Marketing Management
Analyzing
Consumer Markets
Lecture#5
Session 5
1
Kotler on
Marketing
The most
important
thing is to
forecast where
customers are
moving, and
be in front of
them.
Consumer behavior
• Consumer behavior is 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. Marketers must fully understand
both the theory and reality of consumer
behavior.
a. Many different factors affect consumer
buying behavior. Buying behavior is never
simple. Understanding it, however, is the
essential task of marketing management.
b. Consumer buying behavior refers to the
buying behavior of final consumers —
individuals and households who buy goods
and services for personal consumption
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• c. The consumer market is all the individuals and
households who buy or acquire goods and
services for personal consumption.
• 2). These people consume trillions of dollars of
goods and services each year.
• 3). The world consumer market consists of more
than 6.2 billion people.
• 4). Consumers vary tremendously in age, income,
education level, and tastes.
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• Culture is the set of basic values, perceptions,
wants, and behaviors learned by a member of
society from family and other important
institutions.
• Culture is the most basic cause of a person’s
wants and behavior
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• Each culture contains smaller subcultures.
• Subculture is a group of people with shared
value systems based on common life
experiences and situations.
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Subcultures
Nationalities
Religions
Racial groups
Geographic regions
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Social Factors
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Reference
groups
Family
Social
roles
Statuses
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Social Classes
• Upper uppers
• Lower uppers
• Upper middles
• Middle
• Working
• Upper lowers
• Lower lowers
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Influencing Buyer Behavior
-Aspirational groups
-Dissociative groups
- Primary groups
-Secondary groups
-Opinion leader
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Influencing Buyer Behavior
• Family
• Family of procreation
• Family of orientation
Roles and Statuses
– Role
– Status
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Table 7.2: Stages in the Family Life Cycle
1. Bachelor stage:
Young, single, not living
at home
Few financial burdens. Fashion opinion leaders.
Recreation oriented. Buy: basic home equipment,
furniture, cars, vacations.
2. Newly married
couples:
Young, no children
Highest purchase rate and highest average
purchase of durables: cars, appliances, furniture,
vacations.
3. Full nest I:
Youngest child under six
Home purchasing at peak.Interested in new
products, advertised products. Buy: washers,
dryers, TV, baby food, chest rubs and cough
medicines, vitamins, dolls, wagons, sleds, skates.
4. Full nest II:
Financial position better. Less influenced by
Youngest child six or over advertising. Buy larger-size packages, multipleunit deals. Buy: many foods, cleaning materials,
bicycles, music lessons, pianos.
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Personal Factors
Age
Selfconcept
Life cycle
stage
Lifestyle
Occupation
Values
Wealth
Personality
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Brand Personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
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• Consumers often choose and use brands with a
brand personality consistent with their actual selfconcept (how we view ourselves).
• 1. Sincerity (down-to-earth, honest, wholesome, and
cheerful)
• 2. Excitement (daring, spirited, imaginative, and upto-date)
• 3. Competence (reliable, intelligent, and successful)
• 4. Sophistication (upper-class and charming)
• 5. Ruggedness (outdoorsy and tough)
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Brands also have personalities, and consumers are likely to choose
brands whose personalities match their own.
We define brand personality as the specific mix of human traits
that we can attribute to a particular brand.
Stanford’s Jennifer Aaker researched brand personalities and
identified the following traits:21
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• Aaker analyzed some well-known brands and found
that a number tended to be strong on one
• particular trait: Levi’s on “ruggedness”; MTV on
“excitement”; CNN on “competence”; and
• Campbell’s on “sincerity.” These brands will, in
theory, attract users high on the same traits. A brand
• personality may have several attributes: Levi’s
suggests a personality that is also youthful,
rebellious, authentic, and American.
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Key Psychological Processes
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Motivation
Perception
Learning
Memory
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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
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FREUD’S THEORY Sigmund Freud assumed the
psychological forces shaping people’s behavior are largely
unconscious, and that a person cannot fully understand his
or her own motivations. Someone who examines specific
brands will react not only to their stated capabilities, but
also to other, less conscious cues such as shape, size,
weight, material, color, and brand name. A technique called
laddering lets us trace a person’s motivations from the
stated instrumental ones to the more terminal ones. Then
the marketer can decide at what level to develop the
message and appeal.
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Maslow’s Hierarchy of Needs
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Herzberg’s Two-Factor Theory
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Perception
Selective Attention
Selective Retention
Selective Distortion
Subliminal Perception
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– Selective attention means that marketers
have to work hard to attract consumers’
notice.
–People are more likely to notice
stimuli that relates to a current
need.
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Selective Distortion
•
Selective distortion is the tendency to
interpret information in a way that will fit
our preconceptions. Consumers will often
distort information to be consistent with
prior brands and product beliefs.
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Selective Retention
• People will fail to register much information to which
they are exposed in memory, but will tend to retain
information that supports their attitudes and beliefs.
•
Because of selective retention, we are likely to
remember good points about a product we like and
forget good points about competing products.
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Consumer Buying Process
Problem Recognition
Information Search
Evaluation
Purchase Decision
Postpurchase
Behavior
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Sources of Information
• Personal
• Commercial
• Public
• Experiential
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Perceived Risk
• Functional
• Physical
• Financial
• Social
• Psychological
• Time
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