Group 1: market segmentation Group 2: targeting Group 3: differentiation strategy & positioning Group 4: marketing competitive strategy Group

5: new product

What influences consumer behaviour?

Consumer behaviour is 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.

culture

subculture

Reference groups

Cultural factor
Social class

Social factors
family Economic circumstances Social Role & status

CONSUMER BUYING BEHAVIOUR

Age & stage in the life cycle

Personal factors
Occupation and self concept Lifestyle and values

personality

Research into those factors can provide clues to reach and serve consumers more effectively

Culture is the fundamental determinant of a persons wants and behaviour

A child growing up in a family in one certain country is exposed to values such as: Achievement & success, activity, efficiency and practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness

Marketers must closely attend to cultural values in every country to understand how to best market their existing products and find opportunities for new products

Subcultures => part of a culture that shows more specific identification and socialization for their members
Nationalities, religions, racial groups and geographic regions

When subcultures grow large and affluent enough, marketers often design specialized marketing programs to serve this group.

All human societies exhibit Social stratification, most often in the form of social classes relatively homogeneous and enduring divisions in a society, hierarchically ordered and with members who have similar values, interest, and behaviour. Such as: upper class, middles class, lower class

Social class members show distinct product and brand preferences in many areas such as clothing, home furnishings, leisure activities, and automobiles

Social factors:
Reference groups Primary groups: family, friends, neighbours, coworkers Secondary groups: religious, professional, trade-union groups => more formal, less continuous interaction
Where reference group influence is strong, marketers must determine how to reach and influence the groups opinion leaders

Social factors:
Family Roles and status A role consists of the activities a person is expected to perform. Each role in turn connotes a status.

Marketers must be aware of the status-symbol potential of products and brands

Personal factors:
Age and stage in the life cycle
Marketers should consider critical life events or transitions marriage childbirth Illness relocation devorce first job retirement

Personal factors:
Personality and self-concept

Personality can be useful variable in analyzing consumer brand choices. Ex: Levis on ruggedness MTV on excitement CNN on competence

Personality and self-concept

Personality is a set of distinguishing human psychological traits that lead to relatively consistent and enduring response to environmental stimuli (including buying behaviour)
Such as self-confidence, dominance, autonomy, sociability, defensiveness, and adaptability

Personal factors:
Lifestyle and values

Marketers search for relationships between their products and lifestyle groups.

Lifestyle

A lifestyle is a persons pattern of living in the world as expressed in activities, interests, and opinions

Values

Core values is the belief systems that underlie attitudes and behaviors
Marketers who target consumers on the basis of their values believe that with appeals to peoples inner selves, is is possible to influence their outer selves their purchase behavior

Four main psychological processes that affect consumer behaviour are: motivation perception learning memory

To understand how consumers actually make buying decisions, marketers must identify who makes and has input into buying decision.

People can be as: initiators influencers deciders buyers or users

Different marketing campaigns might be targetted to each type of person

Buying process:
o problem recognition o information search o evaluation of alternatives o purchase decision o post purchase behaviour
The marketers job is to understand the behaviour at each stage

The attitudes of others, unanticipated situational factors, and perceived risk may all affect the decision to buy, as will consumers levels of post purchase product satisfaction, use and disposal, and the companys actions