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Contents3.1 Objectives 723.2 Introduction 723.3 Culture and sub-cultures 723.4 Social groups 753.5 Family and opinion leadership 763.6 Personality and self-concept 813.7 Motivation and involvement 853.8 Information processing 883.9 Learning and memory 923.10 Memory 953.11 Attitudes 973.12 Problem recognition, search, and evaluation 1023.13 Purchasing and post-purchase behaviour 1083.14 Organizational buyer behaviour 1133.15 Summary 116Discussion questions 117Further reading 117
By the end of this chapter you should understand:(a) how customers purchase;(b) how customers evaluate, acquire, use or dispose of products;(c) the physical behaviour of customers—the overt act of buying;(d) The buying decision process: the mental activities pre and post purchase.
Consumer and organizational buying behaviour may be defined as: The environment and decision process affecting individuals and groups whenevaluating, acquiring, using or disposing of goods, services or ideas.In both consumer and organizational buying contexts there are a plethora of different environment and decision related variables that can impact on thedecision of whether or not to initiate a purchase (Loudon and Della Bitta,1993). In this chapter we consider each in turn and discuss the specificmarketing implications.Before moving on, however, it is important to recognize the importance of adetailed understanding of buying behaviour since it can help delineate:
market opportunities;
target market selection;
product—size, shape, features, and packaging;
price—initial price, discounts, awareness and sensitivity to price;
appropriate promotion messages.
3.3 Culture and sub-cultures
 
Culture is defined as the beliefs, attitudes, goals, and values held by mostpeople in a society. However, the content of a culture also includes thephysical and social environment (Quelch and Hoff, 1986). Sub-culturescontain distinctive groups of people within the culture that share commoncultural meanings (Herbig, Koehler, and Day, 1993; Schaninger, Bourgeois,and Buss, 1985).
A large and important part of any culture is the set of knowledge, meanings,and beliefs that are shared by a group, including symbolic meanings.Characteristic patterns of behaviour are also part of culture, such as drinkingwine with meals, or not drinking any alcohol at all, or taking afternoonsiestas, or working a nine to five day.
Another aspect of culture includes the physical objects and social institutionsconstructed by a society and the meanings that these have for most people.Examples would be dominant architectural styles, sizes of homes andconfigurations, traffic laws, art, household artefacts, and products.
‘Charge It’ was the slogan for many consumers in the 1980s. Average realdisposable incomes only rose by a few per cent, but the credit boom fuelledconsumer spending and personal debt mushroomed (as did corporate debt). The 1990s proved to be a watershed era replacing consumer concerns for‘prestige’ with ‘value’ and ‘prudence’ which has continued into the turn of thecentury. There are underlying demographic and attitudinal changes going on:
‘Upscale’ is out and ‘downscale’ is in. Flaunting money is frowned upon: if youhave it—keep it to yourself or give it away! In place of materialism people arespending more time with family and friends, rest, recreation and ‘good deeds’.People have been awakened to many personal issues such as the plight of ahomeless neighbour or the loss of a job.
Middle-aged ‘baby boomers’ now have older families and more financialresponsibilities.
People are not pessimistic, just ‘realistic’ about job opportunities and incomegrowth.
 There is a general trend towards recycling, environmentalism, and spirituality.
3.3.4 Specific applications(a) Values
 There is a wide body of research and analytical approaches attempting to linkvalues and consumer behaviour. Various studies have linked values of ownership and household appliances, recreational activities, giving tocharities, media usage, etc. Examples include the Rokeach Value Survey(RVS) which uses 18 ‘instrumental’ and 18 ‘terminal’ values and theUniversity of Michigan's list of Values (LOV). SRI International has combinedvalue and lifestyle (VALS and, more recently, VALS 2) identifying eightcategories of consumers based on their value orientation and availableresources (Novak and MacEvoy, 1990):
 
 The argument is that consumer behaviour will be modified to a lesser orgreater extent depending on the category into which an individual falls.
Marketers operating abroad need to have a good understanding of cross-cultural differences. The kinds of issues focused upon in research include:
M-Time (monochronic) where punctuality is desired and P-Time (polychronic)where time is more loosely defined;
low-context communication, where everything is explicit and high-context whereverbal and non-verbal dominate;
customs and standards;
degree of competitiveness and individuality.
Sub-cultures are large groups or segments of people who share commonvalues, goals, beliefs, attitudes, norms, and behaviour patterns. Individualsmay belong to several sub-cultures at the same time. Typically they aredefined by:
race:
nationality;
religion;
location.
Direct marketers often target sub-cultures because they have distinguishablepurchasing patterns; they may be large in spending terms and are oftenconcentrated in identifiable locations.
Society's concerns over health and personal responsibility have hit the alcoholindustry over the past ten years. Hard alcohol consumption has declined steadilyin face of a shift to lighter beverages, bottled water, and soda.
Increasingly pro-active views of health have led to a boom in sales of sportswearand equipment.
Cocooning and home values are rising trends that have affected all mass outdoorentertainment industries and benefited take-home drinks and food and homeentertainment.
Greater emphasis on stress reduction has led to an increased focus on relaxingand travel.
Marlboro re-positioned itself from a feminine cigarette in the 1950s to a ruggedmasculine one in the 1960s through the use of cultural symbolism.
People generally dress according to cultural norms and expectations, such as forwork or going out for an informal party.
Price haggling may be an important cultural ritual.
North American commercials tend to have a hard-sell focus compared to Britishones.
Coca-Cola sells mainly as a mixer in Spain.
3.4 Social groups
 
Psychologically, a further problem is that people often assume that thepersonality of the things that they buy are similar to their own simplybecause they have bought them.
A motive is a consideration or emotion that excites someone to action. Somebelieve that instincts provide most of the motives that people have today.However, the prevalent view is a cognitive one that suggests that motivesare more typically directed by mental processes. This view is more popularbecause the existence of instincts is hard to prove. Also, to explain motivesby instinct makes the whole discussion tautological. To say a consumer buysan expensive status car because he or she wants status is hardly earthshattering. Motives guide people's behaviour in achieving their goals.Involvement refers to the level of perceived importance and/or interestevoked by a stimulus. It will differ according to the interests of consumersand the situation. One person who likes computers might read a directmailing on the subject, while a friend receiving the same mail shot does notbother. Involvement is the motivation to process information, ranging fromsimple and inert, to elaborate and intense processing.
 This focuses on biological needs that produce tension (e.g. your stomachrumbles with hunger). According to the theory, satisfying the problem mayreduce tensions. The difficulty is that people often ignore biological needs.For example, if your stomach rumbles, but you are going out to dinner in twohours, you will most likely ignore the problem in the knowledge that it mightbe better to remain hungry.
Behaviour is largely pulled by expectation of positive outcomes rather thanpushed from within. For example, a person might choose one brand of toothpaste over another because they believe it fights cavities better.
Motives have direction, as well as strength—
a consumer who needs apair of jeans can choose between a variety of brands to project a desiredimage, be it Levis, Wranglers, Guess, or Calvin Klein.
Motives can be positive or negative—
many products have negativemotives, such as deodorants and mouthwashes.
The specific way in which a motive might be satisfied will varyaccording to the consumer concerned—
a health conscious consumerwho is hungry might buy a salad, while another might buy a cheeseburgerand chips. Hunger is a need whereas salads and cheeseburgers are wants.On the whole, direct marketers have had more success in channelling wantsthan creating needs.
 
Purchase decisions often involve more than one source of motivation, andconsumers find themselves in a position of conflict. Consumers have tostructure the types of choices that they face and decide on the degree of motivation accordingly:
Approach-Approach—
a person must choose between two desirablealternatives, for example choosing between two CDs. In general, peoplecontent themselves with a snap decision and resolve the conflict after thepurchase.
Approach-Avoidance—
many goods and services have negativeconsequences attached to them like ice-cream. People try to overcome guiltby convincing themselves that they are deserving of luxuries.
Avoidance-Avoidance—
sometimes consumers face two undesirablechoices. For example, spending a great deal of money repairing an old car orbuying a new one. Often, consumers may be weighed by options that reducethe pain, e.g. a new car purchase with low interest and long-termrepayments.Maslow's Hierarchy is worth a mention at this point because it is valuable inassessing the hierarchy of motives (Maslow, 1954) (see Figure 3.3).
Motivational research was developed and pioneered by a Vienna-trainedpsychologist, Ernest Dichter, who studied over 230 different products with in-depth interviews. Amongst others, Dichter was responsible for the Freudian-symbolic ‘Put a Tiger in Your Tank’ for Esso.Motivational research has been attacked on two fronts. There are those whobelieve it does not work, given that so much of the material is open tosubjective interpretation. Also, there are those who believe it works too well,and manipulates consumers. Overall, the motivational researchers' over-emphasis on Freudian, and therefore, sexual symbolism, makes much of itsexplanation of behaviour too simple.
PhysiologicalStaple items, genericsSafetyInsurance, security systems, investmentsBelongingnessClothing, clubs, drinks, groomingEsteemCars, furniture, credit cards, wines,country clubsSelf-actualizationHobbies, travel, educationFig. 3.3 Maslow's Hierarchy
On the positive side, motivational research is cheap and often seems to focusintuitively on the deep-seated needs of consumers, such as coffee beingassociated with companionship. Whether women baking cakes associate the
 
activity with giving birth is doubtful! Nevertheless, the phrase ‘bun in theoven’ seems to relate to this. Overall, motivational research should only beused in conjunction with other standard techniques if the budget allows.
Involvement may take many forms depending on the nature of the productand the individual concerned:
Purchase involvement—
relates to the consumer's level of interest in thebuying process and is triggered by the nature of the need.
Message involvement—
the processing of direct advertising andpromotions. TV has traditionally been considered low involvement comparedto print.
Ego involvement—
importance of the decision to the person's self-concept.
A variety of ways have been experimented with to measure involvement. TwoFrench researchers, Laurent and Kapferer, have suggested a way thatrecognizes that there is no single way of measuring involvement. They haveadvocated a profile based on four aspects:
Importance and risk—
importance of the product and risk of a bad buy.
Pleasure value of the product—
hedonistic.
Sign value—
self-concept.Direct marketers can use this profile to develop appropriate strategies. Forexample, a product may be low on signage, but strong on pleasure.
Information processing focuses on the way in which sensations are absorbedby people and used to interpret and attribute meaning to the marketingenvironment (Tybout, Calder, and Sternthal, 1981). Like computers, peopleundergo stages of information processing in which stimuli are input, stored,and manipulated. Only a relatively small number of stimuli in theenvironment are noticed. Of these, an even smaller amount enters theconscious to be processed objectively.
Personality—
information processing (IP) is strongly influenced by aperson's personality. Such considerations as attitudes, attributes,experiences, learning, and motives will alter the select perception of eachperson accordingly.
Stimuli—
the stimuli involved are colour, smell, sound, touch, and taste.

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