Analyzing Consumer Markets: Influences & Decision Process

What Influences Consumer Behavior?

• Consumer behavior 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.

Key Psychological Processes

• Behavioral Decision Theory and Behavioral Economics are important in understanding consumer behavior.

Cultural Factors

• Culture is the fundamental determinant of a person's wants and behavior.
• Subcultures provide more specific identification and socialization for their members, including:
  • Nationalities
  • Religions
  • Racial groups
  • Geographic regions
• Social classes exhibit social stratification, with members sharing similar values, interests, and behavior.

Social Factors

• Reference Groups:
  • A person's reference groups are all the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior.
  • Membership groups:
    • Primary groups (e.g. family, friends, neighbors, coworkers)
    • Secondary groups (e.g. religious, professional, and trade-union groups)
  • Aspirational groups (groups a person hopes to join or be similar to)
  • Dissociative groups (groups whose values or behavior an individual rejects)
• Family:
  • The family is the most important consumer buying organization in society.
  • Family members constitute the most influential primary reference group.
  • Two types of families:
    • Family of orientation (parents and siblings)
    • Family of procreation (spouse and children)
• Roles and Status:
  • Roles consist of the activities a person is expected to perform.
  • Each role connotes a status.

Personal Factors

• Age and Stage in the Life Cycle:
  • Our taste in food, clothes, furniture, and recreation is often related to our age.
  • Consumption is shaped by the family life cycle and the number, age, and gender of people in the household.
  • Psychological life-cycle stages may matter.
• Occupation and Economic Circumstances:
  • Occupation influences consumption patterns.
  • Marketers try to identify occupational groups that have above-average interest in their products and services.
• Personality and Self-Concept:
  • Personality is a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli, including buying behavior.
  • Brands also have personalities, and consumers choose brands whose personalities match their own.
• Lifestyle and Values:
  • People from the same subculture, social class, and occupation may have different lifestyles and values.
  • Marketers should consider these differences when targeting their products or services.