Chapter 6: Analyzing Consumer Markets

1. TOP 10 Learning Questions for Chapter 6 Analyzing Consumer Markets Grace Sumera 24 September 2010

2. 1. ____ factors exert the broadest and deepest influence on consumer behavior. Economic Personal Cultural Social Demographic 2

3. Factors Affecting Consumer Behavior 3 Culture Social Personal Psychological Buyer

4. Factors Affecting Consumer Behavior A consumer’s buying behaviour is influenced by cultural, social, and personal factors. Cultural factors exert the broadest and deepest influence. Culture is the fundamental determinant of a person’s wants and behaviour. 4

5. 1. ____ factors exert the broadest and deepest influence on consumer behavior. Economic Personal Cultural Social Demographic 5

6. 2. ___ is a key psychological process that has both direction and intensity. Motivation Perception Learning Memory Sensation 6

7. Key Psychological Processes 7

8. Motivation 8 4 key psychological processes – motivation, perception, learning, & memory – fundamentally influence consumer responses. Motivation has both direction – we select one goal over another – & intensity – the vigor with which we pursue the goal.

9. 2. ___ is a key psychological process that has both direction and intensity. Motivation Perception Learning Memory Sensation 9

10. 3. The following are major information sources to which consumers turn to EXCEPT Experiential Commercial Public External Personal 10

11. Major Information Sources 11

12. Major Information Sources 12

13. 3. The following are major information sources to which consumers turn to EXCEPT Experiential Commercial Public External Personal 13

14. 4. Buyer’s decisions are influenced by personal characteristics EXCEPT Nationality Age & Stage in the Life Cycle Occupation & Economic Circumstances Personality Lifestyle 14

15. Personal Factors 15

16. Nationality is a Cultural Factor! 16 SUBCULTURES

17. 4. Buyer’s decisions are influenced by personal characteristics EXCEPT Nationality Age & Stage in the Life Cycle Occupation & Economic Circumstances Personality Lifestyle 17

18. 5. Which of the following is true? Groups having either face-to-face or indirect influence to consumer behavior are called membership groups. People are influenced by groups to which they do not belong. Reference groups are groups having direct influence on consumer behavior. Dissociative groups do not influence consumer behavior. Friends are considered secondary groups while family is a primary group. 18

19. Social Factors 19 Reference Groups

20. Social Factors Social factors such as reference groups affect consumer behaviour. Reference groups have either direct (face-to-face) or indirect influence. Groups having direct influence are called membership groups. Primary groups are groups with whom a person interacts fairly continuously and informally, such as family & friends. People are also influenced by groups to which they do not belong, such as aspirational & dissociative groups. 20

21. 5. Which of the following is true? Groups having either face-to-face or indirect influence to consumer behavior are called membership groups. People are influenced by groups to which they do not belong. Reference groups are groups having direct influence on consumer behavior. Dissociative groups do not influence consumer behavior. Friends are considered secondary groups while family is a primary group. 21

22. 6. Which of the following statements is false? The buying decision process is a five-stage model. The model starts with problem recognition & ends with the purchase decision. The buying process starts long before the actual purchase. Consumers don’t always pass through all 5 stages in buying a product. The attitude of others & unanticipated situations may intervene with the purchase decision. 22

23. Consumer Buying Process 23

24. Consumer Buying Process The Buying Process does not end with the purchase. Marketers monitor the buyer’s feelings or behavior towards the product or service after the purchase. Marketers are concerned about post-purchase satisfaction, actions (repurchase or abandonment), & disposal (rent, lend, or store). 24

25. 6. Which of the following statements is false? The buying decision process is a five-stage model. The model starts with problem recognition & ends with the purchase decision. The buying process starts long before the actual purchase. Consumers don’t always pass through all 5 stages in buying a product. The attitude of others & unanticipated situations may intervene with the purchase decision. 25

26. 7. MTV appears to have a brand personality of Competence Excitement Ruggedness Sincerity Sophistication 26

27. Brand Personalities 27 Brand Personality is the specific mix of human traits that we can attribute to a particular brand.

28. Brand Personalities caters to the young generation who’s interested in the latest music, fashion, videos, concerts, events, movies, etc. It is a total expression of youth, individuality, and breaking conventions. It exudes a daring, spirited, imaginative, and up-to-date personality – Excitement. 28

29. 7. MTV suggests to having a brand personality of Competence Excitement Ruggedness Security Sophistication 29

30. 8. Highly Price-sensitive people deciding to purchase the cheapest brand is an example of this purchase strategy Conjunctive heuristic Elimination-by-aspects heuristic Lexicographic heuristic Availability heuristic Representative heuristic 30

31. Purchase Decision Heuristics are rules of thumb or mental shortcuts in the decision process. 31

32. Heuristics Conjunctive heuristic – consumer chooses the 1st alternative that meets the minimum standard for all attributes. Lexicographic heuristic – consumer chooses the best brand on the basis of its perceived most important attribute. Elimination-by-aspects heuristic – consumer compares brands & eliminates brands that do not meet minimum acceptable cut-offs. 32

33. 8. Highly Price-sensitive people deciding to purchase the cheapest brand is an example of Conjunctive heuristic Elimination-by-aspects heuristic Lexicographic heuristic Availability heuristic Representative heuristic 33

34. 9. A Filipina who recently postponed her trip to HK was influenced by this type of risk Psychological Risk Physical Risk Financial Risk Social Risk All of the above 34

35. Perceived Risks 35 A consumer’s decision to modify, postpone, or avoid a purchase is heavily influenced by perceived risks.

36. Perceived Risks Due to the recent hostage incident, Filipinos may cancel their trip to HK because of perceived risks: Functional Risk – the product may not perform up to expectations Physical Risk – the product poses a threat to the physical well-being of the user/others Financial Risk – the product is not worth the price paid Social Risk – the product results in embarrassment from others Psychological Risk – the product affects the mental well-being of the user Time Risk – wasted time in finding a new product in case of product failure 36

37. 9. A Filipina who recently postponed her trip to HK was influenced by this type of risk Psychological Risk Physical Risk Financial Risk Social Risk All of the above 37

38. 10. Marketers who learn about the buying process for their service by conducting surveys on recent diners in their restaurant display an example of this customer profiling method Prospective Method Prescriptive Method Retrospective Method Introspective Method Scientific Method 38

39. Profiling the Customer Buying-Decision Process Marketers learn about the stages in the buying process for their product through: Introspective Method Retrospective Method Prospective Method Prescriptive Method 39

40. Profiling the Customer Buying-Decision Process Interviewing a small number of recent purchasers, asking them to recall the events leading to their purchase is the retrospective method. 40

41. 10. Marketers who learn about the buying process for their service by conducting surveys on recent diners in their restaurant display an example of this customer profiling method Prospective Method Prescriptive Method Retrospective Method Introspective Method Scientific Method 41

42. TOP 10 Learning Questions for Analyzing Consumer Markets Chapter 6 Grace Sumera 24 September 2010