Chapter 6 Analyzing Consumer Markets

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Mary Anne Cuartero

6 concepts that would aid a marketer in understanding consumer behavior

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ANALYZING
CONSUMER
MARKETS
Mary Anne Cuartero
September 18, 2013

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Key Questions
1. What Influences Consumer
Behavior?
2. What are the Three Theories of
Human Motivation?
3. What are the Five Stages of
Consumer Buying Process?
4. What is Behavioral Decision
Theory?

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What is Consumer
Behavior?
Study of how individuals, groups,
and organizations select,
buy, use, and dispose of goods
services, ideas or
experiences to satisfy their needs and wants

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Concept 1: What Influnces
Consumer Behavior?
Cultural Factors Social Factors
Personal Factors

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Cultural Factors
Subcultures
Nationalities
Racial Groups
Religions
Geographical Locations

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Social Factors
A. Reference Groups
Primary Groups - family, friends,
neighbors, co-workers
Secondary Groups – religious,
professional, trade-union groups

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Social Factors
Aspirational Groups – those that a
person wishes to join
Dissociative Groups – those whose
values or behavior an individual
rejects

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Social Factors
B. Family
2 Families in a Buyer’s Life:
1.Family of Orientation
2.Family of Procreation

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Social Factors
C. Roles and Status

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Personal Factors
Age and Stage in the Lifecycle

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Personal Factors
Occupation
Economic Circumstances
Personality and Self Concept

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Personal Factors
Lifestyle
Time Money
Constrained Constrained
Values

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Concept 2: Freud’s
Theory of Human
Motivation
Freud’s
Theory
Behavior
is guided by
subconscious
motivations

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Concept 3: Maslow’s
Theory of Human
Motivation
Maslow’s
Hierarchy
of Needs
Behavior
is driven by
lowest,
unmet need

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Concept 4: Herzberg’s
Theory of Human
Motivation
Herzberg’s
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors

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Concept 5: Buying
Decision Process
1. Problem Recognition
Internal External
Stimuli Stimuli

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Buying Decision Process
2. Information Search

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Buying Decision Process
3. Evaluation of Alternatives
Beliefs and Attitudes
Expectancy Value Model

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Buying Decision Process
4. Purchase Decision
Non-compensatory Models of
Consumer Choice – decision short-cuts
Cojunctive Heuristic

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Buying Decision Process
Lexicographic Heuristic
Elimination by Aspect
Heuristic

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Buying Decision Process
Intervening Factors
Influence of Others
Unanticipated Situational Factors
Mitsubishi to
recall Montero
units due to
weld issues

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Buying Decision Process
5. Post-purchase Behavior

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Concept 6: Behavior
Decision Theory
• Consumers don’t always make
deliberate or rational decisions.
Decision Heuretics
1. Availability Heuristic – decision
based on a past outcome

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Behavior Decision Theory
2. Representativeness Heuristic –
predictions based on how similar the
outcome is to other examples
3.Anchoring and Adjustment Heuristic
– first impressions

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Conclusion
Marketers must have a thorough
understanding of how consumers
think, feel, and act.
A connection must be made between
companies and consumers

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