To understand the consumers in the target market, marketing managers rely on the 7 O’s framework of consumer research. 7 Os: Occupants, Objects, Objectives, Organizations, Operations, Occasions, Outletss Who constitutes the market? Occupants
What does the market buy? Objects
Why does the market buy? Objectives
Who participates in buying? Organizations
How does the market buy? Operations
When does the market buy? Occasions
Where does the market buy? Outlets
Buyer’s needs, characteristics and decision making process interact with the stimuli created by the environment and marketers and buying decisions are made by the buyers.
Hence marketers have to understand what happens in the buyer’s consciousness between the arrival of outside stimuli and the buyer’s purchase decision. They must answer two questions:
· How do the buyer’s characteristics – socio-cultural (sociological), personal, and psychological influence buying behavior? · How does the buyer make purchasing decisions?
Socio-cultural (sociological), Personal, and
Various sociological factors of importance
They have the broadest and deepest influence.
Culture is different for different societies. In the modern days, there are more common elements. Culture is the most fundamental determinant of a person’s wants and behavior.
Culture of a society is not uniform across all groups in the society. There can be subcultures with certain elements differing from other groups’ cultural elements. Many subculture elements make up important market segments. In a country like USA, that allows people from various countries to come and settle in it, subcultures arise due to the original nationality, religion, racial group apart from the geographical subcultures and age group subcultures.
Sociology identified that social stratification is common among many societies. Social class is a type of stratification. Social classes are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests and behavior.
They include reference groups, family, and roles and statuses of a person. Reference groups
Reference groups influence a person’s behavior directly or indirectly. Groups having a direct influence on a person are called membership groups. People are influenced in the consumption and purchase decisions by groups in which they are members like family, friend circle, neighbors, co-workers, sports teams etc. People are also influenced by groups to which they do not belong presently, but want to belong in course of time. Such groups are called aspirational groups.
Family members constitute the most influential primary reference group or membership group. Each person has a family of orientation that consists of his parents, brothers and sisters. He has a family of procreation consisting of spouse and children. Statuses and roles
People choose products that communicate their status in society. Marketers have to aware of the status symbol potential of products and brands. Each status has a role or group of activities to be performed. Persons have multiples statuses in different groups to which they belong. Therefore the roles have some bearing on the consumption and purchase decisions.
Personal factors of importance
Age and stage in the life cycle
Children consume baby food. Old people may eat special diets. People diagnosed with specific ailments avoid certain food items. Hence it is easy to conclude thaat people buy different goods and services over their life time. Occupation
Occupation determines the types of items people buy. Certain occupations demand...