CONSUMER BEHAVIOUR

According to Wayne et al, consumer behaviour reflects the totality of consumer decisions with

respect to acquisition, consumption and disposition of goods, service, activities, experience,

people and ideas by (human) decision making units (over time).

NB Consumers are end users of goods and services ie they buy goods and services for their own

benefit and enjoyment. Customers buy goods and services for resale.

Consumer behaviour has two kinds of consuming entities;

1) Personal consumer

2) Organisational Consumer (Profit, Non profit, Government agencies and Institutions all

must buy products, equipment and service in order to run their organisations.

Defining Consumer Behaviour

Schiffman and Kanuk (2004) defined consumer behaviour as; the behaviour that consumers

display in searching for, purchasing, using, evaluating and disposing of products and service that

they expect will satisfy their needs.

Mowen and Minor (1998) defined it as the study of buying units and the exchange process

involved in acquiring consuming and disposing of goods, services, experience and ideas.

David (2002) define it as the mental and emotion, physical activities that people engage in when

selecting, purchasing and disposing, using of products and services so as to satisfy needs and

desire.

Therefore, consumer behaviour deals with how do we get information about the product, how do

we access alternative products, why do different people choose and use different products, who

influences them, how are brand loyalties formed?

Consumer behaviour reflects:

The totality of

decisions

About the

consumption

Of an offering By decision

making units

Over time

Whether Acquisition Product Information

gatherer

Hours

What Usage Services Influencer Days

Why Disposition Experience Decider Weeks

How Activities Purchaser Months

When People User Years

Where Ideas

How much

How often

How long

Marketing Strategies and Tactics

Three broad categories in Consumer Behaviour

a) Acquiring

Buying represents one type of acquisition, however there us leasing, Trading and

Sharing.

b) Using

Consumers acquire an offering then they use it. Whether or how we use and offering

symbolises something about who we are, what we value and what we believe in, for

example, the food we eat, clothes we wear, music we listen to etc.

c) Disposing

How consumers get rid on an offering does have an implication on marketers for example

recycling.

Why study Consumer Behaviour?

Markets are defined in terms of people: No people no market. Organisations survive through

consumers and customers who purchase their goods and services. The purpose of businesses or

organisations is to maximise the consumption of goods and service, to maximise the quality of

life through supply and consumption of goods and services and to maximise the protection of

people who consume goods and services.

Evaluation of effective marketing must be through the satisfaction of consumers and customer

with the goods that the organisation manufactures and supplies. The understanding of behaviour

motives make-ups or individual making up the society or the market for goods and services is the

primary aim for studying consumer behaviour so as to effectively market these goods and

services.

Consumer behaviour focuses on how individuals make decisions to spend their available

resources (money, time, effort) on consumption related items. This includes what they buy,

why they buy, when, where, how often they use it, where they buy it etc.

Six principles guide marketers in their decision to focus on these issues.

1) There is need to manage basic needs effectively.

2) There is need to manage the supply of goods and service effectively, efficiently and

economically.

3) To promote innovation

4) To inform and educate consumers

5) To curb potential harm to themselves and society (consumers by definition includes us

all)

6) To make certain assumptions in an effort to achieve these goals.

Studying consumer behaviour will assist you as a consumer to understand consumption related

decision, what we buy, why we buy, what are the promotional influences that persuade us to buy.

Consumers are the largest economic group in the economy affecting and affected by almost

every public and private decision.

Factors influencing consumer behaviour

a) Internal Factors

Motivation

Perception

Personality

Attitudes

Learning

b) External Factors

Culture

Family

Opinion leaders

Reference Group

Nowadays, everything that we do, there is need to consider the ethical issues. Gone are the days

when organisations had to adhere to marketing concepts to sale their products. There is need for

consumer ethics.

Consumerism and Ethical Issues

The social marketing concept calls on marketers to fulfil the needs of the target market in ways

that improve society as a whole while fulfilling the needs of the organisation. The societal

marketing concept also recognises that companies that incorporate social responsibility and

ethical issues will attract and maintain loyal customers. Ethical issues will prevent companies

from exploiting consumers.

Teleological moral systems

(a person’s choice is based on what is best for everyone involved ie the greatest good for the

greatest number)

Teleological moral systems are characterized primarily by a focus on the consequences which

any action might have. Thus, in order to make correct moral choices, we have to have some

understanding of what will result from our choices. When we make choices which result in the

correct consequences, then we are acting morally; when we make choices which result in the

incorrect consequences, then we are acting immorally.

The idea that the moral worth of an action is determined by the consequences of that action is

often labeled consequentialism. Usually, the "correct consequences" are those which are most

beneficial to humanity - they may promote human happiness, human pleasure, human

satisfaction, human survival or simply the general welfare of all humans. Whatever the

consequences are, it is believed that those consequences are intrinsically good and valuable, and

that is why actions which lead to those consequences are moral while actions which lead away

from them are immoral.

The word teleology comes from the Greek roots telos, which means end, and logos, which means

science. Thus, teleology is the "science of ends." Key questions which teleological ethical

systems ask include:

a) What will be the consequences of this action?

b) What will be the consequences of inaction?

c) How do I weigh the harm against the benefits of this action?

According to this theory it is perfectly ethical for a company to conceal potential negative

consequences of a product trial from early adopters of the product if a large number of people are

likely to benefit once the product is perfected. Example is The original Coke’s secret formula

was argued by scientists as being harmful to consumer health and as such, the Coca Cola

company redesigned the beverage to what it is today. Regardless, they have managed to maintain

their market share.

Criticism of Teleology

One common criticism of teleological moral systems is the fact that a moral duty is derived from

a set of circumstances lacking any moral component. For example, when a teleological system

declares that choices are moral if they enhance human happiness, it isn't argued that "human

happiness" is intrinsically moral itself. Nevertheless, a choice which enhances that happiness is

moral. How does it happen that one can lead to the other?

Critics also often point out the impossibility of actually determining the full range of

consequences any action will have, thus rendering attempts to evaluate the morality of an action

based upon those consequences similarly impossible. In addition, there is much disagreement

over how or even if different consequences can really be quantified in the way necessary for

some moral calculations to be made. Just how much "good" is necessary to outweigh some

"evil," and why?

Deontology (Do unto others as you would want them to do unto you)

It deals with the methods and intentions involved in a particular behaviour. The Deontology

theory focuses on the results of particular action and tends to place greater weight on personal

and social values than economic values. It suggests that individuals should be willing to have

their actions becoming universal laws that would apply equally to themselves as to all others. For

example, a Christian would have to abide by the Christian ethics which make it immoral to lie.

Another example is that during the Nazi Germany, it was considered immoral for a German to lie

about the location of Jews hideout. In that scenario, it was duty to be truthful despite the fact that

divulging the Jews’ location meant harm to them.

Marketers should reduce consumer complaints and activism by taking preventive actions such as

improving quality of products, expanding service and lowering prices, participating in consumer

activities by initiating an active program such as educating consumers to shop more wisely,

cooperating with government agencies (eg Consumer Council of Zimbabwe) and consumer

groups in their consumer education programs.

Unethical behaviour in consumerism

Misrepresentation, Bribery, Untruthful presentation, Exaggeration, Low price goods Low

quality, Vandalism, Change price tags, Hoarding of products, Shoplifting, Use of sexual appeals

on selling

Family influences on consumption related behaviour

The institution of the family has been acknowledged universally as the oldest institution in

history. What is a Family?

According to Bredemeier and Stevenson (1966), family is a group of people linked by blood and

marriage who occupy a common household and are usually characterised by economic

cooperation and solidarity. According to this definition, members of the family are therefore

formed as a social phenomenon within a framework of two ties ie blood and marriage. The

relationship between the members is therefore biological and social thus relationship between

parents and children is biological and between parents is social as their union is only possible

through patterns of marriage.

More recently, a family has been defined as consisting of two or more persons related by blood,

marriage or adoption residing together.

Types of families

a) Married couple (husband and wife)

b) Nuclear Family (husband, wife and children)

c) Extended Family (nuclear family including blood relatives)

d) Single parent Family (one parent living with one or more children as a result of divorce,

separation, death of spouse, and out of wedlock birth)

Functions of a family

1) Provider of economic well-being

2) Emotional support

3) Suitable family lifestyle is decided through discussion

4) Family member socialisation – this is the process that introduces children to basic values

and ways of behaviour in culture including moral and religious principles, grooming

standards, appropriate dressing, speech and suitable education goals.

The children’s experience is reinforced and refined as they grow from childhood to

adolescence and eventually adulthood.

5) Consumer socialisation – it is one of the most important functions of the family and

comprises of processes through which people especially through which children acquire

skills, knowledge and attitudes relevant to the functioning in the marketplace. In

consumer socialisation, parents should act as role models. Children observe parents and

learn consumer behaviour.

Family decision making roles

In the family, key consumption roles include initiator, influencer, decider, buyer and users.

Marketers can direct their appeal to any member of the family since one member of the family

can play all the above listed roles. The household decision making has three important players ie

the husband, the wife and the children.

Dynamics of Wife/Husband decision-making

Some products are husband dominated whilst others are wife dominated. The marketer should

therefore know which products are husband dominated or wife dominated so as to tailor-make

his appeal.

Examples of wife dominated products include grocery products, and clothing.

Examples of husband dominated products include cars, car parts

Examples of joint decisions making products include household furniture.

Children are targeted by marketers because they can recall brands and their experience with

brands. They are therefore good targets for creating brand loyalty.

The role of the wife and children has also changed over the years where wives are becoming

bread winners whilst the husband becomes the childrearer and children have also become

indirect influencers.

Importance of Family to the Marketer

a) The marketer should understand that family members have greater consumption influence

b) Note that parents are the dominant consumer decision makers

c) You need to distinguish products associated with femininity and masculinity

d) You need to realise that children influence consumption decisions and actual purchase of

the product

e) You also need to access different consumer needs in the family

f) You also need to note that the wife is the main purchase agent

g) Note that the father is the final signatory on the purchase of big items

h) Realise that purchase may need mutual consensus

i) Note the power of women in family purchase decision making matters

j) Realise that men and women respond differently to marketing messages

k) Parents want to raise their children according to current lifestyle

l) Target breadwinners in marketing a product

m) Children are agents of change in a family

n) Children have greater exposure to marketing media

o) Children spread marketing messages that elderly people

Family life cycle

It refers to the position in life based on such demographic factors as age, marital status, and

presence of children and age of children. According to Blackwell et al (2001), the family

changes over time passing through a series of stages called the Family Life cycle (FLC).

Bachelorhood

Married Couple/Honeymooners

Parenthood

Post parenthood

Dissolution Phase

Bachelorhood Phase

This phase is characterised by an adult living alone (thus living apart from parents). Marketers of

fashion, health products, insurance companies, housing agents, cars, latest products should target

this group. Most of their income is spent on entertainment. They tend to watch late night

programmes therefore, marketers targeting this group should flight their adverts during late night

programmes. The price (skim/high), distribution

Married Couple/Honeymooners

They are characterised by young couples that are just married. Manufacturers of household

furniture, house insurance companies, high quality electrical products, restaurant usually target

these newly weds. They usually practice joint decision making when purchasing products. They

also watch television during family time viewing hence promotion targeting these newly weds

should be flighted around this time. They can use skim pricing since honeymooners buy

expensive products.

Parenthood Phase

The phase is composed of a married couple with at least one child living at home. This phase

consists of three classes;

a) Parents with children at Pre-school

Marketers of toys, washing detergents, baby foods and educational toys should target this

phase

b) Parents with children at Intermediary school

Households with children in intermediary schools tend to spend more on clothing,

electric gadgets such as DVDs, CDs, school uniforms, audio equipment, snacks, and

cordial juices. Television watching may include family time viewing and late night

movies over the weekend. Products (add features to your product, have jumping castles,

hold birthday parties, babysitters etc). You need to charge low prices, promote during

family time viewing and intensively distribute the products.

c) Parents with children at tertiary school

They spend more on tertiary fees, want more money for entertainment, and need to

charge average prices for parents to afford. They prefer to eat out at Takeaways,

nightspots.

Post parenthood Phase

This refers to an older couple with no children living at home. It is typical in the western

economies. This is the lucrative stage for manufacturer of cars, furniture, travel agents, hotel and

health providers. There is increase in income and decrease in burden therefore they have got

more disposable income. They also tend to invest more that the other groups in financial

products and vacation. Usually, they are interested in watching sport on television and news. In

our African economy, marketers of fertilizers and crop seeds needs to target should target this

group.

Dissolution Phase

It is characterised by one of the original spouses leaving. Marketers of Christian care, medical

practioners, NGOs.

Implications of the family life cycle to a marketer

The FLC is another way that the market segments itself. Understanding the FLC helps the

marketer develop and offer products that deliver the benefits that are sought by individuals and

families as they move through life cycle spectrum. There is need to adjust products and service

to fit the need of individuals at different levels of the FLC.

Culture and consumption behaviour

Culture is a set of traditional beliefs and values that are transmitted and shared in a given society.

Culture then means a lot of things to many people. It encompasses the norms, beliefs, values, art

and knowledge which influence the behaviour of consumers in a given location and time.

Defining culture

According to Unruh and Unruh (1994), culture is an environment of ideas, experience, beliefs,

traditions, customs, institutions, signs, arts and technologies.

Schiffman and Kanuk (2000) argue that culture requires a detail examination of factors such as

language, knowledge, laws, religion, food-customs, music and technology and products that

distinguish a society.

Why study Culture?

a) Culture is dynamic and as such, needs are dynamic. Culture is based on hundred to a

thousand years of accumulated circumstances. Each generation adds something of its own

before passing it to the next generation therefore culture becomes dynamic and so do the

needs. Culture also varies through space.

b) Culture is taken for granted meaning that the impact of culture is so natural that its

influence on behaviour is taken for granted. As such, products may fail in international

markets simply because the local culture may not apply in these markets. Business people

have to learn cultural empathy and avoid self reference. Marketers should therefore

tailor-make products that suit the products at that moment, position products in such a

way that you can penetrate new markets as the culture changes. An example is

Gramaphone, LPs, Cassettes, CDs, DVDs, HDDVDs (High Definition DVDs) and now

we have External memory storage devices (USBs and external hard drives).

c) Culture is lent. Socialisation or enculturation occurs when a person absorbs or learns a

culture in which he or she was raised (home, church or school). Acculturation occurs

when a person learns a culture in which of a society other than the one in which he or she

was raised. The ability to learn culture makes it possible to absorb new cultural trends eg

westernisation. Marketers need to research and see which cultures the consumers are

learning and which consumption patterns they are adopting.

Learning about other people’s culture involves learning the:

i) Language and symbols

Symbols used should not offend consumers eg manufacturers of the Black Cat

Peanut butter did not do their research thoroughly because to Zimbabwe, the

black cat is associated with witchcraft. Some colours are taboos in other countries.

In Iran, white is a symbol of sorrow whilst in Zimbabwe, we associate it with

purity. In America, yellow is associated with happiness and as such, almost all

taxis are painted yellow

ii) Rituals

These are symbolic activities or actions. Easter eggs, Thanks giving and

Christmas trees are important to some Christians. As such, marketers can

capitalise on this. In Israel, you cannot sell Christmas cards or trees to the natives

because their religion does not recognise Christianity. Other rituals include

birthday celebrations, graduations, marriage, anniversaries etc. Marketers should

be able to provide their target market with the right products to help them

celebrate their rituals.

d) Culture is shared. It is based on socialisation and creation. Culture cannot exist on its own

but must be shared by the members of the society thus acting to reinforce its prescriptive

nature. Some needs are culturally conditioned. For example, such cultural conditioning is

noticeable in the Moslem culture which prescribes that they can only eat Halaal certified

meat.

e) Culture facilitates communication. Culture encompasses common habits of thoughts and

feeling among people. It can also impede communication across groups because of lack

of shared common cultural values. Careless translation of advertising may result in the

loss of intended meaning and at the same time suggesting something different, obscene or

offensive. Coca Cola wanted to translate this brand into Chinese but because the Chinese

language is not made up of a precise alphabet but rather a combination of characters, the

closest, they got to translating it read ‘koeka koela’.

f) Influence of culture on thinking process. Self reference criterion (SRC) is an unconscious

reference to one’s own cultural values, experience and knowledge as basis for decisions.

A person’s SRC can prevent one from being aware that there are cultural differences or

from recognising the importance of these differences. The marketer who fails to

recognise these differences may react to a situation in a way that is offensive to a

consumer hence loose business. For example, a woman who values self image and

considers herself fashionable and upward mobile leader would purchase designer clothes

to reinforce her perception (reinforcing personality)

Implications of culture on marketers

1) Identify and understand the culture and values of target groups

2) Identify permanent beliefs, values and customs (position of men in families)

3) Focus on the acceptable practices and avoid the offensive ones. (teleology ethics)

4) Analyse determining factors in cultural diversity (past and current associations)

5) Emphasis cultural acceptability of a product (ZTV programme Murimi Wanhasi)

6) Deliver cultural messages to consumers (

7) Understand symbolic meanings of adverts

8) Determine product quality, packaging, promotion, styling and distribution strategies that

are consistent with particular cultural practices.

Cultural Diversity in Zimbabwe and its challenges to marketers

Sub-cultural groups

This is a small group within a larger population. It can also be defined as a segment within

the same society.

Sub-cultural groups in Zimbabwe

a) Racial sub-culture

b) Regional sub-culture

c) Religious sub-culture

Racial Sub-culture

This sub culture reflects the nationalities that contribute to the population that is mow in

Zimbabwe. Example of nationalities making up Zimbabwe includes the Indians, Chinese,

Nigerians, British, Americans etc.

Indians

They have a unique culture. They tend to purchase their own artefacts or brands that they are familiar with. They

also purchase products that their parents bought, they also buy products from business persons of their ethnic

group. They are price and family oriented.

Regional Sub-culture

The regional sub-culture in Zimbabwe includes the Matebeland, Midlands Manicaland and the

greater Mashonaland. Marketers should understand the different regional cultures when coming

up with the promotional appeal. Regions can be distinguished basing on climatic and

environmental factors, consumption patterns or even selection of brand suitability. An example is

that, when Ingwebu Beer is being advertised, they use predominantly Ndebele since its target

market is the Matebeland region. On the other hand when Delta advertises Chibuku, it

predominantly uses Shona, a language that suits its own target market, Mashonaland.

Religious sub-culture

The type of food, clothing and behaviour is usually affected by religion. Failure to understand

the religion by the marketer may result in the marketer offending the consumer unintentionally.

The way a marketer designs adverts and products should comply with the religious beliefs of the

country. What one society considers as mere superstition can be a critical aspect in another

culture. For example, the American holiday ‘Halloween’ is regarded in high esteem there but it is

never considered as anything above witchcraft in Africa.

Hinduism they believe in the caste system. This refers to the group each person is

born into. They value family and they live in extended families. Examples

include the Indians

Buddhism they believe that material things can never bring happiness. Examples

include the Chinese, Japanese, Koreans, Tibetans, Thai (Thailand) etc

Islam they follow a detailed way of life as prescribed in the Koran (Sacred

book). Their religious routine included praying five times a day; they fast

during the lunar month of Ramadan. Alcohol consumption is strictly

prohibited. Women are expected to fully cover their bodies from head to

toe at all times. The faithfully are expected to uphold their religion and

oppose the unbelievers. They live in close knit families. Moslem countries

include the Arab nations on the Middle East

Christianity they believe in God and their way of life follows the Ten Commandments

given to Moses by God which show how people should relate among

themselves and with God.

Judaism they believe that man is responsible for his action hence destiny and

position in life unlike with Christians who believe that God has a master

plan and a predefine destiny for all mankind. They are politically more

liberal and democratic. They are more inclined to postpone gratification.

NB. Amongst these sub religion cultures, you can further divide them according to age, income

product usage, gender etc.

Measurement of Culture

Opinion Leadership Concept

i) It is a process by which one person influences the action or attitude of others who

may be opinion seekers or merely opinion recipients. Interactions occur verbally or

non-verbally. There are credible sources of information because they have first hand

experience therefore they area objective.

ii) They are category specific ie the person specialises on a certain category of products

and socialise with specific group of people.

iii) They are motivated by the interest of the received because they are not paid for their

service.

iv) For opinion leaders motivation is derived from seeking out status, demonstrating their

expertise, assert their superiority, and from self involvement (that is trying to reduce

own post purchase dissonance), product involvement (product related experience) or

message involvement (to share).

v) For opinion seekers or receivers, motivation is derived from the need to reduce search

time in needed products or services, the need to obtain new product quality or service,

reduce risk, avoid being conned by sales people, the need to compensate for product

knowledge deficiency.

vi) They can provide positive or negative product information.

vii) They are socially well integrated.

viii) It is a two way process. Opinion givers can be opinion seekers i.e. opinion leader in

one product may be an opinion seeker in another product. For example, in soccer,

Lionel Messi would be an opinion leader in soccer but an opinion seeker in

computing accessories.

Implications of Opinion Leader Concept to Marketers

Opinion leaders spread out information about a product because they are product specific. They

should look for the opportunity to encourage word of mouth. New product designers deliberately

design products to have word of mouth (WOM) potential i.e. putting in product something to talk

about. Marketers direct communication to opinion leaders to speed the acceptance of advertising

messages. For example, Nike designed the Air Jordan Sports shoes (Snickers) after the legendary

basketball player; Michael Jordan. This was during his time playing for Chicago Bulls.

Marketers should also know the people who socialise with opinion leaders so that when they

create a product, they are able to stress the right features that are sought by their consumers. The

features stressed leave the opinion leader with something to say to the opinion seekers.

Opinion leaders are however not restricted to one income or social group but are spread

throughout all levels of the society. As such, mass marketing becomes easier.

Marketing programmes are designed or aimed at persuading consumers to tell their friends about

the goodness of their product or service. Television adverts portrays women in informal

communication or conversation about a product or service and their satisfaction with it. For

example, OMO adverts

Segment markets according opinion leaders or opinion seekers.

You can also visit schools, colleges, work places to persuade people to spread word of mouth.

Consumers place more credibility in informal communication source than in paid adverts or

company sales people.

While word of mouth is extremely effective, negative comments may damage the company or

product image therefore product designs should be carefully crafted to avoid negative comments.

For example, use of Surf (Unilever Product) resulted in the users of this product having chuffed

hands. As a solution to this problem, Unilever advised users of the Surf to use Vaseline on their

hands.

Promotional efforts should be directed to opinion leaders as they carry the word to the masses ie

product diffusion.

Opinion leaders are innovators because they tend to try new products first and then influence

other to buy them.

Measurement of Opinion Leaders

There are four basic measurement techniques that can be used to see the impact of opinion

leaders on consumption behaviour.

a) Self designated method

Respondents are asked to evaluate the extent to which they provided others with

information about a product or brand.

b) Socio-metric method

This method measures the person to person informal communication or consumer

concerning products or product category. Respondents are asked to identify specific

individuals to whom they provided advice or information about the product or brand

under study and the specific individual who provided them with advice or information

bout the brand under study. In both instances, if there is any, therefore they are opinion

leaders.

c) The key informant method

It involves selecting a person who is knowledgeable about the nature of social

communication among members of a specific group. Key informant is asked to identify

those individuals in the group who are most likely to be opinion leaders.

d) The objective method

It involves the deliberate placement of a new product or product information with

selected individuals and the tracing the resultant web of interpersonal communication

concerning the relevant product.

Reference Groups

Kotlar and Keller (2006) defined reference groups as primary and secondary reference groups.

Primary; as the family, neighbours and workmates. There are personal, continuous and informal

interactions with a member.

Secondary is more formalised and less continuous interactions thus religion, professional and

trade unions.

The role of reference groups on consumer behaviour

1) The influence attitudes and self concept

2) They create pressure for conformity and product choice

3) They help to identify permanent characteristics and facts

4) They become role models that influence consumer actions

5) They have both positive and negative influence on buying decision

6) They act as a point of comparison

7) They act a s a basis for forming values, attitudes and consumption behaviours

8) Reference groups provide an understanding of interrelations between consumers.

9) Marketers can use reference groups to influence positive attitudes towards a brand.

10) Symbolic reference groups are used when advertising a brand.

Normative Comparative

The immediate family that moulds the

child

Those with admirable lifestyles

Primary influencers Secondary influencers

Detect values and consumption behaviour Indirect influencers e.g. celebrities

Values internalise Values imitated

Demand conformity to family values and

behaviour

Weighed against family values and

behaviour

Functions of reference groups

1) To inform or make individuals aware of specific product or brand

2) They provide individuals with an opportunity to compare his or her thinking with the

attitude of the group.

3) They influence the individual to adopt attitudes and behaviour that are consistent with the

norms of the group.

4) They legitimise the individual to use the same product.

The Dominant consumer reference group is the family BUT:

Other reference groups include;

1) Shopping reference groups (these are influential people who meet during the shopping

process. Individuals ask for advice from experienced shoppers. Shopping reference

groups have a wide knowledge about products and the shopping process)

2) Friendship reference groups (friends can influence what, when, and how to buy a

product. Friends influence an individual to modify or divert from family values and

consumption patterns)

3) Virtual reference groups (individuals who communicate and share information on the

internet) consumers with similar interests and tastes share product information on the

internet

An individual may belong and be influenced by one or more reference groups. Secondary

reference groups may cause an individual to change from family norms and values. The

individual consumption behaviour results from interplay between primary and secondary

reference groups.

Secondary reference groups become more influential as the individual matures and continues to

meet non family members.

Factors affecting power of reference groups

1) Knowledge and experience

Those without knowledge and experience will need influence from RGs and those with

full information do not need influence. Those enlightened make independent decisions.

2) Credibility

Those with accurate information have greater influence. Acceptability of information is

circumstantial. Those with appealing lifestyles have greater influence and power.

Permanent attitudes are difficult to change.

3) Communication skills

The acceptance of advice depends on the verbal or pictorial presentation of the product.

Good communication has greater influence. The same reference group may give different

advice depending on the context. The communicator must understand the message

recipient.

4) Product conspicuousness (easily seen or described)

The impression a product gives in relation to the reference. The buyer purchases a

product with the reference in mind.

According to Schiffman and Kunuk (2000), there are four ways of influencing buying decisions.

a) Making prospective buyers aware of the existence and quality of the brand

b) Giving individuals the opportunity to compare their thoughts with those of the

group.

c) Influencing the individual to adapt attitudes and behaviour consistent with the

group.

d) Legitimising the buying and use of the same product as the group.

Application of Reference groups

Reference groups can be used by advertisers to target their message to specific market segments.

Three major types of reference appeals are used to reach these segments.

1) Celebrities e.g. musicians, movies stars, TV. personalities, sports persons. Econet uses

celebrities in its adverts. Pictures of Oliver Mtukudzi, Nelson Mandela and Mother

Theresa are hung in Econet shops and they can also be seen on adverts. Econet regards

them as a source inspiration and they link this to their message; ‘Inspired to change your

world’.

Celebrities provide a popular type of group appeal. They provide an idealisation of life to

their loyal followers. Advertisers want to use celebrities to promote their products with

the expectation that the reading or viewing audience will react positively to the

association with the product.

The celebrities are used as;

(i) Spokespersons, when they represent a brand or company eg Lifebuoy who use

Yvonne Chaka Chaka;

(ii) Testimonial, celebrities give a testimonial citing the product’s benefit eg Stacey

Ferguson (Karabo Moroka on Generations) who appears on the Gernier advert;

(iii) Endorsement, the celebrity may be asked to lend his name to the advertisement

of the product eg Michael Jordan lent his name to Nike towards the naming of its

new sports shoes; Air Jordan.

(iii) Actor, the celebrity may is asked to present a product or service as a character

performance. Eg Lazarus Boora (Gringo) when he advertised the Maggi Soup.

NB. To effectively use celebrities, marketers should make sure that they endorse one product.

The endorsement of a number of products by one celebrity dilutes the whole purpose of the

marketer eg Mtukudzi is a celebrity in his own right. As such, relying on him alone would mean

that there is a possibility that there is a stiff completion for his endorsement form other

companies since they would also be vying for his image.

2) An expert refers to a reference group appeal in which a person because of his special

training or experience in a certain position helps the prospective consumer evaluate the

product or service the marketer is promoting. The expert should comment on the features

of the product. For example, Peter Ndlovu may be asked by a soccer ball manufacturer to

comment on its soccer balls.

3) A common man or person. Sometimes advertisers may use a common man from the

street rather than an expert or celebrity. This reference group appeal features testimonials

of satisfied customers. It demonstrates to the prospective consumer that someone just like

him or her uses and is satisfied with the product. Eg adverts of living positively with

HIV/AIDS.

Implication of Reference groups on marketers

1) Influencing the individual to adopt attitudes and behaviour consistent with the group

2) They create pressure for conformity and product choice

3) They become role models that influence consumer actions.

4) They act as points of comparison

5) Understanding consumer rights

6) Avoid politically and educationally offensive marketing strategies

7) Capitalise on electronic advertising

Consumer Action Groups

1) These are groups that stand for consumer rights (example if CCZ).

2) They may be temporary or permanent.

3) They assist the consumer make the right purchase decision, advise people to consume

products and services in a healthy and responsible manner.

4) They stand for and address consumer concerns.

5) They fight against consumer abuse, insecurity and environmental damage

6) They stand for consumers’ political, educational and legal right issues

7) They lead protest against ‘dumping’, overpricing, unhealthy products and unethical

marketing practices.

The implication of Consumer Action Groups to marketers

i) Note that consumer abuse is a crime

ii) Engage in thorough market research

iii) Understand consumer rights

iv) Consider credibility of promotion strategies

v) Analyse the interdependency of consumer decision making process

Lifestyles

Consumer Motivation

Motivation is the driving force that impels individuals to act. Needs are the essence of the

marketing concept. The key to a company’s survival, profitability and growth in a highly

competitive marketplace is its ability to identify and satisfy unfulfilled consumer needs better

that the competition.

Needs- Basic requirements for survival, indispensable

Wants – they signify the availability of choice, pleasure and psychological satisfiers

Demands – they are linked to human rights, imply the use of force to possess a product or

service

If a need is not satisfied, it leads to a drive. A drive is a state of tension, either physiological or

psychological which must be satisfied or gratified. Need gratification leads to the state of

equilibrium.

Unsatisfied need Tension Drives Behavior Goal satisfied

Tension Reduced

No safe shelter for 10yrs need to have a safe shelter join housing cooperatives upon

acquiring a stand and building a shelter then tension is reduced.

Needs aroused to a high level of intensity become motives, and drive the individual to act to

satisfy these needs.

Arousal of motives

Needs are aroused by stimuli otherwise they do not manifest themselves. As a marketer, what

stimuli do you need to bring to the market to arouse consumers?

Types of arousal

1) Emotional arousal

Thinking, daydreaming may stimulate needs and this can push them into a goal-oriented

behaviour. Daydreaming about owning a car could act as the stimuli that prompt you into

action to satisfy this need.

2) Cognitive arousal

Random thoughts can lead to unconscious arousal awareness about the existence of a

need. E.g. the Home-link concept to somebody living in the diaspora.

3) Environmental arousal

Through touching, seeing, smelling, hearing consumers can be aroused and engaged in

goal directed behaviour. For example, a food advert could arouse you into thinking of

eating.

4) Physiological arousal

Bodily needs at one time are based on the individual physiological condition at that

moment. Eg a decrease in temperature makes one needs warmth.

Implication

It is important to note that consumers can be sensitised to through adverts. These arousals are

uncomfortable such that they build tension until they are satisfied.

Maslow’s Hierarchy of Needs

Maslow suggested that the needs of consumers can be ranked in their order of importance from

biogenic to psychogenic (bodily to mental). The hierarchy can be used with the product life cycle

to build a buyer profile ie where to maximise the company profits.

Highest

Self actualisation

Self esteem

(Status, symbol or belonging)

Social needs

(Love, belonging)

Safety and Security

(Security and protection)

Physiological

(Food, water, shelter etc)

Lowest

Despite the criticism of Maslow’s hierarchy of needs that it is somewhat rigid, recent studies

have yielded information that described products a meeting various needs as outlined by Maslow

from more basic needs (eg basic functions and safety needs) to higher order needs (eg Beauty

and Self expressive needs). They found that consumers were willing to pay 30% more for a

brand that would satisfy their expressive and basic needs.

Segmentation and promotional application of Maslow’s hierarchy

Maslow’s needs hierarchy is readily adaptable to market segment and the development of

advertisement appeals because there are consumer goods designed to satisfy each of the levels

and because most needs are shared by large segments of consumers. Eg buying healthy foods,

medicines, low fat and diet products to satisfy physiological needs, shaving creams, mouthwash

and cosmetic products are bought to satisfy social needs.

Positioning

Hierarchy of needs can be used to stress how a product should be perceived by prospective

consumers. The key to positioning is to find a niche/an unsatisfied need that is not occupied by a

competing product or brand. For example, adverts for soft drinks stress the social appeal of the

drink. They show a group of young people enjoying themselves and the advertised product

(REDDS). Other adverts stress refreshment eg Coca Cola. Other product adverts focus caloric

contents eg Low Fat Yoghurt, Margarine.

A Trio of Needs

The trio of needs consists of;

1) Need for achievement

Those with high achievement motivation seek to get ahead, strive for success and take

responsibility for solving the problems. In one study, McClelland found that 83% of

students with a high need for achievement entered occupations that called for an ability to

take risks and to make decisions that offered the potential for great success such as

business management.

Individuals with a strong achievement often regard personal accomplishment as an end in

itself. The achievement need is closely related to both the egoistic need and the self-

actualisation need of Maslow.

People with high achievement needs tend to be more self confident, enjoy taking

calculated risks, actively res their env and value feedback.

2) Need for power

It relates to an individual’s desire to control his environment. It includes the need to

control other persons and various objects. This need is related to the ego need in that

many individual experiences increased self esteem when they exercise power over

objects or people. The goal is to influence, direct and possibly dominate other people.

The need for power can have either two directions according to McClelland. It can be

positive resulting in persuasive and inspirational power (eg Strive Masiiwa) or it can be

negative resulting in the desire to dominate and obtain submission from others (eg

political candidates).

3) Need for affiliation

The need for affiliation is what motivates people to make friends, to join groups and to

associate with others. For example, a task is given; those with the need for affiliation will

choose those friends or partner to achieve a task.

It thus relates to the desire of friendship, acceptance and belongingness.

Marketers therefore need to analyse the characteristics of the target market to determine its

dominant motivational need, and then design adverts that place the product in such a context.

Thus adverts add that add social appeal (OMO adverts, power appeal, status appeal (Car Sales

adverts)

Measurement of Motives

Motives are hypothetical constructs in that they cannot be seen or touched, handled, smelled or

otherwise tangible observed. For this reason, no single measurement method can be considered

as a reliable index. Therefore, researchers rely on a combination of various qualitative techniques

to try and establish the presence and or the strength of various motives.

Marketers need to know in which segment a need is more dominant. Three techniques can be

used;

1) Project Techniques

Is used to find what a person is thinking (eg carton description, sentence completion) in

order to reveal the underlying needs, wants, motives of individuals, and whether or not

they are aware of them. Individuals are exposed to an ambiguous stimulus so that they

project inner thoughts. For example;

(i) During a vacation, i am going to.....

(ii) My wish is to......

2) Observation

The situation of interest is watched and the relevant facts, actions of behaviour are

recorded.

3) Focus Groups

The reason/objective is to find out among consumers (8-10). There would be a

moderator. His or her arguments and suggestions when discussing interest, attitudes, or

experience about the product will help determine dominant needs.

Personality

Personalities give guidance for predicting behaviour (behaviour such as submissiveness, tough,

reserved, outgoing etc) a personality can thus be described as the sum total of ways in which an

individual reacts and interacts with others. It is a characteristic trait that a person has. Consumers

act differently because they have different personalities.

Personality Theory

Sigmund Freud presented a three fold structure of personality which was based on the ID, the

ego and the superego. His theory is known as the Fredian Theory. Basically, individuals have

three interacting systems.

Gratification ID EGO

SUPER-EGO

(Diagram adopted from Schiffman)

i) ID (Impulsive Drive)

The impulsive drive is conceptualised as a ‘warehouse’ of primitive and impulsive

drives ie the basic physiological needs such as thirst, hunger and sex for which the

individual seeks immediate satisfaction without concern for the specific means of

satisfaction. Some authors refer to impulsive drive as the self beast that represents our

being, our instincts, drives, innate (natural) capacities and largely subconscious ways

of responding to the outside world.

Implication includes; compulsive purchase, use intensive dist???, fast moving

consumer goods, imp were product differentiation are little importance eg cellphone

recharge cards.

ii) EGO

The ego evolves out of the ID. It is that part of the personality that responds to the

demand of impulsive drive and it does so in a controlled manner using intellectual

skills and perceptual powers to satisfy those needs (the reality principle).

It also controls the socio-cultural conditioned Super-ego. The level of development of

the ego may differ for one individual to another therefore the desires of individuals

are gratified differently.

iii) SUPER-EGO

It is conceptualised as the individual internal expression of society’s moral and ethical

codes of conduct. The super-ego’s role is to see that the individual satisfies needs in a

socially acceptable fashion. Thus, the super-ego is a kind of ‘brake’ that restraints or

inhibits the impulsive forces of the individual.

Marketing Implication

a) According to Freud, the impulsive drive part of our personality seeks instinctive,

impulsive solutions, products or services.

b) The ego-part of our personalities seeks practical and realistic solutions. It is our ego that

makes consumers to seek for information about the product.

c) The super-ego part of our personalities seeks moralistic and perfectionist solutions. It is

guided by culture. For example, Muslims are not allowed to eat non-Halaal-certified

meat. That culture guides their super-ego.

Consumers are often unaware of the needs that a product is satisfying beyond the most and

immediate ones. As such, consumers are unaware of the reason for buying.

Neo-Fredian Theory

NB this refers following from or being influenced by Freud). This group includes the likes of

Karen Horney, Alfred Adler, and Harry Stack Sullivan etc.

Freudian successors have tended to de-emphasise the importance of the Impulsive drive in

favour of the more ego related social factors. They believed that interpersonal relationships and

particularly those between parents and children are crucial to individual personality. They argue

that the interaction with people can have the three major C.A.D. orientations.

‘CAD’ is a synonym for; Compliant Orientation, Aggressive Orientation and Detached

Individuals.

These are;

1) Compliant Orientation

Compliant individuals are those who move towards others. They desire to be loved,

wanted, appreciated and approved.

The implication of this orientation to marketers then is that marketers should identify the

opinion leader, innovator and include them so that they will influence others. For

example; Valentines Present, Birthday presents. Remember their relationships.

2) Aggressive Orientation

It includes people who tend to be more against others. The kind of personality they have

is that they want change.

The implication to marketers is that marketers need to understand their personality and

design strategic ways of reaching them. They have a particular need for power and the

ability to manipulate others.

3) Detached Individuals

These are those kinds of people who move away from others. They desire independence,

self reliance, self sufficiency and individualism or freedom from obligation. They avoid

forming emotional bonds with others that may involve them in obligation.

Marketing implications of CAD

1) Consumers with a compliant orientation can easily be in included using adverts that stress

social needs. Eg the Redds Advert.

2) Consumers with an aggressive orientation can easily respond to adverts with a masculine

appeal. Eg Sta Soft energises and revitalises the shine, Hairspray etc

3) Consumers with detached orientation are likely to do additional activities therefore can

easily switch brands as they do not have a desire to conform.

Trait Theory

It focuses on the quantitative measurement of traits or indentified characteristics that define a

person. A trait is any distinguishing and relatively enduring way in which one individual differs

from others. For example, people can be distinguished by the degree to which they are socially

outgoing. This is the Degree of Extroversion. Introverts are more quiet and reserved.

Some traits that are relevant to consumer behaviour include;

Innovativeness (the degree to which a person like to try new things

Materialism (amount of emphasis placed on acquiring and owning products)

Self-consciousness (image of self)

These traits are put on a continuum scale to obtain a consumer personality profile for any given

individual.

The scale measures on a five point agreement which is: Strongly Agree, Agree, Neutral,

Strongly Disagree and Disagree.

Traits include assertiveness, intelligent, suspicious, self sufficient, controlled, tense, talkative,

innovativeness etc.

Personality and Understanding Consumer Diversity

Certain personality traits ate important in understanding consumer behaviour and marketers need

to understand this. Traits help marketers segment the market. The shared traits are basis for

segmenting while specific levels of the traits are basis for including our customers.

1) Dogmatism

This term refers to someone with a strong belief. He or she follows a doctrine stubbornly.

Dogmatism is a personality that measures the degree on individual displays towards

unfamiliar brand and towards information contrary to their established beliefs. It

measures the degree of rigidity. A person who is highly dogmatic approaches the

unfamiliar defensively and with considerable discomfort and uncertainty.

A person who is lowly dogmatic will readily consider unfamiliar or opposing beliefs.

Therefore, consumers with low dogmatism are likely to prefer innovative products to

traditional alternatives. On the contrary, consumers with high dogmatism are more likely

to choose established rather that innovative products or alternatives. It would need

celebrities and experts in the new product to get through to them.

2) Consumer Innovativeness

This describes how consumers are receptive to new products. This personality trait

measure provides important insights into the nature of boundaries of a consumer

willingness to innovate. For example, collect unusual products as a way of telling people

that i am different???/////////////?????????

3) Ethnocentric

It is a personality trait that identifies how consumers are likely to accept or reject foreign

made goods. Highly ethnocentric consumers feel it is wrong to buy foreign made goods

because of the impact on the domestic economy. On the contrary, lo ethnocentric

consumers tend to evaluate foreign made gods more objectively. As such, marketers need

to conduct cost/benefit analysis such that their products outweigh those of high

ethnocentric consumers.

Perception

This is the process by which the organisation interprets and organises sensation to produce a

meaningful experience of the world.

Sensation usually refers to the immediate, relatively unprocessed result of stimulation of sensory

receptors in the eyes, ears, nose, tongue and skin. According to Lindsay and Norman (),

perception and sensation are impossible to separate because they are part of one continuous

process.

Consumers perceive an organisation’s products so that they can select, organise and interpret the

products.

Perception mainly depends on;

Nature of Stimuli Selection

Aroma, bright light ads Organisation Perception

Interpretation

Expectation

Learning Interpret brand Info

Motives

The role of the marketer is to enhance the selection of the organisation’s products rather than

consumers through adverts, packaging and branding.

The relation found between various types of stimulation (eg light waves and sound) and their

associated perceptions suggest inference that can be made about the properties of the perceptual

process. Perceptions are given directly with experience.

The way people perceive the world differs between individuals. Eg, people interpret one stone

sculpture/painting differently.

Perception is important to you because it represents the way the consumerviews your product or service. You can influence the perception of yourconsumer by understanding the current perception consumers have of yourproduct and making changes so your product is recognized, interpreted, andstored in their memory (rather than simply ignored). See Chapter 5 for thebasics on consumer perception.Familiarize yourself with perception, sensory thresholds, and the process thatconsumers go through to construct their perception. You can then use thisinformation to tailor your marketing stimulus — such as ads, packaging, andpricing — for each particular segment that you’re trying to attract.Perception is such an important part of getting consumers to purchase yourproduct or service that I’ve dedicated Chapter 16 to explaining how you caninfluence perception of whatever it is that you’re selling while educating consumersabout your particular offering.Attitude

a) Absolute Threshold

Not all stimuli will bring about a sensation. The lowest level at which an individual can

experience a sensation is called the Absolute Threshold and this differs from one person

to the next.

Sensory adaptation occurs when the sensor organs (sight, smell, taste and touch) are

exposed to the stimulus of some intensity. As the sense gets used to the sensation, it will

not respond to the stimuli anymore. For example, as one is about to dive into a swimming

pool, he imagines the coldness of the water but once in the water, he loses that

imagination. It means his body has gotten used to the cold water.

For this reason, television adverts change their advert campaigns, same as the other

media forms. It is important that the new advert campaigns or designs be above the

absolute threshold. Adverts should also be flighted at the end of interesting programmes.

When adverts are flighted in between the flighting of an interesting program, there is

bound to be reduction of the stimuli and the advert is not detected.

b) Differential Threshold/Just noticeable Difference. (Weber’s Law)

The minimum difference that can be detected between two similar stimuli is called the;

differential threshold or the Just Noticeable Difference.

The issue of when and if a difference between two stimuli will be noticed by consumers

is relevant to many marketing situations.

Sometimes a marketer may want to ensure that change is observed as when merchandise

is offered at a discount. In other situations, the fact that the difference has been made may

downplay the price income when the product is downsized.

Just noticeable difference is in line with Weber’s Law which states that the stronger the

intial stimulus, the greater the change must be for it to be noticed. Or the greater the

additional intentions needed for the second stimulus to be perceived as different. For

example, reducing the price of a pair of socks from $10 to $8; a discount of 20% and

reducing a cooker price from $100 by $2 does not have the similar impact.