1. Analyzing Consumer Markets Marketing Management, 13 th ed 6

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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?

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-3 Crest Used Mobile Phones to Engage Consumers in Its Irresistibility Campaign

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-4 What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-5 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.

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-6 Subcultures Nationalities Religions Racial groups Geographic regions

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-7 David’s Bridal Targets the Latino Sub- Culture with its Collection of Quinceañera Dresses

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-9 Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-11 Social Factors Reference groups Social roles Statuses Family

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-12 Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-13 Family Distinctions Affecting Buying Decisions Family of Orientation Family of Procreation

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-14 Radio Shack Targets Women with Female Store Managers

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-15 Roles and Status What degree of status is associated with various occupational roles?

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-16 Personal Factors Age Values Life cycle stage Occupation Personality Self- concept Wealth Lifestyle

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-17 The Family Life Cycle

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-18 Brand Personality Sincerity Excitement Competence Sophistication Ruggedness

19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-19 Lifestyle Influences Multi-tasking Time-starved Money-constrained

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-20 Table 6.2 LOHAS (Lifestyles of Health and Sustainability) Market Segments Sustainable Economy Healthy Lifestyles Ecological Lifestyles Alternative Health Care Personal Development

21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-21 Figure 6.1 Model of Consumer Behavior

22. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-22 Key Psychological Processes Motivation MemoryLearning Perception

23. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-23 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

24. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-24 Maslow’s Hierarchy of Needs

25. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-25 Herzberg’s Two-Factor Theory

26. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-26 Perception Selective Attention Subliminal Perception Selective Retention Selective Distortion

27. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-27 Figure 6.3 State Farm Mental Map

28. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-28 Bahlsen Uses Crunchy Sounds to Encode Brand Associations

29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-29 Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior

30. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-30 Problem Recognition

31. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-31 Sources of Information Personal ExperientialPublic Commercial

32. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-32 Figure 6.5 Successive Sets Involved in Consumer Decision Making

33. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-33 Table 6.4 A Consumer’s Evaluation of Brand Beliefs About Laptops

34. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-34 Figure 6.6 Stages between Evaluation of Alternatives and Purchase

35. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-35 Non-Compensatory Models of Choice Conjunctive Lexicographic Elimination-by-aspects

36. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-36 Perceived Risk Functional Physical Financial Social Psychological Time

37. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-37 Figure 6.7 How Customers Use and Dispose of Products

38. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-38 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

39. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-39 Mental Accounting Consumers tend to… Segregate gains Integrate losses Integrate smaller losses with larger gains Segregate small gains from large losses

40. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-40 Marketing Debate Is target marketing ever bad? Take a position: 1.Targeting minorities is exploitive. or 2. Targeting minorities is a sound business practice.

41. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-41 Marketing Discussion Do you have rules you employ in spending money? Do you follow Thaler’s four principles in reacting to gains and losses?