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Dr. Raafat Youssef Shehata
Consumer Behavior
Table of contents
• Introduction to consumer behavior
• Decision making process
• Culture and consumer behavior
• Perception
• Motivation
• Personality
• Self
• Attitude
• Cases
Consumer behaviour final materials
Chapter 1
Introduction to
consumer behavior
The Nature of Consumer
Behavior
Overall Conceptual Model of Consumer Behavior
The Nature of Consumer
Behavior
External Influences
The following are the major external
influences:
• Culture
• Demographics and social stratification
• Ethnic, religious, and regional subcultures
• Families and households
• Groups
The Nature of Consumer
Behavior
Internal Influences
Internal influences include:
• Perception
• Learning
• Memory
• Motives
• Personality
•Emotions
•Attitudes
U& A study
Sources of data
• Free websites
• Governmental statistics
• Paid websites
• Syndicated research
• Customized research
Why study consumer behavior?
• Consumer behavior theory provides the manager with
the proper questions to ask
• Marketing practice designed to influence consumer
behavior influences the firm, the individual, and society
• All marketing decisions and regulations are based on
assumptions about consumer behavior
Consumer Behavior and
Marketing Strategy
Consumer behavior is the study
of individuals, groups, or
organizations and the processes
they use to select, secure, use,
and dispose of products,
services, experiences, or ideas
to satisfy needs and the impacts
that these processes have on
the consumer and society.
What are Consumers’ Needs,
Wants, and Demands?
Needs - state of felt
deprivation including
physical, social, and
individual needs i.e hunger
Wants - form that a human
need takes as shaped by
culture and individual
personality i.e. bread
Demands - human wants
backed by buying power i.e.
money
CONSUMER
DECISION
PROCESS AND
PROBLEM
RECOGNITION
© M. Hruby
Decision-Making Process
Problem Recognition
• Problem recognition is the result of a gap between a
desired state and an actual state sufficient to arouse and
activate the decision process.
• An actual state is the way an individual perceives his/her
feelings and situation to be at the present time.
• A desired state is the way an individual wants to feel or be at
the present time.
Types of Consumer Problems
Active Problem
An active problem is one the
consumer is aware of or will
become aware of in normal
course of events.
Marketing strategy:
Only require marketer to
convince consumers that its
brand is the superior solution.
Inactive Problem
An inactive problem is one of
which the consumer is not
aware.
Marketing strategy:
Marketer must convince
consumers that they have the
problem AND that their brand
is a superior solution.
14-16
The Process of Problem Recognition
A wide variety of approaches are used to determine the
problems consumers face.
Discovering Consumer Problems
1. Intuition - the most common, however, the problem identified
may be of low importance to most consumers
2. Survey – asks relatively large numbers of individuals about the
problems they are facing
3. Focus Groups – composed of 8 to 12 similar individuals brought
together to discuss a particular topic; a moderator is present to
keep the discussion moving and focused on the topic but
otherwise free flowing
INFORMATION
SEARCH
Internal Search
Search of long-term memory to
determine if a satisfactory
solution is known.
External Search
If a resolution is not reached
through internal search, then
the search process is
focused on relevant external
information.
Consumers continually recognize problems and opportunities,
so internal and external searches for information to solve these
problems are ongoing processes.
Nature of Information Search
Sources of Information
• Memory of past searches, personal experiences, and low-
involvement learning
• Personal sources, such as friends, family, and others.
• Independent sources, such as magazines, consumer groups,
and government agencies
• Marketing sources, such as sales personnel, websites, and
advertising
• Experiential sources, such as inspection or product trial
ALTERNATIVE
EVALUATION
AND
SELECTION
Three types of consumer choice processes:
How Consumers
Make Choices
-Affective Choice
-Attitude-Based Choice
-Attribute-Based Choice
Attribute- versus Attitude-Based Choice Processes
Attribute-Based Choice
•Requires the knowledge of
specific attributes at the
time the choice is made,
and it involves attribute-by-
attribute comparisons
across brands.
Attitude-Based Choice
•Involves the use of general
attitudes, summary
impressions, intuitions, or
heuristics; no attribute-by-
attribute comparisons are
made at the time of choice.
OUTLET
SELECTION
AND
PURCHASE
Retailing
• Internet Retailing
• Barriers to Internet Shopping
• Characteristics of Online Shoppers
• Store-based Retailing
Many barriers still exist to online purchasing, not the least of
which is the lack of Internet access. However, many who are
online still have never made a purchase.
A Forrester Research study found the following reasons among
those who are online who have never made a purchase:
Barriers to Internet Shopping
Internet shoppers tend to have higher income and education
levels than the general population, although these differences
are diminishing.
Online shoppers tend to be younger and more affluent than the
average Internet users.
While men and women are roughly equally split in terms of
internet use, women are emerging as the stronger Internet
buyer.
Characteristics of Online Shoppers
Most sales take place in physical stores, and this will remain true
for the foreseeable future.
However traditional store-based retailing is certainly vulnerable in
ways that plays into the hands of in-home retailers.
Store-based Retailing
The following are the results of a Roper survey asking
consumers why they don’t like shopping in stores:
Store-based Retailing
Location and size play an important role in store choice.
All else equal, consumers generally select the closest store.
Outlet size is also important. Generally, customers prefer
larger outlets over smaller outlets.
The retail attraction model, or the retail gravitation model, is
used to calculate the level of store attraction based on store
size and distance from the consumer.
Outlet Location and Size
Perceived Risk
-The perception of these risks differs among
consumers, depending in part on their past experiences
and lifestyles.
-For this reason perceived risk is considered a
consumer characteristic as well as a product
characteristic.
Types of perceived risk
1-Performance risk Will the product function properly?
2-Financial risk Can I afford it, is it good value?
3-Physical risk Will the product harm me or other people?
4-Ego risk Will this product make me feel good about
myself?
5-Social risk Will this impress friends or colleagues?
How to minimise perceived risk
• To minimise risks associated with purchasing new products
& brands, companies employ methods that encourage
trust & satisfy need for reassurance (e.g., less well-known
brands will offer lengthy warranties). PR can be used to
gain credibility.
• Celebrity endorsement, the approvals of opinion formers
& visual demonstration of the product/service in action
are all important communication methods to minimise
perceived risk.
• Branding is one of the main methods.
POSTPURCHASE
PROCESSES,
CUSTOMER
SATISFACTION,
AND CUSTOMER
COMMITMENT
Postpurchase Dissonance occurs when a consumer has doubts
or anxiety regarding the wisdom of a purchase made and is a
function of the following:
• The degree of commitment or irrevocability of the decision
• The importance of the decision to the consumer
• The difficulty of choosing among the alternatives
• The individual’s tendency to experience anxiety
Post-purchase Dissonance
After the purchase is made, the consumer may utilize one
or more of the following to reduce dissonance:
 Increase the desirability of the brand purchased
 Decrease the desirability of rejected alternatives
 Decrease the importance of the purchase decision
 Reverse the purchase decision (return before use)
Post-purchase Dissonance
Culture & Cultural influences on consumer
behavior
Chapter 2
The Concept of Culture
Culture is the
complex whole that
includes knowledge,
belief, art, law,
morals, customs,
and any other
capabilities and
habits acquired by
humans as members
of society.
Marketing Across Cultural Boundaries is a
Difficult and Challenging Task
Hofstede’s Cultural Classification
Scheme
Power distance
The degree of inequality among people that is
viewed as being equitable
Uncertainty avoidance
The extent to which people in a given culture
prefer structured situations with clear rules over
unstructured ones
Individualism
The degree to which people prefer to act as
individuals rather than group members.
Asian cultures more
collective
U.S. culture more
individualistic
Individual/Collective
Masculinity
The importance of “male” values (assertiveness,
success, competitive drive, achievement) versus
“female” values (solidarity, quality of life).
Masculinity
-The importance of “male” values (assertiveness, success,
competitive drive, achievement) versus “female” values (solidarity,
quality of life).
-Japan is considered by Hofstede to be the most masculine culture,
Sweden is regarded as the most feminine culture.
Long-term orientation versus short-term
focus
Future versus past and present orientations
Competitive/Cooperative
Other-Oriented Values
Does one obtain
success by excelling
over others or by
cooperating with
them?
Culture
-It is the sum of beliefs , customs , norms , knowledge to which
people are exposed in their social conditioning
VALUES &
BELIEFS
BEHAVIOUR
ARTEFACTS
RITUALS
Observable
Non
observable
Culture
1-Beliefs & values
-The way we feel anything
2-Customs
-e.g. division of labour in a household
3-Mores
-Customs with strong moral overtone e.g. prostitution
4-Conventions
-Norms regarding every day conduct e.g. etiquette
Culture
5-Artefacts
-Physical tools e.g. dress codes , logo
6-Rituals
-Symbolic meaning e.g. greeting behaviors
7-Heros
- e.g. Bill Gates
Holiday Rituals
Thanksgiving
Valentine’s Day
Secretaries’ Day
Grandparents’ Day
Christmas
New Year’s
Halloween
What Rituals Are Associated With the Following
Holidays?
Materialism
• Success is usually measured in terms of acquisitions like
houses, cars and electronic goods and people devote an
enormous amount of their lives to acquiring these things.
• The signs of being a successful achiever lie in the
ownership of desired consumer goods like a Mercedes or a
big house .
Halloween
• Its rituals are unusual:
• Involves nonfamily members
• Celebrates evil and death
• Encourages “tricks” for treats
• Halloween is an antifestival: distorts symbols associated
with other holidays
• Witch = inverted mother figure; resurrection of ghosts; evil jack-
o-lantern
• We act out uncharacteristic behaviors and try on new roles
Cultural Variations in Nonverbal
Communications
Etiquette
Meishi is an important aspect of Japanese business
etiquette…”a man without a Meishi has no identity in
Japan.” What is Meishi? It is the exchange of
business cards!
Subcultures
Gender-Based Marketing
Gender roles in the U.S.
are shifting, both
genders making many
purchase decisions.
Example: Today,
women influence 80%
of all vehicles sold.
Implications for
dealerships and sales
training?
Social factors
Social class
-Class A ---- upper middle class
-Class B ---- middle class
-Class C1 ---- lower middle
-Class C2----- skilled workers
-Class D ----- unskilled workers
-Class E ----- unemployed & pensions
+ Criticisms of social class
UK socioeconomic classification scheme
Class name Social status Occupation of head of
household
% of
population
A Upper middle Higher managerial,
administrative or professional
3
B Middle Intermediate managerial,
administrative or professional
14
C1 Lower middle Supervisors or clerical, junior
managerial, administrative or
professional
27
C2 Skilled working Skilled manual workers 25
D Working Semiskilled and unskilled
workers
19
E Those at lowest levels of
subsistence
Pensioners, widows, casual or
lower-grade workers
12
Status Symbols
Status-seeking: motivation to obtain products that will let
others know that you have “made it”
Status Symbols
The effectiveness of a product or service as a status symbol
seems to rest, therefore, on five factors:
• Exclusivity – only a few people should be eligible to acquire it
• It should be relatively expensive
• It should be of good quality
• It should be of limited supply
• It should be used by honored and respected people
Status Symbols
• Gucci leather goods were accepted status symbols from the 1920s
up until the1980s, when they were seen by many as hackneyed and
d´eclass´e after going down-market and trying to broaden their
appeal.
• Many of the electronic goods and household items that were status
symbols when they were first introduced and relatively expensive,
are now within the reach of most people with a middle class
income and middle class tastes – even if others might classify
these people as working class.
Perception
Chapter 3
Perception
It is the process by which people select
,organize and interpret stimuli into a
meaningful picture
The Nature of Perception
Exposure
Exposure occurs when a
stimulus is placed within a
person’s relevant
environment and comes
within range of their sensory
receptor nerves.
Exposure provides the
opportunity for attention but
in no way guarantees it.
Selective Exposure
• Ad avoidance includes ways consumers selectively avoid
exposure to advertising messages and can include:
• Zipping--occurs when one fast-forwards through a
commercial on a prerecorded program
• Zapping--involves switching channels when a commercial
appears
• Muting--is turning the sound off curing commercial breaks.
Attention
Attention is determined by three factors:
• Stimulus Factors
• Are physical characteristics of the stimulus itself
• Individual Factors
• Are characteristics which distinguish one individual from
another
• Situational Factors
• Include stimuli in the environment other than the focal
stimulus and temporary characteristics of the individual
that are induced by the environment
Attention
Stimulus Factors
• Size
• Intensity
• Attractive Visuals
• Color and Movement
• Position
• Isolation
• Novelty
• Format
• Contrast and Expectations
• Interestingness
• Information Quantity
Attention
Size
Larger stimuli are more likely to
be noticed than smaller ones.
Stimulus Factors
Source: 1Cahners Advertising Research Report 110.1B (Boston: Cahners Publishing, undated).
An estimated $9+ billion a year
is paid out in slotting allowances
by firms to retailers in order to
secure shelf space.
Size also affects attention to
advertising.
The Impact of Size on Advertising
Readership1
Attention
Intensity
The intensity (e.g., loudness, brightness, length) of a stimulus
can increase attention.
In online contexts, one aspect of intensity is intrusiveness, or
the degree to which one is forced to see or interact with a
banner ad or pop up in order to see the desired content.
Repetition is related to intensity. It is the number of times an
individual is exposed to a given stimulus, such as an ad or
brand logo, over time.
Consumers may shift the focus of their attention from one
part of the ad to another across repetitions, resulting in
attention reallocation.
Stimulus Factors
Attention
Attractive Visuals
Individuals are attracted to
pleasant stimuli and repelled by
unpleasant stimuli.
An ad’s visual or pictorial
component can have a strong
influence, known as a picture
superiority effect.
Any factor that draws attention to
itself and away from the brand
has to be used with caution.
Stimulus Factors
Attention
Color and Movement
Color and movement attract
attention.
A brightly colored package
or display is more likely to
received attention.
Color and movement are
also important in ads.
Stimulus Factors
Color and Size Impact on
Attention1
Source: 1”How Important is Color to an Ad?” Starch Tested Copy. February 1989,
p.1. Roper Starch Worldwide, Inc.
Attention
Position
Position is the placement of an object in physical space or time.
In retail stores, items that are easy to find or stand out are more likely
to attract attention, such as end-caps and kiosks.
High impact zones in print ads in the U.S. tend to be toward the top left
portion of the ad.
Stimulus Factors
Attention
Isolation
Isolation is separating a stimulus object from other objects.
Examples of isolation include:
• In store use of a stand-alone kiosk
• In an advertisement, the use of “white space”
• In a radio commercial, surrounding a key part with a brief
moment of silence.
Stimulus Factors
Attention
Novelty
-Stimuli that appear in unexpected ways or places tend to grab
our attention
-The unconventional places include the back of shopping carts,
walls of tunnels , and even public restrooms
-A promotion to introduce vanilla coke in Europe put wooden
boxes in shopping malls and told people to stick their heads in
them. The brave souls who complied were rewarded with bottle
of the stuff . This request tied into commercials for the new
product that tell viewers to “reward your curiosity “
Stimulus Factors
Stimulus organization
1-The closure principle—people tend to perceive an incomplete
picture as complete. We fill in the blanks.
2-The principle of similarity—consumers tend to group objects
that share similar physical characteristics.
3-The figure-ground principle—one part of a stimulus will
dominate (the figure) while other parts recede into the backdrop
(the ground).
Closure Principle
People tend to perceive an incomplete picture
as complete
Perceptual filters
• Perceptual vigilance—consumers are more likely to be
aware of stimuli that relate to their current needs.
• Perceptual defense —people see what they want to see
and vice versa.
• Adaptation —the degree to which consumers notice a
stimulus over time
Perceptual vigilance
• A consumer who rarely notices car ads will become very
much aware of them when he is in the market for a new
car
Perceptual defense
For example a heavy smoker may block out images of
cancer-scarred lungs
Perceptual Adaptation
• The process of adaptation occurs when no longer pay
attention to stimulus because it is so familiar
• For example a consumer en route to work might read a
billboard message when it is first installed but after few
days it just become part of the passing scenery
Consumer behaviour final materials
Consumer behaviour final materials
Consumer behaviour final materials
Consumer behaviour final materials
Consumer behaviour final materials
Consumer behaviour final materials
Types of vision
1-Central (or foveal) vision - This is the sharp, straight-ahead
vision which enables us to read, drive, and perform other
activities that require fine, sharp, straight-ahead vision
2-Peripheral vision - This extends an additional 30 degrees
either side of our central vision
Peripheral vision
Motivation
Chapter 4
Shopping
• If you see a friend in a shopping mall and you ask ‘Why are you
here?’
• The immediate and obvious answer you would expect is ‘To
buy things’. But if
• You followed this up with the question ‘Why else are you
here?’ you might be met with a blank stare.
• Yet research has discovered that there may be many other
reasons why people go shopping, some of which they may be
aware of and others which may be quite
Shopping
• Shopping gets you out of the house and breaks up the routine
• Shopping is a form of entertainment (and window shopping is
free entertainment)
• Shopping allows you to meet friends
• Shopping can make you feel important and needed as the
household
provider
• Shopping gives you the opportunity to exercise your hunting
and bargaining skills and success gives you a feeling of
achievement.
Motivation as a Psychological Force
• Motivation is the driving force
within individuals that impels
them to action.
• Needs are the essence of the
marketing concept. Marketers do
not create needs but can make
consumers aware of needs.
Model of the Motivation Process
96
Types of Needs
• Innate Needs
• Physiological (or biogenic) needs that are considered primary
needs or motives
• Acquired Needs
• Learned in response to our culture or environment. Are
generally psychological and considered secondary needs
Types of Needs
Types of needs:
• Biogenic: biological needs, such as for air, water, food
• Psychogenic: need for status, power, affiliation
• Utilitarian: need for tangible attributes of a product, such
as miles per gallon in a car or calories in a cheeseburger
• Hedonic: needs for excitement, self-confidence, fantasy
Classifying Consumer Motivations
Researchers put motivation into 5 categories:
1. Conscious vs. Unconscious
2. High vs. Low Urgency
3. Positive vs. Negative Polarity
4. Intrinsic vs. Extrinsic
5. Rational vs. Emotional
• Conscious motives are motives we are aware of, the reasons for our
behavior are clear, and these motives do not need to be aroused
• Sometimes we are unaware of the reason why a particular behavior was
undertaken; our motivation is unconscious
Conscious vs. unconscious
motives
Manifest motives are motives that are
known and freely admitted.
Latent motives are either unknown to the
consumer or are such that he/she is
reluctant to admit them.
Projective techniques are designed to
provide information on latent motives.
Discovering Purchase Motives
High vs. low urgency motives
• High urgency needs must be satisfied immediately and may make
comparison shopping impossible
• Low urgency needs can be postponed and enable consumers to
shop for the best product at the best price
• Example :Heating system quits; car breaks down Vs.
Buying equipment for your trip this summer
Positive and negative motivation
• Positive motivation drives consumers toward some object or
condition
• Negative motivation (e.g., fear/guilt) drives consumers away
from a consequence
• American Express: positive—convenient, accepted everywhere
• Life insurance and home security devices use negative
motivation
Intrinsic vs. extrinsic motives
• Intrinsic motivation is engaging in behavior for the
pleasure of the behavior itself; the behavior is the reward
• Extrinsic motivation is engaging in behavior for a reward
that is independent of the activity
• A sport such as basketball—some play for the love of the
game, others for monetary reward, to gain a scholarship,
etc.
Rational v. emotional motives
• Rationality implies consumers select goals based on totally objective
and utilitarian criteria, such as size, weight, price, miles per gallon,
etc.
• Ads that provide factual information are aimed at this motivation
• Emotion implies the selection of goals according to personal or
subjective criteria, such as pride, fear, affection or status
• Ads that identify products with a particular lifestyle target
emotional motivation
Maslow’s Hierarchy of Needs
Five basic needs (in order)
 Physiological needs
 Safety needs
 Social needs
 Egoistic needs
 Self-actualization needs
Maslow’s hierarchy of needs
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Ego Needs
(Prestige, status, self esteem)
Self-Actualization
(Self-fulfillment)
Theories of Motivation For
Wearing Clothes
1. Modest theory.
2. Immodest theory.
3. Protection theory.
4. Adornment theory.
Theories Of Motivation For Wearing Clothes
(continued)
1. Modest theory.
-people wore clothing to conceal the
private parts of their bodies.
-Modest theory is not universal
Theories Of Motivation For Wearing Clothes
(continued)
2. Immodest theory.
-clothes have been worn to draw
attention to certain parts of the body.
Theories Of Motivation For Wearing Clothes
(continued)
3. Protection theory.
-clothing was first used to protect us
from the elements such as cold, from
insect and animals.
Theories Of Motivation For Wearing Clothes
(continued)
4. Adornment theory.
-function of clothing is adornment,
personal decoration, or aesthetic
expression.
-shows status and identity, and raises
one’s self esteem.
Motivational research
Motivational research
• Ice cream taps into unconscious feelings of love and
affection for many people
Because it symbolizes an abundant and
nurturing mother.
Motivational research
• When a woman bakes a cake and pulls it out of the oven
she is (unconsciously and symbolically) going
through the process of giving birth.
Motivational conflict
Motivational conflict
• Occurs when multiple needs arise and fulfilling one goal conflicts
with another
• The end result is frustration
• Conflict can involve both positive and negative motivation
Lewin identified three types of motivational conflict:
1.Approach-approach conflicts
2.Avoidance-avoidance conflicts
3.Approach-avoidance conflicts
1. Approach-approach conflicts
• Arise when consumers face a choice among desirable
option—i.e., two positive goals or motivations
• The more equal the positives, the greater the conflict
• Example :Buying a new car vs. going on an expensive
vacation
1. Approach-approach conflicts
• Marketers can use tactics designed to ease the conflict by
making one option more attractive or creating conditions
where consumers can have both
• Restaurant menu: combination plates help consumer
who can’t decide what he wants
• Special rates, sales, deals, etc. can make one more
attractive (e.g., buy a full fare seat, get second free)
-Some solutions to these conflicts include the proliferation of
fake furs, which eliminate guilt about harming animals to
make a fashion statement, and the success of low calorie
and diet foods, such as those produced by Weight
Watchers, that promise good food without the calories.
-Some marketers counter consumer resistance to over-
consumption and spending by promising more (benefits)
from less, as in an Audi advertisement (in 2000), whereas
other marketers try to overcome
guilt by convincing consumers that they deserve luxuries .
1. Approach-approach conflicts
2. Avoidance-avoidance conflicts
• Arise when consumers must choose between two options
with unfavorable consequences
• Examples:
-Paying to fix up the old car or buying another one
-Life insurance is a classic example: paying premiums vs.
leaving your family unprotected
2. Avoidance-avoidance conflicts
• Marketers seek ways to minimize the negative aspects
of purchasing their product
• Marketers may also emphasize the negatives related to
avoiding the purchase of the product
• Examples:
-Car: low-rate financing, rebates, payment plans, etc.
-Insurance: turn it into an investment
3. Approach-avoidance conflicts
• Consumers only purchase products when they believe the benefits
outweigh the costs
• It is the job of marketers to convince consumers that their product’s value
exceeds its costs
Personality
Personality
• Personality: a person’s unique psychological makeup and
how it consistently influences the way a person responds
to his/her environment
Freudian Theory
-Sigmund Freud developed the idea that much of one’s adult
personality stems from a fundamental conflict between a
person’s desire to gratify his or her physical needs and the
necessity to function as a responsible member of society.
-His principles (note that these terms do not refer to
physiological portions of the consumer’s brain) included:
• The id
• The superego
• The ego
1) The id (which is entirely oriented toward immediate gratification). It operates
on the pleasure principle (behavior guided by the primary desire to maximize
pleasure and avoid pain).
a) The id is selfish. b) The id is illogical
2) The superego (which is the counterweight to the id). It is a person’s conscience.
a) It internalizes society’s rules. b) It works to prevent the id from seeking selfish
gratification.
3) The ego (which is the system that mediates between the id and the superego). The
ego tries to balance these two opposing forces according to the reality
principle, whereby it finds ways to gratify the id that will be acceptable to the
outside world. Much of this battle occurs in the unconscious mind.
Freudian Theory
Specific personality traits
1. Innovativeness
2. Dogmatism
3. Social character
4. Materialism
5. Compulsiveness
Trait Theory of Personality
1. Innovativeness
• Willingness to try new products, services or practices
• Innovators are the first to try a new product and often indicate its
success or failure
• Remember Apple’s “Newton”?
Trait Theory of Personality:Specific
personality traits
2. Dogmatism
• Measures the degree of rigidity vs. openness individuals display
toward the unfamiliar and toward information that is contrary to
their own established beliefs
• An indicator of how consumers respond to unfamiliar products or
features
• Highly dogmatic (closed-minded) consumers are more likely to
choose established, rather than innovative, product alternatives
Trait Theory of Personality:Specific
personality traits
3. Social character
• Personality trait that ranges on a continuum from inner-
directedness to other-directedness
• Inner-directed consumers rely on their own “inner” values in
evaluating new products and are likely to be innovators
• Outer-directed consumers tend to look to others for direction on
what is right and wrong and thus less likely to be innovators
Trait Theory of Personality:Specific
personality traits
4. Materialism
• It distinguishes between individuals who regard possessions as essential to their
identities and their lives, and those for whom possessions are secondary
• Research indicates that characteristics of materialistic persons include:
• They value acquiring and showing off possessions
• Self-centered and selfish
• They seek lifestyles full of possessions
• Their possessions do not give them greater personal satisfaction
Trait Theory of Personality:Specific
personality traits
Materialism
• The importance people attach to worldly possessions
• Tends to emphasize the well-being of the individual versus the
group
• People with highly material values tend to be less happy
• America is a highly materialistic society
5. Compulsiveness
• Compulsive activities include alcoholism, gambling, and various food
disorders
• Compulsive buying can be included in the list
• Often requires some type of therapy or clinical treatment
• Evidence suggests that some consumers use self-gifting and
compulsive buying as a way to influence or manage their moods
• E.g., I’m feeling depressed; I think I’ll go shopping
Trait Theory of Personality:Specific
personality traits
Personality
• Multi-trait Approach
• The Five-Factor Model is the most commonly used by
marketers and identifies five basic traits that are formed by
genetics and early learning.
• Single Trait Approach
• Consumer Ethnocentrism
• Need for Cognition
• Consumers’ Need for Uniqueness
Personality
Multitrait personality theory identifies several traits that in
combination capture a substantial portion of the personality
of the individual.
Multitrait Approach
The Five-Factor Model is commonly used by marketers,
which identifies five basic traits that are formed by genetics
and early learning.
Personality
The Five-Factor Model of Personality
Single trait approach
1. Consumer Ethnocentrism
2. Need for Cognition (NFC)
3. Consumers’ Need for Uniqueness
1-Consumer Ethnocentrism
Reflects an individual difference in consumers
propensity to be biased against the purchase of
foreign products
Consumer Ethnocentrism
• Lexington furniture is tapping into pro-American
sentiments by actively promoting the
“Made in America”
2-Need for Cognition (NFC)
• Reflects an individual difference in consumers’ propensity to
engage in and enjoy thinking
• High NFC people prefer verbal to visual information and are
less swayed by the opinions of others
• A person’s craving for enjoyment of thinking
• Individual with high NFC more likely to respond to ads rich in
product information
• Research reveals NFC may be linked to demographic
characteristics such as gender (women are generally higher in
NFC)
3-Consumers’ Need for Uniqueness
Reflects an individual difference in consumers’ propensity to
pursue differentness relative to others through the acquisition,
utilization, and disposition of consumer goods.
Cognitive Personality Factors
• Visualizers
• Verbalizers
-Is whether a consumer is a visualizer who prefers visual
information or a verbalizer who prefers written or verbal
information.
-This difference in cognitive personality factors would affect
how they respond to a print ad.
The Self
Chapter 6
The Self
• Perspective on the self
• Consumption and self concept
• Sex roles
• Body image
You are what you consume
The self
• A person’s conception of his or her body also provides
feedback to self-image.
• A culture communicates certain ideals of beauty, and
consumers go to great lengths to attain these.
• Many consumer activities involve manipulating the body,
whether through dieting, cosmetic surgery, tattooing, or even
mutilation.
• Sometimes these activities are carried to an extreme, as
people try too hard to live up to cultural ideals. One example
is found in eating disorders, where women in particular
become obsessed with thinness
Dimensions of a Consumer’s Self-Concept
Extended self
Four levels of extended self have been described:
1) Individual level—you are what you wear.
2) Family level—includes your house and furniture.
3) Community level—includes your neighborhood and home
town.
4) Group level—includes your religion, flag, sports team, etc
Symbolic self-completion theory suggests that people who
have an incomplete self-definition tend to complete this
identity by acquiring and displaying symbols associated with it
(e.g., men and their “macho” products).
Symbolic self-completion theory
Consumption and Self-Concept
(e.g., men and their “macho” products).
Adolescent boys for example may use “macho” products like cars
and cigarettes to bolster their developing masculinity
Symbolic self-completion theory
Consumption and Self-Concept
Sex roles
Gender differences
• Women eat more fruit
• Men are more likely to eat meat as one writer put it “boy
food does not grow .It is hunted or killed”
• Men are big root beer drinkers
• Women account for the bulk of sales of bottled water
Sex typed products
Masculine
• Pocket knife
• Shaving cream
• Stereo system
• Wall paint
• Tool kit
• Briefcase
• Scotch
Sex typed products
Feminine
• Baby oil
• Hand lotion
• Clothes dryer
• Facial tissue
• Scarf
• Bedroom slipper
Ideals of Beauty
-A person’s satisfaction with the physical image he or she presents
to others is affected by how closely that image corresponds to the
image valued by his or her culture.
-Ideals of beauty for men and women include physical features
(big breasts or small , bulging muscle or not ) as well as clothing
styles, cosmetics, hairstyles, skin tone (pale versus tan ), and body
type (petite , athletic)
Body Image
Ideals of beauty
• Other positively valued female characteristics include
higher than average forehead , fuller lips , shorter jaw
and a smaller chin and nose
• Women on the other hand favor men with a heavy
lower face (an indication of high concentration of
androgens that create strength), those who are slightly
above average height and those with a prominent brow
Ideals of Beauty
• Is Beauty Universal?
• Men are attracted to an hourglass shape
• Women prefer men with a heavy lower face, above-average
height, and a prominent brow
• The Western Ideal:
• Big round eyes, tiny waists, large breasts, blond hair, and blue
eyes
Female body type
• The British Association of Model Agents (AMA) says that
female models should be around 34-24-34 in (86-61-
86 cm) and at least (1.73 m) tall.
Working on the Body
• Cosmetic Surgery:
• Consumers are increasing electing to have cosmetic surgery to
change a poor body image or enhance appearance.
• Men are increasingly having cosmetic surgery too.
• Breast Augmentation
WHAT MEN (mostly) WANT?
Men usually say that they use aesthetic medicine for professional
reasons, when in fact they also want to look their best.
-Injections for a younger look (Botox & hyaluronic)
-Eye contour therapy: puffy eyes, dark circles
-Skin resurfacing with laser or light peels : ageing spots, acne
scars, blemishes
-Hair removal : back, nape, chest, legs, unibrow,
Hair loss
WHAT WOMEN (mostly) WANT
• Dynamic 60’s:
• cannot stand their “slackly arm or thighs”,
• now that they have time and money, they want to take care of
themselves without asking anybody’s permission!
• 40’s and 50’s:
• See dramatic changes on their face and wish to push back a
potential lifting for another 5, 10 to 15 years
• 17 to 20 year-olds:
• Are complexes by sudden stretch marks, or excessive hairs, or
their silhouette
Body reshaping
• Body reshaping or body sculpting cosmetic surgery is becoming increasingly
popular in the UK. There are some parts of the body that cannot change no
matter how much diet or exercise you do. If there is a certain part of your body
that you are not entirely happy with one of these procedures could suit you.
• The most popular body reshaping cosmetic surgery procedures include:
1. Fat Removal (Liposuction)
2. Tummy Tuck
3. Thigh and Buttock lift
4. Buttock Implants
5. Calf Implants
6. Arm Lift and Reduction
Attitude
Chapter 7
The Power of Attitudes
• Attitude: a lasting, general evaluation of people, objects,
advertisements, or issues
• Help to determine a number of preferences and actions
Negative publicity about a celeb’s personal life plays a big
role which increases the risk to develop negative attitude
towards them .
Consumer behaviour final materials
Cognition
• The cognitive component consists of a consumer’s beliefs
about an object.
• For example, an individual may believe that Mountain
Dew
- Is popular with younger consumers.
-Contains a lot of caffeine.
- Is competitively priced.
-Is made by a large company.
Attitude
• I know that McDonalds is junk food that will not do
much for me nutritionally, I may like the taste of it so
much that I eat it anyway.
Classical conditioning
• Classical conditioning can also associate a product or
service with a favorable emotional state.
• A study by Gerald Gorn used this approach to examine how
background music in ads influences product choice.
• He found that subjects were more likely to choose a
product when it was presented against a background of
music they liked
Types of attitudes
Five attitudes groups an be found in any market :
1. Enthusiastic attitude
2. Positive attitude
3. Indifferent attitude
4. Negative attitude
5. Hostile attitude
Types of attitudes /strategies
1-They thank enthusiastic and suggest they continue
2-They reinforce those who are positively disposed
3-They try to win the loyalty of indifferent people
4-They spend no time trying to change the negative and
hostile attitude
Adding Attributes Changes Attitudes
• This slide shows an ad for a Panasonic wireless projector.
• It is a good example of companies attempting to add a
new attribute to the attitude formation mix.
• In this ad, Panasonic is showing that they have added
wireless feature to their product, which makes it easier
and more convenient to use.
Attitudes are Learned
• We are not born with attitudes
• Attitudes relative to purchase behavior are formed as
a result of
1. direct experience with the product
2. word-of-mouth
3. exposure to mass media advertising, the internet, and
direct marketing
Attitudes Occur Within a Situation
• How attitudes affect behavior depends on the situation in which the
behavior occurs
• Thus a specific situation may cause consumers to behave in ways
that are inconsistent with their attitudes
• From a marketer’s perspective, it is important to consider the
situation in which the behavior takes place, or one might
misinterpret the relationship between attitude and behavior
Attitudes Occur Within a Situation
• You may dislike McDonald’s—because of the solid waste pollution,
because it’s a multinational corporation, or because you doesn’t feel
the food is healthy.
• But if you is running late for an evening meeting and have little time
to eat, you may decide to eat at McDonald’s, even though that’s
inconsistent with your attitude.
• Has he changed his attitude? No.
Attitudes Occur Within a Situation
• You may buy a different shampoo each time you shops.
• This might reflect dissatisfaction with the brands you have used in
the past.
• Or it may reflect that you are trying to save money and is buying the
least expensive brand each time
Sources of Attitudes
Three Major Influences on Attitude Formation
1. Personal experience
2. Influence of family and friends
3. Exposure to direct marketing and mass-media
1. Personal Experience
• The primary basis on which attitudes towards goods and services are
formed
• Free products, cents-off promotions, etc.
• Marketer’s goal is to get consumers to try a product and, hopefully,
develop a positive attitude towards it
2. Influence of Family & Friends
• Family and friends are a major influence on our values, beliefs and
attitudes
• We carry over into adulthood many of the attitudes we developed
as children
• Our peer and social groups also influence our attitudes
Reference groups
• One study shows that over 40 per cent of Americans
seek the advice of family or friends when shopping for
doctors, lawyers, and auto mechanics.
• Word of mouth is also important with respect to
restaurants, entertainment, banking, and personal
services.
• And young adults are more willing to seek referrals than
are older people
3. Direct Marketing & Mass Media
Television, radio, newspapers and magazines provide
marketers with unlimited opportunities to create positive
attitudes towards their products

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Consumer behaviour final materials

  • 1. Dr. Raafat Youssef Shehata Consumer Behavior
  • 2. Table of contents • Introduction to consumer behavior • Decision making process • Culture and consumer behavior • Perception • Motivation • Personality • Self • Attitude • Cases
  • 5. The Nature of Consumer Behavior Overall Conceptual Model of Consumer Behavior
  • 6. The Nature of Consumer Behavior External Influences The following are the major external influences: • Culture • Demographics and social stratification • Ethnic, religious, and regional subcultures • Families and households • Groups
  • 7. The Nature of Consumer Behavior Internal Influences Internal influences include: • Perception • Learning • Memory • Motives • Personality •Emotions •Attitudes
  • 9. Sources of data • Free websites • Governmental statistics • Paid websites • Syndicated research • Customized research
  • 10. Why study consumer behavior? • Consumer behavior theory provides the manager with the proper questions to ask • Marketing practice designed to influence consumer behavior influences the firm, the individual, and society • All marketing decisions and regulations are based on assumptions about consumer behavior
  • 11. Consumer Behavior and Marketing Strategy Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
  • 12. What are Consumers’ Needs, Wants, and Demands? Needs - state of felt deprivation including physical, social, and individual needs i.e hunger Wants - form that a human need takes as shaped by culture and individual personality i.e. bread Demands - human wants backed by buying power i.e. money
  • 15. Problem Recognition • Problem recognition is the result of a gap between a desired state and an actual state sufficient to arouse and activate the decision process. • An actual state is the way an individual perceives his/her feelings and situation to be at the present time. • A desired state is the way an individual wants to feel or be at the present time.
  • 16. Types of Consumer Problems Active Problem An active problem is one the consumer is aware of or will become aware of in normal course of events. Marketing strategy: Only require marketer to convince consumers that its brand is the superior solution. Inactive Problem An inactive problem is one of which the consumer is not aware. Marketing strategy: Marketer must convince consumers that they have the problem AND that their brand is a superior solution. 14-16 The Process of Problem Recognition
  • 17. A wide variety of approaches are used to determine the problems consumers face. Discovering Consumer Problems 1. Intuition - the most common, however, the problem identified may be of low importance to most consumers 2. Survey – asks relatively large numbers of individuals about the problems they are facing 3. Focus Groups – composed of 8 to 12 similar individuals brought together to discuss a particular topic; a moderator is present to keep the discussion moving and focused on the topic but otherwise free flowing
  • 19. Internal Search Search of long-term memory to determine if a satisfactory solution is known. External Search If a resolution is not reached through internal search, then the search process is focused on relevant external information. Consumers continually recognize problems and opportunities, so internal and external searches for information to solve these problems are ongoing processes. Nature of Information Search
  • 20. Sources of Information • Memory of past searches, personal experiences, and low- involvement learning • Personal sources, such as friends, family, and others. • Independent sources, such as magazines, consumer groups, and government agencies • Marketing sources, such as sales personnel, websites, and advertising • Experiential sources, such as inspection or product trial
  • 22. Three types of consumer choice processes: How Consumers Make Choices -Affective Choice -Attitude-Based Choice -Attribute-Based Choice
  • 23. Attribute- versus Attitude-Based Choice Processes Attribute-Based Choice •Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by- attribute comparisons across brands. Attitude-Based Choice •Involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by- attribute comparisons are made at the time of choice.
  • 25. Retailing • Internet Retailing • Barriers to Internet Shopping • Characteristics of Online Shoppers • Store-based Retailing
  • 26. Many barriers still exist to online purchasing, not the least of which is the lack of Internet access. However, many who are online still have never made a purchase. A Forrester Research study found the following reasons among those who are online who have never made a purchase: Barriers to Internet Shopping
  • 27. Internet shoppers tend to have higher income and education levels than the general population, although these differences are diminishing. Online shoppers tend to be younger and more affluent than the average Internet users. While men and women are roughly equally split in terms of internet use, women are emerging as the stronger Internet buyer. Characteristics of Online Shoppers
  • 28. Most sales take place in physical stores, and this will remain true for the foreseeable future. However traditional store-based retailing is certainly vulnerable in ways that plays into the hands of in-home retailers. Store-based Retailing
  • 29. The following are the results of a Roper survey asking consumers why they don’t like shopping in stores: Store-based Retailing
  • 30. Location and size play an important role in store choice. All else equal, consumers generally select the closest store. Outlet size is also important. Generally, customers prefer larger outlets over smaller outlets. The retail attraction model, or the retail gravitation model, is used to calculate the level of store attraction based on store size and distance from the consumer. Outlet Location and Size
  • 31. Perceived Risk -The perception of these risks differs among consumers, depending in part on their past experiences and lifestyles. -For this reason perceived risk is considered a consumer characteristic as well as a product characteristic.
  • 32. Types of perceived risk 1-Performance risk Will the product function properly? 2-Financial risk Can I afford it, is it good value? 3-Physical risk Will the product harm me or other people? 4-Ego risk Will this product make me feel good about myself? 5-Social risk Will this impress friends or colleagues?
  • 33. How to minimise perceived risk • To minimise risks associated with purchasing new products & brands, companies employ methods that encourage trust & satisfy need for reassurance (e.g., less well-known brands will offer lengthy warranties). PR can be used to gain credibility. • Celebrity endorsement, the approvals of opinion formers & visual demonstration of the product/service in action are all important communication methods to minimise perceived risk. • Branding is one of the main methods.
  • 35. Postpurchase Dissonance occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made and is a function of the following: • The degree of commitment or irrevocability of the decision • The importance of the decision to the consumer • The difficulty of choosing among the alternatives • The individual’s tendency to experience anxiety Post-purchase Dissonance
  • 36. After the purchase is made, the consumer may utilize one or more of the following to reduce dissonance:  Increase the desirability of the brand purchased  Decrease the desirability of rejected alternatives  Decrease the importance of the purchase decision  Reverse the purchase decision (return before use) Post-purchase Dissonance
  • 37. Culture & Cultural influences on consumer behavior Chapter 2
  • 38. The Concept of Culture Culture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society.
  • 39. Marketing Across Cultural Boundaries is a Difficult and Challenging Task
  • 41. Power distance The degree of inequality among people that is viewed as being equitable
  • 42. Uncertainty avoidance The extent to which people in a given culture prefer structured situations with clear rules over unstructured ones
  • 43. Individualism The degree to which people prefer to act as individuals rather than group members.
  • 44. Asian cultures more collective U.S. culture more individualistic Individual/Collective
  • 45. Masculinity The importance of “male” values (assertiveness, success, competitive drive, achievement) versus “female” values (solidarity, quality of life).
  • 46. Masculinity -The importance of “male” values (assertiveness, success, competitive drive, achievement) versus “female” values (solidarity, quality of life). -Japan is considered by Hofstede to be the most masculine culture, Sweden is regarded as the most feminine culture.
  • 47. Long-term orientation versus short-term focus Future versus past and present orientations
  • 48. Competitive/Cooperative Other-Oriented Values Does one obtain success by excelling over others or by cooperating with them?
  • 49. Culture -It is the sum of beliefs , customs , norms , knowledge to which people are exposed in their social conditioning VALUES & BELIEFS BEHAVIOUR ARTEFACTS RITUALS Observable Non observable
  • 50. Culture 1-Beliefs & values -The way we feel anything 2-Customs -e.g. division of labour in a household 3-Mores -Customs with strong moral overtone e.g. prostitution 4-Conventions -Norms regarding every day conduct e.g. etiquette
  • 51. Culture 5-Artefacts -Physical tools e.g. dress codes , logo 6-Rituals -Symbolic meaning e.g. greeting behaviors 7-Heros - e.g. Bill Gates
  • 52. Holiday Rituals Thanksgiving Valentine’s Day Secretaries’ Day Grandparents’ Day Christmas New Year’s Halloween What Rituals Are Associated With the Following Holidays?
  • 53. Materialism • Success is usually measured in terms of acquisitions like houses, cars and electronic goods and people devote an enormous amount of their lives to acquiring these things. • The signs of being a successful achiever lie in the ownership of desired consumer goods like a Mercedes or a big house .
  • 54. Halloween • Its rituals are unusual: • Involves nonfamily members • Celebrates evil and death • Encourages “tricks” for treats • Halloween is an antifestival: distorts symbols associated with other holidays • Witch = inverted mother figure; resurrection of ghosts; evil jack- o-lantern • We act out uncharacteristic behaviors and try on new roles
  • 55. Cultural Variations in Nonverbal Communications Etiquette Meishi is an important aspect of Japanese business etiquette…”a man without a Meishi has no identity in Japan.” What is Meishi? It is the exchange of business cards!
  • 57. Gender-Based Marketing Gender roles in the U.S. are shifting, both genders making many purchase decisions. Example: Today, women influence 80% of all vehicles sold. Implications for dealerships and sales training?
  • 59. Social class -Class A ---- upper middle class -Class B ---- middle class -Class C1 ---- lower middle -Class C2----- skilled workers -Class D ----- unskilled workers -Class E ----- unemployed & pensions + Criticisms of social class
  • 60. UK socioeconomic classification scheme Class name Social status Occupation of head of household % of population A Upper middle Higher managerial, administrative or professional 3 B Middle Intermediate managerial, administrative or professional 14 C1 Lower middle Supervisors or clerical, junior managerial, administrative or professional 27 C2 Skilled working Skilled manual workers 25 D Working Semiskilled and unskilled workers 19 E Those at lowest levels of subsistence Pensioners, widows, casual or lower-grade workers 12
  • 61. Status Symbols Status-seeking: motivation to obtain products that will let others know that you have “made it”
  • 62. Status Symbols The effectiveness of a product or service as a status symbol seems to rest, therefore, on five factors: • Exclusivity – only a few people should be eligible to acquire it • It should be relatively expensive • It should be of good quality • It should be of limited supply • It should be used by honored and respected people
  • 63. Status Symbols • Gucci leather goods were accepted status symbols from the 1920s up until the1980s, when they were seen by many as hackneyed and d´eclass´e after going down-market and trying to broaden their appeal. • Many of the electronic goods and household items that were status symbols when they were first introduced and relatively expensive, are now within the reach of most people with a middle class income and middle class tastes – even if others might classify these people as working class.
  • 65. Perception It is the process by which people select ,organize and interpret stimuli into a meaningful picture
  • 66. The Nature of Perception
  • 67. Exposure Exposure occurs when a stimulus is placed within a person’s relevant environment and comes within range of their sensory receptor nerves. Exposure provides the opportunity for attention but in no way guarantees it.
  • 68. Selective Exposure • Ad avoidance includes ways consumers selectively avoid exposure to advertising messages and can include: • Zipping--occurs when one fast-forwards through a commercial on a prerecorded program • Zapping--involves switching channels when a commercial appears • Muting--is turning the sound off curing commercial breaks.
  • 69. Attention Attention is determined by three factors: • Stimulus Factors • Are physical characteristics of the stimulus itself • Individual Factors • Are characteristics which distinguish one individual from another • Situational Factors • Include stimuli in the environment other than the focal stimulus and temporary characteristics of the individual that are induced by the environment
  • 70. Attention Stimulus Factors • Size • Intensity • Attractive Visuals • Color and Movement • Position • Isolation • Novelty • Format • Contrast and Expectations • Interestingness • Information Quantity
  • 71. Attention Size Larger stimuli are more likely to be noticed than smaller ones. Stimulus Factors Source: 1Cahners Advertising Research Report 110.1B (Boston: Cahners Publishing, undated). An estimated $9+ billion a year is paid out in slotting allowances by firms to retailers in order to secure shelf space. Size also affects attention to advertising. The Impact of Size on Advertising Readership1
  • 72. Attention Intensity The intensity (e.g., loudness, brightness, length) of a stimulus can increase attention. In online contexts, one aspect of intensity is intrusiveness, or the degree to which one is forced to see or interact with a banner ad or pop up in order to see the desired content. Repetition is related to intensity. It is the number of times an individual is exposed to a given stimulus, such as an ad or brand logo, over time. Consumers may shift the focus of their attention from one part of the ad to another across repetitions, resulting in attention reallocation. Stimulus Factors
  • 73. Attention Attractive Visuals Individuals are attracted to pleasant stimuli and repelled by unpleasant stimuli. An ad’s visual or pictorial component can have a strong influence, known as a picture superiority effect. Any factor that draws attention to itself and away from the brand has to be used with caution. Stimulus Factors
  • 74. Attention Color and Movement Color and movement attract attention. A brightly colored package or display is more likely to received attention. Color and movement are also important in ads. Stimulus Factors Color and Size Impact on Attention1 Source: 1”How Important is Color to an Ad?” Starch Tested Copy. February 1989, p.1. Roper Starch Worldwide, Inc.
  • 75. Attention Position Position is the placement of an object in physical space or time. In retail stores, items that are easy to find or stand out are more likely to attract attention, such as end-caps and kiosks. High impact zones in print ads in the U.S. tend to be toward the top left portion of the ad. Stimulus Factors
  • 76. Attention Isolation Isolation is separating a stimulus object from other objects. Examples of isolation include: • In store use of a stand-alone kiosk • In an advertisement, the use of “white space” • In a radio commercial, surrounding a key part with a brief moment of silence. Stimulus Factors
  • 77. Attention Novelty -Stimuli that appear in unexpected ways or places tend to grab our attention -The unconventional places include the back of shopping carts, walls of tunnels , and even public restrooms -A promotion to introduce vanilla coke in Europe put wooden boxes in shopping malls and told people to stick their heads in them. The brave souls who complied were rewarded with bottle of the stuff . This request tied into commercials for the new product that tell viewers to “reward your curiosity “ Stimulus Factors
  • 78. Stimulus organization 1-The closure principle—people tend to perceive an incomplete picture as complete. We fill in the blanks. 2-The principle of similarity—consumers tend to group objects that share similar physical characteristics. 3-The figure-ground principle—one part of a stimulus will dominate (the figure) while other parts recede into the backdrop (the ground).
  • 79. Closure Principle People tend to perceive an incomplete picture as complete
  • 80. Perceptual filters • Perceptual vigilance—consumers are more likely to be aware of stimuli that relate to their current needs. • Perceptual defense —people see what they want to see and vice versa. • Adaptation —the degree to which consumers notice a stimulus over time
  • 81. Perceptual vigilance • A consumer who rarely notices car ads will become very much aware of them when he is in the market for a new car
  • 82. Perceptual defense For example a heavy smoker may block out images of cancer-scarred lungs
  • 83. Perceptual Adaptation • The process of adaptation occurs when no longer pay attention to stimulus because it is so familiar • For example a consumer en route to work might read a billboard message when it is first installed but after few days it just become part of the passing scenery
  • 90. Types of vision 1-Central (or foveal) vision - This is the sharp, straight-ahead vision which enables us to read, drive, and perform other activities that require fine, sharp, straight-ahead vision 2-Peripheral vision - This extends an additional 30 degrees either side of our central vision
  • 93. Shopping • If you see a friend in a shopping mall and you ask ‘Why are you here?’ • The immediate and obvious answer you would expect is ‘To buy things’. But if • You followed this up with the question ‘Why else are you here?’ you might be met with a blank stare. • Yet research has discovered that there may be many other reasons why people go shopping, some of which they may be aware of and others which may be quite
  • 94. Shopping • Shopping gets you out of the house and breaks up the routine • Shopping is a form of entertainment (and window shopping is free entertainment) • Shopping allows you to meet friends • Shopping can make you feel important and needed as the household provider • Shopping gives you the opportunity to exercise your hunting and bargaining skills and success gives you a feeling of achievement.
  • 95. Motivation as a Psychological Force • Motivation is the driving force within individuals that impels them to action. • Needs are the essence of the marketing concept. Marketers do not create needs but can make consumers aware of needs.
  • 96. Model of the Motivation Process 96
  • 97. Types of Needs • Innate Needs • Physiological (or biogenic) needs that are considered primary needs or motives • Acquired Needs • Learned in response to our culture or environment. Are generally psychological and considered secondary needs
  • 98. Types of Needs Types of needs: • Biogenic: biological needs, such as for air, water, food • Psychogenic: need for status, power, affiliation • Utilitarian: need for tangible attributes of a product, such as miles per gallon in a car or calories in a cheeseburger • Hedonic: needs for excitement, self-confidence, fantasy
  • 99. Classifying Consumer Motivations Researchers put motivation into 5 categories: 1. Conscious vs. Unconscious 2. High vs. Low Urgency 3. Positive vs. Negative Polarity 4. Intrinsic vs. Extrinsic 5. Rational vs. Emotional
  • 100. • Conscious motives are motives we are aware of, the reasons for our behavior are clear, and these motives do not need to be aroused • Sometimes we are unaware of the reason why a particular behavior was undertaken; our motivation is unconscious Conscious vs. unconscious motives
  • 101. Manifest motives are motives that are known and freely admitted. Latent motives are either unknown to the consumer or are such that he/she is reluctant to admit them. Projective techniques are designed to provide information on latent motives. Discovering Purchase Motives
  • 102. High vs. low urgency motives • High urgency needs must be satisfied immediately and may make comparison shopping impossible • Low urgency needs can be postponed and enable consumers to shop for the best product at the best price • Example :Heating system quits; car breaks down Vs. Buying equipment for your trip this summer
  • 103. Positive and negative motivation • Positive motivation drives consumers toward some object or condition • Negative motivation (e.g., fear/guilt) drives consumers away from a consequence • American Express: positive—convenient, accepted everywhere • Life insurance and home security devices use negative motivation
  • 104. Intrinsic vs. extrinsic motives • Intrinsic motivation is engaging in behavior for the pleasure of the behavior itself; the behavior is the reward • Extrinsic motivation is engaging in behavior for a reward that is independent of the activity • A sport such as basketball—some play for the love of the game, others for monetary reward, to gain a scholarship, etc.
  • 105. Rational v. emotional motives • Rationality implies consumers select goals based on totally objective and utilitarian criteria, such as size, weight, price, miles per gallon, etc. • Ads that provide factual information are aimed at this motivation • Emotion implies the selection of goals according to personal or subjective criteria, such as pride, fear, affection or status • Ads that identify products with a particular lifestyle target emotional motivation
  • 107. Five basic needs (in order)  Physiological needs  Safety needs  Social needs  Egoistic needs  Self-actualization needs Maslow’s hierarchy of needs Physiological Needs (Food, water, air, shelter, sex) Safety and Security Needs (Protection, order, stability) Social Needs (affection, friendship, belonging) Ego Needs (Prestige, status, self esteem) Self-Actualization (Self-fulfillment)
  • 108. Theories of Motivation For Wearing Clothes 1. Modest theory. 2. Immodest theory. 3. Protection theory. 4. Adornment theory.
  • 109. Theories Of Motivation For Wearing Clothes (continued) 1. Modest theory. -people wore clothing to conceal the private parts of their bodies. -Modest theory is not universal
  • 110. Theories Of Motivation For Wearing Clothes (continued) 2. Immodest theory. -clothes have been worn to draw attention to certain parts of the body.
  • 111. Theories Of Motivation For Wearing Clothes (continued) 3. Protection theory. -clothing was first used to protect us from the elements such as cold, from insect and animals.
  • 112. Theories Of Motivation For Wearing Clothes (continued) 4. Adornment theory. -function of clothing is adornment, personal decoration, or aesthetic expression. -shows status and identity, and raises one’s self esteem.
  • 114. Motivational research • Ice cream taps into unconscious feelings of love and affection for many people Because it symbolizes an abundant and nurturing mother.
  • 115. Motivational research • When a woman bakes a cake and pulls it out of the oven she is (unconsciously and symbolically) going through the process of giving birth.
  • 117. Motivational conflict • Occurs when multiple needs arise and fulfilling one goal conflicts with another • The end result is frustration • Conflict can involve both positive and negative motivation Lewin identified three types of motivational conflict: 1.Approach-approach conflicts 2.Avoidance-avoidance conflicts 3.Approach-avoidance conflicts
  • 118. 1. Approach-approach conflicts • Arise when consumers face a choice among desirable option—i.e., two positive goals or motivations • The more equal the positives, the greater the conflict • Example :Buying a new car vs. going on an expensive vacation
  • 119. 1. Approach-approach conflicts • Marketers can use tactics designed to ease the conflict by making one option more attractive or creating conditions where consumers can have both • Restaurant menu: combination plates help consumer who can’t decide what he wants • Special rates, sales, deals, etc. can make one more attractive (e.g., buy a full fare seat, get second free)
  • 120. -Some solutions to these conflicts include the proliferation of fake furs, which eliminate guilt about harming animals to make a fashion statement, and the success of low calorie and diet foods, such as those produced by Weight Watchers, that promise good food without the calories. -Some marketers counter consumer resistance to over- consumption and spending by promising more (benefits) from less, as in an Audi advertisement (in 2000), whereas other marketers try to overcome guilt by convincing consumers that they deserve luxuries . 1. Approach-approach conflicts
  • 121. 2. Avoidance-avoidance conflicts • Arise when consumers must choose between two options with unfavorable consequences • Examples: -Paying to fix up the old car or buying another one -Life insurance is a classic example: paying premiums vs. leaving your family unprotected
  • 122. 2. Avoidance-avoidance conflicts • Marketers seek ways to minimize the negative aspects of purchasing their product • Marketers may also emphasize the negatives related to avoiding the purchase of the product • Examples: -Car: low-rate financing, rebates, payment plans, etc. -Insurance: turn it into an investment
  • 123. 3. Approach-avoidance conflicts • Consumers only purchase products when they believe the benefits outweigh the costs • It is the job of marketers to convince consumers that their product’s value exceeds its costs
  • 125. Personality • Personality: a person’s unique psychological makeup and how it consistently influences the way a person responds to his/her environment
  • 126. Freudian Theory -Sigmund Freud developed the idea that much of one’s adult personality stems from a fundamental conflict between a person’s desire to gratify his or her physical needs and the necessity to function as a responsible member of society. -His principles (note that these terms do not refer to physiological portions of the consumer’s brain) included: • The id • The superego • The ego
  • 127. 1) The id (which is entirely oriented toward immediate gratification). It operates on the pleasure principle (behavior guided by the primary desire to maximize pleasure and avoid pain). a) The id is selfish. b) The id is illogical 2) The superego (which is the counterweight to the id). It is a person’s conscience. a) It internalizes society’s rules. b) It works to prevent the id from seeking selfish gratification. 3) The ego (which is the system that mediates between the id and the superego). The ego tries to balance these two opposing forces according to the reality principle, whereby it finds ways to gratify the id that will be acceptable to the outside world. Much of this battle occurs in the unconscious mind. Freudian Theory
  • 128. Specific personality traits 1. Innovativeness 2. Dogmatism 3. Social character 4. Materialism 5. Compulsiveness Trait Theory of Personality
  • 129. 1. Innovativeness • Willingness to try new products, services or practices • Innovators are the first to try a new product and often indicate its success or failure • Remember Apple’s “Newton”? Trait Theory of Personality:Specific personality traits
  • 130. 2. Dogmatism • Measures the degree of rigidity vs. openness individuals display toward the unfamiliar and toward information that is contrary to their own established beliefs • An indicator of how consumers respond to unfamiliar products or features • Highly dogmatic (closed-minded) consumers are more likely to choose established, rather than innovative, product alternatives Trait Theory of Personality:Specific personality traits
  • 131. 3. Social character • Personality trait that ranges on a continuum from inner- directedness to other-directedness • Inner-directed consumers rely on their own “inner” values in evaluating new products and are likely to be innovators • Outer-directed consumers tend to look to others for direction on what is right and wrong and thus less likely to be innovators Trait Theory of Personality:Specific personality traits
  • 132. 4. Materialism • It distinguishes between individuals who regard possessions as essential to their identities and their lives, and those for whom possessions are secondary • Research indicates that characteristics of materialistic persons include: • They value acquiring and showing off possessions • Self-centered and selfish • They seek lifestyles full of possessions • Their possessions do not give them greater personal satisfaction Trait Theory of Personality:Specific personality traits
  • 133. Materialism • The importance people attach to worldly possessions • Tends to emphasize the well-being of the individual versus the group • People with highly material values tend to be less happy • America is a highly materialistic society
  • 134. 5. Compulsiveness • Compulsive activities include alcoholism, gambling, and various food disorders • Compulsive buying can be included in the list • Often requires some type of therapy or clinical treatment • Evidence suggests that some consumers use self-gifting and compulsive buying as a way to influence or manage their moods • E.g., I’m feeling depressed; I think I’ll go shopping Trait Theory of Personality:Specific personality traits
  • 135. Personality • Multi-trait Approach • The Five-Factor Model is the most commonly used by marketers and identifies five basic traits that are formed by genetics and early learning. • Single Trait Approach • Consumer Ethnocentrism • Need for Cognition • Consumers’ Need for Uniqueness
  • 136. Personality Multitrait personality theory identifies several traits that in combination capture a substantial portion of the personality of the individual. Multitrait Approach The Five-Factor Model is commonly used by marketers, which identifies five basic traits that are formed by genetics and early learning.
  • 138. Single trait approach 1. Consumer Ethnocentrism 2. Need for Cognition (NFC) 3. Consumers’ Need for Uniqueness
  • 139. 1-Consumer Ethnocentrism Reflects an individual difference in consumers propensity to be biased against the purchase of foreign products
  • 140. Consumer Ethnocentrism • Lexington furniture is tapping into pro-American sentiments by actively promoting the “Made in America”
  • 141. 2-Need for Cognition (NFC) • Reflects an individual difference in consumers’ propensity to engage in and enjoy thinking • High NFC people prefer verbal to visual information and are less swayed by the opinions of others • A person’s craving for enjoyment of thinking • Individual with high NFC more likely to respond to ads rich in product information • Research reveals NFC may be linked to demographic characteristics such as gender (women are generally higher in NFC)
  • 142. 3-Consumers’ Need for Uniqueness Reflects an individual difference in consumers’ propensity to pursue differentness relative to others through the acquisition, utilization, and disposition of consumer goods.
  • 143. Cognitive Personality Factors • Visualizers • Verbalizers -Is whether a consumer is a visualizer who prefers visual information or a verbalizer who prefers written or verbal information. -This difference in cognitive personality factors would affect how they respond to a print ad.
  • 145. The Self • Perspective on the self • Consumption and self concept • Sex roles • Body image
  • 146. You are what you consume
  • 147. The self • A person’s conception of his or her body also provides feedback to self-image. • A culture communicates certain ideals of beauty, and consumers go to great lengths to attain these. • Many consumer activities involve manipulating the body, whether through dieting, cosmetic surgery, tattooing, or even mutilation. • Sometimes these activities are carried to an extreme, as people try too hard to live up to cultural ideals. One example is found in eating disorders, where women in particular become obsessed with thinness
  • 148. Dimensions of a Consumer’s Self-Concept
  • 149. Extended self Four levels of extended self have been described: 1) Individual level—you are what you wear. 2) Family level—includes your house and furniture. 3) Community level—includes your neighborhood and home town. 4) Group level—includes your religion, flag, sports team, etc
  • 150. Symbolic self-completion theory suggests that people who have an incomplete self-definition tend to complete this identity by acquiring and displaying symbols associated with it (e.g., men and their “macho” products). Symbolic self-completion theory Consumption and Self-Concept
  • 151. (e.g., men and their “macho” products). Adolescent boys for example may use “macho” products like cars and cigarettes to bolster their developing masculinity Symbolic self-completion theory Consumption and Self-Concept
  • 153. Gender differences • Women eat more fruit • Men are more likely to eat meat as one writer put it “boy food does not grow .It is hunted or killed” • Men are big root beer drinkers • Women account for the bulk of sales of bottled water
  • 154. Sex typed products Masculine • Pocket knife • Shaving cream • Stereo system • Wall paint • Tool kit • Briefcase • Scotch
  • 155. Sex typed products Feminine • Baby oil • Hand lotion • Clothes dryer • Facial tissue • Scarf • Bedroom slipper
  • 156. Ideals of Beauty -A person’s satisfaction with the physical image he or she presents to others is affected by how closely that image corresponds to the image valued by his or her culture. -Ideals of beauty for men and women include physical features (big breasts or small , bulging muscle or not ) as well as clothing styles, cosmetics, hairstyles, skin tone (pale versus tan ), and body type (petite , athletic) Body Image
  • 157. Ideals of beauty • Other positively valued female characteristics include higher than average forehead , fuller lips , shorter jaw and a smaller chin and nose • Women on the other hand favor men with a heavy lower face (an indication of high concentration of androgens that create strength), those who are slightly above average height and those with a prominent brow
  • 158. Ideals of Beauty • Is Beauty Universal? • Men are attracted to an hourglass shape • Women prefer men with a heavy lower face, above-average height, and a prominent brow • The Western Ideal: • Big round eyes, tiny waists, large breasts, blond hair, and blue eyes
  • 159. Female body type • The British Association of Model Agents (AMA) says that female models should be around 34-24-34 in (86-61- 86 cm) and at least (1.73 m) tall.
  • 160. Working on the Body • Cosmetic Surgery: • Consumers are increasing electing to have cosmetic surgery to change a poor body image or enhance appearance. • Men are increasingly having cosmetic surgery too. • Breast Augmentation
  • 161. WHAT MEN (mostly) WANT? Men usually say that they use aesthetic medicine for professional reasons, when in fact they also want to look their best. -Injections for a younger look (Botox & hyaluronic) -Eye contour therapy: puffy eyes, dark circles -Skin resurfacing with laser or light peels : ageing spots, acne scars, blemishes -Hair removal : back, nape, chest, legs, unibrow, Hair loss
  • 162. WHAT WOMEN (mostly) WANT • Dynamic 60’s: • cannot stand their “slackly arm or thighs”, • now that they have time and money, they want to take care of themselves without asking anybody’s permission! • 40’s and 50’s: • See dramatic changes on their face and wish to push back a potential lifting for another 5, 10 to 15 years • 17 to 20 year-olds: • Are complexes by sudden stretch marks, or excessive hairs, or their silhouette
  • 163. Body reshaping • Body reshaping or body sculpting cosmetic surgery is becoming increasingly popular in the UK. There are some parts of the body that cannot change no matter how much diet or exercise you do. If there is a certain part of your body that you are not entirely happy with one of these procedures could suit you. • The most popular body reshaping cosmetic surgery procedures include: 1. Fat Removal (Liposuction) 2. Tummy Tuck 3. Thigh and Buttock lift 4. Buttock Implants 5. Calf Implants 6. Arm Lift and Reduction
  • 165. The Power of Attitudes • Attitude: a lasting, general evaluation of people, objects, advertisements, or issues • Help to determine a number of preferences and actions
  • 166. Negative publicity about a celeb’s personal life plays a big role which increases the risk to develop negative attitude towards them .
  • 168. Cognition • The cognitive component consists of a consumer’s beliefs about an object. • For example, an individual may believe that Mountain Dew - Is popular with younger consumers. -Contains a lot of caffeine. - Is competitively priced. -Is made by a large company.
  • 169. Attitude • I know that McDonalds is junk food that will not do much for me nutritionally, I may like the taste of it so much that I eat it anyway.
  • 170. Classical conditioning • Classical conditioning can also associate a product or service with a favorable emotional state. • A study by Gerald Gorn used this approach to examine how background music in ads influences product choice. • He found that subjects were more likely to choose a product when it was presented against a background of music they liked
  • 171. Types of attitudes Five attitudes groups an be found in any market : 1. Enthusiastic attitude 2. Positive attitude 3. Indifferent attitude 4. Negative attitude 5. Hostile attitude
  • 172. Types of attitudes /strategies 1-They thank enthusiastic and suggest they continue 2-They reinforce those who are positively disposed 3-They try to win the loyalty of indifferent people 4-They spend no time trying to change the negative and hostile attitude
  • 173. Adding Attributes Changes Attitudes • This slide shows an ad for a Panasonic wireless projector. • It is a good example of companies attempting to add a new attribute to the attitude formation mix. • In this ad, Panasonic is showing that they have added wireless feature to their product, which makes it easier and more convenient to use.
  • 174. Attitudes are Learned • We are not born with attitudes • Attitudes relative to purchase behavior are formed as a result of 1. direct experience with the product 2. word-of-mouth 3. exposure to mass media advertising, the internet, and direct marketing
  • 175. Attitudes Occur Within a Situation • How attitudes affect behavior depends on the situation in which the behavior occurs • Thus a specific situation may cause consumers to behave in ways that are inconsistent with their attitudes • From a marketer’s perspective, it is important to consider the situation in which the behavior takes place, or one might misinterpret the relationship between attitude and behavior
  • 176. Attitudes Occur Within a Situation • You may dislike McDonald’s—because of the solid waste pollution, because it’s a multinational corporation, or because you doesn’t feel the food is healthy. • But if you is running late for an evening meeting and have little time to eat, you may decide to eat at McDonald’s, even though that’s inconsistent with your attitude. • Has he changed his attitude? No.
  • 177. Attitudes Occur Within a Situation • You may buy a different shampoo each time you shops. • This might reflect dissatisfaction with the brands you have used in the past. • Or it may reflect that you are trying to save money and is buying the least expensive brand each time
  • 178. Sources of Attitudes Three Major Influences on Attitude Formation 1. Personal experience 2. Influence of family and friends 3. Exposure to direct marketing and mass-media
  • 179. 1. Personal Experience • The primary basis on which attitudes towards goods and services are formed • Free products, cents-off promotions, etc. • Marketer’s goal is to get consumers to try a product and, hopefully, develop a positive attitude towards it
  • 180. 2. Influence of Family & Friends • Family and friends are a major influence on our values, beliefs and attitudes • We carry over into adulthood many of the attitudes we developed as children • Our peer and social groups also influence our attitudes
  • 181. Reference groups • One study shows that over 40 per cent of Americans seek the advice of family or friends when shopping for doctors, lawyers, and auto mechanics. • Word of mouth is also important with respect to restaurants, entertainment, banking, and personal services. • And young adults are more willing to seek referrals than are older people
  • 182. 3. Direct Marketing & Mass Media Television, radio, newspapers and magazines provide marketers with unlimited opportunities to create positive attitudes towards their products