Analyzing Consumer
Markets
Learning Objectives
1. How do consumer characteristics influence buying
behavior?
2. What major psychological processes influence
consumer responses to the marketing program?
3. How do consumers make purchasing decisions?
4. In what ways do consumers stray from a
deliberative, rational decision process?
What Influences Consumer
Behavior?
• Consumer behavior
– 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
– Influenced by cultural, social, and personal
factors
What Influences Consumer
Behavior?
• Cultural factors
– Culture
– Subcultures
– Social classes
What Influences Consumer
Behavior?
• Social factors
Reference groups
Cliques
Family
Roles and status
Reference Groups
• Membership groups
– Primary vs. secondary
• Aspirational groups
• Dissociative groups
• Opinion leader
Family
• Family of orientation vs. family of procreation
What Influences Consumer
Behavior?
• Personal factors
– Age/stage in life cycle
– Occupation and
economic
circumstances
– Personality and self-
concept
– Lifestyle and values
Key Psychological Processes
Motivation
Memory Perception
Emotions Learning
Figure 6.1
Model Of Consumer Behavior
Key Psychological Processes
• Motivation
– A need becomes a motive when it is aroused
to a sufficient level of intensity to drive us to
act
motivation
Maslow’s Herzberg’s
Freud’s Hierarchy Two-Factor
Theory of Needs Theory
Behavior Behavior Behavior is
is guided by is driven by guided by
subconscious lowest, dissatisfiers
motivations unmet need and
satisfiers
Figure 6.2
Maslow’s Hierarchy Of Needs
Key Psychological Processes
• Perception
– The process by
which we select,
organize, and
interpret information
inputs to create a
meaningful picture
of the world
perception
Selective attention
Selective distortion
Selective retention
Subliminal perception
Key Psychological Processes
• Learning
– Induces changes in our behavior arising from
experience
– Drive and cues
– Generalization and discrimination
Key Psychological Processes
• Emotions
– Many different
kinds of emotions
can be linked to
brands
Key Psychological Processes
• Memory
– Short-term vs. long-term memory
– Associative network memory model
– Brand associations
– Memory encoding
– Memory retrieval
The Buying
Decision Process
• The consumer typically passes
through five stages
– Problem recognition
– Information search
– Evaluation of alternatives
– Purchase decision
– Postpurchase behavior
The Buying
Decision Process
• Problem recognition
– The buyer recognizes a problem/need
triggered by internal/external stimuli
The Buying
Decision Process
• Information search
Personal sources
Commercial sources
Public sources
Experiential sources
Figure 6.5
Sets Involved In Decision Making
The Buying
Decision Process
• Evaluation of alternatives
– Expectancy-value model
The Buying
Decision Process
• Purchase decision
– Compensatory vs. noncompensatory models
Conjunctive heuristic
Lexicographic heuristic
Elimination-by-aspects heuristic
Intervening factors
Types of perceived risk
Functional
Physical risk
risk
Financial
Time risk risk
Psychological
Social risk
risk
The Buying
Decision Process
• Postpurchase behavior
– Postpurchase
satisfaction
– Postpurchase actions
– Postpurchase uses
and disposal
Figure 6.7
Customer Product Use/Disposal
Moderating Effects on Consumer
Decision Making
• Low-involvement Consumer Decision Making
• Variety-Seeking Buying Behavior
Behavioral Economics
• Decision Heuristics
– Availability heuristic
– Representativeness heuristic
– Anchoring and adjustment heuristic
• Framing
– Mental accounting
