1.
TOP 10 Learning Questions for Chapter 6 : Analyzing Consumer Markets Rafael P. Banaag III December 17, 2010 www.rafaelbanaag.blogspot.com

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1. _____ are whom the person interacts continuously and informally, such as family, friends, neighbors & coworkers. <ul><li>Membership Groups </li></ul><ul><li>Primary Groups </li></ul><ul><li>Secondary Groups </li></ul><ul><li>Aspirational Groups </li></ul><ul><li>Dissociative Groups </li></ul>www.rafaelbanaag.blogspot.com

3.
Reference Groups www.rafaelbanaag.blogspot.com

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Reference Groups <ul><li>Membership Groups – have a direct influence </li></ul><ul><li>Primary Groups – whom the person interacts continuously and informally, such as family, friends, neighbors and coworkers </li></ul><ul><li>Secondary Groups – tend to be formal and require less continuous interaction, such as religious, professional groups </li></ul><ul><li>Aspirational Groups – those a person hopes to join </li></ul><ul><li>Dissociative Groups – are those whose values and behavior and individual rejects </li></ul>www.rafaelbanaag.blogspot.com

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1. _____ are whom the person interacts continuously and informally, such as family, friends, neighbors & coworkers. <ul><li>Membership Groups </li></ul><ul><li>Primary Groups </li></ul><ul><li>Secondary Groups </li></ul><ul><li>Aspirational Groups </li></ul><ul><li>Dissociative Groups </li></ul>www.rafaelbanaag.blogspot.com

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2. The following statements are false except: <ul><li>Within a class, people tend to behave differently. </li></ul><ul><li>Social class conveys perceptions of equality. </li></ul><ul><li>Class may be indicated by a cluster of variables (occupation, income, wealth) </li></ul><ul><li>Class designation doesn’t change over time </li></ul>www.rafaelbanaag.blogspot.com

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Social Classes www.rafaelbanaag.blogspot.com

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<ul><li>Within a class, people tend to behave alike. Tend to be more alike in dress, speech patterns and recreational preferences. </li></ul><ul><li>Social class conveys perceptions of inferior or superior position </li></ul><ul><li>Class may be indicated by a cluster of variables (occupation, income, wealth) </li></ul><ul><li>Class designation is mobile over time. Individuals can move up and down the social class ladder during their lifetime. </li></ul>Characteristics of Social Classes www.rafaelbanaag.blogspot.com

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2. The following statements are false except: <ul><li>Within a class, people tend to behave differently. </li></ul><ul><li>Social class conveys perceptions of equality. </li></ul><ul><li>Class may be indicated by a cluster of variables (occupation, income, wealth) </li></ul><ul><li>Class designation doesn’t change over time </li></ul>www.rafaelbanaag.blogspot.com

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3. A _____ consists of the activities a person is expected to perform. <ul><li>Reference Group </li></ul><ul><li>Family </li></ul><ul><li>Social Role </li></ul><ul><li>Status </li></ul><ul><li>Duty </li></ul>www.rafaelbanaag.blogspot.com

11.
Reference Groups www.rafaelbanaag.blogspot.com

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Reference Groups <ul><li>Reference Group – are groups that have a direct (face-to-face) or indirect influence on their attitudes or behaviors </li></ul><ul><li>Family – most important consumer buying organization in the society </li></ul><ul><ul><li>FAMILY OF ORIENTATION – parents and siblings </li></ul></ul><ul><ul><li>FAMILY OF PROCREATION – spouse and children </li></ul></ul><ul><li>Social Role – consists of activities a person is expected to perform </li></ul><ul><li>Status – a position or rank related to others </li></ul>www.rafaelbanaag.blogspot.com

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3. A _____ consists of the activities a person is expected to perform. <ul><li>Reference Group </li></ul><ul><li>Family </li></ul><ul><li>Social Role </li></ul><ul><li>Status </li></ul><ul><li>Duty </li></ul>www.rafaelbanaag.blogspot.com

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4. The following statements are true except: <ul><li>Our taste in food, clothes, furniture and recreation is often related to our age. </li></ul><ul><li>Product choice is greatly affected by economic circumstances. </li></ul><ul><li>People from the same subculture, social class and occupation may lead quite same lifestyles. </li></ul><ul><li>Lifestyle are shaped partly by whether consumers are money constrained or time constrained. </li></ul><ul><li>Time is more important than money. </li></ul>www.rafaelbanaag.blogspot.com

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Personal Factors www.rafaelbanaag.blogspot.com

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Personal Factors <ul><li>Personality and Self-concept – </li></ul><ul><ul><li>Personality means a set distinguishing characteristics that lead to consistent responses to environment stimuli. </li></ul></ul><ul><ul><li>Self-concept means how we view ourselves. </li></ul></ul><ul><li>Lifestyle and Values – </li></ul><ul><ul><li>Lifestyle is a person’s pattern in living as expressed in activities, interests and opinions. People from the same subculture, social class and occupation may lead quite different lifestyles. </li></ul></ul><ul><ul><li>Values is the belief systems that underlie attitudes and behaviors. </li></ul></ul>www.rafaelbanaag.blogspot.com

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Personal Factors <ul><li>Age & Life Cycle Stage – Certain “passages” or “transformation” that people go through life. Yet the behavior that people exhibit is not fixed but changes with the times. </li></ul><ul><li>Occupation & Economic Circumstances – Marketers try to identify the occupational groups that have above-average interest in their products and even tailor products for certain occupational groups. </li></ul><ul><li>e.g. </li></ul><ul><li>A working class will buy work clothes, work shoes and lunch boxes while </li></ul><ul><li>A company president will buy suits, air travel and club memberships. </li></ul>www.rafaelbanaag.blogspot.com

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4. The following statements are true except: <ul><li>Our taste in food, clothes, furniture and recreation is often related to our age. </li></ul><ul><li>Product choice is greatly affected by economic circumstances. </li></ul><ul><li>People from the same subculture, social class and occupation may lead quite same lifestyles. </li></ul><ul><li>Lifestyle are shaped partly by whether consumers are money constrained or time constrained. </li></ul><ul><li>Time is more important than money. </li></ul>www.rafaelbanaag.blogspot.com

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5. Levi’s youthful, rebellious, authentic image can be attributed to what brand personality? <ul><li>Enthusiasm </li></ul><ul><li>Excitement </li></ul><ul><li>Competence </li></ul><ul><li>Thrill </li></ul><ul><li>Ruggedness </li></ul>www.rafaelbanaag.blogspot.com

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Brand Personality www.rafaelbanaag.blogspot.com

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<ul><li>BRAND PERSONALITY : specific mix of human traits that we can attribute to a particular brand </li></ul><ul><li>Sincerity – down to earth, honest, wholesome, cheerful </li></ul><ul><li>Excitement – daring, spirited, imaginative, up-to-date </li></ul><ul><li>Competence – reliable, intelligent, successful </li></ul><ul><li>Sophistication – upper-class, charming </li></ul><ul><li>Ruggedness – outdoorsy and tough </li></ul>Brand Personality www.rafaelbanaag.blogspot.com

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5. Levi’s youthful, rebellious, authentic image can be attributed to what brand personality? <ul><li>Enthusiasm </li></ul><ul><li>Excitement </li></ul><ul><li>Competence </li></ul><ul><li>Thrill </li></ul><ul><li>Ruggedness </li></ul>www.rafaelbanaag.blogspot.com

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<ul><li>In marketing , reality is more important than perception. </li></ul><ul><li>A need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act. </li></ul><ul><li>It is easier for consumers to create association to new information when relevant knowledge already exist in memory. </li></ul><ul><li>Consumers have a general tendency to blame products when it failed than themselves not following instructive ads. </li></ul><ul><li>You are more likely to notice computers than radios in a computer store because yo don’t expect the store to carry radios </li></ul>6. The following statements are true except: www.rafaelbanaag.blogspot.com

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Key Psychological Process www.rafaelbanaag.blogspot.com

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<ul><li>Motivation – need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act. </li></ul><ul><li>Perception – the process by which we select, organize & interpret information inputs to create a meaningful picture of the world. In marketing, perception is more important than reality. </li></ul><ul><li>Learning – induces changes in our behavior arising from our experience </li></ul><ul><li>Memory – </li></ul><ul><ul><li>Short-term memory (STM) – temporary limited repository of information </li></ul></ul><ul><ul><li>Long-term memory (LTM) – more permanent, essentially unlimited repository. </li></ul></ul>www.rafaelbanaag.blogspot.com Key Psychological Process

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<ul><li>In marketing , reality is more important than perception. </li></ul><ul><li>A need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act. </li></ul><ul><li>It is easier for consumers to create association to new information when relevant knowledge already exist in memory. </li></ul><ul><li>Consumers have a general tendency to blame products when it failed than themselves not following instructive ads. </li></ul><ul><li>You are more likely to notice computers than radios in a computer store because yo don’t expect the store to carry radios </li></ul>6. The following statements are true except: www.rafaelbanaag.blogspot.com

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7. You are in interested at buying a new phone for Christmas and are reading a newspaper. You pay attention to an ad about mobile phones while filtering out ads that have no meaning with you. What kind of perception is this? <ul><li>Selective Attention </li></ul><ul><li>Selective Interest </li></ul><ul><li>Selective Distortion </li></ul><ul><li>Selective Retention </li></ul><ul><li>Subliminal Perception </li></ul>www.rafaelbanaag.blogspot.com

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Perception www.rafaelbanaag.blogspot.com

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<ul><li>Selective Attention – the tendency of a consumer to pay attention only to messages that address a need or interest screening out other irrelevant information. </li></ul><ul><li>Selective Distortion – is the tendency to interpret information in a way that fits our preconceptions. </li></ul><ul><li>Selective Retention – consumers likely to remember good points about a product they like and forget good points about competing products. </li></ul><ul><li>Subliminal Perception – suggests that peoples' thoughts, feelings and actions are influenced by stimuli that are perceived without any awareness of perceiving. </li></ul>www.rafaelbanaag.blogspot.com Perception

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7. You are in interested at buying a new phone for Christmas and are reading a newspaper. You pay attention to an ad about mobile phones while filtering out ads that have no meaning with you. What kind of perception is this? <ul><li>Selective Attention </li></ul><ul><li>Selective Interest </li></ul><ul><li>Selective Distortion </li></ul><ul><li>Selective Retention </li></ul><ul><li>Subliminal Perception </li></ul>www.rafaelbanaag.blogspot.com

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8. The following statements are false except: <ul><li>The consumer always pass through all five stages when buying a product. </li></ul><ul><li>The most effective information comes personal sources. </li></ul><ul><li>Attitude economizes on energy and thought therefore it is easy to change. A company is well advised to change attitude rather than fit their product to an existing attitude. </li></ul><ul><li>Consumer will pay most attention to convenience of getting the product than sought after benefits. </li></ul><ul><li>The marketer’s job ends with the purchase of his product. </li></ul>www.rafaelbanaag.blogspot.com

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Consumer Buying Process www.rafaelbanaag.blogspot.com

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<ul><li>Problem Recognition – buying starts when the buyer recognizes a problem or need triggered by stimuli. </li></ul><ul><li>Information Search – buyer becomes more receptive to information about a product: looking for reading materials, phoning friends, going online etc. </li></ul><ul><li>Evaluation of Alternatives – the consumer arrives at attitudes toward various brands through an evaluation procedure. </li></ul><ul><li>Purchase Decision – the consumer forms the intention to buy the most preferred brand. </li></ul><ul><li>Post purchase Behavior – the consumer may experience dissonance from disquieting features or has heard favorable things about other brands that may raise questions to his decision. </li></ul>Consumer Buying Process www.rafaelbanaag.blogspot.com

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<ul><li>Commercial sources normally perform an information function, whereas personal sources perform legitimizing or evaluation of function. Therefore, the most effective information comes personal sources. </li></ul>Consumer Buying Process www.rafaelbanaag.blogspot.com

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8. The following statements are false except: <ul><li>The consumer always pass through all five stages when buying a product. </li></ul><ul><li>The most effective information comes personal sources. </li></ul><ul><li>Attitude economizes on energy and thought therefore it is easy to change. A company is well advised to change attitude rather than fit their product to an existing attitude. </li></ul><ul><li>Consumer will pay most attention to convenience of getting the product than sought after benefits. </li></ul><ul><li>The marketer’s job ends with the purchase of his product. </li></ul>www.rafaelbanaag.blogspot.com

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9. Linda bought a camera but found out later that a new camera came out with more features for the same price. What kind risk is this? <ul><li>Functional Risk </li></ul><ul><li>Physical Risk </li></ul><ul><li>Financial Risk </li></ul><ul><li>Social Risk </li></ul><ul><li>Time Risk </li></ul>www.rafaelbanaag.blogspot.com

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Perceived Risks www.rafaelbanaag.blogspot.com

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<ul><li>Functional Risk – The product does not perform up to expectations. </li></ul><ul><li>Physical Risk – The product poses a threat to the physical well-being or health of the user. </li></ul><ul><li>Financial Risk – The product is not worth the price paid. </li></ul><ul><li>Social Risk – The product results in embarrassment from others. </li></ul><ul><li>Psychological Risk – The product affects the mental well-being of the user. </li></ul><ul><li>Time Risk – The failure of the product results in an opportunity cost of finding another satisfactory product. </li></ul>Perceived Risks www.rafaelbanaag.blogspot.com

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9. Linda bought a camera but found out later that a new camera came out with more features for the same price. What kind risk is this? <ul><li>Functional Risk </li></ul><ul><li>Physical Risk </li></ul><ul><li>Financial Risk </li></ul><ul><li>Social Risk </li></ul><ul><li>Time Risk </li></ul>www.rafaelbanaag.blogspot.com

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10. Bernie bought laptop Y because he gave more importance on memory even though all other 3 attributes of brand X is higher. What non compensatory model did he use? <ul><li>Conjunctive Heuristic </li></ul><ul><li>Lexicographic Heuristic </li></ul><ul><li>Elimination-by-Aspects Heuristics </li></ul>www.rafaelbanaag.blogspot.com LAPTOP MEMORY GRAPHICS SIZE PRICE BRAND X 7 7 7 7 BRAND Y 10 5 4 4

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Non-Compensatory Models of Choice www.rafaelbanaag.blogspot.com

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Non-Compensatory Models of Choice <ul><li>Heuristics are rule of thumb or shortcuts in the decision process </li></ul><ul><li>Conjunctive – The consumer sets a minimum acceptable cutoff level for each attribute and chooses the 1 st alternative that meets the minimum standard. </li></ul><ul><li>Lexicographic – The consumer chooses the best brand on the basis of its perceived most important attribute. </li></ul><ul><li>Elimination-by-aspects – The consumer compares brands on an attribute selected probabilistically </li></ul>www.rafaelbanaag.blogspot.com

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10. Bernie bought laptop Y because he gave more importance on memory even though all other 3 attributes of brand X is higher. What non compensatory model did he use? <ul><li>Conjunctive Heuristic </li></ul><ul><li>Lexicographic Heuristic </li></ul><ul><li>Elimination-by-Aspects Heuristics </li></ul>www.rafaelbanaag.blogspot.com LAPTOP MEMORY GRAPHICS SIZE PRICE BRAND X 7 7 7 7 BRAND Y 10 5 4 4

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TOP 10 Learning Questions for Chapter 6 : Analyzing Consumer Markets Rafael P. Banaag III December 17, 2010 www.rafaelbanaag.blogspot.com