1. MARKETING MANAGEMENT 12 th edition 6 Analyzing Consumer Markets KotlerKeller

2. 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. 6-3 Emerging Trends in Consumer Behavior Metrosexual – Straight urban man who enjoys shopping and using grooming products

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

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

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

7. 6-7 Insight into the subculture of wine enthusiasts

8. 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. 6-9 Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

10. 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. 6-11 Social Factors Reference groups Social roles Statuses Family

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

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

14. 6-14 Targeting Women and Their Families

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

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

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

18. 6-18 Brand Personality Sincerity Excitement Competence Sophistication Ruggedness

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

20. 6-20 Figure 6.1 Model of Consumer Behavior

21. 6-21 Key Psychological Processes Motivation MemoryLearning Perception

22. 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

23. 6-23 Maslow’s Hierarchy of Needs

24. 6-24 Herzberg’s Two-Factor Theory

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

26. 6-26 Figure 6.3 Dole Mental Map

27. 6-27 Encoding Brand Associations

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

29. 6-29 Problem Recognition

30. 6-30 Sources of Information Personal ExperientialPublic Commercial

31. 6-31 Figure 6.5 Successive Sets

32. 6-32 Evaluation of Attributes Table 6.3

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

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

35. 6-35 Perceived Risk Functional Physical Financial Social Psychological Time

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

37. 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

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

39. 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.

40. 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?