ch 06 analyzed markets

Chapter 6: Analyzing Consumer Markets

6 ConceptsJoeffrey Barrios Jr.

May 10, 2013

Consumer behavior is influenced by three factors:

1. Cultural2. Social3. PersonalTwo(of four) psychological processes that

affect consumer behavior:4. Motivation5. Perception

OUTLINE

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.

Concept 1 : Consumer Behavior

Lurho Enterprises must know and understand the Consumer Behavior of its target market

The company must understand both the theory and the reality of consumer behavior in order to offer better services.

Example 1

Culture is the fundamental determinant of a person’s wants and behavior.

Cultural factors include Nationalities Religions Racial groups Geographic regions.

Concept 2: Cultural Factor

Lurho Enterprises’ target market: Nationality – Filipino. The company tries to

know the customers at a more personal level.

Religion – mostly Christian. To adhere to Christian teachings, interest rates are kept relatively low.

Example 2

Social factors such as reference groups, family, social roles and statuses affect buying behavior.

Concept 3: Social Factor

Lurho Enterprises requires that their client must belong to a reference group. However, the company is not very strict on which exact group the clients should belong to.

Example 3

Personal characteristics that influence a buyer’s decision include:

Age Occupation Personality lifestyle

Concept 4: Personal Factor

Lurho Enterprises’ target market: Age: 18 to 60 – The company gives referral

gifts that people aged 18 to 60 would want. Occupation: Works in UERM – The company

offers free delivery of money to clients from UERM

Social class: Class E and Class D – The company interacts with clients in a non-formal way.

Example 4

A need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act. Motivation has both direction and intensity

Concept 5: Motivation

The very reason why Lurho Enterprises was put up was because the owners believed that money is a very strong motivator.

Also, money is needed to satisfy a lot of man’s needs mentioned in Maslow’s Hierarchy of Needs. (Maslow’s Hierarchy of Needs is one of the best-known theories of human motivation)

Example 5

Perception is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world.

Concept 6: Perception

In interacting with the customers, Lurho Enterprises strives to know the customers in a more personal level.

The customers’ perception would then be that the company cares for its customers (this is the perception and this is also the reality).

Example 6

Chapter 6: Analyzing Consumer Markets Remember This: 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.

Concept : Consumer Behavior

Analyzing and studying Consumer behavior is similar to…………………..

Or more specifically, courtship.

STORY

Assuming guy X is single and ready to mingle

Guy X (a business or a company) wants to court a Girl X (a target market). Guy X cannot just “dive in” and hope for the best.

Guy X should consider and understand Girl X’s background (consumer behavior).

STORY

First factor to consider is Girl X’s cultural background.

What is the nationality of this potential partner, girl X?

What is girl X’s religion? Where is girl X located geographically?

STORY

Next, Guy X should next consider her social background.

What kind of family does girl X have? What is her social role and status?

STORY

Lastly, guy X should consider her Personal factors. The most important of all, in my opinion.

How old is girl X? What is girl X’s occupation? What is girl X’s personality like? What is her lifestyle?

STORY

Once guy X has understood, analyzed, and addressed the cultural, social, and personal factors of girl X’s behavior, guy X would have a better chance of being successful in his courtship.

Similar to Marketing, this does not guarantee success, it just improves the odds.

STORY

STEP 1 •Know the cultural factors of your target market’s behavior.•Know the girl’s cultural background.

STEP 2 •Know the social factors of your target market’s behavior.•Know the girl’s social background.

STEP 3 •Know the personal factors of your target market’s behavior.•Know the girl’s personal background

Summary : How to Analyze Consumer Markets and How to Court a Girl.

Chapter 6: Analyzing Consumer Markets

6 Concepts and Remember This: Consumer BehaviorJoeffrey Barrios Jr.

May 10, 2013