Consumerbehavior 100416155519 Phpapp01 - 2

CONSUMER
RESEARCH
• Marketing research is a formalized means of collecting,
analysing and interpreting information to be used in
helping making marketing decisions.
• Lies, damn lies and statistics” Benjamin Disraeli
• “Market research is the means by those who provide goods
and services to keep themselves in touch with the needs and
wants of those who buy and use those goods and services” UK
Market Research Society
• “A means to (1) reduce uncertainty, (2) monitor performance
and (3)contribute to the strategic processes” Open University
• Market Measurement (understanding market size
and movement -volume and value by product
type, end user, channel etc)
• Strategic insight (understanding how the market
operates, key decision making processes, needs of
the market etc. in sufficient detail to make
research learning's truly actionable)
• Channel strategies
• Pre-launch (understanding the likely impact of new
product launches, major promotions,
communication campaigns etc)
• Post-launch (understanding the actual impact of
new product launches, major promotions,
communication campaigns etc)
I. develop a strong brand
2. segment your target with discipline
3. address each target’s barrier
4. frame your message with relevance
5. innovate the way you go to market
6. leverage the power of partnerships
Step1 :Study the companies
Step 2: Define the objectives
Step 3: Research Methodology
Step 4: Analysis of Data
Step 5: Referencing
• Launch of 4-stroke motorcycles – the “CD” series
• Launch of the classic “Fill it, Shut it, Forget it” campaign
• Redefined the customer requirements
• Market shift towards more mileage
• Launch of Splendor in ’94, a runaway success
• The first Indo Jap 100cc bike - 1984
• Tried to establish power as a key choice factor
• Later opted for reliability
– Symbolized by the No Problem Samurai
• A partnership that lasted 17 years

– Took separate ways on account of differing ambitions
• TVS backed a vision that developed capability

– Demonstrated in XL Super & TVS Scooty
Customer feedback
Max R
Strengths Weaknesses
• Rugged • Mileage
• Low maintenance • Styling
• Affordability
Splendor
Strengths Weaknesses
• Fuel Economy • High Maintenance

• Riding Comfort
• Better Style
• To identify how consumers rate different brands
of cough syrup which are available over the
counter.
• Particularly, the purpose of this study is to find
the rating of over the counter brands of cough
syrups so that a proper brand strategy is to be
formulated.
• Further, it also helps in designing brand
programs in such a way that it result in better
positioning of the product.
• Non parametric tests have been used for the
study.
• The study is based on primary data collection with a
sample size of 100 respondents residing in ‘National
Capital Region’ of New Delhi, India. (Sample Size)
• The questionnaire used for the sample survey is a
structured and non-disguised questionnaire and
consisted of two major sections. The first section
intended to collect the various demographic factors; the
second section intended to collect the rating of different
cough syrups brands. (Data Collection Tool)
• A five point Likert scale was used to capture the
consumers responses ranging from highly preferred
agree to least preferred. (Scaling Technique if any)
•
• Six major brands namely D’cold, Glycodin, Honitus, Vicks Vaporub,
Corex and Beadryl were considered for the study. The brands were
selected on the basis of awareness in the region. The brands were
rated on the following attributes: Price, Availability, Advertisement
(Recall of Product), Effectiveness and Reliability (Variables to be
studied)
• For the purpose of data analysis, two non parametric tests Viz.
Kuruskal Wallis Test and Friedman Test were used. Kuruskal-Wallis
test has been used to determine the rank of different brands on
different attributes, where as Friedman test has been used to identify
the market leader on the basis of underlying dimensions as ranked
by the respondents.(Statistical Tool Used)
• Data has been collected by personally contacting the respondents
and explaining in detail about the survey. A total of 100 respondents
in Noida, Greater Noida, Delhi, and Gurgaon were contacted. The
demographic profile of the study is given in Table 1. (Field Work)
Table 1: Demographic Profile of Respondents (n=100)
Number Percent
of age
Responde
nts
AGE 18-25 35 35
26-35 45 45
36-50 20 20
GENDER MALE 45 45
FEMALE 55 55
• Aaker, D. A., Kumar, V. and Day, G. S. (1998), Marketing Research, Second Edition,
John Wiley and sons Inc., New York, U.S.A.
• Ennew, C. T. (1993), The Marketing Blueprint, Blackwell Publishers, The Dryden
Press, U.S.A.
• Green, P. E., Tull, D. S and Albarum, G. (1992), Research for Marketing Decision,
Prentice Hall of India Pvt. Ltd., New Delhi.
• Lilen, G. L. and Rangaswamy, A. (2003), Marketing Engineering, Pearson Education
Asia, New Delhi, India.
• Lulla, A. (2007), http://timesofindia.indiatimes.com/articleshow/1411283.cms
• Sengupta, S. (2004), Brand Positioning, Tata Mc-graw Hill Publishing Company
Ltd., New Delhi, India.
• Sproles, G. B. (1985), “From Perfectionism to Fadism: Measuring Consumers'
Decision-Making Styles”, American Council on Consumer Interests, pp. 79-85.
• Sproles, G. B. and Kendall, E. L. (1986), “A Methodology for Profiling Consumers'
Decision-Making Styles”, Journal of Consumer Affairs, Vol. 20, No. 2, pp. 267-279.
The Consumer Decision
Process
19
The Consumer Decision Process
How do consumers make

purchase decisions?
How do firms use this information

to develop new products and
marketing programs?
20
The CDP represents a road map of

consumers’ minds that marketers
and managers can use to help
guide product mix,
communications, and sales
strategies
21
P&G used
consumer
information
regarding
various
decision
process stages
to create and
By permission of Drexel.
market Dryel
22
Consumer Decision Process Model
Need Recognition
Search for Information
Pre-purchase Evaluation of Alternatives
Purchase
Consumption
Post-consumption Evaluation
Divestment
23
 Low Involvement Product
 Characteristics
 Does not reflect buyer’s self concept

 Alternatives within the same product class
are similar
 Frequent brand switching behaviour
24
Problem/Need Recognition
Evaluation of Alternatives
Decision
Low Involvement Products
Purchase Decision in Low Involvement

Products
25
 Characteristics
 High Price
 Complex Features
 Large difference between alternatives
 High perceived risks
 Reflect self-concept of Buyer
26
Need Recognition/Problem Identification
Development of Decision Criteria
Search for Alternatives
Evaluation of Alternatives
Decision
High Involvement Products

27
Need Recognition
28
Need Recognition
An individual senses a difference
between what he or she perceives
to be the ideal versus the actual
state of affairs
29
Need Recognition
Consumers recognize needs and
seek to fulfill them, or seek a
product to solve their problems
Knowing consumers’ needs helps
firms develop products and
marketing programs to reach them
more effectively
30
Need Recognition
Environmental
Influences
- Culture
M - Social Class
- Personal Influence
E - Family
M Need - Situation
O Recognition
Individual Differences
R - Consumer Resources
Y - Motivation
- Knowledge
- Attitudes
- Personality, Values,
and Lifestyle
31
Need Recognition
32
CDP Model Need Recognition
Internal
Search
Search
Environ-
Exposure mental
Influences
Attention
Stimuli M
E
Comprehension Individual
M Differences
O
Acceptance R
Y
Retention
33
Internal search: retrieving know-

ledge from memory or genetic
tendencies
External search: collecting
informa-
tion from peers, family, and the
marketplace
34
Search may be passive as
consumers become more receptive
to information around them, or
active if they engage in search
behavior
Search refers to a receptivity of

information that solves problems
or needs rather than a search for
specific products
35
Need Environmental
Recognition Influences
Internal
Search Search Individual
Differences
M External
E Search
M
O
R
Y
36
Search: Sources of Information
Marketer Dominated
Non-Marketer Dominated Stimuli
37
Marketer Dominated
- Advertising
-Salespeople
-- Websites
- Point-of-sales materials
38
Non-Marketer Dominated Stimuli
- Friends
- Family
- Opinion leaders
- Media
39
Information Processing
As a consumer is exposed to
information from external search,
they begin to process the stimuli
40
Information Processing
Exposure
Stimuli: Attention M
- Marketer E
Dominated
Comprehension M
- Nonmarketer
Dominated
O
Acceptance R
Y
Retention
41
Search: Information Processing
Exposure
Attention
Comprehension
Acceptance
Retention
42
Need Recognition
43
Internal
Search
Search
Environ-
Exposure Pre-purchase
mental
Evaluation of
Influences
Attention Alternatives
Stimuli M
E
Comprehension Individual
M Differences
O
Acceptance R
Y
Retention
44
Pre-purchase Evaluation of
Alternatives
The process of evaluating
alternatives identified from search,
which leads to a product or brand
selection most likely to satisfy the
consumer
45
Alternatives
Can use new or preexisting
evaluations stored in memory
Evaluative criteria: standards and
specifications used to compare
different products and brands
Alternative can be considered on
attributes that are salient or
determinant
46
Alternatives
Salient attributes such as price and

reliability are important to the
consumer
Determinant attributes such as a
car’s style and finish usually
determine which brand or store
consumers choose
47
Need Recognition
Purchase
48
CDP Model
Need Recognition
Internal
Search
Search
Environ-
mental
Evaluation of
Influences
Stimuli M
E
Comprehension Purchase Individual
M Differences
O
Acceptance R
Y
Retention
49
Purchase
Acquisition of the product that involves
choosing a specific retailer, and in-store
choices
Purchase intention can change

during the purchase stage—it can
be influenced by factors such as
in-store promotions, discounts,
salespeople, failure to find the
product, or lack of financial
resources
50
Need Recognition
Purchase
Consumption
51
Internal
Search
Search
Environ-
mental
Evaluation of
Influences
Stimuli M
E
M Differences
O
Acceptance Consumption
R
Y
Retention
52
Consumption
The process of using the product or
service purchased
Consumption can either occur
immediately or be delayed
How consumers use a product
affects satisfaction with product
How carefully consumers use or
maintain a product also determines
how long it will last before another
purchase is needed
53
An Emotional Appeal in
Product Consumption
54
Need Recognition
Purchase
Consumption
Post-consumption Evaluation
55
CDP Model
Need Recognition
Internal
Search
Search
Environ-
mental
Evaluation of
Influences
Stimuli M
E
M Differences
O
Acceptance Consumption
R
Y
Retention Post-consumption
Evaluation
External
Dissatisfaction Satisfaction
Search
56
Divestment
How consumers dispose of the
packaging or product after use
Options include:
Disposal
Remarketing or reselling
Recycling
57
Variables Shaping the Decision
Process
Identify relationships and variables

that affect consumer decision
making
Identify topics for additional
research
Develop and implement marketing
mix strategies
58
Process
Individual Differences:
Demographics, psychographics,
values, and personality
Consumer resources
Motivation
Knowledge
Attitudes
59
Process
Environmental Differences:
Culture
Social Class
Family
Personal Influence
Situation behaviors
60
Process
Culture: values, ideas, artifacts, and
symbols that help individuals interpret,
communicate, and evaluate as
members of society
61
Process
Social Class: division within
society composed of individuals
sharing similar values, interests,
and behaviors
62
Process
Family: often the primary decision
making unit with a complex and
varying pattern or roles and
functions
63
Process
Personal Influence: our behaviors
are often affected by those with
whom we closely associate
64
Process
Situation behaviors: as situations
change, so does the individual’s
behavior
65
Process
Psychological Processes
Influencing Consumer Behavior
Information processing
Learning
Attitude and behavior change
66
Consumer Decision Process
Continuum
Extended Midrange Limited

Problem Problem Problem
Solving Solving Solving
(EPS) (LPS)
High Low
Degree of Complexity
67
Consumer Decision Process
Continuum: Repeat Purchases
Extended Midrange Limited Habitual

Problem Problem Problem Problem
Solving Solving Solving Solving
High Low
Degree of Complexity
68
Types of Decision Processes
Initial Purchase
Extended Problem Solving (EPS):
Problem solving of a higher degree of
complexity that influences consumers
actions
69
Initial Purchase
Extended Problem Solving (EPS):
Often occurs with expensive items or
can be fueled by doubts and fears
Importance in making the “right
choice”
All seven consumer decision making
stages are often activated
Dissatisfaction is often vocal
70
Initial Purchase
Limited Problem Solving (LPS):
Problem solving of a lower degree
of complexity that influences
consumers’ actions
71
Initial Purchase
Limited Problem Solving (LPS):
Consumers don’t have motivation,
time, or resources to engage in EPS
Little search and evaluation before
purchase
Need recognition leads to buying
action; extensive search and evaluation
often avoided as the purchase is not of
great importance
72
Initial Purchase
Midrange Problem Solving:
Many decisions occur along the middle
of the continuum
Decisions are made with a minimal
amount of time and only moderate
deliberation
73
Repeat Purchases
Repeated Problem Solving
Habitual Decision Making
Impulse Buying
Unplanned, spur-of-the-moment action
triggered by product display or point of
sale promotion
Least complex form of LPS but differs in
some important ways
74
Repeat Purchases
Repeated Problem Solving
Habitual Decision Making
Impulse Buying
Variety Seeking
Consumers may be satisfied with the
present brand but still engage in brand
switching
Can be triggered because bored with
current brand or because of special offer
75
Factors Influencing Problem
Solving Extent
Degree of Involvement: Level of

perceived personal importance and
interest evoked by a stimulus in a
specific situation (High-Low)
76
Solving Extent
Degree of Involvement (High-Low)

Personal Factors (self-image, health,
beauty, or physical condition)
Product Factors (is there perceived risk
in purchasing and using a particular
brand or product?)
Situational Factors (is the product
purchased for personal use or as a gift?)
77
Factors Influencing Problem Solving
Extent
Degree of Involvement (High-Low)
Perceptions of differences among

alternatives
78
Solving Extent
Time Availability
How much time is available to devote to
solving the problem?
How quickly does the decision need to be
made?
79
Solving Extent
Time Availability
How much time is available to devote to
solving the problem?
How quickly does the decision need to be
made?
Consumers’ Mood State
How people feel at a particular moment
Mood can reduce or increase length and
complexity of decision process
80
Family and Household
Influences
81
The Importance of Families and
Households on Consumer Behavior
Many products are purchased

by a family unit
Individual’s buying decisions
may be heavily influenced by
other family members
82
The Importance of Families and
Households on Consumer Behavior
How families make purchase

decisions depends on the roles
of the various members in the
purchase, consumption, and
influence of products
83
Families and Households
Family: a group of two or more

persons related by blood,
marriage, or adoption who reside
together
Nuclear family: immediate group
of father, mother, and child(ren)
living together
84
Extended family: nuclear family,

plus other relatives such as
grandparents, uncles and aunts,
cousins, and parents-in-law
Some families are extending these
definitions to include pets
85
Pets Are Family Members Too
© AP/Wide World Photos

86
Household: all persons, both

related and unrelated, who occupy
a housing unit
87
Nonfamily households include:
Elderly persons living with

nonfamily members
Persons sharing living
quarters
Friends living together
88
Families are the largest single

category of households
Rapid rise in the number of
nontraditional families and non-
family households
Any of these types of households
may or may not include children
Buying behavior is best described
by the term consumer unit (CU) or
minimal household unit (MHU) 89
Structural variables affecting

families and households:
90
Structural variables affecting

Age of head of household
Marital status
Presence of children
Employment status
Marketers monitor these variables
to predict changes in demand for
specific products and categories
91
Sociological variables affecting
Cohesion: emotional bonding between

family members
Adaptability: ability of a family to change
its power structure, role relationships,
and relationship rules in response to
situational and developmental stress
Communication: facilitating dimension,
critical to movement on the other two
dimensions 92
Families Celebrations and
Gift Giving
Marketers frequently refer to

resilient families who emphasize
time spent together through family
traditions, rituals, and
celebrations
93
Families Celebrations and
Gift Giving
Gift giving and family holidays are

increasing in importance
Traditional holiday spending and
promotions have shifted to other holidays
throughout the year
Physical movement of large gifts have
become difficult leading to increase sales
of gift certificates, gift cards, and Internet
gift purchases
94
Appeal to Different Ways Market
Segments Celebrate Holidays
95
Appeal to Different Ways Market Segments
Celebrate Holidays
96
Who Determines What the Family
Buys?
Instrumental roles: financial,

performance, and other functions
performed by group members
(also known as functional or
economic roles)
97
Who Determines What the Family
Buys?
Expressive roles: involve

supporting other family members
in the decision-making process
and expressing the family’s
aesthetic or emotional needs
including upholding family norms
98
Role Behavior
Individual roles in family purchases
Initiator/gatekeeper: initiator of family
thinking about buying products and
gathering information to aid decisions
Influencer: individual whose opinions
are sought concerning criteria and
which products or brands most likely to
fit those criteria
Decider: person with the financial
authority or power to choose how the
family’s money will be spent on which
products and brands 99
Role Behavior
Individual roles in family purchases
Buyer: person who acts as the

purchasing agent by visiting the store,
calling suppliers, writing checks,
bringing products into the home and so
on
User: person or persons who use the
product
100
Role Behavior
Different family members will

assume different roles depending
on the situation and product
Children may be influencers and
users for items (such as cereals
and toys) while parents may be the
decider and the buyer
101
Role Behavior
Family marketing focuses on the

relationships between family
members based on the roles they
assume, including the relationship
between purchaser and family
consumer and between purchaser
and purchase decision maker
102
Role Behavior
Family marketing differentiates

scenarios in which some
purchases may have more than
one decision maker from those
that have more than one consumer
103
Role Behavior
Identifying different purchaser-
consumer relationships:
Who’s buying for whom?

Who are the principal characters?
What’s the plot for the purchase?
Who wants what when?
What can we assume?
104
Role Behavior
Spousal roles in buying decisions
Autonomic: an equal number of

decisions is made by each spouse, but
each decision is individually made by
one spouse or the other
Husband dominant: the husband or
male head-of-household makes a
majority of the decisions
105
Role Behavior
Spousal roles in buying decisions
Wife dominant: the wife or female head-
of-household makes a majority of the
decisions
Joint: most decisions made with equal
involvement by both spouses
106
Influences on the Decision Process
Marketers evaluate which types of

products are typically purchased by
wives, husbands, or jointly
Marketers can determine which
attributes of specific products to
advertise to different household
members
Which media will best reach the
most influential family member?
Which ad appeals are most effective? 107
Influence of Decision Stage

Spouses exert different degrees of
influence when passing through the
different stages of the decision process
Movement from information search to
final decision may be minimal for many
low-involvement goods and more
pronounced for goods that are risky or
have high involvement for the family
108
Influence of Decision Stage

The decision process tends to more
toward joint participation and away
from autonomic behavior as a final
decision nears
109
Influence of Employment
More women working outside the home

Changing spousal roles has affected
how couples divide their buying
responsibilities
110
Influence of Gender
As the gender gap narrows, decisions

are increasingly made jointly
Due to waning gender identification of
products, marketers are transitioning
gender-dependent products to a dual-
gender positioning
111
Family Life Cycles
Family life cycle (FLC) : the
process of families passing
through a series of stages that
change them over time
The concept may need to be
changed to household life cycle or
consumer life cycle to reflect
changes in society
112
Activities and
Life Stage Behaviors
Young Singles
Newly Married Couples
Full Nest I, II, III
Empty Nest I, II
113
114
115
Figure 10.15 An Extended Family life Cycle
Middle-Aged
Divorced without
Children
Young
Divorced without Middle-Aged
Children Married without
Children
Middle-
Middle-
Young Young Aged
Aged
Young Married Married Married Older Older
Married
Single* without with without Married* Unmarried*
with
Children* Children* Dependent
Children*
Children*
Young Middle- Middle- Usual Flow

Divorced Aged Aged Recycled Flow
with Divorced Divorced
* Traditional Family Flow
Children* with without
Children Children
116
Noteworthy Nontraditional FLC Stages
Alternative FLC Stages Definition/Commentary
Family Households
Childless couples It is increasingly acceptable for married couples to
elect not to have children. Contributing forces are
more career-oriented married women and delayed
marriages.
Couples who marry later in More career-oriented men and women and greater
life (in their late 30s or occurrence of couples living together. Likely to have
later) fewer or even no children.
Couples who have first child Likely to have fewer children. Stress quality
later in life (in their late 30s lifestyle: “Only the best is good enough”
or later)
117
continued
Family Households
Single parents I High divorce rates (about 50%) contribute to a
portion of single-parent households
Single parents II Young man or woman who has one or more children
out of wedlock.
Single parents III A single person who adopts one or more children.
Extended family Young single-adult children who return home to
avoid the expenses of living alone while establishing
their careers. Divorced daughter or son and
grandchild(ren) return home to parents. Frail elderly
parents who move in with children. Newlyweds
living with in-laws.
118
Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and
homosexual couples.
Divorced persons (no High divorce rate contributes to dissolution of
children) households before children are born.
Single persons (most are Primarily a result of delaying first marriage; also,
young) men and women who never marry.
Widowed persons (most are Longer life expectancy, especially for women;
elderly) means more over-75 single-person households.
119
Family Life Cycles
FLC affects demand for many products
Descriptions of life stages can be
combined with additional information
about consumer markets to analyze
consumer's needs, identify niches, and
develop consumer-specific marketing
plans
120
Family Life Cycles
Individuals may repeat family stages if
their family situations change or they
may be in stages different from most
people their age
FLC helps explain how families change
over time and can identify core target
markets when modified with market data
121
Family Life Cycles
Family and household spending
The FLC is an important predictor
of family or household spending
In the last decade, consumers
have changed their household
spending from “things” to
“services”
122
Changing Family and
Household Structure
Marketers must evaluate how

changes in family and household
structures affect marketing
strategy
123
Changing Family and
Household Structure
What is the structure of

contemporary families?
How is that structure changing?
How does structure affect the
various stages of the consumer
decision process?
Are the changing realities of
family structure a problem or an
opportunity for growth?
124
Changing Family and
Household Structure
Marriage Trends
Delaying age of marriage
Over half of marriages end in divorce
As a result, individuals shift between
married and single status
125
Changing Family and
Household Structure
Marriage Trends
What are the affects on markets for
household products, homes,
counseling, travel, etc.?
126
Changing Family and
Household Structure
The Singles Boom

Rise in number of single households in
developed nations
Co-habitating singles are the fastest
growing segment of singles market
127
Changing Family and
Household Structure
The Singles Boom: Mature Singles

In the U.S., 61 percent of the singles
market is made up of women, with a
median age of 66 years
Older women living single are often
widows; older men living single are
usually divorced or were never married
Marketers have targeted the mature
singles market with travel, financial
services, entertainment, social activities
128
Changing Roles of Women
Female consumers now

outnumber male consumers as
women tend to liver longer than
men do
Women represent a greater
proportion in the population,
improved purchasing ability, and
assume greater importance in the
workplace
129
Female employment
Female employment is increasing
around the world
Employment outside the home
increases income and family buying
power, but it may also increase
expenditures for specific items such
as child care, clothing, food away
from home, and gasoline
130
Working Families Want Fashion
131
Women and Time

As roles outside the home increase,
women have less leisure time
Marketers have developed time-
saving products to appeal to women,
including convenience foods
Marketers have also developed
products to help women enjoy the
leisure time they do have
132
Role Overload
Exists when the total demands on
time and energy associated with
prescribed activities of multiple roles
are too great to perform roles
adequately or comfortably
As women contribute more to the
family income, they expect in return
a more equal division of the
household responsibilities
133
Marketing to Women
Appealing to the “mother” category
Different segments exist and they look
at advertising, the Internet, products,
time, and brands differently
Depending on career orientation,
responsibilities in and out of the
home, time pressures, messages, and
ads need to be adapted
Retailers can appeal to women with
special services or extended hours
134
Changing Masculine Roles
Roles of men in families are
changing substantially as well
Men are more involved in family
functions and household
activities
Men may buy items traditionally
purchased by women (groceries)
Many men are achieving gender
role transcendence and use
products previously seen as 135
Personal Care Products for Men
136
Children and Household Consumer
Behavior
Children change dramatically how

the family functions, in terms of
relationships, employment, and
purchases
Children reduce parents’
participation in the labor force,
change how families spend their
money and reduce the amount of
time and money available for leisure
137
Behavior
Children influence about $1.88

trillion of purchases globally each
year
138
Behavior
Children exert direct influence

over parental spending when they
request specific products and
brands
They exert indirect influence when
parents buy products and brands
that they know children prefer
without being asked or told to
make a specific purchase
139
Behavior
Children also make their own

purchases with family money or
with their own
Children like to shop for candy,
toys, clothing, school supplies,
and other personal use items
Retailers study ways to adapt
specific departments to these
young, but significant, consumers
140
Behavior
Childhood Socialization
Children learn their consumer
behaviors through socialization
Children learn shopping behaviors
from shopping with parents
141
Behavior
Childhood Socialization
Co-shoppers explain to their
children why they buy certain
products over others, thereby,
teaching their children how to
shop
142
CONSUMER LEARNING
143
One form of
learning...
 Learning--what is it?
 Operant conditioning
 Classical conditioning
 Brand loyalty
 Perception
 Characteristics of the senses
 Accuracy
 Ability to detect change Most useful for

vicarious learning!
 Attention
144
 Learning occurs intentionally (problem solving
process) as well as un-intentionally.
 learning and memory theories are useful in
understanding that how consumers wants and
motives are acquired and how their tastes are
developed, how frequently we are going to
repeat our advertising , how visuals
,symbols ,sounds and other techniques can
facilitates in regarding promotion.
145
 Can be defined as relatively permanent change on behavior occurring as a
result of experience. (experience may be of purchase and consumption)
Types of learned behaviors
1. Physical behavior
 We learn many physical behaviors to respond to a situation e.g. learn to
walk , talk , interact with others,
 Consumers learn certain physical activity through the process of
modeling, in which they mimic the behavior of other individual such as
celebrities.
1. Symbolic Learning and problem Solving
 Traffic signs , McDonald's Golden arches, slogans etc. and also the
cognitive process.
1. Affective Learning
 Human learn to value certain elements of their environment and dislike
others. As a result they develop certain favorable and unfavorable
attitudes towards some product which depends upon their wants needs
and goals .
146
 Motives
 Motives arouse individuals and as a result they respond. This arousal
function is essential because it activates the energy needed to engage in
learning activity.
 By achieving the goal ,the arousal reduces, but have a greater tendency to
occur again, that is why marketers put their product in a way that when
relevant consumer motive arouse their products are their to satisfy the
need.
 This result that consumer will learn a connection b/w the product and
motive .
 Cues
 Capable of providing direction i.e. it influences the manner in which
respond to motive.
 It’s the opportunity to try or use the product.• Marketers should be careful to
provide theright environment (e.g., don’t put prestigiousproduct in low level store
 e.g. hungry man is guided by restaurant signs or aroma of food.
 Response
 Mental or physical activity in reaction to a stimulus satiation.
 Reinforcement
 Anything that follows the response and increase the tendency of response
to reoccur in a similar situation. 147
 Behavioral learning theory.
 Based on the fact that learning occurs through
the connection b/w an external stimuli and
response (S-R).
 Cognitive learning theory.
 Based on the fact that learning is more complex
and involved certain mental psychological
processes those are motivation, perception,
attitude ,and integration processes.
148
 Consumers (often
unconsciously) link
objects to past
experience
 Consequences of
behavior tend to
influence
subsequent
behavior
149
High
Involvement
Learning
Low
Involvement
150
 Pavlov’s dogs
 Objects (stimuli)
associated with a
response may bring
about the response
 Credit card studies
 Stimuli and
responses
151
US ----> UR
(Unconditioned stimulus) (Unconditioned response)
US + CS -----> UR
(Conditioned stimulus)
CS ------> CR (CS alone is

now
(Conditioned response) able to
bring
E.g.: CR)
NOTE: UR and CR
SUGAR -------> insulin releaserepresent the same
behavior, but causes
SUGAR + Cola Taste -------> insulin release differ
152
 Unconditional stimuli unconditional
response
 Food salivation
 Conditional stimuli conditional response
 Bell salivation
153
 Unconditional stimuli Unconditional
Response
Family gathering/
 Outdoor Activity Fun and
Enjoyment
 Conditional Stimuli Conditional Response
 Lipton tea Fun and

Enjoyment
154
1. Contiguity : unconditional and
conditional stimuli must be close
enough in time and space
2. Repetition: the more often the
unconditional and conditional
stumble occur together the stronger
the association
155
We now associate
this product with
strength.
156
157
 Advertising:
pairing product
with images of
desired affect
 Product: Evoke
image of object
associated with
positive affect (e.g.,
Hindustan lever; Coke
Bottle)
158
 Appropriate
symbols (for the
population in
question) to elicit
emotion
 NOTE: Test
stimuli for desired
effect!
 Repetition
159
Basic Concepts
 Repetition  Increases the
 Stimulus association between
generalization the conditioned and
unconditioned
 Stimulus
stimulus
discrimination  Slows the pace of
forgetting
 Advertising wearout
is a problem
160
Basic Concepts
 Repetition  Having the same
 Stimulus response to slightly
generalization different stimuli
 Helps “me-too”
 Stimulus
products to
discrimination
succeed
 Useful in product
extensions
161
 How does CVS Pharmacy use
stimulus generalization for their
private brands?
 Do you think it is effective?
 Should this be allowable?
weblink
Copyright 2007 by Prentice

Hall 162
Basic Concepts
 Repetition  Selection of a
 Stimulus specific stimulus
generalization from similar stimuli
 This discrimination
 Stimulus
is the basis of
discrimination
positioning which
looks for unique
ways to fill needs
163
Applications of stimulus generalization
Marketing strategies based on stimulus generalization include:

• Family branding - where a variety of products capitalize on the reputation of
a company name.
• Product line extensions - where related products are added to an
established brand.
• Licensing - where well known names are ‘rented’ by others.
• Look alike packaging.
164
Applications of stimulus discrimination
Marketing strategies based on stimulus discrimination include:

• Communicating a product’s distinctiveness from the competition (an
important part of positioning). It enables consumers to differentiate the
brand from others in the market place.
• Promoting the unique attributes of a brand.
165
1. Conditioned Fear & Anxiety - many phobias that people experience
are the results of conditioning.
For Example - "fear of bridges" - fear of bridges can develop from many different
Sources. For example, while a child rides in a car over a dilapidated bridge,
his father makes jokes about the bridge collapsing and all of them falling into
the river below. The father finds this funny and so decides to do it whenever they
Cross the bridge. Years later, the child has grown up and now is afraid to
drive over any bridge. In this case, the fear of one bridge generalized to all bridges
which now evoke fear.
2. Advertising - modern advertising strategies evolved from use of conditioning.

The approach is to link an attractive US with a CS (the product being sold)
so the consumer will feel positively toward the product
just like they do with the US.
US --> CS --> CR/UR
attractive person --> car --> pleasant emotional response 166
REINFORCEMENT
LIKELIHOOD
OF
BEHAVIOR
BEHAVIOR NEGATIVE
{
REINFORCEMENT
NOT the
same
LIKELIHOOD
thing! PUNISHMENT
OF
BEHAVIOR
167
You eat a cake (behavior)
----> good taste (reward)
----> more likely to eat
cake
on another occasion
168
Aversive stimulus exists
Behavior ----> termination of aversive

stimulus
----> repetition of behavior

during aversive stimulus
169
Headache (aversive stimulus)
Aspirin (behavior) --->

Headache
cessation
----> Likely to consume

aspirin during future
headaches
170
Behavior ----> Negative
consequences
-----> Behavior less

likely to be repeated
when punishment is
anticipated (mostly)
171
 Parking meters
 Gas taxes
 Fees for non-ATM

banking
transactions
 Over-base rate
utility charges
172
 Voidance of
warranty if
product is
serviced by
competitor
 Social ostracism
for failure to wear
deodorant
173
174
 Marketers use this learning mechanism
most effectively by making the product its
own intrinsic reward
 Coupons
 Rebates
 Frequent flier programs
175
 Customer Satisfaction
(Reinforcement)
 Reinforcement Schedules
 Shaping
176
 Fixed interval : After dinner everytime
dessert serve free of cost.
 Fixed ratio : After every nth time the
product or service purchased.
 Variable ratio : on random basis may
be based on quantum of purchase.
177
Note that marketers’
 Introduction of fruit flavored power tends to be
soft drinks in Indonesia prior limited
to Coca Cola
 New products given premium
shelf space in the beginning
 Premium given with
purchase of new product
 In-store demonstrations of
new products
178
A process by which
individuals observe
how others behave
in response to
Observational
certain stimuli and
Learning
reinforcements.
Also known as
modeling or
vicarious learning.
179
The consumer
observes a
positive
response by
two teens.
Copyright 2007 by Prentice Hall 180

 We learn by observing others
 Four classes of people likely to be
imitated by others:
 Persons superior in age-grade hierarchy
 Persons superior in social status
 Persons superior in intelligence ranking
system
 Superior technicians in any field
181
Components of observational learning
182
Taking advantage of instrumental and cognitive conditioning
principles
Principles of instrumental conditioning are at work when a
consumer is rewarded or punished for a product decision.
Rewards can include thanking the consumer for the purchase,
rebates, discounts, loyalty points, etc.
Consumers ability to learn by observing how the behaviour of

others is reinforced (cognitive learning) makes the marketers
role easier. Marketers can show what happens to desirable
models who use their products.
183
Cognitive learning
Cognitive learning occurs as a result of internal mental

processes. For example, observational learning takes
place when a consumer performing a behaviour as a
result of seeing someone else performing it and being
rewarded for it.
This perspective views people as problem solvers who

actively use information from the world around them to
master their environment.
184
The role of learning in memory
Memory involves the process of acquiring information

and storing it over time so that it will be available when
needed.
185
The memory process
186
Relationships among memory systems
187
 “Rehearsal””—repetition of information
 By consumer (e.g., phone number)
 By advertisement
 Elaborative activities—thinking of the

object to strengthen its association with
other nodes and maintenance
 Extinction from long term memory
 E.g., old phone numbers; how to use an old
computer program; loss language skills
188
 Procedure for doing
various things learned over
time
 E.g., restaurant script:
 make reservation
 travel to restaurant
 await seating
 order drinks
 study menu
 order
 have dessert and/or coffee
 pay check and leave tip
189
Factors affecting memory retrieval
Retrieval is the process where information is accessed from
long-term memory.
There are a number of factors that can affect memory
retrieval:
• Physiological
• Situational.
• Viewing environment.
• Mood congruence.
• Familiarity.
• Salience.(Distinctiveness) 190
Products as memory markers
• Products and advertisements can act as powerful

retrieval cues.
• They are used by consumers to retrieve memories about
past experiences and are often valued for their ability to
do this.
• Marketing strategies are often used to evoke nostalgia.
191
Measuring memory in marketing
Memory for product information can be measured

through recognition and recall techniques.
Consumers are more likely to recognise an

advertisement if it is presented to them than to recall one
without being given any cues.
192
 Habit: consumer
picks product
without much
thought; may be
due to
convenience
 Loyalty:
consumer actively
seeks out product
193
...or lack of it.
 Multibrand loyalty
 How strong?
194
 Product quality --->
satisfaction
 Sales promotions
 Stealing loyal
consumers away from
others--is it worth it?
 Price
 value
 exclusiveness
195
 Working with existing perceptions
 Research to identify perception and
associations of products—Perceptual
Maps
 Repositioning
 Very difficult—may be more cost
effective to develop a new brand
196
 Refers to the value inherent in a well-known
brand name
 Value stems from consumer’s perception of
brand superiority
 Brand equity reflects learned brand loyalty
 Brand loyalty and brand equity lead to

increased market share and greater profits
Copyright 2007 by Prentice

Hall 197
Brand Equity and Leverage
Consumer associations with product are valuable
Brand leverage (brand extensions, brand “family,”
“umbrella” branding)
Use of appropriate associations
May involve brand style rather than product
similarity
Concept testing is important
198
PROCESS USER PAYER BUYER
PERCEPTION PROCESS
General Process Usage experience biased by The price-value perception Perceptions of alternative
prior expectations based on depends on brand-name and brands biased by price,
brand name, price, or store contexts. brand name, store, etc.
consumption situation. Store distance perceptions
are often biased.
Just noticeable difference “New and improved” Price variations below JND Package size reductions
(JND ) products must cross the are not noticed. below JND are not noticed.
JND barrier.
Assimilation and contrast Distance to destinations, Price discrepancies from Store distances and
wait in service settings, etc., expected levels may be customer service variations
are assimilated or assimilated (acceptable) or may be assimilated or
contrasted. contrasted (not acceptable). contrasted.
199
PROCESS USER PAYER BUYER
LEARNING PROCESS
Cognitive Learning User learns about the use of Payer learns about used-car Buyers learn about new stores by
products and services by reading prices from the NADA used-car word of mouth and about brand
about them. price book. ratings from Consumer Reports.
Classical conditioning Food preferences are acquired in Perceived fairness of price levels Buyers are conditioned through
early childhood. is classically conditioned. continued patronage of the same
vendors.
Instrumental conditioning Users adopt new products and Payers “buy cheap” at first, then Buyers learn they can get better
services if they find them experience shoddy performance terms by changing vendors.
beneficial. and learn to “invest” more.
Modeling Users model their clothing and Budgeting decisions mirror those Buyers may switch preferences to
car choices after people they of admired companies. Payers stores and vendors that are
admire. learn norms for tipping by trendy.
observing others.
Adoption of innovation Users adopt product and service Payers adopt financing Purchasers adopt purchase
feature innovations. innovations (e.g, leasing, debit procedure innovations (e.g.,
cards). buying through the Internet).
Copyright © 1999 by Thomas Southwestern. All rights reserved. 200200
CHAPTER 8
Consumer Motivation
201
Consumer Motivation
Represents the drive to satisfy
both physiological and
psychological needs through
product purchase and
consumption
Gives insights into why people
buy certain products
Stems from consumer needs:
industries have been built around
basic human needs
202
Types of Consumer Needs
Physiological Needs
Fundamental human needs,
including food, water, and sleep
203
Safety and Health Needs
Threats to our safety and health

motivate purchases for personal
security and protection
204

Protecting our personal
information and computers
represents new types of safety
needs
Businesses provide a variety of
products and services to appeal
to safety and health conscious
consumers
205
206
Need for Love and Companionship
Humans are social creatures

who need to experience and
express love and
companionship
207
Need for Love and Companionship

Services and products help
individuals find and attract
others
Products are often used as
symbols of love and caring
208
Love and Companionship
209
Need for Financial Resources and

Security
A need that includes others

important to the individual
210
Social Image Needs

Conspicuous consumption:
purchases motivated to some
extent by the desire to show other
people how successful they are
Companies reinforce the notion

that products enable users to
communicate their social image
211
Social Image Needs
212
Need for Pleasure
Products, services, and

consumption activities provide
fun and excitement
213
Consumers’ Need for Pleasure
© SETH WENIG/Reuters/Landow
214
Need to Possess
Consumers often acquire products
simply because of their need to own
such products— e.g., collectors
215
Consumers’ Need to Possess
216
Need to Possess
Consumers often acquire products
simply because of their need to own
such products— e.g., collectors
Plays a role in impulse buying:

where consumers unexpectedly
experience a sudden and powerful
urge to buy something immediately
217
Need to Give
Give something back to others
or reward ourselves
Self-gifts let us motivate, reward,
and console ourselves
218
Need for Information

One reason we read or watch TV
Fuels Internet usage
Plays an important role in
persuasion—if an ad appears
when consumers need
information, they are more likely
to pay attention than when they
don’t need the information
219
Need for Variety

Marketers may introduce
different versions of original
brand
Variety may become focus of
product positioning
220
Motivational Conflict and
Need Priorities
Satisfying a need often comes at the

expense of another need—these
trade-offs cause motivational
conflict
221
Types of Motivational Conflict
Approach-approach: deciding between

two or more desirable options
Avoidance-avoidance: deciding between
two or more undesirable options
Approach-avoidance: behavior has both
positive and negative consequences
222
Need Priorities
Resolving motivational conflicts

requires prioritizing needs
Maslow’s hierarchy
Some needs take precedence over
other needs—physiological needs take
top priority
Differences in the importance attached
to various needs affects how
consumers evaluate products
223
Need Priorities
Because of consumers’ different

motivational priorities, companies
use benefit segmentation: dividing
consumers into different market
segments based on benefits they
seek from purchase and
consumption
224
Maslow’s Hierarchy of Needs
225
Motivational Intensity
Motivational intensity: how strongly

consumers are motivated to satisfy
a particular need
Depends on need’s importance
Involvement: degree to which an
object or behavior is personally
relevant
Motivational intensity and involve-
ment determine amount of effort
consumers exert in satisfying needs
226
The Challenge of Understanding
Consumer Motivation
Reasons underlying consumer

motivation are not always “obvious”
Research is necessary to discover real
motivations behind behaviors
People don’t always want to disclose
real reasons for their actions
People don’t always know why they do
what they do—unconscious motivation
Motivations change over time
227
Unconscious Motivation
228
Motivating Consumers
Motivating with Money
Price cuts, specials, rebates, and
coupons motivate purchase
Resulting sales may increase, but
profits may not
Attracts consumers less likely to
repeat
Price reductions may increase price
sensitivity
229

Price cuts, specials, rebates, and
coupons motivate purchase
Resulting sales may increase, but
profits may not
Attracts consumers less likely to
repeat
Price reductions may increase price
sensitivity
230
231
Provide Other Incentives

Premiums, free products,
contests, and sweepstakes are
designed to motivate consumers
to purchase
232
Motivating with Other Incentives
233
Provide Other Incentives

Premiums, free products,
contests, and sweepstakes are
designed to motivate consumers
to purchase
There are limitations and
shortcomings for this strategy in
addition to the products offered as
a premium being valued less
(value-discounting hypothesis)
234
Implement a Loyalty Program

Motivate repeat buying by providing
rewards to customers based on how
much business they do with the
company
Tracks consumer purchases and
provides estimates of Customer
Lifetime Value
235
Participation in Loyalty Programs
236
Enhance Perceived Risk
Perceived risk: consumers’
apprehensions about the
consequences of their behavior
(buying and consuming the product)
Greater perceived risk increases
search
Educating consumers about risks may
motivate them to make more informed
choices that reduce exposure to risk
237
Informing Consumers of Their Risks
238
Arouse Consumers’ Curiosity
For new products, educating
potential customers is crucial
Curiosity often leads to an enhanced
need for information
May advertise a benefit that is not
normally associated with the product
239
Arousing Curiosity
240
PERCEPTION
The process by which an

individual selects,
organizes, and interprets
stimuli into a meaningful
and coherent picture of
the world.
241
PERCEPTION
You can see a white vase as figure against

a black background, or two black faces in
profile on a white background
242
What do you see?
Now what do you see?
243
244
Müller-Lyer Illusion
– The two lines above are the same length, but the
diagonals extending outward from both ends of
the lower line make it look longer than the upper
line
245
246
247
248
249
YOUR
interpretation of “reality”
after information/stimuli is …
250
Filteredout
 Selected
 Organized
 Defined
….using YOUR existing…
251
Knowledge
Needs
Beliefs
Values
Assumptions
Attitudes.
252
ELEMENTS OF
PERCEPTION
Sensation
The absolute threshold
The differential threshold
Subliminal perception
253
Sensory Receptors: The human organs (eyes, ears, nose, mouth, skin)
that receive sensory inputs.
Absolute Threshold : The lowest level at which an individual can

experience a sensation.
Differential Threshold : The minimal difference that can be detected

between two stimuli. Also known as the j.n.d. (just noticeable difference).
Subliminal Perception: Perception of very weak or rapid stimuli received

below the level of conscious awareness.
254
The immediate and
direct response of the
sensory organs to
stimuli.
Sensation
A perfectly
unchanging
environment provides
little to no sensation
at all!
255
256
A theory concerning the
perceived differentiation
between similar stimuli of
varying intensities (i.e.,
Weber’s the stronger the initial
Law stimulus, the greater the
additional intensity
needed for the second
stimulus to be perceived
as different).
257
 Need to determine the relevant
j.n.d. for their products
 so that negative changes are not
readily discernible to the public
 so that product improvements are
very apparent to consumers
258
259
Perception of very
weak or rapid
Subliminal stimuli received
Perception below the level of
conscious
awareness.
260
The perception of price as an
indicator of product quality
(e.g., the higher the price,
the higher the perceived
quality of the product).
261
262
Nature of Product
Physical Attributes of Product
Package Design
Brand Name
Advertisements & Commercials
Position of Ad
Editorial Environment
263
Selection
Organization
Interpretation
264
 Depends on two major factors
 Consumers’ previous
experience
Consumers’ motives
265
 Selective Exposure
 Selective Attention
Gestalt
Psychology  Perceptual Defense
 Perceptual Blocking
266
267
 Figureand ground
 Grouping
 Closure
268
269
270
271
 Physical Appearances
 Stereotypes
 First Impressions
 Jumping to Conclusions
 Halo Effect
272
Physical Appearances
Stereotypes
IrrelevantCues
First Impressions
Jumping to Conclusions
Halo Effect
273
274
 Threespecial areas of managerial
concern where customer perceptual
processes are complex and highly
consequential are:
 The psychophysics of customer price
perceptions
 Country-of-origin effects
 Managing the corporate image
275
 The psychophysics of price refers to
how customers psychologically
perceive prices
 Reference price
 The price that consumers expect to pay
 Assimilation and contrast
 This principle states that customers have a
latitude of acceptance and rejection
 Price as a quality cue
A basis for making inferences about the quality of
the product or service 276
 Country-of-origin effects refer to the
bias in customer perceptions of
products and services due to the
country in which these products and
services are made
 This perception of country-of-origin
can vary across cultures and across
processing conditions
277
 Corporate image refers to the public perception
of a corporation as a whole
 Customer perceptions of corporate image affect
everything a firm does
 Companies are known to be:
 Producers of high or low-quality products or healthy
products
 Users of high-pressure tactics or soft-selling
approaches
 Socially conscious or utterly selfish merchants
278
PERCEIVED RISK
The degree of uncertainty
perceived by the consumer
as to the consequences
(outcome) of a specific
purchase decision
279
TYPES OF PERCEIVED
RISK
Functional Risk
Physical Risk
Financial Risk
Psychological Risk
Time Risk
280
HOW CONSUMERS
HANDLE RISK
Seek Information
Stay Brand Loyal
Select by Brand Image
Rely on Store Image
Buy the Most Expensive Model
Seek Reassurance
281
Group and Personal
Influence
282
Group and Personal Influences on
Individuals
Other people, whether as

individuals or groups, exert
enormous influence on
consumers
Belonging to groups, trying to “fit
in,” and striving to please others
affects every stage in the decision
process
283
Group and Personal Influences on
Individuals
Reference group: any person or

group of people who significantly
influences an individual’s
behavior
May be individuals (celebrities,
athletes, or political leaders) or
groups of individuals with
similarities (musical groups or
sports teams)
284
Personal and Group Influence
on Individuals High Degree
of Influence
Personal Types of Lifestyles

Influences: Influence Behaviors
•Groups Normative Transmission Purchases
Value Expressive Consumption
•Individuals
Informational
Low Degree
of Influence
285
on Individuals
Personal
Influences:
•Groups
•Individuals
286
Types of Reference Groups
Primary Groups: a social

aggregation that is sufficiently
intimate to permit and facilitate
unrestricted direct interaction
(e.g., family)
287
Secondary Groups: also have

direct interaction, but it is more
sporadic, less comprehensive,
and less influential in shaping
thought and behavior (e.g.,
professional associations or trade
unions
288
Formal Groups: characterized by a

defined structure (often written)
and a known list of members and
requirements for membership
Informal Groups: have less
structure than formal groups and
are likely to be based on
friendship or interests
289
Membership: when individuals are

recognized as members of a group,
they have achieved formal
acceptance status in the group
Aspirational Groups: exhibit a
desire to adopt the norms, values,
and behaviors of others with whom
the individuals aspire to associate
290
Dissociative Groups: groups from

which an individual tries to avoid
association
Virtual Groups: groups that are
based on virtual communities
rather than geographic ones
291
on Individuals
Personal Types of
Influences: Influence
•Groups Normative
•Individuals Value Expressive
Informational
292
Types of Group Influence
Normative: when individuals alter

their behaviors or beliefs to meet the
expectations of a particular group
293

Value-expressive: when a need for
psychological association with a
group causes acceptance of its
norms, values, attitudes, or behaviors
294

Value-expressive: when a need for
psychological association with a
group causes acceptance of its
norms, values, attitudes, or behaviors
Informational: when people have
difficulty assessing product or brand
characteristics by their own
observations or contact 295
on Individuals
Personal Types of
Influences: Influence
•Groups Normative Transmission
•Individuals Value Expressive
Informational
296
on Individuals High Degree
of Influence
Personal Types of Lifestyles

Influences: Influence Behaviors
•Groups Normative Transmission Purchases
•Individuals Value Expressive Consumption
Informational
Low Degree
of Influence
297
How Reference Groups Influence
Individuals
Socialization: permits an individual

to know what behavior is likely to
result in stability both for the
individual and the group
Company manual may explain the
dress code in the workplace
Informal groups may tell them
what styles are most comfortable
and easiest to maintain
298
Individuals
Self-concept: people protect and

modify their self-concept by their
interactions with group members
People can maintain self-concept
by conforming to learned roles
299
Reference Groups Help
Define Self-Concept
300
Individuals
Social comparison: individuals

often evaluate themselves by
comparing themselves to others
Consumers often use reference
groups as benchmarks to measure
their own behaviors, opinions,
abilities, and possessions
Advertising or television can be
sources of social comparison
301
Reference Group Influence on Product
and Brand Purchase Decisions
PRODUCT
Weak Reference Strong Reference
Weak Group Strong Group Group Influence Group Influence
Influences (-) Influences (+)
PUBLIC NECESSITIES PUBLIC LUXURIES
Influence: Weak Influence: Strong
product & strong brand product & strong brand
(watch, autos, suits) (golf clubs, skis, boat)
BRAND
PRIVATE NECESSITIES PRIVATE LUXURIES

Influence: Weak Influence: Strong
product & weak brand product & weak brand
(mattress, refrigerator) (TV, icemaker)
302
High Product Visibility Raises
Reference Group Influence
303
Celebrity and Other Reference
Group Appeals in Advertising
Testimonials: celebrities tout

products based on personal usage
304
Testimonials: celebrities tout

products based on personal usage
Endorsements: celebrities lend
their name or likeness to a product
without necessarily being an
expert in the area
305
Actor or Spokesperson: someone
who represents a brand or
company for an extended time
period
306
Expert appeal: appeal from a

person possessing unique
information or skills that can help
consumers make better purchase
decisions than other types of
spokespersons
Common-man appeal: testimonials
from “regular” consumers with
whom most consumers can relate
307
Opinion Leadership
Opinion leadership: the sender of
information is often considered an
opinion leader—a person who
influences the decisions of others
Opinion leaders might be experts in
one area but not in others
The greater the perceived knowledge
of a category, the more likely that
person’s opinions are to influence
others’ decisions
308
Opinion Leadership
Personal influence in the form of opinion

leadership is likely to occur when:
309
Opinion Leadership
Personal influence in the form of opinion

leadership is likely to occur when:
An individual has limited knowledge of
a product or brand
The person lacks the ability to evaluate
the product or service
The consumer does not trust advertising
and other sources of information
Other information sources have low
credibility with the consumer
310
Opinion Leadership
The individual has a high need for
social approval
Strong social ties exist between sender
and receiver
The product is complex
The product is difficult to test against
objective criterion
The product is highly visible to others
311
Characteristics of Opinion Leaders
Opinion leaders and receivers often
share similar demographic
characteristics and lifestyles, yet
they may have greater social status
within the same group as followers
The most common characteristic is
that opinion leaders are involved
with a particular product category
312
Opinion Leadership
Product innovators: similar to
opinion leaders, these individuals
are the first to try new products
313
Overlapping Opinion Leadership
Market mavens: gather much of
their information from shopping
experiences, openness to
information and general market
awareness, making them more
aware of new products than other
people
314
Overlapping Opinion Leadership
Surrogate consumers (shoppers):

an individual who acts as an agent
to guide, direct, and conduct
activities in the marketplace
315
Service Encounters
Service encounters: occurs when
there is personal communication
between a consumer and a marketer
May be a consumption experience
within a store—the various trans-
actions and services that occur
during a retail purchase
May be an experience consuming the
specific service a consumer
purchases
316
Service Encounters
Service providers must understand
the needs of different customers and
match the appropriate sales
associate or sales approach to each
individual customer
Which customers desire a great deal
of assistance and which ones prefer
little interaction
Salespeople foster a relationship
between buyer and seller
317
Service Encounters
Customer intimacy: detailed

understanding and focus on
customers’ needs lifestyles and
behaviors in an effort to create a
deep cultural connections with the
customers
Reverse customer intimacy: how well
marketers facilitate customers
knowing the marketer
318
How Personal Influences Are
Transmitted
Trickle-down: alleges that lower

classes often emulate the behavior
of their higher-class counterparts
Influence is transmitted vertically
through social classes, when higher
classes express wealth through
conspicuous consumption, and lower
classes copy their behavior
319
Transmitted
Today, trends are transmitted through

mass media and there is very little
direct, personal contact between social
classes
320
Transmitted
Two-step Flow
Opinion leaders are the direct
receivers of information from
advertisements and they interpret
and transmit the information to
others through word-of-mouth
321
Transmitted
Two-step Flow
Information
Information and Influence
Mass Opinion Opinion

Media Leader Seekers
322
Transmitted
Multistep Flow
Information can flow directly to
different types of consumers,
including opinion leaders,
gatekeepers, and opinion seekers
and receivers
323
Transmitted
Multistep Flow
Mass Opinion Opinion

Media Leader Seekers
Gatekeepers
324
WOM and Opinion Leaders in Advertising
and Marketing Strategy
WOM and personal communication

can have a more decisive role in
influencing behavior than
advertising and other marketer-
dominated sources
Viewed as a more trustworthy and
credible source of information than
salespeople or paid advertising
325
Advertising can provide

information to consumers about
products they might seek from
other sources and which may be
discussed in WOM
However, consumers don’t always
trust that the advertiser has their
best interests in mind
326
Advertising influences the

effectiveness of WOM and vice
versa
Advertising can provide
information about products
consumers might not seek from
other sources
Advertising can create WOM among
consumers and peer groups 327
Primary Reliance on
Word-Of-Mouth
For some occasions, companies

rely on WOM as a substitute for
advertising
328
Primary Reliance on
Word-Of-Mouth
For some occasions, companies

rely on WOM as a substitute for
advertising
Retailers such as Wal*Mart and
Victoria’s Secret have demonstrated
that advertising can be sharply
reduced when word-of-mouth is
strong
329
Targeting Opinion Leaders
Firms can market to opinion leaders

as a distinct segment (once they
can be identified)
Mass media can be used to target
leadership roles and
responsibilities with other options
such as association memberships,
direct mail, and trade or special
interest magazines
330
Stimulating Word-Of-Mouth
Firms may stimulate WOM by giving

away or loaning products to opinion
leaders to display and use
Organizations may induce opinion
leaders to influence consumers
331
Creating Opinion Leaders
Firms can create opinion leaders by

providing incentives for new
customers to attract others to the
store
Companies can activate search
through advertising that
encourages consumers to “ask a
person who owns one” or “share
the experience with a friend”
332
Creating Opinion Leaders
333
Managing Negative WOM
Just as positive word-of-mouth can
be a great asset to marketers, the
opposite can be true when the
content in negative
Negative WOM is usually given
high priority and weighs heavily
in decision making
The dissatisfied buyer is more
motivated to share information
334
Monitoring the Content of WOM
Firms can monitor the presence and

impact of WOM—what dissatisfied
consumers are saying about the
product or company
Monitoring rumors which do not
always appear in customer
complaint reports
Creating a strategy to respond to
rumors and negative WOM
335
Curbing Negative WOM
When something goes terribly
wrong, denying the problem is not
the answer
The best strategy is immediate
acknowledgement by a credible
company spokesperson as negative
WOM rarely goes away by itself
Make sure you have all your facts
straight and tell the truth
336
Diffusion of Innovations
Innovation: any idea or product

perceived by the potential adopter
to be new
Product innovation: any new
product recently introduced to the
market or perceived to be new
when compared to existing
products
Consumers can view innovations
subjectively or objectively
337
Diffusion of Innovations
Subjective Innovation: a definition
derived from the thought structure
of a particular individual or entity
Objective innovation: based on
external criteria; innovations are
ideas, behaviors, or things that are
qualitatively different from
existing forms
338
Innovations and New Products
Marketers often use the word

“new” to call attention to products
recently introduced to the
marketplace
The use of the word “new” in
advertising is limited to products
available for less than six months
New products can change the way
consumers live and how society is
organized
339
Types of Innovations
Classified based on the impact of
the innovation on behavior in the
social structure
Continuous innovation
Dynamically continuous
innovation
Discontinuous innovation
340
Continuous Innovation
The modification of an existing
product rather than the
establishment of a totally new
product
Modification may be in the taste,
appearance, performance, or
reliability of the existing product
341
Continuous Innovation
342
Dynamically Continuous Innovation
May involve either the creation of a

new product or a significant
alteration of an existing one
Does not generally alter
established purchase or usage
patterns
343
Dynamically Continuous
Innovation
344
Discontinuous Innovation
Involves the introduction of an

entirely new product that
significantly alters consumers’
behavior patterns and lifestyles
Examples include automobiles,
televisions, videocassette
recorders, and computers
345
Types of Innovations
While innovations are usually
considered in terms of new
products, they might also be
usage based—finding new uses
for old products
346
Why Some Innovations Succeed
and Others Don’t
Successful products are those that

become culturally anchored—so
inextricably a part of a consumer’s
life and sociocultural surroundings
that the person-product interface is
an important part of the individual’s
self-concept
Imagine being without personal
computers or microwave ovens
347
Why Some Innovations Succeed
and Others Don’t
Relative Advantage
Compatibility
Complexity
Trialability
Observability
348
Relative Advantage
The degree to which consumers

may perceive the innovation to
offer substantially greater benefits
than the product they currently
use
To what degree will the new product
be a substitute for existing ones or
complement those already in
consumers’ inventories?
New products most likely to succeed
appeal strongly to felt consumer
needs 349
Compatibility
The degree to which a new product
is consistent with an individual’s
existing practices, values, needs,
and past experiences of the
potential adopters
How does the innovation blend with
products consumers might own?
Will it replace other products or will it
become a part of an existing system?
How does the innovation fit current
purchase or consumption behaviors?
350
Complexity
The degree to which an innovation

is perceived as difficult to
understand and use
The more complex, the more difficult
it will be to gain acceptance
Complexity is a deterrent of trying
new technology
351
Complexity
How difficult is the innovation to

understand?
How easy is it to explain to consumers
in written form and oral communication?
How frustrating will it be to consumers
when evaluating products or learning
how to use new innovation?
How much time will consumers have to
devote to learning how to use and care
for the product?
352
Trialability
New products are more apt to

succeed when consumers can
experiment with or try the idea on a
limited basis, with limited financial
risk
How can a company encourage

consumers to try a new product?
Where will consumers be able to try
the innovation and how will they
receive answers to their questions?
353
Observability
The degree to which results from

using a new product are visible to
friends and neighbors
If consumers can see others
benefiting from the use of a new
product, that innovation is more
likely to be successful and diffuse
faster
354
The Diffusion Process
Diffusion: the process by which an
innovation (new idea) is
communicated through certain
channels over time among the
members of a social system
Includes:
Diffusion of information and
communication
Consumer decision process
Diffusion or demise of innovation
355
Factors Affecting Diffusion
Communication (how consumers
learn about new products)
Time (how long it takes for a
person to move from product
awareness to product purchase or
rejection)
Social system (groups or segments
to which individuals belong affect
adoption or rejection)
356
Speed of Diffusion
Diffusion will be faster if:

Supplier is intensely competitive
Supplier’s reputation is good
Standardized technology is used
Vertical coordination among
channel members exists
Resource commitments are
significant
357
Rogers Model of Innovation Decision Process
Communication Channels
Implemen-
Knowledge Persuasion Decision Confirmation
tation
358
Knowledge: begins when the

consumer receives physical or
social stimuli that gives exposure
and attention to the new product
and how it works
How a person receives and
interprets the knowledge is
affected by their personal
characteristics
359
Persuasion: refers to the

formation of favorable or
unfavorable attitudes towards
the innovation
Persuasiveness is related to the
perceived risks and
consequences of adopting and
using the new product
360
Decision: involves a choice

between adopting and rejecting
the innovation
Adoptors are people who have
made a decision to use a new
product whereas other are
nonadoptors
Rejection may be active or
passive
361
Implementation: occurs when the

consumer puts an innovation to
use
The process has been a mental
exercise until this point where it
requires a behavioral change
The strength of the marketing
plan may be the critical
determinant in a sale resulting
362
Confirmation: during this stage,

consumer seek reinforcement for
their innovation decision
Consumer may reverse previous
decision due to conflicting
messages resulting in dissonance
Discontinuance is a serious
concern to marketers who strive
for continued acceptance
363
Consumer Most Likely to Buy New
Products
Marketers need to determine who
is most likely to buy the new
product while in the development
process
Determinants include individual’s
personalities, social status, education
level, and aversion to or acceptance of
risk
Different adoptor classifications behave
differently during the decision process
364
Adopter Classes
A B C D E
A= Innovators (2.5%)
B= Early Adopters (13.5%)
C= Early Majority (34%)
D= Late Majority (34%)
E= Laggards (16%)
365
Positioning New Products on Insight
366
Consumer beliefs, feelings,
attitudes and intentions
367
Attitudes
Evaluative judgments
Intentions
Subjective judgments by people about how they will
behave in the future
Beliefs
Subjective judgments about the relationship
between two or more things
Feelings
An affective state (e.g. current mood state) or
reaction (e.g. emotions experienced during product
consumption) 368
Consumer beliefs
A sampling of consumer beliefs

– If a deal seems to good to be true, it probably is.
– You can’t believe what most advertising says these days.
– Auto repair shops take advantage of women.
– People need less money to live on once they retire.
– It’s not safe to use credit cards on the Internet.
– Appliances today are not as durable as they were 20
years ago.
– Extended warranties are worth the money.
– You get what you pay for: lower price means lower
quality.
– Changing the oil in your car every three thousand miles
369
is a waste of money.
Consumer beliefs
Expectations
Brand distinctiveness
Inferential beliefs
Consumer confusion
370
Consumer expectations
Expectations are beliefs about the future
Consumers’ willingness to spend is influenced by

beliefs about their financial future
371
Brand distinctiveness
Why should a consumer
want to buy your brand
instead of the
competitor’s?
The desirability of
products having
something unique to
offer to their consumers
is also known as the
Unique Selling
Proposition (USP)
372
Inferential beliefs
Consumers use
information about one
thing to form beliefs about
something else
Beliefs are often inferred
when product information
is incomplete
Also undertaken when
consumers interpret
certain product attributes
as signals of product
quality, e.g. price-quality
inferential beliefs 373
Consumer confusion
Sometimes consumers do not know what to

believe due to many different reasons
– May arise due to conflicting information and
knowledge
– Mistaking one company’s product for the product of
another company
– Due to changes in a product’s position and image
Consumers respond to confusion by:

– Undertaking further information search
– Basing their decision on things that are perfectly
clear, e.g. price
– Deferring product purchase indefinitely
374
Types of consumer feelings
Upbeat Negative Warm
Active Angry Affectionate

Adventurous Annoyed Calm
Alive Bad Concerned
Attractive Bored Contemplative
Confident Critical Emotional
Creative Defiant Hopeful
Elated Disgusted Kind
Energetic Fed-up Peaceful
Good Insulted Pensive
Happy Irritated Touched
Pleased Regretful Warm-hearted
375
Consumer feelings
Feelings as part of the advertising experience

Feelings as part of the shopping experience
Feelings as part of the consumption experience
376
Consumer feelings
Feelings as part of the advertising experience

– Feelings activated by the advertisement have the potential to
influence attitudes formed about the featured product
– The program in which advertising appears can induce
feelings and affect post-message attitudes
377
Consumer feelings
Feelings as part of the shopping experience

– The retail environment elicits different feelings in consumers
ultimately affecting their attitudes and behaviours in the store
– The shopping environment can evoke pleasure, arousal, or
dominance in consumers
Feelings as part of the consumption experience

– Some consumption experiences are liked primarily for the
feelings they induce
– Feelings during consumption will influence post-consumption
evaluations
– Consumers are more satisfied when product consumption
leads to positive feelings while avoiding negative ones
378
 Attitudes are our evaluations of:
 Objects
 People
 Places
 Brands
 Products
 Organizations, etc.
 People evaluate these in terms of their

goodness, likability, or desirability
379
Consumer attitudes
Properties of attitudes:
– Valence: Whether the attitude is positive, negative or neutral

– Extremity: The intensity of liking or disliking
– Resistance: Degree to which the attitude is immune to
change
– Confidence: Belief that attitude is correct
– Accessibility: How easily the attitude can be retrieved from
memory
380
381
Attitude Object
Attitude Dhl, For Shipping A Shopping For Airline
Component Business’s Small Packages Tickets On The Internet
Cognitions or • DHL is very reliable in its service. • For my airline tickets, shopping on the
Beliefs • DHL is more economical than other internet is very convenient.
package carrier services. • You can find the cheapest fares by
• DHL is able to customize its service to shopping on the internet.
my shipping needs. • Internet based travel agents do not offer
you a comprehensive set of airline and
flight options.
Affect or • When I ship by DHL, I feel secure. • Shopping on the Internet is:
Feelings • I am very happy to be suing DHL for my (please circle as many as apply)
shipping needs. Totally cool Boring Confusing
• I don’t care if DHL goes out of business. A pain in the neck Enjoyable Terrible
• I use DHL for my shipping more than I • I have used Internet for my travel airline
Conations or
use other carriers. tickets recently.
Actions
• I am often recommending DHL to other • I often search Internet for planning my
business associates. travel itinerary.
• I am looking for alternative carriers. 382
Types of attitudes
Attitude towards the object (Ao) represents the
evaluation of the attitude object
Attitude towards the advertisement (Aad ) represents
the evaluation of an advertisement
Attitude towards the behaviour (Ab)

represents the evaluation of performing a
particular behaviour involving the attitude
object
Preferences represent attitudes toward
one object in relation to another 383
Attitude toward the behaviour:
Buying a Dell personal computer would be:
Very good 1 2 3 4 5 Very bad
Very rewarding 1 2 3 4 5 Very punishing
Very wise 1 2 3 4 5 Very foolish
Attitude toward the object:

How much do you like/dislike Dell computers?
Like very much 1 2 3 4 5 Dislike very much
Preference:
Compared to Apple personal computers, how
much do you like Dell personal computers?
Like IBM much 1 2 3 4 5 Like Apple much
more than Apple more than IBM
384
 The Utilitarian Function
 The Ego-defensive
Function
 The Value-expressive
Function
 The Knowledge
Function
385
Attitudes have 4 main functions:
Utilitarian function
– Attitudes help consumers adjust to situations
– People seek out group acceptance in order to
gain praise or rewards and avoid punishment
1. Ego defensive function
– Attitudes are formed to protect the ‘ego’
1. Value expressive function
– A consumer’s attitudes are often a reflection
of their values
1. Knowledge function
– Attitudes help consumers make decisions
and process and filter information
386
387
388
389
390
FUNCTION DEFINITION EXAMPLE
Utilitarian Related to whether the object serves I prefer no-crease jeans because
some utility they are easy to care for.
Ego- Held to protect a person’s ego My income may not be high, but
defensive I can buy this luxury car.
Knowledge Related to whether the object adds to I like to work with this
a person’s knowledge salesperson, because he spends a
lot of time learning my needs
and explaining how his
company’s products will help
our company.
Value- Manifesting one’s existing values Every year I donate to the art
expressive institute and a local dance
theater because the arts are a
vital part of this community.
391
 Likert scales
 Used to measure attitudes by offering
respondents a list of attitude
statements, for example:
Colgate is a brand I can trust.
1. Strongly Disagree
2. Disagree
3. Neither Agree nor Disagree
4. Agree
5. Strongly Agree
392
 Semantic differential scales
 Uses a 7-point rating scale with bipolar
labels at the end points
 Tends to measure a person’s beliefs
about a product, for example: Unpleasant taste
Pleasant taste
Low priced High priced
393
 Measuring purchase intention
 Used to measure whether a consumer is
likely to purchase a particular product,
for example
1. How often do you usually purchase Colgate toothpaste?
 Weekly
 Once a month
 Once every few months
 Very occasionally
1. How likely are you to buy Colgate toothpaste in the next 3 months?
 Highly likely to buy
 Probably will buy
 Might buy
 Probably will not buy
 Definitely will not buy
394
The Fishbein Multiattribute
Attitude Model
n
Ao = Σ bi ei
i =1
Ao = attitude toward the object
bi = strength of the belief that object has attribute i
ei = evaluation of attribute i
n = number of salient or important attributes
395
The Fishbein Multiattribute
Attitude Model
Model proposes that attitude toward an object

is based on the summed set of beliefs about
the object’s attributes weighted by the
evaluation of these attributes
Attributes can be any product or brand
association
396
Consumer attitudes
Companies want
consumers to perceive
their products as:
– possessing desirable
attributes (when ei positive,
bi should be positive)
– not possessing
undesirable attributes
(when ei is negative, bi
should be negative) 397
The Ideal-Point Multiattribute
Attitude Model
n
AP = Σ Wi Ii - Xi
i =1
AP = attitude toward product
Wi = importance of attribute i
Ii = ideal performance on attribute i
Xi = belief about product’s actual performance on
attribute i
n = number of salient attributes 398
The Ideal-Point Multiattribute
Attitude Model
Consumers indicate
where they believe a
product is located on
scales representing the
various levels of salient
attributes
Also report where ideal
product would fall on
these scales
The closer the ideal and
actual ratings, the more 399
Benefits of using multiattribute
attitude models
Diagnostic power: examine why consumers like or
dislike products
Simultaneous importance-performance grid with
marketing implications for each cell
Can provide information for segmentation (based
on importance of product attributes)
Useful in new product development
Guidance in identifying attitude change strategies 400
Stimulus Importance-Performance Grid
Attribute Our Competitor’s Simultaneous
Importance Performance Performance Result
Poor Neglected Opportunity

POOR
Good Competitive Disadvantage
HIGH
Poor Competitive Advantage
GOOD
Good Head-to-head competition
Poor Null Opportunity

POOR
Good False Alarm
LOW
Poor False Advantage
GOOD
Good False Competition
401
 Two conditions must exist to allow
for attitude change:
 The object of the attitude must no
longer provide the satisfaction that it
once did
 Attitudes can change when the
consumer’s aspirations change
 Attitude change occurs when one
of the three elements of attitude
(affect, cognition, behaviour)
402
 Conditioning
 Build up positive feelings through rewards,
positive music or emotive symbols
 Feelings towards
advertisement/communication
 If you like the advertisement, there is a
greater chance you’ll like the product
 Using well-liked celebrities
 Mere exposure
 Just showing an advertisement or
communication to consumers can lead to a
positive attitude 403
 Changing
consumer’s
beliefs about
the attributes of
a brand
 Providing
information
about the brand
404
 Influencing consumers to
change the importance of
beliefs about the product
 Communicate the
importance of other
attributes
405
 Changing
consumer beliefs
about the ‘ideal’
brand
 Specifywhat
should be most
important about
the brand
406
 Adding new
beliefs about
the brand
 ‘Did
you
know
that….?’
407
 Attitudes
can change as a result of
behaviour
 Encourage consumers to try your

product. For example, with samples
or tastings
408
 Changing what is viewed as normal in
a situation
 For example, attitudes to Milk or Egg

have changed as a result of
campaigns emphasising the benefits
of them.
409
 Source credibility
 Attractiveness
 Expertise
 Trustworthiness
 Message characteristics
 Media characteristics
 Receiver characteristics
410
Attitude change implications from
multiattribute attitude models
Three primary ways for changing consumer
attitudes:
– Change beliefs
– Change attribute importance
– Change ideal points
411
Changing consumer attitudes:
Changing attribute importance
Changing an attribute’s importance is more difficult
than changing a belief
How is a brand perceived relative to ideal
performance?
Increasing attribute importance is desirable when
the competitor’s brand is farther from the ideal
point than your product
Firms may add a new attribute
412
Consumer intentions
Useful for firms when predicting how people will

act as consumers
– How much existing product should be produced to

meet demand?
– How much demand will there be for a new product?
Firms interested in many types of consumer

intentions
413
Types of intentions
Spending intentions
Purchase intentions
Repurchase intentions
Shopping intentions
Search intentions
Consumption intentions
414
Types of intentions
Spending intentions reflect how much money
consumers think they will spend
Will you spend at least $1,000 on Christmas gifts this year?
No chance 1 2 3 4 5 6 7 I definitely will
Purchase intentions represent what consumers

think they will buy
Will you buy a Mercedes-Benz automobile during the next

12 months?
415
Types of intentions
Repurchase intentions indicate whether
consumers anticipate buying the same product or
brand again
The next time you purchase coffee, will you buy the same
brand?
Shopping intentions capture where consumers

plan on making their product purchases
Will you shop at Wal*Mart during the next 30 days?

416
Types of intentions
Search intentions indicate consumers’ intentions
to engage in external search
The next time you need to be hospitalised, will you speak
to your doctor before choosing a hospital?
Consumption intentions represent consumers’

intentions to engage in a particular consumption
activity
Will you watch the next Super Bowl?
No chance 1 2 3 4 5 6 7 I definitely will 417

Holds that discomfort
or dissonance occurs
Cognitive when a consumer
Dissonance holds conflicting
Theory thoughts about a
belief or an attitude
object.
418
419
Cognitive dissonance
that occurs after a
consumer has made a
purchase
commitment.
Postpurchase
Consumers resolve
Dissonance
this dissonance
through a variety of
strategies designed to
confirm the wisdom
of their choice.
420
A theory concerned
with how people assign
casualty to events and
Attribution form or alter their
Theory attitudes as an outcome
of assessing their own
or other people’s
behavior.
421
 Self-perception Theory
 Attributions Toward Others
 Attributions Toward Things
422
A theory that suggests
Self- that consumers
Perception develop attitudes by
Theory reflecting on their own
behavior.
423
A theory that suggests
consumers are likely
to accept credit for
Defensive successful outcomes
Attribution (internal attribution)
and to blame other
persons or products for
failure (external
attribution).
424
USER PAYER BUYER
Customer • Users like products/services • Payers have attitude • Buyers like some vendors
attitudes they use, and dislike towards credit. more than others.
products they avoid.
Three- • Users hold beliefs about • Payers have beliefs, • Buyers have beliefs about the
component- products and services, have feelings, and behaviors attributes of vendors, have
model feelings toward them, and toward specific credit feelings of like or dislike
manifest approach or cards, and other forms toward them, and patronize or
avoidance behavior. of payment methods. ignore them, accordingly.
Fishbein’s • Subjective norms dictate • Subjective norms • Subjective norms influence

extended model customer use or nonuse of influence a person’s one’s choice of vendors.
many products/services. debt behavior, and also Government has list of
spending norms for approved vendors.
specific purchases.
High and low • Users are very involved • Payers differ in their • Some buyers are highly
involvement with some products, concern with what involved, others not.
exhibiting fanatic happens to the money
consumption. they pay.
425

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CONSUMER

• A partnership that lasted 17 years

• TVS backed a vision that developed capability

• Fuel Economy • High Maintenance

How do consumers make

How do firms use this information

The CDP represents a road map of

Search for Information

Pre-purchase Evaluation of Alternatives

 Does not reflect buyer’s self concept

Low Involvement Products

Purchase Decision in Low Involvement

 Large difference between alternatives

 High perceived risks

 Reflect self-concept of Buyer

Development of Decision Criteria

Search for Alternatives

High Involvement Products

Search for Information

Internal search: retrieving know-

Search refers to a receptivity of

Search for Information

Pre-purchase Evaluation of Alternatives

Salient attributes such as price and

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase intention can change

Search for Information

Pre-purchase Evaluation of Alternatives

Search for Information

Pre-purchase Evaluation of Alternatives

Identify relationships and variables

Extended Midrange Limited

Extended Midrange Limited Habitual

Degree of Involvement: Level of

Degree of Involvement (High-Low)

Degree of Involvement (High-Low)

Perceptions of differences among

Many products are purchased

How families make purchase

Family: a group of two or more

Extended family: nuclear family,

© AP/Wide World Photos

Household: all persons, both

Nonfamily households include:

Elderly persons living with

Families are the largest single

Structural variables affecting

Structural variables affecting

Cohesion: emotional bonding between

Marketers frequently refer to

Gift giving and family holidays are

Instrumental roles: financial,

Expressive roles: involve

Individual roles in family purchases

Buyer: person who acts as the

Different family members will

Family marketing focuses on the

Family marketing differentiates

Who’s buying for whom?

Spousal roles in buying decisions

Autonomic: an equal number of