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Marketing Management

Fifteenth Edition

Chapter 6

Analyzing

Consumer Markets

Learning Objectives

6.1 How do consumer characteristics

influence buying behavior?

6.2 What major psychological

processes influence consumer

responses to the marketing program?

6.3 How do consumers make

purchasing decisions?

What Influences Consumer

Behavior? (1 of 4)

• Consumer behavior

– 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

– Influenced by cultural, social, and personal factors

What Influences Consumer

Behavior? (2 of 4)

• Cultural factors

– Culture

– Subcultures

– Social classes

What Influences Consumer

Behavior? (3 of 4)

• Social factors

– Reference groups

– Family

– Roles and status

What Influences Consumer

Behavior? (4 of 4)

• Personal factors

– Age/stage in life cycle

– Occupation and economic

circumstances

– Personality and self-concept

– Lifestyle and values

Key Psychological Processes (1 of 6)

• Motivation

• Memory

• Perception

• Emotions

• Learning

Figure 6.1 Model Of Consumer

Behavior

Key Psychological Processes (2 of 6)

• Motivation

– A need becomes a motive when it is aroused to a

sufficient level of intensity to drive us to act

Motivation

• Freud’s Theory

– Behavior is guided by subconscious motivations

• Maslow’s Hierarchy of Needs

– Behavior is driven by lowest, unmet need

• Herzberg’s Two-Factor Theory

– Behavior is guided by dissatisfiers and satisfiers

– The absence of dissatisfiers is not enough to motivate a purchase;

satisfiers must be present. For example, a computer that does not come

with a warranty is a dissatisfier, Yet the presence of a product warranty

does not act as a satisfier or motivator of a purchase because it is not a

source of intrinsic satisfaction.

Figure 6.2 Maslow’s Hierarchy Of

Needs

Human needs are arranged in a hierarchy from most to least pressing—from

physiological needs to safety needs, social needs, esteem needs, and self-

actualization needs (see Figure 6.2). People will try to satisfy their most

important need first and then move to the next.

Key Psychological Processes (3 of 6)

• Perception

– The process by which we

select, organize, and

interpret information

inputs to create a

meaningful picture of the

world

Perception • Selective attention

– People are more likely to notice stimuli that relate to a current need. People are more likely

to notice stimuli they anticipate. People are more likely to notice stimuli whose deviations

are large in relationship to the normal size of the stimuli.

• Selective distortion

– Consumers will often distort information to be consistent with prior brand and product

beliefs and expectations.

– coffee may seem to taste better, a car may seem to drive more smoothly, and the wait in a

bank line may seem shorter, depending on the brand.

• Selective retention

– Most of us don’t remember much of the information to which we’re exposed, but we do

retain information that supports our attitudes and beliefs. Because of selective retention,

we’re likely to remember good points about a product we like and forget good points about

competing products

• Subliminal perception

– marketers embed covert, subliminal messages in ads or packaging. Consumers are not

consciously aware of them, yet they affect behavior.

Key Psychological Processes (4 of 6)

• Learning

– learning is produced through the interplay of drives, stimuli, cues,

responses, and reinforcement.

– Induces changes in our behavior arising from experience

– Generalization and discrimination

▪ A new company can enter the market by appealing to the

same drives competitors use and providing similar cues

because buyers are more likely to transfer loyalty to similar

brands (generalization); or the company might design its brand

to appeal to a different set of drives and offer strong cue

inducements to switch (discrimination).

Key Psychological Processes (5 of 6)

• Emotions

– Many different kinds of

emotions can be linked to

brands

– An emotion-filled brand story

has been shown to trigger’s

people desire to pass along

things they hear about

brands, through either word

of mouth or online sharing.

Firms are giving their

communications a stronger

human appeal to engage

consumers in their brand

stories.

Key Psychological Processes (6 of 6)

• Memory

– Associative network memory

model

▪ Nodes are stored information

connected by links that vary in

strength

▪ A spreading activation process

from node to node determines

how much we retrieve and

what information we can

actually recall in any given

situation.

The Buying Decision Process (1 of 6)

• The consumer typically passes through

five stages

– Problem recognition

– Information search

– Evaluation of alternatives

– Purchase decision

– Postpurchase behavior

Fig. 6.4 Five-Stage Model of the

Consumer Buying Process

The Buying Decision Process (2 of 6)

• Problem recognition

– The buyer recognizes a problem/need triggered by

internal/external stimuli

– Marketers need to identify the circumstances that

trigger a particular need by gathering information from

a number of consumers

The Buying Decision Process (3 of 6)

• Information search

– Personal sources

– Commercial sources

– Public sources

– Experiential sources

– Although consumers receive the greatest amount of

information about a product from commercial—that is,

marketer-dominated—sources, the most effective

information often comes from personal or experiential

sources or public sources that are independent

authorities.

Figure 6.5 Sets Involved In Decision

Making

The Buying Decision Process (4 of 6)

• How does the consumer process competitive brand

information and make a final value judgment?

– Through experience and learning, people acquire

beliefs and attitudes. These in turn influence

buying behavior

• Evaluation of alternatives

– Expectancy-value model (Compensatory)

– consumers evaluate products and services by

combining their brand beliefs—the positives and

negatives—according to importance.

The Buying Decision Process (5 of 6)

• Purchase decision

– With noncompensatory models of consumer choice, positive and negative

attribute considerations don’t necessarily net out.

▪ Conjunctive heuristic

– consumer sets a minimum acceptable cutoff level for each

attribute and chooses the first alternative that meets the minimum

standard for all attributes.

▪ Lexicographic heuristic

– consumer chooses the best brand on the basis of its perceived

most important attribute.

▪ Elimination-by-aspects heuristic

– eliminates brands that do not meet minimum acceptable cutoffs

Types of Perceived Risk

• A consumer’s decision to modify, postpone, or avoid a purchase

decision is heavily influenced by one or more types of perceived risk

1. Functional risk—The product does not perform to expectations.

2. Physical risk—The product poses a threat to the physical well-being or

health of the user or others.

3. Financial risk—The product is not worth the price paid.

4. Social risk—The product results in embarrassment in front of others.

5. Psychological risk—The product affects the mental well-being of the

user.

6. Time risk—The failure of the product results in an opportunity cost of

finding another satisfactory product.

The Buying Decision Process (6 of 6)

• Postpurchase behavior

– Postpurchase satisfaction

– Satisfaction is a function of the closeness between expectations and the

product’s perceived performance. If performance falls short of expectations,

the consumer is disappointed; if it meets expectations, the consumer is

satisfied; if it exceeds expectations, the consumer is delighted.

– A satisfied consumer is more likely to purchase the product again and will

also tend to say good things about the brand to others. Dissatisfied

consumers may abandon or return the product. They may seek information

that confirms its high value. They may take public action by complaining to

the company, going to a lawyer, or complaining directly to other groups (such

as business, private, or government agencies) or to many others online.

Private actions include deciding to stop buying the product (exit option) or

warning friends (voice option).