MARKETING MANAGEMENT 12 th edition 6 Analyzing Consumer Markets KotlerKeller

6-2 Chapter Questions How do consumer characteristics influence buying behavior? What major psychological processes influence consumer responses to the marketing program? How do consumers make purchasing decisions? How do marketers analyze consumer decision making?

6-3 Emerging Trends in Consumer Behavior Metrosexual – Straight urban man who enjoys shopping and using grooming products

6-4 What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors

6-5 Culture The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions

6-6 Subcultures Nationalities Religions Racial groups Geographic regions Special interests

6-7 Insight into the subculture of wine enthusiasts

6-8 Fast Facts About American Culture The average American: –chews 300 sticks of gum a year –goes to the movies 9 times a year –takes 4 trips per year –attends a sporting event 7 times each year

6-9 Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

6-10 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

6-11 Social Factors Reference groups Social roles Statuses Family

6-12 Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups

6-13 Family Family of Orientation –Religion –Politics –Economics Family of Procreation –Everyday buying behavior

6-14 Targeting Women and Their Families

6-15 Roles and Statuses What degree of status is associated with various occupational roles?

6-16 Personal Factors Age Values Life cycle stage Occupation Personality Self- concept Wealth Lifestyle

6-17 Behavior changes according to life cycle stage Family Psychological Critical life events

6-18 Brand Personality Sincerity Excitement Competence Sophistication Ruggedness

6-19 Lifestyle Influences Multi-tasking Time-starved Money-constrained

6-20 Figure 6.1 Model of Consumer Behavior

6-21 Key Psychological Processes Motivation MemoryLearning Perception

6-22 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

6-23 Maslow’s Hierarchy of Needs

6-24 Herzberg’s Two-Factor Theory

6-25 Perception Selective Attention Subliminal Perception Selective Retention Selective Distortion

6-26 Figure 6.3 Dole Mental Map

6-27 Encoding Brand Associations

6-28 Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior

6-29 Problem Recognition

6-30 Sources of Information Personal ExperientialPublic Commercial

6-31 Figure 6.5 Successive Sets

6-32 Evaluation of Attributes Table 6.3

6-33 Figure 6.6 Stages between Evaluation of Alternatives and Purchase

6-34 Non-compensatory Models of Choice Conjunctive Lexicographic Elimination-by-aspects

6-35 Perceived Risk Functional Physical Financial Social Psychological Time

6-36 Figure 6.7 How Customers Use and Dispose of Products

6-37 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

6-38 Mental Accounting Consumers tend to… –Segregate gains –Integrate losses –Integrate smaller losses with larger gains –Segregate small gains from large losses

6-39 Marketing Debate Is Target Marketing Ever Bad? Take a position: 1.Targeting minorities is exploitative. 2. Targeting minorities is a sound business practice.

6-40 Marketing Discussion What are your mental accounts? Do you have rules you employ in spending money? Do you follow Thaler’s four principles in reacting to gains and losses?