Consumer Behavior

Chapter 1

Foundation of consumer behavior

Foundation of consumer behavior

Learning Objectives

✓ Consumer behavior: concept and classification

✓ Our motivations to consume are complex and varied.
✓ There are differing perspectives regarding how and what
we should understand about consumer behavior.
✓ The factors that influence consumer behavior.
✓ Application of the study of consumer behavior in business
Foundation of consumer behavior

Consumer behavior is a process.

Foundation of consumer behavior

People in the Marketplace

✓ Consumption Communities
Foundation of consumer behavior

What Is Consumer Behavior?

The study of the processes involved when individuals or

groups select, purchase, use, or dispose of products, services,
ideas, or experiences to satisfy needs and desires.
Foundation of consumer behavior

Consumer classification

Individual consumer

Orgazination
Figure 1.1 Stages in the Consumption
Process

Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved
Foundation of consumer behavior

For Reflection

How do you decide that you need a product?

What about a purchase makes it pleasant or stressful
for you?
When using the product, what determines if the
experience is pleasant
Foundation of consumer behavior

Marketers have to understand the wants and needs

of different consumer segments.
Consumers are different
Foundation of consumer behavior
Foundation of consumer behavior

Discussion
Application of the study of consumer behavior in
business
Consumer behavior
and Marketing

(Schiffman, 2019)
strategy
A Model of Consumer
Decision-Making
Thank you

Have a nice day

 Chapter 2
Environmental factors affecting
consumer behavior
 Learning objectives
✓ Analyze the influence of environmental factors on consumer behavior
✓ Assess the influence of environmental factors on consumer behavior
✓ Analyzing and applying environmental factors to consumer behavior in
Marketing

Presentation title 2
 Content
Culture factors
Social factors
Situational factors
Legal factors

Presentation title 3
 Cultural factors

• Culture
• Subculture
• Social class

Presentation title 4
“ Cultural factors

”
Culture is the accumulation of shared meanings, rituals,
norms, and traditions
Culture is a society’s personality
 Understanding culture

Products can reflect underlying

cultural processes of a particular
period:

• Cosmetics made of natural

materials without animal testing
• Condoms

Presentation title 6
 Discussion

• The influence of cultural factors

on consumer behavior
• How to apply in Marketing
strategy

Presentation title 8
 Subculture

A subculture is a group that shares

certain beliefs, values, and customs and
exists within a larger society.
A subculture can stem from a person’s
ethnicity, religion, geographic location,
age, or gender.
Subcultures also vary and comprise
different consumer segments.

Presentation title 9
 1. Identify some of the subcultures
to which you belong. How do you
identify with these subcultures?

2. Discuss how the chosen

subculture, Generation Z, differs
from the overarching national
Discussion culture regarding values, beliefs,
customs, attitudes, and
consumption behaviors.
“ Social class is determined by income, family background,
and occupation
Universal pecking order: relative standing in society
Social class affects access to resources

”
 1. How do you assign people
to social classes, or do you
at all?

2. What consumption cues do

you use (e.g., clothing,
Discussion speech, cars, etc.) to
determine social standing?
 Social factors

✓Family
✓Reference groups
✓ Social Media

Presentation title 13
 1. Extended family
(3 generation family)
1. Nuclear family (2 generation family)
2. Double income, no kid
3. Boomerang kids
Family 4. Sandwich generation
structure (DINKS-double income, no kids)
(DINKS-double income, no kids)
(DINKS-double income, no kids)
“ FLC: Family life cycle
The life cycle of the family is the process and stages that a family
typically goes through in its life course. It's a sociological way to look at
the progress that a family has made, and can be used to explore the
changes that modern society has had on families.
”
 Buying decision of family

Members of a family unit play different

roles and have different amounts of
influence when the family makes purchase
decisions.

Presentation title 16
Resolving Decision Conflicts in Families

• Interpersonal need
• Product involvement and utility
• Responsibility
• Power
Groups
• Social Identity
• Minimal group paradigm
 What Are Sources of Power?

Social power: capacity to alter the

actions of others.
• Referent power
• Information power
• Legitimate power
• Expert power
• Reward power
• Coercive power
Membership Versus Aspirational Reference
Groups
Membership reference groups
• People the consumer actually knows
• Advertisers use “ordinary people”

Aspirational reference groups

• People the consumer doesn’t know but admire
• Advertisers use celebrity spokespeople
 Positive Versus Negative Reference Groups

• Avoidance groups: motivation to

distance oneself from other
people/groups
• Anti-brand communities:
coalesce around a celebrity, store,
or brand—but in this case they’re
united by their disdain for it

Presentation title 21
Consumers Do It in Groups
Why do we conform?
• Cultural pressure
• Fear of deviance
• Commitment
• Group unanimity
• Interpersonal influence
• Environmental cues
 Roles in Collective Decision Making

• Initiator
• Gatekeeper
• Influencer
• Buyer
• User

Presentation title 23
Social media
Social media changes the way we learn about and select products.

Source: Courtesy of Toyota Motor Sales U.S.A., Inc.

Successful Online Social Networks and
Communities

• Standards of behavior
• Member contributions
• Degree of connectedness
“ Social media changes the way we learn
about and select products.

”
Word-of-mouth
Word-of-mouth communication is the most important driver of product
choice.
 Merci

Presentation title 28
 CHAPTER 3
PERSONAL FACTORS
INFLUENCE ON CONSUMER
BEHAVIOR
 CONTENT

Gender, age and occupation

Economic situation, lifestyle,

personality

20XX 2
 Gender identity is an important component of a

consumer’s self-concept.

GENDER Gender roles vary by culture but are changing

Many societies still expect traditional roles

 Sex-typed traits: characteristics we stereotypically associate
with one gender or the other.
SEX-TYPED TRAITS
AND PRODUCTS Sex-types products: take on masculine or feminine attributes

20XX PITCH DECK 4

 Sexual Identity

• Neuroendocrinological science
• Bromance
• Masculinism
• Androgyny
• Third-gender movement
• Intersex children
 DISCUSSION
WHAT ARE TWO EXAMPLES OF SEX-TYPED PRODUCTS?
ARTICLE

MBTI
 TRAIT THEORY

PERSONALITY TRAITS: IDENTIFIABLE

CHARACTERISTICS THAT DEFINE A PERSON
TRAITS RELEVANT TO CONSUMER BEHAVIOR:
Innovativeness
Materialism
Self-consciousness
Need for cognition
Frugality
 The Big Five
Description of Big Five Personality Dimensions

Example of Measurement Items

Blank

Description
(agree/disagree)

The degree to which a person is open to Love to think up new ways of doing
Openness to experience
new ways of doing things things

The level of organization and

Conscientiousness Am always prepared
structure a person needs
How well a person tolerates stimulation Talk to a lot of different people at
Extroversion
from people parties
The degree to which we defer to other
Agreeableness Take time out for others
people
How well a person copes with
Neuroticism (emotional instability) Get upset easily
stress

Source: Michael R. Solomon, Rebekah Russell-Bennett, and Josephine Previte, Consumer

Behaviour: Buying, Having, Being, 3rd ed., Frenchs Forest, NSW: Pearson Australia, 2012.
An Example of Brand Personality

Source: Reprinted with permission from Journal of Marketing, published by the American
Marketing Association, Ulrich R. Orth & Keven Malkewitz, May 2008, Vol. 72, p 73.
age
 A lifestyle defines a pattern of consumption that

reflects a person’s choices of how to spend his

LIFESTYLE
or her time and money, and these choices are

essential to define consumer identity.

Product Complementarity and Co-Branding
Strategies
Consumption Style
DISCUSSION

Identify products and

1 settings that would be at
home in your consumption
styles.

Have marketers identified

2 these consumption styles
and used them in
advertising?
Uses of Psychographic Studies
• Define target market
• Create a new view of market
• Position the product
• Better communicate product attributes
• Develop product strategy
• Market social and political issues
VALUE CONCEPTS

Crescive norms Core values

Custom Value systems
More Enculturation
Conventions Acculturation
 How Values Link to Consumer Behavior (1 of
2)
Terminal and Instrumental Values

Instrumental values Terminal values

Ambitious A comfortable life

Broad-minded An exciting life

Capable A sense of accomplishment

Cheerful A world of peace

Clean A world of beauty

Courageous Equality

Forgiving Family security

Helpful Freedom
 How Values Link to Consumer Behavior (2 of
2)
Instrumental values Terminal values

Honest Happiness

Imaginative Inner harmony

Independent Mature love

Intellectual National security

Logical Pleasure

Loving Salvation

Obedient Self-respect

Polite Social recognition

Responsible True friendship

Self-controlled Wisdom

Source: Copyright 1983 From Measuring the Cultural Values Manifest in Advertising,” Current Issues and
Research in Advertising (1983): 71–92 by Richard Pollay. Reproduced by permission of the American Academy of
Advertising (aaoa.wildapricot.org)
AGE OCCUPATION
THANK YOU
Consumer Behavior

Chapter 4
Psychological factors
influence on consumer
behavior
- Motivation
- Perception
- Beliefs
- Attitudes
 Learning Objectives

✓ Products and commercial messages often appeal to our

senses
✓ Perception is a three-stage process that translates raw
stimuli into meaning
✓ The field of semiotics helps us to understand how
marketers use symbols to create meaning.
✓ Products can satisfy a range of consumer needs.
✓ Consumers experience a range of affective responses to
products and marketing messages.
✓ The way we evaluate and choose a product depends on
our degree of involvement with the product, the marketing
message, or the purchase situation
 Learning Objectives

✓ It is important for consumer researchers to understand

the nature and power of attitudes.
✓ We form attitudes in several ways.
✓ Persuasion involves an active attempt to change
attitudes.
Sensation
• Vision
• Scent
• Sound
• Touch
• Taste
Sensory Marketing
• Companies think carefully about the impact of sensations
on our product experiences.
Vision (1 of 2)
• Trade dress
• Color forecasts
Vision (2 of 2)
Table 3.1 Marketing Applications of Colors

Color Associations Marketing Applications

Yellow Optimistic and youthful Used to grab window shoppers’

attention
Red Energy Often seen in clearance sales

Blue Trust and security Banks

Green Wealth Used to create relaxation in

stores
Orange Aggressive Call to action: subscribe, buy or
sell
Black Powerful and sleek Luxury products

Purple Soothing Beauty or anti-aging products

Source: Adapted from Leo Widrich, “Why Is Facebook Blue? The Science Behind Colors in
Marketing,” Fast Company (May 6, 2013), fastcompany.com accessed February 23, 2015.
Key Concepts in Use of Sound
• Audio watermarking
• Sound symbolism
• Phenomes
Key Concepts in the Use of Touch
• Endowment effect
• Haptic
• Kansei engineering
For Reflection
• Imagine you are the marketing consultant for the package
design of a new brand of premium chocolate.
• What recommendations would you make regarding sight
and scent?
• How has your sense of touch influenced your reaction to a
product?
• Which of your senses do you feel is most influential in your
perceptions of products?
Stages of Perception
• Exposure
• Attention
• Interpretation
Figure 3.1 Perceptual Process
Semiotic Relationships

• Object
• Sign
• Interpretant
• Icon
• Index
• Symbol
Examples of Brand Positioning
Dimensions Brand Positioning

Lifestyle Grey Poupon is “high class”

Price leadership L’Oreal sells Noisome brand face cream

Attributes Bounty is “quicker picker upper”

Product class The Spyder Eclipse is a sporty convertible

Competitors Northwestern Insurance is the quiet company

Occasions Use Wrigley’s gum when you can’t smoke

Users Levi’s Dockers targeted to young men

Quality At Ford, “Quality is Job 1”

For Reflection
Think of a commercial you have recently seen and explain
the object, sign and interpretant.
The Motivation Process: Why Ask
Why?
• Motivation
– Utilitarian
– Hedonic
• Goal
• Incidental brand exposure
Motivational Direction
Needs Versus Wants
• Productivity orientation
Classifying Consumer Needs
Murray’s psychogenic needs
• Autonomy, defendence, play

Specific needs
• Need for Affiliation
• Need for Power
• Need for Uniqueness
Figure 5.2 Maslow’s Hierarchy of
Needs
For Reflection
• Give an example when you had a need for affiliation,
power, or uniqueness.
The Power of Attitudes
• Attitude: a lasting, general evaluation of people, objects,
advertisements, or issues
• Attitude object (A O): anything toward which one has an
attitude
Functional Theory of Attitudes
• Utilitarian Function:
– Relates to rewards and punishments
• Value-Expressive Function:
– Expresses consumer’s values or self-concept
• EGO-Defensive Function:
– Protect ourselves from external threats or internal
feelings
• Knowledge Function:
– Need for order, structure, or meaning
For Reflection
• Imagine that you work for the marketing department of your
college or university and have segmented students into
four different clusters, each representing one of the four
functions identified by Katz.
• Develop a marketing strategy based on each of the four
functions to motivate students to stay in school and
complete their degrees.
The AB C Model of Attitudes
Attitudes are more complex than they first appear.
Hierarchies of Effects
• High-involvement hierarchy
• Low-involvement hierarchy
• Experiential hierarchy of effects
• Cognitive-affective model
• Independence hypothesis
Figure 8.1: Three Hierarchies of Effects
Attitude Commitment
Internalization
Highest level: deep-seeded attitudes become part of
consumer’s value system
Identification
Mid-level: attitudes formed in order to conform to another
person or group
Compliance
Lowest level: consumer forms attitude because it gains
rewards or avoids punishments
For Reflection
• Share a commitment you’ve made at each of the three
levels of commitment:
– Internalization
– Identification
– Compliance
• Can you feel the variations in commitment for the three
types? Explain.
Attitude Models
Attitude models identify specific components and combine
them to predict a consumer’s overall attitude toward a
product or brand.
A Multiattribute Attitude Model: The
Fishbein Model
• Salient Beliefs
• Object-Attribute Linkages
• Evaluation
The Extended Fishbein Model: The
Theory of Reasoned Action
• Intentions versus behavior: measure behavioral intentions,
not just intentions
• Social pressure: acknowledge the power of other people in
purchasing decision
• Attitude toward buying: measure attitude toward the act of
buying, not just the product
Marketing Applications of the
Multiattribute Model (1 of 2)
Table 8.1 The Basic Multiattribute Model: Saundra’s College
Decision
Beliefs (B)

Attribute (i) Importance (I) Smith Princeton Rutgers Northland

Academic reputation 6 8 9 6 3
All women 7 9 3 3 3
Cost 4 2 2 6 9
Proximity to home 3 2 2 6 9
Athletics 1 1 2 5 1
Party atmosphere 2 1 3 7 9
library facilities 5 7 9 7 2
Blank

Attitude score 163 142 153 131

Marketing Applications of the
Multiattribute Model (2 of 2)
• Capitalize on Relative Advantage
• Strengthen Perceived Linkages
• Add a New Attribute
• Influence Competitor’s Ratings
How Do Marketers Change Attitudes?
• Reciprocity
• Scarcity
• Authority
• Consistency
• Liking
• Consensus
For Reflection
• Can you think of a time that you were persuaded by
marketing? Which of the persuasion tactics were used and
in what way?
Thank you

Have a good day

Consumer Behavior

Chapter 5

Consumer decision process

Consumer decision process

Learning Objectives

✓ The three categories of consumer decision-making are

cognitive, habitual, and affective.
✓ A cognitive purchase decision is the outcome of a series of
stages that results in the selection of one product over
competing options.
✓ We often rely on rules-of-thumb to make decisions.
✓ The way information about a product choice is framed can
prime a decision even when the consumer is unaware of
this influence.
Three Types of Decision-Making

The Three “Buckets” of Consumer Decision Making

Self-Regulation
• Implementation intentions
• Counteractive construal
• Feedback loop
• Morning Morality Effect
• Executive control center
For Reflection
• Provide an example when the feedback loop was used on
you.
Steps in the Decision-Making
Process
• Problem recognition
• Information search
• Evaluation of alternatives
• Product choice
Consumer Decision Making
Stages in Consumer Decision Making
Online Decision Making

• Cybermediary
• Intelligent agents
• Search engines
• Search engine
optimization
• Long tail
Strategic Implementation of Product
Categories
• Position a product
• Identify competitors
• Create an exemplar product
• Locate products in a store
For Reflection
• Think of some of the common country of origin effects
(e.g., watches, wine). Which ones affect your consumer
choices? What could brands from other countries do to
compete such effects?
Biases in Decision-Making Process
• Mental accounting: framing a problem in terms of
gains/losses influences our decisions
• Sunk-cost fallacy: We are reluctant to waste something we
have paid for
• Loss aversion: We emphasize losses more than gains
• Prospect theory: risk differs when we face gains versus
losses
For Reflection (4 of 4)
• When have you made a high involvement decision on the
basis of affect?
• Were you in a maximizing mode or satisficing mode?
Purchase and Postpurchase
Activities
A consumer’s choices are affected by many personal
factors…and the sale doesn’t end at the time of purchase.
Issues Related to Purchase and Post purchase Activities
Reasons for Shopping
• Social experiences
• Sharing of common interests
• Interpersonal attraction
• Instant status
• The thrill of the hunt
E-Commerce: Clicks Versus Bricks
• Benefits: good customer service, more options, more
convenient
• Limitations: lack of security, fraud, actual shopping
experience, shipping charges
Retailing as Theater
• Landscape themes
• Marketscape themes
• Cyberspace themes
• Mindscape themes
Salespeople Play a Key Role
Postpurchase Satisfaction
• Consumer satisfaction/dissatisfaction (CS/D)
• Expectancy disconfirmation model
Product Disposal
• Recycling
• Lateral cycling
– Underground economy
– Recommerce
– Swishing
Underground Economy
The underground economy in the form of flea markets and
other used-product sales formats

This Photo by Unknown Author is licensed under CC BY-NC-ND

For Reflection
• What items have you purchased from the underground
ecomomy?
• How do you feel postpurchase if you know you can recycle
the product?
Thank you

Have a nice day