IPE 4101:Industrial and Business Management
Lecture Series on Marketing Management
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Ch
Analyzing
Consumer Markets
Chapter Questions
How do consumer characteristics influence
buying behavior?
What major psychological processes influence
consumer responses to the marketing
program?
How do consumers make purchasing
decisions?
In what ways do consumers stray from a
deliberate rational decision process?
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Consumer Behavior
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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
person’s wants and behaviors acquired
through socialization processes with family
and other key institutions.
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Subcultures
Nationalities
Religions
Racial groups
Geographic regions
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Fast Facts About
American Culture
The average American:
chews 300 sticks of gum a year
goes to the movies 9 times a year
takes 4 trips per year
attends a sporting event 7 times each
year
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Social Classes
Upper uppers
Lower uppers
Upper middles
Middle
Working
Upper lowers
Lower lowers
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Social Factors
Reference groups
Family
Social roles
Statuses
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Reference Groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Disassociative groups
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Family Distinctions
Affecting Buying Decisions
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Personal Factors
Age Personality
Life cycle stage Values
Occupation Lifestyle
Wealth Self-concept
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Age and Stage of Lifecycle
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Occupation and Economic
Circumstances
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Personality
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Brand Personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
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Figure 6.1 Model of
Consumer Behavior
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Motivation
Maslow’s Herzberg’s
Freud’s Hierarchy Two-Factor
Theory of Needs Theory
Behavior Behavior Behavior is
is guided by is driven by guided by
subconscious lowest, motivating
motivations unmet need and hygiene
factors
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Maslow’s Hierarchy
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Perception
Selective attention:- It means the marketers must work
hard to attract consumers notice. Here, some findings:
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 with large deviations .
Selective retention:
Consumers will often distort information to be consistent with prior brand and
product beliefs.
We remember good points about a product we like
And forget bad points
Advantage of strong brands
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Perception
Selective distortion:
-It is a Tendency to interpret information in a way that will fit our
preconceptions
Comsumer will often distort information to be consistant with prior
brand, product believe and expectations.
Subliminal perception:
Its mechanisms requires consumers active engagements and
thought. It has long long fascinated armchair marketers, Hidden
message conveyed through the advertisement but Consumers
are not consciously aware of them,yet the affect behavior. Here
Mental Processes include many subtle subconscious effects.
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Learning
Learning: It induces changes in our permanent behavior
arising from the experience.
Drive: A strong internal stimuli's impelling actions.
Cue: are stimuli's that determines when, where and how a
person responds.
Generalization: Example of HP laptops Promotes HP
Pointers.
Discrimination: A countertendency of Generalization.
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Emotions
Emotions: Consumer response is not all cognitive and rational; much
may be emotional and invoke different kinds of feelings. A brand or
product may make a consumer feel proud, excited or confident. An ad
may create feelings of amusement, disgust or wonder.
Amusement
Disgust
Wonder
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Memory
Memory
Short Term Memory(STM)
Long Term Memory(LTM)
Memory Encoding
Memory Retrieval
Interference Effect
Time between exposure and encoding
Proper cues and memory triggers
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Figure 6.3 State Farm Mental Map
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Figure 6.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior
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Sources of Information
Personal Commercial
Public Experiential
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Figure 6.5 Successive Sets in
Decision Making
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Table 6.4 A Consumer’s Brand
Beliefs about Laptop Computers
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Figure 6.6 Steps Between
Alternative Evaluation
and Purchase
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