Top 10 learnings for chapter 6 analyzing consumer markets
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This document contains 10 learning questions about consumer markets and behavior from a chapter. It discusses reference groups, social classes, social roles, lifestyle factors, brand personality, consumer perception and decision-making processes, types of risk, and non-compensatory choice models. Examples and short explanations are provided for each question to illustrate key concepts from the chapter.
Top 10 learnings for chapter 6 analyzing consumer markets
- 1. TOP 10 Learning Questions for Chapter 6 : Analyzing Consumer Markets Rafael P. Banaag III December 17, 2010 www.rafaelbanaag.blogspot.com
- 2. 1. _____ are whom the person interacts continuously and informally, such as family, friends, neighbors & coworkers. Membership Groups Primary Groups Secondary Groups Aspirational Groups Dissociative Groups www.rafaelbanaag.blogspot.com
- 4. Reference Groups Membership Groups – have a direct influence Primary Groups – whom the person interacts continuously and informally, such as family, friends, neighbors and coworkers Secondary Groups – tend to be formal and require less continuous interaction, such as religious, professional groups Aspirational Groups – those a person hopes to join Dissociative Groups – are those whose values and behavior and individual rejects www.rafaelbanaag.blogspot.com
- 5. 1. _____ are whom the person interacts continuously and informally, such as family, friends, neighbors & coworkers. Membership Groups Primary Groups Secondary Groups Aspirational Groups Dissociative Groups www.rafaelbanaag.blogspot.com
- 6. 2. The following statements are false except: Within a class, people tend to behave differently. Social class conveys perceptions of equality. Class may be indicated by a cluster of variables (occupation, income, wealth) Class designation doesn’t change over time www.rafaelbanaag.blogspot.com
- 8. Within a class, people tend to behave alike. Tend to be more alike in dress, speech patterns and recreational preferences. Social class conveys perceptions of inferior or superior position Class may be indicated by a cluster of variables (occupation, income, wealth) Class designation is mobile over time. Individuals can move up and down the social class ladder during their lifetime. Characteristics of Social Classes www.rafaelbanaag.blogspot.com
- 9. 2. The following statements are false except: Within a class, people tend to behave differently. Social class conveys perceptions of equality. Class may be indicated by a cluster of variables (occupation, income, wealth) Class designation doesn’t change over time www.rafaelbanaag.blogspot.com
- 10. 3. A _____ consists of the activities a person is expected to perform. Reference Group Family Social Role Status Duty www.rafaelbanaag.blogspot.com
- 12. Reference Groups Reference Group – are groups that have a direct (face-to-face) or indirect influence on their attitudes or behaviors Family – most important consumer buying organization in the society FAMILY OF ORIENTATION – parents and siblings FAMILY OF PROCREATION – spouse and children Social Role – consists of activities a person is expected to perform Status – a position or rank related to others www.rafaelbanaag.blogspot.com
- 13. 3. A _____ consists of the activities a person is expected to perform. Reference Group Family Social Role Status Duty www.rafaelbanaag.blogspot.com
- 14. 4. The following statements are true except: Our taste in food, clothes, furniture and recreation is often related to our age. Product choice is greatly affected by economic circumstances. People from the same subculture, social class and occupation may lead quite same lifestyles. Lifestyle are shaped partly by whether consumers are money constrained or time constrained. Time is more important than money. www.rafaelbanaag.blogspot.com
- 16. Personal Factors Personality and Self-concept – Personality means a set distinguishing characteristics that lead to consistent responses to environment stimuli. Self-concept means how we view ourselves. Lifestyle and Values – Lifestyle is a person’s pattern in living as expressed in activities, interests and opinions. People from the same subculture, social class and occupation may lead quite different lifestyles. Values is the belief systems that underlie attitudes and behaviors. www.rafaelbanaag.blogspot.com
- 17. Personal Factors Age & Life Cycle Stage – Certain “passages” or “transformation” that people go through life. Yet the behavior that people exhibit is not fixed but changes with the times. Occupation & Economic Circumstances – Marketers try to identify the occupational groups that have above-average interest in their products and even tailor products for certain occupational groups. e.g. A working class will buy work clothes, work shoes and lunch boxes while A company president will buy suits, air travel and club memberships. www.rafaelbanaag.blogspot.com
- 18. 4. The following statements are true except: Our taste in food, clothes, furniture and recreation is often related to our age. Product choice is greatly affected by economic circumstances. People from the same subculture, social class and occupation may lead quite same lifestyles. Lifestyle are shaped partly by whether consumers are money constrained or time constrained. Time is more important than money. www.rafaelbanaag.blogspot.com
- 19. 5. Levi’s youthful, rebellious, authentic image can be attributed to what brand personality? Enthusiasm Excitement Competence Thrill Ruggedness www.rafaelbanaag.blogspot.com
- 21. BRAND PERSONALITY : specific mix of human traits that we can attribute to a particular brand Sincerity – down to earth, honest, wholesome, cheerful Excitement – daring, spirited, imaginative, up-to-date Competence – reliable, intelligent, successful Sophistication – upper-class, charming Ruggedness – outdoorsy and tough Brand Personality www.rafaelbanaag.blogspot.com
- 22. 5. Levi’s youthful, rebellious, authentic image can be attributed to what brand personality? Enthusiasm Excitement Competence Thrill Ruggedness www.rafaelbanaag.blogspot.com
- 23. In marketing , reality is more important than perception. A need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act. It is easier for consumers to create association to new information when relevant knowledge already exist in memory. Consumers have a general tendency to blame products when it failed than themselves not following instructive ads. You are more likely to notice computers than radios in a computer store because yo don’t expect the store to carry radios 6. The following statements are true except: www.rafaelbanaag.blogspot.com
- 24. Key Psychological Process www.rafaelbanaag.blogspot.com
- 25. Motivation – need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act. Perception – the process by which we select, organize & interpret information inputs to create a meaningful picture of the world. In marketing, perception is more important than reality. Learning – induces changes in our behavior arising from our experience Memory – Short-term memory (STM) – temporary limited repository of information Long-term memory (LTM) – more permanent, essentially unlimited repository. www.rafaelbanaag.blogspot.com Key Psychological Process
- 26. In marketing , reality is more important than perception. A need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act. It is easier for consumers to create association to new information when relevant knowledge already exist in memory. Consumers have a general tendency to blame products when it failed than themselves not following instructive ads. You are more likely to notice computers than radios in a computer store because yo don’t expect the store to carry radios 6. The following statements are true except: www.rafaelbanaag.blogspot.com
- 27. 7. You are in interested at buying a new phone for Christmas and are reading a newspaper. You pay attention to an ad about mobile phones while filtering out ads that have no meaning with you. What kind of perception is this? Selective Attention Selective Interest Selective Distortion Selective Retention Subliminal Perception www.rafaelbanaag.blogspot.com
- 29. Selective Attention – the tendency of a consumer to pay attention only to messages that address a need or interest screening out other irrelevant information. Selective Distortion – is the tendency to interpret information in a way that fits our preconceptions. Selective Retention – consumers likely to remember good points about a product they like and forget good points about competing products. Subliminal Perception – suggests that peoples' thoughts, feelings and actions are influenced by stimuli that are perceived without any awareness of perceiving. www.rafaelbanaag.blogspot.com Perception
- 30. 7. You are in interested at buying a new phone for Christmas and are reading a newspaper. You pay attention to an ad about mobile phones while filtering out ads that have no meaning with you. What kind of perception is this? Selective Attention Selective Interest Selective Distortion Selective Retention Subliminal Perception www.rafaelbanaag.blogspot.com
- 31. 8. The following statements are false except: The consumer always pass through all five stages when buying a product. The most effective information comes personal sources. Attitude economizes on energy and thought therefore it is easy to change. A company is well advised to change attitude rather than fit their product to an existing attitude. Consumer will pay most attention to convenience of getting the product than sought after benefits. The marketer’s job ends with the purchase of his product. www.rafaelbanaag.blogspot.com
- 32. Consumer Buying Process www.rafaelbanaag.blogspot.com
- 33. Problem Recognition – buying starts when the buyer recognizes a problem or need triggered by stimuli. Information Search – buyer becomes more receptive to information about a product: looking for reading materials, phoning friends, going online etc. Evaluation of Alternatives – the consumer arrives at attitudes toward various brands through an evaluation procedure. Purchase Decision – the consumer forms the intention to buy the most preferred brand. Post purchase Behavior – the consumer may experience dissonance from disquieting features or has heard favorable things about other brands that may raise questions to his decision. Consumer Buying Process www.rafaelbanaag.blogspot.com
- 34. Commercial sources normally perform an information function, whereas personal sources perform legitimizing or evaluation of function. Therefore, the most effective information comes personal sources. Consumer Buying Process www.rafaelbanaag.blogspot.com
- 35. 8. The following statements are false except: The consumer always pass through all five stages when buying a product. The most effective information comes personal sources. Attitude economizes on energy and thought therefore it is easy to change. A company is well advised to change attitude rather than fit their product to an existing attitude. Consumer will pay most attention to convenience of getting the product than sought after benefits. The marketer’s job ends with the purchase of his product. www.rafaelbanaag.blogspot.com
- 36. 9. Linda bought a camera but found out later that a new camera came out with more features for the same price. What kind risk is this? Functional Risk Physical Risk Financial Risk Social Risk Time Risk www.rafaelbanaag.blogspot.com
- 38. Functional Risk – The product does not perform up to expectations. Physical Risk – The product poses a threat to the physical well-being or health of the user. Financial Risk – The product is not worth the price paid. Social Risk – The product results in embarrassment from others. Psychological Risk – The product affects the mental well-being of the user. Time Risk – The failure of the product results in an opportunity cost of finding another satisfactory product. Perceived Risks www.rafaelbanaag.blogspot.com
- 39. 9. Linda bought a camera but found out later that a new camera came out with more features for the same price. What kind risk is this? Functional Risk Physical Risk Financial Risk Social Risk Time Risk www.rafaelbanaag.blogspot.com
- 40. 10. Bernie bought laptop Y because he gave more importance on memory even though all other 3 attributes of brand X is higher. What non compensatory model did he use? Conjunctive Heuristic Lexicographic Heuristic Elimination-by-Aspects Heuristics www.rafaelbanaag.blogspot.com LAPTOP MEMORY GRAPHICS SIZE PRICE BRAND X 7 7 7 7 BRAND Y 10 5 4 4
- 41. Non-Compensatory Models of Choice www.rafaelbanaag.blogspot.com
- 42. Non-Compensatory Models of Choice Heuristics are rule of thumb or shortcuts in the decision process Conjunctive – The consumer sets a minimum acceptable cutoff level for each attribute and chooses the 1 st alternative that meets the minimum standard. Lexicographic – The consumer chooses the best brand on the basis of its perceived most important attribute. Elimination-by-aspects – The consumer compares brands on an attribute selected probabilistically www.rafaelbanaag.blogspot.com
- 43. 10. Bernie bought laptop Y because he gave more importance on memory even though all other 3 attributes of brand X is higher. What non compensatory model did he use? Conjunctive Heuristic Lexicographic Heuristic Elimination-by-Aspects Heuristics www.rafaelbanaag.blogspot.com LAPTOP MEMORY GRAPHICS SIZE PRICE BRAND X 7 7 7 7 BRAND Y 10 5 4 4
- 44. TOP 10 Learning Questions for Chapter 6 : Analyzing Consumer Markets Rafael P. Banaag III December 17, 2010 www.rafaelbanaag.blogspot.com