The document discusses factors that influence consumer behavior such as cultural, social, and personal characteristics. It outlines cultural factors like subcultures and American cultural trends. Social factors include reference groups, family roles, and social classes. Personal factors comprise age, occupation, personality, and values. The document also examines psychological processes like motivation, perception, learning, emotions, and memory that shape consumer responses. It presents models of consumer behavior and the typical consumer buying process.

1. IPE 4101:Industrial and Business Management
Lecture Series on Marketing Management

2. Analyzing
Consumer Markets

3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-3
Chapter Questions
 How do consumer characteristics influence
buying behavior?
 What major psychological processes influence
consumer responses to the marketing
program?
 How do consumers make purchasing
decisions?
 In what ways do consumers stray from a
deliberate rational decision process?

4. Consumer Behavior
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What Influences
Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors

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What is Culture?
Culture is the fundamental determinant of a
person’s wants and behaviors acquired
through socialization processes with family
and other key institutions.

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Subcultures
 Nationalities
 Religions
 Racial groups
 Geographic regions

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Fast Facts About
American Culture
 The average American:
 chews 300 sticks of gum a year
 goes to the movies 9 times a year
 takes 4 trips per year
 attends a sporting event 7 times each
year

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Social Classes
Upper uppers
Lower uppers
Upper middles
Middle
Working
Upper lowers
Lower lowers

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Social Factors
Reference groups
Family
Social roles
Statuses

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Reference Groups
 Membership groups
 Primary groups
 Secondary groups
 Aspirational groups
 Disassociative groups

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Family Distinctions
Affecting Buying Decisions

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Personal Factors
 Age
 Life cycle stage
 Occupation
 Wealth
 Personality
 Values
 Lifestyle
 Self-concept

14. Age and Stage of Lifecycle
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15. Occupation and Economic
Circumstances
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16. Personality
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Brand Personality
 Sincerity
 Excitement
 Competence
 Sophistication
 Ruggedness

18. Figure 6.1 Model of
Consumer Behavior
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Motivation
Freud’s
Theory
Behavior
is guided by
subconscious
motivations
Maslow’s
Hierarchy
of Needs
Behavior
is driven by
lowest,
unmet need
Herzberg’s
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors

20. Maslow’s Hierarchy
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Perception
 Selective attention:- It means the marketers must work
hard to attract consumers notice. Here, some findings:
 People are more likely to notice stimuli that relate to a current need.
 People are more likely to notice stimuli they anticipate.
 People are more likely to notice stimuli with large deviations .
 Selective retention:
 Consumers will often distort information to be consistent with prior brand and
product beliefs.
We remember good points about a product we like
And forget bad points
Advantage of strong brands

22. Perception
 Selective distortion:
 -It is a Tendency to interpret information in a way that will fit our
preconceptions
 Comsumer will often distort information to be consistant with prior
brand, product believe and expectations.
 Subliminal perception:
 Its mechanisms requires consumers active engagements and
thought. It has long long fascinated armchair marketers, Hidden
message conveyed through the advertisement but Consumers
are not consciously aware of them,yet the affect behavior. Here
Mental Processes include many subtle subconscious effects.
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23. Learning
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Learning: It induces changes in our permanent behavior
arising from the experience.
Drive:A strong internal stimuli's impelling actions.
Cue: are stimuli's that determines when, where and how a
person responds.
Generalization: Example of HP laptops Promotes HP
Pointers.
Discrimination: A countertendency of Generalization.

24. Emotions
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Emotions: Consumer response is not all cognitive and rational; much
may be emotional and invoke different kinds of feelings. A brand or
product may make a consumer feel proud, excited or confident. An ad
may create feelings of amusement, disgust or wonder.
Amusement
Disgust
Wonder

25. Memory
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Memory
ShortTerm Memory(STM)
LongTerm Memory(LTM)
Memory Encoding
Memory Retrieval
Interference Effect
Time between exposure and encoding
Proper cues and memory triggers

26. Figure 6.3 State Farm Mental Map
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Figure 6.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior

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Sources of Information
Commercial
Personal
Public Experiential

29. Figure 6.5 Successive Sets in
Decision Making
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30. Table 6.4 A Consumer’s Brand
Beliefs about Laptop Computers
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31. Figure 6.6 Steps Between
Alternative Evaluation
and Purchase
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