Stuvia 75825 Consumer Behaviour Summary F

Summary Consumer Behaviour
by
AnikaOchel
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Consumer Behaviour
A European Outlook, Second Edition
by Leon G. Schiffman, Leslie Lazar Kanuk & Havard Hansen
Summary
by Anika Ochel
Introduction
Ch 1 An introduction to the study of consumer behaviour 2
Ch 2 Consumer research 8
Ch 3 Market segmentation 14
The Consumer as an Individual
Ch 4 Consumer decision-making 18
Ch 5 Consumer motivation 25
Ch 6 Personality and consumer behaviour 30
Ch 7 Consumer perception 36
Ch 8 Consumer learning 43
Ch 9 Consumer attitude formation and change 51
Ch 10 Communication and consumer behaviour 56
Consumers in their Social and Cultural Settings
Ch 11 Reference groups and family influences 60
Ch 12 Social class and consumer behaviour 65
Ch 13 The influence of culture and subculture on consumer behaviour 68
Ch 14 Cross-cultural behaviour: an international perspective 73
More on the Consumer’s Decision-Making Process
Ch 15 Consumer influence and the diffusion of innovations 76
Ch 16 Consumer decision-making – again 84
Part 1: Introduction
Chapter 1: An introduction to the study of consumer
behaviour
consumer behaviour
the behaviour that consumers display in searching for, purchasing, using, evaluating
and disposing of products and services that they expect will satisfy their needs
focuses on how individuals make decisions to spend their available resources (time,
money, effort) on consumption-related items
includes
what they buy
why they buy it
when they buy it
where they buy it
how often they buy it
how often they use it
how they evaluate it after the purchase
the impact of such evaluations on future purchases
how they dispose of it
consumers use and consume on a regular basis
food holidays
clothing necessities
shelter luxuries
transport services
education ideas
equipment
the purchase decisions consumers make affect the demand for
basic raw materials
transport
production
banking
employment of workers
deployment of resources
the success of some industries and
the failures of others
two different kinds of consuming entities:

personal consumer
buys goods and services for his or her own use, for the use of the household
or as a gift
the products are bought for final use by individuals (end-users, ultimate
users)
2
organisational consumer
includes companies, charities, government agencies (local, national) and
institutions (schools, hospitals, prisons)
buy products, equipment and services in order to run their organisations
Development of the Marketing Concept and the Discipline of Consumer Behaviour
production concept
assumes that consumers are mostly interested in product availability at low prices
marketing objectives are cheap, efficient production and intensive distribution
consumers will buy what Is available rather than wait for what they really want
in developing countries or when main objective is to expand the market
product concept
assumes that consumers will buy the product that offers them the highest quality,
the best performance and the most features
constant strive to improve product quality and add features that are technically
feasible (without finding out whether the consumers really want them)
may lead to market myopia (a focus on the product rather than on the consumer
needs)
selling concept
marketer’s primary focus is selling the product that has unilaterally been decided to
produce
assumes that consumers are unlikely to buy the product unless they are aggressively
persuaded to do so
fails to consider customer satisfaction
the marketing concept
marketers began to realise that they could sell more goods, more easily if they
produced only those goods they had already determined that consumers would buy
assumes that to be successful a company must determine the needs and wants of
specific target markets and deliver the desired satisfactions better than the
competition
focuses on the needs of the buyer, rather than the seller
focuses on profits though customer satisfaction, rather than sales volume
implementing the marketing concept
to identify unsatisfied consumer needs, companies had to engage in extensive
marketing research
consumers are highly complex, subject to a variety of psychological and social needs
strategic tools to implement the marketing concept
segmentation
targeting
positioning
marketing mix
the role of consumer research
consumer research: the process and tools used to study consumer behaviour
two theoretical perspectives that guide development of consumer research
methodology
3
positivists
tend to be objective and empirical
seek causes for behaviour
conduct research studies that can be generalised to larger
populations
e.g. consumer research designed to provide data to be used for
strategic managerial decisions
interpretivists
tend to be qualitative, based on small samples
tend to view each consumption situation as unique and
unpredictable
seek to find common patterns of operative values, meanings and
behaviour
focus of the marketing concept: consumer needs

seek to identify the many similarities and constants that exist among people
three elements of the strategic framework:
market segmentation: the process of dividing a market into subsets of
consumers with common needs or characteristics
targeting: selection of one or more of the segments to pursue
positioning
developing a distinct image for the product or service in the mind of
the consumer
an image that will differentiate the offering from competing ones
communicate to consumers that the particular product or service
will fulfil their needs better than competing brands
two key principles:
communicating the benefits of the product rather than
product features
develop and communicate unique selling proposition
the four elements of the marketing mix

product or service
features packaging
designs post-purchase benefits
brands
price
list price allowances
discounts payment methods
place: distribution
promotion
advertising sales efforts
sales promotion demand
public relations
4
Customer Value, Satisfaction and Retention
providing customer value

customer value: the ratio between the customer’s perceived benefits (economic,
functional and psychological) and the resources (monetary, time, effort,
psychological) used to obtain those benefits
perceived value is relative and subjective
value proposition: a term rapidly replacing the popular business phrase unique
selling proposition
customer satisfaction
an individual’s perception of the performance of the product or service in relation to
his/her expectations
‘loyalists’
completely satisfied
keep purchasing
‘apostles’
completely satisfied
experiences exceed their expectations
provide positive word-of-mouth about the company to others
‘defectors’
feel neutral or merely satisfied
are likely to stop doing business with the company
‘terrorists’
had negative experiences
spread negative word-of-mouth
‘hostages’
unhappy customers
stay with the company because of a monopolistic environment or low prices
are difficult and costly to deal with because of their frequent complaints
‘mercenaries’
very satisfied
no real loyalty
may defect because of a lower price elsewhere or on impulse
customer retention
objective of providing value to customers continuously and more effectively than the
competition is to have highly satisfied customers
in the best interest of the customer to stay with the company rather than switch to
another firm
usually more expensive to win new customers than to keep existing ones
loyal customers
buy more products
are less price sensitive
pay less attention to competitors’ advertising
spread positive work-of-mouth
5
The Impact of Digital Technologies on Marketing Strategies
digital technologies allow much greater customisation of products, services and promotional
messages
customers have more power and access to more information than ever before
the exchange between marketers and customers is increasingly interactive
marketers face challenges
Marketing Ethics and Social Responsibility
the marketing concept is sometimes inappropriate, in situations in which the means for need
satisfaction can be harmful to the individual or society (e.g. drugs, tobacco) or cause
environmental deterioration
societal marketing concept
requires that all marketers adhere to principles of social responsibility
6
they should endeavour to satisfy the needs and wants of their target markets in ways
that preserve and enhance the well-being of consumers and society as a whole
fulfil the needs of the target audience in ways that improve society
short-term orientation
embraced by most business executives in their drive for increased market share and
quick profits
managerial performance is usually evaluated on the basis of short-term results
societal marketing concept advocated a long-term perspective and recognises that all
companies would be better off in a stronger, healthier society
some critics are concerned that an in-depth understanding of consumer behaviour makes it
possible for unethical marketers to exploit human vulnerabilities
many trade associations have developed industry-wide codes of ethics
marketing ethics and social responsibility are important concepts of organisational
effectiveness
most companies recognise that socially responsible activities improve their image
among consumers, shareholders, the financial community and others
ethical and socially responsible practices are simply good business resulting in a
favourable image and in increased sales
Consumer Behaviour and Decision-Making are Interdisciplinary
cognitive and emotional aspects to consumer decision-making

a simplified model of consumer decision-making
7
Chapter 2: Consumer research

marketing concepts states that to be successful a company must understand the needs of
specific groups of consumers and satisfy them more effectively than the competition
satisfaction of consumer needs is delivered in: product, price, place and promotion
consumer research, an extension of marketing research
Consumer Research Paradigms
motivational research: technique by Ernest Dichter, developed in the late 1950s, based on
Freudian psychoanalytic techniques, base for quantitative and qualitative research
quantitative research
research approach is known as positivism, consumer researchers primarily
concerned with predicting consumer behaviour as positivists
experiments, survey techniques, observation
findings are descriptive, empirical and can be generalised to larger population
sophisticated statistical analysis
qualitative research
depth interviews, focus groups, metaphor analysis, collage research, projective
techniques, administered by a highly trained interviewer-analyst
findings tend to be somewhat subjective
samples sizes are small
findings cannot be generalized to larger population
primarily used to obtain new ideas for promotional campaigns and products
interest in understanding consumer experiences has led to the term interpretivism,
researchers who adopt this paradigm are known as interpretivists
comparison between positivism and interpretivism
positivism interpretivism
purpose prediction of consumer actions understanding consumption practices
other
modernism, logical empiricism, experientialism, postmodernism,
descriptive
operationalism, objectivism naturalism, humanism, postpositivism
terms
qualitative research: depth interviews,
projective techniques
methodology
surveys, experiments, ethnography: researcher places himself
and research
observations in the society
tools
semiotics: study of symbols and
meanings
rationality, causes and effects of
no single objective truth, reality is
behaviour can be identified and
subjective, cause and effect cannot be
isolated, individuals are problem
isolated, each consumption experience is
solvers, one single reality, events
assumptions unique, researcher-respondent
can be objectively measured,
interactions affect research findings,
causes of behaviour can be
findings are often not generalizable to
identified, findings can be
larger populations
generalised to larger populations
8
combining qualitative and quantitative research findings

the two research paradigms are really complementary in nature
the prediction made possible by quantitative (positivist) research and the
understanding provided by qualitative (interpretivist) research together produce a
richer and more robust profile of consumer behaviour
The Consumer Research Process
developing research objectives: helps to define the type and level of information needed
collecting secondary data
secondary data
any data originally generated for some purpose other than the present
research objectives
sometimes provide sufficient insight into the problem to eliminate the need
for primary research
primary research: original research performed by individual researchers to meet
specific objectives
syndicated data: data of interest to a large number of users that are collected
periodically and compiled and analysed according to a standard procedure, then sold
to interested buyers
customer profitability and lifetime value data
80/20 rule: a relatively small percentage of all customers (20%) accounts for
a disproportionately large portion of the company’s sales and profits (80%)
increased focus on building and maintaining long-term relationships with
customers
9
identify highly profitable customers as quickly as possible and target those

with special offers to buy even more
customer lifetime value profiles for various customer segments
computed from acquisition costs, the profits generated from individual sales,
the costs of handling customers and their orders and the expected duration
of the relationship
designing primary research

quantitative research designs
observational research
the best way to gain an in-depth understanding of the relationship
between people and products is by watching them in the process of
buying and using products
better understanding of what the product symbolises to a consumer
greater insight into the bond between people and products that is
the essence of brand loyalty
experimentation
controlled experiment (causal research)
only some variables are manipulated (independent variables)
while other elements are kept constant
any difference in outcome is due to different treatments of
the variable under study and not to extraneous factors
e.g. test marketing
10
surveys
personal interview surveys
telephone surveys
postal surveys
online surveys
quantitative research data collection instruments
to systematise the collection of data and to ensure that all respondents are
asked the same questions in the same order
includes questionnaires, personal inventories, attitude scales and discussion
guides
validity: the study collects the appropriate data needed to answer the
questions or objectives stated in the objective stage of the research process
reliability: the same question asked to a similar sample would produce the
same findings
split-half-reliability: if sample is divided into two parts and results from each
half are similar
questionnaires
include both substantive questions that are relevant to the purpose
of the study and pertinent demographic questions
disguised or undisguised as to its true purpose
open ended (requiring answers in the respondent’s own words) or
closed-ended (the respondent merely ticks the appropriate answer
from the list of options)
attitude scales
Likert scale
consumers tick the number corresponding to their level of
agreement or disagreement
equal number of agreement-disagreement choices on either
side of a neutral choice
semantic differential scale
typically consists of a series of bipolar adjectives anchored at
the ends of an odd-numbered continuum
sometimes an even-numbered scale is used to eliminate the
option of a neutral answer
behaviour intention scale
measures the likelihood that consumers will act in a certain
way in the future
e.g. buying a product again or recommending it to a friend
rank-order scale
rank items such as products in order of preference in terms
of some criterion
provide competitive information and enable marketers to
identify needed areas of improvement
11
qualitative research designs and data collection methods

depth interviews
lengthy, non-structured interview between a respondent and a
highly trained interviewer
respondents are encouraged to talk freely
provide marketers with valuable ideas about product design or
redesign and provide insight for positioning or repositioning
focus groups
8 to 10 respondents who meet with a moderator-analyst for a group
discussion focused on a particular product or category
respondents are encouraged to discuss their interests, attitudes,
reactions, motives, lifestyles, feelings, usage experiences and so on
respondents are recruited on the basis of a carefully drawn
consumer profile
projective techniques
designed to tap the underlying motived of individuals despite their
unconscious rationalisations or efforts at conscious concealment
variety of disguised tests that contain ambiguous stimuli, such as
incomplete sentences, untitled pictures or cartoons, ink blots, word-
association tests and other-person characterisations
metaphor analysis
suggests that most communication is non-verbal and that people do
not think in words but in images
important to enable consumers to represent their images in an
alternative, non-verbal form rather than in words
through the use of e.g. sounds, music, drawings or pictures
metaphor: the use of one form of expression to describe or
represent feelings about another
customer satisfaction measurement
customer satisfaction surveys
customers’ expectations versus their perceptions of the product or service
delivered
mystery shoppers (professional observer posing as customer)
critical incident method (asking customers to think back in order to train
employees better)
analysing customer complaints (encourage customers to complain,
categorize and analyse the complaints)
analysing customer defections (customer loyalty, find out why they leave)
sampling and data collection
three questions
who to survey (the sampling unit)
how many to survey (the sample size)
how to select them (the sampling procedure)
probability sample: findings should be projectable to the total population
simple random sample: everyone has an equal chance of being
selected
12
systematic random sample: every nth person is selected

stratified random sample: population is divided into mutually
exclusive groups (e.g. age) and random samples are drawn from each
group
cluster (area) sample: population is divided into mutually exclusive
groups (e.g. streets) and researcher draws a sample of the groups
non-probability sample: sufficient to have the findings representative of the
population
convenience sample: selection of most accessible population
members
judgement sample: researcher uses his/her judgement to select
population members (e.g. experts in a relevant field)
quota sample: prescribed number of people from several categories
(e.g. 50 men, 50 women)
data analysis and reporting research findings
includes a brief executive summary of the findings
may or may not include recommendations for marketing action
full description of the methodology used
includes tables and graphics to support the findings
13
Chapter 3: Market segmentation

necessary conditions for successful segmentation of any market:
a large enough population with
sufficient money to spend (general affluence) and
sufficient diversity to lend itself to partitioning in the market into sizeable segments
when diverse consumer interests are met, consumers are better satisfied and their overall
happiness, satisfaction and quality of life are enhanced
market segmentation is a positive force for both consumers and marketers
What is Market Segmentation?
market segmentation: the process of dividing a market into distinct subsets of consumers
with common needs or characteristics and selecting one or more segments to target with a
distinct marketing mix
mass marketing: offering the same product and marketing mix to all consumers
strategy of segmentation allows producers to avoid head-on competition in the marketplace
by differentiating their offerings in price, styling, packaging, promotional appeal, method of
distribution or superior service
after segmenting the market into homogeneous clusters, the marketer must select one or
more segments to target
marketer must decide on a specific marketing mix (product, price, channel, promotional
appeal)
positioning the product so that it is perceived by the consumers in each target segment as
satisfying their needs better than other competitive offerings
Criteria for effective targeting of segments
identification: marketer must identify relevant product or service characteristics

sufficiency: segment must consist of sufficient number of people to warrant tailoring to its
specific needs or interests
stability
marketers prefer to target consumer segments that are relatively stable in terms of
demographic and psychological factors and needs and that are likely to grow
prefer to avoid ‘fickle’ segments that are unpredictable in embracing fads
accessibility: marketers must be able to reach the market segments they want to target in an
economical way
congruent with the firm’s objectives and resources
not every firm is interested or has the resources to reach or serve all the market
segments available
e.g. fitness centres have chosen to tailor their services to women only due to limited
space, limited access to certified instructors, limited marketing budgets
choice to use their limited resources to serve a more specialised segment as well as
possible
other firms choose not to serve one or more segments because they do not fit the
long-term objectives of the firm
14
Bases for Segmentation
15
geographic segmentation: market divided by location

demographic segmentation: refers to the vital and measurable statistics of a population
age
sex
marital status
income, education and occupation
psychological segmentation: refer to the inner or intrinsic qualities of the individual
psychographic segmentation: measures activities, interests and opinions
sociocultural segmentation
family life cycle
social class
culture and subculture
cross-cultural or global marketing segmentation
use-related segmentation: categorises consumers in terms of product, service or brand usage
characteristics such as level of usage, level of awareness and degree of brand loyalty
LoLows: low current share, low consumption customers
HiLows: high current share, low consumption customers
LowHighs: low current share, high consumption customers
HiHighs: high
current share,
high
consumption
customers
usage-situation
segmentation
benefit segmentation:
identify the one most
important benefit of the
product or service
hybrid segmentation:
combining several
segmentation variables
psycho-graphic-
demographic
profiles
geodemo-
graphic
segmentation
strategic
business
insights VALS
system
16
Implementing Segmentation Strategies
Concentrated versus differentiated marketing

differentiated marketing: targeting several segments using individual marketing
mixes
concentrated marketing: targeting just one segment with a unique marketing mix
counter-segmentation
reconsider the extent to which markets are segmented
company seeks to discover a more generic need or consumer characteristic that
would apply to the members of two or more segments and recombine those
segments into a larger single segment that could be targeted with an individually
tailored product or promotional campaign
17
Part 2: The consumer as an individual

Chapter 4: Consumer decision-making
What is a Decision?
general
the selection of an option from two or more alternative choices
for a person to make a decision, a number of alternatives to choose from must be
available
no-choice/Hobson’s choice
no alternatives from which to choose
customer is literally forced to make a particular purchase or take a particular action
Levels of Consumer Decision-Making
extensive problem-solving
no established criteria for evaluating a product category or specific brand
number of brands that will be considered to a small subset is not narrowed
consumer needs a great deal of information to establish a set of criteria on which to
judge specific brand
usually occurs when buying products that are expensive, important and technically
complicated, implies long time commitments
e.g. car, apartment, high-definition tv
limited problem-solving
consumers have established basic criteria for evaluating the product category
preferences concerning a select group of brands has not been fully established
search for additional information like fine-tuning, must gather additional brand
information to discriminate among the various brands
occurs when purchasing an updated version of a product
e.g. replacing a mobile phone, buying a food processor, replacing an old laptop
routinized response behaviour
consumers have experience with the product category, well-established criteria
hardly ever implied a need for additional information
e.g. buying a refill of laundry detergent, toothpaste or hand soap
Models of Consumers: Four Views of Consumer Decision-Making
an economic view
perfect competition
consumers are characterised as making rational decisions
economic man theory
consumers are aware of all available product alternatives
consumers are capable of correctly ranking each alternative in terms of its
benefits and disadvantages
consumers are able to identify the one best alternative
18
classical economic model of an all-rational consumer is unrealistic because people

are limited by
their existing skills, habits and reflexes
their existing values and goals
the extent of their knowledge
consumers operate in an imperfect world
too idealistic and simplistic
a passive view
consumers are impulsive, irrational purchasers ready to yield to the aims of
marketers
fails to recognize motivation, selective perception, learning, attitudes,
communication and opinion leadership
simple, single-minded, rather unrealistic
an emotional view
consumers are likely to associate deep feelings or emotions (joy, fear, love, hope,
sexuality, fantasy, magic) with certain purchases or possessions
feelings or emotions are likely to be highly involving
consumers are likely to make purchases on impulse, on a whim or because of an
emotional drive
less emphasis on the search for pre-purchase information
more emphasis placed on current mood and feelings
moods are important to decision-making
store’s image or atmosphere can affect shoppers’ moods
shoppers’ moods can influence how long they stay in the store or other
behaviour that retailers wish to encourage
a cognitive view
consumer as a thinking problem solver
consumers are frequently pictures as either receptive to or actively searching for
products and services
focuses on the processes by which consumers seek and evaluate information about
selected brands and retail outlets
consumers are viewed as information processors
leads to the formation of preferences and purchase intentions
consumers are likely to cease their information-seeking efforts when they perceive
that they have sufficient information about some of the alternatives to make a
satisfactory decision
consumers often develop short-cut decision rules (heuristics) to facilitate the
decision-making process
use decision rules to cope with exposure to too much information
consumers cannot make perfect decisions but actively seek information and
attempts to make satisfactory decisions
consumer behaviour is goal directed
19
A Model of Consumer Decision-Making
20
input
marketing inputs
direct attempt to reach, inform and persuade consumers to buy and use the
product
includes the product itself, mass-media advertising, direct marketing,
personal selling, other promotional efforts, pricing policy, distribution
channels
governed by the consumer’s perception of these efforts
sociocultural inputs
non-commercial influences
e.g. comments of friends, editorial in a newspaper, use by a family member
unwritten codes of conduct per culture indicate right or wrong consumption
inputs that affect what consumers purchase and how they use what they
buy: impact of firm’s marketing efforts, influence of family, friends and
neighbours, society’s existing code of behaviour
process
need recognition
likely to occur when a consumer is faced with a problem
two different need or problem recognition styles
actual state types: perceive that they have a problem when a
product fails to perform satisfactorily
desired state types: the desire for something new may trigger the
decision process
pre-purchase search
past experience might provide the consumer with adequate information to
make the choice
if there is no prior experience, consumer has to engage in search for useful
information to base a choice
past experience/internal source
the greater the relevant past experience, the less external information the
consumer is likely to need to reach a decision
marketing and non-commercial information/external sources
perceived risk influences decision process
internet has high impact on pre-purchase search
evaluation of alternatives
two types of information: list of brands from which to make the selection,
criteria used for evaluating brands (model)
evoked set/consideration set: specific brands a consumers considers in
making a purchase within a particular product category
inept set: consists of brands the consumer excludes from purchase
consideration because they feel unacceptable
inert set: consists of brands the consumer is indifferent towards because
they are perceived as not having any particular advantages
21
consumer decision rules/heuristics/decision strategies/information-

processing strategies
compensatory decision rule: consumer evaluates brand or model
options in terms of each relevant attribute and computes a weighted
or summated score for each brand
non-compensatory decision rule: do not allow consumers to balance
positive evaluations of a brand on one attribute against a negative
evaluation on some other attribute
non-compensatory conjunctive decision rule: to be found acceptable
a particular brand cannot be judged to perform below a cut-off point
established by the consumer on any one attribute
non-compensatory disjunctive rule: accepted if an option meets or
exceeds the established minimum cut-off level established for any
one attribute
non-compensatory lexicographic decision rule: consumer first ranks
the attributed in terms of perceived relevance or importance then
compares the alternatives in terms of the single attribute that is
considered most important
consumer segment and the specific shopping rules
practical loyalists: look for ways to save on brands they would buy
anyway
bottom-line price shoppers: buy the lowest-priced item with little
regard for brand
opportunistic switchers: use coupons or sales to decide among
brands and products that fall within their evoked set
deal hunters: look for the best bargain and are not brand loyal
affect referral decision rule: selection of the brand with the highest
perceived overall rating
an understanding of which decision rules consumer apply in selecting a
particular product or service is useful to marketers concerned with
formulating a promotional programme
22
output
purchase behaviour
trial purchase
consumer purchases a product for the first time, buys a smaller
quantity than usual
consumers attempt to evaluate a product through direct use
repeat purchase
when new brand is established consumers are likely to repeat the
purchase
closely related to brand loyalty
signified that products meets consumer’s approval, willing to use it
again and in larger quantities
long-term commitment purchases
post-purchase evaluation
neutral feeling: actual performance matches expectations
positive disconfirmation of expectations/satisfaction: performance exceeds
expectations
negative disconfirmation of expectations/dissatisfaction: performance is
below expectations
important component: reduction of any uncertainty or doubt that the
consumer might have about the selection
degree of post-purchase analysis depends on importance of the product
decision and experience acquired in using the product
customer satisfaction may be related to customer retention (if a consumer is
satisfied with his adidas shoes he will buy other adidas products)
Consumer Gifting Behaviour
associated with such important events as Mother’s Day, births and birthdays, engagements,
weddings, graduations and other accomplishments and milestones
the process of gift exchange that takes place between a giver and a recipient
an act of symbolic communication with explicit and implicit meanings ranging from
congratulations, love and regret to obligation and dominance
five gifting subdivisions:
intergroup gifting: one group exchanges gifts with another group (one family and
another)
intercategory gifting: either an individual is giving a gift to a group (single friend
giving a couple an anniversary gift) or a group is giving an individual a gift (friends
chip in and give a friend a joint birthday gift)
intragroup gifting: group gives a gift to itself or its members (an anniversary gift to
ourselves)
interpersonal gifting: occurs between two individuals, a gift giver and a gift receiver
intrapersonal gifting/self-gift/monadic giving: giver and receiver are the same
individual, gift is something special perceived as a treat to oneself
23
Beyond the Decision: Consuming and Possessing
experience of using products and services and the sense of pleasure derived from possessing,
collecting or consuming things and experiences contribute to consumer satisfaction and
overall quality of life
consumption outcomes or experiences affect consumers’ future decision processes
products have special meaning and memories
24
Chapter 5: Consumer motivation

marketing orientation
focuses on the needs of the buyer
implies that the manufacturer will make only what it knows people will buy
production orientation
focuses on the needs of the seller
implies that the manufacturer will try to sell whatever it decides to make
Charles Revson summed up his philosophy by saying: “In the factory, we make cosmetics; in
the store, we sell hope.”
Motivation as a Psychological Force
motivation
the driving force within individuals that impels them to action
is produced by a state of tension which exists as the result of an unfulfilled need
specific goals that consumers wish to achieve and course of action they take to attain
these goals are selected on the basis of their thinking processes (cognition) and
previous learning
needs
innate needs/primary needs: physiological including food, water, air, clothing, shelter
and sex
acquired needs/secondary needs: psychological needs that we learn in response to
our culture or environment including self-esteem, prestige, affection, power and
learning
goals
goals are sought-after results of motivated behaviour
all behaviour is goal-oriented
generic goals: general classes or categories of goals that consumers see as a way to
fulfil their needs
25
product-specific goal: specifically branded products and services that consumers

select for goal fulfilment
individuals set goals on the basis of their personal values and they select means that
they believe will help them achieve their desired goal
the selection of goals

goal selection depends on a
person’s experiences, physical
capital, cultural norms and values,
goal’s accessibility
promotion focus: interested in their
growth and development, have
more hopes and aspirations (ideals),
favour the presence of a positive
outcome
prevention focus: interested in
safety and security, more concerned
with duties and obligations (oughts),
favour the absence of a negative
outcome
extrinsic benefits: financial success,
social status, being attractive to
others
intrinsic benefits: self-acceptance, affiliation, connection with community
interdependence of needs and goals
individuals are usually somewhat more aware of their physiological needs
than they are of their psychological needs
they may subconsciously engage in behaviour that satisfied their
psychological needs
positive and negative motivation
26
positive negative
driving force towards some object or driving force away from some object or
condition condition
may be referred to as needs, wants or
may be referred to as fears or aversions
desires
approach object: behaviour is directed avoidance object: behaviour is directed away
towards from
rational versus emotional motives

rationality
consumers behave rationally by carefully considering all alternatives and
choosing those that give them the greatest utility
consumers select goals based on totally objective criteria (size, weight, price)
emotional motives
imply the selection of goals according to personal or subjective criteria
(pride, fear, affection, status)
do not always maximise utility or satisfaction
The Dynamics of Motivation
needs are never fully satisfied

new needs emerge as old needs are satisfied
success and failure influence goals
individuals who successfully achieve their goals usually set new and higher goals
which raises their level of aspiration
when an individual cannot attain a specific goal or type of goal that he/she
anticipates will satisfy certain needs, behaviour may be directed to substitute goals
failure to achieve a goal often results in feelings of frustration
defence mechanisms that people sometimes adopt to protect their egos from
feelings of failure when they do not attain their goals
aggressions: response to frustration, aggressive behaviour in attempting to
protect self-esteem
rationalisation: inventing plausible reasons for being unable to attain their
goals to resolve frustration
regression: childish and immature behaviour as a reaction to a frustrating
situation
withdrawal: simply withdrawing from the situation to resolve frustration
projection: redefine frustrating situation by projecting blame for his/her own
failures and inabilities on other objects or persons
autism: thinking dominated by needs and emotions, daydreaming or
fantasising enables individual to attain imaginary gratification of unfulfilled
needs
identification: subconsciously identifying with other persons or situations
that they consider relevant
repression: repressing the unsatisfied need, force the need out of their
conscious awareness
multiplicity of needs: a consumer’s behaviour often fulfils more than one need
27
arousal of motives
physiological arousal: bodily needs at any specific moment in time based on the
individual’s physiological condition at the moment
emotional arousal: daydreams (when people are bored or frustrated) may result in
the arousal or stimulation of latent needs
cognitive arousal: random thoughts can lead to cognitive awareness of needs
environmental/situational arousal: set of needs an individual experiences at a
particular time which is often activated by specific cues in the environment
behaviourist school
considers motivation to be a mechanical process
behaviour is the response to a stimulus
elements of conscious thought are ignored
consumer’s cognitive control is limited
he/she does not act but reacts to stimuli in the marketplace
cognitive school
all behaviour is directed at goal achievement
needs and past experiences are reasoned, categorised and
transformed into attitudes and beliefs that act as predispositions to
behaviour
focused on helping the individual satisfy needs and determine
actions that he/she takes to achieve satisfaction
Types and Systems of Needs
Henry Murray’s list

detailed list of psychogenic needs
everyone has the same basic set of needs but individuals differ in their priority
ranking of these needs
Dr Abraham Maslow’s hierarchy of needs
Motivational
28
research
the development of motivational research

foundation for the development of motivational research: Sigmund Freud’s
psychoanalytical theory of personality
unconscious needs or drives are at the heart of human motivation and personality
Dr Ernest Dichter adapted Freud’s techniques to study consumer buying habits
two problems in applying:
psychoanalytical theory was structured for disturbed people whereas
consumer behaviour was interested in explaining the typical consumer
Freudian theory was developed in entirely different social context (19th
century, Vienna) whereas motivational research was introduced in the 1950s
in post-war America
evaluation of motivational research
still regarded as an important tool by marketers who want to gain deeper insights
into consumer behaviour
principal use today is development of new ideas for promotional campaigns, ideas
that can penetrate consumer’s conscious awareness by appealing to unrecognised
needs
basic orientation for new product categories
enables to explore consumer reactions to ideas and advertising copy at an early
stage to avoid costly errors
provide consumer researchers with basic insights that enable them to design
structures, quantitative marketing research studies to be conducted on larger, more
representative samples of consumers
29
Chapter 6: Personality and consumer behaviour

What is personality?
personality is defined as those inner psychological characteristics that both determine and
reflect how a person responds to his/ her environment
inner characteristics are those specific qualities, attributes, traits, factors and mannerisms
that distinguish one individual from other individuals
the nature of personality
personality reflects individual differences
no two individuals are exactly alike because the inner characteristics that
constitute an individual’s personality are a unique combination of factors
useful concept that enables to categorise consumers into different groups on
the basis of one or several traits
personality is consistent and enduring
if marketers know which personality characteristics influence specific
consumer responses they can attempt to appeal to their target group
consumption behaviour varies considerably although personalities are
consistent
personality is only one of a combination of factors that influence how a
consumer behaves
personality can change: an individual’s personality may be altered by major life
events or a gradual maturing process
Theories of Personality
Freudian theory
Id
warehouse of
primitive and
impulsive drives
(basic
physiological
needs)
individual seeks
immediate
satisfaction
without concern for the specific means of satisfaction
Superego
internal expression of society’s moral and ethical codes of conduct
sees that the individual satisfies needs in a socially acceptable fashion
a kind of brake that restraints or inhibits the impulsive forces of the id
Ego
conscious control
functions as an internal monitor that attempts to balance the impulsive
demands of the id and the sociocultural constraints of the superego
30
Freudian theory and ‘product personality’

human drivers are largely unconscious
consumers are primarily unaware of their true reason for buying
neo-Freudian theory
believe that social relationships are fundamental to the formation and development
of personality
Alfred Adler
humans are seeking to attain various rational goals
individual’s efforts to overcome feelings of inferiority
Harry Stack Sullivan
people continuously attempt to establish relationships with others
individual’s efforts to reduce tensions such as anxiety
Karen Horney
impact of child-parent relationships and individual’s desire to conquer
feelings of anxiety
three personality groups
compliant: move towards others (desire to be loved, wanted and
appreciated)
aggressive: move against others (desire to excel and win admiration)
detached: move away from others (desire independence, self-
reliance, self-sufficiency and individualism)
trait theory
focus on the measurement of personality in terms of specific psychological traits
trait: any distinguishing, relatively enduring way in which one individual differs from
another e.g. consumer innovativeness, consumer materialism or consumer
ethnocentrism
Personality and Understanding Consumer Diversity
consumer innovativeness and related personality traits

consumer innovativeness
consumer innovators: those who are likely to be the first to try new products
positive relationship between innovative use of the internet and buying
online
dogmatism
measures the degree of rigidity (versus openness) that individuals display
towards the unfamiliar and towards information that is contrary to their own
established beliefs
marketers have used celebrities and experts in their new-product
advertisements to make it easier for potentially reluctant consumers to
accept the innovation
social character
inner-directedness: consumers tend to rely on their own inner values or
standards in evaluating new products and are likely to be consumer
innovators
other-directedness: consumers tend to look to others for direction on what
is right or wrong, less likely to be consumer innovators
31
need for uniqueness

optimum stimulation level
high optimum stimulation level: greater willingness to take risks, to try new
products, to be innovative, to seek purchase related information, to accept
new retail facilities
low optimum stimulation level: prefer a simple, uncluttered and calm
existence
sensation seeking
variety or novelty seeking
cognitive personality factors
need for cognition
measures a person’s craving for or enjoyment of thinking
high in need for cognition: likely to be responsive to the part of an
advertisement that is rich in product-related information or description
low in need for cognition: likely to be attracted to the background or
peripheral aspects of an advertisement (attractive model, celebrity)
positive relationship between need for cognition and the internet
visualizers versus verbalisers
visualizers
consumers who prefer visual information and products that stress
the visual
more likely to respond to and prefer visual images or messages as
sources of information
marketers stress strong visual dimensions
verbalizers
consumers who prefer written or verbal information and products
more open to and prefer the written word as a way of securing info
marketers raise a question and provide the answer or feature a
detailed description or explanation
from consumer materialism to compulsive consumption
consumer materialism
materialism distinguishes between individuals who regard possessions as
essential to their identities and their lives and those for whom possessions
are secondary
characteristics of materialistic people:
value acquiring and showing off possessions
self-centred and selfish
seek lifestyles full of possessions
many possessions do not give them greater personal satisfaction
fixated consumption behaviour
being fixated with regard to consuming or possessing (collectors, hobbyists)
characteristics:
deep interest in particular product category
willingness to go considerable lengths to secure additional examples
dedication of a considerable amount of discretionary time and
money to searching out the object
32
compulsive consumption behaviour

abnormal behaviour
consumers have an addiction, are out of control, their actions may damage
them or those around them
to control or eliminate compulsive problems generally requires some type of
therapy or clinical treatment
consumer ethnocentrism: responses to foreign-made products
highly ethnocentric: consumers are likely to feel that it is inappropriate or wrong to
purchase foreign-made products because of resulting economic impacts on domestic
economy
non-ethnocentric: consumers tend to evaluate foreign-made products for their
extrinsic characteristics
varies by country and product
Brand Personality
brand personification
tries to recast consumers’ perception of the attributes of a product or service into a
human-like character
many consumers express their inner feelings about products or brands in terms of
their association with known personalities
consumers sometimes develop relationships with a brand

brand zealots: develop a communal relationship with the product and
demonstrate a passion that is typically associated with friends or family
exchange relationships: consumer gets something in return
product personality and gender
endows products or brands with a gender
allows marketers to better select visuals and text for various marketing messages
product personality and geography
consumers may possess a strong geographical association with certain products
employing geography in product name creates a geographic product personality
consumer’s memory of the brand is associated with geography
geographical association may be familiar, unfamiliar or even fictitious
33
personality and colour

blue commands respect, authority, appeals particularly to females
yellow caution, novelty, temporary, warmth
green secure, natural, relaxed or easy-going, living things
red human, exciting, hot, passionate, strong
orange powerful, affordable, informal
brown informal, relaxed, masculine, nature
goodness, purity, chastity, cleanliness, delicacy, refinement,
white
formality
black sophistication, power, authority, mystery
combination black communicates that product is carefully engineered, high-tech and
and white sophisticated in design
silver, gold, platinum regal, wealthy, stately
Self and Self-Image
one or multiple selves

historically individuals have been thought to have a single self-image
consumers have multiple selves
consumer is likely to act quite differently with different people and in different
situations
a normal person is likely to display different personalities in different situations or
social roles
marketers should target their products and services to consumers within the context
of a particular “self”
the make-up of the self-image
each individual has an image of himself as a certain kind of person with
certain skills, habits, possessions, relationships and ways of behaving
products and brands have symbolic value for individuals
consumers attempt to preserve or enhance their self-images by selecting
products and brands with images or personalities that are congruent with
their own self-images and avoiding products that are not
kinds of self-image:
actual self-image: how consumers see themselves
ideal self-image: how consumers would like to see themselves
social self-image: how consumers feel others see them
ideal social self-image: how consumers would like others to see them
two other types of self-images
expected self: how consumers expect to see themselves at some future time
ought-to self: consists of traits or characteristics that an individual believes it
is his/her duty or obligation to possess
the extended self
interrelationship between consumers’ self-images and their possessions
measurement instruments designed to reflect how particular possessions might
become part of extended self
human emotions that are connected to valued possessions are considered
extensions of the self
34
possessions can extend the self in a number of ways:

actually: allowing to do things that otherwise would be very difficult or
impossible to accomplish
symbolically: making the person feel better or bigger
conferring status or rank (ownership of a masterpiece of art)
bestowing feelings of immortality: leaving valued possessions to young
family members
endowing with magical powers (grandfathers amulet)
altering the self
consumers may wish to change themselves to become a different or improved self
modify appearance (sunglasses, cosmetics, tattoos)
personal vanity: acting self-important, self-interested or admiring one’s own
appearance or achievements
self-monitoring: how well a person is guided by situational cues regarding social
appropriateness
Virtual Personality or Self
internet, online chat rooms, participants may never get to see each other
creates an opportunity for chat room participants to try out new identities or to change their
identities while online
provides individuals with the opportunity to try on different personalities or identities
if they fit, individuals may decide to keep the new personality in favour of his/her old
personality
35
Chapter 7: Consumer perception

Elements of perception
perception:
the process by which an individual selects, organises and interprets stimuli into a
meaningful and coherent picture of the world
how we see the world around us
sensation
the immediate and direct response of the sensory organs to stimuli
a stimulus is any unit of input to any of the senses (see, hear, smell, taste and feel)
human organs receive sensory inputs
functions are called into play, either singly or in combination in the evaluation and
use of most consumer products
human sensitivity refers to the experience of sensation
83% of all communication today appeal to sight
the absolute threshold
the lowest level at which an individual can experience a sensation
the point at which a person can detect a difference between something and nothing
adaptation: as our exposure to the stimulus increases we notice it less
concern of marketers: consumers will get used to current print advertisements and
commercials that they will no longer see them
the differential threshold/just noticeable difference
the minimal difference that can be detected between two similar stimuli
Weber’s law: the stronger the initial stimulus, the greater the additional intensity
needed for the second stimulus to be perceived as different
marketing applications of the JND
remain below JND: so that negative changes (reductions in size or quality,
increase in price) are not readily discernible to the public
at or just above the JND: so that improvements (updated packaging, larger
size, lower price) are very apparent to consumers without being wastefully
extravagant
subliminal perception
people are stimulated below their level of conscious awareness
stimuli that are too weak or too brief to be consciously seen or heard may
nevertheless be strong enough to be perceived by one or more receptor cells
evaluating the effectiveness of subliminal persuasion
one theory claims that constant repetition of very weak stimuli has an
incremental effect that enables such stimuli to build response strength over
many presentations
another theory is based on the theory that subliminal sexual stimuli arouse
unconscious sexual motivations
no evidence that subliminal advertising persuades people to buy goods or
services
subliminal stimuli may influence affective reactions
36
Dynamics of perception
perception: the study of what we subconsciously add to or subtract from raw sensory inputs
to produce or own private picture of the world
perception is the result of two kinds of inputs:
physical stimuli: from the outside environment
previous experience: provided by individual in form of certain predispositions
(expectations, motives, learning)
each individuals perceptions are unique
individuals are very selective as to which stimuli they recognize, they subconsciously organize
the stimuli they do recognize according to widely help psychological principles and interpret
them subjectively in accordance with their personal needs, expectation and experiences
perceptual selection
consumers subconsciously exercise a great deal of selectivity as to which aspects of
the environment they perceive
which stimuli gets selected depends on two factors in addition to the nature of the
stimulus itself:
consumers’ previous experience affects their expectations
motives at the time (needs, desires, interests)
nature of stimulus
contrast
extreme attention getting devices
degree of differentiation
differentiation of packaging to ensure rapid consumer perception
expectations
people usually see what they expect to see and what they expect to see is
usually based on familiarity, previous experience or preconditioned set
stimuli that conflict sharply with expectations often receive more attention
than those that conform to expectations
motives
people tend to perceive things they need or want
the stronger the need the greater the tendency to ignore unrelated stimuli
decreased awareness of stimuli that are irrelevant to those needs
selective perception: based on the interaction of expectations and motives with the
stimulus itself
selective exposure
consumers seek out messages that they find pleasant or to which
they are sympathetic, selectively expose themselves to ads that
reassure them
actively avoid painful or threatening messages
selective attention
higher awareness of stimuli that meet needs or interests and
minimal awareness of irrelevant ones
people vary in the kinds of info in which they are interested and the
form of message and type of medium they prefer
37
perceptual defence: screen out stimuli that are psychologically threatening,

even though exposure has already taken place
perceptual blocking: self-protection from bombarding stimuli by tuning out,
blocking such stimuli from conscious awareness
perceptual organisation/Gestalt psychology
people tend to organise numerous stimuli they select from
the environment into groups
figure and ground
stimuli that contrast with their environment are
more likely to be noticed
the figure is perceived more clearly because in
contrast to its ground it appears to be well defined,
solid and in the forefront
grouping: individuals tend to group stimuli so that they
form a unified picture or impression
closure: organizing perceptions so that they form a complete picture
perceptual interpretation
perception is a personal phenomenon
interpretation of stimuli is uniquely individual
perceptual distortion
physical appearances: tendency to attribute the qualities associated with
certain people to others who may resemble them
stereotypes: tendency to carry pictures in mind of the meanings of various
kinds of stimuli that serve as expectations
first impressions: first impressions tend to be lasting
jumping to conclusions: before examining all the relevant evidence
halo effect: evaluation of multiple objects on the basis of the evaluation of
just one dimension
Consumer imagery
product positioning
image that a product has in the mind of the consumer
most important to the ultimate success of a product than its actual characteristics
core: unique position that the product occupies in the mind of the consumer
stress the benefits that the brand provides rather than product’s physical features
essence of the marketing mix
complements the company’s definition of the competition, its segmentation strategy
and its selection of target markets
conveys concept or meaning of product in terms of how it fulfils a consumer need
result: distinctive brand image on which consumers rely in making product choices
positive brand image:
leads to consumer loyalty, positive beliefs about brand value and willingness
to search for the brand
promotes consumer interest in future brand promotion
affects consumer beliefs about its brand’s attributes and the prices consumers are
willing to pay
38
product repositioning
marketer may be forces to reposition product in response to market events
(competitor cutting into the brand’s market share, too many competitors stressing
the same attribute)
perceptual mapping
helps marketers
to determine just
how their
products appear
to consumers in
relation to
competitive
brands
enables them to
see gaps in the
positioning of all
brands in the
product class and
to identify areas
in which
consumers needs
are not being
adequately met
positioning of services
marketing objective is to enable the consumer to link a specific image with a specific
brand name
provide customers with visual images and tangible reminders of the service offerings
name must be distinctive, memorable and relevant to the service it features
perceived price
high, low or fair
strong influence on both purchase intentions and purchase satisfaction
perceptions of price unfairness affect consumers’ perceptions of product value and
their willingness to patronise a shop or a service
three pricing strategies focused on perceived value
satisfaction-based pricing
recognizing and reducing customer’s perceptions of uncertainty
e.g. service guarantees, benefit-driven pricing, flat-rate pricing
relationship pricing
encouraging long-term relationships with company that customers
view as beneficial
e.g. long-term contracts, price bundling
efficiency pricing
sharing with customers the cost sayings that the company has
achieved by understanding, managing and reducing the costs of
providing the service
e.g. cost-leader pricing
39
reference prices
products advertised as “on sale” tend to create enhanced customer
perceptions of savings and value
reference price: any price that a consumer uses as a basis for comparison in
judging another price
external:
advertisement offering a lower sales price to persuade the
consumer that the product advertised is a really good buy
e.g. “sold elsewhere at …”
internal: those prices retrieved by the consumer from memory
consumers’ price reference points include past prices, competitors’ prices
and the cost of goods sold
two types of utility that are associated with consumer purchases
acquisition utility
consumer’s perceived economic gain or loss associated with
a purchase
a function of product utility and purchase price
transaction utility
the perceived pleasure or displeasure associated with the
financial aspect of the purchase
is determined by the difference between the internal
reference price and the purchase price
can be external or internal perceived quality
perceived quality of products
intrinsic cues
physical characteristics of product itself e.g. size, colour, flavour,
aroma
enable consumer to justify their product decision as being rational or
objective
extrinsic cues
e.g. consumers often cannot differentiate among various cola drinks,
they base their preferences on packaging, pricing and advertising
e.g. price, brand image, manufacturer’s image, retail store image,
country of origin
perceived quality of services
distinctive characteristics of services: intangible, variable, perishable,
produced and consumed simultaneously
consumers are unable to compare competing services side by side, which is
why they rely on extrinsic cues to evaluate them
actual quality of services can vary from day to day, from employee to
employee and from customer to customer, which results in service
standardisation
peak hours play a role
predicted service: the sum total of a consumer’s expectations of a service
before receiving it
40
price/quality relationship
perceived product value: trade-off between the product’s perceived benefits and the
perceived sacrifice (monetary and non-monetary) necessary to acquire it
consumers rely on price as an indicator of product quality
consumer characteristics (e.g. age, income) affect perception of value
consumers rely on well-known (expensive) brand name as an indicator of quality
without actually relying directly on price per se
shop image
manufacturers’ image
Perceived risk
41
perceived risk: the uncertainty that consumers face when they cannot foresee the
consequences of their purchase decisions
perception of risk varies
narrow categorisers
high-risk perceivers
limit their choices to a few safe alternatives
broad categorisers
high-risk consumption activities e.g. smoking
have lower perceived risk
make their choices from a much wider range of alternatives
types of perceived risks
type explanation example
functional risk that the product will not Can the new PDA operate a full week
risk perform as expected without needing to be recharged?
risk to self and others that Is a mobile phone really safe or does
physical risk
the product may pose it emit harmful radiation?
Will a new and cheaper model of a
risk that the product will not
financial risk plasma tv monitor become available
be worth its cost
six months from now?
risk that a poor product
Will my classmates laugh at my purple
social risk choice may result in social
Mohawk haircut?
embarrassment
risk that a poor product Will I be embarrassed when I invite
psychological
choice will bruise the friends to listen to music on my five-
risk
consumer’s ego year-old stereo?
risk that the time spent in
product search may be Will I have to go through the shopping
time risk
wasted if the product does effort all over again?
not perform as expected
how consumers handle risk

consumers seek information
consumers are brand loyal
consumers select by brand image
consumers rely on store image
consumers buy the most expensive model
consumers seek reassurance through money-back guarantees, government and
private laboratory test results, warranties and pre-purchase trials
Ethics and consumer perception
ethical issues: how marketers use the knowledge of perception to manipulate consumers
marketers manipulate consumers’ interpretations of marketing stimuli through the context
in which they are featured
Chapter 8: Consumer learning
42
the reason that marketers are concerned with how individuals learn: they are vitally
interested in teaching them their roles as consumers, about products, product attributes and
their potential benefits
interested in how effectively they have taught consumers to prefer their brands and to
differentiate their products from competitive offerings
based on communicating with consumers directly (advertisements) or indirectly (product
appearance, packaging, price, distribution channels)
two major schools of thought concerning the learning process
behavioural theories: focus almost exclusively on observable behaviours that occur
as the result of exposure to stimuli
cognitive theories: view learning as a function of purely mental processes
Elements of consumer learning
from a marketing perspective consumer learning is the process by which individuals acquire
the purchase and consumption knowledge and experience that they can apply to future
related behaviour
in order for learning to occur certain basic elements must be present including
motivation
based on needs and goals
degree of relevance (of something to someone) or involvement determines
the consumer’s level of motivation to search for knowledge or information
about a product or service
cues
are the stimuli that give direction to the motives that stimulate learning
cue or stimulus suggests a specific way to satisfy a salient motive
e.g. price, styling, packaging, advertising or shop displays
response
how individuals react to a drive or cue (how they behave) constitutes their
response
a need or motive may evoke a whole variety of responses
cues provide some direction but there are many cues competing for the
consumer’s attention, which response the consumer makes depends heavily
on previous learning which depends on how related responses were
reinforces previously
reinforcement: increases the likelihood that a specific response will occur in the
future as the result of particular cues or stimuli
Behavioural learning theories
sometimes referred to as stimulus-response theories because they are based on the premise
that observable responses to specific external stimuli signal that learning has taken place
when one acts (responds) in a predictable way to a stimulus, he is said to have learned
concerned with the inputs and outcomes of learning/the stimuli that consumers select from
the environment and the observable behaviours that result
classical conditioning
43
Ivan Pavlov: conditioned learning results when a stimulus that is paired with another
stimulus that elicits a known response serves to produce the same response when
used alone
cognitive associative learning

classical conditioning is seen as cognitive associative learning rather than
being a reflexive action, not the acquisition of new reflexes but the
acquisition of new knowledge about the world
according to neo-Pavlovian conditioning optimal conditioning requires:
forward conditioning
repeated pairings of the conditioned stimulus (CS) and the
unconditioned stimulus (US)
a CS and a US that logically belong together
a CS that is novel and unfamiliar and
a US that is biologically or symbolically salient
44
consumer can be viewed as an information seeker who uses logical and

perceptual relations among events along with his own preconceptions to
form a sophisticated representation of the world
conditioning is the learning that results from exposure to relationships
among events in the environment
strategic applications of classical conditioning
repetition
increases the strength of the association between a CS and an US
and slows the process of forgetting
advertising wear-out
at some point an individual can become satiated with
numerous exposures and attention and retention will decline
con be moderated by varying the advertising message and
using cosmetic variations
substantive variations: changes in advertising content across
different versions of an advertisement
three-hit theory: just three exposures to an advertisement are
needed: one to make consumers aware, a second to show
consumers its relevance and a third to remind them of its benefits
stimulus generalisation: making same response to slightly different stimuli
product line, form and category extensions: adding related products
to an already established brand because the new product is more
likely to be adopted
family branding: marketing a whole line of company products under
the same brand name
licensing
allowing a well-known brand name to be affixed to products
of another manufacturer
names of designers, manufacturers, celebrities, corporations
or cartoon characters are attached to a variety of products
enabling the licensees to achieve instant recognition and
implied quality for the licensed products
stimulus discrimination
the opposite of stimulus generalisation
results in the selection of a specific stimulus from among similar
stimuli
positioning
the key to stimulus discrimination
the image/position of a product in the mind of the consumer
is critical to its success
want products to be recognised as uniquely fulfilling
consumers’ needs
product differentiation: successfully differentiate brands on an
attribute that may actually be irrelevant to creating the implied
benefit, such as a non-contributing ingredient or a colour
45
instrumental conditioning
requires a link between a stimulus and a response
the stimulus that results in the most satisfactory response is the one that is learned
learning occurs through a trial-and-error process
B. F. Skinner
most individual learning occurs in a controlled environment in which
individuals are rewarded for choosing an appropriate behaviour
a favourable experience is instrumental in teaching the individual to repeat a
specific behaviour
reinforcement of behaviour
positive reinforcement: events that strengthen the likelihood of a specific
response by adding something to the situation
negative reinforcement
removes something from the situation which also serves to
encourage specific behaviour
e.g. fear appeals in advertising messages
the consumer is encouraged to avoid the negative consequences by
buying the advertised product
extinction
when a learned response is no longer reinforced, it diminishes to the
point of extinction
when behaviour is no longer reinforced, it is unlearned
forgetting
behaviour is unlearned because of lack of use rather than lack of
reinforcement
often related to the passage of time
strategic applications of instrumental conditioning
customer satisfaction (reinforcement)
objective of all marketing efforts: to maximise customer satisfaction
46
marketers must be certain to provide the best possible product for

the money and to avoid raising consumer expectations for product
performance beyond what the product can deliver
relationship marketing
developing a close personalised relationship with customers
form of non-product reinforcement
reinforcement schedules
product quality must be consistently high and provide
customer satisfaction with each use for desired consumer
behaviour to continue
total (continuous) reinforcement: provided every time
systematic (fixed ratio) reinforcement: provided every ‘nth’
time the product is purchased
random (variable ratio) reinforcement: on a random basis or
on an average frequency basis
shaping
reinforcement performed before the desired consumer
behaviour actually takes place
increases the probability that certain behaviour will occur
massed versus distributed learning
distributed learning massed learning
learning schedule spread out over a period of time “bunched up” all at once
usually results in learning that persists longer produced more initial learning
advertisers want an immediate
goal is long-term repeat buying on a regular basis
impact
is relatively immune to extinction
modelling/observational learning/vicarious learning
the process through which individuals learn behaviour by observing the behaviour of
others and the consequence of such behaviour
considerable amount of learning takes place in the absence of direct reinforcement
consumers often observe how other behave in response to certain situations
(stimuli) and the ensuing results (reinforcement) that occur and they imitate (model)
the positively reinforced behaviour when faced with similar situations
role models are usually people they admire because of such traits as appearance,
accomplishments, skills and social class
basis of much of today’s advertising
Cognitive learning theory
cognitive learning
learning takes place as a result of consumer thinking and problem-solving
learning is based on mental activity
the kind of learning most characteristic of human beings is problem-solving which
enables individuals to gain some control over their environment
learning involved complex mental processing of information
emphasises the role of motivation and mental processes in producing a desired
response
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information processing
imagery: the ability to form mental images, influences the ability to recall info
how consumers store, retain and retrieve information
central importance: human memory
information processing occurs in stages, there are separate storehouses in
memory: a sensory store, a short-term store and a long-term store
sensory store
all data come to us through our senses
each sense receives a fragmented piece of information and transmits
it to the brain in parallel where the perceptions are synchronised and
perceived as a single image
input lasts for 1 or 2 seconds in the mind’s sensory store
if it is not processes, it is lost immediately
short-term store/working memory
information is processed and held for just a brief period
if information undergoes rehearsal, it is then transferred to the long-
term store
transfer process takes from 2 to 10 seconds
if information is not rehearsed and transferred it is lost in 30 seconds
storage is limited to 4 or 5 items
long-term store
retains information for relatively extended periods of time
data lasts for days, weeks or even years
rehearsal and encoding

failure to rehearse an input can result in fading and eventual loss of
the information
information can be lost because of competition of attention
the purpose of rehearsal is to hold information in short-term long
enough for encoding to take place
encoding: the process by which we select a word or visual image to
represent a perceived object
learning a picture takes less time than learning verbal information
information overload: consumers are presented with too much
information and may encounter difficulty in encoding and storing it
retention
information is constantly organised and reorganised as new links
between chunks of information are forged
activation: the process of gaining more knowledge about a subject,
expanding ones network of relationships and searching for additional
information
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schema: the total package of associations brought to mind when a

cue is activated
chunking: consumers recode what they have already encoded to
include larger amounts of information
information is stored in two ways
episodically: by the order in which it is acquired
semantically: according to significant concepts
retrieval: process by which we recover information from long-term storage
interference
the greater the number of competitive advertisements in a product
category, the lower the recall of brand claims in a specific ad
confusion with competing advertisements, make information
retrieval difficult
limited and extensive information processing
involvement theory
the right and the left hemispheres of the brain specialise in the kinds of information
they process
left hemisphere right hemisphere
primarily responsible for cognitive activities
concerned with non-verbal, timeless,
such as reading, speaking and attributional
pictorial and holistic informations
information processing
is emotional, metaphoric, impulsive
is rational, active and realistic
and intuitive
involvement theory and media strategy
there is high- (print ads, internet) and low-involvement (tv) media
right-brain theory of passive processing of information is consistent with
classical conditioning
stresses the importance of the visual component of advertising, including the
creative use of symbols
involvement theory and consumer relevance
there are high- and low-involvement consumers
there are high- and low-involvement purchases
consumer’s level of involvement depends on the degree of personal
relevance of the product (e.g. in terms of perceived risk)
narrow categorisers: highly involved consumers find fewer brands acceptable
broad categorisers: uninvolved consumers are likely to be receptive to a
greater number of advertising messages and will consider more brands
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central and peripheral routes to persuasion

illustrates the concepts of extensive and limited problem-solving for high-
and-low-involvement purchase situations
for high-involvement purchases, the central route to persuasion which
requires considered thought and cognitive processing is likely to be the most
effective marketing strategy
for low-involvement purchases, the peripheral route to persuasion is likely to
be more effective
the elaboration likelihood model
level of involvement during message processing is a critical factor in
determining which route to persuasion is likely to be effective
as the message becomes more personally relevant people are more
willing to expend the cognitive effort required to process the
message arguments
when involvement is high, consumers follow the central route and
base their attitudes or choices on the message arguments
when involvement is low, they follow the peripheral route and rely
more heavily on other message elements (spokesperson,
background music) to from attitudes or make product choices
measures of involvement
semantic differential scale: ranking different aspects
personal involvement inventory: list of product aspects
Measures of consumer learning
recognition and recall measures: determine whether consumers remember seeing an

advertisement, the extent to which they have read it or seen it and can recall its content,
their resulting attitudes towards the product and the brand and their purchase intentions
cognitive responses to advertising: the degree to which consumers accurately
comprehend the intended advertising message
attitudinal and behavioural measures of brand loyalty
attitudinal measures: concerned with consumers’ overall feelings about the
product and the brand and their purchase intentions
behavioural measures: based on observable responses to promotional
stimuli
brand equity: the value inherent in a well-known brand name

megabrands: well-known brand names e.g. Coca Cola, Apple, Nike
co-branding: two brand names are features on a single product
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Chapter 9: Consumer attitude formation and change

What are attitudes?
attitudes are not directly observable but must be inferred from what people say or do
attitude: a learned predisposition to behave in a consistently favourable or unfavourable way
with respect to a given object
the attitude object: in conducting attitude research consumers tend to be object specific
attitudes are learned predispositions
attitudes are learned
attitudes relevant to purchase behaviour are formed as a result of direct experience
attitudes have a motivational quality
attitudes have consistency
attitudes are relatively consistent with the behaviour they reflect
are not necessarily permanent, they do change
when consumers are free to act as they wish, they are anticipated that their actions
will be consistent with their attitudes
attitudes occur within a situation
attitudes occur within and are affected by the situation
individuals can have a variety of attitudes towards a particular behaviour each
corresponding to a particular situation
Structural models of attitudes
tricomponent attitude model

the cognitive component
the knowledge and perceptions that
are acquired by a combination of
direct experience with the attitude
object and related information from
various sources
commonly take the form of beliefs
the affective component
a consumer’s emotions or feelings
about a particular product or brand
emotions and feelings are frequently treated by consumer researchers as
primarily evaluative in nature
e.g. evaluative (affective) scale or affective response scale
experiences also manifest themselves as emotionally charged states (e.g.
happiness, sadness, shame, disgust, anger, distress, guilt or surprise)
the conative component
likelihood or tendency that an individual will undertake a specific action or
behave in a particular way with regard to the attitude object
expression of the consumer’s intention to buy
e.g. intention-to-buy scale
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multi-attribute attitude models

the attitude towards object model
especially suitable for measuring attitudes towards a product category or
specific brand
consumer generally have favourable attitudes towards those brand that they
believe have an adequate level of attributes that they evaluate as positive
the attribute towards behaviour model
the individual’s attitude towards behaving or acting with respect to an object
rather than the attitude towards the object itself
corresponds somewhat more closely to actual behaviour than does the
attitude towards object model
the theory of reasoned action model
the theory of planned behaviour model

extension of the theory of reasoned action
includes perceived behavioural control: the consumer’s perception whether
the behaviour is in his control
theory of trying to consume model: designed to account for the cases in which the action or
outcome is not certain but instead reflects the consumer’s intention to consume
attitude towards the ad models
understanding the impact of advertising or some other promotion on consumer
attitudes towards particular products or brands
positive relationship between attitude towards the advertisement and purchase
intention for each
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Attitude formation
how attitudes are learned

attitude formation
the shift from no attitude to an attitude
the result of learning
consumers often purchase new products associated with a favourable brand name
sometimes attitudes follow the purchase and consumption of a product
in situations in which consumers seek to solve a problem or satisfy a need, they are
likely to form attitudes about products on the basis of information exposure and
their own cognition (knowledge and beliefs)
sources of influence on attitude formation: personal experience, influence of family and
friends, direct marketing and mass media
personality factors
individuals with a high need for cognition (crave info) are likely to form positive
attitudes in response to ads or direct mail that are rich in product-related info
consumers relatively low in need for cognition are more likely to form positive
attitudes in response to ads that feature an attractive model or well-known celebrity
attitudes towards new products and consumption situations are strongly influences
by specific personality characteristics of consumers
Strategies of attitude change
changing the basic motivational function (to make particular needs prominent)
the utilitarian function
attitude because of brand’s utility
when a product has been useful or helpful in the past, attitudes towards it
tend to be favourable
a way of changing attitudes: showing people that it can serve a utilitarian
purpose that they may not have considered
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the ego-defensive function

most people want to protect their self-images from inner feelings of doubt,
replace their uncertainty with a sense of security and personal confidence
by acknowledging this need, the relevance to consumers and the likelihood
of a favourable attitude change may be increased
the value-expressive function
attitudes are an expression or reflection of the consumer’s general values,
lifestyle and outlook
by knowing target consumers’ attitudes, marketers can better anticipate
their values, lifestyle or outlook and can reflect these characteristics in their
advertising and direct-marketing efforts
the knowledge function
individuals generally have a strong need to know and understand the people
and things they encounter
an important characteristic of such ads is the appeal and usefulness to
consumers’ need to know
combining several functions
associating the product with a special group, event or cause
possible to alter attitudes towards products, services and brands by pointing out
their relationship to particular social groups, events or causes
e.g. companies mentioning in their ads that they sponsor or give to charity
resolving two conflicting attitudes
altering components of the multi-attribute model
changing the relative evaluation of attributes: when a product category is naturally
divided according to distinct product features or benefits (e.g. regular coke and diet
coke), marketers usually have an opportunity to persuade consumers to cross over to
shift their favourable attitudes towards another version of the product
changing beliefs or perceptions about the brand itself
adding either an attitude that has previously been ignored or one that represents an
improvement or technological innovation
changing the overall brand rating
alter consumers’ assessment of the brand without attempting to improve or
change their evaluation of any brand attribute
e.g. “this is the largest-selling brand”, “the one all others try to imitate”
changing beliefs about competitors’ brands
the elaboration likelihood model
consumer attitudes are changed by two distinctly different routes to persuasion:
central route to persuasion peripheral route to persuasion
relevant to attitude change when motivation or consumer’s motivation or
ability to assess the attitude object is high assessment skills are low
attitude change occurs because consumer learning occurs without the
actively seeks out info relevant to attitude object consumer focusing on info
consumers are willing to exert the effort to attitude change as an outcome of
comprehend, learn or evaluate info secondary inducements
more persistent
dual mediation model: adds a link between attitude towards ads and brand cognition
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Behaviour can precede or follow attitude formation
cognitive dissonance theory

discomfort or dissonance occur when a consumer holds conflicting thoughts about a
belief or an attitude object
post-purchase dissonance: the feeling of cognitive dissonance when thinking of the
unique, positive qualities of the brands not selected after purchase decision
marketing strategies to reduce post-purchase dissonance
attribution theory
explain how people assign causality to events on the basis of either their own
behaviour or the behaviour of others
the process of making inferences about one’s own or another’s behaviour is a major
component of attitude formation and change
self-perception theory
individual’s inferences or judgements as to the causes of their own
behaviour
suggests that attitudes develop as consumers look at and make judgements
about their own behaviour
internal and external attributions
consumers are likely to accept credit personally for success (internal) and to
credit failure to others or to outside events (external attribution)
foot-in-the-door technique
individuals look at their prior behaviour and conclude that they are the kind
of person who says yes to such requests, which increases the likelihood that
they will agree to similar more substantial requests
contrast door-in-the-face technique: a large costly first request that is
probably refused is followed by a second more realistic less costly request
attributions towards others influences responds
attributions towards things: judging product performance leads consumers to form
product attributions
how we test our attributions
distinctiveness: consumer attributes an action to a particular product if the
action occurs when the product is present and does not occur in its absence
consistency over time: whenever the person or product is present, the
consumer’s interference or reaction must be the same
consistency over modality: the inference or reaction must be the same even
when the situation in which it occurs varies
consensus: the action is perceived in the same way by other consumers
55
Chapter 10: Communication and consumer behaviour

Components of communication
communication: the transmission of a message from a sender to a receiver via a medium (or
channel) of transmission
furthermore includes feedback
the sender
formal or informal
consumers often rely on informal communication sources in making purchase
decisions because the sender won’t gain from subsequent actions
marketers should stress positive word-of-mouth communication
the receiver
in marketing communications a targeted prospect or a customer
intermediary and unintended audiences may receive marketer’s communications
the medium
impersonal (mass medium) or interpersonal (conversation with salesperson)
mass media: print (newspaper), broadcast (radio, tv) or electronic (internet)
the message
verbal (spoken or written) or non-verbal (photo, illustration or symbol)
verbal message usually contains more specific product info
a combination provides more info to receiver than either would alone
non-verbal info takes place in both interpersonal and impersonal channels and often
takes the form of symbolic communication
feedback: permits the sender to reinforce, change or modify the message to ensure that it is
understood in the intended way
The communications process
the message initiator (source)

credibility (the extent to which you can believe in the source) of informal sources
friends, neighbours and relatives
strong influence on receiver’s behaviour because they are perceived as
having nothing to gain from a product transaction that they recommend
opinion leaders: informal communication sources
credibility of formal sources
neutral formal sources have greater credibility than commercial sources
because they are perceived to be more objective
consumers recognise profit-oriented intentions of commercial sources, they
judge on past performance, reputation, image and quality
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credibility of spokespeople and endorsers

pitchman who appears in person or in a commercial or ad has major
influence on message credibility
increasing use of celebrities to promote products
effectiveness of spokesperson is related to the message itself
synergy between endorser and type of product advertised is important
endorsers who have similar demographic characteristics to the target
audience are viewed as more credible and persuasive
endorser’s credibility is not a substitute for corporate credibility
specific wording of the endorsement should lie within the competence of the
spokesperson
message credibility
reputation of the retailer has influence on message credibility
reputation of medium that carries the ad enhances the credibility of the
advertiser
consumer’s previous experience with the product or retailer has major
impact on credibility of the message
effects of time on source credibility: the sleeper effect
persuasive effect of high-credibility sources do not endure over time
sleeper effect: both positive and negative credibility effects tend to
disappear after six weeks or so
consumers simply forget the source of the message faster than they forgot
the message itself
reintroduction of the same message by the source serves to job the
audience’s memory and the original effect manifests itself again
the target audience (receivers)
receivers decode messages on the basis of personal experiences and characteristics
personal characteristics and comprehension
personal characteristics influence the accuracy with which the individual
decodes a message
demographics, sociocultural membership, lifestyle
personality, attitudes, prior learning
perception, expectations, motivation, past experience
involvement and congruency: level of involvement plays key role in how much
attention is paid to message and how carefully it is decoded
consumer mood affects the way in which an ad is perceived, recalled and acted upon
barriers to communication
selective exposure to messages
consumers selectively perceive ad messages and tend to ignore
advertisements that have no special interest or relevance to them
technology provides consumers with increasingly sophisticated
means to control their exposure to media
psychological noise
competing advertising messages or distracting thoughts
strategies to overcome psychological noise: repetition, contrast,
teasers, customised ads
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feedback – the receiver’s response

the ultimate test of marketing communications is the receiver’s response
essential for the sender to obtain feedback as promptly and accurately as possible
interpersonal communications: verbal and non-verbal cues
mass communications feedback: resulting action of target audience, degree of
customer satisfaction
Designing persuasive (convincing) communications
communications strategy: establishing primary communication objectives

target audience
selecting the appropriate audience
segmentation enables sender to create specific messages for each target group and
to run them in specific media that are seen, heard and read by the target group
media strategy
placement of ads in a specific media read, viewed or heard by each target audience
consumer profile includes specific media they read or watch
cost-effective media choice is one that matches the consumer profile to a medium’s
audience profile
message strategies
the message is the thought, idea, attitude, image or other info that the sender
wishes to convey to the intended audience
the sender must design a message strategy through words and/or pictures that will
be perceived and accurately interpreted (decoded) by the target audience
three personality types:
righteous buyer: looks to recommendations from independent sources
social buyer: relies on recommendations of friends or celebrities
pragmatic buyer: looks for the best value for money
involvement theory
individuals are more likely to devote active cognitive effort to evaluating the
pros and cons of a product in a high-involvement purchase situation and
more likely to focus on peripheral message cues in low-involvement
situations
for high-involvement products marketers should follow the central route to
persuasion (presenting ads with strong, well-documented, issue-related
arguments that encourage cognitive processing)
when involvement is low marketers should follow the peripheral route to
persuasion (emphasising non-content visual or symbolic material that
provide the consumer with pleasant, indirect associations with the product
and provoke favourable inferences about its merits)
message structure and presentation
resonance
wordplay often used to create a double meaning used in combination with a
relevant picture
improves the change that the ad will be noticed and create favourable and
lasting impressions
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message framing
positive message framing: stressing the benefits to be gained by using a
specific product
negative message: stressing the benefits to be lost by not using the product
one-sided versus two-sided messages
one-sided/supportive two-sided/refutational
telling the good points about product also mentioning the bad points
pretending product was the only of its kind acknowledge competing products
audience is friendly, initially favours the audience is critical, unfriendly, well-
communicator’s position, it is not likely to educated and it is likely to hear
hear opposing argument opposing claims
stresses only favourable info tend to be more credible
comparative advertising
a marketer claims product superiority for its brand over one or more
explicitly named or implicitly identified competitor
on an overall basis or on selected product attributes
order effects
the order in which a message is presented affects audience receptivity
first and last are more likely to be retained in the audience’s memory than
those in between
the position of a commercial in a commercial pod can be critical
order is important in listing product benefits within an ad
repetition: affects persuasion, advertisement recall, brand-name recall and brand
preferences
advertising appeals
fear sex
humour audience participation
abrasive advertising
(unpleasant or annoying)
Marketing communication and ethics
precision targeting
consumer’s loss of privacy is an increasingly problematic ethical issue
narrowcasting: a technique that allows to send very directed messages to very small
audiences on an ongoing basis
enables the compilation of extremely specialised lists of consumers
ethical issue of targeting and manipulating consumers who are less capable of
making sound consumption decisions
the contents of promotional messages
accuracy of info provided, impact of values portrayed in ads, potential misuse of
persuasive abilities of promotional messages
potential manipulative impact of promotional messages on children
impact of promotional messages on societal values must be considered
repeated exposure to very thin ideal figures in promotions leads to negative self-
perceptions and is partially responsible for increase in eating-related disorders
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Part 3: Consumers in their social and

cultural settings
Chapter 11: Reference groups and family influences
What is a group?
group: two or more people who interact to accomplish either individual or mutual goals
membership group: a group to which a person either belongs or for membership of which
he/she would qualify
symbolic group: groups in which an individual is not likely to receive membership, despite
acting like a member by adopting the group’s values, attitudes and behaviour
Understanding the power of reference groups
reference group: any person or group that serves as a point of comparison/reference for an
individual in forming either general or specific values and attitudes or a specific guide for
behaviour
reference group from a marketing perspective: groups that serve as frames of reference for
individuals in their purchase or consumption decisions
normative reference groups: reference groups that influence general or broadly defined
values or behaviour
comparative reference groups: reference groups that serve as benchmarks for specific or
narrowly defined attitudes or behaviour
a broadened perspective on reference groups
major consumer reference groups: individual, family, friends, social class, selected
subcultures, one’s own culture, other cultures
indirect reference groups: stars, sports heroes, political leaders, tv personalities or
well-dressed ad interesting-looking people in the street
factors that affect reference group influence
information and experience: an individual who has experience with a product can
easily obtain full info about it and is less likely to be influenced by the advice of
others
credibility, attractiveness and power of the reference group
different reference groups may influence the beliefs, attitudes and behaviour
of an individual at different points in time or under different circumstances
individuals are likely to be persuaded by those whom they consider
trustworthy and knowledgeable
conspicuousness (noticeability) of the product
reference groups and consumer conformity
some marketers are interested in the ability of reference groups to change
consumer attitudes and behaviour by encouraging conformity
other brands may wish for consumers to strike out and be different
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Selected consumer-related reference groups
friendship groups
informal groups are usually unstructured and lack specific authority levels
seeking and maintaining friendships is a basic drive of most people
the opinions and preferences of friends are an important influence in determining
the products or brands a consumer ultimately selects
shopping groups
often offshoots of family or friendship groups
motives range from social motive to helping reduce the risk when making an
important decision
in-home shopping party
work groups
formal work group: consists of individuals who work together as part of a team and
influence each other’s consumption-related attitudes and actions
informal friendship-work groups: consist of people who have become friends as a
result of working for the same firm
virtual groups or communities
community: set of social relations among people
brand community: a specialized, non-geographically bound community, based on a
structured set of social relationships among admirers of a brand, marked by a shared
consciousness, rituals and traditions and a sense of moral responsibility
consumer-action groups: dedicated to providing consumers with assistance in their effort to
make the right purchase decisions, consume products and services in a healthy and
responsible manner and generally to add to the overall quality of their lives
Celebrity and other reference group appeals
based on admiration (athlete), aspiration (celebrity, lifestyle), empathy or recognition

celebrities
represent an idealisation of life that most people imagine they would love to live
testimonial: based on personal usage, a celebrity attests to the quality of the product
or service
endorsement: celebrity lends his name and appears on behalf of a product or service
in which he may or may not be an expert
actor: celebrity presents a product or service as part of character endorsement
spokesperson: celebrity represents the brand over an extended period of time
celebrity credibility is important
the expert: a person who is in a unique position to help the prospective consumer evaluate
the product that the ad promotes because of his occupation, special training or experience
the ‘common man’: demonstrates to prospective customers that someone just like them
uses and is satisfied with the product
the executive and employee spokesperson: spokespeople seem to be admired because of
their achievements and the status implicitly conferred on business leaders
trade or ‘spokes-characters’: present an idealised image and dispense info that can be very
important for the product that they work for
other reference group appeals
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The family is a concept in flux
family traditionally: two or more persons related by blood, marriage or adoption who reside
together
married couple: husband and wife
nuclear family: husband and wife and one or more children
extended family: nuclear family together with at least one grandparent living with them
single-parented family: one parent and at least one child
Socialisation of family members
in the case of young children: includes imparting to children the basic values and modes of
behaviour consistent with the culture
include moral and religious principles, interpersonal skills, dress and grooming standards,
appropriate manners and speech and the selection of suitable educational and occupational
or career goals
marketers frequently target parents looking for assistance in the task of socialising their
children
consumer socialisation of children
consumer socialisation: the process by which children acquire the skills, knowledge,
attitudes and experiences necessary to function as consumers
through observation of parents or siblings, looking to friends for models of
acceptance, shared shopping experiences (co-shopping)
child’s age and sex, family size, social class and race are important factors in the
consumer socialisation process
adult consumer socialisation
ongoing process
begins in early childhood and extends throughout a person’s entire life
intergenerational socialisation
intergenerational brand transfer: certain product loyalties or brand preferences to be
transferred from one generation to another
two-way street: the young person both is socialised and influences those who are
doing the socialising
Other functions of the family
economic well-being
providing financial means to its dependants is a basic family function
growth in women’s’ contributions to family income
teenager are expected to pay for their amusements, contribute to cost of education
and prepare themselves to be financially independent
emotional support
provision of emotional nourishment (love, affection, intimacy) to family members
provision of support and encouragement, assistance in decision-making
suitable family lifestyles
establishment of a suitable lifestyle for the family
upbringing, experience and goals determine education, career, reading, tv, computer
skills, dining out, entertainment and recreational activities
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Family decision-making and consumption-related roles
key family consumption roles

influencers: provide info to other members about a product
gatekeepers: control the flow of info about product into the family
deciders: have the power to determine unilaterally or jointly whether to shop for,
purchase, use, consume or dispose of a specific product
buyers: make the actual purchase of a particular product
preparers: transform the product into a form suitable for consumption
users: use or consume a particular product
maintainers: service or repair the product so that it will provide continues
satisfaction
disposers: initiate or carry out the disposal or discontinuation of a product
dynamics of husband-wide decision-making: family consumption decision are
husband dominated
wife dominated
joint (equal or syncretic) or
autonomic (solitary or unilateral)
the expanding role of children in family decision-making
trend towards children playing a more active role in what the family buys as well as
the family decision-making process
reasons: families having fewer children, more dual-income couple (can afford to
permit their children to make choices) and the encouragement by media to allow
children to express themselves
tactics employed by children to influence their parents:
pressure tactics: child makes demand, uses threats or intimidation to
persuade to comply his request
upward appeal: child seeks to persuade, saying that the request was
approved or supported by any older family member or even a family friend
exchange tactics: child makes promise to give some service (e.g. washing the
car, cleaning the house) in return for a favour
coalition tactics: child seeks the aid of others to persuade to comply with his
request or uses the support of others as an argument
ingratiating tactics: child seeks to get parent in a good mood or think
favourably of him before asking to comply with a request
rational persuasion: child uses logical arguments and factual evidence to
persuade to agree with request
inspirational appeals: child makes emotional appeal or proposal that arouses
enthusiasm by appealing to values and ideals
consultation tactics: child seeks involvement in making a decision
the extent to which children influence a family’s purchases is related to family
communication patterns
advertisers recognise the importance of children’s ‘pester power’ and encourage
children to ‘pester’ their parents to purchase what they see in advertisements
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The family life cycle
decline in percentage of families that progress through a traditional FLC

caused by increased divorce rates, explosive number of births outside marriages and a
decline in the number of extended families
traditional family life cycle
stage 1: bachelorhood – young single adult living apart from parents
spend their incomes on rent, basic furniture, cars, travel and entertainment
lucrative target niche: travel agents, housing developments, sports clubs
stage 2: honeymooners – young married couple
combined income permits different lifestyle
considerable start-up expenses when establishing a new home
stage 3: parenthood – married couple with at least one child living at home
throughout interrelationships of family members and structure change
financial resources of the family change significantly throughout
stage 4: post-parenthood – an older married couple with no children living at home
time to travel, to entertain, to refurnish homes or to purchase new property
couples tend to be comfortable financially and have more leisure time
market for luxury goods, new cars, expensive furniture and holidays
stage 5: dissolution – one surviving spouse
occurs with the death of one spouse
surviving spouse tends to follow more economical lifestyle
modifications – the non-traditional FLC
non-traditional FLC stages includes: childless couples, couples who marry late,
couples who have children late, single parents, extended families, unmarried
couples, divorced persons, single persons, widowed persons
consumption in non-traditional families
when households undergo status changes (divorce, retirement, death,
someone moving in) they undergo spontaneous changes in consumption-
related preferences and become attractive targets for many marketers
dual-income households also tend to muddy the lifestyle assumptions
implicit in the traditional FLC
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Chapter 12: Social class and consumer behaviour

What is social class?
social class and social status

status: the relative rankings of members of each social class in terms of specific
status factors e.g. wealth, power, prestige
individuals compare their own material possessions with those owned by others in
order to determine their relative social standing
status is often associated with consumers’ purchasing power
the dynamics of status consumption
status consumption: the process by which consumers endeavour to increase their
social standing through conspicuous consumption or possessions/the degree to
which a consumer is likely to consume for status
conspicuous consumption: the extent to which a consumer is to consume
conspicuously (observable to others)
self-monitoring: tendency for consumers to use products as ‘props’ (requisite)
social class is hierarchical and a natural form of segmentation
social class categories suggest that others are either equal, superior or inferior
social class membership serves consumers as a frame of reference for the
development of their attitudes and behaviour
hierarchical aspect of social class is important to marketers
provides a natural basis for market segmentation
social class categories
little agreement exists among sociologists on how many distinct class divisions are
necessary to describe adequately the class structures of different countries
choice of how many classes to use depends on amount of detail necessary
The measurement of social class
subjective measures
individuals are asked to estimate their own social class positions
class consciousness: feeling of social group membership
reputational measures
selected community informant makes initial judgements concerning the social class
membership of others within the community
researcher assigns community members to social class positions
objective measures
consist of selected demographic or socio-economic variables concerning the
individuals under study
measurement through questionnaires that ask factual questions e.g. occupation,
amount of income, education
single-variable indexes: uses one socio-economic variable to evaluate social class
membership
occupation income
education other variables e.g. possessions
65
composite-variable indexes
systematically combine a number of socio-economic factors to form one
over-all measure of social-class standing
may better reflect the complexity of social class than single-variable indexes
Lifestyle profiles of the social classes
within each of the social classes there is a constellation of specific lifestyle factors (shared
beliefs, attitudes, activities and behaviours) that tends to distinguish the members of each
class from the members of all other social classes
e.g. six social classes: upper-upper class, lower-upper class, upper-middle class, lower-middle
class, upper-lower class, lower-lower class
a hybrid of two or more classes is possible concerning certain values, attitudes or patterns
Social-class mobility
varies between countries and cultures

upward mobility because of education and self-development opportunities
individuals often aspire to the lifestyle and possessions of members of a higher social class,
marketers incorporate symbol of higher-class membership in ads targeted to lower social
class audiences
products and services may filter down to lower social classes
downward mobility is possible
The affluent (rich) consumer
increasingly attractive market

defined by income or net worth including lifestyle and psychographic factors
have an abundance of money, but are time-poor and interested in improving the quality of
their lives with overseas holidays and sports cars
focus on saving or reducing time and effort
segmenting the affluent market
well-feathered nests: households with at least one high-income earner and children
present
no strings attached: households with at least one high-income earner and no
children
nanny’s in charge: households with two or more earners, none earnings high
incomes, children present
two careers: households with two or more earners, none earning high incomes, no
children present
the good life: households with a high degree of affluence with no person employed
or with the head of household not employed
marketers are able to profile users of a variety of goods and services frequently targeted to
the affluent consumer
Middle-class consumers
middle market: middle 50 percent of household incomes

middle class: households that range from lower-middle to middle-middle class in terms of
some acceptable variable or combination of variables
differentiation between children of middle-class parents and those from working-class and
poor families
increasing number of middle-class consumers in Asian and Eastern European countries
moving up to more ‘near’ luxuries
luxury and technological product have been becoming more affordable for more
consumers
some middle-class consumers are willing to pinch pennies on certain purchases
companies offering ‘luxury to the masses’ must be careful how they position their
products
The working class and other non-affluent consumers
working-class or blue-collar people represent a group of consumers marketers cannot ignore

lower-income or lower-class consumers may actually be more brand loyal
Recognising the ‘techno-class’
degree of literacy, familiarity and competence with technology, especially computers and the
internet appears to be a new basis for a kind of class standing or status
the inability to use technology adequately is having a negative impact on the lifestyles and
quality of life of those who are not computer-literate
those without necessary computer skills will increasingly find themselves to be underclasses
and disadvantaged
the geek gets status
increasingly positive image of geeks has made them and their lifestyles the target of
marketer’s messages designed to appeal to their great appetite for novel
technological products
in an environment where children naturally take to computers it is often the parents
who find themselves technologically disfranchised
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Chapter 13: The influence of culture and subculture on

consumer behaviour
What is culture?
culture is a society’s personality

culture: the sum total of learned beliefs, values and customs that serve to direct the
consumer behaviour of members of a particular society
beliefs and values refer to the accumulated feelings and priorities that individuals
have about things and possessions
values differ from beliefs because they are fewer, serve as guides, are enduring, are
not tied to specific objects or situations and are widely accepted
customs: overt modes of behaviour that constitute culturally approved or acceptable
ways of behaving in specific situations and consist of everyday or routine behaviour
The invisible hand of culture
impact of culture is natural, automatic and usually taken for granted

often it is only exposed to people when confronted with a different culture
consumers view themselves in their cultural context, react based upon their cultural
framework and perceive the world through their own cultural lens
Culture satisfies needs
culture offers order, direction and guidance

associated with what a society’s members consider to be a necessity or luxury
provides insight as to suitable dress for specific occasions (dress code)
cultural beliefs, values and customs continue to be followed as long as they yield satisfaction
Culture is learned
how culture is learned

formal learning: adults and older siblings teach a young family member how to
behave
informal learning: a child learns primarily by imitating the behaviour of selected
others (family, friends, tv heroes)
technical learning: teachers instruct child in an educational environment about what
should be done, how any why
marketers provide the audience with a model of behaviour to imitate
repetition of ads creates and reinforces cultural beliefs and values
enculturation and acculturation
enculturation: the learning of one’s own, native culture
acculturation: the learning of a new, foreign culture
language and symbols
members of a society must be able to communicate
to communicate effectively marketers must use appropriate symbols to convey
desired product images or characteristics
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symbols
verbal or nonverbal
may have several, even contradictory, meanings so the advertiser must
ascertain what the symbol is communicating to the intended audience
price and channels of distribution are significant symbols
ritual
a type of symbolic activity consisting of a series of steps occurring in a fixed sequence
and repeated over time
extend over the human life cycle from birth to death, including a host of
intermediate events
can be very public, elaborate, religious or civil ceremonies or they can be as
mundane as an individual’s grooming behaviour or flossing
likely to occur repeatedly over time (e.g. singing the national anthem before a rugby
game)
specific artefacts associated with rituals
wedding: white gown
birth: silver baby spoon
birthday: card, present, cake
50th wedding anniversary: party, card, gift, photos
graduation: pen, card, wristwatch
new year’s eve: champagne, party, fancy dress
going to the gym: towel, exercise clothes, water, iPod
sunday football: beer, crisps
starting a new job: haircut, new clothes
retirement: party, watch, plaque
death: card, giving to charity
the way something is traditionally done
ritualistic behaviour: any behaviour that is made into a ritual
Culture is shared
to be considered a cultural characteristic, a particular belief, value or practice must be shared

by a significant portion of the society
family serves as the primary agent for enculturation
educational institutions, houses of worship and mass media share much of the responsibility
for the transfer of selected aspects of culture
consumers receive important cultural info from ads
Culture is dynamic
marketer must carefully monitor the sociocultural environment

many factors are likely to produce cultural changes within a given society e.g. new
technology, population shifts, resource shortages, wars, changing values and customs
borrowed from other cultures
changing nature of culture means that marketers have consistently to reconsider
69
The measurement of culture
content analysis
focuses on the content of verbal, written and pictorial communications
can be used as a relatively objective means of determining what social and cultural
changes have occurs or as a way of contrasting aspects of two different societies
consumer fieldwork
consumer fieldwork: to select a small sample of people from a society, observe their
behaviour and draw conclusions about their values, beliefs and customers of the
society under investigation based on the observations
field observations take place within a natural environment, are sometimes
performed without the subject’s awareness and focus on observation of behaviour
participant-observers: researcher becomes active member of the environment under
study
value measurement survey instruments
researchers use data collection instruments to ask people how they feel about basic
personal and social concepts as freedom, comfort, national security and peace
Rokeach Value Survey: a value inventory that is divided into two party each part
measuring different but complementary types of personal values
List of Values: asks consumers to identify their two most important values from a list
What is subculture?
members of a specific subculture possess beliefs, values and customs that set them apart
from other members of the same society
subculture: a distinct cultural group that exists as an identifiable segment within a larger,
more complex society
Nationality subcultures
important subcultural reference that guides what people value and what they buy
especially true for populations that have a history of attracting people from all over the globe
Religious subcultures
members of religious groups at times are likely to make purchase decisions that are
influenced by their religious identity (e.g. kosher food for jews)
products that are symbolically and ritualistically associated with the celebration of various
religious holidays (e.g. gifts for Christmas)
Geographic and regional subcultures
wide range of climatic and geographic conditions throughout one continent

mental picture and stereotype of persons (a true Scandinavian)
70
Age subcultures
the generation y market

individuals born between 1977 and 1994
pragmatic, clever, socially and environmentally aware and open to new experiences
appealing to generation y
spends significant amounts of money and influences purchases by parents
grown in a media-saturated environment, are aware of marketing hype
shifted some tv viewing to internet, less likely to read newspaper
the generation x market
individuals born between 1965 and 1979
do not like labels, are cynical and do not wanted to be singled out or marketed to
have been in no rush to marry, start a family or work excessive hours to earn high
salaries
job satisfaction is typically more important than salary
important to enjoy life and to have a lifestyle that provides freedom and flexibility
appealing to generation x
pride themselves on their sophistications, are not materialistic, purchase
good brand names
baby boomer media do not work with them
the baby boomer market
who are the baby boomers?
born between 1946 and 1964
are trying hard to look and feel young, do not want to age gracefully but will
pay whatever is necessary to look young
consumer characteristics of baby boomers
tend to be motivated consumers, enjoy buying, are consumption-oriented
generally well off financially
older consumers
a significant number of these consumers are employed
seniors are involved in the daily care of grandchildren and many do voluntary work
defining ‘older’ in older consumers
elderly population due to declining birth rates, ageing of the huge baby
boomer segment and improved medical diagnoses and treatment
people’s perceptions of their ages are more important in determining
behaviour than their chronological age
elderly consumers perceive themselves to be younger than their
chronological age
New-Age Elderly: more adventurous, more likely to perceive themselves to
be better off financially and more receptive to marketing info
segmenting the elderly market
diverse in interest, opinions and actions
age is not necessarily a major factor in determining how older consumers
respond to marketing activities
segmentation based on chronological age or in terms of motivation and
quality of life orientation
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Sex as a subculture
sex roles and consumer behaviour

all societies tend to assign certain traits and roles to males and females
women have historically been cast at homemakers with responsibility for childcare
and men as the providers or breadwinners
marketers are increasingly appealing to consumers’ broader vision of gender-related
role options
women show superior affect and purchase intentions towards ads that are verbal,
harmonious, complex and category-oriented
men exhibit superior affect and purchase intention towards ads that are
comparative, simple and attribute-oriented
consumer products and sex roles
products that are exclusively or strongly associated with the members of one sex
for most products sex role links have diminished or disappeared, for other the
prohibition still lingers
women go online to seek out reference materials, online books, medical info,
cooking ideas, government info and chatting
men tend to focus on exploring, discovery, identifying free software and investments
the working woman
large and growing market segment
needs differ from those of women who do not work outside the home
e.g. hotels provide services women want such as healthy foods, gyms, spas and
wellness centres for female business travellers
segmenting the working woman market
e.g. stay-at-home housewives, plan-to-work housewives, just-a-job working
women and career-oriented working women
working women spend less time shopping
Subcultural interaction
consumers are simultaneously members of more than one subcultural segment

marketers should strive to understand how multiple subcultural memberships interact to
influence target consumers’ relevant consumption behaviour
promotional strategy should not be limited to targeting a single subcultural membership
72
Chapter 14: Cross-cultural consumer behaviour: an

international perspective
The imperative to be multinational
corporations are actively marketing their products beyond their original national borders
issue to market a brand other countries: how to do it
glocal: companies that are both global and local
firms are developing strategies to take advantage of emerging economic opportunities
attractiveness of multinational markets, products originating in one country are increasingly
being sought out by consumers in other parts of the world
reasons: opportunity for future growth, expansion of horizon, consumers increasingly eager
to try foreign products
acquiring exposure to other cultures
consumers come in contact with the material goods and lifestyles of people living in
other parts of the world
opportunity to adopt different products and practices
a portion of consumers’ exposure to different cultures tends to come about through
consumers’ own initiatives e.g. travels, living and working abroad, immigration
contact with foreign films, theatre, art and artefacts, exposure to unfamiliar products
country-of-origin effects
consumers use their knowledge of where products are made in the evaluation of
their purchase options
consumers tend to have an attitude or even a preference when it comes to a
particular product being made in a particular country
when consumers are less familiar with foreign products, country of origin becomes
an important extrinsic cue
animosity e.g. jewish consumers avoiding to purchase German-made products
national identity
belief structure:
a true Italian
would never
reject their
religious belief
cultural
homogeneity:
people
frequently
engage in
activities that
identify them as Italian
national heritage: important people from the country’s past are admired by
people today
consumer ethnocentrism: only those products that are unavailable in Italy
should be imported
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Cross-cultural consumer analysis
cross-cultural consumer analysis: the effort to determine to what extent the consumers of
two or more nations (or subcultures) are similar or different
provides understanding of psychological, social and cultural characteristics of foreigners
similarities and differences among people
if the cultural beliefs, values and customs of specific target countries are found to
differ, individualised marketing strategies are applicable to each country
time effects
the pace of life differs from one nation to another
how time is spent on the job varies from country to country
the growing global middle class
growing middle class (particularly in developing countries) attracts global marketers
who are eager to identify new customers
sales opportunities next to rather mature home markets
emerging middle class with rising incomes and rising demands on their time
many transnational corporations think in terms of regions as markets or even the
entire world as their market
acculturation in a necessary marketing viewpoint
strategic error of believing that if its product is liked by local or domestic consumers
then everyone will like it
increases the likelihood of marketing failures abroad
lack of appreciation of the unique psychological, social, cultural and
environmental characteristics of different cultures
acculturation: to learn everything that is relevant about the (potential) usage of a
product in foreign countries in which they plan to operate
distinctive characteristics of cross-cultural analysis
in Saudi Arabia it is illegal to stop people on the streets and gatherings of
four or more people are outlawed
information in Russia is limited
marketing research in China is usually inadequate
applying research techniques
language and word usage in different nations may be a burden
issue of scales of measurement
consumer researchers must familiarise themselves with the availability of research
services
Alternative multinational strategies: global versus local
some marketers have argued that world markets are becoming increasingly similar and
standardised marketing strategies are becoming more feasible
in contrast, others feel that differences between consumers of various nations are far too
great to permit a standardised marketing strategy
favouring a world brand
would brand products that are manufactures, packaged and positioned in exactly the
same way regardless of the country in which they are sold
marketers may use a world branding strategy (selectively)
74
are global brand different?

global brands are viewed differently compared with local brands
are associated with: quality signal, global myth and social responsibility
four segments in each country with respect to how its citizens view global brands:
global citizens (55%): use global success as indication of quality and
innovativeness, concerned with social responsibility
global dreamers (23%): quality products
anti-globals (13%): high quality, don’t trust global companies to act
responsibly, try to avoid them
global agnostics (8%): evaluate them the same way as local brands
adaptive global marketing
embracing a strategy that adapts advertising messages to specific values of particular
cultures
trying to localise advertisements
world brand concept may be going too far
combining global and local marketing strategies
mixed or combination strategy, global strategies with local executions
ability to create a general consensus of meaning across cultures by using
strong visual images whose fundamental message is highly apparent
frameworks for assessing multinational strategies
challenge of creating marketing and advertising programmes capable of
communicating effectively with a diversity of target markets
five stage continuum: ranges from mere awareness of a foreign brand in a local
market area to complete global identification of the brand
alternative global marketing strategies framework
communication strategy
standardised
localised communications
communications
global strategy: uniform mixed strategy: uniform
standardised
product / uniform product / customised
product
product message message
strategy mixed strategy: local strategy: customised
localised
customised product / product / customised
product
uniform message message
product standardisation appears to be most successful for high-involvement
products
key to success may be to be global and to act local
Cross-cultural psychographic segmentation
although worldwide consumers may be similar in many ways, any differences in attitudes or
behaviour can be crucial in determining satisfaction and may provide an opportunity for
segmenting consumers in terms of cultural differences
six global value groups:
strivers (23%): wealth, status intimates (15%): family and friends
devouts (22%): traditional fun seekers (12%): adventure and pleasure
altruists (18%): social creatives (10%): knowledge and technology
75
Part 4: More on the consumer’s

decision-making process
Chapter 15: Consumer influence and the diffusion of
innovations
What is opinion leadership?
the process by which one person informally influences the actions or attitudes of others who
may be opinion seekers or merely opinion recipients
influence is personal and informal
opinion leaders offers advice or information to opinion receiver
concerned with the measurement of the behavioural impact of opinion leaders on
consumption habits of others
word-of-mouth in today’s ‘always in contact’ world
always available to friends, family and business associates
friends recommendations make people comfortable with a company
Dynamics of the opinion leadership process
credibility
highly credible sources of info
perceived as objective
intentions are perceived as being in the best interest of the opinion recipient, no
compensation for advice
advice reduces the opinion receivers perceived risk or anxiety
positive and negative product information
opinion leaders provide both favourable and unfavourable info
compared with positive or neutral comments negative comments are relatively rare
consumers are more likely to share a negative experience than a positive one
information and advice: opinion leaders give advice on
which brand is the best
how best to use a product
where to shop and
who provides the best service
opinion leadership is category specific: they often specialise in certain product categories
about which they offer info and advice
opinion leadership is a two-way street: consumers who are opinion leaders in one product-
related situation may become opinion receivers in another
The motivation behind opinion leadership
the needs of opinion leaders

people may provide info or advice to others to satisfy basic needs of their own
may be unaware of their own motives
may simply be trying to reduce own post-purchase dissonance
self-involvement
may find themselves so pleased or disappointed with a product that they must tell
others about it
need to share product-related experiences
the needs of opinion receivers
obtain new product or usage info
reduce perceived risk
reduce search time
purchase pals
male: sources of product category expertise, product info and retail store and price
info
female: moral support and to increase confidence in buyer’s decisions
when strong ties exist people rely on their purchase pal’s familiarity with and
understanding of one’s individual characteristics and needs
surrogate buyers versus opinion leaders
surrogate buyers may replace opinion leaders
e.g. working women turning to wardrobe consultants for help in purchasing business
attire
Measurement of opinion leadership
self-designating method: respondents are asked to evaluate the extent to which they have
provided others with info or have influenced the purchase decisions of others
sociometric method: measures the person-to-person informal communication of consumers
and asks about specific individuals whom they have influenced or by whom they have been
influenced
key informant method: key informant is asked to identify individuals in the group who are
most likely to be opinion leaders
objective method: placing new products or new info with selected individuals and tracing the
resulting web of interpersonal communication
A profile of the opinion leader
general attributes across product categories category-specific attributes

innovativeness interest
willingness to talk knowledge
self-confidence special-interest media exposure
gregariousness same age
cognitive differentiation same social status
social exposure outside group
77
Frequency and overlap of opinion leadership
opinion leadership tends to overlap across certain combinations of interest areas

opinion leaders in one product are often opinion leaders in related areas
market mavens
possess a wide range of information about many different types of products, retail
outlets and other dimensions of markets
influence extends beyond the realm of high-involvement products
motivated by a sense of obligation to share info, a desire to help others and a feeling
of pleasure that comes with telling others about products
The situational environment of opinion leadership
product discussions generally occur within relevant situational contexts

opinion leaders and opinion receivers are often friends, neighbours or work associates
The interpersonal flow of communication
multi-step flow of communication theory
advertising designed to stimulate/simulate word-of-mouth

objective of promotional strategy of stimulation is to run ads or direct-marketing
programme sufficiently interesting and info to provoke consumers into discussing
benefits of a product
stimulating vs simulating word-of-mouth
word-of-mouth may be uncontrollable e.g. rumours
Marketers seek to take control of the opinion leadership process
designing products with characteristics or design factors that make them easy to talk about
seeking to manage word-of-mouth
creating products with greater word-of-mouth potential
creating products with built-in buzz potential
buzz-potential: new product should give customers something to talk about
e.g. technologies, luxury brands, films
strategies designed to stimulate buzz
internet has inspired marketers to expand opportunities to take control of the
process of word-of-mouth
volunteer consumer buzz agents or hired actors to go out and simulate buzz
viral marketing
any strategy that encourages individuals to pass on a marketing message to
others, creating a potential for exponential growth in message exposure and
influence
marriage of email and word-of-mouth
78
allows a message to spread like a virus

uncodified buzz
occurs when an innovator encounters a new product that he likes
and passes on the info
high trust and credibility
not controllable
codified buzz
incubated, fostered and unwritten by the firm
e.g. trial versions, testimonials, observable usage, endorsements, gift
certificated, hosted chat rooms
buzz can spread quickly through the forwarding of emails
viral maven: individual who received and sends pass-along emails frequently
weblogs as word-of-mouth
one of the newest mediums for disseminating word-of-mouth
facebook or twitter
Diffusion of innovations
diffusion of innovations: framework for exploring consumer acceptance of new products

diffusion process: a macro process concerned with the spread of new product innovations
from its source to the consuming public
adoption process: a micro process that focuses on the stages through which an individual
consumer passes when deciding to accept or reject a new product
consumer innovators: the first to purchase a new product
The diffusion process
diffusion: the process by which the acceptance of an innovation (new product, new service,
new idea, new practice) is spread by communication (mass media, salespeople, informal
conversations) to members of a social system (target market) over a period of time
the innovation
firm-oriented definitions
product is new to the company
ignores whether or not the product is actually new to the marketplace
product-oriented definitions
the extent to which a new product is likely to disrupt established behaviour
patterns
types of product innovations:
continuous innovation
least disruptive influence on established patterns
introduction of a modified product rather than a totally new
product
dynamically continuous innovation
more disruptive
does not alter established behaviour patterns
may involve the creation of a new product or the
modification of an existing one
79
discontinuous innovation
requires consumers to adopt new behaviour patterns
e.g. aircraft, radios, tv, cars
market-oriented definitions
judged the newness of a product in terms of how much exposure consumers
have to the new product
definitions of product innovation:
has been purchased by a relatively small percentage of the potential
market
has been on the market for a relatively short period of time
basically subjective because leaves researcher with the task of establishing
the degree of sales penetration within the market that qualifies the product
as an innovation or how long the product can be on the market and still be
considered new
consumer-oriented definitions
new product is any product that a potential consumer judged to be new
newness is based on the consumer’s perception of the product rather than
on physical features or market realities
use innovativeness: consumer uses previously adopted products in novel or
unusual way
product characteristics that influence diffusion
all new products do not have equal potential for consumer acceptance
relative advantage: the degree to which potential customers perceive a new
product as superior to existing substitutes
compatibility: the degree to which potential consumers feel a new product is
consistent with their present needs, values and practices
complexity: the degree to which a new product is difficult to understand or
use
trialability: the degree to which a new product is capable of being tried on a
limited basis
observability: the ease with which a product’s benefits or attributes can be
observes, imagined or described to potential consumers
resistance to innovation
high consumer resistance when perceived relative advantage, perceived
compatibility, trialability and communicability are low and perceived
complexity is high
innovation overload: situation in which the increase in info and options
available to consumer is so great that is seriously impairs decision-making
the channels of communication
how quickly an innovation spreads through a market depends ton communication
between the marketer and consumers as well as communication among consumers
impersonal sources (ads, editorial matter), interpersonal sources (salespeople,
opinion leaders)
internet as a major consumer-related source of info
new channels of communication
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the social system

the diffusion of a new product usually takes place in a social setting frequently
referred to as social system, market segment or target market
a physical, social or cultural environment to which people belong and within which
they function
social system with its own special values and norms influences the acceptance or
rejection of new products
time
purchase time: the amount of time that elapses between consumers’ initial
awareness of a new product and the point at which they purchase or reject it
adopter categories: involves a classification scheme that indicates where a consumer
stands in relation to other consumers in terms of time
rate of adoption
how long it takes a new product or service to be adopted by members of a
social system/how quickly it takes a new product to be accepted by those
who will ultimately adopt it
the diffusion of products worldwide is becoming a more rapid phenomenon
objective in marketing new products is usually to gain wide acceptance of
the product as quickly as possible
desire a rapid rate of product adoption to penetrate the market and quickly
establish market leadership
penetration policy is usually accompanies by a relatively low introductory
price designed to discourage competition from entering the market
The adoption process
stages in the adoption process

awareness: first exposure to innovation
interest: interest in product, search for additional info
evaluation: decision whether or not to believe that the product will satisfy needs
trial: use of the product on a limited basis
adoption/rejection: if trial is favourable decision to use product, if trial is
unfavourable decision to reject it
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the adoption process and information sources

provides a framework for determining which types of information sources consumers
find most important at specific decision stages
impersonal mass media sources tend to be most valuable for creating initial product
awareness
as the purchase decision progress continues, the relative importance of these
sources declines while the relative importance of interpersonal sources (friends,
salespeople, others) increases
A profile of the consumer innovator
defining the consumer innovator: relatively small group of consumers who are the earliest
purchasers of a new product
interest in the product category: much more interested than others in the product category
the innovator is an opinion leader
consumer innovators often influence the acceptance or rejection of new products as
do opinion leaders
when innovators are enthusiastic about a new product and encourage others to try it
the product is likely to receive broader and quicker acceptance
personality traits
less dogmatic than non-innovators (tend to approach new or unfamiliar products
with considerable openness and little anxiety)
need for uniqueness
inner-directed, rely on their own values and standards to make decisions
more willing to risk trying new products
accept new retail facilities
tend to be brand switchers
perceived risk and venturesomeness
perceive little to no risk in the purchase of a new product
willing to accept the risk of purchasing new products
purchase and consumption characteristics
possess purchase and usage traits that set them apart from non-innovators
less brand loyal
likely to take advantage of special promotional offers e.g. free samples
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media habits
have a greater exposure to magazines than non-innovators, particularly to
special-interest magazines
less likely to watch tv
social characteristics
more socially accepted and socially involved than non-innovators
more socially integrated into the community
demographic characteristics
age of consumer innovator is related to specific product category
tend to be younger
have more formal education, have higher personal or family incomes and are more
likely to have higher occupational status
are the generalised consumer innovators?
overlap of innovativeness across product categories seems to be limited to product
categories that are closely related to the same basic interest area
good marketing strategy to target a new product to consumers who were the first to
try other products in the same product category
technology innovators
change leaders
high-tech innovators
tend to embrace and popularise many innovations that are
ultimately accepted by the mainstream population
technopiles
individuals who purchase technologically advanced products soon
after their market debut
tend to be technically curious people
techthusiasts
people who are most likely to purchase or subscribe to emerging
products and services that are technologically oriented
are typically younger, better educated and more affluent
technology acceptance model: measures the relationship between
technology and consumer innovation
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Chapter 16: Consumer decision making – again

Input
consumer needs for a

product are often
caused by marketing
efforts or his
sociocultural
environment
sociocultural issues act
as input into the
decision-making
process and offer
directions to the
completion of the
decision task
Process
where decisions are

actually made
how a consumers goes
about searching for info
and evaluate the info
depends on individual’s
psychological
characteristics
motivation, perception,
learning, personality and attitudes are features influencing the decision process and are
important criteria for segmentation
consumers do not necessarily emphasise any given attitude to the same degree
identifying an accurate segment and reasonable target group will increase the profitability of
working towards a homogeneous group of consumers
Output
need fulfilment, customer satisfaction ,cognitive dissonance

purchases that satisfy needs often lead to the purchased brand earning a place in the evoked
set
challenge to develop a fine-tuned conception of the target group that firm is able to present
its offer in a way that takes account of the psychological, sociological, anthropological and
economic characteristics of the consumers
84

Stuvia 75825 Consumer Behaviour Summary F

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Summary Consumer Behaviour

The Marketplace to Buy and Sell your Study Material

two different kinds of consuming entities:

Development of the Marketing Concept and the Discipline of Consumer Behaviour

focus of the marketing concept: consumer needs

the four elements of the marketing mix

Customer Value, Satisfaction and Retention

providing customer value

The Impact of Digital Technologies on Marketing Strategies

Marketing Ethics and Social Responsibility

Consumer Behaviour and Decision-Making are Interdisciplinary

cognitive and emotional aspects to consumer decision-making

Chapter 2: Consumer research

Consumer Research Paradigms

combining qualitative and quantitative research findings

The Consumer Research Process

identify highly profitable customers as quickly as possible and target those

designing primary research

qualitative research designs and data collection methods

systematic random sample: every nth person is selected

Chapter 3: Market segmentation

What is Market Segmentation?

Criteria for effective targeting of segments

identification: marketer must identify relevant product or service characteristics

Bases for Segmentation

geographic segmentation: market divided by location

Implementing Segmentation Strategies

Concentrated versus differentiated marketing

Part 2: The consumer as an individual

Levels of Consumer Decision-Making

Models of Consumers: Four Views of Consumer Decision-Making

classical economic model of an all-rational consumer is unrealistic because people

A Model of Consumer Decision-Making

consumer decision rules/heuristics/decision strategies/information-

Consumer Gifting Behaviour

Beyond the Decision: Consuming and Possessing

Chapter 5: Consumer motivation

Motivation as a Psychological Force

product-specific goal: specifically branded products and services that consumers

the selection of goals

rational versus emotional motives

The Dynamics of Motivation

needs are never fully satisfied

Types and Systems of Needs

Henry Murray’s list

the development of motivational research

Chapter 6: Personality and consumer behaviour

Freudian theory and ‘product personality’

Personality and Understanding Consumer Diversity

consumer innovativeness and related personality traits

need for uniqueness

compulsive consumption behaviour

consumers sometimes develop relationships with a brand

personality and colour

Self and Self-Image

one or multiple selves

possessions can extend the self in a number of ways:

Virtual Personality or Self

Chapter 7: Consumer perception

perceptual defence: screen out stimuli that are psychologically threatening,

how consumers handle risk

Ethics and consumer perception