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Consumer Behavior

7th Edition

Wayne D. Hoyer University of Texas, Austin

Deborah J. MacInnis University of Southern California

Rik Pieters Tilburg University

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ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Sec- tion 107 or 108 of the 1976 United States Copyright Act, without the prior writ- ten permission of the publisher.

To my wonderful family, Shirley, David, Stephanie, and Lindsey and to my parents Louis and Doris for their tremendous support

and love. To all of you, I dedicate this book.

Wayne D. Hoyer Austin, Texas

September 2016

To my loving husband, my beautiful children, and my devoted family. You are my life-spring of energy and my center of gravity.

Deborah J. MacInnis Los Angeles, California

September 2016

To Trees who loves me and �omas who knew everything.

Rik Pieters Tilburg

September 2016

About the Authors

Wayne D. Hoyer Wayne D. Hoyer is the James L. Bayless/William S. Farish Fund Chair for Free Enterprise in the McCombs School of Business at the University of Texas at Austin. He received his Ph.D. in Consumer Psychology from Purdue University in 1980. He also holds an honorary doctorate from the University of Bern in Switzerland and was recently given a Humboldt Research Award in Germany. His major area of study is Consumer Psychology and his research interests include consumer information processing and decision-making, customer relationship management, consumer brand sabotage, and advertising information processing (including miscomprehension, humor, and brand personality). Wayne has published over 100 articles in various publications including the Journal of Consumer Research, Journal of Marketing, Journal of Marketing Research, Journal of Advertising Research, and Journal of Retailing. A 1998 article in the Journal of Marketing Research (with Susan Broniarczyk and Leigh McAlister) won the O’Dell Award in 2003 for having the most impact in the marketing field over that five-year period. In addition to Consumer Behavior, he has co-authored two books on the topic of advertising miscomprehension. He is a current area editor for the Journal of Marketing, a Marketing, a Marketing Senior Editor for the International Journal of Research in Marketing, a former associate editor for the Journal of Consumer Research and serves on eight editorial review boards including the Journal of Marketing Research, Journal of Consumer Research, and Journal of Consumer Psychology. His major areas of teaching include consumer behavior, customer strategy, and marketing communications. He has also taught internationally at the University of Mannheim, the University of Muenster, and the Otto Beisheim School of Management (all in Germany), the University of Bern in Switzerland, the University of Cambridge (UK), and Thammasat University in Thailand. He has also been the Montezemolo Visiting Research Fellow in the Judge School of Business and is a Visiting Fellow of Sidney Sussex College at the University of Cambridge (UK).

Deborah J. MacInnis Debbie MacInnis (Ph.D., University of Pittsburgh 1986) is the Charles L. and Ramona I. Hilliard Professor of Business Administration and Professor of Marketing at the University of Southern California in Los Angeles, CA. She has previously held positions as Chairperson of the Marketing Department, Vice Dean for Research and Strategy and Dean of the Undergraduate Programs at Marshall. Debbie has published papers in the Journal of Consumer Research, Journal of Marketing Research, Journal of Marketing, Journal of Personality and Social Psychology, Psychology and Marketing, and others in the areas of Personality and Social Psychology, Psychology and Marketing, and others in the areas of Personality and Social Psychology, Psychology and Marketing marketing communications, information processing, imagery, emotions, and branding. She has also published two co-edited volumes and a book on branding and consumer-brand relationships. She is former co-editor of the Journal of Consumer Research, and served as an Associate Editor for the Journal of Consumer Research, the Journal of Consumer Psychology, and the Journal of Marketing and has won outstanding reviewer awards from the Journal of Marketing and has won outstanding reviewer awards from the Journal of Marketing these journals. Debbie has served as Conference Co-Chair, Treasurer, and President of the Association for Consumer Research. She has also served as Vice President of Conferences and Research for the Academic Council of the American Marketing Association. She has received major awards for her research, including the Alpha Kappa Psi and Maynard awards, given to the best practice- and theory-based articles, respectively, published in the Journal of Marketing. Debbie’s research has also been named as a finalist for the Practice Prize Competition for contributions to marketing, and the Converse Award for significant

long-term contributions to marketing. She has been named recipient of the Marshall Teaching Innovation Award, the Dean’s Award for Community, and the Dean’s Award for Research from the Marshall School of Business. She has also received the USC mentoring work for her mentoring of faculty. Her classes have won national awards through the SAA National Advertising Competition. Debbie enjoys travel, reading, and being in nature.

Rik Pieters Rik Pieters is Professor of Marketing at the Tilburg School of Economics and Management (TISEM) of Tilburg University, the Netherlands. He received his Ph.D. in Social Psychology from the University of Leiden in 1989. Rik believes in interdisciplinary work, and that imagination, persistence, and openness to surprise are a person’s biggest assets. He has published over 100 articles in marketing, psychology, economics, and statistics. His work has appeared in Journal of Consumer Psychology, Journal of Consumer Research, Journal of Marketing, Journal of Marketing Research, Marketing Science, Management Science, and International Journal of Research in Marketing. He has published in the Journal of Personality and Social Psychology, Organizational Behavior and Human Decision Processes, European Journal of Social Psychology, Emotion, Psychological Science, and Journal of Economic Literature. Currently, Rik is an Associate Editor of the Journal of Marketing Research. His research concerns attention and memory processes in marketing communication, and the role of emotions in consumer decision-making. He has served as Co-Chair of the Association for Consumer Research annual conference, and has co-organized special conferences on visual marketing, social communication, and service marketing and management. He has taught internationally at Pennsylvania State University; University of Innsbruck, Austria; Koc University, Turkey; and the University of Auckland, New Zealand. He has won best teaching awards at the school and university levels. He has been Strategy Director for National and International clients at the Publicis/FCB advertising agency, Amsterdam office. He bakes bread, rides bikes, plays the bass, and drinks hoppy, fermented barley beverages, all except the first in moderation. In his spare time, he works.

ABOUT THE AUTHORS v

Part 1 An Introduction to Consumer Behavior 3 1 Understanding Consumer Behavior 4

Appendix Developing Information About Consumer Behavior 28

Part 2 �e Psychological Core 43 2 Motivation, Ability, and Opportunity 44

3 From Exposure to Comprehension 72

4 Memory and Knowledge 100

5 Attitudes Based on High Effort 127

6 Attitudes Based on Low Effort 154

Part 3 �e Process of Making Decisions 179 7 Problem Recognition and Information Search 180

8 Judgment and Decision-Making Based on High Effort 206

9 Judgment and Decision-Making Based on Low Effort 234

10 Post-Decision Processes 258

Part 4 �e Consumer’s Culture 291 11 Social In�uences on Consumer Behavior 292

12 Consumer Diversity 321

13 Household and Social Class In�uences 346

14 Psychographics: Values, Personality, and Lifestyles 373

Part 5 Consumer Behavior Outcomes and Issues 403

15 Innovations: Adoption, Resistance, and Diffusion 404

16 Symbolic Consumer Behavior 429

17 Marketing, Ethics, and Social Responsibility in Today’s Consumer Society 457

Brief Contents

vii

1-1 Defining Consumer Behavior 5 1-1a Consumer Behavior Involves Goods, Services,

Activities, Experiences, People, and Ideas 5 1-1b Consumer Behavior Involves More than Buying 5 1-1c Consumer Behavior Is a Dynamic Process 7 1-1d Consumer Behavior Can Involve Many People 7 1-1e Consumer Behavior Involves Many Decisions 7 1-1f Consumer Behavior Involves Emotions and Coping 11

1-2 What Affects Consumer Behavior? 11 1-2a The Psychological Core: Internal Consumer Processes 11 1-2b The Process of Making Decisions 12 1-2c The Consumer’s Culture: External Processes 13 1-2d Consumer Behavior Outcomes and Issues 14

1-3 Who Benefits from the Study of Consumer Behavior? 15 1-3a Marketing Managers 15 1-3b Ethicists and Advocacy Groups 15 1-3c Public Policy Makers and Regulators 16

1-3d Academics 16 1-3e Consumers and Society 16

1-4 Making Business Decisions Based on the Marketing Implications of Consumer Behavior 16

1-4a Developing and Implementing Customer-Oriented Strategy 16

1-4b Selecting the Target Market 17 1-4c Developing Products 17 1-4d Positioning 18 1-4e Making Promotion and Marketing Communications

Decisions 18 1-4f Making Pricing Decisions 19 1-4g Making Distribution Decisions 20

Summary 22

Endnotes 22

Consumer Behavior Research Methods 28 Surveys 28 Focus Groups 29 Interviews 30 Storytelling 30 Photography and Pictures 31 Diaries 31 Experiments 31 Field Experiments 32 Conjoint Analysis 32 Observations and Ethnographic Research 32 Purchase Panels 33 Database Marketing and Big Data 33 Netnography 33 Psychophysiological Reactions and Neuroscience 34

Types of Consumer Researchers 34 In-House Marketing Research Departments 34

External Marketing Research Firms 35 Advertising Agencies and Media Planning Firms 36 Syndicated Data Services 36 Retailers 36 Research Foundations and Trade Groups 37 Government 37 Consumer Organizations 37 Academics and Academic Research Centers 37

Ethical Issues in Consumer Research 38 The Positive Aspects of Consumer Research 38 The Negative Aspects of Consumer Research 38

Summary 39

Endnotes 39

Part 1 An Introduction to Consumer BehaviorPart 1 An Introduction to Consumer Behavior 3

Chapter 1 Understanding Consumer Behavior 4

Appendix Developing Information About Consumer Behavior 28

Contents About the Authors iv

Preface xiv

CONTENTSviii

2-1 Consumer Motivation and Its Effects 45 2-1a High-Effort Behavior 45 2-1b High-Effort Information Processing and

Decision-Making 45 2-1c Felt Involvement 45

2-2 What Determines Motivation? 47 2-2a Personal Relevance 48 2-2b Consistency with Self-Concept 48 2-2c Values 48 2-2d Needs 48 2-2e Goals 52 2-2f Goals and Emotions 55 2-2g Self-Control and Goal Conflict 55 2-2h Perceived Risk 58 2-2i Inconsistency with Attitudes 60

2-3 Consumer Ability: Resources to Act 60 2-3a Financial Resources 61 2-3b Cognitive Resources 61 2-3c Emotional Resources 61 2-3d Physical Resources 61 2-3e Social and Cultural Resources 62 2-3f Education and Age 62

2-4 Consumer Opportunity 63 2-4a Time 63 2-4b Distraction 63 2-4c Complexity, Amount, Repetition, and Control

of Information 63

Summary 65

Endnotes 65

Part 2 �e Psychological CorePart 2 �e Psychological Core 43

Chapter 2 Motivation, Ability, and Opportunity 44

3-1 Exposure and Consumer Behavior 73 3-1a Factors Influencing Exposure 73 3-1b Selective Exposure 73

3-2 Attention and Consumer Behavior 76 3-2a Characteristics of Attention 76 3-2b Focal and Nonfocal Attention 76 3-2c Customer Segments Defined by Attention 80 3-2d Habituation 80

3-3 Perception and Consumer Behavior 80 3-3a Perceiving Through Vision 80 3-3b Perceiving Through Hearing 81

3-3c Perceiving Through Taste 81 3-3d Perceiving Through Smell 81 3-3e Perceiving Through Touch 82 3-3f When Do We Perceive Stimuli? 84 3-3g How Do Consumers Perceive a Stimulus? 86

3-4 Comprehension and Consumer Behavior 87 3-4a Source Identification 87 3-4b Message Comprehension 87 3-4c Consumer Inferences 89

Summary 92

Endnotes 92

Chapter 3 From Exposure to Comprehension 72

4-1 What Is Memory? 102 4-1a Sensory Memory 102 4-1b Working Memory 102 4-1c Long-Term Memory 103 4-1d Explicit Memory, Implicit Memory, and Processing

Fluency 104 4-1e How Memory Is Enhanced 104

4-2 Knowledge Content, Structure, and Flexibility 105

4-2a Knowledge Content: Schemas and Scripts 105 4-2b Knowledge Structure: Categories 111

4-2c Knowledge Flexibility 114 4-2d Why Consumers Differ in Knowledge Content and

Structure 115

4-3 Memory and Retrieval 116 4-3a Retrieval Failures 116 4-3b Retrieval Errors 117 4-3c Enhancing Retrieval 118 4-3d Characteristics of the Stimulus 118

Summary 120

Endnotes 120

Chapter 4 Memory and Knowledge 100

CONTENTS ix

5-1 What Are Attitudes? 128 5-1a The Importance of Attitudes 128 5-1b The Characteristics of Attitudes 128 5-1c Forming and Changing Attitudes 128

5-2 The Cognitive Foundations of Attitudes 129

5-2a Direct or Imagined Experience 131 5-2b Reasoning by Analogy or Category 131 5-2c Values-Driven Attitudes 131 5-2d Social Identity-Based Attitude

Generation 131 5-2e Analytical Processes of Attitude

Formation 131

5-3 How Cognitively Based Attitudes are Influenced 135 5-3a Communication Source 135 5-3b The Message 137

5-4 The Affective (Emotional) Foundations of Attitudes 139

5-5 How Affectively Based Attitudes Are Influenced 141 5-5a The Source 141 5-5b The Message 142

5-6 Attitude Toward the AD 144

5-7 When Do Attitudes Predict Behavior? 144

Summary 147

Endnotes 147

Chapter 5 Attitudes Based on High Effort 127

6-1 High-Effort Versus Low-Effort Routes to Persuasion 155

6-2 Unconscious Influences on Attitudes When Consumer Effort Is Low 155

6-2a Thin-Slice Judgments 155 6-2b Body Feedback 155

6-3 Cognitive Bases of Attitudes When Consumer Effort Is Low 157

6-4 How Cognitive Attitudes Are Influenced 158 6-4a Communication Source 158 6-4b The Message 158 6-4c Message Context and Repetition 160

6-5 Affective Bases of Attitudes When Consumer Effort Is Low 160

6-5a The Mere Exposure Effect 160 6-5b Classical and Evaluative Conditioning 161 6-5c Attitude Toward the Ad 163 6-5d Mood 164

6-6 How Affective Attitudes Are Influenced 165 6-6a Communication Source 165 6-6b The Message 166

Summary 171

Endnotes 171

Chapter 6 Attitudes Based on Low Effort 154

7-1 Problem Recognition 182 7-1a The Ideal State: Where We Want to Be 182 7-1b The Actual State: Where We Are Now 182

7-2 Internal Search: Searching for Information from Memory 183

7-2a How Much Do We Engage in Internal Search? 183 7-2b What Kind of Information Is Retrieved from Internal

Search? 184 7-2c Is Internal Search Always Accurate? 188

7-3 External Search: Searching for Information from the Environment 189

7-3a Where Can We Search for Information? 189

7-3b How Much Do We Engage in External Search? 192 7-3c What Kind of Information Is Acquired in External

Search? 197 7-3d Is External Search Always Accurate? 198 7-3e How Do We Engage in External Search? 198

Summary 200

Endnotes 200

Part 3 �e Process of Making DecisionsPart 3 �e Process of Making Decisions 179

Chapter 7 Problem Recognition and Information Search 180

CONTENTSx

8-1 High-Effort Judgment Processes 208 8-1a Judgments of Likelihood and Goodness/

Badness 208 8-1b Mental and Emotional Accounting 209 8-1c Biases in Judgment Processes 209

8-2 High-Effort Decisions and High-Effort Decision-Making Processes 210

8-2a Deciding Which Brands to Consider 211 8-2b Deciding Which Criteria Are Important to the

Choice 212

8-3 Deciding What Brand to Choose: Thought-Based Decisions 214

8-3a Decisions Based on Brands 216 8-3b Decisions Based on Product Attributes 217 8-3c Decisions Based on Gains and

Losses 218

8-4 Deciding What Brand to Choose: High-Effort Feeling-Based Decisions 219

8-4a Appraisals and Feelings 220 8-4b Affective Forecasts and Choices 220 8-4c Imagery 221

8-5 Additional High-Effort Decisions 222 8-5a Decision Delay 222 8-5b Decision-Making When Alternatives Cannot

Be Compared 222

8-6 What Affects High-Effort Decisions? 223 8-6a Consumer Characteristics 223 8-6b Characteristics of the Decision 224 8-6c Group Context 225

Summary 227

Endnotes 228

Chapter 8 Judgment and Decision-Making Based on High Effort 206

9-1 Low-Effort Judgment Processes 236 9-1a The Representativeness Heuristic 236 9-1b The Availability Heuristic 236

9-2 Low-Effort Decision-Making Processes 237 9-2a Unconscious Low-Effort Decision-Making 237 9-2b Conscious Low-Effort Decision-Making 238 9-2c Using Simplifying Strategies When Consumer

Effort Is Low 238

9-3 Learning Choice Tactics 239 9-3a Reinforcement 239 9-3b Punishment 239 9-3c Repeat Purchase 240 9-3d Choice Tactics Depend on the Product 240

9-4 Low-Effort Thought-Based Decision-Making 240 9-4a Performance as a Simplifying Strategy 241

9-4b Habit as a Simplifying Strategy 241 9-4c Brand Loyalty as a Simplifying Strategy 243 9-4d Price as a Simplifying Strategy 245 9-4e Normative Influences as a Simplifying Strategy 247

9-5 Low-Effort Feeling-Based Decision-Making 247 9-5a Feelings as a Simplifying Strategy 247 9-5b Brand Familiarity 248 9-5c Decision-Making Based on Variety-Seeking Needs 249 9-5d Buying on Impulse 250

Summary 252

Endnotes 252

Chapter 9 Judgment and Decision-Making Based on Low Effort 234

10-1 Post-Decision Dissonance and Regret 260 10-1a Dissonance 260 10-1b Regret 260

10-2 Learning from Consumer Experience* 261 10-2a A Model of Learning from Consumer Experience 261 10-2b What Affects Learning? 262

10-3 How Do Consumers Make Satisfaction or Dissatisfaction Judgments? 264

10-3a Satisfaction/Dissatisfaction Based on Thoughts 266 10-3b Satisfaction/Dissatisfaction Based on Feelings 270

10-4 Responses to Dissatisfaction 272 10-4a Complaints 272

10-4b Responding to Service Recovery 274 10-4c Responding by Negative Word of Mouth 274

10-5 Is Customer Satisfaction Enough? 275 10-5a Customer Retention 275 10-5b Product-Harm Crises 275

10-6 Disposition 276 10-6a Disposing of Meaningful Objects 278 10-6b Recycling 279

Summary 282

Endnotes 282

Chapter 10 Post-Decision Processes 258

CONTENTS xi

11-1 Sources of Influence 294 11-1a Marketing and Nonmarketing Sources 294 11-1b How Do These General Sources Differ? 295 11-1c Opinion Leaders 297

11-2 Reference Groups as Sources of Influence 298 11-2a Types of Reference Groups 298 11-2b Characteristics of Reference Groups 300 11-2c Reference Groups Affect Consumer Socialization 303

11-3 Normative Influence 303 11-3a How Normative Influence Can Affect Consumer

Behavior 304

11-3b What Affects Normative Influence Strength 305

11-4 Informational Influence 309 11-4a Factors Affecting Informational Influence Strength 309 11-4b Descriptive Dimensions of Information 310 11-4c The Pervasive and Persuasive Influence

of Word of Mouth 311

Summary 314

Endnotes 315

Part 4 �e Consumer’s CulturePart 4 �e Consumer’s Culture 291

Chapter 11 Social In�uences on Consumer Behavior 292

12-1 How Age Affects Consumer Behavior 323 12-1a Age Trends in the United States 323 12-1b Teens and Millennials 323 12-1c Generation X 326 12-1d Boomers 326 12-1e Seniors 327

12-2 How Gender and Sexual Orientation Affect Consumer Behavior 329

12-2a Sex Roles 329 12-2b Differences in Acquisition and Consumption

Behaviors 329 12-2c Gender and Sexual Orientation 331

12-3 How Regional Influences Affect Consumer Behavior 331

12-3a Regions Within the United States 332 12-3b Regions Across the World 333

12-4 How Ethnic and Religious Influences Affect Consumer Behavior 334

12-4a Ethnic Groups Within the United States 334 12-4b Ethnic Groups Around the World 338 12-4c The Influence of Religion 339

Summary 340

Endnotes 340

Chapter 12 Consumer Diversity 321

13-1 How the Household Influences Consumer Behavior 348

13-1a Types of Households 348 13-1b Households and Family Life Cycle 348 13-1c Changing Trends in Household

Structure 349

13-2 Roles that Household Members Play 351 13-2a The Roles of Spouses 352 13-2b The Role of Children 353

13-3 Social Class 355 13-3a Types of Social Class Systems 356 13-3b Social Class Influences 356 13-3c How Social Class Is Determined 356 13-3d How Social Class Changes Over Time 359

13-4 How Does Social Class Affect Consumption? 361 13-4a Conspicuous Consumption and Voluntary

Simplicity 361 13-4b Status Symbols and Judging Others 361 13-4c Compensatory Consumption 361 13-4d The Meaning of Money 362

13-5 The Consumption Patterns of Specific Social Classes 363

13-5a The Upper Class 364 13-5b The Middle Class 364 13-5c The Working Class 364 13-5d The Homeless 365

Summary 367

Endnotes 368

Chapter 13 Household and Social Class In�uences 346

CONTENTSxii

14-1 Values 375 14-1a How Values Can Be Described 375 14-1b The Values That Characterize Western Cultures 376 14-1c Why Values Change 381 14-1d Influences on Values 381 14-1e How Values Can Be Measured 384

14-2 Personality 386 14-2a Research Approaches to Personality 386 14-2b Determining Whether Personality Characteristics

Affect Consumer Behavior 388

14-3 Lifestyles 391 14-3a Lifestyle and Behavior Patterns 391 14-3b Voluntary Simplicity 392

14-4 Psychographics: Combining Values, Personality, And Lifestyles 394

14-4a VALSTM 394 14-4b Other Applied Psychographic Research 394

Summary 396

Endnotes 396

Chapter 14 Psychographics: Values, Personality, and Lifestyles 373

15-1 Innovations 404 15-1a Defining an Innovation 406 15-1b Innovations Characterized by Degree

of Novelty 406 15-1c Innovations Characterized by Benefits

Offered 406 15-1d Innovations Characterized by Breadth 407 15-1e Innovations and Cocreation 407 15-1f The Consequences of Innovations 408

15-2 Resistance Versus Adoption 409 15-2a Whether Consumers Adopt

an Innovation 409 15-2b How Consumers Adopt an Innovation 410 15-2c When Consumers Adopt Innovations 411

15-3 Diffusion 414 15-3a How Offerings Diffuse Through a Market 414 15-3b Factors Affecting the Shape of the Diffusion Curve 414 15-3c How Diffusion Relates to the Product Life Cycle 415

15-4 Influences on Adoption, Resistance, and Diffusion 416 15-4a Characteristics of the Innovation 416 15-4b Uncertainty 418 15-4c Consumer Learning Requirements 418 15-4d Social Relevance 421 15-4e Legitimacy and Adaptability 422 15-4f Characteristics of the Social System 423

Summary 424

Endnotes 425

Part 5 Consumer Behavior Outcomes and IssuesPart 5 Consumer Behavior Outcomes and Issues 403

Chapter 15 Innovations: Adoption, Resistance, and Diffusion 404

16-1 Sources and Functions of Symbolic Meaning 431 16-1a Meaning Derived from Culture 431 16-1b Meaning Derived from the Consumer 432 16-1c The Emblematic Function 432 16-1d The Role Acquisition Function 435 16-1e The Connectedness Function 438 16-1f The Expressiveness Function 438 16-1g Multiple Functions 438 16-1h Symbols and Self-Concept 439

16-2 Special Possessions and Brands 440 16-2a Special Brands 441 16-2b Types of Special Possessions 441 16-2c The Characteristics That Describe Special Possessions 442

16-2d Why Some Products Are Special 443 16-2e Consumer Characteristics Affect What Is Special 443 16-2f Rituals Used with Special Possessions 443 16-2g Disposing of Special Possessions 445

16-3 Sacred Meaning 445

16-4 The Transfer of Symbolic Meaning Through Gift Giving 446

16-4a The Timing of Gifts 447 16-4b Three Stages of Gift Giving 447

Summary 451

Endnotes 451

Chapter 16 Symbolic Consumer Behavior 429

CONTENTS xiii

17-1 In Search of Balance 459 17-1a Self-interest Versus the Interests of Others 459 17-1b Immediate Versus Long-Term Interests 459 17-1c “Dark Side” Versus “Bright Side” Outcomes 460

17-2 Marketing Ethics, Consumer Ethics, and Deviant Consumer Behavior 460

17-2a Acquisition Controversies 461 17-2b Consumption Controversies 466 17-2c Disposition Controversies 471

17-3 Social Responsibility Issues in Marketing 472 17-3a Environmentally Conscious Behavior and Ethical

Sourcing 472

17-3b Charitable Behavior 474 17-3c Community Involvement 474

17-4 How Can Consumers Resist Marketing Practices? 475

Summary 476

Endnotes 476

Glossary 482

Name/Author Index 491

Product Index 511

Subject Index 515

Chapter 17 Marketing, Ethics, and Social Responsibility in Today’s Consumer Society 457

At just about every moment of our lives, we engage in some form of consumer behavior. When we look for posts on social media, watch an ad on TV, send a text message to friends about a movie we just saw, brush our teeth, go to a ball game or to a beach party, visit a website, download a new song, or even throw away an old pair of shoes, we are behaving as a consumer. Being a consumer reaches into every part of our lives. Of course, we are much more than just consumers. We are students, teammates, family members, employees, citi- zens, voters, patrons, patients, clients, neighbors, basketball fans, ice-cream lovers, bloggers, inventors, and more. This book is dedicated to our role as consumers.

Given its omnipresence, the study of consumer behav- ior has critical implications for areas such as marketing, public policy, and ethics. It also helps us learn about ourselves—why we buy certain things, why we use them in a certain way, and how we remove them from our lives through practices like throwing them away, selling, re-gifting, and donating them.

In this book we explore the fascinating world of con- sumer behavior, looking at a number of interesting and exciting topics. Some of these are quickly identified with our typical image of consumer behavior. Others may be surprising. We hope you will see why we became stimulated and drawn to this topic from the very moment we had our first consumer behavior course as students. We hope you will also appreciate why we choose to make this field our life’s work, and why we are dedicated to this textbook.

Why the New Edition of This Book? There are a number of consumer behavior books on the market. An important question concerns what this book has to offer and what distinguishes it from other texts. As active researchers in the field of consumer behavior, our overriding goal was to continue providing a treatment of the field that is up to date and cutting edge. There has been an explosion of research on a variety of consumer behavior topics over the last 30 years. Our primary aim was to pro- vide a useful summary of this material for students of mar- keting. However, in drawing on cutting-edge research, we wanted to be careful not to become too “academic.” Instead, our objective is to present cutting-edge topics in a man- ner that is accessible and easy for students to understand, and provides context for how and why consumer behavior insights are applied in real-world marketing.

Specific changes and improvements to the seventh edi- tion of this book include:

▪ Accessible explanations of the latest academic research and classic research from consumer behavior studies, and their practical implications for marketing strategy worldwide.

▪ Global perspective of research and behavioral concepts related to such important contemporary topics as financial management and money decisions, marketing ethics, privacy and transparency, obesity, materialism, self-control and self-regulation, conta- gion, emotions, mobile marketing, social media, and unconscious consumer behavior.

▪ Carefully edited narrative and examples make the content easier for students to process and connect with basic marketing principles as well as personal consumer experiences.

▪ Balanced coverage of marketing controversies and the challenges and opportunities of marketing as a force for social responsibility.

▪ New and updated examples highlight how all kinds of organizations in many nations use insights into consumer behavior to improve their marketing effectiveness and creativity.

▪ New database analysis exercises offer students an opportunity to make marketing decisions based on consumer demographics and behavior styles.

▪ Improved synergistic and digitally accessible supplemental materials allow students the opportunity to participate in self-assessments, polls, and short videos for self-reflection and more; Additional short readings are also available. These materials are both student friendly and extremely helpful for effec- tive learning using the Cengage MindTap platform. A description of the MindTap platform appears later in this preface.

Textbook Features As award-winning teachers, we have tried to translate our instructional abilities and experience into the writing of this text. The following features have been a natural out- growth of these experiences.

Preface

xiv

Conceptual Model First, we believe that students can learn best when they see the big picture—when they understand what concepts mean, how these concepts are used in business practice, and how these relate to one another. In our opinion, con- sumer behavior is too often presented as a set of discrete topics with little or no relationship to one another. We have therefore developed an overall conceptual model that helps students grasp the big picture and see how the chap- ters and topics are themselves interrelated. Each chapter is linked to other chapters by a specific model that fits within the larger model. Further, the overall model guides the organization of the book. This organizing scheme makes the chapters far more integrative than most other books. Instructors have told us that this conceptual model is a valuable and beneficial aide to student learning.

Practical Orientation, with an Emphasis on Globalization and Social Media Second, we believe that insights into consumer behav- ior are interesting in and of themselves, but also that they should be relevant to managerial practice. The ulti- mate goal of consumer behavior theory and research is to improve the decision-making ability of managers in profit and nonprofit organizations who aim to cater to consumers’ needs, and to help policy makers better pro- tect consumers. Rather than merely translating general psychological or sociological principles and theories to a consumer context, this book is dedicated to understand- ing consumer behavior in order to improve managerial practice. Given our notion that students enjoy seeing how the concepts in consumer behavior can apply to business practice, a second objective of the book was to provide a very practical orientation. We include a wealth of con- temporary real-world examples to illustrate key topics. We also try to broaden students’ horizons by providing a number of international examples. Given the impor- tance of online consumer behavior, the new edition also fully treats the advent and implications of the latest digital developments, social media marketing, and mobile mar- keting applications.

Current and Cutting-Edge Coverage Third, we provide coverage of the field of consumer behav- ior that is as current and up to date as possible (including many of the recent research advances). This includes sev- eral novel chapters that often do not appear in other text- books: “Attitudes Based on Low Effort,” “Judgement and Decision Making Based on Low Effort,” and “Marketing Ethics and Social Responsibility in Today’s Consumer

Society.” These important topics are likely to be of consid- erable interest to students. Instructors have told us how much they appreciate the cutting-edge nature of our book and its ability to keep abreast of the latest research in con- sumer behavior. Students appreciate that this material is delivered in an engaging way that’s also easy to read.

Balanced Treatment of Micro and Macro Topics Fourth, our book tries to provide a balanced perspective on the field of consumer behavior. Specifically, we give treatment to both psychological (micro) consumer behav- ior topics (e.g., attitudes, decision-making) and sociolog- ical (macro) consumer behavior topics (e.g., subculture, gender, social class influences). Also, although we typically teach consumer behavior by starting with the more micro topics and then moving up to more macro topics, we real- ize that some instructors prefer the reverse sequence.

Broad Conceptualization of the Subject Fifth, we present a broad conceptualization of the topic of consumer behavior. While many books focus on what products or services consumers buy, consumer behav- ior scholars have recognized that the topic of consumer behavior is much broader. Specifically, rather than study- ing buying per se, we recognize that consumer behavior includes a set of decisions (what, whether, when, where, set of decisions (what, whether, when, where, set why, how, how often, how much, how long) about acqui- sition (including, but not limited to buying), usage, shar- ing, and disposition decisions. Focusing on more than what products or services consumers buy provides a rich set of theoretical and practical implications for both our understanding of consumer behavior and the practice of marketing.

Finally, we consider the relevance of consumer behav- ior to many constituents, not just marketers. Chapter 1 indicates that consumer behavior is important to mar- keters, public policy makers, ethicists and consumer advocacy groups, and consumers themselves (including students). Some chapters focus exclusively on the impli- cations of consumer behavior for public policy makers, ethicists, and consumer advocacy groups. Other chapters consider these issues as well, though in less detail.

Content and Organization of the Book One can currently identify two main approaches to the study of consumer behavior: One approach focuses on the individual psychological processes that consumers

xvPREFACE

xvi PREFACE

use to make acquisition, consumption, and disposition decisions. A second approach focuses on group behaviors and the symbolic nature of consumer behavior. This lat- ter orientation draws heavily from such fields as sociol- ogy, culture theory, and anthropology. Both orientations are represented in this book. The current book and overall model have been structured around a “micro to macro” organization based on the way we teach this course and the feedback that we have received from reviewers.

Chapter 1 in Part I, “An Introduction to Consumer Behavior,” presents an introduction to consumer behav- ior. It helps students understand the breadth of the field, and its importance to marketers, advocacy groups, public policy makers, and consumers themselves. This chapter introduces some of the newest research and presents the overall model that guides the organization of the text. An Appendix, which follows Chapter 1, introduces methods by which consumer research is conducted.

Part II, “The Psychological Core,” focuses on the inner psychological processes that affect consumer behavior. We see that the amount of effort consumers put into their acquisition, usage, and disposition behaviors and deci- sions has significant effects on the decisions they make. Chapter 2 describes three critical factors that affect effort: the (1) motivation or desire, (2) ability (knowledge and information), and (3) opportunity to engage in behaviors and make decisions. The key role of emotions is also dis- cussed. In Chapter 3, we then examine how consumers process information in their environments (ads, prices, product features, word-of-mouth communications, etc.). We consider how they come in contact with these stim- uli (exposure), notice them (attention), and perceive them (perception). Chapter 4 continues by discussing how consumers compare new things they encounter in their environment to their existing knowledge, a process called categorization, and how they make sense of or comprehend them on a deeper level. Also, because consumers often must remember the information they have previously stored in order to make decisions, this chapter examines the important topic of consumer memory. In Chapters 5 and 6, we see how attitudes are formed and changed depending on whether the amount of effort consumers devote to forming an attitude is high or low and whether attitudes are cognitively or affectively based.

Whereas Part II examines some of the internal factors that influence consumers’ decisions, a critical domain of consumer behavior involves understanding how consum- ers make acquisition, consumption, and disposition deci- sions. Thus, in Part III, “The Process of Making Decisions,” we examine the sequential steps of the consumer deci- sion-making process. In Chapter 7, we examine the initial steps of this process—problem recognitionsteps of this process—problem recognitionsteps of this process— and information search. Similar to the attitude change processes described earlier, we next examine the consumer decision-making process, both when effort is high (Chapter 8) and when

it is low (Chapter 9). Further, in both chapters we exam- ine these important processes from both a cognitive and an affective perspective. Finally, the process does not end after a decision has been made. In Chapter 10, we see how consumers determine whether they are satisfied or satisfied or satisfied dissat- isfied with their decisions and how they isfied with their decisions and how they isfied learn from choos- ing and consuming products and services.

Part IV, “The Consumer’s Culture,” examines how various aspects of culture affect consumer behavior. First, Chapter 11 considers how, when, and why the specific reference groups (friends, work group, clubs) to which we belong can influence acquisition, usage, and disposition decisions and behaviors. Then, we see how consumer diversity (in terms of age, gender, sexual orientation, region, ethnicity, and religion) can affect consumer behavior in Chapter 12. Chapter 13 then examines how social class and household characteristics influence acquisi- tion, usage, and disposition behaviors. Finally, Chapter 14 examines how external influences affect our personality, lifestyle, and values, as well as consumer behavior.

Finally, Part V, “Consumer Behavior Outcomes,” examines the effects of the numerous influences and decision processes discussed in the previous three sections. Chapter 15 builds on the topics of internal decision-making and group behav- ior by examining how consumers adopt new offerings, and how their adoption decisions affect the spread or diffusion of an offering through a market. Because products and ser- vices often reflect deep-felt and significant meanings (e.g., our favorite song or restaurant), Chapter 16 focuses on the excit- ing topic of symbolic consumer behavior. Finally, Chapter 17 examines marketing, ethics, and social responsibility, including a look at marketing controversies and the use of marketing for constructive purposes.

Pedagogical Advantages Based on our extensive teaching experience, we have incorporated a number of features that should help stu- dents learn about consumer behavior.

Chapter Opening Model Each chapter begins with a conceptual model that shows the organization of the chapter, the topics discussed, and how they relate both to one another and to other chapters. Each model reflects an expanded picture of one or more of the elements presented in the overall conceptual model for the book (described in Chapter 1).

Marketing Implication Sections Numerous Marketing Implications sections are interspersed throughout each chapter. These sections illustrate how various consumer behavior concepts can be applied to the practice

xviiPREFACE

of marketing, including such basic marketing functions as market segmentation, target market selection, positioning, market research, promotion, price, product, and place decisions. An abundance of marketing examples (from many countries and many industries) provide concrete applications and implementations of the concepts to marketing practice.

Marginal Glossary Every chapter contains a set of key terms that are both high- lighted in the text and defined in margin notes. These terms and their definitions should help students identify and remember the central concepts described in the chapter.

Rich Use of Full-Color Exhibits Each chapter contains a number of illustrated examples, including photos, advertisements, charts, and graphs. These illustrations help to make important topics person- ally relevant and engaging, help students remember the material, and make the book more accessible and aesthet- ically pleasing, thereby increasing students’ motivation to learn. All diagrams and charts employ full color, which serves to both highlight key points and add to the aes- thetic appeal of the text. Each model, graph, ad, and photo also has an accompanying caption that provides a simple description and explanation of how the exhibit relates to the topic it is designed to illustrate.

End-of-Chapter Summaries The end of each chapter provides students with a simple and concise summary of topics. These summaries are a good review tool to use with the conceptual model to help students to get the big picture.

End-of-Chapter Questions Each chapter includes a set of review and discussion questions designed to help students recall and more deeply understand the concepts in the chapter.

Complete Teaching Package with Online Content In addition to online content for students including self-assessments, polls, and short videos for self-reflection, a variety of ancillary materials have been designed to help the instructor in the classroom. All of these supplements have been carefully coordinated to support the text and provide an integrated and synergistic set of materials for the instructor. Dr. Angeline Close Scheinbaum of

The University of Texas at Austin authors the digital content and has revised and updated the instructor’s teaching manual. She brings a modern approach, and includes experiential aspects of consumer behavior in the supplements. Her objective in this project is twofold:

▪ Give students digital content so they can have more real-world examples of the theoretical content and opportunities for self-assessment and more critical thinking, while enhancing the student learning expe- rience via more interactive and visually engaging supplements.

▪ Help instructors, especially newer instructors, by giving modern supplements that are synergistic with each other. That is, the text, the Instructor’s Manual, Test Bank, PowerPoint presentations, and quizzes reinforce the same learning objectives and content.

▪ MindTap for Marketing: Consumer Behavior

As authors, one frustration we’ve had in the past is providing current examples. Every day, new and inter- esting video, audio, and print content that relates to consumer behavior is covered in the media. Now technology helps us make such content immediately accessible to students. We have partnered with Cen- gage Learning to provide students with access to cur- rent issues in Consumer Behavior through the content of Business Insights. We have selected exciting content from Business Insights which contains readings and videos from sources like The New York Times, The Economist magazine, and Economist magazine, and Economist Marketing News and related it to the concepts in each chapter. We have also created assessments to provide assurances to both students and instructors that learning objectives are being met.

MindTap The seventh edition of Consumer Behavior offers two exciting Consumer Behavior offers two exciting Consumer Behavior alternative teaching formats. Instructors can choose between either a hybrid print and digital offering or a version that provides completely integrated online delivery through a platform called MindTap. MindTap is a fully online, highly personalized learning experience built upon authoritative content. By combining readings, multimedia, activities, and assessments into a singular Learning Path, MindTap guides students through their course with ease while promoting engagement. Instructors personalize the Learning Path by customizing Cengage Learning resources and adding their own content via apps that integrate into the MindTap frame- work seamlessly. Instructors are also able to incorporate the online component of Consumer Behavior into a traditional Consumer Behavior into a traditional Consumer Behavior Learning Management System (e.g., Blackboard, Canvas, D2L, etc.) providing a way to manage assignments, quizzes, and tests throughout the semester.

xviii

How to Access the Supplements Consumer Behavior 7e’s Instructor’s Manual, Test Bank, Consumer Behavior 7e’s Instructor’s Manual, Test Bank, Consumer Behavior and PowerPoint supplements, are available on the Instruc- tor’s Resource companion site.

Instructor’s Manual The Instructor’s Manual is updated to be synergistic with all other supplements. Each chapter includes a summary, learning objectives, chapter outline, review/discussion answers discussion questions, and experiential learning exercises to enhance student learning.

Test Bank A new test bank is available for CB 7e, also updated to be synergistic with the text and other supplements. Each test bank question has a new system of potential choices. There is one clearly defined correct choice. There are two or three other choices that are clearly incorrect for a precise rea- son (as indicated by the readings). Then, there is a choice that is not relevant at all. The number of “all of the above” and “none of the above” choices has been reduced. The new CB 7e test bank includes AACSB requirement tags (e.g., ethics).

Test Bank, Cognero Format The Cognero Testing system is a full-featured, online assessment system that allows you to manage content, cre- ate and assign tests, deliver tests through a secure online test center, and have complete reporting and data dissem- ination at your fingertips. The following are some of the features of the Cognero Testing System:

▪ Access from anywhere. Web-based software that runs in a Web browser. No installs are required to start using Cognero. Works in Windows, Mac, and Linux browsers.

▪ Desktop-like interface looks and feels like a desktop application. Uses the latest Web functionality to imi- tate desktop usability features like drag-and-drop and wizards.

▪ Full-featured test generator. Author and manage your assessment content as well as build tests using the only online test generator that supports all of the major functionality of its desktop competitors. Cognero is complete with a full-featured word processor, multil- anguage support, Math-ML compliant equation edi- tor, algorithmic content support, native support for 15 question types (true/false, modified true/false, yes/no, multiple choice, multiple response, numeric response, completion, matching, objective short answer, subjec- tive short answer, multi-mode, ordering, opinion scale/

Likert, essay, and custom), unlimited metadata, ability to print professional paper tests with multiple styles and versions, and more.

▪ Class Management and Assignments. Manage your students, classes, and assignments with the ease of simple drag-and-drop. You can build or import ros- ters, have students self-register for a class, and move students easily from class to class. Once your roster is set, simply drag a test to a class to schedule and put your students to work.

▪ Secure Online Testing. Cognero has an integrated secure online testing center for your students. Along with delivering traditional tests, your students can receive immediate feedback on each question and/or receive a detailed end-of-assignment report to help them know exactly how they are doing.

▪ Complete Reporting System. What is the use of assess- ment without being able to disseminate the data derived from it? Cognero allows you to analyze how your students are performing on a real-time basis and from multiple approaches to allow for immediate intervention. You can also quickly analyze your ques- tions and perform a gap analysis of student testing.

▪ Content Management System. Cognero has a unique set of tools to allow for the creation of products (groups of question sets and tests) for distribution to other users. This system includes workflow management for the shared authoring environment, the ability to authorize specific users to access your content, and the ability to edit content and push changes through to subscribers. There are also a number of design features to make high volume authoring within Cognero very efficient. All content created in this system has built-in digital rights management, meaning that your content is protected against unauthorized use.

PowerPoint Presentation Package A package of professionally developed PowerPoint slides is available for use by adopters of this textbook. These lec- ture PowerPoint slides outline the text content, including key figures and tables. CB 7e will have more user friendly, experiential presentations to enhance student learning and break up the monotony of text-based lectures.

Videos A video package has been provided to supplement and enliven class lectures and discussion. Videos contain real- world scenarios that illustrate certain concepts in a given chapter. The clips are intended to be interesting, to ground the concepts in real life for students, and to provide an impetus for stimulating student input and involvement.

PREFACE

Acknowledgments Special recognition is extended to Marian Wood, whose assistance was crucial to the completion of this project. Her tireless work on this project is greatly appreciated. We have also been extremely fortunate to work with a wonderful team of dedicated professionals from Cengage Learning. We are very grateful to Jason Fremder, Michael Roche, and Bethany Sexton whose enormous energy and enthusiasm spurred our progress on this seventh edition. We also appreciate the efforts of Angeline Close Schein- baum of the University of Texas at Austin for her work on the online content and Instructor’s Manual. The qual- ity of this book and its ancillary package has been helped immensely by the insightful and rich comments of a set of researchers and instructors who served as reviewers. Their thoughtful and helpful comments had real impact in shap- ing the final product. In particular, we wish to thank:

Larry Anderson Long Island University

Mike Ballif University of Utah

Sharon Beatty University of Alabama

Sandy Becker Rutgers Business School

Russell Belk University of Utah

Joseph Bonnice Manhattan College

Timothy Brotherton Ferris State University

Carol Bruneau University of Montana

Margaret L. Burk Muskingum College

Carol Calder Loyola Marymount University

Paul Chao University of Northern Iowa

Dennis Clayson University of Northern Iowa

Joel Cohen University of Florida

Sally Dibb University of Warwick

Richard W. Easley Baylor University

Richard Elliott Lancaster University

Abdi Eshghi Bentley College

Frank W. Fisher Stonehill College

Ronald Fullerton Providence College

Philip Garton Leicester Business School

Peter L. Gillett University of Central Florida

Debbora Heflin Cal Poly, Pomona

Elizabeth Hirschman Rutgers University

Raj G. Javalgi Cleveland State University

Harold Kassarjian UCLA

Patricia Kennedy University of Nebraska, Lincoln

Robert E. Kleine Arizona State University

Stephen K. Koernig DePaul University

Scott Koslow University of Waikato

Robert Lawson William Patterson University

Phillip Lewis Rowan College of New Jersey

Kenneth R. Lord SUNY, Buffalo

Peggy Sue Loroz Gonzaga University

Bart Macchiette Plymouth State College

Michael Mallin Kent State University

Lawrence Marks Kent State University

David Marshall University of Edinburgh

Ingrid M. Martin California State University, Long Beach

Anil Mathur Hofstra University

A. Peter McGraw University of Colorado, Boulder

Matt Meuter California State University, Chico

Martin Meyers University of Wisconsin, Stevens Point

Vince Mitchell UMIST

Lois Mohr Georgia State University

Risto Moisio California State University, Long Beach

Rebecca Walker Naylor University of South Carolina

James R. Ogden Kutztown University

Thomas O’Guinn University of Illinois

Marco Protano New York University

Judith Powell Virginia Union University

Michael Reilly Montana State University

Anja K. Reimer University of Miami

Gregory M. Rose The University of Mississippi

Mary Mercurio Scheip Eckerd College

Marilyn Scrizzi New Hampshire Technical College

John Shaw Providence College

C. David Shepherd University of Tennessee, Chattanooga

Robert E. Smith Indiana University

Eric Richard Spangenberg Washington State University

Bruce Stern Portland State University

Barbara Stewart University of Houston

Jane Boyd Thomas Winthrop University

Phil Titus Bowling Green State University

Carolyn Tripp Western Illinois University

Rajiv Vaidyanathan University of Minnesota, Duluth

Stuart Van Auken California State University, Chico

Kathleen D. Vohs University of Minnesota

Janet Wagner University of Maryland

John Weiss Colorado State University

Tommy E. Whittler University of Kentucky

Carolyn Yoon University of Michigan

PREFACE

222

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The Psychological Core

2 Motivation, Ability, and Opportunity 3 From Exposure to Comprehension 4 Memory and Knowledge 5-6 Attitudes Based on Effort Attitudes Based on Effort

An Introduction An Introduction to

Consumer Behavior Consumer Behavior 1 Understanding Consumer Understanding Consumer

BehaviorBehavior

The Process of The Process of Making DecisionsMaking Decisions

7 Problem Recognition and Problem Recognition and Information SearchInformation Search

8-9 Judgment and Decision-Judgment and Decision- Making Based on EffortMaking Based on Effort

10 Post-Decision Processes Post-Decision Processes

The Consumer’s Culture Consumer’s Culture Consumer’s Culture 11 Social Influences on

Consumer Behavior 12 Consumer Diversity 13 Household and Social Class

Influences 14 Psychographics: Values,

Personality, and Lifestyles

Consumer Behavior Consumer Behavior Outcomes and Issues 15 Innovations: Adoption,

Resistance, and Diffusion 16 Symbolic Consumer Behavior 17 Marketing, Ethics, and Social

Responsibility in Today’s Consumer Society

IN PART ONE, you will learn that consumer behavior involves much more than purchasing products. In addition, you will find out that marketers continuously study consumer behavior for clues to who buys, uses,

and disposes of what goods and services, as well as clues

to when, where, why, and how they make decisions.

Chapter 1 defines consumer behavior and examines

its importance to marketers, advocacy groups, public

policy makers, and consumers. The chapter also pres-

ents the overall model that guides the organization of

this book. As this model indicates, consumer behavior

covers four basic domains: (1) the psychological core,

(2) the process of making decisions, (3) the consum-

er’s culture, and (4) consumer behavior outcomes and

issues. In addition, you will read about the implica-

tions of consumer behavior for marketing activities.

The Appendix focuses on consumer behavior

research and its special implications for market-

ers. You will learn about various research methods,

types of data, and ethical issues related to consumer

research. With this background, you will be able to

understand how consumer research helps market-

ers develop more effective strategies and tactics for

reaching and satisfying customers.

Part 1

An Introduction to Consumer Behavior

1 Understanding Consumer Behavior 4

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Understanding Consumer Behavior LEARNING OBJECTIVESAfter studying this chapter, you will be able to:

▸ Define consumer behavior and explain the components that make up the definition.

▸ Identify the four domains of consumer behavior that affect acquisition, usage, and disposition decisions.

▸ Discuss the benefits of studying consumer behavior.

▸ Explain how companies apply consumer behavior concepts when making marketing decisions.

INTRODUCTION From Starbucks to Samsung and Apple to Amazon, all businesses know that their success depends on understanding consumer behav- ior and trends so they can create goods and services that consum- ers will want, like, use, and recommend to others. Charities, schools, government agencies, and other organizations are also interested in how consumers behave and how marketing can influence consum- ers’ thoughts, feelings, and actions.

This chapter provides an overview of (1) what consumer behav- ior is, (2) what factors affect it, (3) who benefits from studying it, and (4) how marketers apply consumer behavior concepts. Because you are a consumer, you probably have some thoughts about these issues. However, you may be surprised at how broad the domain of consumer behavior is, how many factors help explain it, and how important the field is to marketers, ethicists and consumer advo- cates, public policy makers and regulators, and consumers like yourself. You will also get a glimpse of the marketing implications of consumer behavior, previewing how we will connect consumer behavior concepts with practical applications throughout this book.

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 5

activities, experiences, and ideas such as going to the den- tist, attending a concert, taking a trip, and donating to UNICEF.2 In addition, consumers make decisions about people, such as voting for politicians, reading books by

certain authors, streaming movies or TV shows starring certain actors, and attending concerts featuring favorite bands.

Another example of consumer behavior involves choices about the consumption of time, a scarce resource. Will you check to see what’s hap- pening on Facebook, search for a YouTube video, watch a sports event live, or record a program and watch it later, for instance?3 How we use time reflects who we are, what our lifestyles are like, and how we are both the same as and different from others.4 Because consumer behavior includes the consumption of so many things, we use the simple term offering to encompass these entities.

1-1b CONSUMER BEHAVIOR INVOLVES MORE THAN BUYING

Marketers are intensely interested in consumer behavior related to using and disposing of a product, not just the way that consumers make acquisition decisions. They

1-1 Defining Consumer Behavior If you were asked to define consumer behavior, you might say it refers to the study of how a person buys products. However, consumer behavior really involves quite a bit more, as this more complete definition indicates:

Consumer behavior reflects the totality of con- sumers’ decisions with respect to the acquisi- tion, consumption, and disposition of goods, services, activities, experiences, people, and ideas by (human) decision-making units [over time].1

This definition has some very important ele- ments, summarized in Exhibit 1.1. The following sections present a closer look at each element.

1-1a CONSUMER BEHAVIOR INVOLVES GOODS, SERVICES, ACTIVITIES, EXPERIENCES, PEOPLE, AND IDEAS

Consumer behavior means more than just the way that a person buys tangible products such as bath soap and automobiles. It also includes consumers’ use of services,

Consumer behav- ior The totality of consumers’ decisions with respect to the acquisition, consump- tion, and disposition of goods, services, time, and ideas by human decision-making units (over time).

Offering A product, service, activity, experi- ence, or idea offered by a marketing organiza- tion to consumers.

Exhibit 1.1 ▸ What Is Consumer Behavior? Consumer behavior reflects more than the way that a product is acquired by a single person at any one point in time. Think of some marketing strategies and tactics that try to influence one or more of the dimensions of consumer behavior shown in this exhibit.

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PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR6

used packaging and recycled materials. In North and South America, Europe, and the Baltic, the company part- ners with firms such as PepsiCo to collect mountains of discarded packaging and turn them into usable products for sale.16

Managing Money and Making Financial Decisions How do consumers make financial decisions before, during, and after acquiring an offering? What are their attitudes toward money and prices? These topics are the focus of much study because consumers don’t always do a good job of managing money. For example, consumers generally know how to budget and plan for ordinary pur- chases, but they tend to underestimate spending on out- of-the-ordinary purchases and, in particular, spend more

than anticipated on individual purchases.17 On the other hand, consumers do adjust their bud- gets in some situations. For example, perhaps because the price of gas is very salient (with prices displayed on store signs and discussed in the news), when gas prices rise, consumers do tend to shop less frequently, switch to one-stop shopping at low-price retail establishments, and reduce overall spending to compensate.18

Consumer behavior also affects decisions about managing debt. For instance, consumers

also study how consumers make decisions about personal finances.

Acquiring an Offering Buying represents one type of acquisition behavior. As shown later in this chapter, acquisition includes other ways of obtaining goods and services, such as renting, leasing, trading, and sharing. It also involves decisions about time as well as money.5 Consumers sometimes find themselves interrupted during a consumption experience; studies show interruption actually makes a pleasant expe- rience seem more enjoyable when resumed.6 Deadlines can also affect acquisition behavior: Consumers tend to procrastinate in redeeming coupons and gift cards with far-future deadlines, but move more quickly when dead- lines are closer. Why? Because they do not want to regret having missed out and they expect to have more time to enjoy and indulge themselves with the acquisition in the future.7 Obviously, attitudes toward materialism, status, and self-concept play a role in acquisition behavior, as dis- cussed in later chapters.

Using an Offering After consumers acquire an offering, they use it, which is why usage is at the very core of consumer behavior.8 Whether and why we use certain products can symbolize something about who we are, what we value, and what we believe. The products we use on Thanksgiving (e.g., mak- ing desserts from scratch or buying them in a bakery) may symbolize the event’s significance and how we feel about our guests. The music we enjoy (Lady Gaga or Mark Ron- son) and the jewelry we wear (nose rings or engagement rings) can also symbolize who we are and how we feel. Moreover, marketers must be sensitive to when consum- ers are likely to use a product,9 whether they find it effec- tive,10 whether they control their consumption of it,11 and how they react after using it—do they spread positive or negative word-of-mouth reviews about a new movie, for instance?12

Disposing of an Offering Disposition, how consumers get rid of an offering they have previously acquired, can have important implica- tions for marketers.13 Consumers can give away their used possessions, sell them on eBay or on consignment to vin- tage stores, rent them via sharing websites, or lend them to others. As discussed in detail in Chapter 17, environmental concerns are growing among consumers and marketers. Eco-minded consum- ers often seek out biodegradable products made from recycled materials or choose goods that do not pollute when disposed of (see Exhibit 1.2).14 Municipalities are also interested in how to moti- vate earth-friendly disposition.15 Marketers see profit opportunities in addressing disposition concerns. TerraCycle, for example, markets tote bags, pencil cases, and other products made from

Acquisition The process by which a consumer comes to own an offering.

Usage The process by which a consumer uses an offering.

Disposition The process by which a consumer discards an offering.

Exhibit 1.2 xhibit 1.2 ▸ Disposition Consumers dispose of old products they acquired in a number of ways, oftentimes through recycling or vintage shops.

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 7

phone, via social media, or by e-mail or text message. Moreover, the individuals engaging in consumer behavior can take on one or more roles. In the case of a car pur- chase, for example, one or more family members might take on the role of information gatherer by researching different models. Others might assume the role of influ- encer and try to affect the outcome of a decision. One or more members may take on the role of purchaser by actually paying for the car, and some or all may be users. Finally, several family members may be involved in the disposal of the car.

1-1e CONSUMER BEHAVIOR INVOLVES MANY DECISIONS

Consumer behavior also involves understanding whether, why, when, where, how, how much, how often, and for how long consumers will buy, use, or dispose of an offer- ing (look back at Exhibit 1.1).

Whether to Acquire/Use/Dispose of an Offering Consumers must decide whether to acquire, use, or dis- pose of an offering. They may need to decide whether to spend or save their money when they earn extra cash. How much they decide to spend may be influenced by their perceptions of how much they recall spending in the past.24

They may need to decide whether to order a pizza, clean out a closet, or download a movie. Some consum- ers collect items, for example, a practice that has created a huge market for buying, selling, transporting, storing, and insuring collectible items.25 Decisions about whether to acquire, use, or dispose of an offering are often related to personal goals, safety concerns, or a desire to reduce economic, social, or psychological risk. However, such decisions can also be affected by subtle cues in our envi- ronment. Did you know that the mere act of hand washing can affect people’s decisions to relinquish their own pos- sessions?26 Also, simply entering a lottery can undermine someone’s self-control—making a person more likely, for example, to give in to indulgent purchases.27 Self-control is an important factor in many consumer behavior situa- tions, as you’ll see in later chapters.

What Offering to Acquire/Use/Dispose Of Consumers make decisions every day about what to buy; in fact, U.S. consumers spend an average of about $90 per day on goods and services in a typical month.28 In some cases, we make choices among product or service catego- ries such as buying food versus downloading new music. In other cases, we choose between brands such as whether to buy an Apple iPhone or a Samsung Galaxy phone. Our choices multiply daily as marketers introduce new prod- ucts, sizes, and packages. Exhibit 1.3 shows how much, on average, U.S. consumers spend for major categories of goods and services every year.

are likely to make higher repayments when credit card statements make no mention of a mandatory minimum monthly repayment.19 Another study found that con- sumers who close a credit account are more likely to be successful at eliminating their debt, because taking this step motivates them to persist in pursuit of their goal.20 When consumers feel powerful and in control of their resources, they will put more money in the bank in order to maintain that state of power.21

1-1c CONSUMER BEHAVIOR IS A DYNAMIC PROCESS

The sequence of acquisition, consumption, and disposi- tion can occur over time in a dynamic order—hours, days, weeks, months, or years, as shown in Exhibit 1.1. To illus- trate, assume that a family has acquired and is using a new car. Usage provides the family with information—whether the car drives well and is reliable—that affects when, whether, how, and why members will dispose of the car by selling, trading, or junking it. Because the family always needs transportation, disposition is likely to affect when, whether, how, and why its members acquire another car in the future.

Entire markets are designed around linking one con- sumer’s disposition decision to other consumers’ acqui- sition decisions. When consumers buy used cars, they are buying cars that others have disposed of. From eBay’s online auctions to Goodwill Industries’ secondhand clothing stores, from consignment shops to used books sold online, many businesses exist to link one consumer’s disposition behavior with another’s acquisition behavior. Environmental attitudes and actions are changing, which means marketers must take into account consumers’ goals and priorities, perceptions of brands, and internal pro- cesses when planning marketing efforts.

Broader changes in consumer behavior occur over time, as well. Fifty years ago, consumers had far fewer brand choices and were exposed to fewer marketing messages. In contrast, today’s consumers (particularly millennials) are more connected, easily able to research offerings online, access communications and promotions in multiple media, and check what others think of brands with a quick search or social media post. Later chapters examine these influences in more detail. Consumers can also work with marketers or with each other to collaboratively create new products.22 For example, thousands of consumers partic- ipate when Mountain Dew uses crowdsourcing to request crowdsourcing to request crowdsourcing ideas for new soft-drink flavors, product logos, and ads.23

1-1d CONSUMER BEHAVIOR CAN INVOLVE MANY PEOPLE

Consumer behavior does not necessarily reflect the action of a single individual. A group of friends, a few coworkers, or an entire family may plan a birthday party or decide where to have lunch, exchanging ideas in person, on the

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR8

electronics product because they believe that the prod- uct will soon be outdated or that some firms will leave this market, leaving them without after-sale support or service. At times, consumers who want to acquire or con- sume an offering are unable to do so because what they want is unavailable. Ethics and social responsibility can also play a role. Some consumers may want to avoid prod- ucts made in factories with questionable labor practices or avoid movies downloaded, copied, and shared without permission.30 This is why transparency is increasingly of concern when consumers want to know what a brand or company stands for.

How to Acquire/Use/Dispose of an Offering Marketers gain a lot of insight by understanding how con- sumers acquire, consume, and dispose of an offering.

Ways of Acquiring an Offering How do consumers decide whether to acquire an offer- ing in a store or mall, online, or at an auction?31 How do they decide whether to pay with cash, a check, a debit card, a credit card, an electronic system such as PayPal, or a “mobile wallet” smartphone payment app such as

Why Acquire/Use/Dispose of an Offering Consumption can occur for a number of reasons. Among the most important reasons, as you will see later, are the ways in which an offering meets someone’s needs, val- ues, or goals. Some consumers acquire tattoos as a form of self-expression, to fit into a group, or to express their feelings about someone or something. Taking the self- expression of tattoos into the automotive arena, 3M makes a series of vinyl wrap “tattoos” for car owners to use in personalizing the look of their vehicles.29 Acquisition may be related to a consumer’s attitudes toward money, mate- rialism, status, emotions, and self-control, as discussed in other chapters.

Sometimes our reasons for using an offering are filled with conflict, which leads to some difficult consumption decisions. Teenagers may smoke cigarettes or e-cigarettes, even though they know it is harmful, because they think smoking will help them gain acceptance. Some consum- ers may be unable to stop acquiring, using, or disposing of products. They may be physically addicted to products such as cigarettes, or they may have a compulsion to eat, gamble, or buy.

Why an Offering Is Not Acquired/Used/ Disposed Of Marketers also try to understand why consumers do not acquire, use, or dispose of an offering. For exam- ple, consumers may delay buying a particular consumer

Exhibit 1.3 xhibit 1.3 ▸ Average Annual U.S. Consumer SSSpending, By Categorypending, By Categorypending, By Category On average, U.S. consumers spend more for basics like housing, transportation, and food than for other categories of expenditures.

Item Average annual

expenditure by consumers

Housing $17,148

Transportation 9,004

Food 6,602

Personal insurance, pensions 5,528

Health care 3,631

Entertainment 2,482

Cash contributions 1,834

Clothing and services 1,604

All other expenditures 3,267

TOTAL $51,100

Source: Adapted from “Consumer Expenditures—2013,” Economic News Release, September 9, 2014, U.S. Department of Labor, U.S. Bureau of Labor Statistics, Table A, www.bls.gov.

Exhibit 1.4 xhibit 1.4 ▸ Eight Ways to Acquire an OOfferingffering

There are many ways that consumers can acquire an offering.

Acquisition Method Description

Buying Buying is a common acquisition method used for many offerings.

Trading Consumers might receive a good or service as part of a trade.

Renting or leasing

Instead of buying, consumers rent or lease cars, furniture, vacation homes, and more.

Bartering Consumers (and businesses) can exchange goods or services without having money change hands.

Gifting Each society has many gift-giving occasions as well as informal or formal rules dictating how gifts are to be given, what is an appropriate gift, and how to respond to a gift.

Finding Consumers sometimes find goods that others have lost (hats left on a bus) or thrown away.

Stealing Because various offerings can be acquired through theft, marketers have developed products to deter this acquisition method, such as alarms to deter car theft.

Stealing Another method of acquisition is by sharing or borrowing. Some types of “sharing” are illegal and border on theft, as when consumers copy and share movies.

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 9

“time for me” or “time for others” and whether acquiring or using an offering is planned or spontaneous.38 In cold weather, our tendency to rent movies, call for a tow truck, or shop for clothes is greatly enhanced. At the same time, we are less likely to eat ice cream, shop for a car, or look for a new home during cold weather. Time of day influ- ences many consumption decisions, which is why Panera Bread is adding drive-throughs to accommodate breakfast customers in a hurry and McDonald’s now serves break- fast all day, every day.39

Our need for variety can affect when we acquire, use, or dispose of an offering. We may decide not to eat a sandwich for lunch today if we have already had it every other day this week. Transitions such as graduation, birth, retirement, and death also affect when we acquire, use, and dispose of offerings. For instance, we buy wedding rings when we get married. When we consume can be affected by traditions influenced by our families, our cul- ture, and the area in which we live.

Decisions about when to acquire or use an offering are also affected by knowing when others might or might not be buying or using it. Thus, we might choose to go to the gym when we know that others will not be doing so. In addition, we may wait to buy until we know something will be on sale; even if we have to line up to buy something popular, we are likely to continue waiting if we see many people joining the line behind us.40 Also, waiting to con- sume a pleasurable product such as candy increases our enjoyment of its consumption, even though we may be frustrated by having to wait.41

Another decision is when to acquire a new, improved version of a product we already own. This can be a diffi- cult decision when the current model still works well or has sentimental value. However, marketers may be able to affect whether and when consumers buy upgrades by pro- viding economic incentives for replacing older products.42

Even the first letter of our last name can impact when we acquire products. If your last name begins with a let- ter that’s later in the alphabet (i.e., W, X, Y, or Z) you may be faster in buying the product than consumers whose last name begins with a letter that’s in the beginning of the alphabet. Why? One reason is that as a kid you were always last when lines or roll calls were alphabetical. If you’ve learned to wait, you may develop a desire not to wait, which leads to buying more quickly.43

Where to Acquire/Use/Dispose of an Offering In addition to acquisition decisions, consumers also make decisions about where to consume various products. For example, the need for privacy motivates consumers to stay home when using products that determine whether they are ovulating or pregnant. On the other hand, wire- less connections allow consumers in public places to make phone calls, post messages and photos to social media sites, play computer games, and download photos or music from anywhere in the world.

Apple Pay?32 These examples relate to consumers’ buy- ing decisions, but Exhibit 1.4 shows that consumers can acquire an offering in other ways. As the cost of cars and car insurance rises, some consumers are choosing not to buy cars, but to instead use services like Zipcar or Uber.33

Ways of Using an Offering In addition to understanding how consumers acquire an offering, marketers want to know how consumers use an offering. For obvious reasons, marketers want to ensure that their offering is used correctly. Improper usage of offerings like cough medicine or alcohol can create health and safety problems.34 Because consumers may ignore label warnings and directions on potentially dangerous products, marketers who want to make warnings more effective have to understand how consumers process label information.

Using an offering can include what we use with the offering (e.g., chips with salsa) as well as how we store and organize the items in our homes. Some interesting research suggests that we like to have things organized in our homes because we feel less anxiety and a greater sense of control over our lives when things are structured.35 Notably though what seems organized to one person may seem messy to another. Whereas you might think about the items in your room in finely grained categories (e.g., black shirts are different from white shirts, and pants, shoes, and belts are in a different categories altogether), your roommate might have broader categories for think- ing of items in their closet (they’re all just “my clothes”). You may think her closet is messy; your roommate may think the organization of her closet is perfectly fine.36

Ways of Disposing of an Offering Sometimes nothing but the packaging remains of an offer- ing (such as food) after it has been consumed. This leaves only a decision about whether to recycle or not, and how. Consumers who want to dispose of a tangible product have several options:37

▪ Find a new use for it. Using an old toothbrush to clean rust from tools or making shorts out of an old pair of jeans shows how consumers can continue using an item instead of disposing of it.

▪ Get rid of it temporarily. Renting or lending an item is one way of getting rid of it temporarily.

▪ Get rid of it permanently. Throwing away an item, sending it to a recycling center, trading it, giving it away, or selling it are all ways to get rid of it perma- nently. However, some consumers refuse to throw away things that they regard as special, even if the items no longer serve a functional purpose.

When to Acquire/Use/Dispose of an Offering The timing of consumer behavior can depend on many factors, including our perceptions of and attitudes toward time itself. Consumers may think in terms of whether it is

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR10

Russian consumers eat 10 times as much chocolate as con- sumers in Mexico.48 The amount we are willing to spend on items certainly depends on the state of our economy and whether or not we are in a recession.49 But even if we try to be careful spenders, on the whole we tend to under- estimate our spending. And we often don’t budget for exceptional purchases.50

Sales of a product can be increased when the consumer (1) uses larger amounts of the product, (2) uses the prod- uct more frequently, or (3) uses it for longer periods of time. Bonus packages may motivate consumers to buy more of a product, but does this stockpiling lead to higher consumption? In the case of food products, consumers are more likely to increase consumption when the stockpiled item requires no preparation.51 Usage may also increase when consumers sign up for flat-fee pricing covering unlimited consumption of telephone services or other offerings. However, because many consumers who choose flat-fee programs overestimate their likely consumption, they often pay more than if they had chosen per-usage pricing.52

Some consumers experience problems because they engage in more acquisition, usage, or disposition than they should. For example, they may have a compulsion to overbuy, overeat, smoke, or gamble too much. Research- ers are also investigating what affects consumers’ abilities to control consumption temptations and what happens when self-control falters, an issue for anybody who has tried to diet or make other changes to consumption habits.53

Finally, consumers make decisions regarding where to dispose of goods. Should they toss an old magazine in the trash or the recycling bin? Should they store an old photo album in the attic or give it to a relative? Older consum- ers, in particular, may worry about what will happen to their special possessions after their death and about how to divide heirlooms without creating family conflict.44 A growing number of consumers are recycling unwanted goods through recycling agencies or nonprofit groups or giving them directly to other consumers through web- sites like The Freecycle Network (www.freecycle.org) (see Exhibit 1.5).

How Much, How Often, and How Long to Acquire/Use/Dispose of an Offering Consumers must make decisions about how much of a good or service they need; how often they need it; and how much time they will spend in acquisition, usage, and disposition.45 In general, consumers don’t like to waste things, and therefore will consider whether they are buy- ing more of a product than what they will use.46 Interest- ingly though, we can sometimes mispredict how happy we will be from usage. Although we might want to binge- watch eight episodes of a favorite TV show we’ve down- loaded or streamed, research shows that longer breaks between episodes (e.g., watching one episode a night) will actually make us enjoy the series more.47 Usage decisions can vary widely from person to person and from culture to culture. For example, consumers in Switzerland eat twice as much chocolate as consumers in Russia—and

Exhibit 1.5 xhibit 1.5 ▸ Where to Dispose Consumers have a number of options of places to dispose of goods, such as this recycling website.

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 11

In the following overview, we illustrate the interrelation- ships among the domains with an example of a vacation decision.

1-2a THE PSYCHOLOGICAL CORE: INTERNAL CONSUMER PROCESSES

Before consumers can make decisions, they must have some source of knowledge or information upon which to base their decisions. This source—the psychological core—covers motivation, ability, and opportunity; expo- sure, attention, perception, and comprehension; memory and knowledge; and attitudes about an offering.

Motivation, Ability, and Opportunity Consider the case of a consumer named Jason who is deciding on a ski vacation. In Jason’s mind, the vacation decision is risky because it will consume a lot of money and time, and he does not want to make a bad choice. Therefore, Jason is motivated to learn as much as he can about various vacation options, think about them, and imagine what they will be like. He has put other activities aside to give himself the opportunity to learn and think about this vacation. Because Jason already knows how to ski, he has the ability to determine what types of ski vaca- tions he would find enjoyable. Whether he focuses on concrete things (how much the trip will cost) or abstract things (how much fun he will have) depends on how soon he plans to travel and how well the place he plans to visit fits with his self-concept.69

Exposure, Attention, Perception, and Comprehension Because Jason is motivated to decide where to go on vaca- tion and has both the ability and opportunity to do so, he will make sure he is exposed to and attends to any infor- mation relevant to his decision. He might look at travel ads and websites, read travel-related articles, check Twit- ter for special deals, browse photos on Pinterest, and talk with friends and travel agents. Jason will probably not attend to all vacation information; in fact, he is likely to be exposed to information he will never consciously perceive or pay attention to. He must identify what he has per- ceived—is it an ad or something else?—and then deter- mine what country or mountain resort is involved, all as part of the comprehension process. He might infer that Kitzbühel, Austria, is a reasonably priced vacation des- tination because a website shows information consistent with this interpretation, for example.

Memory and Knowledge Whether Jason can store what he learns about ski resorts in his memory—and whether he can recall that infor- mation later—depends, in part, on his motivation, abil- ity, and opportunity. As he learns something new about ski resorts, he will organize that knowledge according to

1-1f CONSUMER BEHAVIOR INVOLVES EMOTIONS AND COPING

Consumer researchers have studied the powerful role that emotions play in consumer behavior.54 Positive and nega- tive emotions as well as specific emotions like loneliness,55 hope,56 fear,57 regret,58 guilt,59 embarrassment,60 and gen- eral moods61 can affect how consumers think, the choices they make, how they feel after making a decision, what they remember, and how much they enjoy an experience. Emotions like love sometimes describe how we feel about certain brands, possessions, and experiences.62 Consum- ers often use products to regulate their feelings—as when a scoop of ice cream seems like a good antidote to a bad quiz score.63

Because issues related to consumer behavior can involve stress, consumers often need to cope in some way.64 Researchers have studied how consumers cope with difficult choices and an overwhelming array of goods from which to choose;65 how consumers use goods and services to cope with stressful events66 like having cancer; and how they cope with losing possessions due to divorce, natural disasters, moving to a residential-care facility, and other significant events.67 They have even studied the coping behavior of certain market segments, such as low-literacy consumers, who often find it challenging to understand the marketplace without being able to read.68 In later chapters, you’ll learn more about how emotions affect goal pursuit, reactions to marketing stimuli, and other aspects of consumer behavior.

1-2 What Affects Consumer Behavior?

The many factors that affect acquisition, usage, and dispo- sition decisions can be classified into four broad domains, as shown in the model in Exhibit 1.6: (1) The psycho- logical core, (2) the process of making decisions, (3) the consumer’s culture, and (4) consumer behavior outcomes. Although the four domains are presented in separate sec- tions of this book, each domain is related to all the oth- ers. For example, to make decisions that affect outcomes like buying new products, consumers must first engage in processes described in the psychological core. They need to be motivated, able, and have the opportunity to be exposed to, perceive, and attend to information. They need to think about and comprehend this information, develop attitudes about it, and form memories they can retrieve during the decision process.

The cultural environment also affects what motivates consumers, how they process information, and the kinds of decisions they make. Age, gender, social class, ethnic- ity, families, friends, and other factors affect consumer values and lifestyles and, in turn, influence the decisions that consumers make and how and why they make them.

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR12

information. Attitudes do not always predict behavior. For example, although many of us have a positive attitude toward working out, our attitude and our good intentions do not always culminate in a trip to the gym. For this reason, attitudes and choices are considered as separate topics.

1-2b THE PROCESS OF MAKING DECISIONS

As shown in Exhibit 1.6, the processes that are part of the psychological core are intimately tied to the process of making decisions. This domain involves four stages: Prob- lem recognition, information search, decision-making, and postpurchase evaluation.

categories such as “places to stay on a ski vacation.” Jason will also associate each new piece of information with other concepts he knows, such as “expensive” or “eco- friendly.” Note that Jason may store information in mem- ory, but his choices will be based only on the information that can be retrieved from memory—a key point for mar- keters seeking to create strong brand images and develop memorable communications (see Exhibit 1.7).

Forming and Changing Attitudes Jason is likely to form attitudes toward the vacations he has categorized and comprehended. He may have a favorable attitude toward Kitzbühel because a website describes it as affordable, educational, and fun. How- ever, his attitudes might change as he encounters new

Exhibit 1.6 ▸ A Model of Consumer Behavior Consumer behavior encompasses four domains: (1) The consumer’s culture, (2) the psychological core, (3) the process of making decisions, and (4) consumer behavior outcomes and issues. As the exhibit shows, Chapters 2–17 of this book relate to the four parts of this overall model.

P Psychological Core �e

2 Motivation, Ability, Ability, Ability and Opportunity 3 From Exposure to Comprehension 4 Memory and Knowledge

5-6 Attitude Formation and Change

Consumer’s Cs Cmer’s Cmer’ ulture 11 Social Influences Social Influences Social Influences

on Consumer Behavioron Consumer Behavior 12 Consumer Diversity Consumer Diversity 13 Household and Social Household and Social Household and Social

Class Influences Class Influences 14 Psychographics: Values,

PersonalityPersonality, Personality, Personality and Lifestylesand Lifestylesand Lifestyles

�e

Consumer Behaviornsumer Behavior Outcomes and Itcomes and Issues

Innovations:ations: Adoption, ResistanceResistance, and Diffusion Symbolic Consumer BehaviorSymbolic Consumer Behavior MarketingMarketing, Ethics, and Social Responsibility in Responsibility in Today’Today’T s Consumer SocietyConsumer Society

16 17

Makinaking Decisions �e Process of�e Process of

7 Problem Recognition and Information Search

8-9 Judgment and Decision-Making

10 Post-Decision Processes

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 13

educational, and affordable. Not all decisions involve a lot of effort. Jason also faces low-effort decisions such as what brand of toothpaste to take on the trip.

Again, the psychological core is invoked in making decisions. With a high-effort decision, Jason will be motivated to be exposed to lots of information, think about it deeply, analyze it critically, and form attitudes about it. He may have lasting memories about this infor- mation because he has thought about it so much. Con- sumers are not always aware of what they are thinking and how they are making their choices, so Jason might not be able to explain what affected his choices (back- ground music in a travel agency might even be an influ- ence).70 Yet the emotions he thinks he will experience from different options (excitement, relaxation) may well influence his ultimate choice.71 With a low-effort deci- sion, such as what brand of toothpaste to buy, he would probably engage in less information search and process information less deeply, resulting in less enduring atti- tudes and memories.

Making Postdecision Evaluations This step allows the consumer to judge, after the fact, whether the decision made was the correct one and whether to purchase that offering again. When he returns from his vacation, Jason will probably evaluate the outcome of his decisions. If his expectations were met and if the vacation was everything he thought it would be, he will feel satisfied. If the vacation exceeded his expectations, he will be delighted. If it fell short of them, he will be dissatisfied. Once again, aspects of the psychological core are invoked in making postdecision evaluations. Jason may seek out information that vali-

dates his experiences, he may update his attitudes, and he may selectively remember aspects of his trip that were extremely positive or negative.

1-2c THE CONSUMER’S CULTURE: EXTERNAL PROCESSES Why did Jason decide to go on a skiing trip in the first place? In large part, our consumption decisions and how we process information are affected by our culture.72 Culture refers to the typ- ical or expected behaviors, norms, and ideas that characterize a group of people. It can be a pow- erful influence on all aspects of human behav- ior. Jason had certain feelings, perceptions, and attitudes because of the unique combination of groups to which he belongs and the influence they have on his values, personality, and lifestyle.

Reference Groups and Other Social Influences When Jason sees groups of others he perceives as similar to himself, he regards them as reference groups, people whose values he shares and whose opinions he respects. He might also want to emulate the behavior of people

Problem Recognition and the Search for Information Problem recognition occurs when we realize that we have an unfulfilled need. Jason realized that he needed a vaca- tion, for example. His subsequent search for information gave him insight into where he might go, how much the vacation might cost, and when he might travel. He also examined his financial situation. Elements of the psychological core are invoked in problem recognition and search because once Jason realizes that he needs a vacation and begins his information search, he is exposed to information, attends to and per- ceives it, categorizes and comprehends it, and forms attitudes and memories.

Making Judgments and Decisions Jason’s decision is characterized as a high-effort decision, meaning that he is willing to invest a lot of time and to exert mental and emotional energy in making it. He identifies several criteria that will be important in mak- ing his choices: The trip should be fun and exciting, safe,

Exhibit 1.7 xhibit 1.7 ▸ Forming and Retrieving Memories Ads that make consumers form and retrieve memories can be effective if the memories are of a positive experience.

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Culture The typical or expected behaviors, norms, and ideas that characterize a group of people.

Reference group A group of people consumers compare themselves with for information regarding behavior, attitudes, or values.

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR14

shown in Exhibit 1.9, and try to imagine the background factors that predispose consumers to choose these as vaca- tion options.

Household and Social Class Influences Because Jason is a member of the upper middle class and lives with his parents, these household and social class influences may affect his decision to go to a luxurious European ski resort with friends rather than join his fam- ily at a rustic ski area near home.

Values, Personality, and Lifestyle The choices Jason makes are based, in part, on his beliefs, his personality, and his activities, interests, and opinions. Thus, he may be attracted to a European ski trip because he wants a vacation that he thinks will be exciting and out of the ordinary. He also anticipates that this vacation will test his ability to manage on his own and give himself a

sense of accomplishment.

1-2d CONSUMER BEHAVIOR OUTCOMES AND ISSUES

As Exhibit 1.6 shows, the psychological core, deci- sion-making processes, and the consumer’s culture affect consumer behavior outcomes through the symbolic use of products and the diffusion of ideas, products, or services through a market. They also influence and are influenced by issues of ethics and social responsibility.

Consumer Behaviors Can Symbolize Who We Are The groups we belong to and our sense of self can affect the symbols or external signs we use, consciously or unconsciously, to express our actual or desired identity. For example, while skiing, Jason may wear a North Face parka and Bollé goggles to communicate his status as an experienced skier. He might use his phone to snap a selfie and take home souvenirs, such as postcards and T-shirts, which symbolize his vacation.

Consumer Behaviors Can Diffuse Through a Market After Jason makes his vacation decision, he may tell others about his prospective trip, which, in turn, could influence their vacation decisions. In this way, the idea of going to Kitzbühel on vacation may diffuse, or spread, to others. Had Jason resisted going to Kitzbühel (perhaps because he thought it was too expensive or too far away), he might have communicated information that would make others less likely to vacation there. Thus, the diffusion of infor- mation can have both negative and positive effects for marketers.

Consumer Behavior, Ethics, and Social Responsibility Sometimes consumers face potentially conflicting priori- ties: They try to balance an immediate outcome against a

whom he admires and to listen to the advice they offer through word of mouth (in person, on Facebook, on Twit- ter, etc.). Athletes, musicians, or movie stars sometimes serve as reference groups, influencing how we evaluate information and the choices we make (see Exhibit 1.8). Reference groups can also make us feel as if we should behave in a certain way. Jason may feel some pressure to go to Kitzbühel because his friends think that doing so is cool.

Diversity Influences Jason is a member of many regional, ethnic, and religious groups that directly or indirectly affect the decisions he makes. For example, although his decision to ski at a place far from home is fairly typical for a North American man launched on his career, a consumer from a developing nation or a single woman from a different culture may not have made the same choice. Also, his age, gen- der, and educational background may all affect his impressions of what constitutes a good vacation, accounting for his interest in a Euro- pean ski trip. Consider the vacation choices

Symbols External signs that consumers use to express their identity.

Exhibit 1.8 xhibit 1.8 ▸ Influence of Reference Groups Reference groups are people whose values we share and whose opinions we value, as evidenced in the Got Milk? campaigns.

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 15

research: Marketing managers, ethicists and advocates, public policy makers and regulators, and consumers.

1-3a MARKETING MANAGERS The study of consumer behavior provides critical infor- mation to marketing managers for developing marketing

strategies and tactics. The American Marketing Association’s definition of marketing shows why marketing managers need to learn about con- sumer behavior:

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for cus- tomers, clients, partners, and society at large.

As this definition makes clear, marketers need con- sumer behavior insights to understand what consumers and clients value; only then can they develop, communi- cate, and deliver appropriate goods and services. See the Appendix for more about marketing research.

1-3b ETHICISTS AND ADVOCACY GROUPS

Marketers’ actions sometimes raise important ethical questions. Concerned consumers sometimes form advo- cacy groups to create public awareness of inappropriate practices. They also influence other consumers as well as the targeted companies through strategies such as media statements and boycotts. For example, U.S. advocacy groups such as Consumer Watchdog worry about compa- nies tracking what consumers do online. They and other

long-term outcome, or try to balance their own interests against the interests of others. For instance, a consumer who steals may acquire something right away, but the long-term outcome is personally risky and also problem- atic to society. Many consumers are interested in whether products have been produced in an ethical manner, with ethically sourced inputs, as discussed in later chapters. Similarly, marketing decisions may involve con- flicting priorities and sometimes lead to ethical questions, such as whether marketing efforts promote obesity, whether advertising affects self-image, and whether marketing invades con- sumers’ privacy.

On the other hand, both consumers and mar- keters can and do use marketing for constructive purposes, balancing short and long-term horizons plus the interests of themselves and others. These efforts by marketers and consumers may be relatively narrow— focusing on satisfying the needs of a particular consumer segment—or much broader, such as protecting the environ- ment or improving the community. In the example of Jason choosing a ski vacation, he might decide to stay at an ecof-choosing a ski vacation, he might decide to stay at an ecof-choosing a ski vacation, he might decide to stay at an ecof riendly resort that conserves water and uses energy from clean sources. Or he may decide to buy his gear second- hand on eBay or from a retailer that is transparent about its environmental impact.73

1-3 Who Benefits from the Study of Consumer Behavior?

Why do people study consumer behavior? The reasons are as varied as the four different groups who use consumer

Marketing The activ- ity, set of institutions, and processes for creating, communi- cating, delivering, and exchanging offerings with value for indi- viduals, groups, and society.

Exhibit 1.9 ▸ Vacation Choices The word “vacation” means different things to different people. Can you see how factors like social class, ethnic status, lifestyle, economic conditions, group affiliations, and gender affect the kinds of vacations that appeal to us? These examples show that some marketers are successful because they understand what their customers value.

On vacation, would you like to . . .

Learn how to walk on the moon? Space Camp is the place for you! You’ll experience the weightlessness of space flight, launch a rocket, and take a simulated trip to Mars or the Moon. The price for would-be astronauts starts at $499 for a three-day camp experience.

Volunteer to restore parklands? Through the Sierra Club, you can travel to wildlife refuges and parks around the United States when you help preserve wilderness areas and keep up hiking trails. Along with a reasonable price tag—a seven-day stay in the Yosemite Valley to fix hiking trails costs $445, not including transportation—you’ll get an insider’s view of the local area plus the satisfaction of helping the planet.

See where penguins play? On a National Geographic cruise, you’ll start from the tip of South America and sail through Drake Passage. Then you’ll travel by kayak along Antarctica’s edge, home to penguins, whales, and other marine life. If your itinerary includes the Falkland Islands and South Georgia, you’ll pay up to $44,550 (airfare is extra).

Sources: Based on information on www.spacecamp.com; www.sierraclub.org; and www.expeditions.com.

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR16

1-3e CONSUMERS AND SOCIETY Understanding consumer behavior enables marketers and other organizations to provide tools for more informed decision-making. For example, research indicates that we better understand the differences among brands when we can view a chart, matrix, or grid comparing brands and their attributes.81 Thus, matrices such as those presented in the Consumer Reports magazine or on its website are likely to help many consumers make better decisions.

Product, service, and communications developments to protect certain consumer segments have also grown out of understanding how consumers behave. Many people want to protect children against inappropriate advertising or guard themselves against invasion of privacy. Some companies have changed their marketing voluntarily, whereas others have waited until legislators, regulators, or advocacy groups forced them to make changes. Finally, a better understand- ing of consumer behavior can pave the way for programs that benefit society. As discussed in Chapter 17, research on disposition behavior has the potential to aid recycling pro- grams and other environmental activities, just as research on charitable donations can help nonprofit groups design com- munications to attract and inform contributors.

1-4 Making Business Decisions Based on the Marketing Implications of Consumer Behavior

As you learn about consumer behavior, you may wonder how businesses use different consumer behavior insights. Starting with Chapter 2, you will find numerous sections titled Marketing Implications that illustrate how marketers apply consumer behavior concepts in the real world. In gen- eral, consumer research helps marketers to develop prod- uct-specific plans, as well as broader strategies for market segmentation, targeting, and positioning, and to make deci- sions about the components of the marketing mix.

1-4a DEVELOPING AND IMPLEMENTING CUSTOMER-ORIENTED STRATEGY

Marketing is designed to provide value to customers. Thus, marketers must conduct research to understand the various groups of consumers within the marketplace so that they can develop a strategy and specific offerings that will pro- vide such value. Once they develop and implement a suit- able strategy, marketers need research to determine how well it is working and whether it is delivering the expected results (such as increasing market share or improving profits).

How Is the Market Segmented? What one consumer values in a product may not be the same as what another consumer values. Consider the market for orange juice, which can be offered from

groups support an enforceable “do not track” mechanism that would allow consumers to opt out of online track- ing systems. The Federal Trade Commission and Fed- eral Communications Commission are weighing input from advertisers and consumers about the privacy issues involved and possible regulatory action.74 We explore var- ious ethical issues throughout this book and go into more detail in Chapter 17.

1-3c PUBLIC POLICY MAKERS AND REGULATORS

Understanding consumer behavior is crucial for legislators, regulators, and government agencies in developing pol- icies and rules to protect consumers from unfair, unsafe, or inappropriate marketing practices. In turn, marketers’ decisions are affected by these public policy actions. Con- sider the regulatory limits on tobacco marketing that are designed to discourage underage consumers from smoking and to inform consumers of smoking’s health hazards. The United States, Canada, and many other nations already ban cigarette advertising on television and radio. Canada also requires large graphic warning labels on each pack.75 However, electronic cigarettes and vaping are not yet reg- ulated as heavily as traditional tobacco products, despite a steady increase in consumer usage and health concerns about liquid nicotine poisoning.76

Understanding how consumers comprehend and cat- egorize information is important for recognizing and guarding against misleading advertising. For instance, researchers want to know what impressions an ad creates and whether these impressions are true. They also want to know how marketing influences consumers’ decisions to comply with product usage instructions, such as using medical treatments as prescribed.77 Consumer behav- ior research helps government officials understand and try to improve consumer welfare.78 One example is the increase in childhood obesity over the past few decades, which government officials and regulators are working to address through proposals and actions to shape consumer behavior and influence marketing activities.79 Even in developing nations where hunger is an ongoing issue, too many children are overweight, a cause for concern around the world.80 See Chapter 17 for more about this issue.

1-3d ACADEMICS Understanding consumer behavior is important in the academic world for two reasons. First, academics dis- seminate knowledge about consumer behavior when they teach courses on the subject. Second, academics generate knowledge about consumer behavior when they conduct research focusing on how consumers act, think, and feel when acquiring, using, and disposing of offerings. In turn, such academic research is useful to marketing managers, advocacy groups, policy makers, regulators, and others who need to understand consumer behavior.

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 17

decisions. U.S. home builders like Toll Brothers, for exam- ple, are interested in the trend of multigenerational fam- ilies living in one home. They know that some, if not all, of the family members will want a say in the home pur- chase, and therefore the homes must have features that will appeal to all the relatives involved in the decision.87

1-4c DEVELOPING PRODUCTS Developing goods and services that satisfy consumers’ wants and needs is a critical marketing activity. Marketers apply consumer research when making a number of deci- sions about products and branding.

What Ideas Do Consumers Have for New Products? First, marketers need to design an offering that matches what consumers in the target market want. As noted ear- lier, sometimes customers collaborate with marketers or with each other on the development of innovative new offerings. The jewelry firm Swarovski is one of many companies that have used online competitions to tap the creativity of their customers in designing new products.88 The entire inventory of Chicago-based online T-shirt company Threadless comes from designs submitted by consumers. After consumers vote (online or via social media), Threadless puts the highest-scoring items into production—with a ready segment of buyers who have a taste for such individualistic designs.89

What Attributes Can Be Added to or Changed in an Existing Offering? Marketers often use research to determine when and how to modify or tailor a product to meet the needs of new or existing groups of consumers. For example, the U.S. Postal Service (USPS) knows that many engaged couples still send printed wedding invitations through the mail instead of communicating electronically. To supplement its regularly updated series of stamps, the USPS designed a stamp specifically for wedding invitations—which gen- erated $375 million in sales within a few years. Now the USPS offers a range of wedding-stamp designs and invites consumers to personalize their own wedding stamps.90

How Should the Offering Be Branded? Consumer research plays a vital role in decisions about choosing a brand and differentiating it from competing brands and from other brands in the company’s product portfolio.91 For example, the Japanese automaker Nissan once marketed cars under the Datsun brand, but elimi- nated that brand in favor of its corporate name, Nissan, in 1981. Later, the company introduced the Infiniti brand to distinguish its luxury autos from its other cars. Now Nissan is bringing back the Datsun brand for small, low- priced cars to be sold in emerging markets such as Russia, India, and Indonesia. This strategy allows Nissan to main- tain a separate brand image and positioning for each of these product lines.92

concentrate, fresh squeezed, with other juices, and in other combinations. For example, Minute Maid, owned by Coca-Cola, has increased sales by adding “Pure Squeezed” orange juices to its product line. A Minute Maid executive explains that “there’s a segment of consumers who have an affinity for the not-from concentrate [juice].”82 Clearly, research helps marketers understand the different groups that make up a market and whether they can make an offering to appeal to one or more of these groups.

How Profitable Is Each Segment? Consumer research can help marketers identify consum- ers who have needs that are not being met and can reveal the size and profitability of each segment. For example, Daimler has identified a potentially profitable segment of affluent auto buyers interested in upscale compact vehi- cles. It is introducing a series of Mercedes-Benz compact cars and SUVs specifically for this segment, fully equipped with accessories for consumers’ digital devices, all part of its effort to regain the lead in the premium auto market by 2020.83

What Are the Characteristics of Consumers in Each Segment? After determining how the market is segmented and whether it is potentially profitable, marketers need to learn about the characteristics of consumers in each seg- ment, such as their age, education, and lifestyle. This information helps marketers project whether the segment is likely to grow or to shrink over time, a factor that affects future marketing decisions. For example, sales of fitness goods and services—as well as fitness tracking devices— are increasing as baby boomers, Millennials, and Genera- tion X consumers strive to get and stay in shape.84

Are Customers Satisfied with Existing Offerings? Marketers often do considerable research to learn whether consumers are currently satisfied with the company’s offerings and marketing. For example, Harley-Davidson executives regularly ride with members of the Harley Owners Group to see firsthand what satisfies motorcy- cle buyers and what else they are looking for. They invite customers to submit their own videos online illustrating individual Harley-Davidson experiences, and ask social media users to comment on proposed ad campaigns. This research helps the company come up with new prod- uct ideas and new ways to promote bikes to current and potential customers.85

1-4b SELECTING THE TARGET MARKET Understanding consumer behavior helps marketers deter- mine which consumer groups are appropriate targets for marketing tactics and how heavy users of a product differ from light users.86 Marketers also need to identify who is likely to be involved in acquisition, usage, and disposition

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR18

Should Our Offerings Be Repositioned? Consumer research can help marketers reposition exist- ing products (i.e., change their image). Consider how the Versus sports cable channel was repositioned. Originally introduced as Outdoor Life Network in 1995, the U.S. cable channel was repositioned as Versus in 2006 to reflect its broader sports coverage. Even with an audience of 70 million households, Versus fell short of rival ESPN’s audi- ence of 100 million households. Knowing that consumers are far more familiar with the NBC brand and coverage, thanks to the network’s broadcasting of the Olympics and other high-profile events, Versus was repositioned as NBC Sports Network, broadcasting round-the-clock sporting events and related content.100

1-4e MAKING PROMOTION AND MARKETING COMMUNICATIONS DECISIONS

Research can help companies make decisions about pro- motional/marketing communications tools, including advertising, sales promotions (premiums, contests, sweep- stakes, free samples, coupons, and rebates), personal sell- ing, and public relations. One area receiving attention is the use of techniques to measure consumers’ physiological and neurological responses to marketing communications and other stimuli.101 The rise of social media adds another twist to promotion and communications decisions.102 Word of mouth—which spreads quickly through social media—that is not marketer-controlled, seems more cred- ible to consumers than messages directly controlled by marketers.103

What Are Our Communication Objectives? Consumer research can be very useful in determining advertising objectives. It may reveal, for example, that few people have heard of a new brand, suggesting that the advertising objective should be to enhance brand-name awareness. If research indicates that consumers have heard of the brand but don’t know anything about it, the advertising objective should be to enhance brand knowl- edge. If consumers know the brand name but don’t know the characteristics of the brand that make it desirable, the advertising should aim to enhance brand knowledge and encourage positive attitudes about it. And if consumers know neither the brand name nor the product’s benefits, the advertising should educate the target market about both.

What Should Our Marketing Communications Look Like? Research can help marketers determine what words and visuals—and what balance of text and images—would be most effective for ad and brand recognition and recall.104 A brand name is better remembered when placed in an ad that has interesting, unusual, and relevant visuals. If the visuals are interesting but unrelated to the product,

What Should the Package and Logo Look Like? Many marketers use consumer research when making decisions about packaging and logos. For example, if you were to buy a bag of pretzels, you might infer that a bag with 15 pretzels on the package would contain more pretzels than one that shows only 3 pretzels on the pack- age.93 ConAgra Foods, which makes products such as Orville Redenbacher popcorn, takes online shopping habits into consideration when designing product pack- ages. By developing smaller packages that cost less to ship, ConAgra increases the opportunities for selling to cost-conscious online shoppers.94

1-4d POSITIONING Another strategic choice is deciding how an offering should be positioned in consumers’ minds. The desired image should reflect what the product is and how it dif-image should reflect what the product is and how it dif-image should reflect what the product is and how it dif fers from the competition. For example, the Window of the World theme park in Shenzhen, China, is positioned as a fun place for Chinese consumers who want to see the world’s most famous sights without leaving the country. The park features 130 replicas of well-known landmarks such as the pyramids, the White House, and the Eiffel Tower. This positioning is in contrast to Disneyland Hong Kong and Shanghai Disneyland, which offer rides and other traditional amusement park attractions.95

How Are Competitive Offerings Positioned? Marketers sometimes conduct research to see how con- sumers view other brands in comparison with their own and then plot the results on a graph called a perceptual map. Brands in the same quadrant of the map are per- ceived as offering similar benefits to consumers. The closer companies are to one another on the map, the more similar they are perceived to be, and hence, the more likely they are to be competitors. Marketers can use perceptual maps to determine how their offerings can be positioned as distinct and different from competing offerings, based on appeals that are sustainable over time.96

How Should Our Offerings Be Positioned? Companies use consumer research to understand what image a new offering should have in the eyes of con- sumers and what messages will effectively support this image.97 The positioning should suggest that the product is superior in one or more attributes valued by the tar- get market.98 For example, Procter & Gamble’s research found that many consumers were dissatisfied with tra- ditional dry-cleaning establishments, in part because of inconsistent quality and also due to environmental con- cerns about cleaning chemicals. Seeing this as an oppor- tunity, P&G positioned its Tide Dry Cleaners chain as clean, green, and friendly—using earth-friendly cleaning products, the power of the Tide brand, and attentive cus- tomer service.99

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 19

tracking studies to see whether ads have achieved partic- ular objectives over time.

What About Sales Promotion Objectives and Tactics? When developing sales promotions, marketers can use research to identify sales promotion objectives and tactics. For example, when Snack Factory wanted to attract new customers to its Pretzel Crisps snacks and increase sales, the firm posted a $1 coupon on Facebook for two weeks. This promotion added 7,000 new Facebook fans and, more importantly, the rate of redemption of the coupons was 87 percent. Without fanfare, Snack Factory switched to a buy one, get one free coupon on Facebook. The new offer went viral, gaining Pretzel Crisps 15,000 fans in two weeks—plus an impressive 95 percent coupon redemption rate. Now the brand has more than 325,000 “likes” and regularly conducts sales promotions on Facebook, Twit- ter, Pinterest, and other social media sites.111 Research can also prevent such pitfalls as offering coupons to certain consumers who won’t redeem them for fear of looking stingy.112

Have Our Sales Promotions Been Effective? Consumer research can answer this question. Marketers might compare sales before, during, and after a promotion to determine changes in sales. Research can also indicate whether a free sample has been more effective than a price promotion, whether a free gift enhances value perceptions and purchase intentions, and how consumers react after a sales promotion has been discontinued.113

How Can Salespeople Best Serve Customers? Finally, research can help managers make decisions about salespeople. By tracking store patronage at different times of the day or on different days of the week, retailers can determine the appropriate number of store personnel needed to best serve customers at those times. Research also offers insights into selecting salespeople and evaluat- ing how well they serve customers. For example, similarity between the consumer and a salesperson or service pro- vider can influence whether customers comply with these marketing representatives.114

1-4f MAKING PRICING DECISIONS The price of a product or service can have a critical influ- ence on consumers’ acquisition, usage, and disposition decisions. It is therefore very important for marketers to understand how consumers react to price and to use this information in pricing decisions, a topic also covered in later chapters.

What Price Should Be Charged? Why do prices often end in 99? Consumer research has shown that people perceive $9.99 or $99.99 to be cheaper than $10.00 or $100.00. Perhaps this is one reason why so

consumers may remember the visuals but forget the prod- uct’s name.

Online advertising is also being researched. One find- ing, for instance, is that customizing e-mail messages for targeted customers is an effective way to boost visits to the brand’s website.105 Another study showed that both emotion and physiological arousal are factors in whether an online ad goes viral. Specifically, an ad is more likely to be spread virally when the content evokes a positive emotional response (such as awe) or a negative emo- tional response (such as anger).106 As an example, Kleen- ex’s “Unlikely Best Friends” commercial, which featured a man and a dog—both in wheelchairs—attracted tens of millions of online views due to positive emotional response.107

Where Should Advertising Be Placed? When marketers select specific media vehicles in which to advertise, they find demographic, lifestyle, and media usage data very useful. Research shows that more peo- ple split their time among many different media and that many people use recording technology to avoid commer- cials. Knowing this, marketers are choosing media with better targeting or more consumer exposure in mind. For example, Ford has used video ads on Facebook’s log-out page to promote its sporty Mustang car, taking advan- tage of the ability to target by location, gender, and age.108 A growing number of firms are using sponsorship of cause-related events (such as the Avon Walk for Breast Cancer) that attract the interest of consumers in the tar- geted segments.109

When Should We Advertise? Research may reveal seasonal variations in purchases due to weather-related needs, variations in the amount of discretionary money consumers have (which changes, for instance, before and after Christmas), holiday buying patterns, and the like. In the weeks leading up to Easter, for instance, the chocolate company Cadbury airs TV commercials, places print ads, sponsors special events, and posts Facebook promotions for its chocolate eggs. In Australia, it has targeted 18- to 30-year-old chocolate lov- ers with extensive Facebook advertising for new chocolate egg products just before Easter, when this segment is most likely to buy.110

Has Our Advertising Been Effective? Finally, advertisers can research an ad’s effectiveness at various points in the advertising development process. Sometimes marketers or ad agencies conduct advertis- ing copy testing or pretesting, testing an ad’s effectiveness pretesting, testing an ad’s effectiveness pretesting before it appears in public. If the objective is creating brand awareness and the tested ad does not enhance awareness, the company may replace it with a new ad. Effectiveness research can also take place after the ads have been placed in the media, such as conducting

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR20

Super Bowl every year. Knowing this trend, online and store retailers mount price promotions in the weeks lead- ing up to the Super Bowl, aiming to get their share of these TV purchases.123

1-4g MAKING DISTRIBUTION DECISIONS Another important marketing decision involves how products are distributed and sold to consumers in retail stores. Here, too, marketers can use consumer research.

Where and When Are Target Consumers Likely to Shop? Marketers who understand the value consumers place on time and convenience have developed distribution channels that allow consumers to acquire or use offerings whenever and wherever it is most convenient for them. For example, 24-hour grocery stores, health clubs, cata- log ordering, and online ordering systems give consum- ers flexibility in the timing of their acquisition, usage, and disposition decisions. Some retailers, including Walmart and Peapod, are testing virtual “stores,” actually large post- ers in transit stations or other busy locations. The post- ers depict grocery shelves stocked with specific products, each featuring a QR (quick response) code. Consumers use their smartphones to scan the QR codes of items they want to buy, complete the transaction, and schedule deliv- ery for when they know they will be home.124

What Do Customers Want to See in Stores? Retailers want to carry the assortment of merchan- dise best suited to consumers who shop in their stores. Target, for instance, is experimenting with a new store concept that will help it determine which "smart home" devices, which remotely control lighting and tempera- ture, among other elements of the home environment, are of interest to consumers.125 Assortment size itself can influence consumer behavior, as you’ll see in later chapters.

How Should Stores Be Designed? Supermarkets are generally designed with similar or complementary items stocked near one another because research shows that consumers think about items in terms of categories based on products’ similar characteristics or use. Thus, stores stock peanut butter near jelly because the products are often used together. Consumer research can also help marketers develop other aspects of their retail environments. Music, colors, aromas, the ability to touch product, displays, and store organization can affect con- sumers’ in store behaviors and choices.126

Store design also depends on whether consumers are shopping for fun or seeking to quickly accomplish a par- ticular task like buying a certain item.127 During the back- to-school shopping season, for instance, Target stores display dorm-room products together for consumer con- venience.128 Knowing that some consumers simply like to

many prices end in the number 9.115 Too low a price can make consumers suspect the product’s quality.116 In gen- eral, consumers respond better to a discount presented as a percentage off the regular price (e.g., 25 percent sub- tracted from the price) than to a discount presented as a specific amount of money subtracted from the regular price (originally $25, now only $15).117

Also, when making a purchase, consumers consider how much they must pay in relation to the price of other relevant brands or to the price they previously paid for that product, so marketers must be aware of these refer- ence prices.118 When buying multiple units of a service for one bundled price (such as a multiday ski pass), consum- ers may not feel a great loss if they use only some of the units because they have difficulty assigning value to each unit. In addition, when consumers buy multiple products for one bundled price (such as a case of wine), they are likely to increase their consumption because unit costs seem low.119 How much consumers will pay can even be affected by the price of unrelated products they happen to see first. Thus, the price you would be willing to pay for a T-shirt may vary, depending on whether the prices you noticed for shoes in the store next door were high or low.120

Also, studies indicate that consumers have differing perceptions of what a product is worth, depending on whether they are buying or selling it. Generally people tend to overestimate how much others will pay for goods, particularly when they are selling a product they own.121 Sellers should therefore avoid this endowment effect; that is, they should not set a higher price than buyers are will- ing to pay.122

How Sensitive Are Consumers to Price and Price Changes? Research also suggests that consumers have different views of the importance of price. Some consumers are very price sensitive, meaning that a small change in price will have a large effect on consumers’ willingness to pur- chase the product. Other consumers are price insensitive and thus likely to buy an offering regardless of its price. Marketers can use research to determine which consum- ers are likely to be price sensitive and when. For fashion or prestige goods, a high price symbolizes status. Thus, sta- tus-seeking consumers may be less sensitive to a product’s price and pay more than $50 for a T-shirt with a presti- gious label.

When Should Certain Price Tactics Be Used? Research also reveals when consumers are likely to be most responsive to various pricing tactics. For example, consumers have traditionally been very responsive to price cuts on bed linens during January. These “white sales” are effective because consumers have come to anticipate them at that time of the year. Similarly, approximately five mil- lion U.S. consumers buy new TVs specifically to watch the

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 21

only use smartphones when buying from the Amazon retail website, for example; similarly, 44 percent of shop- pers only use smartphones when buying from the eBay site.131 Stores and retail websites must not only function well, they can convey a particular image and shopping atmosphere. To illustrate, the apparel retailer Abercrom- bie & Fitch added an online playlist so customers who shop via the Internet can click to hear the same songs that play in its stores.132

shop, retailers are increasingly creating more exciting and aesthetically pleasing store environments.129 For example, in Shanghai, the distinctive glass exterior, spiral staircase, and gleaming white logo of the Apple store has made such an impression on shoppers that some competitors have opened look-alike stores elsewhere in China.130

Given the significant increase in shopping via com- puter and mobile devices, retailers must design websites for friendly functionality on devices used by targeted con- sumer groups. Research shows that 38 percent of shoppers

Exhibit 1.10 xhibit 1.10 ▸ Targeting Where Consumers Targeting Where Consumers T Shop Marketers need to understand how and when consumers best shop. For instance, busy consum- ers can grocery shop using their smartphones on these boards in subway or bus stations, which is very convenient for them.

A P

Im ag

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and tactics. Ethicists and advocacy groups are keenly interested in consumer behavior, as are public policy makers and regulators who want to protect consum- ers from unsafe or inappropriate offerings. Consumers and society can both benefit as marketers learn to make products more user-friendly and to show concern for the environment. Finally, studying consumer behavior helps marketers understand how to segment markets and how to decide which to target, how to position an offering, and which marketing-mix tactics will be most effective.

Questions for Review and Discussion

1. How is consumer behavior defined?

2. What is an offering?

3. What are some of the factors in the psychological core that affect consumer decisions and behavior?

4. What aspects of the consumer’s culture influence deci- sions and behavior?

5. How is marketing defined?

6. How can public policy decision makers, advocacy groups, and marketing managers use consumer research?

7. What kinds of marketing questions can companies use consumer behavior research to answer?

8. How can you benefit from studying consumer behavior?

Consumer behavior involves understanding the set of deci- sions (what, whether, why, when, how, where, how much, and how often) that an individual or group of consumers makes over time about the acquisition, use, or disposition of goods, services, ideas, or other offerings. The psycho- logical core exerts considerable influence on consumer behavior. A consumer’s motivation, ability, and opportu- nity affect his or her decisions and influence what a person is exposed to, what he or she pays attention to, and what he or she perceives and comprehends. These factors also affect how consumers categorize and interpret informa- tion, how they form and retrieve memories, and how they form and change attitudes. Each aspect of the psycholog- ical core has a bearing on the consumer decision-making process, which involves (1) problem recognition, (2) infor- mation search, (3) judgments and decision-making, and (4) evaluating satisfaction with the decision.

Consumer behavior is affected by the consumer’s cul- ture and by the typical or expected behaviors, norms, and ideas of a particular group. Consumers belong to a num- ber of groups, share their cultural values and beliefs, and use their symbols to communicate group membership. Household and social class influences are involved in con- sumer behavior, as are each individual’s values, person- ality, and lifestyles. Consumer behavior can be symbolic and express an individual’s identity. It is also indicative of how quickly an offering spreads throughout a market. Further, ethics and social responsibility play a role in con- sumer behavior.

Marketers study consumer behavior to gain insights that will lead to more effective marketing strategies

Summary:

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR22

Endnotes 1 Jacob Jacoby, “Consumer Psychology: An Octennium,” in ed.

Paul Mussen and Mark Rosenzweig, Annual Review of Psychol- ogy (Palo Alto, Calif.: Annual Reviews, 1976), pp. 331–358.

2 Karen Page Winterich and Gergana Y. Nenkov, “Save Like the Joneses: How Service Firms Can Utilize Deliberation and Informational Influence to Enhance Consumer Well- Being,” Journal of Service Research 18, no. 3, 2015, pp. 384–404; and Jennifer Savary, Kelly Goldsmith, and Ravi Dhar, “When Tempting Alternatives Increase Willingness to Donate,” Jour- nal of Marketing Research 52, no. 1, 2015, pp. 27–38.

3 Subimal Chatterjee and Wilson Lin Chien-Wei, “When Los- ing Hurts Less: How Spending Time versus Money Affects Outcome Happiness,” Advances in Consumer Research 40, 2012, pp. 675–677; and Jennifer Aaker, Melanie Rudd, and

Cassie Mogilner, “If Money Doesn’t Make You Happy, Con- sider Time,” Journal of Consumer Psychology 21, April 2011, Journal of Consumer Psychology 21, April 2011, Journal of Consumer Psychology pp. 126–130.

4 See, for example, Wendy Parkins and Geoffrey Craig, “Slow Living and the Temporalities of Sustainable Consumption,” in eds. Tanai Lewis and Emily Potter, Ethical Consumption: A Critical Introduction (New York: Routledge, 2011), pp. 189–201; S. P. Mantel and J. J. Kellaris, “Cognitive Determinants of Con- sumers’ Time Perceptions: The Impact of Resources Required and Available,” Journal of Consumer Research, March 2003, pp. 531–538; and J. Cotte, S. Ratneshwar, and D. G. Mick, “The Times of Their Lives: Phenomenological and Metaphorical Characteristics of Consumer Lifestyles,” Journal of Consumer Research, September 2004, pp. 333–345.

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 23

Journal of Consumer Research 38, no. 4, December 2011, pp. 743–762.

21 Emily N. Garbinsky, Anne-Kathrin Klesse, and Jennifer Aaker, “Money in the Bank: Feeling Powerful Increases Saving,” Jour- nal of Consumer Research 41, no. 3, October 2014, pp. 610–623.

22 Wayne D. Hoyer, Rajesh Chandy, Matilda Dorotic, Manfred Krafft, and Siddharth S. Singh, “Consumer Cocreation in New Product Development,” Journal of Service Research 13, no. 3, 2010, pp. 283–296; and Andrea Hemetsberger, “When David Becomes Goliath: Ideological Discourse in New Online Con- sumer Movements,” Advances in Consumer Research 33, 2006, pp. 494–500.

23 Bradley Reeves, “Co-Creation Nation,” Media Post, March 21, 2012, www.mediapost.com.

24 Joydeep Srivastava and Priya Raghubir, “Debiasing Using Decomposition: The Case of Memory-Based Credit Card Expense Estimates,” Journal of Consumer Psychology 12, no. 3, Journal of Consumer Psychology 12, no. 3, Journal of Consumer Psychology 2002, pp. 253–264.

25 Russell W. Belk, “Ownership and Collecting,” in eds. Randy O. Frost and Gail Steketee, The Oxford Handbook of Hoarding and Acquiring (New York: Oxford University Press, 2013), pp. 33–42.

26 Anand Florack, Janet Kleber, Romy Busch, and David Stohr, “Detaching the Ties of Ownership: The Effects of Hand Wash- ing on the Exchange of Endowed Products,” Journal of Con- sumer Psychology 24, no. 2, 2014, pp. 284–289.sumer Psychology 24, no. 2, 2014, pp. 284–289.sumer Psychology

27 Hyeongmin Kim, “Situational Materialism: How Entering Lotteries May Undermine Self-Control,” Journal of Consumer Research 40, no. 4, 2013, pp. 759–772.

28 Gallup Poll, June 2015, www.gallup.com/poll. 29 Larry Edsall, “Vehicle Wraps Cover Larger Share of Market,”

Detroit News, December 25, 2014, www.detroitnews.com. 30 Kristine R. Ehrich and Julie R. Irwin, “Willful Ignorance in

the Request for Product Attribute Information,” Journal of Marketing Research, August 2005, pp. 266–277; and Markus Giesler, “Consumer Gift Systems,” Journal of Consumer Research 33, no. 2, 2006, pp. 283–290.

31 Shibo Li, Kannan Srinivasan, and Baohong Sung, “Internet Auction Features as Quality Signals,” Journal of Marketing, June 2009, pp. 75–92; Michael Basnjak, Dirk Obermeier, and Tracy L. Tuten, “Predicting and Explaining the Propensity to Bid in Online Auctions: A Comparison of Two Action-Theoret- ical Methods,” Journal of Consumer Behaviour 5, no. 2, 2006, pp. 102–116; and Charles M. Brooks, Patrick J. Kaufmann, and Donald R. Lichtenstein, “Travel Configuration on Consumer Trip-Chained Store Choice,” Journal of Consumer Research 31, no. 2, 2004, pp. 241–248.

32 Nandita Bose, “Exclusive: In ‘Year of Apple Pay,’ Many Top Retailers Remain Skeptical,” Reuters, June 5, 2015, www .reuters.com; Bryan Yurcan, “Will Mobile Electronic Wallets Replace Leather Wallets?” Information Week, March 20, 2012, www.informationweek.com; and Matthew J. Bernthal, David Crockett, and Randall L. Rose, “Credit Cards as Lifestyle Facilitators,” Journal of Consumer Research 32, no. 1, 2005, pp. 130–145.

33 Mark Penn, “The Teenage Dream of Owning a Car Is Dying,” Fortune, July 22, 2015, http://fortune.com; Bardhi Fleura and Giana M. Eckhardt, “Access-Based Consumption: The Case of Car Sharing,” Journal of Consumer Research 39, no. 4, 2012, pp. 881–898.

34 Jennifer J. Argo and Kelley J. Main, “Meta-Analysis of the Effectiveness of Warning Labels,” Journal of Public Policy & Marketing 23, no. 2, 2004, pp. 193–208.

5 Erica Mina Okada and Stephen J. Hoch, “Spending Time Ver- sus Spending Money,” Journal of Consumer Research 31, no. 2, 2004, pp. 313–323.

6 Leif D. Nelson and Tom Meyvis, “Interrupted Consumption: Disrupting Adaptation to Hedonic Experiences,” Journal of Marketing Research, December 2008, pp. 654–664.

7 Suzanne B. Shu and Ayelet Gneezy, “Procrastination of Enjoy- able Experiences,” Journal of Marketing Research, October 2010, pp. 933–944; and Rik Pieters and Marcel Zeelenberg, “A Theory of Regret Regulation 1.0,” Journal of Consumer Psychol- ogy 17, no. 1, 2007, pp. 3–18.

8 Ying-Ching Lin and Chiu-Chi Angela Chang, “Double Stan- dard: The Role of Environmental Consciousness in Green Product Usage,” Journal of Marketing 76, no. 5, 2012, pp. 125– 134; and Rosellina Ferraro, Amna Kirmani, and Ted Matherly, “Look at Me! Look at Me! Conspicuous Brand Usage, Self- Brand Connection, and Dilution,” Journal of Marketing Research 50, No. 4, August 2013, pp. 477–488.

9 Robyn A. LeBoeuf, “Discount Rates for Time Versus Dates: The Sensitivity of Discounting to Time-Interval Description,” Journal of Marketing Research, February 2006, pp. 59–72.

10 Baba Shiv, Ziv Carmon, and Dan Ariely, “Placebo Effects of Marketing Actions: Consumers May Get What They Pay For,” Journal of Marketing Research, November 2005, pp. 383–393.

11 Amar Cheema and Dilip Soman, “The Effect of Partitions on Controlling Consumption,” Journal of Marketing Research, December 2008, pp. 665–675.

12 Jonah Berger, Contagious: Why Things Catch On (New York: Simon & Schuster, 2013).

13 Jacob Jacoby, Carol K. Berning, and Thomas F. Dietworst, “What About Disposition?” Journal of Marketing, April 1977, pp. 22–28.

14 Joohyung Park and Sejin Ha, “Understanding Consumer Recycling Behavior: Combining the Theory of Planned Behav- ior and the Norm Activation Model,” Family and Consumer Sciences Research Journal, Special Issue: The Significance of Community to Individual and Family Well-being 42, no. 3, 2014, pp. 278–291.

15 Easwar S. Iyer and Rajiv K. Kashyap, “Consumer Recycling: Role of Incentives, Information, and Social Class,” Journal of Consumer Behaviour 6, no. 1, 2007, pp. 32–47.

16 Tom Szaky, “How Can Identifying Materials Reduce Packag- ing Waste?” Packaging Digest, July 15, 2015, www.packaging- digest.com; Tom Szaky, “The Micro-Multinational,” New York Times, March 21, 2012, www.nytimes.com; and Penelope Green, “Making Design out of Rubbish,” New York Times, August 10, 2011, www.nytimes.com.

17 Abigail B. Sussman and Adam L. Alter, “The Exception Is the Rule: Underestimating and Overspending on Exceptional Expenses,” Journal of Consumer Research 39, no. 4, December 2012, pp. 800–814.

18 Yu Ma, Kusum L. Ailawadi, Dinesh K. Gauri, and Dhruv Grewal, “An Empirical Investigation of the Impact of Gasoline Prices on Grocery Shopping Behavior,” Journal of Marketing 75, no. 2, March 2011, pp. 18–35.

19 Daniel Navarro-Martinez, Linda Court Salisbury, Katherine N. Lemon, Neil Stewart, William J. Matthews, and Adam J. L. Harris, “Minimum Required Payment and Supplemental Information Disclosure Effects on Consumer Debt Repay- ment Decisions,” Journal of Marketing Research 48, supple- ment 1, October 2011, pp. S60–S77.

20 David Gal and Blakeley B. McShane, “Can Small Victories Help Win the War? Evidence from Consumer Debt Management,”

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR24

53 Kathleen D. Vohs, Roy F. Baumeister, and Dianne M. Tice, “Self-Regulation: Goals, Consumption and Choices, in, eds. Cur- tis P. Haugtvedt, Paul M. Herr, and Frank R. Kardes, Handbook of Consumer Psychology (New York: Psychology Press), pp. 349–367.Consumer Psychology (New York: Psychology Press), pp. 349–367.Consumer Psychology

54 Allison R. Johnson and David W. Stewart, “A Re-Appraisal of the Role of Emotion in Consumer Behavior: Traditional and Contemporary Approaches,” in ed. Naresh Malhotra, Review of Marketing Research, vol. 1, 2004, pp. 1–33.

55 Jung Wang, Juliet Zhu, and Baba Shiv, “The Lonely Consumer: Loner or Conformer,” Journal of Consumer Research 38, no. 6, 2012, pp. 1116–1128.

56 Deborah J. MacInnis and Gustavo deMello, “The Concept of Hope and Its Relevance to Product Evaluation and Choice,” Journal of Marketing, January 2005, pp. 1–14.

57 Kirsten Passyn and Mita Sujan, “Self-Accountability Emotions and Fear Appeals: Motivating Behavior,” Journal of Consumer Research 32, March 2006, pp. 583–589; and O. Shehryar and D. Hunt, “A Terror Management Perspective on the Persuasive- ness of Fear Appeals,” Journal of Consumer Psychology 15, no. 4, 2005, pp. 275–287.

58 Eric A. Greenleaf, “Reserves, Regret, and Rejoicing in Open English Auctions,” Journal of Consumer Research 31, no. 2, 2004, pp. 264–273; Marcel Zeelenberg and Rik Pieters, “A The- ory of Regret Regulation 1.0,” Journal of Consumer Psychology 17, no. 1, 2007, pp. 3–18; Ran Kivetz and Anat Keinan, “Repent- ing Hyperopia: An Analysis of Self-Control Regrets,” Journal of Consumer Research 33, no. 2, 2006, pp. 273–282; and Lisa J. Abendroth and Kristin Diehl, “Now or Never: Effects of Lim- ited Purchase Opportunities on Patterns of Regret over Time,” Journal of Consumer Research 33, no. 3, 2006, pp. 342–351.

59 Darren W. Dahl, Heather Honea, and Rajesh V. Manchanda, “The Three Rs of Interpersonal Consumer Guilt: Relationship, Reciprocity, Reparation,” Journal of Consumer Psychology 15, no. 4, 2005, pp. 307–315.

60 Darren Dahl, Rajesh V. Manchanda, and Jennifer J. Argo, “Embarrassment in Consumer Purchase: The Roles of Social Presence and Purchase Familiarity,” Journal of Consumer Research, December 2001, pp. 473–483.

61 Alice M. Isen, “Positive Affect and Decision Processes: Some Recent Theoretical Developments with Practical Implica- tions,” in eds. Curtis P. Haugtvedt, Paul M. Herr, and Frank R. Kardes, Handbook of Consumer Psychology (New York: Psy Handbook of Consumer Psychology (New York: Psy Handbook of Consumer Psychology - chology Press, 2008), pp. 273–296.

62 Aaron C. Ahuvia, “Beyond the Extended Self: Loved Objects and Consumers’ Identity Narratives,” Journal of Consumer Research 32, June 2005, pp. 171–184.

63 Joel B. Cohen and Eduardo B. Andrade, “Affective Intuition and Task-Contingent Affect Regulation,” Journal of Consumer Research 31, no. 2, 2004, pp. 358–367; and Nitika G. Barg, Brian Wansink, and J. Jeffrey Inman, “The Influence of Incidental Affect on Consumers’ Food Intake,” Journal of Marketing, January 2007, pp. 194–206.

64 Adam Duhachek, “Summing Up the State of Coping Research: Prospects and Prescriptions for Consumer Research,” in eds. Curtis P. Haugtvedt, Paul M. Herr, and Frank R. Kardes, Hand- book of Consumer Psychology (New York: Psychology Press, book of Consumer Psychology (New York: Psychology Press, book of Consumer Psychology 2008), pp. 1057–1077.

65 Sheena Leek and Suchart Chanasawatkit, “Consumer Confu- sion in the Thai Mobile Phone Market,” Journal of Consumer Behaviour 5, no. 6, 2006, pp. 518–532.

66 Teresa M. Pavia and Marlys J. Mason, “The Reflexive Rela- tionship between Consumer Behavior and Adaptive Coping,” Journal of Consumer Research 31, no. 2, 2004, pp. 441–454.

35 Keisha M. Cutright, “The Beauty of Boundaries: When and Why We Seek Structure in Consumption,” Journal of Con- sumer Research 38, no. 5, 2012, pp. 775–790.

36 Delphine Dion, Ouidade Sabri, and Valerie Guillard, “Home Sweet Messy Home: Managing Symbolic Pollution,” Journal of Consumer Research 41, no. 3, 2014, pp. 565–589.

37 Jacoby, Berning, and Dietworst, “What About Disposition?” 38 June Cotte, S. Ratneshwar, and David Glen Mick, “The Times

of Their Lives: Phenomenological and Metaphorical Char- acteristics of Consumer Timestyles,” Journal of Consumer Research 31, no. 2, 2004, pp. 333–345.

39 James F. Peltz, “Offering All-Day Breakfast Is a Made-To-Or- der Success for McDonald’s,” Minneapolis Star-Tribune, Jan- uary 2, 2016, www.startribune.com; and John D. Oravecz, “Panera Bread Will Debut Drive-Thru Window in North Hills Store,” Pittsburgh Tribune-Review, January 3, 2015, http://trib- live.com.

40 Rongrong Zhou and Dilip Soman, “Looking Back: Exploring the Psychology of Queuing and the Effect of the Number of People Behind,” Journal of Consumer Research, March 2003, pp. 517–530.

41 Stephen M. Nowlis, Naomi Mandel, and Deborah Brown McCabe, “The Effect of a Delay between Choice and Con- sumption on Consumption Enjoyment,” Journal of Consumer Research, December 2004, pp. 502–210.

42 Erica Mina Okada, “Trade-ins, Mental Accounting, and Prod- uct Replacement Decisions,” Journal of Consumer Research 27, March 2001, pp. 433–446.

43 Kurt A. Carlson and Jacqueline M. Conard, “The Last Name Effect: How Last Name Influences Acquisition Timing,” Jour- nal of Consumer Research 38, no. 2, 2011, pp. 300–307.

44 Linda L. Price, Eric J. Arnould, and Carolyn Folkman Curasi, “Older Consumers’ Disposition of Special Possessions,” Jour-Jour-Jour nal of Consumer Research, September 2000, pp. 179–201.

45 See, for example, Rebecca W. Hamilton, Rebecca K. Ratner, and Debora V. Thompson, “Outpacing Others: When Con- sumers Value Products Based on Relative Usage Frequency,” Journal of Consumer Research 37, no. 6, 2011, pp. 1079–1094.

46 Lisa E. Bolton and Joseph Q. Alba, “When Less is More: Con- sumer Aversion to Unused Utility,” Journal of Consumer Psy- chology 22, no. 3, July 2012, pp. 369–383.chology 22, no. 3, July 2012, pp. 369–383.chology

47 Jeff Galak, Justin Kruger, and George Loewenstein, “Slow Down! Insensitivity to Rate of Consumption Leads to Avoid- able Satiation,” Journal of Consumer Research 39, no. 5, May 2012, pp. 993–1009.

48 Oliver Nieburg, “The New World of Chocolate,” Confection- ery News, October 9, 2014, www.confectionerynews.com; and “Nestle: Recession Stunts Russian Confectionery Market Growth,” Confectionery News, August 16, 2011, www.confec- tionerynews.com.

49 Wagner A. Kamakura and Rex Yuxing Du, “How Economic Contractions and Expansions Affect Expenditure Patterns,” Journal of Consumer Research 39, no. 2, 2012, pp. 229–247.

50 Abigal B. Sussman and Adam L. Alter, “The Exception is the Rule: Underestimating and Overspending on Exceptional Expenses,” Journal of Consumer Research 39, no. 4, 2012, pp. 800–814.

51 Pierre Chandon and Brian Wansink, “When Are Stockpiled Products Consumed Faster?” Journal of Marketing Research, August 2002, pp. 321–335.

52 Joseph C. Nunes, “A Cognitive Model of People’s Usage Esti- mations,” Journal of Marketing Research 38, November 2000, pp. 397–409.

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 25

83 Lawrence Ulrich, “German Luxury Car Brands Dominate and Look to Extend Their Lead,” New York Times, July 2, 2015, www .nytimes.com; and Christiaan Hetzner and Marton Dunai, “Daimler to Launch 4-Door Compact Coupe in 2013,” Reuters, March 29, 2012, www.reuters.com.

84 Marley Jay, “Fitness Trackers Are Hot, But Do They Really Improve Health?” Associated Press, June 30, 2015, www.den- verpress.com.

85 Karl Greenberg, “Harley-Davidson Twists the Throttle at Stur- gis,” Marketing Daily, July 16, 2015, www.mediapost.com; and David Booth, “The New Harley-Davidson Wants You,” Edmonton Journal (Canada), March 20, 2012, www.edmontonjournal.com.

86 Robert D. Jewell and H. Rao Unnava, “Exploring Differences in Attitudes Between Light and Heavy Brand Users,” Journal of Consumer Psychology 14, no. 1–2, 2004, pp. 75–80.

87 “Builders Expand Home Size to Capture Multigenerational Trend,” Realtor Mag, August 18, 2014, http://realtormag.real- tor.org; and John Gittelsohn, “Homebuilders Target In-Laws, Dogs as Extended Families Grow,” Businessweek, November 17, 2011, www.businessweek.com.

88 Johann Füller, Katja Hutter, and Rita Faullant, “Why Co-Cre- ation Experience Matters? Creative Experience and Its Impact on the Quantity and Quality of Creative Contributions,” R&D Management, June 2011, pp. 259–273.

89 Shambhavi Anand, “VoxPop Ties Up with Threadless Creative Community,” Economic Times (India), July 6, 2015, http://arti- cles.economictimes.indiatimes.com; and John Jantsch, “How Threadless Nailed the Crowdsource Model,” Social Media Today, April 7, 2011, www.socialmediatoday.com.

90 Vincent M. Mallozzi, “The Honor of Your Postage Is Requested,” New York Times, February 19, 2012, p. ST-17.

91 Judith Lynne Zaichkowsky, “Strategies for Distinctive Brands,” Brand Management 17, no. 8, 2010, pp. 548–560.

92 Shubham Mukherjee, “‘India a Very Complex Market to Understand’: Datsun Head,” Times of India, April 6, 2015, http://timesofindia.indiatimes.com; Jerry Hirsch, “Nissan to Bring Back Datsun Car Brand in Selected Markets,” Los Ange- les Times, March 20, 2012, www.latimes.com.

93 Adriana V. Madzharov and Lauren G. Block, “Effects of Prod- uct Unit Image on Consumption of Snack Foods,” Journal of Consumer Psychology 29, no. 4, 2010, pp. 398–409.Consumer Psychology 29, no. 4, 2010, pp. 398–409.Consumer Psychology

94 Barbara Soderlin, “How Do ConAgra and Other Food Compa- nies Reach Online Consumers?” Omaha World Herald, July 21, 2015, www.omaha.com.

95 Will Friedwald, “Celebrating 60 Years of Disneyland,” Wall Street Journal, July 14, 2015, www.wsj.com; Daniel Roberts, “By the Numbers: Tourism, Wow!” Fortune, July 4, 2011, pp. 10–11; and Huang Lan and Huan Cao, “Around the World in a Day,” China Daily, August 3, 2011, www.chinadaily.com.cn.

96 Cheng-Wen Lee and Chi-Shun Liao, “The Effects of Consumer Preferences and Perceptions of Chinese Tea Beverages on Brand Positioning Strategies,” British Food Journal 111, no. 1, 2009, pp. 80–96.

97 See Claudiu V. Dimofte and Richard F. Yalch, “Consumer Response to Polysemous Brand Slogans,” Journal of Consumer Research 33, no. 4, 2007, pp. 515–522.

98 See Alexander Chernev, “Jack of All Trades or Master of One? Product Differentiation and Compensatory Reasoning in Consumer Choice,” Journal of Consumer Research 33, no. 4, 2007, pp. 430–444.

99 “Tide Dry Cleaners Stores Now Number 30,” American Dry Cleaner, May 25, 2015, http://americandrycleaner.com; Ray A. Smith, “The New Dirt on Dry Cleaners,” Wall Street Journal,

67 Linda L. Price, Eric Arnould, and Carolyn Folkman Curasi, “Older Consumers’ Dispositions of Special Possessions,” Jour- nal of Consumer Research, September 2000, pp. 179–201.

68 Natalie Ross Adkins and Julie L. Ozanne, “The Low Literate Consumer,” Journal of Consumer Research 32, no. 1, 2005, pp. 93–105.

69 John G. Lynch and G. Zauberman, “Construing Consumer Decision Making,” Journal of Consumer Psychology 17, no. 2, 2007, pp. 107–112.

70 John A. Bargh, “Losing Consciousness: Automatic Influences on Consumer Judgment, Behavior, and Motivation,” Journal of Consumer Research, September 2002, pp. 280–285; Ap Dijks- terhuis, Pamela K. Smith, Rick B. Van Baaren, and Daniel H. J. Wigboldus, “The Unconscious Consumer: Effects of Environ- ment on Consumer Behavior,” Journal of Consumer Psychology 15, no. 3, 2005, pp. 193–202.

71 Deborah J. MacInnis, Vanessa M. Patrick, and C. Whan Park, “Not as Happy as I Thought I’d Be? Affective Misforecast- ing and Product Evaluations,” Journal of Consumer Research, March 2007, pp. 479–490; and Deborah J. MacInnis, Vanessa M. Patrick, and C. Whan Park, “Looking Through the Crystal Ball: Affective Forecasting and Misforecasting in Consumer Behavior,” Review of Marketing Research 2, 2006, pp. 43–80.

72 Donnel Briley, Robert S. Wyer, and En Li, “A Dynamic View of Cultural Influence: A Review,” Journal of Consumer Psychology 24, no. 4, 2014, pp. 557–571.

73 See, for example, Linn Viktoria Rampl, Tim Eberhardt, Rein- hard Schutte, and Peter Kenning, “Consumer Trust in Food Retailers: Conceptual Framework and Empirical Evidence,” International Journal of Retail & Distribution Management 40, no. 4, 2012, pp. 254–272.

74 Grant Gross, “Group Asks FCC to Make Websites Honor Do-Not-Track Requests,” PC World, June 15, 2015, www .pcworld.com; and Dina Wisenberg Brin, “The New Tech- nology Advertisers Use to Track Everything You Do,” CNN Money, June 29, 2015, http://time.com/money.

75 Chantal Mack, “New Tobacco Warnings Become Mandatory,” Post Media News, March 21, 2012, www.canada.com; and Melissa Healy, “Cigarette Packages in Medical Journals: New Look for a New Age,” Los Angeles Times, August 4, 2011, www .latimes.com.

76 Samantha Kareen Nair, “FDA Seeks Data on E-Cigarettes after Surge in Poisoning Cases,” Reuters, June 30, 2015, www .reuters.com.

77 Douglas Bowman, Carrie M. Heilman, and P. B. Seetharaman, “Determinants of Product-Use Compliance Behavior,” Journal of Marketing Research, August 2004, pp. 324–338.

78 Dipankar Chakravarti, “Voices Unheard: The Psychology of Consumption in Poverty and Development,” Journal of Con- sumer Psychology 16, no. 4, 2006, pp. 363–376.

79 Clifton B. Parker, “Targeted Policy Actions Could Help Dis- courage Obesity, Stanford Expert Says,” Stanford Report (Stan- ford University), October 26, 2015, http://news.stanford.edu.

80 “Child Obesity,” Harvard T.H. Chan School of Public Health, www.hsph.harvard.edu.

81 James R. Bettman, An Information Processing Theory of Con- sumer Choice (Reading, Mass.: Addison-Wesley, 1979).

82 Michael Caliah, “Coca-Cola Sales Surprise on Dasani, Minute Maid,” MarketWatch, April 15, 2014, www.marketwatch.com; and Jeremiah McWilliams, “Coca-Cola to Sell Not-from-con- centrate Minute Maid Orange Juice,” Atlanta Journal-Consti- tution, August 19, 2011, www.ajc.com/business.

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR26

Effect of Discount Retraction on Subsequent Choice,” Journal of Consumer Research 31, no. 3, 2004, pp. 652–657.

114 Stephanie Dellande, Mary C. Gilly, and John L. Graham, “Gaining Compliance and Losing Weight: The Role of the Ser- vice Provider in Health Care Services,” Journal of Marketing 68, July 2004, pp. 78–91; and Sean Dwyer, Orlando Richard, and C. David Shepherd, “An Exploratory Study of Gender and Age Matching in the Salesperson–Prospective Customer Dyad,” Journal of Personal Selling and Sales Management, Fall 1998, pp. 55–69.

115 Thomas Manoj and Vicki Morwitz, “Penny Wise and Pound Foolish: The Left-Digit Effect in Price Cognition,” Journal of Con- sumer Research 32, no. 1, 2005, pp. 54–64; and Robert M. Schin- dler and Patrick N. Kirby, “Patterns of Rightmost Digits Used in Advertising Prices: Implications for Nine-Ending Effects,” Journal of Consumer Research, September 1997, pp. 192–201.

116 Jacob Jacoby, Jerry Olson, and Rafael Haddock, “Price, Brand Name, and Product Composition Characteristics as Deter- minants of Perceived Quality,” Journal of Applied Psychology, December 1971, pp. 470–479; and Kent B. Monroe, “The Influ- ence of Price Differences and Brand Familiarity on Brand Pref-ence of Price Differences and Brand Familiarity on Brand Pref-ence of Price Differences and Brand Familiarity on Brand Pref erences,” Journal of Consumer Research, June 1976, pp. 42–49.

117 Devon DelVecchio, H. Shanker Krishnan, and Daniel C. Smith, “Cents or Percent? The Effects of Promotion Framing on Price Expectations and Choice,” Journal of Marketing, July 2007, pp. 158–170. For more on pricing effects associated with regular and discount prices, see Keith S. Coulter and Robin A. Coulter, “Distortion of Price Discount Perceptions: The Right Digit Effect,” Journal of Consumer Research, August 2007, pp. 162–173.

118 Daniel J. Howard and Roger A. Kerin, “Broadening the Scope of Reference Price Advertising Research: A Field Study of Consumer Shopping Involvement,” Journal of Marketing, October 2006, pp. 185–204; Tridib Mazumdar, S. P. Raj, and Indrajit Sinha, “Reference Price Research: Review and Prop- ositions,” Journal of Marketing, October 2005, pp. 84–102; Ziv Carmon and Dan Ariely, “Focusing on the Forgone: How Value Can Appear So Different to Buyers and Sellers,” Journal of Consumer Research 27, December 2000, pp. 360–370; and Tridib Mazumdar and Purushottam Papatla, “An Investigation of Reference Price Segments,” Journal of Marketing Research 37, May 2000, pp. 246–258.

119 Dilip Soman and John T. Gourville, “Transaction Decoupling: How Price Bundling Affects the Decision to Consume,” Jour- nal of Marketing Research 38, February 2001, pp. 30–44.

120 Joseph C. Nunes and Peter Boatwright, “Incidental Prices and Their Effect on Willingness to Pay,” Journal of Consumer Research, November 2004, pp. 457–466.

121 Shane Frederick, “Overestimating Others’ Willingness to Pay,” Journal of Consumer Research 39, no. 1, 2012, pp. 1–21.

122 Dhananjay Nayakankuppam and Himanshu Mishra, “The Endowment Effect: Rose-Tinted and Dark-Tinted Glasses,” Journal of Consumer Research 32, no. 3, 2005, pp. 390–395.

123 Mike Snider, “Ultra HD TVs, and Egos, Could Revive Super Bowl TV Sales,” USA Today, January 30, 2015, www.usatoday. com; and Andrea Chang, “TV Prices Plunge Ahead of Super Bowl,” Los Angeles Times, February 3, 2012, www.latimes.com.

124 Chantal Tode, “QR Code-Enabled Virtual Stores Support Mer- chants’ Mobile Shopping Strategies,” Mobile Commerce Daily, June 11, 2013, www.mobilecommercedaily.com.

125 Stacey Higginbotham, “Target Opens Up a New Store in San Francisco to Try Out Smart Devices,” Fortune, July 9, 2015, www.fortune.com.

July 28, 2011, www.wsj.com; and Andrew Martin, “Smelling an Opportunity,” New York Times, December 8, 2010, www .nytimes.com.

100 Sofia M. Fernandez, “NBC Sports Network Official Launch Replaces Versus on Monday,” Hollywood Reporter, January 2, 2012, www.hollywoodreporter.com; and Michael McCarthy, “Versus Set to Become the NBC Sports Network,” USA Today, August 1, 2011, www.usatoday.com.

101 See, for instance, Thales Teixeira, Michel Wedel, and Rik Pieters, “Emotion-Induced Engagement in Internet Video Advertise- ments,” Journal of Marketing Research 49, no. 2, 2012, pp. 144– 159; Adam W. Craig, Yuliya Komarova Loureiro, Stacy Wood, and Jennifer M. C. Vendemia, “Suspicious Minds: Exploring Neural Processes During Exposure to Deceptive Advertising,” Journal of Marketing Research 49, no. 3, 2012, pp. 361–372; and Maarten A. S. Boksem and Ale Smidts, “Brain Responses to Movie Trail- ers Predict Individual Preferences for Movies and Their Popula- tion-Wide Commercial Success,” Journal of Marketing Research 52, no. 4, August 2015, pp. 482–492.

102 Hyoungkoo Khang, Eyun-Jung Ki, and Lan Ye, “Social Media Research in Advertising, Communication, Marketing, and Public Relations, 1997–2010,” Journalism & Mass Communica- tion Quarterly, published online March 14, 2012, http://jmq .sagepub.com.

103 W. Glynn Mangold and David J. Faulds, “Social Media: The New Hybrid Element of the Promotion Mix,” Business Hori- zons 52, 2009, pp. 357–365.

104 Anocha Aribarg, Rik Pieters, and Michel Wedel, “Raising the Bar: Bias-Adjustment of Advertising Recognition Tests,” Jour- nal of Marketing Research, June 2010, pp. 387–400.

105 Asim Ansari and Carl Mela, “E-Customization,” Journal of Marketing Research, May 2003, pp. 131–145.

106 Jonah Berger and Katherine L. Milkman, “What Makes Online Content Viral?” Journal of Marketing Research 49, no. 2, April 2012, pp. 192–205.

107 Declan Harty, “Perfect Pair: Dog and Owner Put Kleenex on Top Viral Video Chart,” Advertising Age, June 30, 2015, www .adage.com.

108 Cotton Delo, “Facebook Sets High Asking Price for Log-Out Ads,” Advertising Age, March 23, 2012, www.adage.com; and “Facebook Eyes Big Ad Opportunity from Log-Out Ads,” Forbes, March 28, 2012, www.forbes.com.

109 Carolyn J. Simmons and Karen L. Becker-Olsen, “Achieving Marketing Objectives Through Social Sponsorships,” Journal of Marketing, October 2006, pp. 154–169.

110 Clare Kermond, “Cadbury Hatches Plan for Three Easter Products,” Canberra Times (Australia), March 30, 2012, www .canberratimes.com.au.

111 “Case Study: Snack Brand Doubles Facebook ‘Likes’ Through Social Coupon,” August 16, 2011, www.emarketer.com.

112 Laurence Ashworth, Peter R. Darke, and Mark Schaller, “No One Wants to Look Cheap: Trade-offs between Social Disin- centives and the Economic and Psychological Incentives to Redeem Coupons,” Journal of Consumer Psychology 15, no. 4, 2005, pp. 295–306.

113 Sucharita Chandran and Vicki G. Morwitz, “The Price of ‘Free’dom: Consumer Sensitivity to Promotions with Negative Contextual Influences,” Journal of Consumer Research 33, no. 3, 2006, pp. 384–392; Priya Raghubir, “Free Gift with Purchase: Promoting or Discounting the Brand?” Journal of Consumer Psychology 14, no. 1–2, 2004, pp. 181–186; and Luc Wathieu, A. V. Muthukrishnan, and Bart J. Bronnenberg, “The Asymmetric

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 27

Shopping Experiences,” Journal of Consumer Behaviour 4, no. 4, 2005, pp. 246–256; and Robert V. Kozinets, John F. Sherry, Diana Storm, Adam Duhachek, Krittinee Nuttavuthisit, and Benét DeBerry-Spence, “Ludic Agency and Retail Spectacle,” Journal of Consumer Research 31, no. 3, 2004, pp. 658–672.

130 “U.S. Patent for Apple Store in Shanghai,” Shanghai Daily, March 23, 2012, www.china.org.cn.

131 Bill Siwicki, “Nearly Half of Digital Shoppers at the Top 10 Retailers Are Mobile-Only,” Internet Retailer, March 9, 2015, www.internetretailer.com.

132 Kevin Woodward, “February Survey: Web Site Design And Usability,” Internet Retailer, February 1, 2012, www.interne- tretailer.com; and Zak Stambor, “A Consistent Feel,” Internet Retailer, November 30, 2011, www.internetretailer.com.

126 Sevgin A. Eroglu and Karen A. Machleit, “Theory in Consum- er-Environment Research: Diagnosis and Prognosis,” in eds. Curtis P. Haugtvedt, Paul M. Herr, and Frank R. Kardes, Hand- book of Consumer Psychology (New York: Psychology Press, book of Consumer Psychology (New York: Psychology Press, book of Consumer Psychology 2008), pp. 823–835; James J. Kellaris, “Music and Consumers,” in eds. Curtis P. Haugtvedt, Paul M. Herr, and Frank R. Kardes, Handbook of Consumer Psychology (New York: Psychology (New York: Psychology Press, 2008), pp. 837–856.

127 Velitchka D. Kaltcheva and Barton A. Weitz, “When Should a Retailer Create an Exciting Store Environment?” Journal of Marketing, January 2006, pp. 107–118.

128 Donna Goodison, “Opening Day Is Right on Target,” Boston Herald, July 21, 2015, www.bostonherald.com.

129 Risto Moisio and Eric J. Arnould, “Framework in Marketing: Drama Structure, Drama Interaction, and Drama Content in

Developing Information About Consumer Behavior

A P P E N D I X

Consumer behavior research helps marketers determine what customers need, how they behave, what they think, and how they feel. Based on research, marketers make decisions about how to profitably satisfy consumer needs. This appendix explains some of the main tools used to collect information about consumers, describes the orga- nizations involved in research, and introduces ethical issues in research.

Consumer Behavior Research Methods Researchers collect and analyze two types of data for mar- keting purposes: primary and secondary. Data collected for its own purpose is called primary data. When mar- keters gather data using surveys, focus groups, experiments, and the like to support their own marketing decisions, they are collecting primary data. Data collected by an entity for one pur- pose and subsequently used by another entity for a different purpose is called secondary data. For example, after the government collects cen- sus data for tax purposes, marketers can use the results as secondary data to estimate the size of markets in their own industry.

A number of tools are available in the con- sumer researcher’s “tool kit” for gathering pri- mary data, some based on what consumers say and some on what they do (see Exhibit A.1). Researchers may collect data from relatively few people or compile data from huge samples of consumers. Each of these tools can provide unique insights that, when combined, reveal very different perspectives on the complex world of consumer behavior. This is research with a purpose: to guide companies in making more informed decisions and achieving market- ing results.

SURVEYS One of the most familiar research tools is the survey, a method of collecting information from a sample of

consumers, usually by asking questions, to draw quanti- tative conclusions about a target population. Some ques- tions may be open-ended, with the consumer filling in the blanks; other questions may ask consumers to use a rating scale or check marks. Surveys can be conducted in person, through the mail, over the phone, or by using the Web.

Although companies often use specialized surveys to better understand a specific customer segment, some organizations carry out broad-based surveys that are made available to marketers. The U.S. Bureau of the Cen- sus is a widely used source of demographic information. Its Census of Population and Housing, conducted every 10 years, asks U.S. consumers a series of questions regarding their age, marital status, gender, household size, educa- tion, and home ownership. This database, available online

(www.census.gov), helps marketers learn about population shifts and other demographic trends that might affect their offerings or their industry.

Survey data can also help marketers under- stand media usage and product purchasing patterns. For example, the Pew Research Cen- ter surveys consumers in different age groups about their Internet usage. One finding is that 96 percent of U.S. adults aged 18–29 are using the Internet today, compared with 70 percent of adults in that age group using the Internet in 2000. In addition, 60 percent of U.S. adults aged 65 or older are using the Internet today, com- pared with 14 percent of that age group in 2000.1 Of course, surveys must be properly designed so that respondents can answer accurately and in an unbiased fashion.2

Surveys can also be used to collect sensitive informa- tion from consumers, by ensuring that their responses to the questions are completely anonymous. In a regular survey, consumers might underreport negative behaviors (e.g., shoplifting, tax evasion, binge drinking, smoking) or over report positive behaviors (e.g., giving to charity, read- ing books, studying, eating vegetables).3 Recent develop- ments in market research techniques allow deep insights into the sensitive behaviors of consumers, while still safe- guarding their anonymity.4

Primary data Data originating from a researcher and collected to provide information relevant to a specific research project.

Secondary data Data collected for some other purpose that is subsequently used in a research project.

Survey A method of collecting information from a sample of con- sumers, predominantly by asking questions.

29APPENDIX | DEVELOPING INFORMATION ABOUT CONSUMER BEHAVIOR

FOCUS GROUPS Unlike a survey, which may collect input from hun- dreds of people responding individually to the same questionnaire, a focus group brings together small groups of consumers to discuss an issue or an offering. Led by a trained moderator, participants express their opinions about a given product or topic, which can be partic- ularly useful in identifying and testing new product ideas. Focus groups provide qual- itative insights into consumer attitudes as opposed to the quantitative (numerical) data result- ing from surveys. When Nebraska was readying a new marketing plan to boost state tourism, researchers held focus groups to learn about consumers’ perceptions of and attitudes toward the state’s varied attractions. Offi- cials put together a tourism plan after determining that some tourists are attracted by Nebraska’s “open spaces,”

while others prefer Omaha’s faster pace. Additional research prompted the state to brand itself “Nebraska Nice” as a way to emphasize the friendly people that

tourists will meet.5 A related technique is the computer-based

focus group, in which consumers go to a com- puter lab where their individual comments are displayed anonymously on a large screen for viewing by the group. This method can help researchers gather information on sen- sitive topics, as can focus groups conducted by telephone or online rather than in person.

However, the anonymity prevents researchers from collecting other relevant data, such as nonverbal reac- tions conveyed by facial expressions and body language that would be available in a traditional focus group. Another alternative is to hold focus groups via Skype or similar technologies, where participants’ faces are

Exhibit A.1 ▸ Tools for Tools for T Primary Research Investigating Consumer Behavior There are many different types of tools available to research and get information on consumer behavior.

Tool Description

Survey A written instrument that asks consumers to respond to a predetermined set of research questions.

Focus group A form of interview involving 8 to 12 people who, led by a moderator, discuss a product or other marketing stimulus.

Interview One-on-one discussion in which an interviewer asks a consumer questions related to consumption behavior and decisions.

Storytelling Consumers are asked to tell stories about acquisition, usage, or disposition experiences.

Photography and pictures Showing photographs or pictures to consumers (or asking consumers to take photos or draw pictures) as a way to elicit comments about marketing stimuli.

Diaries Asking consumers to maintain a written or online diary about product purchasing, media usage, and related behavior.

Experiments Conducting experiments under laboratory conditions to determine whether and how specific marketing phenomena affect consumer behavior.

Field experiments Conducting experiments, such as market tests in the real world, to determine actual consumer reaction to marketing stimuli.

Conjoint analysis A research technique designed to determine the relative importance and appeal of different levels of an offering’s attributes.

Observations and ethnographic research

Observing consumers at home or in stores to understand behavior and gain insights that will lead to more effective marketing decisions.

Purchase panels Tracking what consumers buy on different occasions or in different places.

Database marketing Combining all research data about consumers and their purchases into a database that can be analyzed to identify behavior patterns as insights for developing marketing programs.

Netnography Tracking and analyzing online comments and consumer activities to understand consumers’ thoughts, feelings, and actions about marketing stimuli.

Psychophysiological reactions and neuroscience

Examining physiological reactions (e.g., eye movements) and applying neuroscience techniques (e.g., measuring brain activity) to understand consumer behavior.

Focus group A form of interview involving 8 to 12 people; a mod- erator leads the group and asks participants to discuss a product, concept, or other mar- keting stimulus.

PAPAP RT ONE | AN INTRODUCTION TO CONSUMER BEHAVIOR30

INTERVIEWS Like focus groups, interviews involve direct contact with consumers (see Exhibit A.2). Interviews are often more appropriate than focus groups when the topic is sensitive, embar- rassing, confidential, or emotionally charged. They provide more in-depth data than surveys when the researcher wants to “pick consumers’ brains.”

In some interviews, researchers ask cus- tomers about the process they use to make

a purchase decision. One research company assigns professional interviewers to tape-record consumers’ thoughts while they shop for groceries. This research helps marketers understand how factors in the shop- ping environment affect purchasing. Interviews can also uncover broader attitudes that affect behavior across

product categories. When the Underwriters Laboratories interviewed hundreds of con- sumers in the United States, Germany, China, and India, it found a belief that high-tech firms were bringing new products to market more quickly than needed. The interviews revealed concerns about the fast pace of new technol- ogy and about new products being introduced because companies wanted new products to sell, not necessarily because the products were innovative.8

Traditional interviews require a trained interviewer who attempts to establish rapport with consumers. Interviewers also note nonver- bal behaviors like fidgeting, voice pitch changes, and folded arms and legs as clues to whether the respondent is open to the discussion or whether certain questions are particularly sen- sitive. Researchers often record interviews for later transcription so they can examine the results using qualitative or quantitative analy- sis. Sometimes researchers videotape nonverbal responses that cannot be captured in the tran- scription process and analyze the interviews later to identify patterns or themes.

STORYTELLING Another tool for conducting consumer research is storytelling, in which consumers tell research- ers stories about their experiences with a prod- uct. At Patagonia, which markets outdoor clothing and accessories, researchers collect consumer stories about backpacking and other outdoor experiences for use in developing the company’s catalogs and online product descrip- tions. Storytelling not only provides informa- tion relevant to the marketing of the product but

visible and vocal qualities can be analyzed along with verbal responses.6

Some companies convene customer advi- sory boards, small groups of customers that meet with marketing and service executives once or twice a year (face to face, online, or by phone) to discuss offerings, competi- tive products, future needs, acquisition and usage problems, strategy, and related issues. Board meetings serve not just as research but also as a tool for strengthening customer relat ions. Large companies such as Del l and IBM sometimes have multiple customer advi- sory boards, recruiting key customers to serve on a board for a specific corporate division or a particular product line.7

Exhibit A.2 xhibit A.2 ▸ Interviews One-on-one interviews with consumers can provide useful feedback to One-on-one interviews with consumers can provide useful feedback to companies or market researchers, especially on sensitive subjects.

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Storytelling A research method by which consumers are asked to tell stories about product acquisition, usage, or disposition experi- ences. These stories help marketers gain insights into consumer needs and identify the product attributes that meet these needs.

APPENDIX | DEVELOPING INFORMATION ABOUT CONSUMER BEHAVIOR 31

results provide insights into how purchasing differs by age, home owners versus renters, and other consumer characteristics.

EXPERIMENTS Consumer researchers can conduct experiments to deter- mine whether certain marketing phenomena affect con- sumer behavior (see Exhibit A.3). For example, they might design an experiment to learn whether consumers’ attitudes toward a brand are affected by the brand name as opposed to factors such as product features, package, color, logo, room temperature, or the consumer’s mood. With experiments, researchers randomly assign consum- ers to receive different “treatments” and then observe the effects of these treatments. To illustrate, consumers might be assigned to groups that are shown different brand names. The researchers collect data about participants’ attitudes toward the name and compare attitudes across groups. In a taste-test experiment, they might randomly assign consumers to groups and then ask each group to taste a different product. Comparing evaluations of the

also shows that Patagonia is in touch with its customers and values what they say.9

Although storytelling involves the real stories of real consumers, sometimes marketers ask consumers to tell or write stories about hypothetical situations that the marketer has depicted in a picture or scenario.10 The idea is that a consumer’s needs, feelings, and perceptions are revealed by the way he or she interprets what is depicted in the picture or scenario. For example, researchers may show a picture of a woman at the entrance to a Zara store with a thought bubble above her head and ask consumers to write what they imagine the woman is thinking. Such stories can reveal what consumers think of a particular store, purchase situation, and so on.

PHOTOGRAPHY AND PICTURES Some researchers use a technique in which they show pic- tures of experiences that consumers have had in order to help consumers remember and report experiences more completely. Researchers may also ask consumers to draw or collect pictures that represent their thoughts and feel- ings about the topic at hand. Still another practice is to ask consumers to photograph their belongings or assemble a collage of pictures that reflects their lifestyles. Researchers then ask about the pictures and the meaning behind them or have the consumer write an essay, which can help inte- grate the images and thoughts suggested by the pictures.

DIARIES Asking consumers to keep diaries can provide important insights into their behavior, including product purchas- ing and media usage. Diaries often reveal how friends and family affect consumers’ decisions about money, clothes, music, fast foods, videos, concerts, and so on. For exam- ple, several Federal Reserve Banks around the country recruit consumers each year to maintain a diary of finan- cial transactions for several days. The purpose is to under- stand the use of cash, credit, debit, and electronic payment methods and identify changes in payment preferences over time.11

The research firm NPD Group asks more than three million consumers worldwide to maintain online diaries, tracking their purchases in dozens of product categories. Companies buy NPD’s diary data to learn whether consumers are brand loyal or brand switching and whether they are heavy or light product users. By linking the data with demographic data, marketers can learn even more about these consumers. Marketers tar- geting U.S. consumers can also examine yearly data from the government’s Consumer Expenditure Diary Survey. As part of this research, selected consumers record all their household purchases of goods and services in cer- tain categories, such as foods, beverages, and nonpre- scription medical items, during a two-week period. The

Exhibit A.3 xhibit A.3 ▸ Experiments Laboratory testing and field experiments with consumers, Laboratory testing and field experiments with consumers, such as taste testing, is one way to research new products and marketing trends.

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PAPAP RT ONE | AN INTRODUCTION TO CONSUMER BEHAVIOR32

product features, and price points. Next, they determine the levels to be tested for each attribute (e.g., large or small size). Then they ask consum- ers to react to a series of product concepts that combine these attributes in different ways.

For example, researchers might ask how likely consumers are to buy a large container of liq- uid Tide laundry detergent that has added stain removal power and costs $10.75; they might also ask how likely consumers are to buy a small container of Tide that lacks added stain removal power and costs $8.50. By analyzing the responses to different combinations, the researchers can see how important each attribute (e.g., size, price) is and the level of a given attribute that custom- ers prefer. Academic researchers have used this methodology to understand, among other things, how much weight consumers give to environ- mental factors versus price and other attributes when they buy wooden furniture.13

OBSERVATIONS AND ETHNOGRAPHIC RESEARCH At times, researchers observe consumers to gain insight into potentially effective product, promotion, price, and distribution decisions. As an example, VF Corporation, which mar-

kets Wrangler and Lee jeans, learned a lot by sending its researchers to observe women shoppers in a depart- ment store. The observers noticed that women tried on multiple sizes for each jean style they wanted to buy. Why? Because customers didn’t believe they could rely on the labeled sizes. Based on this observation, VF decided to change its size labels and launch an online campaign to help women choose the most flattering jean sizes and styles. VF’s revenues soared by millions of dollars as a result of implementing this and other changes based on research insights.14

Some companies conduct ethnographic research, in which researchers interview and observe (and per- haps videotape) how consumers behave in real-world surroundings. (Ethnographic research can also be applied to Internet activities, as discussed later in this appendix.) Speck, a store located in the high-tech cen- ter of California’s Silicon Valley, is not in business to make sales of iPhones and other electronic gadgets. Instead, it serves as a retail location for observing and interviewing shoppers as they browse the showcases, handle new products, ask questions, test product func- tions, and offer comments about the merchandise. “It’s a marketing laboratory,” explains Speck’s CEO. “Sales are nice, but our goal is to be able to talk to people.”15

product across the groups will show which prod- uct is preferred.

An important aspect of such experiments is that the groups are designed to be identical in all respects except the treatment, called the independent vari- able. Thus, in a taste-test experiment, only the taste of the food or beverage is varied. Everything else is the same across groups—consumers eat or drink the same amount of the product, at the same tempera- ture, from the same kind of container, in the same room, in the presence of the same experimenter, and so on. After consumers taste and rate the prod- uct, researchers can compare the groups’ responses to see which taste is preferred. Because the groups are identical in all other respects, researchers know that any differences between the two groups are caused by the treatment (the food’s taste).

FIELD EXPERIMENTS Although experiments are often conducted in con- trolled laboratory situations, marketers can plan and implement experiments in the real world, known as “field experiments.” One type of field experiment, a market test, reveals whether an offering is likely to sell in a given market and which marketing-mix elements most effectively enhance sales. Suppose marketers want to determine how much advertis- ing support to give to a new product. They could select two test markets of a similar size and demographic composition and spend a different amount of money on advertising in each market. By observing product sales in the two markets over a set period, the marketers would be able to tell whether the added investment in advertising had a significant sales impact.

Before Dr Pepper Snapple introduced its Dr Pepper Ten soft drink throughout the United States—targeting men who drink diet beverages—it tested the product’s 10-calorie formula and the supporting marketing mix in six cities. In addition to gauging consumer response to the taste and name, the company wanted to determine how men and women would react to its male-oriented packaging and advertising. As a result of this market test, Dr Pepper Snapple learned that men responded posi- tively—and that women were intrigued enough to try Dr Pepper Ten at least once.12

CONJOINT ANALYSIS Many marketers use the sophisticated research tech- nique of conjoint analysis to determine the rela- tive importance and appeal of different levels of an offering’s attributes. To start, researchers identify the attributes of the offering, such as package size, specific

Independent vari- able The “treatment” or the entity that researchers vary in a research project.

Market test A study in which the effective- ness of one or more elements of the mar- keting mix is examined by evaluating sales of the product in an actual market, for example, a specific city.

Conjoint analysis A research technique to determine the relative importance and appeal of different levels of an offering’s attributes.

Ethnographic research In-depth qualitative research using observations and interviews (often over repeated occasions) of consumers in real- world surroundings. Often used to study the meaning that consumers ascribe to a product or consumption phenomenon.

APPENDIX | DEVELOPING INFORMATION ABOUT CONSUMER BEHAVIOR 33

the company identify promising new store locations and stock each store with the right assortment of goods in appropriate quantities. Walmart can even use data mining to be sure that extra quantities of storm-related merchandise gets to individual stores in advance of hurricanes or other extreme weather situations, based on what customers in those stores have bought before and after storms in previous years.16

Big data is also used extensively by online compa- nies. Many marketers and digital advertising firms use tracking software or other meth- ods to observe which websites consumers visit, which pages they look at, how long they visit each site, and related data. By analyz- ing consumer browsing patterns, researchers can determine how to make websites more user-friendly and how to better target online advertising, and how to more effectively move consumers through the “conversion funnel” from product awareness to purchase. Although

some marketing researchers proclaim that the advent of big data means the demise of traditional forms of mar- keting research, most experts agree that insights from large-scale databases are more likely to complement (rather than supplant) traditional marketing research activities.17

While marketing researchers may see much potential in big data, privacy advocates are concerned that tracking and recording consumer behavior—especially without the consumer’s knowledge or consent—can be intrusive. Even though most companies post privacy policies to explain what details they collect and how they use con- sumers’ data, these policies are not always easy to under- stand and don’t always appear prominently in online or print materials. To protect personal privacy, the Euro- pean Union now requires companies to obtain consum- ers’ consent before using tracking “cookies” to follow anyone’s online activities.18 Canada requires marketers to disclose how they are tracking consumers online, what information is collected, and how it will be used. “Some people like receiving ads targeted to their specific inter- ests,” explains Canada’s privacy commissioner. “Others are extremely uncomfortable with the notion of their online activities being tracked. People’s choices must be respected.”19

NETNOGRAPHY Researchers can use a variety of methods for netnogra- phy, ethnographic research techniques adapted for the observation and analysis of consumers’ online behavior and comments.20 The content consumers post on social media, brand forums, and websites, as well as data on

PURCHASE PANELS Sometimes marketers try to understand consumer behavior by tracking what consumers buy on differ- ent purchase occasions. This kind of research simply records whether a behavior occurred. Such behavioral data may be collected from special panel members, from a representative sample of the general population, or from the marketer’s target market. Every time panel members go shopping, the cash register records their purchases. By merging purchase data with demographic data, marketers can tell who is purchasing a product, whether those consum- ers are also buying competitors’ products, and whether a coupon or other sales promotion was involved. Marketers can also use these data to determine whether, for example, the shelf space allocated to a product, or added adver- tising in the test area, affected panel members’ purchases.

DATABASE MARKETING AND BIG DATA The increasing availability of large-scale databases filled with consumer information, coupled with technolog- ical advances in computing power and advanced ana- lytical models, has led to considerable discussion about the use of “big data” and its potential to transform our understanding of consumer behavior. With big data, marketers combine data from various research sources into a common database. For example, a database might contain information about targeted consumers’ demo- graphics and lifestyles combined with data about their purchases in various product categories over time, their media habits, and their usage of coupons and other pro- motional devices. Data in these databases can be ana- lyzed by techniques that search for patterns in the data, which is called data mining. Alternatively, researchers might develop sophisticated analytical models that allow them to test predictions about how consumers will respond to marketing mix activities.

Walmart is at the cutting edge of the big data move- ment. It follows every piece of merchandise from ware- house to store shelf and when a customer brings an item to the checkout, that purchase is recorded, along with the item’s price, the time of sale, and the store location. These data are reported to Walmart hourly and daily by product, by category, by store, by sup- plier, and so on. The retailer analyzes what else goes into the shopping cart, store by store and region by region, for clues to pricing products in different cate- gories. Walmart also pays attention to what its millions of Facebook fans say and do online. Data mining helps

Data mining Search- ing for patterns in a company database that offer clues to customer needs, preferences, and behaviors.

Netnography Observing and analyz- ing the online behavior and comments of consumers.

PAPAP RT ONE | AN INTRODUCTION TO CONSUMER BEHAVIOR34

to various marketing stimuli.24 By recording moment- to-moment eye movements and interpreting emotions from facial expressions, for example, researchers can determine which ad messages or websites attract and retain attention, and how competing stimuli affect these processes.25 Marketers can then apply this learning to increase the “stopping power” of ad messages and web- sites. In one study, researchers were able to suggest, based on these physiological measurements, how marketers could engage consumers so they will not click away from online video ads.26 Combining neuroscience with other research techniques can help marketers better understand how consumers process and react to specific marketing stimuli (such as the logos of brand sponsors at a sporting event).27

Neuroscientists are seeking to understand consumer behavior by watching which parts of the brain become activated when consumers make a decision, view an ad, or select an investment.28 For instance, Frito-Lay learned through neuroscience research that consumers like the orange, cheesy residue left on their fingers when they eat Cheetos snacks. Based on this insight, Frito-Lay has played up the messy-fingers angle in its marketing and social media. It also applied this insight when launching Cheetos Sweetos, a sweet snack coated with cinnamon that leaves a brown residue on consumers’ fingers.29 Although neuro- science research raises concerns about manipulation, one advertising executive notes: “Observing brain activity and setting up models for behavior is not the same as forcing a brain into making a consumption decision.”30

Types of Consumer ResearchersTypes of Consumer ResearchersT Many entities use market research to study consumer behavior for different reasons, as shown in Exhibit A.4. Organizations such as consumer goods and services com- panies, ad agencies, and marketing research firms conduct research to make decisions about marketing a specific product or service. Government organizations collect consumer information so as to set laws designed to pro- tect consumers. Academics conduct research to protect consumers or simply to understand why and how con- sumers behave as they do.

IN-HOUSE MARKETING RESEARCH DEPARTMENTS The benefits of conducting “in-house” research (con- ducted by the company for the company) are that the information collected can be kept within the company and that opportunities for information to leak to com- petitors are minimized. However, internal departments are sometimes viewed as less objective than outside research firms since they may have a vested interest in the research results. For example, employees may be moti- vated to show that the company is making good decisions,

brand likes and dislikes and consumers’ experiences with offerings, all provide rich material for netnogra- phy research. However, researchers are still learning to interpret the intentions, attitudes, and emotions inherent in messages and images on Twitter, Facebook, Instagram, Pinterest, and other social media. Tools such as automated content analysis and sophisticated data-mining tools are useful in extracting insights with the goal of fine-tuning marketing elements.21

Procter & Gamble, the company behind Tide, Bounty, and many other big brands, looks carefully at the level of social media buzz stimulated by its television commer- cials and other promotional activities—both the num- ber of consumer messages and the sentiment behind the messages (are the messages positive or negative?). The company coordinates and analyzes its full range of com- munications, including traditional and digital media, public relations, and in-store promotions, with the goal of engaging customers and encouraging them to be loyal buyers of P&G products.22

PSYCHOPHYSIOLOGICAL REACTIONS AND NEUROSCIENCE Most marketing research involves either collecting ver- bal responses from consumers (e.g., answers to questions and self-reports about media and purchase behaviors) or observing consumer behavior (e.g., under laboratory conditions, in real life, or online). But verbal reports can be greatly affected by subtle variations in how questions are worded, what sequence they are asked in, and what response scale is used to assess answers (i.e., a 1–7 point agreement scale or a 1–3 point agreement scale).23 In con- trast, the psychophysiological reactions of consumers to marketing actions (e.g., eye and muscle movements) are often automatic and rapid, unable to be verbalized by con- sumers. The range of potential psychophysiological reac- tions that can be measured is virtually limitless, including pupil dilation, eye movements, skin conductance, facial muscle movements, electrical activity of the brain (using electroencephalogram), and heart rate. Psychophysiolog- ical reactions to marketing are an important source of information that cannot easily be collected in any other way.

Neuroscience is the scientific study of the nervous sys- tem, which includes the brain, the spinal cord, and the retina. Developments in neuroscience have led to the introduction of new methodologies to collect data on fun- damental brain processes involved in consumer behavior. (Note that in marketing, the term neuro is often applied in a more general sense to all research techniques that involve some kind of psychophysiological measurement, such as eye tracking.)

Today, consumer researchers are gaining deeper insights by measuring physiological reactions and apply- ing neuroscience to understand how consumers respond

APPENDIX | DEVELOPING INFORMATION ABOUT CONSUMER BEHAVIOR 35

a situation that may unwittingly bias the nature of their research or the outcomes they report. Con- sequently, some companies use outside research companies to gather their consumer research.

EXTERNAL MARKETING RESEARCH FIRMS External research firms often help design a spe- cific research project before it begins. They develop measuring instruments to measure con- sumer responses, collect data from consumers, analyze the data, and develop reports for their cli- ents (see Exhibit A.5). Research firms specializing in neuroscience have helped Procter & Gamble, Campbell Soup, Turner Broadcasting, and others fine-tune their marketing messages and plan new offerings.31

Some marketing research firms are “full service” organizations that perform a variety of marketing research services; others specialize in a particu- lar type of research. The GfK Group, for instance, conducts media research, brand awareness

Exhibit A.4 ▸ Who Conducts Consumer Research? A number of different organizations conduct research on consumers, although they differ in their objectives. Some do research for application, some for consumer protection, and some for obtaining general knowledge about consumers.

Consumer Behavior

Research Designed for Consumer Protectiong

Government Consumer

Advocacy Groups

Academic Researchers

Research Designed for General UnderstandingResearch Designed for General Understanding

Research Designed for Application

Consumer Goods Companies

(internal marketing research

departments)

Research Design

Retailers

Government Data Sources

Research Foundations and

Trade Groups

Syndicated Data Services

External Marketing

Research Firms

or Application

Advertising Agencies

Exhibit A.5 xhibit A.5 ▸ Working with an External Marketing Research Firm Companies like Starch collect data on what, if anything, consumers remember from an ad. Companies like Starch collect data on what, if anything, consumers remember from an ad. The numbers noted on the stickers placed at the top of the ad indicate the percentage of respondents sampled who remembered having seen or read various parts of the ad.

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PAPAP RT ONE | AN INTRODUCTION TO CONSUMER BEHAVIOR36

the Yankelovich Monitor study collects data on consumer lifestyles and social trends using 90-minute interviews at the homes of approximately 2,500 adults. Its annual reports describing current and projected lifestyle trends help advertising agencies and company marketers develop content for promotional messages, choose media, identify new product ideas, plan positioning strategy, and make other marketing decisions.

Nielsen is a syndicated data service that tracks the TV viewing habits of thousands of participating U.S. house- holds. Using digital set-top equipment, it records which TV shows each household member is viewing and when. In addition, during “sweeps weeks,” it asks two million U.S. consumers to keep a diary indicating the shows they watch. Based on these data, Nielsen assigns a rating that indicates the number and percentage of all households watching a particular TV program, and a specific com- mercial, along with demographic analyses of the audience. This is how advertisers know how many viewers watch the Super Bowl, for instance.

By combining demographic and TV viewing behav- ior—including viewing on personal computers, tablet computers, and cell phones, not just on home TV sets— Nielsen can describe the audience for individual shows. Networks, cable stations, and independent channels use this information to determine whether TV shows should be renewed and how much they can charge for advertis- ing time on a particular show. In general, advertisers will pay more to advertise on very popular shows (those with higher Nielsen ratings). Advertisers who buy Nielsen data can assess which TV shows they should advertise in, basing their decisions on how well the audience’s demo- graphic characteristics match the sponsor’s target market. Nielsen also conducts research into consumers’ use of the Internet, video games, mobile devices, and other media that carry ad messages.

RETAILERS Large retail chains often conduct consumer research. By using electronic scanners to track sales of a brand or product category, they can determine which are their best and worst-selling items and see how consumers respond to coupons, discounts, and other promotions. Because salespeople often interact directly with customers, retail- ers sometimes use research to measure customer sat- isfaction and determine how they can improve service quality. Often retailers use research to uncover new needs and understand brand perceptions. Raymond, a clothing chain based in India, conducted research to investigate consumers’ preferences and brand attitudes within the United Arab Emirates and Saudi Arabia. After ascertain- ing that Gulf-region consumers accepted its brand and felt an emotional connection with it, Raymond designed

research, and other consumer behavior research. In its Starch Advertising Research studies, dozens of readers of a specific magazine go through a recent issue with a trained interviewer. The interviewer asks whether con- sumers have seen each ad in the issue and whether they saw the picture in each ad, read the headline, read the body copy, and saw the ad slogan. The company compiles reports about the percentage of respondents who saw each part of each ad and sells the results to advertisers who want to determine whether their ads were seen and read more than other ads in the same issue or product category.

ADVERTISING AGENCIES AND MEDIA PLANNING FIRMS Full-service advertising agencies and media plan- ning firms conduct research to better understand what advertising messages and media will appeal to their clients’ target markets. For example, the international home-furnishings chain IKEA asked MEC Global and Ogilvy & Mather to develop a campaign to increase the amount its customers spend during each transac- tion. When agency researchers studied the buying and consumption behavior of 35-year-old IKEA customers, they found that these shoppers associated the retailer with accessory merchandise, rather than with major fur- niture pieces and sets. The researchers also discovered that IKEA shoppers were looking for creative ideas they could adapt to personalize their living spaces. Based on this research, the agencies developed a multimedia campaign showing how the store offers choices for fur- nishing entire rooms with personal flair. The campaign included a brand community where consumers could upload photos of rooms they furnished and decorated with IKEA products, as inspiration for other consum- ers. The result: IKEA’s sales of living room sets rose 9 percent.32

Some advertising agencies have departments to test advertising concepts as part of the service they provide to clients. Agencies may also conduct advertising pretest- ing, using drawings of ads or finished ads, to make sure that an ad is fulfilling its objectives before it is placed in the media. In addition, agencies often conduct tracking studies to monitor advertising effectiveness over time. Tracking studies can determine whether the percentage of target market consumers who are aware of a brand has changed as a function of the amount, duration, and tim- ing of its advertising.

SYNDICATED DATA SERVICES Syndicated data services are companies that collect and then sell the information they collect, usually to firms that market products and services to consumers. For example,

APPENDIX | DEVELOPING INFORMATION ABOUT CONSUMER BEHAVIOR 37

CONSUMER ORGANIZATIONS Independent consumer organizations also conduct research, generally for the purpose of protecting or informing consumers. Consumers Union is an indepen- dent, nonprofit testing and information organization designed to serve consumers. The organization publishes the well-known Consumer Reports magazine. Many of the products described in Consumer Reports are tested in Consumers Union’s independent product-testing lab, and the results are posted on the organization’s website (www.consumerreports.org).

ACADEMICS AND ACADEMIC RESEARCH CENTERS Although academic research involving consumers can be used for marketing and may have implications for pub- lic policy, studies often are designed simply to enhance our general understanding of consumer behavior. Much of the research reported in this book describes state-

of-the-art academic studies. Some academic research centers focus on a specific aspect of consumer behavior. For example, the Restau- rant of the Future, on the campus of Wagenin- gen University in the Netherlands, is designed to allow researchers to experiment with light- ing, plates, food arrangement, seasonings and ingredients, and other details. The goal is to see their effects on what and how much students and faculty eat.36

stores specifically for these markets. Now the chain anticipates ongoing expansion in Dubai and other Gulf markets.33

RESEARCH FOUNDATIONS AND TRADE GROUPS Many research foundations and trade groups collect con- sumer research. A research foundation is a nonprofit orga- nization that sponsors research on topics relevant to the foundation’s goals. As an example, the nonprofit Adver- tising Research Foundation seeks to improve the practice of advertising, marketing, and media research. It sponsors conferences and webinars, and publishes reports related to research in these areas. The Marketing Science Institute is another nonprofit organization that sponsors academic research to uncover information useful to marketers.

Specialized trade groups may also collect consumer research to better understand the needs of consumers in their own industries. A trade group is an organization formed by people who work in the same industry, such as the Recording Industry Association of Amer- ica, a group whose members are involved in the music industry through recording, distribution, or retailing activities. This organization has sponsored a host of research projects, includ- ing studies to understand how American musi- cal tastes and music consumption patterns have changed over the years.

GOVERNMENT Although government agencies do not use research to help market an offering, businesses frequently use gov- ernment research for marketing purposes, as when they examine census data to estimate the size of various demographic markets. U.S. government studies by agen- cies such as the Consumer Products Safety Commission, the Department of Transportation, and the Food and Drug Administration are specifically designed for con- sumer protection (see Exhibit A.6). As an example, the Federal Trade Commission (FTC) conducts research on potentially deceptive, misleading, or fraudulent advertising. One issue the FTC continues to study, for example, is how consumers perceive goods and services advertised using phrases that suggest environmentally friendly properties. After conducting research, the FTC issued and later clarified guidelines for how marketers are permitted to use specific phrases (e.g., “renewable materials”) to avoid misleading consumers about “green” claims.34 Research can also help resolve court cases involving marketing issues such as whether consumers are confusing a new product’s trademark with an estab- lished product’s trademark, a situation that could hurt the established brand.35

Research foun- dation A nonprofit organization that sponsors research on topics relevant to the foundation’s goals.

Trade group A pro- fessional organization made up of marketers in the same industry.

Exhibit A.6 xhibit A.6 ▸ Consumer Protection Government agencies, such as the Consumer Product Safety Government agencies, such as the Consumer Product Safety Commission, are designed for consumer protection, and can issue recall notices such as this one for items unfit for con- sumer consumption.

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PAPAP RT ONE | AN INTRODUCTION TO CONSUMER BEHAVIOR38

costs of conducting research, concerns about invasion of privacy, and the use of deceptive practices.

Studying Consumer Behavior in Different Countries Marketers who want to research consumer behavior in other countries face special challenges. For instance, focus groups are not appropriate in all countries or situations. U.S. marketers often put husbands and wives together in a focus group to explore attitudes toward products like furniture. However, this approach won’t work in coun- tries like Saudi Arabia, where women are unlikely to speak freely and are highly unlikely to disagree with their husbands in such settings. Focus groups must also be conducted differently in Japan, where cultural pressures dictate against a person’s disagreeing with the views of a group.

Although telephone interviewing is common in the United States, it is far less prevalent in developing nations. Marketers must also consider a country’s liter- acy rate when planning survey research. At a minimum, researchers should word questions carefully and check to ensure that the meaning is being accurately con- veyed by first translating questions into the other lan- guage and then translating them back into the original language.

Companies may not be able to directly compare secondary data gathered in another country with data gathered in the United States, in part because of dif- ferent collection procedures or timing. Countries may also use different categorization schemes for describ- ing demographics like social class and education level. Moreover, different or fewer syndicated data sources may be available in other countries, a situation that limits the research available to marketers. Finally, con- ducting research to examine consumers’ online behavior and analyze online comments may be more challenging because of legal, cultural, and language differences from country to country.

Potentially Higher Marketing Costs Some consumers worry that the process of researching consumer behavior leads to higher marketing costs, which in turn translate into higher product prices. Some market- ers, however, argue that they can market to their custom- ers more efficiently if they know more about them. For example, product development, advertising, sales promo- tion costs, and distribution costs will be lower if market- ers know exactly what consumers want and how to reach them.

Invasion of Consumer Privacy A potentially more serious and widespread concern is that in the process of conducting and using research— especially database marketing—marketers may invade

Ethical Issues in Consumer Research Although marketers rely heavily on consumer research in the development of successful goods and services, the conduct of this research raises important ethical issues. As the following sections show, consumer research has both positive and negative aspects. See Chapter 17 for further discussion of ethical issues.

THE POSITIVE ASPECTS OF CONSUMER RESEARCH Both consumers and marketers can benefit from con- sumer research. Consumers generally have better acqui- sition, usage, and disposition experiences. Meanwhile, marketers can learn to build stronger customer rela- tionships by paying attention to consumer research. As a consequence, fewer new products may fail, and more products of interest to consumers will be brought to market, making for a more efficient and effective marketplace.

Better Consumer Experiences Because consumer research helps marketers become more customer focused, consumers can have better designed products, better customer service, clearer usage instruc- tions, more information that helps them make good deci- sions, and more satisfying acquisition and postpurchase experiences. Consumer research (by government and consumer organizations) also plays a role in protecting consumers from unscrupulous marketers.

Potential for Building Customer Relationships Research can help marketers identify ways of establish- ing and enhancing relationships with customers through a better understanding of their needs, attitudes, and behavior. One example is growing public interest in a marketer’s reputation for social responsibility, which in turn affects consumer attitudes and actions. Research shows that consumers will evaluate a product more pos- itively when they know the company is actively engaged in social responsibility programs such as philanthropy. In fact, consumers say they will pay more for offerings from businesses that demonstrate a strong commitment to making a positive social and environmental impact.37 Being aware of these kinds of broad trends in consumer sentiment is a good foundation from which to approach relationship building.

THE NEGATIVE ASPECTS OF CONSUMER RESEARCH Consumer research is a very complex process with a num- ber of potentially negative aspects. These include the diffi- culty of conducting research in foreign countries, the high

APPENDIX | DEVELOPING INFORMATION ABOUT CONSUMER BEHAVIOR 39

Summary: Consumer research is a valuable tool that helps marketers design better marketing programs, aids in the develop- ment of laws and public policy decisions regarding prod- uct safety, and promotes our general understanding of how consumers behave and why. Researchers use a variety of techniques, including collecting data on what consum- ers say and what they do. These tools may involve data collection from relatively few individuals or from many individuals and may study consumers at a single point in time or track their behavior across time.

Some companies have internal marketing research departments to collect data; others use external research firms to conduct studies. Advertising agencies and

syndicated data services are two types of outside agen- cies that conduct consumer research. Large retail chains often use electronic scanners to track sales of a brand or product category. Research foundations, trade groups, the government, consumer organizations, academics, and academic research centers also collect consumer infor- mation. Research supports a consumer-oriented view of marketing and can help companies improve consump- tion experiences and strengthen customer relationships. However, some critics say research may invade con- sumers’ privacy and lead to higher marketing costs; in addition, unscrupulous marketers can misuse consumer information.

Endnotes 1 Andrew Perrin and Maeve Duggan, “Americans’ Internet

Access: 2000-2015,” Pew Research Center, June 26, 2015, www .pewinternet.org.

2 David Gal and Derek D. Rucker, “Answering the Unasked Question: Response Substitution in Consumer Surveys,” Jour- nal of Marketing Research 48, no. 1, February 2011, pp. 185–195; and Bert Weijters, Maggie Geuens, and Hans Baumgartner, “The Effect of Familiarity with the Response Category Labels on Item Response to Likert Scales,” Journal of Consumer Research 40, no. 2, 2011, pp. 368–381.

3 Hila Riemer and Sharon Shavitt, “Impression Management in Survey Responding: Easier for Collectivists or Individu- alists?,” Journal of Consumer Psychology 21, no. 2, April 2011, Journal of Consumer Psychology 21, no. 2, April 2011, Journal of Consumer Psychology pp. 157–168.

4 Martijn G. de Jong, Rik Pieters, and Jean-Paul Fox, “Reducing Social Desirability Bias Through Item Randomized Response,” Journal of Marketing Research, February 2010, pp. 14–27.

5 Joanne Young, “Tourism Group to Sell State with ‘Nebraska Nice,’” Lincoln Journal Star (Nebraska), May 8, 2014, http:// journalstar.com; and Scott Koperski, “Tourism Focus Group

consumers’ privacy. Consumers worry that marketers know too much about them and that personal data, finan- cial data, and behavioral data may be sold to other com- panies or used inappropriately without their knowledge or consent. For example, after two U.S. shopping centers followed shoppers’ cellphone signals to track consumers’ movements (anonymously) from store to store, legisla- tors objected on privacy grounds. Now malls and retailers planning to use such systems are using incentives such as price promotions to encourage consumers to “opt in” for tracking via their smartphones.38 The loss of privacy due to improved facial recognition software is another con- cern as companies and social media sites collect and ana- lyze personal images and videos.39 Privacy requirements vary from country to country. In some areas, researchers must obtain consumers’ permission before collecting and storing personal data.

Deceptive Research Practices Finally, unscrupulous researchers may engage in deceptive practices. One such practice is lying about the sponsor of the research (e.g., saying it is being conducted by a non- profit organization when it is really being conducted by a for-profit company). Another deceptive practice is prom- ising that respondents’ answers will remain anonymous when in fact the company adds identifying information to the data in order to be able to market to these consumers later on. Unscrupulous researchers may also promise to compensate respondents but fail to deliver on this prom- ise.40 Such deceptive practices are not allowed under the strict codes of conduct developed by professional orga- nizations such as ESOMAR (European Society for Opin- ion and Market Research) and the Marketing Research Association.

PAPAP RT ONE | AN INTRODUCTION TO CONSUMER BEHAVIOR40

20 Robert V. Kozinets, “The Field Behind the Screen: Using Net- nography for Marketing Research in Online Communities,” Journal of Marketing Research, February 2002, pp. 61–72; and Jonathan Reynolds and Jiyao Xun, “Applying Netnography to Market Research: The Case of the Online Forum,” Journal of Targeting, Measurement, and Analysis for Marketing, March 2010, p. 17.

21 “Can Twitter Predict the Future?” Economist, June 4, 2011, p. 12.

22 Jack Neff, “P&G’s Pritchard on Where Marketing, Media and Metrics Are Going,” Advertising Age, March 16, 2015, www .adage.com; and David Talbot, “A Social-Media Decoder,” Technology Review, November–December 2011, p. 44ff.

23 Kimberlee Weaver and Norbert Schwarz, “Self-Reports in Consumer Research,” in eds. Curtis P. Haugtvedt, Paul M. Herr, and Frank R. Kardes, Handbook of Consumer Psychology (New York: Psychology Press, 2008), pp. 1081–1102.

24 See Hilke Plassmann, Thomas Zoega Ramsoy, and Milica Milosavljevic, “Branding the Brain: A Critical Review and Outlook, Journal of Consumer Psychology 22, no. 1, January Journal of Consumer Psychology 22, no. 1, January Journal of Consumer Psychology 2012, pp. 18–36; Rick Scott, “Losses, Gains and Brains: Neu- roeconomics Can Help to Answer Open Questions about Loss Aversion,” Journal of Consumer Psychology 21, no. 4, 2011, Journal of Consumer Psychology 21, no. 4, 2011, Journal of Consumer Psychology pp. 453–463; and Franz-Rudolf Esch, Thorsten Moll, Bernd Schmitt, Christian E. Elger, Carolin Neuhaus, and Bernd Weber, “Brands on the Brain: Do Consumers Use Declarative Information or Experienced Emotions to Evaluate Brands?” Journal of Consumer Psychology 22, no. 1, January 2012, pp. 75–85.

25 Edith Smit, Sophie Boerman, and Lex van Meurs, “The Power of Direct Context as Revealed by Eye Tracking: A Model Tracks Relative Attention to Competing Editorial and Promo- tional Content,” Journal of Advertising Research 55, no. 22, June 2015, pp. 216–227.

26 Thales Texeira, Michel Wedel, and Rik Pieters, “Emotion- Induced Engagement in Internet Video Ads,” Journal of Mar- keting Research, April 2012, pp. 144–159.

27 See Angeline G. Close, Russell Lacey, and T. Bettina Corn- well, “Can Sporting Event Sponsorships Benefit from the Way Attendees Process Them?” Journal of Advertising Research 55, no. 2, June 2015, pp. 206–215.

28 Baba Shiv and Carolyn Yoon, “Integrating Neurophysiological and Psychological Approaches: Toward and Advancement of Brand Insights,” Journal of Consumer Psychology 22, January Journal of Consumer Psychology 22, January Journal of Consumer Psychology 2012, pp. 2–6.

29 Bruce Horovitz, “Cheetos to Roll Out Sweetos Snacks,” USA Today, January 21, 2015, www.usatoday.com; and Adam L. Penenberg, “NeuroFocus Uses Neuromarketing to Hack Your Brain,” Fast Company, August 8, 2011, www.fastcompany.com.

30 Amber Haq, “This Is Your Brain on Advertising,” Business Week, October 8, 2007, www.businessweek.com.

31 Anthony Crupi, “Nielsen Buys Neuromarketing Research Company Innerscope,” Advertising Age, May 27, 2015, www .adage.com.

32 Hadley Malcolm, “Ikea Wants to Get a Little More Personal,” USA Today, June 14, 2015, www.usatoday.com; and Emma Hutchings, “IKEA Campaign Highlights the Craftsman to Transform ‘Consumer Perceptions,’” PSFK, December 15, 2011, www.psfk.com.

33 Suresh Pattali, “Indian Textile Major Raymond Sizes Up Fashion Industry,” Khaleej Times, June 27, 2013, www.khaleej- times.com; and Manoj Nair, “Raymond Tailors Retail Strategy

Held,” Beatrice Daily Sun (Nebraska), December 17, 2011, www .beatricedailysun.com.

6 Roksana Janghorban, Robab Latifnejad Roudsari, and Ali Taghipour, “Skype Interviewing: The New Generation of Online Synchronous Interview in Qualitative Research,” International Journal of Qualitative Studies on Health and Well-Being, April 2015, www.ncbi.nlm.nih.gov.

7 Anne Fisher, “Should You Join a Customer Advisory Board? And What Exactly Are They?,” Fortune, March 13, 2015, www. fortune.com.

8 Steve Lohr, “Are We Suffering Global Gadget Fatigue?” New York Times, December 12, 2011, www.nytimes.com.

9 “Liberty Partners with Oblo Allowing Consumers to Create Personalized ‘Story-Telling’ Lifestyle Photo Products,” Leisure & Travel Business, January 14, 2008, p. 27.

10 Sandra Yin, “Marketing Tools: The Power of Images,” Ameri- can Demographics, November 2001, pp. 32–33.

11 Shaun O’Brien, “Consumer Preferences and the Use of Cash: Evidence from the Diary of Consumer Payments Choice–Working Paper,” Federal Reserve Bank of San Fran- cisco, July 21, 2014, http://www.frbsf.org/cash/publications/ fed-notes/2014/july/consumer-preferences-cash-use.

12 Elizabeth G. Olson, “Dr. Pepper: A Scrappy Survivor in a Sea of Struggling Soda Giants,” Fortune, April 23, 2015, www.fortune. com; Steven R. Thompson, “Dr Pepper to Test More 10-Cal- orie Drinks in Columbus,” Dallas Business Journal, December 20, 2011, www.bizjournals.com; and Mae Anderson, “Dr Pep- per Ten ‘Not for Women,’” USA Today, October 10, 2011, www .usatoday.com.

13 Roy C. Anderson and Eric N. Hansen, “The Impact of Environ- mental Certification on Preferences for Wood Furniture: A Conjoint Analysis Approach,” Forest Products Journal, March 2004, pp. 42–50.

14 Scott Anthony, “3 Ways to Predict What Consumers Want Before They Know It,” Fast Company Design, February 16, 2012, www.fastcodesign.com.

15 Daniel Terdiman, “In Silicon Valley, a Retail Store as Product Laboratory,” CNet News, August 18, 2011, http://news.cnet .com.

16 Matt Weinberger, “How Wal-Mart Hired 2,200 Developers and Made ‘Magic,’” Business Insider, July 19, 2015, http://www .businessinsider.com; Geoff Colvin, “Walmart’s Makeover,” Fortune, December 26, 2011, pp. 50–55; Steve Lohr, “Reaping Results: Data-Mining Goes Mainstream,” New York Times, May 20, 2007, p. BU-3; Constance L. Hays, “What They Know About You,” New York Times, November 14, 2004, sec. 3, pp. 1, 9; and Jon Hamilton, “Big-Box Stores’ Hurricane Prep Starts Early,” NPR, August 26, 2011, www.npr.org.

17 Ben Rossi, “Big Data Doesn’t Come of Age: 5 Growing Pains Facing Businesses Today,” Information Age, January 5, 2016, www.information-age.com; and Phil Doriot, “Marketing Research and Big Data Can Not Only Live Together, They Can Thrive Together,” Alert! Magazine, first quarter 2014, www .marketingresearch.org.

18 Laura Goldsmith, “European Union Cookie Sweep Highlights Need for Improved Compliance,” National Law Review, Febru- ary 27, 2015, www.natlawreview.com.

19 Lisa Abe-Oldenburg, “Using Big Data for Targeted Advertis- ing Could Violate Canadian Privacy Law,” Lexology, July 16, 2015, www.lexology.com; and Etan Vlessing, “Canada’s Privacy Czar Tells Advertisers to Curb Online Tracking,” Hollywood Reporter, December 6, 2011, www.hollywoodreporter.com.

APPENDIX | DEVELOPING INFORMATION ABOUT CONSUMER BEHAVIOR 41

Responsibility,” Journal of Consumer Research, April 2015, pp. 1412–1425; and “Global Consumers Are Willing to Put Their Money Where Their Heart Is When It Comes to Goods and Services from Companies Committed to Social Responsi- bility,” Nielsen News Release, June 17, 2014, www.nielsen.com.

38 Diane Cardwell, “A Light Bulb Goes On, Over the Mall,” New York Times, July 19, 2015, www.nytimes.com; and Annalyn Censky, “Malls Stop Tracking Shoppers’ Cell Phones,” CNN Money, November 28, 2011, www.cnn.com.

39 “The Ghost in the Camera,” Consumer Reports, February 2016, pp. 43–45.

to Expand in Gulf Markets,” Gulf News, December 22, 2011, www.gulfnews.com.

34 Missy Baxter, “FTC Clarifies Green Marketing Guidelines,” Credit Union Times, May 7, 2014, www.cutimes.com.

35 Chris Pullig, Carolyn J. Simmons, and Richard G. Nete- meyer, “Brand Dilution: When Do New Brands Hurt Existing Brands?” Journal of Marketing, April 2006, pp. 52–66.

36 Frank Browning, “The Restaurant of the Future: A Living Lab,” NPR, May 17, 2009, www.npr.org; and Marlise Simons, “In the Netherlands, Eat, Drink, and Be Monitored,” New York Times, November 26, 2007, p. A4.

37 Alexander Chernev and Sean Blair, “Doing Well by Doing Good: The Benevolent Halo of Corporate Social

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The Psychological Core

2 Motivation, Ability, and Opportunity 3 From Exposure to Comprehension 4 Memory and Knowledge 5-6 Attitudes Based on Effort Attitudes Based on Effort

An Introduction An Introduction to

Consumer Behavior Consumer Behavior 1 Understanding Consumer Understanding Consumer

BehaviorBehavior

The Process of The Process of Making DecisionsMaking Decisions

7 Problem Recognition and Problem Recognition and Information SearchInformation Search

8-9 Judgment and Decision-Judgment and Decision- Making Based on EffortMaking Based on Effort

10 Post-Decision Processes Post-Decision Processes

The Consumer’s Culture Consumer’s Culture Consumer’s Culture 11 Social Influences on

Consumer Behavior 12 Consumer Diversity 13 Household and Social Class

Influences 14 Psychographics: Values,

Personality, and Lifestyles

Consumer Behavior Consumer Behavior Outcomes and Issues 15 Innovations: Adoption,

Resistance, and Diffusion 16 Symbolic Consumer Behavior 17 Marketing, Ethics, and Social

Responsibility in Today’s Consumer Society

Part 2

The Psychological Core

Consumer behavior is greatly affected by the amount of effort that consumers put into their consumption behaviors and decisions. Chapter 2 describes three critical factors that affect

effort: the (1) motivation, (2) ability, and (3) opportu-

nity consumers have to engage in behaviors and make

decisions. Chapter 3 discusses how consumers come

into contact with marketing stimuli (exposure), notice

them (attention), and perceive them.

Chapter 4 continues the topic by discussing how

consumers put information into memory, compare

information with their existing knowledge, and

retrieve it from memory. Chapter 5 describes what

happens when consumers exert a great deal of effort

in forming and changing attitudes. Finally, Chapter 6

discusses how attitudes can be influenced when

consumer effort is low.

2 Motivation, Ability, and Opportunity 44

3 From Exposure to Comprehension 72

4 Memory and Knowledge 100

5 Attitudes Based on High Effort 127

6 Attitudes Based on Low Effort 154

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INTRODUCTION

Consumer motivation, ability, and opportunity jointly influence a consumer’s acquisition, usage, and disposition decisions, as market- ers like Movie Tavern know. Movie Tavern operates movie theaters in 21 locations, also offering restaurant-quality foods and beverages. This combination of film and food is consistent with achieving goals such as saving time and money, and with meeting needs for food and socializing.1 Making it easy for consumers to find out about the latest movies and menu items (from ads, social media, and other sources) increases the ability and opportunity for purchasing and consump- tion. Whether motivated consumers actually achieve a goal depends on whether they have the ability and the opportunity to achieve it. As this chapter explains, ability depends on five categories of resources plus age and education. Opportunity is determined by time, distrac- tions, and the complexity, amount, repetition, and control of infor- mation to which consumers are exposed.

Motivation, Ability, and Opportunity LEARNING OBJECTIVESAfter studying this chapter, you will be able to:

▸ Show how motivation influences high-effort behavior, high-effort information processing and decision-making, and felt involvement.

▸ Discuss the four types of influences that deter- mine the consumer’s motivation to process information, make a decision, or take an action.

▸ Explain how financial, cognitive, emotional, physical, and social and cultural resources, plus age and education, can affect the individu- al’s ability to engage in consumer behaviors.

▸ Identify the three main types of influences on the consumer’s opportunity to process infor- mation and acquire, consume, or dispose of products.iS

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CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 45

2-1 Consumer Motivation and Its Effects

Motivation comes from the Latin word “mov- ere,” which means “to move.” Motivation is what moves people. It is defined as “an inner state of activation,” with the activated energy directed to achieving a goal.2 The motivated consumer is energized, ready, and willing to engage in a goal-relevant activity. For example, if you learn that a much-anticipated electronic game will be released next Tuesday, you may be motivated to be ready to buy and download early that morn- ing. Consumers can be motivated to engage in behaviors, make decisions, or process infor- mation, and this motivation can be seen in the context of acquiring, using, or disposing of an offering. Let’s look first at the effects of motivation, as shown in Exhibit 2.1.

2-1a HIGH-EFFORT BEHAVIOR One outcome of motivation is behavior that takes con- siderable effort. For example, if you are motivated to buy a good car, you will research vehicles online, look at ads, visit dealerships, and so on. Likewise, if you are motivated to lose weight, you will buy low-fat foods, eat smaller por- tions, and exercise. Motivation not only drives the final behaviors that bring a goal closer but also creates a willing- ness to expend time and energy on preparatory behaviors. Thus, someone motivated to buy a new smartphone may earn extra money for it, drive through a storm to reach the store, and then wait in line to buy it. Note, however, that consumers try to match anticipated and actual effort. If they believe their anticipated effort will be too much—if it is too much trouble to wait on line, for instance—they will simplify the decision (by ordering online or waiting until the next day). Conversely, if consumers think an important decision will be too simple, they will compli- cate it with extra effort.3

2-1b HIGH-EFFORT INFORMATION PROCESSING AND DECISION-MAKING

Motivation also affects how we process information and make decisions.4 When consumers are highly motivated to achieve a goal, they are more likely to pay careful attention to it, think about it, attempt to understand or comprehend goal-relevant information, evaluate that information crit- ically, and try to remember it for later use. This requires much effort. For example, if you are motivated to buy a new piano keyboard, you might scour websites looking for a sale. If someone mentions an online retailer that has keyboard sales from time to time, you might subscribe to that retailer’s promotional e-mails or click to “like” it on Facebook.

However, when consumers have low motiva- tion, they devote little effort to processing infor- mation and making decisions. For example, your motivation to purchase the best paper clips on the market is likely to be low. You would devote little attention to learning about the character- istics of paper clips, and you would not stop to think about what it would be like to use various types of paper clips (colored or uncolored, alumi- num or steel, small or large). You may use deci- sion-making shortcuts, such as deciding to buy the cheapest brand or the same brand you bought the last time, or the first brand that meets min- imum criteria.5 This is, in fact, how consumers tend to buy common grocery products.

Most research on consumer behavior has focused on consumers’ motivation to process

information accurately, as just described. Recent research has focused on a different type of motivation involved in information processing that is called motivated reason- ing. When consumers engage in motivated reasoning, they process information in a biased way so that they can obtain the particular conclusion they want to reach.6 One example of motivated reasoning is a confirmation bias when consumers seek information that supports their conclusion rather than seeking accurate information.

For example, if your goal is to lose weight, and you see an ad for a diet product, you might process the ad in a biased way to convince yourself that the product will work for you. If we want to believe that we are not vulnerable to the ill effects of smoking, we may be more likely to smoke if we are aware of smoking cessation products that are touted as “remedies.” Because there are remedies to help us to quit smoking, we can use motivated reasoning to convince ourselves that smoking is not so bad after all or that is less dangerous for us than it is for others, or that eating vegetables and playing sports compensates for the negative consequences of smoking.7

As another example, because we want to think about good things that can happen to us rather than bad things, we may underestimate the likelihood of facing problems such as becoming ill—and fail to take preventive steps to avoid doing so.8 We may be particularly prone to motivated reasoning when our self-esteem is at stake or when we des- perately hope to achieve a particular goal (like weight loss) or avoid a negative outcome (like becoming ill).9 Moti- vated reasoning returns in later chapters. Here, the focus is on the motivation to process information accurately.

2-1c FELT INVOLVEMENT A final outcome of motivation is that it evokes a psycho- logical state in consumers called involvement. Felt involve- ment is the consumer’s experience of being motivated with respect to a product or service, or decisions and actions about these.10

Motivation An inner state of activation that provides energy needed to achieve a goal.

Motivated rea- soning Processing information in a way that allows consumers to reach the conclusion that they want to reach.

Felt involvement The consumer’s experience of being motivated with respect to a product or service, or decisions and actions about these.

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE46

Exhibit 2.1 ▸ Chapter Overview: Motivation, Ability, and Opportunity Motivation, ability, and opportunity (MAO) to engage in various consumer behaviors are affected by many factors. Outcomes of high MAO include (1) goal-relevant behavior, (2) high-effort information processing and decision-making, and (3) felt involvement.

Motivation In�uIn�uIn enced by:enced by:enced b

Abilityy In�uIn�uIn enced by:enced by:enced b

OpOppoportunityy In�uIn�uIn enced by:enced by:enced b

High effort information processing and decisionffort inform n making • Felt involvement

Psychological Core �e

2 Motivation, Ability, Ability, Ability and Opportunity 3 From Exposure to Comprehension 4 Memory and Knowledge

5-6 Attitude Formation and Change

Consumer’s Culturure 11 Social Influences Social Influences

on Consumer Behavior 12 Consumer Diversity 13 Household and Social

Class Influences 14 PsychographicsPsychographics: V: Values,alues,

Personality, Personality, Personality and Lifestylesand Lifestyles

�e

Consumer Behaviornsumer Behaviornsumer Behavior Outcomes and Itcomes and Itcomes and Issues

Innovations:ations:ations: Adoption, ResistanceResistanceResistance, and Diffusion Symbolic Consumer BehaviorSymbolic Consumer BehaviorSymbolic Consumer Behavior MarketingMarketingMarketing, Ethics, and Social Responsibility in Responsibility in Responsibility in Today’Today’T s Consumer SocietyConsumer SocietyConsumer Society

16 17

Makiaking Decisions �e Process of�e Process of

7 Problem Recognition and Information Search

8-9 Judgment and Decision-Making

10 Post-Decision Processes

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CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 47

Types of Involvement Felt involvement can be (1) enduring, (2) situational, (3) cognitive, or (4) affective.11

Enduring involvement exists when we show interest in an offering or activity over a long period of time.12 Car enthusiasts are intrinsically interested in cars and exhibit enduring involvement in them. Enthu- siasts engage in activities that reveal this interest (e.g., going to car shows, visiting car websites, watching YouTube videos about cars, and going to dealerships). In most instances, consumers expe- rience situational (temporary) involvement with an offering or activity. For example, consumers who exhibit no enduring involvement with cars may be involved in the car-buying process when they are in the market for a new car. After they buy the car, their involvement with new cars declines dramatically.

Researchers also distinguish between cognitive and affective involvement.13 Cognitive involvement means that the consumer is interested in thinking about and processing information related to his or her goal. The goal therefore includes learning about the offering. A winter sports fan who is interested in learning all about curling and looks into the Olympic success of the Canadian men’s and wom- en’s curling teams would be exhibiting cognitive involvement. Affective involvement means that the consumer is willing to expend emotional energy in or has heightened feelings about an offering or activity. The consumer who listens to music to experience intense emotions or to relive a particular event in life is exhibiting strong affective involvement.

Objects of Involvement As many of this chapter’s examples indicate, consumers may exhibit cognitive and/or affective involvement in objects. These objects can include a product or retail cat- egory such as cars or clothing stores or can involve experi- ences such as white-water rafting.14 You might be involved with clothing because you enjoy shopping for such prod- ucts and see them as important for your self-expression.15

Consumers can also exhibit cognitive and/or affective involvement with a brand by being emotionally attached to it, as one might be with a particular musical band or a brand of headphones. When you are emotionally attached to and involved with a brand, you view the brand as an extension of yourself and feel a great deal of passion toward the brand.16 Intense brand love leads to high customer loyalty and strong motivation to lavish time, money, and energy on that brand.17 Consumers can also be involved with ads that are interesting or relevant to them.18 In Japan, ads that emphasize inter- personal relationships, social circumstances, and nonverbal expressions generate more involvement than ads with clearly articulated and spoken messages.19 In addition, consumers may be involved with a medium (like TV, newspapers, or the

Internet) or with a particular article or show in which an ad is placed. The huge global audiences of the Super Bowl football game, the FIFA World Cup in soccer, or the Paris Masters and Wimbledon tennis tournaments, demonstrate how involved consumers are with these televised events. A person may get

so involved in interacting with a particular compa- ny’s website or Facebook page that he or she may view it as “play.”20

Consumers involved in certain decisions and behaviors are experiencing response involvement.21 For example, consumers may be highly involved in the process of deciding between brands. Because consumers can be involved with many differ- ent entities, it is important to specify the object of involvement when using the term involvement. For instance, consumers who are involved with brands because they are attached to them are unlikely to be involved in deciding which brand to buy since they already think their brand is the best. Similarly, con- sumers can be very involved in an ad because it is funny or interesting, yet they may not be involved in the advertised brand because they are loyal to another brand.

We are motivated to behave, process informa- tion, or engage in effortful decision-making about things that we feel are personally relevant. And we will experience considerable involvement when buying, using, or disposing of them. Think about all the behaviors that you engaged in when deciding where to go to college—obtaining applications and information packets, searching the Web and social

media, visiting campuses, weighing the information about each school, and choosing the school you would attend. You probably found the task of making this decision personally involving and were interested, enthusiastic, and perhaps over- whelmed during the process. Finally, we are also motivated to think deeply about issues pertinent to a given decision when we believe we will have to justify or explain our decisions.22

2-2 What Determines Motivation? Because motivation can affect outcomes of interest to mar- keters (like goal-relevant behaviors such as purchasing, effortful information processing, and felt involvement), it is important for marketers to understand what affects motivation. If marketers know what the drivers of con- sumer motivation are, they may be able to predict con- sumers’ motivation to think about, be involved with, and /or process information about their brand or ad and then develop marketing tactics to influence this motivation. As shown in Exhibit 2.1, motivation is affected when consum- ers regard something as (1) personally relevant; (2) consis- tent with their self-concept, values, needs, goals, emotions, and self-control processes; (3) risky; and/or (4) moderately inconsistent with their prior attitudes.

Enduring involvement Long- term interest in an offering, activity, or decision.

Situational (tempo- rary) involvement Temporary interest in an offering, activity, or decision, often caused by situational circumstances.

Cognitive involvement Interest in thinking about and learning information pertinent to an offering, an activity, or decisions.

Affective involvement Interest in expending emotional energy and evoking deep feelings about an offering, an activity, or a decision.

Response involvement Interest in certain decisions and behaviors.

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE48

2-2a PERSONAL RELEVANCE Something will be motivating to the extent it has personal relevance—that is, the extent to which it has a direct bearing on and significant implications for your life.23 For example, if you learn that your cellphone’s battery is being recalled because it can overheat and cause burns, you will probably find this issue to be personally relevant. Careers, roman- tic relationships, a car, an apartment or house, clothes, and hobbies are likely to be personally rele- vant because their consequences are significant for you. This relevance fuels your motivation to pro- cess information, make decisions, and take actions.

2-2b CONSISTENCY WITH SELF-CONCEPT

Any kind of offering (a good, a service, a person, a place) may be personally relevant to the extent that it bears on your self-concept, or your view of yourself and the way you think others view you. Self-concept helps us define who we are, and it frequently motivates our behavior.24 Note that different parts of a self-concept can be salient at differ- ent times.25 When we buy clothing, we are often making a statement about some aspect of who we are—such as a profes- sional, a student, or a sports fan. Inconsistency with self-con- cept can make you feel bad, as might happen when you try on clothing in what you thought was your size only to discover that you need a larger size. When self-concept is threatened in this way, consumers will take action to repair their bruised ego (e.g., buying a product that improves the appearance of their hair).26

Identifying with a brand and making an emotional connection with it strengthens brand loyalty and makes

those consumers less price sensitive toward that brand.27 Harley-Davidson customers, for instance, see the brand as relevant to their self-concept and are therefore loyal. Intense affective involvement with a brand may create an almost human-like experience of brand love.28 In a similar way, real- ity TV shows can be very relevant when viewers identify with the lives of the people on the show.29 However, when consumers feel threatened about their social identity, they cope by “motivated for- getting.” So if you’re a dedicated Pittsburgh Steel- ers fan and the team is not having a good season, you may very well forget the details of a marketing message linked to that team.30

2-2c VALUES Consumers are more motivated to attend to and process information when they find it relevant to

their values—abstract beliefs that guide what people regard as important or good. Thus, if you see intellectual develop- ment as very important, you are likely to be motivated to engage in behaviors that are consistent with this value, such as pursuing a college degree. Other values may include fam- ily security, protecting the environment, and feeling fit (see Exhibit 2.2). (You’ll read more about values in Chapter 14.)

2-2d NEEDS Consumers also find things personally relevant when they have a bearing on activated needs. A need is an internal state of tension experienced as a discrepancy between the current state and an ideal or desired state. For example, at certain times of the day, your stomach begins to feel uncomfortable. You realize it is time to get something to eat, and you are

Personal relevance Something that has a direct bearing on the self and has potentially significant conse- quences or implications for our lives.

Self-concept Our mental view of who we are.

Values Abstract, enduring beliefs about what is right/wrong, important, or good/bad.

Need An internal state of tension experienced when there is a dis- crepancy between the current and an ideal or desired physical or psychological state.

Exhibit 2.2 Exhibit 2.2 ▸ Values Consumers are more motivated by ads if they appeal to their values, such as organic products that advertise protecting the environment.

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CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 49

motivated to direct your behavior toward certain outcomes (such as opening the refrigerator). Eating satisfies your need and removes the tension—in this case, hunger. Once you are motivated to satisfy a particu- lar need, objects unrelated to that need seem less attractive. Thus, if you are motivated to fix your hair because you’re having a bad hair day, a product such as styling gel will seem more attractive and important than, say, popcorn.31

Which needs do consumers experi- ence? Psychologist Abraham Maslow’s theory groups needs into the five catego- ries shown in Exhibit 2.3: (1) physiological (the need for food, water, and sleep); (2) safety (the need for shelter, protection, and safety (the need for shelter, protection, and safety security); (3) social (the need for affection, friendship, and to belong); (4) egoistic (the egoistic (the egoistic need for prestige, success, accomplish- ment, and self-esteem); and (5) self-actu- alization (the need for self-fulfillment and enriching experiences).32 Within this hier- archy, lower-level needs generally must be satisfied before higher-level needs become activated. Before we can worry about pres- tige, we must meet lower-level needs for food, water, and so on.

The original Maslow’s hierarchy is an important starting point but somewhat restrictive and incomplete. First, needs are not always ordered exactly as in this hierar- chy. Some consumers might place a higher priority on buying lottery tickets than on buying necessities such as food. Also, con- sumers may be able to appreciate art and engage in cultural activities even when they feel insecure or socially excluded. People can paint on an empty stomach. Thus, lower-order needs do not always have to be fulfilled before higher-order needs become important to consumers. Second, the ordering of needs may not be consistent across individuals or cultures. In some societies, for instance, social needs and belonging may be higher in the hier- archy than personal needs. Third, the hier- archy ignores the intensity of needs and the resulting effect on motivation. Lower-or- der needs might be more pressing than higher order-needs in the short-run. Still, the hierarchy is an important idea: Individuals and cultures share certain basic needs, which are hierarchically organized, lower-order needs are gener- ally fulfilled before higher-order needs are addressed, and these needs influence consumer motivation and specific decisions.

Exhibit 2.3 Exhibit 2.3 ▸ Maslow’s Hierarchy of Needs Maslow proposed that needs can be categorized into a basic hierarchy. People Maslow proposed that needs can be categorized into a basic hierarchy. People generally fulfill lower-order needs (such as physiological needs for food, water, sleep) before they fulfill higher-order needs (such as for self-actualization).

Self- actualization

Egoistic

Social

Safety

Physiological

Exhibit 2.4 Exhibit 2.4 ▸ Categorizing Needs Needs can be categorized according to whether they are (1) social or nonsocial and (2) functional, symbolic, or hedonic in nature. This categorization method helps marketers think about consumers’ needs.

• Modeling• Modeling • Support

• Status• Status • Af�liation • Belonging• Belonging • Achievement• Achievement

• Reinforcement• Reinforcement • Sex • Play• Play

• Safety• Safety • Order • Physical well-being• Physical well-being

• Self-control• Self-control • Independence

• Sensory stimulation• Sensory stimulation • Cognitive stimulation • Novelty• Novelty

FuFunctional

SySymbolic

HeHedonic

SoSocialcial PersonalPersonal

Types of Needs Another way to categorize needs is as (1) social and per- sonal needs or as (2) functional, symbolic, and hedonic needs33 (see Exhibit 2.4).

▪ Social needs are externally directed and relate to other individuals. Fulfilling these needs thus requires the

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE50

presence or actions of other people. For example, the need for status drives our desire to have others hold us in high regard; the need for support drives us to have others relieve us of our burdens; the need for mod- els reflects a wish to have others show us how to behave. We may be motivated to buy products like Hallmark cards or to use social media such as Facebook because they help us achieve a need for affiliation. Consumers may even spend on illegal products such as drugs to satisfy a higher-level need like becoming part of a group.34 Other products may be val- ued because they are consistent with our need for status or our need to be unique.

▪ Personal needs are those for which achieve- ment is not based on other people. Our needs for sleep, novelty, control, and understanding, which involve only ourselves, can affect the usage of certain goods and services (see Exhibit 2.5). We might purchase the same brand repeatedly to maintain con- sistency in our world—or we might buy something different to fulfill a need for variety.

▪ Functional needs may be social or nonso- cial. Functional needs motivate the search for products that solve consumption-related problems. For example, you might consider buying a product like a car equipped with a backup camera because it appeals to your safety needs (a functional, nonsocial need). For mothers with young children, hiring a nanny would solve the need for support (a functional, social need).

▪ Symbolic needs affect how we perceive our- selves and how others perceive us. Achieve- ment, independence, and self-control are symbolic needs because they are connected with our sense of self. Similarly, our need for uniqueness is symbolic because it drives con- sumption decisions about how we express our identity.35 The need to avoid rejection and

the need for achievement, status, affiliation, and belonging are symbolic because they reflect our social position or role. For example, some consumers wear stylish Christian Louboutin shoes—with distinctive red soles—to express their social standing.36

▪ Hedonic needs include needs for sensory stimulation, cognitive stimulation, and novelty (nonsocial hedonic needs) and needs for reinforcement, sex, and play (social hedonic needs). These hedonic needs reflect our inherent desires for sensory pleasure. In fact, consumers exposed to sexual marketing cues tend to buy sense-rewarding products, like snacks, more quickly than when such cues are not present.37 If the desire to satisfy hedonic needs is intense enough, it can inspire fantasizing about specific goods, simulta- neously pleasurable and discomforting.38 Consumers in India may go to luxury shopping areas like Mum- bai’s Palladium Mall for the eye-catching ambiance and the upscale retail experience.39

▪ Needs for cognition and stimulation also affect moti- vation and behavior. Consumers want to understand the world themselves and see some structure in it. Consumers with a high need for cognition40 (a need for understanding and mental stimulation) enjoy being involved in mentally taxing activities like read- ing and deeply processing information when mak- ing decisions. People with a low need for cognition may prefer activities that require less thought, such as watching TV, and are less likely to actively process information during decision-making. In addition, consumers often need other kinds of stimulation. Those with a high optimum stimulation level enjoy a lot of sensory stimulation and tend to be involved in shopping and seeking brand information.41 They also show heightened involvement in ads. Consum- ers with thrill-seeking tendencies enjoy activities like

Consumers respond to ads that resonate with their specific needs, Consumers respond to ads that resonate with their specific needs, such as non-social needs, like this ad for ice cream that targets pleasure and uniqueness.

▪

Exhibit 2.5 Exhibit 2.5 ▸ Needs

Functional need Need that motivates the search for offerings that solve consump- tion-related problems.

Symbolic need Need that relates to the meaning of our consumption behaviors to ourselves and to others. That is, how we perceive ourselves, how we are perceived by others, how we relate to others, and the esteem in which we are held by others.

Hedonic need Need that relates to sensory pleasure.

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CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 51

skydiving or white-water rafting. In contrast, con- sumers who feel overstimulated want to get away from people, noise, and demands—a desire revealed in the popularity of vacations at nature retreats or monasteries.

Characteristics of Needs All of the preceding needs share several characteristics:

▪ Needs can be internally or externally activated. Although many needs are internally activated, some needs can be externally cued. Smelling pizza cooking in the apartment next door may, for example, affect your perceived need for food.

▪ Need satisfaction is dynamic. Needs are never per- manently satisfied; satisfaction is only temporary. Clearly, eating once will not satisfy our hunger for- ever. Also, as soon as one need is satisfied, other needs come to the foreground. After we have eaten a meal, we might feel the need to be with others (the need for affiliation) or to work on a personal, creative project (self-actualization). Thus, needs are dynamic : Daily life is a constant process of need fulfillment.

▪ Needs exist in a hierarchy. Although several needs may be activated at any one time, some assume more importance than others. You may experience a need to eat during an exam, but your need for achievement may assume a higher priority—so you stay to finish the test. Despite this hierarchy, many needs may be activated simultaneously and influence your acqui- sition, usage, and disposition behaviors. Thus, your decision to plan your next holiday with friends over dinner may be driven by a combination of needs for stimulation, companionship, and food.

▪ Needs can conflict. There are various types of need conflicts.

▪ An approach-avoidance conflict occurs when the consumer wants both to engage in the behavior and to avoid it. Teenagers may experience an approach-avoidance conflict in deciding whether to smoke cigarettes. Although they may believe that others will think they are cool for smoking (consistent with the need to belong and affiliate), they also know that smoking is bad for them (incompatible with the need for safety).

▪ An approach-approach conflict occurs when the consumer must choose between two or more equally desirable options that fulfill different needs. A consumer who is invited to a career-night func- tion (consistent with achievement needs) might experience an approach-approach

conflict if he is invited to see a basketball game with friends (consistent with affiliation and stim- ulation needs) on the same evening. This person will experience conflict if he views both options as equally desirable.

▪ An avoidance-avoidance conflict occurs when the consumer must choose between two equally undesirable options, such as going home alone right after a late meeting (not satisfying a need for safety) or waiting another hour until a friend can drive her home (not satisfying a need for conve- nience). Conflict occurs when neither option is desirable.

Identifying Needs Because needs influence motivation and its effects, mar- keters are keenly interested in identifying and measuring them. However, consumers are often unaware of their needs and cannot readily communicate them to others, even to skilled researchers. Inferring needs from consum- ers’ behaviors is also challenging because a given need might not be linked to a specific behavior. In other words, the same need (e.g., affiliation) can be exhibited in various and diverse behaviors (visiting friends, going to the gym), and the same behavior (going to the gym) can reflect vari- ous needs (affiliation, achievement). And even when con- sumers fulfill a need for affiliation by choosing a brand that represents the group with which they want to affiliate, they can also fulfill the need to express their individual- ity by selecting specific colors or styles that differentiate them from the group.42 Moreover, it is sometimes hard to distinguish satisfaction of different needs: Satisfying one need or craving (such as feeling hungry) can lead to the feeling that other needs are being satisfied (such as the need for distinctiveness).43

As another example, consider the activity of shopping. The shopping environment itself may activate certain

needs. Thus, one study found that when women shop in drugstores, they are mostly seeking infor- mation about items that provide peace of mind (satisfying needs for safety and well-being). When they shop in club stores like Costco, they are mostly seeking adventure and entertainment (satisfying the need for stimulation).44 There are cross-cultural differences in the importance of needs even for the same basic product. For exam- ple, some research indicates that U.S. consumers use toothpaste primarily for its cavity-reducing capabilities (a functional need). In contrast, con- sumers in England and some French-speak- ing areas of Canada use toothpaste primarily to freshen breath (a hedonic need). French women drink mineral water so they will look better (a symbolic need), whereas German consumers drink it for its health powers (a functional need).45

Approach- avoidance conflict An inner struggle about acquiring or consuming an offering that fulfills one need but fails to fulfill another.

Approach- approach conflict An inner struggle about which offering to acquire when each can satisfy an important but different need.

Avoidance- avoidance conflict An inner struggle about which offering to acquire when neither can satisfy an import- ant but different need.

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE52

Given these challenges, marketers sometimes use so-called “indirect” research techniques to uncover con- sumers’ needs.46 Whereas direct techniques ask people to openly report on their needs, indirect techniques ask for something else and then the researcher tries to infer (indi- rectly) what the needs of the consumer are. One indirect technique is to ask consumers to interpret a set of rela- tively ambiguous stimuli such as cartoons, word associa- tions, incomplete sentences, and incomplete stories. Using Exhibit 2.6, one consumer might reveal a need for esteem by interpreting the man in the cartoon as thinking, “My friends will think I’m really cool for riding in this car!” Another might reveal needs for affiliation by filling in the cartoon with “I could take all my friends for rides with me.”

2-2e GOALS Goals are also an important influence on personal rel- evance and motivation.47 A goal is a particular end state or outcome that a person would like to achieve. Goals

are more specific and concrete than needs. For instance, you might have the goals to lose weight before the sum- mer season starts, or to save a particular amount of money to buy a new car, or to study every day for an upcoming exam (see Exhibit 2.7).

Goal Setting and Goal Pursuit Consumers set goals that they try to pursue over time. Goal setting comprises what to pursue (such as losing weight or saving money) and at what level (such as losing four pounds or saving $500).48 As shown in Exhibit 2.8, activ- ities during goal pursuit follow a certain sequence. After setting a goal (losing four pounds in one month), consum-

ers are motivated to form a goal intention, plan to take action (seek out low-fat foods, join a gym), implement and control the action (through diet and exercise), and evaluate success or failure in attaining the goal (check weight each week).

Consumers use what they learn from achieving or not achieving the goal as feedback information for future goal

Goal Outcome that we would like to achieve.

Exhibit 2.6 Exhibit 2.6 ▸ Uncovering Consumers’ Needs Marketers sometimes uncover consumers’ needs using indirect techniques, such as asking consum- ers to describe ambiguous stimuli like cartoon drawings, sentence completion tasks, and tell-a-story tasks. The idea is that consumers will project their needs, wishes, and fantasies onto these ambig- uous stimuli, and that this provides more accurate and detailed insight into consumers needs than when asking them directly to report on those.

B. Sentence completion: Fill in the blanks with the �rst word that comes to your mind:

1. The perfect gift

2. The gifts I still treasure

3. If I give a gift to myself

SURVEYSURVEY

A. Cartoon drawing: What do you think the people in this cartoon are thinking?

C. Tell a story: Tell a story about the gift being unwrapped in this picture.

CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 53

setting and pursuit. Consumer behavior is a continuous cycle of setting goals, pursuing them, determining suc- cess and failure of goal pursuit, and adapting the goals, all with implications for marketing.49 When consumers fail to achieve everyday subgoals (such as not recycling a newspaper), they may be less committed to long-term end-goals (such as sustaining the environment) and have weaker future intentions to act in ways that enhance qual- ity of life.50 On the other hand, achieving an intermediate goal, such as losing two pounds of body weight in the first two weeks of a diet, might lead consumers to set higher goals.51

Forming the intention to implement a plan for goal achievement can be helpful. In fact, consumers are more likely to actually achieve a goal when they have a fixed rather than a flexible plan for goal pursuit, because it pro- vides a definite set of steps to take in reaching the goal.52 Both the goal and the plan need to be realistic. Consumers who have a plan may feel demotivated in their pursuit if they believe they are far from their goal, but feel motivated when a recent action toward goal attainment was suc- cessful.53 When consumers form implementation inten- tions for multiple goals, they anticipate greater difficulty

because completing one step in the process means post- poning or ignoring steps toward other goals—which has the effect of lowering goal commitment.54 Gaining psychological distance from a task (by the simple act of leaning back in your chair, for instance) can reduce the perceived complexity and difficulty, smoothing the way for goal pursuit.55

Also, consumers are interested in different things depending on whether they are far from or close to the goal. When they are far from the goal, consumers are concerned about whether they can achieve it. Consum- ers will be motivated at this stage by assurances that they can achieve their goal. When they are close to the goal, they are concerned about when they will achieve it. In fact, the worst time to be interrupted in goal pursuit is right before a goal is being attained.56 At this stage, consumers are motivated to pursue the goal by being informed that what they are doing is working.57 Consumers are more likely to continue working toward a goal if they set a target range (such as to lose between two and four pounds this week) rather than a single, very specific goal (such as to lose three pounds this week). This is because consumers perceive the lower number as being more attainable, while the higher number represents a challenge that, if achieved, will lead to a sense of accomplishment.58

Moreover, motivation is increased when consumers feel that they are making progress toward a goal by having their attention directed to whichever is better: What they have accomplished so far or what they have remaining to accomplish to attain the goal.59 When consumers have made little progress toward a goal, they are more moti- vated when there are a wide variety of ways to achieve it. Conversely, after they have made considerable progress toward a goal, consumers are more motivated when there is less variety in the ways to achieve it.60 Finally, the abil- ity to set goals can affect consumer satisfaction with the outcome. If poor performers are reminded that they set and then met their own low goals, these consumers are as satisfied as better performers.61

Goals and Effort Consumers vary in how much effort they exert to achieve a goal. You might want to save a large sum of money to spend on a sea cruise in the summer or on a skiing holiday in Colorado in the winter. Furthermore, if you perceive that you have failed in achieving a goal (such as saving a certain amount of money), you will be less motivated and, subsequently, may perform even more poorly in relation to that goal.62 The more easily consumers can visualize their goals, the more motivated and committed they are to putting in efforts toward those goals.63 Some research also shows that the amount of effort people exert to achieve a goal depends not only on how important the goal is to them but also on how well they are doing in achieving other, potentially unrelated, goals. For example, if you are making progress toward a goal of getting good grades, you

Exhibit 2.7 Exhibit 2.7 ▸ Consumer Goals Consumers are more likely to be involved in ads when brands are relevant to consumers’ goals (e.g., losing weight).

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PART TWOPART TWOP | THE PSYCHOLOGICAL CORE54

may also choose to pursue a different goal, such as start- ing a new exercise routine.64

The amount of effort put into achieving a goal also depends on whether consumers have feedback demon- strating their progress toward the goal. You will tend to stick with an exercise routine, for instance, if you notice improvements in your strength and endurance.65 If you succeed in achieving a recurring goal (such as earning a free travel ticket with frequent-flyer points), you will increase your effort to reach the same goal in the future— if the goal remains challenging.66 Yet when you are opti- mistic about your future pursuit of a goal, you will be more motivated to do something when you see your action as a commitment to the goal, not as making progress toward the goal.67 Importantly, people often strive to attain multiple goals, such as trying to lose weight, save money, trying to play an instrument, achieve at work, and be a good friend, parent, and spouse. When they are close to attaining one of their goals, people tend to reduce effort on pursuing that goal (“coasting to the finish”) and redirect it to other

goals. Thus, losing the first three pounds of weight may go faster than losing the last pound, not just because it is harder, but because the consumer’s confidence in losing the final pound has increased, and therefore attention already shifted to another goal, such as saving money.

Types of Goals Although goals (i.e., weight loss) are more concrete than needs (i.e., safety), they can vary in being more concrete or abstract. Some goals are concrete. They are specific to a given behavior or action and determined by the situation at hand. If you are tired, one of your goals for the evening might be to go to bed before 9:00 PM. If you are often late for a particular class, one of your goals might be to arrive at least five minutes before the start. Other goals are more abstract and endure over a long period, such as being a good student or looking beautiful.68

Goals also differ in whether they are promotion-focused or prevention-focused.69 With promotion-focused goals, consumers are motivated to act in ways to achieve positive

Exhibit 2.8 ▸ Goal Setting and Pursuit in Consumer Behavior The process of setting and pursuing goals is circular: How a person feels about achieving or not achieving a goal affects what new goals are being set and why. This process affects the individual’s motivation to initiate or continue behaviors relevant to the goal that has been set, and so forth.

Source: Richard P. Bagozzi and Utpal Dholakia, “Goal Setting and Goal Striving in Consumer Behavior,” Journal of Marketing 63, 1999, p. 20. Reprinted with permission of American Marketing Association.

Action Planning

“How can I achieve my goal?” (“When, where, how, and how long should I act?”)

Goal Attainment/ Failure

“To what degree have I achieved/ failed to achievefailed to achieve my goal?”

Formation of a Goal Intention

“What is it for which I strive?”

Action Initiation and Control

“How well have I enacted my plans?” “Am I making progress toward my goal?” “Are there adjust- ments that need to be made?” “Is the goal still important to me?”

Goal Setting

“What are the goals I can pursue, and why do I want to pursue them?”

Feedback Reactions “How do I feel about achieving/not achieving my goal?”

CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 55

outcomes; that is, they focus on hopes, wants, and accom- plishments. With prevention-focused goals, consumers are motivated to act in ways that avoid negative outcomes; they focus on responsibilities, safety, and guarding against risks. However, only consumers who believe that the world is changeable—that their actions make a differ- ence—will be influenced by messages that are framed by a promotion or prevention focus.70

To illustrate, if you were going to buy a new car, would you focus on how much fun you would have driving it (promotion-focused goal) or on how much you would have to pay for insurance (prevention-focused goal)? Alternatively, if you were trying to diet, would you focus on how good you would feel if you avoided that slice of cake or how bad you would feel if you ate it?71 Sometimes consumers engage in behaviors not to express their pref-consumers engage in behaviors not to express their pref-consumers engage in behaviors not to express their pref erences, goals, and needs, but rather to learn these. Then, they may plan a vacation, for instance, search for infor- mation about it, and make a destination choice to explore and express their preferences.72 There are systematic con- nections between the consumers’ mind and body. When consumers have a highly active goal, such as attaining power, they may actually salivate over material rewards related to that goal—a physical dimension to their “hun- ger” for what they desire.73

2-2f GOALS AND EMOTIONS The extent to which we are successful or unsuccessful in attaining our goals determines how we feel: We feel good when we make sufficient progress toward goal attain- ment or have attained our goals (saved enough to buy a new bike) and feel bad when we make insufficient prog- ress toward goal attainment or have failed to attain our goals (“spent too much on clothing again”). According to appraisal theory, our emotions are determined by how we think about or “appraise” a situation or outcome. As Exhibit 2.9 shows, appraisal theory proposes that we feel positive emotions like joy and pride when an outcome is consistent with our goals.74 Appraisal theory also posits other appraisal dimensions that affect how we feel—dimensions like nor- mative/moral compatibility (is the outcome rele- vant to what is expected of us or what we should do?), certainty (is the outcome certain to occur or not?), and agency (was I the cause of the out- come, did someone else or the environment cause it, or did it happen by chance?).

In some instances, actions and outcomes will result in specific emotions rather than in gen- erally feeling good or bad. If a product doesn’t work, consumers might feel guilty, angry, sad, or frustrated, depending on whether the outcome is positive or negative, and who or what is seen as being responsible for the product not work- ing. To illustrate Exhibit 2.9, consumers might

feel proud when a good outcome happens, that they are responsible for, and when the outcome is consistent with a standard of excellence or a desirable goal. In contrast, consumers feel guilty when a bad outcome happens, that they are responsible for, and when the outcome is incon- sistent with a standard of excellence or a goal. Conversely, consumers may feel sad when a negative outcome hap- pens that is perceived to be caused by the situation or by bad luck.75

Emotions can have wide-ranging long- and short-term consequences for consumer behavior, and these effects are specific to the particular emotion that is being expe- rienced. For example, when consumers feel guilty for hav- ing done something bad, they tend to try to compensate for this in other domains, for instance, by buying self- improvement products.76 On the other hand, when con- sumers who face a financial decision feel sad, they are more likely to make an impatient choice that yields short- term gain but is less rewarding in the long-term, just for the instant gratification.77 When consumers feel rejected after an emotional event such as a romantic breakup, they tend to make riskier financial decisions.78 Also, when con- sumers feel rejected, they are more likely to choose status- symbol brands to differentiate themselves from the group.79 Consumers driven by envy will pay more for a product because others who are socially admired have it (benign envy) or pay more for a product because others who are socially admired do not have it (malicious envy).80

The positive and negative emotions, pleasure and dis- pleasure, experienced during or after consuming prod- ucts and services can change over time. When consumers repeat a consumption experience, they tend to like it less over time, a process known as satiation. However, when consumers distinguish between the negative and posi- tive emotions they feel during the period of repetition, satiation takes place more slowly due to this cognitive reappraisal.81 Because emotions play a powerful role in

attitudes, choices, and satisfaction, later chapters will return to the role of appraisals in consumers’ emotions.82

2-2g SELF-CONTROL AND GOAL CONFLICT

Consumers use self-control to regulate their feelings, thoughts, and behavior in line with their long-term goals.83 Self-control conflicts arise when we face decisions about actions related to goals that are in conflict. The var- ious possible conflicts (such as approach- approach: indulge in food today but also be slim tomorrow) are described earlier in this chapter. The mental effort involved in making such a decision between which goal to pursue may result in ego depletion, which means the consumer’s ability to control his or her behavior

Appraisal theory A theory of emotion that proposes that emotions are based on an individual’s assess- ment of a situation or an outcome and its relevance to his or her goals.

Self-control Process consumers use to regu- late feelings, thoughts, and behavior in line with long-term goals, rather than to pursue short-term goals.

Ego depletion Out- come of decision-mak- ing effort that results in mental resources being exhausted.

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE56

is impaired. In other words, such challenges deplete a consumer’s mental energy, which in turn reduces deci- sion quality.84

Suppose one of your goals is to eat healthy and another is to enjoy tasty, not-so-healthy treats. Confronted with the choice of candy or yogurt, you may choose the yogurt in pursuit of your health goal. A little later, when choos- ing between potato chips and brown rice, your self-con- trol might crumble and the chips would win because of ego depletion. Time plays a role in your self-control: If you repeatedly face the same choice (candy or yogurt), and you first choose yogurt, this initial decision rein- forces your self-control and you are more likely to choose yogurt later.85 Thus, on the one hand, you can train to gain self-control. On the other hand, you may indulge today

because you overconfidently believe you will not indulge in the future when faced with similar choices.86

The Challenge of Information Processing Conflicts like these present a challenge to information processing: When evaluating the nutritional value of a meal that combines opposites such as healthy foods and indulgent treats, consumers tend to underestimate the overall calorie content.87 It turns out that consumers on a diet have better self-control when they have the nutritional information to understand the potential cost of indulg- ing.88 Faced with an opportunity to indulge, consumers will think back on past behavior to determine whether they have made sufficient progress toward a self-regula- tory goal to justify indulgence on this occasion. Impulsive

Exhibit 2.9 ▸ Appraisal Theory Emotions are experienced based on how consumers appraise a situation or outcome in the light of their goals, needs, and self-concept.

Source: Based on Allison Johnson and David Stewart, “A Re-Appraisal of the Role of Emotion in Consumer Behavior: Traditional and Contemporary Approaches,” Review of Marketing Research, vol. 1 (New York: M.E. Sharpe, 2005), pp. 3–34.

Good for Me (consistent with my goals)

SELF

CERTAINCAUSED BY…

Bad for Me (inconsistent with my goals)

Relevant to what I should do or should have donePride

Hope Excitement

Guilt Shame

Irrelevant to what I should do or should have done

Fear Anxiety

Happiness Hope Excitement

Distress Fear Anxiety

OTHER

Relevant to what I should do or should have done

Admiration Love

Hope Excitement

Contempt Disgust Envy

Irrelevant to what I should do or should have done

Fear Anxiety

Gratitude Love

Hope Excitement

Anger Enraged Resentful

Fear Anxiety

ENVIRONMENT

Relevant to what I should do or should have done

NOT SURE

Relevant to what I should do or should have done

Glad Delighted

Hope Excitement

Pity Fear Anxiety

Happiness Joy

Hope Excitement

Sadness Miserable

Fear Anxiety

Satis ed Relieved Delighted

Hope Excitement Interest Challenge

Disappointed Threatened Frustrated Regret

Irrelevant to what I should do or should have done

Fear Anxiety

Pleased Delighted Relieved

Hope Excitement

Miserable Bored

Fear Anxiety

UNCERTAIN CERTAIN UNCERTAIN

CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 57

consumers tend to distort their memories of progress toward the goal, thereby giving themselves permission to indulge.89 Also, when important goals conflict, consum- ers may change their minds more than once as they face choices that would satisfy competing goals, because the goal that was initially ignored becomes stronger.90

Consumers seeking to exert self-control are caught in a psychological conflict between desire, which is a short- term, hedonic force (we want that candy NOW, even if we feel regret later) and willpower, which is a long-term, more utilitarian force (we think and act to stop ourselves from having that candy now, to have a long-term healthy lifestyle).91 There is an interesting connection between the mind and the body in self-control. If you anticipate you will require willpower to withstand some immediate desires, you may “firm your muscles.” In fact, physically firming one’s muscles may even carry through in firming willpower to resist tempting actions (eating candy now), when con- sumers perceive the long-term benefits of resistance.92

Another approach that strengthens self-control is to empower yourself to refuse, saying “I don’t eat this” don’t eat this” don’t instead of “I can’t eat this,” when pursuing an internal goal can’t eat this,” when pursuing an internal goal can’t such as eating healthy.93 The number of tasks to be com- pleted has an effect on self-control, as well. Even when consumers are highly motivated, they may deplete their resources while completing one task and therefore have lower self-control in a subsequent, unexpected task.94

People more readily eat multiple small slices of cake, without experiencing a self-control conflict, than when eating one large slice.95 Therefore, a further approach that people can use to resist tempta- tions and retain self-control is by “bundling the costs.”96 That is, rather than viewing the eating of an ice-cream cone as a single, isolated indulgent act, which is small and easy to justify (“It is sum- mer, it is my favorite taste, and I deserve it”), it can help to bundle this act together with eating the slice of pie earlier in the day, and drinking the soda later. Likewise, self-control in spending can be helped by keeping large denominations. People tend not to spend when they perceive the purchase as one large amount ($20) rather than as many smaller amounts (10 purchases of $2). In fact, when consciously exerting self-control over their spending, consumers prefer to receive money in large-denomination bills rather than smaller bills.97

The Challenge of Emotion Regulation Consumers not only experience emotions in response to certain behaviors that can turn out right or wrong to them (and others), they also engage in consumer behaviors to experience positive emotions and avoid experiencing neg- ative emotions. They thus actively regulate their moods or emotions.

Consumers frequently have goals about how they want to feel or do not want to feel. If you feel depressed, you might have a goal of trying to make yourself feel better,

perhaps by going to the movies or eating an ice cream cone. These goals explain why consumers who are feeling sad may think that “retail therapy” will cheer them up. In fact, this may reduce sadness by allowing them to feel some control over their environment.98 Feeling sad can lead you to pay more for new items and to eat less healthy food than usual, without conscious awareness of what you are doing.99 Yet if you’re exposed to photos or descriptions of indulgent foods when you feel sad, you will be mindful of the negative consequences of unhealthy eating and not over-indulge to make yourself feel better.100 Consumers also try to regulate their emotions when planning their consumption activities for maximal pleasure. For exam- ple, when on vacation, someone may plan what to do and in what order, to maximize the overall pleasure.101

Consumers who actively pursue a self-control goal may lapse when the offering they want (candy, for instance) is far away, in distance or in time. Then, they focus more on the short-term pleasurable experience (good taste) and less on the long-term cost and unpleasurable experience (gaining weight, health concerns). If they cannot access product information from external sources (such as a nutrition label) and instead rely on memory, consum- ers are also more likely to lose self-control and consume because they focus on the pleasure.102

Although self-control can help consumers progress toward long-term goals, and thus stimulate positive emo- tions such as joy and pride, exerting it can be associated with negative feelings such as anger or regret.103 Then,

firming one’s muscles may help willpower, and exerting willpower may firm one’s muscles and might carry over into feeling angry. These con- nections between the mind (feeling angry, exert- ing willpower) and body (firming one’s muscles) are another example of the embodiment of the mind, as discussed earlier.104

Embodiment Connec- tion between mind and body that influences and expresses con- sumer self-control and behavior.

An understanding of consumers’ self-concept, needs, goals, and self-control processes is important in many areas of marketing strategy and tactics. For example, marketers frequently use consumer needs, goals, or val- ues to segment and target specific markets. Targeting the growing segment of vegetarian consumers, Earth- bound Farm offers organically grown fruits and vege- tables, as well as premade salads mixed with beans and whole grains for convenience and added nutrition.105 In particular, marketers should keep consumer self-con- cept, needs, goals, and self-control in mind when plan- ning for communications, product development and positioning, and influencing specific behaviors.

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE58

2-2h PERCEIVED RISK Exhibit 2.1 shows that another factor of consumers’ motivation to process information about a product or

brand is perceived risk: The extent to which the consumer anticipates negative consequences of buying, using, or disposing of an offering to emerge and positive consequences to not emerge.115 There are thus two components to perceived risk, namely, the anticipation of outcomes and how certain or uncertain these are (uncertainty component), and the negativ- ity of the outcomes and how severe these are (consequences component). Perceived risk is

high when negative outcomes are likely or positive out- comes are unlikely. Consumers are more likely to pay

Enhance Motivation to Process Communications

Marketers can enhance consumers’ motivation to pro- cess and act on promotional material by making the information as personally relevant as possible and appealing to consumers’ self-concepts, values, needs, or goals. Similarly, salespeople can explore consum- ers’ underlying reasons for making a purchase and tailor sales pitches to those reasons. In advertising, messages can use a narrative structure to stimulate narrative processing, helping consumers connect the advertised brand with their self-concept.106 Consumers tend to think more about messages that match their self-concept.107 Thus, if you see yourself as being extro- verted, you are likely to be stimulated to process an ad if it portrays a brand appropriate for extroverted people.

Consumers who value personal growth or achieve- ment will find an ad or marketing message more person- ally relevant if it appeals to those values. For instance, charity: Water, a nonprofit organization dedicated to bringing safe drinking water to developing nations, appeals to achievement by showing how contribu- tors can make a difference. The charity has more than 300,000 Facebook “likes” and more than 1.5 million Twitter followers. The founder explains: “There are solu- tions, and we can show people those solutions. It’s a story full of hope and redemption.”108

Product Development and Positioning

Marketers can develop goods or services with features and benefits to help consumers achieve their self-con- trol goals. For instance, Weight Watchers and other weight-loss organizations offer tips and tools for avoid- ing unhealthy eating (self-control goal) as well as feed- back on progress toward reaching the goal. Bundled offerings, in particular, may allow consumers to achieve more than one goal or satisfy more than one need in a single consumption episode.109 At the restaurant chain Saladworks, a diverse menu of meal-sized salads with fresh, tasty ingredients allows consumers to achieve healthy-eating goals while also satisfying hedonic needs and cravings for variety.110

Sometimes marketers try to appeal to con- sumers’ unrecognized needs or goals. Franklin Ramsey did this with his idea for a trash can that secures liner bags inside. He took his idea to Edison Nation, which helped get the new product patented and—branded as Pressix— helped market it to consumers who need a convenient way to keep trash bags in place.111

In general, a new good or service is likely to be bet- ter suited to consumers’ needs—and more valued—when

consumers are actively involved in its development.112consumers are actively involved in its development.112

This co-creation process is increasingly important for marketing success and customer relationship building. Even then, marketers launching a new product might want to target consumers with promotion-focused goals. Why? Buying a new product may bring new benefits, but often with potential costs (money and uncertainty) in making the change. Prevention-focused consum- ers tend to preserve the status quo by staying with the option they know, making them less receptive to new products.113 Companies can also improve offerings to help consumers make decisions involving conflicting goals or needs. The frozen yogurt chain TCBY now offers self-serve counters where customers dish out their own desserts, choose toppings, and pay by the ounce. “If calo- ries are an issue or budget is an issue, [customers are] in control,” explains an executive. TCBY has now developed a vending machine that allows consumers to choose their desired size, flavor, and topping, and have the finished dessert in hand within 30 seconds.114

Encouraging Specific Behaviors

Marketers can also use the mind-body connection to influence behavior in support of purchase deci- sions. For example, a real estate agent who wants to emphasize the spacious, open floor-plan of a home could use physical movements such as turning his or her head all the way from left to right and gesturing across the space with his or her arms, encouraging prospective buyers to do the same. Similarly, a fur- niture salesperson can have consumers sit on a sofa in the store and imagine relaxing on it at home. Such physical actions can help move consumers closer toward purchase decisions.

Perceived risk The extent to which the consumer anticipates negative consequences of an action, for example, buying, using, or disposing of an offering, to emerge and positive consequences to not emerge.

CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 59

attention to and carefully process marketing communications when perceived risk is high (see Exhibit 2.10). As perceived risk increases, consumers tend to collect more information and evaluate it carefully.

Perceived risk can be associated with any product or service, but it tends to be higher (1) when the offering is new; (2) when the offer- ing has a high price; (3) when the offering is technologically complex; (4) when brands differ fairly substantially in quality and might cause the consumer to make an inferior choice; (5) when the consumer has little confidence or experience in evaluating the offering; (6) when the opinions of others are important, and the consumer is likely to be judged on the basis of the acquisition, usage, or disposition decision, and generally (7) when little information is available about the offering.116

Perceptions of risk vary across cultural groups. Also, perceived risk is typically higher when consumers have little expertise in a par- ticular domain and are aware of this, such as

travelers who purchase goods or services in a foreign country.117 In addition, risk perceptions vary within a culture.118

Types of Perceived Risk It is useful to distinguish six types of risk that consumers can perceive:119

▪ Performance risk reflects uncertainty about whether the product or service will perform as expected. Consumer purchases of certified pre-owned vehi- cles are hitting record levels because buyers know that these cars, SUVs, and pickups have been profes- sionally checked and come with the reassurance of a warranty.120

▪ Financial risk is higher if an offering is expensive, such as the cost of buying a home. When consumers perceive high product-category risk due to high price levels, research suggests that their buying decisions can be improved if they research offerings using web- sites such as epinions.com.121

▪ Physical (or safety) risk refers to the potential harm a product or service might pose to one’s safety. Many consumer decisions are driven by a motivation to avoid physical risk. For example, consumers often

shy away from buying perishable groceries that have passed the stated expiration date because they are afraid of getting sick from eating spoiled food.122

▪ Social risk is the potential harm to one’s social standing that may arise from buying, using, or disposing of an offering. According to research, antismoking ad messages that conveyed the severe social disapproval risk of smoking cigarettes were more effective in influencing teens’ intentions not to smoke than ad messages stressing the health conse- quences of smoking, such as disease.123

▪ Psychological risk reflects consumers’ con- cern about the extent to which a product or ser- vice fits with the way they perceive themselves. To illustrate, if you see yourself as an environ- mentalist, buying disposable diapers may be psy- chologically risky.

▪ Time risk reflects uncertainties about the length of time that must be invested in buying, using, or disposing of the product or service. Time risk may be high if the offering involves considerable time commitment, if learning to use it is a lengthy process, or if it entails a long commitment period (such as a subscription to cable television services that require a two-year contract).

Performance risk The possibility that the offering will not perform as well as hoped or expected.

Financial risk The extent to which buying, using, or disposing of an offering is perceived to have the potential to create financial harm.

Physical (or safety) risk The extent to which risk The extent to which risk buying, using, or disposing of an offering is perceived to have the potential to create physical harm or harm one’s safety.

Social risk The extent Social risk The extent Social risk to which buying, using, or disposing of an offer-or disposing of an offer-or disposing of an offer ing is perceived to have the potential to do harm to one’s social standing.

Psychological risk The extent to which buy- ing, using, or disposing of an offering is per-of an offering is per-of an offering is per ceived to have the poten- tial to harm one’s sense of self and thus create negative emotions.

Time risk The extent to which buying, using, or disposing of the offering is perceived to have the potential to lead to loss of time.

Exhibit 2.10 Exhibit 2.10 ▸ Perceived Risk Consumer products and services are often touted as ways to avoid risky outcomes.

S ou

rc e:

C ar

bo ni

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE60

Risk and Involvement Products and services vary in the extent to which they are personally relevant or involving. Perceived risk is a key determinant of this. Consumers are likely to be more involved in purchasing products such as homes, sports attire, life insurance, and computers than in purchasing picture frames, canned soup, or coffee because the former generate higher levels of performance, financial, safety, social, psychological, or time risk and can therefore have more significant personal consequences.

High risk is generally uncomfortable for consumers. As a result, they are usually motivated to engage in any num- ber of behaviors and information-processing activities to reduce or resolve risk. To reduce the uncertainty compo- nent of risk, consumers can collect additional informa- tion by consulting social media (“What do my Facebook friends say?”), conducting online research, reading news articles, engaging in comparative shopping, talking to friends or sales specialists, or consulting experts. Con- sumers also try to reduce the uncertainty component of perceived risk by purchasing famous brands and by remaining brand loyal.

In addition, consumers attempt to reduce the con- sequence component of perceived risk through various strategies. Some consumers may employ a simple decision rule that results in a safer choice. For example, someone might buy the most expensive offering or choose a heavily advertised brand in the belief that this brand is of higher quality than other brands. When decision risk is high, consumers may be willing to consider less conventional alternatives, particularly when they do not trust tradi- tional products or practices. For example, consumers who believe that conventional medical treatments are too tech- nological or dehumanizing may be open to other healing alternatives.124

2-2i INCONSISTENCY WITH ATTITUDES A final factor affecting motivation, shown in Exhibit 2.1, is the extent to which new information is con- sistent with previously acquired knowledge or atti- tudes. We tend to be motivated to process messages that are moderately inconsistent with our knowledge or attitudes because such messages are perceived as moderately threatening or uncomfortable. Therefore, we try to eliminate or at least understand this incon- sistency.129 For example, if a consumer sees a car ad that mentions slightly negative information about the brand she currently owns—such as the brand’s getting lower gas mileage than a competitor—she will want to process the information to understand and perhaps resolve the uncomfortable feeling.

On the other hand, consumers are less motivated to process information that is highly inconsistent with their prior attitudes. Thus, for instance, someone who is loyal to the Hertz brand would not be motivated to process information from a comparative ad suggesting that Hertz is bad or that other brands are better. The consumer would simply reject the other brands as non- viable options.

2-3 Consumer Ability: Resources to Act Motivation may not result in action unless a consumer has the ability to process infor- mation, make decisions, or engage in behav- iors. Ability is defined as the extent to which

When perceived risk is high, marketers can either reduce uncertainty or reduce the perceived consequences of failure. Darn Tough Vermont, which markets highly dura- ble, premium-quality athletic socks priced at $20 per pair, reduces both financial and performance risk by offering a lifetime guarantee: If a sock ever wears out, the buyer gets a new pair for free.125 When risk is low, consumers are less motivated to think about the brand or product and its potential consequences. Marketers sometimes need to enhance risk perceptions to make their messages more compelling. For instance, the Scottish government’s alcohol moderation campaign, which ran online, in print, and on radio, highlighted negative effects of excessive

drinking with the slogan “Every time you have a drink, it adds up to more than you think.”126

Interestingly, consumers do not always see a partic- ular action as risky, even when it is. For example, many people fail to realize the risks of unprotected sex, a sit- uation that explains why condom sales are not higher than they are. Despite the health benefits of using sun- screen, some consumers don’t fully appreciate the risk they take when suffering a sunburn. This is why New Zealand, which leads the world in melanoma skin can- cer mortality rates, has created a Sun Protection Alert graphic for media use in reminding consumers to use sunscreen and avoid the sun during specific hours.127

Marketers can also enhance consumers’ understanding of how behavior can create risky negative outcomes. When consumers think about the role their own behav- ior plays in acquiring AIDS, they are more likely to follow the advice in ads about reducing that risk.128

Ability The extent to which consumers have the required resources to make an outcome happen.

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consumers have the necessary resources to make the outcome happen.130 If our ability to process informa- tion is high, we may engage in active decision-making. As shown in Exhibit 2.1, (1) financial resources, (2) cognitive resources, (3) emotional resources, (4) physical resources, and (5) social and cultural resources can affect consumers’ abilities to process information about brands and make decisions about and engage in buying, usage, and disposition. In turn, these five resources can be affected by other factors, including education and age.

2-3a FINANCIAL RESOURCES In some situations, consumers can use money instead of other resources to enhance their ability to make decisions and take actions. For example, many con- sumers hire financial planners for investment guidance and pay tour guides to show them around a particular area. Obviously, the lack of money constrains consum- ers who might otherwise have the motivation to engage in a behavior that involves acquisition. Although motivated consumers who lack money can still pro- cess information and make buying decisions, they are constrained in their immediate ability to buy in the market. And, as noted in Chapter 1, consumers’ man- agement of savings and debts can affect their financial situation. See Chapter 13 for an in-depth discussion of the meaning of money.

2-3b COGNITIVE RESOURCES Consumers vary greatly in their knowledge about and experience of an offering.131 They can gain knowledge from product or service experiences such as ad expo- sures, interactions with salespeople, and information from friends or the media, previous decision-making or product usage, or memory. A number of studies have compared the information-processing activities of con- sumers who have a lot of product knowledge or expertise with those of consumers who do not.132 Knowledgeable consumers, or “experts,” are better able to think deeply about information than are equally motivated but less knowledgeable consumers, or “novices.” These differ- ences in prior knowledge affect how consumers make decisions. For example, consumers trying to lease a car rarely understand the concept of capitalized costs (the figure used to determine lease payments) or the need to negotiate lower costs to lower their payments. The inabil- ity to understand these costs may result in a less than optimal decision.

One particular type of expertise concerns knowledge about financial matters, called financial literacy . Independent of educational level and income, people low in financial literacy have higher debt rates and lower savings, and are less likely to plan for retirement. One large study among U.S. adults aged 23–28 reported low

levels of financial literacy (such as knowledge about the effects of interest rates and inflation), and found that it was associated with lower levels of general cognitive ability.133 Cognitive ability can also affect buying behavior. Consumers are less likely to use loyalty or reward points when they cannot easily calculate what they will save by using these points.134

Novices and experts process information in different ways.135 Experts can process information about specific attributes (what the product has—such as a three-terabyte hard drive), whereas novices process information better when it’s stated in terms of more general benefits (what the product can do—such as store a lot of data). Nov- ices may be able to process information when marketers provide a helpful analogy (e.g., can hold a library’s worth of data).136 In particular, an analogy is persuasive when consumers can transfer their knowledge of one product’s attributes to an unfamiliar product and can allocate the resources needed to process this mapping.137

Also, consumers may have difficulty evaluating a service provider when they lack product knowledge or experience (or simply because the service outcome is not easy to evaluate, such as whether the doctor pro- vided the best possible advice). In such situations, con- sumers may judge service providers using heuristics, simple cues or rules of thumb such as whether the med- ical staff was friendly or whether the examination room was clean and in good order.138 Finally, consumers can differ in cognitive style, or their preferences for ways information should be presented. Some consumers are adept at processing information visually (checking a map for directions), whereas others prefer to process information verbally (listening to a GPS unit give ver- bal directions).

2-3c EMOTIONAL RESOURCES Consumers’ ability to experience empathy and sym- pathy can affect their processing of information and their decisions about brand choices, consumption, disposition, spending, and so on. Emotional resources also affect the actions consumers take to participate in charitable events or donate to causes. For example, many marketers offer pink-themed products during October, which is Breast Cancer Awareness Month, and donate part of the purchase price to the fight against breast cancer (see Exhibit 2.11). According to research, 84 percent of all U.S. consumers buy pink- themed products during October because they want to help battle the disease.139

2-3d PHYSICAL RESOURCES Physical capabilities—“body power”—can affect how, when, where, and whether consumers make decisions and take actions. As discussed earlier in this chapter, the mind-body connection can play a role in consumers’

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE62

self-control, for example. Physical resources also influence consumers’ ability to use certain goods or services. Even when consumers do not accurately assess their physical resources, these resources will affect their decisions. For instance, consumers who feel they are physically capable may decide to take a strenuous hike or buy challenging exercise equipment.

2-3e SOCIAL AND CULTURAL RESOURCES

Social resources derive from the network of social rela- tionships that people have with others and the extent to which they can leverage the resources contained in these relationships. Cultural resources derive from knowledge of and access to the system of (sub)cultural institutions in a society. Knowledge of and access to these resources affect acquisition, consumption, and disposition behav- ior of consumers. For example, studies show that college freshmen with solid social and cultural resources are more likely to continue into their second year of school, rather than dropping out.140

A consumer’s social resources also play a role in whether marketing activities conducted on Facebook or in other social media will generate strong word of mouth support and referrals to potential buyers or brand fans. Top YouTube stars like PewDiePie (real name: Felix Kjellberg) have millions of followers view- ing and sharing their videos. These social media stars generate income from ads that run alongside their videos, as well as from marketing their own branded products.141 Being “in the know” socially and (sub)cul- turally helps consumers to act according to the norms and to be part of the right rituals. Wearing the right clothes, knowing the right music, and speaking the right language increases the likelihood that consum- ers will have access to particular sports clubs, colleges, companies, and community groups.142

2-3f EDUCATION AND AGE Education and age have also been related to the ability to process information and make decisions. Specifically, better-educated consumers will have more cognitive resources to use in processing complex information and making decisions. Age also accounts for differences in physical resources and processing ability. Older children seem to be more sensitive to the fact that the benefits of searching for information sometimes outweigh the costs, whereas younger children don’t seem to have this same ability.143 Old age has been associated with a decline in certain cognitive skills and thus reduced ability to pro- cess information. For instance, older consumers took more time to process nutrition information and made decisions that were less accurate than those of younger consumers.144

Factors affecting ability suggest several implications for Factors affecting ability suggest several implications for marketers. First, marketers should be sure that targeted marketers. First, marketers should be sure that targeted consumers have sufficient prior knowledge to process consumers have sufficient prior knowledge to process marketing communications. If not, the company may marketing communications. If not, the company may need to develop educational messages as a first step. need to develop educational messages as a first step. Marketers also need to be sensitive to the potentially Marketers also need to be sensitive to the potentially different processing styles, education levels, and ages different processing styles, education levels, and ages of each segment. For example, highly motivated but of each segment. For example, highly motivated but visually oriented parents may be unable to assemble visually oriented parents may be unable to assemble furniture if the written instructions are too complex furniture if the written instructions are too complex and thus incompatible with their processing style. and thus incompatible with their processing style. IKEA’s furniture assembly instructions are appropri-- ate for a broad audience because they have only illus-- trations and numbers, and they are thoroughly tested trations and numbers, and they are thoroughly tested to ensure clarity. IKEA even has a website, the Share to ensure clarity. IKEA even has a website, the Share Space, where customers can post photos after they’ve Space, where customers can post photos after they’ve assembled their purchases—reassuring others that they assembled their purchases—reassuring others that they can do this, too.145

Knowing that a lack of money constrains purchase Knowing that a lack of money constrains purchase behaviors, marketers can facilitate first-time and repeat behaviors, marketers can facilitate first-time and repeat buying by providing monetary aid. Car manufactur-- ers have enhanced consumers’ purchasing ability—and ers have enhanced consumers’ purchasing ability—and boosted sales—by offering low- or no-down-payment boosted sales—by offering low- or no-down-payment programs, low financing rates, and rebates. Marketers programs, low financing rates, and rebates. Marketers can also provide education and information (through can also provide education and information (through advertising, websites, mobile marketing, social media, advertising, websites, mobile marketing, social media, point-of-purchase displays, and other communications) point-of-purchase displays, and other communications) that help consumers better process information, make that help consumers better process information, make more informed decisions, and engage in consumption more informed decisions, and engage in consumption behaviors.

Exhibit 2.11 Exhibit 2.11 ▸ Emotional Resources Some ads appeal to a consumer’s emotions, such as advertisSome ads appeal to a consumer’s emotions, such as advertis- ing a product that donates to breast cancer awareness.

C ou

rt es

y of

D ai

m le

r A G

CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 63

2-4 Consumer Opportunity The final factor affecting whether motivation results in action is consumers’ opportunity to engage in a behav- ior. For example, a consumer may be highly motivated to work out and have sufficient money to join a health club (ability); however, when the local health club is being reno- vated, there is no opportunity to implement the intention to work out. Unavailability of the desired choice option is an important reason why motivated and able consumers can- not do what they set out to do. Independent of this, some- one may not take action or make decisions because of three key influences: (1) lack of time, (2) distraction, and (3) the complexity, amount, repetition, and control of information.

2-4a TIME Time can affect the consumer’s opportunity to process information, make decisions, and perform certain behav- iors. Some studies show that time-pressured consumers are more likely to buy things for themselves during the Christmas season because this is one of the few opportuni- ties they have to shop.146 Knowing that would-be garden- ers have little time (or patience) to plant, weed, and water, companies are successfully marketing seed-embedded mats, low-maintenance plants, and fast-maturing trees.147

Consumers under time pressure to make a decision will (1) acquire less information, (2) process the informa- tion less systematically, and (3) place more emphasis on negative information.148 For example, a consumer who has to buy 30 items during a 15-minute grocery shop- ping trip will not have time to process a lot of information about each item. The more time consumers have to think about consumption problems, the more creative they tend to be at coming up with novel solutions.149

2-4b DISTRACTION Distraction refers to any aspect of a situation that diverts consumers’ attention. For example, other people in the sub- way can divert a consumer’s attention from reading a news- paper online. If someone talks while a consumer is viewing an ad or making a decision, that distraction can inhibit the consumer’s ability to process the information. Certain back- ground factors in the ad itself, such as music or attractive models, can also distract consumers from an advertised mes- sage.150 Consumers may be distracted from TV commercials if the program during which the commercials appear is very involving.151 Distraction seems to influence mostly the effect that consumers’ (slow) thoughts have on their choices, and less so the effect that their (fast) emotions have on choices.152

2-4c COMPLEXITY, AMOUNT, REPETITION, AND CONTROL OF INFORMATION

The complexity of the information to which consum- ers are exposed can affect their opportunity to process

it. Consumers find technical or quantitative informa- tion more difficult to handle than nontechnical and qualitative data, a situation that inhibits processing.153 Technological and pharmaceutical products typically entail complex information. In addition, messages containing pictures-without-words can be ambiguous and therefore hard to comprehend.154 Marketers can, however, use visualization tools to communicate com- plex information and facilitate processing.155 The con- sumer’s regulatory focus plays a role, as well. When consumers encounter a lot of information about a product, those who are promotion-focused will rely more on positive details and have higher brand evalu- ations, whereas those who are prevention-focused will rely more on negative details and will have lower brand evaluations.156

Information may also be complex if the individual must sift through a huge volume of it. That’s why Lowe’s, the home improvement retailer, offers consumers the oppor- tunity to educate themselves about repair projects quickly and conveniently by viewing how-to videos or download- ing articles in Spanish or English. The retailer also invites customers to design bathrooms and kitchens in-store and visualize the appearance using augmented-reality technology.157

Although consumers’ ability to process information is limited by time, distraction, and the quality and complex- ity of the information, one factor—repetition—may actu- ally enhance it.158 If consumers are repeatedly exposed to information, they have more opportunities to think about, scrutinize, relate to, and remember the informa- tion. Advertisers who use television and radio, in particu- lar, must therefore plan to get their messages to the target audience more than once to enhance the opportunity for processing. Of course, frequent exposure to the same ad may lead to irritation, which in turn may hurt the brand. Consumers show more patience for repetition of ads from known, familiar brands.159

Consumers remember and learn more when they can control the flow of information by determining what information is presented, for how long, and in what order. With print and many online ads, for example, consumers have much control over which messages they pay atten- tion to, how long they spend processing each message, and the order in which they process the messages. They have more opportunity to select what is appropriate for their own needs and goals, process the information, and apply it to consumption decisions. The same is true for infor- mative company or product review websites. In contrast, consumers exposed to radio or TV commercials do not have such control, so they have less opportunity to process and apply the information.160 As consumers become pro- ficient in controlling the information flow, they can put more effort into processing the content rather than focus- ing on the control task.161

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE64

Often marketers can do little to enhance consumers’ opportunities to process information, make careful decisions, or engage in purchase, usage, or disposition behaviors. For example, individual advertisers cannot easily make public transportation, cafés, and living rooms less distracting during TV commercials or give consumers more time for shopping. However, compa- nies can play some role in enhancing opportunity.

▸ Repeating marketing communications (up to a point) increases the likelihood that consumers will notice and eventually process them. Marketers can also increase the likelihood of processing by presenting messages at a time of day when consumers are least likely to be distracted and pressed for time. Simple messages, with minimal pictures-and-text and a clear connection to the brand, help consumers to under- stand them. Often companies such as Pepsi will get a message across by restating it in different media (TV commercials, radio ads, billboards, Facebook posts, tweets, etc.). Repetition increases the opportunity to process information in ads, but it can also reduce consumers’ motivation to process the information once the ad is worn out.

▸ Reducing time pressure can lessen distractions for consumers. For example, stores may extend their hours and offer online buying so consumers can shop

▸

when they are least distracted and least time pres- sured. Amazon.com, among other online retailers, allows consumers to “save” items in their shopping carts for later evaluation and purchase.

▸ Reducing the time needed to buy, use, and learn about a product or service allows consumers more opportuni- ties to process information and act on their decisions. In stores, clear signs and directories help consumers locate goods more quickly and increase the likelihood that they will actually buy the goods. For example, Lowe’s is testing a robot greeter in some stores to lead customers directly to the products they want to see and buy.162 Intelligent search engines enable consum- ers to rapidly find what they seek online.

▸ Offering information when and where consumers choose to access it will open more opportunities for processing and acting on information. Increasingly, companies are using mobile marketing to allow con- sumers to access product information, receive spe- cial orders, and place orders via smartphone from anywhere at any time. To illustrate, Simon Property Group has installed beacon technology in its 192 U.S. shopping centers to facilitate mobile communi- cations with shoppers who are interested in specific products, stores, and offers. Nordstrom’s shopping app will check inventory in nearby branches, scan barcodes to obtain additional information about particular items, and tote up rewards points for purchases.163

CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 65

Summary: Motivation reflects an inner state of activation that moves the consumer to engage in goal-relevant behaviors, effort- ful information processing, and detailed decision-mak- ing. Motivated consumers often experience affective or cognitive involvement. In some cases, this involvement may be enduring; in other cases, it may be situational, lasting only until the goal has been achieved. Consumers experience greater motivation when they regard a goal or object as personally relevant, or when it relates to their self-concept, values, needs, emotions, goals, and/or calls for self-control; when it entails perceived risk; or when it is moderately inconsistent with their prior attitudes.

Even when motivation is high, consumers may not achieve their goals if their ability or opportunity to do so is low. Similarly, if consumers lack the financial, cogni- tive, emotional, physical, or social and cultural resources, they may not have the ability to make a decision. Age and education also affect ability. Highly motivated consumers may also fail to achieve goals if lack of time, distractions, complex or large amounts of information, or lack of con- trol over information flow limit the opportunity to make decisions.

Questions for Review and Discussion

1. What are the three major sources of effort consumers invest in making acquisition, usage, and disposition decisions?

2. How is motivation defined, and how does it affect felt involvement?

3. What are some objects of involvement for consumers?

4. Why are personal relevance, self-concept, and values important for motivation?

5. What determines the ranking of needs in Maslow’s hierarchy?

6. What types of goals do consumers have?

7. According to appraisal theory, what do emotions have to do with goals?

8. What is self-control and how does it relate to conflict- ing goals?

9. Why do conflicting goals pose a challenge to informa- tion processing and emotion regulation?

10. What are six types of perceived risk, and how does per- ceived risk affect personal relevance?

11. What five types of resources affect ability to process information and make decisions?

12. Identify some of the elements that contribute to con- sumer opportunity for processing information and making decisions, and suggest how marketers can make use of these for marketing purposes.

Does Motivation Moderate the Impact of Central and Periph- eral Processing on Brand Attitudes and Intentions?” Journal of Consumer Research, March 1992, pp. 519–529; Richard E. Petty and John T. Cacioppo, Communication and Persua- sion (New York: SpringerVerlag, 1986); Anthony Greenwald and Clark Leavitt, “Audience Involvement in Advertising: Four Levels,” Journal of Consumer Research 11, June 1984, pp. 581–592; Ronald C. Goodstein, “Category-Based Applica- tions and Extensions in Advertising: Motivating More Exten- sive Ad Processing,” Journal of Consumer Research, June 1993, pp. 87–99; and Ellen Garbarino and Julie A. Edell, “Cognitive Effort, Affect, and Choice,” Journal of Consumer Research, Sep- tember 1997, pp. 147–158.

5 Wayne D. Hoyer, “An Examination of Consumer Decision Making for a Common Repeat Purchase Product,” Journal of Consumer Research, December 1984, pp. 822–829; James R. Bettman, Mary-Frances Luce, and John W. Payne, “Con- structive Consumer Choice Processes,” Journal of Consumer Research 25, no. 3, 1998, pp. 187–217.

6 Kurt A. Carlson, Margaret G. Meloy, and J. Edward Russo, “Leader-Driven Primacy: Using Attribute Order to Affect Con- sumer Choice,” Journal of Consumer Research 32, no. 4, 2006,

Endnotes 1 Rebecca Pahle, “Brewing Up a Good Time: Movie Tavern

Champions Innovation and Expansion,” Film Journal, October 28, 2015, www.filmjournal.com.

2 C. Whan Park and Banwari Mittal, “A Theory of Involvement in Consumer Behavior: Problems and Issues,” in ed. J. N. Sheth, Research in Consumer Behavior (Greenwich, Conn.: JAI Press, 1979), pp. 201–231; and Deborah J. MacInnis, Christine Moorman, and Bernard J. Jaworski, “Enhancing and Mea- suring Consumers’ Motivation, Opportunity, and Ability to Process Brand Information from Ads,” Journal of Marketing, October 1991, pp. 32–53.

3 Rom Y. Schrift, Oded Netzer, and Ran Kivetz, “Compli- cating Choice,” Journal of Marketing Research, April 2011, pp. 308–326.

4 Deborah J. MacInnis and Bernard J. Jaworski, “Informa- tion Processing from Advertisements: Toward an Integra- tive Framework,” Journal of Marketing 53, October 1989, pp. 1–23; Scott B. MacKenzie and Richard A. Spreng, “How

PART PART P TWO | THE PSYCHOLOGICAL CORE66

15 Nina Michaelidou and Sally Dibb, “Product Involvement: An Application in Clothing,” Journal of Consumer Behaviour 5, no. 5, 2006, pp. 442–453.

16 Jennifer Aaker, Susan Fournier, and S. Adam Brasel, “When Good Brands Do Bad,” Journal of Consumer Research, June 2004, pp. 1–16; and Matthew Thomson, Deborah J. MacInnis, and C. W. Park, “The Ties that Bind: Measuring the Strength of Consumers’ Emotional Attachments to Brands,” Journal of Consumer Psychology 15, no. 1, 2005, pp. 77–91.

17 Rajeev Batra, Aaron Ahuvia, and Richard P. Bagozzi, “Brand Love,” Journal of Marketing 76, no. 2, March 2012, pp. 1–16.

18 J. Craig Andrews, Syed H. Akhter, Srinivas Durvasula, and Darrel D. Muehling, “The Effect of Advertising Distinctive- ness and Message Content Involvement on Cognitive and Affective Responses to Advertising,” Journal of Current Issues and Research in Advertising, Spring 1992, pp. 45–58; Laura M. Bucholz and Robert E. Smith, “The Role of Consumer Involvement in Determining Cognitive Response to Broad- cast Advertising,” Journal of Advertising, March 1991, pp. 4–17; Darrel D. Muehling, Russell N. Laczniak, and Jeffrey J. Stolt- man, “The Moderating Effects of Ad Message Involvement: A Reassessment,” Journal of Advertising, June 1991, pp. 29–38; and Scott B. MacKenzie and Richard J. Lutz, “An Empiri- cal Examination of the Structural Antecedents of Attitude Toward the Ad in an Advertising Pretesting Context,” Journal of Marketing, April 1989, pp. 48–65.

19 Barbara Mueller, “Standardization vs. Specialization: An Exam- ination of Westernization in Japanese Advertising,” Journal of Advertising Research, January–February 1992, pp. 15–24.

20 Ann E. Schlosser, “Computers as Situational Cues: Implica- tions for Consumers Product Cognitions and Attitudes,” Jour- nal of Consumer Psychology 13, nos. 1 and 2, 2003, pp. 103–112; and Charla Mathwick and Edward Rigdon, “Play, Flow, and the Online Search Experience,” Journal of Consumer Research 31, no. 2, 2004, pp. 324–332.

21 Houston and Rothschild, “Conceptual and Methodological Perspectives in Involvement”; Peter H. Bloch, Daniel Sher- rell, and Nancy Ridgway, “Consumer Search: An Extended Framework,” Journal of Consumer Research, June 1986, pp. 119–126; Peter H. Bloch, Nancy M. Ridgway, and Scott A. Dawson, “The Shopping Mall as Consumer Habitat,” Journal of Retailing, Spring 1994, pp. 23–42; Richard L. Celsi, Randall L. Rose, and Thomas W. Leigh, “An Exploration of High-Risk Lei- sure Consumption Through Skydiving,” Journal of Consumer Research, June 1993, pp. 1–23; Eric J. Arnould and Linda L. Price, “River Magic: Extraordinary Experience and the Extended Service Encounter,” Journal of Consumer Research, June 1993, pp. 24–45; Morris B. Holbrook and Elizabeth C. Hirschman, “The Experiential Aspects of Consumption,” Journal of Con- sumer Research, September 1982, pp. 132–140; Elizabeth C. Hirschman and Morris B. Holbrook, “Experience Seeking,” Journal of Marketing, Summer 1982, pp. 92–101; and Morris B. Holbrook, Robert W. Chestnut, Terence A. Oliva, and Eric A. Greenleaf, “Play as a Consumption Experience,” Journal of Consumer Research, September 1984, pp. 728–739.

22 Yinlong Zhang and Vikas Mittal, “Decision Difficulty: Effects of Procedural and Outcome Accountability,” Journal of Con- sumer Research 32, no. 3, 2005, pp. 465–472.

23 Celsi and Olson, “The Role of Involvement in Attention and Comprehension Processes”; Greenwald and Leavitt, “Audi- ence Involvement in Advertising”; Laurent and Kapferer, “Measuring Consumer Involvement Profiles”; Zaichkow- sky, “Measuring the Involvement Construct”; Michael L.

pp. 513–518; Nidhi Agrawal and Durairaj Maheswaran, “Moti- vated Reasoning in Outcome-Bias Effects,” Journal of Consumer Research 31, no. 4, 2005, pp. 798–805; Getta Menon, Lauren G. Block, and Suresh Ramanathan, “We’re at as Much Risk as We’re Led to Believe: The Effect of Message Cues on Judg- ments of Health Risk,” Journal of Consumer Research, March 2002, pp. 533–549; Shailendra Jain and Durairai Maheswaran, “Motivated Reasoning: A Depth-of-Processing Perspective,” Journal of Consumer Research 26, no. 4, 2000, pp. 358–371; Ziva Kunda, “The Case for Motivated Reasoning,” Psychological Bulletin, 1990, pp. 480–498; and Raymond S. Nickerson, “Con- firmation Bias: A Ubiquitous Phenomenon in Many Guises,” Review of General Psychology 2, no. 2, 1998, pp. 175–220.

7 Lisa E. Bolton, Joel B. Cohen, and Paul N. Bloom, “Does Marketing Products as Remedies Create ‘Get Out of Jail Free Cards’?” Journal of Consumer Research 33, no. 1, 2006, pp. 71–81; and Neil D. Weinstein, S. ED. Marcus, and R. P. Moser, “Smokers’ Unrealistic Optimism about Their Risk,” Tobacco Control 14, 2005, pp. 55–59.Tobacco Control 14, 2005, pp. 55–59.Tobacco Control

8 Ying-Ching Lin, Chien-Huang Lin, and Priya Raghubir, “Avoid- ing Anxiety, Being in Denial, or Simply Stroking Self-Esteem: Why Self-Positivity?” Journal of Consumer Psychology 13, no. 4, 2003, pp. 464–477.

9 Gustavo de Mello, Deborah J. MacInnis, and David W. Stewart, “Threats to Hope: Effects on Reasoning About Product Information,” Journal of Consumer Research, August 2007, pp. 153–161; and Deborah J. MacInnis and Gustavo de Mello, “The Concept of Hope and Its Relevance to Product Evalua- tion and Choice,” Journal of Marketing, January 2005, pp. 1–14.

10 Richard L. Celsi and Jerry C. Olson, “The Role of Involvement in Attention and Comprehension Processes,” Journal of Con- sumer Research, September 1988, pp. 210–224.

11 Marsha L. Richins, Peter H. Bloch, and Edward F. McQuarrie, “How Enduring and Situational Involvement Combine to Create Involvement Responses,” Journal of Consumer Psychol- ogy, September 1992, pp. 143–154; Peter H. Bloch and Marsha L. Richins, “A Theoretical Model for the Study of Product Importance Perceptions,” Journal of Marketing, Summer 1983, pp. 69–81; Celsi and Olson, “The Role of Involvement in Attention and Comprehension Processes”; Andrew A. Mitch- ell, “The Dimensions of Advertising Involvement,” in ed. Kent Monroe, Advances in Consumer Research, vol. 8 (Ann Arbor, Mich.: Association for Consumer Research, 1981), pp. 25–30; and Marsha L. Richins and Peter H. Bloch, “After the New Wears Off: The Temporal Context of Product Involvement,” Journal of Consumer Research, September 1986, pp. 280–285.

12 Michael J. Houston and Michael L. Rothschild, “Conceptual and Methodological Perspectives on Involvement,” in ed. S. Jain, Research Frontiers in Marketing: Dialogues and Directions (Chicago: American Marketing Association, 1978), pp. 184– 187; Richins and Bloch, “After the New Wears Off: The Tempo- ral Context of Product Involvement”; and Gilles Laurent and Jean-Noel Kapferer, “Measuring Consumer Involvement Pro- files,” Journal of Marketing Research, February 1985, pp. 41–53.

13 C. Whan Park and S. Mark Young, “Consumer Response to Television Commercials: The Impact of Involvement and Background Music on Brand Attitude Formation,” Journal of Marketing Research, February 1986, pp. 11–24.

14 Judith Lynne Zaichkowsky, “Measuring the Involvement Con- struct,” Journal of Consumer Research, December 1985, pp. 341–352; and Laurent and Kapferer, “Measuring Consumer Involvement Profiles,” Journal of Marketing Research, Febru- ary 1985, pp. 41–53.

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37 Bram Van den Bergh, “Bikinis Instigate Generalized Impa- tience in Intertemporal Choice,” Journal of Consumer Research, June 2008, pp. 85–97.

38 Russell W. Belk, Güliz Ger, and Soren Askegaard, “The Fire of Desire: A Multisited Inquiry into Consumer Passion,” Journal of Consumer Research, December 2003, pp. 326–351.

39 Priyanka Ghosh, “High-Occupancy Malls Draw Steep Rental Premiums,” Financial Express (India), September 7, 2015, www .financialexpress.com.

40 John T. Cacioppo and Richard E. Petty, “The Need for Cogni- tion,” Journal of Personality and Social Psychology, February 1982, pp. 116–131; Douglas M. Stayman and Frank R. Kardes, “Spontaneous Inference Processes in Advertising: Effects of Need for Cognition and Self-Monitoring on Inference Gen- eration and Utilization,” Journal of Consumer Psychology 1, no. 2, 1992, pp. 125–142; and John T. Cacioppo, Richard Petty, and Katherine Morris, “Effects of Need for Cognition on Mes- sage Evaluation, Recall, and Persuasion,” Journal of Personality and Social Psychology, October 1993, pp. 805–818.

41 P. S. Raju, “Optimum Stimulation Level,” Journal of Consumer Research, December 1980, pp. 272–282; and Jan-Benedict E. M. Steenkamp and Hans Baumgartner, “The Role of Opti- mum Stimulation Level in Exploratory Consumer Behavior,” Journal of Consumer Research, December 1992, pp. 434–448.

42 Cindy Chan, Jonah Berger, and Leaf Van Boven, “Identifiable But Not Identical: Combining Social Identity and Uniqueness Motives in Choice,” Journal of Consumer Research 39, no. 3, October 2012, pp. 561–573.

43 Jonah Berger and Baba Shiv, “Food, Sex, and the Hunger for Distinction,” Journal of Consumer Psychology 21, no. 4, Special Journal of Consumer Psychology 21, no. 4, Special Journal of Consumer Psychology Issue, October 2011, pp. 464–472.

44 Stuart Elliott, “Study Tries to Help Retailers Understand What Drives the Shopping Habits of Women,” New York Times, January 17, 2001, p. C6.

45 Robert Roth, International Marketing Communications (Chicago: Crain Books, 1982), p. 5.

46 H. Murray, Thematic Apperception Test Manual (Cambridge, Mass.: Harvard University Press, 1943); Harold Kassarjian, “Projective Methods,” in ed. Robert Ferber, Handbook of Mar- keting Research (New York: McGraw-Hill, 1974), pp. 85–100; Ernest Dichter, Packaging the Sixth Sense: A Guide to Identify- ing Consumer Motivation (Boston: Cahners Books, 1975); Den- nis Rook, “Researching Consumer Fantasy,” in ed. Elizabeth C. Hirschman, Research in Consumer Behavior, vol. 3 (Greenwich, Conn.: JAI Press, 1990), pp. 247–270; David Mick, M. De Moss, and Ronald Faber, “A Projective Study of Motivations and Meanings of Self-Gifts,” Journal of Retailing, Summer 1992, pp. 122–144; and Mary Ann McGrath, John F. Sherry, and Sidney J. Levy, “Giving Voice to the Gift: The Use of Projective Tech- niques to Recover Lost Meanings,” Journal of Consumer Psy- chology 2, no. 2, 1993, pp. 171–191.

47 Rebecca Ratner, “Consumer Goal Pursuit,” Journal of Con- sumer Research 40, no. 2, August 2013, pp. vi–viii; Sharon Shavitt, Suzanne Swan, Tina M. Lowrey, and Michaela Wanke, “The Interaction of Endorser Attractiveness and Involvement in Persuasion Depends on the Goal That Guides Message Processing,” Journal of Consumer Psychology 3, no. 2, 1994, pp. 137–162; Robert Lawson, “Consumer Decision Making Within a Goal-Driven Framework,” Psychology and Marketing, August 1997, pp. 427–449; and Ingrid W. Martin and David W. Stewart, “The Differential Impact of Goal Congruency on Attitudes, Intentions, and the Transfer of Brand Equity,” Jour- nal of Marketing Research, November 2001, pp. 471–484.

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24 Banwari Mittal, “I, Me, and Mine: How Products Become Consumers’ Extended Selves,” Journal of Consumer Behaviour 5, no. 6, 2006, pp. 550–562. For more background, see M. Joseph Sirgy, “Self-Concept in Consumer Behavior: A Crit- ical Review,” Journal of Consumer Research, December 1982, pp. 287–300.

25 Americus Reed II, “Activating the Self-Importance of Con- sumer Selves,” Journal of Consumer Research 31, no. 2, 2004, pp. 286–295.

26 JoAndrea Hoegg, Maura L. Scott, Andrea C. Morales, and Dar- ren W. Dahl, “The Flip Side of Vanity Sizing: How Consumers Respond to and Compensate for Larger than Expected Cloth- ing Sizes,” Journal of Consumer Psychology 24, no. 1, January Journal of Consumer Psychology 24, no. 1, January Journal of Consumer Psychology 2014, pp. 70–78.

27 Christian Homburg, Jan Wieseke, and Wayne D. Hoyer, “Social Identity and the Service-Profit Chain,” Journal of Marketing, March 2009, pp. 38–54; and David Sprott, Sandor Czellar, and Eric Spangenberg, “The Importance of a General Measure of Brand Engagement and Validation of a Scale,” Journal of Mar- keting Research, February 2009, pp. 92–104.

28 Rajeev Batra, Aaron Ahuvia, and Richard P. Bagozzi, “Brand Love,” Journal of Marketing 76, no. 2, March 2012, pp. 1–16.

29 Randall L. Rose and Stacy L. Wood, “Paradox and the Con- sumption of Authenticity Through Reality Television,” Journal of Consumer Research 32, no. 2, 2005, pp. 284–296.

30 Amy N. Dalton and Li Huang, “Motivated Forgetting in Response to Social Identity Threat,” Journal of Consumer Research 40, no. 6, April 2014, pp. 1017–1038.

31 C. Miguel Brendl, Arthur B. Markman, and Claude Messner, “The Devaluation Effect: Activating a Need Devalues Unre- lated Objects,” Journal of Consumer Research, March 2003, pp. 463–473.

32 Abraham H. Maslow, Motivation and Personality, 2nd ed. (New York: Harper & Row, 1970).

33 C. Whan Park, Bernard J. Jaworski, and Deborah J. MacInnis, “Strategic Brand Concept–Image Management,” Journal of Marketing, October 1986, pp. 135–145.

34 Nicole L. Mead, Roy F. Baumeister, Tyler F. Stillman, Catherine D. Rawn, and Kathleen D. Vohs, “Social Exclusion Causes People to Spend and Consume Strategically in the Service of Affilia- tion,” Journal of Consumer Research, February 2011, pp. 902–919.

35 Judy Harris and Michael Lynn, “The Manifestations and Mea- surement of the Desire to Be a Unique Consumer,” Proceed- ings of the 1994 AMA Winter Educators’ Conference, Chicago; Kelly Tepper, “Need for Uniqueness: An Individual Difference Factor Affecting Nonconformity in Consumer Responses,” Proceedings of the 1994 AMA Winter Educators’ Conference, Chicago; and Kelly Tepper Tian, William O. Bearden, and Gary L. Hunter, “Consumers’ Need For Uniqueness: Scale Develop- ment and Validation,” Journal of Consumer Research 28, June 2001, pp. 50–66.

36 “7 Easy Ways to Identify a Genuine Christian Louboutin Shoe,” Las Vegas Review-Journal, August 17, 2015, www.review- journal.com.

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68 Richard P. Bagozzi and Utpal Dholakia, “Goal Setting and Goal Striving in Consumer Behavior,” Journal of Marketing 63, 1999, pp. 19–32.

69 K. Lee, J. Choi, and Y.J. Li, “Regulatory Focus as a Predictor of Attitudes Toward Partitioned and Combined Pricing,” Journal of Consumer Psychology 24, no. 3, July 2014, pp. 355–362; and of Consumer Psychology 24, no. 3, July 2014, pp. 355–362; and of Consumer Psychology Arnd Florack, Malte Friese, and Martin Scarabis, “Regulatory Focus and Reliance on Implicit Preferences in Consumption Contexts,” Journal of Consumer Psychology 20, no. 2, April Journal of Consumer Psychology 20, no. 2, April Journal of Consumer Psychology 2010, pp. 193–204.

70 Shailendra Pratap Jain, Pragya Mathur, and Durairaj Maheswaran, “The Influence of Consumers’ Lay Theories on Approach/Avoidance Motivation,” Journal of Marketing Research, February 2009, pp. 56–65.

71 Rui (Juliet) Zhu and Joan Meyers-Levy, “Exploring the Cog- nitive Mechanism that Underlies Regulator y Focus Effects,” Journal of Consumer Research 34, no. 1, 2007, pp. 89–98; Jing Wang and Angela Y. Lee, “ The Role of Regulator y Focus in Preference Construction,” Journal of Marketing Research, Feb- ruary 2006, pp. 28–38; Utpal M. Dholakia, Mahesh Gopinath, Richard P. Bagozzi, and Rajan Nataraajan, “The Role of Reg- ulatory Focus in the Experience and Self-Control of Desire for Temptations,” Journal of Consumer Psychology 16, no. 2, 2006, pp. 163–175; and Jens Förster, E. Tory Higgins, and Lor- raine Chen Idson, “Approach and Avoidance Strength During Goal Attainment,” Journal of Personality and Social Psychology, November 1998, pp. 1115–1131.

72 Jinhee Choi and Ayelet Fishbach, “Choice as an End Versus a Means,” Journal of Marketing Research, June 2011, pp. 544–554.

73 David Gal, “A Mouth-Watering Prospect: Salivation to Mate- rial Reward,” Journal of Consumer Research 38, no. 6, April 2012, pp. 1022–1029.

74 See, for example, B. McFerran, K. Aquino, and J. L. Tracy, “Evidence for Two Facets of Pride in Consumption: Findings from Luxury Brands,” Journal of Consumer Psychology 24, no. Journal of Consumer Psychology 24, no. Journal of Consumer Psychology 4, October 2014, pp. 455–471; and Xun (Irene) Huang, Ping Dong, and Anirban Mukhopadhyay, “Proud to Belong or Proudly Different? Lay Theories Determining Contrasting Effects of Incidental Pride on Uniqueness Seeking,” Journal of Consumer Research 41, no. 3, October 2014, pp. 697–712.

75 Allison R. Johnson and David W. Stewart, “A Reappraisal of the Role of Emotion in Consumer Behavior,” in ed. Naresh K. Malhotra, Review of Marketing Research, (London: M.E. Sharpe, 2005), pp. 3–34.

76 Thomas Allard and Katherine White, “Cross-Domain Effects of Guilt on Desire for Self-Improvement Products,” Journal of Consumer Research 42, October 2015, pp. 401–419.

77 J. S. Lerner, Y. Li, and E. U. Weber, “The Financial Costs of Sad- ness,” Psychological Science 24, no. 1, January 2013, pp. 72–79.

78 Rod Duclos, Echo Wen Wan, and Yuwei Jiang, “Show Me the Honey! Effects of Social Exclusion on Financial Risk-Taking,” Journal of Consumer Research 40, no. 1, June 2013, pp. 122–135.

79 Sara Loughran Dommer, Vanitha Swaminathan, and Rohini Ahluwalia, “Using Differentiated Brands to Deflect Exclusion and Protect Inclusion: The Moderating Role of Self-Esteem on Attachment to Differentiated Brands,” Journal of Con- sumer Research 40, no. 4, December 2013, pp. 657–675.

80 Niels van de Ven, Marcel Zeelenberg, and Rik Pieters, “The Envy Premium in Product Evaluation,” Journal of Consumer Research, April 2011, pp. 984–998.

48 Richard P. Bagozzi and Utpal Dholakia, “Goal Setting and Goal Striving in Consumer Behavior,” Journal of Marketing 63, 1999, pp. 19–32.

49 Catalina E. Kopetz, Aire W. Kruglanski, Zachary G. Arens, Jor- dan Etkin, and Heather M. Johnson, “The Dynamics of Con- sumer Behavior: A Goal Systemic Perspective,” Journal of Consumer Psychology 22, no. 2, April 2012, pp. 208–223. Consumer Psychology 22, no. 2, April 2012, pp. 208–223. Consumer Psychology

50 Berna Devezer, David E. Sprott, Eric R. Spangenberg, and Sandor Czellar, “Consumer Well-Being: Effects of Subgoal Failures and Goal Importance,” Journal of Marketing 78, no. 2, March 2014, pp. 118–134.

51 Mario Louro, Rik Pieters, and Marcel Zeelenberg, “Dynamics of Multiple Goal Pursuit,” Journal of Personality and Social Psy- chology 93, no. 2, 2007, pp. 174–193. chology 93, no. 2, 2007, pp. 174–193. chology

52 Liyin Jin, Szu-Chi Huang, and Ying Zhang, “The Unexpected Positive Impact of Fixed Structures on Goal Completion,” Journal of Consumer Research 40, no. 4, December 2013, pp. 711–725.

53 Claudia Townsend and Wendy Liu, “Is Planning Good for You? The Differential Impact of Planning on Self-Regula- tion,” Journal of Consumer Research 39, no. 4, December 2012, pp. 688–703.

54 Amy N. Dalton and Stephen A. Spiller, “Too Much of a Good Thing: The Benefits of Implementation Intentions Depend on the Number of Goals,” Journal of Consumer Research 39, no. 3, October 2012, pp. 600–614.

55 Manoj Thomas and Claire I. Tsai, “Psychological Distance and Subjective Experience: How Distancing Reduces the Feeling of Difficulty,” Journal of Consumer Research 39, no. 2, August 2012, pp. 324–340.

56 Ji Hoon Jhang and John G. Lynch Jr., “Pardon the Interruption: Goal Proximity, Perceived Spare Time, and Impatience,” Jour- nal of Consumer Research 41, 2015, pp. 1267–1283.

57 Szu-Chi Huang and Ying Zhang, “Motivational Consequences of Perceived Velocity in Consumer Goal Pursuit,” Journal of Marketing Research 48, no. 6, December 2011, pp. 1045–1056.

58 Maura L. Scott and Stephen M. Nowlis, “The Effect of Goal Specificity on Consumer Goal Reengagement,” Journal of Consumer Research 40, no. 3, October 2013, pp. 444–459.

59 Minjung Koo and Ayelet Fishbach, “The Small-Area Hypothe- sis: Effects of Progress Monitoring on Goal Adherence,” Jour- nal of Consumer Research 39, no. 3, October 2012, pp. 493–509.

60 Jordan Etkin and Rebecca K. Ratner, “The Dynamic Impact of Variety among Means on Motivation,” Journal of Consumer Research 38, no. 6, April 2012, pp. 1076–1092.

61 Cecile K. Cho and Gita Venkataramani Johar, “Attaining Sat- isfaction,” Journal of Consumer Research 38, no. 4, December 2011, pp. 622–631.

62 Dilip Soman and Amar Cheema, “When Goals Are Coun- terproductive,” Journal of Consumer Research, June 2004, pp. 52–62.

63 Amar Cheema and Rajesh Bagchi, “The Effect of Goal Visu- alization on Goal Pursuit,” Journal of Marketing, March 2011, pp. 109–123.

64 Ayelet Fishbach and Ravi Dhar, “Goals as Excuses or Guides: The Liberating Effect of Perceived Goal Progress on Choice,” Journal of Consumer Research 32, no. 3, 2005, pp. 370–377.

65 Joseph C. Nunes and Xavier Drèze, “The Endowed Progress Effect: How Artificial Advancement Increases Effort,” Journal of Consumer Research 32, no. 4, 2006, pp. 504–512.

66 Xavier Drèze and Joseph C. Nunes, “Recurring Goals and Learning,” Journal of Marketing Research, April 2011, pp. 268–281.

CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 69

Journal of Consumer Research 32, no. 2, 2005, pp. 355–362; and S. I. Rick, B. Pereira, and K. A. Burson, “The Benefits of Retail Therapy: Making Purchase Decisions Reduces Residual Sadness,” Journal of Consumer Psychology 24, no. 3, July 2014, Journal of Consumer Psychology 24, no. 3, July 2014, Journal of Consumer Psychology pp. 373–380.

99 Nitika Garg and Jennifer S. Lerner, “Sadness and Consump- tion,” Journal of Consumer Psychology 23, no. 1, January 2013, Journal of Consumer Psychology 23, no. 1, January 2013, Journal of Consumer Psychology pp. 106–113.

100 Anthony Salerno, Juliano Laran, and Chris Janiszewski, “Hedonic Eating Goals and Emotion: When Sadness Decreases the Desire to Indulge,” Journal of Consumer Research 41, no. 1, June 2014, pp. 135–151.

101 Nathan Novemsky and Ravi Dhar, “Goal Fulfillment and Goal Targets in Sequential Choice,” Journal of Consumer Research 32, no. 3, 2005, pp. 396–404.

102 Remi Trudel and Kyle B. Murray, “Why Didn’t I Think of That?” Journal of Marketing Research, August 2011, pp. 701–712.

103 David Gal and Wendy Liu, “Grapes of Wrath: The Angry Effects of Self-Control,” Journal of Consumer Research, October 2011, p. 445ff.

104 See, for example, Massimiliano Ostinelli, David Luna, and Torsten Ringberg, “When Up Brings You Down: The Effects of Imagined Vertical Movements on Motivation, Performance, and Consumer Behavior,” Journal of Consumer Psychology 24, Journal of Consumer Psychology 24, Journal of Consumer Psychology no. 2, Special Issue, April 2014, pp. 271–283.

105 Mike Hornick, “Earthbound Farm Brings Kale Caesar to Bowl Line,” The Packer, July 21, 2015, www.thepacker.com.

106 Jennifer Edson Escalas, “Narrative Processing: Building Con- sumer Connections to Brands,” Journal of Consumer Psychol- ogy 14, no. 1/2, 2004, pp. 168–180.

107 Nidhi Agrawal and Durairaj Maheswaran, “The Effects of Self-Construal and Commitment on Persuasion,” Journal of Consumer Research 31, no. 4, 2005, pp. 841–849; and S. Chris- tian Wheeler, Richard E. Petty, and George Y. Bizer, “Self- Schema Matching and Attitude Change: Situational and Dispositional Determinants of Message Elaboration,” Journal of Consumer Research 31, no. 4, 2005, pp. 787–797.

108 Elise Hu, “How Millennials Are Reshaping Charity and Online Giving,” National Public Radio, October 13, 2014, www.npr.org; and Gina Pace, “Creating Marketing Campaigns That Matter,” Inc., May 16, 2011, www.inc.com.

109 Ravi Dhar and Itamar Simonson, “Making Complementary Choices in Consumption Episodes,” Journal of Marketing Research 36, February 1999, pp. 29–44.

110 Jason Daley, “Why Fresh Fruits and Veggies Mean Healthy Profits for Fast Food,” Entrepreneur, October 16, 2015, www .entrepreneur.com.

111 Constance Gustke, “More Older Adults Are Becoming Inven- tors,” New York Times, April 17, 2015, www.nytimes.com.

112 Wayne D. Hoyer, Rajesh Chandy, Matilda Dorotic, Manfred Krafft, and Siddharth S. Singh, “Consumer Cocreation in New Product Development,” Journal of Service Research 13, no. 3, 2010, pp. 283–296.

113 Alexander Chernev, “Goal Orientation and Consumer Pref- erence for the Status Quo,” Journal of Consumer Research 31, no. 3, 2004, pp. 557–565.

114 Emily Jed, “One-Of-A-Kind TCBY Frozen Yogurt Vending Machine Makes One-Show Debut,” Vending Times, May 2015, www.vendingtimes.com; and Jaime Levy Pessin, “Yogurt Chains Give Power to the People,” Wall Street Journal, August 22, 2011, www.wsj.com.

115 Raymond A. Bauer, “Consumer Behavior as Risk Taking,” in ed. Robert S. Hancock, Dynamic Marketing for a Changing

81 Morgan Poor, Adam Duhachek, and Shanker Krishnan, “The Moderating Role of Emotional Differentiation on Satiation,” Journal of Consumer Psychology 22, no. 4, October 2012, pp. 507–519.

82 Seunghee Han, Jennifer S. Lerner, and Dacher Keltner, “Feel- ings and Consumer Decision Making: The Appraisal-Ten- dency Framework,” Journal of Consumer Psychology 17, no. 3, 2007, pp. 158–168.

83 Kathleen D. Vohs and Roy F. Baumeister, “Understanding Self-Regulation: An Introduction,” in eds. Roy F. Baumeister and Kathleen D. Vohs, Handbook of Self-Regulation: Research, Theory, and Applications (New York: Guilford Press, 2004), pp. 1–9.

84 Murat Usta and Gerald Häubl, “Self-Regulatory Strength and Consumers’ Relinquishment of Decision Control: When Less Effortful Decisions Are More Resource Depleting,” Journal of Marketing Research 48, no. 2, April 2011, pp. 403–412.

85 Siegried Dewitte, Sabrina Bruyneel, and Kelly Geyskens, “Self-Regulating Enhances Self-Regulation in Subsequent Consumer Decisions Involving Similar Response Conflicts,” Journal of Consumer Research, October 2009, pp. 394–405.

86 Uzma Khan and Ravi Dhar, “Where There Is a Way, Is There a Will?” Journal of Experimental Psychology 136, 2007, Journal of Experimental Psychology 136, 2007, Journal of Experimental Psychology pp. 277–288.

87 Alexander Chernev and David Gal, “Categorization Effects in Value Judgments,” Journal of Marketing Research, August 2010, pp. 738–747.

88 Remi Trudel and Kyle B. Murray, “Self-Regulatory Strength Amplification through Selective Information Processing,” Jour- nal of Consumer Psychology 23, no. 1, January 2013, pp. 61–73. nal of Consumer Psychology 23, no. 1, January 2013, pp. 61–73. nal of Consumer Psychology

89 Frank May and Caglar Irmak, “Licensing Indulgence in the Present by Distorting Memories of Past Behavior,” Journal of Consumer Research 41, no. 3, October 2014, pp. 624–641.

90 Kurt A. Carlson, Margaret G. Meloy, and Elizabeth G. Miller, “Goal Reversion in Consumer Choice,” Journal of Consumer Research 39, no. 5, March 2013, pp. 918–930.

91 For more about strategies for reducing desire and increasing willpower, see Stephen J. Hoch and George F. Loewenstein, “Time-Inconsistent Preferences and Consumer Self-Control,” Journal of Consumer Research, March 1991, pp. 492–507.

92 Iris W. Hung and Aparna A. Labroo, “From Firm Muscles to Firm Willpower: Understanding the Role of Embodied Cogni- tion in Self-Regulation,” Journal of Consumer Research, April 2011, pp. 1046–1064.

93 Vanessa M. Patrick and Henrik Hagtvedt, “‘I Don’t’ versus ‘I Can’t’: When Empowered Refusal Motivates Goal-Directed Behavior,” Journal of Consumer Research 39, no. 2, August 2012, pp. 371–381.

94 Danit Ein-Gar and Yael Steinhart, “The ‘Sprinter Effect’: When Self-Control and Involvement Stand in the Way of Sequential Performance,” Journal of Consumer Psychology 21, no. 3, July Journal of Consumer Psychology 21, no. 3, July Journal of Consumer Psychology 2011, pp. 240–255.

95 Rita Coelho do Vale, Rik Pieters, and Marcel Zeelenberg, “Fly- ing under the Radar: Perverse Package Size Effects on Con- sumption Self-Regulation,” Journal of Consumer Research 35, no. 3, 2008, pp. 380–390.

96 Hoch and Loewenstein, “Time-Inconsistent Preferences and Consumer Self-Control,” Journal of Consumer Research, March 1991, pp. 492–507.

97 Priya Raghubir and Joydeep Srivastava, “The Denomina- tion Effect,” Journal of Consumer Research, December 2009, pp. 701–713.

98 See Eduardo B. Andrade, “Behavioral Consequences of Affect: Combining Evaluative and Regulatory Mechanisms,”

PART PART P TWO | THE PSYCHOLOGICAL CORE70

132 Eric J. Johnson and J. Edward Russo, “Product Familiarity and Learning New Information,” Journal of Consumer Research, June 1984, pp. 542–550; Merrie Brucks, “The Effects of Prod- uct Class Knowledge on Information Search Behavior,” Jour- nal of Consumer Research, June 1985, pp. 1–16; and Alba and Hutchinson, “Dimensions of Consumer Expertise,” Journal of Consumer Research, March 1987, pp. 411–454.

133 Annamaria Lusardi, Olivia S. Mitchell, and Vilsa Curto, “Financial Literacy Among the Young,” The Journal of Con- sumer Affairs 44, no. 2, 2010, pp. 358–380.

134 Jessica Y. Y. Kwong, Dilip Soman, and Candy K. Y. Ho, “The Role of Computational Ease on the Decision to Spend Loy- alty Program Points,” Journal of Consumer Psychology 21, no. 2, April 2011, pp. 146–156.

135 Durairaj Maheswaran and Brian Sternthal, “The Effects of Knowledge, Motivation, and Type of Message on Ad Process- ing and Product Judgments,” Journal of Consumer Research, June 1990, pp. 66–73.

136 Jennifer Gregan-Paxton and Deborah Roedder John, “Con- sumer Learning by Analogy,” Journal of Consumer Research, December 1997, pp. 266–284.

137 Michelle L. Roehm and Brian Sternthal, “The Moderating Effect of Knowledge and Resources on the Persuasive Impact of Anal- ogies,” Journal of Consumer Research, September 2001, p. 257.

138 Michael K. Hui, Xiande Zhao, Xiucheng Fan, and Kevin Au, “When Does the Service Process Matter? A Test of Two Com- peting Theories,” Journal of Consumer Research 31, no. 2, 2004, pp. 465–475.

139 Liz Szabo, “Pink Ribbon Marketing Brings Mixed Emotions, Poll Finds,” USA Today, October 7, 2011, www.usatoday.com.

140 Ryan Wells, “Social and Cultural Capital, Race and Ethnicity, and College Student Retention,” Journal of College Student Retention 10, no. 2, 2008–9, pp. 103–128.

141 Jessica Derschowitz, “PewDiePie tops Forbes’ List of High- est-Paid YouTube Stars,” Entertainment Weekly, October 17, 2015, www.ew.com.

142 Douglas Holt, “Distinction in America? Recovering Bourdieu’s Theory of Taste from Its Critics,” Poetics 25, 1997, pp. 93–120.

143 Jennifer Gregan-Paxton and Deborah Roedder John, “Are Young Children Adaptive Decision Makers? A Study of Age Differences in Information Search Behavior,” Journal of Con- sumer Research, March 1995, pp. 567–580.

144 Catherine A. Cole and Gary J. Gaeth, “Cognitive and Age-Re- lated Differences in the Ability to Use Nutrition Information in a Complex Environment,” Journal of Marketing Research, May 1990, pp. 175–184.

145 John Pavlus, “How Ikea Designs Its (In)famous Instruction Manuals,” Fast Company Design, October 28, 2015, www.fast- company.com; and Lisa Boone, “IKEA Launches Share Space for Customers’ Project Photos,” Los Angeles Times, August 18, 2011, www.latimes.com.

146 Cynthia Crossen, “‘Merry Christmas to Moi’ Shoppers Say,” Wall Street Journal, December 11, 1997, pp. B1, B14.

147 June Fletcher and Sarah Collins, “The Lazy Gardener,” Wall Street Journal, June 6, 2001, pp. W1, W16.

148 Rajneesh Suri and Kent B. Monroe, “The Effects of Time Con- straints on Consumers’ Judgments of Prices and Products,” Journal of Consumer Research, June 2003, pp. 92–104; and Peter Wright, “The Time Harassed Consumer: Time Pressures, Distraction, and the Use of Evidence,” Journal of Applied Psy- chology, October 1974, pp. 555–561.

World (Chicago: American Marketing Association, 1960), pp. 389–398; Grahame R. Dowling, “Perceived Risk: The Con- cept and Its Measurement,” Psychology and Marketing, Fall 1986, pp. 193–210; and Lawrence X. Tarpey and J. Paul Peter, “A Comparative Analysis of Three Consumer Decision Strate- gies,” Journal of Consumer Research, June 1975, pp. 29–37.

116 James R. Bettman, “Perceived Risk and Its Components,” Jour- nal of Marketing Research, May 1973, pp. 184–190.

117 Vincent W. Mitchell and Michael Greatorex, “Consumer Pur- chasing in Foreign Countries,” International Journal of Adver- tising 9, no. 4, 1990, pp. 295–307.

118 “Marketing Briefs,” Marketing News, March 1995, p. 11. 119 Jacob Jacoby and Leon Kaplan, “The Components of Perceived

Risk,” in ed. M. Venkatesan, Advances in Consumer Research vol. 3 (Chicago: Association for Consumer Research, 1972), pp. 382–383; and Tarpey and Peter, “A Comparative Analysis of Three Consumer Decision Strategies,” Journal of Consumer Research, June 1975, pp. 184–190.

120 Melissa Burden, “AutoTrader: Certified Pre-Owned Car Sales to Grow,” Detroit News, November 6, 2014, www.detroitnews.com.

121 Vanitha Swaminathan, “The Impact of Recommendation Agents on Consumer Evaluation and Choice,” Journal of Con- sumer Psychology 13, no. 1 and 2, 2003, pp. 93–102.

122 Michael Tsiros and Carrie M. Heilman, “The Effect of Expira- tion Dates and Perceived Risk on Purchasing Behavior in Gro- cery Store Perishable Categories,” Journal of Marketing, April 2005, pp. 114–129.

123 Cornelia Pechmann, Guangzhi Zhao, Marvin E. Goldberg, and Ellen Thomas Reibling, “What to Convey in Antismoking Advertisements for Adolescents,” Journal of Marketing, April 2003, pp. 1–18.

124 Craig J. Thompson, “Consumer Risk Perceptions in a Com- munity of Reflexive Doubt,” Journal of Consumer Research 32, no. 2, 2005, pp. 235–248.

125 “Darn Tough Is Getting Darn Big,” The Barre Montpelier Times-Argus (VT), March 23, 2015, www.timesargus.com.

126 “Scottish Government Reveals Results of Social Marketing Campaigns,” The Drum, August 18, 2011, www.thedrum.co.uk; and “Scots Gov Launches Alcohol Awareness Social Media Campaign,” The Drum, January 13, 2011, www.thedrum.co.uk.

127 Kate Mead, “Here Comes the Sun,” Sunday Star Times (New Zealand), November 6, 2011, www.stuff.co.nz.

128 Priya Raghubir and Geeta Menon, “AIDS and Me, Never the Twain Shall Meet: The Effects of Information Accessibility on Judgments of Risk and Advertising Effectiveness,” Journal of Consumer Research, June 1998, pp. 52–63.

129 Shailendra Pratap Jain and Durairaj Maheswaran, “Motivated Reasoning: A Depth-of-Processing Perspective,” Journal of Consumer Research 26, March 2000, pp. 358–371; and Joan Meyers-Levy and Alice Tybout, “Schema-Congruity as a Basis for Product Evaluation,” Journal of Consumer Research, June 1989, pp. 39–54.

130 Deborah J. MacInnis and Bernard J. Jaworski, “Information Processing from Advertisements: Toward an Integrative Framework,” Journal of Marketing 53, October 1989, pp. 1–23.

131 Joseph W. Alba and J. Wesley Hutchinson, “Dimensions of Consumer Expertise,” Journal of Consumer Research, March 1987, pp. 411–454. For an excellent overview of measures of consumer knowledge or expertise, see Andrew A. Mitchell and Peter A. Dacin, “The Assessment of Alternative Mea- sures of Consumer Expertise,” Journal of Consumer Research, December 1996, pp. 219–239.

CHAPTER 2 | MOTIVATION, ABILITY, AND OPPORTUNITY 71

157 Hilary Milnes, “Digital DIY: How Home Depot and Lowe’s Stack Up Online,” DigiDay, June 3, 2015, www.digiday.com; and Adam Blair, “Lowe’s Mounts Multi-Channel Battle Plan,” Retail Information Systems News, August 23, 2011, http://ris- news.edgl.com.

158 Rajeev Batra and Michael L. Ray, “Situational Effects of Advertising Repetitions: The Moderating Influence of Motivation, Ability, and Opportunity to Respond,” Journal of Consumer Research, March 1986, pp. 432–435; Carl Ober- miller, “Varieties of Mere Exposure: The Effects of Process- ing Style and Repetition on Affective Response,” Journal of Consumer Research, June 1985, pp. 17–30; Arno Rethans, John L. Swazy, and Lawrence J. Marks, “The Effects of Television Commercial Repetition, Receiver Knowledge, and Com- mercial Length: A Test of the Two-Factor Model,” Journal of Marketing Research, February 1986, pp. 50–61; Sharmistha Law and Scott A. Hawkins, “Advertising Repetition and Con- sumer Beliefs: The Role of Source Memory,” in ed. William Wells, Measuring Advertising Effectiveness (Mahwah, N.J.: Lawrence Erlbaum Associates, 1997), pp. 67–75; and Giles D’Sousa and Ram C. Rao, “Can Repeating an Advertisement More Frequently Than the Competition Affect Brand Pref- erence in a Mature Market?” Journal of Marketing 59, no. 2, 1995, pp. 32–43.

159 Margaret C. Campbell and Kevin Lane Keller, “Brand Familiar- ity and Advertising Repetition Effects,” Journal of Consumer Research, September 2003, pp. 292–304.

160 Dan Ariely, “Controlling the Information Flow: Effects on Consumers’ Decision Making and Preferences,” Journal of Consumer Research 27, September 2000, pp. 233–248.

161 Ibid. 162 Ken Elkins, “Lowe’s Works to Bring Innovation into Space,

Closer to Home,” Charlotte Business Journal, October 29, 2015, www.bizjournals.com.

163 Sabrina Korber, “Retail’s ‘Beacon’ of Hope: Shopping That’s Personal,” CNBC, May 26, 2015, www.cnbc.com; and Hilary Milnes, “In the Race to Digitize, Nordstrom and Macy’s Are Neck-and-Neck,” DigiDay, May 7, 2015, www.digiday.com.

149 C. Page Moreau and Darren W. Dahl, “Designing the Solution: The Impact of Constraints on Consumers’ Creativity,” Journal of Consumer Research 32, no. 1, 2005, pp. 13–22.

150 Park and Young, “Consumer Response to Television Com- mercials”; Deborah J. MacInnis and C. Whan Park, “The Differential Role of Characteristics of Music on High and Low-Involvement Consumers’ Processing of Ads,” Jour- nal of Consumer Research, September 1991, pp. 161–173; and Shelly Chaiken and Alice Eagly, “Communication Modality as a Determinant of Persuasion: The Role of Communicator Salience,” Journal of Personality and Social Psychology, August 1983, pp. 605–614.

151 Kenneth Lord and Robert Burnkrant, “Attention Versus Dis- traction: The Interactive Effect of Program Involvement and Attentional Devices on Commercial Processing,” Journal of Advertising, March 1993, pp. 47–61; Kenneth R. Lord and Robert E. Burnkrant, “Television Program Effects on Com- mercial Processing,” in ed. Michael J. Houston, Advances in Consumer Research, vol. 15 (Provo, Utah: Association for Con- sumer Research, 1988), pp. 213–218; and Gary Soldow and Victor Principe, “Response to Commercials as a Function of Program Context,” Journal of Advertising Research, February– March 1981, pp. 59–65.

152 Baba Shiv and Stephen M. Nowlis, “The Effect of Distractions While Tasting a Food Sample: The Interplay of Informational and Affective Components in Subsequent Choice,” Journal of Consumer Research, December 2004, pp. 599–608.

153 Richard Yalch and Rebecca Elmore-Yalch, “The Effect of Numbers on the Route to Persuasion,” Journal of Consumer Research, June 1984, pp. 522–527.

154 Noel Capon and Roger Davis, “Basic Cognitive Ability Mea- sures as Predictors of Consumer Information Process- ing Strategies, Journal of Consumer Research, June 1984, pp. 551–564.

155 Nicole H. Lurie and Charlotte H. Mason, “Visual Representa- tion: Implications for Decision Making,” Journal of Marketing, January 2007, pp. 160–177.

156 Yeosun Yoon, Gülen Sarial-Abi, and Zeynep Gü Rhan-Canli, “Effect of Regulatory Focus on Selective Information Pro- cessing,” Journal of Consumer Research 39, no. 1, June 2012, pp. 93–110.

C H A P T E R 3

LEARNING OBJECTIVES

After studying this chapter, you will be able to

▸ Discuss why marketers are concerned about consumers’ exposure to marketing stimuli and what tactics they use to enhance exposure.

▸ Explain the characteristics of attention and how marketers can try to attract and sustain con- sumers’ attention with products and marketing messages.

▸ Describe the major senses that are part of perception and outline why marketers are con- cerned about consumers’ sensory perceptions.

▸ Discuss the process of comprehension, and outline how marketing-mix elements can affect consumer inferences about products and brands.

From Exposure to Comprehension

INTRODUCTION If consumers are to register any message after being exposed to an ad, an Instagram photo of a product, a package on the store shelf, or some other marketing element, they must pay attention to it, use their senses to determine its properties, and make sense of it (see Exhibit 3.1). When the Great Harvest Bake Company in Tempe, Arizona, offers customers a free slice of bread from a warm loaf just out of the oven, it’s appealing to four senses: vision, smell, taste, and touch. The bakery plays classic rock music in the background, add- ing the sensory appeal of sound.1 A variety of factors affect the four- step process of exposure, attention, perception, and comprehension, which also plays a role in and is influenced by knowledge stored in memory, as described in Chapter 4.

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at checkout counters in supermarkets, automotive stores, and restaurants. With growing interest in mobile checkout, which reduces or eliminates the time customers must wait to pay for purchases, traditional distribution and shelf posi- tion strategies are being reevaluated with an eye toward tar- geted exposure.4

3-1b SELECTIVE EXPOSURE While marketers can work hard to affect consumers’ expo- sure to certain products and brands, ultimately consum- ers control their exposure to marketing stimuli. In other words, consumers can and do actively seek out certain stimuli and avoid or resist others. One reason consumers want to avoid ads is that they are exposed to so many that they cannot possibly process them all. Consumers avoid ads for product categories they do not use (indicating that the ads are irrelevant to them); they also tend to avoid or mentally block out ads they have seen before because they know what these ads will say. When consumers avoid stimuli they find distracting—such as online ads located near content they want to focus on—they are likely to form negative attitudes toward those brands.5

Consumers’ avoidance of marketing stimuli is a major challenge for marketers. During an ad airing on cable or broadcast TV, consumers can mentally block it out, do something else, leave the room, or avoid it by zipping and zapping (see Exhibit 3.2). With zipping, consumers record TV shows with a DVR (digital video recorder) and fast-forward through the commercials when viewing the

shows later. Consumers zip through up to 75 percent of the ads in recorded shows—yet they can still identify the brand or product category in many of the ads.6 Consumers can also skip pre-roll commercials in online channels, such as YouTube. If such skipping or zipping occurs, an ad with extensive brand information in the center of the screen can have a positive influence on brand attitude.7 Also, despite skipping and zipping, prior exposure to an ad improves con- sumers’ recall of the message but increases con- sumers’ tendency to avoid previously seen ads.8

With zapping, consumers avoid ads by switch- ing to other channels during commercial breaks. Approximately 20 percent of consumers zap at any one time; more than two-thirds of house- holds with cable TV zap regularly. Men zap more than women do. People are more likely to zap commercials at the half-hour or hour mark than

during the program itself.9 Beyond skipping, zipping, and zapping, a growing

number of consumers are “cutting the cord” by drop- ping cable or satellite television subscriptions in favor of streaming services such as Netflix, Amazon Prime Video, and Hulu.10 Cord-cutting further challenges how marCord-cutting further challenges how marCord-cutting - keters plan for ad exposure, in part because audiences

3-1 Exposure and Consumer Behavior

Before an ad, a tweet, a product sample, or a store display can affect consumers, they must be exposed to it. Expo- sure means coming into physical contact with a stimulus. Marketing stimuli contain information about products or brands and other offerings communicated by either the marketer (via ads, Facebook messages, Vine videos, sales- people, brand symbols, packages, prices, and so on) or by nonmarketing sources (e.g., news media, word-of-mouth, and consumer reviews of a product).

The best products and services fail to be successful if consumers are not aware of them, and exposure is a pre- condition to this. Consumers can be exposed to market- ing stimuli at any stage of the decision-making process. To some extent, they can select what they will be exposed to and avoid other stimuli, as you know from your own experience. Because exposure is critical to influencing consumers’ thoughts and feelings, marketers want con- sumers to be exposed to stimuli that portray their offer- ings in a favorable light or at a time when consumers may be interested in such products.

3-1a FACTORS INFLUENCING EXPOSURE The position of an ad within a medium can affect expo- sure. Consumers’ exposure to online ads is more likely when the ads appear high on the search list. Exposure to magazine ads is greatest when they appear on inside cover (next to the table of contents) or on the back cover because the ads are in view whenever the magazine is placed face down. Also, consumers are most likely to be exposed to ads placed next to articles or within TV programs that interest them.2 Exposure to commercials is higher when they air at the beginning or end of a commercial break within a program, because consumers are still involved in the program or are waiting for the program to resume. Some advertisers spon- sor commercial-free TV programs in which the company gets product placement within the show product placement within the show product placement or airs a single ad before or after the show. Also, advertisers are placing product images and vid- eos in Facebook news feeds, on Pinterest boards, as pre-roll ads to YouTube videos, and on Twit- ter, where social-media users will be exposed to them (and, in the case of Pinterest, consumers can click to buy).3

Moreover, product distribution and shelf placement affect product distribution and shelf placement affect product distribution and shelf placement consumers’ exposure to brands and packages. The more stores carry the product or brand, the higher the likelihood that consumers will encounter it. Likewise, the product’s location (eye-level) or the amount of shelf space allocated to it can increase exposure to a product. Sales of some prod- ucts increase because of their higher exposure in displays

Exposure The process by which the consumer comes in physical con- tact with a stimulus.

Marketing stimuli Information about commercial offerings communicated either by the marketer (such as ads) or by nonmar- keting sources (such as word-of-mouth).

Zipping Fast-for- warding through com- mercials on a program recorded earlier.

Zapping Use of a remote control to switch channels during commercial breaks.

73CHAPTER 3 | FROM EXPOSURE TO COMPREHENSION

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE74

Exhibit 3.1 ▸ Chapter Overview: From Exposure to Comprehension Before you can pay attention to a marketing stimulus, you must be exposed to it. By allocating mental resources to a stimulus, you can perceive it and, finally, comprehend what it is, in the context of what you already know.

are more fragmented among multiple entertainment sources. Moreover, cord-cutters tend to have different media habits, viewing entertainment on computer screens or on mobile devices rather than on TV and viewing on demand, sometimes binge-watching multiple episodes of a series in quick succession.11

Cord-cutting shows that consumers are increasingly taking charge of where, when, and for how long they are exposed to certain stimuli, by watching online or on demand, for example, or by downloading programs to view now or later. As viewing shifts to Internet- and mobile-based streaming, and more consumers seek out

ExposuExposure • Selective exposure • Gaining exposure

Attention • Focal, nonfocal,

preattentive • Habituation

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organization

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Psychological Core �e

2 Motivation, Ability, Ability, Ability and Opportunity 3 From Exposure to Comprehension 4 Memory and Knowledge

5-6 Attitude Formation and Change

Consumer’s Culturure 11 Social Influences Social Influences

on Consumer Behavior 12 Consumer Diversity 13 Household and Social

Class Influences 14 Psychographics:Psychographics: V Values,alues,

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75CHAPTER 3 | FROM EXPOSURE TO COMPREHENSION

online content, the use of ad-blocking software by con- sumers is increasing. An estimated 200 million people worldwide have downloaded software to avoid being exposed to advertising.12 In some nations, nearly half of all Internet users have installed such software. This presents a major challenge to online sites that rely on advertising revenue to support content such as news and entertainment—and to marketers seeking to target online audiences.13

Exhibit 3.2 Exhibit 3.2 ▸ Selective Exposure Consumers can selectively control what marketing stimuli they view.

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Marketers start the process of gaining exposure by selecting media, such as Internet and social network- ing sites, television, radio, and product placements, and developing communications for targeted consumers. For example, to connect with younger consumers—often the most style-conscious and interested in self-expres- sion—Adidas coordinates multiple brand and product messages in multiple media. The firm is expanding its roster of professional hockey, basketball, and football players who endorse its products, to reinforce brand stature among sports fans. Adidas’s flagship NEO stores feature eye-catching, colorful displays and head-to- toe outfits geared to the fashion tastes of teenagers in Europe and beyond. Finally, the company plans special

events such as celeb- rity runs that put the brand in the social media spotlight.14

Di s t r i b u t i o n i s key to exposure at the retail level, and multiple exposures can be beneficial . According to recent research, consum- ers found innovative car des igns more appealing after mul- tiple exposures, while typical designs lost appeal over time. This effect carried over into actual sales, with atypical car designs outselling typical car designs after about three years. Thus, it

is important to keep innovative products on the mar- ket long enough for consumers to be exposed multiple times and to develop a positive impression.15

Marketers are trying other ways of gaining expo- sure for marketing stimuli, including advertising on racing cars, airport jetways, sports stadium turnstiles, and supermarket floors. Aspen Dental is one of sev- eral advertisers with a logo on Danica Patrick’s car and jumpsuit during NASCAR races.16 Mobile marketing is a fast-growing field as marketers experiment with cou- pons, apps, offers, contests, and other content viewed on consumers’ cell phones. Marketers are adapting their websites for smaller screens and enabling con- sumers to seamlessly access their shopping carts, cou- pons, rewards points, newsletters, and other elements whether they log in from a laptop, a desktop computer, or a smartphone.17 Marketers such as Woolworths in Australia have created virtual grocery shelves, projected on the walls of transit stations, to increase exposure and encourage purchasing via cell phone.18 These are all ways that marketers use to increase the “reach” of mes- sages about their products and brands, and to increase the number of transaction (purchase) possibilities that are open to consumers.

Marketers want to get their messages or prod- ucts noticed without alienating consumers, a real task when consumers feel bombarded by marketing stimuli. Therefore, some marketers are reaching out through media not yet saturated with messages. As the

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE76

processing activities discussed in the next few chapters. Thus, attention enables consumers to learn more effi- ciently from their exposure to marketing stimuli and make more informed decisions.

3-2a CHARACTERISTICS OF ATTENTION Three key characteristics of attention are shown in Exhibit 3.3. Attention (1) is limited; (2) is selective; and (3) can be divided.

Attention Is Limited Attention is limited. Consumers cannot possibly attend to all stimuli in the environment, even if they would want to see everything. However, consumers can attend to mul- tiple stimuli (such as products on store shelves) if pro- cessing them is relatively automatic, well-practiced, and effortless.23 When trying to learn a new skill, for instance, like playing an instrument or ordering books online, we need to pay close attention to each specific activity. With practice, we integrate sequences of activities into larger “chunks” and our attention is freed up for other things (The next chapter examines this in more detail).

Attention Is Selective Because attention is limited, consumers need to select what to pay attention to and simultaneously what not to pay attention to. Being surrounded by a potentially over- whelming number of stimuli, we pay less attention to things we have seen many times before.24 Attention can also be affected by goals: If we look at a package with the goal of learning how to use the product, we may be more likely to read the directions than to read about its ingre- dients.25 If we repeatedly pay selective attention to a par- ticular product and not to certain other products, we are more likely to choose the product that has captured our attention in the past, and reject those products we have previously ignored.26

Attention Can Be Divided We can divide our attentional resources over time, by allo- cating some attention to one task and some to another, or by very rapidly switching attention between tasks. At the same time, we can become distracted when one stimulus draws attention from another; if we are distracted from an ad, we devote less attention to it.27

3-2b FOCAL AND NONFOCAL ATTENTION These three characteristics of attention raise questions about what happens when we focus on a stimulus (focal about what happens when we focus on a stimulus (focal about what happens when we focus on a stimulus ( attention) while simultaneously being exposed to other stimuli (nonfocal attention). For example, can we process

any information from a roadside billboard in our peripheral vision if we are carefully focusing on the traffic on the road ahead of us? This example is about the information processing that can take place during nonfocal attention.

3-2 Attention and Consumer Behavior

While exposure reflects whether consumers encounter a stimulus, attention reflects how much mental activity they devote to it. A certain amount of attention is necessary for information to be perceived—for it to activate people’s senses. After consumers perceive information, they may pay more atten- tion to it and continue with the higher-order

image-messaging mobile app SnapChat gained popularimage-messaging mobile app SnapChat gained popular-- ity, for instance, Coca-Cola created video ads specifically ity, for instance, Coca-Cola created video ads specifically for the app’s Discover section. Knowing the app’s users for the app’s Discover section. Knowing the app’s users are teens and twenty-something consumers who typi-- cally are not attracted to traditional advertising, Coke’s cally are not attracted to traditional advertising, Coke’s videos featured the iconic bottle paired with mouth-videos featured the iconic bottle paired with mouth- watering foods revealed in layers, such as sandwiches watering foods revealed in layers, such as sandwiches with multiple fillings.19 Targeted e-mail marketing allows Targeted e-mail marketing allows firms to communicate regularly with consumers, offer-- ing product updates, promotional deals, and other con-- tent. Although Internet users resent uninvited messages tent. Although Internet users resent uninvited messages from companies, many will agree to receive e-mail if from companies, many will agree to receive e-mail if they see a benefit and can control the timing.

Television audiences are increasingly fragmented, Television audiences are increasingly fragmented, so advertisers are looking for ways to expand exposure so advertisers are looking for ways to expand exposure and make the most of their TV budgets. For commer-- cials that will air during high-profile TV programs such cials that will air during high-profile TV programs such as the Super Bowl and the Academy Awards, advertisers as the Super Bowl and the Academy Awards, advertisers are offering online previews and teasers, mobile mar-- keting extras, and social media promotions that build keting extras, and social media promotions that build buzz. Another way to encourage ad exposure is by giv-- ing consumers some choice about what and how they ing consumers some choice about what and how they watch. The TV website Hulu gives consumers the choice watch. The TV website Hulu gives consumers the choice of watching one long commercial or a number of sepa-- rate commercials, and even allows consumers to choose rate commercials, and even allows consumers to choose one interactive commercial instead of viewing multiple one interactive commercial instead of viewing multiple commercials during a program.20

Product placement within a television program or Product placement within a television program or movie is another way to increase exposure among view-- ers. For example, as many as 17 brands bought prod-- uct-placement “screen time” in the James Bond movie uct-placement “screen time” in the James Bond movie Spectre, including the champagne brand Bollinger, , including the champagne brand Bollinger, Omega watches, Heineken beer, Tom Ford suits, Sony Omega watches, Heineken beer, Tom Ford suits, Sony smartphones, and automotive brands Rolls-Royce, Jag-- uar, and Aston Martin.21 Product placement of luxury Product placement of luxury and regular brands in television programs, when com-- plemented by commercials that air during the programs, plemented by commercials that air during the programs, can increase the memorability of the ad and the brand can increase the memorability of the ad and the brand as well as increasing positive affect for these.22

Attention The amount of mental activity a consumer devotes to a stimulus.

CHAPTER 3 | FROM EXPOSURE TO COMPREHENSION 77

To the extent that we can process information from our peripheral vision even if we are not aware of doing so, we are engaged in preattentive processing. With preattentive processing, most of our attentional resources are devoted to one thing, which is the focus of attentive processing, leaving limited resources for something else. We devote just enough attention to an object in our peripheral vision to process something about it, but we are usually not aware something about it, but we are usually not aware something that we are absorbing and processing that information.

Do preattentively processed stimuli affect feelings about or choices of brands? Research suggests that con- sumers will like a brand name more if they have processed it preattentively than if they have not been exposed to it.28 Preattentive processing makes a brand name familiar, and we generally like familiar things.29 Preattentive process- ing of an ad can also affect consumers’ consideration of a product, even when they do not remember seeing the ad.30 In addition, emotions can play a factor in preatten- tive processing. If TV commercials can engage consum- ers emotionally, they can build strong brands even at low attention levels.31 Likewise, emotionally charged headlines in print ads can be processed preattentively, resulting in higher ad and brand awareness.32

Exhibit 3.3 Exhibit 3.3 ▸ Three Characteristics of Attention

Characteristic Example

Attention is limited: Consumers may miss Attention is limited: Consumers may miss Attention is limited: some stimuli, especially when in unfamiliar surroundings.

While watching TV with friends, a consumer may reduce the volume to pay more attention to what friends are saying.

Attention is selective: Consumers decide Attention is selective: Consumers decide Attention is selective: what to focus on at any one time, choosing not to focus on or mentally process other stimuli.

Shoppers cannot focus on every display or product in a store, so they must decide which they will pay attention to.

Attention can be divided: Consumers can Attention can be divided: Consumers can Attention can be divided: allocate some attention to one task and some to a different task, or rapidly switch between tasks.

While paying attention to their driving, consumers can also notice ads on billboards posted along a highway.

Preattentive processing The non- conscious processing of stimuli, such as in peripheral vision.

Although consumers can process general information (such as logos and brand names) preattentively, spe- cific information (such as about ingredients and direc- tions for use) will have more impact when consumers devote full attention to it. Unfortunately, a marketing stimulus competes with many other stimuli for atten- tion, and consumers may have limited motivation and

opportunity to attend to marketopportunity to attend to market- ing stimuli. Consequently, maring stimuli. Consequently, mar- keters often take steps to attract keters often take steps to attract consumers’ attention by making consumers’ attention by making the stimulus (1) personally relthe stimulus (1) personally rel- evant, (2) pleasant, (3) surprisevant, (2) pleasant, (3) surpris- ing, and/or (4) easy to process. ing, and/or (4) easy to process. They can use various research They can use various research methods to gauge consumers’ methods to gauge consumers’ attention to ads, packages, and attention to ads, packages, and products, as shown in Exhibit 3.4.products, as shown in Exhibit 3.4.

1.1. Make stimuli personally rel- evantevant. Stimuli are personally relevant when they appeal to relevant when they appeal to our needs, values, emotions, or our needs, values, emotions, or goals.33 If you are hungry, for

example, you are more likely to pay attention to food ads and packages. Products such as candy bars may make use of this by appealing to the need for energy to keep going, or the need for “a break” between tasks. A second

way is to show people who are similar to the target audience, such as “typical consumers” in an ad.34 A third way to increase personal relevance is by using

Exhibit 3.4 Exhibit 3.4 ▸ Studying Eye Movements to GGauge and auge and Improve Attention

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PART TWOPART TWOP | THE PSYCHOLOGICAL CORE78

dramas, mini-stories that depict the experiences of actors or consumers through a narrative in one or more ads. A fourth way to draw consumers into the ad is to ask rhetorical questions, such as “Would you like to win a million dollars?”35 These questions appeal to the consumer by including the word you and by asking the consumer (if only for effect) to consider answering the question.

2. Make stimuli pleasant. Because people tend to approach things that are inherently pleasant, market- ers can increase consumers’ attention to marketing stimuli by:

▸ Using attractive models. Ads containing attractive models have a higher probability of being noticed because the models arouse positive feelings or basic sexual attraction.36 Whereas attractiveness can be due to sheer beauty, similarity with the audience and expertise can be deemed attractive as well.

▸ Using music. Familiar songs and popular entertain- ers can attract us in pleasant ways.37 When Fiat Chrysler launched the Jeep Renegade, the head of marketing approached Interscope Records about a song for the introductory campaign. The X Ambassadors were in the process of recording a song titled Renegades for an Interscope music label, and it became the Jeep Renegade’s adver- tising theme music. “The genius here is that you tie the name of the car, which is ‘Renegade,’ to the mindset of the target, which is the millennial target,” explains Fiat Chrysler’s chief marketing officer.38

▸ Using humor. Humor can be an effective atten- tion getting device.39 For example, a commer- cial for Berlitz language schools shows a London double-decker bus landing, flying-saucer style, in Middle Eastern cities as locals flee. The tag line is: “Don’t be an alien in a foreign country.”40

Although roughly one in five TV ads contains humor, some are more successful at evoking laughter and in capturing and retaining viewers’ attention than others.41

3. Make stimuli surprising. Consumers are likely to pro- cess a stimulus when it is surprising by:

▸ Using novelty. We are more likely to notice any marketing stimulus (an ad, package, or brand name) that is new or unique, because it stands out relative to other stimuli. For example, Volvo attracted attention when it introduced its XC90 SUV model at the Los Angeles Auto Show using a

virtual reality commercial simulating a test-drive. Consumers accessed the commercial through a mobile app paired with the Google Cardboard virtual reality viewer.42 Although novel stimuli attract attention, people do not like extreme nov- elty. For example, we may dislike food with a taste or ingredients unlike that of foods we usually eat. Grasshopper Burgers may be new but appealing to only a few.43 Thus, the factors that make a stim- ulus novel may not be the same factors that make it likable, and ideally marketing stimuli will attract attention in a positive way.

▸ Using unexpectedness (see Exhibit 3.5). Unexpected stimuli may not necessarily be new to us, but their placement or content differs from what we are used to, arousing curiosity and causing us to analyze them further to make sense of them.44

In fact, unexpectedness can affect the extent to which consumers perceive an ad as humorous.45

For example, slapstick comedy has little to do with buying car tires, so consumers are apt to notice when Bridgestone uses such humor in TV commercials.46

▸ Using a puzzle. Visual rhymes, antitheses, met- aphors, and puns are puzzles that attract atten- tion in ads, because they require resolution. To understand puns and metaphors, a shared cultural background is needed, which makes it hard to use them in multinational campaigns—American consumers may not readily understand ads devel- oped in other countries, just as people from other cultures may not readily understand U.S. ads.47

Although ads that use a puzzle may capture and hold attention, it is important that consumers can solve it to prevent boomerang effects.

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Exhibit 3.5 Exhibit 3.5 ▸ Capturing Attention Consumers are more likely to pay attention to ads with Consumers are more likely to pay attention to ads with unexpected elements.

CHAPTER 3 | FROM EXPOSURE TO COMPREHENSION 79

Prominence intensity of stimuli that causes them to stand out relative to the environment.

Concreteness extent to which a stim- ulus is capable of being imagined.

4. Make stimuli easy to process. Marketers can enhance attention by boosting consumers’ ability to process the stimuli. Four characteristics make a stimulus easy to process:

▸ Prominent stimuli. Prominent stimuli stand out relative to the environment because of their intensity. The size or length of the stimulus can affect its prominence. For example, consumers are more likely to notice larger or longer ads than smaller or shorter ones.48 Increasing the amount of space devoted to text within an ad increases the viewers’ attention to the entire message; making ads less cluttered focuses attention on the brand, price, and promotion aspects of the message.49 Movement also increases prominence, which is why attention tends to be enhanced when a commercial uses dynamic, fast-paced action.50 Movement attracts attention even in the visual periphery, which is why Web ads often make use of it. Also, when choosing among com- peting products, consumers tend to buy products in packages that appear to be taller than others. Even the ratio of the dimensions of rectangular products or packages can subtly affect consumer preferences.51

▸ Concrete stimuli. Stimuli are easier to process if they are concrete rather than abstract.52 Con- creteness is defined as the extent to which we can imagine a stimulus. Notice how easily you can develop images of the concrete words in Exhibit 3.6 compared with your response to the abstract words. Concreteness applies to brand names as well, which is why a dishwashing liq- uid such as Sunlight may attract more attention than a competing brand named Joy. Marketers can improve purchase intentions by enhancing mental simulation of product use in a concrete way. Showing a mug of coffee in an ad with the handle on the right makes it easy for right- handed people to mentally visualize picking it up to take a sip.53

▸ Limited number of competing stimuli. A stimulus is easier to process when few things surround it to compete for your attention.54 You are more likely to notice a billboard when driving down a deserted rural highway than when in a congested, sign-filled city, just as you are more likely to notice a brand name in a

▸

Prominence The intensity of stimuli that causes them to stand out relative to the environment.

Concreteness The extent to which a stim- ulus is capable of being

visually simple ad than in one that is visually clut- tered. Companies seek moments and locations where competition for attention with their stimuli is limited.

▸ Contrast with competing stimuli. Contrast captures attention. Color newspaper ads stand out because they are surrounded by black and white, just as black-and-white TV ads stand out during TV shows broadcast in color. For contrast, some winemak- ers put images of unusual animals on their labels to help bottles stand out on the shelf.55 A study on retail advertising found that attention was highest when an ad differed from the other ads, and when these other ads were very similar to

each other.56

Therefore, attention to a stimulus is high when its signal-to-noise ratio is high. Promi- nent and concrete stimuli have a high “signal,” whereas the “noise” is low when there are few competing stimuli and the stimulus contrasts with those competitors (i.e., because compet- ing ads all look the same).

Exhibit 3.6 Exhibit 3.6 ▸ Concreteness and Abstractness We may pay more attention to things that are concrete and capable of generating images than we do to things that are abstract and difficult to represent visually.

Concrete Words Abstract Words

Apple Aptitude

Bowl Betrayal

Cat Chance

Cottage Criterion

Diamond Democracy

Engine Essence

Flower Fantasy

Garden Glory

Hammer Hatred

Infant Ignorance

Lemon Loyalty

Meadow Mercy

Mountain Necessity

Ocean Obedience

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE80

clothes softest based on its smell and color, and so on. Consumers constantly and mostly automatically deter- mine such properties of marketing stimuli using their senses and knowledge of the world. Some of these percep- tions are about physical properties such as the size, color, pitch, loudness, smell, and softness of stimuli, while oth- ers are meanings associated with these properties, such as whether something feels luxurious.

3-3a PERCEIVING THROUGH VISION What arouses our visual perception? All of the following factors can combine to impact the beauty or aesthetic qualities of a product or package.60

Size and Shape Consumers perceive that packages in eye-catching shapes contain more of a product.61 When product or package size is changed, consumers are less sensitive when the change involves only one dimension (height or length or width) than when the change involves all three dimen- sions. Thus, consumers may “supersize” their order when a product is enlarged along only one dimension, but

“downsize” when the product is enlarged along all dimensions, a change more easily perceived.62 In fact, consumers may not notice downsizing of up to 24 percent if the package shape is elongated at the same time.63

Lettering The size and style of the lettering on a product or in an ad can attract attention and support brand recognition and image.64 The distinctive, curly Coca-Cola script, for instance, is not only eye-catching but also is instantly identified with

the soft-drink brand and expresses its classic meaning.

Image Location on Package Where product images are located on a package can influ- ence consumers’ perceptions and preferences. Images located near the package top, on the left side, or at top-left add to the perception of a product as “lighter.” On pack- ages of products where “lighter” is perceived positively— such as healthy snacks—the images should be placed in these “lighter” locations.65

Color Color is a crucial factor in visual perception. A color can be described according to hue, saturation, and lightness. Hue is the pigment contained in the color. Colors can be classi- fied into two broad categories of hues: warm colors such as red, orange, and yellow and cool colors such as green, blue, and violet. Saturation (also called chroma) refers to the richness of the color, leading to distinctions such as pale pink or deep, rich pink. Lightness refers to the depth of tone in the color. A saturated pink could have a lot of lightness (a fluorescent pink) or a lot of darkness (a mauve).

3-2c CUSTOMER SEGMENTS DEFINED BY ATTENTION

If we do pay attention to things that are relevant, pleasant, surprising, and easy to process, can we identify consumer segments that are more affected by relevance, pleasantness, surprise, and ease of processing? The answer appears to be yes. Researchers have identified a segment of consumers who paid minimal attention to an ad because the elements were not relevant to them. A second segment focused on visually pleasant elements of the ad, such as the picture. The third and last segment spent the longest time looking at the ad and devoted equal time to the picture, package, headline, and body text, perhaps because they viewed the product as personally relevant and its purchase as poten- tially risky. Hence, the consumers needed sustained atten- tion to properly evaluate the ad’s information.57

3-2d HABITUATION When a stimulus becomes familiar, it can lose its atten- tion-getting ability, a result called habituation or wear-out. For example, think about the last time you purchased something new for your living room (such as a picture or vase). For the first few days, you prob- ably noticed the object every time you entered the room. Over time, however, you probably noticed the item less and less, as you became habituated to it. It has ceased to be part of the foreground, and became part of the background.

In the same way, consumers become habit- uated to ads, packages, and other marketing stimuli. To counter this, marketers can alter the stimulus periodically. For example, many com- panies develop multiple ads that communicate the same basic message but in different ways and different media. Habituation also explains why marketers some- times change packaging to attract consumers’ attention anew. Kellogg is now marketing breakfast cereals in sin- gle-serve pouches, an unusual type of packaging for this category, to meet the needs of on-the-go consumers and to capture their attention at the store level.58

3-3 Perception and Consumer Behavior

After we have been exposed to a stimulus and have devoted at least some attention to it, we are in a position to perceive it. Perception is the process of determining the properties of stimuli using one or more of our five senses: Vision, hearing, taste, smell, and touch.59 For instance, consumers judge how much soft drink a can will contain based on its width and height, how much food a plate con- tains based on the size, which car will drive fastest based on the color (red or green) and the engine’s sound (low pitched or high pitched), which fabric softener will make

Habituation The process by which a stimulus loses its attention-getting abilities by virtue of its familiarity.

Perception The pro- cess of determining the properties of stimuli using vision, hearing, taste, smell, and touch.

CHAPTER 3 | FROM EXPOSURE TO COMPREHENSION 81

brand’s sounds, syllables, and words—a process known as sound symbolism.74 For instance, the name of Nissan’s LEAF electric car reminds consumers of the product’s environmental benefits. In addition, because electric cars are very quiet, Nissan created a pleasant, turbine-like hum as a distinctive, non–gasoline-engine noise to signal LEAF’s smooth acceleration and deceleration.75 In addi- tion, consumers will have positive feelings about a brand name with sound repetition in its phonetic structure when spoken aloud, which in turn improves brand evaluations and product choice, such as for Hubba Bubba chewing gum.76 Background noise can also affect consumer behav- ior: a moderate level of ambient noise (such as people con- versing in a store) stimulates abstract thinking, which in turn can enhance the likelihood that consumers will buy an innovative product.77

3-3c PERCEIVING THROUGH TASTE Food and beverage marketers stress taste perceptions in their marketing stimuli. For example, the major challenge for marketers of low-calorie and low-fat products is to provide healthier foods that still taste good and that, per- haps more importantly, are perceived as such. Yet what tastes good to one person may not taste good to another, and consumers from different cultural backgrounds may have different taste preferences. Interestingly, tasting or sampling a product is the in-store marketing tactic that most influences consumer purchasing, even though stand- alone, in-store displays—perceived through vision—are the marketing tactic that shoppers notice the most.78 “If you see a four-pack of Oogavé sodas on the grocery shelf alongside all the other soda options, you may not put it in your shopping cart,” explains the head of the small Colo- rado-based company that makes these all-natural drinks sweetened with agave. “But once you’ve tried it, you’ll go looking for it.”79

Food marketers also understand how the sensory tex- ture of food being chewed affects calorie perceptions. Research shows that when consumers taste foods with a hard or rough texture, they perceive these to be lower in calorie than foods with a soft or smooth texture, perhaps because smooth is associated with fat and this is associ- ated with calories.80 The next chapter describes such asso- ciations with products and brands in more detail.

3-3d PERCEIVING THROUGH SMELL If you were blindfolded, you (like most consumers) would probably have a hard time identifying many supermarket items based on smell.81 However, consumers also differ in their ability to label odors. Compared with younger con- sumers, the elderly have a harder time identifying smells,82 and women in general are better at the task than men are.83 Marketers are concerned with the effects of smell on consumer responses, product trial, liking, and buying.

Diagnostic colors are important for attention and per- ception, such as pink for skincare or blue for the Nivea brand of skincare products. These help consumers to quickly determine the product and brand being adver- tised, even when the message is shown very fast, in the visual periphery, or with many competing ads.66

Color also can influence our physiological responses and moods: Warm colors generally encourage activity and excitement, whereas cool colors are more soothing and relaxing. Thus, cool colors are more appropriate in places such as spas or doctors’ offices, where it is desirable for consumers to feel calm or to spend time making deci- sions. Warm colors are more appropriate in environments such as health clubs and fast-food restaurants, where high levels of activity are desirable. Red appears to arouse an aggressive response and to elicit higher bid increments when used as the background color of an online auction screen.67

Finally, colors can have a great effect on consumers’ liking of a product. Defying the stainless steel trend in kitchen appliances, General Electric recently introduced two bright new refrigerator colors with retro appeal: Cup- cake Blue and Red Pepper.68 Interestingly, research sug- gests that consumers of multiple racial groups have an inherent preference for the color white versus the color black in products and advertising messages.69

Appearance of Being New or Worn Research shows that consumers react differently to money—specifically, paper currency—depending on whether the bills look crumpled and well-worn or crisp and new. Consumers spend worn bills more readily than new bills, because they are disgusted at the thought of the used money having passed through so many hands. On the other hand, they will keep fresh, crisp bills because they can feel good about spending this currency when they are in public.70

3-3b PERCEIVING THROUGH HEARING Sound represents another form of sensory input. Percep- tion of sound (auditory stimuli) depends on its inten- sity.71 Of course, consumers are more likely to notice loud music or voices and stark noises. When the announcer in a radio or TV ad speaks more quickly, the faster pace disrupts consumers’ processing of the information; a low- pitched voice speaking syllables at a faster-than-normal rate induces more positive ad and brand attitudes.72 When a company uses one person to speak the voice-over lines during many of its ads or plays the same jingle in many commercials, consumers associate those sounds with the product or brand. Apple, Skype, Microsoft, and other firms consciously seek to define a certain sonic identity— using specific music or sounds to identify a brand.73

Further, consumers infer product attributes and form evaluations using information gleaned from hearing a

PART TWOPART TWOP | THE PSYCHOLOGICAL CORE82

or carpeting, consumers prefer goods they can touch in stores more than products they only see and read about online or in catalogs.92

The mere touching of a product (or imagining the action of touching it) can already increase a consumer’s perceived ownership of the item.93 Also, consumers who are briefly touched by a salesperson are more likely to have positive feelings and more likely to evaluate both the store and the salesperson positively. In addition, custom- ers who are touched by the salesperson are more likely to comply with the salesperson’s requests.94 However, reac- tion to touch in sales situation differs from culture to culture. Consumers in Latin America are more comfort- able with touching and embracing than U.S. consumers. In Asia, touching between relative strangers is commonly seen as inappropriate.95 Another interesting finding is that consumers have higher evaluations of a product that has been touched by an attractive member of the opposite sex, such as a good-looking salesperson or model.96 This finding shows the symbolic nature of consumer behavior, which Chapter 16 treats in further detail.

Although marketers might attempt to control how con- sumers perceive marketing stimuli, sensory perceptions are sometimes affected by subtle cues in the environment. For example, exposure to dryness-related images or words can lead consumers to feel thirstier and less energetic, influencing the effort they will invest in decisions.97 The temperature of an item or a room can also be a factor. Consumers deal more effectively with complex choices in cooler surroundings, because feeling too warm can deplete cognitive resources.98 Yet warm temperatures typi- cally elicit positive reactions and increase consumers’ eval- uation of products.99 Interestingly, consumers perceive the temperature of a restaurant to be lower when they are eating alone, a finding relevant to marketing in-restaurant dining experiences.100

▪ Effects of smells on physiological responses and moods. Smell produces both physiological and emotional responses. Some studies show that people can feel tense or relaxed depending on whether or not a scent is present and what it is.84 This theory has been key to the development of aromatherapy. Some of our most basic emotions are also linked to smell. For example, children hate having their security blankets washed, in part because washing removes comforting smells. In addition, the smell of the ocean, freshly baked cookies, or apple pie can revive emotional or child- hood memories.85

▪ Effects of smell on liking. Retailers, in particular, rec- ognize that smells can attract consumers. For exam- ple, The NetCost supermarket in New York City adds grapefruit aroma in its produce department to attract shoppers. Since NetCost began doing this, fruit and vegetable sales have increased 7 percent.86 Similarly, grocery retailers often locate in-store bakeries up front so that the aroma of fresh bread can be smelled at the main entrance.

▪ Effects of smell on product trial. Smell (often in com- bination with other sensory perceptions) can entice consumers to try or buy a food product. Research suggests that scents in the air can be effective stim- uli when related to the product being sold—yet the fit between scent and product is crucial. Thus, a flowery aroma is more appropriate for a lingerie store than for a coffee bar.87 Some “scratch-and-sniff ” ads for perfumes and after-shave lotions are doused with the product to increase sensory processing. However, this technique can backfire if consumers are offended by or have allergic reactions to scents.

▪ Effects of smell on buying. Providing a pleasant-smell- ing environment can have a positive effect on shop- ping behavior by encouraging more attention to relevant stimuli that consumers encounter, and encouraging consumers to linger longer.88 Aber- crombie & Fitch scents its stores with its branded fragrances, such as the men’s fragrance Fierce, for a pleasing shopping experience that appeals to its target market.89

3-3e PERCEIVING THROUGH TOUCH Although individual preferences vary, touch (both what we touch with our fingers and the way things feel as they come in contact with our skin) is an important aspect of many offerings.90 Consumers like some products because of their feel. Some consumers buy skin creams and baby products for their soothing effect on the skin. In fact, consumers who have a high need for touch tend to like products that provide this opportunity.91 When consid- ering products with material properties, such as clothing

Sensory marketing is the process of systematically man- aging consumers’ perception and experiences of mar- keting stimuli.101 Many companies seek to enhance consumer perception of marketing stimuli by appealing to the five senses (see Exhibit 3.7).

Vision

Color preferences are in part affected by gender, with men preferring certain colors and women other colors, which marketers must consider when planning mar- keting stimuli.102 Because colors can strongly influence attention to and liking of a product, marketers often rely on the advice of “color forecasters” when deciding

CHAPTER 3 | FROM EXPOSURE TO COMPREHENSION 83

which colors to use in products and on packages. Why? Because color can make consumers believe they are buying products that are very current or spark nostal- gia for earlier times. Color is also important in percep- tions of service marketers and their staff. For example, MGM Grand hotel in Las Vegas projects a contemporary image by updating the color and style of employees’ uni- forms when it redecorates restaurants and other hotel facilities.103 The National Football League has experi- mented with a “Color Rush” campaign in which teams wear monochromatic uniforms in bright hues during selected games as a way to break the routine and gen- erate buzz.104

Another important point about vision: Consumers’ sensory experiences of a product can be influenced by the shape of the packaging and the label, as well as the sound symbolism of the brand name.105 Products in the center visually attract more attention. Therefore, con- sumers usually choose a product from the center of the shelf rather than a product from the side of the shelf.106

Also, recent research shows that seeing more pictures of products being compared can confuse consumers’ per- ceptions and increase choice uncertainty.107 Finally, the level of light intensity can make a difference: Brighter

light increases affective intensity and dimmer light reduces affective intensity.108

Hearing

Fast music, like that played at aerobics classes, tends to energize; in contrast, slow music can be soothing. The type of music being played in a retail outlet can affect shopping behavior.109 A fast tempo creates a more rapid traffic flow, whereas a slow tempo can increase sales as much as 38 percent because it encourages leisurely shopping (although consumers are unaware of this influ- ence).110 A fast tempo is more desirable in some restau- rants because consumers will eat faster, facilitating greater turnover and higher sales.111 For example, radio ads for the In-N-Out hamburger chain use a slightly retro, fast-paced jingle to reflect both old-fashioned quality and speedy service.112 Likable and familiar music can induce good moods, whereas discordant sounds can induce bad moods. This effect is important to note because, as you will see in later chapters, bad moods may affect how peo- ple feel about products and consumption experiences.113

Sounds have been increasingly used as trademarks, and some are registered as “sound logos,” such as the lion’s roar of the MGM entertainment company.

Taste

Marketers often try to monitor consumers’ tastes through taste tests. Many food and beverage prod- ucts are thoroughly taste tested before they are intro- duced. Ads or food packages sometimes ask consumers to compare the product’s taste with that of competing products. However, consumers are not always good at discerning taste, so marketers should consider adding descriptive words or pictures to marketing communica- tions about foods, restaurants, and the like.114 To engage consumers, some marketers mention taste in an unex- pected way. For instance, the slogan of Buckley’s Cough Mixture for more than 25 years has been: “It Tastes Awful. And It Works.”115 Marketers such as Frito-Lay use crowdsourcing to involve consumers in submitting and voting on new product flavors.116

Taste can, at times, interfere with the positive effect of marketing messages, as happened in a study where consumers ate popcorn or chewed gum while view- ing commercials for foreign brands.117 Also, the order in which food products such as chocolates are sam- pled and the sensory similarities or differences among samples can influence consumer choices. When the products have sensory similarity, consumers tend to prefer the item sampled first. However, when products have sensory dissimilarities, consumers prefer the item

Exhibit 3.7 Exhibit 3.7 ▸ Perception Through Senses Some products are valued because of the smells they evoke.Some products are valued because of the smells they evoke.

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