Scanning the Marketing Environment and Consumer Behavior

1
Scanning the Marketing Environment and Consumer
Behavior

• Session 6
• January 22, 1998

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Agenda

• Quiz
• Follow-up to Levi Strauss case
• Scanning and Macroenvironmental Analysis
• Demographics
• Vulnerability Audit (related to SWOT Analysis)
• Consumer Behavior and Choice
• Factors Influencing Behavior
• Types of Buying Behavior
• Stages in the Decision Process

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You Must Track the Macroenvironment!

• The only useful knowledge is knowledge of the
  future.

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The Marketing Environment Source of
Opportunities and Threats

• Companies and their suppliers, marketing
  intermediaries, customers, competitors, and
  publics all operate in a macroenvironment of
  forces and trends that shape opportunities and
  pose threats.
• --Philip Kotler

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Six Major Forces

• Demographic
• Economic
• Natural
• Technological
• Political/Legal
• Social/Cultural

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Demographics

• Population growth rate
• In the US
• Overseas
• Age mix
• Ethnic mix
• Geographical shifts
• Household patterns

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Population Pyramids
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Consumer Behavior

• How do the buyers characteristics--cultural,
  social, personal, and psychological--influence
  buying behavior?
• How does the buyer make purchasing decisions?

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Model of Buyer Behavior
T24
Fig. 6.01
Marketing stimuli Product Price Place Promotion
Other stimuli Economic Technological Political Cu
ltural
Buyers characteristics Cultural Social Personal
Psychological
Buyers decision process Problem
recognition Information search Evaluation Decision
Postpurchase behavior
See Figure 6-5
See Figure 6-2
Buyers decisions Product choice Brand
choice Dealer choice Purchase timing Purchase
amount
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Maslows Hierarchyof Needs
T25
Fig. 6.03
Self- actualization (self-development and
realization)
5.
Esteem needs (self-esteem, recognition)
4.
Social needs (sense of belonging, love)
3.
Safety needs (security, protection)
2.
Psychological needs (food, water, shelter)
1.
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Five-Stage Consumer Buyer Decision Process
T26
Fig. 6.05
Problem recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
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Identifying and Understanding Salient Attributes

• We need to understand what the consumer seeks in
  a particular purchase (the criteria)
• AND
• We need to understand how the consumer goes about
  processing the information received (weights and
  processing algorithms)

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The Customer Value Model

• Shampoo
• MBA Program
• Automobile
• icycle helmet

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Example of Expectancy-Value Model of Decision
Making
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Consumer Decision Models

• Consumer Reports Model (Expectancy-Value Model)
• Jump-the-Hurdles Model
• Either-Or Model
• Tie-Breaking Model
• My-Ideal Model
• Standout Model

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Intention-Action Gap

• You customer says s/he plans to buy X.
• Weeks go by. No contact. OR when contacted, no
  action.

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Steps Between Evaluation of Alternatives and a
Purchase Decision
T27
Fig. 6.07
Attitude of others
Evaluation of alternatives
Purchase intention
Purchase decision
Unantici- pated situational factors
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How Customers Use orDispose of Products
T28
Fig. 6.08
To be (re)sold
Give it away
Rent it
Get rid of it temporarily
Loan it
To be used
Trade it
Get rid of it permanently
Product
Direct to consumer
Sell it
Use for original purpose
Through middleman
Keep it
Convert to new purpose
Throw it away
To intermediary
Store it
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Help the Customer Be a Better Consumer

• Provide information and decision support
• Rating forms to facilitate analysis
• Recommending ways to analyze information
• Help the consumer benefit from the product
• Instructions
• Technical support
• Help the consumer return/reuse/dispose of the
  product
• Reverse mailers
• Repair/refurbishing services
• Recycling/reprocessing channels