Marketing Assignment
Study Guide
Consumer Behavior
INSTRUCTIONS TO STUDENTS 1
LESSON ASSIGNMENTS 5
LESSON 1: GROUNDWORK OF THE TEXT 7
LESSON 2: INDIVIDUAL INFLUENCES ON BEHAVIOR 27
LESSON 3: SOCIAL AND CULTURAL INFLUENCES ON BEHAVIOR 89
RESEARCH ASSIGNMENT 135
SELF-CHECK ANSWERS 139
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When was the last time you made a purchase? What motivated you? What questions did you ask yourself before you bought the item? Did you purchase it quickly, or did you take some time to think about it? These questions are part of the con- sumer decision process. When you understand this process, you’ll be both a better consumer and a better marketer.
This course will teach you the principles involved in how and why consumers make decisions. It’s intended to show you how, through study and research, marketing analysts and managers can predict and influence consumer behavior.
The textbook for this course is the fourth edition of Consumer Behavior: An Applied Approach, by Nessim Hanna, Richard Wosniak, and Margaret Hanna. This study guide will assist you in your studies and guide you through your course. The study guide also explains what your assignments are for each lesson and provides you with the best approach to achieve the maximum benefit from this course.
OBJECTIVES
When you complete this course, you’ll be able to
■ Explain the role of the marketing concept in exchange processes
■ Identify the macro forces and emerging trends that influence consumer behavior
■ Describe the roles of segmentation, targeting, and positioning in developing a marketing strategy
■ Discuss the influence of perception, learning, memory, and attitude on consumer behavior
■ Explain the function of motivation, emotion, personality, and self-concept in purchasing behavior
■ Describe the consumer decision-making process
■ Identify the factors that influence consumer acceptance of new products
■ Describe the marketing implications of social and cultural influences on behavior
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COURSE MATERIALS The following materials are part of this course:
1. This study guide, which contains an introduction to your course, plus
■ A lesson assignments page, which outlines the study assignments in your textbook
■ Assignment introductions, which emphasize the main points in the textbook
■ Self-checks and answers to help you assess your understanding of the material
■ Instructions for your research assignment
2. Your course textbook, Consumer Behavior: An Applied Approach, which contains your assigned readings
YOUR TEXTBOOK
Before you begin your study of consumer behavior, take some time to become familiar with your textbook and its layout.
Begin by reading the foreword on page xi and the preface on pages xiii–xxi. These pages give valuable background material on your textbook and what it has to offer you.
Next, examine the Brief Contents on page iii. The titles of the chapters convey a general idea of the topics you’re going to study. As you proceed through the course, use the full table of contents on pages v–x. If you read the contents for each chapter just before you begin to study that particular chap- ter, you’ll know what you’ll be studying in that assignment. The formal study material for this course begins on page 3.
At the end of the textbook, following the study material, are two helpful resources:
1. A glossary (pages 475–482), which contains definitions of important terms used throughout the textbook
2. An index (pages 483–501), which lists the topics, companies, and individuals mentioned in your textbook, along with the pages on which those references may be found
Instructions to Students2
A STUDY PLAN
This study guide is a blueprint for your course. Read it carefully, and use the following steps to help you receive the maximum benefit from your studies:
1. Note the pages for each assignment, and read the introductory material in the study guide.
2. Scan the assignment in the textbook to get a general idea of its content. Then, carefully read and study the assignment. Pay attention to all details, especially defini- tions and main concepts. Be sure to read the summary as a review of the material in the chapter.
3. The self-checks are designed to help you identify weak- nesses and guide you back to the areas where you need further study. As you finish each reading assignment, answer the self-check questions in this study guide. Then, compare your answers to those provided. Completing the self-check will help you to make sure you’ve recognized the most important points. Each is a review of the material you’ve just studied, so test yourself seriously. Don’t look up an answer before giving your own, and don’t submit the self-check answers for grad- ing. They’re for you to evaluate yourself on your own.
4. After you’ve completed the self-checks for Lesson 1, complete the Lesson 1 homework assignments.
5. After you’ve completed the homework assignments, take the first examination.
6. Follow this procedure until you complete all three lessons. At any point you can contact your instructor for assistance and clarification.
7. After you complete the examination for Lesson 3, you’ll complete a research assignment in which you’ll apply your new course knowledge. Instructions for submitting your assignment are in this study guide.
Instructions to Students 3
You’re now ready to begin Lesson 1. With concentration and determination, you’ll be on your way to acquiring valuable business and marketing skills. Moreover, you may even become a better consumer yourself.
Instructions to Students4
Remember to regularly check “My Courses” on your student homepage. Your instructor may post additional resources that you can access to enhance your learning experience.
Lesson 1: Groundwork of the Text For: Read in the Read in the
study guide: textbook:
Assignment 1 Pages 7–15 Pages 3–35
Assignment 2 Pages 16–26 Pages 39–69
Examination 080628 Material in Lesson 1
Lesson 2: Individual Influences on Behavior For: Read in the Read in the
study guide: textbook:
Assignment 3 Pages 27–38 Pages 73–106
Assignment 4 Pages 39–49 Pages 109–143
Assignment 5 Pages 50–60 Pages 149–180
Assignment 6 Pages 61–69 Pages 185–217
Assignment 7 Pages 70–78 Pages 221–249
Assignment 8 Pages 79–88 Pages 255–283
Examination 080629 Material in Lesson 2
Lesson 3: Social and Cultural Influences on Behavior For: Read in the Read in the
study guide: textbook:
Assignment 9 Pages 89–96 Pages 289–318
Assignment 10 Pages 94–104 Pages 321–346
Assignment 11 Pages 105–112 Pages 351–380
Assignment 12 Pages 113–120 Pages 383–414
Assignment 13 Pages 121–126 Pages 417–442
Assignment 14 Pages 127–133 Pages 445–472
Examination 080630 Material in Lesson 3
Research Assignment 080632
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t sNote: To access and complete any of the examinations for this study
guide, click on the appropriate Take Exam icon on your “My Courses” page. You should not have to enter the examination numbers. These numbers are for reference only if you have reason to contact Student Services.
NOTES
Lesson Assignments6
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Groundwork of the Text ASSIGNMENT 1 Read this introduction. Then read Chapter 1, “Introduction to Consumer Behavior” pages 3–35, in your textbook, Consumer Behavior.
What Is Consumer Behavior?
To study consumer behavior, you have to know what it is. Therefore, Chapter 1 begins with a definition of consumer behavior and then discusses the activities investigated in this field—specifically, the way people choose, purchase, use, and dispose of goods and services. Each of these activities repre- sents a stage in what marketers as a whole refer to as the customer life cycle.
The aim of understanding each stage of the customer life cycle is to create and deliver lasting value to the consumer during interactions with a particular firm. Each of these interactions may be referred to as touchpoints, which are of special interest to companies that have begun to adopt Customer Touchpoint Management (CTM) as a means of enhancing a firm’s relation- ship with its customers.
Note that the term consumer behavior is different from a similar term, buyer behavior. The latter includes behavior that involves business-to-business consumption as well as personal or individual consumer purchasing behavior.
Approaches to the Discipline of Consumer Behavior
Understanding consumer behavior means studying individual, or intrapersonal, influences—such as perceptions, attitudes, and personality—as well as broader group, interpersonal, cultural, and cross-cultural influences. Accordingly, the discipline of consumer behavior draws on the insights and processes offered by a variety of fields. These include psychology, sociology, social psychology, anthropology, and economics. Each of these fields offers a slightly different perspective on consumer behavior, which, taken together, form a full picture.
Consumer Behavior8
What Do Buying Decisions Involve?
Pages 8–9 of your textbook offer a hypothetical case of a family deciding to acquire a pet. As you read through this example, you’ll see that a number of factors influenced the family’s decision. Some of the factors were social—many other households in the neighborhood owned dogs—and oth- ers were cultural—the parents believed that owning a pet would help teach their children responsibility. The parents also engaged in research, considered economic factors, and investigated requirements and options for the ownership, care, and maintenance of the family pet.
Consumer Behavior: The Forces behind Human Actions
Many concepts are essential to the study of consumer behavior, and these will be explained in more detail as you proceed through your course. For example, the decision to purchase a puppy is a high-involvement process, because introducing a dog into the home represents a significant change in the way the household functions. By contrast, purchasing toys, treats, and food for the dog, which has significantly less impact on the overall household function, are low-involvement processes.
The Role of the Marketing Concept in Exchange Processes
Most firms today understand the essential role that consumers play in the entire business process, and they’ve consequently adopted an approach known as the marketing concept. Briefly, the marketing concept is an operational philosophy that views the consumer as central to all of a firm’s activities. At the heart of the marketing concept is an understanding that an industry is a consumer-satisfying process, not a goods- producing process.
The marketing concept is grounded in the notion of exchange, the process through which a firm offers its products or services in return for consumers’ resources. Any exchange requires two parties: one that offers a product or service of perceived
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value and another that gives up something of perceived value— for example, cash, time, or labor—to acquire a valued product or service.
Marketers who understand and implement the insights of consumer behavior can influence the perceived value of a product or service. They’re often referred to as agents of change, employing a variety of marketing tactics to create or direct the perception of value.
The Influence of Macro Forces on Consumer Behavior
Extraordinary technological advances now offer consumers a host of sources through which they can learn about and pur- chase an enormous array of products and services, as well as interact with the firms that offer them. Mobile and electronic commerce services, search engines, location-based searches, online auctions, online ads, as well as email campaigns, Facebook, Twitter, instant messaging, and mobile apps have created an environment in which consumers can access an immense amount of information. The amount and variety of information available, along with the many methods of interaction, can be overwhelming to both consumers and marketers. Marketers are charged with the task of discovering novel and inventive ways of communicating with consumers and enhancing the exchange process, while consumers can sometimes be deluged with too much information and unwanted or ineffectually targeted advertising.
Emerging Trends in Contemporary Society
Pages 14–33 show seven emerging trends influencing twenty- first-century consumer behavior in significant ways. This section details the impact of e-commerce and m-commerce; hyperconnectivity and social networks; safety, security, and heightened anxiety; global interdependence and connectivity; and a vision for college education.
Consumer Behavior10
The Explosion of E- and M-Commerce
The emergence of the first web browser brought about a new way for people to interact, and with it, a new economic ecosystem. E-commerce is the term generally used to describe the process through which products and services are bought and sold online. E-commerce sites, such as Amazon.com, have enjoyed a huge advantage in terms of access, presence, promotion, discounts, and delivery over traditional brick-and- mortar retailers, many of which have established online presences to attract and interact with consumers. E-commerce has even extended into areas of business such as investment and stock trading.
M-commerce is a subset of e-commerce, through which busi- ness transactions may be conducted through mobile devices or tablets. As tablets and smartphones have proliferated, m-commerce has grown dramatically, providing such benefits as easy accessibility, convenience, localization, instant connectivity, personalization, and immediacy. Mobile advertising, which also benefits from immediacy, convenience and personalization, has consequently become a valuable tool for marketers.
Hyperconnectivity and Social Networks
Consumer behavior has always been a social activity, involving some interaction between providers and consumers. It has also been influenced by the opinions and behavior from those around us. In today’s marketplace, that sphere of social influence has expanded tremendously through social media sites like Facebook and Twitter, as well as blogs, user forums, and group-buying platforms such as Groupon.com and Daily deals. To accommodate the complexity, diversity, and integration of new applications and devices, many firms are employing a strategy known as hyperconnectivity, enabling large increases in network bandwidth that often exceed demand.
Consumers can benefit through social media. They discover new products and services, evaluate them through ratings and recommendations, seek more information and help in using products and services, and find bargains and discounts. In recent years, many new social sites that function as online magazines have evolved to meet the needs of specifically targeted audiences.
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Because the advent of social media and its effects on consumer behavior are so new, firms are in the process of evaluating their impact on their integrated marketing communications (IMC) strategies, the communication tools through which they manage customer relationships that drive brand value. At present, firms are looking at how to quantify the return-on- investment (ROI) generated by investing in social media.
Safety, Security, and Heightened Anxiety
Fear and anxiety tend to have an overall negative effect on consumer behavior. Reports of dire events and warnings, at home and abroad, generate feelings of insecurity and insta- bility. The continuing effects of the global financial downturn have also negatively impacted consumer behavior, as people have lost homes and jobs, or fear that they may do so. The proliferation of online scams, computer virus attacks, and identity theft have led to further unease and a corresponding detrimental effect on personal and business consumption.
The Green Revolution
Dependence on foreign energy supplies comes at a great cost to U.S. businesses and consumers. Consequently, consumers and firms that manufacture and distribute products and/or deliver services are seeking new ways to lower costs, while offsetting some of the projected climatic effects of using carbon- based energy sources. Recently, a shift in focus toward other types of energy sources, such as solar power and renewables, has created some new markets, products, and services that aim to deliver lower costs and be more environmentally observant.
The “Buy American” Movement
As your textbook notes, manufacturing in America reached its peak in 1979 and then began to decline as many compa- nies realized that products could be manufactured much less expensively abroad. While this trend has led to an influx of cheaper goods into the American marketplace, opponents argue that inferior quality, together with the loss of manufacturing jobs at home (along with the loss of income tax revenue), ends up costing consumers more. The “Buy American” movement
Consumer Behavior12
aims to correct this dilemma by urging the return of more manufacturing jobs to this country and purchasing products with the “Made in USA” label rather than products manufac- tured abroad. Opponents argue that protectionist strategies will negatively impact our financial global presence and point out that the income derived from U.S.-based distributors— including sales and marketing channels—compensates for the loss of American jobs. While the debate is still ongoing, the “Buy American” movement has opened a significant marketing niche.
Global Interdependency and Connectivity
Over the past several decades, the marketplace has become increasingly global. American and foreign firms trade and compete with each other and provide goods and services in wide-ranging, often overlapping markets. Their supply chains are interconnected across nations and continents. The economy has gone global.
While this financial interdependence has positive aspects— including a wider, more diverse marketplace—the global economy is more vulnerable to disruption. Additionally, connectivity has paved the way for the emergence of a new class of highly informed consumers and helped create demand for products and services in previously untapped markets.
A Vision for College Education
College tuition and related fees have increased dramatically over recent decades. Many question—and even protest—the increase. This section also examines the value and benefits of a college education, such as the opportunity to find higher- paying work, personal satisfaction, and enhanced life experience.
Ramifications of Current Trends for Consumers and Marketers
The current and emerging trends offer opportunities and challenges for marketers. Connectivity and globalization have helped to create a more diverse and robust marketplace, and many of today’s consumers are better informed than those of
Lesson 1 13
previous generations. However, competition between firms and the efforts to develop and implement an effective marketing strategy require greater flexibility, innovation, and the ability to adapt to a rapidly changing, expanding environment.
After you’ve read the assigned pages, review any material you found difficult. Then, complete Self-Check 1 and Chapter 1 Homework. Check your answers with those provided, and review the material for any of the questions you missed.
Key Terms
Term Page
consumer behavior 5
marketing concept 11
agents of change 11
e-commerce 14
m-commerce 16
hyperconnectivity 17
integrated marketing communication 19
Consumer Behavior14
Self-Check 1
At the end of each section of Consumer Behavior, you’ll be asked to pause and check your understanding of what you’ve just read by completing a “Self-Check” exercise. Answering these questions will help you review what you’ve studied so far. Please complete Self-Check 1 now.
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. When a company attempts to create and deliver lifetime value to consumers during
every interaction in their relationship with the firm, the company is basically focusing
on the customer life cycle.
______ 2. The goal of Customer Touchpoint Management (CTM) is getting the company’s
managers involved in the promotional activities of the firm.
______ 3. Brick-and-mortar firms have failed to counter competition from online retail operations.
______ 4. While it’s easy to quantify the return on investment generated through traditional
media by such measures as reach and frequency, these are ill-suited for measuring
ROI in the contemporary interactive media environment.
______ 5. Human consumption has always been regarded as an individual act, seldom influenced
by other people around us.
(Continued)
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Self-Check 1
Questions 6–10: Select the one best answer to each question.
6. In your textbook’s narrative on the Donatos’ purchase of a puppy, they considered the fact that most families in their middle-class neighborhood owned dogs. To the Donatos, in this case, those neighbors represent
a. agents of change. c. opinion leaders. b. a reference group. d. opinion followers.
7. The marketing concept is a philosophy advocating that
a. the consumer is the focal point of all business activities. b. business firms are instrumental in maintaining our high standard of living. c. without an efficient distribution system, the economy cannot function properly. d. marketing is the most important activity in any society.
8. Actions adopted in the transportation field to reduce energy consumption include all of the following except
a. upgrading mass transportation. b. passing laws to increase automotive gas mileage. c. encouraging increased usage of bicycles. d. placing higher taxes on the purchase of gas-guzzling vehicles.
9. Today, reports reveal that nearly _______ percent of everything we buy in the United States is made overseas.
a. 30 c. 60 b. 40 d. 80
10. Which of the following reflects features of m-commerce?
a. Localization c. Immediacy b. Personalization d. All of the above
Check your answers with those on page 139.
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ASSIGNMENT 2 Read this introduction. Then read Chapter 2, “Segmentation, Targeting, and Positioning” pages 39–69, in your textbook, Consumer Behavior.
Mass Marketing
The Model-T automobile was efficiently and economically pro- duced in a standardized version, available in just one color. History shows, though, that the eventual failure of Henry Ford’s Model-T can largely be attributed to his employment of a mass- market strategy, which assumed a homogenous marketplace made up of consumers sharing virtually identical needs and preferences.
Many firms quickly learned and have come to acknowledge as a reality that consumers want choice and flexibility in purchas- ing goods and services. The marketplace, in fact, is highly diverse, comprised of many smaller subgroups, or segments, each with a distinctive set of needs and wants.
To succeed in such a diverse marketplace, most firms employ a three-step market-matching strategy, as illustrated in Exhibit 2.1 on page 42. The first step is segmentation, which is dividing the general marketplace into a variety of smaller submarkets, made up of consumers who want or need differ- ent marketing mixes of products and/or services. The second step is targeting, which means examining specific submarkets and determining which of them to pursue. The final step is positioning, which consists of developing, in the mind of the consumer, a distinctive and attractive image for the product or service.
Market Segmentation
Market segmentation is a process of defining or describing different submarkets, or niches, through identifying common needs and wants within a segment, as well as of distinguishing between different segments. Your textbook provides examples. Commercial airlines, for instance, typically separate segments into business and leisure travelers. Forrester Research, a technology consultant firm, has identified 10 segments according to various criteria.
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As illustrated in Exhibit 2.2 on page 43, there are five basic variables commonly used to segment consumer markets: geo- graphic, demographic, geodemographic, psychographic, and behavioral.
Geographic Segmentation
Geographic segmentation is segmentation by location, such as by region, county, city, or town. Geography represents a significant variable because differences in climate, location, distance, and landscape can all influence attitudes and behaviors, and people in different regions therefore want or need different types of products or services and tend to respond differently to marketing programs. To make the most of these differences, many firms employ specifically regionalized or localized marketing strategies to appeal to consumers in different geographical locations.
Demographic Segmentation
Demographic segmentation uses variables such as age, gender, family life cycle, income, occupation, education, and ethnicity. For example, toy manufacturers typically market to children. Certain breakfast food companies develop and market some brands and products geared for children and others tailored to appeal to adults. Likewise, Harley Davidson, which manu- factures motorcycles, discovered through research that it could extend its market share by introducing new product lines that appealed to a demographic younger than its traditional demographic.
The family life cycle—the series of stages through which families typically progress—is also a key determinant in understanding and marketing to families as they undergo changes in needs, resources, and spending habits. Hotel chains are prime exam- ples of firms that develop and market services that appeal to families in different stages of the family life cycle—for example offering weekend discounts for families with young children and offering special amenities, such as children’s menus, cribs, and video games.
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Gender is another important demographic factor, influencing the decision to produce products and services specifically tai- lored for women and for men. Race and ethnicity are also significant variables, especially given the growth of Hispanic- American, African-American, and Asian-America populations. Each of these demographic subsegments has nuanced needs and preferences, and firms have developed products and services to appeal to them.
Although education, income, and occupation are seen by many researchers to be interconnected, many firms have identified occupation as a significant demographic factor on its own. Accordingly, many firms develop and market products espe- cially aimed at members of a particular profession. As your textbook notes, many pharmaceutical companies target doctors in their marketing strategy.
Geodemographic Segmentation
Through integrating geographic and demographic variables, marketers identify an even more-focused description of a segment than either of the two characteristics considered separately. Geodemographic segmentation means segmenting a market by honing in on data on neighborhoods, ZIP codes, or census reports, under the assumption that consumers in particular cluster systems will behave similarly. This type of segmentation is especially valuable for highly directed, precise marketing.
Over the years, several geodemographic analysis systems have been developed. One of the earliest, known as Potential Rating Index by Zip Market (PRIZM), combines data from census records, past purchasing behavior, media preferences and other factors, along with zip codes to identify extremely precise seg- ments. Other systems include CACI, ACORN, ESRI Tapestry, and PersonicX.
Psychographic Segmentation
Psychographic segmentation divides a market into groups according to factors such as self-values, self-concept, and lifestyle. Psychographic profiles are most commonly identified through large-scale surveys aimed at determining people’s
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activities, interests, and opinions, which are commonly referred to as AIO inventories. A more recently developed technique, known as attitudinal data framing, uses information drawn from a firm’s computer database to determine the motivation behind purchase decisions. One of the most broadly employed psychographic survey tools is VALS, which identifies consumer segments in terms of eight different clusters.
Behavioral Segmentation
Behavioral segmentation means differentiating consumers into segments based on their attitudes toward or reaction to a product. These behavioral factors include
■ Usage rate, the frequency or quantity in which people purchase or use a specific product or service
■ Benefits sought, an evaluation of the different benefits consumers seek as they examine similar products or services
■ Brand and store loyalty, the tendency to purchase goods or services exclusively from a particular company or store
■ Marketing tactic sensitivity, the response to various types of marketing tactics, such as perception of quality, coupons, promotions, customer service, advertising appeals, and salesperson interaction
Market Targeting
The analysis that goes into market segmentation results in a market profile, a detailed representation of the various segments within the broader market, the characteristics of members of each segment, and the position of competitors within each segment.
Dividing the total market into smaller, relatively homogeneous groups, or segments, is necessary for a marketer to focus on and plan strategies for targeting specific market groups. Once the market is segmented, the firm must then decide which of those segments is attractive enough and sufficiently feasible to target. Due to variations in size, resources, technical capacity,
Consumer Behavior20
and marketing capabilities, firms typically aim to fit their business attributes and models to the needs and wants of consumers as precisely as possible.
For targeting to be successful, firms must determine the overall marketing-target strategy and goals. The four main strategies are
■ Undifferentiated
■ Multisegment
■ Concentration
■ Customization
Undifferentiated Strategy
An undifferentiated strategy entails an approach to the marketplace as a single, homogeneous arena offering products or services understood as providing the same benefits to all consumers. This approach is best suited to marketing staples such as corn, wheat, flour, sugar, and salt. It’s also useful when introducing new products into the market where com- petition is negligible. Production, distribution, and other costs can be contained through this strategy, but as seen in the case of the Model-T, undifferentiated targeting can make firms vul- nerable as competitors enter the field and offer more variety and other differentiating factors.
Multisegment Strategy
A multisegment strategy targets several segments and offers a different marketing mix to appeal to each segment. Automobile firms, for example, can offer vehicles aimed at a variety of segments by adjusting all marketing mix elements (including product design and function, price, and promotion) to suit the needs and preferences of various segments. Technology firms like Apple can offer a variety of products that attract different segments.
Offering diverse product lines to serve multiple segments can reduce market risk. Declines in some segments can be offset by gains in others. However, the business costs associated with developing and marketing a diverse line often escalate
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exponentially according to the variety of products offered. Even so, targeting products that appeal to the characteristics of a particular segment can allow firms to charge a premium price.
Concentration Strategy
Using a concentration strategy means focusing all a firm’s resources on delivering a product or set of products specifically aimed at meeting a particular segment’s needs and wants— for example, marketing clothing for tall or large men. The advantages of employing a concentration strategy include gaining a dominant share of a particular market and mini- mizing operating costs. The risks associated with such a strategy include a decline in the segment as a whole, a shrinking of the segment’s purchasing power, changes in consumer tastes, or the entrance of a strong competitor.
Customization Strategy
A customization strategy is a specialized approach aimed at satisfying the wants and needs of a single customer through a “custom designed” offering. This approach can be seen in neighborhood stores that cater to local customers. It’s also seen in the targeted ads that now appear in many online sites, which draw from large databases of information gathered from online interactions.
In recent years, some firms have moved toward a mass customization strategy, integrating technological know-how and customer input to provide products and services to the needs and preferences of individual customers. Many computer manufacturers, for example, allow customers who visit their sites to “build” their own computers, offer upgrades and accessories, and provide the opportunity to “chat” with representatives. Some firms go even further, offering options for personalization, allowing customers to customize their products in a way that uniquely meets their needs and preferences.
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Targeting Considerations
Few firms enjoy unlimited resources, so choosing the most viable target market or markets to serve is one of the most important tasks marketers face. Several criteria must there- fore be considered when making this decision, including
■ Size: Is the segment large enough to merit the costs and labor of the targeting effort?
■ Potential: Is there a genuine need for the product or service among consumers in a particular segment, together with customer willingness and resources to purchase it?
■ Measurability: Can the firm obtain reliable information about the size, nature, behavior, and profitability of the segment?
■ Accessibility: Can the firm reach segments through advertising programs or distribution channels?
■ Compatibility: Do the products or services and marketing mix fit the firm’s objectives, resources, and other capacities?
■ Stability: Is the segment growing or at least enduring?
■ Defendability: Can the firm withstand the emergence of a strong competitor?
Positioning
Marketers use product positioning to create and maintain an image that uniquely identifies a product or service and distinguishes it from the competition in each segment they wish to reach. Positioning strategies may include differentia- tion based on value, distinctive product attributes, unique symbols that define a product, and/or the relationship of a brand, product, or service to something similar offered by a competitor.
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When developing a positioning strategy, many firms create a perceptual map to distinguish a product in the minds of con- sumers. Exhibit 2.4 on page 65 illustrates a perceptual map for images of pain relievers. Additionally, when positioning a product, marketers typically focus on one or more distin- guishing features as a basis. The four most important criteria noted in your textbook are desirability, uniqueness, visibility, and affordability.
Irrelevant Attributes and Positioning
Irrelevant attributes are characteristics that appear to distin- guish a product from a similar one. For example, soaps may be distinguished by their scent or color, which doesn’t really impact their effectiveness. In the short term, irrelevant attrib- utes may boost sales, but over time their effectiveness as an incentive often diminishes in the face of competition.
Selecting a Unique Selling Proposition
When firms select and focus their marketing efforts on a single benefit that distinguishes a product or service, they’re employ- ing what’s known as a unique selling proposition (USP). As your textbook notes, Volvo has highlighted its excellent safety record as a feature across all of its marketing materials. This focus has established Volvo in the minds of consumers as number one in safety along with what some researchers refer to as a mental product ladder. Another USP is creating a personality for the brand or product, which serves as the basis for a large promise of benefits for the customer.
Repositioning
Of course, it’s possible that the competitive environment may change. If that happens, marketers must adapt their positioning strategies and reposition the brand by modifying its formulation, emphasizing new or different uses or benefits, or changing the brand image or design. Repositioning is typically supple- mented through promotion, advertisement, and different pricing strategies. Communication efforts, which can be quite expensive and time-consuming, are also critical to a repositioning effort.
Consumer Behavior24
Review any material you found difficult. Then complete Self- Check 2 and Chapter 2 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
After you complete Self-Check 2 and Chapter 2 Homework, review any material from Assignments 1 and 2 that you found difficult. When you’re sure you understand the information covered in Lesson 1, take the examination.
When you complete the exam, you’ll be ready to begin Lesson 2.
Key Terms
Term Page
mass-market strategy 41
market segmentation 41
market targeting 41
positioning 42
geographic segmentation 44
demographic segmentation 45
geodemographic segmentation 50
psychographic segmentation 54
AIO inventories 54
behavioral segmentation 55
market profile 57
undifferentiated strategy 58
multisegment strategy 59
concentration strategy 61
customization strategy 61
mass customization 61
personalization 62
perceptual map 64
repositioning 66
Lesson 1 25
Self-Check 2
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Market targeting is the act of dissecting the overall marketplace into a number of sub-
markets that may require different products or services and thus can be approached
with different marketing mixes.
______ 2. A manufacturer that subdivides the market based on age is using
demographic segmentation.
______ 3. A retailer who subdivides the market by stage in the family life cycle is using
behavioral segmentation.
______ 4. PRIZM, ESRI Tapestry, and PersonicX are all basic geodemographic
segmentation systems.
______ 5. In a concentration targeting strategy, the company individualizes its products and
services to meet each customer’s specific requirements.
(Continued)
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Self-Check 2
Questions 6–10: Select the one best answer to each question.
6. A _______ strategy is based on the assumption that there’s a single, large, homogeneous marketplace with common needs.
a. multisegment c. concentration b. mass market d. customizing
7. A health club that targets persons who enjoy aerobics employs _______ segmentation.
a. demographic c. geodemographic b. geographic d. psychographic
8. An undifferentiated targeting strategy would most likely be used when a
a. product is relatively new to the marketplace. b. product’s price is higher than the competing products. c. product faces intense competition. d. product is heavily advertised.
9. Factory 121, a Swiss watch company, established a website where customers can create and design their own individually made Swiss timepieces in a fun and playful manner. This manner of conducting business exemplifies a(n) _______ strategy.
a. undifferentiated c. concentration b. multisegment d. mass customization
10. A product’s _______ refers to the manner in which it’s perceived by consumers in relation to similar products offered by the competition.
a. position c. portrait b. market share d. placement
Check your answers with those on page 139.
Individual Influences on Behavior
ASSIGNMENT 3 Read this introduction. Then read Chapter 3, “Consumer Perception” pages 73–106, in your textbook, Consumer Behavior.
Chapter 3 examines the vital role perception plays in shaping consumer behavior. As you read through the material, you’ll learn about the various stages of the perception process, as well as factors that influence perception itself.
What Is Perception?
Your textbook begins with a basic definition of perception, which is understood as the process of selecting, organizing, and interpreting sensations into a meaningful whole. As is pointed out, perception is subjective and can be manipulated or altered by many factors. Understanding the dynamics of perception is critical to developing a successful marketing plan.
Exposure, Attention, and Sensation
The fundamental building blocks of perception are three interrelated experiences. The first is exposure, or the act of deliberately or accidentally coming into contact with environ- mental stimuli. The second is attention, which is directing the mind to a stimulus or a task. The third is sensation, a process that involves receiving input from the sensory receptors (eye, ears, nose, mouth, and touch) and the transmission of this information to the brain through the nervous system.
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Sensory Systems
Exhibit 3.1 on page 78 illustrates the process of perception— that is, the relationship between the sensory organs, the sense faculties (such as sight, smell, and taste) and the processing and interpretation of sensory stimuli. The material in this section examines in detail the role and importance of each area of sensory perception.
For example, research indicates that nearly 80 percent of the information we receive from our environment is visual. This is a key understanding in product design, as well as develop- ing marketing or promotional materials that attract interest. Likewise, smell plays a significant role, especially in arousing emotional responses and triggering memories.
The role of taste is understandably central in the success of introducing or repositioning a food or beverage. Sound, meanwhile, plays a key role in influencing consumer perception. In-store announcements and spoken tag-lines in television and radio advertisements can be instrumental in shaping consumer responses; while music, skillfully utilized in retail or restaurant settings and advertising, can greatly impact consumer experience. Touch also plays a vital part in con- sumer behavior, particularly regarding items like clothing and furniture, where the feel of fabric, wood, and other mate- rials often determines the choice of one product over another.
While the five senses are necessarily explained separately, they’re actually closely interrelated. For example, the sense of taste often works with the sense of smell. In some instances, all five senses are so deeply integrated that they function as a sort of sixth sense, an experience referred to as synesthesia.
Input Variation and Its Effect on Sensation
Variations in the amount, variety, and intensity of sensory input can have a profound effect on consumer behavior. People tend to become more sensitive in environments where stimuli are minimal. This insight helps us to understand why people tend to just ignore advertisements when confronted with too
Lesson 2 29
many promotional messages—a situation referred to as perceptual overloading. In such situations, a capacity known as perceptual vigilance—an automatic ability to filter out sensory stimulation—takes over.
Perceptual Selectivity
Most of us are capable of filtering the massive amounts of stimuli we receive through our environment on a daily basis—a key factor in understanding consumer behavior. For example, we demonstrate selective exposure—the tendency to ignore media or advertising related to topics unimportant to us—and pay selective attention to information that interests us, while disregarding information that isn’t relevant to our needs and concerns. The influences on perception are illustrated in Exhibit 3.2 on page 85.
Two other processes play important roles. Perceptual defense blocks stimuli that adversely impact our beliefs or self-image. Selective sensitization, meanwhile, predisposes us to be open to stimuli that conform to our needs, preferences, and desires.
After our attention has been engaged by stimuli, we go through a process of consciously interpreting our perceptions. At this point, our perceptions begin to be weighed against memory and experience as a means of determining its relevance and emotional effect, a process referred to as selective interpretation.
The processes involved in perceptual selectivity present cer- tain challenges to marketers, who must find creative ways to engage consumers’ attention. This effort is especially critical in today’s marketplace, where consumers are bombarded with advertising and enjoy the capability of skipping or fast- forwarding through television advertisements or blocking online ads. In addition, they must contend with adaptation, which is the capacity to simply filter out stimuli with which people have become overly familiar.
Consumer Behavior30
Stimulus and Individual Factors of Perception
Consumer perceptions are heavily influenced by the shape, size, scent, color, or taste of a product—the physical attrib- utes that attract or direct attention, which are collectively referred to as stimulus factors. Additionally, perceptions are influenced by individual factors, such as a consumer’s needs, goals, experiences, expectations, and lifestyle. One important individual factor is attention span. People can pay attention only to a small number of inputs at a time, generally collected in what are known as chunks, organized groups of information.
Research into the ways that consumers process information to form perceptions indicates two distinct pathways. Bottom- up processing begins with registering the stimulus factors, which are then sorted and organized in higher regions of the brain, and ultimately registered in long-term memory as a distinctive whole. Conversely, top-down processing begins with individual factors—such as memories, needs, interests, beliefs, expectations—that then influence the consumer’s per- ception of the meaning of a stimulus. Both pathways are illustrated in Exhibit 3.3 on page 89.
Threshold Levels
From studies of the relationship between sensory stimulation and sensation, researchers conclude that each of the five sen- sory faculties—sight, hearing, smell, taste, and touch—has limits in terms of its ability to respond to the intensity of stimuli. Three such limits, or thresholds, have been identified:
■ The absolute threshold—the lowest level of intensity at which a stimulus may be detected
■ The terminal threshold—the maximum intensity of a stimulus, beyond which no greater sensation is detected
■ The differential or just-noticeable difference (JND) threshold—the smallest increase in intensity that a person can detect
Lesson 2 31
The JND threshold is of particular interest to marketers, depending on whether or not they hope to achieve or avoid a detection of difference in a product’s size, quality, price, or other attributes.
Situational Influences on Perception
In addition to stimulus factors and individual factors, perception can also be influenced by the situation in which consumers find themselves. How we feel at a particular time and in specific circumstances represents a mental and emo- tional state known as a situational self-image, which, in turn, influences how we respond to stimuli.
A number of environmental conditions, known as situational variables, contribute to consumer perception—and therefore consumer behavior. These include
■ Physical surroundings
■ Social surroundings
■ Task definition, or the role one plays in the purchasing process
■ Time perspective (when a consumer goes shopping relative to the time of year, time of day, and other time-related events)
■ Antecedent state, the physical or psychological state of a person immediately preceding his or her current state
Gestalt Psychology
A different understanding of the perceptual process is held by Gestalt psychologists, who advocate that people perceive stimuli as complete wholes and meaningful patterns. The German word Gestalt may be translated as “whole or total impression.” Certain Gestalt principles are particularly relevant to marketers when considering consumer behavior:
■ Closure, the tendency to perceive complete objects even when parts are missing
■ Proximity, the association of one object with another based on spatial or temporal closeness
Consumer Behavior32
■ Context, the surroundings, situation, or setting in which an object is perceived
■ Figure and ground, the suggestion that objects are perceived in relationship to their background
Perceptual Categorization
Another aspect to consider is the tendency to group objects into logical categories or classes, a process known as perceptual categorization. Consumers tend to mentally arrange similar items—such as detergents, fruits, or dairy products—into easily definable categories. Within each category, there may also be subcategories. For example, cars may be subdivided into luxury cars, economy vehicles, trucks, and minivans. Marketers can use this understanding to better position their products in categories that consumers can easily recognize.
Given the complexity of the marketplace and the variety of products available, consumers often rely on cues or bench- marks to guide their purchasing choices. Such cues are referred to as surrogate indicators and may include such attributes as brand, price, and country of origin.
Consumers also tend to differentiate between products through prototype matching, a process of comparing alternative brands in a product category to a standard, or leading brand. Using the leading brand as a perceptual guide, or prototype, the consumer gauges how well the product they’re considering measures against the ideal.
Perceptual Inference
Beliefs about products, brands, stores, and firms based on prior experience or previously acquired information such as product reviews create another level of influence, referred to as perceptual inferences. Your textbook identifies three such inferences:
■ Evaluation-based inferences (also known as the halo effect) are associations based on prior positive or negative experience with a product or brand.
Lesson 2 33
■ Similarity-based inferences arise from associations between new or unfamiliar products with familiar ones.
■ Correlational influences are based on general ideas applied to specific products. For example, if a consumer believes that the higher the dosage of an ingredient in allergy medication is better, he or she will likely choose the brand that contains the highest dosage.
Schema and Scripts
Information about objects is typically stored in consumers’ memory in an organized manner that allows people to more efficiently shop for goods and services. Cognitive psychologists refer to these organizational frameworks as schema, sets of expectations that help to understand and interpret new information. General schemas—for example, expectations about automobiles—may be subdivided into more specialized subschemas—for instance, understandings and expectations associated with hybrids or standard transmission.
We also organize our understanding of appropriate behavior in response to recurring events (or events similar to experi- ences we’ve had in the past) according to scripts. In general, these serve as outlines or patterns that guide us through var- ious interactions toward an expected or foreseeable outcome.
Perception and Images
Of critical importance to marketers is the image of a brand and its associated products. In marketing terms, the word image refers to the overall impression of what a firm, product, brand or store represents. A number of elements—including stimu- lus factors, individual factors, situational factors, advertising, and symbols—must be carefully integrated to create and maintain a successful image. Additionally, the image must be designed in a way that appeals to the targeted market. As your textbook notes, the image created for Armani suits differs significantly from that of suits available at Sears.
Images aren’t confined only to brands and products. Stores, too, promote and maintain an image tailored to meet the needs and expectations of their targeted customer base.
Consumer Behavior34
The low-price image associated with Walmart is aimed to appeal to a different segment than the fashionable, exclusive, and expensive image promoted by Saks Fifth Avenue or Nieman Marcus.
An effective marketing strategy takes into account the impor- tance of imagery, the process by which consumers visualize sensory information in what’s commonly referred to as work- ing memory—the ability to retain and manage information over short time periods. Images are created and maintained through promotion. Advertising, in particular, is often referred to as image management.
Creating and maintaining a clear, positive image is crucial to a firm’s success. When dramatically adverse events occur, products are discovered to have defects, or services become unreliable, firms—and marketers especially—must work hard to restore their image or the image of their products.
Successfully maintaining an image over time results in a per- ception of added value referred to as brand equity—a perceived advantage of a particular brand within a product line or cate- gory over other brands in that line or category. Maintaining brand equity not only grows profit and extends market share, it also helps to ensure loyalty.
Risk Perception
Exchange almost always involves some element of risk, and the perception of risk involved in purchasing goods and services is another factor that marketers need to consider in under- standing consumer behavior. In general, the perception of risk can be broken down into five categories:
■ Functional risk, the possibility that the product or service doesn’t perform as expected
■ Financial risk, the prospect that the product or service may not be worth the cost
■ Physical risk, the potential danger the product or serv- ices may pose to consumers, their households, or the environment
Lesson 2 35
■ Social risk, an evaluation of the way others may view the purchase
■ Psychological risk, the possibility that an incorrect choice may damage a consumer’s self-image
Key Terms
Term Page
perception 75
exposure 77
attention 77
sensation 77
synesthesia 83
perceptual overloading 84
perceptual vigilance 84
selective exposure 84
selective attention 84
perceptual defense 84
selective sensitization 85
selective interpretation 85
adaptation 87
stimulus factors 87
individual factors 87
chunk 88
bottom-up processing 88
top-down processing 89
absolute (lower) threshold 90
terminal (upper) threshold 90
differential threshold or just noticeable difference (JND) 90
situational self-image 92
situational variables 92
Gestalt 94
closure 95
(Continued)
Consumer Behavior36
Review any material you found difficult. Then complete Self- Check 3 and Chapter 3 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
grouping 95
proximity 95
context 95
figure and ground 95
perceptual categorization 96
surrogate indicators 97
prototype matching 98
perceptual inferences 98
schema 99
script 99
image 100
imagery 102
brand equity 103
Lesson 2 37
Self-Check 3
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Three concepts intimately relate to perception: exposure, processing, and outcome.
______ 2. Research shows that a change in package color can win the attention of consumers
who aren’t loyal to a particular brand of product.
______ 3. Perceptual vigilance is a term used to express our ability to discard much of what we
perceive through our senses.
______ 4. The terminal threshold is the lowest level at which an individual can
experience a sensation.
______ 5. A product’s image can differ greatly from its physical attributes.
(Continued)
Consumer Behavior38
Self-Check 3
Questions 6–10: Select the one best answer to each question.
6. David is a heavy smoker. One evening while watching TV, he came upon a report that cited new evidence linking cigarettes to a variety of heart and lung diseases. David immediately discredited the reliability of the studies that led to such conclusions. David’s action is an example of
a. selective attention. c. perceptual sensitization. b. selective exposure. d. perceptual defense.
7. Beverly eats at Buckeye’s restaurant because of the good manners displayed by its waiters. In this case, Beverly’s behavior is being influenced by the situational variable known as the
a. antecedent state. c. task definition. b. time. d. social surroundings.
8. In the information processing domain known as bottom-up, which of the following regarding a car-buying process would qualify as sensory inputs that have a strong bearing on the buyer’s perception?
a. A car’s size and styling b. The buyer’s needs, interests, and expectations c. The perception of functional risk d. Brand equity
9. A _______ is a set of expectations that provide a structure for understanding and interpreting new information.
a. halo effect c. schema b. script d. context
10. A belief that a person unconsciously or consciously assigns to a product based on previously acquired information and one’s own personal experience is known as
a. a perceptual inference. c. prototype matching. b. perceptual overloading. d. subliminal perception.
Check your answers with those on page 139.
Lesson 2 39
ASSIGNMENT 4 Read this introduction. Then read Chapter 4, “Consumer Learning and Memory” pages 109–143, in your textbook, Consumer Behavior.
What Is Learning?
In terms of consumer behavior, learning is understood as a vehicle through which consumers adapt to change and solve problems. Nearly all aspects of human behavior involve some type of learning. Chapter 4 examines three major schools of learning theories as well as the processes of memory and forgetting.
The chapter begins with a broad definition of learning as an experience that produces relatively lasting changes in a per- son’s capabilities and behavior. It also offers a more specific explanation of the term as a process through which changes occur in a person’s long-term memory. In the area of consumer behavior, the definition is even more specifically understood as the acquisition of skills and knowledge that allows people to function in the marketplace.
Motivation plays a key role in understanding how involved consumers are in the process of learning about products and services. In low-involvement situations, consumers have little or no motivation to take in information about certain products or services. In high-involvement situations, consumers are highly motivated to learn about specific products or services. As you saw in the hypothetical case presented in Chapter 1, the Donato family was highly motivated to learn about the effects of getting a dog.
Learning Theories
Psychologists and social scientists have presented a variety of theories describing how people learn. Your textbook focuses on three particular theories especially useful to marketers, who face the task of motivating consumers.
Consumer Behavior40
Classical Conditioning
Classical conditioning, based on the work of Russian physiol- ogist Ivan Pavlov, represents the view that learning involves forming associations between environmental events, or stimuli. Exhibit 4.1 on page 114 illustrates the principle of classical conditioning. Research has shown that associating certain types of music, humor, or other stimuli with a product can positively or negatively impact consumer behavior.
According to the classical conditioning model, four conditions must be met for learning to occur:
■ Repetition
■ Contiguity, or the spatial or temporal proximity of objects
■ Contingency, presenting stimuli in the proper order
■ Congruity, the consistency or relatedness of consecutively presented cues that make up the entire stimulus event
Operant Conditioning
Operant conditioning represents the view that learning is achieved through experiencing the positive or negative consequences of behavior. When a certain type of behavior is rewarded by a positive or pleasant consequence, a habit is formed. In psychological terms, the type of reward received or consequence experienced is known as reinforcement. In mar- keting terms, positive reinforcement encourages behavior with pleasant consequences, such as enjoyment of a product or service. Negative reinforcement, not be confused with punishment, refers to the relief or removal of a negative or painful situation. Exhibit 4.2 on page 119 offers a schematic illustration of the process of operant conditioning.
Like classical conditioning, learning though operant conditioning depends on certain criteria. There must be a reinforcement schedule, a pattern in which reinforcements are offered. The schedule may be continuous, or intermittent. Timing also plays a key role, and is described in terms of practice schedules. Massed, or concentrated, practice schedules concentrate learning over a brief period to speed up the learning process, whereas spaced, or distributed, practice schedules spread the pace of learning over a longer period to maximize retention.
Lesson 2 41
Marketers employ various strategies to apply operant condi- tioning principles, often breaking down larger behaviors into smaller increments and reinforcing behaviors leading up to a purchase—a process known as behavior shaping. Another strategy is ecological design, which is planning a physical space to elicit a favorable consumer response. Ecological design plays a critical role in what researchers in the field of consumer behavior refer to as the servicescape, the combina- tion of physical and social elements that influence consumer perception in a consumption setting.
Applications of Conditioning Theories: Stimulus Generalization and Discrimination
Both classical and operant conditioning models of learning note two prominent tendencies in people’s response to stimuli. The first is generalization, a tendency to apply the response to a particular product to a whole range of similar products. Conversely, stimulus discrimination represents the tendency to differentiate between and respond differently to similar, typically competitive, products.
Cognitive Learning
Conditioning learning theories are based on the assumption that learning is accomplished through behavior. By contrast, cognitive learning theory advances the view that learning occurs through the thought processes applied to achieving a goal or solving a problem. Cognitive learning theory also emphasizes the role of subjective experience—a synthesis of beliefs, values, attitudes, experiences, and expectations—in the way that we process and adapt to new information.
Neo-Pavlovian Conditioning
In recent years, researchers have begun to reexamine classical conditioning models in light of the insights offered by cogni- tive learning theory. As a result, a new model, neo-Pavolvian conditioning, has emerged. Integrating elements of both con- ditioning and cognitive models, neo-Pavolvian conditioning theory recognizes that learning isn’t limited to acquiring new
Consumer Behavior42
behavioral responses to stimuli, but rather involves develop- ing knowledge about the environment through complex associations among a wide variety of objects and events.
Which Learning Theory Do Marketers Employ?
The decision to apply the principles of different learning theories in the development of marketing strategy varies from firm to firm and product to product. As your textbook notes, the Walt Disney Company relies upon classical conditioning through the instant response to the well-known Mickey Mouse character. Sony relies in large part on operant conditioning by featuring the superior quality of its products as a positive reinforcement tool. Other firms use cognitive learning theory principles to provide logical, information-based consumer appeals.
Learning and Hemispheric Specialization of the Brain
Over recent decades, researchers have advanced the view that learning is influenced by hemispheric specialization of the brain—an understanding that the left and right hemispheres of the brain process, organize, and encode information differently. The left hemisphere specializes in logical, analytical, and verbal processes, while the right hemisphere focuses more on recog- nizing and storing patterns of information—and is particularly adept at recognizing and responding to visual patterns.
The insights gained can be applied in various ways. One such application involves distinguishing learners into four distinct types. Another involves designing information-heavy marketing materials that engage to the logical, analytical left hemisphere, and more visual, holistic messaging that engages the right hemisphere.
Lesson 2 43
Learning in a Social Context: Vicarious Learning
A number of researchers have concluded through the study of human behavior that learning frequently occurs in a social context. In particular, people tend to change their behavior after observing the activity of others and the consequences of that behavior. This process is known as vicarious learning.
Learning Curves
Learning is not a static process. As we continue to repeat patterns of thought and behavior, the tasks we perform become easier. This is known as the learning curve or experience effect, which has important implications in predicting and shaping consumer behavior.
Through learning, we develop habits, which can be translated into brand loyalty, the habit of consistently choosing a specific brand from among a variety of similar, competing products. Marketers can encourage brand loyalty through various rela- tionship marketing activities that build positive bonds with consumers.
In many instances, however, brand loyalty results simply from inertia, the habit of choosing a particular brand because it’s familiar. This is a low-involvement process that can sometimes lead to consumers switching brands, because they don’t recognize differences between different brands—a situation referred to as brand parity. Researchers have identified four distinct purchasing patterns associated with switching brands:
■ Reversion—switching back to an original brand
■ Conversion—a situation in which consumers remain loyal to a new brand
■ Vacillation—random switching between brands
■ Experimentation—a more systematic trial of different brands
Consumer Behavior44
Memory and Retention
An effective marketing strategy depends in large part on developing messages that consumers can easily remember and retain over long periods. To facilitate this, marketers often employ mnemonic devices, auditory or visual cues that condense information about a brand, product, or service in a way that can be easily retained. Prime examples include Apple’s iconic brand image and the “Have it your way” slogan used by Burger King.
The prominent role of search engines in contemporary life poses a certain challenge to today’s marketers. Referred to as the Google effect, consumers appear to be less reliant on retention when information is widely and readily available through a quick search.
Carefully study pages 136–138, which explain the complex structure of memory, explaining the differences between sensory memory, short-term memory, and long-term memory. Sensory memory, the foundation of memory, involves the initial processing of information, typically associated with an object’s physical attributes. After the initial phase, information is sent to short-term memory, the storage function or system that allows us to quickly process information and hold it for brief (30 seconds or less) periods. Short-term memory can hold only about 4–7 bits of information at a time. The process is facilitated by rehearsal, which allows the information to be encoded—transformed into symbols such as words or images that can be stored as a perceived idea.
Long-term memory, by contrast, is a kind of information warehouse in which ideas and information are stored for much longer periods. Long-term memory is organized in terms of knowledge structures, groupings of related pieces of information into larger wholes.
Information Retrieval
The process through which we access information stored in long-term memory is known as information retrieval. Marketers can facilitate information retrieval through simple visual or auditory cues, like the “He likes it! Hey Mikey” device used by Quaker Oats to promote Life Cereal.
Lesson 2 45
Extinction and Forgetting
The loss of information, skills, and behavioral responses is variously referred to as extinction and forgetting. Typically, extinction occurs when there’s a break in the link between behavior and an expected reward. Forgetting typically occurs when a stimulus is no longer repeated or perceived.
Interference—the process of acquiring new information that competes with information acquired earlier—is considered a major factor in the process of forgetting. Your textbook iden- tifies two types of interference: retroactive, in which recently acquired information interferes with the recall of previously learned information, and proactive, in which prior learning takes precedence over newly acquired information. The dynamics of interference are illustrated in Exhibit 4.4 on page 141.
Because of the variety of competing products in today’s marketplace, interference poses a significant challenge for marketers. Information overload can cause confusion in the minds of consumers, especially given the competitive nature of advertisements promoting different brands within a particular product category.
Key Terms
Term Page
learning 111
low-involvement learning 113
high-involvement learning 113
classical conditioning 113
repetition 116
contiguity 116
contingency 117
congruity 118
operant (instrumental) conditioning 118
positive reinforcement 119
negative reinforcement 119
(Continued)
Consumer Behavior46
Key Terms
Term Page
reinforcement schedule 120
continuous reinforcement 120
intermittent reinforcement 120
massed (concentrated) practice 120
spaced (distributed) practice 120
behavior shaping 121
ecological design 121
servicescape 121
stimulus generalization 122
stimulus discrimination 122
cognitive learning 124
subjective experience 125
neo-Pavlovian conditioning 127
hemispheric specialization of the brain 129
left hemisphere 129
right hemisphere 129
vicarious learning 131
learning curve (experience effect) 132
brand loyalty 133
inertia 134
brand parity 135
mnemonic devices 135
Google effect 136
sensory memory 136
short-term memory (STM) 136
encoding 137
long-term memory (LTM) 137
knowledge structures 137
(Continued)
Lesson 2 47
Review any material you found difficult. Then complete Self- Check 4 and Chapter 4 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
information retrieval 138
retroactive interference 140
misinformation effect 141
proactive interference 141
Consumer Behavior48
Self-Check 4
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. In high-involvement learning situations, individuals are motivated to process the
information to be learned.
______ 2. The learning principle of contingency states that the unconditioned stimulus should
precede the conditioned stimulus.
______ 3. The learning principle of contingency states that the conditioned stimulus should
precede the unconditioned stimulus.
______ 4. The concept of hemispheric specialization of the brain is of special importance to
marketers in guiding their selection of promotional media.
______ 5. Proactive interference occurs when misleading details are suggested to a person after
witnessing an event.
(Continued)
Lesson 2 49
Self-Check 4
Questions 6–10: Select the one best answer to each question.
6. Repetition, contiguity, contingency, and congruity are basic premises of which of the following learning theories?
a. Classical conditioning c. Cognitive learning b. Operant conditioning d. High-involvement learning
7. In the realm of conditioning theories, extinction is caused by
a. high involvement. c. contingency. b. contiguity. d. ceasing to reinforce a learned response.
8. Rebecca owns an upscale clothing store. To increase the shopping enjoyment of her customers, she changed the color scheme of her store, set up attractive displays, and started playing relaxing background music. Rebecca’s calculated planning of physical space is known as
a. spaced practice. c. behavior shaping. b. massed practice. d. ecological design.
9. Charles has always been impressed with the quality of Kellogg’s cereals. When he saw a new brand of Kellogg’s cereal in the store, he assumed that it must also be good. This is an example of
a. behavior shaping. c. stimulus generalization. b. reinforcement. d. stimulus discrimination.
10. Martin is a financial consultant at XYZ Financial Consulting. He works until 7 o’clock every evening because he notices that those who work longer hours are more likely to get promoted. Martin’s practice of working longer hours is a result of
a. classical conditioning. c. low-involvement learning. b. vicarious learning. d. retroactive inference.
Check your answers with those on page 140.
Consumer Behavior50
ASSIGNMENT 5 Read this introduction. Then read Chapter 5, “Consumer Attitudes” pages 149–180, in your textbook, Consumer Behavior.
What Are Attitudes?
Attitudes are defined as learned predispositions to respond consistently to a particular object. This definition incorporates three key elements that make up attitudes: They’re learned, they’re consistent, and they’re responsive, formulated as a result of personal experience and acquired information. Anything about which we hold an attitude is referred to as an attitude object. Chapter 5 explores consumer attitudes, which many experts believe are the single most important influence on consumer behavior.
Valence, Intensity, and Centrality of Attitudes
Attitudes can be further understood in terms of three specific aspects. The attraction or repulsion that directs people toward or away from an object is referred to as valence. The strength with which people hold their attitudes is described in terms of intensity. The proximity with which an attitude reflects a person’s core values and beliefs is referred to in terms of its centrality.
Sources of Attitudes
A variety of sources contribute to the formation of attitudes. Your textbook identifies three of the most significant sources as
■ Personal experience with objects
■ Social interaction
■ Exposure to mass media, the Internet, and social media
Lesson 2 51
The Function of Attitudes
Attitudes serve four major functions in shaping our responses to various objects. Some attitudes are utilitarian, in the sense that we view an object as a means to achieving an end. For example, our attitudes toward cosmetics or colognes are based on whether or not those particular products effectively make us look prettier or smell nicer. The ego-defensive function comes to the fore when we’re seeking products that protect our sense of self and mask personal inadequacies. The value- expressive function of attitudes guides consumers toward products or services that reflect their primary values and individual preferences. The knowledge function helps them to organize, summarize, and predict the vast and complicated amount of information encountered every day.
Do Attitudes Determine Behavior?
While attitudes can influence behavior, research indicates that they aren’t absolute determinants of behavior. So far, studies show conflicting evidence regarding a correlation between an expressed attitude and actual behavior. Investigators have found more success in identifying when to expect a link between attitudes and behavior, which in turn depends on a number of moderating variables such as the qualities of the behavior (whether it’s generalized or specific), the qualities of the person holding the attitude, the qualities of the situation in which the behavior occurs, and the qualities of the attitude itself.
Consumer Behavior52
The Traditional Model of Attitudes
To better understand how attitudes are formulated and how they influence behavior, market researchers turn to the traditional model of attitudes, which holds that attitudes consist of three interrelated components:
■ The cognitive component—what someone thinks he or she knows about an object
■ The affective component—the positive or negative feeling about an object
■ The behavioral or conative component—the tendency to actually behave or intend to behave toward an object
Attitude Components and Marketing Strategy
Using the traditional model, marketers typically seek to address all three components. They create informative materials to address the cognitive component, the affective component with messaging that appeals to emotions, and the behavioral component by offering incentives such as coupons, samples, and rebates.
Fishbein’s Mutli-Attribute Model of Attitudes
University of Pennsylvania Professor Martin Fishbein introduced a different model of attitudes known as the multi-attribute model, which suggests that attitude objects have a number of attrib- utes that vary in importance to the same person. Fishbein theorized that a person’s overall evaluation of an object— referred to as an attitude-toward-the-object—resulted from the interaction between an individual’s beliefs about the object (which consists of a variety of specific attributes) and his or her evaluation of the presence and desirability of these attrib- utes in a brand.
Lesson 2 53
He further suggested that these variables could be quantified in a way that allowed marketers to numerically rate the atti- tudes toward their own products and those of competing brands. Exhibit 5.2 on page 162 offers a sample illustration of this quantification and rating formula.
However, because positive attitudes toward an object don’t necessarily translate into actual purchases, Fishbein and his associates eventually abandoned the attitudes-toward-object approach in favor of an attitudes-toward-action model of examining the relationship between attitude and behavior.
The Theory of Reasoned Action
Fishbein and his associate Icek Ajzen went on to develop a model known as the theory of reasoned action (TORA), in which behavior is determined by an individual’s intention to behave. According to this model, intention—the subjective determination to act in a certain way toward an attitude object—determines a person’s attitude toward purchasing an object.
Two primary factors contribute to taking action in the context of the TORA model. The first is attitude-toward-the-behavior, a general evaluation of the action and its consequences. The second involves consideration of subjective norms, which consist of our beliefs about what the important people around us think we should do or refrain from doing, along with our tendency to conform to those expectations.
Theories of Goal Pursuit and Trying
Other approaches explore the pursuit of goals, or objectives in which some obstacle stands in the way. Because life events tend to get in the way of achieving goals, however, behavior focuses more precisely on trying to achieve them. The theory of trying identifies three different attitudes about goals: atti- tudes toward the consequences of succeeding, attitudes toward the consequences of failing, and attitudes toward the process of striving to achieve a goal. According to this approach, consumers may perceive the purchase of a product as an
Consumer Behavior54
attempt to achieve a goal, and savvy marketers employ a variety of trial strategies to entice consumers to make an actual purchase.
How Attitudes Are Formed
Attitudes, as noted earlier, are learned responses that may be acquired through one or more of the learning models described in Chapter 4. According to the classical conditioning model, a positive response can be elicited by presenting a known brand— which serves as a conditioned stimulus—along with an unconditioned stimulus, such as a new product introduced under the brand’s name. Firms like Apple have capitalized on this type of conditioned attitude formulation by introducing products under a unified brand name.
Attitudes may also be formed through operant conditioning, for example by rewarding consumers with special deals and packages or, in the case of seasonal shopping, offering special discounts or prizes to early bird shoppers. According to the cognitive learning model, consumers form attitudes through exposure to information provided by marketers as well as through their own experience, knowledge, and goals.
Attribution Theory
Another model of attitude formation is attribution theory, which holds that people seek to understand the causes of events in their lives. If a task is performed more successfully and efficiently using one brand or product over another, the reason for the success is often attributed to the brand or product. Many graphics designers, for example, prefer Apple computers for their work because the tight integration between the operating system, hardware, and graphics software makes the process simpler and more efficient.
Marketers often include attributions when describing their products’ benefits. Interestingly, many consumers understand this marketing tactic, and formulate a more confident attitude towards firms and products that also include disclaimers. Pharmaceutical companies, in particular, have utilized this understanding by prominently noting the potential side effects of their products alongside the benefits.
Lesson 2 55
How Attitudes Are Changed
Attitudes are often hard to change, depending on their centrality, intensity, and the extremity of their valence. Negative attitudes toward a product or brand present mar- keters with an especially challenging task. To achieve attitude change, marketers rely on strategies derived from cognitive consistency theory and information-processing theory.
The foundation of cognitive consistency rests on the idea that people try to maintain consistency between the three components of attitude: beliefs, emotions, and behavior. To foster a change in attitude, marketers rely on creating some sort of dissonance, which, according to the model of cognitive dissonance theory, creates psychological tension between a person’s beliefs and behavior. When this tension is experienced, a person is moti- vated to change his or her beliefs or behavior to restore balance. Insurance companies and pharmaceutical companies, for example, play on consumer fears to create a dissonance that can be resolved only by purchasing their products.
By contrast, an information-processing approach relies on providing relevant facts to aid consumers in reaching a logi- cal conclusion that will result in a change in behavior. This strategy was successfully employed by Burger King several years ago, by promoting the fact that their hamburgers were charbroiled rather than fried, like McDonald’s. Consumers who perceived charbroiling as a healthier alternative would be more likely to change their purchasing behavior.
The information-processing approach relies upon several procedural steps to successfully bring about a change in attitude. These are outlined in Exhibit 5.3 on page 174.
In addition, a number of information-processing strategies can be employed, including
■ Making comparisons against competition
■ Emphasizing brand attributes
■ Adding new attributes
■ Providing knowledge of alternatives of consequences
■ Changing the relative value of attributes
Consumer Behavior56
Consumer Reaction to Marketers’ Attitude-Related Strategies
To gauge consumer response to marketers’ attempts to change attitudes, researchers have developed the elaboration- likelihood model (ELM), an approach that suggests that a consumer’s level of involvement determines the most suitable path to changing attitudes. The more relevant the information in the message is to the consumer, the more likely he or she is to be engaged by it or elaborate on the information. In high- involvement processes, consumers are more likely to carefully evaluate information, a process referred to as the central route to persuasion. When information is less relevant, consumers are less likely to process the information in a message, a phenomenon known as a peripheral route to persuasion.
Key Terms
Term Page
attitudes 151
attitude object 152
valence 152
intensity 152
centrality 152
utilitarian function 154
ego-defensive function 154
value-expressive function 156
knowledge function 156
traditional model of attitudes 159
cognitive component 159
affective component 160
behavioral (conative) component 160
multi-attribute model 161
attitude-toward-the-object 161
(Continued)
Lesson 2 57
Review any material you found difficult. Then complete Self- Check 5 and Chapter 5 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
theory of reasoned action (TORA) 163
intention 163
attitude-toward-the-behavior 164
subjective norms 164
goals 164
attribution 170
attitude change 171
cognitive consistency 171
cognitive dissonance theory 171
postpurchase dissonance 172
information-processing approach 172
elaboration-likelihood model (ELM) 176
central route to persuasion 176
peripheral route to persuasion 176
Consumer Behavior58
Self-Check 5
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Most shopping-related attitudes are peripheral.
______ 2. The two sources of attitude formation are social interaction and exposure to mass and
electronic media.
______ 3. In the traditional model of attitudes, the affective component is also known as the
conative component.
______ 4. In the realm of attitude formation, the practice of family branding applies classical
conditioning concepts to establish desirable positive attitudes toward the brand.
______ 5. Attitude-toward-the-ad models suggest that the factors of where, when, and in what
context an ad is seen are among the variables that may shape the attitudes we form
toward the ad and, in turn, toward the product.
(Continued)
Lesson 2 59
Self-Check 5
Questions 6–10: Select the one best answer to each question.
6. The _______ component of an attitude deals with what we think we know about an attitude object.
a. behavioral c. affective b. motivational d. cognitive
7. Fishbein hypothesized that an attitude-toward-an object is a function of a person’s beliefs about an object and the person’s
a. evaluative aspects of those beliefs. c. age. b. social class. d. environment.
8. According to _______, we attempt to ascertain the causes of events in our daily lives.
a. the theory of reasoned action c. balance theory b. attribution theory d. cognitive dissonance theory
9. According to _______, once an alternative has been chosen, attractive features of the rejected alternatives and unattractive features of the selected alternative become magnified in the consumer’s mind.
a. cognitive dissonance theory c. attribution theory b. the elaboration-likelihood model d. the theory of reasoned action
10. The _______ holds that recipients of a message process it differently based on their level of involvement.
a. multi-attribute model of attitudes c. elaboration-likelihood model b. theory of reasoned action d. traditional model of attitudes
Check your answers with those on page 140.
Consumer Behavior60
NOTES
Lesson 2 61
ASSIGNMENT 6 Read this introduction. Then read Chapter 6, “Motivation and Emotion,” pages 185–217, in your textbook, Consumer Behavior.
What Is Motivation?
Your textbook defines motivation as a state in which energy is mobilized and directed in a selective manner toward achieving desired goals. For motivation to occur, two conditions must be met. The first is arousal, a state of tension that occurs primarily from unfulfilled needs. The second is direction, the end toward which action is stimulated.
Chapter 6 explores the dynamics of motivation and describes the elements that constitute it. It also examines various theo- ries of motivation and discusses the function of emotions in driving consumer behavior.
Classifying Consumer Motivations
Motivation isn’t directly observed. Rather, it’s a hypothetical psychological construct, or abstraction, which social scientists infer from observations of behavior. Motivations are typically classified according to opposing pairs:
■ Conscious versus unconscious
■ High urgency versus low urgency
■ Positive versus negative
■ Intrinsic versus extrinsic
■ Rational versus emotional
Exhibit 6.1 on page 193 offers a partial listing of rational and emotional motives and the marketing appeals used to stimulate them.
Consumer Behavior62
Elements of Motivation
Motivation is understood to consist of four interrelated groups of elements. The first is needs, internal forces that stimulate behavior toward attaining goals. Needs are further subdivided into physiological needs, which are the essential physical requirements to maintain life, and acquired needs, which are learned and conditioned by relationships with those around us and the cultures in which we’re raised.
After needs have arisen, a state of tension occurs that prompts a person to satisfy, minimize, or eliminate the need. This tension is commonly referred to as motive.
This prompting to action is typically directed toward a specific result, referred to as a goal. In terms of consumer behavior, goals may be generic—associated with broad categories of products or services—or brand-specific, directed toward particular, identifiable, or labeled options within a product category.
The final group consists of desires, belief-based emotional elements that can be described in terms of longing, yearning, and strongly wishing for something.
Theories of Motivation
Researchers across a wide range of disciplines have sought ways to describe the underlying principles of motivation. For the sake of clarity, your textbook organizes these different theories into four basic categories.
Instinct theories suggest that motivations are based on geneti- cally transmitted physical and behavioral characteristics that enable members of a species to survive in their environment.
Drive theories, meanwhile, describe motivation in terms of the tension that arises when we sense a physical or psychological dissatisfaction or imbalance. Biologist William B. Cannon invented the term homeostasis to describe the self-regulating mechanism that keeps all bodily systems in balance. Drive theories are based on the idea that one is most motivated when one wants to remove a tension. Once homeostasis is restored, the motivation subsides.
Lesson 2 63
By contrast, arousal theories explain motivation in terms of a human need for stimulation. According to this category of motivational theory, people can be defined as high-sensation seekers and low-sensation seekers, depending on the intensity or thrill of the sensation they seek. A person’s inclination to seek or avoid challenging or thrilling activities is described in terms of seeking an optimal sensation level (OSL).
Cognitive theories describe motivation in terms of rational activities of problem solving and information gathering that aid us in dealing with our environments. In this view, mental processes such as learning, thinking, feeling, remembering, and forgetting are intertwined with purposeful behavioral activities.
Motivational Conflict
Often, needs, motives, and goals arise simultaneously, with varying degrees of intensity and direction. When multiple needs arise at once and fulfilling one goal presents a challenge to or inhibits fulfilling another, a person finds himself or herself in a situation of motivational conflict. Such conflicts are sometimes described in terms of approach, forces that propel movement toward a goal, and avoidance, forces that inhibit moving toward a goal. Exhibit 6.2 on page 203 illustrates three general cate- gories of motivational conflict:
■ Approach-approach, in which consumers must choose between two desirable objects or outcomes
■ Approach-avoidance, in which consumers must part with money, time, or other resources to obtain a product or service
■ Avoidance-avoidance, in which consumers must choose between two undesirable options, such as paying for major repairs to an old car or purchasing a new one
Consumer Behavior64
Motivation Research
In an effort to understand why consumers behave as they do and choose certain brands and products over others, marketers turn to motivation research, various tools and techniques developed to examine the forces behind consumer choices.
One such approach involves using projective techniques, specially designed psychological tools used during in-depth interviews to determine the real reasons behind behavior. Projective techniques essentially involve presenting interview subjects with an ambiguous scenario and asking them to comment on it or respond to it, thereby projecting themselves into the situation.
Association tests, such as free-word associations or sentence completions, examine and record the immediacy of a subject’s responses to verbal stimuli. The Zaltman Metaphor Elicitation Technique (ZEMT), by contrast, asks subjects to collect sets of images that represent their feelings about a particular topic as a means of determining their deeper, nonverbal responses to a product or brand.
Focus groups are a time-honored method of research that brings together a small group of people to discuss their reactions to a particular topic or object. Unlike structured questionnaires, focus groups are free-form discussions moderated by a leader, which allow for diverse thoughts and opinions to be voiced.
Emotions
Chapter 6 concludes with a brief examination of emotions, the feeling states that form the context for our motivations, goals, and behavior. Marketers often rely on strategies that elicit strong emotional responses as a means of driving pur- chasing behavior. Many successful strategies establish strong emotional connections to a specific brand or product, a process known as bonding.
The nature of emotions is a continuing area of research as scientists in different disciplines seek to trace the complex physiological and psychological interactions that both create and reflect emotions. Different emotions elicit different types
Lesson 2 65
of responses. Especially charged emotional situations can linger in memory, creating patterns of behavior that can be traced and studied.
Emotions are generally understood as individual responses to specific stimuli in the environment, whereas moods are typi- cally viewed as impermanent feeling states or frames of mind. Nevertheless, mood can influence behavior, as well. A person in a good mood is likely to be more flexible and open to trying new things than someone in a bad mood.
Marketing and Promotional Applications of Emotion
Marketing strategies—in particular, advertising—often use emotions that directly relate to a particular product’s attributes and benefits. For example, Rolex watches stress achievement and feelings of comfort and wealth. Other strategies involve remote emotional appeals, playing on emotions that aren’t necessarily related to the product or service, but make the advertisement or promotional vehicle more memorable—often through humor or sexual innuendo.
A variety of techniques have been developed to measure consumers’ emotional responses to advertising. The Pleasure- Arousal-Dominance (PAD) scale relies on emotion-signifying pairs of adjectives, such as “happy-sad,” to gauge levels of pleasure. The Self-Assessment Manikin (SAM) method repre- sents each PAD dimension with the images of a character arranged along a nine-point scale. The Emotional Measurement System (EMS) developed by the BBDO Advertising Agency tests responses to an advertisement by asking subjects to quickly sort through a large collection of photographs depict- ing different facial expressions and select those that best represent their feelings about the ad.
Consumer Behavior66
Key Terms
Term Page
motivation 187
arousal 187
direction 187
intrinsic motivation 190
extrinsic motivation 190
rational motives 190
emotional motives 192
needs 192
physiological needs 193
acquired needs 193
motive 194
goal 194
generic goals 194
brand-specific goals 194
desires 196
instincts 198
homeostasis 199
high sensation seekers (HSS) 200
low sensation seekers (LSS) 200
optimal stimulation level (OSL) 200
general sensation-seeking scale (GSSS) 200
motivational conflict 203
approach-approach conflict 204
approach-avoidance conflict 204
avoidance-avoidance conflict 204
motivation research 205
projective techniques 205
association tests 207
(Continued)
Lesson 2 67
Review any material you found difficult. Then complete Self- Check 6 and Chapter 6 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
Zaltman Metaphor Elicitation Technique (ZEMT) 208
focus groups 209
emotion 209
mood 211
bonding 214
Consumer Behavior68
Self-Check 6
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Conscious motives are referred to as latent motives.
______ 2. Needs are internal forces that prompt behavior toward goal-oriented solutions.
______ 3. In the majority of cases, motives are directed toward reducing bodily deficiencies,
whether biogenic or psychogenic.
______ 4. Using the Zaltman Metaphor Elicitation Technique to determine the type of individual
who is a likely buyer of a sports car, respondents are shown a set of photos of different
individuals, and are then asked to select the ones that they believe portray those who
are the most probable buyers of sports cars.
______ 5. Disequilibrium or imbalance of the state of homeostasis is a driving force that causes
motivation and impels action.
(Continued)
Lesson 2 69
Self-Check 6
Questions 6–10: Select the one best answer to each question.
6. When an individual engages in some behavior for the inherent pleasure of the activity itself, this situation is known as
a. positive influence. c. negative influence. b. intrinsic motivation. d. social influence.
7.T he four elements inherent in motivation are
a. needs, attitudes, goals, and desires. b. needs, motives, goals, and perceptions. c. needs, attitudes, motives, and desires. d. needs, motives, goals, and desires.
8. _______ theories suggest that people often seek stimulation instead of trying to avoid it.
a. Arousal c. Instinct b. Cognitive d. Drive
9. In using the projective technique known as the Thematic Apperception Test, a respondent is
a. shown a picture depicting some shopping action and is asked to interpret the situation. b. asked to provide 12 images or photos that represent his/her feelings toward the
brand/issue. c. given a number of incomplete sentences and asked to spontaneously complete each
thought. d. presented with a cartoon depicting two interacting individuals and asked to provide the
missing dialogue.
10. Shirley is having difficulty deciding whether she should spend her spring break in Florida or Arizona. Shirley is experiencing an _______ conflict because she can’t decide between two attractive alternatives.
a. avoidance-avoidance c. approach-avoidance b. approach-approach d. approach-resolve
Check your answers with those on page 141.
Consumer Behavior70
ASSIGNMENT 7 Read this introduction. Then read Chapter 7, “Personality, Lifestyle, and Self-Concept” pages 221–249, in your textbook, Consumer Behavior.
What Is Personality?
Chapter 7 explores several theories of personality and their application to marketing strategies. It also discusses consumer lifestyles as a basis for segmentation, targeting, and positioning. The chapter concludes with a discussion of self-concept and its effects on consumer behavior.
Your textbook defines personality as the sum total of an individual’s inner psychological attributes. Note the stress on the word individual. As you’ll see, everyone’s personality is different and represents a unique style of responding to environmental stimuli.
Diversity of Personality Theories
Theories of personality differ greatly. However most social sci- entists agree that personality is for the most part the social face of an individual’s experiences, which influence the way each person thinks, feels, acts, communicates, desires, and dreams. Marketers who understand the influences that shape personality use these insights to more successfully approach segmentation, targeting, and positioning as well as tailor more effective promotional appeals. Chapter 7 examines three promi- nent theories of personality together with their marketing implications.
Freudian Theory of Personality
Freud viewed personality as the outcome of interactions between three components of the human mind: the id, the component that demands pleasure or immediate gratification; the superego, a mainly unconscious storehouse of social, moral, and ethical rules; and the ego, the conscious component that mediates between the id’s drives and the superego’s controls.
Lesson 2 71
Freud held that anxiety served as a signal to the ego to the presence of danger, and therefore plays an important role in the development of personality. He described three different kinds of anxiety: reality, or objective, anxiety, which signals actual danger; neurotic anxiety, a conflict between the id and the ego associated with fear of the negative consequences of pleasure and gratification; and moral anxiety, which represents a conflict between the id and the superego, or a fear of one’s own conscience.
To deal with anxiety, Freud proposed that people develop various defense mechanisms, through which they deny or distort anxiety-producing situations in an attempt to protect the ego. Some of these are listed in Exhibit 7.1 on page 227. He also held that certain intense experiences of anxiety or extreme frustration or satisfaction of desire can permanently halt the development of personality, a situation he referred to as fixation.
Many promotional appeals are directed toward the id, emphasizing the pleasure or gratification offered by a product or service. Strategies that appeal to the ego are frequently designed to address relief from the stress or anxiety of daily living or of making purchasing choices. Appeals to the superego tend to address social, moral, or ethical concerns, persuading consumers to purchase products that are environmentally friendly or that represent sound, lasting investments.
Neo-Freudian Personality Theory
While Freud considered biological instincts and sexual drives as the basis of personality, several of his students offered a different view, based on social variables. Alfred Adler, for example, viewed personality as a set of behaviors aimed at achieving superiority and perfection, as a compensation for childhood feelings of inferiority. Karen Horney, meanwhile, proposed that personality develops as a response to the very early experiences of childhood insecurities and anxieties. She suggested three basic personality types: a compliant personality, which moves toward others when anxious or insecure; the aggressive personality, which moves against others when troubled; and the detached personality, which moves away from others when dealing with anxiety, tension, or other conflicts.
Consumer Behavior72
Erich Fromm held that people feel lonely and separated from nature and others and saw the development of personality as an effort to connect and enjoy feelings of love and security. Henry Stack Sullivan, meanwhile, viewed the development of personality as the result of a network of interpersonal rela- tionships in which a person is enmeshed, and that behavior stems from seeking rewarding social connections.
Marketing strategies that build on neo-Freudian theories typically emphasize the social aspects of consumer behavior, appealing to the love and concern for family, friends, and others, the desire to make a positive social impression or avoid a negative one.
In an effort to identify personality types, Joel B. Cohen developed a compliance-aggressive-detachment (CAD) scale paradigm based on a series of questions regarding the desirability or undesirability of different situations. Market researchers use the CAD scale paradigm to evaluate various topics such as purchase involvement, product evaluation, and social influences on consumption.
Trait Theory
Trait theory describes people in terms of their dominant characteristics, or traits, which appear as consistent behav- ioral responses toward environmental stimuli. The theory is built on the assumption that traits
■ are identifiable
■ are relatively stable across a variety of situations and environments
■ vary in intensity among individuals
Trait theory also assumes that a limited number of traits are common to most individuals and that people who have simi- lar traits with the same degree of intensity will share similar goals and behavior patterns.
Lesson 2 73
Marketers find this theory extremely useful because it allows them to appeal to a person’s specific tendencies, which are relatively easy to predict in a given situation. Commonly identifiable traits include
■ innovativeness, the degree to which a person likes to try new things
■ materialism, the extent to which a person likes to purchase and own products
■ self-consciousness, the degree to which someone is concerned about projecting an image of self to others
■ the need for cognition, the degree to which a person needs to think about things
A more extensive and detailed list of traits and their relation- ship to consumer behavior can be found in Exhibit 7.3 on page 233.
Measuring Traits and Marketing Applications of Trait Theory
An individual’s traits are typically identified through long questionnaires known as personality tests, which are designed to reveal their response tendencies. Results of personality tests can then be correlated with product purchasing data to identify purchasing behavior patterns that can then be applied to larger market segments. Such correlations can reveal quantifiable links between certain traits and post-purchase processes such as satisfaction, loyalty, and word-of-mouth.
They can also be used to predict behaviors. For example, high-sensation seekers have been shown by one study to enjoy trying new things and to respond positively to highly informative promotional appeals. Nevertheless, when apply- ing trait theory to market segmentation, marketers need to ascertain whether the segment is sufficiently large and demographically homogenous to reflect genuine potential.
Consumer Behavior74
Psychographics
As mentioned briefly in Chapter 1, psychographics is a segmentation approach that categorizes people according to their lifestyles. Psychographic profiles are most commonly identified through large-scale surveys aimed at determining people’s activities, interests, and opinions, which are commonly referred to as AIO inventories. Exhibit 7.4 on page 238 shows a sample of questions drawn from a typical AIO inventory.
One of the most widely used psychographic survey tool is the VALS system, a two-dimensional scale that provides a kind of psychographic segmentation map or graph. The system is based on the view that three primary motivations drive consumer behavior: ideals, achievement, and self-expression. These motivations form the basic framework for segmentation, and the horizontal dimension of the resulting map.
Additionally, the VALS system segments by resources, which include psychological, physical, demographic, and material data. These attributes make up the vertical dimensions of the map. The resulting map identifies eight distinct segments, each of which represents a unique combination of psychologi- cal and demographic characteristics. The eight segments are illustrated in Exhibit 7.5 on page 240. Exhibit 7.6, on page 241, provides a detailed description of each segment.
The Self-Concept
The term self-concept refers to the overall feelings and beliefs a person has about himself or herself. Arising through self- assessment as well as comparison with others and concern for others’ perceptions, self-concept is somewhat narrower in scope than personality, inasmuch as it reflects a person’s view about himself or herself. It’s a valuable indicator for marketers, however, because how people feel about them- selves and what they believe about themselves influence purchasing behavior.
Lesson 2 75
Variety of Self-Concept
Researchers have suggested that we hold a number of differ- ent self-concepts. Early work by the psychologist Carl Rogers, for example, indicates that we each hold images of our real self, an ideal self, an apparent self, and a reference-group self. Later research has identified other possibilities, such as the extended-self, which is defined in terms of one’s possessions, and the possible-self, or what one would like to become.
Measuring the Self-Concept
One of the most frequently used tools for measuring and identifying self-concept is the Q-sort technique. A subject is given a set of cards printed with a statement about qualities or situations and is then asked to sort them into piles that represent how accurately the subject feels the statement reflects himself or herself. A sample of Q-sort questions appears on the bottom of page 245.
Self-Concept and Social Roles
Self-concept is intimately related to the way we behave toward others and to the concern we feel about how we appear to others. These concerns and behaviors translate into purchasing behavior. For example, people who are very concerned about the image they project to others—referred to as high self- monitors—are more likely to choose products based on their evaluation of how the items will be perceived by others than low self-monitors, people who are less sensitive to the way they present themselves.
Self-Concept and Consumption
Research strongly indicates that the products and services that people consume typically help them define and project their self-concept and social identity, a phenomenon referred to as self-product congruence. This is an important insight for marketers in developing and extending brand images and personalities, because the choice of a particular brand often reflects the image the consumer has of himself or herself.
Consumer Behavior76
Review any material you found difficult. Then complete Self- Check 7 and Chapter 7 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
personality 223
id 226
superego 226
ego 226
reality (objective) anxiety 226
neurotic anxiety 226
moral anxiety 226
defense mechanisms 226
fixation 226
neo-Freudian theory 228
compliance-aggressiveness-detachment (CAD) scale 230
trait theory 232
traits 232
personality tests 235
psychographics 237
AIO inventories 238
VALS 239
self-concept 243
extended-self 245
possible-self 245
self-product congruence 247
Lesson 2 77
Self-Check 7
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Personality is the static sum of an individual’s inner psychological attributes that make
the person what he or she is.
______ 2. When Toyota claims to be the most environmentally conscious automaker due to the
firm’s introduction of hybrids and electric cars, Toyota is appealing to the id component
of Freudian personality theory.
______ 3. Consumers’ use of antiperspirants and mouthwashes in an effort to be sensitive
toward others and avoid offending them reflects an application of neo-Freudian
personality themes.
______ 4. Traits tend to be relatively stable and identifiable, but vary in intensity among
different individuals.
______ 5. The category known as makers is a VALS segment that can be described as poorly
educated and low-skilled.
(Continued)
Consumer Behavior78
Self-Check 7
Questions 6–10: Select the one best answer to each question.
6. According to Freud, the conscious control center that mediates the id’s uninhibited impulses and the superego’s constraints is known as the
a. defense mechanisms. c. id. b. self-concept. d. ego.
7. Adler, a neo-Freudian personality theorist,
a. proposed that personality is the set of behaviors an individual employs in pursuit of superiority and perfection.
b. suggested that personality develops as individuals attempt to deal with anxiety. c. asserted that humans feel lonely and isolated because they have become separated
from nature and other people. d. suggested that humans continually attempt to establish rewarding
interpersonal relationships.
8. A trait that measures the degree to which an individual is likely to tolerate risk is known as
a. dogmatism. c. category width. b. compulsiveness. d. variety seeking.
9. Maria is a successful, sophisticated, take-charge individual who welcomes change and displays high self-esteem, abundant resources, and a taste for upscale products. In terms of the eight VALS segments, Maria is a(n)
a. experiencer. c. innovator. b. thinker. d. achiever.
10. Joanne believes that people see her as a hardworking young woman who enjoys outdoor sports. This view that she thinks people have of her is her
a. real-self. c. extended-self. b. reference-group self. d. ideal-self.
Check your answers with those on page 141.
Lesson 2 79
ASSIGNMENT 8 Read this introduction. Then read Chapter 8, “Consumer Decision Making” pages 255–283, in your textbook, Consumer Behavior.
The Decision Process
Chapter 8 focuses on the processes consumers use to make their buying decisions. As your textbook notes, a decision is an act that can occur only when a consumer is faced with two or more alternative courses of action. The process involves considering, evaluating, and choosing between alternatives. Some decisions, such as choosing whether or not to buy a new product, appear simple, while others involve more com- plicated sets of choices. For example, if a person decides to buy a new car, he or she has to decide on the type of car, the make, the model, the color, and optional components. In either case, several objective and subjective factors come into play.
Are Consumers Rational?
Classical economic theory depicted consumers as logical, information-gathering, problem-solving agents. As you’ve seen, however, a number of psychological, emotional, and social factors contribute to purchasing and consumption behavior. Additionally, studies have shown that consumers take a number of shortcuts when making purchasing decisions and employ what social scientists refer to as constructive processing to determine the cognitive effort required to meet a given task.
Consumer Behavior80
Effort Variations in Consumer Decision Making
The amount of effort a consumer exerts in making a decision varies according to the degree of involvement, or personal relevance, that a purchase holds for him or her. As you saw in Chapter 1, low-involvement purchases are those that a consumer views as relatively unimportant in terms of the outcome or effect they’ll have. High-involvement purchases, by contrast, represent decisions that consumers feel will have significant financial, social, or psychological consequences.
Nonprogrammed Decisions
Nonprogrammed decisions are purchase decisions with which the consumer has little or no prior experience or familiarity. In such cases, a range of decision process possibilities arises. A high-involvement purchase, such as buying a house, will usually entail extended problem solving, a high level of effort expended toward gathering information and evaluating alternatives.
When consumers have some experience with a purchasing situation or the consequences involve little risk—for instance, replacing a lamp or purchasing a new landline phone—they’ll typically adopt a limited problem-solving approach. In such cases, they’ve already evaluated certain criteria, such as the brand, price, and product options.
Impulse purchases, meanwhile, are spontaneous and unplanned. Very little cognitive effort is exerted, and the decision is often influenced by environmental cues, such as price deals, special offers, point-of-purchase displays, or salesperson suggestions. Mood and emotions also play a significant role.
Programmed Decisions
Purchases habitually made as part of a person’s daily or weekly routine and requiring little or no cognitive effort are commonly referred to as programmed decisions. Purchases based on brand loyalty represent special cases of programmed decisions, as prior satisfaction with the brand minimizes effort, speeds shopping, and reduces the risk of purchasing an unsatisfactory product.
Lesson 2 81
The Nature of the Consumer Decision Process
The consumer decision process is regarded as a form of prob- lem solving, which can be broken down into a sequence of five stages, which are illustrated in Exhibit 8.1 on page 262. These stages are described as follows:
1. Problem recognition. In this stage, a person becomes aware of a goal but is uncertain as to the best solution to attain it. In other words, an individual realizes that a difference exists between the desired state and the actual state of affairs. Problems can include
■ assortment depletion (running low or out of goods)
■ changes in life circumstances
■ product acquisition (the purchase of supplies or accessories)
■ expanded or contracted means
■ expanded awareness (learning about new or improved products or services)
2. Search activity. During the second stage, consumers may conduct searches to identify and become familiar with courses of action that may be taken to solve the problem. Searches may be internal, involving the retrieval of infor- mation already stored in long-term memory. Because of the complex structure of memory, information about products is often simplified to make it easier to access. Two common simplification strategies are sharpening— which involves focusing on specific details, such as the brand—and leveling, which involves generalizing, or omitting details about a product.
Consumers may also conduct external searches, seeking information from various sources such as advertising and promotional materials, Internet search engines, and commerce sites. They may also solicit information from interpersonal sources, including friends, family members, social media groups, and salespeople.
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3. Identifying and evaluating alternatives. Once a consumer is aware of a problem and has gathered the necessary information, he or she can evaluate the alternatives to resolve it. The consumer must first identify the criteria to use in this evaluation, which often consists of a sub- set known as the brand set, a few brands that come to mind when thinking of a product category.
Certain product characteristics serve as evaluation crite- ria. These may include salient attributes, or important aspects, of a product and determinative attributes, the features that distinguish one product from another, similar one.
Three additional factors influence the evaluation process. The first is the positive or negative perception of the value of the alternatives. Prospect theory is one attempt to map how value is determined. Exhibit 8.2 on page 270 illus- trates the hypothetical value function derived from prospect theory. The second factor is how the decision is framed, or viewed from the perspective of loss or gain. The third factor involves evaluating a decision against memories of the outcomes of similar problems.
4. Purchase or commitment. At the purchase or commitment stage, the consumer often invokes various decision rules to process information and make a choice. These rules are detailed in Exhibits 8.3 and 8.4 on pages 272 and 273–274. They may be broadly categorized as compensatory—in which a high evaluation of one product attribute out- weighs the shortcomings of others—or noncompensatory, in which a high evaluation of one attribute doesn’t offset the low evaluation of others.
5. Postpurchase considerations. In today’s market, the pur- chase decision is the beginning of a process of building a relationship between firms and consumers. As a means of enhancing a firm’s relationship with its customers, building brand loyalty, and expanding market share, many firms have begun to adopt the Customer Touchpoint Management (CTM) system, a framework in which every interaction between a firm’s representative and the customer is referred to as a touchpoint.
Lesson 2 83
Customer satisfaction, the attitude formed toward a purchase, is a significant factor for the firms involved and for the consumer. In general, the satisfaction with a product or service depends on how it performs. Some studies have identified two facets of performance: instru- mental performance, the product or service’s functional characteristics, and expressive performance, the social or psychological satisfaction that the consumer derives from the product.
Literature Review of Customer Satisfaction
A wide range of research indicates that the level of customer satisfaction is positively related to the amount of effort expended during the process of obtaining a product. In addition, satis- faction may be evaluated based on the expectations the consumer has rather than the actual product itself.
Consumer Complaint Intentions and Behavior
Customer dissatisfaction can be a source of major loss to a firm, given the extraordinary reach of social media sites, including popular sites like Facebook and Twitter, and dedicated com- plaint sites such as Gripevine.com and wacktrap.com. Aware of the fact that many firms are proactively monitoring social media sites for customer complaints, consumers are turning out in greater numbers, in the expectation that they’ll receive attention from company directors and some resolution to their grievances. In turn, many of today’s firms view complaints as an opportunity not only to learn more about consumers’ expectations, wants, and needs, but also to establish them- selves as leaders in customer service.
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Measurement Standards for Customer Satisfaction
A variety of methods for measuring customer satisfaction have been developed in an attempt to capture consumers’ attitudes about a product’s or a firm’s performance. These include
■ The American Customer Satisfaction Index (ASCI)
■ The Kano Model
■ SERVQAUL or RATTER
■ J.D. Power and Associates ratings and rankings
■ A.T. Kearney’s Customer Satisfaction Audit
To Whom Do Consumers Complain?
Consumers direct their complaints to a variety of places, including social media sites and popular forums monitored by businesses. Other options include creating and spreading petitions through organizations like Change.org. Customers can also submit complaints directly to a firm’s customer service department, state and federal agencies, mass-media outlets, credit card companies, and the Better Business Bureau.
What Can Be Done?
The chapter concludes with a brief discussion of the various ways firms manage customer disputes and complaints. These include setting up web-enabled customer contact centers, toll-free customer hotlines, and dedicated consumer affairs offices. Some firms proactively address the issue of customer dissatisfaction through establishing consumer education pro- grams, under the assumption that knowledge plays a vital role in managing expectations.
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Key Terms
Term Page
constructive processing 259
involvement 259
low involvement 259
high involvement 259
nonprogrammed decision 260
extended problem solving 260
limited problem solving 260
impulse purchases 260
programmed decisions 261
brand loyalty 261
internal search 264
sharpening 264
leveling 264
external search 264
evoked set 267
heuristics 268
evaluative criteria 268
salient attributes 269
determinant attributes 269
prospect theory 269
framing 270
decision rules 272
compensatory decision rule 272
noncompensatory decision rule 272
instrumental performance 274
expressive performance 274
consumer satisfaction 275
Consumer Behavior86
Review any material you found difficult. Then complete Self- Check 8 and Chapter 8 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
You’ve also completed your second lesson. After you complete Self-Check 8 and Chapter 8 Homework, review any material from Assignments 3 through 8 that you found difficult. When you’re sure you understand the information covered in Lesson 2, take the examination. When you complete the examination, you’ll be ready to begin Lesson 3.
Lesson 2 87
Self-Check 8
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Lacking experience and knowledge about buying her very first car, Letitia faces an
extended problem-solving decision.
______ 2. The concept of leveling indicates that as consumers become familiar with a product
category, they tend to evaluate the alternatives in it by brand rather than by product
attributes.
______ 3. The four factors that are significant in determining the amount of external search
undertaken by consumers are price, brand, image, and risk.
______ 4. According to prospect theory, when decision makers evaluate the positivity or negativ-
ity of various alternatives, consumers’ psychological valuations of the options coincide
with these options’ actual or objective value.
______ 5. Consumer satisfaction is influenced both by the level of effort expended by consumers
and by their level of expectations.
(Continued)
Consumer Behavior88
Self-Check 8
Questions 6–10: Select the one best answer to each question.
6. An out-of-town electronics dealer sells the laptop computer that Jason wanted for $20 less than local dealers. After Jason considered the effort required to travel to the distant dealer, he decided to purchase it locally. In his decision to shop locally, Jason engaged in
a. constructive processing. b. nonprogrammed decision making. c. programmed decision making. d. leveling.
7. Marian considers the purchase of food for her German Shepherd an unimportant task and regards the outcome of the decision as inconsequential. Marian’s purchasing of dog food is a(n) _______ decision.
a. programmed c. associative b. low-involvement d. high-involvement
8. Those few brands that are serious alternatives a consumer actually contemplates when buying a product constitute
a. the inert set. c. the consideration set. b. the evoked set. d. determinant attributes.
9. When facing a decision about which product to buy, Ricky generally selects the store brand. This inclination is a result of Ricky’s tendency to use
a. heuristics. c. sharpening. b. fewer resources. d. leveling.
10. The _______ decision rule appears to be the most common decision strategy that consumers use to arrive at product choices.
a. simple-additive c. affect-referral b. weighted-additive d. lexicographic
Check your answers with those on page 141.
Social and Cultural Influences on Behavior
ASSIGNMENT 9 Read this introduction. Then read Chapter 9, “Diffusion of Innovation” pages 289–318, in your textbook, Consumer Behavior.
Where Did It All Begin?
How does a new product like the iPad enter the marketplace, and what forces govern its success or failure? Chapter 9 focuses on two related processes: diffusion and adoption. Diffusion is the spread of a new product or idea in the marketplace. Adoption refers to the decision process that consumers go through before accepting a new product or service.
The Diffusion Process
Your textbook describes diffusion as the process through which innovation extends through the marketplace by means of communication over a period of time. It further outlines four basic elements of this process:
■ The innovation
■ Channel of communication
■ The social system
■ Time
The Innovation
Innovation refers to the development of a new product or service. Sometimes, an innovation represents an implementation of genuinely new products that come to market as a result of advances in technology and manufacturing. More frequently, innovations consist of modifications to existing products, such as adding new features or ingredients.
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Innovations fall into three general categories:
■ Discontinuous innovations, which are unique, groundbreaking products that radically alter existing consumption habits
■ Dynamically continuous innovations, new products that require some new learning for consumers, but don’t significantly impact existing usage patterns
■ Continuous innovations, which consist of extensions or modifications of existing products that require little or no adjustment by consumers
Some researchers extend these categories with a fourth type, symbolic innovations, which describe products like designer mineral water that convey new social or psychological meanings.
While FTC rules limit usage of the word new in advertising materials to a period of six months from the time products that enter the marketplace, consumers’ perception of newness is highly subjective. Also, many firms adopt a multifaceted approach to innovation. In addition to introducing genuinely new products, they may also introduce line extensions, add features, improve quality, or promote new uses for existing products.
Factors That Influence Consumer Adoption of New Products
Five product characteristics govern consumer acceptance of new products and practices:
■ Relative advantage—a perceived value or benefit compared to existing alternatives
■ Compatibility—a perceived consistency with consumers’ beliefs, values, experiences, and habits
■ Simplicity-complexity—the relative ease of understanding and using the product
■ Observability—the degree to which a new product is visible and information is available
■ Trialability and divisibility—the opportunity to try a new product and/or to sample it in small amounts
Lesson 3 91
The Channel of Communication
For consumers to be aware of a new product, information about its availability and features must be communicated to potential adopters. The two major avenues of communication are mass communication, which disseminates information through mass media channels such as websites, television, newspapers, magazines, and radio; and personal communication, which is direct communication through individual interactions or group presentations.
The Social System
The values, traditions, customs, and norms of a social system exert a tremendous impact on the adoption of new products. Three social factors are considered especially significant:
■ Compatibility with the values shared by members of a social system
■ Homogeneity of the social system
■ Geographical proximity and cultural similarity
Time
Two variables influence the development and introduction of new products: the rate of adoption, the length of time con- sumers accept and adopt an innovation, and the frequency of purchase (sometimes referred to as the repurchase rate), the length of time between a consumer’s initial purchase and subsequent purchases of the product.
As illustrated in Exhibit 9.1 on page 307, adopters of new products may be divided into five categories, depending on the amount of time that passes between the introduction of the product and purchase of the product:
■ Innovators, the first 2.5 percent of the market to adopt a new product
■ Early adopters, the next 13.5 percent, who adopt an innovation early in its life cycle
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■ The early majority, the next 34 percent who adopt a product in its early stages after more deliberation
■ The late majority, the next 34 percent of adopters, who may lack the resources to purchase a new product and/or may be culturally or socially less inclined to accept innovation
■ Laggards, the remaining 16 percent, which typically comprises people with limited resources who are averse to change or resistant to social pressure
Research indicates a relatively reliable model of diffusion over time. Known as the S-shaped diffusion curve, the model holds that acceptance begins slowly, then speeds up rapidly, and finally tapers off to a slower pace. Exhibit 9.2 on page 311 offers an illustration of a modified S-shaped diffusion curve.
Stages of the Adoption Process
Your textbook describes five stages, or successive judgments, through which consumers often—but not always—pass in the process of adopting a new product.
■ Knowledge, or being made aware of the new product
■ Persuasion, or formulating a favorable or unfavorable attitude toward the product
■ Decision, or choosing or declining to adopt the innovation
■ Implementation, or acting on the decision to adopt
■ Confirmation, or assessing satisfaction with the purchase and determining whether or not to continue purchasing it
Note that part of the confirmation stage may involve discontinuance, or reversing a purchase decision. This can occur if a consumer is dissatisfied with his or her purchase.
Lesson 3 93
Resistance to Adoption
Sometimes new products or services fail to catch on or catch on less widely than a firm anticipates. The potential obstacles, or barriers, may be classified in terms of functional barriers and psychological ones. These include
■ Value barriers, which arise when the performance of the product relative to its price doesn’t meet expectations
■ Usage barriers, which arise when a product is not relevant to a consumer’s regular routine
■ Risk barriers, which arise when there’s uncertainty about adopting a new product
■ Tradition barriers, which arise when cultural norms or values inhibit adoption
■ Image barriers, which arise when a product or brand isn’t widely known or is perceived unfavorably
Key Terms
Term Page
diffusion 291
adoption 291
discontinuous innovations 294
dynamically continuous innovations 295
continuous innovations 295
symbolic innovations 295
relative advantage 298
compatibility 299
simplicity 299
observability 300
trialability 301
divisibility 301
rate of adoption 306
(Continued)
Consumer Behavior94
Review any material you found difficult. Then complete Self- Check 9 and Chapter 9 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
frequency of purchase 306
innovators 307
early adopters 308
early majority 308
late majority 308
laggards 309
S-shaped diffusion curve 309
knowledge 311
persuasion 311
decision 313
implementation 313
confirmation 313
discontinuance 313
value barrier 314
usage barrier 315
risk barrier 316
tradition barrier 316
image barrier 316
Self-Check 9
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Discontinuous innovations entail major technical advances on the part of their creators
and require consumers to learn new consumption patterns.
______ 2. The introduction of the smartphone is an example of a dynamically
continuous innovation.
______ 3. Newness in a product emerges from high technological breakthroughs, not from mere
changes in a firm’s marketing strategy.
______ 4. Today, some innovations have become so technologically complex that consumers shy
away from them. Based on Rogers’s product-adoption characteristics, this tendency is
due to the absence of the factor known as relative advantage.
______ 5. The more homogeneous the social system, the quicker the diffusion process.
(Continued)
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Self-Check 9
Questions 6–10: Select the one best answer to each question.
6. One example of a _______ innovation was witnessed when Kellogg’s came out with a Smart Start antioxidant breakfast cereal.
a. continuous c. discontinuous b. dynamically continuous d. symbolic
7. Ken is young, venturesome, well-educated, self-confident, and enjoys a high income. Based on these characteristics, Ken would most likely fit into the _______ adopter category.
a. laggard b. late majority b. early majority d. innovator
8. The S-shaped diffusion curve concept holds that
a. the probability of purchase of an innovation at any point in time is related to the number of previous buyers of that innovation.
b. initially, market acceptance of an innovation is rapid. c. acceleration of adoption during the growth stage depends on the price level of
the innovation. d. it’s impossible for marketers to delay the start of the decline stage for a product.
9. General Motors and Ford woo car rental companies to get them to carry their recent models so that when drivers try a new car model, they become impressed with its performance and frequently become potential buyers. According to the text, the strategies employed by GM and Ford build on the _______ factor that enhances consumers’ acceptance of new products.
a. simplicity/complexity c. trialability b. compatibility d. observability
10. Mark is hesitant to purchase a Timex Ironman wristwatch due to its hefty price compared to another watch. In this case, Mark is said to be facing a _______ barrier.
a. risk c. usage b. value d. image
Check your answers with those on page 142.
Lesson 3 97
ASSIGNMENT 10 Read this introduction. Then read Chapter 10, “Group Influence” pages 321–346, in your textbook, Consumer Behavior.
The Meaning and Importance of Groups
Because groups exert a powerful influence on consumer behavior, the development of effective marketing strategies requires an understanding of the dynamics underlying group behavior. For the purposes of this discussion, your textbook defines the term group as two or more individuals who hold a common set of values, beliefs, and guidelines of acceptable behavior, or norms.
Selected Types of Groups
Your textbook classifies groups into three categories, defined by intimacy, formality, and purpose. From the standpoint of intimacy, groups may be defined as primary or secondary. Primary groups are usually small, and members meet or communicate regularly. Secondary groups are usually larger, and members don’t communicate or meet face-to-face as often.
Formal groups are highly organized, defined by explicit goals, rules, and procedures, as well as by a clear, usually hierarchical, structure. Informal groups usually develop within a formal structure, as members socialize and exchange view- points and ideas that aren’t necessarily related to the defined goals of the larger, formal group.
Planned groups, such as book clubs, church groups, and civic organization, are specifically formed to fulfill a purpose. Emergent groups, by contrast, occur more spontaneously, through meeting in the same actual or virtual space. They may emerge as smaller subsets of planned groups.
Consumer Behavior98
Other Communities, Subcultures, and Groups
In addition to these categories, your textbook explores different types of group structures notable for their influence on consumer behavior.
■ Social networks and online communities are groups that share common interests or affiliations across a variety of political, economic, and geographical boundaries.
■ Consumption subgroups consist of people that self-select according to their attachment or attraction to a particular product class, brand, or activity.
■ Brand communities are a specialized group of people committed to a particular firm or its products.
■ Brand tribes likewise share a commitment to a brand, but tribe members are strongly vested in each other.
Roles and Status
Members of a group typically fulfill roles, which may be understood as patterns of behavior that are expected or that develop within a particular social context. Some roles require the use of a set of products—imagine a sales rep with a cell phone, tablet, and computer. These products, which assist the individual in fulfilling his or her role, are referred to as role-related product clusters.
Related to roles is the concept of status, which your textbook defines as the rank within a group’s power or prestige hierarchy. Status may be achieved, based on an individual’s accom- plishments or contributions, or ascribed, based on factors such as social class, age, wealth, or ethnicity. In general, the higher an individual’s status within a group, the more influence he or she has on it.
Lesson 3 99
Social Power
Your textbook identifies five types of power that groups can exert over members in ways that influence behavior, beliefs, and attitudes.
■ Reward power, the ability to reward members who conform to certain expectations
■ Coercive power, the capacity to punish members who don’t conform to norms or expectations
■ Legitimate power, a sense of obligation to conform to the norms, beliefs, structure, and/or principles of the group
■ Referent power, which derives from an individual’s desire to identify with a group
■ Expert power, the influence derived from possessing certain skills or knowledge
Reference Groups
Reference groups—sets of people who offer a point of view or standard for evaluating and patterning behavior, attitudes, or beliefs—exert enormous influence over consumer deci- sions. They may do so by overtly or obliquely pressuring people to conform to a certain set of ideas or norms, by pro- viding credible information, or by offering a set of values or guidelines of behavior that serve as a model. Broadly speak- ing, reference groups can be divided into three categories:
■ Membership groups, to which a person belongs by virtue of birth or enrollment
■ Aspirational reference groups, to which an individual hopes and may even expect to belong at some point in the future
■ Dissociative groups, which may be understood as groups to which a person doesn’t wish to belong (referred to as negative reference groups) or to which one previously belonged and later rejected (known as disclaimant reference groups)
Consumer Behavior100
Degrees of Reference Group Influence
The power of reference groups to influence behavior, attitudes, and beliefs depends on members’ willingness to conform to the group’s norms and accept them as their own. Three general levels of conformance have been identified:
■ Compliance, the weakest level, refers to accepting the group’s mandates merely to seek approval or avoid disapproval.
■ Identification, through which a member privately and publically accepts the group’s influence to validate his or her own identity and sense of belonging to the group
■ Internalization, which occurs when the norms of the group are inherently consistent with one’s own values and beliefs
Reference Group Influence on Consumer Behavior and Marketing Strategy
The primary influence of reference groups on consumer behavior appears to lie in the domain of the social value of a purchase. However, because people typically belong to many groups, marketers intending to use reference group influence as part of a marketing strategy first need to identify the group or groups most relevant to a given purchasing situation. Only then can they design a message tailored to reflect the interests, attitudes, values, and beliefs of the relevant group or groups.
Lesson 3 101
Key Terms
Term Page
group 323
norms 323
primary groups 324
secondary groups 324
formal groups 324
informal groups 325
planned groups 325
emergent groups 325
social networks 326
consumption subcultures 326
brand communities 327
brand tribes 328
roles 328
role-related product cluster 329
status 329
conspicuous consumption 330
reward power 331
coercive power 331
legitimate power 333
referent power 333
expert power 334
reference groups 335
membership reference groups 336
anticipatory aspirational reference groups 337
aspirational reference groups 337
symbolic aspirational reference groups 337
(Continued)
Consumer Behavior102
Review any material you found difficult. Then complete Self- Check 10 and Chapter 10 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
negative reference groups 337
disclaimant reference groups 337
compliance 339
reactance 341
classical identification 341
reciprocal identification 341
internalization 342
Lesson 3 103
Self-Check 10
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Norms specify proper and improper actions under particular circumstances and serve as
standards against which members evaluate the appropriateness of their own behavior.
______ 2. A group of five friends who went to the same high school and continue to meet on
weekends qualifies as a primary group.
______ 3. Achieved status within a group can be a result of factors such as social class, wealth,
age, gender, and ethnicity.
______ 4. Reward power involves the power of a group to punish its members to obtain
compliance to norms and expectations.
______ 5. Anticipatory reference groups are those with which an individual has at least some
direct contact and somewhat reasonable expectations of joining at a future date.
(Continued)
Consumer Behavior104
Self-Check 10
Questions 6–10: Select the one best answer to each question.
6. Virtual communities qualify as which type of group?
a. Primary c. Formal b. Secondary d. Planned
7. A(n) _______ is defined as a specialized, non-geographically bound community that’s based on a structured set of social relationships among admirers of a brand.
a. brand community c. consumption subculture b. brand tribe d. online community
8. Sales reps for a firm that sells home security systems tell prospects about the dire consequences faced by the victims of home intruders. Fear appeals like this one employ which type of social power?
a. Reward power c. Coercive power b. Referent power d. Legitimate power
9. _______ reference groups are those in which an individual’s chances of achieving membership are remote at best, regardless of his/her sincere desire to join.
a. Anticipatory aspirational c. Negative b. Symbolic aspirational d. Disclaimant
10. When a person goes along with a group to obtain approval or avoid punishment from its members, _______ has occurred.
a. internalization c. socialization b. identification d. compliance
Check your answers with those on page 142.
Lesson 3 105
ASSIGNMENT 11 Read this introduction. Then read Chapter 11, “The Family and Generational Cohorts” pages 351–380, in your textbook, Consumer Behavior.
The Family
Families play a significant role in the process of socialization, shaping beliefs, attitudes, values, identity, and self-concept— which, as you’ve seen, are all factors that influence consumer behavior. Chapter 11 examines the additional factors of fam- ily consumption roles, the family life cycle, and household trends as they relate to purchasing behavior, as well as the marketing implications of segmentation by life experience.
Family Consumption Roles
Research has identified eight distinctive, often overlapping roles played by family members, each of which contributes to decision making and purchasing. These roles are listed in Exhibit 11.1 on page 357.
In addition, each role within the family structure can be understood in three different ways. The enacted role is reflected in the actual behavior enacted by a family member in specific situations. The perceived role represents the way in which a family member understands his or her role. The prescribed role consists of the set of expectations held by others in regard to the types of behavior that should or should not be displayed by someone in a given situation.
The Family Decision Process
The influence of family members on the decision process has been the matter of some debate, particularly in terms of the types of decisions made by spouses. Recent studies have ten- tatively identified four categories of spousal decision patterns:
■ Autonomic, in which each spouse makes about half of the decisions independently of the other
■ Husband dominant
Consumer Behavior106
■ Wife dominant
■ Syncretic, in which decisions are jointly made by both spouses
These patterns can shift depending on the stage of the decision process—for example, the search stage and the purchase- commitment stage—as well as the type of decision (for exam- ple, high-involvement versus low-involvement). Several other factors influence the decision patterns, including
■ Egalitarianism—a value system that emphasizes equality in spousal relationships
■ Involvement—the relevance of the object of the decision
■ Empathy—the degree to which a one spouse recognizes and identifies with the feelings of the other
■ Recognized authority—the mutually determined or cul- turally imposed right to make certain decisions
Children’s Influence on Family Decision Making
Children can spend their own money, earned through allowances or outside jobs like babysitting. Recent studies have shown that the three categories most impacted by children’s purchasing behavior are the food and beverage category, electronic items (which include downloaded music and movies as well as physical products), and clothing and related apparel. A fourth category of children’s items, which may be purchased by parental figures or by children themselves, are children-specific personal care products.
Within the family structure, children often play the role of influencers. Their role may be direct, as in situations where they make explicit requests or offer hints about their preferences, or indirect, in which case parents already know the brands and other product attributes their children prefer and purchase them as a matter of course.
Lesson 3 107
Advertising to Children
Because of their roles as influencers, children have been the target of many advertising campaigns. For many years, televi- sion was the primary vehicle for messaging tailored toward children. That trend has changed dramatically in recent years as children have become more tech-savvy and spend more time using electronic devices like smartphones and tablets.
Over the past two decades, ethical concern has led to the enactment of a number of U.S. government regulations to protect children from abusive or excessive advertising practices. These are summarized in Exhibit 11.2 on page 365. Additional guidelines have been established for the advertising of food and beverages directed at children.
The Family Life Cycle
The family life cycle (FLC)—the series of stages through which families typically progress—is also a key determinant in understanding and marketing to families as they undergo changes in needs, resources, and spending habits. The FLC model is determined by four primary characteristics: age, marital status, employment status of the head of household, and the absence or presence of children and the ages of the children.
The traditional FLC model can be broken down into five broad stages:
■ Bachelorhood, the stage prior to forming a family unit
■ Honeymooner, the relationship phase preceding the birth of the first child
■ Parenthood, which continues as long as any child resides in the family home
■ Post-parenthood, which commences once the last child has left the family home
■ Dissolution, which occurs when one of the spouses or relationship partners dies
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Modernized and Nontraditional Patterns
Recent shifts in cultural, social, demographic, and lifestyle trends have forced a reassessment of the traditional FLC model. Consequently, consumer behavior researchers are expanding their definitions to include nontraditional family households—which include childless couples, same-sex couples, single-parent families, extended families, and nonfamily households, which include singles, unmarried couples, divorced persons without children, and widows or widowers.
Certain nontraditional living arrangement patterns are of particular importance to marketers and consumer behavior researchers. These include phenomena such as
■ Latchkey kids, children who regularly return from school to an empty home
■ Boomerang children, who return to the family home after college or who remain in the home into adulthood
■ The sandwich generation, which comprises families sup- porting both children and their own aging parents
■ Single parents
■ Live alones, or adult singles
Generational Marketing
In addition to segmentation by more established factors, such as geography, income, education, and gender, marketers have recognized the importance of marketing to groups of people who shared similar, significant life experiences—such as cul- tural milestones and shifts—during their formative years. The members of these groups are referred to as cohorts.
While there’s some disagreement and overlap, these cohorts are broadly divided into five distinct categories:
■ Boomers I, people born between 1946 and 1954
■ Boomers II, people born between 1955 and 1965
■ Generation X, people born between 1965 and 1977
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■ Generation Y (also known as Millennials), people born between 1978 and 1994
■ Generation Z, people born after 1995
Marketing Applications of Generational Cohorts
The potential of generational marketing resides in the ability to tap into the values, beliefs, attitudes, and behaviors shared by a fairly homogenous group of individuals. The implicit psychological consistency within each generational cohort allows marketers to tailor messages and introduce products and services that are meaningful in a different way than traditional segmentation approaches.
Key Terms
Term Page
family 353
enacted role 355
perceived role 356
prescribed role 356
family life cycle 367
latchkey kids 370
boomerang children 370
sandwich generation 371
generational marketing 374
cohort 374
Boomers I cohort 375
Boomers II cohort 375
Generation X cohort 375
Generation Y cohort (Millennials) 376
Generation Z cohort 376
Consumer Behavior110
Review any material you found difficult. Then complete Self- Check 11 and Chapter 11 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Lesson 3 111
Self-Check 11
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. A person’s prescribed role is the set of expectations held by others concerning the
modes of behavior that he or she should display in a specific situation.
______ 2. Regarding family consumption roles, influencers are members of the family who
oversee and regulate the flow of information into the household.
______ 3. Within the realm of the family decision process, syncretic decision making describes
cases where each spouse independently makes half of the decisions.
______ 4. In reference to advertising directed to children, because interactive media incorporate
and build children’s actions, they’re considered to be more influential than traditional
media types, such as television.
______ 5. Monitoring the size of each of the FLC groups that constitute the total market for a
firm’s product or service helps marketers forecast future demand for their products.
(Continued)
Consumer Behavior112
Self-Check 11
Questions 6–10: Select the one best answer to each question.
6. Betty performs the _______ role when she forbids her children from watching certain television programs.
a. decider c. influencer b. maintainer d. gatekeeper
7. Sam agreed with his wife that she would accept responsibility for shopping with the children for clothing, while he would attend to the mechanical aspects of maintaining the family’s auto- mobiles. In terms of the family’s decision pattern, this role assignment reflects a(n) _______ tendency.
a. egalitarian c. empathy b. recognized authority d. involvement
8. The term age compression refers to
a. pushing adult products and attitudes on young children. b. using adult ad themes to address children. c. using children as participants in adult focus group interviews. d. treating kids between the ages of 6 and 17 as a single market segment.
9. The term sandwich generation refers to
a. families whose income recently dropped, affecting the types of food consumed. b. people who always eat on the run. c. persons who simultaneously support their boomerang children as well as their
elderly parents. d. a group about which health care professionals are deeply concerned.
10. Joann, who is a member of the Woodstock Generation, and who was brought up with the experience of the Vietnam War, lives beyond her a means and owns a variety of conspicuous products. Joann fits the profile of the _______ cohort.
a. Boomers I c. Generation X b. Boomers II d. Generation Y
Check your answers with those on page 143.
Lesson 3 113
ASSIGNMENT 12 Read this introduction. Then read Chapter 12, “Personal Influence and Word of Mouth,” pages 383–414, in your text- book, Consumer Behavior.
Personal Influence
The previous two assignments have focused on group influences on consumer behavior. Chapter 12 examines how interpersonal communication can effect changes in an individual’s beliefs, attitudes, and behavior, an element of human behavior referred to as personal influence.
Personal Influence
One of the most common types of personal influence is word of mouth (WOM) communication, which involves the sharing of an opinion about a product, service, or firm between a source regarded as independent by the individual who receives the opinion. WOM frequently occurs spontaneously and directly, although recommendations and other sorts of opinions can also be transmitted via social networks, blogs, and other online vehicles, as well as through email, by phone, or other traditional forms of interpersonal communication.
Who Are the Opinion Leaders?
Individuals who are regarded as knowledgeable and influential in shaping public opinion are referred to as opinion leaders. They may be specialists in a certain area, such as sports or computer technology, or well-known figures within a global, national, or local context. Some firms have adopted a strategy of delegating brand advocates, consumers who speak on behalf of the firm but aren’t officially employed or financially com- pensated by the firm.
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According to social scientists, opinion leadership is regarded as the ability to informally influence beliefs, attitudes, and behaviors. By contrast, those who more actively seek to affect opinion and influence behavior are referred to as agents of change.
Unleashing the Power of Personal Influence and Word of Mouth
In addition to using brand advocates, firms can adopt a vari- ety of other means of using personal influence and/or word of mouth to shape public opinion, including
■ Engaging celebrities or other well-known figures as spokespersons or soliciting television talk show hosts or members of the press to review and talk about products
■ Product placement in television shows and movies
■ Creating buzz in the social arena through events, services, and apps
■ Product personalization opportunities
■ Creating social network pages or feeds
■ Broadcasting memorable advertisements that create buzz
■ Using search engine optimization (SEO) methods
The Occurrence of Personal Influence
The significance of personal influence as a contributing factor to purchasing decisions varies according the purchasing situ- ation and the product under consideration. It’s likely to be an important factor in high-involvement decisions, for example, or in situations when the prospective consumer lacks infor- mation about a product, or when the product is new. Exhibit 12.1 on page 393 offers a list of factors that increase the like- lihood that personal influence will occur.
Lesson 3 115
Models of the Influence Process
Pages 393–399 examine some of the more common models of the personal influence process that have been identified in recent years. These include the
■ Hypodermic needle model, which holds that the media exerts an immediate and direct impact on a mass audience
■ Trickle–down model (illustrated in Exhibit 12.2 on page 394), which holds that influence spreads downward from elite individuals, including celebrities, athletes, and public figures, to the general public—referred to as emulating recipients
■ Trickle-up model, which represents a special case when typical emulators adopt a style or usage that flows upward to celebrities and elite influencers
■ Trickle-across model (Exhibit 12.4 on page 396), which holds that influence travels horizontally among peers
■ Two-step model (Exhibit 12.5 on page 397), which suggests that opinion leaders first receive messages from mass media outlets and then pass them on to others
■ Multistep model (Exhibit 12.6 on page 398), which holds that mass-media messages reach opinion leaders and followers, who then share that information with others, either through source-initiated situations (conversations that trigger advice giving) or through recipient-initiated situations (conversations in which advice is requested)
Influencer Identification
Many firms target influencers—people with above-average WOM reach or impact—as a means of capitalizing on the power of personal influence. Influencers are first identified through vari- ous tools, such as Google BlogSearch, BlogPulse, TouchGraph Google Browser, and Facebook Search. Then they’re ranked according to variables such as market reach, frequency of impact, expertize, and persuasiveness.
Consumer Behavior116
Next, firms design and implement programs to engage the influencers, initiating relationships with them through invita- tions to special events, providing them with relevant content and rewards, and soliciting feedback. Finally, firms can utilize various tools available through social media platforms, or design their own metrics for measuring the effectiveness and reach of the influencers they’ve targeted.
Other Sources of Personal Influence
In addition to the influencers already discussed, your textbook identifies three other types of influencers. These include shopping pals—other people who accompany con- sumers on shopping trips; market mavens—friends, neighbors, or colleagues who actively talk about products, stores, services, and other marketplace information; and surrogate consumers— usually paid professionals engaged to gather information, narrow down purchase options, and/or direct actual purchases.
What Forces Motivate Influencers to Give Advice?
The range of factors that inspire influencers to share their opinions generally fall into four general categories.
■ Product involvement—personal interest in the product or service
■ Self-involvement—the satisfaction and status derived from gaining attention and demonstrating expertise
■ Other-involvement—the desire to share their experience with people they know and care for
■ Message involvement—sharing a fascination with a promotional message
Lesson 3 117
Strategic Applications of Personal Influence and Word of Mouth
When incorporating personal influence and word of mouth into an overall promotional strategy, firms typically apply one or more of three approaches. The first involves creating opinion leaders, using various methods such as creating events that foster WOM, reaching out to community experts, implementing affiliation or rewards programs, or targeting local organizations or associations. The second approach seeks to stimulate con- sumers to talk about a product, often using teaser campaigns to drop hints about a coming product or service or product placement to favorably showcase products. The third approach is to simulate opinion leadership through slice-of-life commer- cials that depict someone helping another consumer find a solution to a problem, and testimonials.
Combatting Negative Word of Mouth
Because WOM exerts tremendous influence on consumer behavior, firms must proactively deploy strategies to combat negative opinion. In many cases, negative WOM results from customer dissatisfaction, so it’s vital for firms to respond quickly to any complaints. Nowadays many firms are taking a more proactive approach through soliciting postpurchase feedback, monitoring what’s being said online, building relationships within the WOM community they serve, and truthfully dis- closing information ahead of any negative public reaction.
Consumer Behavior118
Review any material you found difficult. Then complete Self- Check 12 and Chapter 12 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
personal influence 385
word of mouth (WOM) 385
opinion leaders 387
brand advocates 388
opinion leadership 388
agents of change 388
availability-valence hypothesis 392
hypodermic needle model 393
trickle-down model 394
trickle-up model 395
trickle-across model 396
two-step model 396
multistep model 397
influencer 399
shopping pals 404
market maven 404
surrogate consumer 406
teaser campaigns 409
product placement 410
testimonials 411
Lesson 3 119
Self-Check 12
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. Word of mouth refers to any change, whether deliberate or inadvertent, in an
individual’s beliefs, attitudes, or behavior that occurs as the consequence of
interpersonal communication.
______ 2. Best Buy’s Fan Page allows consumers to shop and read reviews from other customers
about products right on Facebook. This service from Best Buy reaps the power of
personal influence.
______ 3. Word of mouth is limitless in the sense that it would take only a few influencers to
ignite a chain reaction of WOM.
______ 4. A main presumption behind the hypodermic needle model is the need for a large pro-
motional budget to reach a mass audience through ads and commercials placed in the
traditional mass media.
______ 5. Using seeding agencies to help plant viral WOM is one approach in the sphere of
simulating opinion leadership.
(Continued)
Consumer Behavior120
Self-Check 12
Questions 6–10: Select the one best answer to each question.
6. Parties—whether political, religious, or commercial—whose individual or collective agendas entail personal or online attempts to modify other people’s beliefs, attitudes, and behavior are termed
a. opinion leaders. c. advocators. b. innovators. d. agents of change.
7. The success of advice sites, such as Craigslist and Angie’s List, is an example of which of the following models of the personal influence process?
a. Hypodermic needle model c. Trickle-across model b. Trickle-down model d. The two-step model
8. According to the multistep model of the influence process,
a. consumers do not rely on ads run in the mass media. b. information transmitted through the mass and electronic media reaches opinion
leaders/influencers as well as opinion followers. c. information flows one way from the elite and celebrities to emulating recipients. d. products that originate in the lower socioeconomic strata eventually gain acceptance
among the elite.
9. Some companies allow influencers private access to company facilities, executives, and important people in the organization. This is a form of _______ them.
a. engaging c. identifying b. ranking d. advocating
10. Product-related conversations among consumers triggered by ad campaigns such as AFLAC’s talking duck and Geico Insurance Company’s gecko lizard were likely initiated as a result of consumers’
a. product involvement. c. other-involvement. b. self-involvement. d. message-involvement.
Check your answers with those on page 143.
Lesson 3 121
ASSIGNMENT 13 Read this introduction. Then read Chapter 13, “Social Class,” pages 417–442, in your textbook, Consumer Behavior.
Introduction to Social Class
Income level is related to social class, but the two aren’t identical. Broadly speaking, the term social class refers to the overall ranking of large groups of people within a given society, depending on the values emphasized by that society. While the availability of economic resources definitely influ- ences purchasing behavior, social class is more accurately reflected in the choices consumers of a particular class make in spending their income. These choices, in turn, reflect the values and behaviors of the class in which they’re socialized.
As your textbook notes, almost all societies have developed some system of stratification, organizing their members into social classes based on economic and social characteristics. According to many social scientists, social class determines the opportunities available to members of each class.
Unites States Consumer View of Social Class
The class system in the United States is a more nuanced proposition than is seen in other countries and cultures. However, distinctions can be observed in a variety of busi- ness and product development models—for example, airlines’ three-tiered classification of travelers and manufacturers’ gradations of good, better, and best products.
Your textbook examines several factors that make class distinctions in the United States more difficult to recognize. The first is the basic premise of egalitarianism upon which the United States was founded. Also, the relatively large size of the middle class tends to obscure the extreme ends of stratification, as does social mobility—the opportunity to move between classes as a result of personal achievement.
Consumer Behavior122
Nevertheless, awareness of social class distinctions in the United States can serve marketers in terms of precisely tar- geting consumers, especially in developing and implementing direct marketing strategies. Identifying the niches within the social class structure can help to minimize nonproductive reach—the effort expended in connecting with consumers who are unlikely prospects.
Class Structure in the United States
Social scientists have identified four tiers of social class in the United States:
1. The upper class, which includes the now famous 1 percent of top earners and heirs to family fortunes
2. The middle class, which is further divided into upper middle class—typically highly educated, salaried profes- sionals—and the lower middle class, which is made up of semi-professionals and craftspeople who enjoy some degree of occupational independence
3. The working class, which is also divided into two categories: the working class—understood to include blue- and pink- collar workers and people in higher end clerical jobs—and the working poor, which comprises people in low-end clerical, retail, and service jobs
4. The underclass, about 15 percent of the population who hold very poorly paid jobs, work infrequently, or rely on some form of government or charitable support
Marketing Implications of Evolving Social Trends
The evolution of social networks has had a huge impact on consumer behavior. It’s estimated that some 71 percent of people who earn less than $30,000 a year are active partici- pants on social media sites, and a large percentage of Hispanics use social media as a communication tool.
Meanwhile, the recent financial downturn has affected the purchasing power of all but the most affluent of U.S. citizens. Beneficiaries of this trend have been dollar stores and
Lesson 3 123
midlevel retail establishments. Additionally, some firms are adopting a two-tier strategy, producing products and services that appeal to people on the lower end of the social scale and products and services targeted to those on the higher end.
Measuring Social Class
Social scientists use three approaches to better understand the perception of social class. Subjective measures include techniques by which subjects self-identify their social class standing, which is often a reflection of self-concept. Reputational measures ask subjects to rank the social class of other people with whom they’re familiar. Objective measures, meanwhile, use pertinent demographic and socioeconomic data to identify social class membership.
Among these measures are single-variable indexes that focus on a single socioeconomic factor, typically occupation. Composite-variable indexes create a weighted, multi-point scale that considers a wider range of factors, including income source, occupational status, level of education, and residence. A sample of such a scale is illustrated in Exhibit 14.1 on page 432.
Relevant Issues
Pages 434–439 examine several issues that influence the structure and perception of social class in the United States. These include
■ The changing class stature of women
■ The confusion surrounding the identification of wealth with social class
■ Status crystallization, the convergence of different indi- cators such as income, occupation, education, residence, and ethnicity as determinants of class
■ The distinction between overprivileged and underprivileged individuals and families
■ Social mobility
Consumer Behavior124
The Impact of Social Class on Consumer Behavior
Certain class generalizations can be assumed in designing successful targeting strategies. Most obviously, perhaps, is the influence of disposable income on consumption behavior, which determines the type and quality of products and serv- ices people of a particular class can afford. Education level and occupation also play a role in evaluating and purchasing products within a category. Social class also influences con- sumer choices in terms of retail store choices, credit card usage, recreational activities, and media habits.
Review any material you found difficult. Then complete Self- Check 13 and Chapter 13 Homework. Check your answers with those provided. Review the material for any of the questions you missed.
Key Terms
Term Page
social class 419
stratification 420
egalitarianism 421
social mobility 421
nonproductive reach 422
subjective measures 430
reputational measures 430
objective measures 431
single-variable indexes 431
composite-variable indexes 431
status crystallization 436
overprivileged 437
underprivileged 438
Lesson 3 125
Self-Check 13
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. The term social stratification reflects a formal system of classifying the members of a
population based on economic and social inequalities within that society.
______ 2. The practice of determining the social class structure of a nation’s economy can help
marketers reduce the phenomenon of nonproductive reach.
______ 3. The term working poor is a division of the under-class category of the U.S.
social class structure.
______ 4. Research has revealed that Whites are at the top of the social media use groups,
compared with Hispanics and Blacks.
______ 5. To deal with present economic conditions, some of the biggest marketers have adopted
a two-tier strategy by tailoring their products and pitches to distinct market segments:
the rich and the poor.
(Continued)
Consumer Behavior126
Self-Check 13
Questions 6–10: Select the one best answer to each question.
6. Gordon is a highly educated and salaried professional, with an above-average income in the six-figure range. According to this profile, Gordon is likely a member of the _______ social class.
a. lower-upper c. upper-middle b. lower-middle d. working
7. In recent years, the percentage of households that visited and purchased products from dollar stores, discount supercenters, warehouse stores, and thrift shops has
a. markedly and consistently declined. b. remained about the same as in the not-so-distant past. c. exhibited a slight increase. d. risen significantly.
8. The _______ approach of measuring social class requires that individuals rate their own social standing.
a. subjective c. objective b. reputational d. sociometric
9. Purchasing Power Parity analysis
a. identifies credit card usage patterns for different social classes. b. is based on the cost of a standard market basket of products bought in each country
expressed in U.S. dollars. c. is an objective approach for measuring social class. d. is a reputational approach for measuring social class.
10. Research indicates that among the factors that tend to influence the purchasing patterns of individuals and households, which of the following variables generally appears to have the least effect on consumers’ buying decisions?
a. Social class c. Income b. Reference groups d. Cultural influences
Check your answers with those on page 144.
Lesson 3 127
ASSIGNMENT 14 Read this introduction. Then read Chapter 14, “Culture and Subculture,” pages 445–472, in your textbook, Consumer Behavior.
The Meaning of Culture
The term culture has been variously defined by researchers in different areas of social science. For marketers, however, it’s more useful to understand culture in terms of those elements that affect the consumer decision process and purchasing behavior. Broadly speaking, then, culture can be understood as a distinctive and learned manner of living with and interacting with environmental stimuli that are shared and transmitted by participating members.
How Is Culture Learned?
It’s important to understand that culture is a learned experi- ence, which typically involves the transmission of norms and values through the process of socialization. This indoctrination usually begins in early childhood through a process referred to as enculturation. By contrast, people who move to a differ- ent country or otherwise depart from their own society and enter another must go through a process of acculturation, learning the norms, values, and behaviors of the new culture.
Note that culture embraces both abstract elements—such norms, values, traditions, ideals, and language—as well as material ones, such as currency, architectural styles, furnishings, tools, and technologies. Firms and marketers need to be aware that the material capacities within a given culture don’t always keep pace with the tools and technological advances made available, resulting in what’s known as a cultural lag in adoption of new products and services.
Another area of consideration for marketers is the tendency to make judgments and assumptions about a different culture based on the norms of one’s own. Known as ethnocentrism, this tendency can lead to misunderstandings of what is (or isn’t) appropriate in certain cultures.
Consumer Behavior128
Assessing Culture
To better understand the elements of different cultures, researchers use a number of different tools. Ethnography, for example, involves simply and discreetly observing behavior patterns. Direct questioning, as the name implies, involves using questionnaires to determine the potential for product purchase and usage. Marketers may also come to an under- standing of cultural norms and values through reviewing a society’s media and literature, a process known as content analysis. Finally, they may solicit the expertise of people known as key informants, who have lived in other cultures for extended periods.
Additionally, they may want to study the work of social scientists. Your textbook examines the insights of the Dutch researcher, Geert Hofstede, who identified five dimensions through which culture may be understood:
■ Power distance—the extent to which members of a society accept unequal distribution of authority
■ Uncertainty avoidance—the degree to which cultures feel threatened by ambiguity and, uncertainty
■ Individualism
■ Masculinity
■ Term orientation—the degree to which cultures value patience, perseverance, respect for elder generations, and duty toward the larger society as a whole
Consumer Behavior in a Cultural Setting
Other researchers have identified 10 categories that are con- sidered relevant to introducing and marketing products and services in different cultures. Summarized in Exhibit 14.1 on page 457, these categories are examined in detail in pages 456–462. They include
■ Communication and language
■ Beliefs and attitudes
■ Values and norms
Lesson 3 129
■ Sense of self
■ Relationships
■ Time consciousness
■ Mental processes and learning
■ Rewards and recognition
■ Dress and appearance
■ Food and eating habits
Subcultures
Cultures aren’t monolithic, homogenous entities, but are often subdivided into smaller groups, known as subcultures, who share values, beliefs, and behavior patterns that are unique and distinctive, setting them apart somewhat from the larger culture. The influence of subcultures is especially prominent in large, pluralistic countries like the United States and Canada.
Chapter 10 looked at some subcultures that can be identified by consumption behavior, such as consumption subcultures, brand communities, and brand tribes. Pages 463–470 exam- ine three prominent ethnic subcultures of U.S. consumers.
■ Blacks (African-Americans) constitute approximately 13.6 percent of the American population according to the latest U.S. Census Bureau report, with projections indicat- ing that this percentage will reach 15 percent by 2050. Meanwhile, in 2012 the percentage of African-American households earning over $75,000 a year increased by 36.9 percent and those earning over $100,000 a year has increased by 88.7 percent. Consequently, African- Americans represent a significant amount of financial power, and many firms are seeking new ways to appeal to this subculture. However, there’s substantial diversity within this group, and products and services need to be positioned accordingly.
Consumer Behavior130
■ Hispanic-Americans comprise approximately 16.3 per- cent of the population, according to a 2012 study, and the population is expected to increase to over 30 percent by 2050. There’s substantial diversity within this subcul- ture, however, in terms of age and income, and country of origin/affiliation. Additionally, marketers need to take into consideration the degree of acculturation when seg- menting the Hispanic-American population. Broadly, three different segments can be currently identified: the unaccultured segment, which currently accounts for about 40 percent of the market; the bicultural segment, which accounts for approximately 32 percent; and the accultured segment, which accounts for about 28 percent.
■ Asian-Americans, according to the 2010 Census Bureau report, constitute about 5.6 percent of the population, yet represent the fastest-growing ethnic group in the country—growing more than 40 percent over the last decade. There’s substantial diversity within this group, however, reflecting the fact that the Census Bureau cate- gory of “Asian and Pacific Islander” encompasses more than 17 countries. Nevertheless, some generalities can be observed in relation to lifestyle and consumption pat- terns. For example, as a subculture, Asian-Americans appear to put a high value on education and achievement, contributing to a higher median income than other ethnic groups and a stronger attraction to premium brands. There’s also a very high degree of computer literacy and Internet usage, making this group especially responsive to social media marketing.
Lesson 3 131
Review any material you found difficult. Then complete Self- Check 14 and Chapter 14 Homework. Check your answers with those provided. Review the material for any of the ques- tions you missed.
You’ve also completed your third lesson. After you complete Self-Check 14 and Chapter 14 Homework, review any material from Assignments 9 through 14 that you found difficult. When you’re sure you understand the information covered in Lesson 3, take the examination.
When you complete the examination, you’ll be ready to begin your Research Assignment.
Key Terms
Term Page
culture 447
socialization 448
enculturation 448
acculturation 449
cultural lag 449
ethnocentrism 449
ethnography 450
direct questioning 450
content analysis 450
key informants 450
power distance 451
uncertainty avoidance 451
individualism 452
masculinity 455
values 457
means-end chains 458
norms 459
subcultures 462
rituals 471
Consumer Behavior132
Self-Check 14
Questions 1–5: Indicate whether each of the following statements is True or False.
______ 1. The process of indoctrinating youth with the norms and values of a society is often
referred to as enculturation.
______ 2. Cultural lag refers to the delay between the time that technological innovations are
made available and the time the public accepts and makes use of them, or rejects
them and limits their use.
______ 3. Ethnography is the attempt to assess cultural practices and values by reviewing the
media and/or literature coming out of a society and searching for recurrent themes.
______ 4. Values are a society’s shared guidelines to accepted and expected behavior; they pro-
vide standards against which people evaluate the appropriateness of their behavior.
______ 5. Researchers’ criteria for identifying subcultures in a society include ethnicity, as well as
observed consumption choices of products and services among specific groups.
(Continued)
Lesson 3 133
Self-Check 14
Questions 6–10: Select the one best answer to each question.
6. When Jane relocated from the United States to the southern part of Africa, she had to learn the norms, values, and customs of the Zulu culture. The learning process Jane went through is known as
a. role ambiguity. c. enculturation. b. role playing. d. acculturation.
7. According to Hofstede, societies where people obey authority without question are labeled _______ cultures.
a. high power distance c. low power distance b. authoritarian d. underdeveloped
8. According to the text, long-term orientation is a cultural characteristic of
a. Asian cultures. c. North American countries. b. European cultures. d. South American counties.
9. A means-end chain is an analytical technique that depicts linkages between
a. product value and product price. b. product attributes, consequences, and cultural values. c. product attributes, benefits, and limitations. d. consumer beliefs, attitudes, and behavior.
10. The Hispanic population
a. still lags behind African Americans as the largest U.S. ethnic minority. b. is older than the general population. c. is growing at a pace faster than the African American, Asian, and white populations. d. tends to spend less than White households on groceries and children’s clothing.
Check your answers with those on page 144.
Consumer Behavior134
NOTES
BACKGROUND
Understanding the influence of culture on the consumer decision process is an important part of a marketer’s job. Cultural norms and values, along with consumer perceptions, family, and group influences, are all factors that can significantly impact the diffusion of new products or services. Many firms realize that they must adapt existing product or service models when introducing them into a foreign market
Procedure
Read the Global Opportunity box on page 276 of the text- book. Your assignment is to examine the two different strategic approaches adopted by the fast-food chains KFC and McDonald’s when they expanded into China. Which, in your opinion, would be the more effective strategy for expanding into India, and why? Your report should include evidence (such as Indian demographic statistics, comparison with similar brand/product expansions into India, ethnographic studies, the results of direct questioning and content analysis, and so on) to support why the strategy you selected has the best chance of success.
Goal
Your goal for this assignment is to apply what you’ve learned about consumer behavior in this course. Use this research assignment to practice identifying and evaluating marketing concept strategies commonly found in today’s marketplace.
To accomplish the requirements for this assignment, you’ll need to submit at least three pages of typed material.
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Writing Guidelines
1. Type your submission, double-spaced, in a standard print font, size 12. Use a standard document format with 1-inch margins. (Do not use any fancy or cursive fonts.)
2. Include the following information at the top of your paper:
a. Name and address
b. Student number
c. Course title and number (Consumer Behavior: MKT 320)
d. Research project number (08063200)
3. Read the assignment carefully and address the issue suggested.
4. Be specific. Limit your submission to the topic or issues mentioned.
5. Include a reference page that lists websites, journals, and any other references used in preparing the submission.
6. Proofread your work carefully. Check for correct spelling, grammar, punctuation, and capitalization.
Grading Criteria
Your project will be based on the following criteria:
■ Content 80%
■ Written communication 15%
■ Format 5%
Here’s a brief explanation of each of these points.
Research Assignment 137
Content (80%)
■ The paper provides a clear discussion of the assigned topic or issue. (16 points)
■ The paper addresses the subject in complete sentences. (16 points)
■ The paper supports an opinion by citing specific information from references. (16 points)
■ The paper stays focused on the assigned issues. (16 points)
■ The paper is written in the student's own words, and it uses quotation marks to indicate direct quotations. (16 points)
Written Communication (15%)
■ The paper includes an introduction, a body, and a concluding paragraph. (4 points)
■ The paper uses correct grammar, spelling, punctuation, and sentence structure. (4 points)
■ The paper provides clear organization by using words like first, however, on the other hand, and so on, consequently, since, next, and when. (4 points)
■ The paper contains no typographical errors. (3 points)
Format (5%)
■ The paper is double-spaced and typed in font size 12. (1 point)
■ The paper includes the student’s name and address. (1 point)
■ The paper includes the student number. (1 point)
■ The paper includes the course title and number (Consumer Behavior: MKT 320). (1 point)
■ The paper includes the student’s research assignment number (08063200). (1 point)
Research Assignment138
Submitting Your Work
Follow this procedure to submit your assignment online:
1. On your computer, save a revised and corrected version of your project.
2. Go to http://www.pennfoster.edu and log in.
3. Go to My Courses.
4. Click on Take Exam next to the lesson you’re working on.
5. Enter your email address in the box provided. (This information is required for online submission.)
6. Attach your file as follows:
a. Click on the Browse box.
b. Locate the file you wish to attach.
c. Double-click on the file.
d. Click on Upload File.
7. Click on Submit Files.
Self-Check 1 1. True
2. False
3. False
4. True
5. False
6. b
7. a
8. d
9. c
10. d
Self-Check 2 1. False
2. True
3. False
4. True
5. False
6. b
7. d
8. a
9. d
10. a
Self-Check 3 1. False
2. True
3. True
4. False
139
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s w
e r
s A
n s
w e
r s
Self-Check Answers140
5. True
6. d
7. d
8. a
9. c
10. a
Self-Check 4 1. True
2. False
3. True
4. True
5. False
6. a
7. d
8. d
9. c
10. b
Self-Check 5 1. True
2. False
3. False
4. True
5. True
6. d
7. a
8. b
9. a
10. c
Self-Check 6 1. False
2. True
3. False
4. False
5. True
6. b
7. d
8. a
9. a
10. b
Self-Check 7 1. False
2. False
3. True
4. True
5. False
6. d
7. a
8. c
9. c
10. b
Self-Check 8 1. True
2. False
3. False
4. False
Self-Check Answers 141
Self-Check Answers142
5. True
6. a
7. b
8. c
9. a
10. d
Self-Check 9 1. True
2. True
3. False
4. False
5. True
6. a
7. d
8. a
9. c
10. b
Self-Check 10 1. True
2. True
3. False
4. False
5. True
6. b
7. a
8. c
9. b
10. d
Self-Check Answers 143
Self-Check 11 1. True
2. False
3. False
4. True
5. True
6. d
7. b
8. a
9. c
10. a
Self-Check 12 1. False
2. True
3. True
4. True
5. False
6. d
7. c
8. b
9. a
10. d
Self-Check 13 1. True
2. True
3. False
4. False
5. True
6. c
7. d
8. a
9. b
10. c
Self-Check 14 1. True
2. True
3. False
4. False
5. True
6. d
7. a
8. a
9. b
10. c
Self-Check Answers144