0% found this document useful (0 votes)

4K views

Consumer Behaviour 5th Ed

The document is the 5th edition of 'Consumer Behaviour' edited by Mornay Roberts-Lombard, Michael Cant, and Sanjana Brijball Parumasur, published by Juta & Company in 2012. It covers various aspects of consumer behavior, including definitions, importance, market value, and characteristics influencing consumer decisions. The content is structured into chapters that explore the roles of customers, the decision-making process, and the implications for marketing strategies.

Uploaded by

klaasthabiso52

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

4K views

Consumer Behaviour 5th Ed

Uploaded by

klaasthabiso52

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 441

Consumer

Behaviour
Copyright © 2012. Juta & Company, Limited. All rights reserved.

5th edition

Mornay Roberts-Lombard
Michael Cant
Sanjana Brijball Parumasur
(EDITORS)

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:58.
Consumer Behaviour

5th Edition
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Consumer Behaviour 5E.indb 1 2022/03/29 11:19 AM

Consumer Behaviour 5E.indb 2 2022/03/29 11:19 AM

Consumer Behaviour

5th Edition

Mornay Roberts-Lombard
Michael Cant
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Sanjana Brijball Parumasur

(EDITORS)

Consumer Behaviour 5E.indb 3 2022/03/29 11:19 AM

Contents

Author team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvi

Chapter 1: Introduction to customer behaviour . . . . . . . . . . . . . 1

1.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 What is consumer behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2.1 Types of customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2.2 The three roles of customers . . . . . . . . . . . . . . . . . . . . . . 3
1.2.3 Mental and physical activities . . . . . . . . . . . . . . . . . . . . 4
1.3 The importance of customer behaviour . . . . . . . . . . . . . . . . . . . . . . 6
1.3.1 Customer satisfaction and customer retention . . . . . . . . 8
1.3.2 The marketing concept . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.3.3 Customer focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.4 The role of customer behaviour in marketing strategy . . . . . . . . . . . 11
1.5 The nature of customer behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.5.1 External influences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.5.2 Internal influences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.5.3 Market characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.5.4 Personal characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.5.5 The customers (with their self-concept and lifestyle) . . . 14
Copyright © 2012. Juta & Company, Limited. All rights reserved.

1.5.6 The customer decision-making process . . . . . . . . . . . . . 15

1.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Chapter 2: Creating market value for consumers . . . . . . . . . . . . 19

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.2 Defining value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.3 The market value of a product or service . . . . . . . . . . . . . . . . . . . . . 20
2.3.1 Market values sought by users . . . . . . . . . . . . . . . . . . . . 21
2.3.2 Market values sought by payers . . . . . . . . . . . . . . . . . . . 22
2.3.3 Market values sought by buyers . . . . . . . . . . . . . . . . . . . 23
2.4 The value bundling of products and services . . . . . . . . . . . . . . . . . . 25
2.4.1 Non-durable goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Consumer Behaviour 5E.indb 5 2022/03/29 11:19 AM

Consumer Behaviour

2.4.2 Durable goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

2.4.3 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.5 The organisation’s perspective on measuring value . . . . . . . . . . . . . 27
2.5.1 Determining the benchmark of expected value . . . . . . . 29
2.5.2 Formulating a strategy for delivering value to
the consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.5.3 Measuring value delivery . . . . . . . . . . . . . . . . . . . . . . . . 30
2.5.4 Investigating deviations and adapting the strategy . . . . 31
2.6 Marketing implications of the concept of value . . . . . . . . . . . . . . . . 31
2.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Chapter 3: Market characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . 35

3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.2 Market characteristics and their influence on
consumer behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
3.2.1 Demographic characteristics of the South African
population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
3.2.2 Economic factors influencing consumer behaviour . . . . 41
3.2.3 Governmental factors influencing consumer
behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
3.2.4 Physical conditions influencing consumer behaviour . . 44
3.2.5 Social factors influencing consumer behaviour . . . . . . . 45
3.2.6 Technological factors influencing consumer
behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.3 Developing trends that influence consumer behaviour . . . . . . . . . . 47
3.3.1 Green marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Copyright © 2012. Juta & Company, Limited. All rights reserved.

3.3.2 Cause-related marketing . . . . . . . . . . . . . . . . . . . . . . . . . 50

3.3.3 Marketing to gay and lesbian consumers . . . . . . . . . . . . 51
3.3.4 Gender-based marketing . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.3.5 Rising black middle class . . . . . . . . . . . . . . . . . . . . . . . . 55
3.4 Marketing implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
CASE STUDY: Google Stations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Chapter 4: Culture and consumer behaviour . . . . . . . . . . . . . . . . 63

4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.2 The nature of culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Roberts-Lombard,viM.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 6 2022/03/29 11:19 AM

Contents

4.3 Evolving nature of culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

4.4 Cultural factors affecting consumer behaviour . . . . . . . . . . . . . . . . 64
4.4.1 What cultural factors are . . . . . . . . . . . . . . . . . . . . . . . . 64
4.5 Subcultural influences on marketing decisions . . . . . . . . . . . . . . . . 67
4.6 Effect of culture on consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
4.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Chapter 5: Reference groups and social class . . . . . . . . . . . . . . . . 71

5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
5.2 Reference groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
5.2.1 Types of reference groups . . . . . . . . . . . . . . . . . . . . . . . . 72
5.2.2 The use of reference groups in marketing . . . . . . . . . . . 75
5.2.3 Characteristics of reference groups . . . . . . . . . . . . . . . . . 75
5.2.4 Reference groups and advertising . . . . . . . . . . . . . . . . . 76
5.3 Social class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
5.3.1 Social classes and their buying patterns . . . . . . . . . . . . . 79
5.3.2 Social class and consumer behaviour . . . . . . . . . . . . . . . 80
5.3.3 Marketing strategy and the social classes . . . . . . . . . . . . 82
5.3.4 The Living Standards Measure (LSM) and the
new Socio-Economic Measure (SEM) models . . . . . . . . . 83
5.4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Chapter 6: Personal characteristics . . . . . . . . . . . . . . . . . . . . . . . . . 87

6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Copyright © 2012. Juta & Company, Limited. All rights reserved.

6.2 Religion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
6.3 Race . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
6.3.1 Race and products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
6.3.2 Race and marketing communications . . . . . . . . . . . . . . 90
6.3.3 The Living Standards Measure (LSM) . . . . . . . . . . . . . . . 90
6.4 Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
6.4.1 The changing role of women . . . . . . . . . . . . . . . . . . . . . 92
6.4.2 The changing role of men . . . . . . . . . . . . . . . . . . . . . . . . 95
6.4.3 Non-binary marketing . . . . . . . . . . . . . . . . . . . . . . . . . . 96
6.5 Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
6.5.1 Defining age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
6.5.2 The importance of age to marketers . . . . . . . . . . . . . . . . 97
6.5.3 Age subcultures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, vii
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 7 2022/03/29 11:19 AM

Consumer Behaviour

6.5.4 General tips for multigenerational marketing . . . . . . . . 105

CASE STUDY: Tropika . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
6.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Chapter 7: Customer perception and learning . . . . . . . . . . . . . . . 113

7.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
7.2 Defining customer perception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
7.3 The customer perception process defined . . . . . . . . . . . . . . . . . . . . 114
7.4 The importance of customer perception . . . . . . . . . . . . . . . . . . . . . . 115
7.5 The customer as a perceiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
7.5.1 The nature of perception . . . . . . . . . . . . . . . . . . . . . . . . 116
7.5.2 The perceptual process discussed . . . . . . . . . . . . . . . . . . 117
7.6 Customer learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
7.6.1 The nature of learning . . . . . . . . . . . . . . . . . . . . . . . . . . 121
7.6.2 The elements of learning . . . . . . . . . . . . . . . . . . . . . . . . 122
7.6.3 Theories of learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
7.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

Chapter 8: Customer motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

8.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
8.2 The nature of motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
8.2.1 Needs, motives and objectives . . . . . . . . . . . . . . . . . . . . 130
8.2.2 Need arousal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
8.2.3 The drive state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Copyright © 2012. Juta & Company, Limited. All rights reserved.

8.3 The classification of motives (needs) . . . . . . . . . . . . . . . . . . . . . . . . . 133

8.3.1 Maslow’s hierarchy of needs . . . . . . . . . . . . . . . . . . . . . . 133
8.3.2 McGuire’s psychological motives . . . . . . . . . . . . . . . . . . 137
8.3.3 Economic and emotional classification . . . . . . . . . . . . . 139
8.4 Psychographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
8.4.1 Psychographics and lifestyle . . . . . . . . . . . . . . . . . . . . . . 140
8.4.2 Values determine lifestyle . . . . . . . . . . . . . . . . . . . . . . . . 140
8.4.3 Psychographic profiles . . . . . . . . . . . . . . . . . . . . . . . . . . 141
8.4.4 The uses of psychographics . . . . . . . . . . . . . . . . . . . . . . . 141
8.5 Motivational research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
8.5.1 Depth interviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
8.5.2 Projective techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
CASE STUDY: The Oliver family . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

Roberts-Lombard,viiiM.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 8 2022/03/29 11:19 AM

Contents

8.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

Chapter 9: Customer attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

9.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
9.2 The nature of customer attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
9.2.1 Definition of customer attitudes . . . . . . . . . . . . . . . . . . . 150
9.2.2 Attitudes as a combination of interrelated beliefs
and values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
9.3 The ABC model of attitude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
9.3.1 The affective component . . . . . . . . . . . . . . . . . . . . . . . . 151
9.3.2 The behavioural component . . . . . . . . . . . . . . . . . . . . . . 151
9.3.3 The cognitive component . . . . . . . . . . . . . . . . . . . . . . . . 152
9.3.4 Component consistency . . . . . . . . . . . . . . . . . . . . . . . . . 153
9.4 The functions of attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
9.4.1 The adjustment or utilitarian function . . . . . . . . . . . . . . 154
9.4.2 The ego-defensive function . . . . . . . . . . . . . . . . . . . . . . 155
9.4.3 The value-expressive function . . . . . . . . . . . . . . . . . . . . 155
9.4.4 The knowledge function . . . . . . . . . . . . . . . . . . . . . . . . . 156
9.5 Attitude formation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
9.5.1 Classical conditioning . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
9.5.2 Instrumental conditioning . . . . . . . . . . . . . . . . . . . . . . . 157
9.5.3 Cognitive learning theory . . . . . . . . . . . . . . . . . . . . . . . 157
9.5.4 Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
9.5.5 External authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Copyright © 2012. Juta & Company, Limited. All rights reserved.

9.5.6 Marketing communications . . . . . . . . . . . . . . . . . . . . . . 158

9.6 Attitude change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
9.6.1 Changing the affective component . . . . . . . . . . . . . . . . 159
9.6.2 Changing the behavioural component . . . . . . . . . . . . . . 159
9.6.3 Changing the cognitive component . . . . . . . . . . . . . . . . 160
9.6.4 Factors that influence attitude change . . . . . . . . . . . . . . 161
CASE STUDY: Tropika . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
9.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

Chapter 10: Personality and self-concept . . . . . . . . . . . . . . . . . . . 167

10.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
10.2 The nature of personality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, ix
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 9 2022/03/29 11:19 AM

Consumer Behaviour

10.3 The characteristics of personality . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

10.3.1 Personality as reflecting individual differences . . . . . . . 170
10.3.2 Personality as consistent and enduring . . . . . . . . . . . . . 170
10.3.3 Personality as a whole actualising itself in an
environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
10.3.4 Personality can change . . . . . . . . . . . . . . . . . . . . . . . . . . 171
10.4 Personality theories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
10.4.1 Freud’s psychoanalytic theory of personality . . . . . . . . . 171
10.4.2 Neo-Freudian theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
10.4.3 Trait theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
10.4.4 Gestalt theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
10.5 The influence of personality on lifestyle . . . . . . . . . . . . . . . . . . . . . 173
10.6 The value of personality to marketers . . . . . . . . . . . . . . . . . . . . . . . . 174
10.7 Self and self-concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
10.7.1 One self or multiple selves? . . . . . . . . . . . . . . . . . . . . . . . 177
10.7.2 The makeup of the self-concept . . . . . . . . . . . . . . . . . . . 178
10.7.3 The extended self . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
10.7.4 Altering the self . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
CASE STUDY: Jenna Clifford Designs . . . . . . . . . . . . . . . . . . . . . . . . 180
10.8 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

Chapter 11: Market segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . 185

11.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
11.2 The STP process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
11.3 Segmentation of markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
Copyright © 2012. Juta & Company, Limited. All rights reserved.

11.3.1 Demographic segmentation . . . . . . . . . . . . . . . . . . . . . . 188

11.3.2 Geographic segmentation . . . . . . . . . . . . . . . . . . . . . . . . 190
11.3.3 Lifestyle and psychographic segmentation . . . . . . . . . . . 191
11.3.4 Usage or behavioural segmentation . . . . . . . . . . . . . . . . 194
11.3.5 Needs/benefit segmentation . . . . . . . . . . . . . . . . . . . . . . 198
11.3.6 Market value-based segmentation . . . . . . . . . . . . . . . . . . 199
11.3.7 Purchase decision makers . . . . . . . . . . . . . . . . . . . . . . . . 200
11.3.8 Segmentation in business-to-business markets (B2B) . . . 202
11.4 Developing segment profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
11.5 Targeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
11.6 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
11.6.1 Developing a positioning strategy . . . . . . . . . . . . . . . . . 209
11.6.2 Repositioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
CASE STUDY: Life insurance – emerging middle-class market . . . . . 212

Roberts-Lombard,x M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 10 2022/03/29 11:19 AM

Contents

11.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

Chapter 12: The consumer decision-making process . . . . . . . . . 219

12.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
12.2 The consumer decision-making process . . . . . . . . . . . . . . . . . . . . . . 222
12.3 Buying situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
12.4 The stages in the decision-making process . . . . . . . . . . . . . . . . . . . . 224
12.4.1 Problem recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
12.4.2 The search for and processing of information . . . . . . . . 226
12.4.3 Evaluation of alternative products and services . . . . . . . 230
12.4.4 The response, or buying decision . . . . . . . . . . . . . . . . . . 231
12.4.5 Post-buying evaluation or response . . . . . . . . . . . . . . . . 232
12.5 Marketing implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
CASE STUDY: Nisha buys a new car . . . . . . . . . . . . . . . . . . . . . . . . . 236
12.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237

Chapter 13: Household or family decision making . . . . . . . . . . . 243

13.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
13.2 The household or family as a primary reference group . . . . . . . . . . 243
13.2.1 The different types of families and their unique
dynamics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
13.3 The functions of the household . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
13.3.1 The socialisation of household members . . . . . . . . . . . . 248
Copyright © 2012. Juta & Company, Limited. All rights reserved.

13.3.2 Economic well-being . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249

13.3.3 Emotional support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
13.4 Suitable household lifestyles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
13.5 Household decision making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
13.5.1 Role behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
13.5.2 Husband-and-wife decision making . . . . . . . . . . . . . . . . 251
13.5.3 How spouses influence the decision-making process . . . 252
13.6 The household life cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
13.6.1 The traditional household life cycle . . . . . . . . . . . . . . . . 253
13.6.2 The contemporary household life cycle . . . . . . . . . . . . . 254
13.7 Household expenditure patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
CASE STUDY: Household decision-making roles . . . . . . . . . . . . . . . 259

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, xi
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 11 2022/03/29 11:19 AM

Consumer Behaviour

13.8 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260

Chapter 14: Organisational buying behaviour . . . . . . . . . . . . . . . 263

14.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
14.2 Who are organisational customers? . . . . . . . . . . . . . . . . . . . . . . . . . 264
14.3 The importance of organisational buying behaviour . . . . . . . . . . . . 265
14.4 The buying process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
14.5 Buying situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
14.5.1 Straight rebuy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
14.5.2 Modified rebuy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
14.5.3 New task . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
14.6 Integrating the buying process with buying situations . . . . . . . . . . 268
14.7 The buying centre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
14.8 Forces that shape organisational buying . . . . . . . . . . . . . . . . . . . . . 271
14.8.1 Environmental forces . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
14.8.2 Organisational forces . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
14.8.3 Group forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
14.8.4 Individual forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
14.9 Relationships in B2B markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
14.9.1 Types of B2B relationship . . . . . . . . . . . . . . . . . . . . . . . . 274
14.9.2 The social dimensions of relationships . . . . . . . . . . . . . . 276
14.9.3 Buyer−supplier interaction in a B2B context . . . . . . . . . 278
14.10 The interaction approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
14.11 Implications of recent developments in organisational buying . . . . 281
14.12 Putting theory and practice together . . . . . . . . . . . . . . . . . . . . . . . . 282
Copyright © 2012. Juta & Company, Limited. All rights reserved.

CASE STUDY: Komatsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283

14.13 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286

Chapter 15: Consumer loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

15.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
15.2 Brand loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
15.2.1 The influence of brand names on product preference . . 291
15.2.2 Brand image . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
15.2.3 Brand preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
15.2.4 The formation of brand loyalty . . . . . . . . . . . . . . . . . . . 295
15.2.5 Brand loyalty and repeat buying behaviour . . . . . . . . . . 295

Roberts-Lombard,xiiM.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 12 2022/03/29 11:19 AM

Contents

15.2.6 Complex decision making and brand loyalty . . . . . . . . . 296

15.2.7 Brand loyalty and vulnerability . . . . . . . . . . . . . . . . . . . 297
15.2.8 The stages of brand loyalty . . . . . . . . . . . . . . . . . . . . . . . 298
15.2.9 Brand loyalty and brand segmentation . . . . . . . . . . . . . 300
15.2.10 Determining the brand-loyal segment . . . . . . . . . . . . . . 301
15.2.11 Brand loyalty correlates . . . . . . . . . . . . . . . . . . . . . . . . . 303
15.2.12 Models of brand loyalty . . . . . . . . . . . . . . . . . . . . . . . . . 305
15.2.13 Consumer behaviour and brand type . . . . . . . . . . . . . . . 305
15.3 Store loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
15.4 Marketing implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310
CASE STUDY: Assessing brand loyalty . . . . . . . . . . . . . . . . . . . . . . . 313
15.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314

Chapter 16: Building relationships with customers . . . . . . . . . . 319

16.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
16.2 Relationship marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
16.3 Customer relationship management (CRM) . . . . . . . . . . . . . . . . . . . 322
16.3.1 The importance of securing a sound CRM
foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326
16.3.2 Social media and the management of a new
generation of customers . . . . . . . . . . . . . . . . . . . . . . . . . 326
16.4 A movement towards customer engagement . . . . . . . . . . . . . . . . . . 328
16.5 From customer relationship management to customer
engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328
16.6 The importance of customer engagement in a competitive business
Copyright © 2012. Juta & Company, Limited. All rights reserved.

environment such as South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . 330

16.7 How to improve customer engagement to strengthen future
relationship building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
16.8 Relationship loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
16.8.1 Customer loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
16.8.2 Customer retention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335
16.8.3 Lifetime value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336
16.9 The individual customer approach . . . . . . . . . . . . . . . . . . . . . . . . . . 337
16.10 Internal marketing as a strategy to enhance external customer
service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338
16.10.1 Enhancing employee relationships through internal
marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339
16.10.2 Training and motivating employees . . . . . . . . . . . . . . . . 340

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, xiii
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 13 2022/03/29 11:19 AM

Consumer Behaviour

CASE STUDY: Corriwood – a customer experience from hell . . . . . . 341

16.11 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342

Chapter 17: The online world and customer behaviour . . . . . . . 347

17.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347
17.2 The three main functions of the web . . . . . . . . . . . . . . . . . . . . . . . . 348
17.2.1 A communications function . . . . . . . . . . . . . . . . . . . . . . 348
17.2.2 An information function . . . . . . . . . . . . . . . . . . . . . . . . 349
17.2.3 A business function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349
17.3 The internet versus the web . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349
17.3.1 Advantages of the web as a business tool . . . . . . . . . . . . 349
17.3.2 The web, online business and customer behaviour . . . . 352
17.3.3 The advent of social media . . . . . . . . . . . . . . . . . . . . . . . 354
17.3.4 Social media as a business channel . . . . . . . . . . . . . . . . . 354
17.4 Online technologies support customer-centrism . . . . . . . . . . . . . . . 355
17.4.1 The danger of the ‘invisible customer’ . . . . . . . . . . . . . . 356
17.4.2 Dealing with online paradigm shifts . . . . . . . . . . . . . . . 357
17.4.3 Facilitating customer decision making through
online media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362
17.4.4 Habitual decision making . . . . . . . . . . . . . . . . . . . . . . . . 365
17.4.5 Getting to know individual customers . . . . . . . . . . . . . . 366
17.5 Online customer behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367
17.5.1 Online shopping behaviour . . . . . . . . . . . . . . . . . . . . . . 367
17.5.2 Isolation and integration . . . . . . . . . . . . . . . . . . . . . . . . 368
17.5.3 An abbreviated attention span . . . . . . . . . . . . . . . . . . . . 368
Copyright © 2012. Juta & Company, Limited. All rights reserved.

17.5.4 Instant gratification . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368

17.5.5 Your world in a monitor . . . . . . . . . . . . . . . . . . . . . . . . . 368
17.5.6 Dependence on shopping agents . . . . . . . . . . . . . . . . . . 369
17.5.7 Too much information . . . . . . . . . . . . . . . . . . . . . . . . . . 369
CASE STUDY: Ford: an example of a customer-centred car producer? . . . . 369
17.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370
Questions for self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401

Roberts-Lombard,xivM.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:59.

Consumer Behaviour 5E.indb 14 2022/03/29 11:19 AM

Consumer Behaviour

First published 2006

Second edition 2012
Third edition 2014
Fourth edition 2017
Fifth edition 2022

© 2022 Juta and Company (Pty) Ltd

1st floor, Sunclare Building, 21 Dreyer Street, Claremont 7708

ISBN (Print): 978 1 48513 221 9

ISBN (webPDF): 978 1 48513 220 2

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means,
electronic or mechanical, including photocopying, recording, or any information storage or retrieval system, without
prior permission in writing from the publisher. Subject to any applicable licensing terms and conditions in the case of
electronically supplied publications, a person may engage in fair dealing with a copy of this publication for his or her
personal or private use, or his or her research or private study. See Section 12(1)(a) of the Copyright Act 98 of 1978.

Production Specialist: Fuzlin Toffar

Editor: Elisma Roets
Proofreader: Lee-Ann Ashcroft
Typesetter: Elinye Ithuba
Cover Designer: Drag and Drop
Indexer: Adami Geldenhuys, Lexinfo CC
Typeset in ITC Stone Serif Std Medium 9.5 on 12.5 pt

The authors and the publisher have made every effort to obtain permission for and to acknowledge the use of
copyright material. Should any infringement of copyright have occurred, please contact the publisher, and every
effort will be made to rectify omissions or errors in the event of a reprint or new edition.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Acknowledgement
Example, page 48. Woolworths’ green marketing strategy from http://www.woolworths.co.za/store/fragments/corporate/
corporate-index.jsp?content=../article/article&contentId=cmp205998. Copyright and permission of Woolworths Holdings.

Consumer Behaviour 5E.indb 4 2022/03/29 11:19 AM

Author team

GENERAL EDITORS
Prof Michael Cant is former Chair of Department in the Department of Marketing
and Retail Management at Unisa. He is the author of numerous books on marketing,
selling, customer relationship management and strategic marketing and has published
extensively in accredited journals. His research interest lies in small business as well
as retailing and consumer behaviour.
Prof M Roberts-Lombard is a Full Professor and Head of Masters and Doctoral
studies in the Department of Marketing Management, School of Consumer
Intelligence and Information Systems in the College of Business and Economics, at
the University of Johannesburg.
Prof S Brijball Parumasur is a Professor and Industrial Psychologist (HPCSA)
in the School of Management, Information Technology and Governance at the
University of KwaZulu-Natal.

CONTRIBUTORS
Dr CH Bothma is a Senior Lecturer in the Department of Marketing and Retail
Management at Unisa.
Prof G Human is a Professor of Strategy, Innovation and Entrepreneurship in the
Department of Business Management at the University of Stellenbosch.
Dr Isolde Lubbe is a Senior Marketing Management lecturer with the School of
Consumer Intelligence and Information Systems at the University of Johannesburg.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Prof CH (Neels) van Heerden is a Research Professor in the Faculty of Manage

ment Sciences at Tshwane University of Technology.

Consumer Behaviour 5E.indb 15 2022/03/29 11:19 AM

Preface

Consumers are the lifeblood of all organisations and it is therefore imperative

that marketers understand their consumers and how they think. How consumers
decide on what product to buy, what factors impact on their decision to purchase a
product or not, and who or what they consult in their final decision are all aspects
that ultimately affect the organisation’s success.
Consumers are influenced by various role players such as family and friends, by
advertising media, interaction with sales staff, their own motivations, experience
and many other aspects, which makes it difficult for marketers to understand fully
how they will react.
Understanding the behaviour of consumers is therefore critical to marketing
planning and strategies, policy and ethics. It guides the actions of the organisation
in order to speak to consumers’ emotions, thinking patterns, attitudes and
perceptions. This is especially relevant considering the varying buying patterns
evident in each generation and culture, and how closely these are linked to
consumer information processing and decision making.
By studying consumer behaviour, students and practitioners alike gain insights into
what makes consumers tick – why they buy, what influences their decisions, how
they buy, and so forth. It is an essential component of marketing and industrial
psychology courses as it looks at the influence of social aspects such as family
values, cultural values and technology on consumer behaviour.
This work strives to cover all relevant aspects of consumers and how the marketer
can address these different facets to the benefit of both parties.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Consumer Behaviour 5E.indb 16 2022/03/29 11:19 AM

Chapter
INTRODUCTION TO
1 CUSTOMER BEHAVIOUR
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain and define what is meant by customer behaviour
■■ Explain and practically demonstrate the three different roles of customers
■■ Explain the importance of customer behaviour by highlighting the reasons for studying
customer behaviour
■■ Explain and illustrate the applications of customer behaviour
■■ Discuss the role of customer behaviour in marketing strategy.

1.1 Introduction
Consumer behaviour, in simple terms, refers to how customers react and respond to
products and services offered to them through the marketing actions of companies.
It therefore stands to reason that companies need to know how consumers react to
their offerings in order to adapt these offerings if need be. The better the business
understands the customer, the better they can develop the right products, services
and marketing for their customers.
Marketers cannot wait until after the product is launched to understand the
needs of the customer – they need to understand them before then as failing to
understand the customer’s mind could result in a substantial amount of money
Copyright © 2012. Juta & Company, Limited. All rights reserved.

lost. Consumer behaviour and correctly predicting it is a complex and demanding

process; customers are unique in many ways. As individuals, they display varying
attitudes towards buying products, using these products (how they are consumed)
and the disposal of these products. By gaining some understanding of consumer
behaviour, marketers may be more successful in the marketing of their products
and services. The study of consumer behaviour is also not a once-off phenomenon
but a continuous process as the consumers’ needs change, as technology and living
standards change, as new trends evolve and so forth. Furthermore, consumers can
and will change their attitude and opinion towards a product, service or company
that will be manifested in their actions – to buy or not to buy! Therefore, the
basic underlying principle of marketing is to understand your customers, their
buying behaviour, habits and needs. It is not enough that the marketer knows
what customers want – the marketer also needs to understand how they make
buying decisions.
The focus of this chapter is on understanding what customer behaviour is,
differentiating between the various customer types and their roles, the importance

Consumer Behaviour 5E.indb 1 2022/03/29 11:19 AM

Consumer Behaviour

of customer behaviour to business management, the applications of customer

behaviour, and the role of customer behaviour in the marketing strategy.

1.2 What is consumer behaviour

There are as many definitions of consumer behaviour as there are authors on
the subject but overall, most authors agree on some elements of what consumer
behaviour entails. Customer behaviour can be defined as the attitude displayed by
a customer while buying a product or service, consuming the product or service
and disposing of the product or service.1,2 There are many other definitions but
maybe a more comprehensive definition is as follows:

Consumer behaviour is the study of individuals, groups, or organisations

and the processes they use to select, purchase, use, and dispose of
products, services, experiences, or ideas to satisfy their needs and the
evaluation and analysis of the effect and impact these processes have
on the consumer and society.
From the definition, it is clear that there are indirect influences on consumer
decisions and that the decisions involve more than the buyer and the seller.
Furthermore, it implies that when we use the term ‘customers’, we are referring not
only to individual purchasers, but also to families, groups and organisations.
Kardes, Cronley and Cline2 define customer behaviour as ‘… all the consumer
activities associated with the purchase, use, and disposal of goods and services,
including the consumer’s emotional, mental, and behavioural responses that
precede, determine, or follow these activities’. This definition encompasses a
variety of activities that people carry out and a number of roles that they play.
As illustrated in Figure 1.1, these factors include the types of customers, different
customer roles and customers’ mental and physical activities. The concept of
Copyright © 2012. Juta & Company, Limited. All rights reserved.

customer behaviour implied here goes beyond marketers’ more traditional focus on
consumer behaviour.

Customer types Roles

Activities Users
Customers
Mental
Selectors
Physical
Business Payers

Figure 1.1 Customer types, roles and behaviours

Roberts-Lombard,2 M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 2 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour

1.2.1 Types of customers

In its true sense, a customer is the person/organisation that makes the decision
regarding the purchase of a product or service and/or the one that pays for it.
Furthermore, according to the marketing concept, the customer is the spill point
around which everything revolves in a business – the needs, purchasing power
and behaviour patterns of customers are therefore of primary importance to any
business. Due to this fact, it is paramount that organisations – in essence, marketers
– understand their customers and what makes them tick. As customers acquire the
goods and services of the organisation by buying it, organisations must ensure
that the goods and services they provide meet the customer’s expectations. Here
we distinguish between consumption by individuals in households and those in
organisations, although the term ‘customer’ encompasses both in this book.
It is however prudent to differentiate between consumer buying behaviour and
business buying behaviour. In the case of business buying behaviour, goods and
services are purchased in order to manufacture other products, such as fresh
produce to can or pulp; to resell items to other customers, for example clothes to
resell to the final customer; or to use the items to perform their duties such as a
printer and pens to use in the business.
The unique characteristics of business buying behaviour distinguish it from
individual consumer buying, and this type of behaviour is therefore not referred to
when the term ‘customer behaviour’ is used.
The use of the term ‘consumer’ to refer to the household market is more common
in textbooks than in practice. For example, retail stores refer to their shoppers
as ‘customers’, and not ‘consumers’. Similarly, utility companies such as Telkom
and Eskom also refer to the people and organisations that use their services as
‘customers’, as do financial institutions such as banks, service companies such
as garden services and dry cleaners, and even personal service providers such
as hairdressers and massage therapists. Professional service providers, such as
insurance salesman, lawyers, estate agents and tax advisors, refer to individuals in
Copyright © 2012. Juta & Company, Limited. All rights reserved.

household markets as ‘clients’ or by their more context-specific roles, for example,

doctors call them ‘patients’, educators call them ‘learners’, and fundraisers call
them ‘donors’. Manufacturers of products, who do not generally deal with the end-
users of a product, refer to the end-users as ‘consumers’. To avoid the difficulties
created by this divergence of terms, we use the term ‘customer’ all-inclusively in
this chapter.
With the understanding of the term ‘customer’ in mind, it is important that we
look at the various roles customers play.

1.2.2 The three roles of customers

A person is deemed a customer if that person performs any of the following roles:
a user of a product, a payer for the product or the buyer of the product. In each
customer role, the values that customers look for can be different, for example the

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 3
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 3 2022/03/29 11:19 AM

Consumer Behaviour

service value for the buyer, the price value for the payer and the performance value
for the user.3
This implies that:
●● The user is the person who actually consumes or uses the product, or who
receives the benefits of the service.
●● The payer is the person who actually finances or pays for the purchase.
●● The selector is the person who participates in the procurement of the product
from the marketplace.

Each of these roles may be carried out by an individual, by an organisational unit

such as a department, or by different people or departments. It is important for
marketers to know that there are various permutations of these customer roles.
Customers divide their three roles in different ways:4
1. The user can be the buyer and payer. Products bought for personal use and
services used for personal reasons fall in this category. For example, customers
who buy (select and pay for) cough medicine for personal use perform the
role of buyer, payer and user of the product. In the same way, the consumer
(patient) that goes to the doctor for medical treatment can perform all three
of these roles.
2. The user can be the payer but not the buyer. A person may pay his travel
agent to buy his cruise tickets and plane tickets. The agent is then the buyer.
3. The user can be the buyer but not the payer. If the gardener buys the plants
and gardening equipment at the shop but pays for it with the owner’s money,
then he is the user and buyer but not the payer.
4. The user can be neither the payer nor buyer. A good example is where the
mother buys toys for the children. They will be the users but not the buyers
or payers for these products.

Companies need to be aware of these different roles and where a customer

performs all these roles. The company will use a different strategy when people
are performing these roles in different formats as either a user only, or payer. The
marketer’s focus can, for example, be on children with a new type of toy during
programmes watched by children. They see the toy and then ask the mother to buy
it for them. The parent may decide to buy it or not. By understanding these roles,
marketers can refine their strategy to maximise potential impact.

1.2.3 Mental and physical activities

The definition of customer behaviour refers to both physical and mental activities,
as reflected in Figure 1.1:
●● Physical activities are exactly what the word says – physical tasks that are
performed, such as the interaction between the customer and the salesperson,
the physical visit to a store and the actual purchase of the product.

Roberts-Lombard,4 M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 4 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour

●● Mental activities refer to the thought processes associated with the process of
purchasing a product. These may be the evaluating of a product’s suitability
for the customer’s needs, based on previous experience, knowledge of other
brands, and any other opinions or views they have about the product.

The decisions customers make are influenced by a variety of factors which are cate
gorised into individual and group factors. These factors are illustrated in Figure 1.2.

Individual factors Group factors

Motivation Family
Perception Culture
Learning ability Social class
Attitude
Reference groups
Personality
Opinion leaders
Lifestyle

Decision-making process

Choice of market offering

Figure 1.2 Factors influencing customer behaviour

Individual factors that influence the decision-making process

Various factors influence behaviour, and these factors collectively impact the
decisions that customers will make. Some factors may be more important than
others and others less important. These factors are motivation, perception, learning,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

beliefs and attitudes:

●● Customers are motivated as a result of their needs, wants, drives and desires.
More simply put, motivation is the driving force within individuals that
pushes them to action.
●● Perception can be defined as the ability of a person to see and become aware
of something, and refers to how the environment or product is regarded in a
way that fits with the person’s frame of reference. In essence, it refers to the
recognition of external stimuli and the responses to these stimuli by means
of the person’s actions.
●● Learning is the acquisition of knowledge by customers by buying and using
a product and applying this knowledge to their future actions or behaviour.
Learning can lead to changes in the actions of customers, and marketers
need to reinforce positive experiences with their product, brand or company
to increase future behaviour.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 5
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 5 2022/03/29 11:19 AM

Consumer Behaviour

●● Customer attitudes are a combination of a customer’s beliefs, feelings and

intentions towards a business, a product or brand. It is a learnt predisposition
to behave in a consistently favourable or unfavourable way towards market-
related objects, events or situations. A business may want to influence or
change a consumer’s attitude for a number of reasons which may be as a result
of a drop in sales, complaints received, or even competition. The reasons for
these trends need to be unmasked in order to be able to change them.
●● Personality refers to a customer’s unique psychological makeup and how it
affects the way a customer responds to their environment. Personality is
made up of the sum of characteristics, including thoughts, behaviours and
feelings, which makes a person unique or different from others.5
●● Lifestyle simply refers to the way a customer or person lives. It refers to the
interests, opinions, behaviours and orientations of a customer and is a
combination of intangible and tangible factors.

Group factors that influence the decision-making process

The influence of group factors emerges when the customer accepts or identifies
with the behaviours and beliefs of reference groups which they regard as being a
dependable source. These group factors that influence customer behaviour include
the following:
●● Family. The family of the customer typically consist of the parents and children,
as well as the customer’s extended family, which includes grandparents and
other relatives.
●● Culture. Culture is an all-encompassing term that includes social behaviour,
norms, knowledge, beliefs, laws, customs, habits and other values that
govern conduct.
●● Social class. The customer’s social class is a useful indication of the type of
product that they would buy. A social class is a group of customers who enjoy
more or less the same prestige and status in society.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Reference groups. These groups involve one or more people the customer uses
as their basis for comparison or point of reference in formulating responses
and performing behaviours. When the reference group consists of only one
person who influences the customer’s purchasing decisions, that person is
called an opinion leader.

Customer behaviour is influenced by, and in turn influences, the above-mentioned

factors, which all form a critical part of our everyday existence. It is thus clear that
marketers need to understand these factors and how they impact on their customers.

1.3 The importance of customer behaviour

The relevance and importance of studying customer behaviour are important for
marketers. It helps them understand the customer’s expectations, why they buy
a product, what their customers like or dislike, and enables them to design an
offering that meets the customer’s needs.

Roberts-Lombard,6 M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 6 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour

Based on the findings of a Salesforce report, 76% of customers are of the opinion
that companies should understand what their needs and expectations are. By
implication, this means that if a company does not understand the wants and
needs of the customer before they tell the company, the chances are that they will
take their business elsewhere.6 Organisations can achieve a competitive advantage
by anticipating and predicting customers’ needs and wants and providing benefits
that customers may be unaware of at the time but may desire in the future.
A successful organisation will focus its marketing strategies, using insights into its
customers’ behaviour as the foundation. Products and strategies are not based on
their inputs alone, but include information on what customers want, how they
want it and what influences their decision making. By doing this, the organisation
can maximise its long-term customer value, satisfaction and happiness, while at the
same time maximising profits
By learning more about how customers behave, organisations gain a better
understanding of why customers buy what they buy, or, more generally, why they
respond to marketing stimuli as they do. An understanding of this behaviour
makes it possible for organisations to develop marketing communications, such as
advertisements and brochures, that focus on the way customers react. Organisations
must deliver long-term customer value if they are to survive and thrive.
They can achieve this only if they retain customers by satisfying the customers’
needs, adopting the marketing concept and becoming focused on the customer.
These are the basic three reasons for understanding customer behaviour, and they
are illustrated in Figure 1.3.
We will now briefly discuss the concepts named in Figure 1.3.

Customer satisfaction
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Retain customers

The marketing concept

Long-term
Focus on needs survival

Customer focus

Serve needs of society

Figure 1.3 The reasons for understanding customer behaviour

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 7
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 7 2022/03/29 11:19 AM

Consumer Behaviour

1.3.1 Customer satisfaction and customer retention

Companies invest millions of rands every year on developing new products,
building their brands, and on strategies to market their products, but this will all
be in vain if customers do not buy their products. Customers need to be enticed in
the door and to buy – but not only once! This is where customer satisfaction and
retention become important. It may be hard to get the customer to buy once, but it
is even more difficult to get the customer to become a repeat customer.
Customer satisfaction means that the company ensures that the customer’s needs
are met, their concerns addressed, and that the customer is satisfied with their
experience regarding the company and its offerings. Customer retention, on the
other hand, is getting the customer to come back after the initial purchase and to
repeatedly buy from the company in future. If the company can ensure that their
customers are happy and satisfied, the chances are that they can be retained – that is,
they will come back and spend more money with the business. Today, it is no longer
sufficient for a business simply to satisfy a customer during a single transaction; it
must try to retain the customer for life, that is, achieve customer retention.
Thus, the focus of marketing has shifted from the short-term transactional view of
customers to seeing customers as a long-term income stream. Consider a car repair
company. If you take your car there once and the work is done satisfactorily and
within budget, the chances are that you will return and even refer people to the
business. This is customer retention. This means repeat business for the company.
On the other hand, if you are not satisfied, you will not return and the company
will have lost repeat business.
The realisation that long-term survival is possible only if customer satisfaction is
achieved has led companies and their employees to change the way in which they
treat customers. Employees are told that customer satisfaction is the bottom line
– if customers’ needs are not satisfied, the long-term survival and success of the
company may come under threat.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

1.3.2 The marketing concept

Marketing maturity tends to be a gradual development process and, usually, firms
that have reached full marketing orientation have done so by evolving through
secondary steps of development. Four competing orientations have strongly
influenced business marketing activities over the years: production orientation,
sales orientation, marketing orientation and societal marketing orientation. We
now explore these orientations.

Production orientation
Companies that follow the production concept believe that customers want the
products produced by the company. This approach is based on the ability of the
company to increase output and decrease costs. Production orientation therefore
focuses on the internal capabilities of the business rather than on the desires and
needs of the marketplace. Such an orientation means that management assesses

Roberts-Lombard,8 M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 8 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour

its resources and asks questions such as: ‘What can we do best?’, ‘What can our
engineers design?’ and ‘What is easy to produce, given our equipment?’ The major
shortcoming of this approach lies in the fact that the orientation does not consider
whether the goods and services that the business produces meet the needs of
the marketplace.

Sales orientation
The selling concept is based on the assumption that companies believe that
customers are looking for aggressive sales and promotions by companies. This
implies that companies believe they must sell rather than customers having to buy.
Demand is therefore driven by aggressive sales techniques and not by customer
actions. A sales orientation is based on the premise that people will buy more
products and services if aggressive sales techniques are used and that high sales
result in high profits. To sales-oriented businesses, marketing simply means selling.
The major shortcoming of a sales orientation is a lack of understanding of the needs
and wants of the marketplace.

Marketing orientation
Where the selling concept focuses on the needs of the sellers and on existing
products, the marketing concept focuses on the buyers’ needs. The marketing
orientation is seen as the implementation of the marketing concept and it is based
on the premise that a business should make what it can sell, and not sell what it
can make.
Organisations have moved away from a focus only on sales – that is, the emphasis
is now not only on sales and price per se but also on other aspects such as packaging,
quality, advertising and distribution points. Customers have also developed more
sophisticated needs and are financially in a better position to satisfy them. There
is a large variety of competing products from which they can choose. This has led
management to realise the importance of the marketing function. Production can
Copyright © 2012. Juta & Company, Limited. All rights reserved.

only begin after management has obtained market information on what customers
want, how much they are willing to pay, and how they can best be reached by
means of advertisements, sales promotion methods, publicity and personal selling.
A marketing orientation, which is the foundation of contemporary marketing
philosophy, is therefore based on the understanding that a sale depends not on an
aggressive sales force, but rather on a customer’s decision to buy a product. What
customers think they are buying – perceived value – defines a business.
The marketing concept can be regarded as an ethical code or philosophy according
to which the marketing task is performed. It serves as a guideline for management
decision making about an organisation’s entire spectrum of activities.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 9
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 9 2022/03/29 11:19 AM

Consumer Behaviour

The essence of the marketing concept lies in the following four principles:
1. Customer orientation: Being customer orientated means that the company
should focus all its attention on satisfying the customers’ needs, demands
and preferences. However, this should be carefully balanced with
organisational resources. Customer needs therefore should not be satisfied to
the extent that the organisation no longer makes a profit.
2. Profit orientation: In being customer orientated and meeting the market’s
needs, the organisation must make a profit. The main goal of a company is
to maximise profitability and this can only be achieved if the needs of the
market are met.
3. Organisational integration: This is also known as a systems orientation and
implies that all the systems in the organisation work together to meet the
needs of the customer and, in so doing, maximise profits. All sections
and departments in the organisation therefore work together to achieve a
joint objective. The organisation strives for the acceptance and preference
of their offerings above that of their competitors, which means all the
business activities should be targeted towards the satisfaction of customer
needs and wants.
4. Social responsibility: Social responsibility was added as the fourth element
of the marketing concept and focuses on the organisation as a responsible
entity – one that cares for the environment, gets involved in the community
in which it operates, protects resources, and is involved in the social well-
being of its market and society as a whole. Companies live this out by means
of sponsorship of community initiatives, school support, funding initiatives
like Save the Rhino, and so forth.
The social responsibility element requires marketers to balance company
profits, customer wants and society’s interests in their actions.

Today, marketers are looking a little further and aim to forge lasting relationships
Copyright © 2012. Juta & Company, Limited. All rights reserved.

with relevant groups, including stakeholders such as financial institutions and

customers. This process is called relationship marketing, and is discussed later in
the book.

1.3.3 Customer focus7

By listening to customers and paying attention to how they behave, organisations
are better positioned to meet customers’ needs. Customers express their support for
a company by buying, and continuing to buy, its products. Generally, this loyalty
depends on the perceived value of the products to the customer. A product will
therefore sell well only if it meets the customer’s needs. Customers exercise their
‘choice’ by supporting the marketer’s offering that they believe responds best to
those needs. How this knowledge of customers is applied is highly relevant and
valuable to a business, and we discuss this application in the next section.

Roberts-Lombard,10M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 10 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour

1.4 The role of customer behaviour in marketing strategy

Consumer behaviour has an important role to play in the marketing strategy of
all companies. Companies are constantly competing with competitors for the
patronage of customers, or fighting to convince customers that their new product
meets their needs. Companies today are increasingly aware of the fact that survival
lies in the understanding of the consumer – what their buying motives are, what
the best value is to offer them.
In this way, each organisation attempts to differentiate itself from its competitors
based on some benefit that its products or operations offer to its customers. In order
for this benefit to be meaningful, the customer must perceive it to be meaningful.
This involves the concept of customer value. In all buying decisions, the customer
asks the same question: Is what I am getting worth what I have to give up to get
it? What the customer gets is weighed up against the cost to acquire the benefit.
Therefore the value the customer places on a product or service becomes the
customer value for that offering.8
Benefits – Cost = Customer Value
Every customer is unique in their own way and has a different set of needs and
resources, so it stands to reason that no two customers will place the same customer
value on the same product or service. Some consumers are willing to pay a high
price for a quality product or a high level of service, but others will make the
decision that the same benefits are not worth the price.9
When looking at the role of consumer behaviour in marketing strategy, it must
be remembered that companies use marketing to promote their products and
consumer behaviour is the way consumers act and respond to these actions of
companies. The marketing strategy essentially begins by analysing the market that
the organisation has identified as having potential. Based on this analysis, the
organisation has to look at its own resources and capabilities, its own strong and
weak points as well as that of competitors, what they can and cannot control in
the environment, and what their forecast of the selected market looks like. Based
Copyright © 2012. Juta & Company, Limited. All rights reserved.

on this analysis, the organisation identifies homogeneous groups or segments on

which to focus. This is called market segmentation. The segments are defined in
terms of demographic, psychographic and geographic aspects, and one or more of
these segments are selected as the target market for the organisation based on its
own analysis of capabilities relative to those of the competition.
The next step is to formulate the actual marketing strategy aimed at penetrating
the selected segment(s). The main aim of such a strategy is to provide customers
with more value than competitors can and, in the process, make a profit for the
company. A company formulates its marketing strategy in terms of the marketing
mix, namely the product, price, promotion and place (distribution).
This combination together forms the total product and aims to elicit a specific
reaction from the market segment. The way it is offered makes the customers form
an image of the product. This image is manifested in the resultant sales of the
product, which is the customers’ way of expressing their satisfaction (high sales) or

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 11
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 11 2022/03/29 11:19 AM

Consumer Behaviour

dissatisfaction (low sales) with the product that the company is offering. Marketers
aim to establish not only a sale, but happy and satisfied customers. Happy customers
will result in long-term profit, as they will keep on coming back and buying more.
It should be clear that, whatever the reactions of customers, the company needs to
analyse these reactions and take the necessary corrective steps to ensure that its
product begins to sell successfully. Failure to do this will result in the collapse of
the company. Customers change their minds and behaviour all the time; companies
should identify these changes and adapt their marketing strategy to accommodate
those that the company regards as significant.

1.5 The nature of customer behaviour10

Figure 1.4 presents a model of customer behaviour which we will use as the basis
for the ensuing discussion. This model is conceptual, and it reflects our beliefs
about the general nature of customer behaviour. Each individual has an opinion
or view of him- or herself. This is called the individual’s self-concept. Whilst
staying true to the self-concept, individuals have to stay in line with their means
or resources. This is called the individual’s lifestyle. The self-concept and lifestyle
of an individual are influenced by a variety of internal and external variables, for
example the individual’s personality, experiences, values, culture, family, age and
religion. The self-concept and lifestyle of an individual lead them to certain needs.
In return, these needs lead individuals to buy a specific product or service to satisfy
these needs. The decision to buy or not to buy (in other words, buying behaviour)
is influenced by an individual’s past experience, self-concept and lifestyle.
We explore each of the factors shown in Figure 1.1 in detail in the chapters that
follow. In the rest of this section, we give a brief overview of the concepts in the
model to help you to form an overall picture of customer behaviour. These concepts,
namely external influences, internal influences, market characteristics and personal
characteristics, exert a force on an individual’s self-concept and lifestyle.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard,12M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 12 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour

Market
External influences
characteristics
Family
Climate
Reference groups
Economy
Social class
Government
Culture
Technology
Subculture
Marketing activities

Decision making
Individual
Customers
Organisational
Family

Internal influences
Motivation
Perception Personal
Learning characteristics
Attitudes Race
Personality Gender
Lifestyle Age
Self-concept

Figure 1.4 An overall model of customer behaviour

1.5.1 External influences

These influences are also referred to as the social and group factors influencing
customer behaviour. As you can see in Figure 1.4, they include:
●● culture and subculture (which we discuss in Chapter 4)
●● reference groups and social class (see Chapter 5)
●● family (see Chapter 13)
●● marketing activities, namely market segmentation (see Chapter 11), consumer
loyalty (see Chapter 15), relationship-based buying (see Chapter 16) and
e-commerce (see Chapter 17).

The way we group the factors that influence customers is mostly subjective. For
example, learning is regarded as an internal influence, despite the fact that much
learning involves interaction with other individuals.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 13
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 13 2022/03/29 11:19 AM

Consumer Behaviour

In other words, learning could also be considered as a group factor. In Figure 1.4, the
two-directional arrows indicate that each set of influences interacts with the others.

1.5.2 Internal influences

Internal influences are also known as the psychological forces that influence cus
tomer behaviour. They include:
●● perception and learning (see Chapter 7)
●● motivation (see Chapter 8)
●● attitudes (see Chapter 9)
●● personality (see Chapter 10).

1.5.3 Market characteristics

Customers live in a physical place. Products and services are produced, transported,
stored and used in a physical space. Moreover, products affect the physical qualities
of the place where they are produced and used. The physical characteristics of
the marketplace (such as climate) and other market characteristics (such as the
economy, government and technology – see Chapter 3) all influence customer
behaviour. For example, the climate of a country will influence the type of products
that consumers buy.

1.5.4 Personal characteristics

These are the characteristics that customers possess as individuals (see Chapter 6).
They include the biological and physiological features that a person is born with,
such as gender and race, and those that develop as the person grows, such as age.

1.5.5 The customers (with their self-concept and lifestyle)

The interaction of all the above-mentioned variables leads to the formation of

the individual’s self-concept, which, in turn, culminates in the person’s lifestyle.
The self-concept is the totality of an individual’s thoughts and feelings about
themselves (see Chapter 10). Lifestyle, quite simply, is how each of us lives. It
includes the products we buy, how we use them, what we think of them and how
we feel about them. It is the manifestation of our self-concept – the total image we
have of ourselves as a result of the culture in which we live, and the situations and
experiences that make up our daily existence.
The model of customer behaviour in Figure 1.4 shows that customers’ self-concepts
and lifestyles lead to certain wants (or desires) and needs that interface and influence
customer decision making; that is, the decision to buy or not to buy.

Most customer decisions involve little effort or thought on the part of the customer.

Roberts-Lombard,14M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 14 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour

Some decisions made by customers – maybe the majority of them – are

low-involvement decisions, as the decision requires no or limited effort from the
consumer. Others are more emotional or involve high levels of feeling in decision
making and require a higher level of involvement. Irrespective of the level of
involvement, some decision making has larger ramifications for the consumer than
others, and this is also affected by the lifestyle and self-concept of the individual.

1.5.6 The customer decision-making process

Consumers are continuously required to make decisions that concern their daily
lives, whether personal or business-related. They have to choose not only between
brands, stores and product categories, but also the level of service needed and
which needs to satisfy. Every decision a customer makes is an option from two
or more obtainable choices. We distinguish between individual decision making
(see Chapter 12), organisational buying (see Chapter 14) and household decision
making (see Chapter 13).
As Figure 1.4 indicates, a customer’s needs and/or desires may trigger different
levels of the decision-making process. As explained above, most purchases require
limited or virtually no effort from customers, and emotions and feelings often have
as much or more influence on the final decision as do facts and product features.
In any event, the final decision will have a significant effect on all concerned,
including the customer, the organisation and society.

1.6 Summary
Making the correct marketing decisions requires a thorough understanding of
customer behaviour. A good knowledge of customer behaviour provides marketers
with a sound basis from which to make decisions regarding forthcoming marketing
strategies. Customers fulfil a number of roles, namely user, buyer or payer, and
the marketer needs to be aware of these roles and who plays what role in any
Copyright © 2012. Juta & Company, Limited. All rights reserved.

given situation. By understanding what makes the customer do certain things and
by realising that each customer is different, the marketer can develop marketing
strategies by which the company can maximise its potential and realise its objective
of maximising profit.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 15
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 15 2022/03/29 11:19 AM

Consumer Behaviour

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Define consumer behaviour in your own words.
2. Discuss the marketing concept and its effect on a business.
3. Name and discuss the group factors that influence the consumer decision-
making process. Discuss these factors by means of examples.
4. There are three roles which the customer can fulfil in any transaction in the
marketplace. Name and discuss these three roles by means of examples.

Multiple-choice questions
1. A customer’s buying decision is influenced by individual and group factors.
The study of these factors and the process of satisfying needs is called ...
A. the study of the buying decision process
B. the study of consumer behaviour
C. the study of purchase decisions
D. the study of problem recognition.
2. Lifestyle refers to the way that individuals and families live. Where does
lifestyle fit into the consumer behaviour model?
A. Individual factors
B. Group factors
C. Purchasing decision
D. Brand choice.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

3. Which one of the following is not part of the three roles which the customer can
fulfil in any transaction in the marketplace?
A. Selecting the product
B. Paying for the product
C. Swopping the product
D. Using the product.
4. Which one of the following forms part of the individual factors that have an
influence on consumer decision making?
A. Culture
B. Family
C. Social class
D. Learning.

Roberts-Lombard,16M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 16 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour

5. Which of the following concepts states that the marketing concept overlooks
possible conflicts between short-term customer wants and long-term
customer welfare?
A. The marketing concept
B. Societal marketing
C. Customer focus
D. Marketing strategy.
6. Culture is the totality of socially transmitted behaviour patterns, creative arts,
beliefs, institutions and all other products of human work and thought. Which
of the following statements regarding culture is incorrect?
A. Culture includes all the activities that characterise the behaviour of
particular communities.
B. Culture, as a complex whole, is a system of dependent components.
C. Culture influences motives, brand comprehension and attitudes.
D. Elements of culture include values, ideas, personality types and religion.
7. Which statement best describes the concept of beliefs?
A. Beliefs are overt modes of behaviour that constitute culturally approved or
acceptable ways of behaving in specific situations.
B. Beliefs consist of a great number of thoughts or expressed statements that
reflect a person’s particular knowledge and assessment of something.
C. Customs are beliefs.
D. Beliefs are when adults and older siblings teach a young family member
‘how to behave’.
8. Which of the following statements regarding learning is incorrect?
A. Perception, needs, motives and attitudes are directly or indirectly deter
mined and influenced by the ability of the customer to learn.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

B. Family, culture, social class and reference groups influence an individual’s

learning experiences.
C. The learning experience determines which products customers will buy; it
does not influence the customer’s preferences for a particular product.
D. Learning is the process by which individuals acquire the buying and
consumption knowledge they apply to future related behaviour.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 17
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:05.

Consumer Behaviour 5E.indb 17 2022/03/29 11:19 AM

Consumer Behaviour 5E.indb 18 2022/03/29 11:19 AM

Chapter
CREATING MARKET VALUE
2 FOR CONSUMERS
Learning outcomes
After studying this chapter, you should be able to:
■■ Understand what is meant by the term value from a customer’s view
■■ Explain what market value consists of
■■ Clarify and explain value bundling in a marketing context
■■ Demonstrate how value is added to the product or service bought by the consumer
■■ Develop a way to measure customer value.

2.1 Introduction
Value is a term used very often today. Whenever you speak to somebody in a store,
the term value is bandied around a lot with statements like ‘we offer the best value’,
‘value is the main difference between us and the competitors’, and ‘you need to
compare the value our product offers compared to other products’. This chapter
focuses on clarifying what is meant by value and what value means in the eye of
the consumer. Linked to this is the concept of value bundling of products and
services, as well as the way in which the marketer can use it. Value is examined
from the view of the customer as well as the business and how it can be measured.

2.2 Defining value

In simplistic terms, value can be explained as the benefit that the

customer gets from the use of a product or service in relation to the
cost of that product or service.
Value = The received benefit − The cost to obtain the product or service
It is the responsibility of the organisation to ensure that they create value
for customers in their offerings to them. An organisation can only deliver
value to customers if its total market offering is focused on this value offering.
This total offering of an organisation is not limited to only the products and services
but includes the reputation of the organisation, the values of the organisation,
its treatment of the environment and its employees, etc. compared to that of
its competitors. In order to offer value to customers, organisations must have a
customer-focused vision.1

Consumer Behaviour 5E.indb 19 2022/03/29 11:19 AM

Consumer Behaviour

The perceived value of customers regarding a product or service refers to the

expected or perceived benefits the customer expects to obtain in relation to the
perceived costs of securing these benefits. It can be said that value is therefore
subjective as the value of each customer will differ based on their expectations.
Companies therefore need to look at their total market offering if they want to
maximise their value delivery to customers. This total offering includes all aspects
of the company and how it relates to that offered by competitors.
From a marketer’s perspective, a customer being willing to pay R450 for a Wagyu
steak in a restaurant refers to that customer’s perceived value of eating that steak.
The fact that the customer is willing to pay that for a steak is influenced by the
total market offering from the restaurant – its appearance, reputation, the way staff
is trained, the way the steak is presented and so forth. We can refer to this as the
market value that the customer puts on the product. Obviously, if the customer
goes to a takeaway establishment, the same value will not be applied to a steak. It is
all about how the customer perceives the offering.
Initially, the main focus of a company was to make a profit but in the world
businesses operate in today, a company wanting to drive value needs to ensure all
its functions are aligned with the customers’ needs. Value is closely tied in with
customers’ cultural values, which impacts on their buying behaviour.

2.3 The market value of a product or service

The market value of a product or service can be defined as that price point that
is acceptable to both the buyer and seller. It stands to reason that each customer
will have a different perception of what a product or service is worth – that is,
what they will pay for it. In the same way, the business will also have a perception
as to what it regards a product or service is worth. That is where market research
comes in – to establish the ideal price point which balances the profit margin with
sales. A distinction is also made between what is called a universal value, the value
Copyright © 2012. Juta & Company, Limited. All rights reserved.

that meets the basic needs of the customer (these are the minimum a customer
expects from the product or service like to quench a thirst or keep one warm), and
a personal value which is more complex and varies between customers and can,
for example, link to higher-order wants such as social standing, ego and so forth.
Personal values can be categorised into two groups, namely group-specific or
individual-specific. Group-specific values are those values a group (target market) is
associated with and which the consumer relates to, while individual-specific values
are those the consumer can relate to more specifically.
The entire concept of market value is depicted in Figure 2.1.

Roberts-Lombard,20M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 20 2022/03/29 11:19 AM

Chapter 2: Creating market value for consumers

Universal values
Aim: to satisfy basic needs

Market value
Personal values
Aim: to satisfy wants

Group-specific: Individual-specific:
aimed at a group of aimed at a single
people person

Figure 2.1 Components of market value

There are different roles a customer can play when creating market value, namely
that of the user of the product or service, the payer for the product or service and
the buyer of the product or service. When buying food for a household, the buyer
may be the mother, the payer may be the father and the user the whole family –
including the dog!
The above discussion is summarised in the matrix of values and customer roles
in Table 2.1.

Table 2.1 The matrix of values and customer roles

User Payer Buyer

Universal values Performance value Price value Service value

Personal values: Social value Credit value Convenience value

Group-specific
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Personal values: Emotional value Financing value Personalisation value

Individual-specific

Let us look at these aspects in some more detail.

2.3.1 Market values sought by users

Universal value – performance
The universal value sought by the user is what the product or service
can do for them.
Consumers purchase a product based on what they expect it can do for them.
A person buying a jacket may have warmth and protection against the elements
in mind. Similarly, one buys a car to have a means of transportation, and the

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 21
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 21 2022/03/29 11:19 AM

Consumer Behaviour

expectation is that this product will take one from point A to point B safely, with
no breakdowns. This is one of the crucial values or functions that motor vehicle
manufacturers must provide in order for the product to have universal value for
all consumers.

Personal values – social and emotional

It is a known fact that the personal values of consumers are a major factor when
considering a product or service. This has much to do with the social and emotional
values and needs of the customer and is, in many instances, the final catalyst in the
acquisition process. For example, a consumer will buy a product to enhance their
social values of belonging to a group or to identify with a group. Take a golfer, for
example, who buys a set of clubs endorsed by Tiger Woods. He or she specifically
identifies with the professional golfer and in general with those who play golf.

Social values will move the consumer to buy a product or service that
is in line with the norms and standards of a peer group or friends.

EXAMPLE

In a similar vein, consumers buy products and services aimed at satisfying their
emotions – they are concerned with the product’s emotional value. For example,
many young entrepreneurs today buy Tag Huer watches, designer clothes and the
latest BMW to shout out to the world that they are successful. These products have
emotional value to them.
This type of emotional value is extended further to include an experience for which
they are prepared to pay. Think about a dining experience where a group of friends
is suspended in the air around a table for dinner. The dining experience is surreal
in many respects and normally includes a panoramic view of the city. In a similar
way, consumers go on a shark cage diving excursion or swimming with dolphins to
Copyright © 2012. Juta & Company, Limited. All rights reserved.

obtain an emotional experience. These types of experiences create emotional value

through experiential consumption. This is turn leads to these consumers sharing their
experiences with others via various social media platforms which will enhance the
appeal and increase experiential consumption.

2.3.2 Market values sought by payers

Universal value – price
As indicated in Figure 2.1, the universal value for the payer of a product is the price
they pay – or the price value of the product that the consumer is obtaining. What
this means is that the price the payer is paying for the product or service is equated
in their mind to the value they expect to derive from the product. The question
is how reasonable or affordable the price is in the context of what the consumer is
obtaining. Consumers today are more informed and tech-savvy and are much more
price-conscious and looking for a good universal value proposition. In order to

Roberts-Lombard,22M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 22 2022/03/29 11:19 AM

Chapter 2: Creating market value for consumers

meet this demand of the consumer of today, organisations must strive to maximise
the perceived price value of their offerings. This can be achieved by increasing the
quality of their products but keeping prices the same. This is a strategy Ackermans
have followed and it has resulted in them changing the company’s image to a price
value supplier of clothing.

Personal values – credit and financing

In today’s consumer environment, consumers have a myriad of options when it
comes to payment for their goods and services. They can buy their products or
services cash, or they can secure payment options such as 12 months, 36 months or
even layby. In this way, consumers can delay making full payment for a product for
a certain period while they have the use of the product in the meantime. Obtaining
the necessary financing by using credit is another, more personalised way that the
customer can acquire value. Credit value is created when the customer pays by
credit card or any other financing option such as a six-month layby option or an
interest-free repayment period of 12 months.
In the case of a layby, credit value is created when the customer selects the products
he or she wants, leaves them at the retailer and pays them off over the next three
to six months. In this instance, the seller (the retailer) accepts the responsibility
to keep the products and await payment for the agreed-upon period – which is
interest-free. This kind of credit value was created for a certain group of customers,
such as those in low-income groups who do not have full-time jobs or who do not
qualify for a credit card – although the use of this means of buying is open to all. It
must be noted that buying on layby is an inexpensive means of financing compared
to credit card financing, which is usually expensive with high interest rates.
Financing value is created when the payer is offered terms of payment to
facilitate buying the product. A typical example is the options offered by House
& Home when selling furniture to customers. A hire-purchase (HP) agreement
facilitates a payment system of, say, 24 months. This would allow the customer
Copyright © 2012. Juta & Company, Limited. All rights reserved.

to take ownership of the product in March 2022 and only pay the first instalment
on 1 July 2022. The full payment (which includes finance charges) takes place in
equal instalments over the next 24 months.

2.3.3 Market values sought by buyers

Universal value – service
As indicated in Figure 2.1, buyers also look for value when making purchases. For
the buyer of a product or service, the universal value that they seek is the value of
service. Since the world market crash of 2008 there has been a renewed emphasis on
service in order to create loyalty and differentiate businesses from their competitors.
The service value is measured according to the following three elements:

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 23
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 23 2022/03/29 11:19 AM

Consumer Behaviour

1. The pre-purchase advice and assistance of the salespeople. It is a generally

known fact that the more expensive a product, the more the customer
seeks assurances of good and correct advice and service. In these times of
loadshedding, for example, more and more people are taking their houses and
businesses off the grid – but very few are knowledgeable of the technicalities
involved. When selecting a supplier of solar systems, the consumer would
measure the supplier in terms of how knowledgeable the salesperson was
and what assistance they offered the buyer in alleviating their concerns and
obtaining finance to help facilitate the transaction.
2. The post-purchase advice and assistance of the salespeople or other persons
involved, for example the technical team responsible for the solar system
installation. These systems need to be installed and, if necessary, repaired or
expanded on. In the case of issues, customers also expect prompt and reliable
repairs and maintenance from the supplier.
3. The freedom from risk of a mispurchase. In order to make a sale, and keep
the price point low, the supplier does not offer a complete solution to the
consumer. The recommended solar system is more based on price and looks
affordable to the customer. Once installed and paid for, the customer realises
the system is inadequate for their needs and that the system cannot be
upgraded or the upgrade will be costly. Obviously, this type of scenario adds
to the total cost of purchasing a solar system.
As is clear in the discussion, customers seek freedom from or, at least, a
reduction of risks. Value is added when they feel comfortable that they can
easily expand on the product, or return the product and obtain a refund or
an exchange. The Consumer Protection Act, which came into effect in 2011,
and the National Consumer Commission (NCC) also help to safeguard South
African consumers against these types of problems and risks.

Personal values – convenience and personalisation

To buy a product, specifically if it is a bit more expensive, requires some effort from
the consumer. This effort is measured in the time the consumer has to invest in
finding the product and getting to the point of making a selection, as well as the
money that has to be paid for the product. The effort put into the purchase and the
price paid for the item is referred to as the convenience value. Convenience value is
created for the consumer through actions by the retailer such as providing a free
delivery service, validating the customer’s parking ticket so that they do not have
to pay for parking, or offering a layby option for the product.
Personalisation value plays an important role in the marketing actions of
organisations. For example, some motor manufacturers allow customers to select
their own spec for a vehicle from the internet and then track it in its manufacturing
process. By being allowed to perform this task, the consumer receives customi
sation value and can be involved with the fulfilment of their purchase on a
continuous basis.

Roberts-Lombard,24M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 24 2022/03/29 11:19 AM

Chapter 2: Creating market value for consumers

By placing ATM points in many convenient locations, banks have made it more
convenient for customers to draw money and at all hours. It has however also
led to the personal touch being lost. Personalisation refers to the way in which a
transaction is handled. Retailers have mastered the art of manipulating the store
atmosphere in order to make it a pleasant environment for shoppers, which is
further enhanced by interaction with knowledgeable salespeople (before and after
the sale), which cumulatively leads to positive personalisation in the transaction,
which adds value for the customer.
Many up-market restaurant owners make a point of building interpersonal relations
with their regular customers. They learn to know their preferences, the wine they
prefer, what they like and dislike in terms of service and so forth. By ensuring the
waiter serving the client is briefed beforehand on the customers’ preferences and by
making suggestions of wine (new additions to the list) and regularly enquiring if all is
still fine, the owner provides interpersonalisation and builds long-term relationships.

2.4 The value bundling of products and services

It has become somewhat of a standard marketing tool for organisations to group
products or services together and to offer them as a bundle to customers. We
now look at the three broad categories2 of non-durable goods, durable goods, and
services, using the same matrix as depicted in Table 2.1.

2.4.1 Non-durable goods

Non-durable goods or products such as groceries (for example, milk or bread) offer
a bundle of up to all six of the values we have discussed before. This is represented
in Table 2.2.

Table 2.2 Matrix of values and customer roles for non-durable products such as groceries
Copyright © 2012. Juta & Company, Limited. All rights reserved.

User Payer Buyer

Universal values Performance value Price value = Service value =

= energy and especially for families applicable if the
nutrition of the with a number of customer, for
product dependants to feed instance, eats out at
a restaurant

Personal values: Social value = social Credit value = Convenience value

Group-specific class association of relevant because a = especially home
food, for example number of buyers delivery of fast-
maize meal for poor pay by credit card food products,
people, caviar for for example pizza
rich people deliveries
➥

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 25
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 25 2022/03/29 11:19 AM

Consumer Behaviour

User Payer Buyer

Personal values: Emotional value Financing value = Personalisation

Individual-specific = childhood not as relevant as value = applicable
associations, for for durable products when eating out;
example Black Cat since groceries are the interpersonal
peanut butter and usually paid for by behaviour of the
syrup sandwiches cash or credit card waiter and the
person handling the
reservation

2.4.2 Durable goods

All six of the values discussed above play a role in durable products. Table 2.3
summarises the values for a durable product such as a Harley Davidson motorbike.

Table 2.3 Matrix of values and consumer roles for a durable product such as a Harley
Davidson motorbike

User Payer Buyer

Universal values Performance Price value = is the Service value =

value = safety and bike worth its price obtaining excellent,
reliability of the bike, and is the price expert service from
also repairs and affordable? the salesperson
maintenance service

Personal values: Social value = making Credit value = how Convenience value
Group-specific a social statement, available is credit = created by time
evoked by the Harley to buy the bike? and place utility,
Davidson brand and for example having
Copyright © 2012. Juta & Company, Limited. All rights reserved.

corresponding image, the salesperson

which was created by bring the bike
the film Easy Rider, to the potential
among others buyer’s home for a
demonstration

Personal values: Emotional value = Financing value = Personalisation

Individual-specific deep attachment to hire-purchase was value = generated by
the bike, such as the traditional way creating convenience
giving it a name or to create value, values, for example
referring to it as ‘the but nowadays this the salesperson
Hog’ has been largely giving the customer
replaced by the a personalised
leasing agreement keyring when he or
she buys the bike

Roberts-Lombard,26M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 26 2022/03/29 11:19 AM

Chapter 2: Creating market value for consumers

2.4.3 Services
The six values are also applicable to services used by the consumer, such as using
an airline for travel. See Table 2.4 in this regard.

Table 2.4 Matrix of values and consumer roles for a service such as using an airline

User Payer Buyer

Universal values Performance value Price value = the Service value = ease
= safety record and cost of the air ticket of making an online
ontime arrival of reservation
airline

Personal values: Social value = the Credit value = Convenience value

Group-specific class that the relevant because a = the consumer can
consumer flies, for number of buyers buy the ticket and
example economy pay by credit card pay for it online
class or business class

Personal values: Emotional value = Financing value = Personalisation

Individual-specific fear of flying for some relevant as it may value = occurs when
passengers, or a be a large amount the airline caters
sense of anticipation to pay; another for the consumer’s
or excitement for consideration is specific dietary
others whether travel or requirements, for
medical insurance is example low-sodium
part of the package or vegetarian meals

2.5 The organisation’s perspective on measuring value

As was clear in the discussion above, value has different meanings to customers.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

The same is also true of the organisation, where management’s perspective of

value is hopefully in line with what the customer perceives as value. Organisations
typically do market research in order to understand customers and their needs better,
and to ensure that their market offerings are in line with what the customer wants.
Based on their research, they make offerings to the customer, hoping that they are
creating value for the customer. It is no longer only about establishing the level of
customer satisfaction with the organisation’s products and services, as customer
satisfaction measurements were used to focus on measuring the satisfaction of the
customers that were using the organisation’s products or services only.
More recently, the focus has shifted to models measuring customer value. This is
called consumer value management (CVM). CVM is a new direction that concentrates
on the value to customer (V2C) across the full customer journey. By implication,
managing value means creating, communicating, delivering, documenting and

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 27
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 27 2022/03/29 11:19 AM

Consumer Behaviour

capturing part of that value in price. Value management is a counterbalance to the

customer lifetime value (LTV). As stated, V2C is the value that is delivered to
the customer, while LTV is the value being received in return.3
With the CVM approach, the organisation must determine:
●● the key buying factors (KBF) that the customer values when choosing between
competing products and services in the marketplace
●● how customers rate the performance of the organisation’s products and
services against that of the competitors.

Through the identification of the best competitor by KBF, the organisation can then
establish the unique value proposition (UVP) of each competitor. Organisations are
usually surprised to observe the differences between their own value proposition
and that of their competitor.

To determine precisely if value was added for the customer, a value

quantitative process called a value metric process (VMP) is used.
The VMP consists of determining the different values that customers expect from
a product or service. It entails a four-step process, namely:
1. creating a benchmark
2. developing a strategy to deliver value to the customer
3. measuring whether the customer’s expectations were not met, met or
exceeded
4. investigating deviations and adapting the strategy accordingly.

There is often a major difference between the ways in which the organisation and
the consumer see the value proposition. The process is schematically depicted
in Figure 2.2.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Creating a benchmark or establishing the value that

Step 1
a customer expects from a product or service

Developing a strategy and action plans to deliver

Step 2
value to the customer

Measuring whether the customer’s expectations

Step 3
were not met, met or exceeded

Investigating deviations and adapting strategy

Step 4
accordingly

Figure 2.2 Steps in the value metric process (VMP)

Roberts-Lombard,28M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 28 2022/03/29 11:19 AM

Chapter 2: Creating market value for consumers

2.5.1 Determining the benchmark of expected value

Step 1, as depicted in Figure 2.2, is to establish a point of departure regarding expected
customer values. This entails the development of a CSM. (A customer satisfaction
index, or CSI, is one example of a CSM.) This measurement is easy to do and a basic
or standard questionnaire can be used to that effect. Typical questions that can be
asked from customers to gauge the expectations of value are, for example, ‘are you
satisfied with the standard of work on the installation of your solar system?’; or ‘are
you satisfied with the service of the solar provider during the whole process?’. These
types of questions can assist the organisation in establishing what the customer
expected from the service they paid for. This is usually quantified into a CSI score.
This is a typical example of the measurement of CSM.
Having measured the CSI score, the organisation needs to develop the CVM
component. CVM, as stated previously, focuses more broadly on the value component.4
The (CVM) value component aims to measure the level of customer satisfaction in
relation to the price paid for the specific product or service. This measurement is
called the customer’s perceived value. As stated before, CVM also measures the value
perceptions of the competitors’ customers. This provides the whole customer value
picture (including own and competitors’ customers).
By using the CVM approach, the organisation can now ascertain the following:
●● What KBFs does the customer value when choosing between competing
products and services in the marketplace? Such factors could include various
aspects such as the reaction time to initial enquiries, time taken to attend to
aftersales queries, the inherent quality of the product, and warranties.
●● How does the organisation measure up against its competitors in the identified
KBF areas? Questions that can be answered is if the organisation, for instance,
attended to aftersales queries in a consistent manner and responded quicker
than opposing competitors.
●● What is the relative importance of these KBFs in the effort to deliver customer
value? If the customer, for instance, rates attending to aftersales queries as a
Copyright © 2012. Juta & Company, Limited. All rights reserved.

lesser factor in value creation, then the organisation could deduce that less
attention needs to be given to this factor. It also may then allow the dealer
to provide more time and attention to the pre-delivery service that would
obviate aftersales queries in any case.

2.5.2 Formulating a strategy for delivering value to the consumer

Step 2, as depicted in Figure 2.2, indicates that the organisation must now formulate
a strategy that delivers value to the consumer. The point of departure is to convince
the organisation’s staff – including top management – of the advantages of the CVM.
Once the staff has bought into the CVM concept, a strategy must be developed
and action plans must be implemented to enable the organisation to deliver the
planned value to the customer. The action plan could include exceeding customer
expectations on certain KBFs, such as the dealership having the new car available
a day before the customer expects it, or delivering the serviced car to the owner’s
home instead of the customer collecting it from the dealership.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 29
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 29 2022/03/29 11:19 AM

Consumer Behaviour

2.5.3 Measuring value delivery

Step 3, as indicated in Figure 2.2, refers to the measurement of the value that
was generated in Step 2. Various measurement tools can be used, such as the
CSI, discussed previously. There is also the balanced scorecard (BSC) approach,
which evaluates the performance of the organisation by not only concentrating
on financial issues but also measuring non-financial aspects such as consumer
satisfaction, employee satisfaction and innovation.5 Studies have found that the
use of the BSC can measure the long-term value creation process of the entire
organisation. The BSC can also be used to measure value creation to the customer.
This can be done when the organisation lines up its core customer value outcome
measures – which could include customer satisfaction, customer loyalty, customer
retention, customer acquisition and customer profitability – with the consumer
expectations as reflected in the KBFs. These core customer value measures are
depicted in Figure 2.3.

Market share

Consumer Consumer Consumer

acquisition profitablity retention

Consumer
satisfaction
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Figure 2.3 Lining up the core customer outcome measures

The core customer outcome measures, as depicted in Figure 2.3, can be explained
as follows:
●● The market share of the organisation is a basic measurement tool that reflects
the amount of the market that the organisation has in a certain marketplace.
This market share fraction may be in the form of money spent on personal
selling, units sold, etc.
●● The customer acquisition rate of the organisation refers to the rate at
which the organisation obtains new customers. There is usually a heavy
investment in attracting new customers through, for example, advertising or
personal selling.

Roberts-Lombard,30M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 30 2022/03/29 11:19 AM

Chapter 2: Creating market value for consumers

●● The customer retention rate measures how many of the existing customers
the organisation retains. It is a fact of business life that an organisation will
lose customers, but it is also a fact that most organisations do not measure
their customer attrition rate. One of the best ways to prevent attrition is to
communicate with the existing customer base on a regular basis.
●● The customer satisfaction rate measures the satisfaction level of customers
regarding the organisation’s range of products or services. There is usually
a causal link between higher levels of customer satisfaction and repeat sales.
●● The consumer profitability measurement is important to the organisation,
because it measures which activities aimed at increasing the value to the
customer actually works. Customer profitability refers to the net profit
attributed to a customer after deducting the expenses to retain the customer
or to gain a new customer.

2.5.4 Investigating deviations and adapting the strategy

During the last step, the organisation must establish the impact of the established
variations as a control measure. Sometimes these variations are so small that it is not
financially viable to investigate or to correct them. In other instances, variations
could be so sizeable that not investigating them and not adapting the strategy and
action plans could spell the loss of the customer base and eventually the demise of
the organisation.

2.6 Marketing implications of the concept of value

Value has been described as the only way in which an organisation can differentiate
itself consistently from its competitors.6 The only way an organisation can deliver
superior value is if it becomes market-driven – meaning it must ensure it under
stands its customers and their needs and is able to adapt timeously to any changes
in the environment that may influence the customers’ needs. In a nutshell, it is clear
Copyright © 2012. Juta & Company, Limited. All rights reserved.

that customer value is generated by the difference between the benefits obtained
from the product or service and the resources that customers paid for obtaining
this product or service. If the customer obtains (in their mind) more benefits for
what is paid for the product or service, the greater perceived value the customer will
get – and most likely a higher level of satisfaction.
The benefit to the organisation where the customer perceives to obtain greater
value lies in the higher possibility of retaining the customer – the ultimate prize
for the organisation! Customer retention is a process and not a once-off. The more
the customer experiences the organisation and its products in a positive way during
their transactions, the more it is likely that these actions will culminate into a
long-term customer relationship – one that will hopefully stay mutually beneficial.
Why organisations want to establish long-term relations and retain customers is a
cost-driven exercise – it is more costly to recruit new customers than to retain an
existing customer.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 31
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 31 2022/03/29 11:19 AM

Consumer Behaviour

The following are some of the most obvious advantages of keeping customers for a
longer period:
●● They are more likely to try new products and services of a company they are
familiar with.
●● They will most likely keep on buying from the organisation over a period
of time.
●● They are more open to up-selling and cross-selling from the company.
●● They tend to be less susceptible to price fluctuations and are not easily lured
astray by special promotions from competitors.
●● It costs less to sell to existing customers who are already familiar with the
company than it costs to reach new customers and to convince them to buy
the company’s products.
●● Customers who are happy and who have a relationship with the company
are more likely to recommend the company and its product (positive word
of mouth).
●● Products that have reached their mature stage in the life cycle generate a
positive income from loyal customers resulting in higher profits as retention
costs are lower.
●● Dealing with long-established customers results in happier employees. This
could create a ‘halo’ effect for the business and help the business to save
money through employees providing better service to an existing customer
base.

2.7 Summary
In this chapter, we discussed the concept of value creation for the consumer.
We described value in both a broad and narrow context. For the purpose of this
book, we used the narrower definition of market value. Furthermore, the market
value concept was split into universal and personal values, with the personal
Copyright © 2012. Juta & Company, Limited. All rights reserved.

values divided into group-specific and individual-specific values. We used a matrix

depicting market values and consumer roles to illustrate the specific values that are
important to consumers.
We explored how value bundling occurs for certain products and services, and we
examined the steps in the measurement of value, in particular referring to CVM.
We also indicated the use of BSC in value measurement. Lastly, we considered the
marketing implications of the value concept, stressing the importance of organisations
being market-driven, and we discussed the links with value-based marketing.

Roberts-Lombard,32M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 32 2022/03/29 11:19 AM

Chapter 2: Creating market value for consumers

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Explain what is meant by customer value and explain the difference between
universal and personal value perspectives.
2. Identify and differentiate between the different components of market value.
3. Discuss the value bundling that occurs when a consumer wants to buy a new
mobile phone.
4. Explain what value measurement is.
5. Explain why an organisation need to take cognisance of the value concept, and
how they can do this.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 33
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:37.

Consumer Behaviour 5E.indb 33 2022/03/29 11:19 AM

Consumer Behaviour 5E.indb 34 2022/03/29 11:19 AM

Chapter

3 MARKET CHARACTERISTICS
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain the composition of the South African population in terms of age, gender,
neighbourhood, education and literacy, the labour market, and unemployment and
employment levels in the formal and informal sectors
■■ Use the information about this population in marketing decision making
■■ Describe the composition of South African households in terms of housing, access to
electricity, water sources, health care, the possession of a telephone and their monthly
household income
■■ Use the information about these households in marketing decision making
■■ Explain the influence of economic, governmental, physical, social and technological
factors on customer behaviour
■■ Use information about these market factors that influence customer behaviour in
marketing decision making
■■ Describe the various market-related trends that have evolved over the past few years
and explain how these trends influence customer behaviour.

3.1 Introduction
As customers, we live in a physical place where products are produced, transported,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

stored and used. The physical environment also affects the physical qualities of this
marketplace. Furthermore, numerous market characteristics influence the physical
environment and the way in which customers live. Market characteristics include
a country’s climate, the economy, government and technology – all of which are
dealt with in this chapter. We also address some additional factors that in recent
years have had an immense effect on customer behaviour. Some of these factors
relate to customers’ demographic composition (with particular reference to the
South African customer) as well as to social changes that influence how customers
make purchases.
We examine market characteristics because they affect customer behaviour – they
influence what customers need, how customers behave, who will be involved in
the purchase decision and how that decision will be made. As a result, a clear
understanding of all these aspects enables marketers to blend the marketing
mix instruments into suitable offerings – that is, products and services – thereby
satisfying an individual or a household’s needs and wants.

Consumer Behaviour 5E.indb 35 2022/03/29 11:19 AM

Consumer Behaviour

3.2 Market characteristics and their influence on customer

behaviour
In this section, we highlight how particular market characteristics, such as
demographic, economic, governmental, physical, social and technological factors,
influence customer behaviour in the South African context.

3.2.1 Demographic characteristics of the South African population

Demography is the study of people’s vital statistics, such as their age, race or
ethnicity, and location. These characteristics are strongly related to customer
buying behaviour and are accurate predictors of how the target market will respond
to a specific marketing mix. Since we explore demography in more detail in later
chapters, here we will focus only briefly on the current demographic composition
of the South African customer.1
The characteristics of the South African population are described in the Census
reports published by Statistics SA, which divides the findings into two broad
categories of individuals and households. The findings reported on here are based
on the results Statistics SA obtained from the mid-year estimates of 2020.

Individuals
We now briefly consider the various aspects of the findings on individuals as
provided by Statistics SA:
●● Population: The size of the South African population for mid-2020 was esti
mated at 59.62 million people, of which 51.1% (approximately 30.5 million)
was female. Considering the different racial groups, black Africans were in the
majority, constituting 81% (approximately 48.2 million) of the population,
followed by the coloured population at 5.2 million, the white population at
4.7 million, and the Indian/Asian population at 1.5 million.2
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Life expectancy: Between 2002 and 2021, there was an overall increase in life
expectancy from 55.2 to 62.5 years for males and to 68.5 years for females,
and a decline in infant deaths from 55.5 infant deaths per 1,000 live births
in 2002 to 23.6 infant deaths per 1,000 live births in 2020, and the under-
five mortality rate decreased from 75.3 child deaths per 1,000 live births to
34.1 child deaths per 1,000 live births.3
●● Age distribution of the population: The age distribution resembles the structure
of a developing rather than a developed country, with proportionately more
young people than older people. Also, South Africa is a unique developing
country and one of few that is experiencing an increase in the proportion
aged 60 and over from 1.1% for the period 2002–2003 to 3.0% for the period
2019–2020. As such, approximately 28.6% of the South African population
is younger than 15 years, while approximately 9.1% (5.4 million) is 60 years
and older.4

Roberts-Lombard,36M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 36 2022/03/29 11:19 AM

Chapter 3: Market characteristics

Furthermore, South Africa is experiencing a declining population growth rate

year-on-year among the 15−34 aged group, in conjunction with increasing
growth rates among older people (aged 60+); the population is ageing. Thus,
South Africa is expected to see a continued increase in old-age dependency,
with 892,645 (17.93%) of those aged 60 years and older residing in North-
West and Limpopo.5
●● Physical distribution of the population: A high percentage of the population
is migrating from rural areas to urban areas. The Eastern Cape, Limpopo
and Gauteng provinces are experiencing the largest inflow of people, and
it is estimated that for the period 2016 to 2021, Eastern Cape and Limpopo
provinces will experience a negative net migration of −322,957 people for
the Eastern Cape and 189,112 for Limpopo. While Gauteng and the Western
Cape are experiencing the highest inflow of migrants, with an estimated net
migration of approximately 980,398 people for Gauteng and 290,555 people
for the Western Cape from 2016 to 2021, Mpumalanga and North-West are
also starting to see a positive net migration.6

Influence on consumer behaviour: The diverse and growing population, its age distribution
and the high urbanisation rate as described above directly impact on the type of products and
services customers want and need. This situation influences the type of message marketers
convey, as well as the price they charge for the product or service that the company offers
and where the product or service is made available. Marketers can use these aspects to
segment the local market into smaller subsegments, thereby enabling marketers to better
target the respective segments (a process we discuss further in Chapter 11).

●● Education: Education is a basic right of all South Africans, and the government
is progressively striving to make education available and accessible to
all residents. From early childhood development to general attendance
at educational institutions, it is crucial that a country develops the skills
and knowledge that will benefit all. In recent years, the provision of early
Copyright © 2012. Juta & Company, Limited. All rights reserved.

childhood development (ECD) education has improved; ECD programmes

are offered at crèches, day-care centres, at playgroups, nursery schools and
in pre-primary schools. Out of 5.7 million children in the age group 0−4,
2.1 million (36.8%) were attending pre-school or other ECD facilities.
Access to these facilities was highest in Gauteng (46.8%) and Western Cape
(46.9%), while nearly one-half (50.2%) of children aged 0–4 years stayed at
home with parents or guardians.7
During 2019, there were approximately 14.6 million learners at school, and
generally, 18-year-old learners exited school at Grade 12. However, in South
Africa, approximately two-thirds (64.3%) of learners who were either 18 or
19 years old, were still in school and some learners (24.3%) were still attending
secondary school at age 20. More than one-fifth (21.6%) of learners dropped
out of school before the age of 18 years, claiming a lack of money (‘no money
for fees’) as the main reason with others listing family commitments and
difficulties in getting to school as reasons for not attending school. Although
the number of learners who have achieved Grade 12 has been increasing –

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 37
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 37 2022/03/29 11:19 AM

Consumer Behaviour

the percentage of youth between the ages of 18 and 24 who had completed
secondary education increased from 27.1% to 46.7% between 2002 and 2019
– the number of individuals who attend post-school education has remained
relatively low for youth aged 19 to 22 years of age.8 In 2021, it was reported
that just 6% of the South African population had university degrees. Those
with diplomas stood at 6%, and 3.4% held technical and vocational education
and training (TVET) certificates.9
●● Literacy levels: With regard to the literacy rate, there has been a marked
improvement since 2002. This may be due to improved access to education,
especially among younger people. Although the rate of illiteracy among
older people is declining, presumably due to the increased availability of
adult-based learning programmes and improved literacy levels among new
entrants to the age group, illiteracy among people older than 60 is still
relatively high, with up to approximately 7.7% more females being illiterate
compared to their male counterparts.10,11 During the 2019 General Household
Survey, 96.9% of urban adults indicated that they were literate compared to
89.5% of the individuals residing in rural areas.12
Literacy rate and level of education directly impact on the integrated marketing
communication (IMC) mix that marketers use to promote their products and
services to current and potential customers.

Influence on consumer behaviour: An individual’s level of education is strongly associated

with his or her occupation, which in turn influences the level of income that a person earns.
Therefore, people’s education, along with occupation and income, influences what products
they will purchase and how they think, make decisions and relate to others. For example, in
regions where the literacy rate and level of education are low, roadshows that demonstrate
products and services are more effective than traditional promotional methods that rely on
customers being able to read.13

Labour market: According to the Quarterly Labour Force Survey conducted

●●

by Statistics SA, an estimated 39.4 million people between the ages of

15 and 64 were living in South Africa during the first quarter of 2021 (January
to March). From this group of individuals, 22.2 million made up the labour
force of South Africa, with 14.9 million being employed – a decrease of 8.7%
from the same period in 2020.14
●● Unemployment: The results of the Quarterly Labour Force Survey show that,
in South Africa, 7.2 million people were unemployed during the first quarter
of 2021, an increase of approximately 172,000 people from the same period
during 2020. The unemployment rate among women was 46.8% during this
time period, which was 6.7% points higher than among men.15
●● Formal and informal sectors: The formal sector employment rate significantly
outweighs the informal sector employment rate, with approximately
10.5 million people employed in the formal sector (non-agricultural)
and an estimated 2.5 million people employed in the informal sector

Roberts-Lombard,38M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 38 2022/03/29 11:19 AM

Chapter 3: Market characteristics

(non-agricultural). Furthermore, approximately 0.8 million people are

employed in the agricultural industry, with 1.1 million people working in
private households.16

Influence on customer behaviour: The composition of the South African labour market
and the high unemployment rate influence the blend of products and services that local
companies provide.
For example, the high unemployment rate results in poverty which means that the customers
affected can afford only the basic products and services to satisfy their physiological needs
of food, clothing and shelter. This phenomenon results in a declining market for luxury goods
and services, such as cars, entertainment, and so on.

Households
We now briefly consider the various aspects of the findings on households, as
provided by Statistics SA:
●● Housing: The type of dwelling occupied by households has changed
significantly in the recent past, with formal dwellings seeing an increase
of 77.6% in 2011 to 79.2% in 2016 and continuing to increase to 81.9% in
2019. The percentage of households living in informal dwellings decreased
to 12.7% in 2019, while the percentage of households living in traditional
dwellings declined by 13.6% over the period from 2001 to 2019.17
●● Water sources: It is estimated that, during 2019, 44.9% of households had
access to piped or tap water in their homes, while 28.5% of households
accessed water on site. Furthermore, 12.2% relied on communal taps and
2.5% on neighbours’ taps. Even though the situation is improving, 3.1%
of households still needed to fetch water from rivers, streams, stagnant
water pools and dams, wells and springs during 2016.18 Furthermore, due to
poor infrastructure, corruption and climate change, water scarcity and the
Copyright © 2012. Juta & Company, Limited. All rights reserved.

unequal distribution of clean, quality drinking water has become a problem

in South Africa. It is observed that as of 2021, South Africa is the 30th driest
country in the world and it is estimated that by 2030 South Africa will have
a serious shortage of clean, quality water.19

Influence on customer behaviour: Although fewer households obtain their water from rivers,
streams and dams, there is still a proportion of the population that cannot satisfy their basic
needs for shelter and clean, safe water. Marketers may well be able to provide such people
with affordable products that could help alleviate their plight, for example a simple, cheap
and effective method of purifying water.

●● Energy sources: There was a steady increase in the use of electricity connected
to the main supply, from 77.1% in 2002 to 85% in 2019, and a consistent
decrease in the use of wood and paraffin for cooking purposes during
the same time period. 20 While the percentage of households that use
electricity for cooking purposes increased from 47.4% in 1996 to 82.7%

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 39
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 39 2022/03/29 11:19 AM

Consumer Behaviour

in 2016, before declining to 75.1% in 2019, the use of paraffin for cooking
purposes declined from 21.6% in 1996 to 3.9% in 2019. Although this is
the case, there is still a large percentage of households in Limpopo (33.4%)
and in the Mpumalanga (20%) that use wood and paraffin for cooking.
There was also a slight increase in the percentage of households that use gas
(up to 4.2% in 2019).21 Additionally, South Africa is facing serious energy
supply challenges, with electricity generation and supply being unable
to match the demand of electricity in the country, which therefore puts
pressure on South Africa to move to more sustainable sources of energy such
as renewable energy.22
●● Telecommunication: There has been a dramatic increase in the number of
households with a landline telephone or with a cellular phone, with only
3.8% of households indicating that they did not have access to either
landlines or cellphones in 2019. According to the General Household Survey
of 2019, 0.1% of South African households use landlines only, while 87.8%
of households use only cellular phones in their dwellings. The use of both
landlines and cellular phones is more prevalent in the more affluent provinces
of the Western Cape (18.4%) and Gauteng (9.9%). In terms of internet access,
it is reported that 63.3% of South African households have at least one
member who has access to or uses the internet either at home, work, place
of study or internet cafés. Access to the internet using all available means is
the highest in the Western Cape (74.3%), followed by Gauteng (74.8%) and
Mpumalanga (67.4%). 23

Influence on customer behaviour: Increased access to electricity and telecommunications

provides marketers with the opportunity to sell more electrical and electronic products,
such as stoves, refrigerators, microwave ovens, TV sets, smartphones and DStv access
equipment. This has an additional impact on local marketers, as they have to educate
customers on how to use this new and often complex equipment. In addition, communication
tools such as cellular phones and the internet open up a whole new channel for marketing
communication initiatives that marketers can use to reach their target markets.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Healthcare: The provision of adequate healthcare services remains a major

concern, particularly in the light of widespread poverty and the high prevalence
of HIV/AIDS. There has been a gradual increase in the use of public healthcare
facilities in recent years and a gradual decrease in the use of private facilities.
While government is striving to improve access to affordable healthcare
at public hospitals and clinics, much work still needs to be done to rectify
the inequalities that prevail. In terms of access to medical aid, membership
remains exclusive and out of reach for the majority of South Africans.24

Influence on customer behaviour: The changes in the access to healthcare facilities described
above reflect the changes in the way people make decisions about their healthcare. They
consider more criteria, evaluate more alternatives and carry out enhanced post-purchase
evaluation. Marketers may well find opportunities for developing new alternative products
and services here.

Roberts-Lombard,40M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 40 2022/03/29 11:19 AM

Chapter 3: Market characteristics

Previously, the Living Standards Measure (LSM) was used to measure the standards
of living in South Africa in terms of what people own. However, the Socio-Economic
Measure (SEM) has replaced the LSM and rather measures lifestyle and how people
live. SEM considers the structure and the type of home an individual owns or lives
in, which more accurately measures an individual’s standard of living.25
●● Household income: SEM measures how individuals live and aspects of the
home to measure the standard of living. SEM groups range from SEM 10,
which has the highest living standard, to SEM 1, with the lowest monthly
income. The majority of South African households fall within SEM 4–7.26

Influence on customer behaviour: The current housing situation and problems related to
access to water, electricity and healthcare facilities, along with the low household income
of the majority of South African households, are all indications of the socio-economic
conditions faced by many South Africans. As we have seen, a large proportion of the
population cannot satisfy their basic physiological needs. Marketers may well be able to sell
appropriate products to this group, and also help raise their standard of living in the process.

3.2.2 Economic factors influencing customer behaviour

The economic conditions of a country have a significant influence on the activities
of both marketers and customers, and they have an impact on the success of a
company’s marketing strategies.27

By gaining a better understanding of the economic conditions in a

country, marketers can better assess the opportunities and threats
prevalent in the country.
Some of the economic factors that are of concern to marketers are the impact
of inflation and interest rates, currency fluctuations and the global recession on
customers’ demand and spending patterns.28
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Inflation means a general rise in prices without a corresponding increase in wages,

which results in decreasing buying power.29 In order to measure customer inflation,
marketers turn their attention to the Customer Price Index (CPI), which measures
the average price level of customer goods and services that a household purchases.
It serves as a key indicator of how prices change, not only in the economy, but also
in terms of customers’ standard of living. The CPI is also the key indicator that
the South African Reserve Bank uses to determine the interest rate of the country.30
When inflation rates are low, customers’ purchasing power tends to increase,
while the opposite is true for high inflation rates. It is important for South African
marketers to realise that as buying power decreases, customers will not pay more
for a product than the subjective value they place on it; therefore, marketers need
to improve their efficiency levels if they are to justify the higher prices charged
due to higher inflation rates.31 Due to unstable governance and corruption, South
Africa’s inflation rate peaked at 6.3% in 2016, however since the end of former
President Jacob Zuma’s term, the inflation rate has remained stabilised since 2018
and is expected to remain stable at 4.5% in future.32

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 41
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 41 2022/03/29 11:19 AM

Consumer Behaviour

When it comes to currency fluctuations, the value of the rand plays a crucial role in
how much marketers can charge for their products and services. When the rand is
strong, the cost of imported products is reduced, resulting in a downward pressure
on retail prices and an increase in the purchasing power of customers. The opposite
also holds true: when the rand is weak, the cost of imported goods rises, resulting
in a decline in customer spending due to high prices.33 The occurrence of a recession
is another factor that can influence customers’ buying behaviour. A recession is
defined as an economic condition where income, production and employment
fall, causing a reduction in the demand for products and services. South Africa’s
economy went into recession in 2020 after South Africa’s GDP declined by 7%, the
highest decline that South Africa has experienced in the past century. Although
South Africa is recovering from the recession, the COVID-19 pandemic remains a
threat to economic recovery and the economic recovery is largely dependent on the
rate of vaccine rollouts.34
Marketers need to be aware that, during a recession, customers switch to buying
basics rather than luxuries, and they generally become more price sensitive.35 This
calls for a dramatic change in pricing structures and promotional activities. Since
customers are more price-sensitive and concerned with the functional value of
products during a recession, companies need to adapt their marketing strategies
by focusing more on the functional aspects of their products by emphasising value
and utility.36

Customers’ decisions to purchase, or not to purchase, play a major role

in the state of a country’s economy.
Whether customers are spending money or saving money influences the economic
growth of a country, the availability and cost of capital, employment levels and
so forth. Furthermore, the types of products that customers purchase impact
the balance of payments, industry growth rates and wage levels. In addition to
customers’ choices, decisions made in other countries, particularly in powerful
economies such as the United States, Western Europe and Japan, can influence
Copyright © 2012. Juta & Company, Limited. All rights reserved.

economic conditions in the rest of the world. For example, a recession in the
United States, as occurred during 2008/2009, or a strong movement to purchase
only American-made products, can have a significant negative impact on economic
conditions in the rest of the world.37
South Africa is an emerging market and regarded as the economic powerhouse of
Africa.38 In recognition of its potential as a portal into the African continent, South
Africa was invited to join the BRICS group of countries in 2011. BRICS is a powerful
group of emerging or developing countries, comprising Brazil, Russia, India, China
and now South Africa, which collectively form 42% of the global population,
with a combined GDP of US$16.8 trillion and collectively make up 22% of global
economic activity.39 While the main reason for including South Africa in the group
is to provide the rest of the BRICS countries with a gateway to the African market
for the purposes of bringing investment, functional technologies and expertise to
the African continent, South Africa also benefits by gaining access to markets in
the BRICS countries and receiving greater international exposure.40

Roberts-Lombard,42M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 42 2022/03/29 11:19 AM

Chapter 3: Market characteristics

3.2.3 Governmental factors influencing customer behaviour

Every aspect of marketing is affected and governed by the laws and
restrictions of the government,
and it is the responsibility of the marketer, or the company’s legal assistants, to
understand and comply with these laws. Failure to comply with these laws and
regulations can have detrimental effects for companies, but being proactive and
taking corrective action before a government agency intervenes can help a company
avoid legal action. In the end, the challenge is not to keep the company out of
trouble, but to provide boundaries within which creative marketing strategies can
be legally developed.41
Government laws and regulations provide protection to the innovators of
technology, promote the interests of society in general, protect companies from one
another, and protect the customer. Government, however, also relies on companies
for tax revenue, which is spent on public efforts such as educating the youth and
protecting the country’s borders.42

Legislation affecting marketing activities can be divided into three main categories, namely:
1. promoting competition, for example a bill that prohibits restrictive trading practices
such as price collusion
2. limiting competition, for example the laws providing Eskom and the post office with
legal protection against competition
3. protecting customer rights, for example the new Consumer Protection Act, which
came into effect during 2011.45

Marketers have to deal with new legislation at both central government and
provincial government levels. Specific examples include:
●● the Tobacco Products Control Act 83 of 1993
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● the Competition Act 89 of 1998

●● the Broadcasting Act 4 of 1999
●● the Electronic Communications and Transactions Act 25 of 2002 (ECT)
●● the Amended Codes of Good Practice: Information and Communication
Technology
●● the National Credit Act 34 of 2005
●● the Protection of Personal Information Act 4 of 2013 (POPIA)
●● the Consumer Protection Act 68 of 2008.
Today, the South African government is trying to create informed and well-
educated customers. Therefore, marketers should encourage customers to exercise
their rights and make better-informed buying decisions.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 43
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 43 2022/03/29 11:19 AM

Consumer Behaviour

A major consideration for marketers is the legislation passed due to the pressure
created by customers, for example in response to companies who have conducted
business unethically. This has resulted in many organised formal structures to
protect customers’ rights. Consequently, eight basic customer rights have been
identified, namely:44
1. the right to meet basic needs
2. the right to safety
3. the right to be informed
4. the right to choose
5. the right to be heard
6. the right to redress
7. the right to customer education
8. the right to a healthy environment.
This movement is known as customerism – defined as the efforts of independent
individuals, groups or bodies that protect the rights of customers – and it is receiving
immense attention in today’s marketplace.45

3.2.4 Physical conditions influencing customer behaviour

Marketers need to be aware of the threats and opportunities associated
with the physical environment.
Today, there are two aspects that play an increasingly important role in terms of
the physical environment: a country’s climate and the impact of climate change
on the environment. These aspects influence customer behaviour on a daily basis.
South Africa has a primarily temperate and pleasant climate and is regarded as one
of the most attractive tourism destinations in the world. The country has it all –
natural beauty, a year-round sunny climate, abundant wildlife, beautiful beaches
and superb facilities for sport and business.46
Copyright © 2012. Juta & Company, Limited. All rights reserved.

The climate also determines the kinds of crops that farmers grow locally, and has
a direct impact on food consumption, types of clothing and housing, and the
geographical distribution of the population. Thus we can say that climate affects all
the basic needs of South African customers: food, clothing and shelter. Logically,
marketers need to pay attention to the influence of climate on the population, and
must provide goods and services accordingly.
Climate change and damage to the natural environment are major concerns globally. In
many cities, air and water pollution have reached dangerous levels. There is great
concern about global warming and greenhouse gases in the atmosphere due to the
burning of fossil fuels, the clearing of natural vegetation for agricultural purposes,
the depletion of the ozone layer owing to certain pollutants in the atmosphere, and
increasing water shortages.47
While South Africa is affected by changes in the global climate, it also contributes
to the problem of global warming. The chopping down of forests and pollution

Roberts-Lombard,44M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 44 2022/03/29 11:19 AM

Chapter 3: Market characteristics

through the burning of fossil fuels – the primary source of carbon dioxide (CO2)
in the atmosphere – are some of the main culprits. According to the World Bank,
South Africans generated the equivalent of 8.4 tons of CO2 per person during
2016 compared to 7.5 tons of CO2 per person during 2018.48 However, this as still
less than the average American, who generated 15.2 tons of CO2 during 201849
and the average Qatari citizen who generated 32.4 tons of CO2 in the same year.50
The impact of CO2 and climate change is already reflected in deadly air pollutants
present in the air and South Africa’s vulnerability to climate change; therefore South
Africa has explored options such as renewable energy to reduce CO2 emissions in
the country.51
The mean average temperatures for South Africa have increased by 1.5 degrees
compared to the global average of 0.65 degrees. Climate change is projected to
increase by 5–8 degrees in South Africa’s interior regions and projected to be less
in the coastal regions by 2050. However, mitigating the effects of global warming
by decreasing the global CO2 emissions and stabilising CO2 levels between
450–500 arts per million (ppm) could result in a temperature increase of only
1–2 degrees by 2050. The risks of extreme rainfall can be reduced if the effects of
climate change are mitigated.52

Great opportunities await companies and marketers who can create solu
tions that promise to reconcile prosperity with environmental protection.
Climate change will continue to have a significant effect on the agricultural
sector in particular, but also on other sectors of the South African economy.
Greater awareness of the problem has resulted not only in customer demand
for environmentally friendly products but also in government regulations that
have an impact on product design and manufacturing processes. Increasing the
number of environmentally friendly products in the market requires challenging
customer loyalties, overcoming customer scepticism about the motives behind the
introduction of such products and their quality, and changing customer attitudes
about the role that individuals play in protecting the environment. The hope is that,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

increasingly, companies will adopt practices to protect the natural environment.

3.2.5 Social factors influencing customer behaviour

Social change is perhaps one of the most difficult external variables
for marketers to forecast and integrate into their marketing strategies.
Social factors such as attitudes, values and lifestyle greatly influence the products
and services that customers buy and consume, the prices customers are prepared
to pay, the efficacy of promotional campaigns, and how and when purchases
are made.53
Purchasing power is directed towards certain goods and services and away from
others according to people’s tastes and preferences. Society shapes the beliefs,
values and norms that largely define such tastes and preferences. Consciously and
unconsciously, people absorb a world view that defines their relationships with

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 45
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 45 2022/03/29 11:19 AM

Consumer Behaviour

themselves, with others, with organisations, with society as a whole and with
nature. The world as we know it has seen many societal changes in recent years,
and while we will explore some of these trends in detail in the following section, it
is important to highlight the following. 54,55
●● Customers today are much more demanding and informed. They demand
products that are good value for money and will save them time and energy.
●● Customers tend to read labels more than they did in the past, thereby showing
concern for their own health and that of their loved ones.
●● Dual-income households are strapped for time, giving rise to a change in
roles in terms of who does the housework, shopping and cooking.
●● More and more people are working from home in virtual offices.
●● More women are entering the workplace and earning their own income.
●● People strive to achieve the highest standard of living possible, for example
they buy a home not only for shelter, but also for reasons such as comfort,
style and status.
●● Although people face intense pressure in the workplace, they strive to achieve
a work−life balance.

3.2.6 Technological factors influencing customer behaviour

The technological environment has probably seen the most significant changes
in the past decade, and new developments appear and are commercialised at an
exponential rate. By using the latest research results, new scientific knowledge,
inventions and innovations, new products and services are developed continuously.
These include e-commerce, electronic banking, shopping and accessing information
through the internet, cellular technology such as WAP and Bluetooth, and satellite
technology such as DStv and video conferencing. The internet, which can be
defined as a hypertext system that enables computer users to send and receive
text, graphics, video and sound to or from anywhere in the world, has completely
Copyright © 2012. Juta & Company, Limited. All rights reserved.

changed the way in which marketing is done. This can either present companies
with a number of opportunities or can be seen as a serious threat. This is evident in
so many industries – such as the travel industry, publishing and the music industry
– where marketers are forced to utilise the full potential of the internet in order to
survive. Although certain industries experienced a huge threat, others embraced
technology to their advantage. Uber and Airbnb are recent examples of companies
using technology to their advantage.
This rapid technological growth is expected to continue, especially in areas relating
to digital electronics, artificial intelligence, materials research and biotechnology.
From a marketing point of view,

it is vital that marketers become aware of the latest developments in

technology and how these developments affect their marketing activities.

Roberts-Lombard,46M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 46 2022/03/29 11:19 AM

Chapter 3: Market characteristics

On the one hand, technology affects customers’ knowledge and desire for goods
and services, while on the other hand, technology affects the types of products
that marketers can offer and how marketers can communicate with customers.56
Technological advances have affected customer behaviour and marketing strategies
in South Africa in several ways:
●● The internet has completely transformed the way people access information
about the marketplace and the alternatives it offers.
●● Marketers are increasingly using electronic platforms to communicate
with their customers, for example social media such as Facebook, Twitter,
WhatsApp and Instagram.
●● More and more customers are using the internet and credit card technology
as well as applications to purchase goods and services, for example making
travel arrangements through the internet rather than through a travel agent.
●● Customers can now purchase anything from anywhere in the world at any
time, increasing competition for South African companies.
●● Augmented reality is also one of the newer forms of marketing strategy
adopted by companies, who use it to combine elements of print and online
advertising. It is seen as an ideal way of delivering persuasive messages to
people who are technologically minded.
●● Customers are now more empowered and in control of their purchase
decisions. At any time in the online purchasing process, they can exit the site
(to do some research, have a meeting, etc) and enter the customer journey
when they are ready. Customers will read other customers’ reviews, will
compare prices and then make a purchase decision. The internet has made
the online customer experience easily accessible, convenient and customers
are more in control of where, when, how and at what price they will make a
purchase.57 Customers have more control over the content they are exposed
to due to machine learning and cookies online.

To conclude, marketers need to keep up with a rapidly changing technological

environment if they want to succeed in today’s competitive marketplace where

marketers are competing not only with the company next to them but also with
companies across the globe.

3.3 Developing trends that influence customer behaviour

We now examine five marketing responses to some of the market characteristics
discussed in the previous section.58

3.3.1 Green marketing

Due to customers’ growing concern for the environment, marketers have begun to
establish a different approach to marketing. This approach, called green marketing,
focuses on the environment and generally involves:

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 47
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 47 2022/03/29 11:19 AM

Consumer Behaviour

●● developing and manufacturing products whose production, use or disposal is

less harmful to the environment than the traditional versions of the products
●● producing products that have a more favourable impact on the environment
●● linking the purchase of a product to an environmental organisation or event.

In response, many firms are making improvements to their products and processes
to bring them in line with environmental requirements and using advertising to
inform customers about these improvements.

EXAMPLE

Woolworths’ green marketing strategy59,60

●● Woolworths was the first major South African retailer to begin using recycled
beverage (rPET), juice and milk (rHDPE) bottles in product packaging.
●● Everything from their food plastic bags, fabric reusable bags, plastic hangers,
in-store signage, baskets, trolleys are made from recycled materials. New stores
have shelving that is made of recycled paper and bagasse (a by-product of sugar
cane processing).
●● Woolworths have energy-saving in mind and makes use of sustainable and
renewable energy such as solar power whenever designing a new store, which
has resulted in a 40% reduction in energy consumption.61
●● Woolworths has implemented rainwater harvesting, reuse systems and use
underground water, saving 14.5 million litres of municipal water every year.62
●● Woolworths recycles and reduces waste by recycling all plastic content such as
clothes hangers, manufacturing trolley signage with recycled material and by
introducing reusable fabric shopping bags and eliminating plastic shopping bags
in the stores. Furthermore, Woolworths recycles plastic bottles to create fabrics
that are used to manufacture some of the clothes in the stores.63
●● Woolworths has reduced cardboard waste in food operations by using reusable,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

recyclable plastic trays to transport products to their stores.

●● Woolworths recycles around 20 million of their own hangers a year.
●● In order to cut electricity consumption and carbon footprint, Woolworths has
installed energy-efficient light fixtures and automated lighting systems.
●● Woolworths has partnered with the World Wide Fund for Nature (WWF) Water
Neutral Scheme, meaning that the company balances the water it uses for its
projects in order to supply fresh, clean water to the environment.
●● To date, Woolworths has cut its relative electricity consumption by 40% through
initiatives such as recycling waste heat from refrigeration systems and pumping
it back into the stores to keep staff and customers comfortable, centralised
checking of the electricity consumption of each store and using energy-efficient
lighting and automated lighting systems after hours. Furthermore, Woolworths
is starting to use solar heating to supplement heating and adding 5% recycled
cooking oil to the fuel mix used in 95% of their delivery trucks.64

Roberts-Lombard,48M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 48 2022/03/29 11:19 AM

Chapter 3: Market characteristics

●● In terms of packaging, Woolworths also strives to be innovative by using the

minimum of materials, and the lightest materials, to package its products.
Packaging is designed for easy recyclability, customers are informed about what
each package contains and how best to recycle it, and recycled material is used
wherever possible. Woolworths also works with industry parties to establish
recycling facilities in order to make the process of recycling easier.65

WASTE & RECYCLING

Here at Woolworths, we’re committed to reducing the amount of waste we send to landfills,
recycling what we can and using recyclable materials where we can.

HERE’S HOW WE’RE REDUCING WASTE:

1. Although our green plastic food bags are made from a minimum 70% post-customer and
manufacturing waste, it has now been replaced with reusable fabric bags which can be
reused and reduce Woolworth’s plastic pollution.66
2. We’ve reduced cardboard waste in food operations by using reusable, recyclable plastic
trays to transport products to our stores.
3. Every night, our food market staff go through all the products on the shelf, identifying
products that have reached their sell-by date – even though it’s still perfectly fine.
Most of this food is donated to local shelters and charities to help feed needy children
and families. We’re also working on how we can reduce waste in the production and
manufacturing of our foods products.
4. We design our packaging for easier recyclability and our on-pack recycling labels tell
customers what each pack contains and how to properly dispose of it. Recycled materials
are used wherever possible and we purchase materials from certified sustainable
sources wherever possible. We’ve also committed to sourcing packaging materials from
sustainable sources as part of our deforestation commitment.
5. We were the first major South African retailer to begin using recycled beverage (rPET),
Copyright © 2012. Juta & Company, Limited. All rights reserved.

juice and milk (rHDPE) bottles in product packaging. These materials are safe and
scrupulously cleaned to make sure it meets or exceeds international standards for food
safety. Recycling beverage, juice and milk bottles not only reduces the amount of waste
that goes to landfill, it saves natural resources and energy, and helps create jobs.
6. We have set up recycling sites at select Engen service stations in the Western Cape,
Gauteng and KwaZulu-Natal and at selected stand-alone food stores across the Western
Cape. We also have recycling facilities at just over 30 schools in the Western Cape
with plans to expand this nationally. All of our stores also have facilities where our
customers can dispose of used compact fluorescent light bulbs and batteries safely and
responsibly. We’re reducing plastic bag usage by working with a small local enterprise
called Isikhwama, who make our colourful reusable shoppers using fabric containing
80% rPET (recycled bottles). In 2010, Woolworths introduced limited edition reusable
bags that offer customers the opportunity to help save our endangered wildlife, including
Rhino, Cheetah, Painted Dog, Vulture and our marine life. With our customers’ support,
we have raised over R8.3 million for the conservation efforts.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 49
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 49 2022/03/29 11:19 AM

Consumer Behaviour

7. Each year, Woolworths donates tonnes of new clothing to the Clothing Bank, one of our
partner organisations, and has set up collection stations in some stores for customers
to participate. The Clothing Bank not only gives some of the clothing we donate to non-
profit organisations, welfare institutions and government services to distribute to the
needy – it also empowers unemployed single mothers so they can build better lives for
themselves and their children.
8. We’ve partnered with Hangerman to recover our clothes hangers, enabling us to re-use
them. Through this partnership, Woolworths recycles around 20 million hangers a year,
by a workforce that includes many people with disabilities. These hangers get cleaned
and refurbished, and then sold back to clothing suppliers at a discount. It’s good news
for retailers, for the planet and communities who benefit from additional employment.
Woolworths has thus far recycled 350 million hangers in total.67

Another example of a brand working on sustainability and reducing waste is Colgate

with the new range of Naturals toothpaste. Colgate has introduced tooth paste
that has natural ingredients, packaged in recyclable and biodegradable packaging.
Colgate has become an environmentally conscious brand that wants to reduce its
waste and pollution in order to be a more sustainable and environmentally-friendly
brand. Colgate wants to encourage customers to adopt a lifestyle of recycling
and make it part of their everyday routines. This product has been launched to
encourage sustainable living and eco-friendliness.68

3.3.2 Cause-related marketing

The terms ‘social marketing’ and ‘cause-related marketing’ are sometimes used
interchangeably but cause-related marketing should not be confused with social
marketing. Social marketing refers more to the application of marketing principles
and tactics to promote a non-profit organisation, ideology or activity, for example:
‘Drive safely’; ‘Arrive Alive!’; ‘Don’t wait, Vaccinate!’,

cause-related marketing, however, is an activity whereby a company

links the sale of its products to an issue or cause,

for example if cosmetics company Estée Lauder associates its beauty products with
breast cancer awareness.
In contrast to traditional marketing, social marketing is done in the absence of a profit
motive and deals with an intangible product. In terms of the benefits received from a
social marketing campaign, they can either be direct to the individual, as in the case
of a ‘Stop smoking’ campaign, or indirect, by creating a better society for all to live in.
Companies engage in cause-related marketing for the purpose of improving their
sales or their corporate image while providing benefits to the cause. More and
more companies associate with causes in an effort to create long-term relationships
with their customers, thereby building greater corporate and brand equity
with the intention of obtaining more sales. Through cause-related marketing
campaigns, companies aim to address customers’ values and encourage customers
to take action that will help benefit the cause at hand (for example, breast cancer,

Roberts-Lombard,50M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 50 2022/03/29 11:19 AM

Chapter 3: Market characteristics

HIV/AIDS or pollution). The benefits are purely and primarily emotional in nature.
Marketers strive to encourage individuals to change their beliefs or behaviour, or
buy products and services because it is morally beneficial to do so and because
these actions make customers feel good about their own behaviour.

EXAMPLE

Pay it forward, pay it back

Many retailers are leveraging the spending power of their customers to contribute to
worthy causes – by persuading customers either to spend just that little bit more or
to pledge a percentage of their spend. These campaigns take many forms. A fast-
food outlet offers you the choice of spending a couple of rand extra to contribute to
feeding hungry children; when buying a movie ticket you are invited to contribute to
improving eye health for children in disadvantaged communities; a pharmacy chain
invites you to buy a pack of sanitary towels so that girls who cannot afford them can
attend school all month. Or you can buy pink valve caps when you buy new tyres,
with the money going to breast cancer research.
All of the above require you to make a conscious decision to contribute out of your
own pocket. But there are other systems that work just as well – possibly even
better. These entail the retailer donating on your behalf, depending on how much
you spend. Some examples are a well-known bank that offers the option of accounts
that contribute to the environment or the arts, and a supermarket chain that pledges
to donate a percentage of your spend to various charities.
Through the power of numbers, these many, many, small donations add up to
millions and millions of rands that help alleviate some of the social and environmental
problems facing our country.

Another example of a good cause-marketing campaign is the Carling Black Label

#NoExcuses campaign which aimed to help combat gender-based violence in South
Africa. The campaign would, however, best be described as a movement. Black
Label acknowledged that alcohol plays a big role in enabling gender-based violence,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

therefore Black Label organised marches, exhibitions, talks and performances

which were used to educate men on the issue. The campaign reached more
than 45 million people globally, increasing Black Label’s social media mentions
and brand sentiment.69

3.3.3 Marketing to gay and lesbian customers

There is a trend in society to move away from valuing uniformity to valuing diversity
in terms of ethnicity, religious beliefs and race. One group that has been gaining
public acceptance in recent years is the gay and lesbian community, a subset of
the LGBTI (lesbian, gay, bisexual, transgender and intersex) community. Evidence
of this acceptance is the approval of South Africa’s Constitution to implement
marriage equality for all of its citizens already in 1996. The LGBTI community
has evolved to the LGBTIQ+ community and within this community, individuals
identify themselves within this category and have similar sexual orientation but
their sexual orientation is separate and different within the LGBTIQ+ community.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 51
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 51 2022/03/29 11:19 AM

Consumer Behaviour

Globally, there has been significant change and acceptance of the LGBTIQ+
community, with radical transformation within influential structures such as the
Olympic Games, introducing the first-ever transgender contestant to the 2021
Tokyo Olympics and bringing about transformation, evolution and inclusion in
the games.70 The world is moving towards inclusion and equality with governments
across the world acknowledging that human rights of the LGBTIQ+ community
need to be recognised and prioritised due to this community being excluded,
discriminated against, oppressed and ostracised for too long.71
Like their heterosexual counterparts, LGBTIQ+ individuals belong to different
ethnic groups, live in different regions and fall into different occupational
categories and age groups. These factors, among others, influence what they buy
and when and where they make their purchases, and have a far greater impact on
their consumption patterns than their sexual orientation or gender identity.
In an attempt to capture the loyalty of the gay and lesbian market, it is crucial that
companies ask themselves a number of questions before approaching this market:
●● Is it necessary that we modify our products in order to meet the needs of
this market?
●● Should we use our standard advertisement in gay-oriented media or should
we adapt it to incorporate a gay and/or lesbian theme?
●● To what degree should we participate in activities related to the gay and
lesbian community?
●● Should our major media advertisements include gay/lesbian themes?
While the exact dimensions of the gay market remain unclear, and a lack of sound
data reduces the willingness of many companies to target this group, many others
have concluded that it represents a significantly attractive market to pursue.

EXAMPLE

Reaching the gay and lesbian community

Research done both locally and internationally has shown that the LGBTIQ+ market
generally falls into the higher SEM groups, has on average a high annual income
and a larger disposable income.72 Moreover, this market is not only brand conscious,
but is extremely receptive to brands that are seen as supporting social diversity and
freedom of expression.
The South African Constitutional Court is the first court globally to ensure that the
LGBTIQ+ community is protected from discrimination by the law, by prohibiting the
violation of human rights based on their sexual orientation and ensuring equality.
South Africa, therefore has progressive laws in ensuring the protection of the
LGBTIQ+ community.73 The LGBTIQ+ community is of interest to South African
marketers, as this market is a highly profitable market. The LGBTIQ+ community
have higher disposable incomes, therefore they have more purchasing power as
well as show more brand consciousness, hence it is important for marketers to
consider diversity in sexual orientation when marketing a product or service.74

Roberts-Lombard,52M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 52 2022/03/29 11:19 AM

Chapter 3: Market characteristics

Globally the LGBTIQ+ market is growing as the younger generations are more
adaptable to different sexual orientations; therefore, this market is more open to
different sexual orientations. Paying attention to this market will provide access to
a global $1 trillion of purchasing power from the LGBTIQ+.75 A growing interest has
been shown by marketers to reach the LGBTIQ+ market as it has been seen as
being a developing and lucrative market. The LGBTIQ+ market remains largely been
under-recognised and more South African brands are investing more in marketing
to the LGBTIQ+ communities in South Africa. This is an important move as about
57% of the LGBTIQ+ market in South Africa feel excluded by South African brands
and marketers.76
Marketers interested in reaching the gay and lesbian community can explore a
variety of media and gay-related events, such as the following.
●● There are several magazines and newspapers aimed at the gay and lesbian
community, including Gay Pages, The LGBT Africa and Out Africa Magazine,
to name just a few.
●● With regard to websites aimed at the gay and lesbian community, marketers
can consider advertising on GayLesbian, The LGBT Forum, Mamba Online
and Mambagirl-online.
●● The annual Gay Pride Parade through the streets of Johannesburg, Soweto,
Durban, Polokwane (Limpopo Pride) and Cape Town offers a unique chance
for marketers to reach the gay and lesbian community.77
In the past, brands have avoided or have been cautious about aligning their
marketing messages to controversial issues such as sexuality and have opted to
take a neutral stance. However more recently, brands have taken bold steps to
market to the LGBTIQ+ communities. Brands that authentically align their marketing
message evoke emotional reactions from the LGBTIQ+ communities showing that
brands support the community. Therefore the LGBTIQ+ community can identify
which brands are in support of the cause and therefore brand sentiment increases
positively as members of the LGBTIQ+ community are positively influenced by
Copyright © 2012. Juta & Company, Limited. All rights reserved.

marketing that features gay and lesbian content.78 An example of good marketing
to the LGBTIQ+ community is H&M launching the Beyond The Rainbow campaign
on 1 June 2021 in support of Pride Month. Customers were able to upload and
share their pride stories on social media with custom pride filters from H&M. The
campaign encouraged members of the LGBTIQ+ community to share their stories,
their values and support the cause of Pride Month.79

3.3.4 Gender-based marketing

Until recently, the prevailing stereotype of a motorcar purchase involved a man
conducting the transaction by himself. If he was accompanied by his wife or
girlfriend, she merely offered suggestions concerning colour and interior features.
Today, women increasingly influence such high-end purchases and are even
emerging as the dominant market for certain models. Gender roles have undergone
dramatic changes over the past few years. More and more women are participating
in the working world and experiencing increased wealth and purchasing power.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 53
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 53 2022/03/29 11:19 AM

Consumer Behaviour

Moreover, their effort to balance this role with that of mother and/or wife is matched
by men’s effort to balance their work with being a father and/or a husband. Indeed,
in many cases, the traditional situation of the woman staying at home to look
after the family has been turned upside down, with the man fulfilling the role of
caregiver and the woman taking on the role of breadwinner.
Interestingly, we find a pattern typical of a changing value: growing acceptance of
the change, but not for all aspects of it, and substantial resistance coming from the
more traditional groups or those who stand to lose as the new norms are accepted.
Today, women have a variety of role options, and display a range of attitudes
concerning their gender. When marketing to women, companies are therefore
faced with a number of marketing-related aspects that they need to keep in mind,
such as the following:
●● In terms of market segmentation, it is suggested that the female market can be
segmented into five groups: the traditional housewife, the trapped housewife,
the trapped working woman, the career-driven working woman, as well as
the career-driven and family-orientated woman. The traditional housewife
refers to a woman who is generally married and who prefers staying at home
with the children, while a trapped housewife is usually married, would
prefer to work, but is a stay-at-home mother because of the children or other
family responsibilities. On the other hand, a trapped working woman can
be married or single, would like to stay at home with the children, but has
to work because of financial pressures. A career-driven working woman can
be married or single and prefers to focus on her career rather than the home
and family. Lastly, the career-driven, family-orientated woman juggles the
demands of her career and her family, in order to support her family whilst
maintaining her career.80 This type of woman is always on the go, hence
the growing trend of purchases being made online, which has influenced
product development to provide on-demand products and services which
offer convenience.81 For example, the inception of home-delivery apps such
as Checkers 60Sixty or meal kit services such as Ucook have been developed
Copyright © 2012. Juta & Company, Limited. All rights reserved.

with the convenience-driven customer in mind.82

●● With regard to product strategy, many products are losing their gender
typecasting and, as a result, many previously male-oriented products, such
as sport, camping and outdoor equipment, cars, motorbikes, computers and
insurance, are now designed with women in mind.
Considering marketing communications, it should be noted that male
and female customers respond differently to marketing communication
messages in terms of the appeal, music and verbal style used in the message.
Considering the different types of media available, there are a few similarities
and differences between male and female customers. According to SAARF’s
AMPS of December 2011 (measured from January to December 2011), 42.3%
of the women who consume print media read newspapers, while 50.5%
read magazines, compared to 55.9% of men reading newspapers and 50.4%
reading magazines. While there are only slight differences between males
and females when it comes to radio and television, it is indicated that only
17.8% of women access the internet at any time during a specific month,

Roberts-Lombard,54M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 54 2022/03/29 11:19 AM

Chapter 3: Market characteristics

compared to 22.1% of men.83 Considering the most recent AMPS data

released by SAARF in 2015, businesses and marketers have relied on old
data to determine media consumption, consumer behaviour and trends in
South Africa, more especially by gender.84 However, the Marketing Research
Foundation has since launched MAPS (the Marketing All Product Survey)
which provides more comprehensive data for businesses and marketers and
assists in providing the relevant data to appeal to target audiences using the
right marketing communication strategies (see: https://mrfsa.org.za/maps/ ).85
●● In terms of the retail strategy, it is also evident that males and females respond
differently to the retail environment. Today more males are doing household
shopping than was traditionally the case.

These trends relating to the changing role of women are receiving increased
attention, and companies who ignore them risk passing up excellent marketing
opportunities.

EXAMPLE

SupaClean’s ‘laundry can be fun’ ad

Tasked with coming up with an innovative, fun and non-sexist ad for a washing
powder, SupaClean’s advertising agency – the funky and irreverent award-winning
SlikChix – came up with the brilliant ‘Washday in Lüderitz’ campaign.
An aerial view of Lüderitz quickly changes to intercut shots of about a dozen different
people – men and women – taking wet washing out of machines, and stuffing them
into laundry baskets, while a voice-over explains how the coastal desert town is
kept cool by constant sea mists that roll in off the cold Atlantic. The people put the
laundry baskets into cars and drive off into the desert. Another aerial shot zooms
out, showing the difference between the grey, misty town and the bright, dry desert
just a few kilometres away.
The next scene shows wash lines strung up between the cars, a picnic table, four
Copyright © 2012. Juta & Company, Limited. All rights reserved.

people playing bridge under a sun umbrella, and the rest of them playing volleyball.
Laundry can be fun!

3.3.5 Rising black middle class

A uniquely South African development influencing customer behaviour is the rise
of the Black Diamonds. The term ‘Black Diamond’ was coined in 2006 by TNS
Research Surveys (Pty) Ltd and the UCT Unilever Institute, which conducted
cutting-edge research into this important market segment. From 2020, this
segment commonly became known as the rising black middle class, making up 66%
of South Africa’s middle class.86 The black middle class had grown to six million
individuals by 2018 and consequently, their purchasing power has increased.
This is an important segment for marketers and brands to be aware of and pay
attention to.87

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 55
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 55 2022/03/29 11:19 AM

Consumer Behaviour

According to research, Black Diamonds are a complex and diverse group. It includes
the ‘Mzansi youth’, who are still living at home and studying, start-me-ups who are
just entering the marketplace, young families with children, and older, established,
wealthier families.88
Furthermore, the research revealed the following interesting facts about the rising
black middle class:89,90,91
●● 62% live in houses in metros, with 31% staying in urban areas.
●● 22% have university of post-matric education.
●● 49% are single whilst 43% are married.
●● The average age of the black middle class is 39.
●● 56% are employed.
●● The average household income for the black middle class is R18 146.25.
●● 18% of black South Africans are deemed to be secure enough to be middle class.
●● The black middle class makes up 12% of the black adult population.
●● The black middle class spends an average of R237 billion each year.
●● 70% of the black middle class have savings accounts.
Another group of Black Diamonds that shows increasingly more influence, spending
power and growth is Black Diamond women. Being better educated and more
entrepreneurial, they strive for a better future for themselves and their children.
With approximately 1.5 million Black Diamond women in South Africa, having
an annual spend of R120 billion and being involved with everyday purchasing
decisions, this group of women presents marketers with a number of opportunities
in respect of product and service offerings.92 Given the culture in which they grew
up, they face challenges every day in terms of their relationship with men, money,
family responsibility and self-determination, but they remain a very optimistic
group of women wanting to succeed.93
Recognising the potential that the Black Diamonds hold as a target market, more
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and more companies are exploring possible opportunities to capture this segment.

EXAMPLE

Reaching the black middle class94

Just like any other group within the middle class, the rising black middle class is
digitally connected and very active online. This group’s internet usage increased
from 10% in 2004 to 67% in 2015, with a large majority owning a cellphone, up from
36% in 2004 to 97% in 2015. Social media has also played an important role in
reaching the black middle class as two-thirds of this market has a Facebook profile,
and three-quarters of those Facebook users log on at least once a day, thus making
this market very attractive for most forms of digital marketing, social media and,
more specifically, mobile marketing.

Roberts-Lombard,56M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 56 2022/03/29 11:19 AM

Chapter 3: Market characteristics

3.4 Marketing implications

South African marketers must know the characteristics of their market. Having
obtained all the relevant information from every possible source, marketers can use
this information to plan a marketing campaign. Then, based on their knowledge
of the diverse composition of the South African population, local marketers need
to develop unique marketing methods to reach their customers. These marketing
methods will be different from the traditional methods. For example, to reach
customers in rural areas where the literacy rate is relatively low, marketers can use
roadshows, bus and taxi advertising, handing out of samples and radio advertising.
Marketers can consider developing products that are particularly suited to the gay
and lesbian market or for women specifically. Having an understanding of the
various market characteristics that affect their target markets allows companies to
develop appropriate marketing mixes that will allow them to meet their marketing
objectives effectively.

CASE STUDY: Google Stations

Google, a global tech company that offers a range of digital services such as digital
advertising and tech solutions such as a search engine, which they are commonly
known for, launched Google Stations in partnership with South African internet
service provider Think WiFi, in the most underserved and underprivileged areas in
Cape Town in 2018.95 Google stations are WiFi towers that give free access to WiFi
to these underserved areas, therefore increasing accessibility to WiFi in South
Africa and Africa as a whole. Google reports that only about 39% of the African
population have access to WiFi and general internet access.96 The Google Stations
are situated in 125 locations between Philippi, Gugulethu, Khayelitsha, Delft,
Elsies River and Langa, empowering people in these informal settlements and
underserved areas by giving them access to information by providing free access
to the internet.97 Google realised the gap in access to information and the digital
divide in Africa resulted in school children falling behind, therefore giving citizens in
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the underserved communities of Cape Town fair and equal access to opportunities
and learning possibilities.98 Google first launched the Google Stations in India in
2015, before providing these Google Stations in Brazil, Mexico, Indonesia and
Nigeria, making information more accessible globally.99 However, in 2020, due to
the dwindling prices of mobile data making the internet more accessible, Google
stopped the Google Station service globally. They handed over the South African
operations to Think WiFi, who now run the operation independently using the
existing Google stations in the communities where they were set up.100
The Google Stations form part of a CSR initiative for Google and are seen as an
investment into the African market where many people are still not connected to the
internet; Africa has an unexplored market for big tech companies such as Google.101
Google has made access to free WiFi possible to underserved communities in
South Africa, increasing their positive brand sentiment.102 Giving communities
access to the internet has also enabled more people to gain access to the Google
search engine, contributing to Google’s mission by making information universally
accessible and useful.103

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 57
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 57 2022/03/29 11:19 AM

Consumer Behaviour

3.5 Summary
The knowledge and insight that South African marketers gain from the various
marketing characteristics will empower them to develop marketing strategies that
will best fit their intended target markets. It is critical that they stay abreast of what
is happening in customers’ environments. They must consider factors relating to
the demography of the customer, prevailing economic conditions, governmental
legislation protecting customers, the influence of the physical environment,
and the societal and technological factors influencing customer behaviour. By
understanding this behaviour clearly, marketers will be able to blend the marketing
mix instruments to suit customers’ needs.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. List all possible variables that can make a contribution to the composition of
the South African population profile.
2. Describe the variables that you can use to investigate the composition of
South African households.
3. Explain how the economic, governmental, physical, social and technological
factors currently prevalent in South Africa affect customer behaviour.
4. Discuss some of the developments in customer behaviour that marketers
should be aware of.
5. With reference to the case study and the chapter as a whole, answer the
following questions:
A. Do you think Woolworths’ green strategy will satisfy the expectations of the
South African environmentally conscience consumer? Motivate your answer.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

B. As a marketer, do you agree that sustainable marketing as well as the

formulation of sustainable products and services, is essential to business
success?
C. Do you think that specific products offered to the LGBTIQ+ community will
be of benefit to the South African market as a whole? Motivate your answer.
D. Assume you want to enter the South African market with green products
(as Woolworths did). Which market characteristics do you need to take into
account?
E. How do you think Google Stations’ (refer to case study) products/services
will influence customer behaviour?
F. As a marketer, how would you market the ‘idea’ of ‘water saving’ to the
South African market?

Roberts-Lombard,58M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 58 2022/03/29 11:19 AM

Chapter 3: Market characteristics

G. Considering the new developments in customer behaviour, do you think

‘green’ products could or should be customised to meet the needs of
the LGBTIQ+ community, women and Black Diamonds? Motivate your
answers in all three cases.

Multiple-choice questions
1. Demography is defined as …
A. the study of how people make decisions
B. the study of people’s psychological characteristics such as attitudes,
values and lifestyles
C. the study of people’s vital statistics, such as their age, race or ethnicity,
and location
D. the study of how people react to economic changes
E. the study of the various market characteristics (ie economic, governmental,
physical, social and technological factors) that influence customer behaviour.
2. _____________ refers to a general rise in prices without a corresponding
increase in wages, which results in decreasing buying power.
A. Interest rate
B. Inflation
C. Deflation
D. Currency fluctuation
E. The Customer Price Index (CPI).
3. When the value of the rand is weak, imported goods are very _____________,
causing a(n) _____________ in customer spending.
A. expensive; decline
B. cheap; decline
Copyright © 2012. Juta & Company, Limited. All rights reserved.

C. expensive; increase
D. cheap; increase
E. none of the above.
4. _____________ refers to an economic condition where income, production
and employment fall, causing a reduction in the demand for products and
services.
A. Prosperity
B. Depression
C. Recovery
D. Inflation
E. Recession.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 59
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 59 2022/03/29 11:19 AM

Consumer Behaviour

5. Legislation affecting marketing activities can be divided into several main

categories, namely …
A. promoting competition
B. limiting competition
C. protecting the customer’s rights
D. B and C
E. A, B and C.
6. The fact that customers nowadays are more inquisitive and more demanding
than in the past refers to a _____________ factor influencing customer
behaviour.
A. physiological
B. psychological
C. physical
D. social
E. technological.
7. Green marketing focuses on the environment and generally involves …
A. manufacturing products whose production is less harmful to the
environment
B. the application of marketing principles and tactics with the purpose of
promoting a cause
C. producing products that have a more favourable impact on the environment
D. A and C
E. all of the above.
8. When a company such as Clover donates 50 cents for every yoghurt sold to a
non-profit organisation such as CANSA, it is known as _____________.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

A. social marketing
B. cause-related marketing
C. non-profit marketing
D. green marketing
E. sponsorship.
9. The SupaClean example in this chapter refers to what type of marketing?
A. Cause-related marketing
B. Gender-based marketing
C. Career-driven marketing
D. Green marketing
E. Social marketing.

Roberts-Lombard,60M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 60 2022/03/29 11:19 AM

Chapter 3: Market characteristics

10. The term _____________ refers to South Africa’s fastest growing, influential
and affluent black community.
A. ‘Black Diamonds’
B. ‘Black Pearls’
C. ‘Blood Diamonds’
D. ‘Mzansi youth’
E. ‘Start-me-ups’.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 61
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:04:51.

Consumer Behaviour 5E.indb 61 2022/03/29 11:19 AM

Consumer Behaviour 5E.indb 62 2022/03/29 11:19 AM

Chapter
CULTURE AND CONSUMER
4 BEHAVIOUR
Learning outcomes
After studying this chapter, you should be able to:
■■ Define culture and subculture
■■ Explain how culture is acquired
■■ Apply measurements of culture and subculture in analysing customer markets
■■ Outline South African core values
■■ Apply a means–end chain analysis to assist in identifying personal values influencing
consumer decision making
■■ Position brands based on values.

4.1 Introduction
Culture is central to all marketing strategies. It is the single thing that allows
marketers to create greater engagement and relevance with their market and to
grow the business. Marketers need to acknowledge the importance of culture to
establishing and building a brand and the business. In this chapter, we explore the
nature of culture and what it means, the characteristics of culture, and its role and
place in marketing and consumer behaviour. The factors that influence culture are
also addressed.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

4.2 The nature of culture

Culture is an important factor in determining consumer behaviour. Culture
clarifies and explains why some products sell well in certain regions or among
specific groups, but not as well elsewhere. Not only does culture impact on the
buying decisions of customers but it also affects how consumers use the products
they buy and how they dispose of them.1
Numerous definitions exist for culture:
●● Culture is a way of life of a group of people – the behaviours, beliefs, values,
and symbols that they accept, generally without thinking about them, and
that are passed along by communication and imitation from one generation
to the next.2
●● Culture is the sum total of the learnt behaviour of a group of people that is
generally considered to be the tradition of that people and is transmitted
from generation to generation.

Consumer Behaviour 5E.indb 63 2022/03/29 11:19 AM

Consumer Behaviour

A more general definition of culture is that it is a shared set of beliefs amongst a

group of people in a particular place and time.
What we can elicit from these definitions is that culture is the combined total of
learnt beliefs, values and customs of a group of people and these beliefs, values and
customs direct the behaviour of that group.

4.3 Evolving nature of culture

The evolving nature of culture requires marketers to monitor the sociocultural
environment in order to position an existing product or service more effectively
or to develop new products or services. This is a challenging endeavour, with
many factors likely to produce cultural changes in a given society. The evolving
and constantly changing nature of culture means that marketers continually have
to monitor why consumers do what they are doing, who consumes a company’s
products, when these products are bought, how and where different media reach
consumers, and any new products and services that appear on the market.

4.4 Cultural factors affecting consumer behaviour

As stated previously, consumer behaviour kelps marketers to understand why or
why not consumers buy goods and services. Cultural factors are one of the major
factors that influence the buying decisions of consumers.

4.4.1 What cultural factors are

As seen in the definition of culture, cultural factors consist of a set of values and
beliefs of a group of individuals or a community. In essence, the culture of an
individual decides how they behave. What a person learns from their parents,
relatives and community becomes that person’s culture. An example is that in
Copyright © 2012. Juta & Company, Limited. All rights reserved.

many Asian families, children are taught that they need to stay with their parents
until they marry, and then, in many cases, to stay in the home by adding another
story to the house. In European countries, the opposite applies, with children being
brought up to be more independent and to move out of their parents’ house as
soon as they earn an income. It must be noted that cultural factors significantly
influence the buying decisions of the consumer and that every individual has their
own habits, beliefs and values that are developed from their family background.
Each culture also has subcultures such as nationality, religion, age, language, race,
geographic region, gender, social standing and so forth that impact decisions.
In simple terms, a subculture can be defined as a cultural group that resides within
a larger culture as a distinctive group that exists as an identifiable segment, often
having beliefs or interests at variance with those of the larger culture. Many
subcultures make up important market segments, and marketers often design
products and marketing strategies tailored to subcultures’ needs.

Roberts-Lombard,64M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:03.

Consumer Behaviour 5E.indb 64 2022/03/29 11:19 AM

Chapter 4: Culture and consumer behaviour

Religion as a subculture
Religious groups are a common subculture in society and have a strong influence
on their followers – be they Christians, Muslims, Jewish or any other religion. As
a result of these beliefs, the use or acquiring of certain products and services will
be avoided. Religious affiliations influence the consumers’ consumption pattern.
Muslims, for example, will avoid purchasing alcoholic products, while those of the
Jewish faith will avoid purchasing shellfish or pork. It is assumed that members of
a particular religious subculture will display great similarity in behaviour in the
purchase and consumption of products.3

Geographic subculture
The way people lead their lives will, in many instances, vary based on where they
stay or from which part of the country they come. People living in a particular
part of the country, say the Western Cape, constitute a particular regional
subculture. Geographic regions, such as rural areas, villages, towns, peri-urban
and metropolitan areas, also represent subcultural consumer groups. In South
Africa, different patterns for the consumption of toiletries, food and groceries
are evident in rural communities compared to the more urbanised metropolitan
areas, such as greater Johannesburg, Cape Town, Durban and Tshwane. Differences
in consumer behaviour are also evident among speakers of different languages.
Other demographic classifications that reveal differences in consumer behaviour
are ethnicity and religion. Different geographic regions pose different problems
for consumers and the most obvious is climatic conditions. Climate influences
the type of home construction, clothing worn, and recreational activities.
Different regions may even have different age distributions and all of these factors
need to be taken into account by the marketer. These regional variances influence
the use of the media consulted, products used, and the importance of certain
product attributes.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Age as a subculture
Age as a subculture is based on the age differences of people living in a country
and belonging to the same main culture. Marketers need to communicate with
members of an age group in the language they understand. An age cohort consists
of people of a similar age with similar experiences, and marketers need to know
how to connect with them in a language they understand. Typical age cohorts
will be kids, generations X and Z, baby boomers and seniors. Each of these cohorts
has specific characteristics of which marketers need to be aware. So, for example,
Gen Z, tweens aged 8 and 14 years, spend large amounts on clothes, movies and
feel-good products and they like to talk on the phone and in chat rooms. Gen X,
on the other hand, are sophisticated, are turned off by advertising that contains a
lot of hype, and this generation is responsible for culture-changing products such
as Google, YouTube and Amazon.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 65
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:03.

Consumer Behaviour 5E.indb 65 2022/03/29 11:19 AM

Consumer Behaviour

Gender as a subculture
Gender is a subculture as we have both males and females. It is generally known
that society emphasises the differences between the genders and that there is
an expectation that these groups will behave differently. This leads to a natural
difference in products being used by each group and different responses to advertising
appeals. Females are generally influenced by neat, gentle, tactful and feminine
appeals, while men are more influenced by a robust approach, aggressiveness, self-
confidence and masculinity. There are numerous products equally used by both
genders but in order to sell them, different appeals are needed. Bicycles are designed
differently for men and women, and fragrances are also different.

Occupation as a subculture
The occupation that people form part of leads to different patterns of purchasing
behaviour. There are subcultures for politicians, doctors, lawyers, engineers,
teachers and many more. Teachers, for example, may look at the educational
impact of toys before buying them, while an engineer will look at the technical
and design aspects of a product. Marketers need to recognise these differences of
people in different occupations and design their marketing strategies according to
the specific subculture’s buying behaviour.

Social class as a subculture

Social class is often used by marketers in their marketing strategies to differentiate
between groups. There are subcultures for the lower-income groups, middle-income
groups and high-income groups. People who belong to a high-income group will
display vastly different buying behaviour compared to those in a lower-income
group. People in a lower-income group will be less inclined to buy prepacked and
frozen meals as these are more expensive. The fact that they have limited funds
will also mean that their educational opportunities are limited, and they will
most likely develop different attitudes and motivations – and a resultant different
Copyright © 2012. Juta & Company, Limited. All rights reserved.

buying behaviour. Where the higher-income groups spend more of their income
on expensive luxury goods, people in the middle- and lower-income groups would
spend their money on necessities such as food and housing.

Nationality as a subculture
It is common knowledge that different nationalities have different buying behaviours.
This subculture is extremely important to marketers especially when they target
customers in different countries – or of different nationalities in the same country.
In some countries, such as the USA, there are vast concentrations of Chinese,
Mexican, Cuban and Russian people. The products offered in the areas with a large
concentration of specific people are different from those being offered in other parts
of the country by the same company. For example, HEB Foods in the USA offers
a totally different range of meat products in Austin, Texas than in Arkansas. The
reason is due to the high concentration of Mexican customers in Texas whose buyer
behaviour and needs are different from those customers in Arkansas.

Roberts-Lombard,66M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:03.

Consumer Behaviour 5E.indb 66 2022/03/29 11:19 AM

Chapter 4: Culture and consumer behaviour

Language as a subculture
Closely linked with nationality is language. This subculture is important to
marketers as the same message in different languages can have different meanings,
and some people have only a limited understanding of a second language.
Marketers need to understand the market they are targeting and ensure that it
will understand the message as intended by them via their marketing strategy. If
an Afrikaans community is targeted for a specific product, the most logical means
of communication will be Afrikaans, and similarly, if the target market is largely
Xhosa-speaking, Xhosa might be the preferred language of the marketing appeal.
It is also commonly assumed by marketers that everybody understands English
but this might not always be the case and marketers need to factor this in in their
strategy development.

Race as a subculture
As with all other subcultures, there are differences in the way certain race groups
interpret marketing messages, and how they make buying decisions. In South
Africa, the four main race groups are African, white, coloured and Indian. Each
of these groups acts differently in certain situations and has different needs and
buying behaviours.

4.5 Subcultural influences on marketing decisions

As is clear from the preceding discussion, it is crucial for marketers to be aware
of the differences within any culture. It is also clear that those members of a
subculture tend to think, act and behave similarly in their actions. Subcultures
have an important implication on consumer lifestyles, and this understanding has
led to marketers developing effective marketing strategies aimed at identified target
markets that have profit potential. HEB Foods, referred to above, is an example of
a company that has adapted its marketing strategy and offering on a regional basis
Copyright © 2012. Juta & Company, Limited. All rights reserved.

to meet the demands of a specific language and nationality group. In the process,
the company had to alter its products in terms of ingredients, the wording on the
packaging and the packaging itself. For a company like HEB Foods, it made business
sense; it researched the targeted subculture group and its buying habits and linked
that to its own resources, strengths and the potential reward (profit).
Marketers will generally consider a subculture as a potentially viable market if
it is significant in size, and if specific purchasing patterns can be identified. For
the market to be viable, the subculture must have sufficiently different buying
habits from the main culture group to which it belongs; it must differ in its needs
and behaviour associated with a product category. Lastly, like culture, subcultures
change and marketers need to adapt to that.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 67
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:03.

Consumer Behaviour 5E.indb 67 2022/03/29 11:19 AM

Consumer Behaviour

4.6 Effect of culture on consumers

If one wants to define the culture of a group, it is imperative that the beliefs and
value systems of the group are first examined. As mentioned earlier, culture can
be defined as the beliefs, values and traditions of the members of a specific group.
Beliefs and values are classified as rules of behaviour, while traditions are habits and
suitable ways of behaving. Culture determines the consumer’s experiences, beliefs
and values. This, in turn, is directly linked to attitudes, emotions, social norms,
intentions and behaviours of consumers. Personal culture represents the local area.
For instance, the people residing in certain provinces and regions in a specific area
of South Africa have similar cultural habits. Religious differences or similarities,
on the other hand, are backed by aspects like common core values, personalities,
customs, etc. Groups that influence the buying decisions of consumers are typically
sorted into workgroups, shopping groups, friendship groups and families.4
Let us briefly look at what beliefs, values and traditions are:
●● Beliefs. Beliefs can be defined as the knowledge and inferences that a consumer
has about products and brands as well as the potential benefits that can be
derived from using them. Consumers’ attitudes comprise beliefs feelings and
behavioural intentions toward some objects.5
●● Values and norms. Values can be defined as important beliefs or ideals of
the members or individuals in a community band that serve as a catalyst
for action. Norms are the action-guiding rules of a person. The difference
between values and norms is that value is more general, referring to an overall
idea, whereas a norm is concrete, specifying what has to be done.6 Norms
provide order in society, and people need norms to guide and direct their
behaviour. Norms are derived from cultural values or widely held beliefs that
affirm what is not desirable.
●● Customs. Customs are, simply put, traditions and rituals. All societies have
traditions and rituals that are part of their culture, be it the way a body
is buried or washed after death; or the way certain food is prepared and
Copyright © 2012. Juta & Company, Limited. All rights reserved.

served. Marketers need to be aware of these traditions and customs as they

can impact on the effectiveness of their marketing actions and their success.

4.7 Summary
We live in an age of information and globalisation, an age where information
technologies are breaking down traditional barriers in time and space. However,
converging technologies and shrinking income differences across countries will
not necessarily lead to the homogenisation of consumer behaviour. Instead, as the
world economy is becoming more and more cross-cultural, consumer behaviour may
become more heterogeneous because of newly exposed cultural differences. This
makes it increasingly important for marketers to understand the values of national
cultures, and their impact on consumer behaviour. In the context of international
marketing, cross-cultural value orientations can affect the way products, services
and ideas are consumed and used in a particular culture.

Roberts-Lombard,68M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:03.

Consumer Behaviour 5E.indb 68 2022/03/29 11:19 AM

Chapter 4: Culture and consumer behaviour

Thus, knowledge and understanding of cultural values are essential to successful

international marketing efforts. It is hoped that marketers would benefit from gaining
an insight into the way in which cross-cultural values relate to specific consumer
behaviours.
Culture is dynamic, and gradually and continually evolves to meet the needs of
society. Beliefs, values and customs are acquired through formal learning, informal
learning and technical training. Advertising enhances formal learning by reinforcing
desired modes of behaviour and expectations, and it enhances informal learning
by providing examples for desired behaviour. Culture is also communicated to
members of society through a common language and commonly shared symbols.
Every group or society has a culture, and cultural influences on consumer behaviour
may vary greatly from country to country and culture to culture. Failure to adjust to
these differences can result in ineffective marketing campaigns.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Discuss the differences between beliefs, values and customs.
2. Discuss the different types of subculture and illustrate your discussion with
practical examples.

Multiple-choice questions
1. According to the authors of this textbook, culture may be defined as …
A. the sum total of learnt beliefs, values and customs directing the behaviour
of members of a particular society
Copyright © 2012. Juta & Company, Limited. All rights reserved.

B. the way a person is likely to behave in a specific situation

C. the accumulated feelings that individuals have about things and possessions
D. the work patterns that give a society its distinctive flavour.
2. Thandi has been driving a Volkswagen Polo for some time. She is urging her
friend also to buy one. ‘It’s a great car – well built, with a good safety record!’
Thandi tells her friend. Thandi’s statement is the expression of a …
A. custom
B. belief
C. value
D. culture.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 69
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:03.

Consumer Behaviour 5E.indb 69 2022/03/29 11:19 AM

Consumer Behaviour

3. Consumer behaviour researchers are examining consumer knowledge and

evaluation of products in terms of their general influence, how they guide
behaviour, and how widely accepted they are. What they are studying is
consumer …
A. customs
B. cognitive processes
C. values
D. needs.
4. A study of the nature of culture includes the following:
A. Laws
B. Language
C. Technology
D. All of the above.
5. The changing nature of culture means that marketers have to continuously
monitor …
A. why consumers are now doing what they are doing
B. when consumers do their shopping
C. new products and services that may be emerging
D. all of the above.
6. The value statement ‘Young people should respect older people, community
leaders and teachers’ is rated most important by …
A. Xhosa-speaking South Africans
B. English-speaking South Africans
C. Afrikaans-speaking South Africans
D. Zulu-speaking South Africans.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard,70M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:03.

Consumer Behaviour 5E.indb 70 2022/03/29 11:19 AM

Chapter
REFERENCE GROUPS AND
5 SOCIAL CLASS
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain what a reference group is
■■ Discuss the various reference groups in South Africa
■■ Explain how reference groups can be used to segment the market
■■ Define and discuss what is meant by social class
■■ Differentiate between the different social class structures of South Africa
■■ Justify the use of social class as a way to segment the market for a product or service
■■ Explain what role social class plays in South African society in the acquisition of
products and services.

5.1 Introduction
This chapter focuses on reference groups and social class as group factors that
influence the behaviour and actions of consumers. Groups consumers relate to are
referred to as reference groups, and there are many reference groups in the society
in which we live. It is therefore important that an organisation is aware of the role
and importance of these groups and how they impact on their customers.

5.2 Reference groups

Reference groups play an important role in marketing. Marketers are aware that
reference groups influence their customers in the sense that they impact on how
consumers interpret information and how this interpretation affects their decision
making. The reference groups consumers identify with have a direct influence on
the types of products and services they buy as well as the brands they select and
identify with.
Reference groups are seen as a social influence that manifests in the buying behaviour
and pattern of consumers. This means that when a reference group endorses a
product, the chances are that those consumers who identify or aspire to identify
with that group will most likely buy the product.
In simple terms, reference groups are groups that consumers compare themselves to
or associate with or who the consumer aspires to associate or identify with. These
groups are generally grouped together based on the social affiliation that exists
as well as their regional proximity. Another definition is that a reference group

Consumer Behaviour 5E.indb 71 2022/03/29 11:19 AM

Consumer Behaviour

‘is a group that serves as a reference point for an individual in the formation of
their beliefs, attitudes and behaviour. Marketers frequently advertise their products
in a group setting – the family eating breakfast cereals, the neighbour admiring the
paint of the house’.1
Reference groups emanate certain behaviours, and to belong to these groups,
members are expected to adhere to these distinctive norms of behaviour. In many
instances, consumers are loosely involved with the groups, but as the consumer
becomes more and more involved with the group and the feeling to belong becomes
more intense, the more likely it is that their purchasing behaviour will correlate with
that of the other members of the group. The consumer draws on the group’s frame of
reference or value system to guide their decision making in the marketplace.
It is safe to say almost everybody belongs to a group of some kind, be it a small
group or a large one; be it formal or informal, permanent or only for a period of
time. As the influence of these groups has been pervasive, marketers have been
researching the impact these groups have on consumer behaviour.
It must also be clarified what is meant by a group. It does not have to be thousands
of people, and there are different types of groups. Simply put, a group refers to ‘two
or more individuals who share a set of norms, values, or beliefs and have certain
implicitly or explicitly defined relationships to one another such that their behaviour
is interdependent’. A group may also be defined as a collection of individuals with a
sense of relatedness, which arises from interaction. In other words, a group is defined
as two or more people with related status and roles who interact based on shared
expectations about each other’s behaviour. It is important to recognise that almost
all consumer behaviours occur within a group setting. Moreover, groups serve as
one of the primary agents of consumer socialisation. Many reference groups have an
enormous effect on our lives and choices. Between infancy and death, much of our
behaviour is devoted to becoming identified with various groups.2
The role of the reference group is much more apparent in the case where more
expensive products are bought, as when basic items are purchased. A consumer
will be influenced by a famous tennis player such as Novak Djokovic marketing a
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Seiko watch, but will not necessarily be influenced in the case of buying a packet
of chips or buying bread. The Seiko watch can be regarded as a speciality product
with a well-known brand name with a high intrinsic or economic value, so there
is more risk involved in buying the product. The influence of the reference group
could assist in lowering these risks.
We now consider the different types of reference groups.

5.2.1 Types of reference groups 3

People make choices for various reasons, and these choices are influenced by other
people (reference groups). It is human nature that we try to impress others. We like
to get compliments when we buy things and want others to think highly of us.
As alluded to above, consumers consider the opinions of reference groups in their
purchases – and these groups can be large or small, including family members or
close friends.

Roberts-Lombard,72M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 72 2022/03/29 11:19 AM

Chapter 5: Reference groups and social class

Reference groups can be categorised into two main types:

1. Primary groups
2. Secondary groups.

Primary groups
Primary reference groups refer to those with which the consumer is in contact often
or every day and can include the consumer’s family, close friends, roommates, etc.
These members from the primary groups are important to the consumer and can
have a strong impact on buying decisions. Primary groups place the consumer at ease
and generate a feeling of comfort and security as they are supportive or in agreement
with the consumer in these decisions. Normally, these groups provide honest and
clear advice, being close to the consumer. In many instances, these groups are
informal in nature.

Secondary groups
Secondary reference groups are usually more formal in nature and members tend
to speak less often with each other. They might be professionals, colleagues, seniors
at work, acquaintances at a club, etc.
In secondary reference groups, the power to influence people is less compared to
primary reference groups. People in these groups are not that comfortable in sharing
their thoughts or views on a purchase. Nonetheless, they form a very important
reference group that may be used to justify the inputs from other reference groups.
Other reference groups are discussed below.

Aspirational group
This group is very important to marketers, and many organisations link their
offerings and brands to aspirational groups that consumers are not part of but
Copyright © 2012. Juta & Company, Limited. All rights reserved.

wish to be. Think back to school days when many of us aspired to be part of the
‘cool’ group. We started to dress like them and follow them around to see what
interested them or what they liked doing so we could do the same. Consumers
will often try to dress, talk, act and even think the same way as members of the
aspirational group. Consider Siya Kolisi, the Springbok captain. Young kids and
adults all over townships and cities wish to become like him and meet him, and so
start purchasing and using all those products he endorses.
Aspirational groups can be social in nature and include various aspects like sport,
profession, entertainment, adventure, dress sense, appearance, and many more.
Marketers aim to identify their customers’ aspirations and with which types of
individual they aspire to be associated. The marketer will adapt and strengthen
the link of the organisation’s marketing offering to the values and characteristics
of these aspirational groups. In this way, the customer can more easily relate
to that group.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 73
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 73 2022/03/29 11:19 AM

Consumer Behaviour

Dissociative group
As the name indicates, these reference groups refer to those groups with which
consumers do not want to be associated. We see it often in the media where a
company categorically distances itself from the actions of its staff or an indi
vidual from a company. Sometimes consumers just dislike being related to a
particular group.
For example, some individuals make it clear that they will not buy from a particular
company as that company still uses plastic bags and is not committed to a greener
environment. In 2020, some actors supported the Republican President Donald
Trump and many moviegoers boycotted those actors’ movies, not wanting to be
seen as supportive of the president. Consumers will try all the possible ways to
avoid being associated with a particular group, and how they dress, think or act.
Thus, marketers need to understand the likes and dislikes of the consumers and also
the groups to which they belong. Marketers should recognise the extent to which a
reference group influences the consumer. It is important that they also understand
which group influences their target market the most out of all the groups.

Family
Family is a major role player in a consumer’s decision-making process. Parents,
siblings and relatives all have their own views about a particular purchase and will
share these views with the consumer.
In a family, there are a number of roles that affect the family decision-making
process, and these roles can be fulfilled by the same person or by different persons
– depending on the product and importance of the decision:
●● Influencers − Influencers are the ones who give ideas or information about
the product or service to the consumer.
●● Gatekeepers − Gatekeepers are the family members who usually panel the
information. They can be the parents or siblings who provide the information
Copyright © 2012. Juta & Company, Limited. All rights reserved.

about the product in any form.

●● Decision makers – Family members or parents who usually have the
power to take decisions on the family’s behalf are the decision makers. After
completing the research, they may decide to purchase a particular product
or dispose of it.
●● Buyers − Buyers are the ones who actually make the purchase of the product.
●● End users − The people who finally consume the product or use the service
are the ultimate consumers. They are called the end users.

Consumers get influenced by their family members as well as friends. Since

childhood, the culture consumers follow, the rituals they observe, their moral
values and religious principles usually come from their family. However, individuals
learn fashion, attitude or style from friends. All these attributes or traits together
influence a buyer’s decision making.

Roberts-Lombard,74M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 74 2022/03/29 11:19 AM

Chapter 5: Reference groups and social class

5.2.2 The use of reference groups in marketing

As stated above, it is the responsibility of marketers to identify those reference
groups that are important to their customers and how these groups influence
the behaviour of their target market in order for the organisation to decide on
a strategy to market its products and services to these customers. Marketers try
to determine the shared values and beliefs of the various reference groups, and
align their marketing activities with these values and beliefs. In general, customers
associate with certain reference groups for the following three reasons:4
1. To obtain information (informational influence): Reference groups have access to
valuable information about using a product or service, such as a new motor
vehicle or a new vacuum cleaner.
2. Reward and punishment (normative or utilitarian influence): When consumers
fulfil the expectations of a particular group, they may receive a reward (or, if
the opposite happens, they may be sanctioned). For example, if you collect
donations and canvass votes for a political party, you may eventually be
elected to the local city council. By contrast, you may be expelled from your
position as town councillor for not paying a municipal account.
3. Aspiration (identification influence; value-expressive reference groups): A person’s
aspiration to belong to a certain reference group may enhance their self-
concept. For example, by being a supporter and wearing a Protea cricket
shirt, you could be aspiring to be associated with the successful South African
cricket team.

5.2.3 Characteristics of reference groups

●● There is a shared interest in common, for example to protect the rhino.
●● Members of reference groups have a strong influence on decisions to be made
on, for example, designer clothes and brand shoes.
●● Members of the reference group are expected to adhere to certain rules and regu
Copyright © 2012. Juta & Company, Limited. All rights reserved.

lations of conduct which are established through mutual values and interests.
●● Reference groups play a valuable role in setting standards related to buying
decisions made from time to time.
●● Reference groups lead to a level of homogeneity between members.
●● Reference groups tend to establish trends regarding the purchase decisions of
specific lifestyles.
●● Reference groups often lead to the creation of aspirations in some members of
the group.
●● The opinions and actions of the members of a reference group have a major
impact on the actions and behaviour of a potential consumer. Reference groups
have unwritten codes of conduct to which individuals in the group are expected
to adhere.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 75
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 75 2022/03/29 11:19 AM

Consumer Behaviour

●● Members of the reference group have specific roles to play and the functions
that the individual assumes can be one of a gatekeeper, influencer, decision
maker, purchaser or consumer.
●● Individuals who associate with a reference group need to learn the group norms
and role expectations.

5.2.4 Reference groups and advertising

Organisations are well aware of the impact and influence the aspirations of
consumers can have on their marketing actions. Marketers who understand their
customers also know which reference groups apply to them. Consequently, they
design their advertising in such a way that the consumer can identify with the
person in the advertisement who is using the product. This identification may be
based on admiration (for example, the Springbok captain Siya Kolisi), on aspiration
(for example, to be a great golfer like Tiger Woods), on empathy (for example, with a
person or situation) or on recognition of a person. The message that is subtly brought
across is that the consumer can also achieve these heights or be as good as the person
depicted in the advertisement. Organisations who link their products and brands
however take a risk as celebrities or well-known personalities who commit mistakes
of a serious nature will ruin their careers and inadvertently damage the reputation
of the product they are endorsing. For example, many actors have been implicated
in the ‘Me Too’ campaign, which focused on the abuse of women and which has
ruined their careers. Think of Oscar Pretorius who was convicted of murdering his
then-girlfriend. He was on top of the world before it came crashing down – and the
organisations associated with him had to quickly distance themselves for the sake
of their own brands.
This concludes the section on reference groups as part of the group factors
influencing consumer behaviour. We now move on to a discussion of social class as
part of the group factors.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

5.3 Social class 5

Social class refers to the relative standing of members of a society. When unpacking
it, it means the following:
Generally speaking, higher positions imply higher status. We can say that social
class is more of a continuum, ie a range of social positions, where each member
of society can be placed. Over the years, organisations and social researchers have
divided this continuum into smaller classes, each with its own characteristics.
Thus, we go by this framework: social class is used to assign individuals or families
to a social class category. More formally, we can define social class as the division
of members of a society into a hierarchy of distinct status classes. Members of each
class have relatively the same status and the members of all other classes have
either more or less status.

Roberts-Lombard,76M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 76 2022/03/29 11:19 AM

Chapter 5: Reference groups and social class

There is no worldwide uniformity of social standing. Each country has its own
economic and socio-cultural aspects that form its social classes. Some countries
such as China have tried to have a classless society but without great success. Social
stratification is thus a reality of life. As shown in Figure 5.1, the behaviour of all
social classes is unique within themselves.

Socio-economic Social Unique

Factors Standing Behaviour

Occupation Upper Class Preferences

Education Middle Class Purchases

Ownership Working Class Consumption

Income Lower Class Communication

Social Standing: How it is derived and influences behaviour

Source: https://www.wisdomjobs.com/e-university/consumer-behaviour-tutorial-94/what-is-a-social-class-10500.html

Unique Shared Excluded

behaviour behaviour behaviour
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Shared behaviour
Source: https://www.wisdomjobs.com/e-university/consumer-behaviour-tutorial-94/what-is-a-social-class-10500.html

Figure 5.1 Shared behaviour

As indicated in the figure, unique behaviour emphasises the fact that each identified
social class displays their own buying patterns, educational level, occupational type,
recreational interests and so forth. These different social classes and the differences in
terms of the needs of the consumers in these groups imply that the marketer needs to
formulate a market strategy that addresses the needs of the particular customer group.
There are also many similar and overlapping behaviours between social classes, and
this is referred to as shared behaviour (see Figure 5.1). On the other hand, excluded
behaviour refers to behaviour in which the social classes do not indulge. They rather
try to avoid this behaviour, as it is against their standards and norms. This could be

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 77
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 77 2022/03/29 11:19 AM

Consumer Behaviour

shopping or buying behaviour, ie the customer avoids going to a a certain store as it

is seen as lower class or to a certain restaurant as it is not fine-dining.
Social classes usually meet the following five criteria:6

1. Bounded
Each social class has its own level of restrictions that either include or exclude certain
individuals, places or objects. These are tacit rules they follow by themselves. These
rules and restrictions place some limitations on the behaviour of the social class
as they share many similarities in terms of educational background, occupation,
lifestyle, etc.

2. Ordered
The structure of the different social classes focuses on a hierarchy or stratification
in terms of income, prestige and status that distinguishes them from the others.
This provides some form of order and structure to the social class and makes it
easier for consumers to relate and identify with the social class.

3. Mutually exclusive
Individuals tend to belong only to one class at a time and behave and act accordingly.
It is however part of the process that individuals migrate between the classes over
time as their education level or income, for example, changes, and their aspirations
are realised. In South Africa, we have seen this with the evolution of the social
classes. More African consumers have moved into the middle and upper social
classes due to opportunities in areas such as education and income being increased.
These individuals are commonly referred to as Black Diamonds and are upwardly
mobile and products of the economic system (see also section 3.3.5).

4. Exhaustive
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Every member of a social class must fit into some class and be identified with it one
way or another. This means there are no non-social classes and everybody fits into
one or another social grouping.

5. Influential
All classes are not the same, and their influence will differ. This implies that there
are behavioural variations between classes. It can be expected that members of
different social classes will behave differently.
Based on the criteria outlined above, it should be clear that there is no such thing
as a rigid social class structure with no deviation possible. Over the years, social
classes have been grouped into three major categories: upper, middle and lower.
Due to socio-economic changes that have been taking place all over the world, a
fourth class can be added – the working class, between the middle and lower class.
See Figure 5.2.

Roberts-Lombard,78M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 78 2022/03/29 11:19 AM

Chapter 5: Reference groups and social class

Elite of the Society These are identified by marketers

Upper Class
Low percentage of population

White Collar Middle Class Concentration of population in

Middle Class
the middle class

Affluent Working Class

Working Class
Blue (Khaki)
Collar Workers
Working class and lower
Lower Class class together form the major
Poor Low Class percentage of population
Social class system

The classes have also been classified into six categories by Warner

{ { {
Upper Upper Upper
1 3 5
Upper Middle Lower

{ { {
Lower Lower Lower
2 4 6
Upper Middle Lower

Social class system

Source: https://www.wisdomjobs.com/e-university/consumer-behaviour-tutorial-94/what-is-a-social-class-10500.html

Figure 5.2 Social class system

Warner’s index of social class uses four variables. These are occupation, income,
house and geographical area. Warner has categorised the social class into six
categories. This categorisation of social class assists marketers to better select which
Copyright © 2012. Juta & Company, Limited. All rights reserved.

target market group to focus on, understand their needs better, and to formulate
specific market strategies for each. For example, a mass marketing strategy will
probably be more suitable and effective when aimed at the middle or the lower
classes, while a more refined and exclusive strategy will be more effective for the
upper class. The upper class is a target for speciality goods and rare commodities
which depict their social status.

5.3.1 Social classes and their buying patterns

Marketers are keenly aware of the fact that social class is a strong predictor of buying
behaviour of individuals and groups as their behaviour is strongly influenced by
the social class to which they belong or aspire to belong. Social class is strongly
linked to demographic and geographic data. In South Africa, we have the Houghton,
Sandton, Waterkloof and Constantia suburbs which are very affluent suburbs and the
people staying there are generally regarded as upper-class individuals. These classes

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 79
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 79 2022/03/29 11:19 AM

Consumer Behaviour

are found living in clusters and have relatively homogeneous geodemographic

segments in terms of housing, urbanisation, lifestyle and so forth.

5.3.2 Social class and consumer behaviour 7

It is a known fact that people in the same social class react and behave similarly
in their buying patterns; they try and make the same kind of purchases as are
expected by their peers. In general, marketers aim to target their products on class-
based market segments. (See Figure 5.2 and Warner’s categorisation.)

Upper-upper class
The upper-upper social class are regarded as the social elite or the crème de la
crème of society; they come from old money or inherited money and have well-
known families. In a South African context, this would refer to the likes of Patrice
Motsepe, Johan Rupert and GT Ferreira. They stay in exclusive suburbs with large,
well-maintained properties with state-of-the-art security, have property in different
parts of the world, and send their children to the best schools. They are in the
market for aeroplanes, custom-built vehicles, rare jewellery, antiques, homes, and
exotic foreign vacations. While small, they serve as a reference group to others to
the extent that other social classes imitate their consumption decisions.

Lower-upper class
Lower-uppers are persons who have earned high income or wealth through
exceptional ability in their profession or business. Many of these individuals
moved up from the middle class over a period of time and are usually active in
their communities, social circles and civic affairs. Their spending patterns seem to
centre around symbols that emulate social standing and status, such as expensive
cars, homes and schooling. They usually strive to be accepted by their peers, to be
recognised in their social circles as being successful and to form part of the upper-
Copyright © 2012. Juta & Company, Limited. All rights reserved.

upper status group.

Roberts-Lombard,80M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 80 2022/03/29 11:19 AM

Chapter 5: Reference groups and social class

Lifestyle orientation and purchasing pattern of a social class

Social Class Lifestyle Orientation Purchasing Tendencies

Upper Class Good taste Quality merchandise; expensive

Graceful living hobby and recreation equipment,
Good things in life art, books, travel
Individual expressions
Interest in art and culture

Middle Class Respectability, confirmity, Items in fashion and related to

propriety, social esteem self-presentation; good clothing,
neighbourhood and house items
for children

Working Class Fun-oriented parochial Newest appliances, sporting

(restricted in scope) events, newest and biggest items
Unsophisticated taste
Focus on possession and not ideas

Lower Class Close family relationships Status symbol products: enhancing

No interest in world affairs self-esteem; pseudosymbols of
Neighbourhood oriented prosperity, such as used scooters;
Want immediate gratification readily available products
Source: https://www.wisdomjobs.com/e-university/consumer-behaviour-tutorial-94/what-is-a-social-class-10500.html

Figure 5.3 Lifestyle orientation and purchasing pattern of a social class

Upper-middle class
The upper-middle class do not bask in wealth or status, and they are more often
Copyright © 2012. Juta & Company, Limited. All rights reserved.

than not focused on their careers. This group consist of a large group who have
made it in many ways – but are not yet there in terms of wealth and status. These
individuals include people who have senior positions in the corporate world, have
professional status, some are independent businesspersons, and other meaningful
positions. This class has a strong leaning towards education as the backbone to social
status and achievement in life and want their children to develop professional or
administrative skills so that they will not drop into the lower stratum. This group is
generally civic-minded and are a prime market for quality clothes, homes, furniture
and appliances.

Lower-middle class
This group is often referred to as the home of the common man. Many individuals
in this group are successful in their own right and financially well-to-do, work
in well-paid jobs and are small business owners but may not have a very high
education. This class aspires for respectability. They are focused on the simpler

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 81
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 81 2022/03/29 11:19 AM

Consumer Behaviour

things in life and wish to have a well-cared-for dwelling in a safe and upstanding
neighbourhood. Marketers will direct products to this group that have respectability
and social acceptance in the society.

Upper-lower class
Unfortunately, this group represents a large part of many countries’ populations,
and South Africa is no exception. Members of the upper-lower class are working,
but many live just above the bread line. Many are day labourers and are unskilled
and are poorly paid. Often, they are educationally deficient. Although they fall
near the poverty line, they manage to maintain some level of survival.

Lower-lower class
Another class that is huge in size in many countries is the lower-lower class.
Members are poverty-stricken and usually out of work. This group is prominent in
South Africa, with an unemployment rate of over 35% in November 2021. It is also
true that many individuals are not really interested in finding permanent jobs and
most are dependent on charity, grants or family members to survive. Their homes
and possessions are dirty, ragged, and broken-down.

5.3.3 Marketing strategy and the social classes

As has been stated, the aim of an organisation is to meet the needs of its selected
target market in terms of offering the right product at the right time at the right
price and using the correct marketing communication tools. There are many tools
available to marketers to select their target market; one is the use of social classes.
Many marketers use social class as it is a better predictor of a consumer’s lifestyle
than income. Why people shop and buy differs among the social classes. The
upper classes shop for pleasure and self-fulfilment and tend to visit stores that are
exclusive, expensive and sophisticated. The upper and middle classes tend to be
Copyright © 2012. Juta & Company, Limited. All rights reserved.

more cautious in their shopping behaviour. When buying more durable goods,
they tend to indulge in greater information search and make use of a wide array
of information sources to obtain information in order to evaluate the best options
for their identified need. Sources of information usually extensively consulted
include TV, magazines, newspapers, social media and groups and individuals of
their social status.
Those individuals in the lower social classes are usually the ones that are more
focused on survival and tend to buy cheaper products and their purchasing
behaviour is less complex. They also have less information when making decisions.
They are more concerned with social relationship, and are more receptive to those
promotions that address their more basic needs, focusing on price points that are
acceptable to them.

Roberts-Lombard,82M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 82 2022/03/29 11:19 AM

Chapter 5: Reference groups and social class

Developing marketing strategy for social class

Relate status to Gather data on Position the products Marketing mix

product social class

Product Actual lifestyle Select desired image Develop marketing

Brand Desired lifestyle and correlate with mix to achieve
Usage Media usage desired lifestyle desired position
Purchase Shopping habits Product price
Motivation Promotion
Symbolic meaning Distribution
Use siatution Service

Figure 5.4 Developing marketing strategy for social class

It is the responsibility of the marketer to look at the various social classes and to
design an offering that is suitable for the respective classes they are targeting and,
in the process, take cognisance of the characteristics of each of these classes.

5.3.4 The Living Standards Measure (LSM) and the new Socio-
Economic Measure (SEM) models
One of the most important ways of describing South African social classes is
the Living Standards Measure (LSM), which was seen, until 2017, as the most
universally applied method of segmenting the South African consumer market.
The LSM is based on the standard of living of the population. The South African
population was divided into 10 LSMs, with LSM 1 being the lowest and LSM
10 being the highest. The criteria used to measure the standard of living of the
South African population include access to certain amenities such as flush toilets,
microwave ovens, retail credit cards, fridges/freezers, TV sets and hot running water.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Below is a discussion of the Socio-Economic Measure (SEM), which will be replacing

the LSM and is considered a better market segmentation tool to try and distinguish
between social classes.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 83
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 83 2022/03/29 11:19 AM

Consumer Behaviour

EXAMPLE

SEM to replace LSM

The Socio-Economic Measure (SEM) is seen as the vehicle to replace the reliance on
the traditional LSM segmentation tool. LSM has been criticised as being inaccurate
and misrepresenting the South African population. SEM is seen as a more reliable
tool to describe South African society as it is not as dependent on a list of durable
products as was the case of the LSM categorisation. Basically, the main difference
between LSM and SEM is that the latter is more focused on how and where South
Africans live. Issues that are important for the SEM for segmentation purposes are,
for instance, how near a post office and police station are to the dwelling, what the
water resources are in the area, the type of sanitation, etc. This provides a clearer
picture of the present position and day-to-day living of the population of South
Africa. Figure 5.5 compares the SEM segmentation model to the LSM segmentation
model and shows the major differences between the two.

SEM
%
17 14
13
10 10 8 9 7 7
5

SEM 1 SEM 2 SEM 3 SEM 4 SEM 5 SEM 6 SEM 7 SEM 8 SEM 9 SEM 10
34
LSM
22
%
14
11
4 5 6
0 0 3
Copyright © 2012. Juta & Company, Limited. All rights reserved.

LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10

Figure 5.5: A comparison of the SEM and LSM segmentation models

From the comparison in Figure 5.5, a different picture of the middle class comes
to the fore. SEM shows that at the lower level, there are major differences, with the
SEM model depicting the social structure of a triangle presented in Figure 5.5. The
LSM model depicts a ‘bulge’ at LSM level 6, indicating a diamond social structure
that is now considered an inaccurate representation of the South Africa population.

Social class strongly influences customer lifestyles and, in general,

is a good indicator of the type of product that a customer would be
interested in buying.

Roberts-Lombard,84M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 84 2022/03/29 11:19 AM

Chapter 5: Reference groups and social class

Moreover, people buy products to demonstrate their membership of a particular

social class and help them to advance their social standing in society (the theory of
conspicuous consumption). Products such as cigarettes, cars, clothing and jewellery
are ranked highest in terms of visibility of consumption. In a study done in Gauteng
on the newly emerging middle class and its activities and lifestyles, the following
five products were identified as conferring status on the respondents: a car, a music
centre or radio, a suit or fashionable clothing, education and a television set.

5.4 Summary
In this chapter, we discussed two of the group factors influencing consumer
behaviour, namely reference groups and social class. For consumers, the value of
reference groups lies in their being sources of information, providers of possible
rewards and groups with which they can identify. In our examination of social
class and its influence on consumer behaviour, we referred to the use of the
LSM segmentation grouping in describing social class in South Africa. The use of
SEM (a Socio-Economic Measure descriptor) as a replacement of the LSM was
also discussed.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Define reference groups and explain their possible influence in the field of
consumer behaviour with specific reference to buying innovative products.
2. Differentiate between the various reference groups that we discussed in this
chapter. Is it possible to belong to more than one reference group at the same
time?
Copyright © 2012. Juta & Company, Limited. All rights reserved.

3. Explain the use of social class as a way of determining consumer behaviour.

4. Discuss the different types of social classes and explain how marketers can
capitalise on these differences in their market strategies.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 85
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:16.

Consumer Behaviour 5E.indb 85 2022/03/29 11:19 AM

Consumer Behaviour 5E.indb 86 2022/03/29 11:19 AM

Chapter
PERSONAL
6 CHARACTERISTICS
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain the concept of personal characteristics and how it impacts on consumer
behaviour
■■ Identify and comprehensively explain the three different customer roles
■■ Discuss the influence of religion, race, gender and age on customer behaviour.

6.1 Introduction
Marketers in their marketing actions take cognisance that their customers
will evaluate and interpret the marketer’s message based on their own personal
characteristics, which are shaped by their background. Consumers all have their
own personal characteristics (for example, religion, race, gender and age) that are
shaped by their background. Many marketers use these personal characteristics to
segment their market. These characteristics, coupled with the consumer’s needs,
make it possible for marketers to differentiate between various groups of customers,
for example teenagers and older adults. Personal or individual characteristics
influence customer behaviour in distinct ways.
Each of the different personal characteristics is discussed in the following sections.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

6.2 Religion
There are many definitions of religion and many religions that consumers adhere to.
Religion can be referred to as a set of beliefs and practices generally agreed upon by
a number of persons or sects, and it deals with the supernatural or spiritual world.
It is also common knowledge that a person’s religious affiliation has a profound
impact in many cases on that person’s beliefs, moral values, perceptions and overall
behaviour, which is manifested in their purchase behaviour.
South African society reflects the diversity of religious subcultures present in
many emerging markets, as seen by the mix of traditional and organised religious
subcultures. The major organised religions include those under the Christian
umbrella (for example, Protestant, Catholic, Anglican) as well as Judaism, Islam,
Buddhism and Hinduism.

Consumer Behaviour 5E.indb 87 2022/03/29 11:19 AM

Consumer Behaviour

Consumers’ religious identity can influence what they purchase, for example,
through the symbols and rituals associated with a particular religion. For example,
the Christian celebration of Easter has led to this time of the year being associated
with buying chocolate Easter eggs, bunnies and egg-shaped sweets, as well as hot
cross buns. Rituals practised in specific religions have given rise to a demand for
particular products at certain times of the year – think of Ramadan, Hanukkah,
Christmas, and Diwali. Many major religions are also associated with particular
symbols, such as the Star of David and the Christian cross. Marketers should display
sensitivity to this, as the exploitation of these symbols for financial gain could
antagonise or offend large sections of the South African consumer market.
Religious requirements also have an impact on daily life: a good example is the
kosher and halaal certificates we often see in restaurants and fast food outlets.
Many South African food manufacturers and restaurants have both halaal and
kosher accreditation in order to be able to serve as wide a range of South African
consumers as possible. Finally, religious groups can have significant consumer
clout. Think of the massive buying power of the Zionist Church members as more
than a million pilgrims congregate to attend the Easter ceremonies at Zion City at
Moria near Polokwane each year or the thousands of South African Muslims who
undertake the annual Hajj pilgrimage to Mecca.
Research suggests that consumer religiosity has potential value in segmentation
for retailers exploiting new markets.1 There is a risk in ignoring religious beliefs
in markets where consumers are highly committed to their religion; it could have
a detrimental effect on store loyalty. Large national retail chains with stores in
regional locations with obvious differences in consumer religious commitment
levels need to consider regional promotional campaigns rather than adopting
national campaigns. This includes tailoring advertising content and the careful
selection of specific media outlets through which messages are communicated.
Failure to do so may result in reduced store loyalty, which could result in smaller
profits or even long-term damage to the retailer’s brand equity due to negative
public relations.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

6.3 Race
The issue of race has been prevalent in marketing for many years and will continue
to be because it is a trait that marketers can use to establish subcultures. Marketers
segment the market and investigate if buying behaviours vary across race. In South
Africa in the past, race was often used as a segmenting variable, but increasingly its
validity is being questioned. Race can be generally defined as the genetic heritage
group into which a person is born. Common racial groups in South Africa are black,
white, Indian and coloured. A related concept is ethnic identity, which is the ethnic
heritage into which a person is born, for example the different tribes in South
Africa. In the United Kingdom, ethnic identity includes Welsh, Scottish, British or
Irish origins. In summary, race is a biological concept that refers to the distinction
among people based on their genes, while ethnicity refers to the distinction
between people based on their national or cultural heritage.

Roberts-Lombard,88M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 88 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

We seek to make it clear that

race is a variable that marketers can use if it helps them to establish

groups whose needs and values differ.
Ethnic segments may have their own culture, language, religion and distinct
requirements. In this case, it may not always be appropriate to target them with
general products or services, or merely change advertisements in some superficial
way for them. If skins of different colours have different moisture content, for
example, then the formulation of cosmetics for each skin type should be different;
it would not be enough for the marketer of the cosmetic simply to suggest to the
consumer how to use existing product ranges that may not cater for these specific
characteristics.
This raises the sensitive issue of whether targeting ethnic segments is racist. Our
position is that if the ethnic segments differ in their needs and values, marketers
should treat them differently. This does not mean that any segment is discriminated
against; instead, their differences are noted and catered for. For example, well-
known international brands have launched shampoos formulated for black people’s
hair under the international brand umbrella as a line extension. A criticism of
many South African marketers is that race is still being used without it being a
genuinely valid variable in terms of differences in consumers’ needs, wants or
behaviour. Although this practice is diminishing, too many marketers still use it
because it is an easy variable to focus on, instead of checking to see if it really does
define differences between customer groups.

EXAMPLE

Smooth and Sleek

While developing their range of hair care products, Smooth and Sleek could not
consider only demographic variables such as age and income of their target market;
Copyright © 2012. Juta & Company, Limited. All rights reserved.

they had to consider the actual hair they wanted to treat. In other words, they had
to consider race. Their target market is black urban females ranging between
10 and 45 years of age, who want hair that looks as if they have been to a hair salon,
without going to the salon every week. As a result of extensive research, Smooth
and Sleek noted that black hair has the following characteristics:
●● It tends to be fragile and dry.
●● It tends to grow at an angle against the scalp, resulting in very curly strands
of hair.
●● The style at the time for black customers in South Africa was the curly perm,
which often dried the scalp and made the hair even more fragile.
The company subsequently developed a line of moisturising gels, sprays, con
ditioners and shampoos that catered specifically for these needs.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 89
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 89 2022/03/29 11:19 AM

Consumer Behaviour

6.3.1 Race and products

The Smooth and Sleek example (see the box above) makes the point that marketers
need to ascertain if there are valid differences between the needs and wants of
the different racial groups. If this is the case, then they should respond to these
differences. For example, in the fields of cosmetics and similar products, the
products appropriate for customers of a certain race are often inappropriate
for customers of a different race. Many major companies have taken this into
account and are now competing aggressively for success in particular markets.
Brands such as Black Like Me and Dark and Lovely have been established to suit the
black market’s needs.
Other marketers have also targeted the unique social needs of the different races.
Greeting card manufacturers design cards featuring characters of different races
and sayings from different ethnic groups, and dolls are offered in different racial
versions. Services are designed to cater for specific racial categories that have
different customs, the burial services market being a case in point.

6.3.2 Race and marketing communications

Even today, marketers mistakenly assume that all ethnic groups are the same as
other cultural groups, except for superficial differences. Marketers must explore
the needs, wants and actual differences of their markets to see if there are valid
differences. Failure to recognise possible differences between groups often produces
advertisements that have not been adequately targeted at a specific ethnic group, for
example advertisements where white actors are simply replaced with black actors
and placed in media used by black consumers, but without changing the script, the
language or the setting. It must also be kept in mind that not all messages targeted
at different ethnic groups need to differ significantly. Sometimes advertisers can
change only the race of the actors in the adverts to indicate that the product is
appropriate for the needs of a specific ethnic group. This would work when the
product, the advertising appeal and the appropriate language are the same for one
Copyright © 2012. Juta & Company, Limited. All rights reserved.

ethnic group as for another.

6.3.3 The Living Standards Measure (LSM) 2

As we have seen in the preceding chapters, the South African Advertising Research
Foundation (SAARF) aids marketers in South Africa with regard to the issue of race.
The LSM measured social class, or living standards, regardless of race and without
using income as a variable to segment the market. Also, since it was often used to
select appropriate media, its construction involved neither media-related variables
nor personal attributes (such as race). The LSM used wealth, access and geography
as major indicators in order to segment the South African market. It claimed to
cut across race and other outmoded techniques of categorising people, and instead
grouped people according to their living standard by using 39 variables as well as a
degree of urbanisation and ownership of assets and major appliances.
The LSM categorisation of the South African population ended up with 10 wealth
bands that reflected the different levels of wealth across the population. The LSMs

Roberts-Lombard,90M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 90 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

became one of the most used segmentation tools in South Africa, but the problem
was that marketers started using it as the sole method of segmentation. SAARF itself
warned against this and recommended that it be used in conjunction with other
methods. It is also a general segmentation of the population, and is not really tuned
in to a specific category – marketers who are looking for a tailor-made segmentation
profile need to consider specific variables related to their industry that may have
more industry-specific variables than the 39 variables used by SAARF.

6.4 Gender
The terms ‘sex’ and ‘gender’ are often used interchangeably to refer to whether a
person is biologically male or female. ‘Sex’, however, properly refers to the biological
differences between the species, while ‘gender’ is the traits or roles typically
associated by society with a specific sex, and is therefore a sociological term. In this
chapter we will refer to ‘gender’ to cover both concepts.3 Gender usually remains
constant throughout an individual’s life. It is of great importance to marketers
because it influences the customer’s values and preferences, as shown in Table 6.1.
The table highlights some basic differences between the sexes in terms of certain
product categories. These differences are carried through into shopping behaviour.
A study that compared shopping behaviour between men and women found that
women are social retail networkers, asking many questions and using a variety of
information sources. They prefer first to talk about their decision before they make
it. Men, on the other hand, are more likely only to read up on the information they
need without talking to others about it.4

Table 6.1: Differences between male and female consumers in terms of certain product categories

Consumption category Men Women

Food Single men of 25−34 years Women buy fresh vegetables

old spend more of their food because they tend to eat more
Copyright © 2012. Juta & Company, Limited. All rights reserved.

budget away from home than healthily. Diet foods and drinks
women (65% vs 55%). are more popular.

Clothing Predominantly white, blue, Certain fabrics are almost

black, brown, grey. Men use exclusively used by women (eg
women’s styles as indicators chiffon). Bright, full spectrum of
of women’s motivations and colours used; wider style range.
moods.

Housing More concerned with More concerned with functional

construction of house, features such as closet space,
heating/cooling system, kind size of kitchen, proximity to
of building material used. playground.
➥

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 91
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 91 2022/03/29 11:19 AM

Consumer Behaviour

Consumption category Men Women

Home decorating Focus on den or TV room (for Focus on kitchen and living
parties or to watch sports). room.

Weddings Reception key event. Ceremony itself is key event.

Concerned with reception Wedding dress very important,
hall, good food and as well as location, flowers,
socialising during reception. decorations and music.

Gender identity refers to traits traditionally seen as being typical of femininity (for
example, expressive traits such as tenderness and compassion) and masculinity
(for example, instrumental traits such as aggression and dominance). In other
words, it refers to how society thinks about a person based on the gender of that
person. This perception shapes how society and consumers view their work, careers,
personality and behaviour. These traits embody opposite ends of a continuum in
which individuals have varying levels of each trait.5 Gender roles can be described
as ‘the behaviours considered appropriate for males and females in a given society’.6
In the United States especially, the concept of gender roles has undergone a major
shift: behaviour previously considered appropriate primarily for men is now
acceptable for women too. Gender roles are ascribed roles and are therefore based on
‘an attribute over which the individual has little or no control’. This is contrasted
with achievement roles, which are based on performance criteria over which the
individual has some degree of control. Logically, individuals can choose their
achievement roles, but cannot determine their gender roles.
Even though it is common to find products exclusively or strongly associated with
either men or women – such as make-up and nail polish for women and ties and
cigars for men – for many products, the ‘gender role’ link has either diminished or
disappeared altogether. An interesting example is men’s fragrances: even though
men are increasingly wearing fragrances, an estimated 30% of fragrances produced
for men are worn by women. The growing complexity of gender identity issues
Copyright © 2012. Juta & Company, Limited. All rights reserved.

has been covered in many popular magazines, and there is much less dichotomy
between the roles and characteristics assigned to different genders – men are
wearing skirts and dresses, women are increasingly becoming the family income
earner, and gender neutrality is a phenomenon that is already here.

6.4.1 The changing role of women

There has been a shift in values regarding the role of women, away from the
traditional view of women as wives staying at home and doing the cooking and
bringing up the children, to a more modern perception of a woman’s role in
society. There is a growing acceptance of part of this change, but not all aspects
of it, and substantial resistance has occurred from more traditional groups and
those who stand to lose if the new values are accepted. A role specifies what
someone is expected to do in a given position in a particular social context.
This definition highlights the concern of marketers with the gender roles of

Roberts-Lombard,92M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 92 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

women as buying agents for their families. Traditionally, marketers and advertisers
portrayed women in limited, stereotypical roles. Women were shown as buyers
of low unit-price items, career housewives or homemakers, and not as serious,
career-oriented professionals. Today, these stereotypes are changing as a result
of the increasing number of women in the workplace and in managerial and
executive positions throughout the public and private sectors of the economy.
Women are increasingly oriented towards self-realisation, self-expression and
personal fulfilment.
Significantly, in the USA, the female population is growing faster than the male
population because the life expectancy for females is higher than for males. This
general trend is also reflected in South Africa. In addition to longevity, there is
the fact that today many more women are attending universities and developing
their own professional careers. These factors underline the increasing importance
of female roles.
The impact of women in the workplace became evident a few years ago in the USA
because that country was more egalitarian and less traditional than some other
economies. In South Africa, the process has lagged behind the American trend, but
the movement of women into corporate life is gathering strength.
Marketers were traditionally interested in women as the buyers of many of the
products used for household consumption, but this interest is now intensifying
because of the changing role of women.

The impact of women as consumers is a powerful impetus for marketers

to review their marketing efforts.
For example, women represent more than half the buyers of cars in the USA, and
they exert an influence on about 80% of all new car sales. This trend is reflected
in South Africa, where marketers are responding to this by targeting women in
their advertisements and by training their dealerships on how to market better
Copyright © 2012. Juta & Company, Limited. All rights reserved.

to women. Special training courses and videos are used to train dealer staff on
how to attract and work with female customers. Special events and promotions
are being targeted at women, financing programmes have been streamlined to
make financing easier for women, and insurance has evolved to cater to the specific
needs of women, by, for example, offering handbag insurance (the company First
for Women is an example).

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 93
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 93 2022/03/29 11:19 AM

Consumer Behaviour

EXAMPLE

What do women want?7

Marc Gobe compiled this list of what women look for as consumers. Do you think
these are still valid?
●● Respect: Women are well informed and do careful research on products.
They are also more watchful than men about harmful ingredients. Marketers
need to recognise that women are informed and intelligent.
●● Individuality: Women have many roles and want marketers to recognise this
diversity and avoid stereotypes.
●● Stress relief: Marketers need to offer solutions or at least understand the
stress faced by women in trying to balance work life with parenting.
●● Connection: Women prefer to know what the product will do for them, and
respond when marketers use a combination of emotional and rational appeals.
●● Relationship: Brands that connect with important aspects of a woman’s life
will be rewarded with loyalty, so the brand needs to build trust and not just
look for the transaction or purchase.

Examples of organisations that have responded to these themes include the hardware
chain Home Depot, which adapted its store environment and atmospherics to
present a friendly, clean, non-macho image. Sears emphasised ‘the softer side
of Sears’ in recognition of the fact that most purchases – including automotive
products – were made by women. Toyota responded to the tastes and concerns of
women by being one of the first car manufacturers to offer side-impact and head-
protection airbags. It also offered family-oriented features such as power door locks,
child-seat anchors, child-safe window buttons, and friendly, respectful service staff.
This is in response to the fact that 65% of customers servicing cars are women, and
that women bought 60% of all Toyota passenger cars sold in the USA.
The changing role of women has marketing implications. Neither the female
Copyright © 2012. Juta & Company, Limited. All rights reserved.

nor male markets is homogeneous, and there are at least four significant
female market segments:
1. The stay at home by choice housewife: The heading says it all. The wife prefers
to stay at home, married and is home- and family-centred. Her focus is on
the members of her household and she seeks satisfaction and meaning from
looking after her family. Although she is aware of the value of an additional
income if she worked, family is more important to her.
2. Trapped housewife: This woman is married and prefers to work, but stays at
home to look after the young children as a result of family pressure or a
lack of outside opportunities. She seeks satisfaction and meaning outside the
home and does not enjoy doing most household chores. She tends to have
mixed feelings about her current situation.
3. Trapped working woman: This woman is either married or single. She works,
but she would prefer to stay at home. She does not strive for satisfaction
or meaning from her work, and is frustrated by a lack of time. She feels

Roberts-Lombard,94M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 94 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

conflicted about her role and resents the missed opportunities of caring for a
family and doing volunteer activities. However, she is proud of her financial
contribution to the household.
4. Career working woman: This woman is married or single and prefers to work.
She derives satisfaction or meaning from her career rather than, or in addition
to, home and family activities. She experiences some conflict over her role if
young children are involved, but generally she is content. However, she feels
pressed for time.

Although these classifications are oversimplified, they signify the diverse nature of
the adult female population. Significantly, this diversity is declining, but the segments
are still sizeable and each has different needs and communication requirements.

6.4.2 The changing role of men

The concept of the ‘new man’ emerged in the literature at the end of the 1980s.
Traditionally, men were less involved in family shopping or child-rearing.
However, this has changed in recent years, partly as a result of the increased female
participation in the workplace, and partly because of the changing role expectations
of men as a result of the drive towards equality of the sexes. This changing role is
being reflected in advertisements, in which the ‘caring, sharing man’ is featured
more often.

EXAMPLE

New terminology
Interesting identity terminology emerged in the mid-2000s as shown by these trends
in male branding:8
●● Metrosexual: An urban male who has a strong aesthetic sense and spends a
great deal of time and money on his appearance and lifestyle.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Retrosexual: This man is anti-metro and scornful of being overly concerned

with physical appearance.
●● Ubersexual: A masculine, refined, confident male who is more focused on his
mind than his body.

It is clear that, as women’s roles change, so the roles of men will change too. Men
are now more knowledgeable about household goods, and women are buying more
durable products. However, there are still some activities that have a high masculine
bias, such as watching sport and drinking beer. Although much has changed when
it comes to gender roles, there are still some ideas that society just cannot seem
to let go of. Although men and women are now seen as equals in the workplace,
stereotypes still exist, especially in the household. In many families, the man is
still seen as the provider and the woman as responsible for household tasks such as
shopping. This can be the case, although both work and may hold equal positions.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 95
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 95 2022/03/29 11:19 AM

Consumer Behaviour

6.4.3 Non-binary marketing9

The marketing landscape has undergone major changes in the past decade and
the last three to five years have seen an even bigger change in the classification
of gender. As the marketing industry better attunes to both social justice issues
and the cultural changes spurred by younger generations, organisations and their
brands are moving away from gender-based marketing. Millennials and Gen Zs are
increasingly challenging the long-standing gender binary historically espoused by
society and marketers, and are increasingly seeking to align themselves with brands
that show a more modern understanding of the gender spectrum. It has become
imperative that organisations take cognisance of people’s diverse gender identities
in order to help their company become more aware and reach more consumers in
an empathetic and appropriate manner.
Brands offering female versions of products are more likely to be ridiculed in this
day and age, while younger generations are pushing back on what they see as
unnecessarily gendered products as part of a greater resistance to patriarchal ideals.
Marketers expect that there will be fewer gender reveal parties and more inclusion
in children’s toys as traditional toys such as trucks for boys or dolls for girls will
make place for a shift toward gender-inclusive marketing from brands – that is, toys
for anyone.
Many brands have gotten it right in embracing gender inclusivity and diversity in
their marketing. For example, Sephora ran a campaign, ‘We belong to something
beautiful’, including transgender models, and Nike ran the ‘Unlimited Courage’
marketing campaign using the first trans-Olympian in its advertising and also
offers a line of gender-neutral products.
The fashion industry is at the forefront of gender-inclusive marketing. Converse
and Vans, for example, has long been offering gender-neutral brands and have
always been ahead of the curve with fairly androgynous styles.
It has increasingly become the norm in marketing today for brands to include
Copyright © 2012. Juta & Company, Limited. All rights reserved.

LGBTQIA+ people in their ads and brands such as Starbucks, Mastercard and e.l.f.
are already leading the way.

EXAMPLE

In April 2021, the travel company Orbitz rolled out ‘Travel As You Are’, a national
ad campaign promoting inclusivity, with prominent LGBTQIA+ people, including
Cameron Lee Phan, a nonbinary Vietnamese American model. The campaign
harked back to one of its campaigns from the early 2000s when it first created ads
featuring openly gay couples, drag personalities, and celebrities.10

Roberts-Lombard,96M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 96 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

6.5 Age
Age is one of the most important variables that influences customer
behaviour.
Many marketers are acutely focused on analysing trends affecting particular
age groups, because it is easier to make accurate predictions of the future age
composition of the population than of other demographic variables such as income
or occupation. This allows them to identify potential marketing opportunities well
in advance and facilitates marketing planning.

6.5.1 Defining age

There are various meanings of the word ‘age’, and marketers must understand
exactly what they refer to when they discuss the concept:
●● Chronological age refers to the length of time (usually years) that has passed
since a person’s birth.
●● Biological age refers to changes in the human functional capacity over time.
It usually correlates with chronological age, and can be affected by diet,
lifestyle and health habits.
●● Psychological age refers to the changes in people’s self-perceptions and
cognitions, that is, the way people view themselves and others.11

Marketers must be clear about the type of age or ageing they have in mind because
it will influence their marketing decisions. Frequently, for example, there is a large
gap between a person’s chronological age and their psychological age – the person
may be 60 years old, but feel and act as if they are 40.

6.5.2 The importance of age to marketers

There are three major reasons for studying age and its impact on marketing:
Copyright © 2012. Juta & Company, Limited. All rights reserved.

1. The things that a person needs or wants change as their age changes. Think
back to what you thought you needed when you were a child and compare
this to what you think you need now.
2. Age helps marketers to calculate the lifetime value of a customer. This concept
refers to the value of goods and services a customer could buy from one
company over their lifetime. This is a highly important concept, as it forms
the cornerstone of the current emphasis of many organisations on loyalty
programmes and customer relationship management initiatives.
3. Changes in the age composition of a population correlate with significant shifts
in values and demand. The ‘greying’ of the population in Western countries,
with corresponding shifts in demand for products and services such as health
care, medicine and security, is a case in point. This is in sharp contrast to
South Africa and other emerging markets. Given the large percentage that
young people represent in terms of the total population, this means that the
youth market should emerge as the major market segment in the country,
although the older market has greater spending power.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 97
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 97 2022/03/29 11:19 AM

Consumer Behaviour

6.5.3 Age subcultures

Marketers can divide the population into cultures by using cohort analysis, which
is the process of describing and explaining the attitudes, behaviours and values
of an age group. Marketers can also use cohort analysis to predict an age group’s
future attitudes, values and behaviours. This process divides the population up
into generations, or age cohorts, which are groups of people who experience a
common social, political, historical and economic environment. Interestingly, each
generation behaves differently from the preceding one as it passes through the
generational categories.

Seniors
This generation, in general, was born between the two World Wars. There are
many factors that drove the growth of the senior sector, such as the declining
birth rate in developed countries, the ageing of the massive baby boomer segment,
and improved medical diagnoses and treatment. In the USA, for example, the pre-
Depression generation is called the mature market (the Great Depression started in
October 1929). This generation increased in numbers over the decade from 1990
to 2000. This was a result of healthier lifestyles and improved healthcare, which
resulted in longer life expectations. This cohort had tremendous economic clout
in the USA, and product categories such as exercise facilities, cruises and tourism,
cosmetic surgery and education targeted this generation as a result.12
Many seniors think of themselves as younger than their actual age. As we have
seen, perceived age represents the age that a person feels, and this often differs
from chronological age, which is the actual number of years the person has lived.
As a result, marketers who market to this segment use actors and models that are a
bit younger than this market. Marketers also stress product benefits instead of age
appropriateness, because many of these customers do not identify with products
directed at their age. Marketers sometimes segment older people in terms of
motivations and quality-of-life orientations.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

They would divide these consumers into two categories: the new-age elderly and
the traditional/stereotypical elderly. The new-age elderly are ‘individuals who feel,
think, and do according to a cognitive age that is younger than their chronological
age’.13 The improving life expectancy and better medical care, as well as the drive
to remain active longer, mean that this group will likely increase in numbers in
the future. Table 6.2 compares some of the factors defining these subgroups. In
South Africa, many of the retirement homes and villages which try to attract this
cohort often offer a wide range of lifestyle-related activities, as the assumption
that older people are not active, is not a valid one anymore. Older people are by no
means a homogeneous subcultural group, and gerontologists suggest that they are
more diverse in interests, opinions and actions than other segments of the adult
population. It has been proven time and time again that age is not necessarily a
major factor in determining how older consumers respond to marketing activities.

Roberts-Lombard,98M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 98 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

Table 6.2: Comparison of the new-age and traditional elderly categories14

New-age elderly Traditional elderly

perceive themselves to be different in perceive other people their age to have the same
outlook from other people their age outlook as they do
see age as a state of mind see age as a physical state
see themselves as younger than their see themselves as near their chronological age
chronological age
feel younger, think younger and act tend to feel, think and do things that they feel
younger match their chronological age
have greater self-confidence when it have the normal range of self-confidence when it
comes to making consumer decisions comes to making consumer decisions
are especially knowledgeable and alert have low-to-average consumer capabilities
consumers
are selectively innovative are not innovative
seek new experiences and personal seek stability and a secure routine
challenges
feel financially secure are somewhat concerned about financial security

EXAMPLE

Gerentographics
Gerentographics divides the mature population into categories based on physical
health, mental outlook and social condition such as losing a spouse or partner.
This idea can be used to divide the senior market further into four subsegments, as
shown in Table 6.3.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Table 6.3: Four subsegments of the senior market

Subsegment Reactions to life events and Characteristics as consumers

ageing
Healthy indulgers This group have experienced They strive for independent
the fewest events related to living and are good customers
ageing, such as retirement or for discretionary services such
death of a spouse, and are most as home cleaning and answering
likely to behave like younger machines, as well as high-tech
customers. Their main focus is home appliances, cruises and group
on enjoying life. travel.
➥

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 99
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 99 2022/03/29 11:19 AM

Consumer Behaviour

Subsegment Reactions to life events and Characteristics as consumers

ageing
Healthy hermits This group reacts to life events They emphasise conformity. They
such as the death of a spouse want to know that their appearance
by becoming withdrawn. They is socially acceptable, and tend to
resent that they are expected to be comfortable with well-known
behave like old people. brands. They like do-it-yourself
applications.
Ailing outgoers This group maintains positive They have health problems that
self-esteem despite adverse life may require a special diet, and
events. They accept limitations promotions will aim at bringing
but are still determined to get these people into restaurants that
the most out of life. are seen as catering to their needs.
They are a key market for retirement
homes and assisted living.
Frail recluses This group have adjusted their They like to stay in the house where
lifestyles to accept old age, they raised their families. They
but have chosen to cope with are good potential consumers of
negative events by becoming remodelling services, and also
spiritually stronger. emergency response systems. They
like high levels of personal service,
especially in financial services.

In terms of packaging, marketers must take into account the failing strength and
dexterity of seniors.15 This group finds many packages awkward and hard to open,
for example pull-tabs and zip-lock packages. Many of the so-called packaging
innovations lead to frustration for this age cohort or are difficult to handle for
those suffering from typical age-related conditions such as arthritis.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

EXAMPLE

How old am I?
Senior customers perceive themselves to be younger than their actual age across
four age dimensions, namely:
1. ‘feel’ age: how old they feel (perceived age)
2. ‘look’ age: how old they look
3. ‘do’ age: how active they are in terms of activities favoured by their age group
4. ‘interest’ age: how similar their interests are to those of other specific age
groups.

Research in the USA has highlighted the differences between actual age, cognitive
age and ideal age (the age people wish to be). Younger people want to feel older
or more mature than their actual age. After 30, however, the cognitive and ideal

Roberts-Lombard,100M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 100 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

ages drop below chronological age. This is compounded by the emphasis on

youth and youth-related products in advertisements. This could also explain the
increasing use of plastic surgery and other medical treatments in an attempt to
keep the appearance of the ‘look’ age in line with the expectations of society.
For the mid-20s group, the three measures of actual age, cognitive age and ideal age
are fairly level.

Baby boomers
This term refers to the generation born after the Second World War,
during a boom in the birth rate that lasted through to the mid-1960s. The peace
after the long years of war spurred families on to have children, and hence the
boom in the number of babies born after the war, and the term ‘baby boomers’.
This generation was born between 1946 and 1964. In the USA, this generation is
almost twice the size of the previous two generations combined. It also comprises
about 50% of people in professional and managerial occupations, more than half
of whom have at least a college degree. Because of its size, this segment was the
mass market in the USA, and as the people in this generation aged, marketers had
to change their approaches to deal with a maturing market. This was done in the
USA by showing more advertisements with older actors, to be more in line with the
demographics of the country.
This is not the case, however, in most emerging markets. In countries such as
South Africa, over 50% of the population is under 18 years of age, so care must
be taken when generalising characteristics of age cohorts across countries. The
demographics may be very different for developed countries such as the USA
compared to emerging markets such as China and Brazil. The age range of this
generation is 50 to 70, and it is characterised by family and home orientations.
Other characteristics of this generation include high education levels, high incomes
and dual-career households. As they progress through their lives, their concerns
include expenses for education, weddings and retirement.16 Marketing to this age
Copyright © 2012. Juta & Company, Limited. All rights reserved.

category was particularly appealing to marketers for the following reasons:17

●● It comprises the single largest and most distinctive age category alive today.
●● Members of this generation frequently make important consumer purchase
decisions.

This cohort lived through the hippie era and traditionally contained small
subsegments of trend-setting consumers known as ‘yuppies’ (young upwardly
mobile professionals), who influenced consumer tastes in the other age segments
of society. The term ‘yuppie’ was later generalised to reflect the behaviour and
lifestyles of ambitious, upwardly mobile professionals in any age group – the term is
therefore no longer so applicable to this age cohort, as the cohort is now significantly
older. Baby boomers tend not to like the idea of growing old. This is evident in
their usage of health clubs and the boom in vitamin and health supplement sales.
These consumers try very hard to look and feel young, and will pay whatever is
necessary to do so. Baby boomers are motivated, consumption-oriented individuals.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 101
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 101 2022/03/29 11:19 AM

Consumer Behaviour

They enjoy buying for themselves, for their homes and for others. Generally, yuppies
are financially well off and have enviable careers, but as they are now maturing,
their focus is shifting. Yuppies are thinking less about status products and more
about travelling, physical fitness and planning for enriching experiences in their
retirement. This generation is driving the growth of golf estates and retirement
villages in South Africa, as they are very powerful in terms of spending power. In
terms of the corporate world in South Africa, the composition of many boards and
management teams shows a fair representation of baby boomers, still holding the
reins of much corporate and consumer spending in this country.

EXAMPLE

Advertising and baby boomers18

Nielsen, a consumer research company, recently commented on the fact that very
few advertisements in developed countries such as the USA focus on baby boomers.
They noted that advertisements typically aim to reach consumers between the ages
of 18 and 34. Since baby boomers are characterised by dual-income families and
high-income levels, it would be wise to produce advertisements that speak to this
group. Nielsen also found that baby boomers dominate 98 out of 122 consumer
packaged goods, but, shockingly, less than 5% of money spent on advertisements
for consumer goods targets this group. In 2012, for example, the creators of
Super Bowl advertisements realised that they were missing this market, and brands
such as Volkswagen and Lipton used Star Wars themes as a means to connect with
baby boomers.

Generation X
The generation born between 1965 and 1985 is called Generation X. While the baby
boomers generally grew up with a strong economy, Generation Xers grew up in
difficult economic times, and struggled to find meaningful jobs, career placement
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and advancement. As a result, they are disillusioned and less materialistic than
the baby boomers. Their outlook is reflected in consumption patterns of products
such as rap and hard rock music. Generation Xers have often been referred to as
the ‘MTV generation’, for whom it is more important to enjoy a life that provides
freedom and flexibility.19 In fashion, Generation X is characterised by the ‘grunge’
look and the increase in the use of body adornments such as piercings and tattoos.
The stereotypical perception of this generation is that they are slackers who do not
have much drive, yet this is not actually the case. This generation has found success
and achievement through technology, where many have their own computers, use
them daily and are heavy users of internet services.
Job satisfaction is extremely important for Generation Xers. They reject the values
of older co-workers who may neglect their families in order to secure higher salaries
and career advancement. This is because many Generation Xers observed their
parents (often baby boomers) being retrenched after many years of loyalty to an
employer. It has been said that ‘while Baby Boomers live to work, Generation Xers

Roberts-Lombard,102M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 102 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

work to live’.20 They are not particularly interested in working for one company
for their whole lives and, unlike their parents, Generation Xers are in no rush to
marry, start a family or work excessive hours to earn high salaries. This means
that marketers can use global brands for this generation. Marketers have noticed
that many people belonging to this generation around the world act in the same
ways and have similar educational and income backgrounds. These common
characteristics provide cross-national marketing opportunities for products such as
Coca-Cola, McDonald’s, Levi’s, Nike, Doc Martens and MTV. Although Generation
Xers are not necessarily materialistic, they pride themselves on their sophistication.
They purchase good quality brands, but not necessarily designer labels.
They want to be recognised as a group in their own right, and marketers should
target communication at their sense of style in music, fashion and language. One
key element is that marketers need to appear to be sincere, as Generation Xers are not
necessarily opposed to adverts (unlike Generation Yers, described further on), only
to insincerity. An interesting phenomenon of this generation is that they tended
to leave home later than previous generations. Many lived at home until well into
their 30s or until they married, in order to save money or have more discretionary
income. This leads to a segment with a low total income resulting from difficulties
in obtaining meaningful work, but with a high disposable income.21 It is common
nowadays to hear that children are staying in their parents’ home longer than
usual in order to save money.
A number of other factors characterised Generation X. For example, young
Generation Xers were preoccupied with possessions and shopping. This was
the first generation to be exposed to malls from an early age, and its members
spent more time in malls than anywhere else except home or school. In the USA,
moreover, they were exposed to an average of 20 000 television commercials a year
as a result of the tendency to watch a lot of television. Average household viewing
in the USA grew from about five hours a day in 1960 to just over seven hours a
day in 1992. This heavy exposure to television meant that Generation Xers were
highly customer-oriented and ‘driven to shop’. In turn, this affected their attitudes
Copyright © 2012. Juta & Company, Limited. All rights reserved.

to marketing and promotions. They have been labelled as ‘media knowledgeable’

and the most customer-wise generation yet.

Generation Y
Generation Y comprises the children of the boomers born between 1986 and
2002. Its members have grown up in an era characterised by instantaneous global
communication, fragmented media and a powerful focus on materialism. Another
commonly used term for this cohort is millennials. The members of this age cohort
are described as pragmatic, savvy, socially and environmentally aware, and open to
new experiences. They have moved some of their TV viewing time to the internet
and are less likely than their parents to read the newspaper. Moreover, they do not
trust the stores that their parents shop in. The traditional marketing approaches
that succeeded in reaching the older generation worked less well with regard
to Generation X, and were even less effective for Generation Y. This generation
developed sophisticated decision-making skills as a result of having to shop for

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 103
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 103 2022/03/29 11:19 AM

Consumer Behaviour

themselves, as most often their parents both worked or were divorced. They are
fussy about where they spend their money and tend to shop extensively for sales
and good value.
The results of a market research study22 suggested that Generation Y people were
likely to visit retail malls more frequently than other cohorts, and therefore had a
higher probability of being exposed to short-term marketing campaigns. Since they
were more likely to be fashion fans with a positive attitude towards fashion, as well
as being impulsive purchasers, they would in all likelihood be more responsive to
retail outlets’ marketing and merchandising efforts.
An important aspect of selling to this market segment is that the customers have
carried brand loyalties through into adulthood. Perhaps the most important aspect
for this cohort was that they grew up with the explosion in technology, with home
computers and the introduction of innovations such as the iPod, iPad and MP3s.
This ability to use innovations to connect with each other through the use of
technology has led to this cohort also being called the ‘connected cohort’. The
social media phenomenon also means that this group is the most influenced by
word-of-mouth, as the ability to both give and get feedback regarding consumer
choices has been facilitated by developments in technology and its use.
In South Africa, the Born Frees – those born after the elections held in 1994 – are
an age cohort that has drawn a lot of attention from the media. This age group will
be very influential in terms of the future direction of the country, but also in terms
of the changing tastes and evolution of the South African consumer market. The
jury is still out in terms of definitive conclusions about what the trends and impact
of this group will be, but there are already research efforts such as the popular
‘Cool Brands’ survey that indicates that they are already making their voices heard
in terms of marketing influence. Marketers wishing to connect with teens need to
ensure that their campaigns and messages incorporate symbols, issues, language,
images and media that are appropriate and relatable. For example, music and
sport are extremely important to teens worldwide, so popular music and sports
Copyright © 2012. Juta & Company, Limited. All rights reserved.

personalities often appear in adverts for this market. An example of the power of
global teen influence is the global popularity of Justin Bieber, or a music group such
as One Direction. The portrayal of multiple ethnic and racial groups in adverts is
common, and urban African-American teenagers and hip hop cultural icons are
frequently style leaders for this generation. The breaking down of cultural and
ethnic boundaries is aided by the increased ownership and use of computers and
the internet. This means that trends in beauty and fashion can go global much
more quickly than before, and can reflect customer fashion from anywhere in
the world. South African marketers must be careful not to categorise everyone in
this market as ‘the youth’, since the group consists of school children, university
students and young working adults. The drive to create a ‘normal’ society in South
Africa means that global brands representing normality are powerful attractions for
this age group. Examples of this are found in the popularity of brands such as Gap,
Nike, Levi’s and Converse in South Africa.

Roberts-Lombard,104M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 104 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

Generation Z
Many authors commonly refer to those born after 2003 as Generation Z. Another
name for this cohort is the Tweens. Tweens are characterised as young people
between 8 and 12 years old. This means that they are between childhood and
adolescence – hence the word ‘tweens’. There are many restrictions and advertising
guidelines for marketers wishing to appeal to this cohort, and care must be taken
to make sure the marketing communication effort is socially and legally acceptable.
Marketers often target the decision makers (parents) to influence the purchasing
decision for the child.
However, with the high rate of exposure to both media and messages, this cohort
will probably be exposed to more marketing messages than other cohorts were at
the same relative age.

Comparing the different age cohorts

A study23 showed that the generational cohorts are different in terms of the
psychographic factors that help to explain their behaviour towards fashion.
Generation Y people are more likely to be fashion fans than the other cohorts, and
have a more positive attitude towards fashion. Additionally, both Generation X and
Generation Y are more impulsive in their fashion purchases.

Generation Yers, Generation Xers and baby boomers also differ in their
purchasing behaviour, attitudes towards brands and behaviour towards
advertisements.
The main differences between these groups can be categorised according to their
purchasing behaviour, brand consciousness and attitude towards advertisements:
●● Purchasing behaviour: Baby boomers are more narcissistic compared to
Generation X, who are seen as materialistic. Generation Y is more pragmatic
Copyright © 2012. Juta & Company, Limited. All rights reserved.

in the way that they purchase and tend to look for value
●● Brand consciousness: Baby boomers were very brand loyal, and Generation Y
are also seen to be embracing branding. Generation X was the cohort that
rebelled against the power of brands
●● Attitude towards advertisements: Baby boomers tended to respond to image-
building adverts, but both Generation X and Generation Y are suspicious of
image-building advertisements and the associated hype around them.

6.5.4 General tips for multigenerational marketing24

Multigenerational marketing appeals to the unique needs of individuals within more
than one specific generational group. Marketers need to consider how to respond to
the trend of multigenerational marketing and branding and adjust their marketing
mix and strategies accordingly. They must understand the different generational
cohorts, and know what is applicable across them, and what is unique to each one.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 105
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 105 2022/03/29 11:19 AM

Consumer Behaviour

The following guidelines can help marketers to utilise multigenerational marketing

more efficiently:
●● Marketers must understand the backgrounds, morals, values, characteristics,
institutions, lifestyle preferences and priorities of each generation. Com
munication and marketing strategies must be adjusted accordingly.
●● Marketers must recognise the different behaviour patterns of each generation
and use unique and targeted marketing approaches based on this uniqueness.
●● Generation-shaping social and economic events influence how each group
reacts. As such, marketers must be aware of how their target generations view
the world, and they must shape their marketing messages accordingly.
●● Companies will have to rely more heavily on in-depth market research
techniques, such as ethnographic research or new qualitative methods that
rely on cognitive science. These methods show promise for helping marketers
understand their consumers’ cultures.
●● Companies must market to the consistent characteristics among generations.
In other words, they must find ways in which the generations are similar,
and add these elements into their advertisements, products and marketing
strategy. For example, online games, satellite radio and smartphones
have elevated mobility, community and choice in any campaign’s list
of key considerations. Marketers must understand and embrace this
permanent change.
●● Marketers must create the image of an ageless society wherein people define
themselves more by the activities they are involved in than by their age.
Remember that grandparents could be 45, 65 or 85 years old, and college and
university students could be 20, 30 or 60. People therefore move in and out
of different life-stage events based on their interests rather than their age.
●● Marketers must avoid generational myopia, which is described as the short-
sighted application of the values and attitudes of their own generation to the
development of strategies for marketing to another generation.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

CASE STUDY: Tropika

Tropika, a dairy fruit juice mix brand, was launched in South Africa by Clover in 1984.
Tropika had consistently held its position as the number one dairy fruit juice mix
brand, with 56% of the market share in 2003. The main challenge faced was how
to ensure further growth for a brand already occupying the number one position.
When assessing the category market, a critical factor is the target market context
in terms of brand challenges with the different LSM groups, consumption patterns
and user occasions. The dairy fruit juice mix category mainly targets LSMs 5−10.

Roberts-Lombard,106M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 106 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

This is due to the fact that the market consisting of LSMs 1−4 has limited access to
these products (due to limited distribution in low-end chains) and also limited access
to the electricity necessary for refrigeration. In addition, price becomes a critical
barrier for Tropika due to its premium level. Therefore, LSMs 1−4 are mostly limited to
products such as concentrates, long-life juices and cheaper alternative beverages.
LSMs 5−7 do form a feasible market, but this market is more challenging to reach
because it contains a broader range of beverages. Here Tropika becomes a premium
choice or an ‘upgrade’ from the normal selection of soft drinks and other beverages.
The market is mainly attracted to aspirational beverage brands such as the leading
soft drink brand. Lastly, the market comprised of LSMs 8−10 is hard to reach
because it is highly competitive, with consumers having access to an even wider
variety of beverages. The result is that Tropika is just another option among many.

Table 6.4: Key challenges and threats in various LSM groups

LSM 1−4 LSM 5−7 LSM 8−10

Challenges ●● Affordability ●● Affordability Huge selection of choices

●● Refrigeration ●● Broader
●● Convenience consideration set

Threats ●● Concentrates More aspirational Wider variety of beverages

●● Long-life juices beverage categories available, such as 100%
fruit juices, energy drinks,
●● Low-cost juices
soft drinks and flavoured
milk

From volume sales figures, it was evident that the key challenges Tropika faced
were that volume sales had stalled at 35 million litres in 2003, and the brand was
no longer experiencing any significant growth. Overall, the brand was in a phase
of stagnation, despite ongoing marketing efforts. Three key contributing marketing
Copyright © 2012. Juta & Company, Limited. All rights reserved.

factors where highlighted: broad target market focus, intrinsically based diffraction
and inconsistent communication.
The first important factor was Tropika’s target market focus. Traditionally, Tropika had
been focusing on a broad market, namely LSMs 5−10, with no identified segments
or specific focus. This was the key concern, as the brand had a limited budget
(an estimated above-the-line media budget of R5 million per annum). Therefore,
current communication efforts had limited support and were targeted at a wide,
undefined audience. Second, the brand’s key differentiating factor was based on
something intrinsic to the product, namely the distinctive ‘smoothness’ derived from
the blend of dairy and juice, which was perceived by consumers as being unique
to the dairy fruit mix category compared to other beverage categories. Tropika
as a brand was built on the intrinsic ‘smooth’ experience of the product, which
was captured by the original slogan: ‘Tropika: smoothest taste under the sun’.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 107
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 107 2022/03/29 11:19 AM

Consumer Behaviour

However, this intrinsically based differentiation had become generic to the category
and held no special meaning for consumers. As mentioned previously, Tropika had
a broad target market focus, with limited budget to support its marketing efforts.
The first proposed solution Joe Public, their advertising agency, offered to Tropika
was to identify a lucrative market that the company could focus on for future growth
and at which it could target its brand communication. At the time, in 2003, Tropika
had investigated its market and found out that the South African black middle class,
defined as LSMs 5−7, was the fastest-growing segment in South Africa, accounting
for more than 35% of the total adult population The black middle class had grown
by 30% in just over a year, and its collective spending power had risen from
R130 billion to R180 billion. The class was predominantly made up by the youth:
55% of its members were between the ages of 16 and 24.
Within the black middle class, the youth segment aged 16−24 proved lucrative
in terms of beverage consumption because Tropika’s investigations revealed that
more than 50% of this market segment were heavy consumers of any fruit juice
or fizzy drink. Furthermore, its investigations found that the segment size was
increasing year-on-year compared to other youth age groups, for example those
aged 0−15 (fertility was on the decline) and aged 25−34 (AIDS mortality was on the
increase at the time). Therefore, the black youth market (LSMs 5−7, aged 16−24)
was identified as a feasible target market that Tropika could focus on for future
growth. However, in order to effectively target this segment, Tropika and Joe Public
needed to understand the key psychographics that characterised this market.
At the time, the rising black youth were seen as very brand-conscious and aspired
to buy brands that elevated their social status. They invested a great deal of money
in leading clothing brands, the latest cellphones and fashion accessories. The
black youth were focused on improving their image and they invested in brands that
complemented that desired image. They had a ‘live for today’ attitude rather than a
long-term outlook on life. Tropika’s external study, conducted by Janice Finley and
Associates, indicated that this group had a strong nostalgic link to the dairy fruit mix
category, but that they continued to explore other aspirational beverage options.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Therefore, if a brand such as Tropika were to grow in popularity among the rising
black youth, it would have to reinvent its positioning to remain relevant to a status-
conscious, ‘live for today’, youthful mindset.
In order to capture the attention of the rising black youth market, Tropika needed to
build on the brand’s position around ‘smooth’ in a way that would be relevant and
that would resonate with the new target segment. Due to the target market’s desire
for status, image and aspirational brands, Tropika therefore focused on developing
a positioning based on the extrinsic (emotional properties) of smoothness, rather
than on the product-related (intrinsic) aspects. The term ‘smooth’ is, in fact, Tropika’s
trademark to this day. The brand has continued to build on this positioning, and has
used the reality show format on television in recent years to build on and expand
awareness and relevance of the Tropika brand.

Roberts-Lombard,108M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 108 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

6.6 Summary
In this chapter, we studied the personal characteristics that influence customers’
behaviour. These include religion, age, gender and race. Although the makeup of
South African society in terms of these characteristics is unique, there are universal
trends that marketers must consider when adapting their marketing activities to
take these characteristics into account. Our discussion emphasised that marketers
must beware of stereotypes, which are often outdated and not representative of
the realities in South Africa today. Moreover, marketers must take cognisance of
how members of specific subcultures interact to influence purchase decisions, as
consumers may be members of several subcultural groups simultaneously.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Define and give examples of the personal characteristics of customers.
2. Explain how marketers should take race and religion into account in terms
of designing the product and marketing communication aspects of the
marketing mix.
3. Briefly explain, in about half a page, what the LSM is.
4. Discuss the changing role of women and how marketers should take
this into account.
5. Explain the different meanings that can be associated with the word ‘age’.
6. Discuss three reasons why marketers should study age and its impact
on marketing.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

7. Explain the action marketers should take if they want to connect with Generation
Y customers in South Africa.
8. With reference to the case study, answer the following questions:
A. How did issues of age affect the marketing of Tropika?
B. Evaluate the rationale for the Tropika campaign – is this rationale still
valid today?

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 109
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 109 2022/03/29 11:19 AM

Consumer Behaviour

Multiple-choice questions
1. Which one of the following statements about the payer role for customers
is incorrect?
A. Discrimination in terms of credit limits based on race limits affordability for
some customers.
B. In some societies, the payer role may be allocated based on gender.
C. The amount of financial resources may be influenced by age.
D. The type of payment chosen by the payer is not affected by the religion of
the payer.
2. Choose the phrase that best completes the sentence.
Consumer religious identity …
A. influences purchases very seldom, as it has little influence on purchases
B. influences purchases only if the marketer uses it in segmentation
C. influences purchases through the symbols and rituals associated with the
person’s religion
D. only affects the values of the person, but not their behaviour.
3. The ethnic heritage into which a person is born is called …
A. race
B. ethnic identity
C. physiological characterisation
D. racial profiling.
4. The major variables used in the LSMs to segment the South African
market include …
A. race, wealth and geography
B. income, wealth and geography
Copyright © 2012. Juta & Company, Limited. All rights reserved.

C. race, income and lifestyle

D. wealth, access and geography.
5. Which one of the following statements about gender is correct?
A. Gender refers to the biological differences between the sexes.
B. Gender identity refers to traits perceived as feminine or masculine.
C. Ascribed gender roles are those over which the individual has some control.
D. Achievement gender roles are based on attributes over which the person
has little control.

Roberts-Lombard,110M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 110 2022/03/29 11:19 AM

Chapter 6: Personal characteristics

6. A woman who works but is frustrated by her lack of free time, and who
experiences some conflict between the family role and the working role, is
described as a …
A. traditional housewife
B. trapped housewife
C. trapped working woman
D. career working woman.
7. Thomas is 44 years old. He thinks that many of his friends have grown old
before their time. Thomas makes an attempt to stay healthy by going to the
gym and also by making sure he dresses fashionably. He keeps up to date with
what is happening with the younger crowd, as he feels more attuned to their
values and lifestyle.
One can say there is a large gap between Thomas’s __________ age and his
__________ age.
A. chronological; psychological
B. chronological; biological
C. biological; psychological
D. physiological; psychological.
8. Which one of the following statements about age is incorrect?
A. There are significant correlations between the age composition of a
population and shifts in values and demand.
B. The process of explaining the attitudes and behaviours of an age group is
called cohort analysis.
C. Cohort analysis can be used to divide a population into cultures.
D. Cohort analysis is mostly descriptive and not predictive of behaviour.
9. When senior customers engage in the activities favoured by their age group,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

this is called the ___________ age.

A. feel
B. look
C. do
D. interest.
10. The generational cohort more likely to be responsive to retail outlets’ marketing
and merchandising efforts is called _____________.
A. seniors
B. baby boomers
C. Generation X
D. Generation Y.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 111
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:30.

Consumer Behaviour 5E.indb 111 2022/03/29 11:19 AM

Consumer Behaviour 5E.indb 112 2022/03/29 11:19 AM

Chapter
CUSTOMER PERCEPTION
7 AND LEARNING
Learning outcomes
After studying this chapter, you should be able to:
■■ Discuss and explain the nature of perception
■■ Illustrate the implications of the perceptual process
■■ Highlight the marketing implications of perception
■■ Explain the nature of learning
■■ Explain the elements of learning
■■ Illustrate the marketing implications of the various learning theories.

7.1 Introduction
According to research, it is generally accepted that as much as 33% of customers will
switch brands – one that they love – after only one bad experience. This indicates
how important it is to manage customer expectations and to ensure that the
organisation keeps the customer happy. It is also clear from this fact that traditional
competitive advantages the company has had in the past through prices, features
and applications are fast being superseded by the perception that a customer has of
the brand and the level of service he or she receives. Companies who do not stay in
touch with the experiences their customers have with the company and its products
stand to be marginalised in future as their competitors may be investing in their
customers’ experiences with their brand. It has become critical for organisations to
Copyright © 2012. Juta & Company, Limited. All rights reserved.

design their marketing efforts in such a way that customers will pay attention to
their messages and interpret and understand these messages as was intended by the
marketer. With technology and digital marketing becoming more and more relevant
and to the fore in marketing actions of companies, it has become imperative that all
media is used to influence the perception that customers have of the organisation
and its products. Marketers are particularly interested in how customers perceive
external information, how they select and attend to various sources of information,
and how they interpret and give meaning to this information.
In this chapter, we investigate what the customer perception process is and what it
means for customers to be perceivers and learners. We look at the nature of perception
and the perceptual process, exploring how customers ‘defend’ themselves against
incoming stimuli – that is, messages that impact on our consciousness – and what
marketers can do to overcome these perceptual defence mechanisms. We explain
how learning occurs and how customers learn to respond to their environment.

Consumer Behaviour 5E.indb 113 2022/03/29 11:19 AM

Consumer Behaviour

We highlight the fact that customer behaviour is largely learnt behaviour, and that
the way in which customers learn is of immense importance to marketers, who
want customers to learn about their particular products or services.

7.2 Defining customer perception

There are numerous definitions of customer perception but in essence, in marketing,
customer perception refers to the awareness of customers regarding a company, its
brand, its values and products, as well as their impressions and opinions regarding
these elements. These perceptions are formulated, influenced and changed as
a result of various interactions between the customer and the company and its
products or services, of which these interactions can be direct or indirect. The
interaction of the customer with reference groups, families and friends, media
consulted, articles, tweets, Facebook postings and so forth will all influence the
customers’ perceptions.
Perception directly impacts on the costumers’ buying decisions as the experiences
that customers have with a company, brand or product will shape the customer’s
decision-making criteria and their resultant decision to buy or not to buy. Companies
who therefore have an understanding of customers’ perception and what impacts
and influences these perceptions are in a better position to improve the customer
experience – and increase the positive view or perception the customer has of the
company or products.

7.3 The customer perception process defined

Perception is driven by more than logic. The perceptions that customers have of a
company’s brand, products and services, and values can and will affect the nature
of their interaction with the company and how and if they buy from the company.
It is therefore clear that if a company can foster positive perceptions amongst
Copyright © 2012. Juta & Company, Limited. All rights reserved.

customers, it can assist in building a loyal, supportive and sustainable customer

base that can increase the lifetime value of its customers.
As indicated above, a company should aim to improve the customer experience
but this is not as straightforward as it sounds if companies do not know if they are
creating value for their customers at all. Companies who want to see themselves in
the same way their customers see them need to understand the three phases of the
customer perception process. These three stages refer to sensing, organising and
reacting and how they influence the behaviour of customers:1
1. Sensing/selecting. Customers use their senses of feel, sight, smell, hearing and
taste to ‘gather’ information about a brand, company, product or service.
2. Organising/interpreting. In this phase, customers interpret the information
they have gathered and analyse its value based on their own set of personal
beliefs, their own view of themselves, and other subjective criteria. This will
enable them to criticise and compare the information to other objects in
their selected category.

Roberts-Lombard,114M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 114 2022/03/29 11:19 AM

Chapter 7: Customer perception and learning

3. Interpreting/reacting. Based on their sensing and organising of the experiences

they have had, customers will act, but this will also be influenced by internal
and external stimuli from their own experiences as well as online reviews.
In general, all customers go through a similar process of evaluation before
making a decision.

Marketers who are aware of these factors and how customers move through these
phases are in a better position to influence customer perceptions positively.

7.4 The importance of customer perception

Over the years, marketers have come to realise the value and importance of
perception on customer behaviour. Perception does not only affect a sale; it forms
long-term relationships – positive or negative – between the customer and the
company, its brand and its products and services. In fact, each contact or interaction
the customer has with the company, brand or products, has a chance to formulate
an opinion of the company – that is their perception of the company. These are
called moments of truth and must be managed by the company.
In today’s digitalised world, it is clear that the perception of a brand is not limited
to the quality and price of a brand but that the brand’s reputation is reliant on the
customer’s perceived value towards the product.
Marketers therefore need to strive to cultivate positive customer perceptions to
differentiate themselves from competitors. In order to achieve this, marketers must
identify and concentrate on those elements that have the most profound effect on
customers’ perceptions.
Some of the more tangible factors that impact on customers’ perceptions include
the following:
●● Quality. Quality means different things to different people and the marketer
needs to focus on those attributes of a product that are most important to
Copyright © 2012. Juta & Company, Limited. All rights reserved.

a customer. It may, for example, be the durability of the product, or the

smoothness of a product.
●● Service. Today’s customer expects the best service and will not hesitate to
complain on social media if they are not satisfied with the service they get.
The quality of service is generally regarded as the one factor that can change
customer perception immediately. The customer may have had 10 good
experiences but one bad experience can change their perception instantly.
●● Price. Price has always been seen as a factor that influences a customer’s
perception. However, the new generation of customers is less influenced by
price alone and does not necessarily regard a high price as equal to high
quality. Today, customers are more focused on the perceived value they get
from a product – low price is no longer regarded as low quality.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 115
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 115 2022/03/29 11:19 AM

Consumer Behaviour

●● Branding. Companies spend millions of rands on the branding of their

products, their packaging, logos and other marketing materials, and they
need to ensure that these elements are in line with the expectations of
customers. In that way, it helps to create a positive perception of the company
and its product.
There are also less tangible factors that impact on customer perceptions. These
include the following:
●● Advertising and social media platforms. The mediums used by companies,
including what and the way things are said about the company and its
products, can have a negative or positive connotation with customers.
Companies need to be wary of the level of influence these mediums have on
consumers’ perceptions.
●● Influencers. We see the relevance and role of influencers on customers’
perceptions in all types of social media platforms. Facebook, Instagram,
Twitter and various other platforms have people who can strongly influence
the perception that followers have of a company or its brands. A recent
statement on TV by a world-famous soccer player who moved his bottle of
Coca-Cola to the side during a post-match conference and stated that people
should drink water led to a drop of nearly US$4 billion in the share price of
Coke. This is an indication of how strong the influence of an influencer can
be. Influencers are people that customers trust and they are of the biggest
factors impacting on customer perception in today’s digital world.
●● Reputation. Companies invest a lot of money in their brands to establish and
build their reputation. These reputations are forged from the experiences
that customers have with the company and its products and services.
While marketers strive to manage these brand reputations, sudden events can
destroy or damage the brand without warning. Today, political correctness
in all areas is extremely sensitive; a small blunder can be blown up into a
disaster – especially due to the instant nature of social media. There will
always be somebody with a camera to record such an event.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

7.5 The customer as a perceiver

7.5.1 The nature of perception
Perception is the process by which people select, organise and interpret stimuli to
form a meaningful picture of the world through the senses of sight, sound, smell,
touch and taste.
In other words, it is the way in which buyers interpret or give meaning to the world
around them. In simple terms, we can say that perception is the following process:
1. An individual is exposed to a stimulus.
2. The stimulus attracts the individual’s attention.
3. The individual interprets the stimulus based on certain criteria.
4. The individual responds to the stimulus in a certain way.

Roberts-Lombard,116M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 116 2022/03/29 11:19 AM

Chapter 7: Customer perception and learning

Perception is selective; that is, we notice only a small number of the stimuli in our
environment, and of these, we attend to an even smaller number. Second, each of
us interprets the stimuli subjectively, that is, according to our unique personalities,
biases and needs. Third, perception is based on our personal experiences. Evidently,
the second and third factors are connected, as a person’s nature and their experiences
together constitute that particular person’s makeup.

Perception is selective
Although customers are exposed to a huge amount of information on a daily
basis, they attend to only a relatively small percentage of this information, which
is then processed in our brains for interpretation. This process is referred to as
perceptual defence. It implies that customers decide, amongst the many marketing
messages they receive, to which messages they will attend and how they will react if
they do.

Perception is subjective
Customers interpret what they see in a subjective manner – that is, they see and hear
what they are interested in based on their own value systems, their experiences,
interests, beliefs, and so on.

Perception is based on the individual’s frame of reference

Perception is a product of the experiences that a customer has had. As the customer
experiences certain situations, meaning is given to this and manifested in a future
situation. These meanings do not stay constant; they change as we experience
particular things and give meaning to them. For example, if you go to a restaurant
and the fish presented to you smells and tastes off, you will be upset and most likely
not go back to the restaurant. This is due to the newly formed perception of the
restaurant based on the last moment of truth – or interaction. Your experience with
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the one dish during the one visit has moulded your perception of the restaurant.
We now consider this perceptual process more closely.

7.5.2 The perceptual process discussed

Perception is the process of selecting, organising, and interpreting information
and includes the perception of select stimuli that pass through our perceptual
filters, are organised into our existing structures and patterns, and are then
interpreted based on previous experiences.2 The question is how do customers filter
through the masses of information, interpret it, organise it, and find meaning in
it. The perceptual process ultimately forms a customer’s perception of a company,
product or brand compared to that of others.
The perceptual process consists of four stages, namely exposure, attention, inter
pretation and memory (or recall).

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 117
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 117 2022/03/29 11:19 AM

Consumer Behaviour

Exposure
Exposure refers to the extent to which a person takes cognisance of stimuli via their
five senses but our perceptual field includes so much more from the world around
us that our brains cannot make sense of it all. Customers are bombarded on a
daily basis with information from all types of media – radio, magazines, television,
the internet and social media, billboards and many more. Some authors put the
number of advertisements a person is exposed to per day at 3,000; these exposures
come via the internet, television, cellphones, Facebook, newspapers and outdoor
signs. It stands to reason that not all of these advertisements will or can be taken
in by the customer – some selection takes place to filter this exposure to this mass
information. The selection of information that we see or hear is called selective
exposure.
This selective exposure that customers have is based on the experiences they have
had or the interests they may have; the stimuli they are exposed to are mainly
self-selected. Customers consciously ignore those messages they do not want to
see or hear, or have no interest in. Customers therefore seek out certain things –
advertisements they have an interest in, the shelf displaying the products they are
interested in, salespeople or other sources of information – while avoiding others.
All this is in line with their own needs and interests. For example, people who do
not eat meat will most likely ignore advertisements promoting meat products.
Because customers are exposed to so many advertising stimuli, marketers are
becoming increasingly creative in their attempts to gain exposure for their
products.3 One of their solutions is to put adverts in unconventional places where
there will be less competition, such as on the backs of shopping trolleys, on walls in
sports stadiums and even in restrooms, where the marketer has a ‘captive audience’.
Therefore, the proper approach in media planning would be to determine which
types of media customers in the target market are most frequently exposed to, and
then to place the advertisement in those media.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Attention
As you know from sitting through both interesting and boring lectures, this
allocation can vary according to the recipient (that is, your mental state at the
time) and the characteristics of the stimulus (that is, the lecture itself). Of course,
attention always occurs in the context of a situation. Therefore, we can say that
attention is determined by the individual, the stimulus and the situation.

Attention is determined by the individual

As it is impossible for customers to take in each of the thousands of messages and
images they are exposed to every day, they tend to only pay attention to that
information that they regard as in line with their interests or needs. This is referred
to as selective attention.
Interest is a reflection of overall lifestyle as well as a result of long-term goals and
plans (such as becoming a scientist) and short-term needs (such as quenching a

Roberts-Lombard,118M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 118 2022/03/29 11:19 AM

Chapter 7: Customer perception and learning

thirst). For example, a young woman who has just started her first job may find
that, while she never noticed advertisements about medical aid before, now that
she needs medical aid, she notices every advertisement about it.
The same thing will happen when she decides to buy a new car or a laptop. If she
is interested in buying a new laptop, and she is paging through a newspaper, it is
likely that she will pay attention to an advertisement about laptop computers while
ignoring advertisements that have no meaning to her.
It may be that a person’s attention is initially attracted by, for example, noise or
irritating sounds. This is, however, only the first step, and any further processing
of this depends on the personal interest the featured product or service may have
for the recipient. Thus, people will pay attention only to those messages that are
in line with their personality, experience, attitudes, their image of themselves and
their social and cultural environment.

The stimulus determines the attention level

Marketers need to understand the factors that determine attention and apply them
to their messages and packaging in order to boost their chances of cutting through
the clutter of a multitude of stimuli to command the customer’s attention. It is also
a fact that unique stimuli are more easily noticeable – in other words, they must
differ from other stimuli. This uniqueness can be achieved in a number of ways:
●● Size and intensity: Size can matter. A full-page advertisement in a
newspaper, for example, is more noticeable than an advertisement of two
columns. The number or frequency of insertions of the same advertisement –
or the number of times it is flighted on TV or on the radio or on social media
– has an impact on the level of attention by consumers. The intensity, such
as the loudness, brightness and length of time one is exposed to the stimulus,
works in much the same way and can increase attention. For example, the
longer a message in an advertisement is displayed on the TV screen, the more
likely it is that consumers will notice and remember it.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Colour: This is a powerful way of drawing attention to a product or giving it

a distinct identity. A bright colour such as Vodacom uses is attention-grabbing
and noticeable. However, if used incorrectly, colour can be distracting or
even unnoticeable, thereby negating the positive effects of the message and
leading to the message not being effectively conveyed. For example, if a
retailer makes use of a bright blue display in a store where there are already
a number of other displays that are also bright blue, it is unlikely that the
display will stand out and attract attention.
●● Position: Stimuli that appear in places where we are more likely to look
stand a better chance of being noticed. Objects placed near the centre of
the visual field are more likely to be noticed than those near the edge of the
field. This is a primary reason for consumer goods manufacturers competing
fiercely for eye-level space in supermarkets. Similarly, advertisements on the
right-hand page of a magazine or newspaper receive more attention than
those on the left.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 119
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 119 2022/03/29 11:19 AM

Consumer Behaviour

●● Isolation: This is the process of separating a stimulus object from other

objects. Volkswagen used this strategy very effectively some years ago when it
took out a full-page advertisement in a Sunday newspaper and in the middle
of the page spanning only about 3 cm by 3 cm placed its Volkswagen logo.
This immediately attracted the reader’s attention to the spot.

Attention is determined by the situation

Noise in the background, time pressures and moving objects in the environment can
and will affect the main stimuli, such as the packaging or the radio advertisement.
For example, a waiter who treats customers with politeness but not friendliness
might be considered unfriendly in a low- to mid-priced mass-market restaurant
such as Spur, while customers in an upmarket restaurant may well consider them
as being respectful. The clearest illustrations of the effect of the situation on the
perception of marketing stimuli are blind-taste test studies, such as studies of beer
taste. In these tests, customers pick the brand they think is their usual or favourite
brand, even when the brand names have been switched. The participants’ taste
perceptions are influenced by the context that the brand name provides.

Interpretation
Selecting and organising incoming stimuli is something that happens fairly
quickly and without much thought, but interpreting the information is a much
more focused, deliberate and conscious process. Here we assign meaning to our
experiences through our mental processes. The fact that a consumer is exposed to
a marketing message and attends to it does not guarantee that they will react in
line with the expectations of the marketer. The consumer still needs to interpret
the marketing message in the way the marketer wants them to interpret it. The
third stage of the perception process, therefore, is interpretation, which is the
meaning that a person assigns to sensory stimuli. People do not all perceive stimuli
in the same way, and they also do not assign the same meaning to these stimuli.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Customers may be exposed to the same stimuli but each will interpret it differently
as individuals tend to interpret information according to their existing beliefs,
attitudes, general disposition and experiences – in other words, the subjective
qualities and frame of reference we referred to earlier.
Interpretation is therefore also selective. Selective interpretation occurs when stimuli
are perceived, but the message itself is not interpreted as it was intended to be.
There is always the risk that the customer can interpret the marketing message
differently as to what the marketer has intended to bring across. Customers
may unintentionally distort a message or do so intentionally to fit in with their
likes, dislikes, prejudices and attitudes. Many customers will, after buying a
product and reading something negative about it, distort the information to
make it more consistent with their earlier view that the product is better than the
competitor’s product.

Roberts-Lombard,120M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 120 2022/03/29 11:19 AM

Chapter 7: Customer perception and learning

A message can be distorted by levelling or by sharpening:4

●● Levelling: This means that individuals ignore an important piece of
information or point in the marketing message, or that they simplify the
message (perhaps by removing dissonant elements) so that it becomes more
acceptable. For example, warnings against the dangers of smoking, which by
law have to be included in advertising and on the packaging of cigarettes, are
likely to be ‘screened out’ by habitual smokers.
●● Sharpening: This means that the customer reads additional information
into the message by adding new elements to make it fit in with his or her
predispositions and value systems. For example, people who are especially
interested in cooking and baking may be sensitive to any information and
advertisements about fresh products, recipe books and cooking shows. They
may tend to add new dimensions to some of this information to support
their beliefs and practices.

As a brand name is generally associated with certain expectations regarding the

product’s performance and its attributes, marketers rely heavily on signs and
symbols in marketing messages, and sometimes turn to a field of study known as
semiotics, which examines the correspondence between signs and symbols and the
perceived meaning that customers assign to them. For example, the use of a skull
on product packaging indicates that the product contains hazardous chemicals, a
picture of a rabbit indicates that the product is not tested on animals, and a ‘V’ on
a food product indicates that vegetarians can eat this product.5

Recall (memory)
The last stage of the perceptual process is recall. Very few people, if any, will
remember everything they see or hear, even after attending to it and interpreting it.
Customers tend to forget the marketing message when they are actually making the
purchase – that is, at the point of purchase – even if they have perceived it correctly.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

To avoid this, marketers use point-of-purchase promotions to remind the customer

of their messages and products.

7.6 Customer learning

7.6.1 The nature of learning
All aspects of the individual – perception, needs, motives and attitudes – are either
directly or indirectly determined and influenced by the ability of the customer to
learn. In addition, the external determinants or group factors that affect customer
behaviour – the family, culture, social class and reference groups – greatly influence
the individual as he or she learns and experiences in these contexts and situations.
Any facet of people’s behaviour is therefore dependent on what they learn and
remember about objects and situations. In other words, the whole decision-making
process is dependent on past learning situations.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 121
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 121 2022/03/29 11:19 AM

Consumer Behaviour

There are two types of learning, namely experiential learning and conceptual learning:
1. Experiential learning can generally be defined as an engaged learning process
people learn by doing something and then reflecting on the experience.6 For
example, you see an advertisement for a new sushi bar near your house, and
you decide to try it out. If the sushi does not taste good or if it is not fresh,
you will probably not eat there again.
2. On the other hand, with conceptual learning, there is no direct experience. For
example, your friend tells you that the sushi at the new place is not good. You
have learnt that you would not like the new sushi place, without even trying it.

The process of learning continually evolves and changes as a result of newly

acquired knowledge or experience. Both such knowledge and experience serve as
feedback to the individual. Consequently, all the individual’s future behaviour is
based on this knowledge or experience. Put simply, learning is a change in the
content of long-term memory. As humans, we learn because what we learn helps us
to respond better to our environment. An experienced make-up artist learns from
experience that it is better to buy expensive cosmetics than cheaper alternatives
because they last for a longer time and look better in photos. As customers, we face
a marketplace environment of a multitude of product and service choices, and we
learn to adapt and respond to this environment. We now consider the elements of
learning – in other words, how individuals learn.

7.6.2 The elements of learning

All individuals learn, but not every individual learns the same things, nor do
they learn at the same speed or in the same way. The basic elements of learning
– stimulus, response and reinforcement – shown in Figure 7.1 are found in all
learning, but there are differences in their use and application.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Stimilus

Response

Reinforcement

Figure 7.1 Elements of learning

Roberts-Lombard,122M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 122 2022/03/29 11:19 AM

Chapter 7: Customer perception and learning

Stimulus
The first requirement of learning is a stimulus, which is something that stimulates
the learner’s interest.

Marketers can stimulate customers using physical objects such as

products, brands and size, or intangibles such as service, quality and
satisfaction.
Once customers have perceived a stimulus, they must be motivated to seek the
object before learning occurs. Motivation thus acts as a spur to learning, with
needs and motives serving as stimuli to learning. If the motivational driving force
is strong, customers will learn quicker. For example, a person who wants to become
a photographer will be motivated to learn all there is about taking pictures and
editing them. This person will spend a lot of time on the internet to read up on
Photoshop if they have ‘learnt’ that it is vital for a photographer to be able to use
this program.

Response
Motives stimulate learning, while the cues are the stimuli that give direction to the
motives. The advert is the cue or stimulus that suggests a specific way to satisfy a
particular motive. This may cause a customer to respond.

A response is any action, reaction or state of mind resulting from a

particular stimulus or cue.
The same response to a stimulus may occur several times before we can say that
the response has been learnt. Marketers who provide consistent cues, or advertising
messages, to customers may not always succeed in stimulating them to buy, even
if they are motivated to do so. Instead, these marketers may succeed in creating a
Copyright © 2012. Juta & Company, Limited. All rights reserved.

favourable image of their products in the customers’ minds. Cues provide some
direction, but there are many cues competing for customers’ attention. Which
response they will make depends heavily on reinforcement.

Reinforcement
Reinforcement increases the likelihood that a particular response will occur in the
future as the result of specific cues or stimuli.

Reinforcement, or reward, is the satisfaction resulting from successful

behaviour that triggers human memory of how the satisfaction
was obtained.
It can also be viewed as an inducement; that is, the probability that a given
response to a specific stimulus will reoccur given the same stimuli and situation.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 123
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 123 2022/03/29 11:19 AM

Consumer Behaviour

This means that reinforcement is the ‘thing’ that causes the individual to relate the
response to the stimulus correctly, resulting in repetitive behaviour that establishes
future behaviour. For example, a mother whose kids often ask for a specific spread
on their sandwiches (stimulus) and compliment her sandwiches when she uses that
spread, may learn to prefer this spread herself (response). When trying out a new
restaurant and finding that the service is excellent and the food is great, it is more
likely that the customer will dine at the restaurant again and even recommend it
to friends.
Two important aspects of reinforcement are repetition and participation.
1. Repetition: To increase reinforcement, the same action should be performed
several times. The concept of repetition in learning has many applications
in retail merchandising. In the area of store layout, for example, shoppers
learn where the goods are by developing an in-store travel pattern that they
repeat each time they visit the store. Over time, these shoppers become
extremely comfortable and more efficient with their in-store behaviour,
and any changes in store layout will force them to relearn the store and the
new locations of the items on their shopping list – a process not likely to be
greeted with enthusiasm. Another example is insurance companies who play
the same commercial numerous times in breaks during popular TV shows to
ensure that customers will learn about their products.
2. Participation: Participation can help reinforcement. An active role in any
activity generally results in the acquisition of more knowledge about
that activity. Free samples, trial-size products and demonstrations are
participation devices that marketers use in guiding customers’ learning
processes towards products. If customers can see a product, feel it, smell it,
taste it and/or hear it, they are bound to learn more about it. The retailer
must therefore encourage customers to get involved in the merchandise and
the buying process. Having considered these basic principles, we now discuss
some well-known theories or models of how learning occurs, also known as
the mechanisms of learning.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

7.6.3 Theories of learning

The behavioural theories with the greatest relevance to marketing are classical
conditioning, instrumental conditioning and cognitive learning.

Classical conditioning7
This is the process in which a person learns an association between two stimuli
because of their constant appearance as a pair. Because of such constant contiguity
or pairing, customers tend to attribute to the previously unknown stimulus (a
product or service) whatever they think or feel about the other paired stimulus. Two
ideas presented together are considered together, provided there is something to
connect them in the individual’s mind. It is the possibility of a reward that connects
the objects or ideas. Pavlov’s work with the conditioning of dogs is well known in
this area. By ringing a bell every time the dogs ate, he trained the dogs to associate

Roberts-Lombard,124M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 124 2022/03/29 11:19 AM

Chapter 7: Customer perception and learning

the ringing of the bell with food, so that eventually, he was able to get dogs to
salivate simply by ringing the bell. In this way, two unrelated ideas are related by
having each idea associated with a reward.
Marketers often rely on conditioned responses to reach customers. Most reminder
advertising falls into this category.

In all kinds of selling, some reward is associated with the marketer’s

products in an attempt to persuade the customer to buy.
Habitual buying is another form of conditioned response. Customers can be
conditioned to favour products, brands, stores, prices and services. Marketers put this
principle to use when they pair their brand with a likeable celebrity. The celebrity’s
personality, by classical conditioning, rubs off onto the product itself. For example,
Checkers uses Nataniël and Gordon Ramsay in their food advertisements to create
an image of their products as upmarket and good enough for professionals to use.
Moreover, products are packaged to look a certain way – expensive or inexpensive,
fancy or simple, special or ordinary. In a restaurant, the way the waiters dress, the
typeface on the menu and even the use of paper serviettes versus cloth napkins are
all aspects designed to condition classically the perceived quality of the restaurant
and its food.

Instrumental conditioning8
Also known as operant conditioning, this type of conditioning occurs as the
individual learns to perform behaviours that produce positive outcomes and
to avoid those that yield negative outcomes. Whereas responses in classical
conditioning are involuntary and fairly simple, those in instrumental conditioning
are made to achieve a goal and can be more complex. The customer may learn the
particular behaviour desired by marketers only after a number of visits to the store.
The customer’s intermediate actions are rewarded in a process called shaping. For
Copyright © 2012. Juta & Company, Limited. All rights reserved.

example, the owner of a new store can decide to hand out coffee mugs to every
visitor to the store over a given period of time, hoping thereby to turn them over
time into regular visitors, who shop at the store often.
Learning therefore is a process achieved over time during which other behaviours
are attempted and abandoned because they are not reinforced. Gradually, customers
come to associate with people who reward them and choose products that make
them feel good or satisfy some need. Instrumental conditioning is widely used by
marketers. The most common application is to provide products of consistent quality
to reinforce that the use of the products meets a customer’s need. Other applications
include a simple ‘thank you’ after someone buys something, giving large discounts,
giving samples to encourage consumers to try a product, and making follow-up
telephone calls. A popular technique known as frequency marketing reinforces the
regular purchasing of a product by giving regular buyers rewards or prizes, which
increase as the purchase value increases. This instrumental learning strategy was
pioneered by the airline industry, which introduced frequent flyer programmes in
the early 1980s to reward loyal customers.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 125
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 125 2022/03/29 11:19 AM

Consumer Behaviour

Cognitive learning
In contrast to the above-mentioned behavioural theories of learning, cognitive
learning approaches stress the importance of internal mental processes. Not all
learning occurs as a result of repeated trials; a considerable amount of learning
takes place as the result of customer thinking and problem solving. The cognitive
theory views people who actively use information from the world around them
to master their environment as problem solvers. Supporters of this viewpoint also
stress the role of creativity and insight in the learning process. Unlike the theory
of conditioning, the cognitive theory holds that problem solving involves mental
processing, and it emphasises the role of motivation and mental manipulation in
arriving at a desired response. It is concerned with how individuals think and how
they learn. It is therefore necessary to know how the mind functions.

7.7 Summary
In this chapter, we dealt with customer perception by discussing the nature of
perception, the perceptual process and the marketing implications of customer
perception. We also considered customer learning, which entailed the elements
of learning and the most relevant learning theories. In addition, we assessed the
marketing implications of these concepts and theories.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Explain the nature of perception by referring to the three important elements
of perception.
2. What is the significance of selective interpretation for marketing?
Copyright © 2012. Juta & Company, Limited. All rights reserved.

3. Explain the role of the individual, the stimulus and the situation in attention.
4. How can marketers create contrast so that customers will notice the stimulus?
5. Explain the importance of situational factors in perception.
6. What are the marketing implications of selective interpretation?
7. Why is it important for marketers to understand customer recall?
8. Illustrate the usefulness of perception in a marketing strategy.
9. Explain the nature of learning.
10. Explain the elements of learning.
11. Explain the marketing implications of the learning theories we discussed in
this chapter.

Roberts-Lombard,126M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 126 2022/03/29 11:19 AM

Chapter 7: Customer perception and learning

Multiple-choice questions
1. Which statement regarding customer perception is incorrect?
A. Perception is the process by which people select, organise and interpret
stimuli received by the five senses.
B. Perception is the way in which buyers interpret the world around them.
C. People interpret stimuli objectively.
D. Perception is selective.
2. Which statement describes vicarious learning or modelling?
A. It is when it is not necessary for customers to experience a reward or
punishment directly in order to learn.
B. It occurs when individuals learn to perform behaviours that produce
positive outcomes and to avoid those that yield negative outcomes.
C. It is the process whereby a person learns an association between two
stimuli because of their constant appearance as a pair.
D. It involves learning the association between two or more concepts in the
absence of conditioning.
3. Which option refers to the type of conditioning that occurs when individuals
learn to perform behaviours that produce positive outcomes and to avoid those
that yield negative outcomes?
A. Assertive conditioning
B. Classical conditioning
C. Cognitive learning
D. Operant conditioning.
4. Which option is not an element in the creation of a stimulus?
A. Size and intensity
Copyright © 2012. Juta & Company, Limited. All rights reserved.

B. Colour
C. Position
D. Recall.
5. Which statement regarding distorting is incorrect?
A. Levelling is an element of distorting.
B. Experiential learning is an element of distorting.
C. Sharpening is an element of distorting.
D. Individuals can ignore an important piece of information in a marketing
message so that it becomes more acceptable.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 127
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 127 2022/03/29 11:19 AM

Consumer Behaviour

6. What is the meaning of ‘perceptual defence’?

A. Perceptual defence is when an individual tries to deny or defend his
or her reality.
B. Individuals only attend to a small percentage of the total exposure they
receive for interpretation.
C. Individuals see and hear what they are interested in because of who they
are, although they may not be in a good emotional place.
D. Perceptual defence assists marketers’ ability to reach customers in a
crowded marketplace.
7. With regard to an individual’s perception, which statement is incorrect?
A. Shelf space in a store influences which items and brands are allocated
attention by customers.
B. Marketers emphasise the high prices of some products to underscore their
claims of quality.
C. Marketers try to position their brands so that they are perceived by
customers to fit a distinctive niche in the marketplace by stressing the
products’ attributes.
D. In-store information cues comprise brands, layout and point-of-purchase
displays.
8. With regard to the perceptual process, which one of the following statements
regarding the stimulus is incorrect?
A. Bigger stimuli are more likely to be noticed than smaller ones.
B. Colour is a powerful way of drawing attention to a product.
C. Stimuli that appear in places we are more likely to look stand a better
chance of being noticed.
D. The use of white space can draw attention to a stimulus.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

9. Which statement regarding the perceptual process is incorrect?

A. The perceptual process consists of four stages.
B. The stages involved consist of exposure, attention, interpretation and recall.
C. Perception is a subjective process by which people select, organise and
interpret stimuli.
D. All the information that is processed is stored within the human conscious
ness or active memory.
10. The process through which a person learns an association between two stimuli
because of their constant appearance as a pair can be seen as …
A. instrumental conditioning
B. classical conditioning
C. cognitive learning
D. operant conditioning.

Roberts-Lombard,128M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:42.

Consumer Behaviour 5E.indb 128 2022/03/29 11:19 AM

Chapter

8 CUSTOMER MOTIVATION
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain and discuss the nature of motives
■■ Explain the process of the arousal of needs
■■ Discuss the classification of motives
■■ Discuss Maslow’s hierarchy of needs
■■ Discuss McGuire’s psychological motives, and the economic and emotional
classification of motives
■■ Explain what is meant by psychographics
■■ Explain the different motivational research options.

8.1 Introduction
In this day and age, it is becoming more and more difficult to identify what
motivates customers to buy certain products or makes them react in a certain way.
Motives inspire everything we do and all decisions we make – and it is important for
marketers to be aware of the things that motivate customers. Customer motivation
can be defined as an internal state that compels or drives people to identify, select
and buy products or services that fulfil both their conscious and subconscious
needs and desires.1 Keeping this definition in mind, if we are able to understand
consumers’ motivations, we will be equipped to understand why consumers do
Copyright © 2012. Juta & Company, Limited. All rights reserved.

what they do and why they choose the products and services that they do. It is
human nature to be motivated by something – either consciously or subconsciously.
We might know why we are doing something, but sometimes we are not really sure
why we are doing something. Looking at this from a marketing perspective, we need
to acknowledge that people are usually not fully aware of the forces that drive them
towards some products and away from others. Often, these choices are influenced
by people’s values; their priorities and beliefs about the world. It is the task of the
marketer to identify what their needs are and what motivates them to do certain
things. Understanding consumer motivation can mean the difference between a
successful campaign and a waste of time and money at the end of the day.
This is not an easy task, as customers experience many and different kinds of
needs. However, insight into this matter offers a valuable approach for marketers
to study motivational influences in buying behaviour. In this chapter, we examine
the motivation process and need arousal, highlighting the fact that motivation
links needs and objectives. We look at the classification of motives, and examine
psychographics. Lastly, we briefly discuss motivational research.

Consumer Behaviour 5E.indb 129 2022/03/29 11:19 AM

Consumer Behaviour

8.2 The nature of motivation

As stated previously, consumer motivation is an internal state that
drives people to identify and buy products or services that fulfil
conscious and subconscious needs or desires. The fulfilment of those
needs can then motivate them to make a repeat purchase or to find
different goods and services to better fulfil those needs

8.2.1 Needs, motives and objectives

When the customer has a desire to satisfy their needs, what the customer
experiences is called motivation. This desire to fulfil a need is what drives people
to move to action and the energy of that desire is called motivation. Clearly, there
is a close relationship between needs and motives. As the driving force within
individuals that impels them to action, motivation is produced by a state of tension
that exists as the result of an unfulfilled need and the way to relieve this stress is to
fulfil the need.
The term ‘need’ refers to something that is essential or important and not only
something that is desirable or nice to have. From a marketing perspective, a need
is a consumer’s desire for a product’s or service’s specific benefit, whether that be
functional or emotional. A want is a desire for products or services that are not
necessary, but which consumers wish for.2

Needs are therefore the basic sources of buyer behaviour and have to
be stimulated before the consumer is driven to action.
Every individual has needs. Some are innate; others are acquired:
●● Innate needs are physiological (biogenic); they include the needs for food,
water, air, clothing, shelter and sex. Because they are necessary to sustain
biological life, the biogenic needs are considered primary needs or motives.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Acquired needs are needs that we learn in response to our culture or

environment. These may include needs for self-esteem, prestige, affection,
power and learning. Because acquired needs are generally psychological
(psychogenic), they are considered secondary needs or motives.3

The specific goals the customer selects and the patterns of action that they undertake
to achieve these goals result from individual thinking and learning.
For any given need, there are various appropriate goals. The goals chosen by
individuals depend on those individuals’ personal experiences, physical capacities,
the prevailing cultural norms and values, and on whether the goals are accessible
in the physical and social environment. For example, consider a young woman who
wishes to lose weight and who thinks that diet pills will be the best way to achieve
her goal. Her doctor, however, advises her not to use the pills, as it will be bad for
her health. She might now settle for a healthy diet and exercise as an alternative to
the diet pills. The goal or objective has to be both socially acceptable and physically

Roberts-Lombard,130M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 130 2022/03/29 11:19 AM

Chapter 8: Customer motivation

accessible. If the young woman did not have the option of eating healthily and
exercising, she would either ignore the advice of her doctor or select a substitute
goal, such as staying her current weight, but being healthy.
A person’s perception of their own self also influences the specific goals selected.
We often perceive the products we own, would like to own or would not like to own
in terms of how closely they reflect or are congruent with our self-image. Therefore
a man who sees himself as trendy, fashionable and successful may want to wear a
TAG Heuer watch, drive a BMW 420i, wear only Patagonia or Todd Snyder clothes
and Nike shoes, and eat only organic foods.
Everyone must satisfy basic needs such as hunger and thirst. But the way two hungry
people go about this can be very different: one person wants a pizza and soft drink,
while the other wants healthy food and filtered water. Other needs are utilitarian
and are products that make everyday life easier – the items that are a priority for
certain purposes. We emphasise the objective, tangible attributes of products,
such as petrol consumption in a car; the amount of fat, protein and kilojoules in a
cheeseburger; or the durability of a pair of jeans. Needs may also be hedonic which
refers to those items that bring emotions such as enjoyment and pleasure through
ownership or use of these items.4
We now look at the arousal of needs.

8.2.2 Need arousal

Marketers are aware of the fact that customers need to be made aware of their needs
or a need to be ‘awakened’ in them – a need they may have but are not aware of it.
Need arousal is a method used in advertising which plays on a desire or requirement
of the target to try and sell the product to them; for example, they require security,
therefore they should purchase an alarm system.5
Marketers will therefore use the identified needs of customers to entice them to
purchase their products. Arousing customers’ needs is possible through marketing
Copyright © 2012. Juta & Company, Limited. All rights reserved.

actions such as creative advertising, using selective media and how the product is
positioned in the market. In many instances, the customer’s needs are dormant –
they are not even aware of them, and it requires some sort of stimulus to arouse
them through emotions or physiological means.
For example, you could feel the need for a new car because you are tired of your
current car’s high petrol consumption (the actual state) and you realise that
a new Polo Blue Motion would use less petrol (the desired state). The arousal of
specific needs at a specific point in time may be caused by internal stimuli found
in the individual’s physiological condition, emotional or cognitive processes, or
external stimuli in the environment – all of which implies that there are various
types of arousal.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 131
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 131 2022/03/29 11:19 AM

Consumer Behaviour

Physiological arousal
All people have certain basic bodily needs based on their physiological condition at
that moment in time. The physiological cues are involuntary, however they arouse
related needs which cause discomfort until such a time that they are satisfied.
A growling stomach might trigger awareness of a hunger need and a parched throat
a thirst need. The person who is hungry or thirsty might be compelled to buy some
groceries or drink something at a café. Physiological arousal therefore deals more
with the basic needs of customers such as thirst, hunger, safety, bodily protection
(warm or cold) and so forth.

Emotional arousal
Emotional arousal can be defined as a state of heightened physiological activity. It is
part of human nature to daydream and fantasise, which often results in the arousal
of latent needs. People tend to place themselves in their minds in situations where
they imagine themselves in ideal or desirable positions and this usually happens
when they are bored or frustrated in their lives (autistic thinking). By doing this,
customers tend to arouse dormant needs, which then leads to a state of discomfort
and which may propel the consumer to goal-orientated behaviour. A young graduate
who sees himself as becoming the next Bill Gates or Mark Zuckerberg might start to
learn more and more about technology and social media and available apps to try
and develop his own new successful app.

Cognitive arousal
Cognitive arousal, also referred to as intellectual arousal, is about thinking and
mental stimulation.6 Cognitive awareness of a need may be triggered by a stimulus
in the environment, such as when someone on social media says on Facebook that
it was so special to be able to do something for their parents such as taking them
to lunch. This may trigger thoughts in a person to do something for their parents,
(cognitive awareness of needs). Similarly, an advertisement of a couple getting
Copyright © 2012. Juta & Company, Limited. All rights reserved.

engaged may arouse in a young person the cognitive need of getting engaged to
their partner.

Environmental arousal
The needs activated at a specific time are often determined by specific cues in
the environment. Without these cues, the needs would remain dormant; that is,
they would not be aroused. For example, the smell of food may arouse the ‘need’
for food. Advertisements often produce a psychological imbalance in the viewer’s
mind. For example, a young aspiring model sees a well-known model wearing Guess
clothing, and suddenly she is unhappy with her current wardrobe. The tension she
is experiencing disappears only when she buys herself a Guess outfit.

Roberts-Lombard,132M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 132 2022/03/29 11:19 AM

Chapter 8: Customer motivation

8.2.3 The drive state

Once a need is aroused, it produces a drive state.7 A drive is an affective state in
which a person experiences emotions and physiological arousal.
In the customer context, this state would include searching for information, talking
to other customers about a product, shopping for the best bargain, and buying
products and services.
Customer decision making is activated when the customer recognises that a
problem exists, and problem recognition occurs when the customer’s actual state
of being differs from a desired state of being. Thus problem recognition and need
activation are essentially synonymous concepts, and goal-directed behaviour and
the search for information are closely related. In each case, the customer engages in
a series of behaviours to fulfil a need or solve a problem. Following the automatic
or chosen behaviour, the final outcome will be the experience of a new state and,
possibly, a sense of satisfaction. This outcome, if positive, feeds back to calm the
drive. If the new state is not satisfactory, the feedback recycles the process; in other
words, it starts the process all over again.
Customers tend to adopt new products and switch brands just to try out a different
brand. Moreover, they look for more information about products, and get bored
when exposed to repetitive advertising. Arousal seekers are also users of a greater
assortment of options within the same product category, such as fast food.
It is not possible to determine how many needs people actually have to overcome
due to the problem of a virtually infinite number of possible needs; psychologists
and researchers have suggested various categories or general groupings of needs.

8.3 The classification of motives (needs)

There are three particularly useful approaches to understanding and classifying
customer motivation. The first approach, Maslow’s motive hierarchy, is a macro-
Copyright © 2012. Juta & Company, Limited. All rights reserved.

theory, or overall theory, designed to account for most human behaviour in general
terms. The second approach, based on McGuire’s psychological motives, uses a
fairly detailed set of motives to account for a limited range of customer behaviours.
The third, the economic and emotional classification, distinguishes between
rational and emotional (or non-rational) motives.

8.3.1 Maslow’s hierarchy of needs

Maslow was one of the first psychologists to try to identify specific human motives
and classify them in a general scheme. Maslow’s theory is founded on the principles
that all people adopt a set of motives based on social interaction and genetic setup;
that there are differences in motives with some being more basic than others, and
that the more basic motives need to be largely satisfied before the other higher-level
motives can be satisfied.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 133
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 133 2022/03/29 11:20 AM

Consumer Behaviour

Maslow’s theory puts forward that people are motivated by five basic categories
of needs: physiological, safety, love, esteem, and self-actualisation. Based on this
theory, the higher needs in the hierarchy only emerge once people are of the opinion
that the previous need has been sufficiently satisfied. In order to understand better
what motivates human beings, Maslow formulated a hierarchy of needs in which
levels of motives are specified, as shown in Figure 8.1.

SAFETY
Security
Shelter
Protection

PHYSIOLOGICAL NEEDS
Water
Sleep
Food

LOWER-LEVEL NEEDS

Self-
actualisation
achieving one’s full
potential, including
Copyright © 2012. Juta & Company, Limited. All rights reserved.

creative activities

Esteem needs
prestige, feeling of accomplishment

Belongingness & love needs

intimate relationships, friends

Safety needs
security, safety

Physiological needs
food, water, warmth, rest

Figure 8.1 Maslow’s hierarchy of needs

Roberts-Lombard,134M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 134 2022/03/29 11:20 AM

Chapter 8: Customer motivation

A hierarchical approach implies that the order of development is fixed; that is, one
level must be attained before the next higher level is activated.

Level 1: Physiological needs

Physiological needs are the first and most basic level of human needs.
These needs are quite clear. They are mainly the things we need for our survival
and include needs for water, food, clothing, breathing and shelter. Maslow also
included sexual reproduction in this level of basic needs as it is essential to the
survival of the human race. These basic needs are dominant as if they are not at least
largely met, the next level cannot be reached. It must be noted that a person can
be partially on the one level of satisfaction and also on the next level of satisfying
needs – it is not expected that all needs are totally satisfied before the next level in
the hierarchy is attempted.

Level 2: The need for safety

After physiological needs have been satisfied, safety and security needs become the
driving force behind an individual’s behaviour. On this level, the requirements start
to become a bit more complex as people are wanting to have more control and order
in their lives. To this extent, safety and security contribute greatly to this level.

These needs are concerned not only with physical safety but also include
order, stability, routine, familiarity, financial security, health and wellness,
and safety against accidents and injury.
For example, people want a job, to have money in a savings account for uncertain
times, to have health and life cover, and to live in a safe neighbourhood, in order to
feel secure and in control of their environment. Due to the prevailing crime situation
in South Africa, estate agents are promoting the safety and quality lifestyle offered by
Copyright © 2012. Juta & Company, Limited. All rights reserved.

secure estates with 24-hour security and a safe environment for children to play in.

Level 3: Belongingness and love needs (social needs)

This level includes things such as love, belonging and acceptance by others. On this
level, the need for emotional relationships drives human behaviour. This need is
satisfied by, amongst others, friendships, social groups, community groups, family,
religious affiliations, and romantic attachments people look for.
People generally need to feel loved and accepted by others, which means there is a
need for personal relationships with friends and family, to be part of a group such
as a book club, knitting club, sports club or a religious group.
Emotional needs play a significant role in the customers’ decisions about many
types of products. The social motives of belonging and love are manifested in their
purchase of products that are regarded highly by others, which marketers address
in their marketing efforts in various ways, as is seen during special occasions such
as mothers’ day and Valentine’s day.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 135
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 135 2022/03/29 11:20 AM

Consumer Behaviour

Level 4: Esteem needs (ego needs)

At this level of Maslow’s hierarchy, there is a need for appreciation and respect.
Once the needs at the first two levels have been satisfied, the esteem needs begin to
play a more prominent role in motivating behaviour.8 At this stage, gaining respect
and appreciation from others is becoming increasingly important to people. It is
important for people to have their efforts acknowledged when they accomplish
something. In addition to the need for feelings of accomplishment and prestige,
esteem needs include self-esteem and personal worth. It is important for people to
feel that they are valued by others and that they add meaning to something out there.
Examples include academic accomplishments, performing well in sports activities,
reaching high positions in their place of work or excelling at a hobby. Achieving a
good self-esteem – liking what they have achieved and receiving recognition from
others – tends to make people feel more confident in their abilities.

Level 5: Self-actualisation
‘At the very peak of Maslow’s hierarchy are the self-actualisation needs. “What a
man can be, he must be,” Maslow explained, referring to the need people have to
achieve their full potential as human beings.’9 According to Maslow, most people
never satisfy their ego needs sufficiently to move to the last level in the hierarchy –
the need for self-actualisation (self-fulfilment).

This need refers to an individual’s desire to fulfil their potential; in other

words, to become everything they are capable of becoming.
This need is expressed in different ways by different people. For example, a boxer
may aspire to become the world champion in his weight division and work single-
mindedly for years to become the best in that sport.
At each level of Maslow’s hierarchy, different priorities exist in terms of the product
benefits a customer is looking for. Ideally, people progress up the hierarchy until
Copyright © 2012. Juta & Company, Limited. All rights reserved.

their dominant motivation is a focus on ‘ultimate’ goals, such as justice and beauty.
Unfortunately, this state is difficult to achieve, at least on a regular basis. Most of
us have to be satisfied with attaining this state occasionally, in peak experiences.
Table 8.1 gives examples of product appeals tailored to each level.

Table 8.1: Maslow’s hierarchy and marketing strategies

Level of hierarchy Relevant products Example of an appeal

Self-actualisation needs Hobbies, travel, education Adidas: ‘Nothing is impossible’

Esteem or ego needs Cars, furniture, credit cards Mercedes: ‘The best or nothing’
➥

Roberts-Lombard,136M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 136 2022/03/29 11:20 AM

Chapter 8: Customer motivation

Level of hierarchy Relevant products Example of an appeal

Belonging or social Designer clothing, perfume, Olive Garden: ‘When you’re

needs cellphones and beverages here, you’re family’

Safety or security needs Healthcare, insurance, Trellidor: ‘The ultimate crime

alarm systems, retirement barrier’
investments

Physiological needs Food, beverages, clothing Jungle: ‘Energy champion’

Maslow’s hierarchy of needs provides a useful framework for marketers

to segment the market, and it helps with product positioning
in the following ways:
●● Segmentation applications: The needs hierarchy is often used as the basis
for market segmentation (see Chapter 11), as specific advertising appeals
are directed at individuals on one or more need levels. For example,
Chanel perfume is targeted at mature women with a higher income, and
Chanel’s advertisements emphasise social appeal by portraying celebrities
using their product.
●● Positioning applications: Another way to use the hierarchy is in the positioning
of products; that is, deciding how the product is to be perceived by prospective
customers. The key to positioning is to find a niche that is not occupied by a
competing brand. This application relies on the notion that no need is ever
fully satisfied; it usually continues to be motivating to a certain extent. For
example, most manufacturers of luxury cars use status appeals (for example,
‘Impress your friends’), self-actualisation appeals (for example, ‘You deserve
the very best’) or social appeals (for example, ‘The whole family can ride in
luxurious comfort’). To find a unique position among its luxury competitors,
Mercedes-Benz has used a safety appeal by showing pictures of Mercedes-
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Benz vehicles that have overturned or been badly damaged but whose
passengers have been unhurt.

8.3.2 McGuire’s psychological motives

McGuire developed a motive classification system that is more specific than Maslow’s.
McGuire’s classification consists of two categories: internal and external motives.

McGuire’s internal motives

●● The need for consistency: A basic human desire is to have all facets or parts
consistent with one another. These facets include attitudes, opinions and self-
image. Marketers use this idea in several ways. First, they develop a consistent
marketing mix. The second area of marketing interest with consistency is called
cognitive dissonance. This refers to a tendency among consumers to second
guess their decision – was it the right decision to make? It is a little seed of doubt
that creeps in, especially where expensive purchases are made.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 137
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 137 2022/03/29 11:20 AM

Consumer Behaviour

●● The need to attribute causation: This set of motives deals with the human
tendency to determine who or what causes the things that happen to us. Do we
attribute the cause of a favourable or unfavourable outcome to ourselves or to
some outside force? Attributing cause is a part of the foundation for the use of
rhetorical theory to understand consumers’ responses to persuasive messages.
●● The need to categorise: Often, we need to categorise and organise information and
experiences in some meaningful yet manageable way. So we establish categories
or mental partitions that allow us to process large amounts of information.
For example, a consumer may categorise clothing retailers into two groups:
those who generally sell items for under R200 and those whose items are
generally priced over R200. Many stores price items at R9.95, R19.95, R49.95
and so on to avoid their products being categorised as over R10.00, over R20.00
or over R50.00.
●● The need for cues: These motives reflect the need for observable cues or symbols
that enable us to infer what we feel and know. Our impressions, feelings and
attitudes are subtly established by viewing our own behaviour and others and
drawing inferences as to what we feel and think. In many instances, shoes or
watches offer subtle hints about a desired image or lifestyle. The shoes or watches
of sales consultants should therefore convey the desired image of the business.
●● The need for self-expression or independence: This motive deals with the need to
express one’s identity to others. We feel the need to let others know who and
what we are by means of our actions (which include the purchase and display
of goods). The purchase of a specific brand of home appliance or model of car
allows consumers to express their identity to others, since these products have
symbolic or expressive meanings.
●● The need for novelty: We often seek variety and difference simply out of the need
for novelty. Marketers refer to this kind of motive as variety-seeking behaviour.
This is the prime reason for brand switching and impulse purchasing. The
need for novelty changes with time. That is, consumers experiencing rapid
change generally become satiated and look for stability, while customers
Copyright © 2012. Juta & Company, Limited. All rights reserved.

in stable environments get bored and look for change. The travel industry,
for example, segments the holiday market in part by promoting ‘adventure’
holidays or ‘relaxing’ holidays to different groups, depending on their likely
need for novelty.

McGuire’s external motives

Self-expression, ego defence, assertion and reinforcement motives seem to be
similar – they all refer to achievement, gaining esteem, receiving admiration and
expressing identity. Therefore, they are similar to Maslow’s ego motive, while the
affiliation motive is similar to Maslow’s belonging motive. Modelling is a major
means by which children learn to become customers or consumers. The tendency
to model explains some of the conformity that occurs within reference groups.
Marketers utilise this motive by showing desirable types of individuals using
their brands, for example, actors or actresses such as Cameron Diaz appearing on
billboards and advertisements wearing a TAG Heuer watch.

Roberts-Lombard,138M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 138 2022/03/29 11:20 AM

Chapter 8: Customer motivation

8.3.3 Economic and emotional classification

It is not only psychological needs that lead to decision making by consumers but
also economic and/or emotional motives.

Economic criteria
When customers buy products, they may also be concerned about aspects such as
economy, quality, performance, suitability and reliability. They can satisfy these
economic motives by applying economic criteria in decision making. Customers
often disagree on the relative importance of the criteria, which differ from one
customer to another, from one buying situation to another and from one product
to another.

Economic motives are rational in nature. Marketers often express them

in quantifiable terms,
for example ‘Buy now and save 25%’ or ‘For this week only’. They can also be
expressed in less specific terms, for example ‘Suit your family ... suit your pocket’,
as in some car advertisements. It is interesting to note that in the latter example,
the emotional appeal of affiliation with the family and the economic appeal of
affordability are combined in a single sentence.

Emotional criteria
The emotional motives in customer decision making include all the social and
ego motives of Maslow and McGuire. The economic motives are considered to
be completely rational, but this does not mean that the satisfaction of emotional
needs is a non-rational act.

Customers do not necessarily act in a non-rational manner when they

allow their emotions to influence their buying decisions.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Moreover, it is almost impossible for us to make any decision on a purely rational

basis, as emotional motives invariably influence our customer decision. Nevertheless,
people are usually reluctant to admit that their buying behaviour is influenced by
emotional motives. For example, a person who buys an iPhone because they want
to show off financial status will most likely not admit this motive. This person
would rather rationalise the decision by basing it on functionality or durability.
Marketers often use two divergent approaches in advertising. The heading and copy
of the advertisement may be rational and therefore appeal to economic motives,
while the illustration tends to suggest satisfaction of emotional motives.
Some advertisements are purely rational, but many are totally emotional.
Appeals to emotional motives are strongly persuasive. Marketers should consider
the characteristics of their product, and review their particular situation before
deciding on a particular mix of appeals in a marketing message. An important facet
of motivation is psychographics, which we consider next.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 139
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 139 2022/03/29 11:20 AM

Consumer Behaviour

8.4 Psychographics
Psychographics are characteristics that describe individuals in terms
of their psychological and behavioural makeup.
Psychographics in marketing focus on understanding the consumer’s emotions and
values in order to market more effectively to consumers.10 Psychographics focus on
consumers and their activities, opinions and interests, and aim to understand the
cognitive factors that drive the behaviours of consumers. For example, a person’s
need to seek affiliation or peer approval may encourage her to start playing tennis.
Tennis thus becomes part of her psychographics. In turn, this psychographic drives
customer behaviour towards doing whatever is needed to implement it; thus it
becomes motivational.

8.4.1 Psychographics and lifestyle

Psychographic research is research that attempts to assess customers on the basis of
psychological dimensions as opposed to purely demographic dimensions. A person’s
motivations determine behaviour as well as lifestyle. Consider a team of marketers
who want to target a young population. They identify their ideal customer as a
young man between the ages of 22 and 25, living in Johannesburg, who earns
R150 000 to R200 000 a year. You may know many people who fit this description.
Do you think they are all the same? Would they all be likely to share common
interests and buy the same products? Probably not, since their lifestyles are likely
to differ considerably. In other words, customers may share the same demographic
characteristics and still be very different people. Hence, retailers need to find a way
to ‘breathe life into’ demographic data to identify, understand and target customer
segments that will share a set of preferences for their products and services.
The term ‘psychographics’ is often used interchangeably with ‘lifestyle’ to denote
the separation of customers into categories based on differences in choices of
consumption activities and product usage. There are many psychographic variables
Copyright © 2012. Juta & Company, Limited. All rights reserved.

that marketers can use to segment customers, but they all share the underlying
principle of going beyond superficial characteristics to understand customers’
motivations for buying and using products.

Demographics allow us to describe who buys, while psychographics

allow us to understand why they buy.
This is largely based on the values of the customer concerned.

8.4.2 Values determine lifestyle

‘Values are basic and fundamental beliefs that guide or motivate attitudes or
actions. They help us to determine what is important to us. Values describe the
personal qualities we choose to embody to guide our actions; the sort of person we
want to be; the manner in which we treat ourselves and others, and our interaction
with the world around us. They provide the general guidelines for conduct.’11

Roberts-Lombard,140M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 140 2022/03/29 11:20 AM

Chapter 8: Customer motivation

Our values are related to customer activities. For example, people who value a sense
of belonging particularly like team activities. Those who value fun and enjoyment
particularly like activities such as sailing, dancing, hiking and camping, and
often consume a lot of alcohol. People who value a warm relationship with others
tend to give gifts to others for no obvious reason. A person’s set of values plays
an extremely important role in consumption activities; that is, people buy many
products and services because they believe that these will help them to attain a
value-related goal.

8.4.3 Psychographic profiles

AC Nielsen Market Research Africa’s Sociomonitor Value Groups Survey is the most
authoritative psychographic profile of its kind in South Africa. In order to create the
value groups, respondents answer an extensive battery of psychographic statements.
Their answers are then grouped and scored, giving every single respondent a
different score and position on the ‘social map’, depending on their answers. These
scores are analysed statistically and the value groups – broad groups of customers
with similar values, attitudes and motivations (psychographics) – are identified.

8.4.4 The uses of psychographics

We can use psychographics in a variety of ways, most notably in market
segmentation. They allow marketers to go beyond the simple demographic or
product usage descriptions. Sometimes, marketers create their strategies with a
typical customer in mind. However, the stereotype may be inaccurate, as the actual
customer may not match these assumptions. For example, say the marketers of a
particular beer company thought their market consisted of young professional men
between the ages of 25 and 30, but were then surprised when they realised that
their beer is actually consumed by older family men between the ages of 40 and
45. Psychographic information can guide marketers in emphasising features of the
product that fit in with a person’s lifestyle. Products targeted at people whose lifestyle
Copyright © 2012. Juta & Company, Limited. All rights reserved.

profiles show a high need to be around other people may focus on the product’s
ability to help meet this social need. Furthermore, psychographic information can
offer useful input in advertising; specifically communicating something about the
product. The advertiser obtains a much richer mental image of the target customer
than that obtained through statistics, and this insight improves the advertiser’s
ability to ‘talk’ to that customer. For example, it was found that women that buy
expensive perfume would like to think that they are unique in wearing their
preferred brand.
One perfume brand decided to take advantage of this tendency, and they developed
advertisements with the theme ‘It’s only you’. Understanding how a product fits
or does not fit into customers’ lifestyles allows marketers to identify new product
opportunities, design media strategies and create environments that are the most
consistent and harmonious with these consumption patterns.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 141
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 141 2022/03/29 11:20 AM

Consumer Behaviour

8.5 Motivational research

Motivational research can be defined as a type of marketing research that
attempts to explain why customers behave as they do and attempts to discover the
underpinning attitudes, feelings and emotions regarding the use of a product or
service. Two techniques, namely depth interviews and projective techniques, are
frequently used in marketing studies.

8.5.1 Depth interviews

These are interviews with individual customers designed to determine deep-seated
or repressed motives that cannot be brought out by structured questions. Customers
are encouraged to talk freely in an unstructured interview, and their responses
are interpreted carefully to reveal their motives and potential buying inhibitions.
A related feature of the depth interview is the focus group interview, in which eight
to 12 customers are brought together under the direction of a moderator to discuss
issues that may reveal their deep-seated needs or unconscious motives. Focus groups
are likely to stimulate discussion because of the context, and they may bring out
thoughts and motives that individual depth interviews will not.

EXAMPLE

What depth and focus group interviews reveal

Depth and focus group interviews in several studies have provided useful findings,
such as the following:
●● Customers want a sense of freedom and power when they get behind the
wheel of a car. They use the surge of acceleration to give themselves a
sense of being freed from the mundane aspects of life. If marketers want to
advertise petrol, they should play on this feeling and, for instance, talk about
‘the tiger in your tank’.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Men dislike air travel because of ‘posthumous guilt’ – they are afraid that
they will die in a crash, thus turning their wives into widows. To combat this
aversion, airlines should advertise how quickly they can return businessmen
home to their loved ones.
●● Eating sweets is a source of guilt because of childhood associations with
reward and punishment. Any attempt to market sweets to adults should
therefore emphasise the fact that the consumers deserve the rewards
associated with the consumption of the sweets.

8.5.2 Projective techniques

These techniques are designed to determine motives that are difficult to express
or identify. Researchers cannot ask customers direct questions, because customers
may not be aware of their motives for buying, and thus may be unable to answer.
Instead, marketers can give customers a situation, a cartoon or a set of words, and

Roberts-Lombard,142M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 142 2022/03/29 11:20 AM

Chapter 8: Customer motivation

ask them to respond. Customers project their feelings and concerns about products
onto this less threatening or less involving situation. In one experiment, for
example, researchers tried to discover why women were reluctant to buy instant
coffee when it was first introduced in 1940. The researchers drew up two identical
shopping lists, with the exception that one included regular coffee and the other
instant coffee. They asked the women to project the type of woman most likely
to have developed each list. The ‘housewife’ who included instant coffee on the
list was characterised as lazy and a poor planner. These findings demonstrated
that many women had a deep-seated aversion to buying products such as instant
coffee or instant cake mixes, because of a concern that their husbands would think
they were shirking their homemaking duties. As a result of the study, marketers
advertised instant coffee in a family setting, portraying the husband’s approval.
The psychoanalytic approach may not be empirical, but motivational researchers
were the first to argue that customers are complex and difficult to understand, and
are driven by powerful forces of which they are largely unaware.
Furthermore, motivational research provides marketers with basic cues for more
structured, quantitative marketing research studies – studies that can be conducted
on larger, more representative samples of customers. It continues to be a useful tool
for many marketers who want to know the genuine reasons underlying customer
behaviour. However, it is no longer considered the only method for uncovering
human motivation, but rather one of a variety of research techniques available
to the researcher. Despite some shortcomings, motivational research has proved
to be of great value to marketers concerned with developing new ideas and new
advertising appeals.

CASE STUDY: The Oliver family

The Olivier family is a middle-class family living in Durban. Mr Olivier has been a
loyal customer of Vodacom for the past five years. He has cellphone contracts for
Copyright © 2012. Juta & Company, Limited. All rights reserved.

himself, his wife and their two teenage children. For the past five years, he has
chosen contracts that include Nokia phones with free minutes and SMS bundles,
as the family only needed to make calls and send text messages. Recently,
Mr Olivier discovered that his bill at the end of the month was substantially more
than usual. Upon investigation, he found that this was due to him and his children
accessing the internet from their phones, which, of course, uses data. As a result,
the Olivier family discovered that they needed contracts that would provide them
with data packages and smartphones.
Mr Olivier then discovered that MTN had a special offer that included four Samsung
Galaxy smartphones, with unlimited data, for the price of two. This was the best
option for the Olivier family’s needs and, as a result, they changed their network
provider and brand of phone.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 143
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 143 2022/03/29 11:20 AM

Consumer Behaviour

8.6 Summary
In this chapter, we dealt with customer motivation. Our discussion included a
description of the motivation process that revolves around needs, motives and
objectives, and the different forms of need arousal. We examined the different
forms in which motives can be classified in order to be useful to marketers.
We also explored psychographics, which is a facet of motivation. We concluded
the chapter with a discussion of motivational research.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Explain the motivation process and its significance to marketing.
2. How can a marketer use Maslow’s hierarchy of needs (or motives)?
3. Explain McGuire’s motives and the economic and emotional classification of
motives and highlight the marketing implications.
4. Illustrate the use of psychographics in marketing.
5. Explain depth interviews and projective techniques used in motivational
research and indicate how the findings can be of use to marketers.
6. With reference to the case study, answer the following questions:
A. The Olivier family identified a need for new cellphones and network
provider. How does the motivation process apply in this particular case?
B. How would you classify the motives of the Olivier family in terms of
Maslow’s hierarchy of needs, McGuire’s motives and the economic and
emotional classification of motives?
Copyright © 2012. Juta & Company, Limited. All rights reserved.

C. With the Olivier family in mind, how should marketers take psychographics
into account in their marketing strategies?
D. Discuss the differences between needs, wants and opportunities with
reference to the case study.
E. Explain how marketers can increase the likelihood that their brands are
included in consumers’ consideration process. Give practical examples
based on the case study.

Roberts-Lombard,144M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 144 2022/03/29 11:20 AM

Chapter 8: Customer motivation

Multiple-choice questions
1. Motivation occurs when a need is aroused that the customer wishes to satisfy.
Which of the following statements best describes a need?
1.1 Something that is either a physical or emotional requirement.
1.2 The number one goal of marketing.
1.3 Forces that are directed towards specific goals that can be achieved by
a purchase.
1.4 The basic sources of buyer behaviour.
A. 1.1, 1.2 and 1.3
B. 1.2, 1.3 and 1.4
C. 1.1, 1.3 and 1.4
D. 1.1, 1.2 and 1.4
2. Maslow formulated a hierarchy of needs in which levels of motives are specified.
A hierarchical approach implies that the order of development is fixed; that is,
one level must be attained before the next, higher level is activated. Which of
the following options suggests the correct order of these needs?
A. Physiological needs; safety needs; social needs; esteem needs; self-
actualisation needs
B. Self-actualisation needs; safety needs; physiological needs; social needs;
esteem needs
C. Social needs; safety needs; self-actualisation needs; esteem needs;
physiological needs
D. Safety needs; physiological needs; social needs; self-actualisation needs;
esteem needs.
3. McGuire developed a motive classification system that is more specific than
Maslow’s. It consists of two categories: internal and external motives. Which of
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the following motives are classified as internal motives?

A. Causation, assertion, independence, affiliation
B. Self-expression, ego defence, reinforcement, modelling
C. Novelty, assertion, reinforcement, self-expression
D. Categorisation, cues, consistency, independence.
4. Customers are not always motivated by psychological needs in their decision
making. When customers buy products, they are also concerned about aspects
such as dependability, materials, efficiency, installation, operating cost and
price, which can be categorised as _____________ motives.
A. economic
B. environmental
C. emotional
D. ethical.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 145
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 145 2022/03/29 11:20 AM

Consumer Behaviour

5. The term ‘psychographics’ is often used interchangeably with _____________

to denote the separation of customers into categories, based on differences in
choices of consumption activities and product usage. It allows us to understand
why customers buy certain products.
A. demographics
B. lifestyle
C. behaviour
D. characteristics.
6. Demographics allow us to describe who buys, while psychographics allow us
to understand _____________ they buy.
A. what
B. where
C. why
D. when.
7. We can use psychographics in a variety of ways. Which of the following
statements regarding psychographics is true?
7.1 Psychographics can be used most notably in market segmentation.
7.2 Psychographic information cannot be used to guide marketers in
emphasising features of the product that fit in with a person’s lifestyle.
7.3 Psychographic information cannot be used in advertising strategies.
7.4 Psychographics allow marketers to create their strategies with a typical
customer in mind.
A. 7.1 and 7.2
B. 7.2 and 7.3
C. 7.3 and 7.4
Copyright © 2012. Juta & Company, Limited. All rights reserved.

D. 7.1 and 7.4

8. Which of the following statements regarding motivational research are true?
8.1 Motivational research is based on the premise that consumers are not
always aware of the reasons for their actions.
8.2 Motivational research attempts to discover the underlying feelings,
attitudes and emotions concerning a product, service or brand use.
8.3 Motivational research regularly includes surveys and depth interviews to
reveal consumer motives and potential buying inhibitions.

Roberts-Lombard,146M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 146 2022/03/29 11:20 AM

Chapter 8: Customer motivation

8.4 Motivational research also utilises observation and projective techniques

to determine consumer motives that are difficult to express or identify.
A. 8.1 and 8.2
B. 8.2 and 8.3
C. 8.3 and 8.4
D. 8.1 and 8.4
9. When implementing _____________, it is not always productive for
researchers to ask customers direct questions, because customers may
not be aware of their motives for buying and thus may be unable to answer
accurately. Instead, marketers can give customers a situation, a cartoon or a
set of words, and ask them to respond.
A. motivational research
B. depth interviews
C. observation
D. projective techniques.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 147
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:05:55.

Consumer Behaviour 5E.indb 147 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 148 2022/03/29 11:20 AM

Chapter

9 CUSTOMER ATTITUDES
Learning outcomes
After studying this chapter, you should be able to:
■■ Discuss and explain the nature of customer attitudes
■■ Explain and discuss the ABC model of attitude
■■ Discuss the functions of attitudes
■■ Explain how attitudes are formed
■■ Explain how attitudes change.

9.1 Introduction
For marketers to target their customers effectively, it is essential to monitor the
attitudes of their market. As the attitudes of customers change, marketers need to
adapt their marketing strategy to reflect these changed attitudes. Attitudes influence
behaviour and we are all influenced by attitudes, be it our own or the attitudes
of others. Attitudes are usually reflected in a person’s actions and behaviour and
directly influence how a person judges and reacts towards other people, objects and
events. Once formed, an attitude is not easy to change. Attitudes play a major role
in our everyday lives and, for this reason, it’s important for marketers to understand
the nature of attitudes and the effects that they have on consumers’ lives.

Attitude research enables marketers to:

●● answer many marketing questions, such as whether customers will accept a product
●● gauge why a retailer’s target audience has not reacted more favourably to its new
promotional theme
●● learn how target customers are likely to react to a proposed change in a product’s
packaging.

In the context of customer behaviour, using attitudes can be extremely productive.

For example, in the global market, there is more emphasis on healthy living and
consumers are more aware of the environment and healthy living thanks to the
fact that consumers are increasingly aspiring to protect their bodies and the planet.
This trend seems to be linked with the attitude that eating healthier and consuming
less red meat will protect the environment as well as increase longevity. In this
chapter, we examine the nature of customer attitudes. We consider the components
and functions of attitudes, and we discuss the formation of attitudes and
attitude change.

Consumer Behaviour 5E.indb 149 2022/03/29 11:20 AM

Consumer Behaviour

9.2 The nature of customer attitudes

9.2.1 Definition of customer attitudes
Attitudes as defined by psychologists are a set of beliefs, behaviours, perceptions
or emotions towards a place, person, object or an activity. Attitude is the sum total
of all the perceptions formed as a result of the life experiences of any person and
the environment they live in. Attitude is a person’s feelings, beliefs or perceptions
about a product or service.1
Thus, for marketers, an attitude refers to the way we as consumers think, feel and
act towards an advertisement they have placed, tweets they have posted, YouTube
videos, a placement on Facebook or a product.
The important aspects of this definition are as follows.
●● Attitudes are learnt: We form attitudes relevant to buying behaviour as a result
of direct experience with the product, information acquired from others and
exposure to mass media, such as advertising in newspapers and on television.
Therefore, we can say that attitudes are learnt.
●● Attitudes tend to be consistent: An important property of an attitude is that it is
relatively consistent with the behaviour that it reflects. However, attitudes are
not necessarily permanent – they can and do change. Normally, we expect
customer attitudes to correspond to behaviour. For example, if a customer
likes white bread, we expect him or her to buy it. Similarly, if a customer
is not particularly fond of white bread, we expect him or her not to buy it.
Thus, when customers are free to act as they wish, we expect their actions to
be consistent with their attitudes.

9.2.2 Attitudes as a combination of interrelated beliefs and values

It is important for marketers to recognise that attitudes are not the
same as the values and beliefs held by consumers.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

A belief is a descriptive thought that a person holds about something. From a

marketing perspective, a belief is a consumer’s perception of how a product
performs. The consumer may, for example, believe that the Tesla motorcar is
technologically advanced, safe to drive, has advanced collision prevention
capabilities, is competitively priced, and is made by an environmentally friendly
and reputable company. The total configuration of beliefs about this motor vehicle
brand represents the cognitive component of an attitude towards Tesla. Values are
the belief system that underlies attitudes and behaviours.

9.3 The ABC model of attitude2

The ABC model of attitude is also referred to as the tripartite model of attitude
and breaks attitude down to its three main components, namely affective attitude
(how we feel about something; feelings), behavioural attitude (what we do

Roberts-Lombard,150M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 150 2022/03/29 11:20 AM

Chapter 9: Customer attitudes

about something: actions/conation) and cognitive attitude (how we think about

something; beliefs). This model helps marketers to define attitudes and dissect them
to see what is happening under the surface. In some instances, the decision-making
process of the consumer cognition influences action, such as when the consumer
wants something and decides not to get it at that time due to the fact that it may be
too expensive. In other cases, affect might influence action or behaviour more than
cognition, such as when we make impulse decisions. Depending on the nature of
the product, one of these three components – feelings, actions or beliefs – will be
the dominant influence in creating a person’s attitude towards a product.

9.3.1 The affective component

The affective component has to do with the consumer’s feelings or
emotions; that is, how we feel about something.
The affective component captures the overall assessment or evaluation of a product
by the consumer. It must be noted that such an evaluation or assessment by the
consumer may be very superficial, with no cognitive information or beliefs about
the object or product. In fact, it may even be based on the actual use of the product
and the evaluation that the consumer has made of certain product characteristics.
Therefore, if a consumer claims that, for example, a specific restaurant is expensive,
it implies a negative affective reaction to a specific aspect of the product that, in
combination with feelings about other attributes, will determine the overall reaction
to this restaurant. Affect is usually most important for products that we use to say
something about ourselves, such as perfumes. Since products, like other objects
that we react to, are evaluated in the context of a specific situation, a customer’s
affective reaction to a product may change as the situation changes. For example, a
customer may believe that a particular protein shake contains just enough energy
to get him or her through the day without gaining weight. These beliefs may cause
a positive affective response when the customer needs to have enough energy to
get through a busy day.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

9.3.2 The behavioural component

The behavioural component is concerned with the probability or inclination of
a consumer to act in a particular way with regard to the focus of the attitude. In
other words, it refers to our intentions or what we would do. As this component
indicates, certain behaviour will take place based on the outcome of the cognitive
and affective components – in other words, to buy or not to buy?
The customer builds up knowledge regarding a product, but what he or she does
with this knowledge is important to the marketer.

The behaviour that the consumer displays is manifested in both the

intention to buy and the actual buying act.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 151
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 151 2022/03/29 11:20 AM

Consumer Behaviour

Even if a consumer is positive towards a product, it does not mean that they will
buy it. There may be a number of reasons for this. It may be that the consumer
likes a certain product, but chooses not to buy it due to habit in respect of another
brand. The product may also be considered too expensive. Our behaviour often
determines our attitudes to commonly bought items such as chewing gum, in that
we tend to form an attitude based on how the product tastes or performs.

9.3.3 The cognitive component

The cognitive component consists of a customer’s beliefs about an
object; that is, the customer’s knowledge about it.
It also refers to an individual’s knowledge and perceptions. This knowledge takes
the form of beliefs – in other words, the individual believes that the focus of his or
her attitude has particular attributes. For most attitude objects, we have a number
of beliefs. For example, a consumer may believe that one diet cooldrink brand is
the only one that contains no sugar. The brand manager of a competing brand may
know that all diet cooldrinks are sugar-free, but from a strategic viewpoint, it is
important to understand that this is not how the consumer perceives the situation.
Cognition is more critical for important or complex products such as computer
systems, which require us to process objective or technical information before we
can come to a decision.
A customer’s beliefs about a brand are the characteristics they ascribe to it. There
are two types of beliefs, namely informational and evaluative:
1. Informational beliefs are associated with product attributes, such as the
number of kilojoules it contains or its vitamin content.
2. Evaluative beliefs are associated with product benefits, such as economy,
flavour, and so on.

Benefits are a basis for:

●● defining an opportunity, for example ‘Is there a market segment that

emphasises nutrition? What is its size?’
●● positioning a new product, for example ‘Can we introduce a new beverage to
appeal to this segment?’
●● developing an advertising strategy, for example ‘What symbols, ideas and
messages will communicate nutrition to the whole family?’3

Through market research, marketers develop a vocabulary of product attributes and

customer benefits.
These vocabularies are usually based on the results of a series of in-depth interviews
with customers. Once marketers establish such a vocabulary, they include it in a
questionnaire and conduct a customer survey in which respondents are asked to
rate brands using the vocabulary.

Roberts-Lombard,152M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 152 2022/03/29 11:20 AM

Chapter 9: Customer attitudes

9.3.4 Component consistency

The affective, behavioural and cognitive components of attitudes tend
to be consistent.
This means that these components are interrelated. A change in one component
tends to produce related changes in the others. Any one of the three components
can win out in a decision and this can change depending on the situation. So at
different times one comes first, second and third. Some examples are as follows:4
●● Affect-Behaviour-Cognition: A person needs to make a decision that is
low-cost, such as buying an ice cream. Affect might be more important than
cognition here, as there is low risk in this action.
●● Cognition-Affect-Behaviour: A person needs to buy gas for their car.
They know they need gas for the car to drive, but don’t want to spend the
money. The cognition here wins over because it’s more important that the
task be done than attending to your negative feelings about the task.
●● Behaviour-Cognition-Affect: A person buys a vacuum cleaner, which
turns out to fail after a week. They re-assess how they think of the purchase
(it wasn’t worthwhile!) and now have a negative affect (dislike for) toward the
object or brand.

Consider the following example.

EXAMPLE

Component consistency
John is a businessman who plays golf on a regular basis for relaxation and business.
Whilst playing golf one Friday afternoon with potential business partners, his nine
iron golf club broke. Of course, he was furious. Influences such as John’s emotional
state at the time and a recent advertising campaign for a specific brand of golf clubs
Copyright © 2012. Juta & Company, Limited. All rights reserved.

can activate a set of leading beliefs in John’s mind about golf clubs. John will draw
from a vast array of beliefs about golf clubs and use the prevailing set of salient
beliefs to form an attitude about his current brand of golf clubs. John’s attitude
about golf clubs will then have an important influence on his buying decision when
it comes to obtaining a new golf club.
Marketers are ultimately concerned with influencing behaviour. However, it is often
difficult for marketers to influence behaviour directly, as they cannot directly cause
consumers specifically to buy or use their products. However, customers will often
listen to salespeople, attend to advertisements or examine product packaging.
Therefore, marketers can indirectly influence behaviour by providing information,
music, colour or other stimuli that influence a customer’s belief or feeling about the
product, if the three components are indeed consistent with each other.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 153
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 153 2022/03/29 11:20 AM

Consumer Behaviour

9.4 The functions of attitudes

We now consider how attitudes fulfil important functions in helping customers
to adjust to difficult situations, express their values, organise their knowledge and
defend their egos in threatening situations. Unless marketers know the function
served by a particular attitude, they are in a poor position to understand or
influence it.
Attitudes serve four major functions for the consumer: (1) the adjust ment
funct ion (utilitarian), (2) the ego-defensive function, (3) the value expressive
function, and (4) the knowledge function. Ultimately, these functions serve
people’s need to protect and enhance the image they hold of themselves. In general
terms, these functions are the motivational bases that shape and reinforce positive
attitudes toward goal objects perceived as need satisfying and/or negative attitudes
toward other objects perceived as punishing or threatening. The functions
themselves can help us to understand why people hold the attitudes they do toward
psychological objects.5
Each of these functions is discussed below.6

9.4.1 The adjustment or utilitarian function

This function of attitude is focused on directing people toward pleasurable
or rewarding objects and away from unpleasant, undesirable ones. It serves the
utilitarian concept of maximising reward and minimising punishment. This means
that the attitudes of consumers depend to a large degree on their perceptions of what
is needed, satisfying and what is punishing. Because consumers perceive products,
services and stores as providing satisfying or unsatisfying experiences, we should
expect their attitudes toward these objects to vary in relation to the experiences
that have occurred. Put differently, the utilitarian function of attitudes deals with
the fact that people make their feelings known in such a way as to maximise the
rewards they can secure and to minimise the punishments they receive from
Copyright © 2012. Juta & Company, Limited. All rights reserved.

others. In this sense, attitudes guide behaviour to gain positive reinforcers and
avoid punishers. Simply, we are nice to people who are nice to us, and we avoid
people who are unpleasant.
From a marketing point of view, this means that

customers will have a more positive disposition or attitude towards a

product they are satisfied with,
while they will have a more negative attitude or disposition towards those
products they are not satisfied with. In this way, our attitudes become guides to
behaviour that will satisfy our needs. For example, a salesperson may learn that
making positive comments to a customer – that is, expressing favourable attitudes
– is more likely to result in a sale. This therefore becomes a positive reinforcer.
Similarly, someone may express a positive attitude towards a particular car
brand, such as Mercedes Benz, to gain the approval of someone known to be a
Mercedes Benz fanatic.

Roberts-Lombard,154M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 154 2022/03/29 11:20 AM

Chapter 9: Customer attitudes

9.4.2 The ego-defensive function

The function of ego-defensive attitudes is self-protection. People use
these attitudes to protect themselves from truths about themselves or
the realities associated with living in the real world.
Ego-defensive attitudes are formed to protect a person’s self-image. Many outward
expressions of such attitudes reflect the opposite of what the person perceives
themselves to be. An example is when a person has made a poor purchase of an
investment in a new share but vehemently defends their decision as the correct
decision at the time. The ego-defensive function is also called the self-esteem
maintenance function. Most people want to protect their self-image from feelings
of doubt. By acknowledging this need, marketers can play on the self-esteem needs
of consumers – something that is done well by companies selling cosmetics. They
focus on informing the customer that the product will make her look younger,
fresher and more beautiful, thereby reinforcing the customer’s self-concept.
For example, an advert by a cosmetics company will claim that their products can
make age lines disappear and make a person look years younger. This supports and
reinforces the potential customers’ sense of self-worth.

9.4.3 The value-expressive function

The value-expressive function of attitudes refers to how people express
their central values to others.
This function allows the customer to demonstrate their basic values positively.
Consumers therefore adopt certain attitudes in an effort to translate their values
into something more tangible and easily expressed. A conservative woman, for
example, might develop an unfavourable attitude toward clothes that are too
revealing and would instead opt for clothes that are more baggy and dark and less
Copyright © 2012. Juta & Company, Limited. All rights reserved.

revealing.7 Likewise, the customer who always buys the least expensive product is
exercising the value-expressive function. Value-expressive attitudes is a manner
in which a person can express to others how they feel about something, be
it a cause or product. Marketers must ensure that they understand what values
consumers wish to express about themselves and adapt their product offerings and
promotional campaigns in order to cater for these self-expressions. Not all products
lend themselves to this form of market segmentation; products with the greatest
potential for value-expressive segmentation are ones with high social visibility.
Exclusive boutiques, Mont Blac pens, Bugatti cars, and such items are examples.
By understanding target customers’ attitudes, marketers can be more focused on
their marketing efforts and more skilfully appeal to the market’s values, lifestyles
and outlooks.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 155
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 155 2022/03/29 11:20 AM

Consumer Behaviour

9.4.4 The knowledge function

The nature of human behaviour is such that people prefer to strive for a structured
and orderly world, and therefore they look for stability and understanding. From
this desire, an attitude develops to acquire knowledge, and this need tends to be
specific. A person who does not want to learn how to paint will not seek knowledge
or an understanding of how to paint. Consequently, this will determine how much
time will be devoted to searching for information on the topic. Therefore out of
this need to know things, the consumers’ attitudes develop regarding what they
believe they need or do not need to understand.
Attitudes have the ability to make it possible for customers to make the complexities
in real life more simple. This means customers develop means by which to simplify
situations in a complex world. These means include sensory thresholds, selective
attention and attitudes.
For example, a customer may develop certain attitudes towards salespeople who do
not look neat, or retail stores that play loud music. Whenever this customer comes
into contact with such a salesperson or store, he or she will interpret the encounter
according to these established attitudes. Therefore, the customer will probably resist
the salesperson’s selling efforts without thinking about it. The attitude simplifies
the encounter for the customer, allowing him or her to focus on matters seen as
more important.

9.5 Attitude formation

People are not born with attitudes – they learn them. We now explore the ways in
which this happens.

9.5.1 Classical conditioning8

Classical conditioning can be defined as ‘a process through which a previously
Copyright © 2012. Juta & Company, Limited. All rights reserved.

neutral stimulus, by being paired with a conditioned stimulus, elicits a response

similar to that originally elicited by the unconditioned stimulus’. Using classical
conditioning terms (see Chapter 7), the brand name is the unconditioned stimulus
that creates a positive attitude based on the fact that there is repetition and
positive reinforcement.
The concept of family branding is based on classical conditioning as a form of
attitude learning. For example, if Kelvinator introduced a new appliance to its
already extensive range, this new appliance would benefit from the well-known
and respected family name. The existing positive associations with the brand would
make introducing an extension to the range easier. In other words, Kelvinator would
be counting on stimulus generalisation from the brand name to the new product.
Similarly, marketers who associate their new products with celebrities are trying to
create a positive bond between the celebrity, towards whom many customers may
already have a positive attitude, and the ‘neutral’ new product. The recognition
and goodwill (the positive attitude) that the celebrity enjoys is transferred to the
product, so that potential customers will quickly form positive attitudes towards it.

Roberts-Lombard,156M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 156 2022/03/29 11:20 AM

Chapter 9: Customer attitudes

9.5.2 Instrumental conditioning

Sometimes, attitudes are formed only after the buying and consumption
of a product.
For example, a customer may buy a brand-name product (without already having
an attitude towards it) because it is the only product of its kind available, like a
diet cooldrink at a garage. Customers also make trial purchases of new brands from
product categories in which they have little personal involvement. If they find the
brand satisfactory, they are likely to develop a favourable attitude towards it.

9.5.3 Cognitive learning theory

In situations where customers seek information about a product in order to solve
a problem or satisfy a need, they are likely to form positive or negative attitudes
about the product on the basis of an information search and their own cognitions,
or knowledge and beliefs. Consider the example of Justine, a stay-at-home mom
who loves red velvet cake, and who is considering making a red velvet cake for
her daughter’s birthday. However, she knows this cake can easily flop. If Justine
hears that a brand called Glad Bake offers a red velvet cake mixture that promises
to be perfect every time, she is likely to form a positive attitude towards the brand
Glad Bake. In general,

the more information customers have about a product or service, the

more likely they are to form attitudes about it – either positive or negative.
However, regardless of available information, customers are not always ready or
willing to process product-related information.

9.5.4 Experience
The primary means of forming attitudes towards goods and services is
Copyright © 2012. Juta & Company, Limited. All rights reserved.

through the consumer’s direct experience in trialling and evaluating them.

Recognising the importance of direct experience, marketers often attempt to encourage
consumers to try out new products by offering coupons or even free samples.

9.5.5 External authorities

As we come into contact with other people, especially our friends, or individuals
such as teachers, parents and other adults who we admire, we acquire attitudes
that influence our lives. The extent to which customers believe one authority
over another depends on the feeling of trust and respect that they have for that
authority. Customers tend to identify with people who they regard as being more
or less the same as they are, rather than with movie stars or public figures – a
tendency effectively utilised by advertisers. This identification is based on the fact
that customers trust the opinions of people like themselves, because they feel that
someone similar to them can better appreciate their problems and concerns.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 157
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 157 2022/03/29 11:20 AM

Consumer Behaviour

9.5.6 Marketing communications

Our attitudes are influenced most strongly when the brand has something unique
to offer and when these unique benefits are the focus of the advertisement. The
source of a message is also important, because customers respond differently to the
same message delivered by different sources. It is easier for marketers to influence
attitudes when the target market thinks the source of the message is highly credible.

Marketing communications are an important part of influencing, building

and maintaining positive consumer attitudes towards a company and
its products.
The message may be delivered via television, newspapers, magazines, billboards,
radio or the internet. It could also come from personal communications such as
word of mouth and family. Promotional messages originate from the manufacturers.
The degree of persuasiveness of these messages will depend on the target market’s
existing level of knowledge and brand loyalty.9

9.6 Attitude change

Because the basic goal of many marketing communications is to influence customers’
attitudes towards a product, the ABC model (as discussed in Section 9.3) has
important implications for marketers. Marketers can either decide to focus on using
their marketing offerings to complement the identified attitudes of consumers, or
they can try to change the existing attitudes, which is more difficult to do.

EXAMPLE

Attitudes towards smoking

Fifty years ago, smoking cigarettes was commonplace and an intrinsic part of
Copyright © 2012. Juta & Company, Limited. All rights reserved.

everyday life – people smoked in the cinema, in the theatre, on public transport,
in restaurants and at work. When governments started to learn more about the
devastating effects of smoking, anti-smoking campaigns were launched to warn
people of the dangers of smoking. Today, increasingly graphic images of tar-
ridden lungs and rotting gums confront smokers in anti-smoking advertisements,
in an attempt to change people’s attitudes towards smoking. Consumers are made
aware of the dangers of smoking through anti-smoking campaigns, government
anti-smoking literature and tough legislation governing the sale and advertising
of cigarettes.10 In Western countries, the number of people who smoke has been
declining steadily, pointing to a possible change in attitudes about smoking.

We now look at strategies that can be used to get people to change their attitudes.

Roberts-Lombard,158M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 158 2022/03/29 11:20 AM

Chapter 9: Customer attitudes

9.6.1 Changing the affective component

Increasingly, marketers are trying to influence customers’ liking of a
brand without directly influencing either their beliefs or their behaviour.
If marketers follow this approach, the fact that consumers like their brands will
result in increased positive beliefs, which could lead to the customers buying the
product if they need it. We now examine the three basic approaches that marketers
use to increase affect.

Classical conditioning
In this approach, marketers consistently link a stimulus that the audience likes,
such as music or pictures, with the brand name. Over time, some of the positive
affect associated with the stimulus will transfer to the brand.

Producing positive affect towards the advertisement

Usually, if a customer likes an advertisement, he or she will tend to like the product
as well. Positive affect towards the advertisement may increase the liking of the
brand through classical conditioning. Using humour, celebrities or emotional
appeals, marketers also endeavour to increase affect towards the advertisement.
Advertisements that arouse negative affect, or emotions such as fear or guilt, can
also enhance attitude change. For example, an advertisement for a product that
uses child labour could cause a variety of unpleasant emotions, such as disgust or
anger, and still be effective.

Mere exposure
Another method for creating positive feelings in customers is to expose them
repeatedly to a stimulus. All else being equal, through mere exposure, people’s liking
Copyright © 2012. Juta & Company, Limited. All rights reserved.

for something may simply increase because they see it over and over again. Thus,
the repetition of advertisements may well increase liking and cause the customer to
buy the product without altering their initial belief structure. However, if customers
perceive the advertisement negatively, repeated exposures will probably lead to an
intense dislike of both the advertisement and the product.

9.6.2 Changing the behavioural component

Buying or use behaviour may precede the development of cognition and affect.
For example, a customer may dislike the taste of diet soft drinks and believe that
artificial sweeteners are unhealthy. However, the customer may accept a diet drink
when offered one by a friend rather than appearing rude. Drinking it may alter the
person’s perception of its taste and lead to them liking it. This, in turn, may lead to
increased learning, which changes the cognitive component.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 159
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 159 2022/03/29 11:20 AM

Consumer Behaviour

The attitudes that are formed in this manner, in other words, by the
customer trying a product, are usually strongly held.
Behaviour can lead directly to affect, to cognitions or to both simultaneously.
Customers often try new brands or types of low-cost items in the absence of prior
knowledge or affect. They do so to gain information as to satisfy some underlying
need such as hunger. Changing behaviour before changing affect or cognition
is based primarily on instrumental conditioning: customers learn through a
trial-and-error process in which buying one product results in more favourable
outcomes than buying another. In other words, they are ‘rewarded’ for choosing an
appropriate behaviour, namely buying the product. Here, the key marketing task is
to encourage people to buy or consume the product, while also ensuring that this
will lead to rewards.
For this reason, coupons, free samples, point-of-purchase displays and price
reductions are often used to encourage trial behaviour. Since behaviour leads to
strong positive attitudes towards the consumed brand, it is important to avoid
‘stock-outs’ – situations where the shop runs out of supplies of a product – as this
could lead to customers trying competing brands.

If marketers want to establish a customer’s brand loyalty, they should

consider not only behavioural brand loyalty, but also attitudinal
brand loyalty.
Customers’ behavioural brand loyalty can be determined easily, as it simply depends
on customers repurchasing the same brand, and it does not indicate whether they
actually like the brand more than other brands. It is therefore also necessary to
assess customers’ attitudes towards the brand. Only when a customer’s attitude to a
brand is more favourable than his or her attitude to competing brands should that
customer be considered brand loyal. This way of looking at brand loyalty – that is,
a greater liking for the brand – is termed attitudinal brand loyalty. Marketers measure
Copyright © 2012. Juta & Company, Limited. All rights reserved.

this by asking customers to rank various brands in terms of how much they like a
brand and which brand they like the most.

9.6.3 Changing the cognitive component

To change attitudes, marketers can focus on the cognitive component. To change
a customer’s attitude towards drinking alcohol, for example, marketers need to
present information on the negative health consequences of drinking alcohol. By
influencing this belief, marketers will change customers’ affect and behaviour. We
now examine the four basic strategies that marketers can use for changing the
cognitive structure of a customer’s attitudes.

Roberts-Lombard,160M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 160 2022/03/29 11:20 AM

Chapter 9: Customer attitudes

Changing beliefs
This strategy involves shifting beliefs about the performance of a brand on one or
more attributes. For example, many customers believe that American cars are not
as well made as Japanese cars. A lot of advertising for American cars is designed to
change this belief by providing facts or statements about performance.

Shifting performance
Most people consider some product attributes to be more important than others.
Marketers often try to convince customers that the attributes on which their brands
are relatively strong are the most important. For example, Flora pro-activ stresses
the fact that consumption of its ingredients has been shown to reduce cholesterol.
They use the theme of lowering cholesterol in just three weeks in their advertising.

Adding beliefs
Marketers can also try to add new beliefs to the customer’s belief structure, for
example, by promoting freshness in the form of the ‘born on (date)’ label as an
important attribute for a beer. Before the campaign, few considered the age of a
beer to be a relevant attribute.

Changing the ideal

Marketers can change attitudes by changing the perceptions of the ideal brand
or situation. Many conservation organisations try to influence our beliefs about
the ideal product by stressing the advantages to the environment of minimal
packaging, non-polluting manufacturing, extensive use of recycled materials and
non-polluting disposal at the end of the product’s useful life.

9.6.4 Factors that influence attitude change

Attitudes that are strongly held are more difficult to change than those
that are weakly held.
For example, few committed smokers read articles on the harmful effects of smoking.
If they do encounter messages that warn against smoking, they tend to discount
these. Because of this, most marketers do not try to capture sales from customers
who are committed to competing brands. Rather, they focus on customers who are
less committed, as these customers are more willing to attend and respond to their
messages. A great deal of marketing effort is aimed at persuasion, which could be
defined as attempted attitude and behaviour change. Attitudes are essentially stable
structures and are not easily modified. Marketers agree that changing attitudes is
a difficult and expensive exercise. There is no doubt that the older people get, the
more fixed in their ways they become and the more difficult it becomes to change
their minds over strongly held views.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 161
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 161 2022/03/29 11:20 AM

Consumer Behaviour

The source of a message is important because customers respond differently to the

same message delivered by different sources. Celebrity sources, for example, may
enhance attitude change for a variety of reasons. They may attract more attention
to the advertisement than non-celebrities would. Or, in many cases, they may be
viewed as more credible than non-celebrities. Customers tend to identify with or
emulate a celebrity. The effectiveness of using a celebrity to endorse a company’s
product can generally be improved by matching the image of the celebrity
with the personality of the product and the actual or desired self-concept of
the target market.
The appeal used in an advertisement is also a factor in influencing attitudes.
Consider the following advertising appeals:
●● Fear appeals use the threat of negative consequences if attitudes or behaviour
are not altered. For example, social fears imply the threat of peer disapproval
for wearing the ‘wrong’ clothing.
●● Humorous appeals are built around the product, for example, the range of
Yebo Gogo advertisements from Vodacom.
●● Emotional appeals are designed to create a positive affective response rather
than to provide information or state an argument. Emotional advertisements,
such as those that arouse feelings of warmth, trigger a physiological reaction.

CASE STUDY: Tropika

Tropika, a dairy fruit juice mix brand, was launched in South Africa by Clover in
1984. Tropika is available in the following flavours: orange, pineapple, tropical and
granadilla, and Cool Colours apple, tutti frutti, grape and red berry. Tropika has
always held its position as the number one dairy fruit juice mix brand with 56% of
the market share in 2003. The main challenge Tropika therefore faced was how
to ensure further growth for a brand already occupying the number one position.
In 2007, Janice Finlay and Associates conducted qualitative research using
Copyright © 2012. Juta & Company, Limited. All rights reserved.

24 focus groups, with subjects aged 18−24 in LSMs 5−7 living in Gauteng and the
Eastern Cape. The aim of the research was to define the current appeal of Tropika
among its core market in order to determine the relevance and current appeal of its
communication platform. Research findings revealed that consumers’ perceptions
of Tropika had shifted – in previous studies it was described only based on its
attributes of smoothness, and now it was being described as a status symbol.

Roberts-Lombard,162M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 162 2022/03/29 11:20 AM

Chapter 9: Customer attitudes

Key research findings were as follows.

●● At an external level, the Tropika brand is worn like a status symbol: the
brand commands recognition in townships, giving these consumers status.
They become the trendsetters and they are referred to in township terms
as the ‘cheese boys’ (self-elected charmers, virile and desirable, described
as ‘Mr Cool’) and ‘cheese girls’ (sexy, admired, stylish icons). Tropika is
perceived as the perfect date drink in the townships, used by ‘cheese boys’
to spoil their ladies.
●● Today this still holds true: Tropika’s continued success can be attributed
to its ability to keep the brand relevant and contemporary in the minds of
the consumer, satisfying the consumer’s needs on both a functional and
emotional level.

9.7 Summary
In this chapter, we focused on customer attitudes, dealing with the nature of
attitudes and their functions. We examined the components of attitudes, using
the ABC model. Our discussion of the formation of attitudes involved the ways in
which attitudes are formed. We concluded the chapter by looking at ways in which
attitudes can be changed.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. With the aid of practical examples, explain the nature of customer attitudes.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

2. Attitudes have three components. What are the implications of these

components in terms of the ABC model of attitude?
3. What functions do attitudes fulfil in our lives?
4. Explain how attitudes are formed.
5. How can marketers try to change customer attitudes?
6. With reference to the case study, answer the following questions:
A. What strategies for influencing people’s behaviour can be adopted by
Tropika?
B. How will attitudes towards Tropika influence consumers’ beliefs?
C. Explain how beliefs influence attitudes.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 163
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 163 2022/03/29 11:20 AM

Consumer Behaviour

Multiple-choice questions
1. Which of the following statements are true for the term ‘attitude’?
1.1 It affects the ways in which individuals judge and react to other people.
1.2 Enthusiastic, positive, indifferent and negative.
1.3 It is formed because of the different needs of a customer.
1.4 It describes the way customers feel, think and act.
A. 1.1, 1.2 and 1.3
B. 1.1, 1.2, 1.3 and 1.4
C. 1.2, 1.3 and 1.4
D. 1.1, 1.2 and 1.4
2. Which one of the following is a way in which an attitude is formed or learnt?
A. Indirect experience with a product, company or service
B. Through the customer’s own perception
C. Via exposure to advertising
D. It depends on the mood of the customer.
3. Which one of the following is the three correct components of an individual’s
attitude?
A. Feelings, behaviour, cognition
B. Affect, actions, self-actualisation
C. Behaviour, knowledge, beliefs
D. Feelings, knowledge, cognition.
4. Which of the following statements are true for the cognitive component of
attitude?
4.1 Beliefs need to be true and correct for the customer.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

4.2 Beliefs can be divided into informational and evaluative beliefs.

4.3 The knowledge that customers have of a product is the same as their
beliefs in that product.
4.4 The beliefs about a product represent the cognitive component of an
attitude towards this product.
A. 4.1, 4.2 and 4.4
B. 4.2, 4.3 and 4.4
C. 4.2 and 4.3
D. 4.1, 4.2 and 4.3

Roberts-Lombard,164M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 164 2022/03/29 11:20 AM

Chapter 9: Customer attitudes

5. Which one of the following beliefs is associated with product benefits?

A. Informational beliefs
B. Evaluative beliefs
C. Perceptive beliefs
D. Interrelated beliefs.
6. Which of the following statements are reasons for a customer not to buy a
specific product?
6.1 The customer is loyal to another brand.
6.2 The customer might like another brand more.
6.3 The product is unaffordable.
6.4 The customer is influenced negatively by a reference group.
A. 6.1, 6.2, 6.3 and 6.4
B. 6.1, 6.2 and 6.3
C. 6.1, 6.3 and 6.4
D. 6.2, 6.3 and 6.4
7. Which one of the following is an effective way of keeping an attitude consistent?
A. Keep customers up to date with the specific product.
B. Provide information or any form of stimuli that influences the customer’s
belief about the product.
C. Listen to what customers have to say.
D. Marketers need to change the attitude components on a regular basis.
8. Which one of the following best describes the utilitarian function?
A. This function describes how people express their main values to other people.
B. This function protects people from realities in the external world.
C. It is when people express feelings to maximise rewards and minimise
Copyright © 2012. Juta & Company, Limited. All rights reserved.

punishments.
D. It is how people understand their environment.
9. The affective component involves …
A. values and feelings
B. emotions and feelings
C. experiences and values
D. values and emotions.
10. Which one of the following is a method by which attitudes are learnt?
A. Repetition
B. Financial conditioning
C. Instrumental conditioning
D. Value development.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 165
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-19 12:06:08.

Consumer Behaviour 5E.indb 165 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 166 2022/03/29 11:20 AM

Chapter
PERSONALITY AND
10 SELF-CONCEPT
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain the nature of personality
■■ Discuss the characteristics of personality
■■ Discuss the major theories of personality
■■ Explain the influence of personality on lifestyle
■■ Explain the value of personality to marketers
■■ Discuss what is meant by the terms ‘self’ and ‘self-concept’.

10.1 Introduction
The main reason for studying consumer behaviour from a marketing point is first
to understand the needs of a buyer and, secondly, to convert them into a customer.
Marketers can only understand a buyer’s habits and priorities once they understand
the buyer’s personality. Needs and motives provide the foundation for behaviour,
while the study of personality attempts to categorise behaviour systematically. It can
therefore be said that there is a relationship between motivation and personality.
As marketers, we strive to fulfil the needs of our customers, but what makes it
complicated is that there are many ways in which an individual can satisfy one
need. What makes it even more complex is the fact that customers seem to have
quite different need strengths.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

The digital age has made a strong impact on the way marketers profile and evaluate
their markets. While personality has always been a consideration in consumer
profiling when focusing on their target market, marketers are aware of the fact
that much has changed in terms of how they can connect with their audiences via
digital advertising platforms.
Personalities represent characteristics that determine and reflect how individuals
respond to their environment. These characteristics are attributes, traits, qualities,
factors and mannerisms that distinguish one individual from another. In other
words, the inner psychological characteristics that both determine and reflect how
a person responds to their environment.1

Consumer Behaviour 5E.indb 167 2022/03/29 11:20 AM

Consumer Behaviour

The fact that we are all living in a digital world means it is affecting and exposing
the personalities of both customers and brands alike like never before.
Not only are brands becoming even more aware of these idiosyncrasies, but con
sumers are becoming more interested and informed about the discovery of self,
the value of introspection, how they portray themselves to the world, the brands
they choose to align with their concept of self, and the portrayal thereof. Never
before have brands, personal lives, or selves been more exposed. In our digitally
social world, even the slightest deviation or show of incongruence in personality is
detected immediately.2

It is not in the power of marketers to change consumers’ personalities to conform

to their brands or products, but if they are aware of which characteristics influence
specific responses, they can better design and adapt their market offerings and
strategies and engage with consumers by aligning with relevant and inherent
traits. An individual’s personality tends to be both consistent and enduring, but
the environment has changed drastically; we need to anticipate how various
personalities would respond in these digital environments.3
Marketing strategies are often related to customer characteristics and behaviours.
An example is alcohol advertisements that target innovators. Innovators are young
consumers who are more willing than other customers to try new things and
products. Knowledge about the behaviour and perceptions of these customers is
therefore crucial to the sustainable and successful implementation of a marketing
strategy. We can thus say that personality and customer behaviour are intricately
linked and that an understanding of personality is vital to marketers.

10.2 The nature of personality

Personality can be defined and explained in different ways. ‘In consumer studies,
personality is defined as consistent responses to environmental stimuli or we can
also say patterns of behaviour that are consistent and enduring. An individual’s
Copyright © 2012. Juta & Company, Limited. All rights reserved.

personality helps marketers to describe consumer segments as it provides for orderly

and coherently related experiences and behaviour.’4
Personality characteristics are often and extensively used by marketers as a basis
for product positioning. For example, a Ford Mustang may be aimed at the segment
of specifically male consumers who are in their middle ages but see themselves as
still young.
In traditional societies, a person’s consumption options are largely dictated by that
person’s class, status, village or family. In modern society, however, we are free to
select the set of products, services and activities that define a sense of self. Each of
us creates a social identity, which we then communicate to others.
Our choice of goods and services makes a statement about who we are, the types of
people we want to identify with, and even those we wish to avoid.
Some theorists who have studied personality emphasise the dual influence of
heredity and early childhood experiences on personality development. Others have

Roberts-Lombard,168M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 168 2022/03/29 11:20 AM

Chapter 10: Personality and self-concept

stressed broader social and environmental influences and the fact that personalities
develop continuously over time. Certain theorists prefer to view personality as
a unified whole, while others focus on specific traits. The wide variety of views
on personality makes it difficult to arrive at a single definition. The American
Marketing Association (AMA) endorses the following definition of personality:5
an individual’s consistency in coping with one’s environment. Personality is the
consistent pattern of responses to the stimuli from both internal and external
sources. It is this consistency of response that allows us to group people as aggressive
or submissive, as obnoxious or charismatic. The particular theory or philosophy
of motivation and personality held by scholars in this field colours their views,
research, and even definitions of the term. Nevertheless, ‘a consistent pattern of
responses in coping with perceived reality’ is a good working definition.

The emphasis in this definition is on the person’s inner characteristics, those

specific qualities, attributes, traits and mannerisms that distinguish one individual
from another. These deeply ingrained characteristics that we call ‘personality’ are
likely to influence the individual’s product and store choices, as well as the way
they respond to the marketer’s promotional efforts. Based on this, it is clear that
marketers can use the linkages they find between specific personality characteristics
and its associated customer behaviour useful in the development of their market
segmentation strategies. (For a discussion of market segmentation, see Chapter 11.)

Psychographics measure the motivations behind behaviour and try to

explain why individuals accept or reject a message, act on it or ignore it.
Psychographic segmentation is thus essentially about the study of attitudes,
motivations, personality characteristics and belief systems. By using the information
from psychographic segmentation, marketers are better positioned to identify and
focus on the most likely buyers of their products and services.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

10.3 The characteristics of personality

Personality, in a nutshell, is the sum of the ideas, attitudes and values of a person
which determine their role in society and form an integral part of their character.
Personality is acquired by the individual as a result of their participation in group
life. It refers to something much more essential and enduring about a person.6
When studying personality, we need to take the following four aspects into account:
1. Personality reflects individual differences and is something that is unique in
each individual.
2. Personality is consistent and enduring.
3. Personality represents a dynamic orientation actualising itself in an
environment.
4. Personality can change and is influenced by social interactions.

In the following sections, we consider each aspect in turn.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 169
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 169 2022/03/29 11:20 AM

Consumer Behaviour

10.3.1 Personality as reflecting individual differences

When referring to personality, we refer to internal and external qualities – but not
all are unique. Some are more general in nature. However, personality is unique
to every individual as it is impossible for one person to imitate the personality
qualities of another person. Each individual has their own inner characteristics
and is not the same as another. There are differences in each person’s heredity,
early childhood experiences, cultural exposure and personal motivation, which
themselves make personality impossible to be replicated by another person. Yet,
large numbers of individuals tend to be similar in terms of a single personality
characteristic. For example, some people can be described as being sociable while
others can be described as being low in sociability.

The value of the study of personality lies in the fact that marketers can
categorise people in different groups based on one or a few traits.
People are not so different in all respects; if there were no commonalities, it would
not be possible to group or segment them into similar groups. If that were the case,
there would be no reason to develop products aimed at specific groups.

10.3.2 Personality as consistent and enduring

An individual’s personality is characterised by stability during change. Consistency
gives direction to a person’s behaviour and sustains them in the face of experience
that changes all the time.

Consistency refers to enduring, but not unchanging, qualities of per

sonality. It also gives the behaviour of a person a measure of predictability.
The stable nature of personality suggests that it is unreasonable for marketers to
try to change customers’ personalities to conform to certain products. At best,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

marketers learn which personality characteristics influence particular customer

responses and attempt to appeal to relevant personality traits inherent in their
target group of customers.
While an individual’s personality may be largely stable, specific needs, motives,
attitudes and reactions to group pressure may cause a change in a person’s
behaviour. Therefore, personality is only one of a combination of factors that
influence how a customer behaves. These factors emphasise the place of learning in
individual behaviour. Marketing segmentation that is based on the assumption that
a customer’s personality and behaviour changes little over time, and is therefore
easy to predict, is called tradition-directed behaviour segmentation, and is a form of
psychographic and lifestyle segmentation.

Roberts-Lombard,170M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 170 2022/03/29 11:20 AM

Chapter 10: Personality and self-concept

10.3.3 Personality as a whole actualising itself in an environment

Just as an individual’s separate acts cannot be understood apart from the whole
person, so the whole person cannot be fully understood if abstracted from the
environment. Some of the most important characteristics of the whole individual
are derived from their environment, especially from the sociocultural environment
with all its customs.

Differences in personality are expressions of inherent tendencies, and

even more of events in the social environment.

10.3.4 Personality can change

Even though personality tends to be consistent and enduring, it may
change under certain circumstances.
On the one hand, this could be owing to major life events such as a serious car
accident, a hijacking, the death of a loved one or a career promotion. On the
other hand, this could be part of a gradual maturing and growth process that all
individuals go through.

10.4 Personality theories

Based on the rather conflicting characteristics explored above, various personality
theories have been developed and subsequently used in marketing and customer
behaviour research. These theories provide the structure for a review of a large body
of evidence, all of which has implications for the analysis of customer behaviour.
The theories discussed in the following sections have all played a prominent role in
the study of the relationship between consumer behaviour and personality.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

10.4.1 Freud’s psychoanalytic theory of personality

This theory provides the foundation for the study of motivational research, which
operates on the premise that human drives are largely unconscious in nature and
serve to motivate many customer actions. As a result,

the emphasis in motivational research studies is on discovering the

underlying motivations for specific customer behaviour.
The motivational researcher tends to focus on what the customer buys, treating
the purchases as a reflection and extension of the customer’s personality. In other
words, the clothes consumers wear, and the images they display, often reflect their
personalities. This view of product personality suggests that using a particular
product, such as an expensive car, enhances a person’s self-confidence.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 171
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 171 2022/03/29 11:20 AM

Consumer Behaviour

10.4.2 Neo-Freudian theory

This is an extension of Freudian theory, as its name implies. It tends to emphasise
the fundamental role of social relationships in the formation and development of
personality, for example a person’s desire to overcome feelings of inferiority –
that is, to strive for superiority and to conquer feelings of anxiety. Although neo-
Freudian theories of personality have not received wide attention, it is likely that
marketers have employed some of these theories intuitively. For example, marketers
who position their products as being unique or for non-conformists seem to be
guided by neo-Freudian theory’s characterisation of a ‘detached individual’ – a
person seeking independence and individuality.

10.4.3 Trait theory

This theory focuses on the measurement of personality in terms of specific
individual psychological characteristics called traits. A trait can be defined as
any distinguishing, relatively enduring way in which one individual differs from
another. The theory states that individuals possess innate psychological traits –
such as self-confidence, aggression, responsibility or curiosity – to a greater or
lesser degree, and that these traits can be measured by specially designed scales.
Trait theorists are concerned with the construction of personality tests that
pinpoint individual differences in terms of specific traits. For example, individuals
may distinguish other people as being reserved or outgoing. In this way, people
intuitively evaluate and ‘label’ each other in terms of traits.

10.4.4 Gestalt theory

In marketing, the Gestalt theory is generally used as the basis for evaluating customer
personality. This theory states that people do not experience the numerous stimuli
they select from the environment as separate and discrete sensations; rather, they
tend to organise them into groups and perceive them as unified wholes. Thus, the
Copyright © 2012. Juta & Company, Limited. All rights reserved.

perceived characteristics of even the simplest stimulus are viewed as a function

of the whole to which the stimulus appears to belong. Experiments prove that
individuals respond to stimuli in relation to their experiences. It is consistent with
Gestalt theory that

attitudes, perceptions, aspirations, self-concepts, satisfaction, frus

tration and motivation are all necessary to explain and understand
human personality and, therefore, a customer’s behaviour.
Another basic idea is that the whole person is greater than the sum of their parts,
and personality cannot be determined by a consideration of separate characteristics.
Personality is as much a product of the environment as it is of the individual’s
mind. In addition, the Gestalt theory states that customers try to stabilise their
psychological field by providing meaning to the surrounding world. They try
to reduce tension and conflict between themselves and their environmental
perceptions by the type of market decisions they make.

Roberts-Lombard,172M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 172 2022/03/29 11:20 AM

Chapter 10: Personality and self-concept

The Gestalt theory sets certain principles for advertising in particular. The use of
ordinary people in advertisements is consistent with the theory, as the advertisements
assume that customers can better identify with people like themselves. Personal
selling and advertising that emphasise social acceptance, or show people having
fun – as in beer advertisements, for example – follow Gestalt principles.

There is no doubt that personality is a major factor in customer behaviour. There

is a clear relationship between personality and general behaviour and, therefore,
buying behaviour.

10.5 The influence of personality on lifestyle

Marketers have encountered difficulties in using personality as an easy, reliable and
consistent basis for segmentation. Owing to this, the attention of marketers has
shifted away from personality to lifestyle and to the way in which this influences
customer demand. Lifestyle has been defined in many ways, but put simply, it is how
consumers live and spend their money – it involves their consumption patterns,
their behaviour in the marketplace, habits, ways of doing things, reasoned actions
and how income is spent.7
We have seen that personality determines to a large extent how a person relates
to the environment. This means that an individual’s mode of living or lifestyle
is an expression of that person’s personality, including interests, opinions, needs
and social activities, as well as demographic characteristics such as age, gender
and income.

Lifestyle trends are constantly evolving – a fact that affects what and
how marketers sell.
For example, more and more people are choosing to follow the lifestyle trend of
being healthy. This major change, namely consumers making healthier choices,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

has impacted how many fast-food restaurants advertise their food, and will have an
even bigger impact in the future.
A variety of models for categorising consumers has emerged over the years. One
of these is Taylor Nelson’s model. This monitor typology divides people into three
main groups, which are again subdivided into sub-categories:
1. Sustenance-driven people: Motivated by material security, these people are
subdivided into:
a. the aimless, who include young, unemployed and elderly drifter
b. survivors, who are traditionally minded, working-class people
c. belongers, who are conservative, family-orientated people.
2. Outer-directed people: These people are mainly motivated by the desire for
status. They are subdivided into:
a. belongers
b. conspicuous consumers.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 173
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 173 2022/03/29 11:20 AM

Consumer Behaviour

3. Inner-directed people: This group is subdivided into:

a. social resisters, who are caring and often doctrinaire
b. experimentalists, who are hedonistic and individualistic
c. self-explorers, who are less doctrinaire than social resisters and less
materialistic than experimentalists.

Marketers can use these classifications to construct strategic frameworks for

marketing campaigns both domestically and internationally. As explained
in chapters 8 and 11, Market Research Africa developed a sociomonitor, a
method of evaluating customers’ lifestyles. Such information helps marketers to
segment the market.

10.6 The value of personality to marketers

In the past, demographics have governed the way in which marketers have targeted
customers. The problem is that even though individuals in a specific demographic
category share common characteristics such as age and race, their values,
motivations and beliefs differ significantly. While demographics can render certain
objective facts, for example that the customer owns a car, they cannot explain why
the customer owns that car.
There are certain common obstacles that marketers encounter when using
traditional segmentation strategies:
●● Demographics should not be used to infer an audience’s motivations or
behaviours. Take, for example, the suggestion that all men watch rugby. This
type of inference is a generalisation and is not necessarily based on reality.
●● We may find a multiplicity of attitudes within an audience, and a single
demographic category may have a wide range of attitudes towards a product
or service. Therefore, oversimplifications such as ‘Resistance to authority is a
hallmark of Generation Y’ may be incorrect.
Messages that are targeted at an average are problematic. The ‘average
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●●

consumer’ does not exist, and messages targeted to this ‘mythical audience’
are simply too general to convince or motivate anyone.

Marketers can remove these obstacles by applying psychographic segmentation – in

the use of psychographics, the need to either oversimplify or use averages disappears.
Therefore, marketers can select the most effective method for each segment. For one
segment, the communicated message may confirm a viewpoint, while for another,
it may change a mindset. The behaviour of a particular psychographic segment will
confirm to marketers whether that segment demonstrating a particular attitude
actually follows through with tangible behaviour.
Although little research has yet been done to relate theory and practice, knowledge
of personality and product image is indispensable for marketers, because

customers tend to buy products that will reflect, enhance or even defend
their personalities. In this way, they attach a certain symbolic meaning
to some products, resulting in what is referred to as the product image.

Roberts-Lombard,174M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 174 2022/03/29 11:20 AM

Chapter 10: Personality and self-concept

Knowledge of personality is also valuable in designing appropriate advertisements

that will appeal to groups with similar personalities. For example, when creating
an advertising campaign, marketers should note that highly dogmatic customers
– who approach the unfamiliar defensively and with considerable discomfort and
uncertainty – may be more willing to accept new products if the marketers present
the products in an authoritative manner, for example by using an admired celebrity
or a recognised expert.
In contrast, less dogmatic customers – who have the ability to consider unfamiliar
or opposing beliefs – seem to be more receptive to messages that stress factual
differences and product benefits. Therefore, it would be wise for the marketer to
emphasise in the advertisements the reasons for a new product being technically as
good as competitive products.
Other-directedness is the term used to describe individuals’ attempts to fit in with
and adapt to the behaviour of their peer group. This is opposed to inner-directedness,
which refers to individuals who are seemingly indifferent to the behaviour of
others. Inner-directed people, who use their own values and standards in evaluating
products, prefer advertisements that stress product features and personal benefits,
while other-directed people, who tend to look to others to give direction to their
actions, prefer advertisements that feature a social environment that depicts social
acceptance. Thus, other-directed customers may be more easily influenced because
of their natural inclination to go beyond the content of an advertisement and think
in terms of likely social approval of a potential purchase.

The identification of personality variables that appear to be logically

linked to product usage is likely to improve marketers’ ability to segment
markets, enable them to design specific products that will appeal to
certain personality types, and create promotional strategies that will
appeal to the personality characteristics of existing target markets.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Table 10.1 provides brief descriptions of five advertisements used in a study. It shows
that inner-directed individuals tend to prefer inner-directed advertisements, while
other-directed individuals (or extroverts) prefer other-directed advertisements.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 175
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 175 2022/03/29 11:20 AM

Consumer Behaviour

Table 10.1: Inner- and other-directed personality appeals

Inner-directed appeal Other-directed appeal

Product Slogan Illustration Slogan Illustration
Telephone ‘Personally An independent ‘With one Young women all
company customised young woman at touch, you are around the world
for you’ work, adjusting connected’ connected through
the phone to her using the phone
needs
Sea & Ski ‘For the best A beach scene, ‘Show the Two men and three
protection: showing a young vacation tan: women waterskiing
Sea & Ski’ couple with Sea & Ski’ from the same boat
healthy tans,
surrounded by
people who are
badly burnt
Headache ‘Don’t let a A man struggling ‘Don’t let a A group of women
tablets headache to concentrate at headache chatting over coffee.
slow you work. He takes slow you Camera focuses on
down’ the tablet and is down’ one woman, who has
able to continue a headache, while the
his work. conversation fades
out. She takes the
tablet and is able
to be part of the
conversation again.
Camera ‘Remember A man ‘Share the A man photographing
the moment’ photographing moment’ a woman in front
London Bridge of a building with
Copyright © 2012. Juta & Company, Limited. All rights reserved.

European posters in
the foreground
Restaurant ‘The 5-star A waiter in a ‘Good food, A group of friends
experience’ tuxedo good friends, enjoying their food and
good evening’ having a good time

10.7 Self and self-concept

Most individuals are aware of how they are differentiated from their surroundings
– this awareness is commonly referred to as an individual’s sense of self. Moreover,
customers have an image of themselves, known as their self-concept. This refers to
the attitude people hold about themselves.

Roberts-Lombard,176M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 176 2022/03/29 11:20 AM

Chapter 10: Personality and self-concept

Self-concept can be regarded as the totality of the thoughts and feelings

individuals maintain about themselves.
The self-concept is a highly complex structure compared to other attitudes.
It is composed of many attributes, some of which are given greater emphasis in
determining overall self-attitude. Attributes of self-concept can be described
in terms of:
●● their content, such as attractive appearance versus mental aptitude
●● a positive or negative attitude to self, that is, self-esteem
●● intensity
●● stability over time
●● accuracy, that is, the degree to which the self-assessment corresponds
to reality.

Therefore, in the same way an individual has an attitude towards a car or politics,
for example, the self is also a subject of evaluation. A person’s overall self-attitude
is frequently positive, but not always; there are certainly parts of the self that
are evaluated more positively than others. For example, a man who is not in a
management position may feel better about himself as a father and husband than
an employee.
Furthermore, the self-concept has the following characteristics:8
●● It develops over time.
●● It is not innate (in other words, it is learnt).
●● It has the purpose of protecting and enhancing the ego.
●● It is unique (it propels individualism in a person’s mind).
●● It includes self-related knowledge and beliefs that are stored in memory.

10.7.1 One self or multiple selves?

Historically, individual customers have been thought to have a single self and to
be interested in products and services that satisfy that self. As more research is
conducted in the field of customer behaviour, it has become apparent that it is more
accurate to think of the customer in terms of a multiple self, or selves. This change
in thinking reflects the understanding that customers are likely to act differently in
different situations and with different people. For example, a person may be shy in
real life but exaggerate their positive qualities on their Twitter and Facebook pages.

The implication of the different selves that a customer embodies is

that marketers should target their products and services to customers
within the context of a particular self.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 177
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 177 2022/03/29 11:20 AM

Consumer Behaviour

10.7.2 The makeup of the self-concept

Despite the varying social roles that we play as individuals, we all have an image
of ourselves as a certain kind of person, with certain traits, habits, possessions,
relationships and ways of behaving. Each individual’s self-concept is unique, just
as with personality, as a result of background and experience. We develop our self-
concept through interactions with other people: initially, our parents, then other
individuals or groups with whom we relate over the years, be they friends, peer
groups, colleagues at work or others.
A variety of self-concept constructs have been identified in the literature on
customer behaviour. Customers have a number of enduring images of themselves,
and these images or perceptions of self are closely associated with personality. The
idea of self-concept has strategic implications for marketers. Products and brands
have symbolic value for us as consumers, and we evaluate them on the basis of their
consistency, that is, congruence, with our personal picture or image of ourselves.
Some products seem to match our self-concept, while others seem totally alien. It
is generally held that customers use products that preserve or enhance their self-
concept and avoid products that do not. In other words,

people tend to buy products and services and patronise retailers

with images or ‘personalities’ that closely correspond to their own
self-concept.
This means that

marketers can, for example, segment their markets on the basis of

relevant customer self-concepts, and then position their products or
stores as symbols of such self-concepts.
This strategy is fully consistent with the marketing concept, in that marketers first
assess the needs of a customer segment – a process known as customer orientation
Copyright © 2012. Juta & Company, Limited. All rights reserved.

– and then proceed to develop and market a product or service that meets
those needs.
Note that customers may select a different self-concept to guide their attitudes or
behaviour in different contexts – that is, in different situations and/or with respect
to different products. For instance, with regard to everyday household products,
customers may be guided by their actual self-concept, whereas with regard to
socially enhancing or socially conspicuous products, they may be guided by their
social self-concept. When it comes to a so-called ‘fantasy product’, they may be
guided by either their ideal self-concept or ideal social self-concept.

10.7.3 The extended self

The relationship between customers’ self-concepts and their possessions – that
is, the objects they call their own – is an exciting topic for customer research.
Specifically, customers’ possessions can be seen to confirm or extend their self-
concepts. For example, acquiring a sports car or big house may serve to expand or

Roberts-Lombard,178M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 178 2022/03/29 11:20 AM

Chapter 10: Personality and self-concept

enrich someone’s image or sense of self. Individuals may see themselves as being
more trendy, more attractive and more successful because the vehicle or house has
been added to their inventory of self-enhancing possessions. Similarly, if the ring
or pocketknife someone inherited from a grandfather is stolen or lost, that person
is likely to feel diminished in some way. In fact, the loss of a prized possession may
lead a person to grieve and to experience various emotions such as frustration, loss
of control and the feeling of being violated in some way.
The above examples suggest that a great deal of human emotion can be connected
to valued possessions. In such cases,

possessions can be considered as extensions of the self.

Schiffman and Kanuk have proposed that possessions can extend the self in a
number of ways, namely:
●● actually, by allowing the person to do things that otherwise would be difficult
or impossible to accomplish, for example being independent by owning a car
●● symbolically, by making the person feel better or ‘bigger’, for example when a
person receives an employee award for excellence
●● by conferring status or rank, for example if a person acquires status among a
group of wealthy friends by virtue of owning a limited-edition wristwatch
●● by conferring feelings of immortality, for example when a wedding ring
is passed on from generation to generation in a family (this also has the
potential to extend the recipient’s sense of self)
●● by conferring ‘magical powers’, for example a mother might give her
young daughter a necklace that belonged to her deceased father, and the
necklace might come to be seen by the daughter as a ‘magic’ amulet bestowing
good luck.

10.7.4 Altering the self

Customers constantly try to change themselves. To do this, they use a variety of

products and accessories – such as clothing, grooming aids, cosmetics and jewellery
– to modify their appearance, and so alter their self-concept. In using self-altering
products, customers are trying to express their individualism or uniqueness by
creating a new self, maintaining the existing self (or preventing the loss of self) or
extending the self (modifying or changing the self).
People can alter themselves – particularly in terms of appearance or body parts –
by doing things such as using cosmetics, styling or colouring hair, switching from
glasses to contact lenses or the reverse, or undergoing cosmetic surgery. By using
these options, it is possible for an individual to create a ‘new’ or ‘improved’ person.
For example, customers often use self-altering products or services to conform to or
take on the appearance of a particular type of person, such as a stockbroker, lawyer
or teacher. Some people also use image consultants to achieve an appropriate and
mutually agreed-upon self-image. These consultants advise clients on personal
attributes such as clothing, hair colour, presentation, appearance, posture, speaking
and media skills.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 179
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 179 2022/03/29 11:20 AM

Consumer Behaviour

CASE STUDY: Jenna Clifford Designs

Jenna Clifford Designs represents the apex of high fashion jewellery design and
the epitome of rare quality and superlative craftsmanship. Established in 1992,
the company has steadily grown its clientele and profile to position itself as a
powerful force in the jewellery industry. Its premium design and handcrafted range
of rings, necklaces, pendants, bracelets and many other outstanding products
have attracted international interest. From the company’s humble beginnings as
an exclusive design studio in Morningside, Sandton, Jenna’s personal approach to
bespoke jewellery design has set her company and work apart. Jenna’s belief that
craftsmanship begins with a conversation means that the brand has always had a
personal relationship with its customers – a quality that adds to the exclusivity of
every Jenna Clifford piece and speaks to the personality, taste and spirituality of
the wearer. This personal approach means each unique, handcrafted piece that
leaves the jeweller is a milestone in the remarkable journey of the Jenna Clifford
brand to become South Africa’s premier handcrafted jewellery brand.

10.8 Summary
An understanding of the personalities of customers is integral to the success of
any marketing campaign. However, marketers should realise that rarely can only
one dimension of a customer be used to segment a market accurately.
Research on personality and self-concept is extremely useful in segmenting
markets, developing marketing and promotional strategies, and positioning
products in the market. Although marketers cannot predict from a personality
profile the specific brands that a customer will buy, they can use the profile to
increase their understanding of the factors that motivate and guide a customer’s
purchases. Each individual has a perceived self-concept (or multiple self-concepts)
Copyright © 2012. Juta & Company, Limited. All rights reserved.

of themself as a particular kind of person with certain traits, habits, possessions,

relationships and ways of behaving. Customers often try to preserve, enhance,
alter or extend their self-concepts by buying products or services and shopping
at stores believed to be consistent with a particular self-concept, and by avoiding
products and stores that are not.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Given that no two individuals have identical personalities, how would you
explain the fact that personality is used in customer research to identify distinct
and sizeable market segments?

Roberts-Lombard,180M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 180 2022/03/29 11:20 AM

Chapter 10: Personality and self-concept

2. Contrast the main characteristics of the following personality theories. In your

answer, illustrate how each theory is applied to the understanding of customer
behaviour.
A. Freudian theory
B. Gestalt theory
C. Neo-Freudian theory
D. Trait theory
3. Describe the trait theory of personality. Give examples of how personality
traits can be used in customer research.
4. Discuss self-concept and its importance to marketers.
5. With regard to the case study, answer the following questions.
A. Explain how the different types of self-concept need to be taken into
account by marketers in advertising messages in particular.
B. How do you think the case study relates to the influence of personality on
buying behaviour?

Multiple-choice questions
1. Segmentation strategies can be grouped into four categories. Which one of
the following best describes the behavioural category?
A. Personality, lifestyle
B. Benefits, occasions
C. Family life cycle, family size
D. Climate, destiny.
2. Personality reflects individual differences. Which of the following statements
are true for this aspect of the concept of personality?
Copyright © 2012. Juta & Company, Limited. All rights reserved.

2.1 An individual’s personality is made up of a unique combination of factors.

2.2 People are totally different in all aspects.
2.3 Many individuals tend to be similar in terms of a single personality
characteristic.
2.4 It is impossible to group people into different segments.
A. 2.1 and 2.2
B. 2.2 and 2.3
C. 2.1 and 2.3
D. 2.2 and 2.4

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 181
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 181 2022/03/29 11:20 AM

Consumer Behaviour

3. Personality is consistent and enduring. Which of the following statements are

true for this aspect of the concept of personality?
3.1 Consistency refers to unchanging qualities of personality.
3.2 Personality lends predictability to a person’s behaviour.
3.3 It means that the behaviour of the person can be measured.
3.4 It is tradition-directed behaviour segmentation.
A. 3.1, 3.2, 3.3 and 3.4
B. 3.1, 3.3 and 3.4
C. 3.2, 3.3 and 3.4
D. 3.1, 3.2 and 3.4
4. Which statement is true for Freud’s psychoanalytic theory of personality?
A. It is the discovery of the underlying motivations for specific customer
behaviour.
B. It is the importance of social relationships in the formation and development
of personality.
C. It focuses on the measurement of personality in terms of specific individual
psychological characteristics.
D. It is used to evaluate customer personality.
5. Which of the following statements are true for the Gestalt theory?
A. It is the theory generally used in marketing as the basis for evaluating
customer personality.
B. It involves the use of ordinary people in advertisements and advertising
social acceptance.
C. It studies the interaction between the persona and the total environment.
D. All of the above.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

6. _____________ can be defined as ‘any distinguishing, relatively enduring

way in which one individual differs from another’.
A. Lifestyle
B. Attitude
C. Trait
D. Personality.

Roberts-Lombard,182M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 182 2022/03/29 11:20 AM

Chapter 10: Personality and self-concept

7. Which one of the following statements is valid for the Taylor Nelson model?
A. Sustenance-driven people can be subdivided into belongers and social
resisters.
B. Survivors can be defined as caring and often doctrinaire.
C. Inner-directed people can be divided into self-explorers and experimentalists.
D. Conspicuous consumers can be defined as traditionally minded working-
class people.
8. Which one of the following options best explains the term ‘product image’?
A. A customer’s perception of the product
B Attaching a certain symbolic meaning to some products
C. Appropriate advertisements for products
D. The amount of value a customer attaches to some products.
9. _____________ is ‘a highly complex structure compared to other attitudes’.
A. Self-concept
B Inner directedness
C. Personality
D. An individual.
10. Which one of the following statements is true for the extended self?
A. Customers will and can act differently in different situations.
B. It includes what the customer possesses or owns.
C. It refers to displaying the customer’s own unique habits, relationships and
behaviours.
D. Customers are constantly changing themselves.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 183
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:17:57.

Consumer Behaviour 5E.indb 183 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 184 2022/03/29 11:20 AM

Chapter

11 MARKET SEGMENTATION
Learning outcomes
After studying this chapter, you should be able to:
■■ Identify and explain the different bases for market segmentation
■■ Describe the STP process
■■ Define targeting and explain the criteria that need to be met to choose a target market
■■ Explain which targeting strategies can be utilised in selecting a target market
■■ Explain the meaning and implications of positioning
■■ Discuss segmentation in business-to-business (B2B) markets.

11.1 Introduction
Segmenting mass markets is needed because consumers have different tastes, needs
and wants, attitudes, motivations and lifestyles. In order to define customer needs
more precisely, marketers therefore use a process known as market segmentation. A
single company cannot satisfy all customer needs and wants with a single product
and a single approach.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Figure 11.1 Market segmentation

Consumer Behaviour 5E.indb 185 2022/03/29 11:20 AM

Consumer Behaviour

Scan the internet and find definitions that illustrate the wide range of opinions relating to a
consumer need and a consumer want.

It is not practical to satisfy all customers at once, therefore marketers must determine
who their desired customers should be. The most effective method they can use to
help them make this decision is to divide the mass market into segments or target
markets. These subsegments consist of groups of target customers that have similar
tastes, buying habits and consumption patterns. This allows a marketer to satisfy
the needs and wants of their targeted customer base. Targeted customers can also
be labelled as preferred or ideal customers. Targeting the right market with the right
message, the right product, at the right price and supplying it at the right location
is essential to attract new customers continuously and to keep current customers
loyal. If you do not divide your market into market segments, you waste resources
to create messages and products and services that reach a lot of people who are not
interested in your products or services in the first place. Market segmentation helps
you to target those customers that are most likely to be enthusiastic consumers of
your product or services.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Mobile phone service providers offer different cellular packages for a variety of market
segments. Peruse the websites of Vodacom, CellC, Telkom and MTN to find examples of
different packages and identify which segments are served.

A company’s marketing/sales programme must therefore be focused on the segment

of prospects that are ‘most likely’ to purchase its product or service offering. This
helps marketers to know where and how customers shop and how much they are
willing to pay for a product. A profile of the intended target market will also help
determine the method(s) of communication marketers will use to reach a particular
market. In a country with a diverse population consisting of many racial and social
groups as in South Africa, marketers should study their customers more closely to
serve the needs, wants and preferences of each distinct group.

Roberts-Lombard,186M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 186 2022/03/29 11:20 AM

Chapter 11: Market segmentation

Another motive for segmenting markets is that it helps marketers to know where
and how customers shop and how much they are willing to pay for a product.
A profile of the intended target market will also help determine the methods of
communication marketers will use to reach a particular market. In a country such
as South Africa, with its diverse population consisting of many racial and social
groups, marketers should study their customers more closely to serve the needs and
preferences of each distinct group (segment). Marketers should tailor the marketing
mix instruments – commonly known as the four Ps for physical products (product,
price, place and promotion) and/or the seven Ps for services (product, price, place,
promotion, people, processes and physical evidence) – into a marketing strategy
that suits the target market. In this chapter, we will consider the STP process, which
stands for segmentation (S), targeting (T) and positioning (S).1

11.2 The STP process

Segmentation of markets (S) deals with an aggregated process that clusters people
with similar needs into a defined market segment. Targeting (T) deals with the
process whereby a marketing mix is tailored to fit specific customers in a defined
market segment. Positioning (P) deals with the way the majority of consumers,
representative of a defined market segment, perceive proposed or present products
and/or services and/or brands. The STP process can also be used to guide the
redesign, the repositioning or the extension of the life cycle of a product, service or
brand, or the targeting to a new customer segment.2
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Figure 11.2 The STP process

We now look at each of these processes in detail.

STP = Segmentation – Targeting – Positioning

11.3 Segmentation of markets

This is the process of dividing a mass market into subsets or segments of customers
who share similar characteristics, and are distinct from customers in other
subsets or subsegments by having relatively similar product needs.3 Segmentation
always refers to differentiating aspects of the customer and not the differentiating

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 187
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 187 2022/03/29 11:20 AM

Consumer Behaviour

characteristics of a product or service that allow marketers to identify the base to

be used for segmentation and target market selection.

Consumer needs analysis

Before dividing any markets into segments, the wisest move would be first to
conduct a consumer needs analysis. This allows the marketer to determine a match
between the benefits offered by the product or service offering and the needs of
consumers. These needs may be based on the following:
●● Social esteem or pleasure: Offerings that satisfy a purely emotional
consumer need. Examples are getting a tattoo, having a holiday on an exotic
island, acquiring a tiara, or having an indulging engagement with a slab of
chocolates.
●● Functional: Offerings that meet a functional requirement of the consumer,
such as a microwave oven (defrost), breakfast cereal (quick meal), or
dishwashing liquid (clean dishes).
Some products are on the boundary between the two categories. Most mobile devices
satisfy the same functional requirement but might deliver differentiated esteem
or pleasure. Apple focuses on social and functional needs to generate consumer
demand for its mobile technology solutions. Bear in mind that a mobile phone is
not just a device that allows for communication. It provides a variety of benefits
that aim to serve a variety of consumer needs and wants.

Marketers can use one or a combination of the following bases to segment the mass
market.

11.3.1 Demographic segmentation

Figure 11.3 Demographic elements

Roberts-Lombard,188M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 188 2022/03/29 11:20 AM

Chapter 11: Market segmentation

Demographic segmentation is based on aspects such as age, gender, marital status,

family life cycle, income, occupation and education. Marketers rely on these
demographic characteristics because they are often closely linked to a customer’s
product needs and buying behaviour and because they can be easily measured.
Potential users of a product, service or brand can be divided into categories
consisting of different age groups, gender (male and female) and incomes (high,
medium and low). Perhaps the demographic characteristic most used to segment
household markets is gender. Clothing, cosmetics, hair-care products, toiletries,
etc, are all marketed differently to men and women.

Segmenting by age and gender is the most basic segmentation approach. Fashion retailers
combine fashion options to offer different fashion clothing lines – chic fashion lines for the
younger generation and a more formal and elegant line for individuals who are at a more
mature age. Examples of gender-based segmentation include Calvin Klein and Christian Dior
which offer different perfumes, cologne and other fragrance, and watch ranges for men and
women. Nike and Adidas offer different sports footwear, sportswear apparel and related
accessories for men, women and youth.
Surf the internet to find examples of segmentation that address gender identities and
expressions ranging from AFAB (female at birth) to Two-spirit (https://www.healthline.com/
health/different-genders). This source lists more than 60 gender identities and expressions.

Income is also an important demographic variable for distinguishing market

segments. However, marketers often combine income with other demographical
variables to define their target markets more accurately, because education,
occupation and income tend to be closely correlated. Some marketers are interested
in affluent customers, and for good reason. High-level occupations, that is, those
that produce high incomes, usually require advanced educational training.
Individuals with little education rarely qualify for high-level jobs. Because of the
close correlation, these variables (education, occupation and income) are often
Copyright © 2012. Juta & Company, Limited. All rights reserved.

combined into an index of social class.

Surf the internet to find examples of life cycle segmentation in a South African context.
https://styleslinkup.blogspot.com/2021/04/age-and-life-cycle-stage-segmentation.html.
In 2017, plans were announced that a new measure, the Socio-Economic Measure (SEM)
will replace the market segmentation tool, Living Standard Measure (LSM). Read http://
www.prc.za.com/wp-content/uploads/2017/08/New-SEM-socio-economic-segmentation-tool-
explained.pdf for and find more recent information on the SEM framework.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 189
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 189 2022/03/29 11:20 AM

Consumer Behaviour

South Africa’s middle class

A decrease in poverty and a growing middle class are widely seen as desirable features
of a developed economy. In South Africa, the growth of the ‘Middle of the Pyramid’
middle class has been used as a yardstick of sorts of the government’s economic
policy since 1994. The expansion of the middle class is not necessarily an end in
and of itself. Rather, it is thought to create cumulative effects, such as an increase
in disposable income and spending power, a better educated, skilled and trained
workforce, more investment, more job creation etc. In the South African context, it
is important that the middle class change its demographic makeup to include more
of those disadvantaged in the past.
Peruse the following:
Measuring South Africa’s Black Middle Class https://africacheck.org/fact-checks/
factsheets/factsheet-measuring-south-africas-black-middle-class
SALDRU Working Paper – Social stratification, life chances and vulnerability to
poverty in South Africa http://opensaldru.uct.ac.za/handle/11090/883

11.3.2 Geographic segmentation

Countries

Population
Cities
Density

Geographic
Segmentation

Climate/
Villages
Weather

Urban/
Rural
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Figure 11.4 Geographic segmentation elements

Geographic segmentation is a basic but highly useful segmentation strategy. With

geographic segmentation, the market is divided according to geographical location.
A customer’s location can assist marketers in measuring their needs in a much
cheaper way because they can conduct localised research. Variations such as the
size of a city or town, or population density may also be appropriate bases for
segmentation. Geographic segmentation is most often performed in conjunction
with other types of measurements and is useful when differences in product
consumption correspond closely with demographic or lifestyle ‘types’ who live in
different areas and suburbs. A marketer can also group consumers based on the
characteristics of the area in which they live, such as its climate, the population
density and whether it is urban, suburban or rural. Localised print and electronic
media can be used to focus a much cheaper promotion and/or advertising campaign.

Roberts-Lombard,190M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 190 2022/03/29 11:20 AM

Chapter 11: Market segmentation

It is also useful for small businesses to tailor their messaging according to regional
differences in language, interests, norms and other attributes as well as the differing
needs of people in different parts of a city or region. Localised sponsorships tied
to a particular brand can be linked to regional sports such as rugby, which is more
popular in the Eastern Cape than in Northern Limpopo.
In a mega-city such as Johannesburg, marketers realise that there are diverse
markets, such as the central, southern, northern, western and eastern areas of the
city, which can be treated as separate market segments with different needs.

11.3.3 Lifestyle and psychographic segmentation

Figure 11.5 Psychographic segmentation elements

Psychographic segmentation involves the breaking up of the market in terms of

attributes such as social class, lifestyle and personality. It refers to the analysis of
customers on the basis of their activities, interests and opinions (AIO).

Table 11.1: The AIO matrix

Himself

Club Member

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 191
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 191 2022/03/29 11:20 AM

Consumer Behaviour

To establish the different lifestyle categories, information concerning customers’

activities, personality traits, beliefs, values, interests, opinions, attitudes and
lifestyles is collected and then analysed to identify separate groups.
If consumers in a demographic segment were to respond differently to a product
and promotion offering, a marketer could identify psychographic variables that
caused the differentiated response. Psychographics also provide insight into why
people decide to purchase or not purchase a product, click on or ignore an online
advertisement, or fail to respond to a sales promotion. Identifying psychographic
factors that influence buying habits in a specific geographic segment, such as
environmental consciousness, provide opportunities to emphasise the environ
mentally friendly attributes of a brand.

Combining demographic and psychographic segmentation 4

Demographics Life stage Needs Attitudes

Family of four Two children aged Seeks value for money, The mother buys food
ten (daughter) and healthy and nutritional from Woolworths. She
eight (son). food. enjoys preparing fresh
Father has a full-time meals and ensures that her
job and mother children eat enough fruit
works half-day. and steamed vegetables.
She limits her husband’s
intake of sugar.
Family of five Two sons aged ten Ready-to-eat meals, The mother buys groceries
and eight and one pre-cooked meals that from Checkers, Spar, and
daughter aged nine. are easy to prepare. Pick ’n Pay depending
Father and mother Consume extra on specials offered on
have full-time jobs. vitamins and minerals pre-packed foods. Father
to supplement the diets braais a lot and mother
of the two boys. hates cooking.

Figure 11.6 Example depicting the combination of demographic and psychographic elements 5
Copyright © 2012. Juta & Company, Limited. All rights reserved.

In 1998, Parker proposed market segmentation by life stage and life plane.6
His proposal can be seen as a combination of some elements of demographic and
psychographic segmentation. He argued that a matrix approach may be used to
combine both measures in order to develop a single easy-to-use tool that retains
all the qualities of the measures individually, and adds a substantial depth of
perspective. Segmentation of markets by life stage or age group shows how a
person’s lifespan can be divided into five-year periods. In each of these periods,
peoples’ circumstances, interests, activities, buying behaviour and levels of
consumer expenditure change. The following serves to explain this phenomenon.
In life stage 6 (age group: 16–20), people are generally finishing high
school or busy with tertiary education. A few work full time, while many have
part-time jobs. They mainly live with their parents. Their income consists
mainly of allowances and they spend most of this on petrol and entertainment.

Roberts-Lombard,192M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 192 2022/03/29 11:20 AM

Chapter 11: Market segmentation

Life stage 7 (age group: 21–25) can be termed the ‘freedom years’ and
encompasses wonderful years with newly qualified people just starting out in their
careers. They live in flats or possibly communes. These are courting years, and
fun and entertainment feature strongly. Expenditure is self-indulgent – they spend
their money on fashionable clothing, take-out meals, travelling, audio technology,
and a second-hand car on an instalment purchase. Sport and outdoor activities
are a great attraction and a considerable quantity of alcohol is consumed. People
in life stage 8 (age group: 26–30) are the ‘newlyweds and baby blues’; they are
people with new responsibilities. Many are recently married, live in flats and both
partners commute to work. The first baby arrives and these young parents need
to change their lifestyles drastically as they learn to cope with nappies, disturbed
sleep, doctors’ bills, toys, babysitters and playgroups. They spend most of their
income on meeting practical needs – they buy washing machines and nursery
equipment, and entertainment is curtailed.
Education is the key element of segmentation by life plane or socio-political group.
Buying behaviour, store choice and consumer expenditure levels are a function
of life plane. While education influences attitudes and perceptions and plays a
major role in shaping expectations and aspirations, it is also the key to a person’s
choice of career, and there is little doubt that education influences performance.
To reflect the socio-economic strata in the South African market adequately, Parker
distinguished between six life planes based on education levels. People at these
different planes can be described as follows:
●● Life plane A: People in the top life plane are doctors, lawyers, accountants,
architects and engineers. They are usually graduate professionals.
●● Life plane B: People are generally found in business. They do not necessarily
have university degrees, but have studied beyond school and might hold a
diploma. Many reach senior positions in business.
●● Life plane C: People have completed their schooling, but have not studied
further. They tend to be found in sales, white collar or clerical positions in
business.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Life plane D: People generally have completed senior school education

and tend to follow technical careers. Many become artisans (plumbers,
electricians, mechanics, etc).
●● Life plane E: People have completed only one or two years of senior school
education, and many find jobs as factory workers and artisan’s assistants.
●● Life plane F: People have no secondary schooling and many are barely
literate. Most people in this category are unemployed or find employment as
domestic servants, gardeners and labourers.

Just because a household earns a certain income does not mean that they will
spend that income in the same way and on the same things as would other people
with the same income. Expenditure is very clearly a function of life stage and life
plane. Particulars of the head of the household (age and qualification) determine
the cell into which a household falls.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 193
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 193 2022/03/29 11:20 AM

Consumer Behaviour

11.3.4 Usage or behavioural segmentation

Figure 11.7 Behavioural segmentation elements

Most companies in South Africa are able to segment customers by usage criteria
because a great deal of marketing research data on product and media consumption
is available.7
It is therefore possible to divide current users of a product or service, or brand into
categories of light, medium and heavy users. Most marketers prefer to target their
campaigns to the heavy users, rather than spend a lot more money trying to attract
light users. Marketers of many other products have found that a relatively small
group of heavy users account for a disproportionately large percentage of product
usage, and targeting these heavy users has become the basis of their marketing
strategies. Non-users are a special challenge. Marketers have to decide whether non-
Copyright © 2012. Juta & Company, Limited. All rights reserved.

users are a potentially worthwhile segment, or whether the resources needed to turn
them into users can be better spent in trying to lure users away from competitive
products. This is perhaps one of the main reasons why alcoholic beverage producers
launched alcohol-free brands.

Roberts-Lombard,194M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 194 2022/03/29 11:20 AM

Chapter 11: Market segmentation

EXAMPLE

Access the website of Devils Peak Bear (https://www.devilspeak.beer/home) and determine

how the company targets different segments with different ‘Beer’, ‘Friends beer’ and
‘Afrofunk’ brands.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 195
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 195 2022/03/29 11:20 AM

Consumer Behaviour

Also, find Information on Anheuser-Busch InBev SA/NV and determine how they segment
beer and related beverage markets.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Compile information on Castle Free beer and discuss it in your class sessions. What is
meant by a ‘pacing’ drink? How does this concept impact on beer consumption behaviour?

Brand loyalty is often used as the basis for segmentation. Marketers try to identify
the characteristics of their brand-loyal customers so that they can direct their
promotional efforts to people with similar characteristics in the larger population.
Other marketers target customers who show no brand loyalty, in the belief that
such people represent greater market potential than customers who are loyal to
competing brands. Marketers should attempt to encourage brand loyalty, as it has
been found that brand-loyal customers are also heavy users and pay less attention
to competing marketing messages.
Usage or behavioural segmentation, on its own, lacks sufficient depth to apply it
when developing marketing strategies. This segmentation base should therefore be
used along with one or more of the other segmentation bases.

Roberts-Lombard,196M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 196 2022/03/29 11:20 AM

Chapter 11: Market segmentation

Consult the following resources and determine how market segmentation of mobile devices
may unfold in the near future.
Africa: Over 500 million mobile-money users expected in 2020 https://www.theafricareport.
com/25846/africa-over-500-million-mobile-money-users-expected-in-2020/
Africa’s mobile data revenue to double by 2024 | ITWeb https://www.itweb.co.za/content/
WnxpEv4DJKgvV8XL
Mobile Phone Penetration Throughout Sub-Saharan Africa – GeoPoll https://www.geopoll.
com/blog/mobile-phone-penetration-africa/
The Market for Mobile Phones in Africa https://africa-business.com/features/mobile_
phones_africa.html
Compare the implications of the information presented in the above sources to the contents
of the following documents:
Africa Mobile Factbook 2012 https://www.slideshare.net/IsraelExport/africa-mobile-fact
Copyright © 2012. Juta & Company, Limited. All rights reserved.

book-2012
Africa Mobile Fact Book 2008 https://www.w3.org/2008/MW4D/wiki/images/9/9c/Front
Page%24Africa_Mobile_Fact_Book_2008.pdf

Dividing a market based on behavioural display allows marketers to create

communication that addresses such behaviours. Examples are how consumers
interact with product and services at the point-of-purchase, websites and apps. The
following types of behaviours are of interest:
●● Online shopping habits: Users’ online shopping habits may create the pos
sibility of making an online purchase when you attract them to your website.
●● Actions taken on a website: The actions of users on an interactive site
can be explored to better understand how they interact with links and click-
throughs. How long someone stays on a site, whether they read information
all the way to the end, the types of content they click on and more, provide
valuable clues.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 197
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 197 2022/03/29 11:20 AM

Consumer Behaviour

Marketers can collect behavioural data by, inter alia, placing cookies on their
websites or via their relationship management (CRM) software, or by purchasing
datasets from third parties.

11.3.5 Needs/benefit segmentation

Table 11.2: Benefit segmentation of the toothpaste market

Benefit segmentation elements Demographic elements Behavioural elements

Prevent tooth decay Large families Heavy users

Flavour Children Parental guidance and

encouragement

Happiness in the mouth Teenagers Intimacy and togetherness

Economical price Males Heavy users

Whiteness of teeth Smokers Hide the smell of tobacco

Whiteness of teeth Females Heavy users

Care of dentures Older Keep dentures fresh and

clean

Medical Individuals with dental Tooth and gum care

and gum problems

A market can be effectively segmented by classifying customers into groups according

to the specific benefits they want from a product. Different benefit segments want
different benefits.8 Products and services are bundles of multiple attributes, and
Copyright © 2012. Juta & Company, Limited. All rights reserved.

marketers use benefit segmentation to find out the relative importance of one
benefit over others. For example, toothpaste cleans the teeth and freshens breath –
so in benefit segmentation, marketers should determine the criteria customers use
to evaluate brands in the product field. How important is each of these criteria to
the customer?
Russell Haley identified four benefit segments among customers for toothpaste
in 1968.9 These segments were:
●● the sensory segment: customers seeking flavour and product appearance
●● the sociable segment: customers seeking bright teeth
●● the worrier segment: customers seeking decay prevention
●● the independent segment: customers seeking a good price.

Note – Visit your closest grocery outlet and identify other segments not identified
in the 1960s. Pay particular attention to information and visual elements on

Roberts-Lombard,198M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 198 2022/03/29 11:20 AM

Chapter 11: Market segmentation

the packaging. Also, read the following: Toothpaste Market Size, Share | Global
Industry Research Report, 2027 (https://www.alliedmarketresearch.com/toothpaste-
market-A11278) and identify segments that have emerged.
Users of benefit segmentation claim that the benefits people are seeking are
the basic reason for buying a product, and therefore the proper basis for market
segmentation.10 There is no doubt that benefit segmentation is a powerful and
important basis for market segmentation. Market segmentation should therefore
include some type of benefit segmentation, as it tends to provide important
information for positioning a brand.

11.3.6 Market value-based segmentation

Market value-based segmentation is similar to benefit segmentation, except that
instead of specific benefits (for example, style), it uses the market value (for example,
performance or social value) of a product.
A value-based broad division of the total market can be obtained by using the basic
distinction of universal and personal values. For example, when both universal
and personal values are of low importance, it is referred to as the basic product/
economy market.
This approach has four different outcomes:11
1. The best-value market, where universal values are of high importance but
personal values are of low importance.
2. The basic product/economy market, where both universal and personal
values are of low importance.
3. The premium market, where both universal and personal values are of
high importance.
4. The convenience/personalisation market, where universal values are
of low importance but personal values are of high importance.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Some businesses choose to divide a market based on the ‘transactional worth’ of

their customers – how much they are likely to spend on their products. To determine
a customer’s transactional worth, you can look at previous purchase data such as
how many purchases they make, how often they make purchases and the value of
the items they purchase.

Market value-based segmentation in the hotel industry

Find South African examples that apply to each of the following segments:
●● In the hotel industry, basic product and economy segment customers would
seek very basic accommodation without any frills, with no consideration
of any social prestige or emotional outcomes, for example one- or two-star
accommodation.
●● The best-value segment would seek high-quality, clean and comfortable
hotels without frills.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 199
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 199 2022/03/29 11:20 AM

Consumer Behaviour

●● The premium segment would desire both high quality and prestigious hotels
with enjoyment avenues, for example five-star accommodation.
●● The convenience and personalisation segment would seek small guesthouses,
bed-and-breakfast establishments or popular tourist destination hotels.

Also read:
●● Market Segmentation in the Hospitality Industry https://www.ukessays.com/
essays/marketing/the-market-segmentation-in-the-hospitality-industry-marketing-
essay.php
●● Ecotourism Market Segmentation, Trends, Size, Share, Growth, Global Industry
Analysis, Regional analysis and Forecast 2018–2023 – Marketers MEDIA https://
marketersmedia.com/ecotourism-market-segmentation-trends-size-share-growth-
global-industry-analysis-regional-analysis-and-forecast-2018-2023/468991
●● Leisure Travel Market Size, Share & Growth | Analysis Forecast by 2027 https://
www.alliedmarketresearch.com/leisure-travel-market
●● Market segmentation example for airlines – Market Segmentation Study Guide
https://www.segmentationstudyguide.com/understanding-market-segmentation/
market-segmentation-examples/market-segmentation-example-airlines/

These segmentation methods are also of interest:

●● Firmographic segmentation: Business-to-business (B2B) companies
may use firmographic segmentation to divide up the businesses in a market.
This is similar to demographic segmentation with individual consumers but
instead looks at the characteristics of companies that may become customers.
Examples of data to look at include industry, revenue, number of employees
and location.
●● Generational segmentation: Businesses may segment consumers by
generation and group them into categories that include Gen Z, millennials,
Generation X, baby boomers and the Silent Generation. These generations
Copyright © 2012. Juta & Company, Limited. All rights reserved.

are believed to share certain preferences, behaviours, personality traits

and beliefs. Of course, not every member of a generation is the same, but
generational segmentation can give you some additional insight into your
audience.
●● Seasonal segmentation: Similarly to how people buy different products
in different periods of their lives, people also buy different items at different
times of the year. Social events such as Mother’s Day and Valentine’s Day
and religious festivities also significantly impact on purchasing behaviours.

11.3.7 Purchase decision makers12

A final point to consider, given the characteristics of an offering, is what type of
decision maker will most likely be interested in purchasing from a company. It
may be beneficial to rank prospects based on the following classifications. While it
may be difficult to make this classification of prospects prior to a first sales contact,
experienced and attentive sales personnel may notice the traits of the purchase

Roberts-Lombard,200M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 200 2022/03/29 11:20 AM

Chapter 11: Market segmentation

decision makers and this can strongly influence sales strategy to other consumers
who have similar traits. Some examples are as follows:
●● Ultra-conservatives: Do not rock the boat; whatever they purchase must
be consistent with their current way of doing things.
−− They are most likely to be interested in products or services that are
improvements to existing offerings rather than something new.
−− Once established as a customer, they are seldom inclined to review
alternatives.
−− Very negative to technically complex offerings or offerings requiring
extensive user education.
−− Cost-effective offerings are only of interest if they do not disturb the
status quo.
−− They are likely to react positively to any volume purchasing opportunities.
●● Conservatives: Are willing to change, but only in small increments and
only in a very cost-effective manner.
−− Will consider new products or services but only if a related concept has
been proven to be effective. More likely to purchase improvements to
existing offerings.
−− Will probably want to review competitive offerings, but will gravitate to
the best-known offering with the lowest risk decision.
−− Negative to neutral when considering technically complex offerings or
offerings requiring extensive user education.
−− Strongly influenced by cost-effective offerings and/or ‘best price’
opportunities.
●● Liberals: Regularly looking for new solutions, willing to make change (even
major change) if the benefit can be shown.
−− Will usually consider new products or services even if the related concept
Copyright © 2012. Juta & Company, Limited. All rights reserved.

has not yet been proven to be effective, but only if the potential benefits
can be specified and understood.
−− Want offerings that make effective use of technology, but are not interested
in offerings just because they use a certain technology.
−− Will always want to review competitive offerings, but will usually choose
the one that offers the greatest benefit, even if there is some risk involved.
−− Neutral to positive when considering technically complex offerings or
offerings requiring extensive user education.
−− Usually concerned with keeping employees informed and educated, so
will often consider educational offerings.
−− Strongly influenced by offerings that will most probably deliver the ‘end
results’ desired, even if they are not the most cost-effective.
−− Often are on social trend bandwagons and will react positively to offerings
that address these needs.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 201
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 201 2022/03/29 11:20 AM

Consumer Behaviour

●● Technical liberals: Fascinated with the benefits provided by high-tech

solutions and any purchase decision will be biased by the technical content
of the offering.
−− Usually consider new products or services even if the related concept has
not yet been proven to be effective.
−− Often consider offerings just because they use a certain technology.
−− Will always want to review competitive offerings, but will usually choose
the one that offers the most hi-tech features, even if there is some risk
involved.
−− Regard themselves as technically competent and will expect leading-edge
use of technology.
−− Positive to fanatic when considering technically complex offerings even
when requiring extensive user education.
−− Conversion costs usually not a major concern if technical benefits are
there.
−− Not particularly concerned with keeping employees informed and
educated, so educational offerings are not of great interest.
−− Strongly influenced by offerings that most closely deliver the ‘end results’
desired, even if they are not the most cost-effective.
●● Self-helpers: Consistently define or design solutions to their problems; like
to acquire tools that help in the innovation process.
−− Will usually consider new products or services, but the related concept
must have been proven to be effective.
−− Often consider new offerings, just because they use a certain technology
that is relevant to the development programme they have underway.
−− Will always want to review competitive offerings, but will usually choose
the one that offers the most effective ‘do it yourself’ features.
−− Usually consider themselves technically competent and will expect very
Copyright © 2012. Juta & Company, Limited. All rights reserved.

effective use of proven technology.

−− Not especially inclined toward technically complex offerings, would
rather have user-friendly, but thought-provoking, offerings.
−− Conversion costs usually not a major concern if offering promises
potential for innovation.
−− Usually concerned with keeping employees informed and educated, so
educational offerings are of interest.

11.3.8 Segmentation in business-to-business markets (B2B)13

Segmentation in business-to-business markets is very different to consumer market
segmentation in several respects. We now discuss the main differences between
consumer and business-to-business markets.

Roberts-Lombard,202M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 202 2022/03/29 11:20 AM

Chapter 11: Market segmentation

B2B markets have a more complex decision-making unit

In most households, even the most complex and expensive of purchases are
confined to the small family unit, while the purchase of items such as food, clothes
and cigarettes usually involves just one person (the person who buys the groceries).
Other than low-value, low-risk items such as paperclips, the decision-making unit
in businesses is far more complicated. The purchase of a piece of plant equipment
may involve technical experts, purchasing experts, board members, production
managers and health and safety experts; each of these participants has their own
set of (not always evident) priorities. A B2B marketer must therefore decide who to
segment, for example ‘one key decision-maker per company’.

B2B buyers are more ‘rational’

The view that B2B buyers are more rational than consumer buyers is perhaps
controversial. Consumers tend to buy what they want; B2B buyers generally buy
what they need. It perhaps therefore follows that segmenting a business audience
based on needs should be easier than segmenting a consumer audience. In business-
to-business markets, it is critical to identify the drivers of customer needs. These
often boil down to relatively simple identifiers such as company size, volume
purchased or job function. These identifiers often enable marketers to predict needs
and therefore segments in the B2B market quite accurately.

B2B products are often more complex

Just as the decision-making unit is often complex in business-to-business markets,
so too are B2B products themselves. Even complex consumer purchases such as cars
and stereos tend to be chosen on the basis of fairly simple criteria. Conversely, even
the simplest of B2B products may have to be integrated into a larger system, making
the involvement of a qualified expert necessary. Whereas consumer products are
usually standardised, B2B purchases are frequently customised.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

This raises the question of whether segmentation is possible in such markets. In most
business-to-business markets, a small number of key customers are so important
that they ‘rise above’ the segmentation and are regarded as segments in their own
right, with a dedicated account manager. Beneath these key customers, however,
lies an array of companies that have similar and modest enough requirements to be
grouped into segments.

B2B target audiences are smaller than consumer target audiences

Almost all business-to-business markets exhibit a customer distribution that
confirms the Pareto Principle or 80:20 rule. It is not unusual, even in the largest
business-to-business companies, to have 100 or fewer customers that really make a
difference to sales. One implication is that B2B markets generally have fewer needs-
based segments than consumer market segments.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 203
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 203 2022/03/29 11:20 AM

Consumer Behaviour

Personal relationships are more important in B2B markets

A small customer base that buys regularly from the B2B supplier is relatively easy to
talk to. Sales and technical representatives visit the customers. People are on first-
name terms. Personal relationships and trust develop. It is not unusual for a B2B
supplier to have customers that have been loyal and committed for many years.
There are a number of segmentation implications here. First, while the degree of
relationship focus may vary from one segment to another, most segments in most
B2B markets demand some level of personal service. This raises an issue at the core
of segmentation – everyone may want a personal relationship, but who is willing
to pay for it? This is where the supplier must make firm choices, deciding to offer
a relationship only to those who will pay the appropriate premium for it. On a
practical level, it also means that market research must be conducted to provide a
clear understanding of exactly what such a ‘relationship’ comprises. To a premium
segment, it may consist of regular face-to-face visits, while to a price-conscious
segment, a quarterly phone call may be adequate.

B2B buyers are longer-term buyers

While consumers do buy items such as houses and cars, which are long-term
purchases, these incidences are relatively rare. Long-term purchases – or at least
purchases that are expected to be repeated over a long period of time – are more
common in B2B markets, where capital machinery, components and continually
used consumables are prevalent. In addition, the long-term products and services
required by businesses are more likely to require service back-up from the supplier
than is the case in consumer markets. A computer network, a new item of machinery,
a photocopier or a fleet of vehicles usually require far more extensive after-sales
service than a house or the single vehicle purchased by a consumer. Repeat
purchases (for example, machine parts, office consumables, etc) will also require
ongoing expertise and service in terms of delivery, implementation or installation
advice, etc, which is less likely to be demanded by consumers.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

In one sense, this makes life easier in terms of segmentation. B2B segments tend to be
less subject to whim or rapid change, meaning that once an accurate segmentation
has been established, it evolves relatively slowly and is therefore a durable strategic
tool. The risk of this – and it is something that is evident in many industrial
companies – is that B2B marketers can become complacent and pay inadequate
attention to the changing needs and characteristics of customers over time. This
can have grave consequences in terms of the profitability of a segment, as customers
are faced with out-of-date messages or benefits that they are not paying for.

B2B markets drive innovation less than consumer markets

B2B companies that innovate usually do so as a response to an innovation that has
happened further upstream. In contrast with fast-moving consumer goods (FMCG)
companies, they have the comparative luxury of responding to trends rather than
having to predict or even drive them. In other words, B2B companies have the time

Roberts-Lombard,204M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 204 2022/03/29 11:20 AM

Chapter 11: Market segmentation

to continually re-evaluate their segments and consumer value propositions (CVPs).

(A value proposition is a business or marketing statement that summarises why a
consumer should buy a product or use a service. This statement should convince a
potential consumer that one particular product or service will add more value or
better solve a problem than other similar offerings.)

B2B markets have fewer behavioural and needs-based segments

The small number of segments typical to B2B markets is in itself a key distinguishing
factor of business-to-business markets. B2B markets typically have far fewer
behavioural or needs-based segments than is the case with consumer markets.
Whereas it is not uncommon for an FMCG market to boast 10, 12 or more segments,
the average business-to-business study typically produces three or four segments.
Once marketers have segmented the market in terms of the bases for market
segmentation, the next step is to develop segment profiles.

11.4 Developing segment profiles

In developing segment profiles, marketers have to consider every segment that has
been identified by the organisation and then describe each segment fully in terms
of size, demographics, psychographics and lifestyle, as well as behaviour patterns
and product usage. Once they have developed a complete profile of the various
segments in the market, marketers then select one or more segments – in other
words, the target market – on which to focus their market offering (that is, the
product they are going to sell in the market). Such a profile enables marketers to
develop products that will provide the need satisfaction customers want, and to
design marketing communication messages that will appeal to members of specific
segments. By segmenting the market, marketers will be in a better position to
communicate with an intended target market based on the profile information
consisting of age, gender, income, benefits sought, geographical location, family
size, lifestyle, attitudes and opinions.
After the selection of a market segment, marketers need to identify a portion of the
segment to be targeted by their organisation’s product, brand or service.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 205
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 205 2022/03/29 11:20 AM

Consumer Behaviour

11.5 Targeting
During targeting, marketers link the needs and wants of customers with the
resources and objectives of the organisation and select those segments that offer
the greatest potential return on investment (ROI) for the organisation.14
Before marketers select a specific market segment as a target market, they must first
evaluate it according to some important evaluation criteria. The following criteria
therefore need to be met in order to choose a target market successfully:15
●● Identification: Marketers need to identify customers with homogeneous
characteristics and allocate them according to these characteristics.
●● Size: A worthwhile target must contain enough people to justify the
development of the offering and the promotional campaigns that are
customised to its characteristics.
●● Stability: Marketers should look for markets that are stable in terms of
needs, demographics and psychological factors.
●● Accessibility: Marketers must be able to reach the market segment(s) that
have been chosen as targets cost-effectively.
●● Responsiveness: The development of unique marketing programmes
for target segments cannot be justified if the segments fail to respond to
these efforts.

After target market selection, marketers need to position the product, service or
brand in the minds of the target market so that the target customers feel that it
satisfies their needs better than competing products.

11.6 Positioning
Positioning is not what you do to a product; it is what you do to the
mind of a prospect.16
Copyright © 2012. Juta & Company, Limited. All rights reserved.

The term ‘positioning’ refers to the consumer’s perception of a product or service or

brand or company in relation to its competitors. A product’s positioning is the place
the product occupies in the customers’ minds. Positioning is therefore all about
‘perception’. As perception differs from person to person, so too do the results
of the positioning map. It also depends on the criteria used to position brands as
depicted in this positioning map where sportiness vs conservative and cheap vs
expensive are opposing variables.

Roberts-Lombard,206M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 206 2022/03/29 11:20 AM

Chapter 11: Market segmentation

The following links provide very useful information on perceptual and positioning maps:
1. The difference between a perceptual and positioning map - https://www.perceptualmaps.com/difference-between-a-perceptual-
map-and-a-positioning-map/
2. Free download of a perceptual map template - https://www.perceptualmaps.com/make-a-perceptual-map/free-download/
3. A step-by-step-guide to constructing a perceptual map - https://www.segmentationstudyguide.com/understanding-perceptual-
maps/a-step-by-step-guide-to-constructing-a-perceptual-map/
4. Perceptual maps examples - https://www.perceptualmaps.com/wp-content/uploads/2013/05/thirst-competitors.png

Note:
The colours highlight the
possible competitive sets

Figure 11.8 Positioning map17

Through product positioning, marketers influence how customers perceive a

brand’s characteristics relative to those of competing products. The goal of product
positioning is therefore to influence demand by creating a product with specific
characteristics and a clear image that differentiates it from competitors.
Positioning assumes that customers compare the important features of different
products.18 If a product or a service were perceived to be exactly like another
Copyright © 2012. Juta & Company, Limited. All rights reserved.

product or service on the market, customers would have no reason to buy it instead
of the other product. Furthermore, positioning allows marketers to differentiate
their products, services or brands from competitive products, services or brands
and to create a sustainable competitive advantage. Competitive advantage forms
the basis of a positioning strategy.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 207
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 207 2022/03/29 11:20 AM

Consumer Behaviour

There are no fixed rules and few guidelines exist for the positioning of a product,
service or brand. Questions such as ‘How do customers perceive my product or
service?’, ‘Which attributes are important for differentiating purposes?’ and ‘How
are competitive products or services being perceived?’ are very important.
A company with several brands in a category will benefit by positioning each
brand within the product or service portfolio against a distinct set of consumer
needs – ideally, each brand should be sufficiently distinct so that there is little
cannibalisation (where one company brand takes customers away from another
brand of the same company).

Avis – the classic example19

Avis admitted that Hertz was the first car rental company in the world, and consumers
were aware of that too. This positioned Hertz as a market leader in the minds of

Roberts-Lombard,208M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 208 2022/03/29 11:20 AM

Chapter 11: Market segmentation

those who matter the most – consumers. Avis decided to look for a way of appearing
‘better’ than Hertz without looking ‘bigger’ than them. Avis’s marketers decided
to acknowledge Hertz publicly as No. 1 and admit that their company was second.
This was a risky undertaking: publicly referring to themselves as No. 2 could lead
to consumers thinking their service was also ‘second best’. Avis explored various
opportunities and competitive advantages of being No. 2, which led to their famous
slogan: ‘We try harder.’ Their slogan is effective because it is simple, meaningful and
memorable. Avis promised to delight their customers even more than the market
leader, Hertz – and people responded positively to their sincere desire to please.
Also read: My favourite ad campaign of all time: The Avis ‘We Try Harder’ print
series of 1962 – Mumbrella Asia
https://www.mumbrella.asia/2018/05/my-favourite-ad-campaign-of-all-time-the-
avis-we-try-harder-print-series-of-1962
Car Rentals Market Trends (2021–2026) | Industry Statistics – Mordor Intelligence
https://mordorintelligence.com/industry-reports/car-rental-market

11.6.1 Developing a positioning strategy

To develop a positioning strategy, marketers first have to analyse competitors’
positions, and then identify a competitive advantage that may be used to retain
customers’ loyalty or draw them away from competitors.

Analysing competitors’ positions

Marketers must understand the current ‘lie of the land’, in other words, what
competitors are out there, and how they are perceived by the target market.
This involves doing research, and it may also mean stepping back to take a look
at the bigger picture. Apart from direct competitors in the product category, are
there other goods or services that could also provide the same benefits people are
seeking? For example, when a company such as Coca-Cola develops a new product
Copyright © 2012. Juta & Company, Limited. All rights reserved.

like Fruitopia, it must consider the drink’s attractiveness compared to colas, fruit
drinks and even bottled water.

Identifying competitive advantage

The next task is to offer a product with a competitive advantage, that is, the ability
to deliver whatever it promises better than the competition. If the company offers
only a ‘me-too’ product, the only way it can get people to buy it is to sell it for a lower
price. Other than pricing its market offering more attractively, a company could
craft a distinctive ‘brand personality’ through the clever use of symbols, package
design, celebrity endorsements, etc. For example, many prestigious product names
– such as Calvin Klein or Harley Davidson – are licensed by other manufacturers to
confer ‘instant status’ on their own brands. Another way of creating a competitive
advantage is by creating a product that looks different or offers novel features.
For example, Levi’s 501 jeans stand out because of their distinctive buttoned fly,
making this style hard to copy. Providing unique or superior back-up services for

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 209
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 209 2022/03/29 11:20 AM

Consumer Behaviour

what you sell could also be a competitive advantage. For example, several luxury
car manufacturers such as Mercedes-Benz and BMW are now trying to differentiate
themselves by offering roadside assistance programmes to their customers.
Therefore, a competitive advantage exists when a firm has a product or service that
is perceived by its target market customers as better than that of its competitors.
A marketer has a sustainable competitive advantage when it has value-creating
products, processes and services for its customers that cannot be duplicated or
imitated by its competitors.
Once a positioning strategy has been decided on, all of the pieces must actually
be put into place. When McDonald’s decided to target African Americans, it had
to be sure that enough of its restaurants were located in areas where such people
lived, and that these customers would respond to its advertising messages and other
promotions. The elements of the marketing mix must therefore be tailored to the
selected segment. This means that the product or service must deliver benefits that
will be valued by customers in the segment.
Another way to establish competitive advantage is to use differentiation
dimensions such as:
●● Dimension 1 – Product differentiation: Physical features, performance
quality (better, quicker, cleaner), material quality, durability, reliability,
reparability, style and design.
●● Dimension 2 – Services differentiation: Delivery, installation, customer
training, consulting service and repair.
●● Dimension 3 – Personnel differentiation: Good training, competence,
courtesy, credibility, reliability, responsiveness and communication skills.
●● Dimension 4 – Image differentiation: Symbols, atmosphere, logo, etc.

Positioning in the beer market

A well-known brewing company linked some of their brands with a positioning statement
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and a particular market segment:20

Brand Positioning statement Particular market segment

Castle Lager The beer for the people/real beer taste Belongers; males 25–35;
LSM 1–7

Carling Black Refreshment and reward for hard work/ Macho braves; black males
Label stronger beer = badge of manhood 25–45; LSM 3–5

Amstel Premium quality/superior quality Intellectuals; males 24–39;

+ best ingredients LSM 8–10

Redds When you have to be cool/apple- Feminists and cool

flavoured fruit ale egocentrics; females 18–25;
LSM 6–10

Roberts-Lombard,210M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 210 2022/03/29 11:20 AM

Chapter 11: Market segmentation

11.6.2 Repositioning
Repositioning is the process whereby a brand’s original ‘personality’ is altered to
appeal to a different segment.21 It happens fairly often. In some cases, a marketer
may decide that a brand is competing too closely with another of the organisation’s
own products, so sales are being cannibalised (that is, the two brands are taking sales
away from each other, rather than from competing companies). Another reason for
repositioning is when too many competitors are stressing the same attributes. For
example, over the last few years, nearly all promotional strategies in the airline
industry focused on price advantages, but now several airlines are stressing comfort
instead. Repositioning thus refers to a deliberate decision to alter significantly the
way the market views a product. This could involve its level of performance, the
feelings it evokes, the situation in which it should be used, or even who uses it.
Within each segment or quadrant, an organisation needs to develop a positioning
strategy that will say something about its offering’s (product’s, service’s or brand’s)
attributes and benefits and also communicates desirable imagery to the target
market.

Coke repositions its diet approach 22

Coca-Cola identified through market research that its Diet Coke brand (also
marketed in some countries as Coca-Cola Lite) was regarded as ‘girly’ and
‘feminine’ by male consumers. As a direct result, the company developed a new
product, which they branded Coke Zero, which is targeted at the health-conscious
male segment of the soft drinks market.

Pork repositioned as a white meat

National Pork Promotion and Research Board launched the ‘Pork. The Other
White Meat’23 promotion in 1987 at a time when just 9% of consumers perceived
pork as a white meat. In the board’s 2002 consumer awareness survey, 58% of
consumers, when asked unaided to name specific white meat products, named
pork. The efforts to reposition pork as a high-quality alternative to beef and poultry
succeeded so well that consumers now perceive pork as a white meat more than
they think of fish and turkey as white meats.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 211
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 211 2022/03/29 11:20 AM

Consumer Behaviour

CASE STUDY: Life insurance – emerging middle-class market

A life insurance company wants to delve into the emerging middle-class market
(EMM), also labelled the ‘aspirer market’.

Objectives
They have formulated the following objectives:
●● To inform the target market about life insurance products.
●● To educate target market on financial matters.
●● To build long-term relationships.

Target market (EMM/aspirers)

Macro-segmentation: Individuals, aged 25–50, household income of more than

R25,000 per month

Micro-segmentation: The macro-market will have to be subdivided into:

Those individuals who already have a Those individuals who do not have a
relationship with life insurance: relationship with life insurance:
●● Micro-market A1 – those EMM/aspirers ●● Micro-market B1 – those individuals
who already have a relationship with who do not have a relationship with
life insurance (are customers) and life insurance and have access to a
have access to a personal computer, personal computer, internet and a
internet and a cellular phone. cellular phone.
●● Micro-market A2 – those EMM/aspirers ●● Micro-market B2 – those individuals
who already have a relationship with who do not have a relationship with
life insurance and have access to a life insurance and have access to
Copyright © 2012. Juta & Company, Limited. All rights reserved.

personal computer and a cellular phone a personal computer and a cellular

(but do not have access to the internet). phone (but do not have access to the
●● Micro-market A3 – those EMM/aspirers internet).
who already have a relationship with life ●● Micro-market B3 – those individuals
insurance and have access to a personal who do not have a relationship with life
computer (but do not have access to insurance and have access to a personal
the internet or a cellular phone). computer (but do not have access to
the internet or a cellular phone).

Roberts-Lombard,212M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 212 2022/03/29 11:20 AM

Chapter 11: Market segmentation

Strategy

Micro- Level of Strategy

segments importance

A1 Top level ●● Expand the current relationship by driving the

customers to the website. All correspondence, means
of communication and contact between life insurance
and these customers should include some reference to
the website.
●● Design an e-mail campaign (a competition or a fancy
graphic or some cute message – attached to this will be
a reference to the website).
●● The aim is that the individual customer will pass the
message on to other individuals (on his or her e-mailing
list) who may or may not be current customers = viral
marketing.

A2 Mid-range ●● Use SMS (you may have to ask your customers whether
they would like to receive SMS prompts in the first
place = permission marketing) to inform them about the
service.
●● They may be induced to get internet access on their
own, or get access from an outside source (friends,
family, internet café).
●● Offer website information on a memory stick –
individuals can browse the information on their PCs
without having to access the website.
●● You may consider running a competition among these
individuals where internet access is offered as the main
Copyright © 2012. Juta & Company, Limited. All rights reserved.

prize (perhaps in conjunction with MWeb?).

●● The ultimate aim is to raise awareness about the
company, its products and the website.

A3 Low-range ●● Consider running a competition among these individuals

where internet access and/or a cellular package is
offered as the main prize (perhaps in conjunction with
MWeb?).
●● The ultimate aim is to raise awareness about the
company, its products and the website.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 213
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 213 2022/03/29 11:20 AM

Consumer Behaviour

Micro- Level of Strategy

segments importance

B1 Mid-range ●● The aim is to create a new relationship.

●● All current recruitment of new customers should drive
prospective customers to the website.
●● Offer an incentive to drive these individuals to the
website (free 30-day access; and then a registration
fee would be required if the individual is still not a
customer).
●● Offer free access to those who have become a customer
and who have a customer password.

B2 and B3 Low-range ●● For the time being, regard these individuals as future
prospects. I would suggest that you do not target these
micro-segments. Aim your initial strategy to micro-
segments A1–3 and B1.

11.7 Summary
Segmentation, targeting and positioning are essential steps taken by marketers
before developing the marketing mix into a suitable marketing strategy to ensure
that the right product or service blend is offered, at the right price, in the right place
and promoted through the right communication medium/media.

QUESTIONS FOR SELF-ASSESSMENT

To advance your self-learning, answer the following questions.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Paragraph/essay-type questions
1. What is market segmentation?
2. Are market segmentation, targeting and positioning interrelated concepts?
Explain how.
3. Study the following scenarios and then answer the questions that follow:

Scenario 1: You are a member of the new product development team of a

large food processing company. The team is developing a product idea of
producing a powder to add to milk to increase its nutritional value and taste.
This powder may serve as a food supplement or replacement.

Roberts-Lombard,214M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 214 2022/03/29 11:20 AM

Chapter 11: Market segmentation

Scenario 2: A company gets the idea of producing a complete range of

D-I-Y kits to enable vehicle owners to service and repair their own vehicles
or to buy the kits and then get someone to do the servicing and repairs at
their home.

a. Select at least three market segments for each scenario.

b. Define a product concept in terms of benefits for each market segment.
c. Select one product concept and draw a positioning map for your selected
product concept.
d. Read SEM Part 1 https://themediaonline.co.za/2018/02/getting-to-know-the-
es-sems-8-10-part-1/ and SEM Part 2 https://themediaonline.co.za/2018/03/
getting-to-know-the-es-sems-8-10-part-2/.
Select an SEM group to which you will market the product concept you have
selected.
4. With reference to the case study, answer the following questions:
a. Do you agree with the segmentation approach? Motivate your answer.
b. How would you describe the positioning of the product?
c. What alternative market segmentation approach would you have followed?
d. Describe how you would do an STP analysis for this case.

Short cases
Lecturers, instructors and student mentors can encourage students to address the
following cases. Ask students to compile reports that can be discussed in contact or
during online sessions. The aim of short cases is to supplement learning outcomes.

Case 1
One of the most important trends of the beer market is the shift in consumer
preference towards low and non-alcohol beers, as well as craft beers.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

South Africa Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts
(2021–2026)
https://www.marketresearch.com/Mordor-Intelligence-LLP-v4018/South-Africa-
Beverages-Growth-Trends-30152457
Find information on Castle Free beer and the micro-brewery market in South Africa.
Write a report that summarises your findings.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 215
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 215 2022/03/29 11:20 AM

Consumer Behaviour

Case 2
Surf the internet and write a report that addresses the following questions:
●● What is the market size of bottled water in South Africa?
●● To what extent are health considerations impacting the consumption of
bottled water in South Africa?
●● How are changing demographics (for example, an ageing or predominantly
young population) determining consumption of bottled water in South Africa?
●● Which are the leading brands in bottled water in South Africa?
●● How are bottled water brands distributed in South Africa?
●● How are sustainability issues, such as environmentally friendly packaging,
legislation on recyclability, or the amount of plastic in bottles, impacting the
bottled water industry?

Case 3
Having fun with customer segment labelling
A credit card company identified the following customer segments. They selected
Ewes as a target market for a second credit card promotional campaign.
●● Yaks (young, adventurous, keen and single): 18–24, no heavy financial
burden, live at home or rent cheaply, travel, status seekers, eat out often,
fashion-conscious and drive flashy cars. Read GINJA Food & Lifestyle
Magazine and My Leader, listen to 5FM.
●● Ewes (experts with expensive style): 25–34, two incomes, mortgage,
no children, high flying, trendy, busy social life, holiday often. Watch DStv,
listen to Classic FM.
●● Bats (babies add the sparkle): 25–34, mortgage, children, restricted
spending, home-orientated. Watch Sewende Laan or Isidingo, read
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Huisgenoot, Kuier or You.

●● Clams (carefully look at most spending): 34–44, heavy financial burden,
high borrowers, restricted social life and holidays. Watch Noot vir Noot.
Read Sunday Times or Rapport.
●● Mice (money is coming easier): 45–55, peak of earnings, children leaving,
end of mortgage, regular holidays, more disposable income. Read Getaway
and subscribe to National Geographic. Listen to RSG and SAFM.
Source: Author adaptation from Brassington, F. & Pettitt, S, 2000. Principles of
marketing. 2nd ed. London: Prentice Hall.
Write a report that summarises the segmentation bases embedded in the
following cases.

Roberts-Lombard,216M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 216 2022/03/29 11:20 AM

Chapter 11: Market segmentation

Case 4
Marketers recognise the importance of segments that have not traditionally been
targeted by certain product categories. First For Women Insurance (http://www.
firstforwomen.co.za) provide a range of service products and a specialised offer
called Guardian Angel on Call. Examine the segmentation approach followed by
this company and comment on the benefits offered to customers.

Case 5
Lockdowns, travel restrictions, store closures, homeschooling, and more;
COVID-19 turned most people’s lives upside down overnight – and one area that
was immediately impacted was retail. From a shopper’s initial research up until the
moment of purchase, suddenly many customer journeys are predominantly taking
place online. But what can retailers do to overcome the challenges brought on by
this major shift? Smart Shopper, a study commissioned by Google and conducted
by Kantar in May 2020, shines a light on shopping behaviours during the pandemic
to help inform brand, marketing, and consumer strategies – now and for the future.
Reflect on how COVID-19 could impact on market segmentation. Find inspiration
for reflection on websites such as these:
https://www.bizcommunity.com/Article/196/33/202273.html
https://www.thinkwithgoogle.com/intl/en-ssa/consumer-insights/consumer-
trends/covid-effect-7-new-consumer-shopping-behaviour-trends-south-
africa/
ht tps://www.mckinsey.com/business-functions/marketing- and- sales/
o ur- i nsights/sur vey- so uth - afri can - consumer- senti ment- duri ng - the -
coronavirus-crisis
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 217
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:18.

Consumer Behaviour 5E.indb 217 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 218 2022/03/29 11:20 AM

Chapter
THE CONSUMER DECISION-
12 MAKING PROCESS
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain the process that consumers undergo when engaging in decision making
■■ Explain why consumers engage in decision making
■■ Illustrate the five stages in the process of consumer decision-making
■■ Describe the influence of consumer involvement in the process of decision making
■■ Illustrate and explain the influence of information search, and individual and
environmental influences on the consumer’s final decision
■■ Understand the impact of an external influence like a pandemic on consumer decision-
making and choices
■■ Distinguish between four types of consumers involved in decision making
■■ Distinguish between habitual, limited and extended decision making
■■ Explain the importance of post-buying evaluation
■■ Explain the differences between satisfaction, dissatisfaction and cognitive dissonance
■■ Explain the marketing implications of the consumer decision-making process.

12.1 Introduction
The success of any business depends on the development of effective marketing
strategies. In order to design such strategies, it is imperative to assess and understand
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the complex activities, both physical and mental, in which consumers engage.

Consumer analysis includes an evaluation of four interrelated dimen

sions, namely cognition, behaviour, environment and marketing strate
gies, in order for marketers to obtain a profile of the target market.
While cognition refers to the psychological processes that consumers experience,
behaviour is the overt actions they perform. For example, if you feel hungry on
campus, you may evaluate whether to buy a sandwich, a burger or a doughnut,
considering the cost or nutritional value of each.
This action of assessment is referred to as cognition. After evaluating which type of
food has the greatest potential to fulfil your need, you would go to the cafeteria and
buy the one you have decided on. This act is your behaviour. The stimuli external
to consumers that affect their cognitions and behaviours are referred to as the

Consumer Behaviour 5E.indb 219 2022/03/29 11:20 AM

Consumer Behaviour

environment. In the same example, the external stimuli may be the price of the item
or the nutritional value. Marketing strategy comprises the techniques by which
marketers formulate marketing stimuli, such as advertisements, price, products and
stores, and locate them in consumer environments. In the example used above,
you may take into consideration the promotion that the cafeteria is offering, for
instance getting a ‘buddy’ soft drink for only R7.00 when you buy a sandwich. The
analysis process is illustrated in Figure 12.1.

Need Cognition Cognition (evaluation) Behaviour Post-buying

(search for (purchase) evaluation
alternatives)
HUNGRY? Buy a External stimuli BUY A Need/
sandwich? e.g. Cost; nutritional SANDWICH problem
value solved
Buy a burger?
Internal stimuli
Buy a
e.g. I enjoyed the
doughnut?
sandwich the last time I
bought it.
Marketing strategy
Advertising
Price
Products

Figure 12.1 Consumer analysis

Figure 12.1 indicates that marketing stimuli, together with scarce resources, force
consumers to weigh the pros and cons of available alternatives in order to obtain
maximum utility from limited available income.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Therefore, behaviour can be seen as a decision-making process that takes the form
of problem-solving activity. This process is not a single activity or step. Rather,
consumers identify and evaluate choices, explore the results of particular actions,
and analyse the consequences of their behaviour once they have bought the item.
This implies that:

consumers do not just buy objects, but also solutions to problems.

Furthermore, consumer decision making is influenced by a large number of individual
and environmental variables. Individual influencing variables constitute factors that
control internal thought processes, while external influences constitute aspects
that are external to consumers. An understanding of consumer behaviour and
the decision-making process is therefore a critical element that enables marketers
to know, serve and influence consumers. A recent example in South Africa that
clearly depicts an individual influence on consumer decision making relates to

Roberts-Lombard,220M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 220 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

consumer sentiment. A survey by McKinsey found that as a result of the corona

virus lockdown in South Africa since March 2020, ‘about 79% of South Africans
have tried a new shopping behaviour and most intend to continue usage
beyond the crisis’.1 The COVID-19 pandemic itself was a strong external influence
on consumer decision making. For example, as the COVID-19 pandemic unfolded
globally, consumer decision making and behaviour was greatly influenced,
especially with regard to panic buying and increased online purchases (e-commerce)
(Figure 12.2).

Figure 12.2 The external influence of the COVID-19 pandemic on consumer decision making

Panic buying is a sudden acceleration in demand, generally triggered by a disaster.2

Consumer decision-making styles also differ across biographical profiles like
gender, age, level of education, and ethnic backgrounds and cultural differences.3
Consumers from different ethnic groups display different purchasing behaviour
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and attitudes.4 This becomes increasingly complex in a multi-cultural society like

South Africa, where ‘there is a growing market known as the “black diamonds” who
constitute a group of middle-class African consumers have an ongoing commitment
to their specific culture’.5 Likewise, ‘Korean and American consumers largely
exhibited brand conscious and perfectionist decision-making styles’.6 Similarly,
‘the brand conscious decision-making style was significant amongst Korean, Chinese
and Indians students’ though Indian students were ‘more confused with “over
choice”’.7 Further to that, ‘price-value decision-making style’ was more important
for US and Chinese consumers than for Indians and Koreans.8 Additionally, there
are seven reliable factors that describe the multi-dimensional nature of decision-
making styles of South African consumers: perfectionist, recreational shoppers,
confused by over-choice, novelty/fashion conspicuousness, brand-consciousness
and price-consciousness.9 It was also found that South African males tend to be
‘slightly more perfectionist or quality-conscious than South African females’.10
From this, the importance of assessing decision-making styles in gaining insights
into ‘product and service preferences’ is highlighted.11

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 221
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 221 2022/03/29 11:20 AM

Consumer Behaviour

12.2 The consumer decision-making process

Consumers are continuously making decisions about what products and services to
consume. There are two fundamental reasons why individuals must make decisions.
1. They have to satisfy their needs and desires.
2. Frequently, more than one choice or alternative will satisfy their needs.

For whichever reason, consumers have to make decisions, and consumer decision
making determines what goods and services people will want, buy, own and use.
Consumer behaviour is triggered by needs. Consumer decision making directs needs
by assessing and selecting the actions that will fulfil them. However, the process of
consumer decision making, unlike consumer actions, cannot be observed.

Consumer decision making is a cognitive process; it consists of mental

activities that determine what actions the consumer will undertake to
remove a tension state caused by a need.
Consumer decision making is similar to problem solving. A problem arises when
someone seeks a goal or particular end-state, but is uncertain as to the best solution
to the problem. In consumer decision making, the unsatisfied want is the problem
and the solution is the act of buying something to satisfy the want. Therefore,
a decision or a solution is a course of action that provides a desired result to a
perceived state of need. This implies that problem solving is associated with the
perceptual state of a particular consumer.
Perception is the whole process by which individuals select, organise and interpret
stimuli in a meaningful way so that they will be congruent with their own frame of
reference.12 A problem occurs only when consumers perceive a difference between
their present situation and what they want. For example, a matriculant realises that
a matric certificate is not enough to get her a good job in, say, middle management.
She recognises that she has a problem, namely inadequate qualifications, and so the
Copyright © 2012. Juta & Company, Limited. All rights reserved.

need for further education arises.

This unfulfilled need creates a tension state that must be eliminated by the
fulfilment of the need. Thus, the student evaluates possible courses of action by
speaking to others and seeking information. She learns that possible courses of
action are to register for a degree or diploma at a university or technical university
in South Africa or overseas, or to take a short course at a private college.
She may also learn that she can be a full-time student or work full-time and study on
a part-time basis by registering for a distance learning programme. After evaluating
these alternatives, the student will choose a course of action that will achieve what
she wants. This may sound like a simple cause-and-effect process, but in reality, it
can become rather complex.

The consumer decision-making process is a sequential and repetitive

set of psychological and physical activities ranging from problem
recognition to post-buying behaviour.

Roberts-Lombard,222M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 222 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

Since the stages in the process do not necessarily follow each other in strict order,
consumers can launch into any stage in the process and follow any order, or even
skip certain activities. However, the consumers’ final decision depends on certain
influential variables that can affect any of the stages.
When focusing on the decision-making process of individual consumers, it is
obvious that the basic decision made by the individual is whether to spend or not
to spend, thereby saving. As we have seen, the outcome of the individual’s decision
will depend on many influencing variables, which can be divided into internal
or individual influencing variables (see chapters 7, 8, 9 and 10) and external
influencing variables (see chapters 3, 4 and 5). Needs or motives, personality,
perception, learning, attitudes and lifestyle are individual influencing variables that
control internal thought processes. External influences that direct internal thought
processes include culture, social influences, reference groups and family. Other
factors influencing decision making are personal characteristics (see Chapter 6),
environment (Chapter 3) and marketing (chapters 15, 16 and 17).

12.3 Buying situations

Consumers do not function in isolation – as we have just seen, they are influenced
by many individual and environmental factors that can collectively be referred to
as the psychological domain or field. These variables constantly and simultaneously
interact and play a significant role in the final outcome of consumers’ decision-
making processes.
In any buying situation, individuals absorb information from their external
environment and integrate or combine it with their inner needs, motives,
perceptions and attitudes. The choice a person makes may also be influenced by
the past, the act of recalling and personality factors.
The past may operate through experience or learnt patterns of behaviour and pat
terns of thinking, many of which are unconscious. For example, while planning
Copyright © 2012. Juta & Company, Limited. All rights reserved.

a vacation, you may recall that a travel agent at Flight Centre, who handled your
previous holiday arrangements, offered you a good package and gave efficient service.

In addition to past product experiences, anticipating future consequences of

behaviour may also influence the choice someone makes when buying something
now. Thus, you may expect – that is, anticipate – that you would have a problem-
free holiday if you arrange the vacation with the same travel agent.
People are also profoundly influenced by their surrounding environment, including
family and cultural influences, peer group pressure, reference groups, economic
demands and advertising. For example, while planning your holiday, you may
choose to visit:
●● Drakensberg, Table Mountain or the Kruger National Park – based on positive
feedback from family and friends (or reference groups)
●● Dubai, for example, because Flight Centre is offering an excellent holiday
package (advertising)

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 223
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 223 2022/03/29 11:20 AM

Consumer Behaviour

●● A destination that will not be too expensive, because of the need to distribute
limited resources (that is, money) across unlimited needs, while facing
constant price increases (economic demand factors)
●● A destination where you can visit art galleries that display the kinds of
paintings you like or religious institutions of your faith (cultural influences).

However, despite these pressures, the decision

Problem recognition
whether to buy or not in the final buying situation is
The individual recognises a
an individual one.
need that she or he wants to
satisfy.

12.4 The stages in the decision-making

Search for information process
The person looks for
We now explore the five stages in the consumer
information about possible
decision-making process, as illustrated in Figure 12.3.
solutions in the external
environment, or uses the
information stored in her or 12.4.1 Problem recognition
his memory.
The first stage entails the recognition of a problem.
A problem arises when consumers recognise a
difference between what they perceive as the current
Evaluation of alternatives
or actual state of affairs and the state of affairs that
The person evaluates
they want.
or assesses the various
alternatives, using all the
information she or he has at Problem recognition is an awareness of
hand, together with her or the need to change the existing state to
his experience, and comes conform to the desired or ideal state.
to a decision.
For example, a stressed chief executive officer (CEO)
Copyright © 2012. Juta & Company, Limited. All rights reserved.

of a major South African company may recognise

Buying that she has not taken a holiday for a long time,
The person buys the item and therefore needs a vacation. Problem recognition
she or he has chosen. is predominantly a perceptual phenomenon. The
difference between the existing and desired state of
affairs triggers a state of motivated behaviour. The
Post-buying evaluation result is the development of a spectrum of mental
The person uses the product activities and attitudinal reactions that we call
and evaluates whether she cognitive processes. The CEO evaluates places that
or he is satisfied with it; she likes and can visit. She obtains information
that is, whether it satisfies on various holiday packages and offerings from
the need and solves the brochures, travel agents, resorts, family, friends
problem. and reference groups. The process of problem
recognition may vary widely, depending on the
Figure 12.3 The stages in the effect of the various influencing factors. Need or
decision-making process13 problem recognition is influenced by information

Roberts-Lombard,224M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 224 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

stored in memory, individual differences, and external (environmental) and social

factors. Social factors are particularly relevant to consumers who place value on the
responses of others. Need or problem recognition, especially in complex decision
making, is likely to be multi-faceted and complex.

Table 12.1: Problem recognition in the stages of decision making

Problem Which shoe to Which brand to How should I pay? Post-buying

recognition buy? select? evaluation

I need a pair of Formal shoes? ●● Angels ●● Cash Satisfied?

shoes! Casual shoes? ●● Froggie ●● Cheque Not satisfied?
Sports shoes? ●● Greencross ●● Credit card
●● Bronx (budget or
straight?)
●● Hushpuppies
●● Nike
●● Adidas
●● Reebok
●● Fila

Problem recognition can take place at all stages of the decision-making process. Different
problems arise at different stages, such as:
●● problems associated with whether a product is needed – the most basic level of
problem recognition
●● problems concerning what product to buy or which brand to select – resulting from
information search and processing in an effort to ensure an informed decision
●● problems concerned with whether to buy with cash or on credit, or how to postpone
the act of buying – resulting from the buying response
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● problems concerning whether consumers are satisfied with what they have bought
– resulting from post-buying behaviour.

Most consumer problems arise as a result of the following issues:

●● Assortment inadequacies: This situation comes about when a consumer’s
supply of a particular item is running out, for example when we reach the
end of a tube of toothpaste.
●● New information: This arises when consumers become aware of products and
services and view them as solutions to their problems, for example when a
fitness fanatic sees an advertisement for a new home exercising machine that
is easy to use and highly effective.
●● Expanded desires: People are continuously driven by their desire to improve
their standard of living. This results in a desire for new goods and services.
For example, a person who owns a small car will usually, at some point, want

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 225
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 225 2022/03/29 11:20 AM

Consumer Behaviour

a bigger car. These expanded desires can be caused by consumers’ constantly

changing roles, lifestyles, views and images. For example, when South Africa
hosted the FIFA World Cup in 2010, many South Africans viewed this as a
historical event and desired to be part of the action and atmosphere. Hence,
they wanted to buy match tickets, branded clothes, South African flags and
other items to display their support for the South African team and the host
nation. Likewise, South Africa’s Comrades Marathon, which first began
in 1921, attracts runners from all over the world, who aspire to complete
the 89 km race between Pietermaritzburg and Durban. During this time,
participants purchase the most comfortable athletic gear and running shoes,
and supporters purchase energy drinks, umbrellas, caps, towels and other
items to be part of the fun and action and to enjoy the comrades’ spirit.
●● Expanded or reduced means: An increase in income will almost always mean
an increase in consumer spending. For example, someone who receives a job
promotion and therefore a pay increase may decide that he or she needs to
build a swimming pool. A financial loss or loss of employment can have the
opposite effect. For example, someone who has just been retrenched may feel
the need to move into a smaller house, and that person may accept that he
or she cannot have a swimming pool. In other words, consumers’ financial
resources are a major factor in determining how much and what goods and
services they will consume and in what quantities.

12.4.2 The search for and processing of information

As soon as consumers recognise the problem, they begin to search for information
and then process it, which marks the second stage of the consumer decision-making
process. In many buying situations, once consumers have recognised the problem,
they begin to look for information.

Consumer search is the cognitive and behavioural actions that con

sumers engage in to retrieve information on specific problems identified.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

It is an interactive learning process in which consumers learn about competing

products, brands or services and their prices, stores, outlets and conditions of
sale. Through this process, consumers obtain valuable information that enables
them to evaluate alternatives and select a course of action that produces optimum
benefits at minimum cost. It is therefore a selective process, because consumers
choose information that closely resembles their wants, and which aligns with their
thinking, feeling, behaviour, views, beliefs and personality.
The search consumers engage in may be internal or external. An internal search is
the information that consumers retrieve from memory – stored from a previous
learning process – which they draw on to facilitate a quick purchase decision.
Someone wanting to buy a car, for example, may remember that other members of
their family always bought Toyotas because they believed the cars were reliable and
economical, and had good resale value. Coupled with experiences with a product,
internal searches based on the process of learning include things such as interaction

Roberts-Lombard,226M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 226 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

with a salesperson and consumer advisory services, parking facilities, store layout,
availability of items and prices paid for items.
Consumers also obtain information from outside their experience to help their
decision making. This is an external search that is influenced by individual or
personal differences and external (environmental) influences. Individual or
personal differences refer to aspects that differ from consumer to consumer, for
example motivation, level of product or service involvement, the resources the
consumer has access to, lifestyle, knowledge, feelings, behaviour, personality
and biographical differences. External influences relate to personal information
sources (parents, friends, reference groups), business and marketing forces (in-
store specials, personal selling, advertising, combination or combo deals), neutral
sources (written information such as brochures and flyers), human sources (such
as financial advisers or nutritionists) and social and cultural forces (for example,
a pastor or priest). Figure 12.4 shows the internal and external influences that
impact on consumers’ search for information and the processing thereof.

INFORMATION RESEARCH

Individual differences Environmental influences

●● Consumer resources ●● Personal information sources
●● Motivation and ●● Business and marketing influences,
involvement e.g. advertisements, in-store
●● Knowledge promotions and personal selling
●● Neutral sources (booklets, brochures
●● Attitudes
and pamphlets)
●● Personality
●● Human sources (financial
●● Lifestyle consultants)
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Demographics ●● Social and cultural influences

EVALUATION DECISION

Figure 12.4 The search for and processing of information

From Figure 12.4, we can see that one of the main challenges facing marketers is
presenting consumers with information on which to base their decisions. Ariely14
found that controlling the information flow may help consumers to match their
preferences better, have better memory and knowledge about the domain they are
examining, and be more confident in their judgements.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 227
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 227 2022/03/29 11:20 AM

Consumer Behaviour

Consumer involvement in decision making

The process of consumer decision making will depend on the individual consumer’s
level of involvement in that process. The extent of the involvement is determined
by the extent to which a consumer feels a product or brand will lead to results that
she or he values.

Consumer involvement is therefore a motivational state that encourages

and guides consumers’ attitudes (cognition, feelings and behaviours)
as they make decisions about their purchases.15
Product involvement implies that the product is important to a consumer’s self-
identity, and it can bring strong attitudes and preferences to the surface. Assael16
categorises the distinction between high and low levels of involvement in terms
of beliefs, preferences and attitudes. A low-involvement purchase has taken place
when consumers do not consider the product to be sufficiently important to their
belief systems and do not significantly identify with the product. Low-involvement
decision making implies that consumers may act without thinking and may not
even be concerned about brand or product differences.
Conversely, high-involvement decision making suggests that consumers think
carefully about the process of buying something. It is evident that a relationship
exists between the level of involvement and the degree of decision making. The
higher the level of purchase involvement, the more intensive or the greater is the
degree of decision making. Product involvement is influenced by perceived risk and
badge value to the reference group:17
●● Perceived risk is the amount of risk the consumer perceives in the buying
decision as a result of uncertainty about the decision and/or the potential
consequences of a poor decision. For example, a person who is meticulous
about foot care may buy only Green Cross shoes out of fear that choosing
another brand of shoe may not offer the same comfort and may risk damage
to the feet.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Badge value means that a person becomes involved with a purchase because it
is socially desirable. For example, you may want to buy a pair of Soviet jeans
because your friends think they are cool.

Both types of involvement lead to higher levels of information processing, which

means greater information search and an evaluation of brand options on a wider
set of evaluative criteria.

Types of consumer decision making

Although there are many different levels of consumer decision making, three distinct
types can be recognised, namely habitual, limited and extended decision making.

As consumers move from an extremely low level of purchase involve

ment to a higher level, the decision-making process becomes increasingly
complex, progressing from habitual to limited to extended decision making.

Roberts-Lombard,228M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 228 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

These types of decision-making processes cannot be clearly separated from one

another, but instead blend into one another, and the buying process changes as
buying involvement increases.
We now briefly explore the three types of decision making.

Habitual decision making

Consumer satisfaction with a product or service may lead to repeat buying
and, gradually, to buying based on habit. Habitual buyer behaviour is based on
experience and is a way of simplifying the process of decision making by decreasing
the need for information search and evaluation of brands, for example with regard
to toothpaste or soap.
Habitual decision making exists when there is low involvement with the buying
process, and it results in repeat buying behaviour.

Habitual decisions can be categorised into brand loyalty and repeat

buying behaviour.
●● Brand loyalty: At first, consumers may be deeply involved in choosing a
product. Having selected a brand through a complex decision-making process,
consumers buy it again and again without thinking about it further. They
become committed to the brand they have chosen, because they feel that it
meets their overall needs. For a true state of brand loyalty to exist, there must
be emotional attachment or strong psychological commitment to the brand.18
For example, after carefully evaluating and trying various brands and blends
of tea, a customer may conclude that Five Roses completely fits their taste and
may thereafter automatically reach for it on every purchase occasion.
●● Repeat buying behaviour: This is often misinterpreted as brand loyalty.
However, while brand loyalty implies a psychological commitment to the
brand, repeat buying behaviour simply means that consumers buy the same
Copyright © 2012. Juta & Company, Limited. All rights reserved.

brand over and over again. In other words, repeat buying behaviour refers
to the pattern of brand choice over time, with or without psychological
commitment. For example, a person may continuously purchase Domestos
household detergent because she or he considers it to be effective (repeat
buying); however, if the price of this product increases and becomes much
higher than alternative products, the customer may reconsider the purchase
(no psychological commitment).

Limited decision making

Limited decision making lies in-between habitual and extended decision making.
In its simplest form, limited decision making is closely related to habitual decision
making. This is because,

in limited decision making, consumers are not highly involved with the
alternatives.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 229
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 229 2022/03/29 11:20 AM

Consumer Behaviour

The available alternatives are similar in essential features and there is less need
for high involvement and evaluative buying. Limited decision making takes place,
for example, when a consumer buys a box of tissues, detergents, toilet rolls or
furniture polish.

Extended decision making

When consumers engage in high-involvement purchase decisions, they seek and
process a large amount of internally and externally obtained information and they
rigorously evaluate the numerous alternatives. When consumers do this, they are
engaging in extended decision making. Extended decision making is the response
to a high level of buying involvement, where internal and external information
searches are followed by a complex evaluation of many alternatives. Relatively
few consumer decisions reach the extreme level of complexity where extensive
problem solving takes place. Extended decision making usually happens when
a consumer buys a house, a personal computer, a car or a complex recreational
item, and in other high-involvement buying situations that require the decision
maker to progress relatively slowly and cautiously through all the stages of the
decision-making process.
Extended or real decision making is characterised by conscious planning, and occurs:19
●● when durable products are bought
●● when something is expensive or extremely important to the consumer
●● when experience in a similar situation resulted in disappointment
●● when consumers feel that they lack the necessary experience and information
to make the decision and therefore feel doubt or fear in making the decision.

Habitual, limited and extended decision making are, respectively, associated with
minimal, limited and extensive search effort. Consumer evaluation is the process
in which the consumer assesses the advantages and disadvantages of each solution.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

12.4.3 Evaluation of alternative products and services

The third step in the consumer decision-making process, after customers have
identified possible solutions to a problem, is the evaluation of these alternative
solutions. The consumer assesses the advantages and disadvantages of each solution,
an activity called consumer evaluation.
Consumers compare product characteristics against pre-determined product features
or product criteria. Product criteria, or evaluative criteria, are the basic standards
consumers regard as being reasonable when engaging in problem resolution.
They are the fundamental features or qualities that consumers use to compare
products, brands, services and stores, and they may differ across these categories.
These criteria can also be described as what consumers decide are acceptable when
searching for a solution to their problems. Note that consumers can change the
criteria in response to the situation or particular environment. The criteria for buying
a car, for example, may include safety features, durability, economy, price, colour,

Roberts-Lombard,230M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 230 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

appearance, performance and resale value. However, the criteria for choosing which
dealership to buy from may include how knowledgeable the salesperson is, the layout
of the showroom, approachability, level of trust, proximity and after-sales service.
Consumers buy the products that match their personalities, and to which they
attach a positive inclination or attitude. Schiffman and Wisenblit 20 classify
consumers involved in decision making into four types:
1. The economic consumer makes a calculated, rational decision based on complete
information. This individual collects complete cost-related information and
considers all possible financial implications. An example would be a car buyer
who carefully considers issues of economy such as cost, fuel consumption
and resale value when choosing a car.
2. The passive consumer is not knowledgeable and can be manipulated by the
marketer. This consumer reacts impulsively and irrationally, and does not
equip themselves with product-specific knowledge. An example would be
a car buyer who is easily influenced by an advertisement claiming that the
buyer’s social status will improve if she or he buys the advertised make of car.
3. The emotional consumer makes consumer decisions based entirely on personal,
emotive and irrational needs. An example would be a car buyer who buys a
car only because her or his family always owned that make of car.
4. The cognitive consumer bases consumer decisions on information from various
sources, such as the environment, social influences, personal needs, attitudes
and perception, and experience. An example would be a car buyer who
carefully considers all the evaluative criteria and actively seeks information
from various sources before making a decision.

Evidently, depending on their personal orientations, consumers engage in varying

degrees of evaluation before making a decision. In essence, the cognitive consumer
is the ideal description of consumer behaviour, as the literature on consumer
decision making emphasises the actions of rational consumers who actively
evaluate a spectrum of products in order to make a decision that ensures optimum
Copyright © 2012. Juta & Company, Limited. All rights reserved.

utility and satisfaction.

Once a consumer evaluates various alternatives, the logical next step is to make a
decision about the exact course of action.

12.4.4 The response, or buying decision

The logical outcome of evaluation is the consumer’s response, or
buying decision, which involves the consumer selecting the option that
the consumer believes comes closest to matching the pre-determined
evaluative criteria set.
In other words, the consumer selects the course of action that has the potential to
generate the greatest satisfaction. Undoubtedly, the quality of the decision depends
on the suitability and adequacy of the information upon which the decision
was based.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 231
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 231 2022/03/29 11:20 AM

Consumer Behaviour

12.4.5 Post-buying evaluation or response

The post-buying response is the final stage in the consumer decision-making process.
The reason for someone entering the consumer decision-making process in the
first place is the perception of a difference between what they have and what they
need. Consumers therefore buy things in order to fulfil needs and seek greater
satisfaction. Hence,

a crucial question from a marketing point of view is whether consumers

are satisfied once they have bought a particular product.
The post-buying phase involves different forms of psychological processes that
consumers can experience after buying a product or service. Post-buying learning
means that, after acquiring, consuming and disposing of a product or service, the
consumer discovers something about it and banks the added knowledge in her or his
memory for future use. The consumer is now equipped with an improved knowledge
base that serves as future reference.21 Some researchers22-26 maintain that the result
of buying can either be satisfaction or dissatisfaction, which signifies an emotional
response or feeling associated with the evaluation with a specific product or service
Du Plessis et al27 include another possible outcome, namely a neutral assessment.
Figure 12.5 presents the process of post-buying evaluation and response tendencies

Post-buying RESPONSE
EXPECTATIONS
satisfaction (outcomes ●● Repeat purchase behaviour
CONFIRMED
≥ expectations) ●● Brand loyalty

Post-buying Verbal
dissatisfaction EXPECTATIONS ●● Spread negative rumours about a
(outcomes < NOT
product
expectations) CONFIRMED
POST-BUYING EVALUATION

●● Indifferent verbal responses –

saying nothing creates suspicion

Neutral assessment
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Negative behavioural response

Inertia (consumers
LEARNING

●●
●● Complaint behaviour
buy the same brand
●● Brand switching Private (warn family
to save time and
and friends)
effort) POST-BUYING
INDIFFERENCE Public (demand redress from the
●● Impulse buying
company involved/complain to
(unplanned firm/take legal action against firm)
consumer
behaviour) Reduce dissonance
●● Change cognition by seeking
DOUBT OR supportive information or
Post-buying conflict
ANXIETY distorting information regarding
(Did I make the correct (POST-BUYING product or service/cognitive
decision? Should I DISSONANCE) dissonance
have bought a different
●● Change attitudes
product alternative?)
●● Change behaviour

Figure 12.5 Post-buying evaluation and response tendencies

Roberts-Lombard,232M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 232 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

Post-buying satisfaction
A positive assessment of the purchase decision results in post-buying
satisfaction.
Satisfaction occurs when the outcome, which may be a product, brand or store,
and the conditions surrounding its purchase, are matched with the consumer’s
expectations. Positive behavioural responses usually involve repeat buying behaviour
or brand loyalty in the case of post-buying satisfaction.

Post-buying dissatisfaction
On the contrary, a negative assessment leads to post-buying dissatisfaction. Consumers
encounter dissatisfaction when their experience with the product is not equal to
their expectations.
When people realise that an alternative would have been more attractive
and fulfilling, they tend to be more dissatisfied with the product they chose.28
Satisfaction or dissatisfaction therefore stems respectively from the confirmation
or disconfirmation of the consumer’s expectations.29

Complaint behaviour: complaint behaviour can be private, such as warning friends or

switching products. Also, consumers may take public action, such as demanding redress
from the company involved, complaining to the firm or to a consumer watchdog, or taking
legal action against the firm.

Brand switching: brand switching is one of the ways in which consumers experiencing
problems with a product or service may display their dissatisfaction so as to avoid more
unhappiness in the future.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Consumer responses to a dissatisfying purchase may be verbal or behavioural; that

is, consumers may talk about or act out their dissatisfaction in some way. While a
positive verbal response may cognitively reinforce the buying decision, a negative
one may result in a consumer effectively spreading negative reports about a product.
A negative behavioural response may involve the customer lodging complaints or
switching brands.

A neutral or indifferent behavioural response

A neutral assessment results in post-buying indifference.30 This can lead to indifferent
verbal responses by consumers, which can be just as damaging as negative verbal
responses. Indifferent verbal responses are where consumers have nothing negative
or positive to say about the product, or where they respond in a way that can cause
other potential consumers to be suspicious about the product.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 233
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 233 2022/03/29 11:20 AM

Consumer Behaviour

Post-buying conflict
Sometimes consumers experience post-buying conflict, where they are
uncertain whether they made the correct purchase decision or should
have bought some other alternative.
Consumers may experience doubt or anxiety, especially after making a difficult,
important and long-lasting decision. This type of anxiety is called post-buying
dissonance. Dissonance or post-purchase regret occurs because making a relatively
permanent commitment to a particular choice of product requires us to give up the
attractive features of the alternatives that we did not choose.31
In some cases, consumers may try to reduce this dissonance by changes in cognition
and attitudes – they will find some congruence or balance in their psychological
field by seeking supportive information or distorting contradictory information
regarding the product or service.32 This response is termed cognitive dissonance.
Cognitive dissonance belongs to the family of cognitive consistency theories.
Each consumer has many cognitions about themselves or other people and the
decisions they make. If these elements follow logically from one another, consonant
cognitions exist. However, if there is logical inconsistency, dissonant cognitions
arise. Since dissonance produces unpleasant feelings, the individual will try to
reduce the amount of dissonance experienced.
Although post-buying assessment is the final stage in the consumer decision-
making process, it is not necessarily the end of the process. The information
gained as a result of buying and post-buying evaluation is stored in individuals’
memories as part of their experience. Consumers remember this information when
starting another buying decision-making process. In other words, irrespective of
the outcome, post-buying evaluation is a learning process that provides feedback to
the consumer. The feedback is stored as information which then influences future
purchase-related decisions and behaviour.33
Copyright © 2012. Juta & Company, Limited. All rights reserved.

12.5 Marketing implications

Understanding how consumers engage in analysis and decision making
when undertaking purchases will enable marketers to take advantage
of market opportunities, to target markets appropriately and to design
effective marketing strategies.
Such knowledge will assist in market segmentation and product positioning, and
enable marketers to know, service and influence consumers. By analysing the internal
thought processes of consumers as they undergo the process of decision making,
marketers can discover the criteria that consumers use in buying decisions and the
variables that influence the decisions. Having such insight will enable marketers to
manipulate external influences effectively to attract consumers and enhance market
share. It will also enable them to predict future consumer behaviour.

Roberts-Lombard,234M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 234 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

Assessing consumers’ product involvement and level of decision making will

enable marketers to provide consumers with the right kind and amount of
information on which to base their decisions. This will enable marketers to
guard against information overload, provide relevant information and develop
suitable communication campaigns. Furthermore, the occurrence of consumer
dissatisfaction and dissonance emphasises that the information provided must be
correct and should not exaggerate product performance. To encourage purchases
and to reduce perceived risk, product samples may be strategically distributed.
Marketers will also be able to extend their market by designing effective in-store
and advertising appeals and strategies to capture the impulsive buyer’s attention.
Evidently, consumers engage in post-buying evaluation, which has an impact on
future consumption behaviour, brand preference and loyalty, and positive word-of-
mouth communication. Hence, it is imperative for marketers to devise strategies for
enhancing post-buying satisfaction.
While effective service or product quality delivery is the ultimate goal, complaint
behaviour will always exist. The implication is that marketing management should
not discourage or suppress complaints, as this often results in escalating levels
of consumer complaints.34 Furthermore, irate consumers may engage in negative
word-of-mouth communication, the consequences of which can be detrimental.
Such communication also signifies one external source of information over which
marketers have no control. It is therefore imperative to manage customers’ post-
purchase attitude and behaviour, for example by monitoring social media sites to
identify problems and respond to them timeously.35
Marketers should engage in effective complaint management in order to enhance
repeat buying behaviour. Companies need to investigate the underlying source
or reason for the unhappiness. This will equip them to take corrective action.
Moreover, they should adopt strategies to provide easy access to dissonance-
reduction information. Likewise, it is important that they maintain the segment of
satisfied consumers, sustain sales, and instil and harness loyal behavioural patterns
Copyright © 2012. Juta & Company, Limited. All rights reserved.

in consumers. Despite the internal and external influences on the consumer

engaging in decision making, the final decision of whether to buy or not rests with
the consumer. Securing a significant market segment would therefore signal to the
marketer that the strategy adopted is effective. Failing to capture a suitable market,
or to reach the target market effectively, would also provide valuable feedback to
marketing strategists, prompting them to redesign the marketing approach, taking
cognisance of consumer needs, information search and processing behaviour, and
decision-making patterns.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 235
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 235 2022/03/29 11:20 AM

Consumer Behaviour

CASE STUDY: Nisha buys a new car

On Monday morning, Nisha Singh was, as usual, dropping off her daughter at
school. While answering the constant stream of questions from her eight-year-old,
Nisha was preoccupied watching the various models and makes of cars on the
road. She visualised each one in terms of her own lifestyle. On her return journey,
she stopped at three car dealerships and, at each one, spoke to a salesperson,
collected brochures and sought advice. She felt that speaking to people who have
the relevant information would enable her to find the best fit between her needs
and the characteristics of each motor vehicle that she was considering. She also
considered the fact that the salesperson may provide a biased opinion in an attempt
to secure a purchase agreement.
Despite all the information she collected and the advertisements she looked at,
Nisha’s father’s words continued to ring in her head: ‘A Toyota is reliable, functional
and has good after-sales value. We have had many years of experience and
thousands of happy kilometres driving a Toyota. It has never let us down.’ Nisha’s
mind drifted to the many crossroads she encountered in life and how she came
through each one by taking her judicious father’s sound advice. She decided to
visit her retired father before fetching her daughter from school.
Nisha’s father welcomed his daughter with his usual beaming smile and patiently
helped her to evaluate the brochures and the various features of the different
makes of motor vehicles. He also brought out some recent newspaper cuttings
of attractive advertisements that he had collected. Nisha now had extensive
information to digest and evaluate. Since she had some time at her disposal, she
decided to call a friend who is a mechanic, whose opinion and expert advice she
valued and who could certainly help her to eliminate less suitable alternatives. As
expected, he gave her valuable insight into the alternatives based on the array
of evaluative criteria that Nisha had compiled, and he helped her to narrow down
her options. He also reinforced her father’s views while suggesting other, equally
suitable, alternatives. Nisha fetched her daughter from school and, while waiting
Copyright © 2012. Juta & Company, Limited. All rights reserved.

in the supermarket queue to pay for her daily purchase of bread and milk, she
met a friend, who invited her to a card game that evening. She accepted. During
the course of the evening, the topic of cars came up. As the women talked about
different makes and models, it dawned on Nisha that most of the cars mentioned
offered aesthetic value and appealed more to someone who wanted to ‘make an
impression’. A colleague of Nisha’s friend mentioned a Jaguar, proclaiming that
‘driving a car like that is sure to turn heads’. Nisha mused.
She wanted functional value, and the more she listened to the conversations, the
more she realised that her father understood her needs the best. Her decision
was easier now. She had needed to go through the process of searching for and
evaluating information before she could satisfy herself that she was making the
right decision. But now, after weeks of searching and evaluating and re-evaluating,
Nisha knew she was ready to enter into a purchase agreement. A few weeks
later, while taking her father for a drive in her brand-new car, he proudly said,
‘Congratulations! I knew this was the perfect car for you, because it matches both
your needs and your personality.’

Roberts-Lombard,236M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 236 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

12.6 Summary
Consumers engage in decision making because they have unlimited wants and
limited resources with which to satisfy these wants. To make sure that their most
important needs are fulfilled first and that they derive maximum utility from their
purchases, consumers undergo the process of decision making. Sometimes a
consumer can go through the entire decision-making process without even
realising it, while at other times, consumer decision-making may be complex,
deliberate and time-consuming. The level of decision making that the consumer
engages in depends on the extent of their involvement in a particular purchase.
The greater the degree of satisfaction derived from buying a product or service,
the greater the chances are of repeat buying behaviour. Consumers experiencing
dissatisfaction with what they have bought may experience cognitive dissonance
or post-buying regret. Our analysis of the various stages of the consumer decision-
making process shows that the buying of consumer goods and major durable
products are much alike. Irrespective of the situation, consumer buying behaviour
is the outcome of rational considerations in selecting goods and services that
fulfil consumption goals. The only variation is in the emphasis or value that the
individual places on the various stages in the decision-making process.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Explain the nature of, and need for, consumer decision making.
2. Illustrate and explain the five stages in the consumer decision-making process
3. Identify and explain four sources of consumer problems.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

4. Illustrate and explain the search for, and processing of, information when
engaging in consumer decision making.
5. Explain the importance of post-buying evaluation in marketing management.
6. Distinguish between habitual, limited and extended decision making, using
examples.
7. Identify and explain four types of consumers involved in decision making.
8. Distinguish between satisfaction, dissatisfaction, post-buying indifference and
cognitive dissonance with the aid of a flow chart or illustration.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 237
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 237 2022/03/29 11:20 AM

Consumer Behaviour

9. With reference to the case study, answer the following questions.

A. What are the various factors that Nisha encountered in her search for, and
processing of, information, and in making her buying decision? What was
the strongest influence, and why?
B. How would you describe Nisha’s level of involvement in the purchase?
What type of decision making did she engage in? Explain this type of
decision making in detail.
C. How would you describe Nisha during her decision-making process: as an
economic, passive, emotional or cognitive consumer?

Multiple-choice questions
1. Which of the following is not a dimension that is evaluated during consumer
analysis?
A. Cognition
B. Environment
C. Overt actions
D. Marketing strategies
E. None of the above.
2. Which of the following statements is false?
A. Cognition refers to the psychological processes that consumers
experience.
B. Cognition is influenced by internal and external stimuli.
C. Marketing strategies influence cognition.
D. Cognition is influenced by external stimuli but not internal stimuli.
E. Cognition may be described as assessment or evaluation.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

3. Individual influencing variables that impact on the outcome of a consumer’s

decision exclude …
A. personality and perception
B. culture and social influences
C. needs or motives and attitudes
D. lifestyle and learning
E. none of the above.
4. If a consumer chooses to visit Spain because Harvey World Travel is offering a
special holiday package to that destination with one extra night free, what type
of influence would this reflect?
A. Advertising influence
B. Reference group

Roberts-Lombard,238M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 238 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

C. Marketing influence
D. Economic demand factors
E. A, C and D.
5. Which of the following statement(s) is/are true?
A. A problem occurs when the desired state of affairs is less desirable than
the current state of affairs.
B. A problem occurs when the current state of affairs is less desirable than
the desired state of affairs.
C. Social influences do not have an impact on problem recognition.
D. Problem recognition only occurs during the first step of the decision-
making process.
E. B and D are true.
6. Most consumer problems arise as a result of …
A. assortment inadequacies
B. new information
C. financial gain or financial loss
D. A and B
E. A, B and C.
7. Which of the following statement(s) is/are true?
A. Consumer search constitutes only the physical activities undertaken by
consumers to obtain information on identified problems.
B. Consumer search is a learning process that brings about awareness of
price, brand, product, store, trading centres, trading agreements and
services.
C. Consumer search can only be external, and not internal.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

D. Consumer resources, knowledge, motivation and involvement do not

influence external consumer search.
E. None of the above.
8. Which of the following statement(s) is/are true?
A. Brand loyalty exists only when there is some degree of psychological
commitment to the brand.
B. Brand loyalty refers to the pattern of brand choice over time with or without
psychological commitment.
C. Brand loyalty may be categorised as extended decision making.
D. A and C.
E. All of the above.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 239
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 239 2022/03/29 11:20 AM

Consumer Behaviour

9. Extended decision making is characterised by conscious planning, and occurs

when …
A. something is extremely important to the consumer
B. experience in a similar situation resulted in confirmed expectations
C. durable products are bought
D. A and C.
E. All of the above.
10. A consumer who wants to buy a new car carefully and thoughtfully considers
all the evaluative criteria and actively seeks information from various sources
(including social influences) before making her or his decision. How would you
best describe this consumer?
A. Passive consumer
B. Cognitive consumer
C. Economic consumer
D. Emotional consumer
E. B and C.
11. When consumers engaging in post-buying evaluation realise that their
outcomes do not match up to their expectations, they may …
A. be indifferent and say neither negative nor positive things about the
product
B. engage in positive behavioural responses
C. engage in complaint behaviour that may be private and/or public
D. display brand loyalty
E. A and C.
12. When consumers experience post-buying conflict, they may …
Copyright © 2012. Juta & Company, Limited. All rights reserved.

A. change their cognition by seeking supportive information

B. change their cognition by distorting information about a product or service
C. change their attitudes and/or change their behaviour
D. A and C
E. All of the above.
13. Which of the following does not apply?
When engaging in consumer analysis to obtain a profile of the target market,
marketing practitioners need to evaluate:
A. cognitions
B. behaviour

Roberts-Lombard,240M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 240 2022/03/29 11:20 AM

Chapter 12: The consumer decision-making process

C. demographics
D. marketing strategies
E. none of the above.
14. Which of the following statements is true?
A. The act of buying is the first stage in the decision-making process.
B. Expanded desires do not trigger consumer problems.
C. Perception is the manner in which an individual becomes aware of the
environment and interprets it so that it will be congruent with her or his own
frame of reference.
D. Internal search concerns information about a purchase that is stored inside
one’s house.
E. None of the above.
15. Which of the following statement(s) is/are false?
A. Problem recognition cannot occur in the fourth stage of the decision-
making process.
B. Perceived risk is the amount of risk the consumer perceives in the buying
decision as a result of uncertainty about the decision.
C. Badge value means that a person becomes involved with the purchase
because it is economical.
D. None of the above.
E. A and C.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 241
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:37.

Consumer Behaviour 5E.indb 241 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 242 2022/03/29 11:20 AM

Chapter
HOUSEHOLD OR FAMILY
13 DECISION MAKING
Learning outcomes
After studying this chapter, you should be able to:
■■ Define the household as a primary reference group
■■ Discuss the primary functions of the household
■■ Discuss household decision making and consumer behaviour
■■ Discuss the marketing implications of the household life cycle
■■ Discuss household expenditure patterns.

13.1 Introduction
A family is an important element that affects the consumption and disposal of
products by a consumer. It is essential from a marketing perspective that the
marketer understand family structures, how these families are composed, the
buying patterns in these families, the different buying roles and motives of family
members and so forth in order to gain an understanding of the influence of family on
consumer behaviour.1 Once this is understood, it can assist in positioning a product
or service efficiently in the market. We begin this chapter with an examination of
the household unit, and we suggest that the concept of ‘household’ may be more
appropriate than ‘family’ in the current socio-economic environment. We then
explore the household as primary reference group. We discuss household decision
making and consumer behaviour, and explore the marketing implications of the
Copyright © 2012. Juta & Company, Limited. All rights reserved.

household life cycle. We also consider the various roles of household members and
their influence on decision making.

13.2 The household or family as a primary reference group

13.2.1 The different types of families and their unique dynamics2
The structure of families has changed over the years and the days of the traditional
nuclear family (mom, dad + one or more kids) are over. Today, different family
types are not only common but also much more accepted than they were in the
past. To some extent, it has become the norm to be raised by a single mother or
be part of a mixed family. In fact, the opposite seems to be true where it seems
more uncommon to live in a household where both parents are happily married.
Fortunately, many of those families do still exist.

Consumer Behaviour 5E.indb 243 2022/03/29 11:20 AM

Consumer Behaviour

Marketers are aware of the fact that each different family type has a unique family
dynamic. Consumers learn from their family type and this is reflected in their
actions and decision making. Looking at family type and dynamics can also give
marketers a better idea of the strengths and weaknesses of that family type and
use that in the development of marketing strategies. The six main family types are
discussed below.

1. Nuclear family
Nuclear families, also referred to as traditional families, consist of two parents
(usually married or common law) and their children. Nuclear families may have
one or more children who are biological or adopted, but the central aspect is that
the children are raised by both parents.
It would seem that nuclear families are on the decline, however even though it does
not always work out that way, many people still consider this to be the ideal family
environment in which to raise children.

Strengths of nuclear families:

●● Generally financially stable, as both parents usually work
●● Children raised in a stable parenting situation
●● Consistency
●● Emphasis on health and education
●● Focus on communication.

Weaknesses of nuclear families:

●● Exclusion of extended family can lead to isolation and stress
●● Can struggle with conflict resolution
●● Nuclear families can become too child-focused, resulting in self-centred
Copyright © 2012. Juta & Company, Limited. All rights reserved.

children and families neglecting other important things.

The essence of nuclear families is important to marketers as the way they adapt
their marketing strategies and develop their market offerings will be influenced by
the fact that they are targeting their customer base in this segment.

2. Single parent family

Single-parent families consist of one parent with one or more kids. In these cases,
the parent either never married, is widowed or is divorced. Single-parent families
have been on the rise since the 1960s, when divorce rates started going up. This
could be attributed to many different factors, from changing morals in society to
increasing arguments over gender roles.

Roberts-Lombard,244M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 244 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

A single parent raising a child or children alone is not really uncommon anymore,
and like any other family type, single-parent homes have their pros and cons.

Strengths of single-parent families:

●● Family members can become very close
●● Learn to share household duties
●● Children and parents can become very resilient.

Weaknesses of single-parent families:

●● Families struggle to get by on one income
●● It can be difficult for parents to work full-time and still afford quality
childcare
●● Parenting can be inconsistent, especially if kids go back and forth between
parents.
Marketers need to take cognisance of the traits and realities of this household
and design their marketing actions to best adapt to these realities when targeting
these segments.

3. Extended family
In different cultures, extended families are much more common and have been
around for hundreds of years. Extended families are families with two or more
adults who are related through blood or marriage, usually along with children.
In many cases, extended families live together for social support and to achieve
common goals. For example, parents may live with their children and their
children’s grandparents. This gives the family the ability to provide care for their
elderly, and in turn, the grandparents may be able to help with childcare while the
parents are at work.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Strengths of extended families:

●● Things like respect and care for the elderly are important
●● More family around to help with chores, childcare, in case of emergencies, etc
●● Social support.

Weaknesses of extended families:

●● Financial issues can occur if parents are supporting several other adults and
children without any extra income
●● Lack of privacy depending on the living environment.
In South Africa, extended families living together is not that uncommon and has in
many instances become the norm. A strong feature of extended families is how close
they can be, and there is usually a vast amount of support between them – even

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 245
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 245 2022/03/29 11:20 AM

Consumer Behaviour

though it is never easy for such a large group to stay together. There can be
differences in opinion in extended families, and some people might live this way
because they are obligated, not because they want to.
Marketers need to factor in the composition of these families in their marketing
actions and adapt their communication to address the issues as identified in
these segments.

4. Childless family
Childless families are families with two parents who cannot have or do not
want children. In the world of family types and dynamics, these families are
often forgotten or left out. For certain types of products, this market family type
offers huge potential as these families generally have more disposable income.
Traditionally, the expectation is to grow up, get married and have children,
but today, more people choose to postpone having children or decide not to
have any.
These unique families include working couples who may have pets or enjoy involving
themselves with other people’s children, for instance those of close friends or their
nieces and nephews, on a regular basis rather than having their own. They could
also be socially active or career-driven couples who feel children would hold them
back on achieving their ambitions or would not fit into their lifestyle.

Strengths of childless families:

●● Typically have more disposable income
●● No dependants to take care of
●● Have more freedom to travel, go on adventures, pursue different careers or
further their education
●● Couples get to spend more time together.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Weaknesses of childless families:

●● Couples can feel isolated or left out when all their friends/family start
having kids
●● Can have a sense of missing something
●● This may lead to couples compensating for lack of children in other ways.
Marketers offering specific types of products can focus on meeting the needs of
these couples with specifically targeted products. They need to be aware of what is
important to these segments in order to present the correct offering.

Roberts-Lombard,246M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 246 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

5. Stepfamily
This type of family is becoming increasingly prevalent and refers to when two
separate families merge into one. This can, for example, be two previously divorced
parents, each with one or more children, blending families, or one divorced parent
with children marrying someone who has never been married and has no children.
Like all these different family types, stepfamilies also have a unique set of strengths
and weaknesses that they need to deal with.

Strengths of stepfamilies:
●● Children get the benefit of having two parents around
●● Children and their new siblings or step-parents can form strong bonds
●● Benefit of having two incomes compared to single-parent families.

Weaknesses of stepfamilies:
●● Adjustment can be difficult for parents and children
●● Parents can run into problems trying to discipline each other’s kids
●● May lack discipline or be inconsistent.
As is clear from the composition of this type of family, marketers need to adapt and
adjust their marketing approach if they want to target this segment.

6. Grandparent family
The final family type is the grandparent family. This type of family is becoming
more common in different communities where parents die due to illness (HIV,
COVID-19) and the children are left parentless. A grandparent family is when one
or more grandparents are raising their grandchild or grandchildren. Why does this
happen? This situation happens when the parents are not around to take care of
Copyright © 2012. Juta & Company, Limited. All rights reserved.

their kids or are incapable of properly taking care of their kids. For example, the
parents might be in jail, too young, on drugs, deceased or in many instances just
do not care.

Strengths of grandparent families:

●● Grandparents and grandchildren form a close bond
●● Keeps children from ending up in foster homes or other situations.

Weaknesses of grandparent families:

●● Grandparents may not work or have full-time jobs, may struggle with income
●● Depending on their health, it may be difficult for them to keep up with
young children or discipline them as they get older.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 247
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 247 2022/03/29 11:20 AM

Consumer Behaviour

It can be difficult for grandparents to raise their grandchildren as they are generally
ill-prepared for this and not geared for it in their twilight years. From a marketing
point of view, this offers different challenges and opportunities to marketers who
target these segments.

Conclusion
Marketers need to take cognisance of the different types of families and, based
on their selection criteria regarding their target market, resources and expertise,
design and develop marketing strategies that address the issues unique to these
family households. Each household or family has its own unique needs at different
times and stages, and marketers must focus on these needs in the different phases.
Customers may move through a number of these family cycles in their lifetime due
to, for example, getting divorced, one family member dying, or as grandparents
later in life.
The next section discusses the functions of the different households.

13.3 The functions of the household

The household as a consumer unit facilitates the socialisation of household
members, contributes to their economic well-being, provides emotional support
and shapes their lifestyles.

13.3.1 The socialisation of household members

Socialisation of family or household members can be defined as the process by
which people develop their values, motivations and habitual activity. In other
words, it is the process of absorbing a culture. When looking at the discussion of
the family structure above it is clear that each household type will have its own
process of socialisation of its members.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

The socialisation of household members – from young children to

adults – is a central function of the household.
Crucial to this process is the role of culture. Chapter 4 discussed the role that
culture plays in influencing consumer behaviour and the many studies focusing on
how young household members

learn appropriate acquisition, usage and disposal of products, services

and ideas, and recognise it as a lifelong process.
The basic values and expected consumer behaviour consistent with a particular
culture are therefore acquired through socialisation of household members.
These values could include moral and religious principles. Behavioural norms,
on the other hand, manifest in, among other things, interpersonal skills, dress

Roberts-Lombard,248M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 248 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

codes and appropriate manners and speech. The selection of suitable educational
and occupational goals is a further expression of the socialisation process of
household members.
Marketers should be sensitive to the process of socialisation of household members.
The socialisation of young children plays a large role in establishing the basis for
how they will use and experience products later on in life. Various studies have
focused on how the youth develop behavioural consumer skills. Pre-adolescents
generally acquire behavioural consumer skills and norms by observing other
household members. In this sense, these members function as role models – for
example, children acquire shopping skills when they accompany older family
members during shopping excursions. Adolescents and teenagers, on the other
hand, are more likely to look to their networks and friends for modes of suitable
consumer behaviour. Consumer-related socialisation furthermore influences other
aspects of the socialisation process. In this regard, parents often buy something as
a way to alter or influence the behaviour of other household members.

Intergenerational socialisation refers to the transfer of product or brand

loyalty, or preference, from one generation to another.
This can occur over many generations, leading to particular brands being associated
with particular families and with the generations of those families and, ultimately,
to particular cultural subgroups.

13.3.2 Economic well-being

One of the fundamental functions of a household is to provide financial

means to dependants.
As indicated in the discussion on family structure, it is clear that the strong point of
some of the households – childless family, nuclear family – is that they have more
Copyright © 2012. Juta & Company, Limited. All rights reserved.

disposable income than some of the others, which has implications for what to offer
to these households. However, the conventions through which a household delivers
economic well-being have changed noticeably. The traditional roles of the husband
as economic provider and wife as homemaker and childminder are becoming less
valid. It has become customary for married women with children in urban areas of
South Africa to be employed and for their husbands to share household tasks and
responsibilities. The roles of minors in the economic well-being of households have
also changed. Many teenage children do part-time or casual work, but they rarely
assist the household financially. In this regard, the teenage and student market
has become lucrative to marketers, with teenagers and students paying for their
own entertainment, recreation and, in some instances, contributing financially
to their own education. This changing role of minors also assists in fostering
financial independence.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 249
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 249 2022/03/29 11:20 AM

Consumer Behaviour

13.3.3 Emotional support

Another important function of households is the provision of emotional

support to household members.
Household members assist each other through providing support and encouragement
during consumer-related activities such as decision making and acquiring or
disposing of products, services and ideas.

13.4 Suitable household lifestyles

Households continuously evolve to assume lifestyles that conform to
broader societal influences such as cultural norms and habits.
Particular lifestyles furthermore require household members to behave in a way that
complements and reflects the lifestyle. Life experiences during different household
phases and fellow household members’ life and career goals and achievements
influence the relative importance placed on educational and career options, on
reading, listening and viewing different media, on consumption patterns and
on other entertainment and recreational activities. Marketers are particularly
interested in identifying and understanding different consumer-related household
lifestyle behaviours in order to market their products and services in a way that
reflects these lifestyles.

13.5 Household decision making

The major focus of consumer psychology and marketing research is on the
individual as the unit of analysis. The research findings are concerned with
describing, understanding and trying to predict how individuals acquire, use
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and dispose of products, services and ideas, and how marketing strategies can be
developed to influence this process more effectively. The area of household research
is an exception: it views the household as a decision-making unit.

Household research attempts to describe, understand and predict

how household members interact and influence one another in terms
of household buying, usage and disposal.
The attitudes and behaviour of those household members who make major
consumer-related decisions on behalf of the rest of the household are of particular
interest to marketers. Marketers constantly strive to target these household members
and consequently spend significant resources identifying and understanding this
lucrative segment.

Roberts-Lombard,250M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 250 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

There are eight distinct roles in the household decision-making process:3

1. Influencers provide information to other members about a product or service.
2. Gatekeepers control the flow of information about a product or service into the
household.
3. Deciders decide on the specific product, service or idea to acquire, consume
and dispose of.
4. Buyers acquire particular products, services and ideas in cash or in kind.
5. Creators create and transform products, services and ideas to suit the needs of
other household members.
6. Users use or consume a particular product or service.
7. Maintainers ensure continued use of certain products, services and ideas.
8. Disposers dispose of or discontinue the use of products or services.

13.5.1 Role behaviour

For a household to function as an interrelated unit, one or more
household members must carry out various tasks. Different people
may therefore carry out different tasks in the buying process.
For this reason, household decision making and buying processes are highly
complex and difficult to study. Even with the individual as the unit of analysis,
marketers find it difficult to try to understand consumer behaviour. However, with
the household as the unit of analysis, the thinking, behaviours and environments
of several people have to be taken into account, as do the interactions among them.
Apart from household member roles changing due to ageing, the roles of household
members also change in a constantly changing society. Schiffman and Kanuk
identified eight distinct roles that household members can fulfil when making
Copyright © 2012. Juta & Company, Limited. All rights reserved.

decisions that affect the household (see the previous feature in the box). Households
differ from each other with regard to these roles, with different household members
assuming different roles. A creator, for example, need not be restricted to a mother,
but could be an adolescent male in a particular situation.
Marketers need to understand and identify the consumers assuming each of these
roles in order to communicate effectively with them.

13.5.2 Husband-and-wife decision making

Many studies investigating consumer decision making have implicitly assumed
that one individual in a household, most often the wife, makes most of the
consumption choices for the household. Research has however clearly shown that
when husbands and wives are polled independently of each other, their responses
regarding independent consumer choices often vary significantly.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 251
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 251 2022/03/29 11:20 AM

Consumer Behaviour

Marketers are attentive to the relative amount of influence that a husband

and a wife have when it comes to household consumer choices.
As indicated in the discussion on role behaviour, values and norms also influence
the relative influence of household members and, specifically, husband and wife
decision making. It has been found that younger, urbanised and more educated
households make more joint consumer decisions.

13.5.3 How spouses influence the decision-making process

Different intensities of influence ascribed to spouses can be attributed to the relative
consumer involvement, employment status and perceived gender gap:
●● Involvement: Both spouses tend to participate during the information search
stage, particularly when compared to the final decision-making stage. Joint
involvement may be minimal in the case of low-involvement goods, but more
pronounced for goods that are risky, expensive, have major implications and
consequently require substantial involvement from household members.
●● Influence of employment: The increasing number of working women and
changing gender roles have affected the way in which spouses engage in
consumer-related activities.
●● Gender gap: The convergence of gender roles results in increased joint
decision making.

13.6 The household life cycle

Marketers and consumer researchers have shown much interest in the concept
of the household life cycle (HLC). The HLC stages conceptualised in the original
HLC model have, however, become less descriptive of the modern and ever-
changing household. This seems to have been caused by societal factors such as,
among other things:
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● an increase in single-parent households

●● an increase in births
●● perceived potential employment opportunities attracting young adult house
hold members to urban areas.
Nonetheless,

HLC analyses assist marketers to segment households in terms of a

series of stages during the lifespan of a household.
The HLC concept is typically operationalised by combining commonly used
demographic variables such as marital status, household size and employment
status of the household members. Household disposable income is also commonly
related to a particular stage in the household life cycle.

Roberts-Lombard,252M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 252 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

The five basic stages of traditional HLC models are:

Stage 1: Bachelorhood
Stage 2: Honeymooners
Stage 3: Parenthood
Stage 4: Post-parenthood
Stage 5: Dissolution

13.6.1 The traditional household life cycle

We now explore the five basic stages of traditional HLC models.

Stage 1: Bachelorhood
The first HLC stage consists of young single men and women who have established
households away from their parents. These men and women are mostly qualified and
employed and they tend to spend their incomes on rent, basic home furnishings,
cars, travel, entertainment, clothing and accessories. Various media channels tend
to have special interest publications and programming aimed at singles, assisting
marketers in targeting this HLC segment more effectively. The transition to the
honeymooner stage in the HLC occurs when young adults consent to live together.

Stage 2: Honeymooners
The honeymoon stage starts after consenting young adults agree to live together,
and continues until the arrival of the couple’s first dependant or child. This stage
is characterised by behaviour related to adjusting to living together, where the
combined income often allows for additional expenditure in the form of household
items required for this stage as well as additional investment and savings products.
Start-up expenses for household items typically include appliances, furniture,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

carpeting, curtaining, crockery and cutlery and many other accessories. So-
called ‘homemaker’ magazines and programmes are important sources of product
information at this stage.

Stage 3: Parenthood
The parenthood stage of the HLC is characterised by the arrival of a dependant or
child, also referred to as the ‘full nest stage’. The parenthood stage usually lasts for
approximately 20 years and, because of its long duration, this stage can be divided
into shorter phases, namely the pre-school phase, the elementary school phase, the
high school phase and the tertiary education phase. Throughout these phases, the
interrelationships between household members and the structure of the household
gradually changes. These changes also impact on the financial resources required
by the changing household structure and dynamic. Many publications and
programming in most media channels cater for the information and entertainment
needs of this HLC stage.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 253
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 253 2022/03/29 11:20 AM

Consumer Behaviour

Stage 4: Post-parenthood
The post-parenthood stage, sometimes referred to as the ‘empty-nest stage’, starts
once the last dependant has left the household. This stage can be traumatic for
some household members and liberating for others. For many, it signifies a time
for doing things they could not necessarily do in previous HLC stages. Expenditure
patterns change and caregivers often re-enter or enter the job market and pursue
or seek new interests. This stage is also often the time to relocate and move into a
smaller home.
This stage tends to be the most comfortable financially, and household members
tend to retire while they are still in good health. Television, as an important source
of information and entertainment, is viewed more often by remaining household
members.

Stage 5: Dissolution
The dissolution stage ensues with the death of a spouse. The surviving spouse tends
to follow a more economical lifestyle. This stage is also characterised by widows
and widowers seeking each other out for company, whilst others enter into more
permanent arrangements.

13.6.2 The contemporary household life cycle

The customary HLC model has lost some of its ability to represent the stages that
the modern household passes through and has thus been modified. The underlying
socio-demographic variables driving this changing HLC include increased divorce
rates and other subsequent household types, such as bachelorhood and single-
parent households.
Due to obvious differences in consumer behaviour patterns of households
collectively, and household members individually, South African marketers often
use the SAARF life-stage groups to segment consumer markets.4
Copyright © 2012. Juta & Company, Limited. All rights reserved.

These eight life-stage groups are described in Table 13.1.

Table 13.1: The eight SAARF life-stage groups

1. At-home singles (22%) Up to 34, mostly 16−24 (75,3%). Live with parents.
Not married or living together with significant other.
More male (63,4%) than female (36,6%).
2. Young independent Up to 34, mostly 25−34 (54,2%). Not living with
singles (11%) parents. Not married or living together with significant
other. No dependent children in household. More male
(69,7%) than female (30,3%).
➥

Roberts-Lombard,254M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 254 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

3. Mature singles (15%) 35+. Not married or living together with significant
other. No dependent children in household. More
female (51,2%) than male (48,8%).
4. Young couples (6%) Up to 49, mainly 35−49 (65,9%). Married or living
together with significant other. No dependent children
in household.
5. Mature couples (8%) 50+. Married or living together with significant other.
No dependent children in household.
6. Young family (16%) Married or living together with significant other.
At least one dependent child under 13 in household.
7. Single-parent household Not married or living together with significant other.
(18%) Dependent children in household. Predominantly
female in household.
8. Mature household (4%) Married or living together with significant other.
No dependent children under 13 in household. At least
one dependent child over 13 in household.

The modified HLC model is more realistic, because it recognises other types of
households than just the nuclear household, for example single-parent households.
Figure 13.1 shows the life-stage profile of an estimated 15.882 million households
in South Africa in 2016.

25%
20% 18%
15% 16%
15%
11%
10% 8%
6% 4%
5%
Copyright © 2012. Juta & Company, Limited. All rights reserved.

0%
es

ds
il y

d
es

le
gl

ol
le

ol
up
gl
in

eh
up

eh
fa
sin
ts

us
co

us
ng
en

ho
e

e
ng

ho
ur

u
nd

nt
at

at
u

e
pe

re
M

ur
de

at
in

M
le
ng

ng
u

Si
Yo

Figure 13.1 Life stages in South Africa5

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 255
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 255 2022/03/29 11:20 AM

Consumer Behaviour

Table 13.2: Life stages in South Africa

Row totals Metropolitan Small urban

areas and rural
(250 000+)
large urban
Column totals Households 15 882 897 7 426 826 8 456 071
% Column 100 100 100
At-home singles Audience 2 544 010 1 046 440 1 497 570
% Column 15.86 14.09 17.71
Young independent Audience 2 080 030 1 087 287 992 743
singles
% Column 13.21 14.64 11.74
Young couples Audience 1-088679 583 006 505 673
% Column 6.88 7.85 5.98
Young family Audience 2 448 205 1 261 818 1 186 387
% Column 15.84 16.99 14.03
Single-parent family Audience 2 627 347 945 435 1 681 912
% Column 16.21 12.73 19.89
Mature family Audience 488 142 230 232 257 910
% Column 3.17 3.1 3.05
Mature couples Audience 1 435 889 719 659 716 229
% Column 9.09 9.69 8.47
Mature singles Audience 3 170 596 1 552 949 1 617 646
Copyright © 2012. Juta & Company, Limited. All rights reserved.

% Column 19.72 19.72 19.13

Non-traditional life stages include non-family households; that is, those consisting
of a single member and of two or more unrelated members. In this regard,
Figure 13.1 reveals that approximately 41% of all households in South Africa
comprise non-family households – young independents, mature singles and
single parents – and that only 35% of all households have children dependent on
parents. Figure 13.2 illustrates the differences between urban (that is, living in
closed settlements of at least 250,000 people) and rural (that is, those living in areas
containing less than 500 people per square kilometre in South Africa).

Roberts-Lombard,256M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 256 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

25%
20%
15%
10%
5%
0%

s
ld
es

d
s

es
le
ol

ol
le

ho
gl
gl

gl
up

eh
in

se
sin

sin
co
ts

us
co

ou
en
e

e
ng

th
om

ur
nd

e
u

at
en
-h

ur
Yo
pe

M
u

ar
At

at
Yo
de

-p

M
in

le
ng
ng

Si
u
Yo

Urban Rural

Figure 13.2 Life stages in South Africa by community size 6

Figure 13.2 reflects a higher proportion of at-home singles and single-parent

households in rural communities. With many parents working in urban areas, this
has a clear impact on traditional family structures and lifestyles. Increasing gender
role blurring has led to a substantial increase in dual-income households. This tests
the assumptions about lifestyle implicit in HLC segmentation. The existence of
both traditional and non-traditional HLC stages is another example of the opinion
expressed frequently in this book, namely that

the South African marketplace is diverse to the extent that it poses a

major challenge for marketers to segment and serve.

13.7 Household expenditure patterns

Marketers frequently use household information for estimating patterns

of consumer spending on main expenditure items.
Table 13.3 shows the estimated number of households and household expenditure
in South Africa by province for 2016.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 257
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 257 2022/03/29 11:20 AM

Consumer Behaviour

Table 13.3: Household expenditure in South Africa by province (2016)7

Province Households Total expenditure Annual expenditure

(Rand) per household
(Rand)
Gauteng 4 597 693 925 500 253 319 201 297
Western Cape 1 842 177 402 746 246 625 218 625
KwaZulu-Natal 2 816 920 376 706 966 823 133 730
Eastern Cape 1 824 917 172 159 489 423 94 338
Mpumalanga 1 241 907 167 097 438 439 134 549
North West 1 168 470 141 652 970 223 121 229
Limpopo 1 616 317 140 996 987 400 87 233
Free State 921 425 117 579 657 913 127 606
Northern Cape 337 477 42 638 876 283 126 346
Grand Total 16 367 304 2 487 078 886 447 151 954

Table 13.3 clearly shows that households in some provinces are financially better
off than households in other provinces. It is evident that the average Western
Cape household spent 2.5 times more than an average household in the Limpopo
province. Gauteng, KwaZulu-Natal and the Western Cape furthermore account for
approximately two-thirds (68.55%) of total household expenditure in South Africa,
with only 56.6% of households residing in these provinces.
Analyses on household expenditure patterns can be used for calculating the market
potential for individual expenditure items such as food, clothing, footwear and
accessories, housing and electricity, transport, medical and dental, education,
insurance and retirement provision, recreation, entertainment and sport, furniture
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and household equipment, alcoholic beverages, cigarettes and tobacco, washing and
cleaning materials, personal care, communication, reading matter and stationery,
domestic workers, support of relatives, holidays or weekend breaks, income tax
and savings. These analyses can be done by demographic variable – province,
population group, language group, income group and gender – or lifestyle measure.
Marketers and other business organisations, as well as government structures, can
take cognisance of differences in expenditure patterns in various areas and compare
the results to other countries to enable them to take strategic decisions.

Roberts-Lombard,258M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 258 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

CASE STUDY: Household decision-making roles

Background
Consumer behaviourists studying household decision making view the household
as a decision-making unit consisting of household members. Household research
therefore attempts to describe, understand and predict how household members
interact and influence one another in terms of individual or household buying. For a
household to function as an interrelated unit, one or more household members must
carry out various tasks. Different members may therefore carry out different tasks
in the buying process. For this reason, household decision-making and buying
processes are highly complex and difficult to study. In an ever-changing society,
household-related roles are constantly changing. This chapter indicated eight roles
that household members can fulfil during consumption-related decisions affecting
the household, namely influencers, gatekeepers, deciders, buyers, creators, users,
maintainers and disposers.

Scenario
Sarah is a keen golfer. She spends almost all her free time at the local driving
range close to her suburban home, perfecting her golf swing. A professional female
golfer who recently conducted a golf clinic at the range made such an impression
on Sarah that she decided she would also like to be a professional golfer one day.
As she was not a member of a golf club, she pleaded with her parents, Mike and
Cathy, to help her join the local golf club.
Membership fees, even for junior golfers, are expensive, and Mike and Cathy
promised Sarah that they would consider her request carefully. Meanwhile, Sarah’s
brother Mickey, a student in residence at a university in a different city, promised to
practise and play golf with her when he came home during the upcoming vacation.
Sarah’s parents liked the idea of Sarah and Mickey spending time together – they
Copyright © 2012. Juta & Company, Limited. All rights reserved.

had not seen much brother−sister bonding since Mickey went off to university.
Finally, they consented to her request to join the golf club.

13.8 Summary
Consumer reference groups are indispensable frames of reference in the process
of household decision making. The importance of households as reference
groups for consumer attitudes and behaviours has been indicated. In this regard,
households serve many functions in society, with socialisation and the provision of
economic and emotional support among the most basic of functions. The members
of a household assume specific roles in their everyday functioning, with such roles
and associated responsibilities impacting on a myriad of buying decisions. These
household decisions are furthermore influenced by cultural norms and values
shaped by household members fulfilling different roles and purposes.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 259
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 259 2022/03/29 11:20 AM

Consumer Behaviour

Household decisions are commonly classified as husband-dominated, wife-

dominated, joint or autonomic decisions. The extent of the relative influence
exerted by different household members on household decisions depends, in
part, on the specific product, service or idea in question, as well as on cultural
influences. Classification of households by HLC stage provides valuable insights
into household consumer-related behaviour. Socio-demographic changes in
South Africa have resulted in changes in the life stages that a household may
pass through, thus necessitating a modification of the traditional model. These
non-traditional stages are becoming increasingly important to marketers, as they
provide information regarding specific market niches.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. How would you use the knowledge you have gained in this chapter in evaluating
a new promotional campaign for a large chain of gymnasiums? The campaign
is aimed at increasing how often household members visit the gymnasium.
What recommendations would you make?
2. Discuss the influence that households have on the socialisation of children
compared with the influence of television and social media.
3. Design a study investigating how households make holiday decisions. Indicate
as part of the design which household member(s) you would include and the
roles they play. How would you gain insight and assess the relative role of each
member in making holiday-related decisions? As part of your discussion, also
suggest specific questions that you could ask.
4. Which of the household life cycle stages discussed in this chapter constitute
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the most rewarding segment(s) for the following products and services?
A. McDonald’s burgers
B. Pay-as-you-go cellphone contracts
C. Life assurance policies
D. Timeshare membership
E. Long-life milk.
5. Read the case study and use the background information to identify the
character(s) in the scenario who are playing each of the following roles. (If you
feel that more than one character matches a given role, list them all.)
A. Influencer
B. Gatekeeper
C. Decider

Roberts-Lombard,260M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 260 2022/03/29 11:20 AM

Chapter 13: Household or family decision making

D. Buyer
E. Creator
F. User
G. Maintainer
H. Disposer.

Multiple-choice questions
1. Which statement is true about households in South Africa today?
A. The traditional family is no longer the dominant form of household.
B. For marketers, the term ‘family’ is synonymous with ‘household’, and
vice versa.
C. The family remains the dominant institution in providing for the welfare of
its members.
D. The family has become an indirect reference group for most children under
the age of 12.
2. Multiple consumers sharing the same living space and related by blood,
marriage or adoption can be defined as …
A. a family
B. a nuclear family
C. an extended family
D. a household.
3. Jabu and Arthur, both university students, share an apartment. This unit can be
described as …
A. a family
B. a nuclear family
Copyright © 2012. Juta & Company, Limited. All rights reserved.

C. an extended family
D. a household.
4. The primary difference between a married couple and a nuclear family is that
the nuclear family has …
A. purchased a home
B. at least one grandparent living with them
C. been married at least five years
D. at least one child.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 261
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 261 2022/03/29 11:20 AM

Consumer Behaviour

5. Jacob and Miriam have been married for four months, have no children, and
live in an apartment.
They would best be described as ...
A. a married couple
B. a nuclear family
C. a traditional family
D. a non-traditional family.
6. The household’s influence in the consumer socialisation of children tends to be
in terms of …
A. expressive attitudes and behaviour
B. basic values and behaviour
C. what is currently acceptable consumer behaviour
D. style, fashion and what is currently ‘in’ and ‘out’.
7. When marketers study the household as a basic decision-making unit for
consumer behaviour, they tend to focus on …
A. one household member as the main decision maker
B. the husband−wife decision-making pattern
C. the consumer behaviour of pre-adolescent children
D. the buying behaviour of adolescent children.
8. David is buying a computer for his family. His teenage son continually gives him
information from the internet and computer magazines about different makes of
computers.
David’s son is playing the role of …
A. gatekeeper
B. buyer
C. creator
Copyright © 2012. Juta & Company, Limited. All rights reserved.

D. influencer.
9. The traditional family life cycle would classify an older married couple with no
children living at home as being in the …
A. post-parenthood stage
B. empty nest stage
C. dissolution stage
D. full nest stage.
10. The SAARF life-stage segmentation would classify an older couple with no
children living at home as …
A. at-home singles
B. mature singles
C. mature parents
D. golden nests.

Roberts-Lombard,262M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:18:52.

Consumer Behaviour 5E.indb 262 2022/03/29 11:20 AM

Chapter
ORGANISATIONAL BUYING
14 BEHAVIOUR
Learning outcomes
After studying this chapter, you should be able to:
■■ Discuss types and characteristics of organisational customers
■■ Discuss various aspects of organisational buying behaviour
■■ Discuss the nature of the different relationships in business-to-business markets
■■ Discuss buyer−supplier interaction in a business-to-business context
■■ Discuss the implications of recent developments in organisational buying behaviour.

14.1 Introduction
In business-to-business (B2B) markets, similar to consumer marketing, understanding
the dynamics of customer buying behaviour is crucial for identifying profitable
market segments, locating buying influencers within these segments, and reaching
buyers efficiently and effectively with an offering that responds to their needs.
Note that here we are referring to organisational ‘customers’ and not ‘consumers’.
In general, organisational customers (or B2B customers) are not the final consumers
of the products they buy. Rather, they either sell the products on to another owner
in the value chain or to the final consumer, or they transform the product (an input)
in some form of the manufacturing process and then sell the result on to someone
else. In South Africa, like in most economies around the globe, there are many
such businesses that focus on selling to other businesses rather than consumers.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

For example, think about a logistics company that helps manufacturers to distribute
products to retailers. Another example may be a manufacturer that does not sell
directly to the public. It is also worth noting that customers in B2B marketing
literature are often described in various interchangeable ways. For example,
sometimes the terms ‘business customers’, ‘industrial customers’, ‘organisational
customers’, ‘business-to-business customers’, and ‘business-to-business buyers’
have the same meaning.
Likewise, we also see the interchangeable use of descriptions for products/services
that are exchanged between firms, governments and institutions (B2B markets).
Examples include industrial products, B2B products, etc. Importantly, each decision
the business marketer makes is based on organisational buyers’ probable responses.
In this chapter, we explore a conceptual model of organisational buying behaviour,
the key stages of organisational buying, the various buying situations, and the
myriad of forces that influence it.

Consumer Behaviour 5E.indb 263 2022/03/29 11:20 AM

Consumer Behaviour

14.2 Who are organisational customers?

As a rough guide, we can say that organisational customers include everyone that
is involved in the transactions of a given value chain, excluding the final consumer
of the product or service. In addition, it is also possible for a firm to have both
organisational customers and final consumers. For example, Dell computers sell
their products (for example, laptops) to the general public (consumers) but also sell
products (for example, servers) to other firms, governments and organisations.
It is not always possible to generalise across industry settings, but we can typically
assign the following characteristics to organisational customers:
●● They consist of governments, institutions (state schools, hospitals,
universities, etc) and private sector companies (commercial enterprises).
●● In general, they purchase in large volumes, or the transaction entails large
monetary values. Therefore, a single B2B purchase is typically much larger
than that of a consumer purchase.
●● Consumer markets drive the demand for industrial products. We therefore
say that, in general, the demand for industrial products is derived from the
demand for consumer products. For example, the demand for rubber is (at
least in part) derived from the demand for cars.
●● In many, if not most cases, the relationship between organisational buyers
and sellers is close and enduring. We elaborate on this later in the chapter.
●● The purchasing decision in the case of industrial products is usually subject
to many influences and usually made by more than one individual.
●● More often than not, industrial exchanges (transactions) occur between
a professional buyer and a professional seller – typically a salesperson
interacting with a purchasing specialist or manager.
In addition to understanding the organisational customers, a broad categorisation
of industrial goods may also aid our understanding of organisational buying
behaviour. Industrial goods can be classified according to three categories:
Copyright © 2012. Juta & Company, Limited. All rights reserved.

1. Entering goods because they are typically required early in the manufacturing
process and are transformed in some way. This category can further be
subdivided into raw materials (for example, iron ore, wheat) and manu
factured materials and parts (for example, steel, micro-chips).
2. Foundation goods almost exclusively refer to capital goods. This category
includes installations (for example, elevators) and accessory equipment such
as a truck lift or an office desk.
3. Facilitating goods includes supplies (for example, paper) and business services
(for example, cleaning services, security). These classifications may be useful
for analytical purposes, but they are of limited value for segmentation
purposes as they do not reflect much about the behaviour of customers.

Roberts-Lombard,264M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 264 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

14.3 The importance of organisational buying behaviour

Conceptually, there are some commonalities between consumer behaviour and
organisational behaviour in the sense that both employ the stimuli−process−
response paradigm. Stimuli as a result of marketing efforts (product, price,
distribution and promotion), together with stimuli from the macroenvironment
(economic, social, cultural, technological and political), influence the buying firm.
These influences are translated and incorporated into various strategies, which
implies a certain approach to purchasing. These, together with other organisational
forces, situational factors, group forces and individual influences, influence the
buying decision process. The result is a particular set of responses that includes
product or service choices, supplier choices, order quantities, delivery times, service
agreements, and payments. Importantly, these actions in turn influence future
micro- and market-level responses and, in some extreme cases, can even lead to
(or at least contribute to) macro-level changes in the industry. The result is a
feedback loop that reminds us of a systems approach.
Knowledge of how organisational buying decisions are made provides the business
marketer with a good foundation for building responsive marketing strategies.
Organisational buying behaviour is a process, not an isolated act or event.
Tracing the history of a procurement decision uncovers critical decision points,
and the evolving information requirements. Therefore, a good starting point is to
understand how organisations buy, thus the buying process.

14.4 The buying process1

The buying process has been depicted in many ways. Essentially, it involves
eight stages:
1. Recognise the problem. This is the point at which a customer becomes aware of
a need (problem); this can be spontaneous or the result of a formal process.
2. Define the problem. Once the customer is aware of the problem, the buying
Copyright © 2012. Juta & Company, Limited. All rights reserved.

firm needs to ensure that the problem is well understood before searching
for a solution. Depending on the situation (see later), customers may need
more or less assistance in defining the problem. In this stage, information is
of critical importance.

Both consumer behaviour and organisational behaviour employ the stimuli−process−

response paradigm.

3. Develop specifications for the solution (product or service specifications). Once

it understands the problem, the firm can start to specify what needs to be
achieved with the solution. Again, this can be highly complex (for example, a
new propulsion system for a submarine) or very simple (for example, ordering
stationery) and, again, the need for information is of critical importance.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 265
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 265 2022/03/29 11:20 AM

Consumer Behaviour

4. Search for suppliers. Assuming that the buyer cannot produce (make) its own
solution, it then starts to look for firms and/or organisations that can provide
solutions to the problem. This can be limited to a simple telephone call or an
extensive supplier search involving sophisticated approaches.
5. Obtain and analyse various proposals from suppliers. Once appropriate suppliers
have been identified, they are asked to propose their solution (products),
which allows the buyer to compare the various solutions. Importantly, this
stage involves analysis, where the buyer employs certain criteria on which
proposals are evaluated. It would therefore be beneficial to potential suppliers
to understand the criteria by which they will be judged.
6. Select specific supplier(s). The result of the analysis in Stage 5 is the selection of
firm(s) that can provide the best solution. This involves clear and professional
communication and often lays the foundation for a new business relationship.
7. Select order routines. During this stage, the parties agree on how the order
should be executed and what the responsibilities are of each party. Critical
adaptations (such as customisation) by either buyer or seller will be confirmed
during this stage.
8. Review performance. This stage is actually a continuous process in itself.
The seller should by now contribute to the ability of the buyer to create
value for its clients, and therefore the seller should expect to be evaluated
on an ongoing basis. If the buyer is no longer satisfied with the supplier, a
procedure for corrective measures, or termination of the relationship, should
be activated.

There are eight steps in the buying process:

1. Recognise the problem.
2. Define the problem.
3. Develop specifications.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

4. Search for suppliers.

5. Obtain and analyse various proposals from suppliers.
6. Select specific supplier.
7. Select order routines.
8. Review performance.

It is important to keep in mind that the buying process varies between firms, and
each firm often adopts its own approach. Some authors, such as Van Der Merwe
(see the feature in the box that follows), prefer to use the customer activity cycle to
complement this process.2 Hence, the process described above reflects what can be
regarded as typical, and in practice one should expect to see some variation on it.

Roberts-Lombard,266M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 266 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

Van der Merwe introduced the customer activity cycle (CAC) as a complementary
methodology to the organisational buying process.3 Since then, she has continued using
this tool to assist corporations in moving to customer logic. The methodology assumes
that the key to providing ‘added value’ for customers lies in what customers do, rather than
just who they are. This translates into creating opportunities for customer ‘ownership’ of
purchasing processes.

14.5 Buying situations

We noted earlier that it is useful for the business marketer to consider the various
buying situations in which the buying firm may find itself. In practice, organisational
buying behaviour depends on the nature of the buying situation. There are three
basic buying situations: straight rebuy, modified rebuy and new task.

14.5.1 Straight rebuy

The majority of organisational purchases are straight rebuys. This is where

the product has been bought before, the requirements are the same
and there is little need to evaluate alternative offerings.
The buying process is optimised because the purchases happen frequently, using
established buying routines. For example, when a manufacturer purchases roller
bearings for the production of motorcycles, the manufacturer probably has a
long-term contract with a supplier. To increase efficiency, the manufacturer of
roller bearings may use the internet to link with the motorcycle manufacturer’s
production facilities so that bearings can be delivered just in time. Another example
is when purchasing firms select a vendor from a list of pre-approved suppliers. In
straight rebuys, the selection criteria are clear, and there is a strong disposition
Copyright © 2012. Juta & Company, Limited. All rights reserved.

to do business with specific suppliers. Straight rebuys usually involve standard

products that are bought frequently.

14.5.2 Modified rebuy

Situations involving repeat purchases in which the customer deviates
in some way from previous purchase decisions to satisfy the same
need are considered modified rebuys.
Various factors can trigger this deviation, but the principal cause is normally the
company’s dissatisfaction with its existing supplier. Such repurchase situations can
be either simple or complex.
A simple modified rebuy involves the purchase of a product and involvement with a
supply market with which the customer is already familiar, so information search
can be quite limited. Previous experience and product sourcing also mean that the

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 267
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 267 2022/03/29 11:20 AM

Consumer Behaviour

purchase lends itself to the use of standard buying procedures. The product may
be of some strategic importance to the buying organisation, with only a limited
set of alternatives open to the company. This results in the sourcing of the product
featuring as part of the firm’s long-term planning of supply needs and management
of relationships with vendors.
A complex modified rebuy is characterised by purchase situations in which the
customer is faced with little uncertainty and a wide choice of possible suppliers,
which enhances the negotiating position of the buying organisation. This type of
purchase situation is the one most likely to exhibit all stages of the decision-making
process. A key feature of this is the search for large amounts of information, the
use of sophisticated analysis techniques to evaluate proposals and the adherence
to established purchase procedures. A significant proportion of complex modified
rebuys involves the purchase of products that originate from previously negotiated
contracts. The clarity of the product specification and the choice set of possible
suppliers mean that the buying organisation can readily evaluate costs and prices
on a repeat basis. The clarity of the decision is arguably suited to competitive bids
and therefore offers potential scope for the use of online auctions.

14.5.3 New task

This type of buying situation comes about when the task is perceived as being
entirely new. Past experience is therefore no guide, and present suppliers may not
be able to help either. Thus, the buyer is faced with a complex decision-making
problem. We can distinguish between judgemental and strategic new task situations.

Judgemental new-task situations are those in which the buyer must

deal with the technical complexities of the product, complex evaluation
of alternatives, and negotiating with new suppliers.
Strategic new-task situations are those in which the final decision is of strategic
Copyright © 2012. Juta & Company, Limited. All rights reserved.

importance to the firm, for example an insurance company in the market for new
record-keeping software. In these circumstances, long-range planning at director level
drives the buying process, and the relationship with suppliers is likely to be both
long term and close. From the viewpoint of the business marketer, the main chance
of winning new customers will come in the new-task situation. The risks for buyers
involved in switching suppliers are often too great unless there is a very real and clear
advantage in doing so. Such an advantage is likely to be difficult to prove in practice.
In the new-task situation, potential suppliers may well find themselves screened out
early in the process, and find it almost impossible to be reconsidered later.

14.6 Integrating the buying process with buying situations

Organisational buying can be seen as a series of decisions, each of which has to
be executed in a given buying situation. Hence, the industrial buying process
can be mapped against a grid of buying situations, as shown in Table 14.1.

Roberts-Lombard,268M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 268 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

The most complex buying situations occur in the upper left portion of the framework
and involve the largest number of decision makers and buying influences. This
is because new tasks not only require the greatest amount of effort in seeking
information and formulating appropriate solutions but will also require the greatest
involvement of individuals at all levels of the organisation, each with their own
agenda. Such an analysis may assist the B2B marketer not only to their customers
better but also to ensure that value is added.

Table 14.1 The buying-grid framework

Buying situations

New task Modified rebuy Straight rebuy

1. Recognise the problem.

2. Define the problem.

3. Develop specifications for the

product or service.

4. Search for suppliers.

5. Obtain and analyse various

proposals from suppliers.

6. Select specific supplier(s).

7. Select order routines.

8. Review performance.

14.7 The buying centre

There are very few cases where industrial purchasing decisions are made by only
one person. Even in smaller businesses, it is likely that several people would expect
to have some influence or input into purchase decisions. Because of this, the
decision-making process often becomes formalised, with specific areas of interest
being expressed by members of the decision-making unit (DMU), and with roles
and responsibilities being shared. This group, also referred to as the buying centre,
varies from one firm to the next. Individuals may only participate for a brief time,
or be part of the group from conception to conclusion.
The DMU is thought to contain the following categories of members:4
●● Initiators are the individuals who first recognise the problem. In other words,
they are the people who first realise that the firm has a need for a specific
product or service.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 269
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 269 2022/03/29 11:20 AM

Consumer Behaviour

●● The gatekeepers control the flow of knowledge, either by being proactive in

collecting information or by filtering it. The gatekeepers usually serve as a
type of buffer between the buyers and salespeople. They are tasked with
obtaining the information from trade shows and other sources.
●● The buyers are the ones making the actual purchase based on information
gathered. They must find the correct suppliers and do the negotiations. In
general, they just need to execute the purchase decision based on their brief,
and will have little room for negotiation.
●● The deciders are the people who make the final decisions. They may be senior
managers or specialists. They may never meet any representatives of supplying
companies. The deciders would generally count on the information gathered
by others for their decision making.
●● The users are the people who will be using the products that are supplied. They
may even be the initiators. These people can be anybody in the organisation,
from the production manager to an engineer or the maintenance department,
who may need the products. As they are usually deemed to be the ones who
know what the company’s needs are in terms of the purchase, their opinion
may be sought as well.
●● The influencers are trusted advisers, but from the supplying company’s
viewpoint, they are extremely difficult to identify. Influencers may be
employed by purchasing firms (for example, engineers, information systems
managers or research managers) or they may be consultants (for example,
architects or sales consultants). Influencers may even be a decider’s golf
partner, old school friend or teenage son!

●● Initiators are individuals who first realise that the firm has a need for a specific product
or service.
●● Gatekeepers are the ones that gather all relevant information or control the access of
salespeople, by filtering the information they gather.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Buyers have the responsibility to find suppliers for the relevant products and to negotiate
the deal.
●● Deciders make the final decisions and may be senior managers or specialists.
●● Users will be using the products that are supplied.
●● Influencers are trusted advisors, but from the company’s point of view they are extremely
difficult to identify.

These categories are not mutually exclusive. A user may also be an influencer, or a
gatekeeper may also be an initiator. In fact, the members of the decision-making
unit are affected both by rational and emotional motivations. Salespeople are aware
that buyers are affected by their liking for or dislike of the suppliers’ representatives,
and that buyers will often be working to their own agendas. For example, a buyer
may be seeking a promotion, may feel threatened in terms of job security, or may be
conducting a vendetta against a colleague. Any of these influences may affect the

Roberts-Lombard,270M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 270 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

buyer’s behaviour, but all of them would be difficult or impossible for a supplier’s
salesperson to identify correctly and act upon.
In general, members of a DMU tend to be more risk-averse than consumers.
This is because, in the buying centre, a serious purchasing mistake can result in
major negative consequences for the business. The professional reputation of the
industrial buyer may be compromised by purchasing errors, and this may have
professional consequences. Determining the relative power of each member of the
buying centre for each purchasing situation is a difficult task. Ronchetto, Hutt and
Reingen identify the characteristics of individuals who may be most influential in
a decision-making unit. These individuals are:5
●● important in the corporate and departmental hierarchy – if the buying
centre consists mostly of senior managers, it suggests that the firm may have
a very strategic view of the purchasing function and purchasing is considered
very important.
●● close to the organisational boundary – if the individuals in the buying centre
have roles where they often interact with other suppliers or buyers, it may
have implications for how information flows and these individuals may be
well informed about transactions, price levels and so on in the industry.
●● central to the workflow – if the individuals in the buying centre understand
the workflow of the firm very well, it may have implications for how they
buy. For example, they may demand just-in-time delivery.
●● active in cross-departmental communications – when buying centre
managers are very active in sharing information with other managers in the
firm, sellers may want to think carefully about who the people that indirectly
influence buying decisions are.
●● directly linked to senior management – if the buying centre is close (meaning
not just physically, but also organisationally) to senior management,
sellers may assume that the customer will approach purchasing decisions
with great care.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Although often very hard to know in advance, if the business marketer is aware of
these characteristics, this knowledge may be employed to enhance the marketing
effort considerably.

14.8 Forces that shape organisational buying

Organisational buying, similar to other aspects of the firm, is influenced by many
factors, with significant variation between firms.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 271
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 271 2022/03/29 11:20 AM

Consumer Behaviour

Established in 1944 and attached to the University of Stellenbosch, the Bureau for Econo
mic Research (BER) focuses primarily on the South African macroeconomy and selected
economic sectors. For over 55 years, it has been monitoring economic trends and identifying
and analysing local and international forces that affect South African business. With this
invaluable perspective, the BER can assist both private and public sector clients in making
difficult decisions on economic issues. The BER’s respected economic analysis and
forecasting services are used by a wide range of clients, ranging from small to medium up
to very large private companies, as well as public sector bodies and NGOs. Financial and
investment companies, local and overseas banking groups, multilateral organisations and
academic bodies can all draw on the impartial economic information available from the BER.
For more information on the Bureau for Economic Research (BER), see http://www.ber.ac.za.

14.8.1 Environmental forces

Environmental forces, in this context, mostly concern issues of an economic
nature. The macroeconomic environment is concerned with aspects such as the
level of demand in the economy, the taxation regime, trade barriers, and so forth.
These conditions affect buyers’ ability to buy goods as well as their need to buy
raw materials. On a more subtle level, the macroeconomic climate affects buyers’
confidence in the same way as it affects consumer confidence. For this reason,
the Bureau for Economic Research (see the previous feature in the box) in South
Africa annually publishes the so-called Purchasing Managers Index (PMI), which
assists businesses in tracking economic trends. In a global context, the fact that
countries enter and leave recessions or periods of accelerated economic growth at
different times will affect the timing of marketing efforts on the part of vendors.
At the microeconomic level, firms experiencing a boom in business will have a
greater ability to pay for goods and a greater level of confidence. Business buyers
are also affected by technological, political and competitive developments in the
environment. Moreover, culture and customs can strongly influence a business
buyer’s reactions to the marketer’s behaviour and strategies, especially in the
international marketing environment.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

A recent example of the impact of environmental forces on purchasing behaviour

was demonstrated when the COVID-19 pandemic interrupted the supply of
microchips during 2020 and 2021. The global shortage of microchips has caused
massive problems for the delivery of everything from new cars to microwave ovens.

14.8.2 Organisational forces 6

Organisational forces refer to the internal environment of the firm. Each buying
firm has its own objectives, policies, procedures, structure and systems. The business
marketer must understand these factors well. Questions that may need answering
in this context include the following:
●● How many people are involved in the buying decision?
●● Who are they?
●● What are their evaluative criteria?
●● What are the firm’s policies and limits on its buyers?

Roberts-Lombard,272M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 272 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

14.8.3 Group forces

Group forces refer to the fact that the buying centre usually includes
many participants who influence each other.
Hence, interpersonal factors also influence the buying process. It is often difficult
to assess such interpersonal factors and group dynamics. Buying centre participants
do not wear tags that label them as ‘key decision maker’ or ‘not influential’. Nor do
buying centre participants with the highest rank always have the most influence.
Participants may influence the buying decision because they control rewards and
penalties, are well-liked, have special expertise, or have a special relationship with
other important participants. Interpersonal factors are often very subtle.

14.8.4 Individual forces

Finally, individual forces underline the fact that purchasing is also done by
individuals. Each participant in the business buying decision process contributes
their personal motives, perceptions and preferences. These individual factors are
affected by personal characteristics such as age, income, education, professional
identification, personality and attitudes toward risk. Also, buyers have different
buying styles. Some may be technical types who make in-depth analyses of
competitive proposals before choosing a supplier. Other buyers may be intuitive
negotiators who are skilful at pitting the sellers against one another for the best
deal. Together, these forces point to a key issue in B2B marketing: managing
complex B2B relationships.

14.9 Relationships in B2B markets 7

Firms increasingly realise the importance of strong business relationships.
The strength of these ties is a requirement to enable them to operate effectively in
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the highly interconnected B2B market. In this space, firms can only be successful if
they understand the importance of developing inter-firm relationships.
Managing a multiplicity of relationships with many buyers and sellers
simultaneously requires certain competencies and capabilities,8,9,10,11 and may be
driven and influenced by a plethora of relational factors.12,13,14,15,16
During the 1980s, a study of almost 900 buyer−seller relationships across five
European countries17 was initiated to establish if current theories of buying and
selling behaviour adequately described observed behaviour. Four key elements
emerged from this early inductive research:18,19,20
1. Buyers are heterogeneous and individually significant to their suppliers.
2. Buyers and sellers interact to develop an offering, which may be complex and
highly adapted.
3. Transactions are not isolated events but episodes embedded in a relationship
where previous experiences and expectations have a significant impact.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 273
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 273 2022/03/29 11:20 AM

Consumer Behaviour

4. Analysis of the selling and purchasing processes independently of each other

provides an inadequate explanation of what happens between buyers and
sellers, so the unit of analysis should be the relationship.

For marketers, these findings implied that:

●● relationships are of critical importance in B2B marketing
●● each relationship comes with its own challenges, so it is important to under
stand how the interaction and social exchanges between business partners
shape relationships
●● the B2B market can be described as networks of interconnected actors (firms
and individuals), activities and resources.

Relationship marketing is focused on those activities that deal with the

forging, growing and maintaining of interactions between stakeholders.
Looking after these relationships has become a strategic priority for many organi
sations for the following reasons:
●● A customer that is loyal tends to stay with the company, and is therefore
more profitable, compared to customers that are price sensitive.
●● An organisation that builds up strong relationships with customers
secures important and durable advantages that are hard for competitors to
understand, copy or displace.

Accordingly, it is useful to understand the type of buyer−seller relationships that

exist between firms, and the social constructs that are the building blocks of these
relationships.

14.9.1 Types of B2B relationship

Relationships are based on mutually beneficial exchanges where each party gives
Copyright © 2012. Juta & Company, Limited. All rights reserved.

something in return for a payoff of greater value. An exchange that is purely

transactional in nature deals with the exchange of products for market-related
prices, while collaborative relationships deal with, for example, the open sharing of
information. This refers to a close relationship compared to the more transactional
relationship. Transactional exchanges centre on the timely exchange of basic
products for competitive market prices.
Moving across the continuum, relationships become closer or more collaborative.
The open exchange of information is a characteristic of collaborative (close)
relationships as opposed to transactional (distant) exchanges. Likewise, operational
linkages reflect how the systems, procedures and routines of the buying and selling
firms are connected to facilitate operations. These relationship connectors are a
feature of a collaborative relationship. According to Anderson et al,21 collaborative
exchanges involve a process in which a customer and supplier firm form strong and
extensive social, economic, service and technical ties over time, with the intent
of lowering total cost and/or increasing value, thereby achieving mutual benefit.

Roberts-Lombard,274M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 274 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

In short, buyer−seller relationships can vary from highly collaborative to highly

transactional. Business marketers need to be prepared to deal with relationships
across this spectrum.
In addition, and central to managing customer relationships, is the notion of
customer retention. In order to effect repeat purchases, the firm needs to maintain a
continual dialogue with its customers across all contact and access points (multiple
levels) with personalised treatment of the most valuable customers.22,23,24
Customer relationship management (CRM) has suffered significantly during the late
1990s and the early part of the new millennium; marketers and firms, in general,
allowed CRM strategy to be equated with certain computer systems (software)
designed to deal with the vast amount of data that often accompanies CRM
strategy. There is no doubt that modern technology can assist managers to manage
relationships better, and the problem is not the technology itself, but rather where
systems are equated to strategy that the problems start to occur. Moreover, B2B
firms should pay attention to the following CRM priorities:
●● Acquire the right customers. Identify the most valuable customers, and calculate
the ‘share of wallet’ for each customer.
●● Craft the right value proposition. Determine what products or services customers
need now and in the future, assess the competing products or services, and
develop new solutions to customer problems.
●● Institute best processes. Determine the best ways to deliver value to customers
and establish what capabilities need to be developed to achieve this objective.
Also, make the required investments in developing these capabilities.
●● Motivate employees. Establish what employees need to deliver customer value
and invest in their development.
●● Learn to retain customers. Understand why customers defect and how to
win them back, and establish ways to protect against competitors that lure
customers away.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 275
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 275 2022/03/29 11:20 AM

Consumer Behaviour

Transactional Value-added Collaborative

exchanges exchanges exchanges

Anonymous transactions/ Complete collaboration and

automated purchasing integration of supplier with
customer or channel partner
Availability of alternatives Many Few
Supply market dynamism Stable Volatile
Importance of purchase Low High
Complexity of purchase Low High
Information exchange Low High
Operational linkages Limited Extensive

Figure 14.1: The relationship spectrum25

The social exchange theory, also called the communication theory of social exchange,
suggests that human beings make social decisions based on perceived costs and benefits.
This hypothesis asserts that people evaluate all social relationships to determine the benefits
they will obtain from them. It also suggests that someone will typically leave a relationship
if they perceive that its effort, or cost, outweighs any perceived advantages. This premise
of social psychology is rooted in economics, rational choice theory and structuralism. The
American sociologist Collin Benjamin Hoekstra is usually credited with the consolidation of
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the foundations of social exchange theory. Homans’s article entitled ‘Social behaviour as
exchange’26 is viewed as the seminal work on this theory. Works by Richard Emerson, Peter
M. Blau, Peter Ekeh and Karen Cook are also important and they often reference Homans,
as do many other articles and books on the subject.

14.9.2 The social dimensions of relationships

Social exchange theory (see the previous feature in the box) contributes to our
understanding of business relationships27 by showing that factors other than purely
economic considerations affect our business relationships. For example, factors
such as trust and commitment 28 were shown to moderate the impact of power
in relationships.
Primarily, this demonstrates that business is not only done in the economic
domain, but also in the social domain. In particular, business relationships are
social constructs, and parties to the exchange are embedded within a wider

Roberts-Lombard,276M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 276 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

social structure.29 A seminal contribution in this regard was made in 1994 when
Morgan and Hunt proposed a ‘commitment−trust theory of relationship marketing’.
This research not only confirmed the importance of trust and commitment in
relationships, but also indicated how social factors mediate the effect of other
factors – such as relational cost and benefits, shared values, communication, and
opportunistic behaviour – on outcomes such as the propensity to remain in a business
relationship, conflict management, and cooperation in the relationship. Since the
publication of this work, many authors have contributed to our understanding
of how social factors influence business relationships. In particular, much of the
research focused on an attempt to understand the impact of social factors on how
well relationships perform.

Relationships are established with a view to long-term orientation,

through which there can be growth and increased profitability.
Relationships in the B2B environment are heavily reliant on information
exchange.30 Over time, the aim of the partners in the relationship is gradually to
become a cohesive working unit, which in turn will constructively affect the entire
relationship’s performance.
According to Lages et al,31 five dimensions contribute towards the accomplishment
of a fully functional relationship, namely:
1. relationship policies and practices
2. relationship commitment
3. trust
4. mutual co-operation
5. relationship satisfaction.

In their research, Lages et al32 demonstrated that these five dimensions are positively
correlated with a buyer’s intention to repeat purchases.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Relationship policies and practices

It is important to adopt policies and procedures that draw on each partner’s
strengths. It is beneficial to the parties involved in a relationship, specifically the
buyer and supplier, to have a clear understanding of the relationship policies and
practices that have been put in place. If the rules are clear and the regulations
known, there is stronger motivation from both parties to behave in a way that is
beneficial to the relationship as a whole.

Relationship commitment
Commitment can effectively differentiate successful relationships from un
successful ones.33 Anderson and Weitz34 define

relationship commitment as ‘the desire to develop a stable relationship,

a willingness to make short-term sacrifices to maintain the relationship
and the confidence to maintain the stability of the relationship’.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 277
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 277 2022/03/29 11:20 AM

Consumer Behaviour

This definition maps out all the requirements for full commitment to the develop
ment and success of a relationship. If both parties perform on their side, the ability
to obtain and utilise the resources of each party becomes much more attainable.

Trust
Trust exists when one party has confidence in an exchange partner’s honesty,
reliability and integrity.35 Trust develops over time and is key to enjoying the long-
term benefits of a stable relationship between buyers and suppliers.36 Without trust,
there cannot be a functional relationship. It is the foundation for the development
of any partnership or relationship. In a relationship that lacks trust, neither party
will be willing to exchange valuable information, which will ultimately hinder any
chance of the relationship growing.

Mutual co-operation
Every relationship requires common understanding and mutual support to perform
optimally. Only then can each partner’s resources be utilised in full.37 When parties
work together to achieve their predetermined goals and objectives, and invest equal
effort in all aspects of the relationship, the possibilities of success are endless.

Relationship satisfaction
Satisfaction is based on the notion that relational success is determined by how well
the relationship achieves the expected performance levels from the predetermined
set of goals and objectives of both parties. Roberts et al38 refer to relationship
satisfaction as the ‘cognitive and affective evaluation based on personal experience
across all episodes within the relationship’. It therefore taps into the emotional state
of a person through her or his experience of the relationship. These feelings will
clearly display whether or not the relationship, until that point, has been successful
enough for the parties to remain together to perform future business transactions.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Importantly, satisfaction is strongly linked to loyalty, but is not equal to loyalty. It

is a determinant of relationship quality and the primary goal of B2B relationships.
To optimise the outcomes of B2B relationships, firms need to manage the deter
minants of relationship performance. This should be an active effort. Relationships,
as we know all too well, require work. The study of business relationships has
also led us to probe our understanding of the interaction that takes place in
B2B markets on the one hand, and our understanding of the interconnectedness
(networks) of business relationships on the other. These ideas are emerging in
theories of B2B marketing and it is therefore appropriate to pay specific attention
.
to them.

14.9.3 Buyer−supplier interaction in a B2B context

In the B2B market, it is general practice that the business customers are active and
very involved in the process, and that it is not only the buyer or seller that is driving
the process. Over time, the buyer and seller can be very involved. Both parties

Roberts-Lombard,278M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 278 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

tend to understand that their relationship will influence both of their economic
well-being.39 This means that the parties often work together. In developing our
understanding of this interactivity, it is useful to recognise that both sellers and
buyers are faced by uncertainties, but they also have abilities that can help them to
overcome these uncertainties.

The uncertainties that buyers face include:

●● need uncertainty
●● market uncertainty
●● transactional uncertainty.

Matching the uncertainties and abilities of both parties

Solving each other’s problems is the key to success in business markets, and
value is created in the process of solving these problems. A business buyer faces
particular kinds of uncertainties that may stem from the need itself, changes in
the marketplace, or the transaction associated with meeting the need. As far back
as 1976, Håkanson40 and his research colleagues noted that successful business
marketing involves cultivating the ability to reduce these uncertainties.
The uncertainties that customers face include the following:
●● Need uncertainty is mostly experienced in new-buy situations and ties in with
the question ‘How much must be bought?’ Lack of information or knowledge
plays a large role in this case. Furthermore, if the decision to be taken is of
high value or importance, the uncertainty will also rise.
●● Market uncertainty relates to having many options to choose from and a
range of potential suppliers. The difficulty of this choice will depend on
the differences and similarities between potential suppliers. Knowledge
can reduce this problem, but at a price, namely that more time is needed to
Copyright © 2012. Juta & Company, Limited. All rights reserved.

evaluate the different suppliers before purchasing.

●● Transaction uncertainty is the degree of exposure that the buyer is confronted
with once a transaction has been agreed upon. In this case, the customer’s
uncertainty comes from being worried that the product was damaged in
transportation, that the delivery is late, and so forth.

The role of supplier abilities in reducing customer uncertainties

Much of the uncertainty experienced by buyers can be reduced by knowledgeable
suppliers. Suppliers can assist buyers in finding the most suitable solution to their
needs or problems. If a supplier can demonstrate a superior knowledge of the need,
then they can assist in addressing the customer’s uncertainties. Also, a supplier
that can assist the customer places itself in a better position to form long-term
relationships and garner business.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 279
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 279 2022/03/29 11:20 AM

Consumer Behaviour

The role of customer abilities in reducing supplier uncertainties

As is the case in consumer marketing, the task of the business marketer is to
understand the uncertainties the customer may have, and to what extent they
can alleviate these uncertainties by means of products, services or knowledge and
advice. This, however, does not mean that the uncertainties of the supplier in such
a case are addressed. Ford and McDowell41 indicate that suppliers must plan for
uncertainties that revolve around the capacity that they must plan for (capacity
uncertainty) and the sorts of applications that the market will demand (application
uncertainty). Customers can contribute their demand abilities or transfer skills
to resolve the uncertainties faced by suppliers. For example, Woolworths has the
ability to understand the needs of its customers and transfer that information to its
suppliers. The suppliers can then produce products that satisfy both Woolworths
and its customers. The basic task then for the business marketer (in conjunction with
the business purchaser) is to have an understanding of each party’s uncertainties,
and to what extent each can solve these uncertainties by means of their own value-
added activities. In order to achieve this, not only must there be an understanding
of organisational buying behaviour of the customer, but a relationship.
The relationship constitutes the context within which value creation takes place.

14.10 The interaction approach

Relationships do not just happen; they result from a series of actions and reactions
attributed to the different parties. This view is called the interaction model,42 and
it is an attempt to capture the very complex nature of the relationships that exist
in business markets. Exchange episodes between buyers and sellers take place in all
businesses. We can view these exchanges as a series of interactions that, over time,
form the building blocks of the business relationship. Therefore, the relationship
affects, and is affected by, the individual episodes (interactions), which may be of
several types: product, service, financial, informational and/or social:
Products or services are usually the core around which the relationship
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●●

develops. Therefore, the nature of the product or service offering will set the
tone or influence the interaction between two companies.
●● The monetary value of the transaction will also impact on the interaction.
Financial exchange can establish the importance of the relationship as well as
the level of interaction that can be expected. The higher the monetary value,
the higher the level of interaction that can be expected.
●● It is not always products, services and money that are involved; information
can also be exchanged in the relationship. The type and content value to
the parties – as well as aspects such as formal structures, informal exchanges
and sensitivity – will impact on the nature of the relationship between
the parties.

Roberts-Lombard,280M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 280 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

●● Finally, social episodes play an important part in maintaining a relationship.

Social contact between the parties can lead to a bond being formed between
them that can result in strong relationships and the establishment of trust
between the parties – which is only possible through personal interaction.

It is worth noting that the interaction model is not without criticism. However,
when it comes to drawing from the model to help with the management of B2B
relationships, there are several important issues to remember:43
●● Relationships are two-way.
●● Relationships in general are complex.
●● Relationships have a history.

14.11 Implications of recent developments in organisational

buying
It is probably fair to say that we now live in the age of the customer. This means
that many companies, big and small, are constantly attempting to satisfy the
ever-changing needs of customers, and offer better value than their competitors.
It is therefore not surprising that many firms have undergone customer-focused
transformations. It will also be reasonable to say that customers themselves have
changed. Today B2B customers are highly mobile and connected to sources of
instant information. Making product comparisons and reviewing products prior to
purchasing are much easier and much more common, and customers increasingly
buy online. These changes are not necessarily limited to B2B customers. We know
that the same can be said about consumer markets. Thus, B2B customers are
subjected to similar changes that affect business-to-consumer (B2C) customers.
Therefore, many research and advisory firms agree that B2B marketers should be
aware of the following trends:
●● Customer insight is key. Successful firms spend considerable resources to gain
Copyright © 2012. Juta & Company, Limited. All rights reserved.

a better understanding of their customers. Such a deep customer insight is

only useful when shared widely in the organisation. This means that the
insight needs to be available at the point of interaction between the firm and
its customers. Customer insights that are only accessible to a select few in the
higher echelons of the organisation and largely centrally controlled are of
limited use. In addition, modern marketers should consider the potential of
artificial intelligence as customers and competitors alike are advancing new
technologies that fuel the application possibilities of such intelligence.
●● Customer experience is very important. In this context, it is considered
particularly important to establish the optimal alignment between online
and offline customer experiences. Even more important is that the customer
experience needs to be consistent across various distribution channels.
Importantly, modern digital interaction must be delivered with as much
efficiency, transparency, consistency, seamlessness and humanity as a face-
to-face interaction.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 281
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 281 2022/03/29 11:20 AM

Consumer Behaviour

●● Multichannel marketing must expect multichannel purchasing. Companies

should consider the purchasing behaviour in conventional/traditional and
new channels while attempting to offer a consistent value proposition across
these channels. It makes little sense to offer your product in a very appealing
and meaningful way on a website if you are unable to service customers who
walk through the front door. More importantly, many consultants emphasise
the importance of having a personal approach across multiple channels.
Likewise, it does not make sense to offer a digital purchasing experience if
the customer has no personal interaction with an employee, and feels like
they are interacting with a system.
●● High-quality content can make a difference. In this digital age, customers
expect to find accurate, interesting and useful content across multiple
channels. This content, especially in manufacturing types of industries, is
not merely an accurate list of product specifications. Rather, it has to do
with the narrative that allows the customer to understand how the product
or service may benefit their business and increase their competitiveness. For
example, a manufacturer of earthmoving equipment may want to provide
content (videos) on good practices pertaining, for example, to the building of
a new road or a bridge. This can be done using a series of videos that are not
necessarily intended to have the brand in the foreground, but rather seek to
educate and inform customers about solutions that are available. Naturally,
the solutions must lead the customer to the brand in question. Therefore, it
is important to develop customer-relevant content.

14.12 Putting theory and practice together

It would be naive to think that organisational buying always happens in the
step-stage linear process that is offered in this chapter. Rather we know that often it
is not the case and especially we know that these processes evolve over time as they
are subjected to the various forces – also discussed earlier. This is especially true
for young firms where policies and procedures are still being formalised and best
Copyright © 2012. Juta & Company, Limited. All rights reserved.

practices are being discovered on a continuous basis. Thus, to view organisational

buying from a purely rational perspective has its limitations because the actions
of managers (decision makers) are also influenced by irrational behaviours and
unexpected circumstances.
Therefore, as the organisation’s buying behaviour matures, managers often need to
find their own way or ‘muddle through’ many problems to arrive at a satisfactory
outcome. It is this notion of unplanned muddling through that Makkonen,
Olkkonen and Halinen44 had in mind when they tried to describe organisational
buying behaviour in practice. These authors argued that organisational buying
takes place within the framework of relatively permanent structural elements
relating to the organisational level, the industry level and the macroenvironment.
In each one of these levels, it is about the shared norms, values, beliefs, policies
and prevailing wisdom that resides in the structure. Marketers should also consider
the salient situational events relating to the same levels (the organisational level,
the industry level and the macroenvironment). Between these elements, buyers

Roberts-Lombard,282M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 282 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

and suppliers interact based on their own bounded rationality. This means that
they interact based on their perception of the structural elements and situational
events. In essence, this means that buyers and sellers both arrive at the interaction
with certain knowns and certain unknowns, and the objective on both sides is to
minimise the unknowns and to maximise the knowns.

CASE STUDY: Komatsu

Consider the following article by Nelendhre Moodley published on the website of
Business Media Mags and answer the questions following it.

Direct To The Customer: Komatsu’s service model delivers

Equipment manufacturer Komatsu’s direct service model – the building block for
its underground mining equipment strategy – has proved so successful that its use
is applied wherever possible in the company, says director for sales and services
Croydon Walters-Gerout. ‘Our Komatsu Underground Soft Rock (formally known
as Joy Global) strategy is focused around three key areas: innovative products,
exceptional service and exceeding expectations,’ he says. ‘With the slowdown in
demand from the commodities sector, following the hard lockdowns of COVID-19,
this focus played a crucial role in helping us meet our targets while assisting
customers to increase productivity and improve efficiencies by providing them with
speedy, predictable and agile interactions based on our expertise.’
The service model is underpinned by customers having direct access to the
original equipment manufacturer’s (OEM) entire organisation from factory through
to engineering, OEM-trained service technicians and customer training. ‘Direct
service means that we have a highly skilled team embedded on the customer site
that can get the experts involved whenever there is a need, and quickly. Generally,
the focus is on being proactive in planning and preventing unplanned downtimes.
Where there are agents and other third parties involved, the customer has to deal
Copyright © 2012. Juta & Company, Limited. All rights reserved.

with them, and if the third party needs OEM input or response it will cause a huge
delay. Working through third parties also increases the risk of miscommunication,
where some information is lost during the communication cycle.’
Access to expertise is important for a customer – especially one who is operating
in the highly capital-intensive underground mining environment where unplanned
downtime can lead to the loss of thousands of rand by the minute. ‘Sometimes the
conditions require design improvements, and the sooner the OEM understands
the requirements and is able to make the required design change, the sooner
production is able to resume. We have found that mining customers prefer direct
contact as often as possible as it reduces time on improvements, downtime and
need identification. More time is directly linked to increased production which
translates to higher profitability,’ says Walters-Gerout.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 283
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 283 2022/03/29 11:20 AM

Consumer Behaviour

Advances in digitalisation are also proving to be a boon by assisting equipment

manufacturers to deliver on improved turnaround times, especially related to
equipment condition assessments. ‘The use of tablets on customer sites has
dramatically increased in 2021. Previously, a full machine condition assessment
coupled with a report would take about four days, but with the use of tablets for
inspections, linked to data bases and the running of life expectancy algorithms, we
are able to produce a report within an hour after the inspection is done. This report
is directly linked to the sales team, who can within an hour produce a quote for a
customer for the parts they need. Thus the four-day turnaround has been reduced
to a two-hour turnaround. This means that our employees are freed up to attend to
other customer needs.’
Together with Komatsu’s drive to deliver excellent service, it focuses on creating
innovative products to help mining clients access difficult-to-reach ore zones,
among others. ‘In the underground coal mining market, the easy-to-mine coal
has long been depleted. Komatsu’s innovation in battery technology has enabled
us to apply this to the system (or process designs) and make it possible to mine
the difficult areas.’ With the old lead-acid batteries having specific charging
cycles, releasing gases while charging and being difficult to maintain, Komatsu
has invested in the development of new battery technology, which it will soon be
launching. The new battery technology has already undergone the relevant stress
testing and completed the relevant legal approvals for use in a coal mine. ‘We have
launched the new product and are finalising an order with a local customer. The
first machines will be delivered to a coal miner in South Africa in 2022. The product
will have a massive impact on our customers’ ability to mine difficult areas,’ says
Walters-Gerout.

COVID-19 and the direct service model

While the pandemic has delayed the execution of a number of projects, given the
low demand for some commodities such as limestone during the hard lockdown last
Copyright © 2012. Juta & Company, Limited. All rights reserved.

year, Walters-Gerout says the servicing of Komatsu’s underground mining customer

base was relatively unaffected. However, it did require the company to rethink the
way it planned, manufactured and delivered its service to customers such that it
didn’t cause any unnecessary delays. The onset of the COVID-19 pandemic saw
a rapid uptake in and reliance on technology, especially for employees working
remotely, as well as with digital tools to ensure employee safety (social distancing).
Subsequently there has been a rapid uptake of video conferencing and the use of
digital platforms to help speed up interaction.
‘The coal mining sector faces complications related to the use of digital tools like
tablets, given that the mines give off dangerous flammable gases. Despite these
complications, the technology does exist, and that allows for quick customer
support face to face underground in the production face and reduces any unplanned
downtime event.’ The digitalisation drive has seen Komatsu develop a number

Roberts-Lombard,284M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 284 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

of digitalised training solutions which include mixed reality (augmented reality/

virtual reality) and animated interactive training material to help in the training of
employees remotely. ‘These technology developments don’t take away the direct
classroom training, but they enable self-help training in much smaller and shorter
modules that can be accessed at any time of the day. If a machine is in production,
the technical people are often sitting around in case something goes wrong. This
waiting time can now be used to do self-training on the tablets underground.’
Source: Moodley, N. 2021. Direct to the Customer: Komatsu’s service model
delivers. [online] Available from: https://businessmediamags.co.za/mining/sa-
mining/direct-to-the-customer/. Accessed: 8 June 2021.

Case Questions
1. Explain what advice you would give to Komatsu regarding its relationship with:
a. customers in the coal mining industry
b. agents who sell Komatsu products to the mining industry.
2. List and briefly explain five forces that shape organisational buying of coal
mines when it comes to underground mining machinery.

14.13 Summary
In this chapter, we demonstrated how the challenge facing business marketers is
driven by key differences in the nature of the markets, products and how business
marketing is conducted. This provided the platform for considering the three most
critical areas of B2B marketing: gaining an understanding of organisational buying
behaviour, managing B2B relationships, the interaction in business relationships
and, finally, managing business relationships in complex networks. These
elements each, and together, play a vital role in the daily activities of B2B markets,
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and although these ideas have been dealt with in a theoretical manner, they are
all too real in practice. There is no doubt that B2B marketing is a complex human
activity, and, in some respects, our understanding of the underlying phenomena
is still in its infancy. However, business marketing is packed with opportunities for
many firms and individuals.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 285
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 285 2022/03/29 11:20 AM

Consumer Behaviour

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Assume that you have addressed an Eskom conference on the importance of
the buying situation in B2B marketing. Write a short paragraph to highlight the
main aspects of your talk which Eskom can include in a monthly newsletter to
its suppliers.
2. Your company manufactures and sells audio-visual equipment (data projectors,
overhead projectors, whiteboards and interactive boards) to higher education
institutions. In a short paragraph, explain how group and individual forces may
influence the purchasing behaviours of universities.

Multiple-choice questions
1. The geographic location of a firm typically forms part of their …
A. general characteristics
B. market variables
C. purchase-related factors
D. macro-variables
E. physical environment.
2. The worldwide changes in information technology that B2B customers expe
rience on an ongoing basis can be typically described as part of their…
A. general characteristics
B. market factors
C. purchase-related factors
D. buying centre characteristics
Copyright © 2012. Juta & Company, Limited. All rights reserved.

E. macro-variables.
3. Which of the following are products typically sold in business markets?
3.1 Coal from a mine
3.2 Cleaning agents for shop floors
3.3 Personal computers that are used by Unisa
3.4 Surgical appliances that are used in hospitals
3.5 Cash registers used at Pick n Pay.
A. 3.2 and 3.4
B. 3.1, 3.3 and 3.4
C. 3.1, 3.4 and 3.5
D . 3.1, 3.2, 3.3 and 3.4
E. 3.1 to 3.5

Roberts-Lombard,286M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 286 2022/03/29 11:20 AM

Chapter 14: Organisational buying behaviour

4. In the analysis of customer firms, the customers they serve (‘our clients’
customers’) are regarded as part of their …
A. macroenvironment
B. internal variables
C. general characteristics
D. market variables
E. purchasing behaviour.
5. In the analysis of customer firms, the customer firm’s buying centre influencers
form part of their ...
A. market variables
B. purchase-related factors
C. macro-variables
D. general characteristics
E. physical environment.
6. The most routine buying situation that an industrial buyer could perform is …
A. straight rebuy
B. modified rebuy
C. new-task purchase
D. complex modified rebuy
E. homogeneous rebuy.
7. An engineer decides to buy a new machine, which utilises a totally new
technology, from an existing overseas supplier. This buying situation will be
classified as a …
A. straight rebuy
B. modified rebuy
Copyright © 2012. Juta & Company, Limited. All rights reserved.

C. new-task buy
D. technological rebuy
E. homogeneous rebuy.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 287
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:07.

Consumer Behaviour 5E.indb 287 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 288 2022/03/29 11:20 AM

Chapter

15 CONSUMER LOYALTY
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain the difference between repeat buying behaviour and brand loyalty
■■ Explain the influence of brand names on product preference
■■ Discuss what is meant by brand image
■■ Distinguish between brand preference, brand loyalty and brand switching, using an
illustration
■■ Identify the key factors responsible for the formation and development of brand loyalty
■■ Identify the factors that influence the degree of brand loyalty
■■ Explain the relationship between complex decision making and brand loyalty
■■ Explain the relationship between vulnerability and brand loyalty
■■ Illustrate the stages of brand loyalty
■■ Explain how loyalty patterns may be used for segmentation analysis
■■ Illustrate and discuss the behavioural and attitudinal approaches to brand loyalty
■■ Illustrate and discuss three main brand loyalty correlates
■■ Distinguish between stochastic and deterministic models of brand loyalty
■■ Distinguish between manufacturer brands, store brands and generic brands
■■ Define store loyalty, and illustrate and explain the stages of store loyalty
■■ Illustrate and explain the criteria that consumers use in determining store patronage
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and store loyalty

■■ Explain the influence of a pandemic like the coronavirus on customer loyalty and
marketing implications thereof
■■ Explain the importance of brand loyalty and store loyalty in marketing management.

15.1 Introduction
Branding serves to distinguish products from other similar ones so that they can be
marketed separately. Kotler and Armstrong1 define a brand as a name, term, sign,
symbol or design, or a combination of these characteristics, intended to identify
the goods or services of one seller or groups of sellers and to differentiate them
from those of competitors. For example, the Colgate brand distinguishes Colgate
toothpaste from Aquafresh and Mentadent P. Brands are accorded greater value
when advertisers link them to distinguished role models, fashion and adventure.
For example, Edblo beds were advertised by the ten-times Comrades Marathon

Consumer Behaviour 5E.indb 289 2022/03/29 11:20 AM

Consumer Behaviour

winner Bruce Fordyce, implying that Edblo supplies the rest a top athlete needs to
perform at his best. Likewise, one of South Africa’s top cricketers, Hashim Amla, is
the brand ambassador for the successful Cape soft drink maker, Quality Beverages.
Brands are fundamental to the effective marketing of products. Kellogg’s is a well-
known, extensively advertised and established brand of cereal, to the extent that
children often refer to cereal as ‘Kellogg’s’. A brand name may serve as shorthand
for quality by giving consumers a bundle of information about the product, and
may be a stronger cue than price for evaluating overall quality.2
The long-term success of a particular brand is based not on the number of consumers
who buy it once, but on those who become repeat buyers and are loyal to it. The
overall aim of marketing is to increase market share by adopting strategies that will
ensure brand loyalty and store loyalty.
The box below provides the objectives of marketing management.

The objectives of marketing management are to:

●● encourage occasional buyers to become repeat buyers
●● increase the amount of the brand that repeat buyers consume
●● attract buyers from competing brands
●● maintain high levels of repeat buying for the brand by discouraging repeat buyers
from brand switching behaviour.

15.2 Brand loyalty

Branding is seen as a form of security that adds value and profitability to the
overall marketing effort. All marketers aim to satisfy the needs, wants and desires
of consumers. While specific products satisfy basic needs, well-positioned brands
fulfil consumers’ deeper needs, wants and urges. With brands, consumers buy
Copyright © 2012. Juta & Company, Limited. All rights reserved.

benefits, and they may even form a close emotional bond with the brand.3 There
is a relationship between consumers’ attitudes towards the brand and their buying
behaviour.

The repeat buying of a brand does not imply loyalty towards it. Instead,
for brand loyalty to exist, there must be psychological commitment to
the brand.
An individual must have a strong positive attitude towards a brand and must be
passionate about it in order to be brand loyal.4 Brand loyalty is the opposite of
variety-seeking behaviour. Consumers engage in variety seeking when they buy
different brands because of curiosity, an urge to try different things, a desire for
novelty, or boredom with the original choice.5 Consumers typically seek variety
among products such as restaurants, music or leisure activities.

Roberts-Lombard,290M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 290 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

In assessing the ingredients for brand impact in Africa, Andrews6 found that Icon
brands in Africa needed to ensure that their business strategy closed the gap between
its brand commitment, client experience strategy and consumer emotional aspects.
However, in Malaysia, Mokhlis7 noted that branding and brand positioning had not
been sufficiently exploited in business markets.

15.2.1 The influence of brand names on product preference

Brands offer consumers convenience in shopping. They make

it easier for consumers to identify particular items from a multitude of

goods, and a brand name assures the consumer that the product will
always be the same.
For example, Kellogg’s Corn Flakes cereal is easily identified by its colourful
packaging, with the picture of a cock crowing to signify that it is time for the
morning meal. Consumers choose brands that provide consistent quality. Once
they have established a preference for a specific brand, they can be assured of the
same quality every time they buy it. Health-conscious individuals, for example,
will continue to buy light margarine if they believe that the product will benefit
their health.
Brands simplify the buying of replacement parts, service and accessories, and
often assure consumers that they will receive a proper replacement part or their
money back if the product does not work properly. Perceived risk can be reduced
substantially when consumers buy established brands that are known to satisfy a
need optimally.
For example, a family may choose to buy a Defy washing machine because of the
company’s good reputation. As a result of sophisticated buyers and marketers, brands
have acquired an emotional dimension that reflects buyers’ moods, personalities
and the messages they wish to convey to others.8 Therefore, individuals may buy
Copyright © 2012. Juta & Company, Limited. All rights reserved.

brands that maintain or enhance their self-concepts in a non-verbal manner. For

example, a consumer may buy a brand of jeans that are seen as trendy to improve
their self-image. The brand also meets needs such as affiliation and the desire for
dominance. Undoubtedly, consumers prefer the brands that they view as highly
satisfying. Table 15.1 summarises these advantages.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 291
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 291 2022/03/29 11:20 AM

Consumer Behaviour

Table 15.1: The definition and benefits of brands

Definition of a brand Benefits or advantages of brands

●● Name, term, symbol or design, or ●● Provides convenience in shopping through easy

a combination of traits that help to identific ation and easy recognition of product
identify the product or service ●● Facilitates the consumer decision-making process
●● Product with a personality ●● Provides consumers with consistent quality
●● Unique character and appeal ●● Simplifies the buying of replacement parts,
service and accessories
●● Reduces perceived risk when established brands
are purchased
●● Enables consumers to express their self-concept,
for example when buying Soviet jeans

15.2.2 Brand image

The many advantages of branding suggest that consumers have strong feelings
about brands. A brand is a product with a personality. While a product is something
physical created by a manufacturer, a brand consists of all the living impressions
a consumer has of a product or service.9 These impressions combine to give the
brand a unique character and appeal, and consumers are likely to purchase the
brand with the personality that most closely matches their own.10 For example,
Coca-Cola’s ‘Share a Coke’ campaign was successful because it symbolised self-
expression, happiness, the spirit of generosity and sharing in an emotional way.
However, at the start of the COVID-19 pandemic, Arnason and Zufferli of Deloitte11
emphasised how the coronavirus has put ‘customer loyalty and trust to the test’
and recommended to businesses the need to focus on and maintain consumer
loyalty and trust during times of uncertainty. In this regard, they stressed the
need for organisations to ‘be true to their brand and purpose’ by maintaining
Copyright © 2012. Juta & Company, Limited. All rights reserved.

lines of communication with all stakeholders, strengthening bonds with the most
loyal customers as well as being creative ‘by finding new ways of working with
customers’.12 This was reiterated by LoyaltyPlus,13 who maintained that businesses
need to strategise ‘by sustaining the best customer experience and service quality’.
In addition, George14 highlighted that retailers must consider new priorities as
‘COVID-19 accelerates digital transformation’.

Brand image is the sum total of a consumer’s attitudes to, and

knowledge about, a brand.
Experience, as well as social and marketing influences, has an impact on brand
image. Consumers’ experiences with brands are stored in their consciousness and
form a substantial part of the image they have of the brand. Social influence is a
major factor in the development and modification of brand images. For example,
Glen tea is associated with togetherness – with neighbours and community – and

Roberts-Lombard,292M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 292 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

its advertising presents images of the fulfilment of the need for belonging and
affiliation. Hence, brands are symbols of social relationships, and their images can
be influenced by groups that consumers feel are important, such as peer groups,
family, celebrities and friends.
Marketers are building an image when they launch a new product and engage in an
extensive amount of decision making about its profile. This image is communicated
to individuals through the promotion mix of advertising, selling and packaging.
Brand image is as much a part of the process of buying a product as is the product
itself. It can add value to a product and play a critical role in brand preference.
Brand image is illustrated in Figure 15.1.

●● Consumer’s past experience

(recall from memory, e.g. Brand image
Lux soap lathers well and
smells good) (sum of Adds value to
consumer’s product and
●● Social influences (Glen
attitude and influences brand
tea is associated with knowledge preference
togetherness) about a brand or
●● Marketing influences product)
(advertising, selling and
packaging)

Figure 15.1 Brand image

15.2.3 Brand preference

This is shown in Figure 15.2. The two main reasons for brand preference are
discussed in the feature that follows.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 293
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 293 2022/03/29 11:20 AM

Consumer Behaviour

Selecting a brand or product from Efficiency in decision making

a set of known available brands

Consumer uses the KAB process

Consumer has knowledge Consumer holds positive attitudes

Choice elicits
of several brands towards a few of the brands. On
behaviour indicated
evaluation, consumer feels one
in the act of
brand among a choice is more
purchasing the
satisfying than others based
most favoured
on values, e.g. status, security,
brand
enhancing selfimage

Brand switching
As knowledge changes over time (either
through experience or marketing stimuli, Change in brand image, e.g. unhappy
e.g. price, product changes, coupons), with previous brand or product
so too does attitude and behaviour experience

Figure 15.2 Brand preference

Brand preference exists for two major reasons.

1. Faced with a choice of brands, consumers feel one is more satisfying than others
and, therefore, they favour it. According to Foster and Tindale,15 consumers buy
benefits other than the purely physical features of the product – they also buy
intrinsic, psychological values that add things such as status, security and self-
image to their satisfaction.
2. Brand preference occurs as a result of efficiency in decision making. Consumers
would struggle if, on each shopping trip, they had to select logically among brands
for every item on their grocery list. Habits that develop as a result of past experiences
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and reinforcement of previous purchases provide efficiency to consumer shopping.

When confronted with a choice of brands, consumers will be more positive

towards one brand than towards others. Brand preference behaviour, as depicted in
Figure 15.2, reflects the knowledge−attitude−behaviour (KAB) model of consumer
behaviour. This model maintains that consumers have knowledge of several brands
and hold positive attitudes towards a few of them, which will elicit behaviour – the
act of buying their most favoured brand. As knowledge changes over time, so too
do attitudes and behaviour. Brand preference may change as a result of marketing
efforts such as price, product changes and coupons. For example, a consumer who
generally buys Rama margarine may buy Rondo margarine if it is offered at a cheaper
promotional price. Brand switching is one of the ways in which consumers having
problems or experiencing dissatisfaction with a product or service may express
their unhappiness. The purpose of brand switching is to get rid of the problems
with the previous purchase. However, a change in brand image must occur before
a change in brand preference takes place.

Roberts-Lombard,294M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 294 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

15.2.4 The formation of brand loyalty

Brand loyalty occurs when a consumer strongly favours one brand over others.
A consumer becomes brand loyal over time. Initially, a consumer may experiment
with different brands, even to the extent of purchasing a different brand on each
shopping occasion. With each experience, the consumer learns the advantages and
disadvantages of each brand, and, eventually, the consumer may acquire a distinct
preference for one over all others.
Three factors are instrumental in the formation of brand loyalty, namely:
1. exposure to information concerning the brand
2. a favourable experience when buying and using the brand
3. the extent of its use by peers and social reference groups.

There are a number of factors that can influence the degree of brand loyalty that
develops within a target market. Brand loyalty is higher when:
●● fewer brands are available for consumers to select from
●● fewer products of greater value are bought
●● price differences are relatively constant among competing brands
●● consumers use fewer brands at the same time.

On the other hand, brand loyalty is lower when:

●● more brands are available for consumers to choose from
●● more products of greater value are bought
●● prices are relatively active among competing brands
●● consumers use a number of brands at the same time.

15.2.5 Brand loyalty and repeat buying behaviour

While repeat buying involves buying the same brand frequently – possibly because it
is the only one or the cheapest one available – for brand loyalty to occur, there must
be some level of psychological commitment to the brand, as we have mentioned
before. This is illustrated in Figure 15.3

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 295
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 295 2022/03/29 11:20 AM

Consumer Behaviour

Repeat purchase Brand loyalty

behaviour ●● Buys the same brand often over time because of a
●● Buys the same commitment or psychological attachment
brand often over
Characteristics
time
●● Consistent buyers of the same brand
●● May be based on
price, availability
●● Hold strong beliefs about the brand’s quality
and packaging ●● Feel considerable devotion to brand
●● Willing to pay the price
●● Resist competitor’s efforts to persuade them of the
quality of other brands
●● Not vulnerable to other brands

Figure 15.3 Repeat purchase behaviour and brand loyalty

Repeat buying behaviour refers to consumers buying the same brand over time,
while brand loyalty includes psychological and evaluative processes. These processes
need not be elaborate or extensive, but they should show that a person has reasons
for acting and that the person develops a commitment – a psychological attachment
– to one or more brands.
Brand-loyal consumers tend to be consistent buyers of the brands they buy; they
hold strong beliefs about their quality, feel considerable devotion towards the
brands and often resist competitors’ efforts to get them to switch to other brands.16
Therefore, they are not vulnerable.

15.2.6 Complex decision making and brand loyalty

Brand loyalty is often measured by how involved consumers are in the decisions to
buy particular products, as depicted in Figure 15.4.

Roberts-Lombard,296M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 296 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

High involvement Low involvement

Extensive search for Exposure and brand

information awareness

Can be brand Cannot be brand

loyal loyal as there is
Attitude change Buying behaviour
no/low commitment

Buying behaviour Attitude change

Brand loyalty
(result of brand
Brand habit
attitude and
commitment)

Figure 15.4 Level of involvement and brand loyalty

As shown in Figure 15.4, high involvement leads to an extensive search for infor
mation, attitude change, buying behaviour and then brand loyalty. In contrast,
low involvement creates exposure and brand awareness, buying behaviour, perhaps
attitude change and then brand habit. Since brand loyalty is defined as a commitment,
the low involvement consumer cannot be considered to be brand loyal. Consumers
who are not brand loyal may be persuaded to buy a competitor’s brand.
Brand commitment is the result of consumer attitude. The greater the brand commit
ment, the more rooted the brand will be in the consumer’s mind as the only choice
within the product class. If a shop does not have the brand in stock, this will be
a serious problem for the consumer, who will then look for the brand in another
Copyright © 2012. Juta & Company, Limited. All rights reserved.

shop. Hence, brand commitment implies brand loyalty, but brand loyalty does not
imply brand commitment.
Involvement does not necessarily equate to price. In other words, a high-involvement
product is not necessarily a high-priced one, and a low-involvement item is not
always a cheap one.17

15.2.7 Brand loyalty and vulnerability

Different patterns of brand loyalty exist. Furthermore, different brands of the same
product are able to command varying degrees of loyalty. While the marketing
objective with loyal consumers is to maintain and extend their loyalty, the aim with
non-loyal consumers is to encourage them to try the firm’s brand and to develop
loyalty. The more a firm’s market share is built on a base of loyal consumers, the
more stable is that share of the total market. Management therefore needs to pay
attention to the degree and distribution of loyalty in the market.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 297
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 297 2022/03/29 11:20 AM

Consumer Behaviour

The term ‘vulnerability’ may be used to distinguish loyal consumers – that is, those
who both buy and like the brand – from those consumers who buy a brand but
like other brands equally well or better, and are therefore vulnerable to these other
products (that is, they may buy them).
Brand loyalty and vulnerability are based on the interrelationship between two
dimensions, namely the buying pattern of a particular brand and the attitude
towards that brand.18 This vulnerability matrix provides the marketing manager with
useful information. It identifies loyal consumers as well as those who are unlikely
to become loyal – and it is not worth the effort to try to develop the latter’s loyalty.

15.2.8 The stages of brand loyalty

Brand loyalty is formed over time; hence, a consumer journeys through different
stages before really becoming brand loyal. Figure 15.5 shows these phases in
chronological order.

Brand awareness
Consumers become aware of a brand through promotional
strategies (in-store salespeople, attractive price discount signs,
end-of-aisle displays, shelf positioning, billboards,
mobile advertising on buses and car windows, advertising),
family and friends
Consumer chooses
or WILLINGNESS TO BUY/TRY
alternative brand
Brand trial
Consumers are encouraged to try a brand through free
samples, coupons or attractive reduction of prices
Consumer chooses
or WILLINGNESS TO BUY/TRY
alternative brand
Brand image
Consumers’ perception of the brand is based on brand
Consumer’s attitude and message, past experience and information obtained
Copyright © 2012. Juta & Company, Limited. All rights reserved.

behaviour change and

or BUY
hence, consumer chooses an
alternative brand Brand preference
Consumers select the brand or product from among known
available brands, having a more positive feeling about one brand
Consumer’s attitude and
behaviour change and or BUY
hence, consumer chooses an
alternative brand
Brand habit
Consumers repeatedly buy a preferred brand
Consumer may choose an
alternative brand based on or BUY
out-of-stock conditions
Brand loyalty
and price
Psychological commitment to a brand – will do without it if it is
not available, wait until it is available or search in another store

Figure 15.5 The stages of brand loyalty

Roberts-Lombard,298M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 298 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

The stages of brand loyalty

Stage 1: Brand awareness
Stage 2: Brand trial
Stage 3: Brand image
Stage 4: Brand preference
Stage 5: Brand habit
Stage 6: Brand loyalty

Stage 1: Brand awareness

Consumers cannot buy a brand unless they are aware of its existence. Hence,

brand awareness is a general communication aim of all promotional

strategies.
By creating brand awareness, marketers hope that whenever the need for the product
arises, the consumer will remember the brand and include it among the alternatives
during decision making. Salespeople in a store, attractive price discount signs, end-
of-aisle displays, shelf positioning, billboards, mobile advertising on buses and car
windows, and advertisements can all create brand awareness. Brand awareness is a
fundamental necessity for brand choice; hence, the higher the degree of awareness,
the greater the potential to influence choice. A high level of brand awareness is vital
to influence brand choice.

Stage 2: Brand trial

promotional strategies are predominantly aimed at encouraging con

sumers to try out a brand,
for example by distributing free samples, point-of-sale and media coupons or by
providing eye-catching reductions on prices relative to that of competitive brands.

Stage 3: Brand image

As we have seen,

brand image is the consumer’s impression of the brand created by

brand messages and experiences,
and assimilated or evaluated into a perception through the processing of information.19

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 299
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 299 2022/03/29 11:20 AM

Consumer Behaviour

Stage 4: Brand preference

Brand preference is the tendency to select a brand or product from
among a set of known available brands.
When confronted with a choice of brands, the consumer will have a more positive
feeling about one brand than about competitor brands.

Stage 5: Brand habit

Brand habit occurs when a consumer spontaneously reaches out for a
specific brand of product without stopping to think about or evaluate it.
Habitually buying a brand may constitute repeat buying behaviour. However, a
consumer who buys a brand out of habit may consider an alternative brand if the
habitually purchased brand is out of stock or is too expensive when compared to
other available brands.

Stage 6: Brand loyalty

As we have seen,

brand loyalty reflects that the consumer has a strong attachment or

inner psychological commitment to a brand.
The behavioural tendencies of brand-loyal consumers are clear. For example, a
brand-loyal consumer will visit another store when faced with stock-out conditions
in one store, and may even prolong the purchase until stock becomes available or
until he or she is able to purchase the preferred brand from another store. Loyalty
is the ultimate measure of brand preference.20
Copyright © 2012. Juta & Company, Limited. All rights reserved.

15.2.9 Brand loyalty and brand segmentation

A firm can find out essential information by analysing loyalty patterns in its market
and carrying out segmentation analysis. Segmentation analysis is the process of
identifying consumers who are more likely to be influenced by an effort to market
a specific product, service or brand than the rest of the market population. For
marketers, the aim of segmentation analysis is to reduce risk in deciding where,
when, how and to whom they will market a new product, service or brand. Their
aim is to increase marketing effectiveness by directing their efforts towards the
designated segment in a way that will fit that segment’s characteristics and, hence,
appeal to them.

A market can be segmented by consumer loyalty to brands, stores and

companies.

Roberts-Lombard,300M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 300 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

Buyers can be divided into groups according to their degree of loyalty. A brand-
loyal market is one with a high proportion of consumers showing strong brand
loyalty. In terms of brands, segmentation analysis informs marketers about:
●● their brands’ positioning in the market in relation to possible substitutes, as
perceived by consumers
●● the way in which consumers distinguish their brands from others
●● the importance of various product attributes to consumers’ evaluations of
the brands
●● the psychological aspects of consumers that lead them to buy or not to buy
a specific brand.

This kind of information guides marketers in deciding on the strategy and tactics
with which to achieve their goals and secure their market share.

15.2.10 Determining the brand-loyal segment

A loyal consumer has a commitment towards a brand and is willing to pay a
premium price for it, is willing to exert more effort to buy the brand if it is out
of stock in a specific store, and is less subject to competitors’ actions, especially
product promotions. Researchers have tried to find out why brand loyalty varies
across consumers and products.
Consumer shopping patterns and market structure characteristics are associated
with varying degrees of brand loyalty.
Researchers have adopted the behavioural and attitudinal or cognitive approaches
to understanding brand loyalty in order to understand the buying patterns of
consumers. Brand loyalty depends on:
●● the number of consecutive times that an individual buys a brand – for
example, a consumer who buys a brand five times in a row (behaviour) may
be considered to be brand loyal
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● the consumer’s knowledge of the brand (cognition), liking for the brand
(feeling/ attitude) and the act of buying the brand (behaviour).

The behavioural approach to brand loyalty

Followers of the behavioural school of thought define brand loyalty in
behavioural terms by the sequence and/or the proportion of purchases, as we can
see in Figure 15.6.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 301
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 301 2022/03/29 11:20 AM

Consumer Behaviour

Behavioural approach to brand loyalty Cognitive approach to brand loyalty

The number of times the individual buys the Repeat buying behaviour based on attitudes,
product, the sequence and/or proportion of that is, cognitive knowledge, affective feelings
purchases and behavioural action factors
Behaviour displays loyalty Favourable attitudes display loyalty

Defining brand loyalty based on the

Attitudes need to be considered too because
behavioural approach alone overstates the
commitment leads to brand loyalty
degree of brand loyalty

The combined behavioural and attitudinal approaches

Which brands consumers prefer and which brands they buy

Figure 15.6 Approaches to brand loyalty

Brown21 defines loyalty as buying the same brand five times in a row, while Tucker22
defines it as three times in a row and Lawrence23 as four times in a row. Blattberg
and Sen24 used the proportion of purchases rather than sequence as the behavioural
measure of loyalty. For example, a person who buys Dove soap six times in a row is
brand loyal, as is a consumer who buys Dove soap 70% of the time.

Behaviourists argue that what consumers think or believe is unimportant

and that the consumers’ behaviour is the full statement of what brand
loyalty is.
This approach is rather limited – it views brand loyalty simply as a function of
Copyright © 2012. Juta & Company, Limited. All rights reserved.

past behaviour. Brand loyalty is a multidimensional concept that must include a

consumer’s commitment to a brand.

The cognitive approach to brand loyalty

Many of the shortfalls of a purely behavioural approach to measuring brand loyalty
are overcome when both attitudes and behaviour are included. Since attitude is
recognised as a crucial element in the buying process, the cognitive approach
states that brand loyalty implies repeat buying behaviour based on cognitive,
affective and behavioural factors – the basic components of attitude, as shown in
Figure 15.6. In order to be truly loyal, a consumer must have a favourable attitude
towards the brand in addition to buying it repeatedly. For example, a consumer is
said to be brand loyal to Tastic rice if the consumer likes it and buys it on every,
or almost every, occasion. The brand that the individual likes the most will be the
one with the highest probability of selection in the market (brand choice) and the
brand least favoured will have the lowest probability of selection.

Roberts-Lombard,302M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 302 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

The cognitive approach offers marketing researchers the advantage of enabling

them to gather valuable information about the strengths and weaknesses of their
brands on relevant attributes, which can help to alter an existing marketing strategy
to influence the cognitive−attitudinal−behavioural hierarchy.

The combined behavioural and attitudinal approach

Research indicates that measures of brand loyalty that use both attitudinal and
behavioural approaches provide a more powerful definition of the concept.25
Researchers need to determine which brands consumers prefer as well as which
ones they buy (see Figure 15.6). Day26 found that the predictive power of the model
using both attitude and behaviour measures was almost twice as good as using
only the latter. Also, if the behaviour measure alone was used, over 70% of the
sample would have reflected brand loyalty, but when the attitudinal component
was considered, the proportion of brand-loyal consumers was reduced to under
50%.27 The implication is that defining brand loyalty based only on repeat buying
overstates the degree of loyalty. The misclassification of individuals as brand loyal
misleads marketers to believe that consumers are responding more favourably to
the brand than they actually are.

15.2.11 Brand loyalty correlates

Studies on brand loyalty, based on the behavioural and attitudinal measure, have
found that it has a particular relationship to consumer buying behaviour, patterns
of shopping and various features of market structure. Figure 15.7 makes this evident.

Influences on consumer buying habits

●● Reference groups whom the individuals enjoy being associated with
and whose judgement they trust
●● Socio-economic factors, e.g. income, status
●● Demographic factors, e.g. age
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Psychological and personality factors

Characteristics of shopping patterns

Brand loyalty

●● Store loyalty and shopping proneness (consumers who are not prone Reduces
to shopping go to only a few stores and hence limit their choices to risk
the brands that these stores carry)
●● Amount purchased (brand loyalty is higher among heavy buyers than Increases
light ones) self-
●● How established a brand is, that is, how long it has been on the market confidence
●● Time between purchases (probability of repeat purchases is reduced
with an increase in gap between purchases)

Market structure characteristics

●● Availability of brands (the greater the number of available brands is,
the lower is the loyalty)
●● Price fluctuations and dealing activity (the greater the extent of price
fluctuations is, the lower is the degree of brand loyalty)

Figure 15.7 Brand loyalty correlates

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 303
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 303 2022/03/29 11:20 AM

Consumer Behaviour

Consumer buying habits

Brand-loyal consumers are more likely to be influenced by reference
groups because of lack of information and the desire to conform and
be accepted.
A consumer may be encouraged by a personal or non-personal source to buy a
particular brand without acquiring product-specific information. This often
happens when the consumer is short of time or believes the referrer to be
particularly knowledgeable and reliable. Brand-loyal consumers also tend to
be more self-confident in their choice. Furthermore, they are more likely to see
and use repeat buying of a single brand as a means of reducing risk. Some socio-
economic, demographic and psychological variables, including personality, are
related to brand loyalty. In efforts to enhance sustainability, ‘retail brands strive
to build consumer loyalty by better understanding the urbanised middle class and
their potential purchasing power’.28

Shopping pattern characteristics

Studies have produced findings indicating the relationships between brand loyalty
and various shopping pattern characteristics. Carman29 and Rao30 have shown the
importance of store loyalty in determining brand loyalty. Shopping proneness has
been related to brands. Consumers who are not prone to shopping go to only a few
stores. Within these stores, they tend to remain loyal to a small number of brands
rather than make careful choices among the values being offered by these stores.
A relationship has also been observed between the amount purchased and brand
loyalty. Kuehn31 found that brand loyalty was higher for heavy buyers – that is,
people who buy a lot – than for light ones. In addition, brand loyalty is related to
the length of time the product has been on the market. Kuehn32 also observed the
relationship of the time between purchases and brand loyalty, and found that the
more time has passed, the greater is the decay in loyalty.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Market structure characteristics

Sometimes the difference between products in relation to some important aspects
of brand choice can be the result of the structure of the markets in which the
products are sold, and it does not depend on the specific features of the products or
on consumer attitudes to these products. Engel, Blackwell and Kollat have studied
the relationship between brand loyalty and certain market structures such as the
availability of brands, price fluctuations and dealing activity.

Consumers tend to be loyal in markets where a wider distribution of brands

exists and where market share is represented by the leading brand.
Therefore, market structure influences brand loyalty.

Roberts-Lombard,304M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 304 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

15.2.12 Models of brand loyalty

Many mathematical models have been developed in an attempt to understand
brand loyalty behaviour over time. We now explore the two types of models that
seem to dominate.

Deterministic models
These models have been designed to explain the processes through which buyers
make their brand choices, decide to engage in repeat buying behaviour or become
brand loyal. Deterministic models are an attempt to predict behaviour in exact
or non-probabilistic terms. They contain no random, probabilistic or stochastic
elements, and are therefore different from a stochastic model with its built-in
probability component.

Stochastic models
These models allow for many variables that are not or cannot be measured, and they
are a simplification of reality. There are two basic philosophies of stochastic models.
In the first, variables that are internal and external to the individual determine the
outcome of behaviour, even though many of these factors are not measured or
included in the model of market response. The second philosophy is based on the
premise that the model of market response and the actual consumption process are
both stochastic, and not just the model. However, we cannot conclusively prove
whether behaviour is primarily stochastic or deterministic, because many variables
influence consumer choice.

15.2.13 Consumer behaviour and brand type

Branding is central to marketing since a brand name makes product identification
possible, commands a particular price, implies distribution decisions and dictates the
promotional strategy. Consumers tend to recognise different types of brands, namely
Copyright © 2012. Juta & Company, Limited. All rights reserved.

manufacturer brands, store brands and generic brands. South African shoppers can
choose among national (manufacturer), store or generic brands for many grocery
products. The brands differ in price, grade, packaging, advertising information and
availability of supply, of which generics are more limited. These three types of brands
compete directly with each other, at least within a particular store.

Manufacturer brands
Manufacturer brands are produced by, managed by and associated with a specific
manufacturer. The producer develops and owns the brand and is generally involved
with decisions regarding its distribution, promotion and, to some extent, pricing.33
These brands are often referred to as ‘national brands’, because they are extensively
marketed and advertised. They dominate market share because there are many
more manufacturer brands than store or generic brands. The awareness of, and
readily available information about, manufacturer brands tends to secure greater
consumer trust in them as compared to other available brand types.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 305
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 305 2022/03/29 11:20 AM

Consumer Behaviour

According to Weiss,34 the major trends supporting the rise of store brands are:
●● the drop in consumer loyalty to many manufacturer brands
●● the better value for money often offered by store-controlled brands
●● the growing similarity of brands within given merchandise categories
●● the growing knowledge among consumers that store brands are often the ‘Siamese
twins’ of manufacturer brands – frequently offered at lower prices 35
●● the ongoing move towards impulse shopping and self-service
●● the increasing willingness of retailers to support their brands by providing
satisfaction guarantees and warranties, thus reducing perceived risk in the minds
of consumers
●● the increasing ability of giant retailers to promote their own brands.

Store brands
Store brands are brands of products whose distribution is controlled by retailers
and wholesalers. These brands are often sold by one chain of stores. They are called
‘private brands’ because the producers are unknown to the consumers. Store brands
tend to be less expensive than manufacturer brands, except those sold in elite stores
where consumers buy brands for their distinctiveness. See what the major trends
supporting the rise of store brands are according to Weiss in the previous box.
Corstjens and Lal36 deduced that store brands and national brands play
complementary roles. Store brands create store differentiation and loyalty, whereas
national brands enable the retailer to raise prices and increase store profitability.

The basic marketing strategy used for generic brand products is to

reduce or eliminate traditional marketing frills, such as packaging and
advertising, and to offer the product at a much lower price.37
Generic brands are packed and distributed by major supermarket chains, which
have also been selling their own store brands for many years. The supermarket
decides which generic products it will carry in competition with national and store
brands, as well as their price levels and location in the store. Generics have enjoyed
a much higher rate of sales growth than national and store brands.
Maggs38 emphasised that brand loyalty is on ‘a worrying decline’ and that people’s
ever-changing choices, increased price sensitivity and need for sustainability
present a new landscape. Add to this the escalating brand parity and the situation
worsens, sounding alarm bells to marketers and practitioners.39

Roberts-Lombard,306M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 306 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

15.3 Store loyalty

Consumer loyalty is the tendency of a person to act in the same way in a similar
situation in order to secure satisfaction. Store loyalty is the customer’s intention
to patronise a given store repeatedly. The customer’s store patronage (behaviour)
is based on the consumer’s feelings towards the store (affect) and knowledge and
beliefs (cognition) about the store. This is shown in Figure 15.8.
Mafini and Dhurup40 found that in South African retail stores, store satisfaction is
a strong predictor of consumer loyalty. They found that customer satisfaction was
largely influenced in order by price, quality and selection of products and least
influenced by sales assistance.41 The largest retailers in South Africa are Shoprite,
Spar, Pick n Pay, Woolworths and Massmart, with Shoprite being Africa’s biggest
supermarket chain.42 However, in 2020, Shoprite’s shares fell to their lowest level.43
This was the impact of COVID-19 as in November 2020, South Africa’s retail trade
slumped 4% from a year earlier.44 Whilst COVID-19 had a detrimental impact on
retail, the banking sector was less affected. According to Wentzel,45 when South
Africa encountered the protracted COVID-19 national lockdown, banks responded
quickly and with empathy to their clients by providing financial relief, breaks
on credit agreements and thereby, earned goodwill and loyalty. However, whilst
their rapid and wide-scale debt-relief responses kept them in good stead, Wentzel46
cautioned that they would have to work hard to leverage this position as the long-
term pandemic tests consumers’ resilience.

Store awareness Reinforcement of store patronage in terms of past

satisfaction
Previous buying experience within the store
Store patronage Location of the store
Functional attributes (price; convenience;
selection of products)
Store image
Impressions of store in shopper’s mind Psychological attributes (architecture; interior design;
Copyright © 2012. Juta & Company, Limited. All rights reserved.

colours; advertising)

Store preference Consumer may choose to visit another

Consumer selects one store among known stores store based on feelings and knowledge

Store habit may change depending on continuing

Store habit
satisfaction and willingness to change

Store loyalty
Consumer may choose to visit another
Based on product offerings; physical factors
store based on feelings and knowledge
psychological factors; aesthetic factors

Figure 15.8 The stages of store loyalty

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 307
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 307 2022/03/29 11:20 AM

Consumer Behaviour

The consumer mentally establishes certain evaluative store criteria and compares
his or her perceptions of the store’s characteristics with these criteria, as shown in
Figure 15.9. In essence, store loyalty is based on product offerings, physical factors,
psychological factors and aesthetic factors. If the store fulfils these set criteria, the
consumer will patronise the store, perhaps repeatedly. If it does not, consumers
will visit the store that comes closest to meeting their expectations. Repeated
satisfaction results in repeated patronage and store loyalty.
Retailers want consumers to patronise their stores all the time. However,
consumers’ attitudes towards the store – that is, the consumers’ affect, cognition
and behaviour – is largely influenced by the store image and store environment. The
store environment comprises the in-store stimuli, the speed and friendliness of the
service delivered by the cashiers, the quality of products, the store layout, lighting,
the clarity with which prices of products are displayed, promotional strategies
and overall store atmosphere. As a result of COVID-19, the subsequent lockdown
and focus on social distancing, consumers began to add to the criteria for store
selection. They began to favour stores with wider aisles, more available sanitisers,
shorter queues, more efficient check-outs, stores with monitoring in terms of social
distancing and stores with masks policies. As COVID-19 progressed further and
further and with increasing numbers of cases, South African consumers dreading
the queues and sceptical of the danger that lurked outside their homes turned to
online purchases,47 while those sceptical of the safety of online transactions, made
up the foot traffic in retail outlets and malls. Undoubtedly, COVID-19 has meant
fewer cars in the mall parking and more trolleys in the trolley parking bays, making it
more important than before for businesses to adapt business functions and respond
to customer needs and expectations with innovation and agility. Undoubtedly,
literally, more trolleys mean innovation in in-store layout and spacing, which is
increasingly needed in an environment dictated by social distancing and more
trolleys. At a deeper level, meeting customer needs means operating and serving
customers differently as customers avoiding congested aisles may present the need
for digital transformation and the acceleration of e-commerce. The impact on
Copyright © 2012. Juta & Company, Limited. All rights reserved.

businesses then also means ensuring an easy-to-navigate website, easy and secure
checkout, continuous inventory control to ensure availability of stock and choices
and payment security.
Khoesen48 found that South African consumers are unanimous that good service
makes them feel more positive about brands. Furthermore, a significant segment
(two-thirds or 59%) were suspicious about how their data was used. Customer data
of different types exist and include behavioural, attitudinal, basic/identity and
engagement (how customers engage with the brand) data and is often picked up
through online browsing behaviours and information detected through cellphone
usage. Such data is also obtained via customer data platforms and from customer
data analysts. It necessitates the assurance of effective customer data management,
especially in an environment of the Protection of Personal Information Act, which
came into effect on 1 July 2021, enforcing data protection and safeguarding the
integrity and sensitivity of personal information. In addition, more than half of the
South African participants felt that customer service was more of a transactional
than a personal relationship.49

Roberts-Lombard,308M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 308 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

Product offerings Physical factors

●● Product: quality, variety, styling/fashion, ●● Physical facilities: elevators, lighting,
pricing, clarity of price displays, guarantees air-conditioning, restrooms
●● Promotion: sales promotion, advertisement ●● Convenience: parking facilities, lifts,
displays, in-store stimuli, trading logos and ramps for the physically handicapped
trademarks, symbols and colours and location of stores

Psychological factors
Store loyalty?
●● Service: salesperson–client service, ease
of self-service, ease of product return,
delivery service, credit policies of store,
information counter and consumer advice Aesthetic factors
●● Clientele: social class appeal, self-image ●● Institutional factors: conservative/
congruency and store personnel modern projection of store layout,
reputation, reliability
●● Store atmosphere: feeling of warmth and
trustworthiness experienced ●● Architecture: interior design and
colours
●● Respect for consumers’ time: speed and
accuracy of cashiers ●● Music

Figure 15.9 Evaluative criteria used in determining store patronage and store loyalty

Consumers gain a perception of the store not only from the functional attributes
of price, convenience and selection of merchandise, but also from the influence of
variables such as architecture, interior design, colours and advertising. Store choice
determinants are intimately related to a store’s image, and they influence its power to
attract consumers.50 Similarly, as a result of the coronavirus, consumers also adjusted
the criteria by which they selected the malls to visit. Patronage became dependent
more on malls that had wide walkways, spacious lifts and the option of escalators,
availability of hand sanitisers, and enforcement of the use of masks and of social
Copyright © 2012. Juta & Company, Limited. All rights reserved.

distancing rules. These extended criteria also created an atmosphere of mall loyalty.
The store image reflects a mixture of meanings and relationships that characterise
the store for consumers – that is, what consumers think about a particular store. The
store image is therefore the definition of the store in the shopper’s mind, composed
partly of its functional qualities and partly of an aura of psychological attributes.
Consumers react to the store’s characteristics. They may be drawn to it if they feel
a sense of trustworthiness and warmth, and they may be repelled if they view the
store as deceitful, exploitative, unpleasant and antagonistic.
Store patronage habits develop as a result of experience, reinforcement and previous
buying responses. It minimises time and effort in store selection. For example, a
consumer who enjoys shopping at a particular store because of its location, service,
credit facilities or convenience will go to this store as soon as they need something,
without stopping to think which store to visit. In other words, visiting the store
becomes a habit when the consumer needs something. However, product and store
loyalty can change and depend on the consumer’s propensity or willingness to

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 309
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 309 2022/03/29 11:20 AM

Consumer Behaviour

change, which in turn depends on the satisfaction consumers receive from present
and past brands, as well as how easy it is to change. Assael51 reports that store-loyal
consumers engage in fewer pre-purchase searches, know about fewer stores and are
less likely to shop even in a store known to them. Assael associates this shopping
style with low-income consumers who are constrained in their ability to shop.
In accordance with their different images, stores tend to attract different types
of clients. In fact, individuals patronise stores whose image they feel matches
their own, which then forms the basis of store loyalty. However, in response to
COVID-19, more South African consumers are spending with a tremendous degree
of discretion in efforts to give priority to adopting habits to save. Whilst one assesses
store loyalty, it is important to note that post the debut of COVID-19, more South
Africans have turned to online shopping behaviour.52
Undoubtedly, the coronavirus has triggered new consumer shopping behaviours. As
a result of COVID-19, Schmidt and Maigurira53 have identified seven new consumer
shopping behaviour trends in South Africa:
1. While there has been an increase in online purchases for slow-moving goods
(electronics, home and garden, fashion, beauty), the channel for fast-moving
goods (grocery shops, pharmacies) was mostly offline. The implication
is that businesses need to focus on getting their brand’s omnichannel
experience optimised.
2. More buying decisions are being made online.
3. Shopping apps are on the rise. For example, the Checkers Sixty60 app, which
facilitates online shopping through its promise of shopping in 60 seconds and
delivered in 60 minutes, became increasingly popular in customers’ priority
to social distance and kept themselves safer from contracting COVID-19,
whilst meeting their need for same-day delivery.
4. More online shopping does not mean fewer pain points. These pain points
have typically been registration and login needed, out-of-stock conditions
and technical issues in the purchase process, thereby emphasising the need
for inventory control and inventory and shipping management.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

5. Search and video play a more prominent role in online product research and
brand choice.
6. Loyalty is not guaranteed as consumers display affinity to trying new brands.
7. The drivers of online versus offline purchases are, in order of priority,
convenience, products delivered to the home, products being cheaper online
and online being the only way to get them.54

15.4 Marketing implications

For an organisation to secure the long-term success of its brand, it
must base its market share on its brand-loyal consumers.
Marketers should therefore engage in segmentation analysis to gain insight into
their product’s and brand’s positioning as compared to perceived alternatives, the

Roberts-Lombard,310M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 310 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

perceptions that consumers have of their brands, and the evaluative criteria or
salient features that consumers use and consider to be important. Such knowledge
will not only enable marketers to obtain a better understanding of their segment
profile and loyalty patterns, but will also guide them in engaging in strategic
marketing so as to secure a significant market share. Undoubtedly, brands that are
well managed can become like trusted friends to consumers.55 Managing brands
effectively means shifting towards targeting more intangible, psychological and
emotional wants in order to influence consumer demands. Marketers can thereby
strategically leverage their brands towards brand profitability.
Brand loyalty differs across product categories. Hence, marketers need to assess
consumer consumption patterns. This provides insight into the various categories
of consumers in the marketplace – that is, truly loyal consumers with a strong brand
commitment, current customers who may engage in brand switching, occasional
users of the brand and non-users of the brand. While attracting consumers who
are brand loyal to a competitor’s brand may not be cost-effective, it would be
profitable to retain loyal consumers and to stimulate the usage of occasional users.
Undoubtedly, usage rate and loyalty will assist marketers in developing appropriate
strategies for maintaining their loyal customers and increasing their usage rate as
well as adopting strategies to prevent brand switching and to entice impulsive and
variety-seeking shoppers to engage in brand trial and habit.
Since there is a relationship between consumers’ attitudes towards the brand and
their purchasing behaviours, assessing and influencing attitudes in favour of the
brand will result in increased sales. Therefore,

marketers need to aim to develop consumer loyalty through changing

attitudes by means of ensuring that the product’s or brand’s performance
equals or exceeds consumer expectations, and that its performance is
consistently good.
This is particularly important at a time when there is a growing number of brands
Copyright © 2012. Juta & Company, Limited. All rights reserved.

in the market, which lowers the potential for brand loyalty. Hence, product develop
ment and innovation become increasingly imperative. Product improvements may
be tactfully advertised to also attract those consumers who engage in variety-seeking
behaviour. Brand awareness is critical to enlarging the current base of buyers; it
is also the start of building loyalty among consumers. Numerous promotional
strategies, as we discussed above, may be used in this regard. Coupled with brand
awareness is brand trial, which may be encouraged through free samples, coupons
or significant price reductions. Marketers gain leverage by ensuring that their brand
has a distinct image or personality, that it provides added value, and that it is
unique yet easily identifiable. This must be effectively communicated through a
coherent marketing approach that skilfully integrates all elements of the marketing
mix and the promotion mix of advertising, selling and packaging. Thembinkosi56
highlighted that the lack of marketing strategies to create brand awareness amongst
petrol brands resulted in South African petrol consumers’ lack of loyalty to their
petrol brands. This is a lost opportunity considering that more and more South
Africans are purchasing motor vehicles.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 311
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 311 2022/03/29 11:20 AM

Consumer Behaviour

The image of the brand should be linked to the self-concept and personality of
the target market. Ideally, the brand should possess the trait of superiority, which
differentiates it from its competitors. Undoubtedly, brand image, product or brand
quality and sales promotions are success ingredients or mechanisms for enhancing
brand equity in the marketplace.
Marketers must aim to maintain the bond between the customer and the brand. A
break in the bond can result in brand failure, which may be owing to a distorted
perception of the brand, the competition or the market.57 According to Haig, this
may be due to one or more of the ‘seven deadly sins’ of branding, listed in the
feature that follows.58

The ‘seven deadly sins’ of branding:59

1. Brand amnesia: when a brand forgets what it is supposed to stand for.
2. Brand ego: when a brand overestimates its own importance and capability.
3. Brand megalomania: egotism can lead to megalomania when the brand wants to
expand into every conceivable product category.
4. Brand deception: the act of covering up the reality of the product or brand.
5. Brand fatigue: when companies get bored with their brand and the brand starts to
lack creativity.
6. Brand paranoia: the opposite to brand ego, which generally occurs when the brand
faces increasing competition.
7. Brand irrelevance: when a market evolves drastically, the brand faces the risk of
becoming irrelevant and obsolete.

Ewing, Jevons and Khalil60 believe that the demise of the brand is part of the brand’s
developmental process triggered by consumers aiming to satisfy both their material
needs (constitutive utility) and their self-image (symbolic utility). The overall
marketing implication is to adopt an integrated branding programme. This entails
Copyright © 2012. Juta & Company, Limited. All rights reserved.

assessment within the organisation to understand how culture, competencies and

staff alignment mould a brand’s promise, and assessment outside the organisation
to determine how the brand’s promise has been delivered and received.61 It is
therefore important to become brand-driven through company-wide action. Hence,
according to LePla and Parker,62 integrated branding:
... is [a] way of operating, an overall way of doing business and a way to make certain
a company’s products are based on the right answers to two mutually reinforcing
questions.
●● What do customers value?
●● What does the company do best in relation to what customers want?

Therefore, marketers need to engage in holistic brand-building processes, from

strategy to marketing tactics to effective implementation thereof, using effective
tools or drivers. Similarly, store loyalty may be enhanced by assuring effective
store design and a store image that appeals to the target market. This means that

Roberts-Lombard,312M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 312 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

marketers need to assess what evaluative criteria consumers use in store choice,
how salient these features are, and how their store’s image compares to that of
competitors. Reinforcing tactics such as in-store unadvertised specials may be used
to attract repeat patronage.63
Marketers need to recognise that the increasing level of unemployment and tight
financial circumstances force consumers to place greater emphasis on economy
rather than conveniences and luxuries. Therefore, marketers need to consider using
pricing strategies effectively in their appeals. Cognisance must be given to the
product offering, and to physical, psychological and aesthetic factors, as the strategic
combination of these factors can enhance a store’s image and, hence, patronage
and loyalty. Furthermore, due to the increasing levels of competition, relationship
marketing may play a pivotal role in securing both brand and store loyalty.

CASE STUDY: Assessing brand loyalty

Organisation A decided to find out how many customers buy its brands. Its market
research department conducted research to assess this. Market research teams
approached various households and asked them to collect the packaging of the
products they used for five months. In return, each household received a shopping
voucher for R300 and a large utility bin. The participants (that is, the customers
taking part in the survey) were given five large plastic bags marked January,
February, March, April and May. The research teams collected the bags at the
end of the five months and assessed the extent to which the organisation’s brands
were bought, in what quantities and how often. They tried to link purchases to
price promotions and stock-out conditions. They labelled their product A, and other
organisations’ products B, C, and so on.
Having analysed the results, the following patterns emerged:
●● 35% of the subjects (Group 1) bought the products in this sequence:
AAAAAA.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● 40% of the subjects (Group 2) bought the products in this sequence:

ABABABA.
●● 15% of the subjects (Group 3) bought the products in this sequence:
AAABBB.
●● 10% of the subjects (Group 4) bought the products in this sequence: ABCDEF.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 313
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 313 2022/03/29 11:20 AM

Consumer Behaviour

15.5 Summary
The gradual and continuous decline in the leverage of manufacturers has
increased the need to differentiate products through the marketing activities of
packaging and branding. The essence of successful branding involves the totality
of the brand and the creation of a brand personality – the ‘who’ of the brand.
The brand image is a perceptual phenomenon, and the brand personality comes
from product quality, packaging, important characteristics to consumers and the
importance of the marketer’s mark. To create a successful and enduring brand,
a combination of energies and strategies is needed. The brand concept must be
developed by addressing consumers’ needs and should be a promise of consistent
quality. The success of the marketing effort is equal to the escalating value of the
brand. Therefore, marketers must understand consumers, their needs and their
concept of quality, as well as how they relate to brands. Marketers should also
study the causal relationship between a consumer’s brand attitude and buying
behaviour.
Brand-loyal consumers and brand loyalty allow marketers to develop highly
effective market segmentation and promotion strategies. The development of
brand loyalty depends on marketers acknowledging better ways to develop and
identify better advertising, to guide the successful development of new products
and to improve the overall effectiveness of the marketing mix.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

3. Explain what is meant by brand image.

4. Explain what is meant by brand preference, brand loyalty and brand switching,
and illustrate the influence of knowledge, attitudes and behaviour in determining
brand preference.
5. Explain the relationship between brand loyalty and vulnerability.
6. Illustrate and explain the stages of brand loyalty.
7. Explain how loyalty patterns may be used for segmentation analysis.
8. Explain the behavioural, attitudinal and combined behavioural and attitudinal
approaches to brand loyalty.
9. Distinguish between stochastic and deterministic models of brand loyalty.

Roberts-Lombard,314M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 314 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

10. Explain the difference between manufacturer brands, store brands and generic
brands, using examples.
11. Explain the marketing implications of brand loyalty.
12. Draw up a model of store loyalty and explain the importance of store loyalty to
marketing.
13. Illustrate the evaluative criteria used in determining store patronage and store
loyalty.
14. Refer to the case study and answer the following questions:
A. Assess the patterns of brand loyalty to Organisation A in terms of the
percentage of subjects or households that displayed unstable, divided and
undivided loyalty.
B. Which group is likely to engage in brand switching when the price of a
competitor’s brand falls?
C. Which group is likely to search for Organisation A’s brand in another store
when the store they usually visit is out of stock?
D. Which group displays variety-seeking behaviour?
E. Which group displays brand loyalty and brand preference?
F. What kind of message would you direct to each of the market segments if
you were aiming to optimise market share?
G. How would a marketing manager use this kind of information to develop a
strategy to optimise market share?

Multiple-choice questions
1. Which of the following statement(s) is/are false?
A. Brand image can add value to a product and play a critical role in brand
preference.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

B. A consumer’s past experience and social and marketing influences

determine brand preference.
C. Brand preference is constant.
D. Brand image influences brand preference.
E. Loyalty is a true measure of brand preference.
2. Brand-loyal consumers …
A. buy the same brand over time simply because of the need for convenience
B. hold strong beliefs about the brand’s quality
C. use price as the most important evaluative criterion when comparing products
D. can become vulnerable to competitors’ brands if prices are reduced
very slightly
E. none of the above.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 315
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 315 2022/03/29 11:20 AM

Consumer Behaviour

3. Brand loyalty is lower when …

A. fewer brands are available for consumers to choose from
B. more products of greater value are bought
C. prices are relatively constant among competing brands
D. all of the above
E. none of the above.
4. Which of the following statement(s) is/are true?
A. The low-involvement consumer cannot be considered to be brand loyal.
B. Brand commitment implies brand loyalty and brand loyalty implies brand
commitment.
C. Brand vulnerable consumers buy a brand but like other brands equally
well.
D. A and C.
E. All of the above.
5. Which one of the following has the greatest potential to trigger brand trial?
A. Free samples
B. Mobile advertising on buses and car windows
C. End-of-aisle displays
D. Shelf positioning
E. Billboards.
6. Which of these brands is widely marketed, dominates advertising and
comprises a major share of consumer purchases?
A. Manufacturer brands
B. Store brands
Copyright © 2012. Juta & Company, Limited. All rights reserved.

C. Generic brands
D. Private brands
E. A and D.
7. Which brand’s sales have surpassed all of the others, and at a much higher
rate?
A. Manufacturer brands
B. Store brands
C. Generic brands
D. Private brands
E. National brands.

Roberts-Lombard,316M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 316 2022/03/29 11:20 AM

Chapter 15: Consumer loyalty

8. Which of the following is a functional attribute that influences store image?

A. Architecture
B. Colour
C. Advertising
D. Convenience
E. Interior design.
9. Which of the following relates to product offerings, and has the potential to
influence store loyalty?
A. Variety
B. Promotion
C. Pricing
D. Guarantees
E. All of the above.
10. Which of the following is an aesthetic factor that has the potential to influence
store loyalty?
A. Physical facilities
B. Music
C. Store atmosphere
D. Location of store
E. All of the above.
11. Which of the following shopping pattern characteristics influence brand
loyalty?
A. Store loyalty and shopping proneness
B. Price fluctuations
Copyright © 2012. Juta & Company, Limited. All rights reserved.

C. The availability of brands

D. How established a brand is
E. A and D.
12. Which of the following is a market structure characteristic that has the potential
to influence brand loyalty?
A. Amount purchased
B. Time between purchases
C. Availability of brands
D. None of the above
E. All of the above.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 317
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 317 2022/03/29 11:20 AM

Consumer Behaviour

13. When a brand forgets what it is supposed to stand for, it is referred to as …

A. brand megalomania
B. brand amnesia
C. brand paranoia
D. brand irrelevance
E. B and D.
14. When companies get bored with their brand, and the brand starts to lack
creativity, it is referred to as …
A. brand fatigue
B. brand amnesia
C. brand deception
D. brand paranoia
E. brand irrelevance.
15. Brand failure may occur as a result of …
A. brand ego
B. brand amnesia
C. brand deception
D. B and C
E. All of the above.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard,318M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-20 12:19:29.

Consumer Behaviour 5E.indb 318 2022/03/29 11:20 AM

Chapter
THE ONLINE WORLD AND
17 CUSTOMER BEHAVIOUR
Learning outcomes
After studying this chapter, you should be able to:
■■ Discuss the unique nature and benefits of new technologies such as the internet, the
web, e-marketing, e-commerce and social media
■■ Explain the role of the online world in facilitating customer behaviour
■■ Describe the new online paradigms affecting customer behaviour
■■ Discuss how the COVID-19 pandemic has changed online consumer behaviour
■■ Describe the factors that an organisation should consider when embracing online
technologies
■■ Demonstrate how technology can be used in support of customer decision making
■■ Explain what is meant by omnichannel shopping
■■ Identify some of the unique features of online customer behaviour.

17.1 Introduction
Bursting onto the scene in the early 1990s, the World Wide Web (or just ‘the web’)
has had a significant impact on our business and social lives. The statistics that
follow provide some indication of the likely impact of the digital world on the
overall global economy. Bear in mind though that there is no single consistent
source of online statistics. The statistics vary considerably and often use has to
Copyright © 2012. Juta & Company, Limited. All rights reserved.

be made of different sources, from different years, which makes comparison very
difficult. The current internet population is estimated at over 5.2 billion users at
the time of writing (Sept 2021 – a growth of over 40% since 2017), representing
almost 66% of the world’s population.1 This number is expected to grow to over 6
billion (about 75% of the world’s population) by 2025.2 The focus of this book is on
the customer, so as far as e-commerce is concerned, global business-to-consumer is
expected to reach US$4.2–4.5 trillion in 2021.3 Notwithstanding the devastation
caused by COVID-19 to the world at large, the pandemic has contributed to this
growth in e-commerce; most of the world has been forced to remain indoors and
many have depended on online sources for their everyday purchases, including
food and groceries, and even their daily meals. The year-on-year growth compared
with 2020 is estimated to be up by 38%.
The expectations are that e-commerce will expand by a further US$1.4 trillion by
2025, according to Euromonitor International, accounting for half of global retail
growth by 2025.4 Grand View Research, in turn, estimates that the B2C market will

Consumer Behaviour 5E.indb 347 2022/03/29 11:20 AM

Consumer Behaviour

be worth US$7.6 trillion by 2028, representing a compounded annual growth rate

of 9.7%.5 Research by Sleeknote reveals that there are 2.14 billion global shoppers,
suggesting that over 40% of internet users are also online shoppers.6 This figure
of 2.14 billion represents a growth of approximately 29% over the past five years.
However, online shoppers do not actually buy goods every time they shop online.
Sleeknote reports that only 2.17% of e-commerce visits convert into purchases.7
The average online expenditure of shoppers in the UK was about US$4,500 (about
R90,000) in 2018, the highest of the developed countries, while South Africa was
the thriftiest of the lesser developed nations included in the research, with an
online spend of only US$171 (1.04% of the average salary in the country).8
As far as B2B e-commerce is concerned, the size of the global market was estimated at
US$7.7 trillion in 2021, much larger than B2C e-commerce.9 This figure is expected
to grow by a CAGR of 18.7% from 2021 to 2028, to reach US$25.6 trillion.10 Based
on these statistics, the B2B part of the web clearly represents a massive market
environment that organisations simply cannot afford to ignore, especially if this
is added to B2C e-commerce. In this chapter, we look at the significance of this
growing online market from a marketer’s point of view, with particular focus on
customer behaviour.

17.2 The three main functions of the web

The figures we provide above underline the growing importance of the web as a
channel for B2C transactions. But what is the web and why has it become so popular?

The web is essentially a way of viewing and organising the information

that is being sent across the internet.
The internet, in turn, is a global network of computer networks. The value of linking
together these networks around the world is embodied in the three main functions
of the web, namely a communications function, an information function and a
Copyright © 2012. Juta & Company, Limited. All rights reserved.

business function.

17.2.1 A communications function

The web enables cheaper, faster and more effective communication
between organisations and their customers.
In this regard, the web puts powerful tools such as email, auto-response facilities, dis
cussion forums, online chat services, interactive voice response, video conferencing
and internet telephony in the hands of marketers.

Roberts-Lombard,348M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 348 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

17.2.2 An information function

The web enables organisations to gather information about customers,
including their profiles, online behaviour, and wants and needs.
At the same time, the web makes it possible to share vast amounts of information
with customers, especially marketing information and self-help information.
Consider how firms such as Builders and other retailers of home products make
useful DIY information available to their customers on their respective websites.
Such information is invaluable in the customers’ decision-making processes and
helps in the relationship-building process between organisations and customers.
It goes beyond just the front-end of sharing information on DIY projects, but
integrates buying opportunities for customers that do not have all the necessary
items to complete the project, with the firm’s product catalogue and e-commerce
facilities, allowing them to buy the items they do not have.

17.2.3 A business function

The web can be used as a marketing tool in order to advertise products,
transact sales and brand a company, as well as to collect information
about customers and markets
in order to understand them better. At the same time, the web can be used just as
effectively as a business tool. It can provide customer support, integrate suppliers and
customers into the supply chain, improve customer relationships, enable electronic
procurement, facilitate electronic billing and payments, and much more. It can
also bring about cost savings through automation and integration with legacy
systems. Legacy systems generally refer to older types of IT systems and applications
that are mainframe-based and written in Cobol or other first-generation languages.
They also sometimes refer to more recent server-based technologies and applications
that may already have been displaced by newer systems.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

17.3 The internet versus the web

The terms ‘internet’ and ‘web’ are often used as if they mean the same thing. However,
they are essentially different. The internet, as we have already said, includes the
networking infrastructure and protocols that allow computers to communicate with
each other, while the web represents a user-friendly, point-and-click environment
that serves as an interface with the internet. The web provides us with a graphic way
of organising and viewing the information that we find on the internet.

17.3.1 Advantages of the web as a business tool

With the web serving as a ‘window’ to the world of the internet, it is useful to
consider the advantages of using the web as a tool in business, particularly in
customer behaviour. The advantages are as follows:

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 349
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 349 2022/03/29 11:20 AM

Consumer Behaviour

●● It is a multimedia environment. Video, sound, text, graphics and animations

can be displayed on the web. This translates into a powerful business presen
tation tool, as well as an easy-to-use tool from the customer’s point of view.
●● It is a computer environment. The web can be integrated with other information
technology (IT) infrastructure, such as software applications, databases
and networks. This enables an organisation to integrate tightly and share
information gathered about a customer among various applications. For
example, the information supplied through an online registration form can
immediately be entered into customer management applications such as
Keap, Zendesk Sell, Netsuite CRM, HubSpot Sales Hub and Salesforce Sales
Cloud. These are all examples of e-commerce CRM software solutions. The
aim behind these software solutions is to capture as much information
about customers and to use this insight to serve the customer as effectively
as possible. However, before you ‘dive’ in and collect customer information
indiscriminately, be aware that the gathering of customer information
is protected by the PoPI Act and all marketers should take the effort to
familiarise themselves with this act. You might want to visit the following
two sites to learn more about the PoPI Act: http://www.popia.co.za and https://
www.gov.za/sites/default/files/gcis_document/201409/3706726-11act4of2013prote
ctionofpersonalinforcorrect.pdf.
●● It is a hyper-mediated environment. It can bring or link together information
from other sources spread across the globe, thereby helping to influence
customer decision making. For example, an astute car manufacturer may
offer links on its website to an independent report about the great after-sales
service it provides or perhaps to an article that highlights the fact that the
car brand/model that it represents won the Car of the Year award in Europe.
In so doing, this hypermediated information helps to convince customers
to buy the car. Similarly, as mentioned earlier, many e-commerce sites are
now using links to a wealth of topics of interest to their customers to support
them in their areas of interest and ultimately to encourage them to buy from
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the store. Builders, for example, have a section on their website called ‘DIY
Inspiration’ and on this part of their site they have many DIY projects such
as making a garden bench, installing a bedroom headboard and making toys.
●● Large amounts of information can easily be stored and updated on the internet,
and this information is available to anyone with access to the internet.
This is another powerful feature, as product details and other marketing
information – useful in the decision-making process, but normally too much
to include in a television, radio or print advertisement – can now be shared
with customers through the web.
●● Any information disseminated on the web by a firm is immediately available
to a global audience. Customers are no longer only local.
●● The information is interactive, which is an important component in building
customer relationships. Customers can complete a reply or order form, access
frequently asked questions, supply information through an online survey
form, or send email messages to the company concerned. For example, in

Roberts-Lombard,350M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 350 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

showing a customer how to make a garden bench, there can be links to all
of the tools and consumables required to build the bench on the Builders
website, so they can encourage or support their customers in their DIY
projects with each online purchase and home delivery.
●● The web is an ‘always on’ environment – available 24 hours a day, every day of
the year. This makes it possible to deliver customer value all the time.
●● The web is a flexible environment. It can add or change information at the last
moment, which is often extremely difficult to do using other marketing media.
Again, this makes the web a valuable tool for keeping customers informed
of changing circumstances. Much of the shopping can be automated, so
when a product is no longer available (or even long before it is sold out),
the system can automatically generate a new order into the supply chain
and warn customers of short stock (encouraging them to buy before stocks
run out) and out-of-stock situations. Ideally, out-of-stock situations should
be avoided, but regrettably, South African retailers are not as efficient as they
should be with their e-commerce activities, and out-of-stock situations are
commonplace. There is nothing more frustrating than visiting a website of a
local retailer to find that the majority of the products that you are interested
in are out of stock.
●● Many web-based services can be automated (as alluded to above), which saves
an organisation money yet enables it to serve its customers continually.
Automation is also an important component of customisation and
personalisation, allowing the organisation to serve customers as individuals.
●● If websites are well designed, the web can be an intuitive and easy-to-use
channel that facilitates interaction between customers and the organisation,
and makes the purchase process easy, quick and stressless. However, many
firms still have awkward and complex e-commerce sites that complicate the
consumer decision-making and purchase process.
●● The web allows us to reach the masses. Currently, the global online marketspace
comprises over five billion users, a figure which is expected to continue to grow.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Organisations can transact sales directly on the web, making it possible

for income to be generated through this channel. This is a powerful
feature, as an organisation can close a deal immediately with a satisfied
customer – an important element of the decision-making process. The
question of ease of purchase, improved payment gateways and payment
procedures, and the role of trust in the minds of consumers, are important
focus areas for e-commerce firms.

Strictly speaking, e-business includes all forms of electronic business

(that is, both online and offline), but popular convention sees e-business
as referring to online business.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 351
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 351 2022/03/29 11:20 AM

Consumer Behaviour

17.3.2 The web, online business and customer behaviour

Conducting business on the web is referred to as e-business. E-business includes
all online activities associated with the entire business value chain from supplier
to customer and beyond. E-business is a broader concept than e-commerce.
E-commerce is primarily about transacting sales online, be it business-to-consumer
sales or business-to-business sales. As such, e-commerce is almost entirely a subset
of e-business. We use the term ‘almost’, because e-government, which is very
different from e-business, may also incorporate an e-commerce component where
citizens make payments. Thus, e-commerce overlaps both e-business (mostly) and
to some extent e-government.

E-tailing refers to a company that runs an online store and that sells
retail goods to consumers.
A term related to e-commerce is e-tailing. E-tailing is a subset of e-commerce (and
hence also of e-business). The terms are similar and often confused. E-tailing
basically refers to a company that runs an online store and that sells retail goods
to consumers. Because an online store is also about transacting sales, e-tailing
and e-commerce are two similar, yet subtly different concepts. On the one hand,
when the primary business of a company is to sell retail goods online to a mainly
consumer market, then the business is an e-tailer and what it does is e-tailing.
On the other hand, when a business sells goods online as a secondary purpose of
its business, then this is more likely to be called e-commerce.
Another common term found in the academic literature that describes the online
business realm is e-marketing.

E-marketing is again different from e-commerce, as it deals with

E-marketing remains a business activity and is thus, like e-commerce, a subset of

e-business. At the same time, both an e-commerce business and an e-tailer will
probably engage in e-marketing to ensure that their sites are promoted properly,
and thus e-marketing is a subset of both e-commerce and e-tailing. Note that email
marketing is a form (and subset) of e-marketing, as is mobile marketing (marketing
via cellular phones).
A relatively new term encountered in the literature is social media. Social media can
be defined as the various forms of electronic communication channels through
which users create online and peer-to-peer communities to share information,
ideas, personal messages and other content such as videos.11
The channels referred to include Facebook, Twitter, LinkedIn, YouTube, Instagram,
Pinterest and blogs (web logs or online ‘diaries’), to mention a few. See Figure 17.1
for an overview of how these different forms of online business relate to each other.

Roberts-Lombard,352M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 352 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

E-commerce E-business
E-tailing E-government

Mobile marketing

E-mail marketing

Social media marketing

E-marketing

Figure 17.1 Circles within circles: the relationship between various forms of online business

At the same time that these online technologies have been grabbing the attention
of the business community, businesses have also become more customer-centric,
providing customer services and creating customer value in order to remain
competitive. Indeed, customer care is no longer a differentiator, but a minimum
requirement. To this end, market-intelligent organisations are:
●● viewing each and every transaction as an investment in a long-term customer
relationship; that is, in lifetime customers
●● improving two-way, any-time, any-place communication with customers
●● Involving customers in improving their service levels by asking for constant
feedback from customers
collecting and sharing this customer interaction data across the value chain
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●●

●● segmenting customers into different value and profile groups

●● operationalising the use of customer information; that is, putting it to work
●● creating alternative channels or ‘touch points’, such as websites, kiosks and
call centres, for customers to reach and do business with them
●● enabling customers to take control of and personalise the channel of choice
●● ensuring that customers receive consistent service
●● creating communities of like-minded customers
●● using technology to support and enhance the interaction between customers,
themselves and other participants in the value chain
●● reducing the prospect-to-sale cycle time by enabling immediate online buying.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 353
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 353 2022/03/29 11:20 AM

Consumer Behaviour

17.3.3 The advent of social media

In recent years, a new form of online technology has been taking the world by
storm, namely social media.

Social media enables users (that is, customers) to share information

with other customers using online technologies.
This sharing of information usually takes place in the form of short conversations
a user has with a community of linked friends, colleagues and other like-minded
individuals. This information is mostly of a social nature (hence the name ‘social
media’), but can also be of a business nature. For example, a customer who uses
social media to complain to his or her friends and colleagues about the bad service
received from a company, or alternatively informs them about a good deal he or
she has received from another company, is an example of how social media can
influence customer behaviour. Because customers tend to trust the opinions of
their friends and colleagues, this form of peer-to-peer communication has proved
very influential in shaping customer behaviour. Today, about 4.2 billion users use
social media, almost the entire online population (of 4.7 billion); this figure has
been growing by about 13% per annum and is expected to reach 4.4 billion by
2025.12 Simply because of its pervasiveness, social media are expected to have a
dramatic impact on customers’ behaviour towards businesses. According to Statista’s
2021 statistics, Facebook already has 2.91 billion users, YouTube 1.86 billion,
WhatsApp 2 billion, Instagram 1.1 billion, Pinterest 0.4 billion, and Twitter
0.3 billion (2019 figures for Twitter).13
To take advantage of social media, organisations need to listen to the ‘conversations’
that are taking place among the company’s customers. More importantly, they
need to take heed of what customers are saying about them and react to these often
fast-changing views. Organisations should realise that it is impossible to stop these
conversations from taking place. Confronting ‘negative’ conversations with threats
or with counter-arguments is unlikely to have the desired effect.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

The best strategy is to try to shape the conversations by involving customers in

an open and honest dialogue. Organisations should acknowledge mistakes, reward
loyalty and provide good value. Organisations that fail to do this will quickly be
exposed by the social net of shared opinion.

17.3.4 Social media as a business channel

Most of the mainstream social media channels have facilities for firms to advertise
their product and communicate with and reach out to customers and prospective
customers, whether it be about creating brand awareness, generating more
leads or even directly selling products on the social media channel in question.
Facebook, for example, makes it possible to use Facebook Page Insights to see who is
engaging with your content, while other tools are available to undertake sentiment
analysis. You should study your competitors to see what channels they are using.
Consider those channels that deliver the best customer engagement, and consider

Roberts-Lombard,354M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 354 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

what type of content is best for your channel of choice. Videos will obviously work
best with YouTube, while punchy one-liners are probably better suited to Twitter.
Do not forget your budget and seek out the right skill set to help you maximise your
social media efforts. It is unlikely that you have the skills to do this yourself.

17.4 Online technologies support customer-centrism

The move to customer-centred organisations and customer relationship management
(CRM) (see Chapter 16) is being accelerated by online technologies that now make
it possible to facilitate and automate customer interaction and two-way or peer-
to-peer communication at any time and place. e-CRM systems are able to track
customers and their preferences, habits and buying patterns, and to remember
them when they return. This information is made actionable and repeatable, which
means that organisations can proactively react to the behaviour of customers by
personalising their online experiences.
New e-CRM systems should be flexible enough to adjust constantly and regularly to
changing business rules. The firm then builds a predictive model to address alternative
future scenarios, before putting the changes into place. These new changes, or
‘adjustments’, restart the process. In this way, the firm creates a self-sustaining closed
loop to optimise its relationship with customers, as shown in Figure 17.2.

Model

Back-end Company
Analyse Company Customers Adjust
systems website

Customer support
User-friendly design
Sales information
Interactivity

Track

Figure 17.2 An online model for an e-CRM system

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 355
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 355 2022/03/29 11:20 AM

Consumer Behaviour

We need to stress that e-CRM efforts represent multi-channel strategies. The web
alone is seldom the best solution. Indeed, organisations are increasingly turning to
web-enabled call centres as a more encompassing solution Other technologies such
as IVR (interactive voice response) systems, smartphone technologies together with
Android and iPhone apps and interactive kiosks are also being considered as part of
a total e-CRM solution. However, focusing on too many channels is likely to dilute
the CRM effort of firms and it is recommended, therefore, that an organisation
identify two or three of the most appropriate technologies and channels that it can
use to support customers and build relationships, rather than attempting to use a
large mix of channels.
Finally, community building is an important component in the e-CRM drive. Com
munities generate a sense of belonging for customers and provide a familiar
environment where they can exchange ideas and information, share interests, build
relationships, solve common problems and obtain support from other community
members. As such, they serve as a powerful tool to help connect customers with
the organisation.

17.4.1 The danger of the ‘invisible customer’

Almost paradoxically, the use of technologies such as the web, call centres and
interactive kiosks to facilitate customer interaction with organisations is creating a
situation where customers rarely have face-to-face contact with these organisations
– inevitably, we are moving into an era of the so-called ‘invisible customer’.14 This
situation is a serious threat to organisations, as customers may be treated more
casually and indifferently than before. Clearly, this negates the very purpose of
the use of technology, which is to bring customers closer to organisations. It is
therefore essential that organisations consider three important factors when
embracing technology:
1. Organisations must take care not to use technology merely for its own sake.
The implementation of a customer-orientated technology must serve a clearly
Copyright © 2012. Juta & Company, Limited. All rights reserved.

understood and specified purpose.

2. The technology must be tried and tested to ensure that it fulfils its purpose.
To begin with, it should always be available – there must be no engaged
signals or websites that are down. Once connected, the technology should
represent a positive first contact, stressing interest and concern. It should also
facilitate the exploration of solutions to problems that exist either on a self-
service basis or through the efforts of an agent. The experience should instil a
‘positive glow’ in customers. To this end, the interaction needs to be speedy,
and all the relevant content must be made easily available to customers. In
addition, the system should put the opportunity to transact a sale within
easy reach of customers, and there must always be a follow-up.

The organisation must make the effort to keep the personal touch,
especially for its more valued customers.

Roberts-Lombard,356M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 356 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

Organisations with physical infrastructure, such as retail stores, have an

advantage in this regard, as the stores represent touchpoints where customers
can enjoy human contact and assistance.
3. Segmenting customers into different buying categories in order to establish
personal contact with more important and lucrative customers will be an
essential task of larger organisations. Technology will also then be used to
address the masses and to support physical interactions in order to reduce
the drag of time and place on the consumption process.

17.4.2 Dealing with online paradigm shifts

As organisations become familiar with the nature and functioning of the virtual
world and the technologies associated with it, there are certain paradigms that they
need to deal with. We now focus on these paradigms.

The impact of COVID-19

The COVID-19 pandemic has changed everything. With the world (still) in lockdown
and with no clear, certain vision as to what will happen in the near future, the one
thing we can be certain of is that the online world has firmly embedded itself in
our lifestyles, our work environments, our social life and our psyche. With remote
working, lockdown and social distancing, humankind has turned to the internet as
a solution for entertainment, socialising, learning and shopping. This is unlikely to
change much, but the tools, processes and dynamics may well change.

Shopping is about delivery

The lockdowns we have experienced have placed greater emphasis on the issue of
delivery. It is no longer good enough to be able to buy, we also want delivery to
our homes, and many online retailers such as Takealot, Superbalist and others have
stepped up often to provide a free delivery service. It is therefore still frustrating
Copyright © 2012. Juta & Company, Limited. All rights reserved.

when some firms – large firms – charge for delivery. The sentiment in the marketplace
is that we will pay if the delivery is over a certain distance or below a certain value.
Customers are generally happy with this. However, firms that insist on charging
for delivery will slowly feel the pinch. In fact, customers are not just demanding
free delivery, but same-day delivery (rather than the old way of having to wait a
week or more) and again there are firms that are stepping up to meet this demand
– Checkers60 being one. Being able to order and have your products delivered in
an hour is a significant competitive advantage. It is interesting to note that many
online stores based overseas are able to provide delivery in a week or even less, so
the shopping world is now a global world.
Besides developing an easy-to-use online shopping environment, e-commerce firms
must also provide workable and affordable delivery systems. Makro, Takealot and
others have provided remote lock-up solutions whereby the goods get delivered to
a given location and placed in small lockers (ideal for small items). The customer
is then informed of these lockers and provided with a password to unlock the

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 357
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 357 2022/03/29 11:20 AM

Consumer Behaviour

locker in question. The lockers are located at safe and accessible locations and the
customers can pick up their goods at their convenience, at no cost.
Other firms (for example, Makro) are doing deals with logistics specialists that
focus on the delivery side of the transaction. Other firms choose to do this inhouse.
Makro works with OneCart, as does Woolworths, Pick n Pay, DisChem and Food
Lovers Market, while Checkers provide their own Checkers60 service, which promises
delivery in 60 minutes – that is quite a challenge. Bear in mind that the biggest issue
with delivery is not the delivery itself, but the ‘picking’ of the items purchased.
There is also a move afoot to use drones to aid in delivery and this technology is
already well researched and being piloted in certain parts of the world.
There is a frustration still with delivery firms that seem incapable of keeping to a
specific ‘time window’ of delivery. Instead, there is a perception that the customer
(whether they are working or not) should be available the entire day so that the
delivery firm can deliver at their convenience, not the customer’s convenience.
With the technology available today, it is difficult to believe that delivery firms
cannot plan their deliveries with greater accuracy and reliability, thus improving
customer satisfaction and their own profitability, when they arrive at a home
outside of the agreed-upon time range to find – to their surprise – the home-owner
not there, resulting in them having to come back. Perhaps as customers, we should
be vocal and demanding that delivery firms keep to the time ranges agreed upon.

Disintermediation and re-intermediation

In the pre-internet environment, customers relied heavily on intermediaries, such
as retailers and wholesalers, in the consumption process. These intermediaries
provided customers with broader and more convenient access to products
and information about products, and thereby added the utility of time, place
and information – including ‘expert advice’ – to the functional utility that the
product inherently offered. At the same time, these intermediaries served as the
producer’s eyes and ears in the marketplace. They represented an essential channel
of information about customer wants and needs. Therefore, building an effective
Copyright © 2012. Juta & Company, Limited. All rights reserved.

distribution channel – one that can fulfil the above roles – has always been an
essential element in the success of any producer.
The web is changing this. By using the web as a transaction tool, it is now possible
for organisations to put the ability to buy inside the customer’s home or office.
What is more, this facility is available 24 hours a day, 365 days a year. The utility of
time and place has thus been extended to its maximum benefit.

The web brings the producer into direct contact with the final customer
and in this way disintermediates its previous intermediary partners (consider Levi
jeans and Nike, for example, selling their products online). Dislocations occur
among producers, wholesalers and retailers as a result of disintermediation. This
leads to another trend, namely, re-intermediation, as new categories of online
intermediaries – also referred to as ‘cybermediaries’ or ‘infomediaries’ – are created.
Cybermediaries bring value to customers by creating new ways of facilitating the
interaction between producers and their customers.

Roberts-Lombard,358M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 358 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

EXAMPLE

Yuppiechef (http://www.yuppiechef.co.za)
Yuppiechef is a web e-tailer that has created a niche for itself by selling a wide
range of kitchen utensils aimed at upmarket homeowners and aspiring chefs. While
previously these products might only have been sold by large traditional retailers
such as @Home and Mr Price Home, or by wholesalers such as the Culinary
Equipment Co., the range on offer from these traditional suppliers was limited and
comprised popular everyday items rather than specialised and expensive utensils.
Yuppiechef has been successful in offering an alternative source of supply, thus
becoming an online intermediary between customers and the manufacturers and
suppliers of these products.

Omnichannel shopping
In light of the discussion in the previous section where we spoke of disintermediation
and re-intermediation, a new concept is taking hold, namely omnichannel shopping.
This concept can be defined as an approach by retailers to make their products and
services seamlessly available to customers on a variety of channels and platforms/
devices. This is where an online retailer uses the web, Facebook, live chat, email,
the phone and even physical stores to deliver a similar service to their customers
irrespective of the interface or tool the customer chooses to use. So, in a physical store
the purchase interface will no longer be a salesperson but a digital teller that works
and functions the same way the app does on a mobile phone or on a laptop. Consider
how McDonald’s works today – generally, when you purchase at a McDonalds, you
interact with a digital kiosk that works the same way their online app does.
In the omnichannel paradigm, bricks-and-mortar stores still have a role to play
(Amazon, for example, has increased the number of physical outlets it has). There
may not be as many of them and they are located at strategic points to facilitate
their reach to customers. Customers that want to, can still shop in a store, get sales
advice or complain in person, but instead of multiple stores, there are now only
Copyright © 2012. Juta & Company, Limited. All rights reserved.

a handful of stores, perhaps as little as one per city. The same is happening with
banks and most readers will have experienced this. Banks are mostly online today,
with just a few remaining branches. The secret of omnichannel, versus a multi-
channel solution, is the integration of the system and functionality of the purchase
interface, the payment gateway, the shopping cart and delivery mode (seamlessly,
as was mentioned earlier). Multi-channel solutions are similar, but they tend to
function as separate solutions.

Personalisation and customisation

Providing customers with value is about meeting their individual needs.
This is where customisation and personalisation come into the picture. Customi
sation is the adaptation of a product or service by the supplier or producer to meet
the individual needs of a customer. Personalisation exists where customers are in
control and choose for themselves what they prefer to have from a range of options.
The web has the power to deliver both services.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 359
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 359 2022/03/29 11:20 AM

Consumer Behaviour

EXAMPLE

Customising your new car

Consider your own personalised car, shirts, phone covers, jewellery, vitamins, meals
or shoes – it is now all available to buy on the web. 4IR companies ranging from
Nike (https://www.nike.com/nike-by-you), through The Mighty Company (https://
themightycompany.com/collections/made-to-order) and HomeMeal (https://home
meal.de), to BMW (https://www.bmw.co.za/en/configurator.html) are putting choice
and personalisation in the hands of their customers. Customers can now create
personalised products and have them produced and delivered generally within
hours or days at the most, depending on the product (a car, for example, may take
longer). All of these services are available on respective company websites. This is
a genuine opportunity for manufacturers to provide additional value to customers.
The next logical step would be to integrate this service with the production
systems located in the manufacturing plant so that customers can order and have
manufactured for themselves the car they have just created in cyberspace, without
input from the company – it is all automated. There are many companies already
doing this. Customers can even view snapshots of their products at various stages in
the production process – an effective way of bonding the customer with the car and
with the organisation. In South Africa, BMW (referred to above) offers its customers
the opportunity to create a virtual car (see http://www.bmw.co.za/virtualdealer), but
if a customer wants to order that car, they must deal with a real salesperson. In
Germany, everything can be done online.

Shopping on demand
Customer behaviour in the future will increasingly be aimed at shopping and
consuming on demand, without having to be restricted by time and place. Samsung,
for example, is already advertising a fridge that will automatically detect when a
household has run out of things like milk, butter, cheese and eggs, and which will
Copyright © 2012. Juta & Company, Limited. All rights reserved.

then order these items on the internet from an online supplier.

Shopping on demand will include any time, any place procurement and
consumption.
As yet, this is not an easy matter to deal with from a supplier’s point of view, but
it is one that will nevertheless drive the production and distribution strategies of
future organisations.

Customers as co-producers
Customers can be expected to become involved in designing and customising the
products they buy.

In the future, customer-centred organisations will open a direct channel

between themselves, their production processes and customers.

Roberts-Lombard,360M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 360 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

Customer complaints and requirements will be fed directly to the product designers
and production engineers. This information will drive their activities and thinking,
resulting in products that more closely match customers’ needs.

Blurring between customer and business markets

As technology enables an increasing number of people to work from home, or at
least conduct some of their business tasks at home, and as a growing number of
workers undertake some of their personal tasks at the office, there will be a blurring
between customer and business market boundaries. Already we see a movement of
home-based services and technologies to businesses, and vice versa. Many larger
corporations, for example, provide laundry collection services and gyms at the office.

A power shift to customers (customer pull)

Although the saying ‘the customer is king’ has been used for a long time,
organisations have not always practised the idea in their dealings with customers.
However, there is now a genuine move towards putting power in the hands of
customers – it is one of the few competitive advantages left.
Until now, the marketer has largely been in charge. The thinking was that if a
company ‘pushes out’ a strong enough marketing message, it will draw customers.
This is often referred to as push marketing, as the message is pushed to the customer.
Traditional advertising media such as TV, radio and print media are examples of
typical push media, which give customers little choice about the message they
receive. New technologies are changing this paradigm, and

customers now have the power to choose whether or not to receive the
message marketers are putting out.
There has consequently been a move from supplier-push to customer-pull
marketing, and organisations are using interactive media such as the web, cell
Copyright © 2012. Juta & Company, Limited. All rights reserved.

phones, interactive kiosks and SMART-TVs to this end.

The automation of consumption

The power of technology to automate regular and standard activities, combined
with the general shortage of time that an increasing number of customers have
available, is likely to lead to the automation of consumption. Online grocery
shopping is one such example. As a customer uses an online shopping service more
and more, so the service learns what the customer usually buys. Soon the program
begins to function proactively, identifying commonly bought goods and asking
the customer whether they want to repeat the purchases. The program could also
learn to track the average time it takes for a customer to consume typical items of
groceries and could proactively suggest that certain items be bought at given times.
As this system grows more ‘intelligent’, the customer pressed for time may leave the
entire shopping process up to the program, especially if this can be combined with
the above-mentioned shopping-on-demand service that could ‘fill any gaps’.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 361
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 361 2022/03/29 11:20 AM

Consumer Behaviour

17.4.3 Facilitating customer decision making through online media

We discussed the decision-making process in Chapter 12. To review: the process
includes problem recognition, information search, the evaluation of alternatives,
the buying of goods and the post-buying experience. The online world puts
powerful tools in the hands of marketers to facilitate each of these activities, as
shown in Figure 17.3.

Problem Information Evaluation of Post-buying

Buying
recognition search alternatives experience

Figure 17.3: Facilitating the customer decision-making process

We now explore each of the activities in the following sections.

Problem recognition
While customers usually know when they have a problem, this is not always the case.
They may either be completely unaware of a problem, or they may sense a problem
but not know what it is or what they should do about it. Let us take as an example
someone who is experiencing problems with her computer. She is typing a text
document, and her word-processing package appears to be inserting spaces randomly
in the middle of words. As a novice to word processors, the person may assume that
this is normal practice. She does not realise that the program’s autospacing feature
is turned on and that this is the cause of the problem. Imagine that there exists an
astute website – The Typist’s Friend – aimed at helping users to improve their word-
processing capabilities. It offers an in-depth, online help-desk that the frustrated user
can search through and, simply by entering ‘spacing problem’ as a search term, be
directed to information that helps to solve her problem.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

This is a simple example, but the idea could just as easily be applied to, for example,
an injection-moulding company experiencing the irregular rejection of moulded
plastic containers from its plant because of the use of a molten plastic raw material
with a higher-than-normal viscosity. In the online era, the supplier of the injection
moulding plant would run a website and call centre that its customers could access
in order to help them with problem solving.

Using collaborative and interactive methodologies, such as collaborative

browsing and remote video cameras, organisations can provide a
higher level of remote assistance to identify and solve problems.
For example, The Typist’s Friend could offer a daytime expert advisory service
using collaborative browsing technology. This would allow an expert at the site
to ‘take control’ of the user’s browser via the internet and experiment with the
word-processing package to work out what is wrong with it. Once the expert has
identified the problem, they can explain to the user how to fix it in the future – the

Roberts-Lombard,362M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 362 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

user simply watches the screen as the expert moves the cursor around, showing
the user where to go and what options to select to correct the problem. The expert
would generally use the telephone to explain to the customer what they are doing
on the screen.

Information search
Online technologies put huge amounts of interactive multimedia information at
the disposal of decision makers.

Modern search algorithms and artificial intelligence make it easy to

find the specific information required for problem solving.
Indeed, there are probably few managers today that have not at some stage used the
internet in the workplace to find information.
Imagine that an insurance salesperson is advising a client about a particular life
assurance product. The customer says he does not know what life assurance policies
he currently has. The broker enters an identification code, the customer’s surname
and a short query into her cellphone’s SMS facility and sends this message to the
insurance company. The message is automatically recognised and handled by the
insurance organisation’s IT system, a query is generated and submitted to the
database, the relevant information is obtained from the database and converted
into SMS format, and a reply is sent to the broker’s cellphone, listing the customer’s
life policies and their respective values. This service is also available online for
customers to access for themselves. In this way, an information search – using a
question such as ‘What life policies do I have at present?’ – can assist in problem
identification, leading to the question: ‘What life policies do I still need, if any?’

environment for comparison shopping. More and more websites offer a service
that allows us to choose a particular set of specifications for a product and obtain
comparative prices from different suppliers. Besides pricing information, these
comparisons provide detailed product information, reviews, ratings and a host
of other value-added services. CD-ROMs and interactive kiosks are alternative
technologies that we can use for comparison shopping.
Of course, the customer could instead simply visit the corporate websites of
competing product suppliers to learn more about what each organisation has to
offer, assuming that the customer knows who the competing suppliers are. The
information may not be available within a single, easy-to-compare table or web
page, but it is probably with this method that most customers compare products
online. Indeed, although online shopping is still growing,

many customers do their product comparisons online and then go to

the store that offers the best deal in order to actually buy the product.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 363
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 363 2022/03/29 11:20 AM

Consumer Behaviour

Furthermore, online shoppers are increasingly using intelligent software agents

(called ‘bots’) to do the shopping for them. These agents are software programs that
search the web automatically for certain product specifications and price parameters
that the customer has provided. The results that they produce are usually presented
in a table containing a list of alternative websites that offer the product in question.
The table also contains the prices of these products for comparison purposes, and
any other relevant information that may help the customer to make a buying
decision. As the number of online stores increases and the amount of clutter that
makes browsing the web so onerous multiplies, so we can expect an increase in the
number of shopping agents.
Let us revisit our example of the customer who has a problem with her word
processor: while she is interacting with the website, the site will auto-detect her
word-processing package and suggest to her that she is using an old version of the
particular package. It could advise her that a newer version is now available and is on
special offer as an upgrade. Moreover, she could be invited to subscribe to the site’s
e-newsletter, which is sent out each week. This auto-detection is generally possible
only in the case of software. However, many websites will track a user’s movements
to determine what the customer is interested in. Alternatively, the website may
require the customer to complete a registration form that directly asks the customer
what they are interested in. Based on the information provided by the customer
on the registration form, or on the apparent interest detected through the tracking
program, the site sends the customer appropriate product news and special offer
information. It is considered proper first to ask the customer’s permission before
sending this product information – this is referred to as ‘permission marketing’.
However, some organisations send the customer the information first, and then
give the customer the option of indicating that they do not want to receive any
further information in the future – often referred to as ‘unsubscribing’.

Once customers have had the opportunity to evaluate the alternatives, the next
stage in the decision-making process is the actual decision to buy something. Here
again, the web makes it easy by enabling customers to buy online. For example,
the user who visited The Typist’s Friend can immediately buy the latest version of
the software she requires online. Indeed, in the case of ‘bits and bytes’ products
such as software, the product can even be delivered immediately and directly to
the customer. Although many online shoppers are still reluctant to buy online –
mainly because of concerns about security and online payments using credit cards
– this situation is changing quite rapidly (refer to the statistics provided at the start
of the chapter).

An increasing number of customers are choosing to shop and buy online.

In the online environment, it is important for organisations to give customers as
much information as possible about the buying process and its security, including
warranties, to put to rest any fears that customers may have.

Roberts-Lombard,364M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 364 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

The post-buying experience

The final stage in the decision-making process is the post-buying experience, and
here, again,

the web serves as a powerful tool to deal with any dissatisfaction the
customer may have with the product:
●● An online help-desk, for example, to deal with frequently asked questions or
to provide any other information that would help the customer to use the
product better, is an extremely useful tool to ensure post-buying customer
satisfaction.
●● An online complaint form is also helpful in this regard, and customers should
be encouraged to submit their complaints about a product. It is essential,
however, that such submissions be acknowledged, and feedback provided as to
what the organisation plans to do about them. This two-way communication
can be effective in giving customers a positive image of the company and in
building relationships between the two.
●● A similar tool, and today quite a common tool, is the online survey, which
asks customers to provide feedback about certain aspects of an organisation’s
products and customer service. Recent research undertaken in the USA has
revealed that just the process of surveying customers results in much higher
brand awareness and a positive product image among customers.15

Essentially, the organisation should make customers feel that they and their opinions
are important to the organisation, thereby encouraging a sense of belonging.
A software program can indicate to consumers when:
●● a product is on special offer – in order to encourage customers to buy more
of the product
●● a substitute product is on special offer – even providing an easy comparison
of the two products
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● changes to a product have occurred – for example, a new package size

●● newer or better products are available – to encourage so-called up-selling
●● complementary products are available – to encourage cross-selling.

17.4.4 Habitual decision making

The web can also play a valuable role when the customer’s decision making becomes
routine, such as when a customer always buys the same cleaning products.

The ability of software to detect regular or routine purchases and to auto

mate this task is a major advantage in facilitating habitual decision making.
For instance, online grocery stores regularly track what their customers buy, and if
the software detects that a customer is buying the same product again and again,
the software can do one of two things.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 365
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 365 2022/03/29 11:20 AM

Consumer Behaviour

1. It can preselect these items into the customer’s shopping basket, with the
option that the customer simply agrees to all of the selected items using a
single check box. The customer can deselect any particular item if necessary.
2. If the customer grows confident with this type of habitual buying, the entire
process can be automated, with the selected products being delivered to the
customer on a predetermined day without the customer doing anything.

Other features of software programs are discussed in the box above. All these
features add value for customers, especially in an environment where time, effort,
money and space are at a premium. The web is also a particularly valuable tool
for retailers to use to increase sales, in addition to the up-selling and cross-selling
mentioned in the box.

17.4.5 Getting to know individual customers

Before value can be delivered to customers, and even before any effort can be made
to help customers in their decision making, it is essential that an organisation
clearly understands what values drive each customer. To this end,

the web can be used to gather information about customers.

Organisations can use cookies to track and record the online activities of customers.
This can prove valuable in understanding an individual customer’s mindset.
Cookies are small data files containing information about the recorded actions of
a visitor to a website. In other words, when a customer visits an organisation’s
website, the organisation uses special software to track how the customer navigates
through the site, the pages that they visit, whether they buy anything, as well as
any other relevant information. These files are then stored on the customer’s own
computer. The next time the customer visits the website, the organisation’s server
first checks the customer’s computer for cookies that the server may have left there
on the customer’s previous visit.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

If a cookie is found, the server checks to see what information is in the cookie and
can then react to the information by customising the website in light of the profile
that has been built up on the customer. Besides customising the online experience
for customers, these cookies can also be used to build up a profile on the customer
over time – a valuable resource for any marketer. The organisation can also use
online surveys to learn more about a customer. These can be comprehensive surveys
with many questions, or they can be narrow surveys that focus only on certain
pieces of information, for example ‘How do you rate our response time to your email
queries?’ There is also a move towards using the virtual discussion facilities of the
web to run virtual focus groups in order to understand better what drives customers.
The advantage of these surveys and focus groups is speed and cost – they can be
launched quickly and are much less expensive than a normal survey or focus group.
In addition, with the advent of social media, the power has been placed in the hand
of consumers, and consumers today can and do generate and share their views
of the firms they interact with. These consumers do so on their own initiative,

Roberts-Lombard,366M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 366 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

sometimes to criticise and sometimes to praise, and their views carry a lot of weight
with friends, family and acquaintances. User (or consumer)-generated insight
is perhaps the purest of feedback that companies can garner and any company
that does not tap into these social views, is making a big mistake. The time has
come, even for the smallest company, to listen to the voice of social media and to
respond accordingly.
The move towards a more integrated organisational information system, combining
both front-end and back-end IT systems, and incorporating data-mining and data
warehousing technologies, makes it possible for organisations to unlock a far greater
amount of information about customers than was possible before.

17.5 Online customer behaviour

The online world is different from the physical world. We now consider some of the
factors unique to customer behaviour on the internet.

17.5.1 Online shopping behaviour

We need to further our understanding of online shopping behaviour.

The web is a fairly new environment that is rather different from the
physical marketplace.
Shopping catalogues are always easily at hand, there is no need for us to wait for a
salesperson and there are no queues. The shy shopper can remain anonymous yet be
aggressive – there are no face-to-face confrontations or unpleasant disagreements.
For extroverts, the web may not be exactly what they want, as they generally prefer
face-to-face contact; yet there is still the opportunity to interact with others using
discussion and chat forums, instant messaging, email and social media. The virtual
Copyright © 2012. Juta & Company, Limited. All rights reserved.

world is particularly popular among the youth and recent findings reveal that the
electronic community never sleeps and knows no physical boundaries.
The young people who ‘live’ in this virtual world are building an entirely new set of
values regarding what constitutes a community and what their social and political
responsibilities are.
With the effect of the pandemic on consumers, their online behaviour also changed.
BigCommerce reports that ‘[c]onsumers favored different products and services
than usual, they tried new brands or retailers, and they engaged in the shopping
process with new constraints – eg finding stores with curbside pickup or delivery
options’.16 This adventurousness may abate a little, but it is likely that customers
will remain embedded in part in the online world, even as they slowly adopt some
of their old shopping behaviours again – they will be willing to go online and shop
first, then when they have found what they want, they may buy online or they may
go to the store. This may vary from day to day and from item to item.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 367
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 367 2022/03/29 11:20 AM

Consumer Behaviour

17.5.2 Isolation and integration

It is argued that the web not only removes the restriction of geography, but also
the constraint of isolation, whether it be because of sickness, a physical handicap,
a busy schedule, bad weather or social shyness.

The web also makes it possible for like-minded people to come together
as a community and share their interests or concerns.
Physical or social isolation can easily be overcome in this way.

17.5.3 An abbreviated attention span

For some individuals, the time spent online and in front of a computer can be
tiring and frustrating, leading to aborted online interactions and even a rejection
of this technology. For others, the long wait for the loading of the verbose, vague or
complicated navigation structures often found online can translate into frustration
with the organisation in question and/or brand rejection.

17.5.4 Instant gratification

The more time customers spend online, the more they will demand faster download
times and instant gratification with regard to the information, product or service
they are looking for. In the USA, organisations are already finding it difficult to put
together the logistics that will deliver a product ordered online as quickly as possible.

17.5.5 Your world in a monitor

Customers are increasingly turning to the computer monitor as their preferred
shopping environment. There may well be a world of people, infrastructure and
services that lie behind the glare of the screen, but it is nevertheless the physical
Copyright © 2012. Juta & Company, Limited. All rights reserved.

monitor with which users will interact. This has serious implications for an
organisation. It is a focused world where organisational weaknesses are quickly
highlighted and where it is easy for customers to move on to the next supplier –
hence the saying: ‘A competitor is only a click away’.

Web usability:
The measure of the effectiveness of websites.
In a sense, it is also a rather limiting world, constrained by pixels, screen size,
software version, processor speed and connection speed. Organisations will need to
become adept at reaching out and ‘touching’ customers – web usability, which is the
measure of the effectiveness of websites, is certain to become an important weapon
for the online marketer.

Roberts-Lombard,368M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 368 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

17.5.6 Dependence on shopping agents

In section 17.4.3, under Evaluation of alternatives, we discussed shopping agents.
We can expect an increase in the use of such programs in future and that the
programs themselves will improve in their ease of use, function and effectiveness.
Therefore, while organisations are hard at work digitising and automating many
of their customer services and interactions, customers are doing the same. They
are instructing their software ‘robots’ to do the shopping for them, such as request
information, fill in forms, make certain payments and much more.

Soon a time may come when organisations need to consider not how
to attract and keep their online customers, but instead how to engage
the customers’ shopping agents.

17.5.7 Too much information

Information overload is a problem that many people face. The increase in email
alone is becoming a serious issue. The growth in email traffic attests to this
information overload. In 2004, 17 billion emails were sent daily, while in 2014,
this had increased to 191 billion. Statista puts the figure at 333.2 billion for 2022
and it is estimated that this figure will increase to 376.4 billion by 2025.17 The
majority of these are automatically generated, much of it spam, or electronic junk
mail, but also including the auto-responses set up by businesses as an immediate
response to incoming mail (almost every incoming business email generates an
auto-response). Given this deluge of email and an equally large number of web
pages (already exceeding 10 billion), online customers are finding it increasingly
difficult to deal with the information overload, and companies that do not quickly
and clearly demonstrate to their online customers the value that they offer will find
that customers soon desert them.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

CASE STUDY: Ford: an example of a customer-centred

car producer?
Motor vehicle producers such as Ford, BMW, Toyota and others are all highly
concerned with customer relationship management. It makes good business sense,
after all. A motor vehicle is a big and expensive item that most customers buy only
occasionally, and there is fierce competition for this business. A satisfied customer,
committed to a brand, is likely to be a repeat customer, giving the car producer
concerned a major advantage over its competitors. Most of the car producers
have therefore turned to the internet and e-commerce to build customer-oriented
features into their websites.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 369
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 369 2022/03/29 11:20 AM

Consumer Behaviour

In the case of the Ford website (see http://www.ford.co.za), this includes information
aimed at customers, such as the following:
●● Requesting a test drive
●● Requesting a brochure
●● Locating a dealer
●● How to build your personalised Ford
●● Comparing vehicles
●● Viewing the Ford price list
●● Accessing credit
●● Buying ford merchandise
●● Obtaining specialised insurance
●● Viewing the different models
●● How to buy a Ford
●● Finding approved Ford repairers
●● Ford news
●● Ford racing.

17.6 Summary
In this chapter, we addressed some of the issues that play a role in an organisation’s
use of online technology to enhance customers’ interaction with the organisation.
We recognised the fact that the online world comprises numerous components,
ranging from e-business, through e-commerce to e-marketing and e-tailing. We
examined some of the benefits that the web offers managers in facilitating customer
behaviour. We discussed the characteristics of market-intelligent organisations,
including customer-centredness, a focus on value creation and the use of online
Copyright © 2012. Juta & Company, Limited. All rights reserved.

technologies to enhance customers’ interaction.

We explored some of the emerging trends in customer behaviour, and we examined
e-commerce in the context of customer decision making, using the model showing
the various stages of the buying process as a framework. Using the premise that
online customer behaviour is different from customer behaviour in the traditional
marketplace, we looked at the unique features affecting the former.

Roberts-Lombard,370M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 370 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Identify the primary benefits of the web as a tool for facilitating and shaping
customer behaviour.
2. Explain what market-intelligent organisations do.
3. Discuss the emerging trends in customer behaviour.
4. Explain how online technology can be used to support customer decision making.
5. Discuss how online technology can be used to facilitate habitual decision
making.
6. Identify some of the unique features of online customer behaviour.
7. Explain the importance of delivery as a means of influencing online consumer
behaviour.
8. How has the COVID-19 pandemic changed online consumer behaviour?
Justify your answer.
9. Define omnichannel marketing and explain how it differs from traditional
marketing.
10. Refer to the case study and answer the following questions:
A. Do you think the Ford website is customer-oriented? Explain your reasoning.
B. Discuss how each of the features of the website may enhance the customer
experience.
C. What other features or services could Ford add to its website?
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Multiple-choice questions
1. The web is ...
A. a way of organising the networks across which information is sent
B. a network of computer networks
C. a way of doing business online
D. a way of organising and viewing the information that is sent across the
internet.
2. The three main functions of the web are ...
A. a networking function, a viewing function and an organising function
B. a business function, a communication function and an information function
C. an e-business function, an e-tailing function and an e-marketing function
D. a selling function, a search function and a store function.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 371
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 371 2022/03/29 11:20 AM

Consumer Behaviour

3. Which one of the following is not an advantage of the web?

A. It is a hyper-mediated environment.
B. It is available 24 hours a day, seven days a week.
C. Information is fixed on the web.
D. The web has an extensive ‘reach’.
4. Which of the following is the broadest category of online business?
A. e-Business
B. e-Tailing
C. e-Commerce
D. e-Marketing.
5. ______________ is the adaptation of a product or service by the supplier or
producer to meet the individual needs of a customer.
A. Adaptability
B. Personalisation
C. Customisation
D. Individualisation.
6. What is a cybermediary?
A. A type of cybercriminal
B. A person who acts as an intermediary between the online and offline
worlds
C. An online intermediary
D. The person who disintermediates between previous online partners.
7. Which of the following statements are incorrect?
7.1 The more time customers spend online, the more they will demand faster
Copyright © 2012. Juta & Company, Limited. All rights reserved.

download times and instant gratification with regard to the information,

product or service they are looking for.
7.2 The use of technologies such as the web, call centres and interactive
kiosks to facilitate customer interaction with organisations is creating a
situation where customers have increasing face-to-face contact with these
organisations.
7.3 One of the benefits of online shopping is that catalogues are always easily
at hand, there is no need for us to wait for a salesperson and there are no
queues.

Roberts-Lombard,372M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 372 2022/03/29 11:20 AM

Chapter 17: The online world and customer behaviour

7.4 Because users are a disparate group, each working on a computer away
from other users, the web is not a community-oriented environment.
A. 7.1 and 7.3
B. 7.2 and 7.4
C. 7.1 and 7.2
D. 7.3 and 7.4
8. Which one of the following is not one of the steps in the customer decision-
making process?
A. Online shopping
B. Information search
C. Evaluation of alternatives
D. Post-buying experience.
9. Which of the following statements are incorrect?
9.1 Cookies are small graphic files containing snapshots of a visitor to a
website.
9.2 On the web, there is a clear distinction between customer and business
markets.
9.3 Information overload is a problem that many people face, particularly on
the web.
9.4 The web serves as a powerful tool to deal with any dissatisfaction the
customer may have with the product.
A. 9.1 and 9.3
B. 9.1 and 9.2
C. 9.2 and 9.4
D. 9.3 and 9.4
Copyright © 2012. Juta & Company, Limited. All rights reserved.

10. Which one of the following statements describes social media?

A. Operationalising the use of customer information; that is, putting it to work
B. Creating alternative channels or ‘touch points’, such as websites, kiosks
and call centres, for customers to contact and do business with
C. Enabling customers to take control of and personalise the channel of
choice
D. Enabling customers to share information with other customers using online
technologies.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 373
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:28.

Consumer Behaviour 5E.indb 373 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 374 2022/03/29 11:20 AM

Chapter
BUILDING RELATIONSHIPS
16 WITH CUSTOMERS
Learning outcomes
After studying this chapter, you should be able to:
■■ Explain the nature of relationship marketing (RM) and customer relationship
management (CRM)
■■ Discuss the importance of securing a sound CRM foundation
■■ Explain social media and the management of a new generation of customers
■■ Discuss the concept of customer engagement (CE) and explain its importance
■■ Discuss how to improve customer engagement to strengthen future relationship
building
■■ Explain and illustrate the implications of relationship loyalty
■■ Explain the concept of lifetime value (LTV) in CRM
■■ Illustrate the individual customer approach
■■ Illustrate the development of CRM strategies
■■ Explain how relationships with employees can be enhanced and maintained through
training and development.

16.1 Introduction
Over the past decade, volatility in the global economy has forced businesses to re-
evaluate operating assumptions and financial forecasts. The pressure on businesses
Copyright © 2012. Juta & Company, Limited. All rights reserved.

today is further increased by a market where the customer acquisition rate is

slowing, customer loyalty is decreasing and sales cycles are lengthening. In such an
environment, losing a valuable customer to a competitor can significantly impact
on profitability and growth. As a result, businesses have shifted their focus from
customer acquisition to customer retention.
Customers will always remain the primary focus of every business because without
customers, there will be no reason for a business to operate. Therefore, global
businesses spend a great deal of effort, time and money recruiting new customers,
but only a few take the necessary measures to retain existing ones.1 Considering
this, a business that wants to succeed in today’s global competitive market, where
customers are empowered and brand loyalty erosion is increasing, will have to
move to customer relationship management (CRM).
CRM enables organisations to provide excellent real-time customer service through
the effective use of individual account information. This requires a more complex
approach as organisations need to investigate customer needs, they have to build

Consumer Behaviour 5E.indb 319 2022/03/29 11:20 AM

Consumer Behaviour

relationships with both existing and potential customers, and they will have to
satisfy their customers’ needs. CRM can assist organisations in building long-term
beneficial relationships with customers, which has a direct influence on the value
proposition to customers and the competitive position of the organisation in the
market. This will lead to customer loyalty and increased profits for the organisation
due to customer retention (resulting in increased rand value income for the
organisation in the long term) and value spent over the long term).2
In this chapter, we shall look at relationship marketing and the role it plays in
the development and management of relationships with customers. We shall also
provide a discussion on the changing role of customer relationship management
and the development of customer engagement as a new form of building customer
relationships. The critical role of employees in the customer management
process will also be discussed, and the importance of employee – supported by
the recruitment of skilled and experienced individuals – will be highlighted. The
chapter starts with a focus on relationship marketing.

16.2 Relationship marketing

Relationship marketing is a strategy used to cultivate strong relationships between
a business and a customer in both a business-to-consumer (B2C) and a business-
to-business (B2B) context. The strategy is founded on value-adding experiences
that can ultimately lead to customer loyalty. Imperatively, the establishment and
management of long-term relationships is grounded on engaging experiences that
can lead to loyalty. Furthermore, the building of long-term relationships should be
beneficial to all parties and be supported by relational principles that will enhance
the future satisfaction of the customer and, ultimately, their commitment to the
business. Since the dawn of the new millennium, relationship marketing academics
and practitioners have argued in favour of increased customer engagement to
develop a greater understanding of customer needs and expectations to foster
loyalty. The ability of a business to secure increased engagement with its customer
Copyright © 2012. Juta & Company, Limited. All rights reserved.

base through aspects such as active and engaging CRM programs, employee
knowledge to enhance the overall service experience, and interactive customer
touchpoints in the customer management process, can strengthen the loyalty of
the customer to the business brand in the long term.3
Relationship marketing focuses on the retention of existing customers. By
maintaining current customers, it is suggested that costs are reduced by reducing
inefficiencies in the customer learning process, and by saving money that would
otherwise have been spent on advertising, personal selling, the setting up of new
accounts and explaining procedures to new customers. A relationship-orientated
view of the customer takes into account the income and profit to be earned over a
long-term relationship with a customer. The level of satisfaction that a customer
experiences in a relationship with a business is directly related to the principles
of trust and commitment. Therefore it is critically important to understand that
the intent of a customer to continue with a relationship depends on whether
the needs and expectations of the customer have been satisfied. In addition, the

Roberts-Lombard,320M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 320 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

positive or negative perception of customers towards the business will influence

their willingness to engage in a relationship with the business or continue in a
relationship with the business.4 As a result, it becomes imperative for a business to
acknowledge the needs and wants of its customers, thereby developing an inclusive
co-operative approach towards future relationship building to strengthen the
retention of its customers.5
Customer retention is therefore only possible for the business if the principles of
relationship marketing, namely trust, honesty, commitment, open communication
channels, a focus on the interests of the customer, a commitment to quality, the
provision of added value through products and services and the willingness to
retain customers, are applied by the business, and if relationships with customers
are managed professionally.6
An example of a relationship marketing approach in a service support environment
is AVIS car rental. In this company, added value drives the management and
retention of customers over a long-term period.

EXAMPLE

Avis Car Rental

Avis Car Rental started as a business in the United States of America in 1946. It is
a brand that is characterised by innovation, engaging service delivery and a service
experience that is founded on the principle of trust. It is continuously evolving in its
desire to deliver a professional service, founded on ethical business principles, to
its customers. Building long-term relationships is of critical importance to Avis Car
Rental, where continuous engagement with customers to determine their needs
and expectations is vital to secure future survival. Customer satisfaction is driven
by positive customer experiences through all available touchpoints, across multiple
channels that reflect both online and offline engagement. In addition, customer
satisfaction is driven by employee satisfaction, where an internal focus on the needs
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and desires of employees is strategically managed to empower employees with the

knowledge and skills that enable them to deliver high levels of service quality to
customers. Through this approach, the employee becomes committed to the brand
through feelings of pride, joy and association with the brand, ultimately securing
the delivery of a service-focused engagement strategy with customers that makes
them more committed to the Avis Car Rental brand in the future.7 As a result, Avis
Car Rental was voted the car rental company with the most loyal customers in 2020.
The relationship-building philosophy of Avis Car Rental is that their customer base
is like family; they are an important segment that is professionally managed through
the principles of acknowledgement, respect, and integrity to stimulate their lifelong
commitment to the Avis Car Rental brand.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 321
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 321 2022/03/29 11:20 AM

Consumer Behaviour

16.3 Customer relationship management (CRM)

CRM is perceived as an all-embracing approach, which seamlessly integrates sales,
customer service, marketing, field support and other functions that touch customers.
When using this approach, the relationship with all customers and suppliers is
maximised by integrating people, process and technologies and leveraging the
internet. Basically, CRM is a notion regarding how an organisation can keep its most
profitable customers and at the same time reduce the costs and increase the values
of interaction to maximise the profits. CRM explores an approach to maximise
customer value through differentiating the management of customer relationships.
The organisation utilises its understanding of the drivers of current and future
customer profitability to allocate resources appropriately across all areas that affect
customer relationships. These areas are communications, customer service, billing
and collections, product or service development and pricing strategies.8
The importance of how CRM is described is not merely semantics. Its description
has a significant impact on how CRM is accepted and practised by the entire
organisation. CRM is not only an IT solution to the problem of getting the right
customer base and growing it; CRM is much more. It involves a profound synthesis
of strategic vision, an organisational understanding of the nature of customer value
and loyalty within a multi-channel environment, the utilisation of the appropriate
information management and CRM applications, and high-quality operations,
fulfilment and service.9
The need for a CRM strategy and the importance of such a strategy to a business are
guided by different factors. These factors are briefly discussed below:

●● The delivery of an improved service to customers

CRM delivers to customers a large number of platforms through which they can
discuss their needs and expectations with a business. Through these multiple
contact points, customer satisfaction can be more successfully secured due to
enhanced service personalisation as well as the customisation of products and
Copyright © 2012. Juta & Company, Limited. All rights reserved.

services offered to them. For example, Discovery Bank provides their banking
customers with multiple platform channels whereby ease of access, ease of use as
well as convenience of access to facilities are secured.

●● Customising products and services

Businesses in South Africa can secure the customisation of their products and
services available to customers. However, this will depend on the customer data
that the business has at its disposal. Businesses can engage with customers through
contact points such as call centres, applications, digital channels, walk-in branches,
etc. Through such contact points, the business is enabled to develop customised
products and services for its customer segment.

Roberts-Lombard,322M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 322 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

●● Lowering the switching rate of customers

CRM supports employee training and development to enhance their overall
customer orientation skills. Based on CRM training and development, employees
are better enabled to reflect customer care skills, thus lowering customer
switching rates.

●● Stimulate long-term relationship building

There are businesses in South Africa that manage their customer segments as partners
of the business. These businesses incorporate the opinions of their customers into
new product and service development. The direct involvement of the customer in
the firm ultimately stimulates customer commitment to the firm in the long term.

●● Enhance customer profitability

CRM stimulates customer profitability. Businesses are enabled to position their
marketing efforts more towards the valuable customer segments. Therefore, the
primary purpose of CRM is to deliver high levels of customer profitability. Customer
profitability refers to the total customer lifetime value (LTV) to a business. A stronger
product and service focus on high-income customer segments can therefore increase
long-term customer profitability for the business.

●● Competitive edge
Businesses that focus on CRM secure a competitive edge in the marketplace. These
businesses can compete with rival firms easily, and their competitive edge helps the
business to stimulate their market. They will see a return on investment.

●● Developing and sustaining the image of the business

Through the adoption of CRM, the overall image of the business is also strengthened.
Loyal customers spread positive word of mouth about the company, its products
and services. Through such an approach, new customers are more easily recruited
to the business.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Increased return on investment

CRM enables a business to secure an increased return on investment since customers
that are loyal to the business make repeat purchases. Furthermore, the business
can further increase its profits by cross-selling to its customer base, ultimately
stimulating shareholder value.10
When considering the information above, it becomes clear that CRM is critical to
the future survival of a business. Why? Because it entails the management of sound
customer relationships with prospective and existing customers, thereby stimulating
long-term relationship building and an increased potential for higher profits due
to large sales volumes. It encompasses a comprehensive understanding of market
segments (both new and existing customers) and ensures that all relationships are
nurtured to secure long-term customer satisfaction. It furthermore focuses strongly
on the expectations of customers and how a business can exceed such expectations.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 323
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 323 2022/03/29 11:20 AM

Consumer Behaviour

The customer management process encompasses different phases in the develop

ment of sustainable long-term relationships with customer segments. The first phase
is awareness, and is known as the first port of call where prospects learn more about
the business brand. Phase two relates to discovery where a business can learn about
the needs and expectations of prospects. A better understanding of such needs
and expectations can be developed, guiding the business in terms of its marketing
strategy development to secure a more successful reach of customer segments.
The third phase is known as evaluation. During this phase, prospects compare and
assess the products or services of the business with those of competitors. Phase 4 is
known as intent and relates to the prospect being comfortable with the information
received and making a decision to purchase from the business. The next phase is
referred to as the purchase phase since the prospect makes a payment and changes into
a customer. The final phase refers to loyalty. During this phase, the business is required
to make a follow-up after the customer has made a purchase, thereby establishing
how satisfied the customer is with the product purchase made. The business
can then engage with the customer, requesting for referrals to be made.11

Customer management process in phases

Phase 1: Awareness
Phase 2: Discovery
Phase 3: Evaluation
Phase 4: Intent
Phase 5: Purchase
Phase 6: Loyalty

Against the background provided above, CRM emphasises that managing customer
relationships is a complex and ongoing process and a response to, and reflection of,
a rapidly changing marketing environment. Therefore, it is advocated to position
Copyright © 2012. Juta & Company, Limited. All rights reserved.

CRM in any organisation in a broad strategic context that focuses on the holistic
management of customer relationships in order to secure long-term value to both
customers and shareholders.12

EXAMPLE

Absa Customer Service Charter13

Absa customer service is guided by the following customer service charter in the
management of their different customer segment portfolios.
Absa’s Customer Charter sets out their commitment to providing the highest
standard of customer service. They seek to meet the financial needs of
their customers by offering quality financial advice, products and services.

Roberts-Lombard,324M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 324 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

Their customers are the cornerstone of their business and they consistently strive to
‘walk the talk’ and exceed customer expectations by anticipating and meeting their
needs. Responsiveness, efficiency and quality are among the high goals that Absa
set for themselves, together with integrity and transparency in all their dealings.
Absa values its employees and invests in them to ensure the delivery of these
goals, while constantly working to better its knowledge and service standards. Absa
established its own Customer Charter in December 2006 and will continue to work
on delivering the best possible service and products to their customers.
The Absa value promise to their customers:
●● service
●● affordability
●● choice
●● convenience
●● security
●● service.
Absa strives to:
●● work together as a team, putting you at the centre of everything we do
●● deliver a service that feels effortless, is consistent, seamless and error free
●● keep you informed at all times − we know that your time is precious
●● correct the situation as soon as possible if we fail to deliver on our service
promises
●● ensure affordability and good value for your money. Ask us to help you find
the right products to suit your needs
●● give responsible and professional advice through our expert consultants to
meet your more intricate financial needs. We will advise you on building your
personal capital by helping you save, invest and borrow wisely
●● offer you choice.
We will:
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● provide you with flexibility and freedom of choice by advising you on banking
products and services that better meet your needs and give you the freedom
of choice to switch to other products and services when you require
●● conduct our business in a fair and reasonable manner with uncompromising
integrity and transparency in all our dealings. We encourage you to ask us to
explain our costs and charges to you
●● recognise you as a unique individual and will apply our skilled resources not
only to meet your specific requirements but surpass your expectations of
what a bank should deliver.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 325
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 325 2022/03/29 11:20 AM

Consumer Behaviour

Absa strives to:

●● provide access and convenience. We have the largest number of ATMs in
SA, and with our safe internet and cellphone banking facilities we put banking
within your reach 24 hours a day, locally and internationally
●● deliver consistently high levels of service at any of our more than 750 branches
nationwide
●● offer a secure banking facility.
We will:
●● guarantee peace of mind with the assurance that your money has been
entrusted to one of the world’s leading banks. Our strong support network
is always there to protect and guide you through every step of your financial
journey. We are totally committed to the Code of Banking Practice
●● ensure that the confidentiality and privacy of your information is respected at
all times according to the laws and codes of conduct that govern the banking
industry and our employees.

16.3.1 The importance of securing a sound CRM foundation

Customers are valuable elements of a business. As a result, it becomes imperative for
a business to deliver continuous and professional engagement with customers. The
management of good customer relationships by a business is important during both
positive and negative customer engagement experiences. The reason being that
it will strengthen customer perception of the engagement process, and enhance
customer willingness to remain in a relationship with the business. As a result,
a business must ensure that engagement is managed professionally throughout
all customer touchpoints that can influence customer service experience. When
customers experience positive and engaging online and offline interactions,
professional service delivery and after-sale service, it can strengthen customer
retention rates, where the customers ultimately can become brand ambassadors of
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the business.14

16.3.2 Social media and the management of a new generation of

customers
The advent of internet technologies has brought about changes in the behaviour
of consumers online. In the past, websites were designed only for businesses to
publish content and for visitors to view that content. However, in this Web 2.0 era,
websites are now dynamic and interactive, especially social media sites, and users
actively participate in the generation and enrichment of content. Due to these
changes in user behaviour, companies across the globe are now compelled to use
social media to facilitate two-way communication with their customers. Today,
it is no longer enough to rely solely on traditional media for marketing, nor is it
acceptable for companies simply to move the offline sales materials online.

Roberts-Lombard,326M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 326 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

Companies need to explore how social media websites can be used for marketing
and include them in their marketing mix. Social media refers to a group of internet-
based applications that build on the ideological and technological foundations
of Web 2.0, and that allow the creation and exchange of user-generated content.
Generally, social media activities are centred on the gathering and sharing of
information online through messages, pictures, videos and audio. The growth
of social media sites has been exponential over the past decade. Below are some
interesting statistics that need to be noted:
●● A total of 53.6% of the global population uses social media.
●● The average daily usage of social media is 2 hours and 25 minutes.
●● More than 50% of the global population (more than 3.5 billion people) are
using social media.
●● A total of 5.22 billion people across the world are accessing their social media
platforms via their smartphones.
●● The most popular social media platforms across the world are as follows
(ranked from the most popular to the least popular):
✓✓ Facebook (2.740 billion people)
✓✓ Youtube (2.291 billion people)
✓✓ WhatsApp (2 billion people)
✓✓ FB Messenger (1.3 billion people)
✓✓ Instagram (1.221 billion people)
✓✓ WeChat (1.213 billion people)
✓✓ Tik-Tok (689 million people).
●● Globally, social media networks are primarily accessed by the 25–34-year-old
age group (representing the millennial cohort), are male in gender and live
in urban environments (larger cities).15
●● In terms of children’s usage of social media on a global scale, young boys are
Copyright © 2012. Juta & Company, Limited. All rights reserved.

the most active group on social media between the ages of 12 and 15, while
young girls are the most active on social media between the ages of 8 and 11.

With their interactive nature, social media sites provide an opportunity for marketers
to learn about the preferences of their customers which will help the business for
future service enhancement. Therefore, marketers can make use of digital media to
test their services or products and get feedback from customers. Finally, because of
the two-way communication prospect offered by interactive media, marketers have
the opportunity to deliver a personalised service, or communication about the
availability of personalised service. There is thus an opportunity for marketers to
maximise the full potential of the interactive media, especially those particularly
applicable to the business’s product/service category.16

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 327
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 327 2022/03/29 11:20 AM

Consumer Behaviour

16.4 A movement towards customer engagement

Customer engagement (CE) is not altogether different from traditional CRM.
Customer engagement recognises that in today’s mobile world, customers want to
communicate when, where and how they want. And, most importantly, customer
engagement acknowledges that it is the customer who is driving the conversation.17
Consumer engagement is the resulting impact of a brand interacting with consumers
through a variety of marketing initiatives. The goal of consumer engagement is to
create meaningful consumer impact and generate ‘either a behavioural result (such
as driving a sale or inquiry) or an attitudinal result (such as making an emotional
impression or changing attitudes)’.18
Consumer engagement typically includes practices such as:
●● digital and online programs, including a brand’s own websites and mobile
platforms, as well as ‘third-party’ digital media, such as blogs and social
media, video and other user-generated content sites, where a brand’s content
is relevant
●● sports, music and event marketing
●● public relations
●● traditional advertising
●● retail promotion.
There are four stages involved in the customer engagement process, namely initiation,
integration, intelligence and value creation. These four stages form an integrated
process to secure customer-facing solutions. The successful implementation of a
customer engagement strategy by an organisation can result in various benefits,
including an increase in sales, a decrease in operating costs, strengthened brand
loyalty, and an increased customer awareness.

16.5 From customer relationship management to customer

CRM can be perceived as how the customer is taking a view of the

organisation. On the other hand, customer engagement entails the view
that the organisation has of the customer.
Customer engagement therefore means taking the time to know and understand the
customer’s point of view, understanding how to be reciprocal with the customer, and
understanding how to be trustworthy. When an organisation takes the customer’s
point of view, the customer becomes more relevant to the organisation. The
organisation thus sends out a message that they are considering both the interests
of the customer and the organisation.19 However, it must be noted that, despite the
movement towards customer engagement, CRM remains a strong and most efficient
approach in maintaining and creating relationships with customers. Keep in mind
that CRM is not only about business, but also about strong personal bonding
within groups of people. As soon as a personal and emotional linkage is built with
the customer, it is very easy for an organisation to identify the actual needs of

Roberts-Lombard,328M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 328 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

the customer and serve the customer in a better way. Remember that traditional CRM
solutions have evolved from simple contact management solutions to sophisticated
commercial databases, branching out to marketing, customer support, accounting
and more. These solutions are now cloud-based, facilitating their connection to
popular web services (for example, LinkedIn and Twitter) and complementary B2B
applications. They have become enterprise platforms at the heart of an organisation’s
internal and external processes. Most successful organisations use dedicated world-
class CRM software in their workplace, thus emphasising the importance of CRM
relevance in the business environment of today.20
In South Africa, the African Price Mount Grace Country House and Spa is an
example of a brand that believes in customer engagement as part of its service
delivery strategy, as the example below illustrates.

EXAMPLE

African Pride Mount Grace Country House and Spa 21

The Magaliesburg African Pride Mount Grace Country House and Spa is a
remarkable holiday resort in the Cradle of Humankind near Johannesburg.
The hotel group prides itself on its first-class facilities and high level of customer
service. It is surrounded by 10 acres of lush gardens and provides customers with
the most polite and professionally trained employees. The key focal point for service
delivery at the hotel is service engagement with the customer, not for the customer.
This implies that all service experience touchpoints (the call centre, reception desk,
in-house service engagement, the hotel guest app) are designed keeping customer
needs in mind. From a multi-lingual approach to a personalised service focus
approach, the hotel drives all service engagements from the perspective of meeting
customer expectations. For example, before a guest arrives, the hotel enquires
about specifics such as:
●● Allergies
●● Coffee/tea and soft drink preferences
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Bedding preferences
●● Toiletries preferences
●● Arrival time to secure collection and assistance to the room
●● Dietary preferences for breakfast (included in the price charged)
●● Flower bouquet preferences for the room (additional costs).
When arriving at the hotel, guests are informed that a dedicated hotel service
agent is available to the guest(s) for the duration of their stay. This is to ensure that
guests have an individual staff member(s) who is/are responsible for assisting with
guest requests. The hotel thereby assures that guests feel engaged with the hotel
regarding their needs and expectations and that they can simply pick up a phone
or engage through the hotel guest app that can be downloaded, free of charge, or
accessed through the hotel computer. Finally, guests also receive a small gift (such
as a bar of soap or a towel) from the hotel when checking out. This is to show the
appreciation of the hotel to the guest(s) on departure.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 329
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 329 2022/03/29 11:20 AM

Consumer Behaviour

16.6 The importance of customer engagement in a

competitive business environment such as South Africa
Customer engagement encompasses customer interaction through multiple
channels with the intent of developing and strengthening relationships with
customer segments. Continuous engagement with customers is beneficial to both
the business and the buyer since positive interaction stimulates customer perception
of the business brand, thereby stimulating future buying behaviour. In addition,
through continuous engagement with customers, a business is also enabled to
obtain customer insights that can ‘inform marketing decisions such as retargeting
and content development, as well as sales processes such as messaging and outreach
methods’. Therefore, the ability of a business to engage with its customer base can
strengthen the overall brand experience of the customer, enhance the level of trust,
commitment and loyalty of the customer to the brand, secure important customer
insights to the business, enable the business to better understand the experience
needs of the customer and improve on such experiences, and finally, stimulate sales
in the long term.22
Within a business context, improved levels of customer orientation result in
customers experiencing higher levels of satisfaction. Consequently, employees
with a strong customer-orientated approach towards service delivery are engaged
in behaviour that drives value creation for customers. This value creation then
stimulates a customer intention towards long-term relationship building with
the business. Customer engagement refers to the ability of a business (through its
employees) to be orientated towards customer interaction and customer support
to address the customers’ needs and expectations.23 In the South African context,
knowledgeable employees, caring staff, and a solution-driven business service
focus are critical long-term relationship-building elements. Moreover, a customer-
centred approach towards service delivery is strengthened when a business is able
to develop a clear and concise understanding of customer needs.24
In the South African business environment, a consumer-orientated approach by
Copyright © 2012. Juta & Company, Limited. All rights reserved.

a business that focuses on addressing customer needs and expectations, positive

service engagement, and reliable service delivery can strengthen consumer trust in
the business in the long term. In a competitive business environment, such as the
banking industry, customer orientation is a precondition for the establishment of
trust. Trust is developed by employees’ service orientation towards customers, with
specific reference to aspects such as empathy, honesty and integrity. Therefore it
is important to understand that the service delivery process directly impacts the
level of service quality delivered and the level of customer satisfaction secured.
Hence, a professional and engaging service delivery process can secure a feeling of
satisfaction among the customers of a business, which can result in increased levels
of trust and willingness to engage with the business in the future. The stronger
the level of customer engagement a business secures through an understanding
of customer needs, wants and interests, and delivering solutions to customer
problems, the more the customer is willing to develop a long-term relationship
with the business.25

Roberts-Lombard,330M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 330 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

16.7 How to improve customer engagement to strengthen

future relationship building
There are numerous approaches to improving the management of customers. It is
important to understand that a business cannot follow a one-size-fits-all approach
to communicating with customer segments, as multiple channels can be used.
Various customer segments also reflect different engagement requirements, which
is important to understand for a business.
To drive customer engagement, it is important to start by improving the overall
experience of customers. The business needs to ensure that the customer segment(s)
that they focus on are content with the business brand, as well as its products
and services. This can encompass aspects such as customer engagement with well-
trained customer-centric service teams, securing an awesome buying experience
for customers, the enablement of fast shipping options to customers when an
online order is secured, websites and applications that are easy to use and which
are easily accessible, etc. A positive and fun experience will generate increased sales
through repeat purchases.
Customers want to be engaged with the brand of the organisation through social
media platforms. They want to engage with posts with which they can identify,
that make them laugh, that they enjoy reading and feel connected to. As a result, it
is important not to forget humour when engaging with customers through social
media platforms. Therefore, be reminded that social media engagement is with
human beings, who have emotions, opinions and interests. Finally, organisations
need to understand that the brand that they represent needs to be humanised,
providing the brand with a name, face and personality with which the target
segment can identify. Customers are curious to know who is behind the service or
product offering that they plan to purchase. It is suggested that individuals used to
represent brands reflect the brand’s values through appearance and personality.26
Copyright © 2012. Juta & Company, Limited. All rights reserved.

16.8 Relationship loyalty

To understand relationship loyalty, we need to explore customer loyalty, customer
retention and the lifetime value (LTV) of customers.

16.8.1 Customer loyalty

As the objective of CRM, customer loyalty means more than customers making
repeat purchases and being satisfied with their experiences and the products or
services they purchased.

Customer loyalty means that customers are committed to purchasing

products and services from a specific organisation, and will resist the
activities of competitors attempting to attract their patronage.
Customers are loyal to an organisation when they have consistently been satisfied.
Customers will be loyal about doing business with an organisation that can always

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 331
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 331 2022/03/29 11:20 AM

Consumer Behaviour

be trusted. This high-trust relationship requires going further than the realm
of customer transient and transaction-based feeling of delight, and is regarded
as total trust. In addition, commitment is also perceived as a valuable construct
for the measurement of customer loyalty and for determining the future buying
habits of consumers. When a customer is committed, they are illustrating a greater
willingness to remain loyal to the business.27
There are two major approaches when describing and measuring loyalty; one is
based on attitude and the other on behaviour. The importance of understanding
the attitudinal and behavioural loyalty of customers is well argued in relationship
marketing literature, stating that loyal customers purchase more, which positively
influences the profitability of the service provider. Attitudinal loyalty refers to a
willingness to repurchase a needed service continuously in the future due to a
customer’s psychological attachment to a service provider. Behavioural loyalty
encompasses the customer’s intent to repurchase. Customers’ attitudinal and
behavioural loyalty are influenced by aspects like the level of service quality
delivered, their perceived value received, and their level of satisfaction experienced.
These dimensions of loyalty enhance the predictive power of loyalty considerably.28
Therefore, organisations must track customer loyalty as the truer measure of how
they compare to competitors, and this will shift the focus from customer acquisition
to customer retention.29 Considering this, a substantial amount of effort is currently
being focused on customer loyalty programmes (see the example that follows).

EXAMPLE

Customer loyalty programmes

In addition to frequent-flyer programmes offered by most airlines, programmes
designed to generate repeat purchases include the following:30
●● Ster-Kinekor offers Ster-Kinekor Rewards, where members earn points
every time they attend the screening of a movie at any Ster-Kinekor theatre
Copyright © 2012. Juta & Company, Limited. All rights reserved.

in South Africa. Membership is classified according to silver, gold or platinum

status, depending on the number of movie tickets purchased per year. This
classification does not only enhance the loyalty levels of customers, but
allows Ster-Kinekor to establish the brand preferences of Movie Club Card
customers based on their ticket purchases.
●● Sports franchises use card-based reward programmes where members
earn points for attending events and can redeem those points for team
memorabilia, food and drinks. Teams can also use the member data to
create personalised communications and offerings, including season ticket
packages, to their most attractive members.

Roberts-Lombard,332M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 332 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

●● Retailers such as Clicks, Woolworths, Pick n Pay and Edgars use branded
in-store cards to stimulate customer purchases through the motivation of
customer discounts on purchased products when the cards are used. This is
a psychological marketing tool to stimulate customer support and drive sales
against the background of financial benefit to the customer. These shopper
cards are successful in stimulating customer purchases in-store and add to
the loyalty card culture of South Africans.
The five best loyalty programmes in South Africa are FNB eBucks, Pick n Pay Smart
Shopper, Clicks Clubcard, Edgars Thank U card and the Spur family card.31 Below
is a brief description of what makes each of the loyalty programmes mentioned
special for the South African public:
●● FNB eBucks: There is no cost in joining FNB eBucks. This reward programme
is also linked to a wide variety of network partners from which an FNB eBucks
cardholder can obtain rewards or points, enhancing convenience and ease
of use.
●● Pick n Pay Smart Shopper: Numerous platforms are provided from which a
Pick n Pay Smart Shopper cardholder can obtain rewards or donate points to
a charity of their preference. Through this loyalty programme, platforms are
created to make donating more convenient and to motivate South Africans
to give back.
●● Clicks Clubcard: This loyalty programme includes a variety of benefits for
the cardholder, such as free funeral cover, as well as motor, house and life
insurance cover premium discounts available to Clubcard members. ‘The
cover is calculated on a member’s average monthly spending at Clicks
stores, all a member has to do is have this benefit activated by registering
on the website or by means of SMS.’ Finally, pregnant ladies and mothers
of babies younger than three years old receive the option to become part of
the Baby Club. The benefits of membership include obtaining double points
on selected baby products, triple points on selected Clicks-branded baby
products and clinic services for their babies.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

●● Edgars Thank U card: This loyalty card offers the holder the opportunity to
use their points and make a purchase of any Edgars product brand of their
choice, inclusive of international brands in clothing, accessories, fragrances
and cosmetics categories.
●● Spur eFamily card: The eFamily card of the Spur restaurant group is quite
versatile. The cardholder can register their card on the Spur website, after
which a six-digit code is sent to the cardholder via SMS and can be stored
on the card holder’s phone. This enables the cardholder to store their virtual
membership card, which can be used at any Spur restaurant without having
the physical card present. Spur restaurants are readily available across
South Africa for ease of access and are appropriate for celebrating a special
occasion or simple dining.

In South Africa, loyalty programmes have been criticised as an initiative by the

local retail sector to motivate customers to overspend. However, the use of a loyalty

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 333
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 333 2022/03/29 11:20 AM

Consumer Behaviour

card remains the responsibility of the cardholder and responsible spending is

therefore required. Before joining a loyalty programme, it is crucial to understand
the benefits offered by the loyalty card and the reason(s) for joining.32

Antecedents to loyalty
There are two distinct viewpoints as to the antecedents to loyalty. In the first,
loyalty is seen as more often built on ‘hard’ dimensions, such as value for money,
convenience, reliability, safety and functionality, and these are seen as the prime
drivers for product or service choice. This viewpoint suggests that while a customer’s
positive experience with products or services may enhance a type of temporary
loyalty, it is essential to remember that ‘money talks’ and ‘everyone has a price’.
Such is the level and scope of price-based competition in some customer markets
(for example, fast-moving-consumer-goods or FMCG retailing), that some would
even suggest that fostering ‘real’ loyalty in such markets is an almost impossible
task. In the alternative view to customer loyalty, ‘softer’, more tangible factors
such as emotion and satisfaction are seen to affect attitude in a decisive way. This
viewpoint suggests that customer loyalty is viewed principally as a result of the bond
between an individual’s relative attitude and repeat patronage, again mediated by
social norms and situational influences or experiences.
What both models implicitly suggest is that

customer satisfaction sustains loyalty.

The presumption is that loyalty is built on satisfaction derived from a positive
differentiation achieved by providing superior customer service. However, loyalty
should not be confused with satisfaction (although creating more satisfaction may
reduce the likelihood of disloyalty). Satisfaction does not always result in retention
(loyalty) and it is equally apparent that dissatisfaction does not necessarily result
in defection. Therefore, the following should be noted: ‘Customer loyalty is not
always based on positive attitude, and long-term relationships do not necessarily
Copyright © 2012. Juta & Company, Limited. All rights reserved.

require positive commitment from customers. This distinction is important because

it challenges the idea that customer satisfaction (the attitude) leads to long-lasting
relationships (the behaviour)’.33 Indeed, research suggests that neither loyalty and
satisfaction nor loyalty and profitability necessarily go hand in hand.

EXAMPLE

An interesting fact about South African consumers, is that they hold, on average,
nine loyalty cards. South African loyalty programmes are continuously evolving as
various industries become aware that customers want more and more engagement
through loyalty programmes offered to them. In terms of grocery/health and beauty
products, the most supported loyalty programmes are the Pick n Pay Smart Shopper
card and the Dis-Chem Benefits card. On the other hand, in terms of retail banking
in South Africa, the three most successful loyalty programmes are the Standard
Bank UCount, FNB eBucks and Absa Rewards.34

Roberts-Lombard,334M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 334 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

Loyalty-type behaviour
There are many ways of describing loyal and non-loyal customer behaviour. The
following are three categories of customer re-patronising behaviour:
1. Switching behaviour: when purchasing is seen as an ‘either/or’ decision – either
the customer stays with you (loyalty) or turns against you (switching)
2. Promiscuous behaviour: where customers are seen as making a ‘stream of
purchases’, but still within the context of an ‘either/or’ decision – either the
customer is always with you (loyalty) or flits among an array of alternatives
(promiscuous)
3. Polygamous behaviour: again, the customers make a stream of purchases, but
their loyalty is divided among a number of products. They may be more or
less loyal to your brand than any other.

Evidence from consumer research tends to support the view that patterns of
promiscuity and polygamy are the norm. Many or most consumers are multi-brand
buyers, and only one-tenth of buyers are 100% loyal. Consumers are therefore
prone to ‘mix and match’ products and services according to their specific needs.

16.8.2 Customer retention

Customer retention is a critical element in the management of customer relation
ships. It has been widely argued that the retention of a customer is much more
important than the acquisition of a customer. Why? Simply because customer
retention secures much more profitability for the business when compared to
the acquisition of new customers.35 Customer retention is a driving force behind
CRM since it is less expensive to cultivate your existing customer base and sell
more services to them than to seek new single-transaction customers. Customer
retention affects both revenues and cost in the equation of profitability. Revenues
are enhanced due to increased sales, and costs are lowered due to lesser generation
and marketing costs of such revenues.36
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Customer retention has a profound influence on the profitability of an organisation:

●● Acquiring a new customer costs more than retaining an existing one.
●● Normally, 80% of the organisation’s profits are derived from 20% of its
clients, according to the Pareto Principle. It thus makes sense to concentrate
on the clients that produce profits; in other words, the existing clients.
●● Regular customers tend to place frequent and consistent orders, thereby
decreasing the costs of servicing these customers.
●● Efforts to retain customers make it difficult for competitors to enter the
market or to increase their share of the market.
●● Improved customer retention can lead to an increased level of employee
satisfaction, which, in turn, leads to increased employee retention and which
feeds back into an even greater customer longevity.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 335
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 335 2022/03/29 11:20 AM

Consumer Behaviour

●● Long-time customers tend to be less price-sensitive, permitting the charging

of higher prices – they will not move for the 5% difference in banking
charges, for example.
●● Long-time customers are likely to provide free word-of-mouth advertising.

Customer retention is therefore generally concerned with maintaining the

relationship established between a service provider and a customer. Such a
relationship can be performed first by the customer making subsequent purchases
or by extending the customer’s contract with the service provider over a specified
period of time. Second, it is done by the intention of the customer to make future
purchases from the same provider, or to refrain from terminating the contract.
Customer retention has also been expressed in terms of post-purchase intention,
which is the tendency of customers to purchase the goods and services at the same
shop and convey their user experiences to relatives and friends through word-of-
mouth. Repurchase intention is the process of an individual purchasing goods
and services from the same organisation and the reason for continuing purchases
is based on past-purchase experiences. This implies that a high level of service
quality, increased customer satisfaction, and increased levels of customer loyalty
are necessary to induce post-purchase behaviour. Therefore, the statistical evidence
of benefits of customer retention illustrates that acquiring new customers can cost
five times more than satisfying and retaining current customers. In addition, a
2% increase in customer retention has the same effect on profits as cutting costs by
10%. Finally, the average organisation loses ten per cent of its customers each year
and a 5% reduction in the customer defection rate can increase profits by 25 to 125,
depending on the industry.37

16.8.3 Lifetime value38

A customer’s growth potential or strategic value39

A certain customer has both a current and a savings account at Innovation Bank.
Every month, the customer provides a certain profit to the bank, and the net present
value of this continuing profit stream represents the customer’s actual value to
Innovation Bank. However, the home mortgage that the same customer has at a
competing Bank B represents a strategic or potential value Innovation Bank could
realise if it had a proactive strategy to obtain it.
Customer lifetime value (LTV) describes the present value of the stream of future
profits that the company expects to make from the customer’s lifetime purchases.
Marketers estimate LTV using past behaviours to forecast future purchases, the
gross margin from these purchases, and the costs associated with servicing the
customers. Marketers base their assessments of LTV on the assumption that the
customer’s future purchase behaviours will be the same as they have been in the past.
Sophisticated statistical methods are typically used to estimate future contributions.

Roberts-Lombard,336M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 336 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

For example, these methods might consider how recent purchases have been
made. The expected LTV of a customer who purchased products to the value of
R2,000 in one visit to a grocery store, for instance, is probably less than the LTV of
a customer who has been purchasing products to the value of R500 every month
for the last six months. Customers have different values to the organisation, and
they need different things from the organisation. What do the customers want, and
what is the customer worth? The value of a customer relative to other customers
allows the business to prioritise its efforts, allocating more resources to ensure that
the more valuable customers remain loyal and grow in value. Catering to the needs
and demands of a specific customer forms the basis for creating a relationship and
winning the customer’s loyalty.
One other critical element of the customer’s LTV is their growth potential or strategic
value. Strategic value is the additional value a customer could yield if marketers
had a strategy to obtain it. When an organisation has determined the LTV of its
customers, it should have a well-informed financial view of its customer base. In
particular, it will know that a relatively small number of customers accounts for the
majority of the profits.
As most companies attempt to establish relationships with their customers, they
should bear in mind that in some cases there are reasons that make an attempt to
develop a relationship a fruitless pursuit – certain relationships are simply unrealistic.

16.9 The individual customer approach40

One of the key tenets of relationship marketing is that, ideally, an organisation
should focus on its most profitable customers. Profitability of a customer goes hand
in hand with their LTV.

Marketers should confine high-intensity relationships to the customers

The customers with lower profit potential, who offer less opportunity or need
for customisation, should be served through low-cost, transactional marketing
strategies. As we have seen, traditional marketing advocates that the marketer
should focus on a specific segment, or a few segments, of the market. According to
the philosophy of relationship marketing, the marketer should focus on recognising
the importance of establishing relationships with individual customers. Three
important changes have occurred that render segment-based marketing not only
inappropriate but also potentially damaging for a business:
1. Customers have become more sophisticated and knowledgeable.
2. There have been dramatic advances in technology.
3. Competing suppliers and products are cluttering the market.

Customer expectations are rising, and if competitors – often incorporating new

technologies in aspects of their communications, internal and customer-facing
processes, and production – are not only meeting these expectations, but also

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 337
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 337 2022/03/29 11:20 AM

Consumer Behaviour

shaping them with yet higher standards of performance and value, this could spell
trouble for a company. Thus the cycle repeats itself as customers ask for more, and
receive it.
Marketers need to recognise that the rules of competition have now been changed
forever. They must accept that they have to decide the customer mix and the
level of resources to be committed to each customer. They should know the so-
called ‘cost-to-serve’ of each customer, and be able to produce an integrated view
of customer profitability. This should be inclusive of all cost types, namely sales
and marketing, finance, customer service and support, advertising, and so on.
Customer profitability, including the LTV of customers, should then determine
from which customers the company makes its money. Based on this, strategies need
to be developed to treat each customer differently, for example for the company to
invest more in the most profitable customers and less in the unprofitable ones.
Relationship marketing means that businesses should focus on customers who are
appropriate for their strategy, and reject others that do not fit. For this reason,
companies should analyse their customer base, identify the levels of service
necessary for each customer, and implement a framework to balance resources
so that customers receive exactly what they need. It requires strong leadership to
reject unprofitable customers.

Customer rejection
Following an account review, an international accounting/consulting firm decided
to focus on a limited subset of companies, narrowing its worldwide priority focus
customer list from several thousand firms to under 200. Although the move initially
met with stiff opposition from the partners, the firm is now achieving record sales
and profits.

16.10 Internal marketing as a strategy to enhance external

customer service
Internal marketing can be perceived as an enabling tool for the implementation of
strategic plans. Businesses have realised that they cannot continue to arrange work
as separate functions. Instead, businesses must structure operations around core
business processes that are driven from the end-customer point of view. Internal
marketing is based on the understanding that no single business management
function is effective if it operates in isolation. Multiple operations and people with
different skill sets have to be actively involved in creating and delivering products
and services. These cross-functional activities, and the people who perform them,
all have a major influence upon the final outcome. The implication thereof is that
today’s managers must ensure that every employee in all parts of the organisation
is involved in and committed to the delivery of quality throughout the customer−
supplier chain. The introduction of internal marketing relies on two principles,
namely that it is important to satisfy the needs of employees before the business
can satisfy the needs of its customers, and the rules that apply in the market area of
the business, by analogy, are also relevant to its internal market.41

Roberts-Lombard,338M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 338 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

16.10.1 Enhancing employee relationships through internal marketing

Given the significant role that employees play in the employee–customer
relationship, employee satisfaction is considered to be a key motivator in the
retention of quality employees. The attitude and behaviour of quality employees
have an impact on the performance of the service delivery, resulting in customer
satisfaction and ultimately organisational success. Employee satisfaction is
specifically influenced by the quality of the internal environment and the strength
of relationships therein. If employees are happy in their internal environment and
enabled to serve customers, they are more likely to feel engaged, empowered and
appreciated, which would drive employees to perform well and remain with their
organisations for extended periods of time. Satisfied employees, in turn, go above
and beyond the call of duty to serve their customers well, and as a result, achieve
higher levels of customer satisfaction.
Programmes such as internal marketing focus on treating employees as internal
customers, in which employee satisfaction and motivation are a focal point, as
happier employees are more productive and loyal to organisations. Internal
marketing is focused on the attraction, satisfaction and engagement of customer-
orientated employees who are encouraged to fulfil their role as part-time marketers,
and to deepen relationships with both the employees of the bank and its
customers. Through the creation of an appropriate internal environment in which
employees are treated with dignity and respect, and their needs are understood and
addressed, strong internal relationships can be created. This facilitates higher levels
of engagement and employees are encouraged to work together in a coordinated
fashion in order to transfer knowledge and generate ideas that create value for
customers. In this way, higher levels of customer satisfaction can be achieved.
Many organisations worldwide have successfully made use of internal marketing as
a strategy to improve internal market relationships, prepare employees to work in a
customer-orientated manner, and to ensure that employees have the skills, abilities,
tools and motivation to serve customers well, which in turn leads to customer
Copyright © 2012. Juta & Company, Limited. All rights reserved.

satisfaction. When implemented successfully, an internal marketing strategy could

result in valuable outcomes.
●● When employees understand their unique role and purpose (internal
purpose) and how they contribute to the organisational objectives, they feel
more inspired and motivated to achieve organisational objectives such as
service quality.
●● When employees are provided with training and development (internal
product), are empowered to serve customers (internal product), and are
provided with the visible, up-to-date processes (internal processes), they
become equipped with the required skills, knowledge and authority to
perform their jobs competently.
●● A more participative leadership style (internal people) would reduce service
failures. This ensures that banking operations and functions are better aligned
and coordinated with customer needs and behaviours during the service
encounter, leading to reduced conflict between employees and customers.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 339
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 339 2022/03/29 11:20 AM

Consumer Behaviour

●● Frictions could be reduced between back-office and customer-contact

employees, thereby improving relationships with co-workers (internal
people), which results in higher levels of employee satisfaction, better
internal service quality, and as a result, improved external service quality.
This, in turn, can contribute to the reduction of stress and better work–life
balance (internal price).42
●● Due to stronger relationships between managers and co-workers,
communication (internal promotion) would be more effective, and
performance feedback (internal performance management), as well as the
timely exchange of information, would improve the employee perception of
communication quality. The communication and adherence to a corporate
vision (internal promotion) that bind the employee emotionally to the
organisation, can also lead to outcomes such as greater employee satisfaction
and retention, leading to improved levels of service delivery.
●● A pleasing internal physical environment (internal physical evidence), which
facilitates the development of personal relationships and teamwork and a
controlled political environment (internal political power), is conducive for
a satisfying internal customer (employee) experience, resulting in a more
satisfying external customer experience.

According to the theory of reciprocity, people return good for good in proportion
to what they receive. When employees are provided with the internal marketing
elements needed to satisfy their needs and enable them to serve customers better,
they exert greater effort to satisfy customer needs. In turn, customers reciprocate
through increased levels of patronisation and loyalty to their organisation. In this
way, strong and sustainable relationships are created between the employees of the
organisation and its customers, resulting in increased profits. Internal marketing
as a strategy aspires to create value for both the employee and the organisation,
allowing for the organisation’s strategic objectives such as service quality and
customer satisfaction to be achieved.43
Copyright © 2012. Juta & Company, Limited. All rights reserved.

16.10.2 Training and motivating employees

An organisation committed to building relationships with its customers, needs to
broaden its employees’ scope of knowledge. The type of employee required has a
broad understanding of how everything the company does lives up to customers’
expectations. Employees today need to increase their skills in processes and
technologies, and have a greater understanding of the customers they serve. Before
starting a learning process, it is necessary for marketers to establish the identity of
the target audience, its expectations, the knowledge it needs, the skills it needs and
the way in which the learning process can be monitored.
The following guidelines for training will help marketers to plan the process of
building relationships with employees correctly:
●● Identify the relationship marketing skills required from the employees who
are to participate in all the processes that deliver customer value.

Roberts-Lombard,340M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 340 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

●● Assess the performance of employees in respect of these skills, and determine

any knowledge gaps by working through an assessment process with
employees and communicating effectively in real-time, not simply in a
questionnaire or other impersonal manner.
●● Develop training programmes and technology support to re-skill processes
where employees require additional knowledge or context.

Through training, employees are empowered, and by empowering employees,

they are given the discretion to solve the customer’s problem in their own way.
This not only creates higher levels of employee satisfaction as they feel they have
control over their work, but also allows for higher levels of service quality. Should
employees not be required to consult their manager for everyday decisions, they
are able to solve a client’s problem quickly. This allows them to be responsive to
the needs of customers.44 Therefore, employees are best motivated to demonstrate
service spirit and customer orientation if they are well trained and informed.

CASE STUDY: Corriwood – a customer experience from hell

Corriwood is a well-known furniture brand in South Africa. Its brand image
represents quality, stylish and timeless furniture. Once a Corriwood supporter,
always a Corriwood supporter!!!! On 5 May 2021, Mr Simons decides to walk into
Corriwood at Cresta in Johannesburg to peruse the stylish furniture on the floor.
After about 20 minutes of perusing, Mr Simons decides on four dining room chairs
and two kitchen nook seaters. The total cost for the sale is R10,000. A decision is
made to secure the delivery of the dining room chairs four to six weeks later, and
an arrangement is made to have the kitchen nook chairs assembled by 11 May. All
is agreed and payment for the furniture is made.
After one week, Mr Simons is ready to collect his kitchen nook chairs. On arrival, no
staff member is aware of the chairs, frustrating Mr Simons. He calls for the manager
Copyright © 2012. Juta & Company, Limited. All rights reserved.

and reports his disappointment with his experience. The manager requests
Mr Simons to provide them with one hour to assemble the chairs, to which
Mr Simons does not agree. He indicates that he spent R10,000 a week earlier at
the store, and that if this is the service experience he is receiving, he rather wants
his money back. The manager then offers to have all the furniture delivered to
Mr Simons house free of charge, to which all agree.
After six weeks, Mr Simons enquires from Corriwood about the delivery of his
furniture, only to be told that the furniture will only be ready after eight weeks.
When the furniture is delivered, only the four dining room chairs are included.
After enquiry from Corriwood Cresta, they apologised and promised delivery of the
outstanding chairs by the next day.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 341
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 341 2022/03/29 11:20 AM

Consumer Behaviour

16.11 Summary
Building relationships with customers has become an important strategy to
drive future customer loyalty. Such a relationship-building approach requires an
understanding of the service engagement needs of customers to strengthen a
long-term relational intention. As a result, such a relationship-building approach
must be characterised by the involvement and commitment of both parties to
the relationship, the reactiveness of the business regarding the management
and resolution of customer queries and complaints, as well as the ability of the
business to pay individual attention to customers.45 A business can attract and
retain customers by knowing and delivering what they want, when they want it and
how they want it, and by making it easy for customers to interact with it. Thus, CRM
solutions have become strategic requirements in a customer-focused economy.
These solutions can help organisations to attract and retain customers in highly
competitive markets.

QUESTIONS FOR SELF-ASSESSMENT

To assess your progress, answer the following questions.

Paragraph/essay-type questions
1. Briefly discuss why relationship marketing has become a competitive
strategy in the modern marketplace.
2. Discuss broadly the importance of CRM in securing the future retention of
customers.
3. Critically explain why a growing understanding of social media, as an
interactive marketing tool, is required.
4. Consider Corriwood as a service provider in the South African retail
industry. Discuss the different aspects to be considered when developing
Copyright © 2012. Juta & Company, Limited. All rights reserved.

a CRM strategy.
5. Discuss why it is important to manage customers professionally in a highly
competitive environment.
6. Critically discuss how social media can be used in the management of
customers.
7. How can relationship loyalty be established with customers?
8. How would you be able to determine whether a company is in a position to
implement the principles of relationship marketing? In other words, what
are the limitations of implementing CRM?
9. Explain how an internal marketing strategy can enhance service quality
delivery to external customers.

Roberts-Lombard,342M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 342 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

10. Refer to the Corriwood case study, and answer the following questions:
A. Discuss why customer engagement is an important part of customer
service delivery.
B. Did the customer receive personal attention during his engagement
with Corriwood employees?
C. How could the employees of Corriwood have made the purchase
experience more memorable and strengthened customer satisfaction
in the long term?
D. Why is relationship building such a critical element in the South African
retail environment?
E. Will Mr Simons develop a loyalty to Corriwood after his experience at
the furniture shop? Motivate your answer clearly.
F. Explain why it is not acceptable for retail store employees to make
promises that are difficult to keep.
G. Provide guidelines to the customer service manager on how to address
a service failure in a manner that will secure customer satisfaction.

Multiple-choice questions
1. Customer relationship management enables organisations to provide
excellent real-time customer service through …
A. effective use of individual account information
B. professional service engagement
C. focused pricing and value
D. none of the above.
2. Relationship marketing is a strategy used to cultivate strong relationships
between a …
A. business and a customer
Copyright © 2012. Juta & Company, Limited. All rights reserved.

B. business and a business

C. customer and a business
D. all of the above.
3. Customer retention is only possible for a business if the following principle
is applied:
A. Trust
B. Correct price
C. Availability of choice
D. None of the above.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 343
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 343 2022/03/29 11:20 AM

Consumer Behaviour

4. CRM is perceived as an all-embracing approach, which seamlessly inte

grates …
A. profit and sales
B. sales and customer care
C. employee skills and sales volume
D. none of the above.
5. With their interactive nature, social media sites provide an opportunity for
marketers to learn about the …
A. nature of their customer expectations
B. demographics of their customer segment(s)
C. preference of their customer segment(s)
D. all of the above.
6. Customer engagement is by implication founded on the principle of …
A. customer research
B. business strategy
C. customer profile analysis
D. all of the above.
7. When a customer trusts in a business, the customer is more willing to
become _______ to the business.
A. attached
B. loyal
C. committed
D. all of the above.
8. _____ is generally concerned with maintaining the relationship established
between a service provider and a customer.
A. Customer focus
Copyright © 2012. Juta & Company, Limited. All rights reserved.

B. Customer alignment
C. Customer retention
D. All of the above.
9. _____ describes the present value of the stream of future profits that the
company expects to make from the customer’s lifetime purchases.
A. Customer lifetime value
B. Customer lifetime benefit
C. Customer lifetime profitability
D. All of the above.

Roberts-Lombard,344M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 344 2022/03/29 11:20 AM

Chapter 16: Building relationships with customers

10. According to the theory of reciprocity, people return good for good in
proportion to …
A. what they offer
B. what they expect
C. what they want
D. what they receive.
11. Programmes such as internal marketing focus on treating employees as
internal customers with the purpose to:
A. strengthen internal service delivery
B. enhance internal employee satisfaction
C. improve internal employee relationships
D. all of the above.
12. Three important changes have occurred that render segment-based
marketing not only inappropriate but also potentially damaging for a
business, namely:
A. customers have become more sophisticated and knowledgeable
B. there have been dramatic advances in technology
C. competing suppliers and products are cluttering the market
D. all of the above.
13. Post-purchase behaviour is induced by numerous aspects in the consumer
behaviour process, such as:
A. the level of service quality
B. increased customer satisfaction
C. increased levels of customer loyalty
D. all of the above.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 345
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:11.

Consumer Behaviour 5E.indb 345 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 346 2022/03/29 11:20 AM

References
Chapter 1
1 Shetna, J. Why consumer behaviour is important for business managers. EDUCBA.
[online] Available from: https://www.educba.com/consumer-behaviour-/.
Accessed: 2 July 2021.
2 Kardes, F., Cronley, M. & Cline, T.W. 2010. Consumer behaviour. USA: South-
Western Publications. p 8.
3 https://booksopenedition.org. Accessed: 2 July 2021.
4 https://booksopenedition.org. Accessed: 2 July 2021.
5 https:www.ukessays.com. Accessed: 3 July 2021.
6 https://www.demandjump.com/blog/the-importance-ofconsumer-behaviour-
in-marketing. Accessed: 3 July 2021.
7 Kumar, R. nd. Consumer behaviour. [online] Available from: https://www.acade
mia.edu/5617307/consumer_behaviour.....2. Accessed: 1 July 2017. pp 95−99.
8 htt ps://st udy.com/academy/lesson/what-is- c ustomer-value-marketing-
definition. Accessed: 3 July 2021.
9 Ibid.
10 Hawkins, D.I., Mothersbaugh, D.L. & Mookerjee, A. 2010. Consumer behaviour:
Building marketing strategy. 11th ed. New York: Tata McGraw-Hill. pp 25−26.

Chapter 2
1 Ferrell, O.C & Hartline, M.D. 2008. Marketing strategy. 4th ed. Mason, OH:
Thomson Higher Education. p 61.
2 Sheth, J.N., Mittal, B. & Newman, B.T. 1999. Customer behaviour: Consumer
Copyright © 2012. Juta & Company, Limited. All rights reserved.

behaviour and beyond. Orlando: Dryden. pp 77−80.

3 Forth, S. 2021. Why customer value management requires value-based pricing. [online]
Available from: https://www.ibbaka.com/ibbaka-market-blog/why-customer-
value-management-requires-value-based-pricing. Accessed: 14 November 2021.
4 Daniels, S. 2000. Customer value management. Work Study, 49(2), 68.
5 Sim, K.L. & Koh, H.C. 2001. Balanced scorecard: A rising trend in strategic
performance measurement. Measuring Business Excellence, 5(2), 19−24.
6 Oracle Customer Relationship Management. 2012. Seven power lessons for
customer experience leaders. [online] Available from: http://www.oracle.com/
us/corporate/acquisitions/rightnow/seven-power-lessons-wp-1502937.pdf.
Accessed: 2 July 2017.

Consumer Behaviour 5E.indb 375 2022/03/29 11:20 AM

Consumer Behaviour

Chapter 3
1 Lamb, C.W., Hair, J.F., McDaniel, C., Boshoff, C., Terblanché, N.S., Elliot,
R. & Klopper, H. 2010. Marketing. 4th ed. Cape Town: Oxford University Press.
2 Statistics South Africa. 2020. Mid-year population estimates. [online]. Available
from: P03022020.pdf (statssa.gov.za).
3 Ibid.
4 Ibid.
5 Ibid.
6 Ibid.
7 Statistics South Africa. 2019. General household survey. [online]. Available from:
GHS 2019 (statssa.gov.za).
8 Ibid.
9 Nkosi, B. 2021. Only 6% of South Africans have university degrees, report says.
Available from: https://www.iol.co.za/the-star/news/only-6-of-south-africans-
have-university-degrees-report-says-8717cdd0-e701-474b-96f1-2377038b32df.
10 Statistics South Africa, 2019, op cit.
11 Statistics South Africa. 2012. Social profile of vulnerable groups, 2002−2012. [online]
Available from: https://www.statssa.gov.za/publications/Report-03-19-00/
Report-03-19-002012.pdf. Accessed: 8 October 2014.
12 Statistics South Africa, 2019, op cit.
13 Hawkins, D.I. & Mothersbaugh, D.L. 2010. Consumer behaviour: Building
marketing strategy. 11th ed. New York: McGraw-Hill/Irwin.
14 Stats SA. 2021. Quarterly labour force survey 2021. [online]. Available from:
P02111stQuarter2021.pdf (statssa.gov.za).
15 Ibid.
16 Ibid.
17 Stats SA, 2019, op cit.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

18 Ibid.
19 Adam, F. 2021. Government must urgently deal with deepening water crisis.
Avail
able from: https://www.dailymaverick.co.za/article/2021-04-29-govern
ment-must-urgently-deal-with-south-africas-deepening-water-crisis/. Accessed:
30 January 2022.
20 Stats SA, 2019, op cit.
21 Stats SA, 2019, op cit.
22 Africa-energy. 2021. South Africa Power Report 2021/22. Available from:
https://www.africa-energy.com/report/south-africa-power-report-202122
23 Stats SA, 2019, op cit.
24 Statistics South Africa. 2010. Social Profile of South Africa, 2002−2009. Report
03-19-00. [online] Available from: http://www.statssa.gov.za/publications/
Report-03-19-00/Report-03-19-002009.pdf. Accessed: 8 October 2014.

Roberts-Lombard,376M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 376 2022/03/29 11:20 AM

References

25 Socio Economic Measures. 2021. Socio Economic Measures SEM. [Powerpoint].

212MMA8X14. 15 July 2021.
26 Ibid.
27 Dibb, S., Simkin, L., Pride, W.M. & Ferrell, O.C. 2006. Marketing: Concepts and
strategies. 5th European ed. Boston: Houghton Mifflin.
28 Lamb et al, op cit.
29 Oner, C. 2012. Inflation: Prices on the rise. Finance & Development. Available
from: http://www.imf.org/external/pubs/ft/fandd/basics/inflat.htm.
30 Statistics South Africa. 2014. Inflation. [online] Available from: http://beta2.
statssa.gov.za/?page_id=735&id=3. Accessed: 8 October 2014.
31 Lamb et al, op cit.
32 O’Neil, A. 2021. South Africa: Inflation rate 1986 to 2026. [online] Available from:
https://www.statista.com/statistics/370515/inflation-rate-in-south-africa/.
33 The World Bank. 2017. South Africa. [online] Available from: http://www.
worldbank.org/en/country/southafrica. Accessed: 18 April 2017.
34 Smith, E. 2021. South Africa races to halt third COVID wave as its economic outlook
improves. Available from: https://www.cnbc.com/2021/05/31/south-africa-races-
to-halt-third-covid-wave-as-its-economic-outlook-improves.html. Accessed:
30 January 2022.
35 Quelch, J. 2008. How to market in a recession. Harvard Business Review.
September 24, 2008.
36 Dibb et al, op cit.
37 Hawkins & Mothersbaugh, op cit.
38 South Africa – New York. nd. Why invest in South Africa. [online] Available from:
https://www.southafrica-newyork.net/why-invest-in-south-africa/. Accessed:
30 January 2022.
39 Statistics South Africa, 2018. BRICS: Where does SA rank? [online] Available from:
http://www.statssa.gov.za/?p=11355.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

40 African Development Bank Group. 2013. Africa and the BRICS: A win-win
partnership? [online] Available from: https://blogs.afdb.org/fr/afdb-cham
pioning-inclusive-growth-across-africa/post/africa-and-the-brics-a-win-win-
partnership-12098.
41 Lamb et al, op cit.
42 Gordan, P. 2016. 2016 Budget speech. South African government. [online] Available
from: http://www.gov.za/speeches/minister-pravin-gordhan-2016-budget-speech-
24-feb-2016-0000.
43 Michalsons. 2021. Protection of Personal Information Act summary | POPIA.
[online] Available from: https://www.michalsons.com/focus-areas/privacy-
and-data-protection/protection-of-personalinformation-act-popia.
44 South Africa info. 2012. South African consumer service bodies. [online] Available
from: http://www.southafrica.info/services/consumer/consumer.htm#.VDWz
T3YcTIU. Accessed: 8 October 2014.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 377
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 377 2022/03/29 11:20 AM

Consumer Behaviour

45 Dibb et al, op cit.

46 South African Government. nd. Tourism. [online] Available from: https://www.
gov.za/about-sa/tourism.
47 Hawkins & Mothersbaugh, op cit.
48 The WorldBank. 2019. CO2 emissions (metric ton per capita) – South Africa.
[online] Available from: https://data.worldbank.org/indicator/EN.ATM.CO2E.
PC?locations=ZA.
49 The WorldBank. 2019. CO2 emissions (metric ton per capita) – United States.
[online] Available from: https://data.worldbank.org/indicator/EN.ATM.CO2E.
PC?locations=US.
50 The WorldBank. 2019. CO2 emissions (metric ton per capita) – Qatar. Available
from: https://data.worldbank.org/indicator/EN.ATM.CO2E.PC?locations=QA.
51 Karombo, T. 2020. South Africa, already the continent’s biggest polluter, saw
a rise in carbon emissions last year. [online] Available from: https://qz.com/
africa/1946022/south-africa-saw-a-rise-in-carbon-emissions-in-2019/.
52 Department of Environmental Affairs. 2018. Climate trends and scenarios.
[online] Available from: https://www.sanbi.org/wp-content/uploads/2018/03/
ltas-factsheetclimate-trends-and-scenarios2013.pdf.
53 Hawkins & Mothersbaugh, op cit.
54 Lamb et al, op cit.
55 Dibb et al, op cit.
56 Lamb et al, op cit.
57 Altuglu, V., Aruoba, C.C. & Hoffman, I. 2020. 5 Questions with Donna Hoffman:
How technology is changing the customer experience. [online] Available from:
https://www.natlawreview.com/article/5-questions-donna-hoffmanhow-
technology-changing-customer-experience.
58 Dibb et al, op cit.
59 Hawkins & Mothersbaugh, op cit.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

60 Woolworths. 2014. Our good business journey: Our position statements. [online]
Available from: http://www.woolworths.co.za/store/fragments/corporate/cor
porate-index.jsp?content=../article/article&contentId=cmp202280. Accessed:
8 October 2014.
61 Woolworths. 2021. Woolworths green building certification. [online] Available from:
https://www.woolworths.co.za/content/article/good-business-journey/good-
business-journey/what-is-awoolworths-green-store-/_/A-cmp205941.
62 Ibid.
63 Ibid.
64 Woolworths. 2014. Our business. [online] Available from: http://www.wool
worths.co.za/store/fragments/corporate/corporate-index.jsp?content=../article/
article&contentId=cmp202280. Accessed: 8 October 2014.
65 Woolworths. 2014. Energy: What are we doing? [online] Available from:
http://www.woolworths.co.za/store/fragments/corporate/corporate-index.
jsp?content=../article/article&contentId=cmp100381. Accessed: 8 October 2014.

Roberts-Lombard,378M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 378 2022/03/29 11:20 AM

References

66 Woolworths. 2021. 10 ways we’re working with tomorrow in mind. [online]

Available from: https://www.woolworths.co.za/content/article/app-content/10-
ways-we-re-working/_/A-cmp207973.
67 Ibid.
68 Colgate. 2021. Colgate Naturals integrated sustainability campaign. [Powerpoint].
212MMA8X14. 19 June 2021.
69 De Villiers, J. 2018. How Carling Black Label reached more than 45 million people
worldwide to fight violence against women. [online] Available from: https://
www.businessinsider.co.za/carling-black-label-noexcuse-anti-gender-based-
violence-campaign-reach-45-million-people-loerie-award-2018-8. Accessed:
30 January 2022.
70 BBC. 2021. Laurel Hubbard: First transgender athlete to compete at Olym
pics.
[online] Available from: https://www.bbc.com/news/world-asia57549653#:
~:text=New%20Zealand’s%20Laurel%20Hubbard%20has,Olympics%2C%20
in%20a%20controver sial%20decision.
71 United Nations Human Rights. nd. Combating discrimination based on sexual
orientation and gender identity. [online] Available from: https://www.ohchr.org/
en/issues/discrimination/pages/lgbt.aspx.
72 Nyeck, S.N., Shepard, D., Sehoole, J., Ngcobozi, L. & Conron, K.J. 2019. The
Economic Cost of LGBT Stigma and Discrimination in South Africa. Research
that matters. 1(1): 1-106.
73 Constitutional Court of South Africa. nd. Gay and lesbian rights. [online]
Available from: https://www.concourt.org.za/index.php/gay-and-lesbian-rights.
74 Scheinder, J. & Auten, D. 2019. The growing demographic marketers don’t
know about. [online] Available from: https://www.forbes.com/sites/debt
freeg uys/2019/02/03/the-grow ing- demographic-marketers- dont-k now-
about/?sh=1a16de12206e.
75 Ibid.
76 Dos Santos. 2016. Marketing to LGBT consumers: Overcoming exclusion in pursuit
Copyright © 2012. Juta & Company, Limited. All rights reserved.

of the “Pink Rand”. [online] Available from: https://www.bizcommunity.com/

Article/196/423/140316.html.
77 Soweto Pride. 2011. Soweto Pride. [online] Available from: http://www.
sowetopride.co.za/. Accessed: 8 October 2014.
78 Stansfield, E. 2020. The rise of LGBTIQ+ marketing. [online] Available from:
https://newsroom.unsw.edu.au/news/business-law/rise-lgbtiq-marketing.
79 Jadezweni, A. 2021. H&M pride campaign features local store manager and will
donate over R1.3 million to LGBT+ charities. [online] Available from: https://www.
news24.com/w24/Style/Fashion/Trends/hm-pride-campaign-features-local-
store-manager-and-will-donate-over-r13-million-to-lgbt-charities-20210604.
80 Wingfield, B. 2017. Juggling a career and motherhood: A Joburg scientist tells her story.
[online] Available from: https://www.news24.com/parent/Family/Parenting/
juggling-a-career-and-motherhood-a-joburg-scientist-tells-her-story-20171003.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 379
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 379 2022/03/29 11:20 AM

Consumer Behaviour

81 Smidt, F. & Maigurai, L. 2020. Covid effect: New consumer behaviour trends in
South Africa. [online] Available from: https://www.thinkwithgoogle.com/intl/
en-ssa/consumer-insights/consumer-trends/covid-effect-7-new-consumer-
shopping-behaviour-trends-south-africa/.
82 Walker, M. 2021. For the love of convenience. [online] Available from: https://
themediaonline.co.za/2021/04/for-the-love-of-convenience/.
83 Chronis, M. 2012. Media choices of SA’s fairer sex. [online] Available from: https://
themediaonline.co.za/2012/08/media-choices-of-sas-fairer-sex/.
84 Media Online. 2018. PRC, Nielsen and IAB Sato fuse their data-sets. [online]
Available from: https://themediaonline.co.za/2018/06/prc-nielsen-and-iab-sa-
to-fuse-their-data-sets/.
85 Media Online. 2020. The marketing research foundation updates the industry.
[online] Available from: https://themediaonline.co.za/2020/05/the-marketing-
research-foundation-updates-the-industry/.
86 Socio Economic Measures, op cit.
87 Zwane, T. 2019. Black middle class more than doubles but struggle continues.
[online] Available from: https://www.news24.com/citypress/business/black-
middle-class-more-than-doubled-but-the-struggle-continues-20190429.
88 UCT Unilever Institute. 2012. 4 million and rising: black middle class expanding.
[online] Available from: http://www.uctunileverinstitute.co.za/research/
4-million-rising/. Accessed: 8 October 2014.
89 Socio Economic Measures, op cit.
90 Le Cordeur, K. 2010. A fresh perspective on Black Diamonds. [online] Available
from: https://www.mediaupdate.co.za/marketing/29692/a-fresh-perspective-
on-black-diamonds.
91 The Economist. 2021. South Africa’s black middle class has prospered under
democracy. [online] Available from: https://www.economist.com/middle-east-
and-africa/2021/01/07/south-africas-black-middle-class-has-prospered-under-
democracy.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

92 Marketing Update. 2009. “Black Diamonds” and the long tail. [online] Available
from: https://www.mediaupdate.co.za/marketing/19839/black-diamonds-and-
the-long-tail. Accessed: 8 October 2014.
93 Brown, J. 2016. Black middle class floating the economy. [online] Available
from: http://city-press.news24.com/Business/black-middle-class-floating-the-
economy-20160826. Accessed: 25 April 2017.
94 UCT Unilever Institute, op cit.
95 Jacobs, K. 2019. Google launches free wi-fi for Cape Flats. Available from: https://
www.capetownetc.com/news/google-launches-free-wi-fi-for-cape-flats/.
96 Mzekandaba, S. 2019. Google boosts free WiFi access for Cape Town. Available
from: https://www.itweb.co.za/content/DZQ58MVJmjaMzXy2.
97 Brown op cit.

Roberts-Lombard,380M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 380 2022/03/29 11:20 AM

References

98 Shapshak, T. 2019. Free Wi-Fi service Google station launched in Cape Town. [online]
Available from: https://www.forbes.com/sites/tobyshapshak/2019/11/07/free-
wi-fi-service-google-station-launched-in-capetown/?sh=666aae133b21; Porter,
J. 2020. Google winds down free station wi-fi program. [online] Available from:
https://www.theverge.com/2020/2/17/21140698/google-station-discontinued-
free-wifi-india-south-africa-railwaystations.
99 Paul, E. 2020. A close look at the possible impact of Google’s various initiatives
in Africa. [online] Available from: https://techpoint.africa/2020/09/29/impact-
googles-initiatives-africa/.
100 Mzekandaba, op cit.
101 Mzekandaba, op cit.
102 Shapshak, op cit.
103 Shapshak, op cit

Chapter 4
1 Hartmen, D. 2019. The role of culture in consumer behavior. [online] Available
from: https://bizfluent.com/info-7751633-role-culture-consumer-behavior.html.
Accessed: 10 July 2021.
2 Culture. [online] Available from: people.tamu.edu/-i-choudury/culture.html.
Accessed: 10 July 2021.
3 Bangladesh Open University. nd. Subculture and the consumer behaviour.
[online] Available from: https://www.ebookbou.edu.bd/Books/Text/SOB/MBA/
mba_4321/Unit-05.pdf. Accessed: 20 December 2021.
4 The European Business Review. 2020. Impact of culture on consumer buying
behavior. [online] Available from: https://www.europeanbusinessreview.com/
impact-of-culture-on-consumer-buying-behavior/. Accessed: 11 July 2021.
5 Birla Institute of Technology and Science. nd. Consumer beliefs – consumer
behaviour. [online] Available from: https://www.docsity.com/en/consumer-
Copyright © 2012. Juta & Company, Limited. All rights reserved.

beliefs-consumer-behaviour-lecture-slides/246087/. Accessed 11 July 2021.

6 The Embassy of Good Science. nd. Values and norms. [online] Available from:
https://embassy.science/wiki/Theme:B4f7b2e3-af61-4466-94dc-2504affab5a8.
Accessed: 11 July 2021.

Chapter 5
1 Your Article Library. nd. Reference groups: Meaning, types, factors and application.
[online] Available from: https://www.yourarticlelibrary.com/consumer-
behaviour/reference-groups/reference-groups-meaning-types-factors-and-
application-consumer/64147. Accessed: 15 November 2021.
2 iEduNote. nd. Reference groups: Meaning, types, primary and secondary reference
groups. [online] Available from: https://www.iedunote.com/reference-groups.
Accessed: 15 November 2021.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 381
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 381 2022/03/29 11:20 AM

Consumer Behaviour

3 Tutorials Point. Nd. Consumer behaviour – reference groups. [online] Available

from: https://www.tutorialspoint.com/consumer_behavior/consumer_behavior_
reference_groups.htm. Accessed: 15 November 2021.
4 Trocchia, P.J. & Swinder, J. 2000. A phenomenological investigation of internet
usage among older individuals. Journal of Consumer Marketing, 17(7), 605−616.
5 Wisdom Jobs. nd. What is social class – consumer behaviour. [online] Available at:
https://www.wisdomjobs.com/e-university/consumer-behaviour-tutorial-94/
what-is-a-social-class-10500.html. Accessed: 21 December 2021.
6 Ibid.
7 Ibid.

Chapter 6
1 Czinkota, R., Ronkainen, I.A. & Moffet, M.H. 2009. Fundamentals of inter
national business. 2nd ed. Ashland: Wessex Press. p 43.
2 Haupt, P. nd. The SAARF Universal Living Standards Measure (SU-LSMTM).
12 years of continuous development. [online] Available from: http://www.saarf.
co.za/LSM/lsm-article.asp. Accessed: 4 July 2017.
3 Steans, J. 2013. Gender and international relations. 3rd ed. USA: Polity Press. p 7.
4 Ogden-Barnes, S. 2012. Men and shopping. [online] Available from: http://www.
deakin.edu.au/buslaw/gsb/retail/docs/men-and-shopping-2.pdf. Accessed: 6 Feb
ruary 2014.
5 Crooks, R. & Baur, K. 2010. Sexuality. 11th ed. USA: Wandsworth Cengage
Learning. p 144.
6 Hawkins, D.I., Mothersbaugh, D.L. & Mookerjee, A. 2010. Consumer behaviour:
Building marketing strategy. 11th ed. New York: Tata McGraw-Hill. p 110.
7 Gobe, M. 2009. Emotional branding. New York: Alworth Press. pp 44−46.
8 Urban dictionary. 2005. Ubersexual. [online] Available from: http://www.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

urbandictionary.com/define.php?term=ubersexual. Accessed: 4 July 2017.

9 Based on: Is this the end of gender marketing. Available from: https://www.
adlucent.com/resources/blog/gender-marketing/ Accessed; 17 November 2021.
10 Dua, T. 2021. Trans and non-binary representation is going mainstream in advertising,
with brands like e.l.f. Beauty, Mastercard and Starbucks on board. [online] Available
from: https://www.businessinsider.com/trans-and-non-binary-representation-
is-going-mainstream-in-advertising-2021-6?IR=T. Accessed 17 November 2021.
11 Touhy, T.A. & Jett, K.F. 2014. Gerontological nursing & healthy aging. Missouri:
Elsevier. p 73.
12 Williams, K.C. & Page, R.A. nd. Marketing to the generations. Journal of
behavioural studies in business. [online] Available from: http://www.aabri.com/
manuscripts/10575.pdf. Accessed: 4 July 2017. p 3.
13 Edgar, L. & Bunker, D. nd. It’s all in the mind: Changing the way we think about
age. [online] Available from: http://downloads.bbc.co.uk/commissioning/site/
Changing_the_way_you_think_about_age_paper.pdf. Accessed: 4 July 2017.

Roberts-Lombard,382M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 382 2022/03/29 11:20 AM

References

14 Shiffman, G. & Sherman, E. 1991. The value orientation of new-age elderly:

The coming of an ageless market. Journal of business research, 22(2):187−194.
15 Wieland, A. 2011. The use of ethnographic research in product development: A study on
the grocery packaging problems of elderly people. Unpublished thesis. New Zealand:
Massey University. [online] Available from: http://mro.massey.ac.nz/bitstream/
handle/10179/2784/02_whole.pdf?sequence=1. Accessed: 4 July 2017.
16 Lamb, C., Hair, J. & McDaniel, C. 2011. Marketing. 11th ed. USA: South-Western
Cengage Learning. p 114.
17 Where are the ads targeting boomers? nd. [online] Available from: http://www.
thebeaconnewspapers.com/beacon-insider/where-are-ads-targetingboomers.
Accessed: 4 July 2017.
18 Forgach, K. 2012. Ads targeting baby boomers rule at Super Bowl. [online] Available
from: http://www.boomercafe.com/2012/01/31/ads-targeting-baby-boomers-
rule-at-super-bowl/ Accessed: 4 July 2017.
19 Lantos, G. 2011. Consumer behaviour in action: Real-life applications for marketing
managers. New York: Sharpe Inc. p 204.
20 DeMarco, D. 2014. The Gen-X friendly workplace. [online] Available from: http://
www.shelfplus.com/material-handling-hotline/gen-x-friendly-workplace/
2014/. Accessed: 4 July 2017.
21 Hawkings et al, op cit, p 149.
22 Pentecost, R. & Andrews, L. 2010. Fashion retailing and bottom line: The effects
of generational cohorts, gender, fashion fanship attitudes and impulsive buying
on fashion expenditure. Journal of retailing and consumer services, 17(1), 43−52.
23 Ibid.
24 Williams, K.C., Page, R.P., Petrosky, A.R. & Hernandez, E.H. nd. Multi-
generational marketing: Descriptions, characteristics, lifestyles, and
attitudes. Journal of Applied Business and Economics, 119(2). [online] Available
from: http://m.www.na-businesspress.com/JABE/Jabe112/WilliamsWeb.pdf.
Accessed: 4 July 2017.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Chapter 7
1 What is customer perception. nd. [online] Available from: www.discuss.io/what-
is-customer-perception. Accessed: 4 July 2021.
2 Niosi, A.E. nd. Introduction to consumer behaviour. [online] Available at: https://
kpu.pressbooks.pub/introconsumerbehaviour/chapter/the-perceptual-process/.
Accessed: 5 July 2021.
3 Monger, B. nd. Better advertising and communication. [online] Available from: http://
www.marketing.org.au/images/cimages/nl04_03/Better%20Advertising%20
and%20Communication.pdf. Accessed: 4 July 2017.
4 Anderson, C.M. 2013. Leadership for adolescents. Bloomington: iUniverse. p 83.
5 Burrows, J. 2013. Visually communicating honesty: A semiotic analysis of Dorset
Cereals packaging. Unpublished Honours dissertation. England: University of
Leeds. p 14.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 383
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 383 2022/03/29 11:20 AM

Consumer Behaviour

6 Experiential learning. nd. [online] Available from: https://www.bu.edu/ctl/

guides/experiential-learning/. Accessed: 23 December 2021.
7 Blythe, J. 2013. Consumer behaviour. 2nd ed. London: SAGE. p 128.
8 Blythe, op cit, pp 131−134.

Chapter 8
1 Bown-Wilson, D. 2019. Definition of consumer motivation. [online] Available
from: https://bizfluent.com/about-6572429-definition-consumer-motivation.
html. Accessed: 6 July 2021.
2 Lumen Learning. nd. Introduction to marketing. [online] Available from: https://
courses.lumenlearning.com/boundless-marketing/chapter/introduction-to-
marketing/#:~:text=A%20need%20is%20a%20consumer,but%20which%20
consumers%20wish%20for. Accessed: 6 July 2021.
3 Hashim, M. 2013. A guide to human resource management: Basic concepts. Miami:
Academic Press Corporation. p 52.
4 Basso, K. et al. 2019. Purchase decision and purchase delay of hedonic and utilitarian
products in the face of time pressure and multiplicity of options. [online] Available
from: https://www.emerald.com/insight/content/doi/10.1108/REGE-01-2018-
0022/full/html. Accessed: 6 July 2021.
5 N. Sam M.S. 2013. Need arousal. [online] Available from: https://psychology
dictionary.org/need-arousal/. Accessed: 6 July 2021.
6 Changing minds. Nd. Three types of arousal. [online] Available from: http://
changingminds.org/explanations/motivation/three_arousal.htm#:~:text
=Cognitive%20arousal,curiosity%2C%20novelty%20and%20general%20
interest. Accessed: 6 July 2021.
7 Parumasur, S.B. & Roberts-Lombard, M. 2012. Consumer behaviour. 2nd ed.
Claremont: Juta & Co. p 168.
8 Cherry, K. 2021. The 5 levels of Maslow’s Hierarchy of Needs. [online]. Available from:
Copyright © 2012. Juta & Company, Limited. All rights reserved.

https://www.verywellmind.com/what-is-maslows-hierarchy-of-needs-4136760.
Accessed: 6 July 2021.
9 Ibid.
10 Revella, A. 2021. Psychographics and personas: How to get to the truth about
why people buy. [online] Available from: https://www.hotjar.com/blog/
psychographics-in-marketing/. Accessed: 6 July 2021.
11 Mintz, S. 2018. What are values. [online] Available from: https://www.ethicssage.
com/2018/08/what-are-values.html. Accessed: 6 July 2021.

Chapter 9
1 MBA Skool. 2020. Attitude meaning, importance & example. [online] Available
from: https://www.mbaskool.com/business-concepts/marketing-and-strategy-
terms/1579-attitude.html. Accessed: 6 July 2021.

Roberts-Lombard,384M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 384 2022/03/29 11:20 AM

References

2 Drew, C. 2020. The 3 components of attitude (ABC/Tripartite Model). [online]

Available from: https://helpfulprofessor.com/abc-attitude-model/. Accessed:
6 July 2021.
3 Joubert, P. 2013. Introduction to consumer behaviour. 2nd ed. Cape Town: Juta &
Co. p 83.
4 Drew, op cit.
5 Citeman. 2010. Functions of attitudes. [online] Available from: https://www.
citeman.com/10170 -f unctions- of-attit udes.html#:~:text=Attit udes%20
serve%20four%20major%20functions,image%20they%20hold%20of%20
themselves. Accessed: 7 July 2021.
6 Ibid.
7 Ibid.
8 Pastorino, E. & Doyle-Portillo, S. 2012. What is psychology essentials. 2nd ed.
USA: Wadsworth Cengage Learning. p 169.
9 Kumar, R. nd. Consumer behaviour. [online] Available from: https://www.
academia.edu/1430234/CONSUMER_BEHAVIOUR. Accessed: 5 July 2017.
10 Gupta, S. 2014. “May be hazardous to your health”; New Years Resolution. [online]
Available from: http://transcripts.cnn.com/TRANSCRIPTS/1401/05/hcsg.01.
html. Accessed: 5 July 2017.

Chapter 10
1 Derbyshire, L.A. nd. The role of personality in consumer behaviour. [online].
Available from: https://top500.co.za/news/the-role-of-personality-in-con
sumer-behaviour/. Accessed: 7 July 2021.
2 Ibid.
3 Ibid.
4 Kashyap, D. nd. Personality of consumer: Nature, theories and lifestyle concept.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

[online] Available from: https://www.yourarticlelibrary.com/consumers/

personality-consumers/personality-of-consumer-nature-theories-and-life-
style-concept/64136. Accessed: 7 July 2021.
5 American Marketing Association (AMA). 2011. Dictionary of terms.
[online] Available from: https://www.ama.org/resources/Pages/Dictionary.
aspx?dLetter=P. Accessed: 7 July 2021.
6 iEduNote. nd. Personality: Characteristics, factors, roles, theories of personality.
[online] Available from: https://www.iedunote.com/personality. Accessed:
8 July 2021.
7 BBA Mantra. nd. Available from: https://bbamantra.com/category/consumer-
behaviour/. Accessed: 23 January 2022.
8 Huitt, W.G. 2011. Self and self-views. [online] Available from: http://www.
edpsycinteractive.org/topics/self/self.html. Accessed: 6 July 2017.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 385
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 385 2022/03/29 11:20 AM

Consumer Behaviour

Chapter 11
1 Lapaas. 2020. What is STP marketing? Segmentation, targeting & positioning. [online].
Available from: https://lapaas.com/stp-marketing/. Accessed: 9 November 2021.
2 Ibid.
3 Jashaliya, K. nd. Market segmentation: Meaning, definition, bases, importance,
levels, benefits. [online] Available from: https://www.economicsdiscussion.net/
market-segmentation/market-segmentation/32464. Accessed: 9 November 2021.
4 This section draws heavily on Martins, J.H. 2004. Market segmentation of the
consumer market in South Africa. International Retail and Marketing Review,
pp. 44–58, who examined and analysed work by: Parker, D.G. 1998. Effects
of changing consumer lifestyles in the retail market. Abridged version of a 1998
SAMRA paper; and Martins, J. 2007. The South African Consumer Market.
Global Journal of Business Research, 1(1), 168–183. Available from: SSRN: https://
ssrn.com/abstract=1542835. Accessed: 9 November 2021.
5 Source: https:\\media.cheggcdn.com/media%2F668%2F668a5126-e768-4555-
9474-a6e43349a1b3%2Fphplzthyr.png.
6 Martins, J. 2007. The South African consumer market. Global Journal of Business
Research 1, 168–183.
7 Martins, J.H. 2002. Consumer market segmentation in South Africa: A
multicultural country where first and third world values meet. South African
Business Review, 6(1), 7–17; and Martins, J.H. 2012. Marketing segmentation
of the consumer market in South Africa. International Retail and Marketing
Review, 8, 61–74.
8 Sheth, N.J., Mittal, B. & Newman, B.I. 1999. Customer behavior: Consumer
behavior and beyond. Orlando: Dryden Press. p 454.
9 Haley, R. 1968. Benefit segmentation: A decision-oriented research tool. Journal
of Marketing, 32(3), 30–35.
10 Beane, T.P. & Ennis, D.M. 1987. Market segmentation: A review. European Journal
Copyright © 2012. Juta & Company, Limited. All rights reserved.

of Marketing, 21(5), pp 20–42.

11 Sheth et al, op cit.
12 Marketing Basics. 2010. Marketing segmentation. [online] Available from:
https://marketingbasics.blogspot.com/; Consumer Behaviour. 2007. Purchase
decision makers. [online] Available from: https://consumer-behaviour.
blogspot.com/2007/11/purchase-decision-makers-finally-point.html. Accessed:
9 November 2021.
13 Draws heavily on Hague, P. & Harrison, M. nd. White paper: Market segmentation
in B2B markets. [online] Available from: www.b2binternational.com/publica
tions/white-papers/b2b-segmentation-research/. Accessed: 9 November 2021.
14 Houston, F.S. 1986. The marketing concept: What it is and what it is not. Journal
of Marketing, 50(2), 81–87.
15 Claessens, M. 2016. Market segmentation criteria – how to segment markets.
[online] Available from: https://marketing-insider.eu/market-segmentation-
criteria/. Accessed: 9 November 2021.

Roberts-Lombard,386M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 386 2022/03/29 11:20 AM

References

16 Grams, C. 2012. The AD-free brand – secrets to building successful brands in a

digital world. USA: Library of Congress Cataloging. p 12.
17 Source: https://www.segmentationstudyguide.com/welcome-page/about/.
18 Pahwa, A. 2021. Brand positioning: Definition, types, & examples. [online]
Available from: https://www.feedough.com/brand-positioning/. Accessed:
9 November 2021. Also read: Brooksbank, R. 1994. The anatomy of marketing
positioning strategy. Marketing Intelligence & Planning, 12(4), 10; and Aaker, D.A.,
& Shansby, J.G. 1982. Positioning your product. Business Horizons, 25(3), 56–62.
19 Source: https://1.bp.blogspot.com/_7fq1mm2vrl8/SCUc0Tgc3lI/AAAAAAAAA
ZM/9N4FIZoBktc/s400/AvisNo2ism65.jpg.
20 Lamb, C.W., Hair, J.F., McDaniel, C., Boshoff, C. & Terblanché, N.S. 2000.
Marketing. Cape Town: Oxford University Press.
21 Pollack, G. nd. Brand management – the power of brand repositioning: A four-phased
process. [online] Available from: https://www.marketingprofs.com/8/power-of-
brand-repositioning-four-phased-process-pollack.asp. Accessed: 9 November 2021.
22 Arthur, R. 2018. Coca-Cola: ‘The turnaround of Diet Coke is not coming at the
expense of Coke Zero Sugar’. [online] Available from: https://www.beveragedaily.
com/Article/2018/07/31/Coca-Cola-The-turnaround-of-Diet-Coke-is-not-
coming-at-the-expense-of-Coke-Zero-Sugar. Accessed: 9 November 2021.
23 Pork Checkoff. nd. The Other White Meat® brand. [online] Available from:
https://www.porkcheckoff.org/pork-branding/pork-brands/the-other-white-
meat-brand/. Accessed: 9 November 2021.

Chapter 12
1 Frederick, M. & Hattingh, D. 2020. Survey: South African consumer sentiment
during the coronavirus crisis. [online] Available from: https://www.mckinsey.
com/business-functions/marketing-and-sales/our-insights/survey-south-african-
consumer-sentiment-during-the-coronavirus-crisis. Accessed: 2 August 2021.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

2 McNamara, V. 2020. How panic buying affects different markets. [online] Available
from: https://globaledge.msu.edu/blog/post/56866/how-panic-buying-affects-
different-markets. Accessed: 2 August 2021.
3 Potgieter, D., Wiese, M. & Straheim, A. 2013. Demographic differences in adult
consumers’ decision-making styles in Tshwane, South Africa. Journal of Family
Ecology and Consumer Sciences, 41, 2.
4 De Mooij, M. & Hofstede, G. 2011. Cross-cultural consumer behavior: A review of
research findings. Journal of International Consumer Marketing, 23(3–4), 181–192.
5 Potgieter, D., Wiese, M. & Straheim, A. 2013. Demographic differences in adult
consumers’ decision-making styles in Tshwane, South Africa. Journal of Family
Ecology and Consumer Sciences, 41, 15.
6 Ibid.
7 Mokhlis, S. 2009. An investigation of consumer decision making sly of young
adults in Malaysia. International Journal of Business Management, 4(14), 140–148.
p 144.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 387
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 387 2022/03/29 11:20 AM

Consumer Behaviour

8 Ibid.
9 Potgieter et al, op cit, p 18.
10 Potgieter et al, op cit, p 18.
11 Potgieter et al, op cit, p 25.
12 Schiffman, L.G. & Wisenblit, J.L. 2021. Consumer behavior. Global and southern
African perspectives. 2nd ed. South Africa: Pearson Education.
13 Adapted from Peter, J.P. & Olson, J.C. 2010. Consumer behavior and marketing
strategy. 9th ed. Boston: McGraw-Hill International Edition. p 163.
14 Ariely, D. 2000. Controlling the information flow: Effects on consumers
decision making and preferences. Journal of Consumer Research, 27, 233−248.
15 Peter, J.P. & Olson, J.C. 2008. Consumer behavior and marketing strategy. 8th ed.
International edition. Boston: McGraw-Hill.
16 Assael, H. 1998. Consumer behavior and marketing action. 6th ed. Cincinnati,
Ohio: South Western College Publishing.
17 Assael, H. 2004. Consumer behavior: A strategic approach. Boston: Houghton
Mifflin Company.
18 Hoyer, W.D., MacInnis, D.J. & Pieters, R. 2013. Consumer behavior. 6th ed.
Masob, Ohio: South-Western Cengage Learning.
19 Blackwell, R.D., Miniard, P.W. & Engel, J.F. 2006. Consumer behavior. 10th ed.
International Student Edition. Australia: Thomson South-Western.
20 Schiffman & Wisenblit, op cit.
21 Hoyer et al, op cit.
22 Assael, 2004, op cit.
23 Blackwell et al, op cit.
24 Hoyer et al, op cit.
25 Peter, J.P. & Olson, J.C. 2010. Consumer behavior and marketing strategy. McGraw-
Hill Irwin.
26 Schiffman & Kanuk, op cit.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

27 Du Plessis, P.J., Rousseau, G.G., Boshoff, C., Ehlers, L., Engelbrecht, M., Joubert, R.
& Sanders, S. 2007. Buyer behaviour: Understanding consumer psychology and
marketing. 4th ed. Cape Town: Oxford University Press.
28 Tsiros, M. & Mittal, V. 2000. Regret: A model of its antecedents and consequences
in consumer decision making. Journal of Consumer Research, 26, 401−17.
29 Blackwell et al, op cit.
30 Du Plessis et al, op cit.
31 Hawkins, D.I. & Mothersbaugh, D.L., Hawkins, D.I. & Kleiser, B. 2021. Consumer
behavior: Building marketing strategy. 14th ed. New York: McGraw-Hill, Irwin.
32 Du Plessis et al, op cit.
33 Hoyer et al, op cit.
34 Hawkins et al, op cit.
35 Lamb, C.W., Hair, J.F. & McDaniel, C. 2021. Marketing. 6th ed. Cape Town:
Oxford University Press.

Roberts-Lombard,388M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 388 2022/03/29 11:20 AM

References

Chapter 13
1 BBA Matra. nd. Family influence on consumer behaviour. [online] Available from:
https://bbamantra.com/family-influence-on-consumer-behaviour/. Accessed:
8 July 2021.
2 This section is based largely on: Oelze, P. 2020. There are 6 different family types
and each one has a unique family dynamic. [online] Available from: https://www.
betterhelp.com/advice/family/there-are-6-different-family-types-and-each-
one-has-a-unique-family-dynamic/. Accessed: 8 July 2021.
3 Schiffman, L.G. & Kanuk, L.L. 2000. Consumer behaviour. 7th ed. Upper Saddle
River: Prentice Hall.
4 South African Research Foundation (SAARF). 2014. All media and products
study 2014. [online] Available from: http://www.saarf.co.za/LSM/lifestages.asp.
Accessed: 11 August 2014.
5 Adapted from ibid.
6 Adapted from ibid.
7 Adapted from Jordaan, J.C., Meiring, J. & Van Aardt, C.J. 2013. Modelling
the income and expenditure of South African households: the impact of
international and local economic events on the South African economy. Bureau
of Market Research, Unisa. Research Report, 439.

Chapter 14
1 Kotler, P. & Armstrong, G. 2010. Principles of marketing: Global and southern
African perspectives. Cape Town, South Africa: Pearson South Africa.
2 Cant, M.C., Van Heerden, C.H. & Ngambi, H.C. eds. 2013. Marketing management:
A South African perspective. 2nd ed. Cape Town, South Africa: Juta & Co. p 704.
3 Van der Merwe, S. 2000. How increasing value to customers improves business
results. Sloan Management Review, 42, 27–37.
4 Van der Merwe, S. 1993. Jumping into the customer activity cycle. The Columbia
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Journal of World Business, 28(2), 46–65.

5 Van der Merwe, 2000, op cit.
6 Cant, Van Heerden & Ngambi, op cit, p 708.
7 Blythe, J. 2013. Consumer behaviour. 2nd ed. London, UK: SAGE. p 377.
8 Ronchetto Jr, J.A., Hutt, M.D. & Reingen, P.H. 1989. Embedded influence
patterns in organizational buying systems. Journal of Marketing, 53, 51–62.
9 Kotler & Armstrong, op cit.
10 Mohr, J. & Spekman, R. 1994. Characteristics of partnership success: Partnership
attributes, communication behavior, and conflict resolution techniques.
Strategic Management Journal, 15(2), 135–152.
11 Ritter, T., Wilkinson, I.F. & Johnston, W.J. 2002. Measuring network com
petence: Some international evidence. Journal of Business and Industrial
Marketing, 17(2/3), 119–138.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 389
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 389 2022/03/29 11:20 AM

Consumer Behaviour

12 Hamel, G. & Heene, A. 1994. Competence-based competition. New York: John

Wiley.
13 Hitt, M.A. & Ireland, R.D. 1986. Relationships among corporate level distinctive
competencies, diversification strategy, corporate strategy and performance.
Journal of Management Studies, 23(4), 401–416.
14 Sirmon, D.G., Hitt, M.A. & Ireland, R.D. et al. 2007. Managing firm resources in
dynamic environments to create value: Looking inside the black box. Academy
of Management Review, 32(1), 273–292.
15 Palmatier, R., Scheer, L., Evans, K. & Arnold, T. 2008. Achieving relationship
marketing effectiveness in business-to-business exchanges. Journal of the Aca
demy of Marketing Science, 36(2), 174–190.
16 Ritter et al, op cit.
17 Hamel & Heene, op cit.
18 Hitt & Ireland, op cit.
19 Sirmon et al, op cit.
20 Cunningham, M.T., Ford, I.D. & Turnbull, P.W. 1980. The marketing and pur
chasing of industrial products between five European countries. London: Social
Science Research Council.
21 Turnbull, P., Ford, D. & Cunningham, M. 1996. Interaction, relationships and
networks in business markets: An evolving perspective. Journal of Business and
Industrial Marketing, 11(3), 44–62.
22 Ford, D. in Håkanson, H., Harrison, D. & Waluszewski, A. 2004. Rethinking
marketing: Developing a new understanding of markets. Chichester: John Wiley &
Sons. p 15.
23 Anderson et al, op cit.
24 Anderson, J.C., Narus, J.A. & Narayandas, D. 2009. Business market management:
Understanding, creating and delivering value. Upper Saddle River, New Jersey:
Pearson Prentice Hall.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

25 Hutt, M.D. & Speh, T.W. 2010. Business marketing management: B2B. Mason, OH:
South-Western Cengage Learning.
26 Bingham Jr, F.G., Gomes, R. & Knowles, P.A. 2005. Business marketing. New
York: McGraw-Hill Irwin.
27 Wright, R. 2004. Business-to-business marketing. Essex: FT Prentice Hall.
28 Cant, Van Heerden & Ngambi, op cit, p 713.
29 Homans, G.C. 1958. Social behavior as exchange. American Journal of Sociology,
63(6), 597–606.
30 Frans, P. & Lars, H.N. 2006. Conceptualising, delineating and analysing
business networks. European Journal of Marketing, 40(3), 384–407.
31 Morgan, R.M. & Hunt, S.D. 1994. The commitment–trust theory of relationship
marketing. Journal of Marketing, 58, 20–38.
32 Homans, op cit.
33 Cant, Van Heerden & Ngambi, op cit, p 715.

Roberts-Lombard,390M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 390 2022/03/29 11:20 AM

References

34 Håkanson, H. 1982. International marketing and purchasing of industrial goods:

An interaction approach. Chichester: John Wiley & Sons.
35 Lages, L.F., Lancastre, A. & Lages, C. 2008. The B2B-RELPERF scale and score
card: Bringing relationship marketing theory into business-to-business practice.
Industrial Marketing Management, 37, 686–697.
36 Ibid.
37 Morgan & Hunt, op cit.
38 Anderson, E. & Weitz, B. 1992. The use of pledges to build and sustain commit
ment in distribution channels. Journal of Marketing Research, 29(1), 18–34.
39 Lages et al, op cit.
40 Morgan & Hunt, op cit.
41 Ibid.
42 Roberts, K., Varki, S. & Brodie, R. 2003. Measuring the quality of relationships
in consumer services: An empirical study. European Journal of Marketing, 37(1/2),
169–196.
43 Brennan, R., Canning, L. & McDowell, R. 2007. Business-to-business marketing.
London: SAGE.
44 Cant, Van Heerden & Ngambi, op cit, p 717.

Chapter 15
1 Kotler, P. & Armstrong, G. 2016. Principles of marketing: Global edition. 17th ed.
Cape Town: Pearson Education Ltd.
2 Brucks, M., Zeithaml, V.A. & Naylor, G. 2000. Price and brand name as
indicators of quality dimensions for consumer durables. Journal of the Academy
of Marketing Science, 28(3), 359−74.
3 Evans, M., Jamal, A. & Foxall, G. 2009. Consumer behaviour. 2nd ed. Southern
Gate, Chichester: John Wiley & Sons, Ltd.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

4 Solomon, M.R. 2019. Consumer behavior: Buying, having and being. 13th ed.
Pearson International Edition. Upper Saddle River, NJ: Pearson Prentice Hall.
5 Peter, J.P. & Olson, J.C. 2010. Consumer behavior and marketing strategy. 9th ed.
International edition. Boston: McGraw-Hill.
6 Andrews, L. 2018. #AskArikaAhaMoment: The brand loyalty shift explained.
Research News South Africa, BizCommunity. [online] Available from: https://
www.bizcommunity.com/Article/196/19/198166.html. Accessed: 5 August 2021.
7 Mokhlis, S. 2009. Determinants of choice criteria in Malaysia’s retail banking:
An analysis of gender-based choice decisions. European Journal of Economics,
Finance and Administrative Sciences, 16, 19–30.
8 De Chernatony, L., McDonald, M. & Wallace, E. 2011. Creating powerful brands
in consumer, service and industrial markets. Journal of Brand Management, 19(2).
9 Foster, J. & Tindale, K. 1984. Stretching the brand − the low-risk, high yield
strategy. Brandtastic. Marketing Mix, 3(10), 25−28.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 391
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 391 2022/03/29 11:20 AM

Consumer Behaviour

10 Quester, P., Pettigrew, S., Kopanidis, F., Hill, S.R. & Hawkins, D.I. 2014. Consumer
behaviour: Implications for marketing strategy. 7th ed. Australia: McGraw-Hill.
11 Anarson, B. & Zufferli, L. 2020. COVID-19: Maintaining customer loyalty and
trust during times of uncertainty. Deloitte. [online] Available from: https://www2.
deloitte.com/ca/en/pages/finance/articles/covid-19-maintaining-customer-
loyalty-trust-during-uncertainty.html. Accessed: 5 August 2021.
12 Ibid.
13 LoyaltyPlus. 2021. Customer loyalty should remain top of mind during
COVID-19. ITWeb. [online] Available from: https://www.itweb.co.za/content/
wbrpOqgYE8R7DLZn. Accessed: 5 August 2021.
14 George, R. 2020. Retailers must consider new customer priorities as COVID-10
accelerates digital transformation. Deloitte. [online] Available from: https://
www2.deloitte.com/za/en/pages/about-deloitte/press-releases/Retailers-must-
consider-new-customer-priorities-as-COVID-19-accelerates.html. Accessed:
6 August 2021.
15 Foster & Tindale, op cit.
16 Hoyer, W.D., MacInnis, D.J. & Pieters, R. 2013. Consumer behavior. 6th ed.
International edition. Mason, OH: South-Western Cengage Learning.
17 Blythe, J. 2013. Consumer behaviour. 2nd ed. Thousand Oaks, California: SAGE.
18 Horton, R.L. 1984. Buyer behavior: A decision-making approach. Columbus: Merrill.
19 Duncan, T. 2002. IMC: Using advertising and promotion to build brands. Boston:
McGraw-Hill, Irwin.
20 Heilman, C.M., Bowman, D. & Wright, G.P. 2000. The evolution of brand
preferences and choice behaviours of consumers new to a market. Journal of
Marketing Research, 37, May, 139−155.
21 Brown, G. 1952. Brand loyalty – fact or fiction? Advertising Age, 19, June, 53−55.
22 Tucker, W.T. 1964. The development of brand loyalty. Journal of Marketing
Research, 3, August, 32−35.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

23 Lawrence, R.J. 1969. Patterns of buyer behaviour: Time for a new approach?
Journal of Marketing Research, 6, May, 137−144.
24 Blattberg, R.C. & Sen, S.K. 1976. Market segments and stochastic brand choice
models. Journal of Marketing Research, 13, February, 34−45.
25 Day, G.S. 1976. A two-dimensional concept of brand loyalty. In: Mathematical
models in marketing. Lecture notes in economics and mathematical sciences
(operations research), vol. 132. Berlin, Heidelberg: Springer.
26 Ibid.
27 Assael, H. 2004. Consumer behavior: A strategic approach. 5th ed. Boston:
Houghton Mifflin.
28 Yao Yao, V. 2019. Emotional antecedents of customer loyalty in the formal retail
industry of South Africa. PhD thesis. University of South Africa.
29 Carman, J.M. 1970. Correlates of brand loyalty: Some positive results. Journal of
Marketing Research, 7, February, 67−76.

Roberts-Lombard,392M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 392 2022/03/29 11:20 AM

References

30 Rao, T.R. 1969. Consumers purchase decision process: Stochastic models.

Journal of Marketing Research, 6, August, 321−329.
31 Kuehn, A.A. 1962. Consumer brand choice as a learning process. Journal of
Marketing Research, 20(4), 393−405.
32 Blackwell, R.D., Miniard, P.W. & Engel, J.F. 2001. Consumer behaviour. London:
Harcourt College Publishers.
33 Skinner, S.J. 1990. Marketing. Boston: Houghton Mifflin.
34 Weiss, E.B., cited in Patti, C.H. & Fisk, R.P. 1982. National advertising, brands
and channel control: An historical perspective with contemporary options.
Academy of Marketing Science Journal, 10(1), 90−108.
35 Patti, C.H. & Fisk, R.P. 1982. National advertising, brands and channel control:
An historical perspective with contemporary options. Academy of Marketing
Science Journal, 10(1), 90−108.
36 Corstjens, M. & Lal, R. 2012. Retail doesn’t cross borders: Here’s why and what
to do about it. JOUR, 90.
37 Cunningham, I.C.M., Hardy, A.P. & Imperia, G. 1982. Generic brands versus
national brands and store brands. Journal of Marketing Research, 22(5), 25−32.
38 Maggs, J. 2019. Brand loyalty on a worrying decline. BusinessLIVE. [online]
Available from: https://www.businesslive.co.za/redzone/news-insights/2019-
09-12-brand-loyalty-on-a-worrying-decline/. Accessed: 6 August 2021.
39 Ibid.
40 Mafini, C. & Dhurup, M. 2015. Drivers of customer loyalty in South African
retail stores. Journal of Applied Business Research, 31(4), 1295−1310.
41 Ibid.
42 Nazir, S. 2021. Market snapshot: South Africa. Retail Gazette. [online] Available
from: https://www.retailgazette.co.uk/blog/2021/02/south-africa-retail-african-
covid-pandemic-market-snapshot-in-depth/shutterstock_1888711408/. Accessed:
12 January 2022.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

43 Ibid.
44 Ibid.
45 Wentzel, W. 2020. The battle of the banks in customer loyalty and satisfaction
stakes hits in digital COVID economy. Polity. [online] Available from: https://
www.polity.org.za/article/the-battle-of-the-banks-in-customer-loyalty-and-
satisfaction-stakes-hits-a-high-in-digital-covid-economy-2021-03-15. Accessed:
5 August 2021.
46 Ibid.
47 Albertyn, D. 2020. The effect of covid-19 lockdown on South African retail.
Braintree. [online] Available from: https://www.braintree.co.za/the-effect-of-
covid-19-lockdown-on-sa-retail/. Accessed: 5 August 2021.
48 Khoesen, M. 2021. Building blocks to brand loyalty – Part 1. FANews. [online]
Available from: https://www.fanews.co.za/blog-article/building-blocks-to-
brand-loyalty-part-1/23. Accessed: 5 August 2021.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 393
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 393 2022/03/29 11:20 AM

Consumer Behaviour

49 Ibid.
50 Drawbaugh, K. 2001. Brands in the balance: Meeting the challenges to commercial
identity. London: Reuters.
51 Assael, H. 2004. Consumer behavior: A strategic approach. Boston: Houghton Mifflin.
52 Frederick, M., Hattingh, D., Ramlakan, S. & Spies, J. 2020. South African consumer
sentiment during the coronavirus crisis. McKinsey Survey. [online] Available from:
https://www.mckinsey.com/business-functions/marketing-and-sales/our-
insights/survey-south-african-consumer-sentiment-during-the-coronavirus-
crisis. Accessed: 5 August 2021.
53 Schmidt, F. & Maigurira, L. 2020. COVID Effect: 7 new consumer shopping behavior
trends in South Africa. [online] Available from: https://www.thinkwithgoogle.
com/intl/en-ssa/consumer-insights/consumer-trends/covid-effect-7-new-
consumer-shopping-behaviour-trends-south-africa/. Accessed: 5 August 2021.
54 Ibid.
55 Drawbaugh, K. 2001. Brands in the balance: Meeting the challenges to commercial
identity. London: Reuters.
56 Shongwe, W.T. 2012. Determination of brand loyalty amongst South African petrol
consumers. Master’s thesis. Research Space. University of KwaZulu-Natal.
57 Patti, C.H. & Fisk, R.P. 1982. National advertising, brands and channel control:
A historical perspective with contemporary options. Academy of Marketing
Science Journal, 10(1), 90–108.
58 Haig, M. 2003. Brand failures. London: Kogan Page.
59 Ibid.
60 Ewing, M.T., Jevons, C.P. & Khalil, E.L. 2009. Brand death: A developmental
model of senescence. Journal of Business Research, 62(3), 332−338.
61 De Chernatony, L. 2010. From brand vision to brand evaluation: The strategic process
of Growing and Strengthening Brands. 3rd ed. Boston: Butterworth-Heinemann.
62 Joseph LePla, F. & Parker, L.M. 2002. Integrated branding: Becoming brand-driven
Copyright © 2012. Juta & Company, Limited. All rights reserved.

through company-wide action. London: Quorum Books.

63 Loudon, D.L. & Della Bitta, A.J. 1993. Consumer behaviour: Concepts and
applications. 4th ed. New York: McGraw-Hill.

Chapter 16
1 Roberts-Lombard, M. 2009. Customer retention strategies implemented
by fastfood outlets in the Gauteng, Western Cape and KwaZulu-Natal
provinces of South Africa − A focus on Kentucky fried chicken (KFC), Nandos
and Steers. African Journal of Marketing Management, 1(2), 1−12, p 1.
2 Roberts-Lombard, M. 2011. Customer retention through customer relationship
management: The exploration of two-way communication and conflict
handling. African Journal of Business Management, 5(9) 3487−3496, pp 3487−3488.

Roberts-Lombard,394M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 394 2022/03/29 11:20 AM

References

3 Petzer, D.J. & Roberts-Lombard, M. 2021. Delight and commitment –

revisiting the satisfaction-loyalty link. Journal of Relationship Marketing.
doi: 10.1080/15332667.2020.1855068.
4 Boateng, S.L. 2019. Online relationship marketing and customer loyalty:
A signaling theory perspective. International Journal of Bank Marketing, 37(1),
pp 226–240. https://doi.org/10.1108/IJBM-01-2018-0009.
5 Khatab, J.J., Esmaeel, E.S. & Othman, B. 2019. Dimensions of service marketing
mix and its effects on customer satisfaction: A case study of international
Kurdistan Bankin Erbil City-Iraq. TEST Engineering & Management, 81
(November-December), 4846–4855.
6 Roberts-Lombard, M. 2011. The customer market practices of the travel agency
industry in the Gauteng Province of South Africa. African Journal of Business
Management, 5(8) 3096–3108, p 3099.
7 Avis. 2021. About Avis. Available from: https://www.avis.co.za/about-avis#.
Accessed: 17 June 2021; Avis. 2021. Avis quality policy. Available from: https://
www.avis.co.za/about-avis/visions-and-values. Accessed: 17 June 2021.
8 Venkatesan, R., Kumar, V. & Ravishanker, N. 2007. Multichannel shopping:
Causes and consequences. Journal of Marketing, 71(2), 114–132.
9 Roberts-Lombard, M. & Du Plessis, L. 2012. Customer relationship manage
ment (CRM) in a South African service environment: An exploratory study.
African Journal of Marketing Management, 4(4), 152–165.
10 Chand, S. 2020. CRM: Customer relationship management: Meaning, need
and techniques of building CRM. [online] Available from: https://www.your
articlelibrary.com/marketing/consumer-behavior/crm-customer-relation
ship-management-meaning-need-and-techniques-of-building-crm/32292.
Accessed: 2 June 2021.
11 Snigda, P. 2021. 8 excellent examples of customer relationship management
(CRM). [online] Available from: https://www.revechat.com/blog/customer-
relationship-management-examples/. Accessed: 28 May 2021.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

12 Roberts-Lombard, M. & Du Plessis, L. 2012. Customer relationship manage

ment (CRM) in a South African service environment: An exploratory study.
African Journal of Marketing Management, 4(4), 152–165.
13 ABSA Customer Service Charter. 2013. Customer charter. [online] Available from:
http://www.absa.co.za/Absacoza/About-Absa/Absa-Bank/Corporate-Gover
nance/Customer-Service-Charter. Accessed: 13 March 2017.
14 Snigda, P. 2021. 8 excellent examples of customer relationship management (CRM).
Available from: https://www.revechat.com/blog/customer-relationship-
management-examples/. Accessed: 28 May 2021.
15 Chaffey, D. 2020. Smart insights. [online] Available from: https://www.
smartinsights.com/social-media-marketing/social-media-strategy/new-global-
social-media-research/. Accessed: 28 June 2021.
16 Matikiti, R., Roberts-Lombard, M. & Mpinganjira, M. 2016. Examining social
media marketing performance: A focus on travel agencies and tour operators in
South Africa. African Journal of Hospitality, Tourism and Leisure, 5(2): 1−16, pp 1−5.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 395
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 395 2022/03/29 11:20 AM

Consumer Behaviour

17 USAN. 2014. What is the definition of customer engagement? [online] Available from:
http://www.usan.com/faq/what-is-customer-engagement. Accessed: 11 July 2017.
18 Fuse. 2014. Consumer engagement. [online] Available from: http://www.fuse
marketing.com/Definition_Consumer_Engagement. Accessed: 11 July 2017.
19 Ask the Expert. 2007. Significant differences between customer experience
management and customer relationship management. [online] Available from:
http://searchcrm.techtarget.com/answer/Significant-differences-between-
customer-experience-management-CEM-and-CRM. Accessed: 11 July 2017.
20 WHMcSE. 2013. The importance of customer relationship management (CRM)
software for businesses. [online] Available from: http://www.whmcsextras.com/
the-importance-of-customer-relationship-management-crm-software-for-
businesses. Accessed: 11 July 2017.
21 Eyes on Africa. 2020. Mount Grace House and Spa. [online] Available from:
http://www.eyesonafrica.net/south-african-safari/mount-grace.htm. Accessed:
17 June 2021.
22 Briglia, C. 2020. Why customer engagement is important. [online] Available from:
https://www.gartner.com/en/digital-markets/insights/why-customer-engage
ment-is-important. Accessed: 29 May 2021.
23 Gerlach et al, 2016.
24 Roberts-Lombard, M. & Petzer, D.J. 2021. Relationship marketing: An S–O–R
perspective emphasising the importance of trust in retail banking. International
Journal of Bank Marketing, 39(5). https://doi.org/10.1108/IJBM-08-2020-0417.
25 Ibid.
26 ImpacX. 2020. The importance of customer engagement. [online] Available from:
https://impacx.io/blog/the-importance-of-customer-engagement/. Accessed:
7 June 2021.
27 Roberts-Lombard, M., Van Tonder, E., Pelser, T.G. & Prinsloo, J.J. 2014.
The relationship between key variables and customer loyalty within the
independent financial advisor environment. International Retail and Marketing
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Review, 10(1), 25−42, pp 28–29.

28 Roberts-Lombard & Petzer, 2021, op cit.
29 Du Plessis, L. & Roberts-Lombard, M. 2012. Customer relationship management
(CRM) in a South African service environment: An exploratory study. African
Journal of Business Management, 4(4), 152−165, p 157.
30 Brink, A. & Berndt, A. 2008. Relationship marketing & customer relationship
management. Lansdowne: Juta. pp 23−26.
31 Van Reenen, D. 2013. 5 Best loyalty programmes. [online] Available from:
http://www.moneyvine.co.za/money/advice-tips/5-best-loyalty-programmes/.
Accessed: 11 July 2017.
32 Ibid.
33 Harwood, T., Garry, T. & Broderick, A. 2008. Relationship marketing – perspectives,
dimensions and contexts. Berkshire, McGraw-Hill Irwin. pp 31−33, 181−182.

Roberts-Lombard,396M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 396 2022/03/29 11:20 AM

References

34 Oukula, O. 2018. These are the 3 most valued loyalty programmes in SA (according
to a survey). [online] Available from: http://www.capetalk.co.za/articles/309994/
these-are-the-3-most-valued-loyalty-programmes-in-sa-according-to-a-survey.
Accessed: 20 June 2021.
35 RESCI. 2020. Customer retention should outweigh customer acquisition. [online]
Available from: https://www.retentionscience.com/blog/customer-retention-
should-outweigh-customer-acquisition/. Accessed: 11 June 2021.
36 Munyaradzi, W.N. & Roberts-Lombard, M. 2014. Supplier-customer relationship
management and customer retention: A perspective on motor dealerships in an
emerging economy. Mediterranean Journal of Social Sciences, 5(20), 792–801, p 794.
37 Roberts-Lombard, M. & Nyadzayo, W. 2013. Conceptual framework to improve
customer retention at motor dealerships in an emerging economy. Asian Journal
of Science and Technology, 4(12), 001−010, p 4.
38 Harwood, et al, op cit.
39 Brink, A. & Berndt, A. 2008. Relationship marketing & customer relationship
management. Lansdowne: Juta. p 37.
40 Ibid.
41 Roberts-Lombard, M. 2010. Employees as customers – an internal marketing
study of the Avis car rental group in South Africa. African Journal of Business
Management, 4(4), 362−372, p 363.
42 Kuarav, R.P.S., Prakesh, M. & Baber, R. 2018. The applications of internal
marketing variables to destination marketing organisations. Tourismos, an
International Multi-disciplinary Journal of Tourism, 12(2), 23–37; Sanchez-
Hernandez, I. & Grayson, D. 2012. Internal marketing for engaging employees
on the corporate responsibility journey. Intangible Capital, 8(2), 275–307.
43 De Bruin, L. 2019. Internal marketing and the delivery of service quality and
customer satisfaction in the Oman banking industry. PhD thesis, University of
Johannesburg.
44 Burin, C., Roberts-Lombard, M. & Klopper, H.B. 2015. The perceived influence
Copyright © 2012. Juta & Company, Limited. All rights reserved.

of the elements of internal marketing on the brand image of a staffing agency

group. Southern African Journal of Business Management, 46(1), 71−82, p 73.
45 Roberts-Lombard, M. 2011. The customer market practices of the travel agency
industry in the Gauteng Province of South Africa. African Journal of Business
Management, 5(8), 3096–3108, p 3107.

Chapter 17
1 Internet World Stats. 2021. World internet usage and population statistics. [online]
Available from: https://www.internetworldstats.com/stats.htm. Accessed:
2 October 2021.
2 Business Wire. 2021. E-commerce to account for half the growth in global retail
by 2025. [online] Available from: https://www.businesswire.com/news/
home/20210325005052/en/E-Commerce-to-Account-for-Half-the-Growth-in-
Global-Retail-by-2025. Accessed: 2 October 2021.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 397
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 397 2022/03/29 11:20 AM

Consumer Behaviour

3 Evans, M. 2021. Global e-commerce market to expand by $1 trillion by 2025. [online]

Available from: https://www.forbes.com/sites/michelleevans1/ 2021/03/25/
global-e-commerce-market-to-expand-by-us1-trillion-by-2025/?sh=4ea7
f77b6cc0. Accessed: 2 October 2021.
4 Business Wire. 2021. E-commerce to account for half the growth in global retail
by 2025. [online] Available from: https://www.businesswire.com/news/
home/20210325005052/en/E-Commerce-to-Account-for-Half-the-Growth-in-
Global-Retail-by-2025. Accessed: 2 October 2021.
5 Grand View Research. 2021. B2C e-commerce market worth $7.6 trillion by 2028
| CAGR: 9.7%. [online] Available from: https://www.grandviewresearch.com/
press-release/global-b2c-e-commerce-market. Accessed: 2 October 2021.
6 Keskin, S. 2021. 19 new e-commerce statistics you need to know in 2021. [online]
Available from: https://sleeknote.com/blog/e-commerce-statistics. Accessed:
2 October 2021.
7 Ibid.
8 Frisby, J. 2021. The world’s biggest online spenders revealed. [online] Available from:
https://www.websitebuilderexpert.com/blog/worlds-biggest-online-spenders.
Accessed: 3 October 2021.
9 Grand View Research. 2021. Business-to-business e-commerce market size, share
& trends analysis report by deployment model (intermediary-oriented, supplier-
oriented), by application, by region, and segment forecasts, 2021–2028. [online]
Available from: https://www.grandviewresearch.com/industry-analysis/busi
ness-to-business-b2b-e-commerce-market. Accessed: 2 October 2021.
10 Ibid.
11 Merriam-Webster. 2022. Social media. [online] Available from https://www.
merriam-webster.com/dictionary/social%20media. Accessed: 1 February 2022.
12 Dean, B. 2021. Social network usage & growth statistics: How many people use social
media in 2021? [online] Available from: https://backlinko.com/social-media-
users. Accessed: 3 October 2021; Statista. 2022. Global digital population as of
Copyright © 2012. Juta & Company, Limited. All rights reserved.

January 2021.[online] Available at https://www.statista.com/statistics/617136/

digital-population-worldwide/#:~:text=How%20many%20people%20use%20
the,the%20internet%20via%20mobile%20devices. Accessed: 4 February
2022; Statista. 2022. Number of social network users worldwide from 2017 to 2025
(in billions). [online] Available from: https://www.statista.com/statistics/278414/
number-of-worldwide-social-network-users/#:~:text=How%20many%20
people%20use%20social,almost%204.41%20billion%20in%202025. Accessed:
4 February 2022.
13 Dean, ibid. Statista. 2022. Number of monthly active Facebook users worldwide
as of 4th quarter 2021. [online] Available from: https://www.statista.com/
statistics/264810/number-of-monthly-active-facebook-users-worldwide/.
Accessed: 4 February 2022; Statista. 2022. Number of YouTube users worldwide
from 2016 to 2021. [online] Available from: https://www.statista.com/
statistics/805656/number-youtube-viewers-worldwide/. Accessed: 4 February
2022; Statista. 2022. WhatsApp – statistics & facts. [online] Available from: https://
www.statista.com/topics/2018/whatsapp/. Accessed: 4 February 2022; Statista.

Roberts-Lombard,398M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 398 2022/03/29 11:20 AM

References

2022. Number of Instagram users worldwide from 2016 to 2023. [online] Available
from: https://www.statista.com/statistics/183585/instagram-number-of-global-
users/#:~:text=Instagram%3A%20number%20of%20global%20users%20
2016%2D2023&text=In%202019%2C%20there%20were%20almost,the-
%20most%20recent%20forecast%20suggests. Accessed: 4 February 2022;
Statista. 2022. Number of monthly active Pinterest users worldwide from 2nd quarter
2016 to 3rd quarter 2021. [online] Available from: https://www.statista.com/
statistics/463353/pinterest-global-mau/. Acces sed: 4 February 2022; Statista.
2022. Number of monthly active Twitter users worldwide from 1st quarter 2010 to
1st quarter 2019. [online] Available from: https://www.statista.com/statistics/
282087/number-of-monthly-active-twitter-users/. Accessed: 4 February 2022.
14 Gupta, N. 2019. The invisible customer in the age of digital transformation. [online]
Available from: https://www.linkedin.com/pulse/invisible-customer-age-
digital-transformation-nitin-gupta. Accessed: 1 February 2022.
15 SmartSurvey. 2022. 10 advantages of online surveys. [online] Available from:
https://www.smartsurvey.co.uk/articles/10-advantages-of-online-surveys.
Accessed: 1 February 2022.
16 BigCommerce. 2022. Omnichannel retail strategy: How to meet today’s shoppers’
needs with an omnichannel approach. [online] Available from: https://www.
bigcommerce.com/articles/omnichannel-retail/. Accessed on 4 February 2022
17 Statista. 2022. Number of sent and received e-mails per day worldwide from 2017 to 2025
(in billions). [online] Available from: https://www.statista.com/statistics/456500/
daily-number-of-e-mails-worldwide/. Accessed: 4 February 2022.
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 399
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:41.

Consumer Behaviour 5E.indb 399 2022/03/29 11:20 AM

Consumer Behaviour 5E.indb 400 2022/03/29 11:20 AM

Index
Page numbers in italics indicate tables or figures.

SYMBOLS Afrikaans community 67

@Home 359 age
actual 100–101
NUMBERS baby boomers 65, 101–102, 105, 200
4IR companies 360 biological 97
chronological 97
80:20 rule 203, 335 cognitive 100–101
comparison of different cohorts 105
A composition of population 97
abbreviated attention span 368 definition 97
ABC model of attitude 150–153 distribution of population 36–37
generation X 65, 102–103, 105, 200
Absa Customer Service Charter 324–326 generation Y 65, 103–104, 105, 174
Absa Rewards 334 Generation Z 105
AC Nielsen Market Research Africa’s group
Sociomonitor Value Groups Survey 141 16–20 192
21–25 192–193
accessibility, target 206
26–30 193
achievement roles 92 ideal 100–101
Ackermans 23 importance of to marketers 97
acquired needs 130 perceived 98, 100
personal characteristics 97–109
actual age 100–101
psychological 97
Adidas 136, 189 segmentation 188, 189
adjustment function (utilitarian) of seniors 98–101
attitudes 154 subcultures 65, 98–105
admiration 76, 138 agents, shopping 369
advertisements ailing outgoers 100
exposure to 118 aimless people 173
inner-directed 175, 176
air travel 142
other-directed 175, 176
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Airbnb 46
advertising
appeals 162 airlines 27, 27
attitude differences between alcohol 168, 194
generational 105 alcohol-free brands 194
baby boomers 102
digital 57, 167 algorithms 284, 363
perception 116 alternatives, evaluation 362, 363–364
producing positive affect 159 Amazon 65, 359
reference groups 76
American cars 161
aesthetic factors used in determining store
American consumers 221
patronage and loyalty 309
Amla, Hashim 290
AFAB (female at birth) 189
Amstel 210
affect-behaviour-cognition 153
analysis, consumer 220
affective component of attitudes 150, 151,
153, 158 Android 356
African consumers 221 Anheuser-Busch InBev SA/NV 196
African Price Mount Grace Country House anti-smoking campaigns 158
and Spa 329 Apple 188

Consumer Behaviour 5E.indb 401 2022/03/29 11:20 AM

Consumer Behaviour

appreciation 136 influence on decision-making 5, 6

Aquafresh 289 instrumental conditioning 157
knowledge function 154, 156
artificial intelligence 46, 281, 363 learning 150
ascribed roles 92 marketing communications 158
Asian families 64 nature of 150
positive 104, 105, 154, 156, 157, 290,
aspiration 75, 76
294, 294, 334
aspirational groups 73 purpose of research 149
aspirer market 212–214 role of 149
assortment inadequacies 225 shifting performance 161
smoking 158
at-home singles 254, 256, 257, 257
value expressive function 154, 155
ATM points 25
attitudinal brand loyalty 160, 302–303, 332
attention
attributes of products 153
determined by
individual 118–119 augmented reality 47, 285
situation 120 authority, resistance to 174
perception 116, 118–119 auto-detection 357, 364
selective 118
automated services 351
span 368
stimulus determines level of 119 automation of consumption 361
attitudes automotive products 94
ABC model of 150–153 average consumer 174
adding beliefs 161 Avis 208–209
adjustment function (utilitarian) 154
affect-behaviour-cognition 153 AVIS car rental 321
affective component of 150, 151, 153, awareness
159 brand 298, 299
behaviour breast cancer 50, 51
-cognition-affect 153 cognitive of needs 132
component of 150, 151–152, 153, customer relationship management
159–160 (CRM) 324
change 158
changing B
affective component 159 B2B see business-to-business markets (B2B)
behavioural component of 159–160
beliefs 161 baby
Copyright © 2012. Juta & Company, Limited. All rights reserved.

cognitive component of 160–161 blues 193

ideal 161 boomers 65, 101–102, 105, 200
classical conditioning 156, 159 bachelorhood 253
cognition-affect-behaviour 153 badge value 228
cognitive
balanced scorecard (BSC) 30, 32
component of 150, 152, 153,
160–161 banking 25
learning theory 157 basic needs 131
combination of interrelated beliefs and basic product/economy market 199
values 150
component consistency 153 beer 95, 120, 141, 161, 195–197, 210
consistency 150 behaviour
definition 150 -cognition-affect 153
ego-defensive function 154, 155 complaint 233, 235
experience 157 online customer 367–369
exposure 159 polygamous 335
external authorities 157 promiscuous 335
factors influencing change 161–162 repeat buying 229, 237, 295–296, 296
formation 156–158 switching 335
functions of 154–156 variety-seeking 290

Roberts-Lombard,402M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 402 2022/03/29 11:20 AM

Index

behavioural brand loyalty 160, 301–302, fatigue 312

302, 303, 332 generic 306
behavioural component of attitudes 150, good service 308
151–152, 153, 159–160 habit 298, 300
image 292–293, 293, 298, 299, 312
behavioural segmentation 194–198, 194,
irrelevance 312
195–197, 205
language, behavioural approach to 303
behavioural theories 124–126 loyalty
beliefs 68, 150, 161 assessment 313
belongers 173 behavioural approach to 301–302,
302
belongingness and love needs 134, 134, cognitive approach to 302–303
135, 137 combined behavioural and
benefits, segmentation 198–199, 198 attitudinal approach 303
best-value market 199 complex decision making 296–297
correlates 303–304, 303
Beyond The Rainbow campaign 53
customer relationship management
Bieber, Justin 104 (CRM) 324
billboards 118, 138, 158, 298, 299 description 290–291, 298, 300
biological age 97 determination of segment 301–303
deterministic models of 305
biotechnology 46
formation of 295
Black Diamonds 55–56, 78, 221 generation Y 104
Black Label 51 habitual decision making 229
Black Label #NoExcuses campaign 51 level of involvement 297, 297
market structure characteristics
Black Like Me 90 303, 304
black middle class 55–56, 108, 190, 221 marketing implications 310–311
black urban females 89 models 305
repeat buying behaviour 295–296,
black youth 108
296
blind-taste test studies 120 segmentation 196, 298, 300–303
blogs 352 shopping patterns 303, 304
blue (khaki) collar workers 79 stages of 298, 299–301
stochastic models of 305
Bluetooth 46
usage rate 311
BMW 22, 131, 210, 360, 369 vulnerability 297–298
Born Frees 104 manufacturer 305
Copyright © 2012. Juta & Company, Limited. All rights reserved.

bots 364 megalomania 312

names
branding influence on product preference
description 290 291
family 156 national 305, 306
integrated 312 paranoia 312
perception 116 personality 209, 314
seven deadly sins 312 preference 293–294, 294, 298, 300
brand(s) private 306
amnesia 312 segmentation 298, 300
attitudinal brand loyalty 160 store 306 see also store(s): loyalty
awareness 298, 299 switching 113, 133, 138, 232, 233, 290,
behavioural brand loyalty 160 294, 294, 311
benefits or advantages 292 symbols of social relationships 293
commitment 291, 297, 311 trial 298, 299
consciousness 52, 105, 221 type 305–306
consumer buying habits 304
breast cancer awareness 50, 51
deception 312
definition 289, 292 BRICS countries 42
ego 312 Buddhism 87

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 403
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 403 2022/03/29 11:20 AM

Consumer Behaviour

Bugatti 155 decision 231

Bureau for Economic Research (BER) 272 habits 303, 304
habitual 125, 366
business function of web 349
panic 221
business-to-business markets (B2B) see also patterns of social classes 79–80
organisational customers post-buying response 232, 232
behavioural and needs-based segments process 265–267, 268–269, 269
205 repeat behaviour 229, 237, 295–296,
blurring between customer markets 296
and 361 situations 223–224, 267–269, 268–269
buyer
−seller relationships 275
−supplier interaction 278–280 C
buying behaviour 3 call centres 322, 353, 356
collaborative relationships 274 Calvin Klein 189, 209
complex products 203
cameras 176
decision-making units 203
e-commerce 348 capital goods 264
innovation 204–205 Car of the Year award 350
longer-term buyers 204
car
personal relationships 204
producers 369
rational buyers 203
relationship management rental 208, 321
social dimensions 276–277 sales 93, 94, 142, 226–227, 236, 311,
spectrum 276 360, 369–370
relationships carbon dioxide (CO2) emissions 45
commitment 277–278 carbon footprint 48
description 273–274
interaction approach 280–281 card-based reward programmes 332
mutual co-operation 278 cardboard waste 48, 49
policies and practices 277 career-driven woman 54, 95
satisfaction 278
trust 278 Carling Black Label 210
types of 274–275 Castle Lager 210
segmentation 202–205 causation 138
social exchange theory 276
cause-related marketing 50–51
target audiences 203
transactional relationships 274 CD-ROMs 363
uncertainties 279 celebrity sources 162
Copyright © 2012. Juta & Company, Limited. All rights reserved.

buyer(s) CellC 186

business-to-business markets (B2B)
cellular phones 40, 352
204, 270
convenience value 24–25 Chanel 137
customer roles 4 Checkers 125
durable goods 26
Checkers Sixty60 54, 310, 358
family 74
households 251 cheese
interaction with suppliers 278–280 boys 163
long-term 204 girls 163
market value sought by 23–25 childless families 246
non-durable goods 25–26
Chinese consumers/customers 66, 221
personal values 24–25
personalisation value 24–25 Christian cross 88
−seller relationships 275 Christian Dior 189
service value 23–24, 27
Christians 65, 87
universal value 23–24
Christmas 88
buying
behaviour see organisational buying chronological age 97
centre 269–271 classical conditioning 124–125, 156, 159

Roberts-Lombard,404M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 404 2022/03/29 11:20 AM

Index

Clicks 333 complex modified rebuy 268

Clicks Clubcard 333 Comrades Marathon 226, 289–290
clients 3 conceptual learning 122
climate conditioning
change 39, 44, 45 classical 124–125, 156, 159
influences 65, 190 instrumental 125, 157
clothing 91 conflict, post-buying 234
Clothing Bank 50 connected cohort 104
Clover 162 connection 94
coal mining sector 283–284 conservation 49, 161
Coca-Cola 103, 104, 116, 211, 292 conservatives 201
coffee 143 consistency 137–138, 150
cognition 219–220, 220 conspicuous consumers 173
cognition-affect-behaviour 153 consumer(s)
cognitive approach to brand loyalty analysis 219, 220
302–303 behaviour
definition 1, 2
cognitive awareness of needs 132 factors influencing 5–6, 5
cognitive component of attitudes 150, buying behaviour 3, 237, 303
152, 153, 160–161 cognitive 231
cognitive consumers 231 consumption patters 311
vs customers 3
cognitive dissonance 137, 232, 234, 237
economic 231
cognitive learning 126, 157 emotional 231
cognitive processes 131, 224 evaluation 230–231
cognitive age 100–101 passive 231
rights 44
Coke Zero 211 terminology 3
Colgate 50, 289 types of 231
colour 119 consumption, automation of 361
commitment−trust theory of relationship contemporary household life cycle 254–
marketing 276–277 257, 254, 255, 256, 257
communication(s) convenience
function of web 349 market 199, 200
Copyright © 2012. Juta & Company, Limited. All rights reserved.

marketing value 21, 24–25, 25, 26, 27

attitudes 158 Converse 96, 104
race and 90
theory of social exchange 276 cookies 47, 198, 366, 367
community building 356 Corriwood 341
competition cosmetic surgery 179
limitation of 43 cosmetics 89, 92, 154, 189
promotion of 43 cost-to-serve 338
competitive advantage 7, 207, 209–210, 357 coupons 160, 311
competitive edge 323 COVID-19 pandemic 42, 215, 217, 221,
competitors 221, 247, 272, 283, 284–285, 292, 307,
consumer value management (CVM) 308, 310, 347, 357
29 creators 251
position analysis 209 credit cards 47
complaint(s) credit value 21, 23, 25, 26, 27
behaviour 233, 235
management 235 cricket 75
online form 365 CRM see relationship(s): management

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 405
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 405 2022/03/29 11:20 AM

Consumer Behaviour

cross-selling 32, 323, 365, 366 relationship(s): management

Cuban customers 66 retention 7, 7, 8, 30, 31–32, 275, 319,
320, 321, 326, 331, 332, 335–336
cues 138
roles of 2, 3–4
Culinary Equipment Co. 359 satisfaction 7, 7, 8, 27, 29, 30, 31, 307,
cultural factors affecting consumer 321, 322, 323, 330, 334, 336, 339,
behaviour 64–67 340, 358, 365
satisfaction index (CSI) 29
cultural influences 224
satisfaction measurement (CSM) 29
cultural values 20, 68, 69 types 2, 3
culture see also subcultures value 7, 11, 27, 29, 30, 31, 275, 322,
definitions 63–64, 68 340, 351, 353
effect of on consumer 68 value management (CVM) 27–28, 29,
evolving nature 64 32
influence on decision-making 5, 6 customisation, world wide web 359–360
nature of 63–64, 68–69
customs 68
currency fluctuations 42
cybermediaries 358
customerism 44
customer(s) D
abilities 278 dairy fruit juice mix 106–108, 162–163
activity cycle (CAC) 267
damage to natural environment 44
advantages of keeping for longer period
32 Dark and Lovely 90
behaviour data
changes 12 protection 308, 350
importance of 6–7 use 308
model of 12, 13 datasets 198
reasons for understanding 7, 7, 15
role in marketing strategy 11–12 deciders 251, 270
care 353 decision makers 74, 200–202
-centrism 355–356, 356, 369–370 decision making
vs consumer(s) 3 brand loyalty 229
as co-producers 360–361 business-to-business markets (B2B)
core outcome measures 30–31, 30 203
engagement (CE) see engagement buying
experience 281 decision or response 231
focus 7, 10, 19, 281, 342 online 362, 364
Copyright © 2012. Juta & Company, Limited. All rights reserved.

getting to know individual 366–367 situation 223–224

insight 281 consumer involvement 228
invisible 356–357 dissatisfaction 233
is king 361 evaluation of alternatives 230–231,
learning see learning 362, 363–364
lifetime value (LTV) 28 extended 230
loyalty 331–335 generation Y 104
loyalty programmes 332–334 habitual 229, 365–366
motivation see motivation households see household(s): decision
needs and expectations 7 making
online behaviour 367–369 husband-and-wife 251–252
organisational see organisational influencing variables 223
customers information search 362, 363
orientation 10 limited 229–230
perception see perception marketing implications 234–235
price index (CPI) 41 model of customer behaviour 13
profitability 31 neutral or indifferent behavioural
protection 24, 43 response 233
rejection 338 organisational buying behaviour
relationship management (CRM) see 269–271

Roberts-Lombard,406M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 406 2022/03/29 11:20 AM

Index

post-buying donors 3
conflict 234 Dove soap 302
experience 362, 365
response 232, 232 drivers of needs 203
problem recognition 224–226, 224, DStv 40, 46
225, 362–363, 362 durable goods 26, 26
process 5–6, 5, 15, 222–223
real 230
E
repeat buying behaviour 229, 237
satisfaction 233 Easter 88
search for information 224, 224, Easy Rider 26
226–227, 227 e-business 351, 352, 353
spouses 252
stages 224–234, 224 e-commerce 46, 221, 308, 347, 348, 349,
through online media 362 350, 351, 352, 353, 357, 369, 370
types of 228–230 economic conditions 41–42
Defy washing machine 291 economic consumers 231
delivery economic motives 139
shopping is about 357–358
economic well-being 249
value 30
economy, market 199
Dell computers 264
e-CRM systems 355–356
demographic segmentation 188–189, 188
demographics 36–41, 140, 174 Edblo beds 289–290
depth interviews 142 Edgars 333
detached individual 172 Edgars Thank U card 333
deterministic models of brand loyalty 305 education, segmentation 188, 189, 193
developing trends 47–56 education statistics 37–38
Devils Peak Bear 195 ego
defence 138
Diaz, Cameron 138
-defensive function of attitudes 154,
diet 155
cooldrinks 152, 159, 211 needs 134, 134, 136, 136
pills 130
e-government 352, 353
Diet Coke brand 211
elderly
differentiation dimensions 210 new-age 98, 99
digital advertising 57, 167 traditional/stereotypical 98, 99
Copyright © 2012. Juta & Company, Limited. All rights reserved.

digital marketing 56, 113 electricity 39–40, 41, 48, 107, 258
dining experience 22 e.l.f. 96
DisChem 358 email marketing 352, 353
Dis-Chem Benefits card 334 e-marketing 352, 353
discovery, customer relationship emerging markets 42, 87, 97, 101
management (CRM) 324
emotional appeals 162
disintermediation 358
emotional arousal of needs 132
disposers 251
emotional consumers 231
dissatisfaction, post-buying 233, 235
emotional motives 139
dissociative groups 74
emotional support to household members
dissolution of households 254
250
dissonance 234, 235
emotional value 21, 22, 26, 27
diversity 51, 52, 87, 94, 95, 96
empathy 76
Diwali 88
employees
Doc Martens 103 enhancing relationships through
Domestos 229 internal marketing 339–340

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 407
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 407 2022/03/29 11:20 AM

Consumer Behaviour

satisfaction 30, 321, 335, 339, 340, 341 external authorities 157
training and motivating 340–341 external influences 13–14, 13, 227
employment external motives 138
decision making 252
external search 227
employee motivation 275
external stimuli 5, 115, 131, 220, 220
end user(s), family 74
endangered wildlife 49 F
energy Facebook 47, 56, 114, 116, 118, 177, 327,
-saving 48 352, 354, 359
sources 39–40
facilitating goods 264
engagement
from customer relationship family(ies)
management (CRM) to 328–329 branding 156
how to improve 331 childless 246
importance of 330 extended 245–246
movement towards 328 grandparent 247–248
influence on decision-making 5, 6
Engen 49 life cycle segmentation 188, 189
entering goods 264 nuclear 243
environmental arousal of needs 132 -orientated woman 54
as primary reference groups 243–248
environmental forces 272
reference groups 74
environmental protection 45 single-parent 244–245, 255, 256, 257,
environmental variables 220 257
environmentally friendly products 45 step- 247
types of 243–248
equality 51, 52, 95
young 255, 256, 257
Eskom 43, 186
fantasy product 178
Estée Lauder 50
fashion industry 96, 189
esteem needs 134, 134, 136, 136, 188
fast-food restaurants 173
e-tailing 352, 353, 359
FB Messenger 327
ethnic groups 52, 90, 221
fear appeals 162
ethnic identity 88
female
ethnic segments 89 market 54, 94–95
evaluation population 93
Copyright © 2012. Juta & Company, Limited. All rights reserved.

of alternatives 362, 363–364 femininity 92

by consumers 230–231
Ferreira, GT 80
customer relationship management
(CRM) 324 FIFA World Cup 226
post-buying response 232, 232 financial exchange 280
expanded desires 225–226 financial loss 226
expanded or reduced means 226 financing value 21, 23, 26, 27
expenditure patterns, households 257– firmographic segmentation 200
258, 258 Flight Centre 223
experience 22, 157, 281, 292 Flora pro-activ 161
experiential learning 122 FNB eBucks 333, 334
experimentalists 174 focus group interview 142
expert advice 236, 358 food 91, 173, 358
exposure 117, 118, 159 Food Lovers Market 358
extended decision making 230 Ford 369–370
extended families 245–246 Ford Mustang 168
extended self 178–179 Fordyce, Bruce 289–290

Roberts-Lombard,408M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 408 2022/03/29 11:20 AM

Index

formal sector employment 38 gerentographics 99

fossil fuels 44, 45 Gestalt theory 172–173
foundation goods 264 Glad Bake 157
four Ps for physical products 187 Glen tea 292
fragrances 189 global audience 350
frail recluses 100 global warming 44, 45
free samples 124, 157, 160, 298, 299, 311 golf 259
freedom from risk 24 golf clubs 153
frequency marketing 125 goods
frequent flyer programmes 125, 332 capital 264
Freud’s psychoanalytic theory of durable 26, 26
personality 171 entering 264
facilitating 264
G foundation 264
industrial 264
Gap 104
non-durable 25–26
gatekeepers 74, 251, 270
goodwill 156, 307
Gates, Bill 132
Google 65
gay and lesbian community 51–53
Google Stations 57
Gay Pride Parade 53
government laws and regulations 43–44
gay-related events and media 53
governmental factors 43–44
gender
ascribed roles 92 grandparent families 247–248
-based Great Depression 98
marketing 53–55 green marketing 47–50
violence 51
changing role of greenhouse gases 44
men 95 groceries 25, 26, 65, 132, 198, 203, 347, 361
women 92 group(s)
differences between male and female aspirational 73
consumers in terms of product buying forces 273
categories 91–92
dissociative 74
gap and decision making 252
ethnic 52, 90, 221
identity 51–52, 92
family 74
-inclusive marketing 96
factors influencing decision-making
Copyright © 2012. Juta & Company, Limited. All rights reserved.

marketing communication 54–55

non-binary marketing 96 process 5, 6
product strategy 54 meaning of 72
retail strategy 55 primary reference 73
roles 92 reference see reference groups
segmentation 188, 189 secondary 73
as subculture 66 specific values 20, 21, 25, 26, 27
terminology 91 Guess clothing 132
typecasting 54
generation Y 65, 103–104, 105, 174 H
generation Z 96, 200 H&M 53
generational myopia 106 habitual buying 125, 366
generational segmentation 200 habitual decision making 229, 365–366
generations X 65, 102–103, 105, 200 hair care products 89, 90, 189
generations Z 105 Hajj pilgrimage to Mecca 88
generic brands 306 halaal certificates 88
geographic segmentation 190–191, 190 ‘halo’ effect 32
geographic subculture 65 handbag insurance 93

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 409
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 409 2022/03/29 11:20 AM

Consumer Behaviour

Hangerman 50 housewife
hangers 50 stay at home by choice 94
traditional 54
Hanukkah 88
trapped 54, 94
Harley Davidson 26, 209
housing 39, 91
hazardous chemicals 121
humorous appeals 162
headache tablets 176
husband-and-wife decision making
health clubs 101 251–252
healthcare 40, 41, 98, 137
healthy hermits 100 I
healthy indulgers 99 ideal age 100–101
HEB Foods 66, 67 identification
hedonic needs 131 influence 75
target 206
Hertz 208–209
image
high-income group 66
brands 292–293, 293
high-involvement decision making 228 developing and sustaining 323
high-quality content 282 differentiation 210
Hinduism 87 stores 307, 308, 310, 312
hip hop cultural icons 104 immortality 179
hippie era 101 impulse purchasing 138
hire-purchase (HP) agreement 23 income
household 41
HIV/AIDS 40, 51, 247
segmentation 188, 189
Hoekstra, Collin Benjamin 276
independence 138
holidays 223–224
independent segment of toothpaste market
home decorating 92 198
Home Depot 94 indifference 233
home-delivery apps 54 indirect influences 2
HomeMeal 360 individual customer approach 337–338,
honeymooners 253 366–367
hotel industry 199–200 individual differences 227
House & Home 23 individual factors influencing decision-
household(s) making process 5–6, 5
Copyright © 2012. Juta & Company, Limited. All rights reserved.

contemporary life cycle 254–257, 254, individual variables 220

255, 256, 257
individuality 94
decision making
husband and wife 251–252 individual-specific values 20, 21, 26, 27
influences of spouse 252 industrial goods 264
research 250 inflation 41
roles 251, 259
economic well-being 249 influencers
emotional support 250 family 74
expenditure patterns 257–258, 259 household decision making 251
functions of 248–250 organisational buying behaviour 270
income 41 perception 116
life cycle 252–257 infomediaries 358
lifestyles 250
informal sector employment 38–39
non-family 256
as primary reference groups 243–248 information
socialisation of members 248–249 exchange 276, 277, 280
statistics 39–41 function of web 349
traditional life cycle 253–254 new 225
overload 369

Roberts-Lombard,410M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 410 2022/03/29 11:20 AM

Index

processing 226–227, 227 perception 116, 117, 120–121

search for 224, 224, 226–227, 227, 362, selective 120
363 interpreting/reacting, perception 115
informational influence 75 interviews 142
initiators 270 invisible customers 356–357
innate needs 130 iPads 104
inner-directed advertisements 175, 176 iPhone 356
inner-directed individuals 175 iPods 104
inner-directed people 174 Islam 87
innovation, business-to-business markets isolation 120, 368
(B2B) 204–205
innovators 168 J
Instagram 47, 116, 327, 352, 354 Jaguar 236
instant coffee 143 Japanese cars 161
instant gratification 368 Jenna Clifford Designs 180
in-store cards 333 jewellery 180
instrumental conditioning 125, 157 Jewish faith 65
insurance 93, 212, 212–214, 363 Joe Public 108
integrated marketing communication judgemental new-task situations 268
(IMC) mix 38 Jungle 137
integration 368
intended target market 186, 187, 205 K
intensity 119 Kellogg’s 290, 291
intention Kelvinator 156
customer relationship management key buying factors (KBF) 28, 29, 30
(CRM) 324
knowledge
post-purchase 336
−attitude−behaviour (KAB) model of
repurchase 336
consumer behaviour 294, 294
interaction approach 280–281 function of attitudes 154, 156
interactive kiosks 356, 361, 363 Kolisi, Siya 73, 76
interest rate 41 Komatsu 283–285
intermediaries 358 Korean consumers 221
Copyright © 2012. Juta & Company, Limited. All rights reserved.

internal influences 13, 14, 131 kosher certificates 88

internal marketing
enhancing employee relationships L
through 339–340 labour market 38–39
as strategy to enhance external
customer service 338–341 landline 40
internal mental processes 126 language, as subculture 67
internal search 226 laundry 55, 361
internal stimuli 220 layby 23, 24
internet learners 3
access 40 learning
description 46 attitudes 150
impact of 46–47 cognitive 126, 157
population 347 conceptual 122
world wide web versus 349 elements of 122–124, 122
interpersonal relations 25 experiential 122
influence on decision-making 5, 5
interpretation nature of 121–122

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 411
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 411 2022/03/29 11:20 AM

Consumer Behaviour

participation 124 loyalty

reinforcement 122, 123–124 antecedents to 334
repetition 124 attitudinal 332
response 122, 123 attitudinal brand loyalty 160
stimulus 122, 123 behavioural 160, 332
theories of 124–126 brand(s) see brand(s): loyalty
legislation 43–44 customer(s) 331–335
programmes 332–334
lesbian community 51–53
real 334
levelling 121 relationship(s) 331–337
Levi 103, 104, 209, 358 satisfaction and 334
LGBTI (lesbian, gay, bisexual, transgender store see store(s): loyalty
and intersex) community 51–53, 96 -type behaviour 335
liberals 201
M
life
machine learning 47
cycle
households 252–257 macro-segmentation 212
segmentation 189 magical powers 179
expectancy 36, 93, 98, 284 maintainers 251
insurance 212, 212–213
plane 192, 193 Makro 357, 358
stages 106, 192–193, 254, 254–255, 255 management
lifestyle(s) marketing 290
description 14–15 value 27–28
households 250 manufacturer brands 305
influence MAPS (the Marketing All Product Survey)
on decision-making 5, 6 55
of personality on 173–174
marital status 188, 189
model of customer behaviour 12, 13
psychographic segmentation 191–193, market
191 aspirer 212–213
psychographics 140 basic product/economy 199
social classes 81 best-value 199
values determining 140–141 blurring between customer and B2B
361
lifetime value 28, 97, 114, 323, 336–337
characteristics
limited decision making 229–230 description 13, 14, 35–47
Copyright © 2012. Juta & Company, Limited. All rights reserved.

LinkedIn 329, 352 influence on customer behaviour

Lipton 102 36
marketing implications 57
literacy rate 38, 57
trends that influence customer
live chat 359 behaviour 47–56
Living Standards Measure (LSM) 41, 83, convenience/personalisation 199, 200
84, 84, 85, 90–91, 106, 107, 107, 189, female 94–95
210 intended target 186, 205
lockers 357–358 labour 38–39
mass 120, 186, 187, 188
longer-term buyers 204 mature 98
long-term survival 7, 8 premium 199, 200
lower class 77, 78, 79, 79, 81 segmentation see segmentation
structure characteristics 303, 304
lower-income group 66
uncertainties 279
lower-lower class 82 value see value
lower-middle class 81–82 Market Research Africa 141, 174
lower-upper class 80 marketing
low-involvement decision making 228 cause-related 50–51

Roberts-Lombard,412M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 412 2022/03/29 11:20 AM

Index

communication Mentadent P. 289

attitudes 158 mental activities 5
gender 54–55
mental manipulation 126
race and 90
concept 3, 7, 7, 8–10, 178 Mercedes-Benz 136, 137, 154, 210
digital 56, 113 metrosexual 95
e- 352, 353 Mexican customers 66
email 352, 353
frequency 125 micro-segmentation 212–214
gender middle class 55–56, 77, 78, 79, 79, 80, 81,
-based 53–55 190, 212, 212–213
-inclusive 96 millennials 96, 200
green 47–50
mining environment 283–284
implication of value concept 31–32
internal see internal marketing minors 249
management objectives 290 mispurchase 24
maturity 8 mobile marketing 56, 352, 353
mix 11, 35, 36, 57, 58, 83, 105, 137,
mobile phone services 186, 188, 197
187, 210, 214, 311, 314, 327
mobile 56, 352, 353 modified rebuys 267–268
multichannel 282 Mont Blac pens 155
multigenerational marketing 106 Mother’s Day 200
non-binary 96
orientation 9–10 motivation see also needs
permission 364 classification of 133–139
push 361 definition 129
relationship see relationship(s): drive state 133
marketing economic 139
social 50 emotional 139
employees 275, 340–341
strategy 11–12, 47, 67, 79, 82–83, 83,
external motives 138
106, 149, 168, 187, 214, 220, 220,
influence on decision-making 5, 5
303, 306, 324, 339
learning 126
masculinity 62, 92 McGuire’s psychological motives
Maslow’s hierarchy of needs 133–137, 134, 137–138
136–137 nature of 130–133
mass market 101, 120, 186, 187, 188 needs and 130–132
psychographics 140–141
Massmart 307
Copyright © 2012. Juta & Company, Limited. All rights reserved.

want 130
Mastercard 96 motivational research 142–143
mature motorcycle manufacturing 267
couples 255, 256, 257
household 255, 256, 257 Motsepe, Patrice 80
market 98 MP3s 104
singles 255, 256, 257 Mr Price Home 359
McDonald’s 103, 210, 359 MTN 143, 186
McGuire’s psychological motives 137–138 MTV 103
‘Me Too’ campaign 76 multi-channel marketing 282
meal multi-channel purchasing 282
kit services 54
multi-channel strategies 356
products 66, 118, 211
multi-generational marketing 106
medical aid 119
music 104
memory 121
Muslims 65
men
changing role of 95 mythical audience 174
fragrances 92 Mzansi youth 56

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 413
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 413 2022/03/29 11:20 AM

Consumer Behaviour

N Nielsen 102
Nataniël 125 Nike 96, 103, 131, 189, 358, 360
national brands 305, 306 noise 119, 120
National Consumer Commission (NCC) Nokia 143
24 non-binary marketing 96
National Pork Promotion and Research non-durable goods
Board 211 buyer(s) 25–26
nationality as subculture 66 payer(s) 25–26
natural environment, damage to 44 user(s) 25–26
values and customer roles 25–26
Naturals toothpaste 50
non-family households 256
needs see also motivation
normative influence 75
acquired 130
analysis 188 norms 68
arousal of 131–132 novelty 138
basic 131 nuclear families 244
belongingness and love 134, 134, 135,
137
O
categorisation 138
causation 138 occupation
classification of 133–139 segmentation 188, 189
cognitive awareness of 132 as subculture 66
consistency 137–138 Olive Garden 137
cues 138 Olympic Games 52
drivers 203
omnichannel shopping 359
economic 139
ego 134, 134, 136, 136 One Direction 104
emotional 139 OneCar 358
emotional arousal of 132, 133 online
environmental arousal of 132 business 352–353, 353
esteem 134, 134, 136, 136 complaint form 365
functional 188 customer behaviour 367–369
hedonic 131 help-desk 365
innate 130 media and decision making 362–365,
Maslow’s hierarchy of 133–137, 134, 362
136–137 paradigm shifts 357–359
McGuire’s psychological motives
Copyright © 2012. Juta & Company, Limited. All rights reserved.

purchases (e-commerce) 47, 221

137–138 shoppers 348, 364
motivation and 130–132 shopping 197, 310, 357, 360, 361, 363,
novelty 138 367
physiological 134, 137 surveys 365, 366
physiological arousal of 132, 133 technologies, 355–356, 356
safety 134, 134, 135, 137 operant conditioning 125
segmentation 198–199, 198, 205
self-actualisation 134, 134, 136, 136 Orbitz 96
self-expression 138 order routines 266
social 134, 134, 135, 137 organic foods 131
uncertainties 279
organisational buying
utilitarian 131
customer, insight 281
neo-Freudian theory 172 buyers 270
neutral or indifferent behavioural buying
response 233 process 265–269, 269
situations 267–269
new man 95
centre 269–271
new-age elderly 98, 99 customer experience 281
newlyweds 193 deciders 270

Roberts-Lombard,414M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 414 2022/03/29 11:20 AM

Index

decision making 269, 269–271 durable goods 26

environmental forces 272 financing value 23
forces shaping 271–273 market value sought by 22–23
gatekeepers 270 non-durable goods 25–26
group forces 273 personal values 23
high-quality content 282 price value 22–23
implication of recent developments service(s) 27
281–282 universal value 22–23
importance of 265 perceived risk 228
individual forces 273
perception
influencers 270
advertising 116
initiators 270
attention 116, 117, 118–119
multichannel
based on individual’s frame of
marketing 282
reference 117
purchasing 282
branding 116
putting theory and practice together
definition 114, 222
282–283
exposure 117, 118
organisational customers importance of 115–116
activity cycle (CAC) 267 influence on decision-making 5, 5
characteristics 264 influencers 116
terminology 263 interpretation 116, 117, 120–121
who are 264 interpreting/reacting 115
organisational forces 272 levelling 121
nature of 116–117
organisational integration 10
organising/interpreting 114
organisational purchases and positioning 206
modified rebuys 267–268 price 115
new-task situations 268 process 114–115, 116, 117–121
repeat purchases 204, 267, 275, 277, quality 115
303, 331, 332 recall (memory) 121
straight rebuys 267 reputation 116
organising/interpreting, perception 114 selective 117
Oscar Pretorius 76 sensing/selecting 114
service 115
other-directed advertisements 175, 176 sharpening 121
other-directedness individuals 175 social media 116
outer-directed people 173 subjective 117
Copyright © 2012. Juta & Company, Limited. All rights reserved.

perceptual defence 113, 117

P perceptual filters 117
packaging 9, 48, 49, 50, 67, 100, 116, 119, perceptual process 116, 117–121
120, 121, 149, 153, 161, 199, 216, 291,
performance
293, 293, 296, 305, 306, 311, 313, 314
review 266
panic buying 221 shifting 161
parenthood 253 value(s) 21–22, 21, 25, 26, 27
Pareto Principle 203, 335 perfume 137, 141, 151, 189
participation, learning 124 permission marketing 213, 364
passive consumers 231 personal characteristics 13, 14
past experience 12, 268, 293, 294, 298 age 97–109
description 87
Patagonia 131 gender 91–96, 91–92
patient(s) 3 race 88–89
pay it forward, pay it back 51 religion 87–88
payer(s) personal differences 227
credit value 23 personal relationships, business-to-
customer roles 2, 4 business markets (B2B) 204

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 415
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 415 2022/03/29 11:20 AM

Consumer Behaviour

personal use 4 pleasure 188

personal values point-of-purchase displays 160
convenience and personalisation political correctness 116
24–25
pollution 44, 49, 50, 51, 161
credit and financing 23
group specific 20, 21, 25, 26, 27, 32 Polo Blue Motion 131
individual-specific 20, 21, 26, 27, 32 polygamous behaviour 335
market value-based segmentation 199 population
non-durable goods 26 age composition 97
payers and 23 density 190
social and emotional 21, 22 population 95
personalisation statistics 36–37
market 199, 200 pork 211
value 21, 24–25, 26, 27
world wide web 359 position 119
personality positioning
of brand 209, 314 applications and needs hierarchy 137
can change 169, 171 competitor analysis 209
characteristics 167, 169–171 description 206–208
consistent and enduring 169, 170 identify competitive advantage
definition 168–169 209–210
Freud’s psychoanalytic theory of map 206, 207
personality 171 and perception 206
Gestalt theory 172–173 process 187, 187
influence on repositioning 211, 211
decision-making 5, 6 strategy 207, 209–210
lifestyle 173–174 positive attitudes 104, 105, 154, 156, 157,
knowledge of 175 160, 290, 294, 294, 334
nature of 168–169 possessions
neo-Freudian theory 172 self-enhancing 179
reflecting individual differences 169, valued 179
170
Post Office 43
of target market and brand image 312
theories of 171–173 post-buying
Trait theory 172 assessment 234
value to marketers 174–175, 176 conflict 234
variables 175 dissatisfaction 233, 235
as whole actualising itself in dissonance 234, 235
Copyright © 2012. Juta & Company, Limited. All rights reserved.

environment 169, 171 experience 365

indifference 233
personnel, differentiation 210
online 365
Phan, Cameron Lee 96 regret 234
photographers 123 response 232
Photoshop 123 satisfaction 233
physical activities 4 post-buying response 232
physical distribution of population 37 post-parenthood 254
physical environment 35, 44–45, 58, 340 post-purchase advice and assistance 24
physical factors determining store post-purchase intention 336
patronage and loyalty 309 poverty 39, 40, 82, 190
physical isolation 368 power, purchasing 3, 41, 42, 43, 45, 52,
physiological needs 132, 133, 134, 134, 55, 304
135, 137 preference
Pick n Pay 307, 333, 358 brand 293–294, 294
Pick n Pay Smart Shopper 333, 334 store 307
Pinterest 352, 354 premium market 199, 200

Roberts-Lombard,416M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 416 2022/03/29 11:20 AM

Index

pre-purchase advice and assistance 24 psychographics

Pretorius, Oscar 76 definition 140, 169
lifestyle 140
price profiles 141
consciousness 221 uses of 141
perception 115 variables 140
reductions 160, 311
sensitivity 42, 274, 306, 336 psychological domain 223
value 21, 22–23, 25, 26, 27 psychological factors determining store
primary reference groups 73 patronage and loyalty 309
private brands 306 psychological forces 14
problem psychological motives 137–138
definition 265 pull-tabs 100
recognition 224–226, 224, 225, 265, punishment 75
362–363, 362
purchase(s)
solving 126, 220, 222, 230, 362, 363
customer relationship management
production, orientation 8–9 (CRM) 324
product(s) decision makers 200–202
appropriateness 98 organisational see organisational
attributes 153 purchases
benefits 98, 153 repeat 204, 267, 275, 277, 303, 331, 332
categories 91–92 purchasing
complexity of for business-to-business behaviour and generational
markets (B2B) 203 differences 105
criteria 230–231 multichannel 282
customisation 322 pattern and social classes 81
differentiation 210 power 3, 41, 42, 45, 52, 53, 55, 304
environmentally friendly 45
Purchasing Managers Index (PMI) 272
evaluation of alternatives 230–231
fantasy 178 push marketing 361
image 11, 174
improvement 311 Q
interaction approach 280 quality, perception 115
involvement 228
Quality Beverages 290
market 199
market value 20–21 quality-consciousness 221
marketing communications 90
Copyright © 2012. Juta & Company, Limited. All rights reserved.

offerings used in determining store R

patronage and store loyalty 309 race
preference and brand names 291 Living Standards Measure (LSM)
race and 90 90–91
and social classes 85 personal characteristics 88–89
specifications 265 and products 90
strategy, gender typecasting 54 as subculture 67
value bundling 25–27
radio 54, 57, 85, 106, 118, 119, 120, 158,
profiling 205, 205 350, 361
profitability, customer(s) 31, 323, 338 rainwater harvesting 48
profit(s), orientation 10 Ramadan 88
projective techniques 142–143 Ramsay, Gordon 125
promiscuous behaviour 335 rank 179
Protea cricket 75 real decision making 230
psychoanalytic theory of personality 171 rebuys
psychographic segmentation 169, 170, modified 267–268
173, 191, 191, 192, 192 straight 267

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 417
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 417 2022/03/29 11:20 AM

Consumer Behaviour

recall (memory) 121 stimulation of long-term 323

received benefit 19 strategy 322–323
switching rate of customers 323
recession 41, 42 marketing
reciprocity 340 commitment−trust theory of 277
recycling 48–49, 161 description 10, 274, 320–321, 338
individual customer approach 337,
Redds 210 338
reduced means 226 loyalty 313, 332
reference groups retention of customers 319, 320,
advertising 76 321, 326, 331, 332, 335–336
characteristics 75–76 training 340
description 71–72 women and 94
families 243–248 religion
households 243–248 personal characteristics 87–88
influence on decision-making 5, 6 as subculture 65, 87
role of 72, 85 religious identity 88
types of 72–74
remote lock-up solutions 357–358
use of in marketing 75
value-expressive 75 repeat business 8
reinforcement repeat buying behaviour 229, 237,
learning and 122, 123–124, 125 295–296, 296
motives 138 repeat purchases 204, 267, 275, 277, 303,
re-intermediation 358 323, 331, 332
rejection 338 repetition, learning 124
relationship(s) repositioning 211, 211
business-to-business markets (B2B) see repurchase intention 336
business-to-business markets (B2B): reputation, perception 116
relationships
resistance to authority 174
engagement see engagement
loyalty 331–337 respect 94, 136
management response, learning and 122, 123
awareness 324 responsiveness, target 206
business-to-business markets (B2B)
275 restaurants 88, 100, 158, 173, 176, 210,
competitive edge 323 290, 333
customer-centrism 355–356 retail strategy, gender 55
Copyright © 2012. Juta & Company, Limited. All rights reserved.

customisation of products and retailers 25, 50, 51, 88, 138, 140, 178, 189,
services 322 217, 263, 292, 306, 307, 308, 333, 349,
delivery of improved service to 357, 358, 359, 366, 367
customers 322
retention of customers see customer(s):
description 319–320, 322
retention
developing and sustaining image
323 retrosexual 95
discovery 324 return on investment 323
e-CRM systems 355–356 reward 75, 124–125, 125
enhance customer profitability 323
reward programmes 332
evaluation 324
importance of 322, 326–327 risk
increased return on investment freedom from 24
323 perceived 228
intent 324 rituals, religious 88
loyalty 324 rugby 73, 191
multi-channel strategies 356
process 324 Rupert, Johan 80
purchase 324 rural areas 37, 57, 65
software 198 Russian customers 66

Roberts-Lombard,418M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 418 2022/03/29 11:20 AM

Index

S micro 212–214
safety needs 134, 134, 135, 137 middle class 190
needs/benefits 137, 188, 198–199, 198,
sales, orientation 8, 9
205
Samsung Galaxy smartphones 143 occupation 188, 189
sanitary towels 51 personality characteristics 169
satellite technology 46 psychographics 141
process 187, 187
satisfaction
psychographic 169, 170, 173, 191, 191,
customer 7, 7, 8, 27, 29, 30, 31, 307,
192, 192
321, 322, 323, 330, 334, 336, 339,
purchase decision makers 200–202
340, 358, 365
seasonal 200
employees 30, 321, 335, 339, 340, 341
seniors 99–100
loyalty and 334
post-buying 233 Socio-Economic Measure (SEM) 83
STP process 187, 187
search tradition-directed behaviour 170
for information 224, 226–227, 227, usage or behavioural 194–198, 194,
362, 363 195–197
for suppliers 266 value
Sears 94 -based 199–200
seasonal segmentation 200 -expressive function of attitudes
secondary reference groups 73 155
secure estates 135 selective attention 118, 156
security needs see safety needs selective exposure 118
segmentation selective interpretation 120
age 188, 189 selectors 2
behavioural 194–198, 194, 195–197, self-actualisation 134, 134, 136, 136
205 self-attitude 177
brand 298, 300
brand loyalties 196 self-concept
business-to-business markets (B2B) aspiration 75
202–205 brand image 312
characteristics 177
demographic 188–189, 188
decision making 14, 15
description 185–187, 185
description 14, 176–177
developing segment profiles 205, 205
ego-defensive function 155
differentiating aspects of customer
make-up of 178
187–188
model of customer behaviour 12, 13
Copyright © 2012. Juta & Company, Limited. All rights reserved.

education 188, 189 personality 176–177

external influences 13 target market 162
family life cycle 188, 189
female market 54 self-enhancing possessions 179
firmographic 200 self-esteem maintenance function 154,
gender 54, 188, 189 155
generational 200 self-explorers 174
geographic 190–191, 190 self-expression 138
income 188, 189
life self-helpers 202
cycle 189 self-image 131, 137, 155, 294, 309, 312
plane 192, 193 self-protection 155
stages 192–193
self(selves)
lifestyle and psychographic 191–193, altering 179
191 extended 178–179
macro 212 one self or multiple 177
marital status 188, 189 self-concept see self-concept
market 11, 187–205
Maslow’s hierarchy of needs 137 semiotics 121
methods 200 seniors 65, 73, 98–100, 98–101, 99, 100

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 419
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 419 2022/03/29 11:20 AM

Consumer Behaviour

sensing/selecting, perception 114 83–84, 84, 85

sensory segment of toothpaste market 198 marketing strategy 82–83, 83
mutually exclusive 78
Sephora 96
ordered 78
service(s) products and 85
automated 351 purchasing pattern 81
brands and good 308 shared behaviour 77
buyer(s) 27 Socio-Economic Measure (SEM) 83–84,
customisation 322 84, 85
delivery of improved 322 as subculture 66
differentiation 210 unique behaviour 77, 77
evaluation of alternatives 230–231 variables 79
market value 20–21
social episodes 281
payer(s) 27
perception 115 social esteem 188
specifications 265 social exchange theory 276
universal value 27 social factors 45–46
users 27
value 23–24, 25, 26, 21, 27, 27 social groups 5, 6
value bundling 25–27 social isolation 368
seven Ps for services 187 social marketing 50
sexual orientation 51–52 social media
shaping 125 advent of 354
advertising 116
‘Share a Coke’ campaign 292
attention level 119
shark cage diving 22 black middle class 56
sharpening 121 business channel 354–355
shopping cause-related marketing 51
agents 364, 369 cognitive awareness 132
catalogues 367 complaints 115
on demand 360, 361 customer relationship management
dependence on agents 369 (CRM) 326–327
is about delivery 357–358 definition 352
omnichannel 359 development of 354, 366–367
online behaviour 367–368 emotional
patterns 303, 304 arousal 132
value 22
Shoprite 307
engagement 328, 331, 367
Copyright © 2012. Juta & Company, Limited. All rights reserved.

Silent Generation 200 exposure 118

single-parent families 244–245, 255, 256, gay and lesbian community 53
257, 257 Generation Y 104
SMART-TVs 361 impact of 47
influencers 116
smoking 158, 161 management of new generation of
Smooth and Sleek 89, 90 customers 326–327
sociable segment of toothpaste market monitoring 235
198 online business relationships 353
perception 116
social class(es)
reputation 116
bounded 78
sources of information 82
buying patterns 79–80
statistics 327
consumer behaviour 80–82, 81
criteria 78 social needs 134, 134, 135, 137
description 76 social psychology 276
exhaustive 78
social relationships 172, 276, 293
influence 78
lifestyle orientation 81 social resisters 174
Living Standards Measure (LSM) social responsibility 10

Roberts-Lombard,420M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 420 2022/03/29 11:20 AM

Index

social self-concept 178 image 307, 308, 309, 310, 312

social standing 20, 64, 77, 77, 80, 85 loyalty
description 307
social value 21, 22, 25, 26, 27 enhancements 312–313
socialisation of household members stages of 307
248–249 online 357, 364
societal changes 45–46 patronage 307, 309, 309
physical factors 309
socio-economic factors 77
preference 307
Socio-Economic Measure (SEM) 41, product offerings 309
83–84, 84, 85, 189 psychological factors 309
sociomonitor 141, 174 straight rebuys 267
socio-political groups 193 strategic new-task situations 268
software programs 364, 365, 366 strategic value 337
solar systems 24 strategy(ies)
South African Advertising Research gender
Foundation (SAARF) 54, 55, 90–91, product 55
254 retail 55
marketing 11–12, 47, 67, 79, 82–83, 83,
Spar 307
106, 149, 168, 187, 214, 220, 220,
sponsorships 191 303, 306, 324, 339
sport 95, 104, 191, 332 value
spouses, decision making 252 for delivery 30
investigating deviations and
Springbok rugby 73 adapting 31
Spur 120 stress relief 94
Spur eFamily card 333 subcultures
stability, target 206 age 65, 98–105
Standard Bank UCount 334 description 64
gender 66
Star of David 88 geographic 65
Star Wars 102 influences on marketing decisions 67
Starbucks 96 language 67
nationality as 66
status symbols 81, 162, 163, 179
occupation 66
stepfamilies 247 race 67
Copyright © 2012. Juta & Company, Limited. All rights reserved.

stereotypes 93, 94, 95, 109 religion 65

social class 66
Ster-Kinekor 332
SupaClean 55
stimuli/stimulus
determines level of attention 118–119 Super Bowl advertisements 102
external 5, 115, 220, 220 Superbalist 357
internal 131, 220 supplier(s)
learning 122, 123 abilities 278
perception 116, 117 interaction with buyers 278–280
unique 119–120 proposals 266
stochastic models of brand loyalty 305 search for 266
stock-outs 160 selection of 266
store(s) surveys 365, 366
aesthetic factors 309 survivors 173
awareness 307 sustainability 50, 216, 304, 306
brands 306
sustenance-driven people 173
environment 308
evaluative criteria 308, 309 sweets 142
habits 307, 309–310 swimming with dolphins 22

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 421
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 421 2022/03/29 11:20 AM

Consumer Behaviour

switching transactional worth of customers 199

behaviour 335 trapped housewife 54, 94
rate of customers 323
trapped working woman 94–95
symbols
‘Travel As You Are’ 96
extended self 179
need for cues 138 travel industry 46, 138, 142
religion 88 Trellidor 137
social relationships and brands 293 trial-size products 124
status 81, 162, 163
tripartite model of attitude 150–153
systems orientation 10 Tropika 106–108, 162–163
Trump, Donald 74
T
trust
Tag Huer watches 22, 131, 138
customer engagement 330
Takealot 357 relationships 278
targeting tweens 105
accessibility 206 Twitter 47, 116, 177, 329, 352, 354, 355
description 206
identification 206 Two-spirit 189
process 187, 187
responsiveness 206 U
size 206 Uber 46
stability 206 ubersexual 95
Tastic rice 302 Ucook 54
Taylor Nelson’s model 173 ultra-conservatives 201
teachers 66 underground mining environment
technical liberals 202 283–284
technological environment 46–47 unemployment 38–39, 82, 313
telecommunication 40 unique stimuli 119
telephone service 176 unique value proposition (UVP) 29
television commercials 103 universal value 22–23
durable goods 26
Telkom 3, 186
non-durable goods 25
Tesla 150 payers and 22–23
The Mighty Company 360 services 27
Copyright © 2012. Juta & Company, Limited. All rights reserved.

theories of learning 124–126 universal value(s) 20, 21, 199

Think WiFi 57 ‘Unlimited Courage’ campaign 96
Tik-Tok 327 unsubscribing 364
Todd Snyder clothes 131 upper class 77, 78, 79, 79
toothpaste 50, 198–199, 198, 225, 229, upper-lower class 82
289 upper-middle class 81
Toyota 94, 226, 236, 369 upper-upper social class 80
traditional families 244 up-selling 32, 365, 366
traditional household life cycle 253–254 urbanisation 37, 90
traditional housewife 54 usage
traditional/stereotypical elderly 98, 99 or behavioural segmentation 194–198,
194, 195–197
tradition-directed behaviour segmentation
rate 311
170
user(s)
training, employees 340–341
description 2, 4
Trait theory 172 durable goods 26
transaction uncertainty 279 emotional value 22

Roberts-Lombard,422M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 422 2022/03/29 11:20 AM

Index

households 251 core customer outcome 30–31, 30

market value sought by 21–22 delivery 30
non-durable goods 25–26 determining benchmark of
organisational buying behaviour 270 expected 29
performance value 21–22 organisation’s perspective on
personal values 22 27–28
service(s) 27 metric process (VMP) 28, 28, 29
social value 22 perceived 9, 10, 20, 29, 31, 115, 332
universal value 21–22 performance 21, 25, 26, 27
utilitarian function of attitudes 154 personal 20, 21, 22, 23, 24, 25, 26, 27,
32, 199
utilitarian influence 75 personalisation 21, 24–25, 26, 27
utilitarian needs 131 price 21, 25, 26, 27
proposition 22, 28, 205, 275, 282, 320
V service(s) 21, 23–24, 25, 26, 27
Valentine’s Day 135, 200 social 21, 25, 26, 27
strategic 337
valued possessions 179
strategy for delivering 29
value(s) universal 20, 21, 22–24, 25, 26, 199
attitudes as combination of beliefs and
Vans 96
150
badge 228 variety-seeking behaviour 290
-based segmentation 199–200 vegetarians 121
bundling of products and services video conferencing 46
25–27
virtual
component 29
focus groups 366
consumer value management (CVM)
world 357, 367, 368
27–28
convenience 21, 24–25, 25, 26, 27 vitamin and health supplement sales 101
credit 21, 23, 25, 26, 27 Vodacom 119, 143, 162, 186
cultural 20, 68, 69 Volkswagen 102, 120
customer see customer(s): value
definition 19–20, 150
W
delivery 20, 30
emotional 21, 26, 27 Wagyu steak 20
expressive want 130
function of attitudes 154, 155 WAP 46
-expressive reference groups 75
financing 21, 23, 26, 27 ‘Washday in Lüderitz’ campaign 55
Copyright © 2012. Juta & Company, Limited. All rights reserved.

group specific 20, 21, 25, 26 waste recycling 48–49

individual-specific 20, 21, 26 water resources 39
investigating deviations and adapting
‘We belong to something beautiful’
strategy 31
campaign 96
lifestyle and 140–141
lifetime 28, 97, 114, 323, 336–337 weather 190
management 27–28 Web 2.0 era 326–327
market websites, actions taken on 197
bundling of products and services
25–27 WeChat 327
components 21 weddings 92
customer roles 21, 21 WhatsApp 47, 327, 354
definition of value 19–20
white
of services of products 20–25
collar middle class 79
sought by 21–25
meat 211
marketing implications of concept
31–32 WiFi 57
matrix of 21 women
measurement Black Diamonds 56

Roberts-Lombard, M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central, 423
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 423 2022/03/29 11:20 AM

Consumer Behaviour

car sales 93, 94 global audience 350

career-driven 54, 95 hyper-mediated environment 350
changing role of 92–95 impact of 347–348
connection 94 information function 349
family-orientated 54 instant gratification 368
gender-based 53–55 interactive information 350
impact of versus internet 349
as consumers 93 isolation 368
in workplace 93 multimedia environment 350
individuality 94 omnichannel shopping 359
life expectancy 93 online
relationship and 94 business 352–353, 353
respect 94 customer behaviour 367–369
stress relief 94 personalisation 359
trapped working 94–95 reach 351
Woods, Tiger 22, 76 shopping on demand 360, 361
web usability 368
Woolworths 48–49, 50, 280, 307, 333, 358
worrier segment of toothpaste market 198
working class 78, 81
world wide web X
abbreviated attention span 368
Xhosa community 67
actions taken on websites 197
advantages as business tool 349–351
‘always on’ environment 351 Y
automated services 351 Yebo Gogo advertisements 162
blurring between customer and young couples 255, 256, 257
business markets 361
young family 255, 256, 257
communications function 349
computer environment 350 young independent singles 254, 256, 257
customers as co-producers 360–361 YouTube 65, 327, 352, 354, 355
customisation 359–360 Yuppiechef 359
decision making 362–365
description 348 yuppies 101, 102
direct transactions 351
easy storing and updating of Z
information 350 Zionist Church members 88
e-business 350, 351 zip-lock packages 100
flexible environment 351
Zuckerberg, Mark 132
Copyright © 2012. Juta & Company, Limited. All rights reserved.

functions of 348–349
getting to know individual customers Zuma, Jacob 41
366–367

Roberts-Lombard,424M.. Consumer Behaviour, Juta & Company, Limited, 2012. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/ujlink-ebooks/detail.action?docID=6950000.
Created from ujlink-ebooks on 2023-09-21 12:40:55.

Consumer Behaviour 5E.indb 424 2022/03/29 11:20 AM

pdf
No ratings yet
pdf
2 pages
investment-management 001-050
No ratings yet
investment-management 001-050
50 pages
Marketing management a relationship approach Third Edition. Edition Hollensen 2024 scribd download
100% (1)
Marketing management a relationship approach Third Edition. Edition Hollensen 2024 scribd download
55 pages
66851
No ratings yet
66851
30 pages
Core Competencies of Nurse Educators
No ratings yet
Core Competencies of Nurse Educators
6 pages
Absolute Essentials of Strategic Marketing
0% (1)
Absolute Essentials of Strategic Marketing
18 pages
Keegan Globalmktg 6E CH08
No ratings yet
Keegan Globalmktg 6E CH08
28 pages
Essentials of Operations Management
50% (2)
Essentials of Operations Management
11 pages
The Practice of Market Research Ebook An Introduct... - (Question Content)
No ratings yet
The Practice of Market Research Ebook An Introduct... - (Question Content)
6 pages
(S4) Strategic Management Accounting: Part - A
No ratings yet
(S4) Strategic Management Accounting: Part - A
8 pages
The Metaphoric and Metonymic Poles
No ratings yet
The Metaphoric and Metonymic Poles
4 pages
Essentials of Inventory Management 2nd Edition Max Muller all chapter instant download
100% (7)
Essentials of Inventory Management 2nd Edition Max Muller all chapter instant download
70 pages
Procurement Strategies and Structures
100% (1)
Procurement Strategies and Structures
52 pages
Describe The Stages of The Product Life Cycle and How Marketing Strategies Change During The Product Life Cycle?
No ratings yet
Describe The Stages of The Product Life Cycle and How Marketing Strategies Change During The Product Life Cycle?
6 pages
Operations Management For Sustainability Short Essay To Send - Copy 2022 123
No ratings yet
Operations Management For Sustainability Short Essay To Send - Copy 2022 123
11 pages
Marketing Management Assignment
100% (1)
Marketing Management Assignment
12 pages
Buy ebook Starting Out in Project Management 3rd Edition Association For Project Management cheap price
100% (1)
Buy ebook Starting Out in Project Management 3rd Edition Association For Project Management cheap price
47 pages
IY2593 Managerial Economics: Assignment 1
No ratings yet
IY2593 Managerial Economics: Assignment 1
5 pages
Operations Management of Logistics and Supply Chain: Issues and Directions
100% (1)
Operations Management of Logistics and Supply Chain: Issues and Directions
16 pages
Download the updated Consumer Behavior 12th Edition Schiffman Test Bank (PDF) containing all chapters.
100% (14)
Download the updated Consumer Behavior 12th Edition Schiffman Test Bank (PDF) containing all chapters.
66 pages
Strategic Management Framework
No ratings yet
Strategic Management Framework
24 pages
Business To Business Marketing
No ratings yet
Business To Business Marketing
9 pages
DWN Dormakaba Corporate Presentation en
No ratings yet
DWN Dormakaba Corporate Presentation en
24 pages
MBA 1302 Full
No ratings yet
MBA 1302 Full
308 pages
Chapter 02 - The Sales Function and Multi - Sales Channels - Sep 16
No ratings yet
Chapter 02 - The Sales Function and Multi - Sales Channels - Sep 16
26 pages
International Business PDF
No ratings yet
International Business PDF
19 pages
IBUS 301 Fall 2022 Syllabus
100% (1)
IBUS 301 Fall 2022 Syllabus
7 pages
Bcu100 2024 02 SG - 1130013004
No ratings yet
Bcu100 2024 02 SG - 1130013004
99 pages
Business Decision Making 1
100% (2)
Business Decision Making 1
505 pages
Chapter 11 Pricing Strategies
No ratings yet
Chapter 11 Pricing Strategies
34 pages
Market Segmentation, Targeting, and Positioning For Competitive Advantage
100% (1)
Market Segmentation, Targeting, and Positioning For Competitive Advantage
25 pages
Test Bank for Operations and Supply Chain Management 2nd Edition by Collier
No ratings yet
Test Bank for Operations and Supply Chain Management 2nd Edition by Collier
7 pages
Operations Management MGT 320
100% (1)
Operations Management MGT 320
17 pages
1 Organizational Behaviour
No ratings yet
1 Organizational Behaviour
28 pages
MNM2604 TL102 1 2023
No ratings yet
MNM2604 TL102 1 2023
10 pages
International Business: by Charles W.L. Hill
No ratings yet
International Business: by Charles W.L. Hill
25 pages
The Strategic Development of Multinationals Subsidiaries and Innovation 1st Edition Marina Papanastassiou 2024 Scribd Download
100% (9)
The Strategic Development of Multinationals Subsidiaries and Innovation 1st Edition Marina Papanastassiou 2024 Scribd Download
81 pages
Chapter 6 - Marketing Pricing
No ratings yet
Chapter 6 - Marketing Pricing
42 pages
Download full Mathematics for Economics and Business, 10th Edition Ian Jacques - eBook PDF ebook all chapters
100% (6)
Download full Mathematics for Economics and Business, 10th Edition Ian Jacques - eBook PDF ebook all chapters
69 pages
Pressed
No ratings yet
Pressed
180 pages
Han21080419 Ibs
No ratings yet
Han21080419 Ibs
6 pages
Marketing Summary
100% (3)
Marketing Summary
30 pages
The Importance of Customer Satisfaction
No ratings yet
The Importance of Customer Satisfaction
62 pages
Economics Assign Mba 9
No ratings yet
Economics Assign Mba 9
34 pages
CS8700 2021 Course Syllabus
No ratings yet
CS8700 2021 Course Syllabus
16 pages
BBA - Business Administration 101 Pre Exam
No ratings yet
BBA - Business Administration 101 Pre Exam
114 pages
Chapter 14 Marketing Planning Implementation and Control
No ratings yet
Chapter 14 Marketing Planning Implementation and Control
35 pages
PRINCIPLES OF MARKETING Notes
75% (4)
PRINCIPLES OF MARKETING Notes
20 pages
SCM 1 Value Chain Porter
100% (1)
SCM 1 Value Chain Porter
27 pages
Chapter 01
No ratings yet
Chapter 01
42 pages
Chapter 6 Product Decisions 2
No ratings yet
Chapter 6 Product Decisions 2
49 pages
Corporate Finance: Group Project Report: Types of Businesses, Tax Rates Applied & Tax Exemptions
No ratings yet
Corporate Finance: Group Project Report: Types of Businesses, Tax Rates Applied & Tax Exemptions
29 pages
International Marketing Mix Strategy
0% (1)
International Marketing Mix Strategy
4 pages
New Product Development Unit 1
No ratings yet
New Product Development Unit 1
22 pages
Retail Marketing Management: Principles and Practice Helen Goworekinstant download
100% (2)
Retail Marketing Management: Principles and Practice Helen Goworekinstant download
58 pages
10 Characteristics of Great Value Propositions
No ratings yet
10 Characteristics of Great Value Propositions
1 page
Tut Chap 9 - Dependent and Independent Demand
No ratings yet
Tut Chap 9 - Dependent and Independent Demand
12 pages
Operations Management 2 PDF
No ratings yet
Operations Management 2 PDF
24 pages
Technology in Retailing - Unit 5
No ratings yet
Technology in Retailing - Unit 5
25 pages
International Marketing Managment Assigment
No ratings yet
International Marketing Managment Assigment
9 pages
Service Marketing Chapter 08
No ratings yet
Service Marketing Chapter 08
31 pages
Book Chapter - Supply Chain Finance Perspectives
No ratings yet
Book Chapter - Supply Chain Finance Perspectives
26 pages
Consumer Behaviour 3e
100% (3)
Consumer Behaviour 3e
465 pages
DOWELANI EUP1501 ASSESSMENT3
No ratings yet
DOWELANI EUP1501 ASSESSMENT3
6 pages
CAS1501-25-S1 Assessment 3 Case study FINAL
No ratings yet
CAS1501-25-S1 Assessment 3 Case study FINAL
3 pages
EUP ASSESSMENT LUBISI
No ratings yet
EUP ASSESSMENT LUBISI
6 pages
EUP1502 - Formative Assessment 3 Semester 1 -2025 - Instructions (1)
No ratings yet
EUP1502 - Formative Assessment 3 Semester 1 -2025 - Instructions (1)
2 pages
MAC1501 Management Accounting Assignment (1)
No ratings yet
MAC1501 Management Accounting Assignment (1)
2 pages
Applications open today for Presidential Youth Emp_250422_133618
No ratings yet
Applications open today for Presidential Youth Emp_250422_133618
1 page
Formative Assessment 3 - PowerPoint Presentation (1)
No ratings yet
Formative Assessment 3 - PowerPoint Presentation (1)
5 pages
EUP
No ratings yet
EUP
4 pages
ENG1503 ASSIGNMENT 2
No ratings yet
ENG1503 ASSIGNMENT 2
3 pages
MNM3705 ASSESSMENT 1 [55046606]
No ratings yet
MNM3705 ASSESSMENT 1 [55046606]
4 pages
Assignment 2 Eng1503
No ratings yet
Assignment 2 Eng1503
4 pages
Document (9)
No ratings yet
Document (9)
2 pages
Document (2)
No ratings yet
Document (2)
3 pages
SKM book
No ratings yet
SKM book
54 pages
ENG1504 ASSIGNMENT 02_084731
No ratings yet
ENG1504 ASSIGNMENT 02_084731
4 pages
DLL Catch Up Friday Grade 2
100% (8)
DLL Catch Up Friday Grade 2
6 pages
VAISH, Amrisha HEPACH, Robert (2019) The Development of Prosocial Emotions (Artigo)
No ratings yet
VAISH, Amrisha HEPACH, Robert (2019) The Development of Prosocial Emotions (Artigo)
15 pages
Neuroscience Knowledge Enriches Pedagogical Choices
100% (1)
Neuroscience Knowledge Enriches Pedagogical Choices
12 pages
Pte Study Guide
No ratings yet
Pte Study Guide
5 pages
Fanning The Old Flames
No ratings yet
Fanning The Old Flames
5 pages
Gordon Functional Health Assessment
100% (1)
Gordon Functional Health Assessment
18 pages
Artificial Intelligence GTU Study Material 2017 16032017 064055AM
No ratings yet
Artificial Intelligence GTU Study Material 2017 16032017 064055AM
114 pages
CH 10: Expert Systems:: Representing Using Domain Knowledge Expert System Shells Explanation, Knowledge Acquisition
100% (1)
CH 10: Expert Systems:: Representing Using Domain Knowledge Expert System Shells Explanation, Knowledge Acquisition
22 pages
Elin103semifinals Reviewer 1
No ratings yet
Elin103semifinals Reviewer 1
11 pages
Mgt1131r4 Course Syllabus
100% (1)
Mgt1131r4 Course Syllabus
21 pages
Business Communication Skills There Are Four Units of This Course
No ratings yet
Business Communication Skills There Are Four Units of This Course
24 pages
Marian
No ratings yet
Marian
2 pages
Fortna Syllabus
No ratings yet
Fortna Syllabus
10 pages
Cogland Action Research Paper
No ratings yet
Cogland Action Research Paper
9 pages
Data-Collecting Instruments
No ratings yet
Data-Collecting Instruments
5 pages
Lecture 07 - 01 - 10 Key Elements of A Research Paper
No ratings yet
Lecture 07 - 01 - 10 Key Elements of A Research Paper
44 pages
Internship in NLP and AI
No ratings yet
Internship in NLP and AI
2 pages
8 The Role and Design of Instructional Materials
No ratings yet
8 The Role and Design of Instructional Materials
51 pages
Island Survival Conversation English ESL
No ratings yet
Island Survival Conversation English ESL
12 pages
Barrier To Communication
No ratings yet
Barrier To Communication
41 pages
Reading B2
No ratings yet
Reading B2
4 pages
Harunavamwe Kanengoni 2013 AJBM
No ratings yet
Harunavamwe Kanengoni 2013 AJBM
8 pages
Collaborative Learning Activity Evaluation Rubric (GRUPO II)
No ratings yet
Collaborative Learning Activity Evaluation Rubric (GRUPO II)
3 pages
Chapter 8-Lesson 1 (, Junsay)
No ratings yet
Chapter 8-Lesson 1 (, Junsay)
24 pages
Observation 5
No ratings yet
Observation 5
4 pages
Ai Pso
No ratings yet
Ai Pso
5 pages
Instructor Clinical Evaluation Tools
No ratings yet
Instructor Clinical Evaluation Tools
11 pages
Sinopsis Emotional Intelligence
No ratings yet
Sinopsis Emotional Intelligence
2 pages

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.

Consumer Behaviour 5th Ed

Uploaded by

Consumer Behaviour 5th Ed

Uploaded by

Consumer

Consumer Behaviour 5E.indb 1 2022/03/29 11:19 AM

Consumer Behaviour 5E.indb 2 2022/03/29 11:19 AM

Sanjana Brijball Parumasur

Consumer Behaviour 5E.indb 3 2022/03/29 11:19 AM

Chapter 1: Introduction to customer behaviour . . . . . . . . . . . . . 1

1.5.6 The customer decision-making process . . . . . . . . . . . . . 15

Chapter 2: Creating market value for consumers . . . . . . . . . . . . 19

Consumer Behaviour 5E.indb 5 2022/03/29 11:19 AM

2.4.2 Durable goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Chapter 3: Market characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . 35

3.3.2 Cause-related marketing . . . . . . . . . . . . . . . . . . . . . . . . . 50

Chapter 4: Culture and consumer behaviour . . . . . . . . . . . . . . . . 63

Consumer Behaviour 5E.indb 6 2022/03/29 11:19 AM

4.3 Evolving nature of culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Chapter 5: Reference groups and social class . . . . . . . . . . . . . . . . 71

Chapter 6: Personal characteristics . . . . . . . . . . . . . . . . . . . . . . . . . 87

Consumer Behaviour 5E.indb 7 2022/03/29 11:19 AM

6.5.4 General tips for multigenerational marketing . . . . . . . . 105

Chapter 7: Customer perception and learning . . . . . . . . . . . . . . . 113

Chapter 8: Customer motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

8.3 The classification of motives (needs) . . . . . . . . . . . . . . . . . . . . . . . . . 133

Consumer Behaviour 5E.indb 8 2022/03/29 11:19 AM

8.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

Chapter 9: Customer attitudes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

9.5.6 Marketing communications . . . . . . . . . . . . . . . . . . . . . . 158

Chapter 10: Personality and self-concept . . . . . . . . . . . . . . . . . . . 167

Consumer Behaviour 5E.indb 9 2022/03/29 11:19 AM

10.3 The characteristics of personality . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

Chapter 11: Market segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . 185

11.3.1 Demographic segmentation . . . . . . . . . . . . . . . . . . . . . . 188

Consumer Behaviour 5E.indb 10 2022/03/29 11:19 AM

11.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

Chapter 12: The consumer decision-making process . . . . . . . . . 219

Chapter 13: Household or family decision making . . . . . . . . . . . 243

13.3.2 Economic well-being . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249

Consumer Behaviour 5E.indb 11 2022/03/29 11:19 AM

13.8 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

Chapter 14: Organisational buying behaviour . . . . . . . . . . . . . . . 263

CASE STUDY: Komatsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283

Chapter 15: Consumer loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

Consumer Behaviour 5E.indb 12 2022/03/29 11:19 AM

15.2.6 Complex decision making and brand loyalty . . . . . . . . . 296

Chapter 16: Building relationships with customers . . . . . . . . . . 319

environment such as South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . 330

Consumer Behaviour 5E.indb 13 2022/03/29 11:19 AM

CASE STUDY: Corriwood – a customer experience from hell . . . . . . 341

Chapter 17: The online world and customer behaviour . . . . . . . 347

17.5.4 Instant gratification . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368

Consumer Behaviour 5E.indb 14 2022/03/29 11:19 AM

First published 2006

© 2022 Juta and Company (Pty) Ltd

ISBN (Print): 978 1 48513 221 9

Production Specialist: Fuzlin Toffar

Consumer Behaviour 5E.indb 4 2022/03/29 11:19 AM

Prof CH (Neels) van Heerden is a Research Professor in the Faculty of Manage­

Consumer Behaviour 5E.indb 15 2022/03/29 11:19 AM

Consumers are the lifeblood of all organisations and it is therefore imperative

Consumer Behaviour 5E.indb 16 2022/03/29 11:19 AM

lost. Consumer behaviour and correctly predicting it is a complex and demanding

Consumer Behaviour 5E.indb 1 2022/03/29 11:19 AM

of customer behaviour to business management, the applications of customer

1.2 What is consumer behaviour

Consumer behaviour is the study of individuals, groups, or organisations

Customer types Roles

Figure 1.1 Customer types, roles and behaviours

Consumer Behaviour 5E.indb 2 2022/03/29 11:19 AM

1.2.1 Types of customers

household markets as ‘clients’ or by their more context-specific roles, for example,

1.2.2 The three roles of customers

Consumer Behaviour 5E.indb 3 2022/03/29 11:19 AM

Each of these roles may be carried out by an individual, by an organisational unit

Companies need to be aware of these different roles and where a customer

1.2.3 Mental and physical activities

Consumer Behaviour 5E.indb 4 2022/03/29 11:19 AM

Individual factors Group factors

Prof CH (Neels) van Heerden is a Research Professor in the Faculty of Manage