BBA III lec 4

8/3/2019 BBA III lec 4

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Chapter 6

Analyzing Consumer Markets


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What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors


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What is Culture?Culture is the fundamental determinant of

a persons wants and behaviors acquired

through socialization processes with familyand other key institutions.


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Subcultures

Nationalities

Religions

Racial groups

Geographic regions


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Social Classes

Upper uppers

Lower uppersUpper middles

Middle classWorking classUpper lowersLower lowers


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Characteristics ofSocial ClassesyWithin a class, people tend to behave alike

y Social class conveys perceptions of inferior or superior

positiony Class may be indicated by a cluster of variables

(occupation, income, wealth)

y Class designation is mobile over time


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Social Factors

Reference

groups

Socialroles

Statuses

Family


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Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups


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FamilyyFamily of orientation

yFamily of Procreation


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Roles and StatusWhat degree of status isassociated with various

occupational roles?


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Personal Factors

Age

Values

Life cycle

stage

Occupation

Personality

Self-

concept

Wealth

Lifestyle


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The Family Life Cycle


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Brand personalityy Brand personality is the specific mix of human traits

that may be attributed to a particular brand:

y

Sincerity down to earth, honest, wholesome & cheerfuly Excitement daring, spirited, imaginative & up to date

y Competence reliable, intelligent & successful

y Sophistication upper class & charming

y

Ruggedness outdoorsy & tough


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Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained


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Model of Consumer Behavior


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Key Psychological Processes

Motivation

MemoryLearning

Perception


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Motivation

FreudsTheory

Behavioris guided bysubconsciousmotivations

MaslowsHierarchyof Needs

Behavioris driven bythe lowest,unmet need

HerzbergsTwo-Factor

Theory

Behavior isguided bymotivatingand hygiene

factors


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Maslows Hierarchy of Needs


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Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion


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Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

PostpurchaseBehavior


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Problem

Recognition


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Sources of Information

Personal

ExperientialPublic

Commercial


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Successive Sets Involved in Consumer

DecisionMaking


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Sales and Product Life Cycle


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Stages between Evaluation of Alternatives

and Purchase


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Non-Compensatory Models of Choice

yConjunctive heuristics

yLexicographic heuristics

yElimination-by-aspects heuristics


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Copyright 2009 DorlingKindersley (India) Pvt. Ltd.

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Perceived RiskFunctional

Physical

Financial

Social

Psychological

Time


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How Customers Use and Dispose ofProducts


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Rural Consumer Behavioury Rural consumers are more brand loyal

y Restrictions on consumption

y Collective consumption behaviour: for familyrather than individual

y Seasonality of consumption based on seasonalityof agricultural production/income

y Specific patterns in the five-stage buying decisionprocess


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Other Theories of Consumer Decision Making

Involvement

y Elaboration

Likelihood Modely Low-involvement

marketing strategies

yVariety-seeking

buying behavior

Decision Heuristics

yAvailability

y RepresentativenessyAnchoring and

adjustment


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Mental Accountingy Consumers tend to

ySegregate gains

y Integrate lossesy Integrate smaller losses with larger gains

ySegregate small gains from large losses

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BBA III lec 4