Chapter 6
Analyzing Consumer Markets
6-1
Copyright © 2003 Prentice-Hall, Inc.
Key Points for Chapter 6
1.
2.
3.
4.
5.
Culture and subculture
Social class
Reference group
Opinion leader
Occupation & economic conditions

Factors affecting Product Choice
6. Lifestyle & value
6-2
Copyright © 2003 Prentice-Hall, Inc.
Key Points for Chapter 6
7. Freud’s theory, Maslow’s theory , and
Herzberg theory
8. Perception: Selective attention, distortion, and
retention
9. Buying decision process
10. Expectancy-value model
11. Factors affecting purchase decision after
purchase intention
12. Postpurchase satisfaction
6-3
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What Influences Consumer
Behavior?
 Cultural Factors
 Social Factors
 Personal Factors
6-4
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Cultural Factors
 Cultural factors exert the broadest and
deepest influence
 Culture
 Fundamental determinant of a person’s wants
and behavior
 Subculture
 Each culture consists of smaller subcultures
 Hispanics, African-Americans, AsianAmericans, Matured market
6-5
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Cultural Factors
 Social Class
 Relatively homogeneous and enduring divisions in a
society, whose members share similar values, interests,
and behavior
 U.S. Social Class
 (1) Upper uppers, (2) Lower uppers, (3) Upper
Middles, (4) Middle class, (5) working class, (6)
Upper lowers, (7) Lower lowers
 Formed by a cluster of variables: Occupation,
Income, Wealth, Education, and Value
orientation
 Can move one social class to another
6-6
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Cultural Factors
 Social Class (continued)
 Shows distinct product and brand preferences:
clothing, home furnishings, leisure activities, and
automobiles
 Different media preferences
 Upper class: Magazine and books
 Lower class: Television
 Different Television programs
 Upper class: News and drama
 Lower class: Soap opera and sports
 Different slangs and accents
6-7
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Social Factors
 A consumer behavior is also influenced by
social factors
 Reference Groups
 Membership groups
 Aspirational groups
 Dissociative groups
 Opinion Leader
 Family
 Roles and Statuses
6-8
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Personal Factors
 Age and Stage in the Life Cycle
 Occupation and Economic Circumstances
 Personality and Self-Concept
 Brand personality
 Levi’s:
Ruggedness
 MTV:
Excitement
 CNN:
Competence
 Campbell’s: Sincerity
 Self-concept
 Lifestyle and Values
6-9
Copyright © 2003 Prentice-Hall, Inc.
Stimulus-Response Model (Model of
Consumer Behavior) (Fig. 6.1)
 Shows the starting point for understanding
consumer behavior
 Marketing and environmental stimuli enter
consumer’s consciousness
 A set of psychological processes combine with
certain consumer characteristics to result in decision
processes and purchase decisions
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




Product choice
Brand choice
Dealer choice
Purchase amount
Purchasing timing
Payment method
6-10
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Key Psychological Processes
 Motivation
 Perception
 Learning
 Memory
6-11
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Motivation
 Freud’s Theory
 Psychological forces shaping people’s
behavior are largely unconscious
 A person cannot fully understand his or her
own real motivations
 Marketers need to find consumers’ real
motivations triggered by a product and
develop the message and appeal
6-12
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Motivation
 Maslow’s Theory
 Explains why people are driven by particular needs
at particular times
 Human needs are arranged in a hierarchy, from the
most pressing to the least pressing
 In order of importance, Physiological needs, Safety
needs, Social needs, Esteem needs, and Selfactualization needs
 People will try to satisfy their most important need
first.
 When a person succeeds in satisfying an important
need, he or she will then try to satisfy the next-mostimportant need
 Maslow’s theory helps marketers understand how
various products fit into the plans, goals, and lives of
consumers
6-13
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Maslow’s Hierarchy of Needs
6-14
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Motivation
 Herzberg’s Theory
 Two-factor theory
 Dissatisfiers: Factors causing dissatisfaction
 Satisfiers: Factors causing satisfaction
 The absence of dissatisfiers is not enough
 Satisfiers must be actively present to motivate a
purchase
 A computer without warranty or low pay is a
dissatisfier
 The seller must identify the major satisfiers of
purchase in the market.
 These satisfiers will make the major difference as to
which brand the consumer buys
6-15
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Perception
 Perception can vary widely among individuals exposed
to the same reality
 In marketing, perceptions are more important than
reality, as it is perceptions that will affect consumers’
actual behavior
 Three perceptual processes lead to different
perceptions
 Selective Attention
 Selective Distortion
 Selective Retention
6-16
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Perception
 Selective Attention
 Average person is exposed to 1,500 ads or brand
communications a day
 Most stimuli will be screened out
 Selective Distortion
 Tendency interpret it in a way that fits a person’s
preconceptions.
 In blind taste tests, consumer preferences for Diet Coke
and Diet Pepsi were the same
 In branded taste tests: Diet Coke 65%, Diet Pepsi 23%, No
difference 12%
 Selective Retention
 Consumers’ tendency to retain information that
support their attitudes and beliefs
6-17
Copyright © 2003 Prentice-Hall, Inc.
Learning
 Learning induces changes in the consumer’s
behavior from experience
 If a consumer’s experience with a product
(computer) of a certain brand (HP) is
rewarding, he tends to extend it to other
product (printer) of the same brand
 Hedonic bias: People have general tendency to
attribute success to themselves and failure to
external causes. More likely to blame a product
Copyright © 2003 Prentice-Hall, Inc.
Memory
 Any type of information can be stored in the
memory network.
 Consumers form some kind of associative
model.
 Marketers must make sure that consumers
have the right types of product and service
experiences to create and maintain them in
memory
6-19
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The Buying Decision Process
 Marketers need to fully understand how
consumers actually make their buying
decisions
 Understanding Consumer Behavior (Table
6.3)
 Five-Stage Model of the Consumer Buying
Process (Fig. 6.4)
6-20
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Five-Stage Model of
Consumer Buying
Process
 Consumers usually
pass through five
stages
 But do not always
pass through all five
stages
 Skip some stages
depending the
buying situations
6-21
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Five-Stage Model
Problem Recognition
 Consumer recognizes a problem or need by
internal or external stimuli
 Marketers need to identify the circumstances
that trigger a particular need by gathering
information from consumers
 Can develop marketing strategies that trigger
consumer interest
6-22
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Five-Stage Model
Information Search
 Information Sources
 Personal sources
 Commercial sources
 Public sources
 Experiential sources
6-23
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Five-Stage Model
Information Search
 Successive Sets involved in Consumer Decision
Making (Fig. 6.5)
 Total set, Awareness set, Consideration set, Choice
set, Decision
 Company must strategize to get its brand into the
prospect’s awareness set, consideration set, and
choice set.
6-24
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Five-Stage Model
Evaluation of Alternatives
 Different evaluation process by each consumer
 Consumers vary as to which product attributes
they see the most relevant and important
 Pay the most attention to attributes that deliver the
sought-after benefits
 Attributes of interest to buyers vary by product:
 Hotel: Location, price, cleanliness, atmosphere
 Mouthwash: Germ-killing capacity, taste/flavor,
price, color
 Tires: Safety, tread life, ride quality, price
6-25
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Five-Stage Model
Evaluation of Alternatives
 Beliefs and Attitudes
 Evaluation often reflects beliefs and
attitudes
 A belief is a descriptive thought that a
person holds about something
 An attitude is a person’s enduring favorable
or unfavorable evaluation or emotional
feeling toward some object or idea
 Very difficult to change
 Company needs to fit its product to existing
attitudes rather than to try to change attitudes
6-26
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Five-Stage Model
Evaluation of Alternatives
 Expectancy-Value Model
 Consumers develop a set of beliefs about
where each brand stands on each attribute
 Assign the weights to each attribute and
multiply a belief rating and a weight: 40%,
30%, 20%, 10%
 Choose the highest scored brand
 A Consumer’s Brand Beliefs about
Computers (Table 6.4)
6-27
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Table 6.3: A Consumer’s Brand Beliefs
about Laptop Computers
Laptop Computer
Attribute
Memory
Capacity
Graphics
Capability
Size and
Weight
Price
A
8
9
6
9
B
7
7
7
7
C
10
4
3
2
D
5
3
8
5
6-28
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Five-Stage Model
Evaluation of Alternatives
 Expectancy-Value Model




Computer A=0.4x8+0.3x9+0.2x6+0.1x9=8.0
Computer B=0.4x7+0.3x7+0.3x7+0.1x7=7.0
Computer C=0.4x10+0.3x4+0.2x3+0.1x2=6.0
Computer D=0.4x5+0.3x3+0.2x8+0.1x5=5.0
 10 represents the highest level on that attribute, but the
lowest price.
 A customer will choose Computer A in this case
6-29
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Five-Stage Model
Evaluation of Alternatives
 Strategies designed to stimulate interest in a
computer
 Redesign the computer (Real positioning)
 Alter beliefs about the brand (Psychological
repositioning)
 Alter beliefs about competitors’ brands (Competitive
repositioning)
 Alter the importance weights
 Call attention to neglected attributes
 Shift the buyer’s ideas
6-30
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Five-Stage Model
Purchase Decisions
 Five Purchase Subdecisions


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
Brand decision
Dealer decision
Quantity decision
Timing decision
Payment-method decision
6-31
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Five-Stage Model
Purchase Decisions
Intervening Factors
Figure 6.6: Steps Between Evaluation of
Alternatives and a purchase decision
6-32
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Five-Stage Model
Purchase Decisions
 Intervening Factors
 Attitudes of others
 Other persons’ negative attitudes toward
consumer’s preferred alternatives
 Infomediaries who publish their evaluations
 Consumer Reports
 Zagat
 Yelp
 J.D. Powers
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Five-Stage Model
Purchase Decisions
 Intervening Factors
 Unanticipated situational factors
 Economic situation-losing a job
 Store salesperson’s behavior
 Ad of a better price from other sellers
 Perceived risk:

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Functional Risk
Physical Risk
Financial Risk
Social Risk
Psychological Risk
Time Risk
6-34
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Five-Stage Model
Purchase Decisions
 Intervening Factors
 Unanticipated situational factors
 The amount of risk varies with
 the amount money at stake
 the amount of attribute uncertainty
 the amount of consumer self-confidence
 Consumers develop routines for reducing risk
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Decision avoidance
Information gathering from friends or experts
Preference for well-known national brands
Warranties
6-35
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Five-Stage Model
Postpurchase Behavior
 Postpurchase Satisfaction
 Disappointed, Satisfied, Delighted
 Postpurchase Actions
 A high correlation between being highly satisfied
and intention to rebuy the brand
 Postpurchase communications to buyers result in
fewer product returns
 Postpurchase Use and Disposal
 Should monitor how buyers use and dispose of the
product
 Consumers may find new uses for the product
6-36
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