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COM

Analyzing
Consumer
Markets Presented by:
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JEFFY M. SUMILHIG, BSTM-Mktg, MBA

Instructor, Bachelor of Science in Information Systems
CCICT – Cebu Technological University
 Sequence of the Lecture/Discussion

01 03
What Influences The Power of
Consumer Behavior Sensory Marketing
(Cultural, Social,
Personal)

02 04
Key Psychological The Buying
Processes Decision Process
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 What is Analyzing Consumer Market?
 is identifying a business's target customers and
understanding their needs to help professionals market
the right products to them. It allows professionals to
get to know their current consumers and potential
leads.
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 01
What Influences Consumer Behavior?
Definition: Consumer Behavior is the study of how an
individual decides to purchase a particular product
over the other and what are the underlying factors that
mold such behavior.
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 Factors that Influence Consumer Behavior

Cultural Factor

Social Factor

Personal Factor
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 Cultural Factor

Cultural Factors are a set of values and

ideologies of a particular community or group of
individuals.
ideas, customs and social behavior of a
Culture particular people or society

cultural group w/n a larger community,

Subculture often having beliefs or interest at
variance w/ those of larger culture

group of people w/n a society who

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Social Class possess the same socioeconomic

status
 Social Factor

Social Factors are the factors that are prevalent

in the society where a consumer lives in. The society
is composed of several individuals that have different
preferences and behaviors.
people whom you live w/ and who
Family directly impact your consumer
behavior

group of people w/ whom a person

Reference Groups associates himself
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An individual’s position and role in a

Roles and Status society that influences his buying
behavior
 Personal Factors

Personal Factors are the individual factors to

the consumers that strongly influences their buying
behaviors.
major factor that influence buying
Age behavior

decides the purchasing power of an

Income individual

largely steers our purchasing

Occupation decision-making
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Attitude and a way in which

Lifestyle individuals stay in the society
 02
Key Psychological Processes

Motivation and Perception

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 ANALYZING CONSUMER MARKETS

KEY PSYCHOLOGICAL PROCESSES

Marketing and environmental stimuli enter the consumer’s

consciousness. A set of psychological processes combined
with certain consumer characteristics will result in decision
processes and purchase decisions.

The marketer’s task is to understand what happens in the

consumer’s consciousness between the arrival of the
outside marketing stimuli and the ultimate purchase
decisions.
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 ANALYZING CONSUMER MARKETS

KEY PSYCHOLOGICAL PROCESSES

MOTIVATION
&

PERCEPTION
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 KEY PSYCHOLOGICAL PROCESSES

MOTIVATION

We all have many needs at any given time.

* Biogenic; they arise from physiological states of tension such as
hunger, thirst, or discomfort.
* Psychogenic; they arise from psychological states of tension
such as the need for recognition, esteem, or belonging.

A need becomes a motive when it is aroused to

a sufficient level of intensity to drive us to act.
Motivation has both directions, we select one
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goal over another, and intensity, we pursue the goal

with consciousness (more or less vigor).
 KEY PSYCHOLOGICAL PROCESSES

MOTIVATION
Three (3) of the best-known theories of human
motivation carry quite different implications for
consumer analysis and marketing strategy.

Sigmund Frederick
Freud Herzberg
Abraham Theory
Theory
Maslow
Theory
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 KEY PSYCHOLOGICAL PROCESSES - MOTIVATION

MARKETING-THEORIES OF MOTIVATION

Sigmund Freud
Psychological forces shaping people’s behavior are largely
unconscious and that a person cannot fully understand his or her
own motivations.

Abraham Maslow
Human needs are arranged in a hierarchy from most to
least pressing.

Frederick Herzberg
Two-factor theory that distinguishes dissatisfiers from
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satisfiers.
 KEY PSYCHOLOGICAL PROCESSES

PERCEPTION
In marketing, perceptions are more important
than reality because they affect consumers’ actual
behavior.
* Perception is the process by which we select, organize, and interpret
information inputs to create a meaningful picture of the word.

Perception depends not only on physical

stimuli but also on the stimuli’s relationship to the
surrounding environment and on conditions within
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each of us.
 KEY PSYCHOLOGICAL PROCESSES - PERCEPTION

People emerge with different perceptions of the same

object because of three perceptual processes.

Selective Selective
Attention Distortion

Selective
Retention
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 KEY PSYCHOLOGICAL PROCESSES - PERCEPTION

SELECTIVE ATTENTION
Attention is the allocation of processing
capacity to some stimulus.
Selective attention refers to how we focus our
attention on some things and ignore others.
It’s estimated that the average person may be
exposed to more than 1,500 ads or brand
communications a day.
Because we cannot possibly attend to all
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these, we screen most stimuli out, a process called

selective attention.
 KEY PSYCHOLOGICAL PROCESSES - PERCEPTION

Examples of stimuli people will notice.

People are
People are more likely to
People are notice stimuli
more likely more likely whose
to notice to notice deviations are
stimuli that stimuli they large in
relate to a anticipate. relationship to
current need. the normal size
of the stimuli.

Selective attention means that marketers must work

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hard to attract consumers.

 KEY PSYCHOLOGICAL PROCESSES - PERCEPTION

SELECTIVE DISTORTION
Selective distortion is the tendency for people
to interpret information in a way that supports
previously established beliefs or perceptions.
When consumers report different opinions of
branded and unbranded versions of identical
products, it must be the case that their brand and
product beliefs, created by whatever means (past
experiences, marketing activity for the brand, or the
like), have somehow changed their product
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perceptions.
 KEY PSYCHOLOGICAL PROCESSES - PERCEPTION

Examples of Selective Distortion.

In blind taste tests, one group of consumers samples a

product without knowing which brand it is while
another group knows.
Invariably, the groups have different opinions, despite
consuming exactly the same product.

Coffee may seem to taste better, a car may seem to

drive more smoothly, and the wait in a bank line may
seem shorter, depending on the brand.
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 KEY PSYCHOLOGICAL PROCESSES - PERCEPTION

Examples of Selective Distortion.

A college student buys a Dell laptop. After the purchase, if
the student gets new information about an alternative brand,
Apple, he may distort the information to make it more
consistent with the prior view that the Dell is just as good as
the Apple, if not better.
Business travelers who are Platinum frequent flyers on
Airlines may distort or discount information about the
quality of United Airlines business class service; may think
“yes the service is OK but the seats are uncomfortable and
the planes are always late.
Selective distortion can work to the advantage
of marketers with strong brands when consumers
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distort neutral or ambiguous brand information to

make it more positive.
 KEY PSYCHOLOGICAL PROCESSES - PERCEPTION

SELECTIVE RETENTION

Selective retention works to the advantage of strong

brands. It also explains why marketers need to use
repetition, to make sure their message is not overlooked.
Most of us don’t remember much of the information
to which we’re exposed, but we do retain information that
supports our attitudes and beliefs.
Because of selective retention, we’re likely to
remember good points about a product we like and forget
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good points about competing products.

 KEY PSYCHOLOGICAL PROCESSES - PERCEPTION
Examples of Selective Retention.

Consumer might remember only the positive health benefits of a

product they enjoy.

People who view a company favorably are likely to focus on the

positive its times of trouble.

A conspiracy theorist paying less attention to facts which do not

aid their standpoint.
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People tending
A conspiracy to paying
theorist omit problems and disputes
less attention to factsin the past
which do not
relationships.
aid their standpoint.
 ANALYZING CONSUMER MARKETS

The key psychological processes: MOTIVATION and

PERCEPTION helps marketers understand how
consumers respond to different types of marketing
messages.
Consumer psychology can help companies create
more effective marketing campaigns, better product
development and design, and more successful
customer retention.
In marketing, consumer psychology research helps
firms improve their products, services and marketing
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strategies in order to bolster sales.

 03
The Power of Sensory Marketing
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 Learning Objectives

The main strategic objective of

sensory marketing is to communicate
a brand image.​
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 What is Sensory Marketing?

Sensory Marketing

is defined as a strategy used to engage the

senses to sell products and by engaging multiple
senses, you can establish a positive emotional
connection with a brand, so there's a variety of
industries that use sensory marketing.​
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 What is Sensory Marketing?

Sensory Marketing

The area of psychological marketing known as

“sensory marketing” is an advertising tactic
intended to appeal to one or more of the five
human senses of sight, hearing, smell, taste, and
touch to create an emotional association with a
specific product or brand. A successful
sensory branding strategy taps into certain beliefs,
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feelings, thoughts, and memories to create a

brand image in a customer’s mind.​
 Five senses

Print ads, display ads, video, Out of

Sight home ,email

Tactile mailers, virtual reality with

Touch haptic feedback

Radio ads, sonic branding (jingles,

Hearing background music,etc)

OOH,”scratch n sniff” pieces

Smell
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Samples, edible print ads

Taste
 How does a brand deliver emotions?

Our five senses (sight,sound,touch,smell and

taste) help to build emotion and recognition, and
its crucially important to use them all to build
brand.
A multisensory brand experience generates
certain beliefs, feelings, thoughts, and opinions
to create a brand image in the consumers, mind.
It’s the easiest way to touch a soul of a
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customer.
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 What does touch mean in senses?

the ability to perceive an object or

other stimulus that comes into
contact with the surface of the skin
(e.g., by pressure, stroking). Also
called tactile sense. See haptic
perception; tactile perception
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 Why is touch important in marketing?

By reaching out on a personal level, you

demonstrate that you genuinely want to work
with the prospect or customer and you're
motivated to deliver the best customer
experience. A personal touch helps your
customers feel valued and can be a critical
marketing strategy.
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 How do marketers use touch?

The first rule of retail sales is, "Get the

customer to hold the product." As an
important aspect of sensory marketing,
touch enhances customers' interaction with a
brand's products.
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 How is taste used in marketing?
Taste is the most over looked of all the senses
in terms of sensory marketing, which gives your
brand a huge opportunity to stand out from
competitors. Companies in all industries- not
just food & beverage- can use taste marketing
to sell their products or services via pop-up
shops, cafés, mobile tours, and more
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 How is smell used in marketing?
Scent marketing is a type of sensory marketing
targeting a shopper's sense of smell. It
involves diffusing strategically chosen scents at
different locations in your store. The goal is to
create a memorable, pleasant shopping
experience and increase sales
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 How is hearing used in marketing?

Sound can make us feel excited or hopeful

about engaging with a brand. Sound
marketing, also referred to as audio branding
or sonic branding, has the power to set the
mood for consumers.
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 04
The Buying Decision Process
 MEANING OF DECISION-MAKING
PROCESS
 STAGES OF CONSUMER BUYING
DECISION PROCESS
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 What is Buying Decision-Making Process?

Buying Decision-Making Process

A Buying Decision-Making Process is the

process a customer goes through when buying a
product. It can be seen as a particular form of a
cost-benefit analysis.
A buying process is the series of steps that a
consumer will take to make a purchasing
decision.
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 The five stages
framework
remains a good
way to evaluate the
costumer’s buying
process
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 Need Recognition

• A purchase cannot take place without the

recognition of the need. The need may have
been triggered by internal stimuli such as
hunger or thirst or external stimuli such as
advertising.

• According to Malow’s hierarchy, only when a

person has fulfilled the needs at a certain
stage, can he or she move to the next stage.
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 Information Search
 This is the buyer’s effort at searching the
internal and external business environments to
identify and observe sources of information
related to the focal buying decision.
• Internal search refers to recalling past
experiences with the product.
• External search is conducted when customer
tries to seek information from personal
sources ( family, friends), commercial
sources ( advertisements, sales people) or
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public sources ( newspapers, television).

 Evaluation of Alternatives
 At this stage, consumers evaluate different
products/brands on the basis of varying
products attributes, and whether these can
deliver the benefits that the customers are
seeking.
• A factor that heavily influences this stage is
the customer’s attitude.

• Involvement is another factor that influences

the valuation process.
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 Purchase Decision
 In this stage, the Purchase takes place. The
final purchase decision can be disrupted by two
factors:

• Negative feedback from other customers and

the level of motivation to comply or accept
the feedback.
• This decision may be disrupted due to
anticipated situations.
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 Post-Purchased Behavior
 At this stage, customers will compare products
with their previous expectations and will be
either satisfied or dissatisfied.

 This can greatly effective the decision process

for a similar purchases from the same company
in the future, having a knock-on effect at the
information search stage and evaluation of
alternative stage.
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 Thank you!
Do you have any questions?
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