Analyzing Consumer Markets and Buying Behavior

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Analyzing Consumer Markets and Buying Behavior

• Know customers is never simple
• They change in the last minute
• Say one thing do another
• Companies profit from understanding how and why
  customers buy

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Searching the refrigerator for buying an
consuming clues
Wide isles in Chengdu are bigger than isles in
St. Louis Wal-Mart may have learned from Latin
America
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12 hour change in human behavior
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Cultural Factors

• Fundamental determinant of a persons wants and
  behaviors.
• They are shaped by parents, or family and other
  close matched institutions
• Set of values and preferences
• Subculture is a more specific form within a
  culture

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The past is not dead. In fact, it's not even
past.

• William Faulkner

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• Marketing stimuli

• Other stimuli

• Product
• Price
• Place
• Promotion

• Economic
• Technological
• Political
• Cultural

Laris at Three on the Bund
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• Buyers characteristics

• Buyers decision process

• Problem recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Post purchase behavior

• Cultural
• Personal
• Social
• Psychological

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• Buyers decisions

• Product choice
• Brand choice
• Dealer choice
• Purchasing time
• Purchase amount

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Diversity Marketing

• Based on market research
• Ethnic and demographic niches
• Social classes that are enduring
• Like each other
• Superior or inferior
• Cluster of variables
• Individuals can move up and down social class in
  a lifetime. Flexibility of culture.

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Journal of Advertising, Spring 2003, Jing Zhang
and Sharon Shavitt
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Journal of Advertising, Spring 2003, Jing Zhang
and Sharon Shavitt
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Journal of Advertising, Spring 2003, Jing Zhang
and Sharon Shavitt
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Journal of Advertising, Spring 2003, Jing Zhang
and Sharon Shavitt
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Other Social Factors

• Reference groups like the Manhattan project
• Membership groups
• Primary
• Secondary
• Aspirational

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Figure 2European countries by traditional family
indexOn this scale, the lower the score, the
stronger the traditional family. For example, it
plays a more important role in Ireland and Italy
than in Sweden and Denmark.
Joachim Vogel of Statistics Sweden andthe
University of Umeå , 1998
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• Dissociative
• Role and status
• Age and life cycle

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Influences on Buying

• Culture -- fundamental determinant in buying
  behavior
• Subculture and social classes
• Proximity

Social segregation in Manhattan
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How Class Operates in USAmerica
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Table 7.1 Stages in Family Life Cycle in Asia
See text for complete table
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Stages in Life Cycle

• Single, but individual nest
• Gay, couple
• Full nest I, II, II
• Empty nest I, II
• Solitary survivor still working
• Solitary, retired

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High Resources

• Actualizers successful and take charge
• Fulfilleds Mature, favor durability, function
• Experiencers Younger vital, rebellious, income
  on clothing, food, music, and video.

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Lower Resources

• Believers Conservative, conventional
• Strivers Uncertain, insecure. Stylish
• Makers Practical, self sufficient, and family
  oriented.
• Strugglers Elderly, resigned, passive,
  concerned and resource constrained. Follow
  brands.

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Personality
Brand Personality

• Self confidence
• Autonomy
• Deference
• Sociability,
• Defensiveness
• Adaptability

• Mix of traits that might attributed to a brand
• Attract consumers with the same self confidence
• We are
• We would like

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• Iacocca was born in Allentown, Pennsylvania's
  steel making belt.
• Italian immigrants who
• Engineering degree
• Pres. Ford and Chrysler
• Known for marketing

achiever
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Thinker
Consumer advocate founded the Center for Study
of Responsive Law, the Public Interest Research
Group (PIRG), the Center for Auto Safety, Public
Citizen, Clean Water Action Project, the
Disability Rights Center, the Pension Rights
Center,
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5 Brand Personalities

• Stanford University Graduate School of Business,
  (Ph.D. in Marketing, Ph.D. Minor in Psychology,
  1995)
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness

Jennifer Aaker Stanford Professor
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Psychological Factors

• Motivations
• Perception
• Learning
• Beliefs and attitudes
• State of tension,
• Pressing drive

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Freud Theory

• Unconscious behavior
• We cannot fully understand how can a marketing
  guy at Proctor understand
• People will like or dislike shapes, sizes
• Ernest Dichter
• Consumes
• Cigars
• Veritable fats vs. animal fat
• Women hatch an egg

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Picture interpretations and role playing.
Projective techniques
Ernest Dichter
1952
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Figure 7.4 Maslows Hierarchy of Needs
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Henzenberg

• Satisfiers
• Dissatisfies
• No warranty dissatisfied
• Not a useful computer,
• but warranty do not want

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Hertzbergs Satisfiers/Dissatisfiers

• Japanese tourism dissatisfiers
• Poor sanitation in restaurants and toilets
• Risk of disease, attack
• Too few amenities, too rural or countrified

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Perception

• A process selects, organizes, interprets
  information
• Not just physical stimuli
• Different from person to person

Shangri La Hotel
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Perception

• How people select, organize and interpret
  information
• Selective attention
• Notice stimuli that relate to current need
• Likely to notice what is anticipated
• Likely to notice large deviation from the norm

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Selective Attention

• Most Westerners see 1500 ads a day
• More likely to see what they need the most
• What does they anticipate
• Large deviation price cut of 1000 Yuan.

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Selective Distortions

• We twist meaning in terms of what we think
• Thats what I thought they said, but I was
  thinking that they would say that.

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Selective Retention

• Forget much, but retain what supports their
  beliefs.
• Remember good points about the product we like,
  but for get competing products.

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Learning

• Action involves learning
• We learn how to satisfy or reduce drives
• Product experience teaches

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Beliefs and Attitudes

• Acquired through learning
• A thought or feeling about something people hold
  on to

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Qing Hai Train

• Target audiences
• Culture
• Demographics
• Requirements
• Reference group
• Kind of persons (VALs)

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Driving Technology
CCTV
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Discussion Question
What are you buying or doing as students? Do you
make group or indivdual decisions?
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• Who is the market?
• What does it buy?
• Why does it buy it?
• Who participates in decision? Purchase?
• How does it buy?
• When does it buy?
• Where does it buy?

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Steps to Making a Purchase

• Recognize problem
• Seek information
• Evaluate alternatives
• Decide on purchase
• Post-purchase evaluation

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Model of Behavior

• Other Stimuli
• Economic
• Technological
• Political
• Cultural

• Marketing Stimuli
• Product
• Price
• Promotion
• Place

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Model of Behavior

• Buyer Characteristics
• Cultural
• Social
• Personal
• Psychological

• Decision Process
• Recognize
• Search
• Evaluate
• Post-purchase behavior

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Purchase Decision

• Preference among brands
• Wants to buy her preferred brand
• Attitudes of others positive or negetive
• Unanticipated situational factors Shanghai
  Index drops 2000 points in two months
• Postpone
• a

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Purchase Intention

• Brand decision
• Vendor decision
• Quantity decision
• Timing of search or buying
• Payment

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Steps to Making Purchase

• Unaware
• Aware
• Knowledge
• Liking
• Prefer
• Conviction
• Buy

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Figure 7.8 Steps Between Evaluation of
Alternatives and a Purchase Decision
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Figure 7.9 How Customers Use or Dispose of
Products
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Figure 7.11 Value Adds for IBM Customers in the
Global Electronic Networking Capability
Marketspace
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Figure 7.10 Activity Cycle for IBM Customers in
the Global Electronic Networking Capability
Marketspace
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Table 7.2 Four Types of Buying Behavior
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Table 7.3 A Consumers Brand Beliefs about
Computers
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Attribution

• Internal I passed because I know the material
• External I was tricked into buying counterfeit
  batteries

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Buying Behavior

• Complex
• Dissonance-reducing
• Habitual buying
• Variety seeking