Marketing Management, 12/eA South Asian Perspective

6 Analyzing

Consumer Markets

Kotler Koshy

Keller Jha

6-2

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?

How do marketers analyze consumer decision making?

6-3

What Influences Consumer Behavior?

Cultural factors Social factors Personal factors

6-4

Culture

The fundamental determinant of a person’s wants and behaviors

acquired through socializationprocesses with family

and other key institutions.

6-5

Subcultures

Nationalities Religions Racial groups Geographic regions Special interests

6-6

Socioeconomic Classification (SEC) Matrix—India (Urban)

6-7

SEC Matrix—India (Rural)

6-8

Socioeconomic Class-wise Distribution of Households (%)

6-9

Indian Households by Income Groups

6-10

Age Distribution of Population—India

6-11

Characteristics of Social Classes

Within a class, people tend to behave alike. Social class conveys perceptions of inferior or

superior position. Class may be indicated by a cluster of variables

(occupation, income, wealth, and education). Class designation is mobile over time.

6-12

Social Factors

Referencegroups

Social roles

Statuses

Family

6-13

Reference Groups

Membership Primary Secondary Aspirational Dissociative

6-14

Family

Family of orientationReligionPoliticsEconomics

Family of procreationEveryday buying behavior

6-15

Personal Factors

Age Life cycle stage Occupation Wealth

Personality Values Lifestyle Self-concept

6-16

Brand Personality

Sincerity Excitement Competence Sophistication Ruggedness

6-17

Key Psychological Processes

Motivation Perception Learning Memory

6-18

Motivation

Freud’s theory Maslow’s hierarchy of needs Herzberg’s two-factor theory

6-19

Perception

Selective attention Selective retention Selective distortion Subliminal perception

6-20

Figure 6.4 Consumer Buying Process

Problem recognition Information search Evaluation Purchase decision Postpurchase behavior

6-21

Sources of Information

Personal Commercial Public Experiential

6-22

Non-compensatory Models of Choice

Conjunctive Lexicographic Elimination-by-aspects

6-23

Perceived Risk

Functional Physical Financial

Social Psychological Time

6-24

Other Theories of Consumer Decision Making

Involvement Elaboration

likelihood model Low-involvement

marketing strategies Variety-seeking

buying behavior

Decision Heuristics Availability Representativeness Anchoring and

adjustment

6-25

Mental Accounting

Consumers tend to…Segregate gains Integrate losses Integrate smaller losses with larger gainsSegregate small gains from large losses