Professional Documents
Culture Documents
CHAPTER 4
CONSUMER BEHAVIOUR
CHAPTER OVERVIEW
Why do people buy one product over another? Finding answers to this question is at the centre of
every marketer’s job. The answers—and there are many—aren’t always obvious. But they directly
affect every aspect of marketing strategy, from the development of a product to its pricing, its
presentation to the target audience, and its promotion to various segments.
Marketers who plan to succeed with today’s consumers need to understand how their potential
market behaves. This calls for an understanding of consumer behaviour—the process through
which consumers (and business buyers) make purchase decisions, from toothbrushes to autos to
vacations. The study of consumer behaviour builds on an understanding of human behaviour in
general. In their efforts to understand why and how consumers make buying decisions, marketers
borrow extensively from the sciences of psychology and sociology.
This chapter focuses on individual purchasing behaviour, including the personal and interpersonal
determinants of consumer behaviour. The chapter then discusses the importance of changing or
modifying components of consumers’ attitudes about their products to gain a favourable attitude
and purchase decision. It then elaborates on the consumer decision process that helps marketers
to design effective marketing strategies. Chapter 5 will shift the focus to business buying decisions.
• The Opening Vignette and Connecting with Customers look at how consumer shopping
habits are changing. It features researchers like Paco Underhill, an author and the founder
of Envirosell and the companies TNS and Delvinia. These companies help clients
understand the consumer behaviour of retailers by analyzing the videotapes of shoppers’
actions to draw conclusions. Underhill’s favourite project involves assessing the
effectiveness of signage in retail stores. It also discusses how the internet, Facebook, and
Twitter are affecting how consumers gather information.
• Solving an Ethical Controversy analyzes the issue of how Facebook handles the privacy
of its users. The pros and cons of how Facebook explains changes in privacy settings, the
privacy options available, and the true intent of the privacy changes are debated.
• Marketing and the SME takes a look at how to market successful brands in the Quebec
market. Headspace, a Toronto-based marketing firm, works with companies like Weston
Bakeries and Sleep Country Canada. In some cases, existing marketing campaigns can be
used in Quebec. In other situations, an existing campaign may need to be adapted or an
entirely new approach is needed.
• Go Green discusses the work of the Sierra Club of Canada—an environmental organization
whose aim is to “empower people to protect, restore and enjoy a healthy and safe planet.”
The Sierra Club has projects where they work alone and others where they team up with
organizations like the RBC Foundation or Frito Lay Canada.
• Marketing in a Digital World takes a look at how the successful online magazine GLAM
was developed. Bringing together experts from network design, graphic design, Web design
publishing, and media, the company was able to develop a magazine-like website that has
been successful throughout the world.
• Chapter Case 4.1 “How Colour Is Used in Marketing” discusses what marketers evaluate
when deciding on what colours to use in their advertising, packaging, and branding. The
case discusses how people react to different colours and how colours have different
meanings depending on the culture.
LECTURE OUTLINE
The Opening Vignette and Connecting with Customers—“Are Our Shopping Habits Changing?” How can
the retail world adapt to the drastic change it is undergoing? What steps should companies take in order to
take advantage of social media?
Chapter Objective 1: Define “consumer behaviour” and describe the role it plays in marketing
decisions.
Key Terms: consumer behaviour
PowerPoint Basic: 1,3, 4
PowerPoint Expanded: 1 – 4
1. Consumer behaviour
2. Describe the work Kurt Lewin. Kurt Lewin proposed that behaviour is a
function of the interactions of personal influences and pressures exerted by
outside environmental.
Chapter Objective 3: Explain each of the personal determinants of consumer behaviour: needs and
motives, perceptions, attitudes, learning, and self-concept theory.
Key Terms: need, motive, perception, perceptual screens, attitudes, learning, shaping, self-concept
PowerPoint Basic: 23, 25, 26, 28, 31, 33
PowerPoint Expanded: 23-33
1. Personal determinants of consumer behaviour
a. Consumer behaviour is affected by a number of internal factors,
as well as interpersonal ones.
b. Every buying decision is connected to a person’s unique needs,
motives, perceptions, attitudes, responses, and self-concepts.
2. Needs and motives
a. A need is an imbalance between the consumer’s actual and
desired states.
i. Someone who recognizes or feels a significant or urgent
need then seeks to correct the imbalance.
ii. Marketers arouse this sense of urgency by making a
need “felt” and suggesting a product to satisfy it.
b. Motives are inner states that direct a person toward the goal of
satisfying a need and that prompt some action.
Table 4.1 Marketing
3. Maslow’s hierarchy of needs
Strategies Based on
Maslow’s Hierarchy of a. Psychologist Abraham H. Maslow identified five levels of needs,
Needs. For each level, ranging from simple physiological needs to complex needs for
think of several self-actualization.
1. List the steps in the consumer decision process. The steps in the consumer
decision process are problem or opportunity recognition, search, evaluation of
alternatives, purchase decision, purchase act, and post-purchase evaluation.
2. What is meant by the term “evoked set”? The evoked set is the number of
alternatives that a consumer actually considers in making a purchase decision.
3. What are evaluative criteria? Evaluation criteria are the features that a
consumer considers in choosing among alternatives.
Chapter Objective 6: Differentiate among routinized response behaviour, limited problem solving,
and extended problem solving by consumers.
Key Terms: routinized response behaviour, limited problem solving, extended problem solving
PowerPoint Basic: 41
PowerPoint Expanded: 41
1. Classifying consumer problem-solving processes
2. What does limited problem solving require? Limited problem solving requires
a moderate amount of a consumer’s time and effort.
1. Choose a person whom you believe to be a true opinion leader. It might be a media celebrity,
political leader, sports figure, or someone in another category entirely. Research ways in which the
person has possibly shaped consumer attitudes toward various goods and services. Present your
findings in class.
Ask your students to choose an opinion leader. He/she should state reasons why that person is an
opinion leader. The goods, services, and products endorsed by the leader, if any, have to be listed
(celebrities may feature in a few ads, whereas business icons or political leaders are not involved in
such endorsements). Finally, the student must present how the opinion leader has shaped
consumer attitudes toward various products.
2. Consider your own participation in family purchases. How much influence did you have on your
family’s decisions as a child? As a teenager? Over what types of products did you have an
influence—or not? Has this influence changed over time? Why or why not? Compare your
answers with those of classmates.
Ask your students to share their ideas about family purchases and who has influenced them over
the years and today. If they’re stuck, suggest to students that they might start by making a list of
family members, without even thinking of purchases. These can be people in the immediate
family as well as extended family. Then, next to each name, write a product or service that they
associate with that person. This could be a clue as to how that person might affect their own
purchasing behaviour. Have them discuss how these decisions change over time as they grow
up, move out of the family home, start their own households, etc. Are there certain elements
(attitudes, beliefs, family values, etc.) that affected them when they were young but no longer do
so today? Are there some that affect them even now? Are there family elements that they feel
may continue to influence their thinking and purchasing decisions in years to come, and probably
won’t change much over time, regardless of their stage of life?
3. One major trend in consumer spending that is likely to last for the next several years is a
focus on value. “The Dollar Stores of the world are winning,” notes Envirosell’s Paco
Underhill. While consumers search for bargains, manufacturers and retailers of luxury goods
are struggling to change consumer attitudes toward their products. On your own or with a
classmate, choose one of the following luxury brands (or select one of your own) and create
an advertisement for the product that seeks to change consumer attitudes about your
product.
a. Mercedes-Benz car
b. Louis Vuitton leather goods
c. Tiffany jewellery
d. Four Seasons Hotels and Resorts
Student answers may vary. They can work individually or in groups. As we know that marketers can
modify attitudes by providing evidence of product benefits, by correcting misconceptions, and by
engaging buyers in new behaviour; students are expected to make advertisements that would try
and change the cognitive or affective components of buyer’s attitude.
4. Consider a purchase decision involving one of the following types of products: a tablet computer,
a smartphone, or a vacation. Develop an evoked set of three alternatives for your purchase
decision. Then create a list of evaluative criteria that you would use to choose among the
alternatives. Research your alternatives in more —online, at a store, at a friend’s apartment, and so
on. Finally, make your purchase decision. Describe to the class how you made your decision—and
why.
Student answers will vary according to the products that they choose. The alternatives of the
product would vary according to the products they choose. However, students should be able to
develop an envoked set. Students can use a variety of methods to research alternatives. The
methods would depend on the type of product chosen. Finally, they should able to provide reasons
why a particular product was preferred over an alternative product.
5. Choose a partner and select a low-involvement, routinized consumer product such as toothpaste
or detergent. Create an ad that you think could stimulate consumers to change their preferred brand
to yours.
A low-involvement, routinized consumer product like toothpaste or detergent involves a regular and
routine purchase decision. A consumer makes many routine purchases by choosing a preferred
brand or one of a few acceptable brands in a quick method called routinized response behaviour.
The consumer has already set evaluative criteria and identified options, so any further external
search is limited. It’s most common in buying very low-involvement products like those mentioned—
toothpaste or detergent. Have students discuss their ideas about how consumers might change
from their preferred brand. They’ll need to remember that consumers won’t take much time to weigh
this decision, so they’ll need to get attention quickly. They might include visual merchandising, new
design or packaging, unusual colouring, signage indicating a sale, etc.
Critical-Thinking Exercises
1. Describe a group to which you belong—it might be a team or a club. Outline the norms of the
group, the major roles that different members play, and your own status within the group. Have you
ever sought to change your status? Why or why not?
Student answers may vary. Norms are the values, attitudes, and behaviours a group deems
appropriate for its members. Group members are expected to comply with these norms. They must
define the group norms on these lines.
2. What are the two conditions that must exist for a consumer to be influenced by a reference
group? Have you ever made a purchase based on reference group influence? If so, what was the
purchase and how did you come to the decision to make it? If not, why not?
Student opinions will vary. Strong influence by a group on a consumer’s purchase requires two
conditions:
1. The purchased product must be one that others can see and identify.
2. The purchased item must be conspicuous; it must stand out as something unusual, a
brand or product that not everyone owns.
3. Marketers point out that the five levels in Maslow’s hierarchy of needs are sometimes combined
or even bypassed by consumers making purchase decisions. Explain how each of the following
could fulfill more than one need:
a. A download of “We Are the World”
b. A retirement investment account
c. Body wash
d. Dinner at a restaurant
Students are expected to give answers based on the five levels of needs and provide sufficient
information that can defend their answers. A short discussion between groups can benefit the
students to point out different perspectives on Maslow’s theory, as well as the consumer decision
process for each product/service.
4. What are some of the ways marketers can break through consumers’ perceptual screens? If you
were a marketer for a line of pet food for cats and dogs, what method might you use?
Doubling the size of an ad, using certain colours or graphics, or developing unique packaging are
some techniques that marketers use to elicit a positive response from consumers. Word of mouth or
use of high-tech marketing tools and social media can help marketers break through the perceptual
screens of the consumer. The students are expected to take support of these hints and present
ideas that they would use for a line of pet foods, and break through the consumer’s perceptual
screens.
5. Suppose you are employed by a large electronics retailer, and a customer comes to you with
cognitive dissonance over the purchase of an expensive computer system from your store the
previous week. How would you work with the customer to help dispel that dissonance?
Dissonance is likely to increase (1) as the dollar value of purchase increases, (2) when the rejected
alternatives have desirable features that the chosen alternatives do not provide, and (3) when the
purchase decision has a major effect on the buyer.
Marketers may help reduce cognitive dissonance by providing information that supports the chosen
item or by using advertisements that stress customer satisfaction. The consumer may decide to
change products and vow to purchase the rejected item next time. The consumer may focus on the
item’s good points and ignore anything dissatisfactory.
The students should keep the above stated points in mind while dealing with the consumers and
helping them to dispel their dissonance.
Ethics Exercises
Marketers of online news content are struggling to change consumer attitudes about whether it is
fair to charge for this content. While consumers are already willing to pay for movies, music, and
games, they don’t want to pay for news—whether it is from online versions of newspapers and
magazines or online feeds of radio and talk shows. “Much of their content has basically become a
commodity, readily available elsewhere for free,” notes a Nielsen study. Yet these news formats are
created by professionals and can be expensive to produce.
1. Express your own view. Is it ethical for marketers of online news content to begin charging
consumers for their services? If so, under what circumstances? If not, why not?
2. Go online to research different news sources—those that are free (such as the headlines offered
on Yahoo!) and those for which there is a charge (such as an online magazine or newspaper
subscriptions). Is there a difference in features or the extent of services offered?
3. Based on your research and your knowledge of consumer behaviour, what steps do you think
news marketers might take to change consumer attitudes about whether news should be offered for
free?
Student answers will vary. Ask the students to first understand the point of view of consumers as
well as marketers. By taking an overall view of the situation, they may come up with reasons stating
why charging for online content is ethical or unethical. Students can also state situations and
instances when charging for content can be considered ethical.
Internet Exercises
1. Marketing to children. Advertising and other marketing efforts directed toward children have
long been controversial. Visit the website of Concerned Children’s Advertisers (www.cca-kids.ca),
an organization created by companies that have products aimed at children to address issues
associated with marketing to children. What is the purpose of CAA? What are the major issues
regarding marketing to children? What have been some of its recent actions? Why have some
prominent marketers, such as The Coca-Cola Company, decided to end advertising aimed at
children? What are some of the issues related to marketing to children through the internet? In your
opinion, can industry self-regulation ever be an effective substitute for government regulation?
Student answers will vary. They should visit the website, as well as study the various issues
regarding marketing to children on the Internet. To bring a different perspective, students can find
out the ways marketers are trying to ensure self-regulation that minimize or eliminate controversial
messages.
2. Consumer decision making. Assume you’re in the market for both a new cell phone and cell
phone provider. Follow the beginning stages in the consumer decision process model shown in the
text (problem or opportunity recognition, search, and evaluation of alternatives). Use the Internet to
aid in your consumer decision process. Prepare a report summarizing your experience. Compare
and contrast your experience with an actual consumer purchase decision you recently made.
Student answers will vary. Student answers can focus on a particular problem or a need they
identify and searching for information on this particular problem, and for service providers who
satisfy this need. They should be able to come up with alternatives and narrow down to the best
possible alternative. Students should keep in mind the personal and interpersonal determinants
during this decision process.
3. Marketing strategies and Maslow’s Hierarchy of Needs. Visit the websites listed here. Review
the marketing strategies shown on each site. Which level of Maslow’s hierarchy of needs does each
site emphasize? Be prepared to defend your answers.
http://www.michelin.ca
http://www.starbucks.com
http://shop.holtrenfrew.com
http://www.carnival.com
http://www.unilever.com
Student answers will vary. They can visit these websites and analyze the offering, product,
message, and theme provided by the company. Their answers must defend their opinions. A
discussion on classification of products as per the hierarchy of needs will assist students about the
marketing strategies.
1. Choose one of the following companies. What colours does it use predominantly in its logo or
packaging? How do these colours affect the perception of its products?
a. Boston Pizza
b. Microsoft
c. Mountain Equipment Co-op
d. Starbucks
Students should be able to answer the two questions appropriately. They should go through the
case and understand the importance of colours in marketing. The basic purpose of using the colour
combinations by these big brands must be clearly understood by them. The consumer perception
based on the colours should be described in detail.
2. Should a global firm like McDonald’s or General Mills change the colours of its logo or packaging
depending on the country in which it is marketing? Why or why not? How might this affect consumer
attitudes toward the company and its products?
Student answers may vary. They must be able to give reasons for their answers. The answers may
be based on the following: (1) Understanding the psychology of colour—the way it can be used to
affect perception and shape consumer attitudes toward goods and services—is an important tool for
marketers. (2) To break through consumers’ perceptual screens so they are attracted to the
products being offered, marketers need to understand how colour is perceived in order to use it
effectively.
1. What factors are involved in your decisions about where and what to eat? Is this usually a high-
involvement or low-involvement decision? Where do you eat most often? Why?
The students might identify factors like culture or who they are going to be with when they eat out -
family or friends. Most will identify this decision as low-involvement.
2. Do you think McDonald’s is making a good marketing decision to adapt its products and
promotional techniques to changing consumer behaviour? Why or why not?
Student answer may vary. They should be asked to support their answers. There is usually a
general discussion around culture and different eating habits.
3. Do you think McDonald’s has done enough to deal with obesity in children? Why or why not?
This question may provide some lively discussion around whether the students think companies like
McDonald’s are responsible for the problem. Some might feel that parents should be responsible for
what their children eat others may argue that if McDonald’s provided more healthy choices and did
less advertising the problem may not be so severe.
1. Name the top influences on consumers' decisions to buy cars at Scholfield Honda.
According to the video, the following factors influence customer purchases at Scholfield Honda:
positive recommendations from friends and family members, prior ownership of Honda vehicles,
desire to drive more environmentally friendly cars, Honda's reputation for quality and fuel efficiency,
the dealership's friendly sales associates, and clean showroom environment.
2. Go to http://www.honda.com and view the different Hondas to select the car you would be most
likely to purchase. Carefully consider all the determinants discussed in the chapter and their impact
on your decision.
Answers will vary. However, students should be able to assess their own needs and motives for
selecting a vehicle. Additionally, they should be able to associate their buyer motives with various
interpersonal determinants of consumer behaviour (cultural, social, and family influences) and
personal determinants of consumer behaviour (needs and motives, perception, attitudes, learning,
and self-concept).
Purpose:
To introduce the topic of consumer behaviour
Background:
As a broad subject that draws from multiple disciplines, consumer behaviour can seem
impenetrable to some students. This exercise is designed to introduce the topic in a fun,
personal way, setting the tone for the rest of the chapter.
Relationship to Text:
Chapter Overview
Preparation/Materials:
None needed
Exercise:
Several years ago, a large manufacturer of ice cream commissioned a study to determine
how ice cream flavour preferences relate to personality. The study, conducted by Dr. Alan
Hirsch, neurological director of the Smell and Taste Treatment and Research Foundation,
determined that distinct personality traits correspond with a preference for certain ice cream
flavours.
Is this for real? Apparently it is, according to Dr. Hirsch. The researchers examined
personality profiles for a significant cross-section of people, and then correlated the results
with each person’s ice-cream-flavour preference. Just for fun, ask your students to choose
their favourite flavour from the following options: vanilla, chocolate, butter pecan, banana,
strawberry, and chocolate chip. Ask for a show of hands regarding how many prefer each
flavour, and write the results on the board. Then share the following summarized profiles:
• Vanilla: You are a flamboyant, impulsive risk-taker with close family relationships.
• Chocolate: You are lively and flirtatious, the life of the party, but you do get easily
bored.
• Butter Pecan: You are a take-charge perfectionist with very high standards and
strong integrity.
• Banana: You are kind, empathetic, understanding, generous, and easygoing—an
excellent spouse or parent.
• Strawberry: You are shy, skeptical, and detail-oriented, and you tend to be
pessimistic.
• Chocolate Chip: You are success-driven, competitive, and achievement oriented but
also generous and charming.
Interestingly, when the ice cream manufacturer published their “flavourology” report, they
gave the personality profiles a more positive spin, leaving out potentially problematic
descriptions such as being pessimistic or flirtatious. A company spokesperson explained:
“We are in the ice cream business to make people happy. This is supposed to be fun, not
upsetting.” Also, Dr. Hirsch noted that while the correlations were scientifically reliable, he
could not account for the reasons behind them. So you can assume that switching favourite
flavours won’t change your personality.
• How could a marketer capitalize on a link between personality and product preference?
• Do you think this type of research is a worthwhile investment? Why or why not?
Sources: Wolf, Buck, “You Are What You Eat for Dessert,” ABC News; “You Are Your Ice Cream,
ABC News; “The Ice Cream Flavor Personality and Compatibility Test,”
www.angelfire.com/ga/sweetgeorgiapeach/icecream.html, accessed 12/18/06
Purpose:
To help students explore their perceptions of cultural values
Background:
Culture clearly influences consumer behaviour in both obvious and subtle ways, but
students need to understand the elements of culture in order to appreciate its true impact.
This exercise is designed to help students focus on their perceptions of core values in
Canadian culture.
Relationship to Text:
Core Values in Canadian Culture
Preparation/Materials:
Whiteboard and marker
Exercise:
Spend a few moments reviewing with your class the idea of core values. Once they fully
understand the concept, divide your students into small groups and give each group a few
minutes to quickly brainstorm a list of core values in Canadian culture (and tell them to base
their list on their own perceptions, not to copy from the book). When their lists are complete,
ask them to prioritize their values from most important to least important.
Then reconvene as a class and ask a representative from each group to share each list. As
the volunteers read the values, determine (via a show of hands) whether all the other groups
included each item, and track the results on the board in three categories: values that all
groups have included, values that a few have included, and values that only one group
included.
The three lists will spark an interesting discussion. What values seem to be universal (at
least among the small sample size)? Why isn’t there more complete agreement among the
groups? Most classes will quickly determine that microculture, age, life experience, and
social class all play a role in the differing perceptions.
Purpose:
To highlight the importance of opinion leaders in consumer behaviour
Background:
The world of blogs has offered a new opportunity for opinion leaders in a wide range of
areas to share their information, thoughts, and (of course) opinions on every issue
imaginable. This discussion-based exercise is designed to underscore the marketing
implications and the accompanying ethical issues related to opinions.
Relationship to Text:
Opinion Leaders
Preparation/Materials:
None needed
Exercise:
Depending on your class, you may want to begin by defining blogs. The word is a shortened
form of “Web log” and essentially refers to web diaries or journals, typically hosted by very
opinionated individuals with intense interest in a narrow topic. Over the past several years,
blogs have exploded in terms of influence and popularity. You may want to begin by
surveying the class about blogs. Do any of students read blogs? Which ones? Why? Do any
students write blogs? On what topics?
Next, share with your class the interesting story of Raging Cow. In early 2003, Dr.
Pepper/7Up began rolling out Raging Cow, a new flavoured-milk product. Part of their
strategy was to create a blog written (ostensibly) by the Cow herself. But more importantly,
Dr. Pepper/7UP hired a team of teenaged bloggers to promote the product as stealth
marketers. Their job was to talk positively about the product—undercover—in their own
blogs. The publicity backlash against this tactic (also used by other companies such as
Nokia) has been intense.
What does your class think? Why are marketers using this tactic? Is this smart marketing or
is it sleazy? Does it undermine the integrity of the Web? Does it make consumers think
differently about “innocent” postings in their own Web communities? Is there a better way to
use blogs for marketing? The discussion potential on this topic is rich.
Sources: Grossman, Lev, “Meet Joe Blog,” Time, June 21, 2004; Walker, Rob, “Blogging for Milk,”
Slate Magazine, www.slate.com, April 14th, 2003
Purpose:
To emphasize the role of attitudes in consumer behaviour
Background:
While everyone knows what it means to “have an attitude,” the marketing implications are
less apparent for many students. This exercise is designed to clarify the relationship
between attitudes and consumer behaviour.
Relationship to Text:
Attitudes
Preparation/Materials:
Students will need blank paper and pens or pencils (ideally coloured markers)
Exercise:
Remind your class of the three components of attitude: cognitive, affective, and behavioural.
Then divide your students into small groups. Challenge each group to develop three one-
page print ads promoting bubble gum, each ad appealing to a different component of
attitude (headline and visual are usually sufficient). After 10 minutes, ask the groups to
present their ads to the class. The results are typically innovative; the ideas are terrific.
When the presentations are complete, ask the class to vote on which appeal was the most
effective in marketing bubble gum. Why? What role did creativity play in their responses
(versus the type of appeal)?
Purpose:
To illustrate the close links between who we are and how we consume
Background:
The study of consumer behaviour suggests that many of our purchases reflect recognizable
elements of who we are in terms of gender, personality, individual style, hobbies, etc. This
exercise is designed to highlight those links.
Relationship to Text:
Self-concept
Preparation/Materials:
Each student will need paper and a pen or pencil.
Exercise:
Direct your students to think for a moment about goods or services that they particularly
enjoy in any category, from shoes to bands, cars, and restaurants. Ask them to write down
their five favourites, including the brand name (e.g., Nike running shoes), without writing
their own names on the papers. Collect the papers, leaf through them, and choose a few
papers that include an assortment of high-profile brands. Read the papers out loud to your
class, and after each one, ask your class to describe the student who wrote it. (You may
want to warn the students in advance not to identify themselves until the rest of the class
has a chance to guess.) Usually the writers of the papers choose to identify themselves,
and—with some notable exceptions—the profiles guessed by the class, based on the
product choices, are astonishingly accurate. Discussion is often spontaneous, but if not, you
may want to ask how marketers can capitalize on the links between who people are and
what they choose to purchase.