Kotler06cosumer mkt

7/30/2019 Kotler06cosumer mkt

1/45

MARKETING MANAGEMENT

12thedition

Chapter 6

Analyzing

Consumer Markets

Kotler Keller


2/45

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?


3/45

3

Road Map: Previewing the Concepts Understand the consumer market and the major

factors that influence consumer buyer behavior.

Identify and discuss the stages in the buyerdecision process.

Describe the adoption and diffusion process fornew products.

Define the business market and identify the majorfactors that influence business buyer behavior.

List and define the steps in the business buyingdecision process.


4/45

4

INTRODUCTION TOCONSUMER

People differ in-Age, Gender, education,

demographic, Occupation, income, Maritalstatus, as well as in Psychographics: activitypreference opinion

Individual diversity is matched by diversity ofmkts

So many ways of mkts:- exist local, national,global, (Mass mktg to niche mktg)


5/45

5

INTRODUCTION cont.

Great diversity in advtg media Air, television,

Press, cable TV, Internet, world wide web

Despite the diversity among us there are many

similarities

Born with same set of biological needsWe acquire new needs

Shape our need by/ for environment

culture, education, experience


6/45

6

INTRODUCTIONcont.

Still we purchase few things on regular basis

those things might be common among many of

us. That means in purchasing goods, services &

ideas behaviour is involved

This in turn affects demand, supply employment,

savings etc.

Thus consumer behaviour is an integral part of

flow of all business activities.


7/45

7

INTRODUCTION cont.

Consumer behaviour is the behaviourdisplayed by the consumers in searching for,

purchasing, using, evaluating & disposing of

products & services, that they expect willsatisfy their needs

It is the study of how individuals

make decisions to spend their

available resources( money,

time, efforts) on

consumption items.


8/45

8

INTRODUCTION cont.

Consumer behaviour reflects the totality of

consumer decision with respect to the

acquisition, consumption & disposition of

goods, services, time & ideas by individuals

over a stipulated time

In this dynamic & rapidly

evolving industry marketers

need to know every thing

about consumers


9/45

9

WHAT IS CONSUMER

BEHAVIOUR

Consumer behaviour involves more

than products

Consumer behaviour

involves more than just buying

Consumer behaviour is a

dynamic process Consumer behaviour involves

decision making


10/45

10

INTRODUCTION cont.

The set of decisions

What they buy,

Why they buy

How they buy

When they buy

Where they buy

How often they buy

How much they buy

Whether they buy or not


11/45

11

Consumer Buying Behavior

Consumer Buying Behavior refers to thebuying behavior of final consumers -individuals & households - who buy goods

and services for personal consumption. These final consumers make up the

consumer market.

The central question for marketers is: How do consumers respond to various marketingefforts the company might use?


12/45

12

How And Why Consumers Buy

Model of Customer Buyer Behaviour


13/45

13

Model of Consumer Behavior


14/45

14

Factors Influencing

Consumer Behaviour


15/45

15

Factors Affecting Consumer

Behaviour: Culture

Subculture

Groups of people with sharedvalue systems based on commonlife experiences.

Hispanic Consumers

African American Consumers

Asian American Consumers

Mature Consumers

Culture is the Most Basic Cause of a Person'sWants and Behaviour.

The fundamentaldeterminant of a personswants and behaviors

acquired throughsocialization processeswith family and other keyinstitutions.


16/45

16


Behavior: Culture

Social Class

Societys relatively permanent

& ordered divisions whosemembers share similarvalues, interests, andbehaviour.

Measured by a Combinationof: Occupation, Income,Education, Wealth and OtherVariables.


17/45

17

Indian Subcultures

Nationalities: Indian

Religions: Hindu, Sikh, Muslim, Geographic regions: East, West, North,

South

Special interests: Business, Service, Army


18/45

18

Factors Affecting ConsumerBehaviour: Social

Roles and Status

FamilyMost Important Consumer Buying

Organization

GroupsMembership, Reference,

or Aspirational


19/45

19

Characteristics of Social Classes

Within a class, people tend to behave alike.

Social class conveys perceptions of inferioror superior position.

Class may be indicated by a cluster ofvariables (occupation, income, wealth).

Class designation is mobile over time.

Upper uppers, Lower uppers, Uppermiddles, Middle class, Upper lowers, Lowerlowers, Working class


20/45

20

Social Factors

Reference

groups

Socialroles

Statuses

Family


21/45

21

Family

Family of Orientation

Religion

Politics

Economics

Family of Procreation

Everyday buying behaviour


22/45

22

The

FamilyLife

Cycle


23/45

23

Reference Groups

Membership: groups having direct influence onperson

Primary: with whom interaction is fairlycontinuously & informally e.g. family, friend

Secondary: with whom interaction is formal &requires less continuous interaction

Aspirational: the group which person hopes tojoin

Dissociative: the group which person rejects


24/45

24

Brand Personality

Sincerity

Excitement

Competence Sophistication

Ruggedness


25/45

25

Personal Factors

Age

Life cycle stage

Occupation Wealth

Personality

Values

Lifestyle Self-concept

Sincerity

Excitement

CompetenceSophistication

Ruggedness


26/45

26

Personal Influences

Age and LifeCycle Stage Occupation

Personality &Self-Concept

EconomicSituation

Activities Interests

Lifestyle Identification

Opinions


Behaviour: Personal


27/45

27


Behaviour: Psychological

PsychologicalFactors

Affecting

BuyersChoices

Motivation

Perception

Learning

Beliefs andAttitudes


28/45

28

Key Psychological Processes

Motivation

Perception

Learning Memory


29/45

29

Motivation

Freuds theory: It is assumed that the psychologicalforces shaping peoples behaviour are largely

unconscious, & a person cannot fully understand his/her

own motivation

Maslows hierarchy of needs: Explain whypeople are driven by particular needs at particular times

Herzbergs two-factor theory: Two factor theorythat distinguishes dissatisfiers & satisfiers


30/45

30

Maslows Hierarchy of Needs


31/45

31

Perception

Perception is the process by which an individualselects, organises,& interprets information inputs to

create a meaningful picture of the world. Peoples

perception may get effected by the process:-

Selective attention

Selective retention

Selective distortion Subliminal perception


32/45

32

Learning & Memory

Learninginvolves changes in individuals behaviourarising from experience. Learning is produced throughthe interplay of

Drive

Stimuli

Cue

Response

Reinforcement

Memory: all the information & experiences individualencounters through the life is stored in long / short-termmemory


33/45

33

Buyer Decision Process


34/45

34

Buyer Decision Process

Step 1. Need Recognition

Internal Stimuli

Hunger

External Stimuli-

Friends

Buyer

RecognizesaProblem

or aNeed

ArisingFrom:


35/45

35

Family, friends, neighborsMost effective source of

informationAdvertising, salespeopleReceives the most information

from these sources

Mass Media

Consumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential Sources

The Buyer Decision Process

Step 2. Information Search


36/45

36

Consumer May Use CarefulCalculations & Logical Thinking

Consumers May Buy on Impulse andRely on Intuition

Consumers May Make Buying Decisionson Their Own

Consumers May Make Buying DecisionsOnly After Consulting Others

Marketers Must Study Buyers to Find Out

How They Evaluate Brand Alternatives

The Buyer Decision ProcessStep 3. Evaluation of Alternatives


37/45

37

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

UnexpectedSituational

Factors

Attitudesof Others

The Buyer Decision ProcessStep 4. Purchase Decision


38/45

38

Non-compensatory Models of Choice

Conjunctive:consumer sets a minimum acceptablecutoff level, selects that brand which meets minimum

standards

Lexicographic:chooses the brand on the basis of its

perceived most imp attribute

Elimination-by-aspects:compare brands on thebasis of attributes, brands are eliminated if they do not

meet minimum acceptable level.


39/45

39

Perceived Risk

Figure 9.6


40/45

40

Consumers

Expectations of Products Performance

Products Perceived

Performance

Dissatisfied Customer

Satisfied Customer!

The Buyer Decision ProcessStep 5. Postpurchase Behaviour

Cogn

itive

Dissonance


41/45

41

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


42/45

42

Stages in the Adoption Process

Awareness: Consumer becomes aware of thenew product, but lacks information about it.

Interest: Consumer seeks information aboutnew product.

Evaluation: Consumer considers whethertrying the new product makes sense.

Trial: Consumer tries new product on a smallscale to improve his or her estimate of its value.

Adoption: Consumer decides to make full and

regular use of the new product.


43/45

43

Adopter Categories


44/45

44

DivisibilityCan the innovation

be used on alimited basis?

ComplexityIs the innovation

difficult tounderstand or use?

CommunicabilityCan results be easily

observed or describedto others?

CompatibilityDoes the innovation

fit the values andexperience of the

target market?

Relative AdvantageIs the innovation

superior to existingproducts?

Influence of Product Characteristics

on Rate of Adoption


45/45

45

Mental Accounting

Consumers tend to

Segregate gains

Integrate losses Integrate smaller losses with larger gains

Segregate small gains from large losses

Documents

Kotler06cosumer mkt