Consumer Analysis
Marketers have to conduct a consumer analysis to enable them to develop an in-depth profile of their target market.
This analysis enables them to better understand the complex activities in which consumers engage when making a decision.
The availability of disposable income will mainly influence the consumer analysis process.
The consumer analysis process encompasses the internal thought processes of a consumer when making a decision and it is very important to consider this before looking at the decision-making process, since it is influenced by external variables.
A consumer analysis consists of the following four interrelated elements that have to be evaluated:
Cognition:
- Refers to the psycological processes tha consumer experience.
Behaviour
- Is the overt action that they perform.
Environment
- The stimuli external to the consumer that influence their cognitions and behaviours.
Marketing strategy:
- Is made up of the processes by which marketers create marketing stimuli, such as advertisements, price, products and stores, and locate them in consumer environments.
Consumer Decision Making Process
A decision or a solution is a course of action that provides a desired result.
It is of the utmost importance that marketers understand the process their consumers undergo when making a decision.
Although the process entails a structured cycle of activities, the stages in the process do not necessarily follow on each other in strict order, and during some decisions (stages) the consumer may even omit a few activities.
The decision to buy a product or rather save the money is influenced by:
internal variables
- motivation, perception, learning, personality and attitudes
external variables
- reference groups, culture, social influences, family, economic demands, marketing influences and the marketing environment
Buying Stituations
When buying products, there are certain situations that influence the decision-making process.
These situations are the result of circumstances, time and location and they affect the consumer decision process.
These factors can affect a buyer during any stage of the decision-making process and can influence him or her to skip some of the stages of the decision-making process or the process as a whole.
- For example, buying a new cellphone when you upgrade is a different buying experience to buying a new cellphone after yours has been stolen in a smash-and-grab incident.
Normal Buying Situation
In a normal buying situation, you will first obtain and internalise information from the external environment and combine it with your:
- needs
- motives
- perceptions
- attitudes.
These may be influenced:
- by the past
- the act of recalling
- personality factors
- surrounding environment.
Stages of the Decision making Process
- Problem or need recognition
- Information search and processing
- Evaluation of alternatives
- Buying decision
- Post-purchase response
When looking at this process remember the following points:
- The actual act of purchasing is just one stage in the process and usually not the first one. • Although we indicate that a purchase occurs, not all decision processes lead to a purchase; individuals may end the process at any stage.
- All consumer decisions do not always include all five stages (it depends on whether the decision-making is extended, limited or habitual).
Family (Household) Decision making Process
It is difficult to formulate a definition of the term family in South Africa because of the rapid cultural and environmental changes affecting family composition and structure.
The traditional definition is two or more persons related biologically though marriage or by adoption and who reside together.
In most societies the married couple is the most basic structure (husband and wife).
The nuclear family (husband, wife, one or more children) is still predominant although this form is under pressure and has led to many versions of a family, such as a single-parent family (one parent and at least one child). In South African society, the predominant structure is the extended family, which is the nuclear family plus other relatives, such as grandparents, uncles, aunts, and parents-in-law.
Functions of the family/ Household
Members of the family perform a variety of functions within the family structure.
These functions contribute to the wellbeing of society and the individuals in the family and include the following:
- socialisation of family members
- contributing to the economic wellbeing of family members
- providing emotional support
- shaping the lifestyles of family members.
All of these have implications for marketers in terms of family members’ purchasing behaviour in the marketplace.
Roles in family (household) decision-making
The roles that family members play in a purchase decision are complex and the number and identity of family members who take on these roles will vary from one family to the next and from one product to another.
The following eight distinct roles are identifiable:
influencers, gatekeepers, deciders, buyers, preparers, users, maintainers, and disposers.
influencers
Provide information to other members about a product or a service.
gatekeepers
Control the flow of information about a product or service in the household.
deciders
Decide by themselves or with the help of others wether to shop for, buy, use, consume or dispose a specific product or service.
buyers
Do the actual buying of the product or service.
preparers
Transform the product to a form suitable for consumption by other members.
users
Use or consume a particular product.
maintainers
Service or repair aproducts so that they will provide continued satisfaction.
disposers
Decide on or carry out the disposal or discontinuation of a particular product or service.
Family life cycle/household life cycle
The characteristics of a family are not static but change gradually.
The family life cycle depicts the stages that the family progresses through over time, and is a composite variable containing sub-variables such as marital status, size of family, age of family, and employment status of the head of the family.
The traditional family (household) life cycle consists of the following five basic stages:
- Bachelorhood
- Honeymooners
- Parenthood
- Post Parenthood
- Dissolution
