5. Analyzing Consumer Markets
1. How do consumer characteristics influence buying behavior? 2. What major psychological processes influence consumer responses to the marketing program? 3. How do marketers analyze consumer decision making?
4. How do consumers make purchasing decisions?
* The aim of marketing is to meet and satisfy target customers’ needs and wants better than competitors * Marketers are always looking for emerging customer trends that suggest new marketing opportunities * Adopting a holistic marketing orientation means understanding customers and the bases for their choices * This lecture explores individual consumer buying dynamics * Task: Using any stimulus response model explain your understanding of consumer behavior WHAT IS CONSUMER BEHAVIOR?
It is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs & desires (Solomon, 2006) It reflects the totality of consumers’ decision with respect to the acquisition, consumption, & disposition of goods, services, time, & ideas by human decision making units over time * Consumers are actors on the stage:
* Evolves from the perspective of role theory which takes the view that much of consumer behavior resembles actions in a play * Because people act out many different roles, they sometimes alter their consumption decisions depending on the he particular play they act at the time * Consumer behavior is a process:
* Consumer behavior is an ongoing process, not merely what happens at the moment a consumer hands over payment & in turn receives the good or service * Consumer behavior involves many different actors:
* Generally a consumer is a person who identifies a need or desire, makes the purchase of the product * However many different people may be involved in this sequence of events * The purchaser & user of the product might be different * Another may act to influence the purchase
* Finally consumers may take the form of organizations or groups, with implications for the buying process
WHAT INFLUENCES CONSUMER BEHAVIOR?
1. Cultural factors
2. Social factors
3. Personal factors
4 Key psychological processes influence consumer responses: * Motivation
* The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions. * Through family & other socializations a child growing up in the US acquires values such as: achievement & success, activity, individuality, material comfort, freedom, humanitarianism and youthfulness (Schiffman & Kanuk, 2006) * Cultural factors exert the broadest & deepest influence Each culture consists of Subcultures & social Classes
* Subcultures provide more specific identification & socialization for their members * They include:
* Racial groups
* Geographic regions
* Special interests
* Multi-cultural marketing grew out of marketing research which revealed that different ethnic & demographic niches don't favorably respond to mass marketing * Hence the need to develop well thought out multicultural marketing strategies Social Classes
* All human societies exhibit social stratification
* Stratification can take the form of caste system where the members of different castes are reared for certain roles & cant change the caste membership * Social classes are relatively homogenous & enduring divisions in a society which are hierarchically ordered & whose members share similar values, interests & behavior Characteristics of Social Classes
* Social classes have several...
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