1
CHAPTER 4:
UNDERSTANDING
CUSTOMERS:
BUSINESS TO
CONSUMER MARKETS
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McGraw-Hill
Education
Part 2: Use Information to Drive Marketing
Decisions
LEARNING OBJECTIVES
2
Understand the value of knowing the consumer
Consider the role of personal and psychological factors in
consumer decision making
Appreciate the critical and complex role of cultural, situational, and
social factors in a consumer purchase decision
Understand the consumer decision making process
3
THE POWER
OF THE CONSUMER
Marketers are interested in learning about the
process people use to make purchase decisions.
A company can only deliver value with an accurate
and timely understanding of the customer.
Complex forces influence consumer choices and
these forces change over time.
EXHIBIT 4.1
MODEL OF THE CONSUMER DECISION PROCESS
Marketing Activities Affect Consumer
Decision Process:
Value Proposition
Distribution
Marketing Communications
Environmental Forces Affect
Consumer Decision Process:
Economic
Technology
Political
Problem Recognition
CHAPTER 01
Post-Purchase
Assessment
Product
Choice
Decision
Internal Forces:
Personal Characteristics
Psychological Attributes
External Factors
Cultural
Situational
Social
Search for
Information
Evaluation
of
Alternative
Solution
Personal Characteristics
5
Life Cycle
Stage
Occupation
Lifestyle
Gender
Roles
Psychological Attributes
6
Motivation
Personality
Attitude
Learning
Perception
Psychological Attributes
7
Motivation: The
stimulating power that
induces and then directs
behavior.
Attitude: A learned
disposition to respond to
an object or class of
objects in a consistently
favorable or unfavorable
way.
EXHIBIT 4.5
CONTEMPORARY THEORIES OF MOTIVATION
Marketing
Implications
Theory
Key Elements
Maslow’s Hierarchy of
Needs Theory
Humans have wants and needs
which influence their behavior.
People advance only to the next
level if the lower needs are
meet.
1.
2.
3.
4.
5.
Physiological
Safety
Love/Social
Self Esteem
Self Actualization
Individuals are not interested in
luxuries until they have had
basic needs (food, shelter) met
Herzberg’s Two Factor
Theory
Certain factors in the workplace
result in job satisfaction.
1.
Motivators: challenging
work, recognition, and
responsibility
Hygiene factors: status,
job security, salary, and
benefits
Satisfying hygiene factors does
not create a loyal employee or
customer. For a company to
really create really satisfied
employees it is important to
focus on motivators
2.
Expansion on Maslow’s
Hierarchy placing needs in three
categories.
1.
2.
3.
Existence
Relatedness
Growth
People need a sense of
belonging and social
interaction. Creating a
relationship with the customers
extends the customers
satisfaction with the product
McClelland’s Achievement
Motivation Theory
There are three categories of
needs and people differ in the
degree in which the various
needs influence their behavior
1.
2.
3.
Need for Achievement
Need for Power
Need For Affiliation
Companies can be successful
targeting one of three basic
needs.
CHAPTER 01
Aldelfer’s ERG Theory
Psychological Attributes
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Perception
Selective
Retention
Selective
Distortion
Selective
Awareness
Psychological Attributes
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Learning: Any change in the content or
organization of long-term memory or behavior.
Conditioning
creates an association between two
stimuli.
Classical
conditioning promotes learning through
stimulus and response.
Operant conditioning rewards desirable behavior.
Cognitive
learning is more active and requires
information to work through problems and life
situations.
Psychological Attributes
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Personality
Each
person has a set of
consistent, enduring personal
characteristics.
Those characteristics can be
measured to identify differences
between individuals.
Psychological Attributes
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Brand personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
Down-toEarth,
Honest,
Wholesome,
Cheerful
Daring,
Spirited,
Imaginative,
And Current
Reliable,
Intelligence,
And
Successful
Upper Class
And
Charming
Outdoorsy
And Tough
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EXTERNAL FACTORS SHAPE
CONSUMER CHOICES
Cultural Factors
Language
Subculture
Values
CHAPTER 01
EXHIBIT 4.7
SUBCULTURE GROUPS IN THE UNITED STATES
Source: U.S. Census Bureau, www.census.gov, accessed August 4, 2008.
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EXTERNAL FACTORS SHAPE
CONSUMER CHOICES
Situational Factors
Physical
Surroundings
Personal
Circumstances
Time
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EXTERNAL FACTORS SHAPE
CONSUMER CHOICES
Social Factors
Family
Household
Life Cycle
Social
Class
Opinion
Leaders
Reference
Groups
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THE LEVEL OF
INVOLVEMENT INFLUENCES
THE PROCESS
Involvement activated by
A
person’s background
The aspirational focus
Environment at decision-making time
High Involvement Learning
People
spend time more time in the decision-making
process and report higher satisfaction.
Low Involvement Learning
Routine
or relatively unimportant decision-making
CHAPTER 01
EXHIBIT 4.10
CONSUMER DECISION MAKING PROCESS
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THE CONSUMER DECISION
MAKING PROCESS
Real State
Problem
Recognition
Preferred State
20
THE CONSUMER DECISION
MAKING PROCESS
Minimal
Information
Search
Search for
Information
Limited
Information
Search
Extensive
Information
Search
21
THE CONSUMER DECISION
MAKING PROCESS
Search for
Information
Information
Sources
Internal
Information
Search
External
Information
Sources
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THE CONSUMER DECISION
MAKING PROCESS
Complete Set
Search for
Information
Defining the Set
of Alternatives
Awareness Set
Consideration
(Evoked) Set
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THE CONSUMER DECISION
MAKING PROCESS
Emotional
Choice
Evaluation of
Alternatives
Attitude
based
Choice
Attribute
based
Choice
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THE CONSUMER DECISION
MAKING PROCESS
Physical
Surroundings
Product
Choice
Decision
Social
Circumstances
Time
State of Mind
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THE CONSUMER DECISION
MAKING PROCESS
What
Where
Product Choice
Decision
How Much
When
Payment
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THE CONSUMER DECISION
MAKING PROCESS
Dissonance
Use/Non Use
Post Purchase
Assessment
Disposal
Instrumental
Performance
Satisfaction
Dissatisfaction
Symbolic
Performance
Photo Credits
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Slide 4-7: Floresco Productions/age fotostock
Slide 4-11: #1 love images/Getty Images; #2 Paul
Bradbury/age fotostock
