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Chapter Questions
3 • Identify the key factors that influence
Analyzing consumer behavior.
• Explain the role cultural, social, and personal
Consumer Markets factors play in consumer behavior
• Explain how consumers’ needs, emotions,
and memory influence their behavior
• Illustrate the key stages of the buying
decision process.
Marketing Management
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RFL, country's Model of Consumer Behavior
leading business
conglomerate, has
launched electronic
bicycle (e-bike) in
the market with the
aim of bringing
affordable electronic
bicycle to the hands
of the consumers.
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What Influences
What is Culture?
Consumer Behavior?
A culture is a way of life among a group
Cultural Factors
of people—the behaviors, beliefs,
values, and symbols that
they accept, generally without thinking
Social Factors about them, and that are passed along
by communication and
imitation from one generation to the
Personal Factors next.
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Subcultures Social Classes
Nationalities
Upper uppers
Lower uppers
Religions
Upper middles
Middle class
Racial groups
Working class
Upper lowers
Geographic regions
Lower lowers
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Characteristics of Social Classes Social Factors
• Relatively homogeneous, enduring, and
hierarchically ordered divisions in a
Reference
society whose members share similar Family
groups
values, interests, and behavior
Social
Statuses
roles
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Reference Groups Roles and Status
Membership groups
What degree of status is
associated with various
Primary groups
occupational roles?
Secondary groups
Aspirational groups
Dissociative groups
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Personal Factors The Family Life Cycle
Age
Self- Life cycle
concept stage
Lifestyle Occupation
Values Wealth
Personality
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Lifestyle Influences
Multi-tasking
Time-starved
Money-constrained
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Key Psychological Processes
Faysal Bank of
Pakistan has
extended Motivation Perception
banking hours
for time-pressed
executives.
Learning Memory
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Maslow’s Hierarchy of Needs Perception
Selective Attention
Selective Retention
Selective Distortion
Subliminal Perception
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Emotion Memory
• Emotions are mental states that arise spontaneously rather than from • Memory—the brain’s ability to record, store, and retrieve information and
conscious effort and reflect people’s positive or negative reactions to internal
events—also plays a role in consumers’ purchasing decisions.
and external stimuli.
• Consumer response is not all cognitive and rational. Many responses may be • short-term memory
emotional and evoke different kinds of feelings. A brand or product may • long-term memory
make a consumer feel proud, excited, or confident.
• Episodic memory
• Semantic memory
• Procedural memory
• associative network memory model
• Brand association
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Figure 6.4 Consumer Buying Process
State Farm Mental Map
Problem Recognition
Information Search
Evaluation
Purchase Decision
Postpurchase
Behavior
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Problem Recognition Sources of Information
Personal Commercial
Public Experiential
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Figure 6.5 Successive Sets Involved in Table Laptop Computer Choice
Consumer Decision Making set ( expectancy Value model)
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The Level of Consumer
Decision Heuristics
Involvement
• Elaboration likelihood model, an influential model of attitude • Rather than calculating the perceived importance
formation and change, describes how consumers make
evaluations in both low- and high-involvement circumstances. of every attribute across products in a
• There are two means of persuasion in the model: the central route, in consideration set, consumers often take “mental
which attitude formation or change stimulates much thought and is
based on the consumer’s diligent, rational consideration of the
shortcuts,” called heuristics or rules of thumb, in
most important product information; the decision process.
• The peripheral route, in which attitude formation or change
provokes much less thought and results from the consumer’s association • Availability
of a brand with either positive or negative peripheral cues.
• Peripheral cues for consumers might include a celebrity endorsement,
• Representativeness
a credible source, or any object that generates strong emotional • The conjunction fallacy
response.
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Mental Accounting Intervening Factors
• Consumers tend to…
• Segregate gains
• Integrate losses
• Integrate smaller losses with larger gains
• Segregate small gains from large losses
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Perceived Risk POSTPURCHASE BEHAVIOR
• Functional risk Consumers evaluate products after purchase
• Satisfaction = Perceived performance vs. Expectations
• Physical risk • Below expectations → Disappointment
• Financial risk • Meets expectations → Satisfaction
• Psychological risk • Exceeds expectations → Delight
• Affects:
• Opportunity risk Repeat purchases
Word-of-mouth (positive or negative)
Marketers must reinforce purchase confidence with
follow-up communication
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POSTPURCHASE BEHAVIOR POSTPURCHASE BEHAVIOR
Satisfied customers: Marketer Tools: Driving Repurchase Through Usage & Timing
•Become loyal buyers • Thank-you messages
•Act as brand advocates
• Frequent use → Faster repurchase
• Clear instructions
• Email updates & feedback
• Customers often overestimate product life
loops
Dissatisfied customers:
•Return or abandon product • Easy grievance redressal
Strategies to Drive Reuse:
•Take public action (complaints,
reviews) • Event-based cues (e.g., battery change on
•Take private action (exit or warn Daylight Savings)
others)
• Subscriptions (e.g., razors, toothbrush heads)
• Usage indicators (e.g., color strips on razors)
• Usage nudges (e.g., "shampoo, rinse, repeat")
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