Ch05 (Understanding the Consumer Market)

8/2/2019 Ch05 (Understanding the Consumer Market)

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Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix

Slides prepared by: Joe Rosagrata51

Chapter 5

Understanding theConsumer Market


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The consumer market

Ultimate consumers who buygoods and services for their own

personal or household use.


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Population

People constitute a market.

Marketers analyse the population

and its geographic and

demographic distribution as the

first steps to understanding theconsumer market.


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The consumer market

Age.

Gender. Family life cycle.

Education.

Incomedistribution.

Ethnicity.

Geographic distributionfrequently

divided into rural, urban and suburban.

Demographicsthe vital statistics thatdescribe a population. In particular:


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Relevance of

consumer demographics

Infant market (04 yrs).

Child market (512 yrs). Teenage market (1316 & 1720).

Young adult/Young family market

(2139).

Middle-aged market (4055). Mature-age market (5565).

Over 65s.


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PPTs t/a Marketing: A Practical Approach 5/e by Peter RixSlides prepared by: Joe Rosagrata

56

Family life cycle

Family life cycle will determine the

purchase behaviour of individuals and their

reason for purchasing. Single parent and two-parent families.

Young couples with no children.

Family (usually 2 adults, 2 young children).

Family with teenagers.

Multicultural (or mixed) family.


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Consumers go through a five-stage

buying decision process

Stage 1Need recognition, when an unsatisfied need(motive) creates tension or discomfort in the consumer.

Stage 2Identification of alternatives, including bothproducts and brands.

Stage 3Evaluation of alternatives, includingestablishing criteria by which to make the evaluation.

Stage 4Purchase decision, which is actually a series ofdecisions, including the actual purchase.

Stage 5Post-purchase behaviour, or cognitivedissonance.


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58

Social influences

Culture.

Changing gender roles.

Social class.

Reference groups.

Families and other households.

Core values, attitudes and beliefs.

The family as a buying unit.


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59

Psychological influences

Buying motives:

Buyer recognises motives for purchase.

Buyer aware of reason for purchase but

does not admit it to themselves.

Buyer does not know the real motivating

factor.


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510

Motivation

Behaviour is stimulated by a need.

Motives trigger behaviour to satisfy need.

Two broad categories of motivation:

1 Biogenic needs (need for food and bodily comfort).

2 Psychogenic needs (need for affection and self-respect).


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511

Maslows hierarchy of needs

SELF

-ACT

UALISAT

IONNeed for self-fulfilment

ESTEEM

Needs for self-respect,

reputation, prestige and status

BELONGING AND LOVE

Needs for affection, belonging

to a group, and acceptance

SAFETY

Needs for security, protection and order

PHYSIOLOGICAL

Needs for food, drink, sex and shelter


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512

Perception

Perception: the process whereby we receive

stimuli (information) through our five senses, we

recognise this information and we then assign a

meaning to it.


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Perception

The limitations to perception are due to our selective

approach to stimuli:

Selective exposure. We perceive only part of what we

are exposed to.

Selective distortion. We alter stimuli based on our

attitudes and beliefs.

Selective retention. We retain only part of what we

selectively perceive.

Selective action. We act upon part of what we retain.


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Learning

Learning. Changes in behaviour resulting from

observation and previous experience.

Learning occurs when a person:

Responds to stimuli.

Is rewarded for the correct response.

Is penalised for the incorrect response.

Repeats a response.

Forms a habitual response.


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515

Attitudes and beliefs

Attitude.A persons enduring tendency to

evaluate, feel about or act in relation to someobject or idea.

Attitudes are formed by the informationindividuals acquire through their learningexperiences and influenced by personality traits.


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Situational influences

Temporary forces associated with the immediate

purchase environment that affect behaviour.

When consumers buythe time influence (day, week,season).

Where consumers buythe place where a decision ismade (home, point of purchase).

How consumers buythe way in which consumersbuy (bulk etc.).

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Ch05 (Understanding the Consumer Market)

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