1.

Discuss the connection between consumer behavior and marketing

Most of the marketing strategies and tactics are based on explicit or implicit beliefs about consumer
behavior. (ý chính)
Consumer behavior insights are generated based on a brand’s marketing strategy. Brands rely strongly on
studying, analyzing, and incorporating consumer behavior into their marketing strategies.
To buil a relationship with the consumers through the channels of marketing communication, the marketer has
to decide which method would be most suitable to effectively reach the consumers. Therefore, the company has
to know its target consumers, their location, their preferences, lifestyles,...
Support the decision making by understanding how consumer decides.
Marketing strategies can easily use consumer behavior insights and data to understand the expectations that
consumers have, their preferences, and what helps a company retain a consumer. Knowledge of consumer
behavior can be an important competitive advantage while formulating marketing strategies. It can greatly
reduce the odds of bad decisions and market failures. Consumer behavior helps in identifying the unfulfilled
needs and wants of consumers which enables the marketer to design products or services as per the
requirements.
Enhancing the marketing effort by applying ethical tactics based on the information collecting.
Companies use marketing concepts to promote and sell their products or services, and consumer behavior is
how consumers act and respond in the retail environment. In order for a company to create a strong marketing
campaign, it is important to understand how and to what the consumer will respond. Understanding consumer
behavior is critical for marketing any product or service successfully. Once the unfulfilled needs and wants are
identified, the marketer has to determine the precise mix of four P: Product, Price, Place, and Promotion. When
a company can understand why people buy what they buy and the reasons behind their decisions as consumers,
the company can create a marketing campaign that specifically addresses those elements of the purchasing
decision.
2. Criticizing the marketing strategies and consumer behavior
- The marketing strategy lays out target markets and the value proposition that will be offered based on an
analysis of the best market opportunities.
- Consumer behavior is the study of individuals, groups, or organizations and the processes they use to
select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that
these processes have on the consumer and society.
- All marketing strategies and tactics are based on explicit or implicit beliefs about consumer behavior.
Decisions based on explicit assumptions and on sound theory and research are more likely to be successful.
Consumer behavior enhances the Marketing effort by applying ethical tactics based on the information
collecting.
- Firstly, marketing strategy begins with an analysis of the market the organization is considering. A
detailed analysis of the organization’s capabilities, the strengths and weaknesses of competitors, the economic
and technological forces affecting the market, and the current and potential customers in the market will be
conducted.
(1) The consumers: Knowing the consumer requires understanding the behavioral principles that guide
consumption behaviors. Discovering this term is a complex process and can be accomplished by marketing
research.
(2) The company: A firm must fully understand its own ability to meet customer needs, which involves
evaluating all aspects of the firm.
(3) The competitors: A thorough understanding of the competition’s capabilities and strategies is vital,
which requires the same level of knowledge of a firm’s key competitors.
(4) The conditions: The state of the economy, the physical environment, government regulations, and
technological developments affect consumer needs and expectation
- Secondly, on the basis of the consumer analysis, the organization identifies groups of individuals,
households, or firms with similar needs which is called market segmentation. One or more of these segments
then will be selected as target markets on the basis of the firm’s capabilities.
- Thirdly, a general marketing strategy is formulated for each segment. It seeks to provide the
customer with more value than the competition while still producing a profit for the firm. The strategy is
formulated in terms of the marketing mix, which involves determining the product features, price,
communications, distribution, and services provided to the target market
- Fourthly, the consumer decision process intervenes between the marketing strategy and the outcomes.
The outcomes of the firm’s marketing strategy are determined by its interaction with the consumer decision
process.
- Finally, we conduct an analysis of outcomes.
- Firm outcomes:
- The most basic outcome of a firm’s marketing strategy is its product position — an image of the product
or brand in the consumer’s mind relative to competing products and brands.
- Sales and profits are critical outcomes, and all firms evaluate the success of their marketing programs in
terms of sales revenues and profits.
- Customer satisfaction is a major concern of marketers.
- Individual outcomes:
- Need satisfaction: The most obvious outcome of the consumption process and it can range from no
satisfaction to fully satisfaction
- Injurious consumption: occurs when individuals or groups make consumption decisions that have
negative consequences for their long run well being
- Society outcomes: includes economic outcomes, physical environment outcomes and social welfare.
Example: Jump Associates sponsored a series of “game nights” at high school grads’ homes, inviting
incoming college freshmen. To get teens talking about dorm life, Jump devised a board game that involved
issues associated with going to college. The game naturally led to informal conversations about college life.
Jump researchers were on the sidelines to observe, while a video camera recorded the proceedings. On the basis
of this research, Jump successfully launched the Todd Oldham Dorm Room line, which included all-in-one
assortments of the types of products needed by college freshmen.
3. While understand and capturing the consumer behavior, the promotion mix tends to shift from 4P to
4C, criticizing the 4C concept
The 4C focuses on what customers perceive: their needs, their situation, their experience, their
satisfaction.
1. Consumer
Consumer wants and needs, focus on conducting research, creating customer profiles, seeking feedback and
monitoring social media related to your brand to understand your customer's needs and wants.
What does the customer want or need that they are not currently getting, and what can we do to serve that need?

The first of the 4 C’s works on the logic that making a product or brand to cater for existing customer needs is a
superior approach to simply making a product or brand, then identifying or manufacturing demand for them.

This theory lends itself to a specific order of planning and production. First, we use market research (e.g.
sector-specific consumer surveys, or website data insights) to discover what the brand’s existing or prospective
audience wants or needs. Then, and only then, can we plan, produce and market the solution.

2. Cost
There is more to cost than just its purchase price.
What is the total cost of the product to the customer? In addition to the product’s retail price, this must factor in
the time and effort required to get and use the product, plus any additional expenses that come with it.

Let’s consider how the cost-to-consumer of a video games console might break down:

 Console retail price

 Cost of games and accessories
 Need to stay at home to take delivery of console/to visit video games store to collect
 Setup time
 Cost of online subscription
 Cost of in-game purchases
As we can see, the true cost of the purchase is far greater and more complex than the price on the box.
Consumers are aware that the true cost of a product is often higher than its RRP – and the “Cost” category of
the 4 C’s marketing mix reflects this reality.

3. Convenience
The third C is all about ensuring the brand/product is available as conveniently as possible to each customer
persona/demographic in the target audience.
This is primarily a matter of understanding how a brand’s customers shop. If your target audience prefers to
shop online, the item should be available to order online with flexible delivery options. Or, if they prefer to try
in-store before they buy, that option should be available too.
Customer convenience can come at a high cost to businesses. For example, clothes retailers offering free “try
before you buy” services to online customers could see their volume of returned stock quadrupled. In light of
this effect, we would phrase the question of convenience as follows:
“What’s the most convenient service we can afford to give customers, without causing business harm?”
This comes with the caveat that too-little convenience can also cause business harm, in the shape of lost
custom.

4. Communication: How will the brand interact with customers?

Customers often feel a stronger connection with companies that commit to an engaged dialogue with them. By
responding directly and listening to customers’ suggestions, your customers will feel valued and more apt to
continue to buy and recommend your products and services.
Every interaction between the customer and the brand can affect customer satisfaction, the likelihood of future
sales and the likelihood of customer referrals.
Communication isn’t just about how a brand communicates with its customers: it’s also about what customers
communicate to the brand, and how that information is used.
This is particularly important to the delivery of tailored multi-channel communications for individual customers
or sales leads. Everything the customer says and does can teach the brand to communicate better to customers.

4. Information processing is a series of activities by which stimuli are perceived, transformed into
formation, and store where exposure occurs when a stimulus is placed within a person’s relevant
environment and comes within range of their sensory receptor nerves. Explain the exposures, attention,
and interpretation.
An information-processing model for consumer decision making has four major steps or stages: exposure,
attention, interpretation, and memory. Exposure, attention and interpretation constitute perception.

EXPOSURES
Exposure occurs when a stimulus is placed within a person’s relevant environment and comes within range of
their sensory receptor nerves. Exposure provides consumers with the opportunity to pay attention to available
information but in no way guarantees it.

Most of the stimuli to which individuals are exposed are “self-selected.” This is because people deliberately
seek out exposure to certain stimuli and avoid others. Exposure includes selective exposure and voluntary
exposure.

+ Selective Exposure: The highly selective nature of consumer exposure is a major concern for marketers
since failure to gain exposure results in lost communication and sales opportunities. Selective Exposure refers
to individuals' tendency to favor information that reinforces their pre-existing views while avoiding
contradictory information.
+ Voluntary Exposure: Although consumers often avoid commercials and other marketing stimuli,
sometimes they actively seek them out. Exposure to online messages and advertising can also be voluntary or
involuntary.
Example: Sometimes a brand can get exposure by telling its story to a new population segment. Chanel is a
high-end luxury brand – meaning its core audience trends a little older. But in a vibrant and artfully designed
video, Chanel shared the story of founder Coco Chanel in way to appeal to a broader, younger audience. The
biographical spot allowed the brand to frame itself as a triumph of hard work and a revolutionary force in
women’s fashion and empowerment.

ATTENTION
Attention occurs when the stimulus activates one or more sensory receptor nerves, and the resulting sensations
go to the brain for processing. Attention requires consumers to allocate limited mental resources toward the
processing of incoming stimuli. Marketers wish to understand hơ to gain attention for effective communication.

Attention always occurs within the context of a situation. And the same individual may devote different levels
of attention to the same stimulus in different situations. Attention is determined by these three factors: the
stimulus, the individual, and the situation.
+ Stimulus factors are physical characteristics of the stimulus itself. Stimulus characteristics are under the
marketers’ control and can attract attention independent of individual or situational characteristics. The
attention garnered by stimulus factors tends to be relatively automatic.
+ Individual factors are characteristics that distinguish one individual from another. Generally speaking,
consumer motivation and ability are the major individual factors affecting attention
+ Situational factors include stimuli in the environment other than the focal stimulus and temporary
characteristics of the individual that are induced by the environment, such as time pressures or a crowded store.
Clutter and program involvement are two major situational factors affecting attention.
Example: During one of Switzerland’s biggest public festivals, the Zurifest, McDonald’s restaurants in the area
face the increased competition from independent fast food stalls. The festival just so happens to be the only
time of year when pedestrian crossings are taken out of use. Spotting an opportunity, McDonald’s restyled the
pedestrian crossing in front of one of their restaurants into a portion of fries. It turned out to be one of the most
memorable campaigns for the brand.

INTERPRETATION
Interpretation is the assignment of meaning to sensations. Interpretation is related to how we comprehend and
make sense of incoming information based on characteristics of the stimulus, the individual, and the situation.
The subjective nature of interpretation can be seen in the distinction between semantic meaning and
psychological meaning
Interpretation can be either a cognitive “thinking” process or an affective “emotional” process. Cognitive
interpretation is a process whereby stimuli are placed into existing categories of meaning. Affective
interpretation is the emotional or feeling response triggered by a stimulus such as an ad led to the emotional
response range from positive to negative
Example: It’s a Coca-Cola corporate policy not to advertise on TV news because there’s going to be some bad
news in there, and Coke is an upbeat, fun product.
5. Differentiate between the STM and LTM, from there, criticize the learning process and learning
outcome
- Short-term memory (STM), or working memory, is that portion of total memory that is currently
activated or in use.
- Long-term memory (LTM) is that portion of total memory devoted to permanent information storage.

Differentiate between the STM and LTM

STM LTM
They have limited capacity to store
information and sensations. It is not used for
storage in the usual sense of that term. Short-
term memory is closely analogous to what we
normally call thinking. It is an active, dynamic
process, not a static structure
Unlimited, permanent storage. It can store
numerous types of information, such as concepts,
decision rules, processes, and affective (emotional)
states.

Short-lived: marketer use to stimulate by

repeating prices or brand name or a key Marketers are particularly interested in Sematic
benefit a prominent manner several times in an memories, where the basic knowledge and feeling
advertisement. an individual has. It represents the person’s
understanding of an object or event at its simplest
level.

Limited capacity: Marketers can help
consumers chunk product information by
organizing detailed attribute information in
messages around more general benefits that
they create.
Episodic memory is the memory of a sequence of
events in which a person participated. This is the
memory of a sequence of events in which a person
participated.

Criticize the learning process and learning outcome

Learning is any change in the content or organization of long-term memory or behavior and is the result of
information processing. Information processing is described as a series of activities by which stimuli are
perceived, transformed into information, and stored. The four activities in the series are exposure, attention,
interpretation, and memory.

Different information processing systems handle different aspects of learning. The perceptual deals with
information intake through exposure and attention and maybe conscious or unconscious. Short-term memory
deals with holding information temporarily while it is interpreted and transferred into long-term memory. Long-
term memory (LTM) deals with storing and retrieving information to be used in decisions. These processes are
highly interrelated. Finally, price perceptions associated with their favorite brand may be updated and stored in
long-term memory as a consequence of the comparison process.

Example, a consumer may notice their favorite brand of soda on the store shelf because of a purchase goal
stored in long-term memory. The soda’s current price is brought into short-term memory through the perceptual
system for processing. But a reference price may also be retrieved from long-term memory as a comparison
point.

6. Discussing the studies related to lifestyle

Lifestyle studies typically include the following: attempts to develop quantitative measures of lifestyle were
initially referred to as psychographics:

Attitudes – evaluative statements about other people, places, ideas, products, and so forth. Such evaluations are
often positive or negative, but they can also be uncertain at times. For example, you might have mixed feelings
about a particular person or issue. Attitudes can form through direct experience, social influence, formal
education, conditioning processes, and observation. Attitudes are not set in stone and may change when people
learn new information, when they are persuaded by influential people, or when they experience discomfort due
to holding conflicting beliefs.
Values – widely held beliefs about what is acceptable or desirable. Norms are derived from these. They become
standards by which people order their lives and make their choices

Activities and interests – nonoccupational behaviors to which consumers devote time and effort, such as
hobbies, sports, public service and church,

Demographics - age, education, income, occupation, family structure, ethnic background, gender, and
geographic location

Media patterns – the specific media the consumers utilize

Usage rates – measurements of consumption within a specified product category; often consumers are
categorized as heavy, medium or light users or as nonusers

General lifestyle studies can be used to spot new product opportunities, while product specific lifestyle analysis
may help repositioning decisions regarding existing brands.

A large number of individuals, often 500 or more, provide the above information. Statistical techniques are
used to place them into groups whose members have similar response patterns. Most studies ust first 2 or 3
dimensions decribed above to group individuals. The other dimensions are used to provide fuller descriptions of
each group. Other studies include demographics as part of the grouping process.

7. What is motivation and criticizing the intrinsic and extrinsic motivation

Motivation is the processes that account for an individual’s intensity, direction, and persistence of effort toward
attaining a goal. Motivation is the reason for behavior, why an individual does something.
In psychology, there are two different types of motivation: intrinsic motivation and extrinsic motivation.

Intrinsic motivation is when you feel inspired or energized to complete a task because it’s personally rewarding.
In other words, you're performing the activity because of some internal drive as opposed to an external force or
reward. With intrinsic motivation, the behavior itself becomes the reward. 

When intrinsically motivated, a person does a task for fun, engagement, and the joy that comes from
doing it. They don’t concern themselves with the external reward, pressure, or punishment that
follows it. Intrinsic motivation is simply a gateway to learn, explore things based on interest in a
task. We do activities merely for fun and not because of pressure or an external reward.  

Extrinsic motivation refers to doing something not because you enjoy it, but because you want to earn extrinsic
rewards or avoid punishment. External motivation is the exact opposite of intrinsic motivation. Using extrinsic
motivation to drive human behavior is pervasive in daily life. If you are reading this article because you need
the information to prepare for an exam or to write a paper, you are extrinsically motivated. Extrinsic motivation
is when you’re inspired to perform a task either to earn a reward or to avoid punishment. In the case of extrinsic
motivation, you're not completing the task because you like it or find it satisfying. Instead, you're completing it
because you think you'll avoid something unpleasant or you'll get something in return.

Intrinsic motivation is performing an activity for its enjoyment, while extrinsic motivation is doing something
for a separable outcome or an outside incentive other than enjoyment. Both intrinsic and extrinsic motivation
are important ways of driving behavior.

8. Criticizing the theory of decay

- Definition:
- The decay is the weakening of nodes or links over time in consumer memory. Information is less
available for later retrieval as time passes and memory wears away.
- The theory of decay, or fading theory, is the belief that the inability to recall long-term memories
increases with the passage of time as memory traces face.
- The theory of decay represents that information that is not accessed frequently essentially ‘rusts’ away.
All memories then fade automatically as a function of time.
- The memory will fade if the learning process is not repeated or reinforced. They can refer as a retrieval
failure. Retrieval failure is where the information is in long-term memory, but cannot be accessed. Such
information is said to be available but not accessible because the retrieval cues are not present.
- In conditioned learning, forgetting is often referred to as extinction, since the desired response decays or
dies out if learning is not repeated and reinforced. In cognitive learning, forgetting is often referred to as a
retrieval failure, since the information that is available in LTM cannot be accessed, that is, retrieved from LTM
into STM.
- Two aspects of forgetting that are of concern to marketers are the likelihood of forgetting in any given
situation and the rate of forgetting.
- Consumers forget brands, brand associations, and other information for a variety of reasons. First,
learning may be weak to begin with. Second, information from competing brands and ads may cause memory
interference. Third, the response environment (e.g., the retail store) may not be set up to encourage retrieval of
previously learned information (e.g., from advertising).

Example: sometimes we forget a brand name even though we have just met it.
9. Criticizing the personal core based on demographic and self-concept
Demographics describe a population in terms of its size, structure, and distribution. Population size refers to the
number of individuals in society. Structure describes society in terms of age, income, education, and
occupation. Distribution refers to the physical location of individuals in terms of geographic region and rural,
suburban, and urban location.
Demographics are both a result and a cause of cultural values and it influence consumption behaviors both
directly and by affecting other attributes of individuals, such as their personal values and decision styles.
Example: Sony spent $25 million to target what it calls the “zoomers,” a name that reflects the active
lifestyle of the baby boom generation. One of their ads featured a “grey-haired astronaut filming Earth with his
own camcorder.” The tagline: “When your kids ask where the money went, show them the tape.” Sony credits a
surge in camcorder sales to its renewed focus on this increasingly important segment.
Self-concept is defined as the totality of the individual’s thoughts and feelings having reference to himself or
herself as an object. It is an individual’s perception of and feelings toward him or herself. In other words, your
self-concept is composed of the attitudes you hold toward yourself.
The self-concept can be divided into four basic parts, actual versus ideal, and private versus social. The actual–
ideal distinction refers to the individual’s perception of who I am now (actual self-concept) and who I would
like to be (ideal self-concept). The private self refers to how I am or would like to be to myself (private self
concept), and the social self is how I am seen by others or how I would like to be seen by others (social self-
concept)
Self-concept is important in all cultures. However, those aspects of the self that are most valued and most
influence consumption and other behaviors vary across cultures.
There are two types of self-concepts: independent and interdependent
+ The independent self-concept is based on the predominant Western cultural belief that individuals are
inherently separate.
+ The interdependent self-concept is based more on the common Asian cultural belief in the fundamental
connectedness of human beings.
Example: the consumer purchases shirts having the slogan of Imran Khan’s voluntary organization.
Sometimes the advertising of a product with an affiliation of a celebrity force the consumer to feel the spirit of
the celebrity is available through the brand
10. Criticizing the categories of value
Cultural values are widely held beliefs that affirm what is desirable. These values affect behavior through
norms, which specify an acceptable range of responses to specific situations. Numerous values vary across
cultures and affect consumption. Three broad forms of cultural values are other-oriented values, environment-
oriented values, and self-oriented values. The cultural values that have the most impact on consumer behavior
can be classified in one of these three general categories.
Other-oriented values reflect a society’s view of the appropriate relationships between individuals and groups
within that society. These relationships have a major influence on marketing practice. Other-oriented values
includes: Individual/Collective, Youth/Age, Extended/Limited family, Masculine/Feminine,
Competitive/Cooperative, Diversity/Uniformity.
Example: In services such as health care and hair styling, consumers in Thailand place greater importance on
personal relationships with the service provider than do U.S. consumers. These relationships drive loyalty more
for consumers in Thailand
Environment-oriented values prescribe a society’s relationship to its economic and technical as well as its
physical environment . As a manager, you would develop a very different marketing program for a society that
stressed a problem-solving, risk-taking, performance-oriented approach to its environment than you would for a
fatalistic, security and status-oriented society. Environment-oriented values includes: Cleanliness,
Performance/Status, Tradition/Change, Risk taking/Security, Problem solving/Fatalistic, Nature.
Example: In China, “modernness” (often symbolized by a Western name) is an important product attribute,
particularly among younger, urban Chinese. A recent study found that advertisers in China segment their
advertising depending on the audience. In magazines targeted at younger Chinese (e.g., Elle, Cosmopolitan,
and Sanlian ), modern appeals focusing on technology, fashion, and leisure are used more often.
Self-oriented values reflect the objectives and approaches to life that the individual members of society find
desirable . Again, these values have strong implications for marketing management. Self-oriented values
includes: Active/Passive, Sensual gratification/Abstinence, Material/Nonmaterial, Hard work/Leisure,
Postponed gratification/Immediate gratification, Religious/Secular.
Example: In U.S. cigarette advertisements, it is not uncommon to find sensual models, males and females
holding hands, and couples in intimate situations. In the eastern culture of India, such open display of intimacy
between opposite sexes is not socially acceptable
11. How culture can affect the consumer behavior
Consumers buy products as a way to acquire cultural meanings to use in establishing their self-identities.
Consider the sports fan who buys a team hat or jacket. Major League Baseball Properties, a licensing and
marketing organization, sells authentic jerseys from the New York Yankees (about $175) and the 1919 Chicago
Black Sox ($245) to middle-aged fans who want to identify with their favorite teams, present and past. 36 Or
consumers might buy Ben and Jerry’s Rain Forest Crunch ice cream (made from nuts grown in the Amazon
rain forest) or Tide detergent sold in packages made from recycled materials to acquire the ecological values
represented by these products. People buy such products to move important cultural meanings into themselves
and to communicate those meanings to others. In this sense, consumers can use products to partially create their
self-concept or self-identity.
Americans have a lot of freedom to create different selves through their choices of lifestyles, environments, and
products. Self-construction activity is especially intense during the teenage and young adult years. Young
people try different social roles and self-identities, and often purchase products to gain meanings related to
these roles. Thus, teenage rebellions against parents’ values and lifestyles usually involve the purchase and
consumption of certain products. As most people become more mature with age, their self-concepts become
more stable (sometimes even rigid), and their interest in self-change lessens. Of course, changes, even radical
changes, in self-concept are still possible, but they are increasingly rare. Even so, consumers still use the
cultural meanings in products to maintain and fine-tune their current self-identities.
Although products can transfer useful meanings to consumers, goods cannot provide all the meanings
consumers need to construct healthy self-concepts. People obtain self-relevant meanings from many other
sources, including work, family, religious experiences, and various social activities. Often the meanings gained
through these activities are more self-relevant and more satisfying than those obtained through product
consumption.
Unfortunately, especially in highly developed consumption societies, many people consume products in an
attempt to acquire important life meanings. Some of these consumers may engage in almost pathological levels
of consumption as they desperately purchase products seeking to acquire cultural meanings with which to
construct a satisfactory self-concept. Such consumers can end up heavily in debt and very unsatisfied.
Most people have favorite possessions filled with very important, self-relevant meanings. People have high
levels of involvement with such objects. Researchers have begun to study these cherished objects to understand
consumer–product relationships. 38 For instance, elderly people tend to feel strong attachments to objects such
as photographs or furniture that remind them of past events, whereas younger consumers tend to value objects
that allow them to be active in self-relevant ways (sports or hobby equipment, work-related objects such as
books or computers). Marketers need to understand these consumer–product relationships to develop effective
strategies.
12. Discussing some categories related to culture that impact the consumer behavior
CULTURAL BELIEFS REFLECT CONSUMERS’ NEEDS
Culture expresses and satisfies the needs of societies. It offers order, direction, and guidance for problem
solving by providing “tried-and-true” methods of satisfying physiological, personal, and social needs. For
example, culture provides standards about when to eat (“not between meals”); where to eat (“most likely the
restaurant is busy because the food is good”); what is appropriate to eat for breakfast (pancakes), lunch (a
sandwich), dinner (“something hot and good and healthy”), and snacks (“something with quick energy, but not
too many calories”); and what to serve to guests at a dinner party (“a formal sit-down meal”), at a picnic
(barbecued “franks and burgers”), or at a wedding (champagne). Culture also determines whether a product is a
necessity or discretionary luxury. For example, whereas mobile phones (initially introduced as car phones and
now referred to as cell phones) were once expensive and uncommon, today they are a necessity because fewer
and fewer people have landlines and pay phones are largely extinct.
Culture also dictates which clothes are suitable for different occasions (such as what to wear around the house;
what to wear to school, to work, to church, and to a movie theater; and what to wear at a fast-food restaurant).
Marketers advertise “Back-to-School” clothes and accessories (e.g., backpacks) for children who are returning
to school at the end of the summer vacation.
In recent years, dress codes have changed drastically and most Americans have been dressing casually for
occasions that once required more formal attire. For example, in large cities, only a handful of restaurants and
clubs still require men to wear jackets and ties. With the relaxed dress code in the corporate work environment,
fewer men are wearing dress shirts, ties, and business suits, and fewer women are wearing dresses, suits, and
pantyhose. Instead, employees wear casual slacks, sports shirts and blouses, and even neat jeans and polo/golf
shirts.
Some customs, however, are unlikely to change. For example, soft-drink companies would prefer that
consumers receive their morning “jolts” of caffeine from one of their products, instead of coffee. Because most
Americans do not consider soda a suitable breakfast beverage, soft-drink companies have faced a dual
challenge: “overcoming” culture, as well as the competition among breakfast drinks. Teas, soft drinks, and even
caffeinated water have challenged coffee as the traditional source of morning caffeine—mostly unsuccessfully.
Indeed, coffee is entrenched in our culture not only as a breakfast beverage but also as the core of the “coffee
break.” Wisely, coffee marketers have not relied on their cultural advantage, but have been preempting their
competitors by introducing assortments of gourmet and flavored coffees and also by aggressively targeting
young adults with such exotics as espresso, cappuccino, and café mocha.
When a specific standard no longer satisfies the members of a society or reflects its needs, it is modified or
replaced. For example, once it was unheard of for restaurant servers to pose questions of a personal nature.
Now, we commonly answer servers’ questions about our food allergies and other medical, food-related
limitations. At times, society’s collective interest contradicts an emerging custom. For instance, because most
young Americans are now electronically connected all the time and at almost any place, distracted driving
because of texting or calling on mobile phones is causing more car accidents. The ad in Figure 11.3 is part of a
government initiative to discourage distracted driving.
13. How can cultural values identify the consumption patterns, and why do marketers need to
understand the cultural values
The boundaries that culture sets on behavior are called norms, which are simply rules that specify or prohibit
certain behaviors in specific situations.
 derived from cultural values, or widely held beliefs that affirm what is desirable.
 Violation of cultural norms result in sanctions, or penalties ranging from mild social disapproval to
banishment from the group
 cultural values give rise to norms and associated sanctions, which in turn influence consumption
patterns
 tend to "obey" cultural norms without thinking because to do otherwise would seem unnatural
For example, we are seldom aware of how close we stand to others
Cultural values give rise to norms and associated sanctions, which in turn influence consumption patterns.
Cultures are not static. They typically evolve and change slowly over time
Marketers that wish to expand internationally need to understand a culture's widely held beliefs that affirm what
is desirable. To do this, marketers should study cultural values.
The importance of culture in terms of marketing is big. The world market is made up of smaller markets. The
entire world economy is comprised of smaller economies that are distinct in themselves. These economies have
their own cultures and languages. American economy is distinct from that of India. Indian market is distinct
from the Chinese and the Chinese are distinct from the Japanese. These differences are there because of the
different cultures and cultural styles. A few things that are acceptable in Germany may not be acceptable in the
US market. The kind of fashion loved in US may not be as acceptable in Middle East. These cultural
differences can affect business performance.
Cultural values and social norms impact the way people communicate, think and make decisions. Being aware
of how culture influences different groups of people can help marketers develop content that resonates with
them. Culture marketing can also help brands form positive connections with people around the world.
Effective culture marketing can help you:
 Improve communication with your target audience
 Build rapport with customers and increase brand loyalty
 Identify unique opportunities to innovate your products or services
 Increase revenue, sales and your return on investment (ROI)
 Expand your global reach by tapping into new markets
14. What should you do when you are encountering with culture in the consumer behavior and
marketing context
Cross-Cultural Differences: marketers must consider cross-cultural differences when developing marketing
strategies for foreign markets. Cross-cultural differences do not always coincide with national borders. This is
obvious in many countries where cultural differences among internal social groups are as great as between
separate nations.
- Differences in Consumption Culture. The level of consumption orientation in different markets is an
important cross-cultural factor that companies should consider when developing international marketing
strategies. Obviously, a large part of U.S. culture involves consumption activities. Many other areas of the
world—including Canada, most western European countries, and Japan—also have strong consumer cultures.
In much of the world, however, people have less opportunity to participate in a consumption culture. For
instance, the ordinary citizens of many eastern European countries, the former Soviet Union, China, and most
Third World countries do not have sufficient purchasing power to consume at high levels, nor are these
societies able to produce goods in sufficient number and variety to meet the consumption needs of their people.
- Self-Concept. People in different cultures may have strikingly different concepts of themselves and how they
should relate to other people. Consider the differences between the vision of an independent self typical in
North America and western Europe and the concept of self as highly interrelated with others that is more
common in Japan, India, Africa, South America, and even some southern European cultures.
These cross-cultural differences in self-concept are likely to affect how people in those cultures interpret
product meanings and use products to achieve important ends in their lives. For example, Japanese gift-giving
behavior is strongly affected by the socially oriented self-concept. Especially when they return from trips
abroad, the Japanese feel a rather strong social (cultural) obligation to bring souvenir gifts to the folks back
home.
The meanings of the end values or goals found in means–end research are likely to be quite different in
different cultures, as are the means to achieve them. Consider the value of self-esteem or “satisfaction with
self.” North Americans, for instance, might satisfy selfesteem needs by acting in ways that represent their
independence and autonomy from the group. But for the Japanese, cooperation with a group is an act that
affirms the self. In Japan, giving in to the group is not a sign of weakness (as it might be interpreted in North
America); rather, it reflects tolerance, self-control, flexibility, and maturity, all aspects of a positive selfimage
for most Japanese. In contrast, stating one’s personal position and trying to get one’s way (acts valued in
America as “standing up for what one believes”) may be thought childish and weak by the Japanese.
- Marketing Implications. Marketers must determine which cross-cultural differences are relevant to their
situations. A sensitivity to and tolerance for cross-cultural differences in meaning is a highly desirable trait for
international marketing managers. Most international companies also hire managers from the local culture
because they bring an intimate knowledge of the indigenous cultural meanings to strategic decision making.
15. Define five key dimensions of situational characteristics
Physical features
The term “atmospherics” to describe the internal control and manipulation of environmental cues. The term
“servicescape” to describe the “built environment (i.e., the manmade, physical surroundings as opposed to the
natural or social environment)”.
Physical surroundings are obvious features, such as institutional location, geographical location of the
destination, décor, sounds, light, and the crowdness of the destination, and destination density, which have
important implications for building a business image.
Example: Before visitors make a travel intension, they commonly look for cues about the destination’s quality.
The physical environment is rich in such cues and may be influential in communicating the destination’s image
to visitors.
Social surroundings
The term has been redefined and given broader definition. Social surroundings refer to “the effects of other
people on a consumer in a consumption situation”. Social surroundings have long been considered as an
important influential factor of an individual’s behavior.
Example: People may choose destinations due to friends or relatives’ previous experiences because they would
rather follow the suggestions and opinions of others than make wrong decisions
Temporal perspective
The definition of temporal perspective refers to time, ranging from day to season of the year, and length-of-
time, for instance, the amount of time available may influence boomers’ travel intensions. Customers’ behavior
changes as a result of the time of year, such as seasons, which influence people’s choices of activities.
Example: Travelers’ choice of national parks is highly impact by season and the country’s regional climates.
Task definition
Task definition refers the set of goal a visitors forms to resolve needs deriving from a specific situation. More
formally, it is “the orientation, intent, role, or frame of a person through which certain aspects of the
environment may become relevant. Task definitions as “the reasons that occasion the need for consumers to
buy or consume a product or service”.
Example: People travel to different types of destinations due to different purposes
Antecedent states
Antecedent states refer to momentary conditions or momentary moods. Momentary conditions are such as
people have cash on hand, or they feel fatigued or ill. For instance, before visitors make travel intension
whether they have sufficient funds or they feel fatigued may impact their travel decisions. People may expect
certain salaries or holidays when making decisions; however, unexpected situations may arise to affect their
decision. Besides, researchers find that mood factors influence consumer behavior. Mood factors range from
happiness to negative feelings, such as excitement, pleasure, displeasure, or anxiety. Individuals’ moods can
impact their decision making. A good mood leads to more favorable decision outcomes; however, a bad mood
tends to lead to unfavorable decision outcomes.
16. Criticize the normal, limited, and extended decision making
Nominal decision making
• Nominal decisions are often made about low-cost products. They include frequent purchases, purchases from
a familiar brand or product, buying that requires low involvement, or little search efforts. Referred to as a
habitual decision making. Brand loyal purchase and repeat purchases
• If you’ve been using the same laundry detergent for twelve years, you’re unlikely to spend much time
researching different brands unless you notice a problem with your existing purchase. In other words, you’ll
keep picking up the same bottle without thinking about it.
• Involvement of internal search (LTM) provides a single preferred solution when the problem is recognized.
Limited decision making:
• Limited decision-making is a little more involved than nominal decision-making, but it’s still not a process
that requires in-depth research. Limited decisions are made about mid-cost products, semi-frequent purchases,
or purchases from a somewhat familiar brand. They require a little involvement, and perhaps some searching.
• When customers make limited decisions, they take a small amount of time to ponder over their purchase, but
they might not go online to look for testimonials and reviews. Instead, they could consider their memory of
their product, and make decisions based on logical inferences. Involving of internal and external search, few
alternatives, simple decision rules on a few attributes and little post purchase evaluation
• For instance, you might go to a store with every intention to pick up a particular brand of juice, but when you
arrive you notice that another juice is on offer. Your memory tells you that you enjoyed this juice before, but
found it too expensive for your regular shopping habits, so you decide to make a change for a limited time, and
purchase the alternative juice instead. While the argument could be made that limited decisions come from a
lack of brand loyalty, the truth is that they can be attributed to anything from the novelty of a new product, to a
feeling of boredom with an existing shopping habit.
• Sometimes limited decision making occurs in response to some emotional or situational needs (feeling bored
of current brand)
Extended decision making
• Extended decisions are made about higher-cost products, and infrequent purchases. They require a lot of
involvement, often center around unfamiliar brands or products, and need extended thought and search efforts
to ensure buyer confidence.
• For instance, we don’t buy a huge flat-screen television every day, so when the time comes to make this kind
of investment, we want to know for sure that we’re making the right choice in everything from brand to picture
quality. Major purchases come with more risk for the customer, and that means that there’s more cause to
consider things from a deeper perspective. Rather than grabbing the first television you see, or buying one just
because it’s on sale, you’d generally ask for advice from friends and family, find out as much as you can about
different specifications, and spend a substantial amount of time looking up product reviews and testimonials.
• Extensive internal and external information search followed by a complex evaluation of multiple alternatives
and signification post purchase evaluation
17. Criticizing the consumer decision making process
NEED RECOGNITION
Need recognition occurs when a consumer is faced with a “problem.” There are two types of need recognition.
Some consumers are actual state types, who perceive that they have a problem when a product fails to perform
satisfactorily (e.g., a cell phone that develops constant static). In contrast, other consumers are desired state
types, for whom the desire for something new may trigger the decision process.
INFORMATION SEARCHING AND PROCESSING
Not all buying decisions require the same amount of information, cognitive processing and input from reference
groups and other sources.
When consumers have already established the basic criteria for evaluating a product or service but still need
additional information to understand the differences among brands, they engage in limited problem solving.
This type of decision occurs when consumers purchase updated versions of products they have bought before,
which often have additional features: For example, buying a new laptop computer with multiple input devices,
some of which did not exist previously (e.g., USB Type-C ports).
Consumer involvement is the degree of personal relevance that the product or purchase holds for the consumer.
High-involvement purchases are very important to the consumer, have a high degree of perceived risk, and
result in extensive problem solving; or, if consumers have at least some knowledge about the type of product
they seek, and also a somewhat lower perceived risk, such purchases represent limited problem solving.
Low-involvement purchases are not very important, hold little relevance, have little perceived risk, and are
routinized response behavior.
IDENTIFICATION AND EVALUATION OF ALTERNATIVES
Pre-Purchase Information Search
Pre-purchase search begins when a consumer perceives a need that might be satisfied by the purchase and
consumption of a product. Many consumer decisions are based on a combination of previous experience and
external information.
Sometimes, recalling past purchases provides the consumer with adequate information to make the present
choice. However, when the consumer has had no prior experience, he or she may have to engage in an
extensive search for useful information on which to base a choice.
Consumers search their memory—their past experiences—before seeking information from other sources. The
greater the relevant past experience, the less external information the consumer is likely to need to reach a
decision. Low-involvement purchases are not very important, hold little relevance, have little perceived risk,
and are routinized response behavior.
The act of shopping is an important form of external information. Whereas most men do not like to shop, most
women claim to like the experience of shopping, finding it to be relaxing and enjoyable. In addition, it has
become common practice for consumers to seek the opinions of their friends while shopping. The shopping
selfie is another way that consumers seek information while shopping.
Evaluation of Purchase Alternatives
The evaluation of purchase alternatives follows the information search stage. The evoked set (consideration set)
refers to the specific brands (or models) a consumer considers in making a purchase within a particular product
category. The inept set consists of brands (or models) that the consumer excludes from purchase consideration
because they are unacceptable or seen as inferior. The inert set consists of brands (or models) the consumer is
indifferent toward because they are perceived as not having any particular advantages. Regardless of the total
number of brands (or models) in a product category, a consumer’s evoked set tends to be quite small on
average, often consisting of only three to five brands or models.
Research also suggests that the use of white space and choice of typeface in advertisements may influence the
consumer’s image of the product. It has also been suggested that consumers may not, all at once, incorporate
the entire number of possible choices into their evoked set, but instead may make several decisions within a
single decision process. Consumers screen their options and eliminate unsuitable alternatives before they start
the information search process, which makes reaching a final decision more manageable.
We have probably all had the experience of comparing or evaluating different brands or models of a product
and finding the one that feels, looks, and/or performs “just right.” Interestingly, research shows that when
consumers discuss such “right” products, there is little or no mention of price; items often reflect personality
characteristics or childhood experiences; and it is often “love at first sight.” In one study, the products that
consumers claimed to “just feel right” included old leather briefcases, Post-it notes, and the Honda Accord.13
Research has explored the influence of brand credibility (which consists of trustworthiness and expertise) on
brand choice, and has found that it improves the chances that a brand will be included in the consumer’s evoked
set.
PURCHASE DECISION
Compensatory decision rules come into play when a consumer evaluates brand or model options in terms of
each relevant attribute and computes a weighted or summated score for each brand. The assumption is that the
consumer will select the brand that scores highest among the alternatives evaluated.
In contrast, noncompensatory decision rules do not allow consumers to balance positive evaluations of a brand
on one attribute against a negative evaluation on some other attribute. There are three types of
noncompensatory rules. In following a conjunctive decision rule, the consumer establishes a separate,
minimally acceptable level as a cutoff point for each attribute. Because the conjunctive rule can result in several
acceptable alternatives, it becomes necessary in such cases for the consumer to apply an additional decision rule
to arrive at a final selection (for example, accepting the first satisfactory brand). The conjunctive rule is
particularly useful in quickly reducing the number of alternatives to be considered. The consumer can then
apply another, more refined decision rule to arrive at a final choice.
In following a lexicographic decision rule, the consumer first ranks the attributes in terms of perceived
relevance or importance. The consumer then compares the various alternatives in terms of the single attribute
that is considered most important. If one option scores sufficiently high on this top-ranked attribute (regardless
of the score on any of other attributes), it is selected and the process ends. When there are two or more
surviving alternatives, the process is repeated with the second highest-ranked attribute (and so on), until the
consumer reaches the point that one of the options is selected because it exceeds the others on a particular
attribute.
We have considered only the basic consumer decision rules. Most of the decision rules described here can be
combined to form new variations.
POST-PURCHASE BEHAVIOR
The output portion of the consumer decision-making model as well as the consumer journey consists of
purchase behaviors, consuming the product and post-purchase evaluation of the purchases.
Cognitive dissonance occurs when a consumer holds conflicting thoughts about a belief or an attitude object.
For instance, after consumers have made a commitment to buy an important and pricy object—for example,
made a down payment on a new house or an expensive car—they often begin to feel cognitive dissonance when
they think of the unique, positive qualities of the alternatives not selected (“left behind”). When cognitive
dissonance occurs after a purchase, it is called post-purchase dissonance. Because expensive and important
purchases require compromise and choice among similar alternatives (e.g., similar homes in the same
community), post-purchase dissonance in such instances commonly occurs, and leaves consumers with an
uneasy feeling about their behavior (the purchase decision).
Still further, post-purchase evaluation occurs after consumers have used the product, and in the context of their
expectations. When a product’s performance matches expectations, consumers feel neutral. Positive
disconfirmation of expectations occurs when the product’s performance exceeds expectations and the consumer
is satisfied. Negative disconfirmation of expectations occurs when performance is below expectations and the
consumer is dissatisfied.
18. Discussing the nature of problem recognition
Need recognition: the first step in the consumer decision-making process occurring when the consumer
identifies and faces a “problem” that can be solved by buying a product or service. For instance, take a young
executive who decides to purchase a new cell phone with a high-quality digital camera.
She imagines that she would benefit from having a high-quality digital camera built into her phone because it
would make it easier and more convenient to take more vivid and realistic photos without having to lug around
a separate digital camera. This executive has recognized a need and identified a suitable response. There are
two types of need recognition. Some consumers are actual state types, who perceive that they have a problem
when a product fails to perform satisfactorily (e.g., a cell phone that develops constant static). In contrast, other
consumers are desired state types, for whom the desire for something new may trigger the decision process.
Need recognition is the beginning of the traditional consumer decision-making process as well as the new
consumer journey model.
The model includes three components: (1) input; (2) process, which includes need recognition, decision
spectrum, pre-purchase information search, evaluation of purchase alternatives, and decision rules; and (3)
output. The consumer journey can also be placed in stages of input, process, and output.
Need Recognition  Type of Decision  Pre-Purchase Information Search  Evaluation of Purchase
Alternatives
Consumer Decision-Making includes three components: (1) input; (2) process, which includes need
recognition, decision spectrum, pre-purchase information search, evaluation of purchase alternatives, and
decision rules; and (3) output.
(2) process (e.g., need recognition, information search, evaluation, and decision rules);
19. What happens if a consumer is dissatisfaction about the products?
Negative disconfirmation of expectations occurs when performance is below expectations and the consumer is
dissatisfied. This situation is thought to lead to dissatisfaction. For example, if the consumer perceived the Dell
computer to be far inferior to an Apple after using it, she or he would be negatively disconfirmed and,
according to the theory, would be dissatisfied. Example: a customer whose experience falls below expectations
(e.g., a limited wine list at an expensive restaurant or cold fries served at a McDonald’s) will be dissatisfied.
Additionally, most unhappy buyers share their dissatisfaction with other consumers, dissuading them from
dealing with aggressive salespeople. Highly dissatisfied customers spread negative and often exaggerated word-
of-mouth.
Another possibility is that a consumer is dissatisfied with his or her current brand of laundry detergent. On the
next trip to the grocery store, the consumer inspects other brands and selects one that promises to get white
clothes whiter. In this example, a change in affect and cognition (dissatisfaction) led to a change in the
consumer’s environment (inspecting other brands), which led to a change in behavior (purchase of a different
brand).