MARKETING MANAGEMENT 14th edition 6 Analyzing Consumer Markets Kotler Keller

What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors

Culture 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 Special interests

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

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

Family Family of Orientation Religion Politics Economics Family of Procreation Everyday buying behavior

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

Behavior changes according to life cycle stage Family Psychological Critical life events

Lifestyle Influences Multi-tasking Time-starved Money-constrained

Model of Consumer Behavior

Key Psychological Processes Motivation Perception Learning Memory

Motivation 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

Subliminal Perception Selective Attention Selective Retention Selective Distortion Subliminal Perception

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

Sources of Information Personal Commercial Public Experiential

Successive Sets

Evaluation of Attributes

Stages between Evaluation of Alternatives and Purchase Click on the video icon to launch a video about postpurchase evaluation among Subaru car owners.

Perceived Risk Functional Physical Financial Social Psychological Time

Other Theories of Consumer Decision Making Involvement Elaboration Likelihood Model Low-involvement marketing strategies Variety-seeking buying behavior Decision Heuristics Availability Representativeness Anchoring and adjustment

Attitudes A predisposition to respond in a consistently favorable or unfavorable way An individual’s affective reaction to or overall evaluation of an object, person, action, or concept

Involvement Involvement Profile: Personal interest in a product category Importance of negative consequences Probability of making a mistake Pleasure value of the product category Sign value of the product category How closely the product is related to the self

ELM Persuasion = f (Elaboration) Elaboration = f (Motivation, Ability) Involvement Need for cognition Ability Capacity Timing Repetition Distraction

Elaboration: Issue relevant thinking High Elaboration Extensive IP Extensive time Extensive mental capacity Extensive motivation Controlled thinking Deep thinking Systematic thinking Effortful analysis Low Elaboration Limited IP Limited time Limited mental capacity Limited motivation Automatic thinking Shallow thinking Heuristic thinking Mindless analysis

Persuasion with ELM Target: High Elaboration Strategy: Central Route Persuasion occurs by: Careful thinking Thoughtful analysis Deep consideration True merits of info Target: Low Elaboration Strategy: Peripheral Route Persuasion occurs by: Simple cues Irrelevant info Hedonistic content Side issues

The Source Source effects: A message will have different effects if communicated by a different source. Two important source characteristics: Credibility and Attractiveness Source credibility: A source’s perceived expertise, objectivity, or trustworthiness. Attractiveness: A source’s perceived likeability, similarity, celebrity.

The Message Message Strength One- Versus Two-Sided Arguments: Relevancy Objectivity Verifiability One- Versus Two-Sided Arguments: Supportive argument: Presents only positive arguments Two-sided message: Presents positive and negative info Drawing Conclusions Comparative Advertising: A strategy in which a message compares two or more recognized brands and compares them on the basis of attributes.

MARKETING MANAGEMENT 14th edition 7 Analyzing Business Markets Kotler Keller

Organizational Buying Decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.

Characteristics of Business Markets Fewer, larger buyers Close supplier-customer relationships Professional purchasing Many buying influences Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing

Buying Situation Straight rebuy Modified rebuy New task

The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers

Organizational Buying Behavior in Japan