1. ANALYZING Consumer Markets
Maricel Fererras

2. 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

3. 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.

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

5. 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.

6. 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.

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

8. 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.

9. 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.

10. 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.

11. 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.

12. Maslow’s Hierarchy of Needs

13. 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.

14. 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

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

16. 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

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

18. 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

19. 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

20. 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.

21. 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.

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

23. Thank you very much!