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    L6a Analyzing Consumer Markets

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    Ashish kumar Thapa
    This document provides an overview of factors that influence consumer behavior and the consumer decision-making process. It discusses key psychological processes like motivation, perception, learning, emotions, and memory. It also outlines a 5-stage model of the consumer buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Finally, it discusses behavioral decision theory and concepts from behavioral economics.

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    L6a Analyzing Consumer Markets

    Uploaded by

    Ashish kumar Thapa
    55 views41 pages
    This document provides an overview of factors that influence consumer behavior and the consumer decision-making process. It discusses key psychological processes like motivation, perception, learning, emotions, and memory. It also outlines a 5-stage model of the consumer buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Finally, it discusses behavioral decision theory and concepts from behavioral economics.

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    This document provides an overview of factors that influence consumer behavior and the consumer decision-making process. It discusses key psychological processes like motivation, perception, learning, emotions, and memory. It also outlines a 5-stage model of the consumer buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Finally, it discusses behavioral decision theory and concepts from behavioral economics.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    55 views41 pages

    L6a Analyzing Consumer Markets

    Uploaded by

    Ashish kumar Thapa
    This document provides an overview of factors that influence consumer behavior and the consumer decision-making process. It discusses key psychological processes like motivation, perception, learning, emotions, and memory. It also outlines a 5-stage model of the consumer buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Finally, it discusses behavioral decision theory and concepts from behavioral economics.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 41

    Unit-2 Lecture-6

    Analysing Consumer Markets


    A- What Influences Consumer Behavior
    B- Key Psychological Processes
    C-The Buying Decision Process: 5 Stage Model
    D-Behavioral Decision Theory and Behavioral
    Economics
    Learning Outcome
    Students will be able
    • To analyse the factors that affect consumer
    behaviour to create customer value.
    • To apply consumers purchase decisions
    • To classify customer purchasing processes to
    help develop market strategies
    If you are an emotionally stable person, you are likely to
    splurge more during the holiday season than those who
    are nervous with lower stress-threshold (higher
    neuroticism).
    A-What Influences 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
    – Influenced by cultural, social, and personal
    factors
    What Influences Consumer Behavior?

    1- Cultural factors

    – Culture

    – Subcultures

    – Social classes
    What Influences Consumer Behavior?

    2-Social factors

    Reference groups

    Cliques

    Family

    Roles and status


    Reference Groups

    • Membership groups
    – Primary vs. secondary

    • Aspirational groups

    • Dissociative groups

    • Opinion leader
    Family
    • Family of orientation vs. family of procreation
    What Influences Consumer Behavior?
    3-Personal factors
    – Age/stage in life cycle
    – Occupation and
    economic
    circumstances
    – Personality and self-
    concept
    – Lifestyle and values
    Key Psychological Processes
    (Psychological Factors)

    Motivation

    Memory Perception

    Emotions Learning
    Model Of Consumer Behavior
    Key Psychological Processes
    • Motivation
    – A need becomes a motive when it is aroused
    to a sufficient level of intensity to drive us to
    act
    Motivation

    Maslow’s Herzberg’s
    Freud’s Hierarchy Two-Factor
    Theory of Needs Theory

    Behavior Behavior Behavior is


    is guided by is driven by guided by
    subconscious lowest, dissatisfiers
    motivations unmet need and
    satisfiers
    Maslow’s Hierarchy Of Needs
    Key Psychological Processes
    • Perception
    – The process by
    which we select,
    organize, and
    interpret information
    inputs to create a
    meaningful picture
    of the world
    Perception

    Selective attention

    Selective distortion

    Selective retention

    Subliminal perception
    Key Psychological Processes
    • Learning
    – Induces changes in our behavior arising from
    experience
    – Drive and cues
    – Generalization and discrimination
    Key Psychological Processes
    • Emotions

    – Many different
    kinds of emotions
    can be linked to
    brands
    Key Psychological Processes
    • Memory
    – Short-term vs. long-term memory
    – Associative network memory model
    – Brand associations
    – Memory encoding
    – Memory retrieval
    The Buying Decision Process

    • The consumer typically passes


    through five stages
    – Problem recognition
    – Information search
    – Evaluation of alternatives
    – Purchase decision
    – Postpurchase behavior
    The Buying Decision Process
    • Problem recognition
    – The buyer recognizes a problem/need
    triggered by internal/external stimuli
    The Buying Decision Process
    • Information search

    ✓ Personal sources
    ✓ Commercial sources
    ✓ Public sources
    ✓ Experiential sources
    Sets Involved In Decision Making
    The Buying Decision Process
    • Evaluation of alternatives
    – Expectancy-value model
    The Buying Decision Process
    • Purchase decision
    – Compensatory vs. noncompensatory models

    Conjunctive heuristic

    Lexicographic heuristic

    Elimination-by-aspects heuristic
    Intervening factors
    Types of Perceived Risk

    Functional
    Physical risk
    risk

    Time risk Financial risk

    Psychological
    Social risk
    risk
    The Buying Decision Process
    • Postpurchase behavior
    – Postpurchase
    satisfaction

    – Postpurchase actions

    – Postpurchase uses
    and disposal
    Customer Product Use/Disposal
    Moderating Effects on Consumer Decision
    Making
    • Low-involvement Consumer Decision Making
    • Variety-Seeking Buying Behavior
    Behavioral Economics
    • Decision Heuristics
    – Availability heuristic
    – Representativeness heuristic
    – Anchoring and adjustment heuristic
    • Framing
    – Mental accounting
    Mcq’s
    •1) A person's ________ consist(s) of all the
    groups that have a direct (face-to-face) or indirect
    influence on his/her attitudes or behavior.
    •A) subculture
    •B) family
    •C) social class
    •D) reference groups
    Mcq’s
    •2) ________ refers to a set of distinguishing
    human psychological traits that lead to relatively
    consistent and enduring responses to
    environmental stimuli.
    •A) Image
    •B) Personality
    •C) Psychological transformation
    •D) Lifestyle
    Mcq’s
    •3)IKEA has achieved global recognition by
    offering consumers leading-edge Scandinavian
    furniture at affordable prices. IKEA is delivering
    value to consumers who are ________
    constrained.
    •A) money
    •B) time
    •C) brand
    •D) value
    Mcq’s
    •4) At the top of Maslow's hierarchy of needs
    (shown as a pyramid in the text) are ________
    needs.
    •A) esteem
    •B) self-actualization
    •C) social
    •D) safety
    Mcq’s
    •5) The buying process starts when the buyer
    recognizes a(n) ________.
    •A) product
    •B) advertisement for the product
    •C) salesperson from a previous visit
    •D) problem or need
    Mcq’s
    •6) Brands that meet consumers' initial buying
    criteria are called the ________ set.
    •A) total
    •B) awareness
    •C) consideration
    •D) choice
    Mcq’s
    •7) ________ are rules of thumb or mental
    shortcuts in the decision process.
    •A) Attitudes
    •B) Beliefs
    •C) Heuristics
    •D) Discriminations
    Mcq’s
    •8) If a consumer is shopping for a smart phone,
    all of the smart phone options available in the
    market — whether a consumer knows about them
    or not — is called the ________ set.
    •A) awareness
    •B) total
    •C) consideration
    •D) choice

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