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MARKETING MANAGEMENT 12th edition 6 Analyzing Consumer Markets Kotler Keller 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? 6-2 Emerging Trends in Consumer Behavior Metrosexual – Straight urban man who enjoys shopping and using grooming products 6-3 What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors 6-4 Culture The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions 6-5 Subcultures Nationalities Religions Racial groups Geographic regions Special interests 6-6 Insight into the subculture of wine enthusiasts 6-7 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 6-8 Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers 6-9 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 6-10 Social Factors Reference groups Family Social roles Statuses 6-11 Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups 6-12 Family • Family of Orientation – Religion – Politics – Economics • Family of Procreation – Everyday buying behavior 6-13 Targeting Women and Their Families 6-14 Roles and Statuses What degree of status is associated with various occupational roles? 6-15 Personal Factors Age Selfconcept Life cycle stage Lifestyle Occupation Values Wealth Personality 6-16 Behavior changes according to life cycle stage •Family •Psychological •Critical life events 6-17 Brand Personality Sincerity Excitement Competence Sophistication Ruggedness 6-18 Lifestyle Influences Multi-tasking Time-starved Money-constrained 6-19 Figure 6.1 Model of Consumer Behavior 6-20 Key Psychological Processes Motivation Perception Learning Memory 6-21 Motivation Freud’s Theory Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory Behavior is guided by subconscious motivations Behavior is driven by lowest, unmet need Behavior is guided by motivating and hygiene factors 6-22 Maslow’s Hierarchy of Needs 6-23 Herzberg’s Two-Factor Theory 6-24 Perception Selective Attention Selective Retention Selective Distortion Subliminal Perception 6-25 Figure 6.3 Dole Mental Map 6-26 Encoding Brand Associations 6-27 Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior 6-28 Problem Recognition 6-29 Sources of Information Personal Commercial Public Experiential 6-30 Figure 6.5 Successive Sets 6-31 Evaluation of Attributes Table 6.3 6-32 Figure 6.6 Stages between Evaluation of Alternatives and Purchase 6-33 Non-compensatory Models of Choice • Conjunctive • Lexicographic • Elimination-by-aspects 6-34 Perceived Risk Functional Physical Financial Social Psychological Time 6-35 Figure 6.7 How Customers Use and Dispose of Products 6-36 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 6-37 Mental Accounting • Consumers tend to… – Segregate gains – Integrate losses – Integrate smaller losses with larger gains – Segregate small gains from large losses 6-38 Marketing Debate Is Target Marketing Ever Bad? Take a position: 1. Targeting minorities is exploitative. 2. Targeting minorities is a sound business practice. 6-39 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? 6-40