SESSION 1

Factors affecting consumer behavior

1. Cultural  culture/subculture, social class.

2. Social  groups (membership, reference, aspirational), family.
3. Personal
 Age and life cycle stage,
 occupation,
 economic situation,
 lifestyle (psychographics),
 personality and self-concept.
4. Psychological 
Motivation:
 Freud: a person does not fully understand his or her motivation.
 Maslow: physiological, safety, social, esteem and self-realization. (Not always a true).
Perception: selective attention, distortion, and retention.
Learning.
Beliefs and attitudes.

Consumer buying roles

1. Initiator
2. Influencer
3. Decider
4. Buyer
5. User

You need to evaluate who is the key role for your products so that you can match your campaign to
them. If you target group are children, you will put the ads on Disney channel before/after school
time.

The elements of culture

 Language Nonverbal language

 Religion Values and attitudes
 Manners Material elements
 Aesthetics Education
 Social institutions

Why cultures differ and persist

 Survival
 Language
 Religion

National culture vs. organizational culture

 Shared meanings vs. shared behaviors

 Unconditional relationship vs. conditional relationship
 Born into it vs. socialized into it
 Totally immersed vs. partly involved
 SESSION 2 – SEGMENTATION

Segmentation - Dividing a market into groups of buyers with different needs, characteristics, or
behavior who might require separate products or marketing mixes.

Two conditions for segmentation:

1. Group A = the buyers within the group should be as much similar as possible
2. Buyers in group A and group B should be as different as possible

Divide a market in groups as homogeneous as possible internally, and as heterogeneous as possible

externally.

What is needed for a good segmentation:

1. It must be measurable. Dividing the country by using business criteria.

2. It must be accessible. Technical, marketing, and supply chain accessibility.
3. It must be substantial – it must be big enough.

Markets

1. Mass marketing. The seller mass produces, mass distributes, and mass promotes one
product to all buyers.
2. Product-variety marketing: The seller produces two or more products that have different
features, styles, sizes and so on.
3. Target marketing: the seller identifies market segments, selects one or more of them, and
develops products and marketing mixes tailored to each (General Motors, Coca-Cola Diet vs
Coca-Cola Light)
4. Micromarketing/Customized marketing/ Focused Marketing/Niche marketing (Gluten
Free)

Steps

1. Market segmentation

 Identify bases for segmenting the market

 Develop profiles of resulting segments

2. Market targeting

 Develop measures of segment attractiveness

 Select the target segments

3. Market positioning

 Develop positioning for each target segments

 Develop marketing mix for each target segment
Variables of segmentation in consumer markets

1. Geographic

 Urban/Rural Region
 Country Continent

2. Demographic

 Age Gender
 Family Size Family Life-Cycle
 Purchasing Power Job
 Education Religion
 Race Nationality
 Multivariate Demographic Segmentation

3. Psychographic

 Social class Lifestyle

 Personality Nationality

4. Behavioral

 Occasions  Duty Free Shops – you buy things you don’t need
 Benefits sought
 User status Usage rate
 Loyalty status
 Buying-Readiness Stage (Unaware, aware, informed, interested, want, intend to buy)
 Attitude toward product

SESSION 3

The Scope of Consumer Behavior

 Marketing is a customer of consumer research

 Elastic or Inelastic(tobacco) demand
 How much do sales change when the price is cut by 10%? Not much.
 When should we finalize a promotion? Not an easy question. Promotion can kill a brand.
 How much do colors, music and aromas affect behavior in a store? It may significantly affect
the consumer.
 When a new product is launched under an old brand name, how much does the old name
affect purchase of the new product? Depends. If the company is well known and has a great
reputation than launching a new product may be accepted very well by the consumers.
 SESSION 4

Consumer Decision Model

1. COGNITIVE: treats purchase as the outcome of rational decision-making process. It assumes

rationality. Decision rests on beliefs about alternatives, which are investigated and compared.

Satisficing model: Company´s executives tend to accept the first option that is good enough to
solve a problem. In many markets, simplification of choice is the norm rather than the
exception and we might expect consumers to follow much the same pattern. Although
satisficing may not result in the optimal solution, it may use time efficiently when this is scarce.

Influences on decision making: not all decisions are made by people acting on their own. Many
choices are made in groups and then, decisions may be influenced by word of mouth from
other people.

Purchase as learned behavior

A person´s environment controls behavior in two ways:

 Environment make some actions possible and other actions impossible to perform.
 When actions lead to positive outcomes, they are more likely to be repeated (and the
opposite)

These controls on behavior have been examined as learning theory, a systematic description
of the relationship between behavior, its outcomes and subsequent behavior, which is relevant
to both the reinforcement and habit models.

2. REINFORCEMENT: treats purchase as behavior which is learned and modified in response to

the opportunities, rewards and costs present in the consumer´s environment.
 Reinforcement has most effect when it occurs at the same time as or just after, the
response (gambling on fruit machines).
 Classical conditioning (Pavlov) Find the bells in marketing that will influence people
to buy.

3. HABIT: treats purchase as already learned behavior, which is elicited by particular stimuli in
the consumer´s environment.
 The habit model of consumption excludes planning before action but does not imply
that consumers never think about their habitual behavior.
 When purchase is habitual, a new brand must be marketed in a way that disrupts habit
and provokes a review of past purchase (Red Bull).