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5-2 General Hierarchy of Motivation 86 5-5 Differences in Emotional Behavior 94
5-2a Simpler Classification of Consumer Motivations 87 5-5a Emotional Involvement 95
5-2b Consumer Involvement 87 5-5b Emotional Expressiveness 96
5-3 Consumer Emotions and Value 89 5-5c Emotional Intelligence 96
5-5d What’s Funny 97
5-3a Emotion 89
5-3b Cognitive Appraisal Theory 90 5-6 Emotion, Meaning, and Schema-Based
5-3c Emotion Terminology 91 Affect 97
5-6a Semantic Wiring 97
5-4 Measuring Emotion 92
5-6b Mood-Congruent Recall 97
5-4a Autonomic Measures 92
5-6c Nostalgia 98
5-4b Self-Report Measures 92
5-6d Schema-Based Affect 98
5-6e Self-Conscious Emotions 99
5-6f Emotional Contagion 100

6
Personality,
Lifestyles, and the
Self-Concept 103
6-1 Personality and Consumer Behavior 103
6-1a Psychoanalytic Approach to Personality 104
6-1b Trait Approach to Personality 105 © iStockphoto.com/berekin

6-2 Major Traits Examined

in Consumer Research
6-2a Many Traits Examined in CB
6-2b Brand Personality 111
6-3 Consumer Lifestyles, Psychographics,
and Demographics 113
6-3a Lifestyles 113
6-3b Psychographics 113
6-3c Demographics 115
6-4 The Role of Self-Concept in
106
Consumer Behavior 116
106
6-4a Self-Concept and Body Presentation 117
6-5 Self-Congruency Theory and
Consumer Behavior 118
6-5a Segmentation
and Self-Congruency 118

7
Attitudes and Attitude
Change 121
7-1 Attitudes and Attitude Components 121
7-1a Components of Attitude 122
7-2 Functions of Attitudes 122
7-2a Utilitarian Function 122
7-2b Knowledge Function 123
7-2c Value-Expressive Function 123
7-2d Ego-Defensive Function 123 © kurhan/Shutterstock.com

Co n t e n t s vii
7-3 Hierarchy of Effects 123 7-5d The Elaboration Likelihood Model 132
7-3a High-Involvement Hierarchy 124 7-5e Balance Theory 134
7-3b Low-Involvement Hierarchy 124 7-5f Social Judgment Theory 135
7-3c Experiential Hierarchy 125 7-6 Message and Source Effects
7-3d Behavioral Influence Hierarchy 125 and Persuasion 136
7-4 Consumer Attitude Models 125 7-6a Interactive Communications 136
7-4a Attitude-Toward-the-Object Model 125 7-6b Message Appeal 137
7-4b Behavioral Intentions Model 128 7-6c Message Construction 138
7-6d Source Effects 139
7-5 Attitude Change Theories and Persuasion 130
Part 2 Cases 142
7-5a Attitude-Toward-the-Object Approach 131
7-5b Behavioral Influence Approach 132
7-5c Changing Schema-Based Affect 132

external influences part 3

8-4 Social Media’s Role in Group
© Monkey Business Images/Shutterstock.com

and Interpersonal Influence 154

8-4a Social Media and Consumer Behavior 154
8-4b Individual Differences in Susceptibility to Group
Influence 156
8-5 Word-of-Mouth and Consumer Behavior 157
8-5a Positive and Negative WOM 158
8-5b Buzz Marketing 159
8-5c Stealth Marketing 160

8
8-5d Opinion Leaders 161
8-5e Diffusion Processes 161
8-6 Household Decision Making and
Consumer Behavior 162
8-6a Traditional Family Structure 162

Group and Interpersonal 8-6b Household Life Cycle 164

8-6c Household Purchase Roles 165
Influence 147

9
8-1 Reference Groups 147
8-1a Group Influence 148
8-1b Conformity 149
8-2 Social Power 150
8-2a Types of Social Power 150
Consumer Culture 169
8-3 Reference Group Influence 151
8-3a Informational Influence 151 9-1 Culture and Meaning Are Inseparable 169
8-3b Utilitarian Influence 152 9-1a What Is Culture? 169
8-3c Value-Expressive Influence 152 9-1b Culture, Meaning, and Value 170
8-3d Value and Reference Groups 153 9-1c Cultural Norms 171
8-3e Reference Group Influence on Product Selection 153 9-1d Cultural Sanctions 171

viii C on ten ts
9-2 Using Core Societal Values 172 9-4 Fundamental Elements
9-2a Where Does Culture Come From? 172 of Communication 182
9-2b Dimensions of Cultural Values 173 9-4a Verbal Communication 182
9-2c The CSV Scoreboard 176 9-4b Nonverbal Communication 184
9-2d Cultural Distance 177 9-5 Emerging Cultures 187
9-3 How Is Culture Learned? 178 9-5a BRIC Markets 187
9-3a Enculturation 179 9-5b Chindia 188
9-3b Acculturation 179 9-5c Glocalization 188
9-3c Quartet of Institutions 180

10
Microcultures 191
10-1 Microculture and Consumer Behavior 191
10-1a Culture Is Hierarchical 191
10-1b Microcultural Roles and Value 193
10-2 Major U.S. Microcultures 193
10-2a Regional Microculture 193
10-2b Sex Roles and Microculture 194
10-2c Age-Based Microculture 195
10-2d Generation Microculture 196 LHB Photo/Alamy
10-2e Religious Microculture 198
10-2f Ethnic Microculture 200 10-4 Demographic Analysis 204
10-2g Income and Social Class Microculture 202
10-4a U.S. Census Data 205
10-2h Street Microculture 203
10-5 Major Cultural and Demographic Trends 206
10-3 Microculture Is Not Uniquely American 203
10-5a Trends Affecting Consumer Behavior 206
10-3a Microcultures Around the World 204
10-3b Street Microcultures Worldwide 204 Part 3 Cases 210

part 4 situations and

decision making
11
Consumers
11-2 Time and Consumer Behavior
11-2a Time Pressure 219
11-2b Time of Year 219
11-2c Cycles 219
219

11-2d Advertiming 220

in Situations 217 11-3 Place Shapes Shopping Activities 220
11-3a What Is Shopping? 221
11-1 Value in Situations? 217 11-3b Shopping Activities 221
11-1a Situations and Value 218 11-3c Shopping Value 223

Co n t e n t s ix
11-4 Impulsive Shopping and Consumption 224 11-5 Places Have Atmospheres 228
11-4a Impulsive versus Unplanned Consumer Behavior 225 11-5a Retail and Service Atmospherics 228
11-4b Distinguishing Impulsive and Unplanned 11-5b Atmosphere Elements 229
Consumer Behavior 225 11-6 Antecedent Conditions 234
11-4c Susceptibility to Situational Effects 226
11-6a Economic Resources 234
11-4d Consumer Self-Regulation 226
11-6b Orientation 235
11-4e Impulsive versus Compulsive Behavior 228
11-6c Mood 236

12
11-6d Security and Fearfulness 236

Decision Making I:
Need Recognition
and Search 239
12-1 Consumer Decision Making 239
12-1a Decision Making and Choice 240
12-2 Decision-Making Perspectives 241
12-2a Rational Decision-Making Perspective 242
12-2b Experiential Decision-Making Perspective 242
12-2c Behavioral Influence Decision-Making Perspective 242
12-3 Decision-Making Approaches 243
12-3a Extended Decision Making 243
12-3b Limited Decision Making 244
12-3c Habitual Decision Making 245
12-4 Need Recognition, Internal Search,
and the Consideration Set 246
12-4a Need Recognition 246
12-4b Search Behavior 247
12-4c The Consideration Set 248
12-5 External Search 249
12-5a The Role of Price and Quality in the Search Process 249
12-5b External Search and Emerging Technologies 250
12-5c Consumer Search and Smartphone Applications 250 © Dmitry Kalinovsky/Shutterstock.com
12-5d Amount of Search 251
12-5e Search Regret 253
13-2 Value and Alternative Evaluation 257

13
13-2a Hedonic and Utilitarian Value 257
13-2b Affect-Based and Attribute-Based Evaluations 258
13-3 Product Categorization and
Criteria Selection 258

Decision Making II: 13-3a Category Levels 258

Alternative Evaluation
and Choice 255
13-1 Evaluation of Alternatives: Criteria
13-1a Evaluative Criteria 256
13-1b Determinant Criteria 256
13-3b Criteria Selection 260
13-4 Consumer Choice: Decision Rules 264
13-4a Compensatory Models 264
13-4b Noncompensatory Models 265
256 13-4c Use of Decision Rules 266
13-4d Retail Outlet Selection 267
Part 4 Cases 268

x C on ten ts
 part 5 consumption
14
Consumption
to Satisfaction 273
14-1 Consumption, Value, and Satisfaction
14-1a Consumption Leads to Value 273
14-1b Consumption and Product Classification 274
14-1c Situations and Consumer Reactions 275
14-1d Consumption, Meaning, and Transference 275
14-1e Consumption Outcomes and Emotion 276
14-2 Value and Satisfaction 276
14-2a What Is Consumer Satisfaction? 277
14-2b What Is Consumer Dissatisfaction? 278
15
Consumer
Relationships 289
15-1 Outcomes of Consumption 289
15-2 Complaining and Spreading WOM
15-2a Complaining Behavior 290
15-2b Word-of-Mouth/Publicity 293
15-3 Switching Behavior 297
15-3a Procedural Switching Costs 297
15-3b Financial Switching Costs 297
15-3c Relational Switching Costs 297
15-3d Understanding Switching Costs 298
15-3e Satisfaction and Switching 298
15-4 Consumer Loyalty 299
15-4a Customer Share 299
and beyond
14-3 Other Postconsumption Reactions 278
14-4 Theories of Postconsumption Reactions 279
14-4a Expectancy/Disconfirmation 279
14-4b Equity Theory and Consumer Satisfaction 282
14-4c
14-4d
Attribution Theory and Consumer Satisfaction 283
Cognitive Dissonance 283
14-5 Consumer Satisfaction/Dissatisfaction
Measurement Issues 284
273 14-5a Improving Satisfaction Measures 285
14-6 Disposing of Refuse 286
14-6a Disposal Decisions 286
14-6b Disposal, Emotions, and Product Symbolism 287
290
© Monkey Business Images/Shutterstock.com
15-4b Customer Commitment 301
15-4c Antiloyalty 301
15-4d Value and Switching 302
15-5 Value, Relationships, and Consumers 303
15-5a Relationships and the Marketing Firm 303
15-5b Value and Relationship Quality 303
Co n t e n t s xi
16
16-3 Marketing Ethics and Misbehavior 316
16-3a Consumerism 316
16-3b The Marketing Concept and the Consumer 318
16-4 Corporate Social Responsibility 321

Consumer and 16-4a The Societal Marketing Concept 321

16-5 Regulation of Marketing Activities 322
Marketing 16-5a Marketing and the Law 322
Misbehavior 307 16-6 Public Criticism of Marketing 323
16-6a Deceptive Advertising 323
16-1 Consumer Misbehavior and Exchange 307 16-6b Marketing to Children 323
16-1a The Focus of Misbehavior: Value 308 16-6c Pollution 324
16-1b Consumer Misbehavior and Ethics 308 16-6d Planned Obsolescence 324
16-1c Motivations of Misbehavior 309 16-6e Price Gouging 324
16-2 Distinguish Consumer Misbehavior 16-6f Manipulative Sales Tactics 324
from Problem Behavior 310 16-6g Stealth Marketing 326
16-2a Consumer Misbehavior 310 16-6h Products Liability 326
16-2b Consumer Problem Behavior 314 Part 5 Cases 328
Endnotes 332
Glossary 353
Index 363

xii C on ten ts
 For my family and my mentors, especially Bill and Joe.
—Barry Babin

For my family, for their wonderful support over the years.

—Eric Harris
part 1
CB

© Reggie Casagrande/Workbook Stock/Getty Images

The marketer who What do you think?

understands consumers will be able to In any business, the customer is truly
design products that provide more value, the most important person.

and through this process, enhance the STRONGly dISAGREE STRONGly AGREE

well-being of both the company and its

customers. V I S I T C O U R S E M AT E AT W W W. C E N G A G E B R A I N . C O M

2 Pa rt 1: in tr od u ction
 1
What Is CB
and Why
Should I Care?
Students rarely feel like an expert when they walk into a
new college class. However, this course is an exception, After studying this chapter, the student
because everyone reading this book has years of experi- should be able to:
ence spending! As we will see, spending means that some-
thing is being used, perhaps time or perhaps money, and
1-1 Understand the meaning of
when things are used toward a value-producing activity,
consumption and consumer
consumption takes place. In fact, we act as consumers behavior.
every day and every waking hour. The reader begins the
book with a degree of expertise that makes the subject 1-2 Describe how competitive
come alive with relevance. marketing environments lead to
Just think about how many of a person’s daily activi- better outcomes for consumers.
ties are really consumer activities. We wake, we drink, we
eat, we clean, we dress, we ride, we shop, we play, we 1-3 Explain the role of consumer
read, we choose, we talk, we surf, we tweet, and on and behavior in business and society.
on. Practically everything we do involves consumer behav-
1-4 Be familiar with basic approaches
ior (CB) in some way. Take a look at Twitter or Facebook
to studying consumer behavior.
and it becomes obvious that many of the tweets and posts
on walls are talking about things to buy, places to go, and Appreciate how dynamic the field
1-5
things to do. Websites like Pinterest mimic real discus- of consumer behavior continues
sions, where one consumer tells others about the things to be.
that bring value to their lives. Certainly, these activities help
consumers make decisions.
Consumer decisions are sometimes simple, involving
few resources, and other times complex, involving large
amounts of resources. When consumers make decisions,
they set in place a chain of reactions that changes their
lives, the lives of those around them, and the lives of people
they don’t even know. How can even simple decisions be
so important to society? The answer to this question is one
of the key points of this chapter and of this text. A con-
sumer makes a decision with the intention of improving his
or her life—that is, doing something of value. But the value
creation doesn’t stop here.
As long as consumers continue satisfying needs by
shopping and buying, opportunity exists for business.
The process of making a purchase starts a chain greater value potential, and thus a greater chance
reaction of value-creating actions. The economic of enhancing the well-being of stakeholders includ-
bust of 2008 and the continued sluggish economy ing the company and customers. Policy makers
in the United States originated with a drop in hous- also show interest in CB because the knowledge
ing sales that continued into 2012.1 When con- allows them to make more effective public policy
sumers stop buying houses, many industries are decisions. Last but not least, consumers who
affected. Fewer house sales mean fewer appliance understand consumer behavior can make better
and furniture purchases. When fewer appliances decisions concerning how they allocate scarce
and furniture are sold, demand for shipping drops. resources—that is, they become better consum-
Fewer new homes sold means less demand for ers. Thus, an understanding of consumer behavior
home designers and architects. Eventually, many can mean better business for companies, better
industries suffer significantly, people lose jobs, and public policy for governments, and a better life for
this in turn affects others as their ability to spend individuals and households.
gets curtailed.
On the other hand, what happens when people
buy things? Lots of consumers have purchased
1-1Consumption and
a tablet computer in the last few years and they
seem to be satisfied. Both iPad and Kindle owners
Consumer Behavior
report about 85% satisfaction. The more videos a
consumer views, the higher the reported satisfac-
tion.2 What happens when a consumer buys an
O ne can look at CB from two unique perspectives.
This is because consumer behavior refers to both
1. Human thought and action involved in consumption,
electronic device like an Apple® iPad®? The store and
must restock its inventory. The manufacturer must 2. A field of study (human inquiry) that is developing
produce more product. To do this, the manufac- an accumulated body of knowledge.
turer purchases raw materials, parts, and services
If we think of the consumer above considering the
from suppliers. Raw materials and finished prod-
purchase of a tablet computer, CB can be thought of
ucts need to be shipped by companies like UPS or
as the actions, reactions, and consequences that take
FedEx. But that isn’t all. Now the iPad owner may place as the consumer goes through a decision-making
well want or need a new service plan to enhance process, reaches a decision, and then puts a product to
functionality, and now he or she is a potential con- use. Alternatively, we consider the body of knowledge
sumer for some of the more than 250,000 apps
made for the device. One can clearly see the iPad
customer gets value from the purchase, but the
consumption also enhances the life of many other
consumers touched by the chain reaction.
Although some may call a course like this one
“buyer behavior,” consuming involves more than
just buying. Certainly, businesses are interested in
getting someone to buy something. But the fact is
that consumption goes on long after purchase and
Kim White/Bloomberg /Getty Images

this consumption story ultimately determines how

much value results.
As you can see, our behavior as consumers
is critically important not just to ourselves, but to
many other people. This is why so many people,
not just marketing people, are interested in learn-
Tablets create customers for apps.
ing about CB. True, the marketer who understands Consumers drive the economy.
consumers will be able to design products with
4 Pa rt 1: in tr od u ction
that researchers accumulate as they attempt to explain belong, and socialize, and consumer behavior set
of value-seeking activities that
these actions, reactions, and consequences as the field this need enhances desire take place as people go about
of study known as consumer behavior. Thus, rather or want for media access addressing their real needs
than choosing between the two alternative approaches, devices. want a specific desire rep-
we believe the best appreciation of CB requires consid- After weighing some resenting a way a consumer
may go about addressing a
eration of both perspectives. options, the consumer recognized need
decides to visit an Apple exchange acting out of the
1-1a Consumer Behavior store. After looking at decision to give something up in
return for something of greater
several alternative devices,
as Human Behavior and talking it over with the
value
costs negative results of
Consumer behavior is the set of value-seeking activities salesperson, the consumer consumption
that take place as people go about addressing and at- chooses the latest iPad. benefits positive results of
tempting to address real needs. In other words, when Next, the consumer par- consumption
a consumer is motivated by a need, a process kicks in ticipates in an exchange
as the consumer sets out to find desirable ways to fill in which he or she gives
this need. The process involves multiple psychological up economic resources in return for receiving the product.
events, including thinking, feeling and behaving, and An exchange is the acting out of a decision to give some-
the entire process culminates in value. Hopefully, the thing up in return for something of greater value. Here, the
process creates sufficient value to address the need that consumer decides the tablet computer will be worth at least
began the process. the price of the product plus a 4G service plan that will
enhance his ability to use the device.
The Basic CB Process The consumer then uses the product and experiences
Exhibit 1.1 illustrates the basic consumption process. all the associated benefits and costs. Costs are the negative
We discuss each step in detail in later chapters. However, results of consumption. The costs involve more than just
thinking of the consumer from the introduction, we illus- the price of the product. Consumers spend time both
trate the process briefly here in the context of a new tablet shopping for and learning how to use a device. Physi-
computer purchase. At some point, the consumer realizes a cal effort also is needed if consumers visit retail stores
need for better access and a better interface to outside me- during the process. The time, money, and effort spent
dia through the Internet, including social media, YouTube, acquiring a tablet computer cannot be allocated toward
Netflix, and email. This realization may be motivated pri- other activities or processes, resulting in high opportunity
marily by a desire to do better on the job and to have better costs for the consumer. Benefits are positive results of
access to friends and family. A want is a specific desire that consumption. The benefits are multifaceted, ranging
spells out a way a consumer can go about addressing a from potentially better job performance, easier Facebook
recognized need. A consumer feels a need to stay in touch, access, and a bigger screen for playing Tiny Zoo.
Over time, the consumer evaluates the
costs and benefits and reacts to the pur-
chase in some way. These reactions involve
exhibit 1.1 The Basic Consumption Process thoughts and feelings. The thoughts may
involve reactions to features such as the
ease of use. The feelings may sometimes
include frustration if the features do not
work correctly or conveniently. Ultimately,
the process results in a perception of value.
We will discuss value in more detail in
Chapter 2.
© iStockphoto.com/Squaredpixels

Consumption
Another way to look at the basic con-
sumer behavior process is to consider the
© Cengage Learning
steps that occur when consumption takes
place. Obviously, a consumer consumes!

Cha pt e r 1: W hat i s CB a n d W hy s ho u l d i Ca r e ? 5
consumption process by Interestingly, very few buyer behavior date from the 1960s.3 Thus, compared
which goods, services, or ideas
are used and transformed into
consumer behavior with older disciplines, researchers have had less time to
value books define consump- develop the body of knowledge. Therefore, each decade
consumer behavior as tion itself. Consumption the accumulated body of knowledge grows significantly.
a field of study study of represents the process Clearly, however, much uncertainty remains, and the body
consumers as they go about
the consumption process; the by which goods, ser- of theory that is accepted by researchers and
science of studying how con- vices, or ideas are used practitioners is relatively small. This is
sumers seek value in an effort to
address real needs and transformed into one reason consumer behavior is so
economics study of produc- value. Thus, the actions exciting to study. CB researchers Understanding
tion and consumption involved in acquiring continue to expand the knowl- consumer behavior
and using a mobile com- edge base at a fast pace. means better business
munications device like Like other disciplines, for companies,
an iPad create value for a consumer. Consumption is a the CB field has fam- better public policy
value-producing process in which the marketer and the ily roots in other disciplines. for governments,
consumer interact to produce value. When the consum- Exhibit 1.2 displays the
and a better life
er fails to realize value from the process, something has relationship between CB and
for individuals and
broken down in the process; perhaps a bad performance other disciplines. Research in
households.
from the marketer or perhaps a bad decision by the cus- various disciplines produced rel-
tomer. Thinking about the result of all of these interac- evant knowledge for marketers seek-
tions considered together, one easily sees that consump- ing to understand consumers. The genesis
tion outcomes affect consumer well-being by affecting of the CB field lies in business and the growing body of
quality of life. academic research produced by business schools in the
late 20th century.4 The exhibit displays the overlapping
1-1b Consumer Behavior nature of CB and marketing. The other fields provide a
sample of some of the many fields that sometimes con-
as a Field of Study tribute to and to which CB sometimes contributes. A few
Consumer behavior as a field of study represents the of these disciplines share a special bond with CB, as we
study of consumers as they go through the consump- discuss below. CB shares particularly strong interdisci-
tion process. In this sense, consumer behavior is the sci- plinary connections with economics, psychology (partic-
ence of studying how consumers seek value in an effort ularly social psychology), marketing, and anthropology.5
to address real needs. This book represents a collection
of knowledge resulting as consumer behavior research- Economics and Consumer Behavior
ers go about studying consumers. Economics is often defined as the study of production
Consumer behavior, as a field of study, is a very young and consumption. A free enterprise system allows in-
field. The first books that discuss consumer behavior or dividuals to participate freely in the
market.6 Accordingly, it is easy to
exhibit 1.2 Law Economics Neuroscience see that marketing has its origins in
economics, particularly with respect
The Relations
Statistics
Political
Science

to the production and distribution

between CB Marketing of goods. As the definition implies,
and Other economics also involves consump-
Finance Anthropology

Disciplines
Psychology

Consumer Behavior tion. Therefore, consumer behavior

and economics also have much in
common. However, the economist’s
Marketing Strategy
focus on consumer behavior is gen-
erally a broad or macro perspective.
OR

For example, economics studies

often involve things like commod-
History Sociology Management
ity consumption of nations over
Source: Based on D. J. MacInnis and V. S. Folkes, “The Disciplinary Status of Consumer Behavior: A Sociology of Science Perspective on
Key Controversies,” Journal of Consumer Research 36 (April 2010): 899–914.
time. This may even involve track-
ing changes in consumption with

6 Pa rt 1: in tr od u ction
different price levels, enabling price elasticity to be de- Marketing psychology study of human
reactions to their environment
termined. The economist finds data for a study like this
One doesn’t have to look social psychology study
in historical sales records. This type of study does not
very hard to find different that focuses on the thoughts,
require interviews with individual consumers that may feelings, and behaviors that
definitions of marketing. people have as they interact
ask for explanations of the behaviors summarized in
Many older definitions with other people
historical data.
focus heavily on physical cognitive psychology
To illustrate a macro perspective, we note that re- study of the intricacies of mental
products and profitabili-
searchers and marketing managers are very interested reactions involved in information
ty. Even though products processing
in emerging markets like China and India. Although
and profits are very im- marketing multitude of
these places may seem like very distant lands with little
portant aspects of mar- activities that facilitate exchanges
relevance to most business students, nothing could be between buyers and sellers,
keting, these definitions including production, pricing,
further from the truth. Economists track all sorts of
are relatively narrow.11 promotion, distribution, and
consumer-related phenomena. In fact, The Economist retailing, which are all focused
Marketing involves
journal tracks the Big Mac Index.7 The Big Mac Index on providing value for consum-
the multitude of value- ers and other stakeholders
shows the relative price of hamburgers country by coun-
producing seller activities
try. The idea was to show relative purchasing power,
that facilitate exchanges
but economists now realize the Big Mac Index actually
between buyers and sellers. These activities include the
predicts currency fluctuations with some accuracy. The
production, promotion, pricing, distribution, and retail-
prices represent aggregate prices paid by thousands of
ing of goods, services, ideas, and experiences that provide
anonymous consumers within each country.
value for consumers and other stakeholders.
In contrast, consumer behavior researchers generally
CB and marketing are very closely related. Exchange
study consumer behavior at a more micro level, often fo-
is intimately involved in marketing and as can be seen
cusing on individual consumer behavior. Food and drink
consumption studies often require personal interviews or
experimentation with individuals. For example, consum-
er researchers examined the extent to which exposure
to advertisements promoting drink specials influences
college student drinking. The research drew conclusions
from individual student responses to such ads. Results
suggest that students had a more positive attitude to-
ward the bar running the specials and intended to buy
more because of the specials when exposed to the ad.8

Psychology and Social Psychology

Psychology is the study of human reactions to their en-
vironment.9 Psychologists seek to explain the thoughts,
feelings, and behaviors that represent human reaction.
Psychology itself can be divided into several subdisci-
plines. Social psychology and cognitive psychology, in
particular, are highly relevant to consumer behavior.10
Social psychology focuses on the thoughts, feelings, and
behaviors that people have as they interact with other
people (group behavior). Consumer behavior most of-
ten takes place in some type of social setting; thus, social
psychology and consumer behavior overlap significantly.
Jeff Greenberg/Alamy

Cognitive psychology deals with the intricacies of mental

reactions involved in information processing. Every time
a consumer evaluates a product, sees an advertisement,
or reacts to product consumption, information is pro-
cessed. Thus, cognitive psychology is also very relevant Marketing activities are aimed at creating value.
to consumer behavior.

Cha pt e r 1: W hat i s CB a n d W hy s ho u l d i Ca r e ? 7
sociology the study of from Exhibit 1.1, ex- Anthropology has contributed to consumer behav-
groups of people within a soci-
ety, with relevance for consumer
change is central to con- ior research by allowing researchers to interpret the
behavior because a great deal of sumer behavior too. In relationships between consumers and the things they
consumption takes place within fact, in some ways, con- purchase, the products they own, and the activities in
group settings or is affected by
group behavior sumer behavior involves which they participate. Disciplines such as geography
anthropology study in “inverse” marketing as and the medical sciences overlap with consumer behav-
which researchers interpret rela- consumers operate at ior in that they draw from some of the same theories
tionships between consumers
and the things they purchase, the other end of the ex- and/or research approaches. Neuroscience, the study
the products they own, and change. Marketing ac- of the central nervous system including the brain, and
the activities in which they
participate
tions are targeted at and CB share interest in how the consumer’s brain functions
affect consumers while during the consumption process. The number of neu-
neuroscience the study
of the central nervous system consumer actions af- roscience applications in CB is growing at a rapid rate.
including the brain fect marketers. A mar-
keter without customers
won’t be a marketer
very long! In fact, without consumers, marketing is
1-2The Ways in Which
unnecessary.
Some researchers view the CB discipline as sepa- Consumers Are Treated
rate and distinct from marketing.12 Others view CB as
a subdiscipline within marketing.13 The details of the
argument are beyond the scope of this text; however,
I s the customer always “king”? Look at this list of fa-
miliar service environments:

the very fact that such an argument exists illustrates the A typical Department of Motor Vehicle (DMV) office
close bond between the two. Marketing and CB share The registrar’s office at a state university
considerable relevance and both are essential inputs to A bank lobby
organizational success. A university health clinic
Cable communication services
Consumer Behavior and Other Disciplines A hair salon
Commerce increased tremendously with the industrial A New York City fine dining establishment
revolution and the coinciding political changes that fos-
A Miami Beach resort
tered economic freedom in many countries. Businesses
looked to the new field of marketing for practical advice Think about the following questions. Does a consumer
initially about distribution and later about pricing, pack- receive the same degree of service at each of these
aging, advertising, and communication. Thus, although places? What is the waiting environment like at each
marketing may have originally shared more in common
with economics, the turn toward consumer research
brought numerous psychologists into the field. Many of
these psychologists became the first consumer researchers.
CB research and marketing research overlap with
each other more than they do with any other discipline,
as illustrated by the overlapping shapes in Exhibit 1.2.
Beyond this, CB research shares much in common with
psychological research, particularly in terms of shared
research approaches and shared theories. Consumer re-
Plush Studios/Jupiter Images

search is based largely on psychology, and to some extent

psychology draws from consumer behavior research.
Other disciplines share things in common with
consumer behavior. Sociology focuses on the study of
groups of people within a society. This has relevance for
consumer behavior because consumption often takes Competitive pressures motivate
place within group settings or is in one way or another marketers to provide good service.
affected by group behavior.

8 Pa rt 1: in tr od u ction

AP Photo/Jim Mone
Compared to a restaurant, what motivation does the
DMV have to provide a high-value waiting experience?
of these places? Is there a clean, comfortable wait-
ing area with pleasant music? How dedicated are the
employees to delivering a high-quality service experi-
ence? How likely are employees to view the customer
as a nuisance? If you don’t see the point of these ques-
tions yet, contrast the waiting area at a driver’s license
bureau with the elaborate lobby where you wait for
check-in service (probably not very long) at a Miami
Beach resort.
Some organizations can survive while treating cus-
tomers little better than dirt, and others need to pamper
customers just to have a chance of surviving. Consider
these two questions in order to understand how im-
portant serving customers well should be to any given
organization:
1. How competitive is the marketing environment?
2. How dependent is the marketer on repeat business?
1-2a Competition and
Consumer Orientation
Where do consumers go if they don’t like the service
at the DMV? If the choice comes down to visiting the
bureau or not driving, nearly all consumers will put up
with the less-than-immaculate surroundings, long waits,
and poor service that all too typically go along with
getting a driver’s license. Put yourself into the shoes of
the service providers at the bureau. Is there any concern
about doing something that would make a customer
want to return to do business again? Is there any real in-
centive to provide a pleasant and valuable experience?
Few Competitive Pressures?
In essence, the DMV typifies a service organization that
operates in a market with practically no competitive
pressure and a captive audience. In a government ser-
vice like this, the answers to the two questions above
are (1) not at all competitive and (2) not at all depen-
dent on keeping customers. No matter how poor the
service is, they know consumers will return to do more
business when the term on their license expires or they
need to register a vehicle. The incentive for better cus-
tomer service remains relatively small.
Unlike a restaurant, DMV management may
not be compelled to adjust workloads to demand.
DMV customers can face long lines (sometimes over
100 people in some areas) and wait times counted
in hours, not minutes. As state budgets have become
increasingly tight with the bad economy, wait times
have increased and DMV offices have cut hours—some
even operating only four days a week.14 In Denver,
Colorado, the 43 DMV employees (down from 57 in
2009) processed just over 350,000 registration renew-
als last year (up slightly since 2009). However, the city
touts improved customer service with wait times av-
eraging just under one hour!15 Imagine a bank touting
wait times of just one hour! A few states have turned to
technology and private outsourcing to improve service.
Drivers can renew licenses online in some states or go
to a company authorized to provide licensing services.
The private companies generally provide consumers
with better service, and the DMV ends up with better
and more accurate information about drivers.16 Why
does the private company improve service? They are
the marketer and the city, county, or state is the cus-
tomer. The company depends on repeat business in the
form of a renewed contract.
Many Competitive Pressures?
Now consider the customer dining in New York City. A
consumer has over 6,000 full-service restaurants from
which to choose—nearly all of them striving to build
a loyal clientele. The diner doesn’t have to put up with
poor treatment. The consumer can simply go next door.
While the consumer without a reservation may wait for
a table at the establishments with a loyal clientele, many
provide a comfortable lounge area where he or she can
enjoy a drink, some music, and conversation while
waiting. Here the consumer deals with firms operat-
ing in a highly competitive market dependent on repeat
business. Thus, firms are oriented toward value creation
and thus consumers typically receive better treatment.
Cha pt e r 1: W hat i s CB a n d W hy s ho u l d i Ca r e ? 9
consumer (customer)
orientation way of doing
The realization that 1-2b Relationship Marketing
competition in the mar-
business in which the actions
and decision making of the ketplace is important to and Consumer Behavior
institution prioritize consumer protecting consumers
value and satisfaction above all Let’s go back to the list of service environments.
other concerns is recognized by gov- Certainly, banks and restaurants are generally in very
market orientation ernment. In the United intense competition with rival businesses. Competitive
organizational culture that States, many federal laws pressures challenge businesses to get customers to
embodies the importance of
creating value for customers regulate the market to repeatedly purchase the goods or services they offer.
among all employees ensure business compe- Even in a city with a population as great as New York,
stakeholder marketing tition. The Robinson- without repeat business, each restaurant would have
an orientation in which firms Patman Act, the Sherman
recognize that more than just fewer than ten customers per night. In addition, repeat
the buyer and seller are involved Act, and the Clayton Act customers are considered less costly to serve.20 For in-
in the marketing process and a are examples of such leg-
host of primary and secondary stance, while a lot of advertising may be needed for ev-
entities affect and are affected islation. Practices such ery new customer to learn about a restaurant, old cus-
by the value creation process as price fixing, secret re- tomers already know the place.
bates, and customer co- Thus, relationship marketing means the firm’s
ercion are restricted by marketing activities aim to increase repeat business
these acts. as a route to strong firm performance. Relationship
marketing recognizes that customer desires are
Firm Orientations and Consumers recurring and that a single purchase act may be only
Competition eventually drives companies toward a high one touchpoint in an ongoing series of interactions with
degree of consumer orientation. Consumer (customer) a customer. Touchpoints are direct contacts between
orientation is a way of doing business in which the ac- the firm and a customer. Increasingly, multiple channels
tions and decision making of the institution prioritize or ways of making this contact exist, including phone,
consumer value and satisfaction above all other con- email, text messaging, online social networking, and
cerns. A consumer orientation is a key component of a face-to-face contact.21 Every touchpoint, no matter
firm with a market-oriented culture. Market orientation the channel, should be considered as an opportunity
is an organizational culture that embodies the impor- to create value for the customer. Like any type of
tance of creating value for customers among all employ- relationship, a customer-marketer relationship will con-
ees. In addition to understanding customers, a market tinue only as long as both parties see the partnership as
orientation stresses the need to monitor and understand valuable.
competitor actions in the marketplace and the need to Marketers are increasingly realizing the value of
communicate information about customers and com- relationship marketing. Wait staff sometimes provide
petitors throughout the organization.17 Profitable firms
are usually market oriented, with a few exceptions that
will be discussed later.18
A market orientation represents a less narrow fo-
cus than a strategic orientation that focuses more solely
on production. However, an even broader orienta-
tion comes when firms adapt stakeholder marketing.
Under this orientation, firms recognize that more than
just the buyer and seller are involved in the marketing
© iStockphoto.com/Izabela Habur

process.19 In fact, primary stakeholders include custom-

ers, employees, owners (or shareholders), suppliers, and
regulating agencies; secondary stakeholders include the
mass media and trade organizations. Stakeholder mar-
keting orientation recognizes that all stakeholders are
involved in and/or are affected by the firm’s marketing
in some way. This means that even secondary stake- This consumer is encountering a touchpoint with her
holders can alter the value equation and thus marketing stylist. Are there other touchpoints taking place at the
strategies should consider all such effects. same time?

10 Part 1: in tr od u ction
business cards to customers. These customers can use at least 100 years?
the card to ask for this waiter again on the next visit Exhibit 1.3 lists some
or to recommend the restaurant and server to a friend. famous international
Notice that with relationship marketing, the firm and companies, their core
relationship marketing
activities based on the belief
that the firm’s performance
is enhanced through repeat
business

its employees are very motivated to provide an out- business, and their age.
standing overall experience. In sum, both a competitive None of these com-
marketplace and a relationship marketing orientation panies are 100 years
create exchange environments where firms truly treat old! Even though we
customers as “king.” may think about them as
lasting forever, chances
are some of these giants
touchpoints direct con-
tacts between the firm and a
customer
resource-advantage
theory theory that explains
why companies succeed
or fail; the firm goes about
obtaining resources from con-
sumers in return for the value

The CB Field’s Role in

the resources create
1-3 will not be around 100
years from now. So, sur-

Business, Society, and for viving is not a trivial goal, and the companies that do
survive long term do so by obtaining resources from

Consumers consumers in return for the value they create. This is a

basic tenet of resource-advantage theory, a prominent

A
s mentioned earlier, multiple reasons for study-
ing consumer behavior exist. Each perspective
provides unique and interesting opportunities for
study. CB is important in at least three ways:
1. CB provides an input to business/marketing strategy.
2. CB provides a force that shapes society.
3. CB provides an input to making responsible deci-
sions as a consumer.
1-3a Consumer Behavior and
Marketing Strategy
What companies do you think of as successful? The
ultimate hallmark of success for a business is long-term
survival. One hundred years is a blink of an eye in the
course of history. But how many companies survive
theory that explains why companies succeed or fail.22
Companies succeed by acquiring more resources from
consumers and in turn using those resources to gain
advantages in physical and intellectual capital. Con-
sumer research is needed to understand what makes
a consumer give up scarce resources. Ultimately, con-
sumers give up resources in the pursuit of value.
In contrast to the companies listed in Exhibit 1.3,
consider the Curtis Mathes Corporation. Curtis Mathes
produced and sold high quality televisions from 1957
until the 1990s. For much of that time, the Texas-
based firm was the leading U.S. name in high-quality
televisions. Yet factors in the external environment made
it difficult for them to maintain sales relative to increas-
ingly higher-quality imported electronics from compa-
nies like Sony and Samsung. Consumers were much
more likely to purchase competitor products whose
quality was acceptable and whose prices were lower.

exhibit 1.3 How Old Are These Companies?

Company Core Business Birthdate Place of Birth

Home Depot Retail and Contractor Building Supply 1976 Georgia

FedEx Express Package Shipping (originally 2000 Tennessee
founded as Federal Express in 1973)
Facebook Online Social Networking 2004 Massachusetts
Tesco Food Retailing 1919 London, England
McDonald’s Fast Food 1956 Illinois
Samsung Electronic Equipment 1969 Seoul, South Korea
Toyota Motor Vehicles 1937 Nagoya, Japan
Microsoft Computer Software (originally operating 1975 New Mexico
systems)
© Cengage Learning

Cha pt e r 1: W hat i s CB a n d W hy sho u l d i Ca r e ? 11

attribute a product feature Eventually, the resource
that delivers a desired consumer
benefit
drain caused Curtis
Mathes to file for bank-
product potentially valuable
bundle of benefits ruptcy; the company
exists only as a shell of
what it once was, with
no production capacity.
What Do People Buy?
When a consumer buys something, he or she gives up
resources in the form of time, money, and energy in re-
turn for whatever is being sold. Consider a customer
who purchases a Kindle. What does he or she really get?
Well, the tangibles include mostly plastic and integrated
circuitry. These are the parts that make up the product.
No reasonable consumer would trade any significant
sum of money for plastic and circuitry. A consumer isn’t
really buying the physical parts of a product. However,
the plastic enables the product to be small and light and
the integrated circuitry enables this small, light product
to function as an electronic reader. Once again, we can
ask, is this really what the consumer wants? The fact
is, these attributes enable the consumer to enjoy the
benefits of information availability in a very convenient
package. Outcomes like these are valuable and what the
customer is ultimately buying.
Marketing firms often implement poor strategies
when they don’t understand what a product truly is,
because they don’t understand exactly what they are
selling. A product is a potentially valuable bundle of
benefits. Theodore Levitt, one of the most famous mar-
keting researchers, understood this. He emphasized the
importance of the value a customer receives from a
product, rather than the product itself.
One consumer researcher studied why people bought
milk shakes. In contrast to expectation, the largest share
of milk shakes purchased in the study was bought before
noon, many before 10 am, and many were consumed in
a car.23 After studying many milk shake drinkers, one
theme emerged. A milk shake is a good solution for con-
sumers with long commutes. They satisfy one’s hunger,
they are neat, they can be consumed while using one
hand, and they take about 20 minutes to finish—the bet-
ter portion of the commute. The value provided by the
milk shake is partly dealing with hunger but also partly
dealing with boredom. Thus, the researcher suggested
making shakes even thicker so they took even longer to
finish as a way of improving the product.

What AreYou Fishing For?

Somebody standing on the bank of a lake fishing is pretty
certain to want to catch fish. But what about fishing in
Fishville?
Zynga is a company whose online revenue has taken
off ever since they began to better understand why some
© iStockphoto.com/luismmolina
people fish—at least virtually fish. After seeing how eager
some consumers were to spend virtual currencies for virtual
enhancements to their virtual Farmville farms or virtual Fish-
ville fishing, they decided to experiment with selling virtual
tractors and virtual fish in exchange for real money. Five
dollars for a not-real chicken for a not-real farm in Farmville,
to offer virtual tractors with a holiday theme, which sell for
$6 for a not-real prize fish in Fishville, $3 for a not-real sky-
more than the same not-real but themeless tractor.
scraper in one’s not-real city in Cityville—pretty soon it adds
These consumers find value in the virtual products—
up. Zynga’s revenues skyrocketed to over $600 million from
obviously. But what are they buying?
less than $1 million in 2008 and perhaps the virtual product
market represents an answer to Zynga’s revenue problems.
Zynga marketing also recognizes that like real products, Sources: N. Wingfield, “Virtual Products, Real Profits,” The Wall Street Journal, December 9, 2011,
A1-A11. D. MacMillan and B. Stone, “Feeling Listless Down on the Virtual Farm,” Bloomberg
differentiation is important. Consumer research led them BusinessWeek (November 23, 2011): 43–4.

PA Rt 1: I n tRod u CtIon

12
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STAIRCASE

PLATE 21
 PLATE 22

ELEVATION IN 1779
FREEMASONS’ HALL, PLAN OF PREMISES BEFORE 1779

PLATE 23

FREEMASONS’ HALL IN 1811

PLATE 24
FREEMASONS’ HALL, FAÇADE

PLATE 25
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TEMPLE IN 1775

PLATE 26
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PLATE 27
FREEMASONS’ HALL, SIR J. SOANE’S DESIGN FOR NEW
MASONIC HALL (1828)

PLATE 28
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STAIRCASE
VESTIBULE TO TEMPLE SHOWING
MOSAIC PAVING

PLATE 29
MARKMASONS’ HALL,
CHIMNEYPIECE IN BOARD ROOM

PLATE 30
MARKMASONS’ HALL, CEILING IN BOARD ROOM

PLATE 31
MARKMASONS’ HALL, CEILING IN
GRAND SECRETARY’S ROOM

PLATE 32

GREAT QUEEN STREET CHAPEL

 PLATE 33

GREAT QUEEN STREET CHAPEL,

INTERIOR

PLATE 34
LITTLE WILD STREET, VIEW
LOOKING NORTH-EAST (1906)

PLATE 35
PLATE 36
No. 32, BETTERTON STREET,
ENTRANCE DOORCASE

PLATE 37
“QUEEN ANNE’S BATH,” No. 25,
ENDELL STREET

PLATE 38
THE BOWL BREWERY IN 1846

PLATE 39
PLATE 40
SEVEN DIALS COLUMN AT
WEYBRIDGE

PLATE 41