Consumer Behavior Part 4

Market segmentation

a portion of a larger market whose needs differ from the larger market.

Psychoanalytic Theory

consumers make purchasing decisions based on their feelings, hopes, aspirations, and fears. For example, if someone aspires to be a vocal artist they're likely to purchase voice lessons or music recording software.

Lifestyle

how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them.

Marketing Strategy

how will we steer the firm to provide superior customer value to our target market.

Consumer decisions

result from perceived problems and opportunities.

Consumer behavior

the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. the study of how and why consumers spend their money

Self-concept

the totality of an individual's thoughts and feelings about oneself.

Market Segmentation - Four Steps:

1. Identifying Product-Related Need Sets (What is Value Prop) 2. Grouping Customers with Similar Need Sets 3. Describing Each Group 4. Selecting an Attractive Segment(s) to Serve

Hawkins Stern Impulse Buying Theory

Although there are many reasons people buy things, sometimes very little thought is exerted by the consumer. Impulse purchases occur when people buy products based on external stimuli. For example, if people see a candy bar in the checkout line, they might purchase it just because it's there.

Theory of Reasoned Action

Consumers make purchases when they expect a specific result. (Think benefit-driven mktg). Marketers work to associate a positive result with the purchase of their product. For example, OTF marketers work to tie overall health and weight loss/improved metabolism to their brand.

Buyers External

Culture (what is acceptable, customary to do?) Demographics, Economic climate and social stratification (what can I afford, what does my bff do?) Ethnic, religious, and regional subcultures (what am I permitted to do without taboo) Families and households (what did my dad do) Groups and reference group influence (status needs, group acceptance needs)

How will we provide superior customer value to our target market?

Marketing strategy using marketing mix

4. Maslow's Motivation-Need Theory

Maslow, a psychologist in the 1950s, created a needs-based hierarchy that explains why people make purchases. The hierarchy asserts that people buy things to fulfill needs: psychological (survival), safety, love, esteem, and self-actualization. For example, people buy alarm systems for their homes because they value and need safety.

Buyers Internal

Perception Learning Memory Motives Personality Emotions Attitudes

Marekting Mix

Product Communications Price Distribution, and Service

Market Analysis Components

The Consumers The Company The Competitors The Conditions

Consumer Decisions

The firm can succeed only if consumers see a need that its product can solve, become aware of the product and its capabilities, choose that it is the best available solution, proceed to buy it, and become satisfied with the result of the purchase (follow-up customer service) .

Veblenian Social-Psychological Theory

This model asserts that humans are social creatures and make purchases based on societal and cultural norms. For example, as gluten-free, vegetarian, and vegan options are becoming more prevalent in society, consumers are becoming more likely to purchase those options from restaurants.