Marketing Management
Chapter 3
Analyzing Consumer
Markets
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Learning Objectives
3.1 Identify the key factors that influence consumer
behavior.
3.2 Explain the role cultural, social, and personal factors
play in consumer behavior.
3.3 Explain how consumers’ needs, emotions, and memory
influence their behavior.
3.4 Illustrate the key stages of the buying decision process.
What Is Consumer Behavior?
• Consumer behavior
– The study of how individuals, groups, and
organizations select, buy, use, and dispose of goods,
services, ideas, or experiences to satisfy their needs
and wants
Figure 3.1 Model of Consumer Behavior
What Influences Consumer Behavior? (1 of 3)
• Cultural factors
– Culture
– Subcultures
– Social classes
What Influences Consumer Behavior? (2 of 3)
• Social factors
– Reference groups include all the groups that have a
direct or indirect effect on a person’s beliefs,
decisions, and behavior
– Family
Reference Groups
• Primary group is family
• Aspirational groups
• Dissociative groups
• Opinion leader or influencer offers informal advice or
information about a specific product or product category
Family
• Family of orientation v s family of procreation
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What Influences Consumer Behavior? (3 of 3)
• Personal factors
– Age/stage in life cycle
– Occupation and
economic
circumstances
– Personality and self-
concept
– Lifestyle and values
Consumer Psychology
• Consumer motivation
• Perception
• Learning
• Memory
Consumer Motivation (1 of 2)
• Consumer needs
– Basic human requirements
▪ Biological
▪ Psychological
– Wants
– Demands
Figure 3.2 Maslow’s Hierarchy of Needs
Consumer Motivation (2 of 2)
• Consumer motivation
– A need becomes a
motive when it is
aroused to a sufficient
level of intensity to
drive us to act
Perception (1 of 3)
• Perception
– The process by which we select, organize, and
interpret information inputs to create a meaningful
picture of the world
Perception (2 of 3)
• Selective attention
– Marketers must work hard to attract the notice of
consumers
– Subliminal perception
Perception (3 of 3)
• Selective distortion
– Tendency to interpret information in a way that fits our
preconceptions
Emotions
• Emotions
– Leverage emotional appeal
Memory (1 of 3)
• Memory models
– Short-term memory—a temporary and limited
repository of information
– Long-term memory—a more permanent, essentially
unlimited repository
▪ Episodic memory
▪ Semantic memory
▪ Procedural memory
Memory (2 of 3)
• Associative network memory model
– Brand associations—all brand-related thoughts,
feelings, perceptions, images, experiences, beliefs,
attitudes that become linked to the brand node
Memory (3 of 3)
• Memory processes
– Memory encoding—how and where information gets
into memory
– Memory retrieval—the way information gets out of
memory
The Buying Decision Process (1 of 6)
• The consumer typically passes through five stages
– Problem recognition
– Information search
– Evaluation of alternatives
– Purchase decision
– Postpurchase behavior
Figure 3.3 Five-Stage Model of the
Consumer Buying Process
The Buying Decision Process (2 of 6)
• Problem recognition
– The buyer recognizes a problem/need triggered by
internal/external stimuli
The Buying Decision Process (3 of 6)
• Information search
– Personal sources
– Commercial sources
– Public sources
– Experiential sources
• Search Dynamics
Figure 3.4 Successive Sets Involved In
Consumer Decision Making
The Buying Decision Process (4 of 6)
• Evaluation of alternatives
– Beliefs and attitudes
– Information processing
– Expectancy-value model
Table 3.1 Laptop Computer Choice Set
Attribute Attribute
Laptop Memory Graphics Attribute Size
Computer Capacity Capability and Weight Attribute Price
A 8 9 6 9
B 7 7 7 7
C 10 4 3 2
D 5 3 8 5
The Buying Decision Process (5 of 6)
• Purchase decision
– Decision heuristics—rules of thumb
– Level of consumer involvement
▪ Elaboration likelihood model
– Intervening factors
Figure 3.5 Steps between Evaluation of
Alternatives and a Purchase Decision
Intervening Factors
• Types of perceived risk
– Functional risk
– Physical risk
– Time risk
– Financial risk
– Psychological risk
– Social risk
The Buying Decision Process (6 of 6)
• Postpurchase behavior
– Postpurchase
satisfaction
– Postpurchase actions
– Postpurchase uses
and disposal