Presented By - Group 4
CHAPTER 2
Marketing

ANALYZING
CONSUMER
MARKET

Consumer
Behaviour
Consumer behavior is 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.

Consumer
Characteristics
Buying Decision
Process
Consumer
Psychology
Purchase Decision
Cultural
Social
Personal
Problem recognition
Information Search
Evaluation of alternative
Purchase decision
Postpurchase behaviour
Motivation
Perception
Emotion
Memory
Product choice
Brand Choice
Store choice
Purchase qunatity
Purchase timing
Payment method
MODEL OF CONSUMER BEHAVIOUR
Marketing Tactics
Market Context
Product
Service
Brand
Price
Incenntives
Communication
Distribution
Economic
Technological
Legal
Political
Sociocultural
Physical

WHAT INFLUENCE CONSUMER BEHAVIOUR
Cultural
Factors
Social
Factors
Personal
Factors

Cultural Factor
Culture is the fundamental determinant of
a person's wants and behaviors acquired
through socialization processes with family
and other key institutions.

SUBCULTURES
NATIONALITIES
Religions
Racial groups
Geographic regions
Groups of people with shared
value systems based on
common life experiences.
Hispanic Consumers
African American Consumers
Asian American Consumers
Mature Consumers

Social Factors
Refereance
groups
Family
Social
Role
Status

Social Factor
Reference groups are all the groups that have a direct (face to
face) or indirect influence on attitudes or behavior. Reference
groups influence members in at least three ways:
• expose an individual to new behaviors and lifestyles
• influence attitudes and self-concept
• create pressures for conformity that may affect product and
brand choices.
Groups having a direct influence are called Membership groups.
In Primary groups, people interact fairly continuously and
informally, such as family, friends, neighbors, and coworkers.
People also belong to Secondary groups, such as
religious,professional,and trade union groups,which are more
formal and require less continious interaction
1

Family
FAMILY is the most important consumer buying organization in
society and family members constitute the most influential
primary reference group.
There are two families in the buyer's life:
• The family of orientation consists of parents and siblings.
From this, a person acquires an orientation toward religion,
politics, and economics and a sense of personal ambition,
self-worth, and love.
• A more direct influence on everyday buying behaviour is the
family of procreation, the person spouse and children
2

Role and Status
A Role consists of the activities a person is expected to
perform. Each role in turn implies a Status. A senior vice
president of marketing may be seen as having more status than
a sales manager, and a sales manager may be seen as
having more status than an office clerk. People choose
products that reflect and communicate their role and their
actual or desired status in society
3

Age and life Cycle stage
Personality and self Concept
Lifestyle and Values

Age and Life
cylce stage
Our taste in food, clothes, furniture, and
recreation is often related to our age.
It is also shaped by the family life cycle and
the number, age and gender of people in the
household at any point in time.

Occupation and Economic
Circumstances
Occupation also influences consumption
patterns.
Product and brand choice are also affected
by economic circumstances: spendable
income, savings, assets, debts, borrowing
power, and attitudes toward spending and
saving.

Personality and Self-
concept
• Personality: - Each person has personality
characteristics that influence his or her buying
behavior. Personality means a set of distinguishing
human psychological traits that lead to to relatively
consistent and enduring responses environmental
stimuli (including buying behavior).
• Self Concept. It is how we view our selves.
Consumers often choose and use brands that
relate with their actual self-concept , although the
match may instead be based on the consumer's
ideal self-concept (how we would like to view
ourselves) or even on others' self-concept(how we
think others see us)

Lifestyle and values
• A lifestyle is a person's pattern of living in the world
as expressed in activities, interests and opinions. It
portrays the person interacting with his or her
environment.
• Values are the belief systems that underlie attitudes
and behaviors. Values go much deeper than
behavior or attitude and determine people's
choices and desires over the long term.

Motivation
Consumer
Psychology
Perception
Learning
Memeory

Motivation
Maslow's Theory.
Abraham Maslow explained that human needs are
arranged in a hierarchy from most to least pressing
-physiological needs, safety needs, social needs,
esteem needs, and self-actualization.
People will try to satisfy their most important need first
and then try to satisfy the next most important.

Perception
Perception is the process by which we select, organize,
and interpret information inputs to create a meaningful
picture of the world. It is the way to look at things , a way
of regarding, understanding, or interpreting something
in your own personal manner. People emerge with
different perceptions of the same object because of
three perceptual processes:
. selective attention
. selective distortion
. selective retention

• Selective Attention Attention is the allocation of
processing capacity to some stimulus. Voluntary
attention is something purposeful; involuntary
attention is grabbed by someone of something.
• Selective Distortion is the tendency to interpret
information in a way that fits our preconceptions.
Consumers will often distort information according
to prior brand and produc beliefs and expectations.
• Selective Retention causes us to remember good
points about a product we like and forget good
points about competing products.

Memory
Memory may be short term or long term. Short-term
memory (STM) is a temporary and limited repository of
information and Long-term memory (LTM) is a more
permanent, essentially unlimited repository. All the
information and experiences we encounter as we go
through life can end up in our Long-term memory

Problem
Recognition
Information
Search
Evaluation Of
alternative
Purchase
Decision
Post Purchase
Behaviour

EVALUATION OF ALTERNATIVES
After the buyer has assembled information about the
different kinds of alternatives that might satisfy his
needs, an evaluation of these alternatives takes place.
So far, the consumer has arrived at a choice of brands.
For this stage, the buyer again uses information in order
to evaluate alternative brands.
PURCHASE DECISION
The purchase decision is often considered the only
step in the buyer decision process. But as said before,
it is only one element of a long chain of stages. After
having ranked and evaluated alternative brands, the
buyer can now make the actual decision.
NEED RECOGNITION
The buyer decision process starts with the
recognition of a need. In other words, the buyer
recognises a problem or a need. The need can be
triggered by internal stimuli as well as external
stimuli.
INFORMATION SEARCH
When a need is recognized, an interested consumer
may search for more information. For instance, once
you have recognised the need for transportation, you
might research the different means of transportation
available.
POST-PURCHASE BEHAVIOUR
The consumer will either be satisfied or dissatisfied.
That will lead him to engage in a certain post-
purchase behaviour, which are, in turn, of great
interest to the marketer. Of course, there is a strong
link to Customer Lifetime Value. We can define post-
purchase behaviour as the process step at which
consumers take further action after the purchase

ANALYZING
BUSINESS
MARKET