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Consumer Behavior and Market Hierarchy: A Comprehensive Overview

Learn about Elements of Consumer Behavior, Defining Market Hierarchy, EKB Model, Market Segmentation, Buying Process, Decision Making, and more. Explore different levels of competition, search behavior, and segmentation requirements.

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Consumer Behavior and Market Hierarchy: A Comprehensive Overview

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  1. Elements of Consumer Behavior, and Defining the Market Hierarchy BA396 Supplement

  2. Need Recognition Information Search Information Evaluation Purchase Decision Post-purchase Attitude Formation Consumer Behavior • EKB Model

  3. Need Recognition Information Search Information Evaluation Purchase Decision Post-purchase Attitude Formation Consumer Behavior • EKB Model Needs: * Functional - product related * Psychological - stimulation - social - status/power - self-reward Information: * Amount of information * Sources - internal/external * Reduce search?

  4. Need Recognition Information Search Information Evaluation & Trial Adoption Purchase Decision Post-purchase Attitude Formation Consumer Behavior • Buying Process and Decision Making

  5. Need Recognition Information Search Information Evaluation & Trial Adoption Purchase Decision Post-purchase Attitude Formation Consumer Behavior • Buying Process and Decision Making Habitual Decision Making Limited Problem Solving Extended Problem Solving

  6. Consumer Behavior • Who are your competitors, and how do customers end up selecting your product? • Hierarchy of Markets • Competition at different ‘levels’ • Try to understand consumer’s decision process • Within a household competition regarding the importance of different generic markets • this will increase when resources are limited -- transportation will compete with food or housing

  7. Consumer Behavior • Hierarchy of Markets • Desire • all products and services that compete for the consumer’s dollars • Generic Level • demand for broadly defined need • Specific Product Level • car, bicycle, single family dwelling, apt. • Brand • Honda, Chevrolet, Schwinn, Trek, BikEE

  8. Hierarchy of Markets Diet Food • Example 1 prepared unprepared Entrée Supplement fresh frozen fresh frozen restaurant Store Deli Stouffers Weight Watchers

  9. Hierarchy of Markets • Example 2 Food prepared unprepared Entrée Supplement S E ‘Fast’ Sit-down Mexican American Asian Asian American

  10. Census Information • http://www.census.gov/dmd/www/products.html • Click on “intro to Census 2000 data products”  United States (PDF) • Click on the Public Use Presentation Library and browse through the different presentations • About ½ way down the list, there is presentation on the geographic concepts discussed in class. Look for: • Title: Census 2000: Geographic Concepts and Products (September 2002) Number of slides: 36Description: This presentation gives an overview of Census 2000 geographic concepts and products and the various geographic units for which Census 2000 data are available.

  11. Census Information • http://www.census.gov/dmd/www/products.html • Click on the Public Use Presentation Library and browse through the different presentations • About the sixth presentation on the list, there is presentation that covers the short form and long form information. Look for: • Title: Census 2000: and Its Data Products (September 2002)Number of slides: 41Description: An overview of the Census 2000 questions, the data sets, and the products released and the released media.

  12. Segmentation Requirements • Customers have different response elasticities • Salesx1=Advx.5x SalesPrx.2x Distrx.3 • Salesx2=Advx.2x SalesPrx.4x Distrx.2 • Response differences can be identified and matched with customer descriptions • Knowledge of market segments must be translatable to retail mix combinations • Sufficient demand in at least one segment • Characteristics stable over time

  13. Bases of Segmentation • Geographic • Nations, regions, states • Demographic • Age, gender, family size, income • Psychographic • Social class, lifestyle, personality, AIO inventories • Behavioral • Usage rate, occasion for use, benefits, loyalty

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