2. Arab World Edition Kotler, Keller, Hassan, Baalbaki, and Shamma
Marketing Management
Arab World Edition
Kotler, Keller, Hassan, Baalbaki, and Shamma
Chapter 6
Analyzing Consumer Markets

3. 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?
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4. Chapter Questions Consumer behavior
The study of how individuals, groups and organization select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
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5. What Influences Consumer Behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
What Influences Consumer Behavior?
Cultural factors
Social factors
Personal factors
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6. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
1- Cultural 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.
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7. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
Cultural Factors
Subcultures
Nationalities
Religions
Racial groups
Geographic regions
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8. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
2- Social Factors
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)
Individuals can move up or down the social-class ladder over time
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9. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
Social Factors
Social factors affect our buying behavior, including:
Reference groups
Family
Social role and Status
Role ; the activities someone excepted to perform
Status ; one’s position within his own culture
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10. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
Social Factors
Reference groups are all the groups that have a direct (face-to-face) or indirect influence on an individual’s attitudes or behavior.
These include:
Membership groups : direct influence
Primary groups : interact continuously & informally (family)
Secondary groups : vs professional
Aspirational groups : hope to join
Disassociative groups : VS
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11. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
Social Factors
Family distinctions affecting buying decisions:
Family of Orientation
Family of Procreation
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12. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
3- Personal Factors
A buyer’s decisions are influenced by personal characteristics:
Personality :
set of distinguishing psychological traits
Values :
The belief systems underline consumer attitudes and behavior
Lifestyle
A person’s pattern of living in the world as expressed in activities, interests, and opinions
Age
Life cycle stage
Occupation
Wealth
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13. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
Personal Factors
A lifestyle is a person’s pattern of living in the world as expressed in activities, interests, and opinions.
Marketers search for relationships between their products and life style groups.
The “convenience involvement segment” of the food market is receptive to time-saver products such as Indomie noodles, which allow them to easily and quickly prepare a hot meal.
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14. How do consumer characteristics influence buying behavior?
Chapter Question 1:
How do consumer characteristics influence buying behavior?
Personal Factors
Brand personality is the specific mix of human traits that we can attribute to a particular brand.
The following traits have been identified :
Sincerity (down-to-earth, honest, wholesome, and cheerful). Quaker
Excitement (daring, spirited, imaginative, and up-to-date). MTV
Competence (reliable, intelligent, and successful). CNN
Sophistication (upper-class and charming)
Ruggedness (outdoorsy and tough). Levi’s
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15. Key Psychological Processes
Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Key Psychological Processes
Fig. 6.1: Model of Consumer Behavior
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16. Key Psychological Processes
Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Key Psychological Processes
Motivation
Perception
Learning
Memory
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17. Motivation: Freud, Maslow, Herzberg
Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Motivation: Freud, Maslow, Herzberg
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
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18. Key Psychological Processes
Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Key Psychological Processes
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19. Motivation: Maslow’s Hierarchy of Needs
Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Motivation: Maslow’s Hierarchy of Needs
Physiological needs
Safety needs
Social needs
Esteem needs
Self-actualization needs
Fig. 6.2: Maslow’s Hierarchy of Needs
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20. Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Perception
Perception : the process by which an individual selects, organizes, interprets information to create a meaningful picture of the world.
People can emerge with different perceptions of the same
object because of three perceptual processes:
Selective attention: screening out with noticing others
Selective retention: recall good points for product you like VS
Selective distortion : fits consumer perception
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21. Perception https://www.youtube.com/watch?v=H4oZlwvvcMM
Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Perception
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22. Learning When we act, we learn
Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Learning
When we act, we learn
Learning causes changes in behavior, arising from experience
Learning theory can be used by marketers to understand consumer behavior
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23. Fig. 6.3: Hypothetical Mental Map for Chipsy
Chapter Question 2:
What major psychological processes influence consumer responses to the marketing program?
Memory
Short-term memory (STM)—a temporary and limited repository of information
Long-term memory (LTM)—a more permanent, essentially unlimited repository
Memory encoding—how and where information gets into memory
Memory retrieval—how and from where information gets out of memory
Example of Chipsy:
Fig. 6.3: Hypothetical Mental Map for Chipsy
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24. The Buying-Decision Process: The Five-Stage Model
Chapter Question 3:
How do consumers make purchasing decisions?
The Buying-Decision Process: The Five-Stage Model
Fig. 6.4: Five-Stage Model of the Consumer Buying Process
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25. How do consumers make purchasing decisions?
Chapter Question 3:
How do consumers make purchasing decisions?
Problem Recognition
The buying process starts when the buyer recognizes a problem or need
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26. Fig. 6.5: Successive Sets Involved in Consumer Decision Making
Chapter Question 3:
How do consumers make purchasing decisions?
Information Search
Information
sources:
Personal: Family
Commercial : Ad
Public : Mass M
Experiential Use
Search dynamics:
Fig. 6.5: Successive Sets Involved in Consumer Decision Making
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27. Evaluation of Alternatives
Chapter Question 3:
How do consumers make purchasing decisions?
Evaluation of Alternatives
We can often segment the market for a product according to attributes important to different consumer groups.
Tetra Pak changed consumers’ attitudes towards dairy products with it’s Tasbeera snacks.
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28. Expectancy-Value Model
Chapter Question 3:
How do consumers make purchasing decisions?
Expectancy-Value Model
Consumers evaluate products and services by combining their brand beliefs, positive and negative, according to their weighted importance.
Table 6.2: A Consumer’s Brand Beliefs about Laptop Computers
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29. How do consumers make purchasing decisions?
Chapter Question 3:
How do consumers make purchasing decisions?
Purchase Decision
Non-compensatory models of choice:
Conjunctive set of minimum B
Lexicographic most important attribute C
Elimination-by-aspects
Intervening factors
Two general factors can intervene between the purchase intention and the purchase decision:
Attitudes of others
Unanticipated situational factors
Fig. 6.6: Steps Between Evaluation of Alternatives and a Purchase Decision
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30. How do consumers make purchasing decisions?
Chapter Question 3:
How do consumers make purchasing decisions?
Purchase Decision
Perceived risk:
Functional performance
Physical threat
Financial price
Social embarrassment
Psychological mental
Time opportunity cost
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31. Other Theories of Consumer Decision Making
Chapter Question 3:
How do consumers make purchasing decisions?
Other Theories of Consumer Decision Making
Level of Consumer Involvement
Elaboration Likelihood Model
Low-involvement marketing strategies
Variety-seeking buying behavior
Decision Heuristics and Biases
Availability
Representativeness
Anchoring and adjustment
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32. How do consumers make purchasing decisions?
Chapter Question 3:
How do consumers make purchasing decisions?
Mental Accounting
Consumers tend to…
Segregate gains
Integrate losses
Integrate smaller losses with larger gains
Segregate small gains from large losses
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33. Profiling the Customer Buying-Decision Process
Chapter Question 4:
How do marketers analyze consumer decision making?
Profiling the Customer Buying-Decision Process
How can marketers learn about the stages in the buying process for their product?
Introspective method – how would they act themselves?
Retrospective method – ask buyers to recall the events leading to their purchase
Prospective method – ask consumers who plan to buy a product about the steps in their buying process
Prescriptive method – the ideal way to buy
Trying to understand the customer’s behavior in connection with a product has been called mapping the customer’s consumption system.
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34. Credits Slide 1 Christian Short Photography, photographersdirect.com
Slide 13 Art Directors and TRIP Photo Library: Helene Rogers
Slide 14 LOHAS Market Segments, Reproduced with permission
Slide 18 Motivation and Personality, 3rd edition, Prentice Hall (Maslow, A.H., and Frager, R.D., Fadiman, J. (eds), 1987)
Slide 26 Logo courtesy TetraPak. Reproduced with permission