CHAPTER SUMMARY

Consumer behavior is influenced by three factors: cultural (culture, subculture, and social
class); social (reference groups, family, and social roles and statuses); and personal (age,
stage in the life cycle, occupation, economic circumstances, lifestyle, personality, and
self-concept). Research into all these factors can provide marketers ith clues to reach
and serve consumers more effectively.
!our main psychological processes affect consumer behavior: motivation, perception,
learning, and memory.
"o understand ho consumers actually make buying decisions, marketers must identify
ho makes and has input into the buying decision; people can be initiators, influencers,
deciders, buyers, or users. #ifferent marketing campaigns might be targeted to each type
of person.
"he typical buying process consists of the folloing se$uence of events: problem
recognition, information search, evaluation of alternatives, purchase decision, and
postpurchase behavior. "he marketers% &ob is to understand the behavior at each stage.
"he attitudes of others, unanticipated situational factors, and perceived risk may all affect
the decision to buy, as ill consumers% levels of postpurchase product satisfaction, use,
and disposal and actions on the part of the company.
Consumers are constructive decision-makers and sub&ect to many conte'tual influences.
Consumers often e'hibit lo involvement in their decisions, using many heuristics as a
result.
C H A P T E R
ANALYZING CONSUMER
MARKETS
Chapter-by-Chapter (nstructional )aterial
DETAILED CHAPTER OUTLINE
"he aim of marketing is to meet and satisfy target customers% needs and ants better than
competitors. )arketers are alays looking for emerging customer trends that suggest ne
marketing opportunities. *uccessful marketing re$uires that companies fully connect ith
their customers. +dopting a holistic marketing orientation means understanding customers ,
gaining a -./-degree vie of both their daily lives and the changes that occur during their
lifetimes so that the right products are marketed to the right customers in the right ay.
WHAT INFLUENCES CONSUMER BEHAVIOR?
+ consumer%s buying behavior is influenced by cultural, social, and personal factors. Cultural
factors e'ert the broadest and deepest influence.
Cultural !actors
Culture is the fundamental determinant of a persons% ants and behaviors.
0ach culture consists of smaller subcultures that provide more specific identification and
sociali1ation for their members.
+) *ubcultures include nationalities, religions, racial groups, and geographic regions.
2) )ulticultural marketing gre out of careful marketing research that revealed that
different ethic and demographic niches did not alays respond favorable to mass-
market advertising.
C) 3irtually all human societies e'hibit social stratification. *ocial stratification
sometimes takes the form of a caste system here members of different castes are
reared for certain roles and cannot change their caste membership.
#) )ore fre$uently, it takes the form of social classes, relatively homogeneous and
enduring divisions in a society that are hierarchically ordered and hose members
share similar values, interests, and behavior.
0) 4ne class depiction of social classes in the 5nited *tates defined seven ascending
levels:
6) 7oer loers
8) 5pper loers
-) 9orking class
:) )iddle class
;) 5pper middles
.) 7oer uppers
<) 5pper uppers
!) *ocial classes have several characteristics:
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Chapter .: +naly1ing Consumer )arkets
6) "hose ithin a class tend to behave more alike than persons from
to different social classes
8) =ersons are perceived as occupying inferior or superior positions
according to social class.
-) *ocial class is indicated by a cluster of variables (occupation, income, etc.) rather
than by any single variable.
:) (ndividuals can move up or don the social-class ladder.
>) *ocial classes sho distinct product and brand preferences in many
areas.
?) *ocial classes differ in media preferences.
() "here are language differences among the social classes.
*ocial !actors
(n addition to cultural factors, a consumer%s behavior is influenced by such social factors as
reference groups, family, and social roles and statuses.
+) + person%s reference groups consists of all the groups that have a direct (face-to-
face) or indirect influence on his@her attitudes or behavior.
6) >roups having a direct influence on a person are called membership groups.
a. *ome memberships groups are primary groups such as family, friends,
neighbors, and co-orkers ith hom the person interacts fairly continuously
and informally.
b. *ome membership groups are secondary groups such as religious, professional
groups that tend to be more formal.
8) Reference groups e'pose an individual to ne behaviors and lifestyles,
influencing attitudes and self-concept.
-) "hey create pressures for conformity that may affect actual product and brand
choices.
:) =eople are also influenced by groups to hich they do no belong:
a. +spiration groups are those a person hopes to &oin.
b. #issociative groups are those hose values or behavior an individual re&ects.
"he buyer evaluates these elements together ith the monetary cost to form a
total customer cost.
C) )anufacturers of products and brands here group influence is strong must determine
ho to reach and influence opinion leaders in these reference groups.
#) +n opinion leader is the person in informal, product-related communications ho
offers advice or information about a specific product or product category.
)0 )arketers try to reach opinion leaders by identifying demographic and psychographic
characteristics associated ith opinion leadership, identifying the media read by
opinion leaders, and directing messages at opinion leaders.
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Chapter-by-Chapter (nstructional )aterial
!amily
"he family is the most important consumer-buying organi1ation in society, and family
members constitute the most influential primary reference group.
+) 9e can distinguish beteen to families in the buyer%s life.
6) "he family of orientation consists of parents and siblings.
8) + more direct influence on everyday buying behavior is the family of procreation
,namely, one%s spouse and children.
2) "he makeup of the +merican family has changed dramatically.
C) )arketers are interested in the roles and relative influence of family members in the
purchase of a large variety of products and services.
#) 9ith e'pensive products and services, the vast ma&ority of husbands and ives
engage in more &oint decision-making.
0) )en and omen may respond differently to marketing messages.
!) +nother shift in buying patterns is an increase in the amount of dollars spent and the
direct and indirect influence ielded by children and teens.
Roles and *tatuses
+) + person participates in many groups and a person%s position in each group can be
defined in terms of role and status.
2) 0ach role carries a status.
C) )arketers must be aare of the status symbol potential of products and brands.
=ersonal !actors
+ buyer%s decisions are also influenced by personal characteristics. "hese include the buyer%s
age and stage in the life cycle; occupation and economic circumstances; personality and self-
concept; and lifestyle and values.
+ge and *tage in the 7ife Cycle
=eople buy different goods and services over a lifetime. +dults e'perience certain ApassagesB
or AtransformationsB as they go through life.
+) Critical life events or transitions give rise to ne needs.
4ccupation and 0conomic Circumstances
4ccupation influences consumption patterns and economic circumstances influence product.
=roduct choice is greatly affected by economic circumstances including:
+) *pendable income (level, stability, and time pattern)
2) *avings and assets
C) #ebts
#) 2orroing poer
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Chapter .: +naly1ing Consumer )arkets
0) +ttitudes toard spending and saving
=ersonality and *elf-Concept
0ach person has personality characteristics that influence his or her buying behavior.
=ersonality: + set of distinguishing human psychological traits that leads to relatively
consistent and enduring responses to environmental stimuli.
+) "he idea is that brands have personalities and consumers are likely to choose brands
hose personalities match their on.
2) 9e define brand personality as the specific mi' of human traits that may be attributed
to a particular brand. Cennifer +aker identified the folloing five traits:
6) *incerity (don-to-earth)
8) 0'citement (daring)
-) Competence (reliable)
:) *ophistication (upper-class)
;) Ruggedness (outdoorsy)
C) Consumers also choose and use brand that have a brand personality consistent ith
their on actual self-concept (ho one vies themselves).
#) +lthough in some cases, the match may be based on the consumer%s ideal self-concept
(ho e ould like to vie ourselves).
0) 4thers self-concept (ho e think others see us).
7ifestyles and 3alue
+) =eople from the same subculture, social class, and occupation may lead $uite different
lifestyles. + lifestyle is a person%s pattern of living in the orld as e'pressed in
activities, interests, and opinions. 7ifestyle portrays the Ahole personB interacting
ith his or her environment.
2) )arketers search for relationships beteen their products and lifestyle groups.
C) 7ifestyle is a person%s pattern of living in the orld as e'pressed in activities, interests,
and opinions.
#) 74?+* is an acronym standing for: 7ifestyles of health and sustainability
0) 7ifestyles are shaped partly by hether consumers are money-constrained or time-
constrained.
!) Consumers ho e'perience time famine are pront to multitasking, doing to or more
things at the same time.
KEY PSYCHOLOGICAL PROCESSES
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Chapter-by-Chapter (nstructional )aterial
"he starting point for understanding consumer behavior is the stimulus-response model.
+) "he marketer%s task is to understand hat happens in the consumer%s consciousness
beteen the arrival of the outside marketing stimuli and the ultimate purchase
decisions.
)otivation: !reud, )aslo, ?er1berg
+ person has many needs at any given time. *ome needs are:
)+ 2iogenic (arise from physiological states of tension such as hunger).
)2 4thers are psychogenic and arise from a need for recognition, esteem, or belonging.
)C + motive is a need that is sufficiently pressing to drive the person to act.
!reud%s "heory
*igmund !reud assumed that the psychological forces shaping people%s behavior are largely
unconscious, and that a person cannot fully understand his or her on motivations.
+) + techni$ue called laddering can be used to trace a person%s motivations from the
stated instrumental ones to the more terminal ones.
2) )otivation researchers often collect Ain-depth interviesB to uncover deeper
motives triggered by a product.
6) =ro&ective techni$ues such as ord association, sentence completion, and role-
playing are used. Customer 8 is mi'ed profitability.
)aslo%s "heory
+braham )aslo sought to e'plain hy people are driven by particular needs at particular
times.
+) )aslo%s anser is that human needs are arranged in a hierarchy, from the most
pressing to the least pressing.
2) (n order of importance, they are:
)6 =hysiological needs
)8 *afety needs
)- *ocial needs
): 0steem needs
); *elf-actuali1ation needs
?er1berg%s "heory
!rederick ?er1berg developed a to-factor theory that distinguishes dissatisfiers (factors that
cause dissatisfaction) from satisfiers (factors that cause satisfaction). "he absence of
dissatisfiers is not enough; satisfiers must be present to motivate a purchase.
+) ?er1berg%s theory has to implications:
)6 *ellers should do their best to avoid dissatisfiers.
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Chapter .: +naly1ing Consumer )arkets
)8 *ellers should identify the ma&or satisfiers or motivators of purchase in the market
and supply them. "hese satisfiers ill make the ma&or difference as to hich
brand the customer buys.
=erception
?o the motivated person actually acts is influenced by his or her vie or perception of the
situation.
+) =erception is the process by hich an individual selects, organi1es, and interprets
information inputs to create a meaningful picture of the orld.
2) =erception depends not only on the physical stimuli, but also on the stimuli%s relation to
the surrounding field and on conditions ithin the individual.
C) "he key point is that perceptions vary idely among individuals e'posed to the same
reality.
(n marketing, perceptions are more important than the reality, as it is perceptions ill affect
consumers% actual behavior.
*elective +ttention
(t has been estimated that a person is e'posed to over 6,;// ads or brand communi cations a
day. 2ecause a person cannot possibly attend to all of these, most stimuli ill be screened out
Da process called selective attention.
+) *elective attention means that marketers have to ork hard to attract consumers%
notice.
6) =eople are more likely to notice stimuli that relates to a current need.
8) =eople are more likely to notice stimuli that they anticipate.
-) =eople are more likely to notice stimuli hose deviations are large in relation to
the normal si1e of the stimuli.
*elective #istortion
*elective distortion is the tendency to interpret information in a ay that ill fit our
preconceptions. Consumers ill often distort information to be consistent ith prior brands
and product beliefs.
+) 0'amples of branded differences can be found ith virtually every type of product.
6) *elective distortion can ork to the advantage of marketers ith strong brands
hen consumers distort neutral or ambiguous brand information to make it more
positive.
*elective Retention
+) =eople ill fail to register much information to hich they are e'posed in memory, but
ill tend to retain information that supports their attitudes and beliefs.
2) 2ecause of selective retention, e are likely to remember good points about a product
e like and forget good points about competing products.
*ubliminal =erception
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Chapter-by-Chapter (nstructional )aterial
+) "he selective perception mechanisms re$uire active engagement and thought by
consumers.
2) "he topic of subliminal perception, the argument that marketers embed covert,
subliminal messages in ads or packages and consumers are not consciously aare of these
messages, but yet they affect their behavior
C) Eo evidence supports this notion that marketers can systematically control consumers
at the unconscious level.
7earning
7earning induces changes in our behavior arising from e'perience.
+) + drive is a strong internal stimulus impelling action
2) Cues are minor stimuli that determine hen, here, and ho a person responds
C) #iscrimination means that the person has learned to recogni1e differences in sets of
similar stimuli and can ad&ust responses accordingly.
#) ?edonic bias says people have a general tendency to attribute success to themselves
and failure to e'ternal causes.
)emory
+ll information and e'periences individuals encounter as they go through life can end up in
their long-term memory.
+) Cognitive psychologists distinguish beteen short-term memory (*"))Da
temporary repository of information.
2) 7ong-term memory (7"))Da more permanent repository
C) "he associative netork memory model vies 7") as consisting of a set of nodes
and links:
6) Eodes are stored information
8) Collected by links that vary in strength
#) Consumer brand knoledge in memory can be conceptuali1ed as consisting of a brand
node in memory ith a variety of linked associations.
0) 2rand associations consist of all brand-related thoughts, feelings, perceptions, images,
e'periences, beliefs, and attitudes, linked to the brand node.
!) )arketers can be seen as making sure that consumers have the right types of product
and service e'periences such that the right brand knoledge structures are created and
maintained in memory.
)emory =rocesses
)emory is a very constructive process, because e don%t remember information and events
completely and accurately. 4ften e remember bits and pieces and fill in the rest. encoding
refers to ho and here information gets into memory.
+) )emory encoding describes ho and here information gets into memory.
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Chapter .: +naly1ing Consumer )arkets
2) (n general, the more attention placed on the meaning of information during encoding,
the stronger the resulting associations in memory ill be.
C) +nother key determinant of the strength of a nely formed association ill be the
content, organi1ation, and strength of e'isting brand associations in memory.
#) 4ne reason hy personal e'periences create such strong brand associations is that
information about the product is likely to be related to e'isting knoledge.
0) Repeated e'posures to information provide greater opportunity for processing and thus
)emory Retrieval
)emory retrieval refers to ho information gets out of memory. *uccessful recall of brand
information by consumers does not depend only on the initial strength of that information in
memory. "hree factors are particularly important:
+) "he presence of other pertinent information in memory can produce interference
effects.
2) "he time e'posure to information at encoding affects the strength of a ne association
Dthe longer the time delay, the eaker the association.
C) (nformation may be AavailableB in memory (potentially recallable) but may not be
AaccessibleB (unable to be recalled) ithout the proper retrieval cues or reminders.
THE BUYING DECISION PROCESS: THE FIVE-STAGE MODEL
"hese basic psychological processes play an important role in understanding ho consumers
actually make their buying decisions. )arketers must understand every facet of consumer
behavior. )arketing scholars have developed a Astage modelB of the buying-decision process.
"he consumer passes through five stages:
+) =roblem recognition
2) (nformation search
C) 0valuation of alternatives
#) =urchase decision
!) =ostpurchase behavior
=roblem Recognition
+) "he buying process starts hen the buyer recogni1es a problem or need.
2) "he need can be triggered by internal or e'ternal stimuli.
C) )arketers need to identify the circumstances that trigger a particular need so that they
can develop marketing strategies that trigger consumer interest.
(nformation *earch
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Chapter-by-Chapter (nstructional )aterial
+) +n aroused consumer ill be inclined to search for more information. 9e can
distinguish beteen to types of arousal.
2) "he milder state is called heightened attention here a person simply becomes more
receptive to information about a product.
C) "he second level is active information search here a person looks for reading
material, going online, etc. to learn about the product.
(nformation *ources
6) =ersonal (family, friends)
8) Commercial (advertising, 9eb sites, salespeople)
-) =ublic (mass media, consumer organi1ations)
:) 0'periential (handling, e'amining, using the product)
#) >enerally speaking the consumer receives the most information about a product from
commercial sources.
0) "he most effective information often comes from personal sources or public sources
that are independent authorities.
*earch #ynamics
+) "otal set
2) +areness set
C) Consideration set
?) )arket partitioning
0valuation of +lternatives
Eo single process is used by all consumers or by one consumer in all buying situations. "he
most current models see the process as cognitively orientated.
+) !irst, the consumer is trying to satisfy a need.
2) *econd, the consumer is looking for certain benefits from the product solution.
C) "hird, the consumer sees each product as a bundle of attributes ith varying abilities
for delivering the benefits sought to satisfy this need.
2eliefs and +ttitudes
0valuations often reflect beliefs and attitudes. "hrough e'perience and learning, people
ac$uire beliefs and attitudes. "hese in turn influence buying behavior.
+) 2elief Da descriptive thought that a person holds about something.
2) +ttitudeDa person%s enduring favorable or unfavorable evaluation, emotional feeling,
and action tendencies toard some ob&ect or idea.
C) +ttitudes put people into a frame of mind.
#) +ttitudes lead people to behave in a fairly consistent ay toard similar ob&ects.
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Chapter .: +naly1ing Consumer )arkets
0) +ttitudes can be very difficult to change.
0'pectancy-3alue )odel
"he e'pectancy-value model of attitude formation posits that consumers evaluate products
and services by combining their brand beliefsDthe positives and negativesD according to
importance.
+) )ost consumers consider several attributes in their purchase decisions.
=urchase #ecisions
(n the evaluation stage, the consumer forms preferences among the brands in the choice set.
"he consumer may also form an intention to buy the most preferred brand. (n e'ecuting a
purchase intention, the consumer may make up to five sub-decisions:
+) 2rand
2) #ealer
C) Huantity
#) "iming
0) =ayment-method
=urchase #ecision
(n e'ecuting a purchase intention, the consumer may make up to five subdecisions:
+) 2rand (brand +)
2) #ealer (dealer 8)
C) Huantity (one)
#) "iming (eekend)
!) =ayment method (credit card)
Eon-Compensatory )odels of Consumer Choice
Consumers may not alays ant to invest so much time and energy to evaluate brands. "hey
often take Amental shortcutsB that involve various simplifying choice heuristics.
9ith non-compensatory models of consumer choice, positive and negative attribute
considerations do not necessarily net out.
+) 9ith con&unctive heuristic method, the consumer sets a minimum acceptable cutoff
level for each attribute and chooses the first alternative that meets this minimum.
2) 9ith the le'icographic heuristic method, the consumer chooses the best brand on the
basis of its perceived most important attribute.
C) 9ith the elimination-by-aspects heuristic method, the consumer compares brands on a
attribute selected and brands not meeting this attribute are eliminated.
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Chapter-by-Chapter (nstructional )aterial
#) Consumers do not adopt only one type of choice rule and may combine to or more
decision rules.
(ntervening !actors
0ven if consumers form brand evaluations, to general factors can intervene beteen the
purchase intention and the purchase decision.
+) "he first factor is the attitudes of others. "he e'tent to hich another person%s attitude
reduces the preference for an alternative depends on to things:
6) "he intensity of the other person%s negative attitude toard the consumer%s
preferred alternative.
8) "he consumer%s motivation to comply ith the other person%s ishes
2) "he second factor is unanticipated situational factors that may erupt to change the
purchase intention.
C) + consumer%s decision to modify, postpone, or avoid a purchase decision is heavily
influenced by perceived risk. "here are many types of risks that consumers may
perceive in buying and consuming a product:
6) !unctional risk
8) =hysical risk
-) !inancial risk
:) *ocial risk
;) =sychological risk
.) "ime risk
#) )arketers must understand the factors that provoke a feeling of risk in consumers and
provide information and support to reduce perceived risk.
=ost-=urchase 2ehavior
+fter the purchase, the consumer might e'perience dissonance about their purchase and be
alert to information that supports their decision. )arketing communications should supply
beliefs and evaluations that reinforce the consumer%s choice and help him or her feel good
about the brand.
+) )arketers must monitor post-purchase satisfaction, post-purchase actions, and post-
purchase uses.
=ost-=urchase *atisfaction
*atisfaction is a function of the closeness beteen e'pectations and the product%s perceived
performance.
+) (f the performance fall short of e'pectations the consumer is disappointed.
2) (f the performance meets e'pectations the consumer is satisfied.
C) (f the performance e'ceeds e'pectations the consumer is delighted.
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Chapter .: +naly1ing Consumer )arkets
#) Consumer form their e'pectations on the basis of messages received from sellers,
friends, and other information sources.
0) "he importance of post-purchase satisfaction suggests that a product claim must
truthfully represent the product%s likely performance.
=ost-=urchase +ctions
*atisfaction or dissatisfaction ith the product ill influence subse$uent behavior. +
dissatisfied consumer may abandon or return the product.
=ost-=urchase 5se and #isposal
)arketers should also monitor ho buyers use and dispose of the product. + key driver of
sales fre$uency is product consumption rate.
+) 4ne potential opportunity to increase fre$uency of product use is hen consumers%
perceptions of their usage differ from reality.
2) )arketers must also need to kno ho the consumer disposes of the product once it is
used.
OTHER THEORIES OF CONSUMER DECISION-MAKING
7evel of Consumer (nvolvement
+) Consumer involvement can be defined in terms of the level of engagement and active
processing undertaken by the consumer in responding to a marketing stimulus.
0laboration 7ikelihood )odel
+) #escribes ho consumers make evaluations in both lo and high involvement
circumstances.
6) Central route.
8) =eripheral route.
-) Consumers follo the central route only if they possess sufficient motivation,
ability, and opportunity. (f any of these are lacking then the consumers tend to
follo the peripheral route.
7o (nvolvement )arketing *trategies
)any products are bought under conditions of lo involvement and the absence of significant
brand differences. )arketers use four techni$ues to try to convert a lo-involvement product
into one of higher involvement.
+) "hey can link the product to some involving issue.
2) "hey can link the product to some involving personal situation.
C) "hey might design advertising to trigger strong emotions related to personal values or
ego defenses.
#) "hey might add important features.
3ariety-*eeking 2uying 2ehavior
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Chapter-by-Chapter (nstructional )aterial
*ome buying situations are characteri1ed by lo involvement but significant brand
differences. 2rand sitching occurs for the sake of variety rather than dissatisfaction.
#ecision ?euristics and 2iases
?euristics come into play hen consumers forecast the likelihood of future outcomes or
events.
+) +vailability heuristic
2) Representativeness heuristic
C) +nchoring and ad&ustment heuristic
2ehavioral decision theorists have identified many different heuristics and biases in everyday
consumer decision making.
+) "he availability heuristic
2) "he representative heuristic
C) "he anchoring and ad&ustment heuristic
)ental +ccounting
)ental accounting refers to the manner by hich consumers code, categori1e, and evaluate
financial outcomes of choices. +ccording to Richard "haler, mental accounting is based on a
set of key core principles:
+) Consumers tend to segregate gains.
2) Consumers tend to integrate losses.
C) Consumers tend to integrate smaller losses ith larger gains.
#) Consumers tend to segregate small gains from large losses.
=rospect theory maintains that consumers frame decision alternatives in terms of gains and
losses according to a value function.
+) Consumers are generally loss averse.
=rofiling the Customer 2uying #ecision =rocess
?o marketers can learn about the stages in the buying process for their productsI
+) (ntrospective method
2) Retrospective method
C) =rospective method
#) =rescriptive method
"rying to understand the customer%s behavior in connection ith a product has been called
mapping the customer%s
+) Consumption system or
2) Customer activity cycle or
C) Customer scenario
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