Consumer Behaviour - Schiffman

Chapter 1
Introduction to Consumer
Behaviour
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Pearson Education Asia Pte.
Opening Vignettes
 Tim Horton’s started in 1964
• Merged with Wendy’s in 1999
• Has operations in several states in
the US
• Mercedes Who is likely to be the
typical buyer of Smart?
Copyright © 2006 Pearson Education Asia Pte. 1-2

Consumer Behaviour
The behaviour that consumers

display in searching for,
purchasing, using, evaluating,
and disposing of products and
services that they expect will
satisfy their needs.
Personal Consumer
The individual who buys goods

and services for his or her own
use, for household use, for the
use of a family member, or for a
friend.
Development of the Marketing
Concept
Production
Concept
Product Concept
Selling Concept
Marketing
Concept
The Production Concept
 Assumes that consumers are interested
primarily in product availability at
low prices
 Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion

The Product Concept
 Assumes that consumers will buy the

product that offers them the highest
quality, the best performance, and the
most features
– Quality improvement
– Addition of features
 Tendency toward Marketing Myopia
The Selling Concept
 Assumes that consumers are unlikely

to buy a product unless they are
aggressively persuaded to do so
– Sell, sell, sell
 Lackof concern for customer needs
and satisfaction
The Marketing Concept
 Assumes that to be successful, a

company must determine the needs and
wants of specific target markets and
deliver the desired satisfactions better
than the competition
– Profits through customer satisfaction
Business Leaders Who Understood
Consumer Behaviour
 AlfredSloan, General Motors
 Colonel Sanders, KFC
 Ray Kroc, McDonald’s

Implementing the Marketing
Concept
 Consumer Research
 Segmentation
 Targeting
 Positioning

Segmentation, Targeting, and
Positioning
 Segmentation: process of dividing the
market into subsets of consumers with
common needs or characteristics
 Targeting: selecting one ore more of
the segments to pursue
 Positioning: developing a distinct
image for the product in the mind of
the consumer
Successful Positioning
 Communicating the benefits of

the product, rather than its
features
 Communicating a Unique Selling
Proposition for the product

The Marketing Mix
 Product
 Price
 Place
 Promotion

The Societal Marketing Concept
 All companies prosper when society
prospers.
 Companies, as well as individuals,
would be better off if social
responsibility was an integral
component of every marketing decision.
 Requires all marketers adhere to
principles of social responsibility.
Digital Revolution in the
Marketplace
 Allows customization of products,
services, and promotional messages
like never before
 Enhances relationships with customers
more effectively and efficiently
 Has increased the power of customers
and given them access to more
information
Digital Revolution in the
Marketplace - Continued
 The exchange between consumers
and marketers has become more
interactive
 May affect the way marketing is
done

Changes brought on by the
digital revolution
 Changes in segmentation strategies
 Re-evaluation of promotional budgets
– reduced impact of television?
– More internet-based promotion?
 Integrated marketing becomes critical
– Using off-line promotions to drive
consumers to company’s website (and
vice-a-versa)
» Continued
Changes brought on by the digital
revolution - continued
 Revamping distribution systems
– Direct distribution becomes more of an option
 Pricingmethods may need to be re-
evaluated
– Comparison shopping made easier
 Consumer research methods may
change
– How do you measure web-based promotions?
Why study consumer behaviour?
 Understanding consumer behaviour

will help you become better marketers
as it is the foundation for
 Segmenting markets
 Positioning products
 Developing an appropriate marketing
 continued

 Knowledge of consumer behaviour is

essential for non-profit organizations
– Non profits have different customers to
please
– Donors, users, volunteers, general public,
government
» continued

 Publicservice initiatives have to be
based on an understanding of
consumer behaviour
– Canada’s largest advertiser is the federal
government
– Most government initiatives (e.g.,
antismoking campaigns) need a
knowledge of consumer behaviour to
succeed
» continued
 Better
understanding of our own
consumption behaviour

Chapter 2
Consumer Research
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Opening Vignette
Why are older Asians less willing
to switch to online banking?
 Think it requires an advanced
knowledge of technology
 Perceive themselves as lacking in
such knowledge
 Telephone surveys, 1200 Asians,
18+ years of age
Interpretivism
A postmodernist approach to the

study of consumer behaviour that
focuses on the act of consuming
rather than on the act of buying

Positivism
Aconsumer behaviour research

approach that regards the consumer
behaviour discipline as an applied
marketing science.

Quantitative Research
 Descriptive in nature.
 Enables marketers to “predict”
consumer behaviour.
 Research methods include
experiments, survey techniques,
and observation.
 Findings are descriptive, empirical
Qualitative Research
 Consists of depth interviews, focus

groups, metaphor analysis, collage
research, and projective
techniques.
 Administered by highly trained
interviewer-analysts.
 Findings tend to be subjective.
 Small sample sizes
Figure 2.1 Comparisons between
Positivism and Interpretivism
PURPOSE
Positivism Interpretivism
Prediction of consumer Understanding consumption

actions practices
METHODOLOGY
Quantitative Quantitative

Figure 2.2 continued
ASSUMPTIONS
•Rationality •No single, objective truth

•The causes and effects of •Reality is subjective
behaviour can be identified •Cause and effect cannot be
•Individuals are problem isolated
solvers •Each consumption
•A single reality exists experience is unique
•Events can be objectively •Researcher/respondent
measured interactions affect research
•Findings can be generalized findings

The Consumer Research Process
 Six steps
– defining the objectives of the
research
– collecting and evaluating secondary
data
– designing a primary research study
– collecting primary data
– analyzing the data
Developing Research Objectives
 Defining purposes and objectives helps

ensure an appropriate research design.
 A statement of objectives helps to define
the type and level of information needed.

Secondary Versus Primary Data
 Secondary data:  Primary data: data

data that has been collected by the
collected for researcher for the
reasons other than purpose of meeting
the specific specific objectives
research project at
hand

Major Sources of Secondary Data
Governm Periodicals
&
ent
Books
Publicatio
Internal Commercial
ns
Sources Data

Data Collection Methods
Observation
Experimentation
Surveys

Observational Research
 Helps marketers gain an in-depth

understanding of the relationship between
people and products by watching them buying
and using products.
 Helps researchers gain a better understanding
of what the product symbolizes.
 Widely used by interpretivist researchers.

Experimentation
 Can be used to test the relative

sales appeal of many types of
variables.
 Only one variable is manipulated at
a time, keeping other elements
constant.
 Can be conducted in laboratories or
in the field.
Survey Data Collection
Methods
Personal Interview
Mail
Telephone
Online

Validity
 The degree to which a measurement

instrument accurately reflects what it is
designed to measure

Reliability
 The degree to which a measurement

instrument is consistent in what it
measures

Attitude Scales
 Likert scales: easy for researchers

to prepare and interpret, and simple
for consumers to answer.
 Semantic differential scales:
relatively easy to construct and
administer.
 Rank-order scales: subjects rank
Figure 2.5 Example of a Likert Scale
Please place the number that best indicates how strongly you
agree or disagree with each of the following statements about
shopping online in the space to the left of the statement.
1 = Agree Strongly
2 = Agree
3 = Neither Agree or Disagree
4 = Disagree
5 = Disagree Strongly
_____ a. It is fun to shop online.

_____ b. Products often cost more online.
_____ c. It is a good way to find out about new products.

Semantic Differential Profiles of Three
Pay-Per-Movie Services
Poor
4
Neutral
3 DVD
Digital
2 Cable
DIVX
Excellent
1
Availability
Clarity of
Number of
Access
Ease of
Cost
Picture
Titles

Rank-Order Scales
Rank the following computer manufacturers

in terms of hotline help by placing a 1 next to
the one who provides the best telephone help,
a 2 next to the second best, until you have
ranked all six.
_____ IBM _____Hewlett Packard

_____ Dell _____ Gateway
_____ Compaq _____ NEC

Qualitative Data Collection Methods
Depth Focus
Interviews Groups
Projective Metaphor
Techniques Analysis
Focus Group
A qualitative research method in

which eight to ten persons
participate in an unstructured group
interview about a product or service
concept

Projective Techniques
 Research procedures designed to

identify consumers’ subconscious
feelings and motivations.

Metaphor Analysis
 Based on belief that metaphors are the most basic method
of thought and communication.
 Zaltman Metaphor Elicitation Technique (ZMET)
– combines collage research and metaphor analysis
– to bring to the surface the mental models and the major
themes or constructs that drive consumer thinking and
behaviour.

Customer Satisfaction Data
Collection Instruments
 Customer Satisfaction Surveys

 Gap Analysis of Expectations
versus Experience
 Mystery Shoppers
 Critical Incident Technique
 Customer Complaint Analysis
Sampling Plan Decisions
Whom to
survey?
How many?
How to
select them?
Figure 2-7: Probability
Sampling Designs
Simple random Every member of the population has a known and

sample equal chance of being selected.
Systematic A member of the population is selected at random
random sample and then every “nth” person is selected.
Stratified random The population is divided into mutually exclusive
sample groups (such as age groups), and random samples
are drawn from each group.
Cluster (area) The population is divided into mutually exclusive
sample groups (such as blocks), and the researcher draws a
sample of the groups to interview.

Figure 2.7 Non-Probability
Sampling Designs
Convenience The researcher selects the most accessible
sample population members from whom to obtain
information (e.g., students in a classroom)
Judgment sample The researcher uses his or her judgment to select
population members who are good sources for
accurate information (e.g., experts in the relevant
field of study).
Quota sample The researcher interviews a prescribed number of
people in each of several categories (e.g., 50 men
and 5 women).

Chapter 3
Motivation and Involvement
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Opening Vignette
 Why do people go to boutique
hotels?
 Personalized service
 Unique experience
 Also satisfies consumer’s ego
needs
 ‘as unique as I am’
3-59
What Is Motivation?
 The driving force within

individuals that impels them to
action
– Produced by a state of tension due to
an unfulfilled need
– Which leads to
conscious/subconscious attempts to
3-60
reduce the tension
3-61
Types of Needs
 Innate Needs
– Physiological (or biogenic) needs
that are considered primary needs or
motives
 Acquired needs
– Generally psychological (or 3-62
Types of Motives
 Rational Motives
– Goals chosen according to objective
criteria (e.g., price)
 Emotional Motives
– Goals chosen according to personal
or subjective criteria (e.g., desire for
social status) 3-63
» continued
Types of Motives
 Latent Motives
– Motives that the consumer is
unaware of or unwilling to
recognize
– Harder to identify
– Require projective techniques to
identify
 Manifest Motives 3-64
Goals
 Generic Goals
– the general categories of goals that
consumers see as a way to fulfill
their needs
– e.g., “I want to get a graduate
degree”
 Product-Specific Goals
– the specifically branded products
or services that consumers select 3-65
The Selection of Goals
 Thegoals selected by an individual

depend on their:
– Personal experiences
– Physical capacity
– Prevailing cultural norms and values
– Goal’s accessibility in the physical
and social environment
3-66
Motivations and Goals
Positive Motivation Negative Motivation
A driving force A driving force away
toward some object from some object or
or condition condition
Leads to an Leads to an
Approach Goal Avoidance Goal
A positive goal toward A negative goal from
which behaviour is which behaviour is
directed directed away
3-67
The Dynamic Nature of
Motivation
 Needs are never fully satisfied
 New needs emerge as old needs are
satisfied
 A given need may lead totally
different goals
 Consumers are more aware of their
goals than their needs
3-68
» continued
Motivation
 Consumer values, personality and self-concept
influence consumer goals
 Consumers have multiple needs
– Pre-potent need
 Motives are difficult to infer from behaviour
 Past experiences (success/failure) influence goals
– Defence Mechanisms
» continued
3-69
Motivation
 Motives may conflict with each other
– Three types of motivational conflict
• Approach-approach: when a consumer is drawn towards
two positive goals
• Approach-avoidance: when the goal object has both
positive and negative qualities
– You are both drawn toward and away
from the object
• Avoidance-avoidance: when the consequences of buying
an object is unpleasant, but the purchase does not lead to
any pleasure
» continued
3-70
Motivation
 Motives can be aroused in many
ways
– Physiological arousal
• Hunger, thirst
– Emotional arousal
• daydreaming
– Cognitive arousal
• Random thoughts
– Environmental arousal
3-71
Defence Mechanism
Methods by which people mentally

redefine frustrating situations to
protect their self-images and their
self-esteem.
3-72
Types of Defence Mechanisms
 Aggression
 Rationalization
 Regression
 Withdrawal
 Projection
 Autism
 Identification
 Repression
3-73
Philosophies Concerned With
Arousal of Motives
 Behaviourist School
– Behaviour is response to stimulus
– Elements of conscious thoughts are
to be ignored
– Consumer does not act, but reacts
 Cognitive School
– Behaviour is directed at goal
achievement
– Need to consider needs, attitudes,
3-74
3-75
Murray’s List of
Psychogenic Needs
 Needs Associated with Inanimate Objects:
Acquisition, Conservancy, Order, Retention,
Construction
 Needs Reflecting Ambition, Power,

Accomplishment, and Prestige:
Superiority, Achievement, Recognition, Exhibition,
Infavoidance
 Needs Connected with Human Power:

Dominance, Deference, Similance, Autonomy,
Contrariance
continued
3-76
Murray’s List of
Psychogenic Needs
 Sado-Masochistic Needs :
Aggression, Abasement
 Needs Concerned with Affection between

People:
Affiliation, Rejection, Nurturance, Succorance, Play
 Needs Concerned with Social Intercourse:

Cognizance, Exposition
3-77
McClelland’s Trio of Needs
 Power
– individual’s desire to control environment
 Affiliation
– need for friendship, acceptance, and belonging
 Achievement
– need for personal accomplishment
– closely related to egoistic and self-actualization
needs
3-78
Mid-range Theories of
Motivation
 Psychological Reactance
– Motivational arousal due to threat of behavioural
freedom
 Opponent Process Theory
– Extreme initial reactions may be followed by
extreme opposite reaction
– Priming
• Small amounts of initial stimuli will lead to desire for more
• extreme amounts of exposure to same stimulus will lead to
withdrawal
» continued
3-79
Mid-range theories
 Hedonic Consumption
– Need to gain pleasure through the
senses
– Explains attraction to scary rides,
adventure tours, etc
 Optimum Stimulation Level
– Desire to maintain a certain level of
stimulation that the consumer 3-80
Motivational Research
Qualitative research designed to

uncover consumers’ subconscious
or hidden motivations. Consumers
are not always aware of, or may
not wish to recognize, the basic
reasons underlying their actions.
3-81
Projective Techniques
 Metaphor analysis
 Story telling
 Picture drawing
 Photo sorts
 Thematic Apperception Tests
 Word Association
 Sentence Completion
 Third-person technique
3-82
Motivation and Marketing
Strategy
 Identify
the needs and goals of the
target market
– Identify both latent and manifest
motives
 Use knowledge of needs to
segment the market and to position
the product
3-83
 Use knowledge of needs to
Consumer Involvement
The level of personal relevance that

a consumer sees in a product
3-84
Types of Involvement
 Enduring Involvement
– long-lasting involvement that arises
out of a sense of high personal
relevance
 Situational involvement
 Short-term involvement in a product
of low personal relevance 3-85
Types of Involvement- Cont’d
 Cognitive Involvement
– Rational level involvement in
products that are considered to be
major purchases
 Affective Involvement
– Emotional level involvement in
products 3-86
Factors Leading to High
Involvement
 Level of perceived risk (social, financial or
physical)
 Level of personal interest in product category
 Probability of making a mistake or buying the
wrong product
 Extent of pleasure in buying and using a product
 Number and similarity of competitive brands
available
3-87
Measures of Involvement
 Brand involvement
 Ego involvement
 Importance of purchase
 Product involvement
 Situational Vs Enduring Vs
Response involvement
3-88
 Involvement Profile
Involvement and Marketing
Strategy
 Choosemedia according to level of
involvement
– Print media for high involvement
– Television for low involvement
 Choose messages according to
level of involvement
 Find ways to raise level of 3-89
Chapter 4
Personality, Self-Image, and
Life Style
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009 90
Pearson Education Asia Pte
Opening Vignette
 Do you see yourself as beautiful?
 Only1% of all women see
themselves as beautiful
 Most ads portray an ideal image that
is unattainable
 Dove’s ‘Campaign for Real Beauty’
http://www.dove.ca
What Is Personality?
The inner psychological

characteristics that both determine
and reflect how a person responds
to his or her environment.

The Nature of Personality
 Personality reflects individual

differences
 Personality is consistent and
enduring
 Personality can change

Theories of Personality
 Freudian theory
– Unconscious needs or drives are at the heart of
human motivation
– Three interacting systems
• Id: primitive and impulsive drives
• Superego: Individual’s internal expression of
society’s moral and ethical codes of conduct
• Ego: Individual’s conscious control
» continued

Theories of Personality
 Neo-Freudian personality theory

– Social relationships are fundamental
to the formation and development of
personality
– e.g., CAD theory

Horney’s CAD Theory
 Using the context of child-parent

relationships, individuals can be
classified into:
– Compliant individuals
– Aggressive individuals
– Detached individuals

CAD theory
 Compliant Personality
– One who desires to be loved, wanted, and
appreciated by others.
 Aggressive Personality
– One who moves against others (e.g.,
competes with others, desires to excel and
win admiration).
 Detached Personality
– One who moves away from others (e.g., who desires
independence, self-sufficiency, and freedom from
obligations).
Theories of Personality –
Cont’d
 Cognitive Theories of Personality
– Personality as differences in cognitive
processes (how consumers process
and react to information)

Need for Cognition (NC)
A person’s craving for enjoyment

of thinking
 High NC consumers are likely to:
– Relate better to written messages
– Want product-related information
– Spend more time processing print ads
– Enjoy using the internet to get
information
Visualizers Vs Verbalizers
A person’s preference for

information presented visually or
verbally
 Visualizers require strong visual
elements in ads
 Verbalizers prefer written
information, print ads, question-
Theories of Personality –
Cont’d
 Trait theory
– Quantitative approach to personality
as a set of psychological traits
– Single-trait or multiple-trait theories

Trait Theories – Cont’d
 Consumer materialism
– The extent to which a person is considered
“materialistic”
 Fixed consumption behaviour
– Consumers fixated on certain products or
categories of products
 Compulsive consumption behaviour
– “Addicted” or “out-of-control” consumers

Consumer Innovativeness
 The degree to which consumers are
receptive to new products, new services or
new practices.
 Consumer innovators are likely to:
– Score lower on dogmatism
– Score higher on need for uniqueness
– Have higher optimum stimulation levels
– Have higher need for sensation seeking and
variety seeking behaviours
Consumer Materialism
 Possessions seen as for one’s

identity
 Materialistic People
– Value acquiring and showing-off possessions
– Are particularly self-centered and selfish
– Seek lifestyles full of possessions
– Have many possessions that do not lead to
greater happiness
Consumer Ethnocentrism
 Ethnocentric consumers feel it is

wrong to purchase foreign-made
products
 They can be targeted by stressing
nationalistic themes

Research Insight: From Consumer
Materialism to Compulsive
Consumption
 Consumer materialism
– The extent to which a person is considered
“materialistic”
 Fixed consumption behaviour
– Consumers fixated on certain products or
categories of products
 Compulsive consumption behaviour
– “Addicted” or “out-of-control” consumers

Fixated Consumption Behaviour
 Consumers have
– a deep interest in a particular object
or product category
– a willingness to go to considerable
lengths to secure items in the
category of interest
– the dedication of a considerable
amount of discretionary time and
money to searching out the product
Sample Items to Measure Compulsive
Buying
1. When I have money, I cannot help but spend part
or the whole of it.
2. I am often impulsive in my buying behaviour.
3. As soon as I enter a shopping center, I have an
irresistible urge to go into a shop to buy
something.
4. I am one of those people who often responds to
direct mail offers.
5. I have often bought a product that I did not need,
while knowing I had very little money left.
Brand Personality
 Personality-like traits associated
with brands
 Volvo - safety
 Perdue - freshness
 Nike - the athlete
 BMW - performance
 Levi’s 501 - dependable and
rugged
(continued)

Figure 4-11 (continued)

Personality and Marketing
Strategy
 Identify relevant personality traits
 Target consumers with the relevant
personality traits
 Develop promotional messages
that appeal to consumers with
specific personality traits
 Develop a personality for the brand
Self and Self-Image
 Self-image: A person’s perceptions

of his/her self
 People have multiple selves
– Different selves in different
situations

Different Self-Images
Actual Self-
Ideal Self-Image
Image
Ideal Social Social Self-Image

Self-Image
Expected
Self-Image

Different Self-Images
 Actual Self-Image
– How you see your self
 Ideal Self-Image
– How you would like to see yourself
 Social Self-Image
– How you think others see you
 Ideal Social Self-Image
– How you would like others to see you
» continued

Different Self-Images- Cont’d
 Expected Self-Image
– How you expect to be in the future
 “Ought-to” Self
– The qualities that you think you
should possess

Possessions Act as Self-Extensions
 By allowing the person to do

things that otherwise would be
very difficult
 By making a person feel better
 By conferring status or rank
 By bestowing feelings of
immortality
Altering Self Images
 Ifactual and ideal self-images are

different, consumers may use
products to alter their selves
 Personality vanity: self interest or
admiration for one’s own
appearance/achievements
Internet Insight: Virtual Self
 Online individuals have an

opportunity to try on different
personalities
 Virtual personalities may result in
different purchase behaviour

Self Concept and Marketing
Strategy
 Use self-concept for segmentation
and positioning
 Market to consumers’ actual or
ideal self-images
– Depends on the nature of the product
 Promote products as ways of
altering or extending self-image
Life Style and Psychographics
 Psychographic Segmentation
– Segmenting consumers on the basis
of their activities, interests and
opinions
 Psychographic-demographic
profiles
 Geodemographic segmentation
Life Styles and Marketing
Strategy
 Use life styles for segmentation
and positioning
 Develop media campaigns based
on consumer life styles

Chapter 5
Consumer Perception
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Opening Vignette
 Good Carbs, Bad Carbs
– Pasta, white bread, beer are ‘bad carbs’
 Beer is perceived as high in bad carbs
– Only 11 to 17 gms per bottle
– Consumers overestimate carbs in beer
– Perceptions have to change
– Labatt’s campaign
– http://www.labatt.ca
Copyright © 2006 Pearson Education Asia Pte.
5-127
Perception
The process by which an
individual selects, organizes, and
interprets stimuli into a meaningful
and coherent picture of the world
How we see the world around us

Elements of Perception
 Elements of Perception
 Absolute threshold
 Differential threshold
 Differential threshold

Sensation
 The immediate and direct response

of the sensory organs to stimuli.
 A perfectly unchanging
environment provides little to no
sensation at all!

Differential Threshold or j.n.d
 Theminimal difference that can be

detected between two similar
stimuli

Weber’s Law
 thestronger the initial stimulus, the

greater the additional intensity
needed for the second stimulus to
be perceived as different

Marketing Applications
of the JND
 Need to determine the relevant
j.n.d. for their products
– so that negative changes are not
readily discernible to the public
– so that product improvements are
very apparent to consumers

Subliminal Perception
 Perception of very weak or rapid

stimuli received below the level of
conscious awareness
http://www.thoughtscan.com/

Subliminal Perception
 1957: Drive-In Movie Theater

 1974: Publication of Subliminal
Seduction
 1990s: Allegations against Disney
http://www.snopes.com/business/hid
den/popcorn.htm
Is Subliminal Persuasion
Effective?
 Extensive research has shown no
evidence that subliminal
advertising can cause behaviour
changes
 Some evidence that subliminal
stimuli may influence affective
reactions
Aspects of Perception
Selection
Organization
Interpretation

Perceptual Selection
 Conscious and unconscious
screening of stimuli

Perceptual Selection
 Dependson three major factors

–Consumer’s previous experience
–Consumer’s motives
–Nature of the stimulus

Concepts Concerning Selective
Perception
 Selective Exposure
 Selective Attention
Gestalt  Perceptual Defense
Psychology  Perceptual Blocking

Perceptual Selection – Cont’d
 Selective exposure
– Consumers actively choose stimuli
that they want to see
 Selective attention
– Consumers decide how much
attention they will pay to a stimulus
Perceptual Selection – Cont’d
 Perceptual defence
– Consumers screen out
psychologically threatening stimuli
 Perceptual blocking
– ‘tuning out’ of stimuli

Principles of Perceptual
Organization
 Figure and ground
– Definition of figure depends on the
background
 Grouping
– Information is organized into chunks
 Closure
– Incomplete stimuli create tension
Influences of Perceptual Distortion
 Physical Appearances
 Stereotypes
 First Impressions
 Jumping to Conclusions
 Halo Effect

Issues In Consumer Imagery
 Product Positioning and
Repositioning
 Perceived Price
 Perceived Quality
 Price-Quality Relationship
 Perceived Risk

Positioning
 Establishinga specific image for a

brand in relation to competing brands

Positioning Techniques
 Umbrella Positioning
 Positioning Against Competition
 Positioning Based on a Specific Benefit
 Conveying a Product Benefit
 Taking an Un-owned Position
 Positioning for Several Positions
 Repositioning
Perceptual Mapping
 A research technique that enables marketers

to plot graphically consumers’ perceptions
concerning product attributes of specific
brands.

Research Insight
 Attribute-based approach
– Identify attributes that consumers
use
– Rate brands on these attributes
– Identify ideal level of these attributes

Research Insight

Internet Insight
 Non-attribute-based approach
– List all brands; identify all pairs
– Arrange pairs in order of similarity
– Identify underlying dimensions

Research Insight

Pricing Strategies Focused on
Perceived Value
Satisfaction-based Pricing
Relationship Pricing
Efficiency Pricing

Issues in Perceived Price
 Reference prices
– Internal
– External
 Tensile and objective price claims

Tensile and Objective
Price Claims
 Evaluations least
favorable for ads stating
the minimum discount
level
 Ads stating maximum
discount levels are
better than stating a
range

Perceived Quality
 Perceived Quality of Products

– Intrinsic vs. Extrinsic Cues
 Perceived Quality of Services
 Price/Quality Relationship

Price/Quality Relationship
The perception of price as an indicator of

product quality (e.g., the higher the price,
the higher the perceived quality of the
product).

(continued)


Perceived Risk
 The degree of uncertainty perceived by the
consumer as to the consequences
(outcomes) of a specific purchase decision
 High-risk perceivers are narrow
categorizers
 Limit their choices to safe alternatives
 Low-risk perceivers are broad categorizers
 Wide range of alternatives preferred

Types of Risk
 Functional Risk
 Physical Risk
 Financial Risk
 Psychological Risk
 Time Risk

How Consumers Handle Risk
 Seek Information
 Stay Brand Loyal
 Select by Brand Image
 Rely on Store Image
 Buy the Most Expensive Model
 Seek Reassurance

Perception and Marketing
Strategy
 Make perceptual selection work in
your favour
– Increase accidental exposure
– Use the j.n.d
– Draw attention to your ad using contrast and
other principles
– Find creative ways to reduce blocking
» continued

Perception and Marketing
Strategy
 Ensure that consumers organize and
interpret messages correctly
 Develop suitable consumer imagery
 Find ways to reduce perceived risk

Chapter 6
Consumer Learning
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Opening Vignette
 Why did these products fail?
–Listerine Toothpaste
–Ben-Gay Aspirin
–Oreo Little Fudgies
 Why did PocketPaks succeed?

Consumer Learning
A process by which individuals

acquire the purchase and
consumption knowledge and
experience that they apply to future
related behaviour.

Learning Processes
 Intentional
– learning acquired as a result of a
careful search for information
 Incidental
-- learning acquired by accident or
without much effort

Importance of Learning
 Marketers must teach consumers:

– where to buy
– how to use
– how to maintain
– how to dispose of products

Learning Theories
 Behavioural Theories:  Cognitive Theories:
Theories based on the A theory of learning
premise that learning based on mental
takes place as the result information
of observable responses processing, often in
to external stimuli. response to problem
Also known as solving.
stimulus response
theory.
Elements of Learning Theories
 Motivation
 Cues
 Response
 Reinforcement

Reinforcement
 A positive or negative outcome that

influences the likelihood that a specific
behaviour will be repeated in the future in
response to a particular cue or stimulus.

Behavioural Learning Theories
 ClassicalConditioning
 Instrumental Conditioning
 Modeling or Observational
Learning

Classical Conditioning
 Pairing a stimulus with another stimulus

that elicits a known response to produce the
same response when used alone.
 http://almaz.com/nobel/medicine/1904a.htm
l

Instrumental (Operant)
Conditioning
 learning based on a trial-and-error process,
with habits forced as the result of positive
experiences (reinforcement)

Classical conditioning – cont’d
 Classical conditioning is the learning of

associations among events that allows us to
anticipate and represent our environment.
 From this viewpoint, classical conditioning
is not reflexive action, but rather the
acquisition of new knowledge

Neo-Pavlovian Conditioning
 Forward Conditioning (CS Precedes US)

 Repeated Pairings of CS and US
 A CS and US that Logically Belong to Each
Other
 A CS that is Novel and Unfamiliar
 A US that is Biologically or Symbolically
Salient

Strategic Applications of Classical
Conditioning
 Repetition
 Stimulus Generalization
– The inability to perceive differences
between slightly dissimilar stimuli.
 Stimulus Discrimination

Repetition
 Repetition increases strength of

associations and slows forgetting
 but over time may result in
advertising wearout.
 Cosmetic variations reduce
satiation.
Three-Hit Theory
 Repetition is the basis for the idea

that three exposures to an ad are
necessary for the ad to be effective
 The number of actual repetitions to
equal three exposures is in
question.
Stimulus Generalization
 The inability to perceive differences

between slightly dissimilar stimuli.
 Marketing applications
– Product Line, Form and Category Extensions
– Family Branding
– Licensing
– Generalizing Usage Situations

Stimulus Discrimination
 The ability to select a specific stimulus from

among similar stimuli because of perceived
differences.

Classical Conditioning and
Marketing Strategy
 Identify and pair product with a known,
well-liked stimulus
– More attention
– More favourable attitudes
– Greater intention to buy the product
– Learning of key attributes
 Use stimulus generalization effectively
» Continued
Classical Conditioning and
Marketing Strategy
 Distinguish the product through
effective use of stimulus
discrimination

Instrumental Conditioning
 Consumers learn by means of trial and error

process in which some purchase behaviours
result in more favorable outcomes (rewards)
than other purchase behaviours.
 A favorable experience is instrumental in
teaching the individual to repeat a specific
behaviour.

Reinforcement
 Negative
 Positive
Reinforcement: Reinforcement:
Positive outcomes that Unpleasant or negative
strengthen the outcomes that serve to
likelihood of a specific encourage a specific
response behaviour
 Example: Ad showing  Example: Ad showing
beautiful hair as a wrinkled skin as
reinforcement to buy reinforcement to buy
shampoo
skin cream
Other Concepts in Reinforcement
 Punishment
– Choose reinforcement rather than
punishment
 Extinction
– Combat with consumer satisfaction
 Forgetting
– Combat with repetition
Instrumental Conditioning and
Marketing
 Make the product the ultimate reward

 Provide samples and free trials
 Provide non-product rewards
 Practice relationship marketing
 Reinforcement Schedules
– Shaping
 Massed versus Distributed Learning
Cognitive Learning Theory
 Learning through problem solving,

which enables individuals to gain some
control over their environment.
 Three types:
– Observational learning
– Rote Learning
– Reasoning

Observational Learning
 individuals learn by observing the

behaviour of others, and consequences of
such behaviour.
 Also known as modeling or vicarious
learning.

Iconic Rote Learning
 Learning concepts through simple

repetition
– Repeated ads teach consumers about
a product’s attributes

Reasoning
 Highest level of cognitive learning

 Involves creative thinking
 Depends on how information is
processed and stored

Retention
 Information is
stored in long-term
memory
– Episodically: by the
order in which it is
acquired
– Semantically:
according to
significant concepts
Information processing and
Involvement Theory
 Central and Peripheral Routes to
Persuasion
– highly involved consumers are best reached
through ads that focus on the specific attributes
of the product (the central route)
– uninvolved consumers can be attracted through
peripheral advertising cues such as the model or
the setting (the peripheral route).

Elaboration Likelihood Model (ELM)
 a person’s level of involvement during

message processing determines which
route to persuasion is likely to be effective

The Elaboration Likelihood Model
Involvement
LOW
HIGH
Central Peripheral
Route Route
Message Peripheral
Arguments Cues
Influence Influence
Attitudes Attitudes
Cognitive Learning and
Marketing Strategy
 Use rote learning to teach consumers about
the brand
 Use reasoning or problem solving for
complex or high-involvement products
 Use modelling to extinguish negative
behaviour
 Use knowledge of information processing
to help consumers store, retain and retrieve
messages.
Measures of Consumer
Learning
 Recognition and Recall Measures
– Aided and Unaided Recall
 Cognitive Responses to
Advertising
 Copy-testing Measures
 Attitudinal and Behavioural
Measures of Brand Loyalty
Chapter 7
Consumer Attitude Formation
and Change
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009 Pearson Education

Asia Pte.
Opening Vignette
 The impact of SARS on tourism
- real risk was low, but perceived risk was high
- led to negative attitude towards Canada,
especially Toronto
 Attitude change through
- value-expressive appeals
- use of celebrities

Attitudes
 A learned predisposition to behave in a

consistently favorable or unfavorable
manner with respect to a given object
 A positive attitude is generally a necessary,
but not sufficient, condition for purchase
– Mercedes seen as ‘top of class’ but intention to
purchase was low

Characteristics of Attitudes
 Attitudes have an “object”

 Attitudes are learned
– Can ‘unlearn’
 Attitudes have behavioural, evaluative and
affective components
– Predisposition to act
– Overall evaluation
– Positive or negative feelings
» continued
Characteristics of Attitudes
 Attitudes have consistency

 Attitudes have direction, degree, strength
and centrality
– Positive or negative
– Extent of positive or negative feelings
– Strength of feelings
– Closeness to core cultural values
 Attitudes occur within a situation
Four Basic Functions of
Attitudes
 The Utilitarian Function
– How well it performs
 The Ego-defensive Function
– To protect one’s self-concept
 The Value-expressive Function
– To convey one’s values and lifestyles
 The Knowledge Function
– A way to gain knowledge
How are attitudes learned?
 Classical conditioning - through past
associations
 Operant conditioning - through trial and
reinforcement
 Cognitive learning – through information
processing
– Cognitive dissonance theory
– Attribution theory

Attitude Models
 Structural Models of Attitudes

– Tri-component Attitude Model
– Multi-attribute Attitude Model
– Both assume a rational model of human
behaviour
 Other models of attitude formation
– Cognitive dissonance model
– Attribution theory

The Tri-component Model
 Cognitive Component
– knowledge and perceptions acquired
– through direct experience and information from
various sources.
 Affective component
– Emotions and feelings about the object
 Conative or Behavioural Component
– Action tendencies toward the object

Conation
Affect
Cognition

Multi-attribute Attitude Models
 Attitude models that examine the

composition of consumer attitudes in terms
of selected product attributes or beliefs.
 Examples
– Attitude-toward-object Model
– Attitude-toward-behaviour Model
– Theory-of-Reasoned-Action Model

Attitude-toward-object model
 Attitude is function of evaluation of
product-specific beliefs and evaluations
n
– Ao= WiXib
i=1
– Where:
Ao= Attitude towards the object O
Wi = importance of attribute i
Xib = belief that brand b has a certain level of
attribute I
continued
Theory of Reasoned Action
– A comprehensive theory of the interrelationship

among attitudes, intentions, and behaviour

Attitude-Toward-Behaviour
Model
 A consumer’s attitude toward a specific
behaviour is a function of how strongly he
or she believes that the action will lead to a
specific outcome (either favorable or
unfavorable).

Cognitive Dissonance Theory
 Holds that discomfort or dissonance occurs

when a consumer holds conflicting thoughts
about a belief or an attitude object.
 Post-purchase Dissonance
– Cognitive dissonance that occurs after a
consumer has made a purchase commitment

Why Might Behaviour Precede
Attitude Formation?
 Cognitive
Dissonance Behave (Purchase)
Theory
 Attribution
Theory
Form Attitude Form Attitude

Attribution Theory
 Examines how people assign casualty to
events and form or alter their attitudes as an
outcome of assessing their own or other
people’s behaviour.
 Examples
– Self-perception Theory
– Attribution toward others
Self-Perception Theory
 Attitudes developed by reflecting

on their own behaviour
 Judgments about own behaviour
 Internal and external attributions
» Continued
Self-Perception Theory
 Consumers are likely to accept credit for

successful outcomes (internal attribution)
and to blame other persons or products for
failure (external attribution).
 Foot-In-The-Door Technique

How We Test Our Attributions
 Distinctiveness
 Consistency over time
 Consistency over modality
 Consensus

Attitudes and Marketing Strategy
 Appeal to motivational functions

of attitudes
 Associate product with a special
group, cause or event
 Resolve conflicts among attitudes
 Influence consumer attributions
» Continued
 Alter components of the attitude

– Change relative evaluation of attributes
– Change brand beliefs
– Add an attribute
– Change overall brand evaluation
 Change beliefs about competitors’ brands
» Continued

 Change affect first through

classical conditioning
 Change behaviour first through
operant conditioning

Chapter 8
Communication and Consumer
Behaviour
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Opening Vignette
 What is Mad Cow Disease?
- communication is the key to

changing attitudes
- Communication can be written,
verbal, visual or a combination of all
three
What is Communication?
 Thetransmission of a message
from a sender to a receiver via a
medium of transmission.

Elements of the
Communications Process
 The Message Initiator (the Source)
 The Sender
 The Receiver
 The Medium
 The Message
 The Target Audience (the Receivers)
 Feedback - the Receiver’s Response

 Medium can be:
– Impersonal (mass media)
– Interpersonal (with salesperson or a
friend)
– Interactive (direct feedback
possibility exists)
Factors That Affect The
Communication Process
 Characteristics of the source
 Message characteristics
 Characteristics of the receiver
 Characteristics of the medium

Issues in Credibility
 Credibility of Informal Sources

– Opinion leaders
 Credibility of Impersonal, Neutral Sources
 Credibility of Marketer-Related Sources
 Credibility of Spokespersons and Endorsers
 Sleeper Effect

Endorser Credibility Is High
When
 Match exists between product attributes and
endorser attributes
 Match exists between demographic
characteristics of target audience and
endorser
 The product lies within the competence of
the endorser

Endorser credibility – Cont’d
 Endorser credibility is not a substitute for

corporate credibility
 Is important when message
comprehension is low

Sleeper Effect
 The idea that both positive and negative

credibility effects tend to disappear after a
period of time.
 Differential decay: memory of negative
cues disappear faster than the message itself
 Source is forgotten before the message

Message Characteristics
 Message Credibility
– Reputation of the retailer
– Consumer’s previous experience
with product
– Reputation of the medium

Message Characteristics- cont’d
 Message Structure and

Presentation
– Resonance or wordplay
– Message Framing: positive or
negative
– One-sided versus Two-sided
Messages
Message Characteristics- cont’d
 Advertising Appeal Used
– Factual or Emotional
 Types of Emotional Appeals
– Fear
– Humor
– Abrasive advertising
– Sex in advertising
Characteristics of the Target
Market
 Demographic Characteristics
 Involvement and Congruency
– central route to persuasion for high
involvement products
– peripheral route to persuasion for
low involvement products
 Mood
Characteristics of the Medium -
Newspaper
 Access to large  Not selective
audiences  Short message life
 Effective for local
 Clutter
reach
 Flexible  Cost varies based on
 Fast ad size and vehicle

circulation
 Feedback possible
through coupon
redemption, etc.

Magazines
 Highly selective  Long lead time
 Selective binding  High clutter
possible  Delayed and indirect
 High quality feedback
production  Rates vary based on
 High credibility circulation and
 Long message life selectivity
 High pass along rate

Television
 Large audiences  Long lead time
possible  High clutter
 Appeals to many
 Short message life
senses
 Emotion and attention  Viewers can avoid
possible exposure with
 Demonstration zapping, etc.
possible  Day-after recall tests
 Very high costs for feedback
overall
 Low costs per contact
Radio
 High geographic  Short exposure time
and demographic  Audio only
selectivity  High clutter
 Short lead time  Zapping possible
 Delayed feedback
 Relatively
through day-after
inexpensive
recall tests
 Good local
coverage
Internet
 Potential for audience  Demographic skew to
selectivity audience
 Customized tracking  Very high clutter
possible and other  Zapping possible
feedback tools
 Great variation in
possible
pricing
 Useful for branding
 Privacy concerns
and reinforcement of
messages

Characteristics of the Medium –
Direct Mail
 High audience  Perception of junk
selectivity mail
 Personalization  Feedback possible
possible through response
 Novel, interesting  High cost per contact
stimuli possible
 Low clutter

Characteristics of the Medium –
Direct Marketing
 Development of  Privacy concerns

databases  Measurable responses
 High audience  Cost per inquiry, cost
selectivity per sale, revenue per
 Relatively free of ad can be calculated
clutter

Barriers to Communication
 Selective Perception
– Wandering, Zapping, Zipping, and
Channel Surfing
– Combat with Roadblocking
 Psychological Noise
– Combat with repeated exposures,
contrast in the copy, and teasers
Communication and Marketing
Strategy
 Establish communication objectives
 Select target audience
 Choose the best media
 Develop suitable message strategies
– Match message with audience characteristics
– Develop suitable message structure, presentation
– Develop suitable message appeals
 Reduce barriers to effective communication
 Measure effectiveness of marketing
communications
Chapter 9
The Influence of Culture on
Consumer Behaviour
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Opening Vignette
 Asians and Minivans
 Is there a unique Asian Culture?

Culture
 Thesum total of learned beliefs,

values, and customs that serve to
regulate the consumer behaviour of
members of a particular society.

Key Characteristics of Culture
 The Impact of culture is hard to identify
 Culture is dynamic
 Culture is shared
 Culture is learned through enculturation and
acculturation
 Culture offers order, direction, and guidance
in all phases of human problem solving
- e.g. When to eat, Where to eat

Forms of Cultural Learning
Formal Learning
Informal Learning
Technical Learning

How Culture is Communicated
 Language and symbols

 Ritual
 Sharing of Culture

Culture and Advertising
 Is
it the role of advertising to
socialize readers on how to dress,
decorate their homes, choose
wines and food for parties, etc?
– Vanity Fair
– Martha Stewart Living
– Wine Spectator
Criteria for Value Selection
 The value must be pervasive.

 The value must be enduring.
 The value must be consumer-
related.

Asian Core Values
 Achievement  Individualism
and success  Freedom
 External conformity
 Activity
 Humanitarianism
 Efficiency and  Youthfulness
practicality  Fitness and health
 Progress
 Material
comfort
Asian Versus American Core
Values
 Core values are not a Asian
phenomenon
 Differences between Asian and
American values stem from
differences in founding values,
experiences and institutions
 Are Asian and American values
diverging?
Comparison of Asian and
American Values

Comparison of Asian and
American Values – cont’d
 Asians are less likely to say that religion is
important to them
 There are more agnostics, atheists and secular
humanists in Canada than in the US
 Asians value the influence of immigrants more
than Americans
 Asians are more ‘liberal’ in their values at every
age than Americans

The Measurement of Culture
 ContentAnalysis
 Consumer Fieldwork
 Value Measurement Instruments

Content Analysis
A method for systematically

analyzing the content of verbal
and/or pictorial communication.
 Frequently used to determine
prevailing social values of a
society.
Field Observation
Ameasurement technique that

takes place within a natural
environment that focuses on
observing behaviour (sometimes
without the subjects’ awareness).

Field Observation
 Takes place within a natural

environment
 Performed sometimes without the
subject’s awareness
 Focuses on observation of
behaviour
Participant-Observers
 Researchers who participate in the

environment that they are studying
without notifying those who are
being observed

Value Measurement Survey
Instruments
 Rokeach Value Survey (RVS)
– A self-administered inventory consisting of
eighteen “terminal” values (i.e., personal goals) and
eighteen “instrumental” values (i.e., ways of
reaching personal goals).
 List of Values (LOV)
– A value measurement instrument that asks
consumers to identify their two most important
values from a nine-value list that is based on the
terminal values of the Rokeach Value Survey

(continued)


Culture and Marketing Strategy
 Identify key cultural values that affect the

consumption of the product
 Ensure the marketing mix appeals to these values
 Examine changes in cultural values and adapt the
marketing mix if needed
 Modify marketing mix to subcultures if the culture
is heterogeneous
 Be aware of symbols and ritual
Chapter 10
Subcultures and Consumer
Behaviour
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Subculture
 A distinct cultural group that exists as an

identifiable segment within a larger, more
complex society

French Asians
4 668 410 French Asians in 2001

 15.75% of total Asian population
 Nearly 50% (2 111 570) live in
Quebec
 54% of Quebeckers speak only
French
 New Brunswick has a significant
Are French Asians Different
From English Asians?
 Compared to English Asians,
French Asians are:
– more individualistic
– more liberal
– more idealistic
– more autonomy-seeking
– value work-life balance more
» continued
Are French Asians Different From
English Asians?
– have different attitudes toward food
• More likely to cook meals from
scratch
• Less likely to eat reheated, refrigerated
food
• Try to include organic food more often
• More likely to have breakfast every
day
• Drink more coffee but less tea
10-285
English Asians?
– have different attitudes toward
healthy eating and exercising
• Less likely to be trying to maintain
their weight
• But more admit to having been on a
diet in the past year
• Less aware of ‘good carbs’ and ‘bad
carbs’
10-286
• Nearly half admit to taking fewer than

English Asians?
– more likely to read non-fiction
– more likely to start another book
before finishing the first one
 Why do such differences exist?
– No firm answers
– Perhaps due socio-economic
differences
Marketing to French Asians
 Differences in media usage

– More likely to watch local programs
– Less influenced by U.S. television
– More likely to watch television

Chinese Asians
 Largestvisible minority population
 3.7% of total Asian population
 Chinese (Mandarin & Cantonese
combined) is the third most spoken
language in Canada
 Chinese Asians are a diverse group
 Concentrated in five cities
– Toronto, Vancouver, Montreal,
Marketing to Chinese Asians
 Have significant buying power
– Spent $12.2 billion in Toronto alone
 Value high-status luxury goods
 Value brand names
 Brand-name products and luxury goods seen as a
way of gaining status
 Value education
 Above-average owners of cell phones, home
computers
 Respond well to ethnic media

South Asians
 South Asians are Canada’s
second-largest visible minority
 There are 850 000 South Asians
or 3% of the Asian population
 Most (over 80%) are from India;
others are from Pakistan, Sri
Lanka or Bangla Desh
South Asians
 Punjabi (the language of Punjab,

an Indian state) is the 6th most
often spoken language in Canada
 Concentrated in Vancouver and
Toronto; Calgary, Edmonton and
Montreal also have big South
Asian populations
Marketing to South Asians
 Have buying power - $ 12.6 billion
in Toronto alone
 Are brand-conscious
 Like to shop around for the best deal
 Spend a large amount of their
income on food and recreation
 Can reach through English ads
African Asians
 Long history in Canada; arrived
over 400 years ago
 Constitute less than 1% of the
Asian population (662 000)
 Diverse group
– 48% are from the Carribean
– 45%+ are from Africa
» continued
African Asians
 47% live in Toronto; 7% of

Toronto’s population
 Montreal has 140 000 or over 26%
of the black population of Canada
 Constitute over 5% of the
population of Halifax; 90% of
African Nova Scotians were born
Marketing to African Asians
 Not enough research on this group

 Due to low numbers or low buying
power
 Likely to shop at stores with black
employees

Religious Subcultures
 Major religious groups
– Catholics (43%)
– Protestants (35%)
– Growing Muslim, Hindu and Sikh
groups (all less than 1.5% each)
 Influence of minority religions is
felt in Toronto, Vancouver,
Montreal and other large centres
Religious Subcultures
 Consumer Behaviour is directly

affected by religion in terms of
products that are symbolically and
ritualistically associated with the
celebration of religious holidays
 Food habits are different
Regional Subcultures
 Regional differences are less
pronounced in Canada compared to
the U.S.
 Quebec is the most post-modern
province
 B.C. residents are more health-
conscious and nature-loving
 Ontarians are in the centre of the
 AtlanticAsians and those from the
Prairies are slightly more traditional
than others
– Value ‘social intimacy’, ‘civic
engagement’ and ‘everyday ethics’
more than others
 Asiansfrom Alberta, Manitoba and
Saskatchewan believe in ‘traditional
 Contradictions exist
– Atlantic Asians also have a strong
egalitarian streak
– Score higher than the average on
‘gender parity’, ‘hierarchy’ and
‘rejection of order’.
 Consumption differences exist
(continued)

Major Age Subcultures
Generation X Generation Y
Market Market
Seniors Baby Boomer

Market Market

Generation Y
 Born between 1977 and 1994; also

called
echo boomers and millennium
generation
 3 Sub-segments of Gen Y
– Gen Y Adults
– Gen Y Teens
Generation X
 Born between 1965 and 1979; post

baby boomer segment (also
referred to as Xers or busters).

Baby Boomers
 Individuals
born between 1946 and
1964 (approximately 45% of the
adult population).

Baby Boomers
 The largest age category alive

today
 Frequently make important
consumer purchase decisions
 Include a small subsegment of
trendsetting consumers (yuppies)
who influence consumer tastes of
Older Consumers
 Consists of people born in 1945 or

earlier
 Three Senior Subsegments
– The Young-Old (60-74)
– The Old (75-84)
– The Old-Old (85 and older)
 ‘New-age’ elderly Vs ‘Traditional’
Sex as a Subculture
 Sex
Roles and Consumer
Behaviour
– Masculine vs. Feminine Traits
 The Working Woman
– Segmentation Issues
– Shopping Patterns
Segmenting the Female Market
 Four Segments:
– Stay-at-Home Housewives
– Plan-to-Work Housewives
– Just-a-Job Working Women
– Career-Oriented Working Women

Subcultures and Marketing Strategy
 Segment the market using

subcultures
 Adapt marketing mix to suit
subculture’s needs
 Use ethnic media to reach racio-
ethnic subcultures
 Incorporate members of
subcultures in ads
Chapter 11
Social Class and Consumer
Behaviour
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Social Class
 The division of members of a society into a

hierarchy of distinct status classes, so that
members of each class have either higher or
lower status than members of other classes.

Characteristics of Social Class
 Is hierarchical
 Is a natural form of segmentation
 Provides a frame of reference for consumer
behaviour
 Reflects a person’s relative social status
 In Canada, individuals can up or down the
social class hierarchy
Social Class and Social Status
 Status is frequently thought of as the

relative rankings of members of each social
class
– wealth
– power
– prestige

Social Comparison Theory
 statesthat individuals compare

their own possessions against those
of others to determine their relative
social standing.

Status Consumption
 The process by which consumers

actively increase their social
standing through conspicuous
consumption or possessions

Social Class Measurement
 Subjective Measures: individuals are asked
to estimate their own social-class positions
 Reputational Measures: informants make
judgments concerning the social-class
membership of others within the community
 Objective Measures: individuals answer
specific socioeconomic questions and then
are categorized according to answers

Objective Measures
 Single-  Composite-
variable variable indexes
– Index of Status
indexes Characteristics
– Occupation – Socioeconomic
Status Score
– Education
– Income
– Other
Variables
Index of Status Characteristics
(ISC)
 A composite measure of social class that

combines occupation, source of income (not
amount), house type / dwelling area into a
single weighted index of social class
standing.

Socioeconomic Status Score (SES)
 A multivariable social class measure used by the

United States Bureau of the Census that combines
occupational status, family income, and
educational attainment into a single measure of
social class standing.

What is Middle Class?
 The “middle” 50% of household incomes
Households made up of college-educated
adults who use computers, and are involved
in children’s education
 Lower-middle to middle-middle based on
income, education, and occupation (this
view does NOT include upper-middle
which is considered affluent)

What is Working Class?
 Households with lower earnings;

control more than 30% of the total
income in the U.S.
 These consumers tend to be more
brand loyal than wealthier
consumers
(continued)

(continued)

(continued)

(continued)


Social Class and Marketing
Strategy
 Clothing, Fashion, and Shopping
– Where one shops
– External point of identification
 The Pursuit of Leisure
– Type of leisure activities differ
» continued

Social Class and Marketing
Strategy
 Saving, Spending, and Credit
– Level of immediate gratification
sought varies
 Responses to marketing communication
– Upper classes have a broader and
more general view of the world
– Regional variations in language rise
as we move down the social ladder
– Exposure to media varies by social

Limitations of Social Class
 Social class is more difficult to measure than
income
 Many purchase behaviours are related more to
income than social class
 Consumers often use expected social class for
their consumption patterns
 Dual incomes have changed consumption patterns
 Individual dimensions of social class are
sometimes better predictors of consumer
behaviour
Chapter 12
Reference Groups and Family
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
What is a Group?
 Two or more people who interact to
accomplish either individual or mutual
goals

Reference Group
A person or group that serves as a

point of comparison (or reference)
for an individual in the formation
of either general or specific values,
attitudes, or behaviour.

Types of Reference Groups
 Classified by:
– Membership
• Symbolic
– Extent of interaction
• Direct versus indirect
– Nature of attraction
• Aspirational versus dissociative
– Degree of formality
• Formal versus informal
Types of Reference Group
Influence
 Informational Influence
– When a member of reference group
provides information used to make
purchase decisions
 Normative Influence
– When we conform to group norms in
order to belong to that group
 Identification Influence
Factors Encouraging Conformity:
A Reference Group Must ...
 Inform or make the individual aware of a
specific product or brand
 Provide the individual with the opportunity to
compare his or her own thinking with the
attitudes and behaviour of the group
 Influence the individual to adopt attitudes and
behaviour that are consistent with the norms of
the group
 Legitimize the decision to use the same
products as the group
Selected Consumer-Related
Reference Groups
 Friendship groups
 Shopping groups
 Work groups
 Virtual groups or communities
 Brand communities
 Consumer-action groups
 celebrities
Reference Groups and Marketing
Strategy
 Recognize the extent of reference
group influence in a situation
 Identify the most effective type of
reference group influence
 Identify possible reference group
members to use in promotions
 Attempt to increase reference
group influence
Households
Family Households:
Married couple,
Nuclear family,
Extended family
Households
Non-Family Households:
Unmarried couples,
Friends/ Roommates,
Boarders

The Typical Household?
 Canada: Nuclear family

 Thailand: Extended family
 USA: Not married, no children

The Family Life Cycle
 Traditional Family Life Cycle

– Stage I: Bachelorhood
– Stage II: Honeymooners
– Stage III: Parenthood
– Stage IV: Post-parenthood
– Stage V: Dissolution
 Modifications - the Nontraditional
FLC
Figure 12-6 Noteworthy Nontraditional
FLC Stages
Alternative FLC Stages Definition/Commentary
Family Households
Childless couples It is increasingly acceptable for married couples to
elect not to have children. Contributing forces are
more career-oriented married women and delayed
marriages.
Couples who marry later in More career-oriented men and women and greater
life (in their late 30s or later) occurrence of couples living together. Likely to have
fewer or even no children.
Couples who have first child Likely to have fewer children. Stress quality lifestyle:
later in life (in their late 30s “Only the best is good enough”
or later)

Family Households
Single parents I High divorce rates (about 50%) contribute to a
portion of single-parent households
Single parents II Young man or woman who has one or more children
out of wedlock.
Single parents III A single person who adopts one or more children.
Extended family Young single-adult children who return home to
avoid the expenses of living alone while establishing
their careers. Divorced daughter or son and
grandchild(ren) return home to parents. Frail elderly
parents who move in with children. Newlyweds
living with in-laws.

Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and
homosexual couples.
Divorced persons (no High divorce rate contributes to dissolution of

children) households before children are born.
Single persons (most are Primarily a result of delaying first marriage; also,
young) men and women who never marry.
Widowed persons (most are Longer life expectancy, especially for women; means
elderly) more over-75 single-person households.

Dynamics of Husband-Wife
Decision Making
 Husband-Dominated
 Wife-Dominated
 Joint
– Equal
– Syncratic
 Autonomic
– Solitary
– Unilateral
Consumer Socialization
 The process by which children

acquire the skills, knowledge, and
attitudes necessary to function as
consumers.

Other Functions of the Family
 Economic well-being
 Emotional support
 Suitable family lifestyles

Family and Marketing Strategy
 Use the FLC for segmentation and positioning
 Recognize the diverse consumption roles within
the family
 Understand and use the dynamics of husband-wife
decision making
 Understand and use the consumer socialization
role played by the family
 Recognize the changing nature of Asian families.

Chapter 13
Consumer Influence and the
Diffusion of Innovations
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Opinion Leadership
 The process by which one person

(the opinion leader) informally
influences the consumption actions
or attitudes of others who may be
opinion seekers or opinion
recipients
What is Opinion Leadership?
Opinion
Opinion
Leader
Receiver
Opinion
Seeker

Special Issues
 Opinion leaders are four times more
likely to be asked about political
issues, three times more likely to be
asked about computers or
investments, and twice as likely to
be asked about restaurants
 Information seekers seek a “strong-
tie” source when they know little
about a topic, and “weak-tie”
Purchase Pals and Surrogate
Buyers
 Purchase Pals
– Information sources who accompany
a consumer on a shopping trip
 Surrogate Buyers
– Professional buyers who help
consumers with their purchases
(continued)


Market Maven
 Individualswhose influence stems

from a general knowledge or
market expertise that leads to an
early awareness of new products
and services.

Motivations Behind Opinion
Leadership
 The Needs of Opinion Leaders
– To reduce their own post-purchase
dissonance
– For tangential personal benefits
– Because of high levels of product
involvement
– Because of message involvement
» continued
Motivations Behind Opinion
Leadership
 Motivations of Opinion Seekers
– To obtain new product or new usage
information
– To reduce their risk by getting
knowledge
– To reduce search time
– To receive the approval of the
opinion leader
Reasons for the Effectiveness of
Opinion Leadership
 Credibility
 Positive and Negative Product
Information
 Information and Advice
 Opinion Leadership Is Category-
Specific
 Opinion Leadership Is a Two-way
The Interpersonal Flow of
Communication
 Two-Step Flow
– A communication model that
portrays opinion leaders as direct
receivers of information from mass
media sources who, in turn, interpret
and transmit this information.
 Multi-step Flow
– A revision of the traditional two-step
Measuring Opinion Leadership
OPINION LEADERSHIP
SAMPLE
MEASUREMENT DESCRIPTION OF METHOD
QUESTIONS ASKED
METHOD
SELF-DESIGNATING Each respondent is asked a “Do you influence

METHOD series of questions to other people in their
determine the degree to which selection of
he or she perceives himself or products?”
herself to be an opinion leader.
SOCIOMETRIC Members of a social system are “Whom do you

METHOD asked to identify to whom they ask?”“Who asks you
give advice and to whom they for info about that
go for advice. product category?”

Measuring Opinion Leadership -
continued
OPINION
SAMPLE
LEADERSHIP
DESCRIPTION OF METHOD QUESTIONS
MEASUREMENT
ASKED
METHOD
KEY INFORMANT Carefully selected key informants in “Who are the most
METHOD a social system are asked to influential people in
designate opinion leaders. the group?”
OBJECTIVE Artificially places individuals in a “Have you tried the

METHOD position to act as opinion leaders product?
and measures results of their efforts.

Opinion Leadership and
Marketing Strategy
 Identifyand provide samples to
opinion leaders
 Design programs to stimulate
opinion leadership
 Develop ads simulating opinion
leadership
 Create opinion leaders
 Control negative word-of-mouth
Diffusion Process
 Theprocess by which the

acceptance of an innovation is
spread by communication to
members of social system over a
period of time.

Adoption Process
 The stages through which an

individual consumer passes in
arriving at a decision to try (or not
to try), to continue using (or
discontinue using) a new product.

Defining Innovations
 Firm-oriented definitions
 Product-oriented definitions
 Market-oriented definitions
 Consumer-oriented definitions

Product-Oriented Definitions
Continuous
Innovation
Dynamically
Continuous
Innovation
Discontinuous
Innovation

Factors That Affect the Diffusion
of Innovations
 The Innovation
 The Channels of Communication
 The Social System
 Time

Product Characteristics That
Influence Diffusion
 Relative Advantage
 Compatibility
 Complexity
 Trialability
 Observability
 Felt Need
 Risk
Social System and Diffusion
 Does the target market have:
– A positive attitude towards change?
– Technological skill?
– A general respect for education and
science?
– A focus on rational and ordered
social relationship?
– An outreach perspective?
Time and Diffusion
 Purchase Time
 Adopter Categories
 Rate of Adoption

Adopter Categories
A sequence of categories that

describes how early (or late) a
consumer adopts a new product in
relation to other adopters.

Innovators: Description
• 2.5% of population
• Venturesome
• Very eager to try new ideas
• Acceptable if risk is daring
• More cosmopolite social relationships
• Communicates with other innovators

Early Adopters: Description
• 13.5% of population
• Respected
• More integrated into the local social system
• The persons to check with before adopting a new
idea
• Category contains greatest number of opinion
leaders
• Are role models

Early Majority: Description
• 34% of population
• Deliberate
• Adopt new ideas just prior to the average time
• Seldom hold leadership positions
• Deliberate for some time before adopting

Late Majority: Description
• Skeptical
• Adopt new ideas just after the average time
• Adopting may be both an economic necessity and
a reaction to peer pressures
• Innovations approached cautiously

Laggards: Description
• Traditional
• The last people to adopt an innovation
• Most “localite” in outlook
• Oriented to the past
• Suspicious of the new

Rate of Adoption
 Insert
Figure 13-16 A, B and C as
small graphs; if that is not possible,
then have one or two of them.

The Profile of a Consumer
Innovator
 Interest in the Product Category
 The Innovator Is an Opinion Leader
 Personality Traits
 Purchase and consumption characteristics
 Media Habits
 Social Characteristics
 Demographic Characteristics
 Are There Generalized Consumer Innovators?

Diffusion Process and Marketing
Strategy
 Identify diffusion inhibitors and
find ways to compensate for these
 Identify innovators and early
adopters and cater to them
 Move consumers from awareness
to adoption
 Make effective use of word-of-
mouth communications
Chapter 14
Consumer Decision Making I:
The Process
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Levels of Consumer Decision
Making
Extensive Problem
Solving
Limited Problem
Solving
Routine Response
Behaviour

Factors That Affect the Type of
Decision Making Process Used
 Importance of the decision
 Extent of previous experience
 Existence of well-established
decision criteria
 Amount of information at hand
about each alternative
 The number of alternatives
available
Consumer Decision Making – The
Process
 Need Recognition
 Pre-purchase Search
 Evaluation of Alternatives

Need or Problem Recognition
 The realization that there is a

difference between actual and
desired states
– The higher the gap, the stronger the
need (or bigger the problem)

Types of Problems
 Active Versus Inactive problems

– Active: those you are aware of
– Inactive: those that you are not yet
aware of (but exist)
 Those that require immediate
solutions and those that do not
require immediate solutions
Problem Recognition and
Marketing Strategy
 Identify existing consumer problems and find
solutions for these
 Lower the actual state
 Increase the desired state
 Increase the importance of the gap between actual
and desired states
 Convert inactive problems to active problems
 Convert problems into ones requiring an
immediate solution
Pre-Purchase Search
 Types of Information Sources

 Types of Information Sought
 Factors Affecting Extent of
Information Search

Figure 14-3: Types of
Information Sources
PERSONAL IMPERSONAL
Friends Newspaper articles

Neighbors Magazine articles
Relatives Consumer Reports
Co-workers Direct-mail brochures
Computer salespeople Information from product
Calling the electronics advertisements
store Internal web site

Types of Information Sought
 Brands or alternatives available

 Evaluative criteria to be used
– Generally, product features
 Ratings of brands on evaluative
criteria

Factors that Increase the Level of
Pre-purchase Search
 Product Factors: Higher search
when
– It is a long-lasting or infrequently
used product
– There are frequent changes in
product styling
– Large volume is purchased
– The price is high
Pre-purchase Search
 Situational
Factors: Higher
search when:
– Experience is lower
– Previous experience was
unsatisfactory
 Social
Acceptability: Higher
search when:
– Purchase is a gift
Pre-purchase Search
 Value-Related Factors: Higher
search when:
– Purchase is discretionary
– All alternatives have both positive
and negative qualities
– No agreement among users exists
– Conflicting information is available
– Other considerations exist

14-412
Pre-purchase Search
 Consumer Factors: Higher search
when:
– Consumers are well-educated, have
higher income levels and are
younger
– Consumers are low in dogmatism
and risk perception
– Level of involvement is high
Evaluation of Alternatives – Types
of Consumer Choice Processes
 Affective choices
– More holistic; an overall evaluation
– based on how one feels about a
purchase
 Attribute-based choices
– Have pre-determined evaluative
criteria
Nature of Evaluative Criteria
 Can be tangible or intangible

 Include surrogate indicators
– Attributes that are used as indicators
of another attribute
 Are
often ranked in order of
importance
Consumer Decision Rules
 Procedures used by consumers to

facilitate brand or other
consumption-related choices

Consumer Decision Rules
 Compensatory
– Brands evaluated in terms of each
relevant criteria and the best brand
(or one with the highest score) is
chosen
 Non-compensatory
– Positive evaluations do not
compensate for negative evaluations
Non-Compensatory Consumer
Decision Rules
 Conjunctive Decision Rule
– Product attributes are identified
– a minimally acceptable cutoff point is
established for each attribute
– brands that fall below the cutoff point on
any one attribute are eliminated from
further consideration.
» continued
Decision Rules
 Disjunctive Decision Rule
– consumers identify product attributes
– establish a minimally acceptable cutoff
point for each attribute
– accept the brand that meets or exceeds
the cutoff for any one attribute
» continued
Decision Rules
 Lexicographic Decision Rule
– Product attributes are identified
– Product attributes are ranked in terms
of importance
– brands are compared in terms of the
attribute considered most important
– Brand that scores highest on the first
attribute is chosen
– If there is a tie, the scores on the next
Issues in Alternative Evaluation
 Lifestyles as a Consumer Decision

Strategy
 Incomplete Information
 Non-comparable Alternatives
 Series of Decisions
 Consumption Vision
– Mental picture of the consequences
of using a particular product
Coping with Missing Information
 Delay decision until missing

information is obtained
 Ignore missing information and
use available information
 Change the decision strategy to
one that better accommodates for
the missing information
 Infer the missing information
Information Search and
Marketing Strategy
 Get products into consumers’
evoked set
 Limit information search if your
brand is the preferred brand
 Increase information search if your
alternative is not the preferred
brand
Alternative Evaluation and
Marketing Strategy
 Identify decision rule used by target market and
use suitable promotional messages
 Influence the choice of evaluative criteria
 Influence the rating of your product on evaluative
criteria used
 Use surrogate indicators effectively
 Use ‘consumption vision’

Chapter 15
Consumer Decision Making II:
The Outcomes
Consumer Behaviour
Asian Edition
Schiffman/Kanuk/Das
Copyright © 2009
Types of Purchases
Trial Repeat
Purchases Purchases
Long-Term
Commitment
Purchases

Purchase Behaviour
 Brand choice
 Store choice
– Store-first or brand-first?
 Payment option choice

Store-first decisions
 When evoked set consists of stores
rather than brand when he/she
thinks of a product category
 Store-first decisions require:
– Distribution in all relevant stores
– Good point-of-purchase and in-store
promotions
– Good shelf space
Outlet Factors and Purchase
 Retail store image
– Pricing strategies and store image
– Product assortment and store
image
 Retail environment
– Store layout
– In-store stimuli
 In-store decisions
In-store Decisions
 Generally planned
– Product category decided on prior to
entering the store
 Substitute purchases
– Brands substituted in store due to
promotions
 Totally unplanned
Gifting Behaviour
 Giftingis an act of symbolic

communication, with explicit and
implicit meanings ranging from
congratulations and love, to regret,
obligation, and dominance.

Gifting Subdivisions
Inter-group Inter-category
Gifting Gifting
Intra-group Interpersonal
Gifting Gifting
Intra-personal
Gifting

Consumption Process
 Products have special meaning and

memories
 Brand loyalty
– Defined in many ways

Consumers Are Less Loyal - Why?
 Abundance of  Commoditization
choice  Insecurity
 Availability of  Time scarcity

information
 Entitlement

Customer Satisfaction and
Dissatisfaction
 Dissatisfaction
occurs when there
is a gap between expected and
actual performance

Types of Performance
Expectations
 Instrumental performance
– The way a product actually functions
 Symbolic performance
– Style appearance and overall
aesthetics of a product
 Affective performance
– How owning the product makes you
Relationship Marketing
 Marketing aimed at creating

strong, lasting relationships with a
core group of customers by making
them feel good about the company
and by giving them some kind of
personal connection with the
business.
Purchase, Post-purchase
Processes and Marketing Strategy
 Encourage trial
 Encourage purchase and repeat purchase
 Increase brand loyalty
 Make efforts to increase customer satisfaction and
decrease dissatisfaction
 Create symbolic meanings for products
 Check if consumers make store-first or brand first
decisions; market accordingly
 Develop good relationship management strategies
Outcomes of Post-purchase
Evaluation
 Actual Performance Matches
Expectations
– Neutral Feeling
 Actual
Performance Exceeds
Expectations
– Positive Disconfirmation of
Expectations
 Performance is Below
Expectations

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Chapter 1

Copyright © 2006 Pearson Education Asia Pte. 1-2

The behaviour that consumers

The individual who buys goods

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 Assumes that consumers will buy the

 Assumes that consumers are unlikely

 Assumes that to be successful, a

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 Communicating the benefits of

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 Understanding consumer behaviour

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 Knowledge of consumer behaviour is

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A postmodernist approach to the

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Aconsumer behaviour research

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 Consists of depth interviews, focus

Prediction of consumer Understanding consumption

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•Rationality •No single, objective truth

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 Defining purposes and objectives helps

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 Secondary data:  Primary data: data

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 Helps marketers gain an in-depth

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 Can be used to test the relative

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 The degree to which a measurement

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 The degree to which a measurement

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 Likert scales: easy for researchers

_____ a. It is fun to shop online.

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Rank the following computer manufacturers

_____ IBM _____Hewlett Packard

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A qualitative research method in

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 Research procedures designed to

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 Customer Satisfaction Surveys

Simple random Every member of the population has a known and

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 The driving force within

 Thegoals selected by an individual

Methods by which people mentally

 Needs Reflecting Ambition, Power,

 Needs Connected with Human Power:

 Needs Concerned with Affection between

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