Overview of Consumer Behavior

8/17/2019 Overview of Consumer Behavior

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NTRODUCTION TO CONSUMER BEHAVIOR

• Overview of Consumer Behavior

• Consumerism, Public Policy, and Ethics

2: INTRINSIC INFLUENCES

• Consumer Information Processing

• Cognitive Learning and emory

• Behavioral Learning

• !ocial Influence and Com"liance #echni$ues

• otivation and %ffect

• Personality and Psychogra"hics

• #ri"artite odel and %ttitude easurement

• Beliefs, %ttitudes, and Behavior Change: the &ishbein odel

• Persuasion

• EL: Involvement, 'nowledge, and Persuasion

• Consumer (ecision Processes

): EXTRINSIC INFLUENCES

• Environmental and !ituational Influences

• *rou" Influences

•

+ouseholds and &amilies

• Cultural and International Issues

• !ubculture

OE-IE.

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CONSUMER BEHAVIOR

the study of e/change "rocesses involved inac$uiring, consuming, and dis"osing of goods, services, e/"eriences, and ideas

#he study of consumer behavior 0CB1 incor"orates theories and conce"ts from all of the behavioralsciences:

• cognitive, e/"erimental, social "sychology

• sociology

• anthro"ology

• economics

• etc3

Acquisition:#he factors that influence the "roduct4service choices of consumers3 uch of CB research has focusedon this stage3 E3g3, how did you decide to "urchase one brand of car over another5

Consumption:+ow consumers actually use a "roduct4service3 E3g3, what sorts of attitudes are you forming during thetime that you own a car, and how does this affect future "urchases5

Disposition:.hat consumers do with a "roduct once they have com"leted their use of it3 E3g3, if you "urchase a newcar several years later, do you 6ee" the old one, trade it in, sell it yourself through the news"a"er, give it

to a friend, or have it towed to a 7un6 yard5

PERSPECTIVES TOARD THE STUD! OF CB

M"#$%t%#:+ow to best satisfy the wants and needs of a target mar6et3

Consum%#:+ow to become a better consumer by learning how "eo"le go about consum"tion activities and howmar6eters sell "roducts3

Pu&'ic po'ic( m"$%#:+ow to ma6e rules, regulations, or laws which influence mar6eters and consumers in the mar6et"lace3

INFLUENCES ON CONSUMER BEHAVIOR


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Int#insic:Individual, internal influence factors: "ersonality, motivation, beliefs, attitudes, etc3

E)t#insic:E/ternal factors of influence:

• grou" influences, such as culture, family, reference grou"s

• environmental and situational factors, such as time of day, tem"erature, etc3

PERSPECTIVES ON AC*UISITION BEHAVIOR

D%cision+m"$in,Consumers move through a series of ste"s when ma6ing a "urchase:

• "roblem recognition

• search

• alternative evaluation

• choice

• "ost "urchase evaluation

• E3g3, we might go through the above ste"s in buying an e/"ensive "roduct such as a car orhouse3 In the study of consumer behavior, we are less interested in whether or not this generic

model is the 8correct8 model, and are more interested in the sorts of factors that influence this asa generic model3 +ence, we are interested in the intrinsic and extrinsic influences on this model3

E)p%#i%nti"':Po"le do not always ma6e "urchases according to a rational decisionma6ing "rocess9 they sometimesbuy "roducts to have fun, create fantasies, and obtain emotions and feelings3

• E3g3, concerts, movies, cam"ing: these are e/"eriences that do not result in the ownershi" of a"hysical thing, but rather result in a "leasant 0or un"leasant1 memory3 .hy would someone goout to eat at a fancy restaurant when they could ma6e dinner at home for less cost in money andtime5

B%-".io#"':

Environmental forces "ro"el consumers to ma6e "urchases without necessarily first develo"ing strongfeelings or beliefs about the "roduct3

• E3g3, using a cou"on, res"onding to a contest, feeling "roud when the national song is "layed3 Ifthe national song is "layed during commercials for a "olitical candidate, we might later associatea feeling of "ride with that candidate 0classical conditioning1 even though we otherwise 6nownothing substantial about the candidate3


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EXCHAN/Ea transfer of something,tangible or intangibleactual or symbolicbetween two or more social actors

E/change occurs between organizations as well as between organiations and household consumers3

E/changes can be

• simple: involves two "arties in a reci"rocal relationshi"

• complex : involves a set of three or more actors enmeshed in a set of mutual relations

RESOURCES OF EXCHAN/E:

• money

• goods

• services

• information

• status

• feelings

TO MODELS OF EXCHAN/E

01 Hom"ns2 &"sic %)c-"n,% %qu"tion:

Profit = Rewards - Costs

.hen would satisfaction be the result5

31 %quit( t-%o#(:

Outcomes of A / Inputs of A vs3Outcomes of B / Inputs of B



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P;BLIC POLIC?@1

• &ederal #rade Commission 0C, =>=A1

• ational +ighway #raffic !afety %dministration 0+#!% =>?1

• Consumer Product !afety Commission 0=>21

#hese organiations attem"t to ensure that all mar6eters are on an even "laying field, and that the mar6et

is fair for buyers3

RE/ULATOR! ENVIRONMENT 4U5S51

• =>@?s=>?s: increase in government regulation

• =>D?s: increase in government deregulation activities

• =>>?s: increase in reregulation activities5

NOTE: Industry selfregulation is 7ust as im"ortant as government regulation3 E3g3, (%, local BBB3 #he(irect ar6eting %ssociation would li6e to ensure as much as "ossible that "eo"le are not being botheredby unscru"ulous telemar6eters9 the local Better Business Bureau would li6e to ensure as much as"ossible that "eo"le have trust in the local business community3

CONSUMERISMthe set of activities of government, business, inde"endent organiations, and concerned consumers thatare designed to "rotect the rights of consumers

e3g3:

• Consumers ;nion Consumer -e"orts

• aders -aiders

SOME PUBLIC POLIC! ISSUES


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D%c%pti.% A6.%#tisin,:an ad which has the ca"acity to deceive a measurable 02? to 2FG1 segment of the "ublic

A6.%#tisin, Su&st"nti"tion:C 0;3!31 idea that com"anies must "rovide evidence for the truth of their claims

Co##%cti.% A6.%#tisin,:advertising that is mandated by a federal agency 0;3!31 to correct consumer im"ressions that wereformed by "reviously misleading advertising

CORPORATE SOCIAL RESPONSIBILIT!idea that business has an obligation to hel" society with its "roblems by offering some of businesssresources

CO!;E- I&O-%#IO P-OCE!!I*

CONSUMER INFORMATION PROCESSIN/the "rocess through which consumers are

=3 e/"osed to information

23 attend to it

)3 com"rehend it

A3 "lace it in memory and

F3 retrieve it for later use3

PERCEPTIONthe "rocess through which individuals are

• e/"osed to information,

• attend to the information, and

• com"rehend the information

E)posu#%:consumers receive information through their senses

Att%ntion:consumers allocate "rocessing ca"acity to a stimulus

Comp#%-%nsion:consumers inter"ret the information to obtain meaning from it


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THE EXPOSURE STA/Ea consumers sensory organs are activated by a stimulus

s%'%cti.% %)posu#%:

consumers can actively choose whether or not to e/"ose themselves to information

• e3g3, i""ing and a""ing through a video ta"e 0fast forwarding through commercials or turning off the sound during commercials1

s%ns"tion:the stimulation of a "ersons sensory rece"tors and the transmission of the sensory information to thebrain

.hether or not a stimulus is actually detected de"ends on its intensity:

"&so'ut% t-#%s-o'6:

the lowest level at which a stimulus can be detected F?G of the time3

.hy do # commercials seem louder than the "rogram material5

su&'imin"' p%#c%ption:the idea that stimuli "resented below the level of conscious awareness might influence behavior andfeelings

THE EXPOSURE STA/E

7ust Notic%"&'% Di88%#%nc% T-#%s-o'6 47ND1the minimum amount of difference in the intensity of a stimulus that can be detected F?G of the time

%&%#2s L"9as the intensity of the stimulus increases, the ability of a "erson to detect a difference between the twolevels of the stimulus decreases

THE EXPOSURE STA/E

Consum%# A6"pt"tion:the amount or level of the stimulus to which the consumer has become accustomed

a reference "oint to which changes in the level of the stimulus are com"ared

Butt%#8'( Cu#.%:at the ada"tation level, consumer "reference for a stimulus declines because the "erson has becomehabituated to the stimulus

"reference for a stimulus is greatest at "oints 7ust higher or lower than the ada"tation level


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.hy are fashions constantly changing5

THE ATTENTION STA/Ethe allocation of cognitive ca"acity to an ob7ect or tas6

T(p%s o8 Att%ntion

• .o'unt"#( "tt%ntion:

consumers actively search out information that has "ersonal relevance

• s%'%cti.% "tt%ntion:

consumers selectively focus attention on relevant information

• in.o'unt"#( "tt%ntion:

consumer is e/"osed to something sur"rising, novel, threatening, or une/"ected e3g3:

o sur"rise

o movement

o unusual sounds

o sie of stimulus

o contrast effects

o color

THE COMPREHENSION STA/Ethe "rocess through which individuals organie and inter"ret information

P%#c%ptu"' O#,"ni"tionthe way "eo"le "erceive sha"es, forms, figures, and lines in their visual world

/%st"'t Ps(c-o'o,(:attem"ts to understand how "eo"le "erceive "atterns in the world

THE COMPREHENSION STA/E

Int%#p#%t"tion p#oc%ss%s:"eo"le draw u"on their e/"erience, memory and e/"ectations to attach meaning to a stimulus


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E)p%ct"tions:"rior beliefs about what should ha""en in a given situation can influence the inter"retation of information

S%miotics:how it is that "eo"le inter"ret meaning from signs

• signs words, gestures, "ictures, "roducts, and logos used to communicate information

CONSUMER INVOLVEMENTthe "rocess through which individuals are influenced by the

• "erceived "ersonal im"ortance and4or

• interest

evo6ed by a stimulus

Personal im"ortance increases as "erceived ris6 increases3

%s involvement increases, consumers have greater motivation to com"rehend and elaborate oninformation salient to the "urchase3

+igher levels of involvement are e/"ected to result in

• a greater de"th of information "rocessing

• increased arousal

• more e/tended decision ma6ing

&actors which can influence "urchase involvement:

• situation

• "roduct

• "ersonality

• communication

CO*I#IE LE%-I* %( EO-


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• S%nso#(

o "reattention stage

o brief analysis to determine if additional "rocessing ca"acity should be devoted to stimulus

• S-o#t+T%#m

o where information is actively "rocessed

• Lon,+T%#m

o where information is stored after encoding for later retrieval

encoding:the "rocess of transferring information from short to longterm memory for "ermanent storage

retrieval:the "rocess of accessing information stored in longterm memory so that it can be utilied in shorttermmemory

MULTIPLE STORE MODEL OF MEMOR!

• S%nso#( R%,ist%#4s1

o the immediate im"ression caused by the firing of the sensory nerve cells

o "reattentive: determines if additional ca"acity should be allocated to "rocessing stimulusinformation

• S-o#t+T%#m M%mo#( 4STM1

o a363a3 wor6ing memory

o where information is tem"orarily stored while being "rocessed

o rehearsal can be used to refresh !#, as when silently re"eating a "hone number "riorto dialing

• Lon,+T%#m M%mo#( 4LTM1

o essentially unlimited in ca"acity

o can store information "ermanently


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MULTIPLE STORE MODEL OF MEMOR!

• S%nso#( R%,ist%#4s1

o briefly hold 0fractions of seconds1 information in"uts

o very limited in ca"acity

• S-o#t+T%#m M%mo#( 4STM1

o a363a3 wor6ing memory

o can hold information for tens of seconds

o used for integrating in"uts and L# in8thin6ing8

o limited in ca"acity

• Lon,+T%#m M%mo#( 4LTM1

o holds information for long "eriods of time 0years1

o 8unlimited8 ca"acity

MILLER2S LA:E/"anding the Limits of !#

Recall!# seems to be ca"acity limited at around seven bits of information, "lus or minus two

C-un$in,:the mental "rocess of grou"ing together several "ieces of information and treating them as a single set

% chun6 uses about the same amount of ca"acity as a bit3

INFORMATION OVERLOAD:when more information is received than can be "rocessed in shortterm memory

INVOLVEMENT AND SHORT+TERM MEMOR! CAPACIT!

Hi,-%# in.o'.%m%nt3 3 3 3 3 HHHH higher arousal3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 HHHHhigher ca"acity

Lower levels of involvement suggest lower ca"acity for information "rocessing3


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.hat are the im"lications for advertising5

LON/ TERM MEMOR!

T%stin, LTM:

recognition tas! "erson is as6ed to 7udge if information that is "resented has been seen "reviously

recall tas! "erson must retrieve the information from longterm memory

Consi6%#"tion S%t 0evo6ed set1the set of alternative brands that a consumer regards as acce"table for further consideration9 ones whichare recalled 0enter !#1

LON/+TERM MEMOR!

#wo basic ty"es of interest to consumer researchers:

Episo6icrefers to memories associated with events or e"isodes in our e/"eriences

• e3g3, your first date

S%m"ntic

refers to facts and other information that we store through language9 verbal material

• e3g3, how to do addition

0ote: owen also distinguishes between semantic and visual memory3 #he notion of an associativenetwor6 suggests that we do not sim"ly store most information in a language format: the storage is in aholistic form much li6e a laser hologram3 owen notes that "ictorial information is recognied andrecalled more readily than verbal information31

LON/+TERM MEMOR!

Sc-%m":a cognitive structure that re"resents a "ersons 6nowledge about a given ob7ect or behavior

an organied set of e/"ectations held by a "erson about an ob7ect

Sc#ipt:an organied se$uence of behavioral events


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Information saliencerefers to the level of activation of a stimulus in memory

NETOR; OR/ANI


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• -einforcement 0conse$uences1

• -e"etition 0refresh1

• Imagery 0multi"le memories1

CO/NITIVE PROCESSIN/ TERMS

• Acti."tion

!tored cognitive re"resentations are made available for retrieval from memory for "rocessing3

• Sp#%"6in, Acti."tion

%ctivation of one re"resentation will s"read to and activate other re"resentations with which it isassociated3

•

C"p"cit( Limits#he cognitive "rocessing system has a finite limit in the amount of information that can be"rocessed at one time3

• Autom"tism

%s cognitive "rocesses are "racticed 0i3e3, the limited ca"acity system is used1, they eventuallyre$uire less conscious control and less ca"acity3

FOR/ETTIN/

•

#%t#o"cti.% int%#8%#%nc%after old material has been learned, new material interferes with the retrieval of old material frommemory

• p#o"cti.% int%#8%#%nc%

material learned "rior to the new material interferes with the learning of the new material

• "6.%#tisin, pu'sin,

forgetting occurs ra"idly at first, and then levels off: why do advertisers often use a "ulsingstrategy5

BE+%IO-%L LE%-I*

TO SCHOOLS OF THOU/HT

Co,niti.%

• 8learning is 6nowledge8


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• focuses on internal characteristics

• em"hasies the role of memory and thin6ing

B%-".io#"'

• 8learning as behavior8

• focuses on changes in behavior that occur as a result of e/"erience

• em"hasies stimuli and res"onse behaviors

SUMMAR! OF LEARNIN/ THEORIES

R%"sonin,

individuals use thin6ing to restructure and recombine e/isting information and new information to formnew associations and conce"ts

Iconic #ot% '%"#nin,two or more conce"ts become associated without conditioning and without reasoning

Vic"#ious '%"#nin, 4mo6%'in,1behaviors are learned by watching the outcomes of others behaviors or by imagining the outcome of"otential behavior

Op%#"nt 4inst#um%nt"'1 con6itionin,a res"onse that is given reinforcement is more li6ely to be re"eated when the same situation arises in thefuture

C'"ssic"' con6itionin,a res"onse elicited by one ob7ect will be elicited by the second ob7ect if both ob7ects fre$uently occurtogether

BEHAVIORAL LEARNIN/a "rocess in which e/"erience with the environment leads to a relatively "ermanent change in behavior or the "otential for a change in behavior

T-#%% m"=o# "pp#o"c-%s:

• classical conditioning

• o"erant conditioning

• vicarious learning


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CLASSICAL CONDITIONIN/

• stimulus HHHHHHH res"onse

• behavior is elicited

OPERANT CONDITIONIN/

• behavior HHHHHHH reward 0or "unishment1 Jor "ositive4negative reinforcementK

• behavioral res"onse is emitted

• behavior is caused by altering the conse$uences that follow the behavior

CLASSICAL CONDITIONIN/

uncon6ition%6 stimu'us 4UCS1any stimulus ca"able of eliciting autonomically an unconditioned res"onse 0note that it can be "ossible for an unconditioned or unconditional stimulus to have "reviously been conditioned1

uncon6ition%6 #%spons% 4UCR1the refle/ive, involuntary res"onse elicited by an unconditioned stimulus

con6ition%6 stimu'us 4CS1a "reviously neutral stimulus that, when "aired with an unconditioned stimulus, may elicit a conditionedres"onse

con6ition%6 #%spons% 4CR1the res"onse elicited by the conditioned stimulus when classical conditioning occurs

OPERANT CONDITIONIN/

op%#"ntnaturally occurring actions of an organism in the environment

#%in8o#c%m%nts

stimuli that occur after the behavior, affecting the li6elihood that the behavior will be emitted again by anorganism

%)tinctionthe disa""earance of a res"onse due to lac6 of reinforcement

s-"pin,a "rocess through which a new o"erant behavior is created by reinforcing successive a""ro/imations ofthe desired behavior


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!OCI%L I&L;ECE COPLI%CE #EC+I;E!

RECIPROCIT!

• /ui't

o feel guiltyHHHHaction to reduce guilt

• Doo# in t-% F"c% E88%ct 0(I#&1

o large re$uestHHHHmoderate re$uest

CO/NITIVE CONSISTENC!

• Im",inin, "n E.%nt

o imagine an eventHHHHcommitment com"liance

• Foot in t-% Doo# E88%ct 0&I#(1

o small re$uestHHHHmoderate re$uest

• Lo9 B"'' P#oc%6u#%

o decisionHHHHincrease in 8cost8

VICARIOUS LEARNIN/

• O.%#t Mo6%'in,

consumer observes modeled behavior and conse$uences

e3g3, commercial shows how to a""ly cosmetic and conse$uences of usage

• Co.%#t Mo6%'in,

consumer is told to imagine a model 0or self1 "erforming behavior and conse$uences

e3g3, travel agency ad: 88imagine youre on the warm, sunny beaches of &lorida8

• V%#&"' Mo6%'in,

consumer is given a descri"tion of how others similar to her4him self behave in "urchase or usagesituation


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e3g3, doordoor volunteer collecting for worthy cause: 8others on this street have been giving fivedollars on average8

O#I%#IO

MOTIVATION

an activated state within a "erson that leads to goaldirected behavior

moti.%:a construct re"resenting an unobservable force that stimulates and com"els a behavioral res"onse and"rovides s"ecific direction to that res"onse

"eeds occur when a "erceived discre"ancy e/ists between an actual and a desired state of being

ote that there are many theories of motivation:

• (ont loo6 at these as 8right8 or 8wrong89 they are 7ust theories3

• one are validated, but seem intuitively logical3

MULTIPLE MOTIVES

Consumers usually have multi"le motives for "articular behaviors3 #hese can be a combination of:

M"ni8%st6nown to the "erson and freely admitted

L"t%nt

un6nown to the "erson or the "erson is very reluctant to admit

ote: different motives can lead to the same behavior9 observing behavior is not sufficient to determinemotives3

A mo6%' o8 moti."tion mi,-t 'oo$ 'i$%:

unsatisfied needHHH3 3 3 3 3 3 3 3 3 3tensionHHH3 3 3 3 3 3 3 3 3 3 3 3 3 3 drivesHHH

3 3 3 3 3 3 3 3 3 3 3 3 search behaviorHHH3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 satisfied needHHH3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 reduction of tension

MASLO2S HIERARCH! OF NEEDShy"othesied that within every human being there e/ists a hierarchy of five needs:


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=3 Physiological

23 !afety

)3 !ocial

A3 Esteem

F3 !elf actualiation


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• get most satisfaction from 8F?F? odds

Hi,- nPO:

• these "eo"le li6e being 8in charge8

• more interested in the "restige of "ower than in effective "erformance

Hi,- nAFF:

• these "eo"le strive for friendshi"

• "refer coo"erative rather than com"etitive situations

• desire relationshi"s with a high degree of mutual understanding

cClellands idea suggests why it is that different "eo"le behave in different ways3 .e all have more orless of a need on some of these factors, ma6ing each of us motivated toward different "ersonal goals3Peo"le who have a higher n%C+ would "robably ma6e better entre"reneurs or sales"eo"le and be lousyteam "layers3 Peo"le who have a higher nPO. would "robably ma6e better leaders but could beobno/ious 8armtwisters8 as sales"eo"le3 Peo"le who have a higher n%&& would "robably ma6e the bestteam "layers but would lac6 the 8self drive8 to be sales"eo"le running their own territory3

#he "oint of this is to note that different "eo"le have different "ersonalities3

PERSONALIT!reflects the common res"onses 0behavior1 that individuals ma6e to a variety of recurring situations

Personality deals with relatively long lasting "ersonal $ualities that allow us to res"ond to the worldaround us3

• has to do with t#"its

• has to do with in6i.i6u"' 6i88%#%nc%s

PERCEIVED RIS;

• Fin"nci"' might the used car cost me too much to maintain5

• P%#8o#m"nc% might the car brea6 down and leave me unable to get to school5

• P-(sic"' what if I get into an accident in a car without air bags5


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• Soci"' what will my friends thin6 if I buy the "in6 car5

• Tim% what if I have to drive =?? miles each month to that dealer for warranty service on a newcar5

• Ps(c-o'o,ic"' what if I attend the more rigorous college but flun6 out5

• Oppo#tunit( 'oss if I go to college now, how much will I lose by not wor6ing a 8real8 7ob5

PE-!O%LI#< %( P!


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CONSUMER SOCIAL PROFILE

• culture4subculture

• social class

• reference grou"s

• stage in family life cycle

• etc3

CONSUMER PS!CHOLO/ICAL PROFILE

• innovativeness

• "erceived ris6

• motivation

• attitudes4o"inions

• class consciousness

• "ersonality

•

etc3

AIO INVENTOR!

Acti.iti%s

• wor6

• hobbies

• social events

• vacation

• entertainment

• community


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• sho""ing

• s"orts

• club membershi"

Int%#%sts

• family

• home

• 7ob

• community

• recreation

• fashion

• food

• media

• achievement

Opinions

•

themselves

• social issues

• "olitics

• business

• economics

• education

• "roducts

• future

• culture


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LIFEST!LEhow one lives

Li8%st('% is a function of inherent individual characteristics that have been sha"ed through socialinteraction as one moves through the lifecycle3

Influenced by:

• values

• demogra"hics

• social class

• reference grou"s

• family

• individual characteristics

o motives

o emotions

o "ersonality

PS!CHO/RAPHICS

$uantitative investigation of consumers lifestyles and "ersonality characteristics

a way of describing the "sychological ma6eu" or lifestyle of consumers by assessing such dimensions as:

• attitudes

• values

• activities and interests

• demogra"hics

• media "atterns

• usage rates

PROBLEMS ITH SOCIAL AND PS!CHOLO/ICAL MEASURES:


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• difficult to measure

• somewhat sub7ective

• based on selfre"orts from consumers

• sometimes hidden from view

#here are dis"utes over terms, misuse of data, and "roblems with reliability3

8#O;C+< &EEL


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• 7oy

• fear

• sadness

• grief

• 7ealousy

Emotions are accom"anied by "hysiological changes: e3g3

• eye "u"il dilation

• increased "ers"iration

• more ra"id breathing

• enhanced blood sugar level

• increased heart rate and

• blood "ressure

ote: some social scientists distinguish between affect and emotion9 I dont3

ATTITUDEa learned "redis"osition to res"ond in a consistently favorable or unfavorable manner with res"ect to agiven ob7ect

ATTITUDE OB7ECTS %n evaluation is always made with res"ect to some entity or thing that is the ob7ect of evaluation3 Entitiesthat are evaluated are 6nown as attitude ob7ects3

e3g3:

• a "rofessor 0Bob Owen1

• a "residential candidate 0Perot1

• a car 0is yours a clun6er or a cream "uff51

• a brand of shoes 0those swoosh ones1

• an environmental issue 0offshore oil drilling1


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E."'u"ti.% #%spons%s are those that e/"ress:

a""roval or disa""roval favor or disfavor

li6ing or disli6ing a""roach or avoidance attraction or aversion

etc3

Di#%ction!uch evaluative res"onses are regarded as differing in valence or direction because they can beclassified into "ositive and negative evaluations3

M",nitu6%

In addition, evaluations of a given valence differ in intensity or e/tremity3 E3g3, slightly "ositive vs3 very"ositive3

MEASURIN/ ATTITUDE

On%+it%m R"tin, Sc"'%

Com"ared to other brands, how much do youli6e this "roduct5

disli6e it :::::::: li6e it very much very much

Li$%#t Sc"'% 0short i1

=3 #his "roduct is high "riced3

strongly agree

agree

neutral

disagree

strongly disagree

23 #his "roduct "rovides good value for the money


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that I would s"end to buy it3

strongly agree

agree

neutral

disagree

strongly disagree

)3 Overall, I li6e this "roduct a lot3

strongly agree

agree

neutral

disagree

strongly disagree

.hat might be wrong with this set of $uestions5

MEASURIN/ ATTITUDE

Li$%#t Sc"'%

• assemble a large number of o"inion statements relevant to the attitude issue

• a large number of "eo"le e/"ress the e/tent of their own agreement or disagreement with each of the statements

• the scale assumes that each of the items measures the same underlying attitude

• the res"onses to each individual item are summed to obtain a total test score

• any items that do not correlate highly with the total test score are eliminated from the scale

• a new 0shorter1 scale is constructed from the remaining items

• a "ersons overall attitude is ta6en to be the sum of the individual items, or the average of theitems


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MEASURIN/ ATTITUDE

S%m"ntic Di88%#%nti"' Sc"'%

-ate how you feel about this "roducton each of the scales below3

high "riced :::::: low "riced

good value :::::: "oor value

disli6e it :::::: li6e it

.hat might be wrong with this set of $uestions5

.hy is an uneven number of rating values used5

.hen would an even number be better5

MEASURIN/ ATTITUDE

S%m"ntic Di88%#%nti"' Sc"'%

• assemble bi"olar ad7ective "airs that re"resent the evaluative dimension of interest

• the "ersons attitude score would be the sum of the numbers corres"onding to the "ositions

chec6ed on the individual subscales 0or average1

ATTITUDE AS AN INFERRED STATE

!ocial scientists often have assumed that certain 6inds of res"onses reveal "eo"les attitudes3

observableHHHHHHHinferredHHHHHHHobservable

stimuli that evaluative

denote atd3HHHHHHHattitudeHHHHHHHres"onses ob7ect

ATTITUDE AS AN OBSERVED STATE> ITH EVALUATIVE RESPONSES DIVIDED INTO THREECLASSES:

!ocial scientists often have assumed that res"onses that e/"ress evaluation, and therefore reveal"eo"les attitudes, can be or should be divided into three classes:


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• co,nition 0beliefs1

• "88%ct 0feelings1

• con"tion 0behavior or intentions1

observableHHHHHHHinferredHHHHHHHobservable

cognitive 4HHHHHHHres"onses 4 stimuli that 4 affective denote atd3HHHHHHHattitudeHHHHHHHres"onses ob7ect HHHHHHHbehavioral res"onses

TRIPARTITE MODEL

Co,niti.%thoughts that "eo"le have about the attitude ob7ect

A88%cti.%feelings or emotions that "eo"le have in relation to the attitude ob7ect

B%-".io#"'"eo"les actions with res"ect to the attitude ob7ect

Cognitive, affective, and behavioral res"onses to a stumulus are ta6en to suggest an overall attitudeabout some ob7ect3

O#E: an assum"tion is that these com"onents tend to be consistent3

BELIE&! %( %##I#;(E E%!;-EE#:#+E &I!+BEI O(EL

BELIEFS> ATTITUDES> AND BEHAVIORS

&%'i%8sthe 6nowledge that a consumer has about ob7ects, their attributes, and their benefits

o&=%cts"roducts, "eo"le, com"anies, and things about which "eo"le hold beliefs and attitudes


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"tt#i&ut%scharacteristics or features than an ob7ect might or might not have

&%n%8itsthe "ositive outcomes that attributes might "rovide to the consumer

Not%: "eo"le buy a bundle of benefits, not "roduct attributes9 hence, benefit segmentation as a basis forsegmentation beliefs can differ between "eo"le beliefs and attitudes are directed toward some s"ecificob7ect of those beliefs and attitudes

BELIEFS

#hree ty"es of beliefs:

• =3 ob7ectattribute beliefs

• 23 attributebenefit beliefs

• )3 ob7ectbenefit beliefs

% "ersons attitude about an ob7ect can be a function of the beliefs that a "erson holds with regard theattitudinal ob7ect, but can also be a function of the im"ortance of the individual attributes about which a"erson has beliefs3

BEHAVIORS AND BEHAVIORAL INTENTIONS

&%-".io#severything that consumers do related to ac$uiring, using, and dis"osing of "roducts

&%-".io#"' int%ntionsthe intentions of consumers to behave in a "articular way with regard to the ac$uisition, use, anddis"osition of "roducts

ote: behavioral intentions are "resumed to "recede behaviors3 .e therefore assume that measures ofbehavioral intentions are suggestive of future consumer actions 0behaviors13

CREATIN/ BELIEFS DIRECTL!#his can be done via cognitive learning and information "rocessing3 -ecall: the basic ob7ective of"romotion is to inform as well as to "ersuade and remind3

FORMIN/ ATTITUDES DIRECTL! %ttitudes can be formed through:

• c'"ssic"' con6itionin,


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o e3g3, "atriotic music during a # commercial for a "olitical candidate

• op%#"nt con6itionin,

o e3g3, friends ma6e "ositive or negative res"onses to your comments about a "articularcar model

• .ic"#ious '%"#nin,

o e3g3, a celebrity model is seen using a "articular brand of cosmetics

• m%#% %)posu#%

o e3g3, %ce&inderhol Ltd3 is briefly mentioned as a # shows s"onsor each wee6

MULTIATTRIBUTE MODEL OF ATTITUDE

#he cognitive com"onent of the tri"artite model is generally assessed by using a version of themultiattribute or &ishbein model:

%oHJ!;KBi Ei

where:

%o H the overall attitude toward ob7ect o

Bi H the strength of the belief that ob7ect o has some "articular attribute i

Ei H the evaluation of the goodness or badness of attribute i

ote that the evaluative com"onent serves as something of a weight3

=3 +ow li6ely is it that ountain (ew has no caffeine5

3 3 3 3 3 3 3 3 3 3 3= 2 ) A F @ D > =?e/tremely unli6ely 3 3 3 3 3 3 3 3 3 3 3 e/tremely li6ely

23 +ow li6ely is it that ountain (ew is made from all natural ingredients5


)3 +ow li6ely is it that ountain (ew has lemonlime flavor5



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A3 ountain (ew has no caffeine3

3 3 3 3 3) 2 = ? Q= Q2 Q)very bad 3 3 3 3 3 3 3 3 3 3 3 very good

F3 ountain (ew has all natural ingredients3


@3 ountain (ew has lemonlime flavor3


#he first three $uestions measure beliefs9 the last three indicate an associated evaluation or weight3

PE-!;%!IO

PERSUASIONthe e/"licit attem"t to influence beliefs and attitudes

Communic"tionall as"ects of a message, including the source of the message, the ty"e of message, and through whatchannel it moved

M%ss",%information about some to"ic

M%ss",% Sou#c%an individual or character who is "resenting information about some to"ic

C-"nn%' o8 Communic"tionmedia through which information flows

Boom%#"n, E88%ctattitude changes in direction o""osite to what was intended

Co,niti.% R%spons%sthe thoughts that a "erson might develo" in res"onse to a message

SOURCE CHARACTERISTICSour interest here is in source effects on "ersuasion

Sou#c% C#%6i&i'it(the e/tent to which a source is "erceived to have e/"ertise and trustworthiness


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Sou#c% E)p%#tis%the e/tent of 6nowledge that the source is "erceived to have about the sub7ect on which s4he iscommunicating

Sou#c% T#ust9o#t-in%ssthe e/tent to which the source is "erceived to "rovide information in an unbiased, honest manner

Sou#c% P-(sic"' Att#"cti.%n%ss

Sou#c% Li$"&i'it("ositive or negative feelings that "eo"le have toward a source of information

MESSA/E CHARACTERISTICSour interest here is on the effects of the content and construction of the message on "ersuasion

M%ss",% Cont%nt

M%ss",% Const#uction

Som% F"cto#s:

• message com"le/ity

• com"arative message

• onesided, twosided message

• fear

• humor

• vividness

• "rimacy vs3 recency

• re"etition 0cf3, wearout1

Som% Ot-%# T%#ms

N%%6 8o# Co,nitionmeasures the e/tent to which "eo"le have a tendency to engage in effortful cognitive activities

Attitu6% To9"#6 t-% A6.%#tis%m%nta "ersons general li6ing or disli6ing for the ad itself


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Im",%#(the e/tent to which an ad causes consumers to imagine their use of the "roduct and to connect the ad totheir own feelings

PE-!;%!IO %( #+EEL%BO-%#IO LI'ELI+OO( O(EL

INVOLVEMENTa state if energy 0arousal1 that a "erson e/"eriences in regard to a consum"tionrelated activity

Involvement is often thought of as a

• continuum of "ersonal relevance

• continuum of a willingness to e/"end effort

#his continuum is anchored by

• +I*+ involvement

• LO. involvement

HI/H INVOLVEMENT

• high levels of energy are aroused within the consumer

• this energy is directed toward some "articular consumer activity

% "erson under conditions of high involvement is li6ely to be thin6ing more or feeling more strongly3

LO INVOLVEMENT

• lower levels of energy are aroused within the consumer

•

the consumer will invest less energy into their thoughts or feelings

ELABORATION LI;ELIHOOD MODEL

Central -outeRHHHHHHHHHHHHPeri"heral -oute

8thoughtful8RHHHHHHHHHHHH 8mindless8


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• "ro"oses that "eo"le are neither universally 8thoughtful8 in evaluating a "ersuasive message noruniversally 8mindless8

• central and "eri"heral routes re"resent "ositions on a continuous dimension ranging from high tolow elaboration li6elihood

CENTRAL ROUTE

.hen the "erson has the motivation and ability to engage in issuerelevant thin6ing:

• elaboration li6elihood is said to be high

• "erson is li6ely to scrutinie and elaborate u"on the message, draw inferences

• "erson will tend to engage in effortful thin6ing about the issue

Outcome:this is e/"ected to result in an attitude change that is more enduring, more tem"orally stable, moreaccessible in memory

PERIPHERAL ROUTE

%s various factors in the situation reduce a "ersons motivation or ability to thin6 about an issue:

• the elaboration li6elihood is said to be low

• "erson will tend to avoid effortful thin6ing about the issue

• "erson will conserve cognitive resources or e/"end them on some other irrelevant tas6

• "erson will tend to engage in a su"erficial analysis of the issue, drawing a 8reasonable8 attitudebased on nonissuerelevant cues

Outcome:this is e/"ected to result in an attitude change that is less enduring, less tem"orally stable, lessaccessible in memory

.hen a message is on an issue of #I$# involvement or "rior 6nowledge:

• the message content will become a more im"ortant determinant of "ersuasion

• it will be more difficult to find any effects of source credibility


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• more thin6ing will occur in res"onse to a source of high credibility than of low credibility

• thin6ing will be guided "rimarily by the $uality of the arguments "resented in the communication

• highly credible s"ea6ers will be more "ersuasive than s"ea6ers of low credibility "rimarily fora""eals with strong arguments

• the credibility effect should be attenuated or reversed for a""eals with wea6 arguments or noarguments

.hen a message is on an issue of %O& involvement or "rior 6nowledge:

• more thin6ing will occur in res"onse to a source of low credibility than of high credibility

• this thin6ing will be guided "rimarily by the "ersons "ree/isting attitude on the issue

• highly credible s"ea6ers will be more "ersuasive than s"ea6ers of low credibility "rimarily forcounterattitudinal a""eals

• this credibility effect should be attenuated or reversed for "ro attitudinal a""eals

• use a high credibility source to change attitude

• use a low or high credibility source to reinforce e/isting attitude

On% si6%6 messages reinforce e/isting "oints of view3

T9o si6%6 messages 0both "oints of view1 are more effective than onesided messages in terms ofchanging a strongly held attitude3

.hich is better5

Hi,- in.o'.%m%nt situ"tion:

• em"hasie the message content

• guide thin6ing by using high $uality, strong arguments

• stimulate thin6ing with a source of high credibility

not%: use two sided message to stimulate thin6ing if su""ortive of your view


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Lo9 in.o'.%m%nt situ"tion:

• stimulate thin6ing with a source of low credibility 0i3e3, dont stimulate with high credibility1

• em"hasie the reci"ients "ree/isting attitude on the issue using a source of low credibility

and4or

• use a source of high credibility to counter a "ree/isting attitude

not%: "eri"heral cues might be more im"ortant

not%: use one sided message to reinforce e/isting attitude

CO!;E- (ECI!IO %'I*

THE /ENERIC MODEL REVISITED

"roblem recognition HHHHHsearch HHHHHalternative evaluation HHHHHchoice HHHHH"ostac$uisition "rocesses

R%c"'': we noted that our interest is in various influencers or moderators on this generic model3 #heseinfluencers can be loosely classified as:

•

intrinsic

• e/trinsic

• environmental4situational

PROBLEM RECO/NITIONoccurs when there is a difference between a desired state and an actual state3

#he desire to resolve a "articular "roblem de"ends on two factors:

• the magnitude of the discre"ancy between the desired and actual states

• the relative importance of the "roblem

SEARCH


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• internal search

• e/ternal search

Int%#n"' S%"#c-

• "9"#%n%ss s%t

brands about which the "erson is aware

• %.o$%6 s%t

brands which come to mind in a "articular situation

o 8to" of mind awareness8

• consi6%#"tion s%t

brands which are considered acce"table for further consideration

o in%#t s%t

brands about which the "erson is indifferent

o in%pt s%t

brands considered unacce"table

SEARCH

Sou#c%s o8 In8o#m"tion:

•

emory of "ast searches, "ersonal e/"eriences, and lowinvolvement learning

• Personal sources such as friends and family

• Inde"endent sources such as consumer grou"s and government agencies

• ar6eting sources such as sales "ersonnel and advertising

• E/"eriential sources such as ins"ection or "roduct trial

ALTERNATIVE EVALUATIONassociated with the formation of beliefs and evaluations

Percei'ed ris! can be an im"ortant influence in how "eo"le evaluate "otential outcomes3

M%"su#%m%nt o8 E."'u"ti.% C#it%#i":

• 6i#%ct m%t-o6s:


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o as6 consumers what information they use in a "articular "urchase

o observe what consumers say about "roducts and their attributes9e3g3, focus grou"s

• in6i#%ct m%t-o6s:

o p#o=%cti.% t%c-niqu%s:allow a "erson to indicate what criteria someone else might use

o p%#c%ptu"' m"ppin,:consumers 7udge the similarity of alternative brands 0often by ran6ing1, which is"rocessed by a com"uter to derive a s"atial configuration

PRODUCT POSITIONIN/refers to the "lace an offering occu"ies in consumers minds on im"ortant attributes relative to com"etitive

offerings

E3g3, which is more s"orty, Porsche, ercedes, or Cadillac5 ore "restigious5 E/"ensive5 Escort, iata,eon, i"er5

.hat are some dimensions, or characteristics, that you might use to assess business schools5

On each of these dimensions, where would you "osition several schools relative to each other5 E3*3,+arvard ;niversity, ichigan !tate, Podun6 College, Branfield Community #ech3

PERCEPTUAL MAP:a means of dis"laying or gra"hing on two dimensions the location of "roducts or brands in the minds of

consumers

REPOSITIONIN/:changing the "lace an offering occu"ies in consumers minds relative to com"etitive offerings3

*UALITATIVE RESEARCH;ses nonstatistical, unstructured research methods in which consumers are enticed to reveal what theycan about their innermost thoughts, feelings, and motivations3

• focus grou"

• inde"th "ersonal interviews

• "ro7ective tests

PRO7ECTIVE TESTS

s%nt%nc% comp'%tion


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• 8Peo"le buy a Porsche 38

sto#( comp'%tion

• -es"ondents com"lete a story3

c"#toon t%c-niqu%s

• -es"ondents fill in the words or thoughts of a character in a cartoon drawing

pictu#%

• -es"ondents tell a story about a "erson shown in some situation3

ALTERNATIVE EVALUATION

Su##o,"t% in6ic"to# :readily observable attribute of a "roduct used to re"resent the "erformance level of a less observableattribute

• e3g3, "rice and brand name are often used by consumers as surrogate indicators of $uality

F#"min,:how a "erson "erceives the value of something in relation to something else

• e3g3, 8mfgrs3 suggested retail "rice8

CHOICE

ote that some "eo"le are s"tis8ic%#s and some "eo"le are optimi%#s in s"ecific situational conte/ts3

H%u#istics are the 8rules of thumb8 that "eo"le use to ma6e 7udgments and decisions3

e3g3,

• c-oic% -%u#istic: never buy a car in the first model year

• s%"#c- -%u#istic: if buying a com"uter, go to .ongs for the best deal

POSTAC*UISITIONthe consum"tion, dis"osition, and "ostchoice evaluation of goods, services, and ideas

consumptionuse and de"letion of the "roduct


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• Consum%# s"tis8"ction is the overall attitude associated with a good or service after itsac$uisition and use3

• S"tis8"ction or 6iss"tis8"ction is the difference between what was what is e/"erienced andwhat was e/"ected3

o %lso, recall %quit( t-%o#(:

o outcomes of A outcomes of B

o ------------- ~ -------------

o inputs of A inputs of B

o


o %lso, recall "tt#i&ution t-%o#(, which is concerned with how "eo"le identify the causesfor action3

o %lso, recall the notion of co,niti.% 6isson"nc%, where a "erson e/"eriences doubtsabout the wisdom of a decision3

POSTAC*UISITION

% consumer has low"erformance e/"ectations for a "roduct, and after use, "erformance is "erceived asworse than e/"ected3 #his consumer will be dissatisfied3

% consumer has low"erformance e/"ectations for a "roduct, and after use, "erformance is "erceived asbetter than e/"ected3 #his consumer will be satisfied3

PURCHASE BEHAVIOR

impu's% pu#c-"s%soccur when a consumer e/"eriences a sudden urge to buy something immediately without a buyingintention formed "rior to entering a store

compu'si.% consumptiona res"onse to an uncontrollable drive to use or e/"erience something that leads to a re"etitive behaviorthat will ultimately cause harm to the "erson or others

."#i%t(+s%%$in, pu#c-"s%sassociated with the tendency of consumers to buy a new brand of "roduct even though satisfied with the"reviously "urchased brand

PURCHASE INVOLVEMENTlevel of concern for, or interest in, the "urchase "rocess relevant to a "articular "urchase


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H"&itu"' 6%cision m"$in,:

• a "roblem is recognied

• long term memory "rovides a single "referred brand

• that brand is "urchased

• only limited "ost"urchase evaluation occurs

• associated with low involvement

• associated with re"eat "urchases and brand loyalty

Limit%6 6%cision m"$in,

E)t%n6%6 6%cision m"$in,:

• increased information search

• more e/tensive and com"le/ alternative evaluation

• more thorough "ost"urchase evaluation

• associated with high involvement

EI-OE#%L %( !I#;%#IO%L I&L;ECE!

CONSUMER ENVIRONMENTthose factors e/isting inde"endently of individual consumers and firms that influence the e/change"rocess

MAR;ETIN/ SITUATIONS

• information ac$uisition

• sho""ing

• "urchasing

• consum"tion4usage

• dis"osition


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a set of individuals who interact with one another and who share some common need or goal9 theirbehaviors are interde"endent

Not%: almost all consumer behavior ta6es "lace in a grou" setting of some sort3

REFERENCE /ROUPa grou" whose values, norms, attitudes, or beliefs are used as a guide for behavior by an individual

a grou" whose "resumed "ers"ectives or values are being used by an individual as the basis for her4hiscurrent behavior in a s"ecific situation

Not%: as the situation changes, so do reference grou"s and so does out behavior3

E3g3:

• colleagues at wor6

• friends at school

• roommates

• members of clubs, church, fraternities4sororities, etc3

/ROUP INFLUENCE

•

"spi#"tion ,#oup:a grou" to which an individual would li6e to belong

o .hat is the attraction of a +arley to different age grou"s5(oes a +arley have a &orbes or +ells %ngels image5

o .hat is the attraction of a 8gold card8 or an %merican E/"ress card5.hat are the long term strategic im"lications5

• 6issoci"ti.% ,#oup:

a grou" with which a "erson does not wish to be associated

o (oes a +arley have a &orbes or +ells %ngels image5

Con8o#mit(:the tendency to want to be li6e relevant and significant others

a change in behavior or belief toward a grou" as a result of real or imagined grou" "ressure


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Conformity is often viewed as following the crowd, not acting and thin6ing as an individual3

• comp'i"nc%:

the "erson merely conforms to the wishes of the grou" without really acce"ting the grou"sdictates

• p#i."t% "cc%pt"nc%:the "erson actually changes his4her beliefs in the direction of the grou"

/#oup no#ms:general e/"ectations about behaviors that are deemed a""ro"riate

iolation of norms can result in sanctions(

Con8o#mit(: t-% Asc- %)p%#im%nt

Eight sub7ects are as6ed which of three une$ual lines is closest in length to a fourth line3

!even sub7ects 0who actually are cohorts1 announce incorrect answers3 #hese sub7ects are actuallywor6ing for the e/"erimenter, but this is un6nown to the eight sub7ect3

If the eighth sub7ect ma6es a decision without "rior 6nowledge of the others choices, then the eighthsub7ect is li6ely to ma6e a correct choice3

If the eighth sub7ect ma6es a decision after hearing the incorrect choices of the other seven sub7ects, thenthe eighth sub7ect is very li6ely to ma6e an incorrect res"onse that is in agreement with the grou"3

C3f3, Latanes soci"' 'o"8in, e/"eriments3

SOCIAL COMPARISONthe "rocess through which "eo"le evaluate the correctness of their o"inions, the e/tent of their abilities,and the a""ro"riateness of their "ossessions

/ROUP INFLUENCE

Ro'%

"rescribed "attern of behavior e/"ected of a "erson in a given situation by virtue of the "ersons "ositionin that situation

S"nctions"unishments im"osed on individuals for violating role "arameters

Ro'% p"#"m%t%#srange of behavior acce"table within a given role


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Ro'% o.%#'o"6results when a "erson attem"ts to fill more roles than the available time, energy, or money allows

Ro'% con8'ictresults when a "erson faces incom"atible role demands in which roles demand different behaviors

Ro'% st%#%ot(p%a shared visualiation of the ideal "erformer of a given role

.hat sorts of "roducts might a su"ermom buy5 +ow do "roduct choices differ between a traditionalmom of the =>F?s and a wor6ing mom, going to college, in the =>>?s5

o#6 o8 Mout- 4OM1 communic"tionsrefer to e/changes of comments, thoughts, or ideas between two or more consumers, none of whomre"resent a mar6eting source

•

Soe *irrard: we each have about 2F? friends, relatives, and ac$uaintances and will tell themabout good or bad e/"eriences

OPINION LEADERSthose consumers who influence the "urchase decisions of others

a grou" member who consistently filters, inter"rets, or "rovides information for others

• 6i#%ct 8'o9 o8 in8o#m"tion:

a mar6eting communication flows directly from the mar6eting organiation to a relevant mar6et

segment

• mu'tist%p 8'o9 o8 in8o#m"tion:

a mar6eting communication is "rocessed by o"inion leaders and others as it flows to a relevantmar6et segment

O"inion leaders are li6ely to be used under conditions where an individual has low !nowledge but is in ahigh in'ol'ement situation3 E3g3, interview outfit3

DIFFUSION OF INNOVATION

continuous inno."tion

• usually modifications of e/isting "roducts to im"rove "erformance, taste, reliability, etc3

• re$uires little change of behavior

• re$uires little learning


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• low "erceived ris6

6(n"mic continuous inno."tion

6iscontinuous inno."tion

• innovations that "roduce ma7or changes in the lifestyles of consumers

• re$uires great change in behavior

• re$uires much new learning

• much "erceived ris6

#urning a discontinuous innovation into a continuous innovation, or, the best mar6eting move that Ive

ever seen:

*eorge Eastman couldnt sell his new stri""able film to even "hotogra"hy amateurs of the day: it was toodifficult to develo" and "rint3

+is solution: the worlds first dis"osable camera3 % bo/ camera came loaded with enough stri""able filmfor =?? "ictures3 #he user "aid N2F for the "reloaded bo/ and sent the whole bo/ bac6 to the factorywhen all of the "ictures had been ta6en3 #he "romotion: 8)ou press the *utton+ we do the rest 38

#eletroni/ has 7ust introduced a new wristwatch which contains a 8"ersonal communicator38 It will transmitand receive "icture and voice signals with another wristwatch on the same fre$uency code within a halfmile distance3

Picture and voice clarity is constrained due to the small "hysical sie of the device3 In sie, the wristwatchis a little larger and about twice as thic6 as a standard wristwatch3 Price: N>>>9 not discounted due tolimited distribution channels3

=3 .ould you buy one of these5

23 (o you 6now anyone who would5

CATE/ORIES OF PRODUCT ADOPTERS

• innovators

• early ado"ters

• early ma7ority


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• late ma7ority

• laggards

+O;!E+OL( %( &%IL< (ECI!IO %'I*

-ous%-o'6all "eo"le who occu"y a living unit

• family

• nonfamily

8"mi'(household in which at least two "eo"le are related

.hat are some changes in the 8ty"ical8 %merican family5

nuc'%"# 8"mi'(two adults of o""osite se/ living in a socially a""roved relationshi" with their own or ado"ted children

%)t%n6%6 8"mi'(the nuclear family "lus other relatives, such as the "arents of the husband or wife

FAMIL! LIFE C!CLE

the idea that families move through a series of stages in a develo"mental fashion

St",%s in t-% t#"6ition"' 8"mi'( 'i8%c(c'%:

young4singleHHyoung4marriedHHmarried4childrenHHem"ty nester

Each stage "resents "eo"le with different "roblems to solve3

Each stage "resents the mar6eter with different o""ortunities3

+ow ty"ical is this traditional family life cycle5

-ecall the notion of the Buying Center or (ecision a6ing ;nit:

• ;sers

• Influencers


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• (eciders

• Buyers

• *ate6ee"ers

.hat are some similarities in the roles of these constituents in organiational decision ma6ing and inhousehold and family decision ma6ing5

-ecall the notion of organiational buy classes 0straight rebuy4new buy13 +ow does this relate to thenotion of routinied vs3 e/tended decision ma6ing in household buying behavior5

C;L#;-%L I&L;ECE!

CULTURE

refers to the learned meanings, values, and behavior "atterns that are shared by a society

includes the 6nowledge, beliefs, art, law, morals, customs, and habits ac$uired by a "erson as a memberof society

e3g3:

• different "erce"tions of time, "oly3 vs3 monochronic

• different "erce"tions of the role of women, men

• different "erce"tions of right vs3 wrong, as in 8lubrication8

CULTURE

• Culture is com"rehensive: it includes almost everything that influences an individuals thought"rocesses and behaviors

• Culture is ac$uired or learned: it does not include inherited res"onses or "redis"ositions3 aluesand behaviors are learned from cultural influences3

• Culture su""lies boundaries within which individuals thin6 and act3

• .e are seldom aware of cultural influences9 we generally ta6e these influences for granted3

CULTURE

Culture "rovides loose boundaries for individual behavior3


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#hese boundaries are called norms3

no#msrules that s"ecify or "rohibit certain behaviors in s"ecific situations9 e/"ectations of behaviors regardlessof "osition

cu'tu#"' ."'u%swhat is right, good, and im"ortant9 widely held beliefs that affirm what is desirable

customsbasic actions such as what ceremonies are held and the roles "layed by the se/es

mo#%scustoms that em"hasie the moral as"ects of behavior

NORMS: Non.%#&"' Communic"tion

Tim%

• "olychronic vs3 monochronic

• "rom"tness

• lead time

Sp"c%

• office sie and location

• "ersonal s"ace

F#i%n6s-ip

• fast vs3 slow

A,#%%m%nts

• verbal vs3 written

T-in,s

• t%#min"' m"t%#i"'ism:

ac$uisition of goods as an end in itself

• inst#um%nt"' m"t%#i"'ism:

ac$uisition of goods to enable one to do something

S(m&o's


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!;BC;L#;-%L I&L;ECE!

SUBCULTUREsegment of a culture which shares distinguishing "atterns of behavior and values different from the overallculture

!ubcultures can be identified on the basis of:

• race

• nationality

• religion

• age

• geogra"hic location

• gender

• social class

• etc3

e3g3,*a*, *oomers: "eo"le in the ;3!3 born between =>A@ and =>@Amature mar!et : increasing in sie in the ;3!3

ote that many characteristics of subculture can be measured with demographics3

DEMO/RAPHICS

+ow would you estimate the number of "otential consumers for a new ty"e of dia"er5

6%mo,#"p-icsthe study of human "o"ulations on the basis of age, gender, geogra"hic location, etc3

;sing demogra"hics, we are interested in estimating:

• m"#$%t si% how many "otential consumers5

• m"#$%t composition who buys and who doesnt5

• m"#$%t 'oc"tion where are the buyers5

• m"#$%t t#%n6s what will the future bring5


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D%mo,#"p-ic P#o8i'%a listing of the characteristics of the audience for a "articular television show, magaine, or other medium

CAUSES OF POPULATION /ROTH

• Bi#t- #"t%: fertility9 number of births

• D%"t- #"t%: mortality9 number of deaths

• N%t immi,#"tion: the number of "eo"le moving into or out of a country

.hat was the single most significant factor contributing to ;3!3 "o"ulation growth "rior to the baby boomera5

.hat are some "ublic "olicy changes in different countries that affect these factors5

A/E SUBCULTURES

Am%#ic"n &"&( &oom=>A@=>@A9 high birth rate

Am%#ic"n &"&( &ust=>@F=>D?9 low birth rate3 %363a3 8generation T83

• 8Because of the grou"s relatively small sie, em"loyers must com"ete for them in the 7obmar6et38 (o you agree or disagree with the claim that is made by several babyboomer te/tboo6

writers5

M"tu#% consum%# .oo"ies5

SOCIAL CLASS S!STEMa hierarchical division of society into relatively distinct and homogeneous grou"s with res"ect to status,wealth, education, "ossessions, and values

soci"' c'"ss

distinguished in terms of esteem and "restige

ost fre$uently used measures:

• education

• occu"ation


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• income

#hese ma6e u" the ;3!3 Bureau of Census In6%) o8 Socio%conomic St"tus 0!E!1

#he average of these scores results in an inde/ with four classifications:

• u""er class

• u""ermiddle class

• lowermiddle class

• lower class

PROBLEMS IN THE USE OF SOCIAL CLASS

• "roblem of definition

• choicebehavior fallacy

• husbandonly fallacy

• "resent social class fallacy

• effect of as"irations and disdain

st"tus c#(st"''i"tionhow consistent an individual is on various status dimensions

• In the ;3!3: which 7ob has more "restige, a "lumber or a "rofessor5

• .hich has higher education5 Education5

• .hich "ays a higher 8occu"ational "rivilege8 ta/ in Pennsylvania5

Overview of Consumer Behavior

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