ANALYZING CONSUMER MARKETS

Presented by Sony Kusumasondjaja, SE., MCom.

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What Influences Consumer Behavior?

CULTURAL FACTORS SOCIAL FACTORS PERSONAL FACTORS

CULTURAL FACTORS

CULTURE fundamental determinant of a persons wants and behavior SUBCULTURE more specific identification and socialization (nationality, religion, racial groups, geographic regions) SOCIAL CLASS relatively homogenous and enduring divisions in a society and whose members share similar values, interests, and behavior
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Characteristics of Social Classes

Those within each class tend to behave more alike than persons from different classes Persons are perceived as occupying inferior or superior positions according to social class Social class is indicated by a cluster of variables (occupation, income, education, value orientation) rather by any single ones Individuals can move up or down the socialclass ladder during their lifetimes

SOCIAL FACTORS
REFERENCE GROUP FAMILY SOCIAL ROLES & STATUS

REFERENCE GROUPS
RG consists of all the groups that have a direct or indirect influence on his/her attitudes or behavior Membership Groups (Primary & Secondary) Aspirational & Dissociative Groups Opinion Leader

PERSONAL FACTORS
AGE & STAGE IN LIFE-CYCLE OCCUPATION & ECONOMIC CIRCUMSTANCES PERSONALITY & SELF-CONCEPT LIFESTYLE & VALUES

KEY PSYCHOLOGICAL FACTORS

MOTIVATION PERCEPTION LEARNING MEMORY

MOTIVATION

PERCEPTION
The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world Perceptions can vary widely among individuals exposed to the same reality In marketing, perceptions are more important than the reality

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LEARNING

Learning involves changes in an individuals behavior arising from experience

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THE BUYING DECISION PROCESS

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Level of Consumer Involvement

HIGH INVOLVEMENT PRODUCT LOW INVOLVEMENT PRODUCT

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Low Involvement Marketing Strategy

Link the product to some involving issues Link the product to some personal situation Design advertising to trigger strong emotions related to personal values Add an important feature

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VARIETY-SEEKING BEHAVIOR
Low involvement but significant brand differences It is not because of dissatisfaction Solutions:

Dominating the shelf space (Market Leader) Offering low price or discounts (Challenger)

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