What degree of status is associated with various occupational roles? Roles and Status What degree of status is associated with various occupational roles?

Age Self- Life cycle concept stage Occupation Lifestyle Wealth Values Personal Factors Age Self- concept Life cycle stage Occupation Lifestyle Wealth Values Personality

The Family Life Cycle

Sincerity Excitement Competence Sophistication Ruggedness Brand Personality Sincerity Excitement Competence Sophistication Ruggedness

Lifestyle Influences Multi-tasking Time-starved Money-constrained

Faysal Bank of Pakistan has extended banking hours for time-pressed executives.

Figure 6.1 Model of Consumer Behavior

Key Psychological Processes Motivation Perception Learning Memory

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 6-17 Motivation Freud’s Theory Behavior is guided by subconscious motivations Maslow’s Hierarchy of Needs Behavior is driven by the lowest, unmet need Herzberg’s Two-Factor Theory Behavior is guided by motivating and hygiene factors Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 6-17

Maslow’s Hierarchy of Needs

Herzberg’s Two-Factor Theory

Subliminal Perception Selective Attention Selective Retention Selective Distortion Subliminal Perception

Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior

Sources of Information Personal Commercial Public Experiential

Figure 6.6 Stages between Evaluation of Alternatives and Purchase

Perceived Risk Functional Physical Financial Social Psychological Time

Figure 6.7 How Customers Use and Dispose of Products

Rural Consumer Behaviour Rural consumers are more brand loyal Restrictions on consumption Collective consumption behavior: for family rather than individual Seasonality of consumption based on seasonality of agricultural production/income Specific patterns in the five-stage buying decision process

Integrate smaller losses with larger gains Mental Accounting Consumers tend to… Segregate gains Integrate losses Integrate smaller losses with larger gains Segregate small gains from large losses