Chapter 9: Individual Decision Making

Steps of making a purchase Consumer decision making (A consumer

purchase may be a response to a perceived problem)
1. Problem Recognition
2. Information Search
3. Evaluation of Alternatives
4. Product Choice
5. Consumption and learning
Consumer Hyperchoice: A condition where the large number of
available options forces us to make repeated choices that may drain
psychological energy while decreasing our abilities to make smart
decisions (too many choices leads consumers to be less satisfied with
their purchase experience extensive and limited choice)
Rational Perspective: People calmly and carefully integrate as much
information as possible with what they already know about the
product, painstakingly weigh the pluses and minuses of each
alternative and finally arrive at a satisfactory decision (assumes we
collect just the amount of data we need and make a perfectly informed
decision) This utilitarian assumption also implies that we collect the
most valuable units of information, and only absorb new ones to the
extent that we think itll add to what we already know
Purchase Momentum: Occur when these initial impulses (random
consumption) actually increase the likelihood that we will buy even
more.
Some of us tend to have a rational system of cognition that
processes information analytically and sequentially using rules of
logic, while others rely on experiential system of cognition
that processes information more holistically and in parallel
Behavior Influence Perspective: Under these circumstances managers
must concentrate on assessing the characteristics of the environment,
such as physical surroundings and product placement, that influences
members of a target market (consumers tend to put the least amount
of effort in decision making unless it is necessary to put in a lot of
effort low involvement, learned purchases: Habitual)
Experiential Perspective: Stresses gestalt, or totality, of the product or
the service. Marketers focus on measuring consumers affective
responses to products or services and develop offerings that elicit
appropriate subjective reactions (moods, emotions, feelings) for high
involvement, important and meaningful purchases

A continuum of Buying Decision Behavior (Figure page 248-249)

Habitual Decision Making: Habitual problem solving involves
decisions that are made with little or no conscious effort (choices
characterized by automaticity are performed with minimal effort
and without conscious control allowing the consumer to minimize
the time and energy spent on mundane purchase decisions) The
issue with this is for companies to un-do this habitual process of
consumers
Limited Problem Solving: Is usually straightforward and simple,
but does require some cognitive processing (buyers are not
motivated to search for information or to evaluate each
alternative rigorously, but theyre not simply acting out of habit
either)
Extended Problem Solving: Is usually initiated by a motive that is
fairly central to self-concept, and the eventual decision is
perceived to carry a fair degree of risk. The consumer tries to
collect as much information as possible, both from memory
(internal search) and from outside sources (external search) and
then is evaluated on the basis of how the brands attributes
shape up to meet some of the desired characteristics)
Problem Recognition: occurs at what Ford terms upper funnel when
we experience a significant difference between our current state of
affairs and some state we desire
Actual State-Need Recognition: Physical need like needing gas
Ideal State-Need Recognition: Craving a newer, flashier iPhone
o Need Recognition: Can occur if you run out of
something or if you need to fill a gap (like moving
into a house youll need furniture)
o Opportunity Recognition: When were exposed to a
different or better-quality version of a product that
we want
Internal Search: Scanning our own memory banks to assemble
information about different product alternatives
External Search: Information is obtained from advertisements, friends
and or people watching
Directed Learning: Wherein a previous occasion we had already
searched for relevant information or experience some of the
alternatives

Incidental Learning: More exposure over time to conditioned stimuli

and observations of others results in the learning of much material that
may rarely be needed
Online Search: When we search online for product information were a
perfect target for advertisers because we declare our desire to make a
purchase (either searching on Google or on social media channels)
Maximizing: Consumers desire to look at all of the options in a way that
allows for the best possible choice and best possible result (HighInvolvement Consumers)
Satisficing: One that simply tries to yield an adequate solution often
as a way to reduce the costs of the decision-making process (since we
often have little time and money for solutions, were happy to settle
with one that is good enough) Low-involvement consumer
Bounded Rationality: A decision strategy that relies on limited
information and that reflects time constraints and political
considerations (limited by capacity to process information, time
constraints and political considerations)
Variety Seeking: Sometimes people like to try new things that is, they
are interested in varying their product experiences especially when
theyre in a good mood. In the case of foods and beverages, variety
seeking can occur because a phenomenon known as sensory-specific
satiety which means the pleasantness of food just eaten drops while
the pleasantness of uneaten food remains unchanged. (Brand
Switching is having more than one favorite brand and alternating
between them)
Mental Accounting: Where decisions are influenced by the way a
problem is posed (called framing) and by whether it is put in terms of
gains or losses (This decision-making bias is called the sunk-cost
fallacy where having paid for something makes us reluctant to waste
it
Hyperopia: (The medical term for being far-sighted) describes
people who are so obsessed with preparing for the future that
they cant enjoy the present
Loss Aversion: people put much more emphasis on loss than they
do on gain (losing money is more unpleasant then the pleasure
of gaining money
Prospect Theory: A descriptive model of choice, finds that utility is a
function of gains and losses, and risk differs when the consumer faces
options involving gains versus those involving losses

Because experts have a better sense of what information is relevant to

the decision, they tend to engage in selective search, which means
their efforts are more focused and efficient. In contrast, novices are
more likely to rely on the opinions of others and upon non-functional
attributes, such as brand name and price, to distinguish amongst the
alternatives. They may also process information in a top-down rather
than a bottom up manner. Focusing less on details than on the big
picture (search tends to be greatest among those consumers who are
moderately knowledgeable about the product)
Blissful Ignorance Effect: (people who have details about a product
before they buy it do not expect to be happy with it as do those who
got only ambiguous information) Occurs because we want to feel like
weve bought the right thing and if we know precisely how to product
should perform its not as easy to rationalize away any shortcomings
***(the less we know about something the easier it is to persuade
ourselves that we like it)***
Perceived Risk: The belief that a product has potentially negative or
uncertain consequences (if product is expensive, complex, unknown or
hard to understand)
Five Types of Perceived Risk (Page 258)
1. Monetary Risk: Effects those with little income, high-ticket items
2. Functional Risk: Effects practical consumers, exclusive
commitment
3. Physical Risk: Effects the sick, elderly, frail, vulnerable; medicine,
electronics
4. Social Risk: Effects those who are insecure, symbolic goods;
clothes + stuff
5. Psychological Risk: Effects those who dont fit in or are not liked,
stuff that engender guilt like a purse using endangered animal
skin
Identifying alternatives depends on how complex the decision is, how
habitual the purchase is and the availability of substitute products.
Evoked Set: The alternatives actively considered during a
consumers choice process are his or her consideration
(comprises of those already in memory plus those prominent in
the retail environment) our list of valid candidates
Inept Set: The alternatives that youre aware of but would not
consider buying because theyre not what youre looking for
Inert Set: Those not coming to mind at all

The category we assign to a product is important, because it influences

what we compare it to, how we use it and what attributes we give it
(when consumers evaluate a product, they associate it with what they
already know and compare it to other brands) Cognitive structure is
important because they want to insure that their products are properly
grouped
Levels of Product Categorizations (Pg.: 262-263)
1. Superordinate Level: The broad category like dessert
2. Basic Level: The most useful level because categories are quite
similar
3. Subordinate Level: The most specific, includes individual brands
etc.
Product Positioning: The success of a positioning strategy often hinges
on the marketers ability to convince the consumer that his or her
product should be considered within a given category (Trying to
position orange juice as an all day drink)
Identifying Competitors: At the more abstract, superordinate level of
categorization, many different product forms can compete for
membership
Locating Products: Product categorizations can also effect consumers
expectations regarding the places they can locate a desired product (if
a product cant specifically fit into categories, consumers ability to find
them or make sense of them may be affected)
Feature Creep: The complexity of the increasing features of all products
available on the market (having more features isnt necessarily better
than having less features)
Evaluation Criteria: Dimensions used to judge the merits of competing
options. In comparing alternative products you might choose from
among any number of criteria, ranging from very functional attributes
to experiential ones (criteria on which products differ carry more
weight in the decision process) The specific attributes that are
actually used to differentiate among choices are Determinant
Attributes)
The decisions about which attributes to use is the result of
procedural learning, in which a person undergoes a series of
cognitive steps before making a choice
In order for a marketer to recommend a new decision criterion
effectively, his or her communication should convey three pieces of
information

1. It should point out that there are significant differences among

brands on the attribute
2. It should supply the consumers with a decision-making rule, such
as if [deciding amongst competing brands], then, [use the
attribute as a criterion]
3. It should convey a rule that is easily integrated with the way the
person has made this decision in the past. Otherwise the
recommendation is likely to be ignored because it requires too
much mental work
Neuromarketing: Uses functional magnetic resonance imaging (FMRI),
a brain-scanning device that tracks blood flow as we perform mental
tasks (Scientists found that the most popular vehicles the Porsche
and the Ferrari triggered activity in a section of the brain they call the
fusiform face area, which governs facial recognition
Cybermediary: An intermediary that helps to filter and organize online
market information so that customers can identify and evaluate
alternatives more efficiently
Directories and Portals: Such as Google, Yahoo, eBay etc.
Forums, Fan Clubs and User Groups: Customer related discussion
Intelligent Agents are sophisticated software programs that use
collaborative filtering technologies to learn from past user behavior to
recommend new purchases (a little bit like internet cookies)
Electronic Recommendation Agent: A software tool that tries to
understand a human decision makers multi-attribute
preferences for a product category by asking the user to
communicate his or her preferences
Brand Advocates: People who supply and create reviews for specific
brands, products and services (similar to a brand ambassador)
Heuristics: Mental rules of thumb that lead to speedy decisions
(whether it be by price, because youre used to buying it or because
its what you grew up with)
One frequently used shortcut is the tendency to infer hidden
dimensions of products from observable attributes. The aspect of
the product that is visible acts as a product signal of some
underlying quality
People may choose their favorite brand and never change their
minds

Consumers often form specific market beliefs about relationships in the

marketplace. These beliefs become the shortcuts whether or not they
are accurate that guide their decisions (page 269)
Ethnocentrism: the tendency to prefer products or people of ones own
culture to those from other countries (purchasing foreign made
products is un-Canadian, curbs should be put on all imports,
responsible for putting fellow citizens out of work)
Market beliefs
Price: whether people consider it
Origin: Intrigues people
Zipfs Law: Our tendency to prefer a number one brand to the
competition is so strong that it seems to mimic a pattern (people
spend twice as much on the first brand then the second, three times as
much on the first as the third etc.)
Inertia: People buy a specific brand merely out of habit and because
less effort is required (if a cheaper one comes a long, the consumer will
buy that one too) Competitors can very easily change someones mind
with inertia, they just need to have the better deal
This will not happen if there is brand loyalty because no matter
what, someone who is brand loyal does repeat-purchasing
behavior reflecting a conscious decision to continue buying the
same brand (gets incorporated to the consumers self image or
through experience)
Decision Rules
Compensatory Rules: One good attribute can compensate for
other poor attributes (Gives a product a chance to make up for
its shortcomings)
o Consumers who employ these rules tend to be more
involved in the purchase and thus are willing to exert the
effort to consider the entire picture in a more exacting way
o Simple Additive Rule: the consumer merely choses the
alternative with the largest number of positive attributes
(usually when they dont want to invest time into a
decision and a drawback is that some attributes may not
mean anything)
o Weighted Additive Rule: Consumer takes into account the
relative importance of positively rated attributes,
essentially multiplying brand ratings by importance
weights

Non-Compensatory Rules: Some poor attributes may eliminate

the choice despite its strength on other attributes (people
eliminate all options that do not meet their basic standards. Used
when people arent familiar with the product category or dont
want to process complex information)
o Lexicographic Rule: the brand that is the best on the most
important attribute is selected
o Elimination by Aspects Rule: Same as lexicographic but
with cut-offs
o The conjunctive Rule: A brand is chosen and if it meets all
the cut-offs, while failing to meet the cut-offs means
rejection
o The Disjunctive Rule: The consumer develops acceptable
standards for each attribute, which are usually higher than
the shoppers minimum cut-offs for attributes. If a choice
alternative exceeds the standard for any attribute, it is
accepted

CHAPTER 7: Attitudes
Attitude: A lasting, general evaluation of people (including one self),
objects or issues (anything that someone has an attitude towards is
called a Attitude object). An attitude has three components (ABC Model
of Attitudes emphasizing the interrelationships among knowing,
feeling and doing)
1. Affect: Refers to the way a consumer feels about an attitude
object
2. Behavior: Involves the persons intentions to do something with
regard to an attitude
3. Cognition: Refers to the beliefs a consumer has about an attitude
Hierarchy of Effects: A concept developed to explain the relative
impact of the three components, each specifying that a fixed sequence
of steps occur en route to an attitude (consumers act on the basis of
their emotional reactions)
1. High-Involvement: When highly involved, a consumer approaches
a product decision as a problem solving process. First, they form
beliefs about a product by accumulating knowledge (beliefs)
regarding relevant attributes, next the consumer evaluates these
beliefs and forms a feeling about the product (affect), and finally,
on the basis of this evaluation, the consumer engages in relevant
behavior, such as buying the product (a careful choice process
often results in brand loyalty because the consumer bonds with
the product and will not change his mind for quite some time)
2. Low-Involvement: The consumer has collected only a minimal
amount of information before acting and has an emotional
response only after consuming the product (originally the
consumer didnt have a preference and an attitude will likely
form due to behavioral learning, in which the consumers choice
is reinforced by a good or bad experience)
o Involvement Paradox: The less important the product is to
consumers, the more important many of the marketing
stimuli have to be devised in order to market it
3. Zajoncs Model of Hedonic Consumption: This perspective
highlights the idea that attitudes can be strongly influenced by
product attributes irrelevant to the actual product category, such
as package design and color, and by consumers reactions
towards accompanying stimuli, such as advertising and even
brand names (how it makes them feel or how much fun itll
provide)

Functional Theory of Attitudes: Was initially discovered by psychologist

Daniel Katz to explain how attitudes facilitate social behavior.
According to this pragmatic approach, attitudes exist because they
serve some function for the person; that is, they are determined by a
persons motive
Attitude functions (A dominant function of a product is basically what
benefits it provides)
1. Utilitarian Function: We develop some of our attitudes toward
products simply on the basis of whether these products provide
pleasure or pain (basis principles of reward and punishment)
2. Value-Expressing Function: A person forms a product attitude not
because of its objective benefits, but because of what the
product says about him or her as a person (express the
consumers central values or self-concept and social identity)
3. Ego-Defensive Function: Attitudes that are formed to protect the
person, either from external threats or internal feelings, perform
an ego-defensive function (appealing to peoples insecurities)
4. Knowledge Function: Some attitudes are formed as the result of a
need for order, structure, or meaning (usually presented when a
person is in an ambiguous situation or is confronted with a new
product)
The Attitude toward the Advertisement (Aad): Is defined as a predisposition to respond in a favorable and unfavorable manner to a
particular advertising stimulus during a particular exposure occasion.
Determinants of Aad include the viewers attitude toward the advertiser,
evaluation of ad execution itself, and the mood evoked by the ad, and
the degree to which the ad effects viewers arousal level (basically
states the importance of an ads entertainment value in the purchase
process)
How is Attitudes Created?
o Classical Conditioning (Pavlovs association)
o Instrumental Conditioning (Operant
conditioning/Reinforcement)
Levels of commitment to an attitude
Compliance: At the lowest level of involvement, compliance, an
attitude is formed because it helps gain rewards or avoids
punishment from others (this attitude is very superficial and will
change when no longer being monitored by others or another
option becomes available)
Identification: This process occurs when attitudes are formed so
that the consumer will then feel similar to another person or

group (depicting social consequences of choosing some products

over others)
Internalization: At a high level of involvement, deep-seated
attitudes are internalized and become part of the persons value
system (they are very difficult to change because theyre
important to the person)

The Principle of Cognitive Consistency: Consumers value harmony

among their thoughts, feelings and behaviors and they are motivated
to maintain uniformity among these elements (this means that if
necessary, consumers will change their thoughts, feelings and or
behaviors to make them consistent with other experiences)
The Theory of Cognitive Dissonance: States that when a person is
confronted with inconsistencies among their attitudes or behaviors,
they will take some action to resolve this unpleasant psychological
state or dissonance (people are motivated to reduce the negative
feelings caused by dissonance and making things fit with one another)
For example: Smoking causes cancer but I smoke, but my 90 grandma
too
Post Purchase Dissonance: Thinking about the option you missed
out on by choosing this specific product, also known as forgone
option
Self-Perception Theory: This theory assumes that people use
observations of their own behavior to determine what their attitudes
are, just as we assume that we know the attitudes of others by
watching what they do. It states that we maintain consistency by
inferring that we must have a positive attitude toward an object that
we have bought or consumed it (relevant to the low-involvement
hierarchy)
Foot in the Door Technique: A consumer is more likely to comply
with a request if he or she has agreed to comply with a smaller
request
Social Judgment Theory: Assumes that people assimilate new
information about attitude objects in the light of what they already
know or feel (frame of reference)
People differ in terms of the information they will find acceptable
or unacceptable. They form Latitudes of Acceptance and
Rejection around an attitude standard. Ideas that fall within a
latitude will be favorable received, while those falling outside the
zone will not

Balance Theory: Considers relationships among elements a person

might perceive as belonging together. This perspective involves
relations (always from the perceivers subjective point of view) among
three elements, so the resulting attitude structures are called triads.
(Unit relation is when one element is seen as somehow belonging to
or being apart of the other, like a belief or a Sentiment relation in
which the two elements are linked because one has expressed
preference or dislike for the other) Pg 196-197
1. A person and his or her perception
2. An attitude object
3. Some other person or objective
Multi-Attribute Model: This model assumes that a consumers attitude
(evaluation) of an attitude object (Ao) will depend on the beliefs she or
he has about many or several attributes of the object. The use of a
multi-attribute model implies that an attitude toward a product or
brand can be predicted by identifying these specific beliefs and
combining them to derive a measure of the consumers overall attitude
Attributes: Characteristics of the AO (they can be identified and
used to develop a product)
Beliefs: Cognitions about the specific AO (the extent to which a
consumer perceives that a brand posses a particular attribute)
Importance Weights: The relative priority of an attribute to a
consumer
The Fishbein Model: The most influential multi-attribute model, it
measures three components of attitude (This model assumes that we
have been able to specify adequately all the relevant attributes that
weve evaluated all possible choices) Page 199-200
1. Salient Beliefs people have about AO (those beliefs about the
object that are considered during evaluation)
2. Object-Attribute Linkages: The probability that a particular object
has an important attribute
3. Evaluation of each of the important attributes
Strategic Applications of the Multi-Attribute Model
Capitalize in Relative Advantage: A brand is viewed as being
superior on a particular attribute
Strengthen perceived Product-Attribute Links: Creating
campaigns that help associate a product with a specific attribute
Add a new attribute: Product marketers frequently try to create a
position distinct from those of their competitors by adding a
product feature

Influence Competitors Ratings: Decreasing the positivity of

competitors (comparative advertising like Mac vs. PC
campaigns)

The Extended Fishbein Model

The theory of Reasoned Actions: An updated version of the
original model but it has an improved ability to predict relevant
behavior (this action aims to measure behavioral intentions,
recognizing that certain uncontrollable factors inhibit prediction
of actual behavior)
Social Pressure: The theory acknowledges the power of other
people in influencing behavior (our behavior and actions are
different when were alone when compared to being with friends)
Subjective Norm (SN): The effects of what we believe other
people think we should do
The model now measures the Attitude toward the Act of
buying (AACT) rather than only the attitude toward the product
itself. In other words, it focuses on the perceived consequences
of a purchase. Knowing how someone feels about buying or using
an object turns out to be more valid than merely knowing the
consumers evaluation of the object itself
Types of Normative Influence:
Descriptive Norms: Norms that convey information regarding
what other people commonly do (85% of people recycle)
Injunctive Norms: Norms that convey information regarding what
is commonly approved and disproved of by others (Society is
saying its good to recycle)

CHAPTER 8: Attitude Change and Interactive Communications

Persuasion: The active attempt to change attitudes (the central goal of
many marketing communications). There are several psychological
principles that influence people to change their minds or comply with a
request
Reciprocity: People are more likely to give if they receive
something first
Scarcity: Items become more attractive when they are less
available
Authority: We tend to believe an authoritative source much more
readily

Consistency: People try not to contradict themselves in terms of

what they say or do about an issue
Consensus: We often take into account what others are doing
before we decide what to do

Tactical Communications Options

Who will be depicted using the product in the ad?
How should the message be constructed?
What media should be used to transmit the message?
What characteristics of the target market might influence the
ads acceptance?
The Elements of Communication
Sources must chose and encode a message (putting a meaning); the
message must be then transmitted via a medium (television, print ad,
social media). The message is the decoded by the receiver who
interprets the message and then feedback is given back to the sender
(through actions etc.)
Permission Marketing: Based on the idea that the marketer will be
much more successful trying to persuade consumers who have opted
into their messages (Today, consumers have much more choice
available to them and a greater control over which messages they
chose to process)
Uses and Gratification Theory: Argue that consumers are an active,
goal-directed audience that draws on mass media as a resource to
satisfy needs (Instead of asking what media do for or to people, they
ask what people do with their media). This theory emphasizes that
media compete with other sources to satisfy needs and they these
needs include diversion and entertainment as well information
Customer Co-Creation: When the consumer interacts with the marketer
to influence the product, service or outcome (giving the customer a
voice in how the product is offered often leads to not only more
innovative solutions, but also consumer engagement) Like game
testers
Social Media: This term refers to the set of technologies that enable
users to create content and share it with a large number of others.
Social media outlets include Blogs, Vlogs, Podcasting, Virtual worlds,
Microblogs, widgets, social networks etc.
Two Types of Feedback
1. First-Order Response: Direct-marketing vehicles such as
catalogues and TV infomercial are interactive; if successful they

result in an order, which is most definitely a response

(transaction that provides revenue but also a way to measure the
effectiveness of the marketing efforts)
2. Second-Order Response: Messages can prompt useful responses
from customers, even though these recipients do not necessarily
place an order immediately after being exposed to the
communication (if they want to see how people respond socially
about a message or a brand)
Persuasion Knowledge Model (PKM): Suggests that consumers develop
knowledge about persuasion and use this knowledge to cope with or
deal with persuasive attempts (persuasion is a two way interaction
between the consumer and the agent with their own separate goals).
The target has three types of knowledge (Two important source
characteristics is credibility and attractiveness)
1. Topic Knowledge: specific knowledge related to the specific issue
at hand
2. Agent Knowledge: knowledge about the source of the persuasion
3. Persuasion Knowledge: knowledge about the persuasive tactics
being used
Source Credibility: Refers to the communicators expertise, objectivity
or trustworthiness (This dimension relates to consumers beliefs that
this person is competent and will provide the necessary information we
need when evaluation competing products)
Celebrities increase awareness of a firms advertising and
enhance both company image and brand attitudes (effective way
of differentiating between products)
Sleeper Effect: People appear to forget about the negative source
and change their attitudes anyways
Credibility can be enhanced if the sources qualifications are
perceived as relevant to the product being endorsed (An older
women advertising cream)
Source Biases are a consumers beliefs about a products
attributes can be weakened if the source is perceived to be the
victim of a bias in presenting information
o Knowledge Bias: Implies that a sources knowledge
about a topic is not accurate
o Reporting Bias: Occurs when a source has the
required knowledge but is not willing to convey it
accurately
Corporate Paradox: The more involved a company appears to be in the
dissemination of news about its products, the less credible it becomes

(consumer word of mouth is typically the most convincing kind of

message)
o Buzz: Word of mouth viewed as authentic and generated by
customers
o Hype: Word of mouth dismissed as inauthentic propaganda
planted by the company
Source Attractiveness: refers to the sources perceived social value.
This quality can emanate from the persons physical appearance,
personality, or social status, or from his or her similarity to the receiver
(we like to listen to people who are like us)
o Halo Effect: Occurs when individuals who are rated highly on one
dimension are assumed to excel on others as well (good-looking
people are considered to be cooler, smarter and happier). This
effect can be explained using the consistency principle, which
states that people are more comfortable when all their
judgments about a person go together, a notion also called the
what is beautiful is good stereotype
o Ads with beautiful people get more attention and change
attitudes more easily but dont necessarily mean that the people
actually read it. People tend to have more positive feelings to a
product/ad/brand if a beautiful person is suggesting it, and they
are more likely to purchase it
o Social Adaptation Perspective: Assumes that information seen to
be instrumental in forming an attitude will be more heavily
weighted by the perceiver; we filter out irrelevant information to
minimize cognitive efforts (an attractive person is very relevant
when the product theyre promoting is related to attractiveness)
Match-Up Hypothesis: The celebritys image and that of the product he
or she is endorses should be similar and related (cannot simply be
because theyre famous)
The Message: The single most important feature that determines
whether or not a commercial message will be persuasive is if the
message contained a brand-differentiating message (did the
communicator stress unique attributes or benefits of the product) Pg.
224. The characteristics of the commercial message itself help to
determine the impact of the message on attitudes
Sending the Message: The verbal version affects ratings on the
utilitarian aspects of a product, while the visual version affects
aesthetic evaluations. Verbal elements are more effective when
reinforced by an accompanying picture, especially if the illustration is
framed (the message in the picture is strongly related to the copy and
visuals evoke moods and emotions more effectively). Verbal messages

are most appropriate for high-involvement situations, such as print

contexts where readers are motivated to pay attention to advertising
o Vividness: Powerful descriptions or graphics command attention
and are more strongly embedded in memory because they tend
to activate mental imagery, while abstract stimuli exhibit this
process (be specific)
o Repetition: Multiple exposures to a stimulus are usually required
for learning (especially conditioning) to occur
Meer Exposure Effect: People tend to like things that are
more familiar to them, even if they were not too keen on
them initially
Habituation: The consumer no longer pays attention to the
stimulus because of fatigue or boredom (too used to it)
Two Factor Theory: Proposes that two separate psychological processes
are operating when a person is repeatedly exposed to an ad. The
positive side of repetition is that it increases familiarity and thus
reduces uncertainty about the product. The negative side is that over
time, boredom increases with each exposure

Supportive Arguments: Messages that present one or more

positive attribute about the product or reasons to buy it
Two Sided Message: Both positive and negative information is
presented (Refutational Arguments: a negative issue is raised
and then dismissed)
Comparative Advertising: A strategy wherein a message
identifies two or more specifically named or recognizably
presented brands and compares them in terms of one or more
specific attributes (Mac vs. PC)

Types of Message Appeals (Pg. 229-223)

Emotional vs. Rational Appeals
Sex Appeals
Humor Appeals
Fear Appeals: Highlights the negative consequences that can
occur if the consumer fails to change the behavior or attitude
(Slice of Death Approach)
Metaphor: Involves the use of an explicit comparison, such as A and
B allowing marketers to activate meaningful images and apply them
to everyday events (Marketers may be seen as storytellers who use
literary devices to supply visions of reality similar to those provided by
authors, poets and artists (make things come to life) Substitutes one
meaning for another by connecting two things that are somewhat
similar

Resonance: A form of presentation that combines play on words with a

relevant picture (uses an element that has a double meaning, such as
a pun. (A strawberry commercial with the tagline berried treasure)

Lecture: A speech in which the source speaks directly to the

audience members in an attempt to inform them about a product
or to persuade them to buy it
Drama: A drama draws consumers into the action, where they
are addressed indirectly and they interact with each other about
a product or service in an imaginary setting (they attempt to be
experiential to involve the audience emotionally)
Transformational Advertising: The consumer associates the
experience of product usage with some subjective sensation

The Elaboration Likelihood Model (ELM): Assumes that once a

consumer receives a message, he or she begins to process it. Two
routes can be taken
1. The Central Route to Persuasion: (High Involvement) When the
consumer finds the information in a persuasive message to be
relevant or somehow interesting, he or she will carefully attend
to the message content (the person is likely to think actively
about the arguments presented and generate cognitive
responses to these arguments)
2. The Peripheral Route to Persuasion: (Low Involvement) This route
is taken when the person is not motivated to think about the
arguments presented (consumer is likely to use other cues such
as the products package, attractiveness of the source or the
context of the message in deciding the suitability of the
message) Sources of information extraneous to the actual
message content are called peripheral cues because they
surround the actual message
The relative effectiveness of a strong message and a favorable source
depends on consumers level of involvement with the product being
advertised. Highly involved consumers look for the steak (strong,
rational arguments), while those who are less involved are more
affected by the sizzle (the colors and images used in packaging, or
endorsements by famous people)

CHAPTER 11: Group Influence and Social Media

Reference Group: Is an actual or imaginary individual or group
conceived of as having significant relevance upon an individuals
evaluations, aspirations, or behavior. Reference groups influence
consumers in three ways (how other people influence our purchase
decisions) Page 320
1. Informational (conformity under acceptance of evidence about
reality which has been proven by others)
2. Utilitarian
3. Value-Expressive
Normative Influence: The reference group helps to set and enforce
fundamental standards of conduct (our parents forming us attitudes of
who to marry and where to go to University). This is more like informal
groups that tend to be more involved in individuals day-to-day life
(high in normative influence)
Comparative Influence: Decisions about specific brands or activities are
affected (Formal groups tend to be more product or activity specific
and thus are high in comparative influence)

Brand Community: A set of consumers who share a set of social

relationships based on usage or interest in a product (typically dont
live close and meet infrequently). People part of brand communities
tend to feel more positively and associate themselves with the brand
more, thus increasing their brand loyalty and turns them into brand
missionaries)
Aspirational Reference Groups: comprise of idealized figures, such as
successful businesspeople, athletes or performers (people relate this to
their ideal selves)
The likelihood that people will become part of the consumers
identified reference group is affected by several factors,
Propinquity (Physical Nearness): As physical distance between
people decreases and opportunities for interaction increase,
relationships are more likely to form
Mere Exposure: We come to like people or things simply as a
result of seeing them more often, which is known as the mere
exposure effect
Group Cohesiveness: The degree to which members of a group
are attracted to each other and value their group membership
(exclusivity is huge)
Dissociative Reference Groups: Groups or group members the
consumer wants to avoid association with (avoid anything that belongs
or relates to a despised group)
Antibrand Communities: These groups also coalesce around a
celebrity, store or brand but in this case theyre united buy their
disdain for it
*Two dimensions that influence the degree to which reference groups
are important are whether their purchase is to be consumed publically
or privately and whether it is a luxury or necessity (Table on page 325)
Social Power: Refers to the capacity to alter the actions of others (the
degree you are able to make someone else do something, whether
willingly or not)
Types of Power
Referent Power: If a person admires the qualities of an individual
or a group, he or she will try to imitate those qualities by copying
the referents behavior (clothes, car etc.) as a guide to forming
consumption preferences (This is important because consumers

actively change their behavior to please or identify with a

referent)
Information Power: A person can have information power simply
because he or she knows something others would like to know
Legitimate Power: Sometimes people are granted power by
virtue of social agreements, such as that given to police officers
and politicians (recognized by a uniform, actual authority)
Expert Power: Expert power is derived from possessing a specific
knowledge or skill
Reward Power: When a person or group has the means to provide
positive reinforcement, that entity will have power over a
consumer to the extent that this reinforcement is valued or
desired (when social approval or acceptance is exchanged in
return for molding ones behavior to conform to a group or
buying the products expected of group members)
Coercive Power: Surveillance of some sort is usually required to
make people do something they do not wish to do (Is often
effective in the short term, but it does not tend to produce
permanent attitudinal or behavioral change intimidation)

Conformity: Refers to a change in beliefs or actions as a reaction to real

or imagines group pressure (Members develop norms, or informal
rules, that govern behavior)
Factors Influencing the Likelihood of Conformity
Cultural Pressure: Different cultures encourage conformity to
extents
Fear of Deviance: Belief that a group will apply sanctions to
punish behavior that differs from the groups
Commitment: The more a person is dedicated to a group and
values memberships in it the more motivated he or she will be to
follow the dictates of the group
Group Unanimity/Size/Expertise: As groups gain power,
compliance increases
Susceptibility to Interpersonal Influence: An individuals need to
identify with or to enhance his or her image in the opinion of
significant others (buying/using products the person believes will
impress others)
Social Comparison Theory: Suggests that consumers will often compare
themselves to others in ways that increase the stability of ones selfevaluation, especially when objective evidence is unavailable (some
stylistic decision like music are assumed to be a mater of individual
choice yet some people believe that some are better then others)
Tactical Requests Techniques

Foot-in-the-Door Technique: consumer is first asked a small

request and then is hit up for something bigger
Low-ball Technique: a person is asked for a small favor and it
informed, after agreeing to it, that it will be more costly than
they first anticipated
Door-in-the Face Technique: a person is first asked to do
something extreme (a request that is usually refused) and then is
asked a smaller, more reasonable request since they tend to go
along with the smaller one

Deindividuation: Individual identities get submerged with groups

(theyre all known as one, not individuals)
Risky Shift: Groups are more willing to make riskier decision than
individuals
o Diffusion of Responsibility: everyone held accountable as a
group
o Value Hypothesis: Riskiness is a cultural thing and social
pressures operate on individuals to conform to attributes
values by society
Decision Polarization: Whichever direction the group members were
leaning toward before discussion began toward a risky choice or a
conservative one becomes even more extreme after discussion
Social Loafing: Refers to the act that people do not devote as much
effort to a task when their contribution is part of a larger group effort
Home Shopping Parties: Epitomized by the Tupperware party,
capitalize on group pressures to boost sales (Pressure to conform may
be particularly intense and may escalate as more and more group
members begin to cave in, a process called bandwagon effect)
Peoples Decision Roles
Initiator: The person who brings up the idea or identifies a need
Gatekeeper: The person who conducts the information search
and controls the flow of information available to the group
Influencer: The person who trys to sway the outcome of the
decision; some people may be more motivated than others to get
involved, and participants also possess different amounts of
power to get their points across
Buyer: The person who actually makes the purchase; the buyer
may or may not actually use the product
User: The person who actually consumers the product or service

Reactance: People have a deep-seated need to preserve freedom of

choice. When they are threatened with a loss of this freedom, they try
to overcome this loss
Opinion Leader: A person who is frequently able to influence others
attitudes or behaviors (opinion leaders tend to be slightly higher in
education, social status and rank than those they are influencing)
1. They are technically competent thus are convincing because
they possess expert power
2. They represent their own interest and their own unbiased opinion
about what is right
3. They tend to be socially active and highly interconnected in their
communities
4. They tend to be similar to the consumer in terms of their values
and beliefs, so they possess referent power
5. Opinion leaders are often among the first to buy new products,
so they absorb much of the risk
Monomorphic: Experts in a limited field
Polymorphic: Experts in several fields
Two Step Flow Model of Influence: A small group of influencers are
responsible for dissemination of information, since they can modify the
opinions of a large number of other people
Influence Network: Influence is driven less by influential and more by
the interaction among those who are easily influenced; they
communicate the information vigorously to one another and they also
participate in two-way dialogue with the opinion leader
Cascades: Occurs when a piece of information triggers a
sequence of interactions
Market Haven: (A consumer category): Has been proposed to describe
people who are actively involved in transmitting marketplace
information of all types (they tend to have solid overall knowledge of
how and where to procure products)
Surrogate Consumer: Is a person who is hired to provide input into
purchase decisions (interior decorator, stockbrokers etc.)
The Self-Designating Method: The most commonly used technique to
identify opinion leaders is simply to ask individual consumer whether
they consider themselves to be opinion leaders (may have some bias
because people tend to inflate their own ego)
An alternative to this is to select certain group members (keyinformants) who are then asked to identify opinion leaders

Sociometry: Trace communication patterns among group members;

allow researchers to systematically map out interactions that take
place among group members (Researchers speculated that the reason
that social contagion effect is that when our best buds get fat, this
alters our perception of normal body weight so we arent as concerned
when we put on some weight ourselves)
Can be used to better understand referral behavior and to locate
strengths and weaknesses in terms of how ones reputation is
communicated through a community
Network analysis focuses on communication in social systems; it
considers the relationship among people in a referral network
and measures the tie strength among them (Strong Primary =
Your spouse, Weak Secondary = Your acquaintance you rarely
see)
Bridging Function: One of your friends introducing you to a group
which you share a similarity with (a subgroup)
Word-of-Mouth Communication (WOM): Product information
transmitted by individuals to individuals (since this usually comes from
people we know, this information tends to be more trustworthy then
recommendations we get through formal marketing channels often
backed up by social pressure to conform to these recommendations)
this is exceptionally powerful when the consumer is unfamiliar with the
product category
People may want to just gloat about their knowledge
May bring up product attributes out of genuine concern for
someone else
They may be highly involved with the product and take pleasure
in talking about it
Negative Word of Mouth: Is weighted more heavily by consumers than
are positive comments (when people really hate something they pass it
a long strongly influences consumers not to buy product)
Buzz Building: Refers to the activities undertaken by marketers to
encourage consumers to spread WOM about a brand
The Wisdom of Crowds: Perspective (from a book by that name)
argues that under the right circumstances groups are smarter
than the smartest people in them
Guerilla Marketing: Promotional strategies that use
unconventional locations and intensive word-of-mouth
campaigns to push products (relatively affordable techniques and
do an excellent job at getting consumers attention)

Viral Marketing: The strategy of getting customers to sell a

product on behalf of the company that creates it (sharing their
deal with friends etc.)

Social Media: All about community, the collective participation of

members who together build and maintain a site (a unified body of
individuals, unified by interests, locations, occupation, common history,
or political and economic concerns)
Cyberspace: a place where people connect online with kindred
spirits, engage in supportive and sociable relationships with
them, and imbue their activity online with meaning, belonging
and identity)
Social Network: (sometimes referred to as social graphs) a set of
socially relevant nodes connected by one or more relations
Nodes: Members of the network (network units or ties)
o Nodes in a network experience interactions; these are
behavior-based ties such as talking with each others,
attending an event together or working together
o Flows: Occur between nodes, they are exchanges of
resources, information or influence among members of the
network (sharing pictures, information, videos on Facebook
etc.)
o Media Multiplixity: The theory that these flows of
communication go in many directions at any point in time
and often on multiple platforms
o For marketers, flows are especially important because they
are the actionable components of any social network
system in terms of the sharing of information, delivery of
promotional materials, and sources of social influence
Social Object Theory: Suggests that social networks will be more
powerful communities if there is a way to activate relationships among
people and objects (in this perspective, an object is something of
common interest and its primary function is to mediate the interactions
between people)
Object Sociability: The extent to which an object can be shared in
social media, is clearly related to an audiences unique interests by
virtue of tying the site relationships to a specific object such as photos
of peoples cats or bookmarked websites that provide details about the
history of alternative music (people who join these things are probably
obsessed with the topic)

Virtual Community of Consumption: A collection of people who interact

online to share their enthusiasm for knowledge about a specific
consumption activity (forming common love for a product)
Communities help members meet their needs for affiliation, resource
acquisition, entertainment and information.
Interactive platforms enable online communities to exhibit these basic
characteristics
Conversation: Communities thrive on communication among
members
Presence: The effect people experience when they interact with
computer-mediated or a computer generated environment (look
and feel real)
Collective Interests: Commonalties to create bonds among
members (share peoples passion)
Democracy: Leaders emerge due to the reputation they earn
among the general membership
Media Democratization: Means that members of social communities,
not traditional media publishers like magazines or newspaper
companies, control the creation, delivery and popularity of content
Standards of Behavior: Virtual communities need rules that
govern behavior in order to operate
Level of Participation: For an online community to thrive, a
significant proportion of its members must participate (lurkers
are people who just serf the web and social media but do not
participate)

CHAPTER 12: Income, Social Class and Family Structure

The specific products and services we buy are often intended to make
sure other people know what our social standing is or what we would
like to be. Products are frequently bought and displayed as markers of
social class they are valued as status symbol. This is especially true in
large, modern societies where behavior and reputation can no longer
be counted on to convey ones position in a community
Two factors play a huge role in the booming Canadian economy
1. Womens more advanced roles in the workforce
2. Improving educational rates
Discretionary Income: Is the money available to a household over and
above that required for a comfortable standard of living (increases as
overall income goes up and decrease as debt goes up)
Two types of frugal consumers (cautious with their money)
1. Spendthrifts: Those who spend cautiously because they enjoy
saving money
2. Tightwads: Those who spending money is an unpleasant
experience (more likely to be men, older people or those more
educated)
The evidence suggests that frugality is driven by a pleasure of
saving, as compared with tighwaddism, which is driven by a pain
of paying
The three shopper groups (5 product categories are food,
entertainment, apparel, home goods and pharmaceuticals)

Brand Aspirational: People with low incomes who are obsessed

with brand names, such as KitchenAid
Value-Price Shoppers: Those who like low prices and cannot
afford much more
Price-Sensitive Affluent: Wealthier shoppers who love deals

Behavioral Economics: (Economic Psychology) this field of study is

concerned with the human side of economic decisions. This discipline
studies how consumers motives and their expectations about the
future affect their current spending and how these individual decisions
add up to affect a societies economic well-being
Consumer Confidence: Consumers beliefs about what the future
holds, which reflects the extent to which people are optimistic or
pessimistic about the future health of the economy and how
theyll predict theyll fare down the road (this determines how
much money consumers will pump into economy) One thing that
lowers consumer confidence is Gas Prices
Savings Rate is influenced by
1. Consumers pessimism or optimism about their personal
circumstances
2. National and world events
3. Cultural differences and attitudes toward saving
Social Class: (A consumers standing in society) is determined by a
complex set of variables that include income, family background,
education and occupation (we divide all societies into haves and
have nots
Karl Marx, an economic theorist, felt that position in a society
was determined by a persons relationship to the means of
production. The haves control the resources and use the labor
of others to preserve their privileged positions, while the have
nots depend on their own labor for survival, so these people
have the most to gain by changing the system
Homogamy: (Assortative Mating): We tend to marry people
similar in social class to ourselves
Social Stratification: Refers to the creation of artificial decisions,
those processes in a social system by which scarce and valuable
resources are distributed unequally to status positions that
become more or les permanently ranked in terms of the share of
valuable resources each receives
Status Hierarchy: Some members are somehow better off than
others, they may have more authority or power, or other
members simply like or respect them (Paris Hilton)
Achieved Status: resources earned by working hard for it

Ascribed Status: Resources youre born into or lucky enough to inherit

Social Mobility: Refers to the passage of individuals from one social
class to another (depends on what culture you live in cause some are
permanent and others are not)
Horizontal Mobility: Occurs when a person moves from one
position to another that is roughly equivalent in social status
(nurse becomes a teacher)
Downward Mobility: Displaced workers are forced to go on social
assistance or people join the ranks of the homeless
Upward Mobility: Moving up in status like a middle class family
making it rich
China: Asians tend to be highly sensitive to cues that
communicate social standing, and well-known brand names help
to manage this impression (Rising middle class)
Japan: Is highly brand-conscious society in which upscale
designer labels are incredibly popular
Middle East: Searching for the latest in western luxury brands is
a major leisure activity for those with money (companies must
adapt to culture and religious boundaries)
The United Kingdom: England is an extremely class-conscious
country, and, at least until recently, inherited position and family
background predetermined consumption patters (a lot is
inherited from family wealth and status)
India: India is a booming economy where high end stores are
scavenging to open (Bollywood is a huge market with many stars
that have potential)
BRIC: The biggest emerging markets (Brazil, Russia, India and China)
Mass Class: This segment comprises the hundreds of millions of global
consumers who now enjoy a level of purchasing power that enables
them to afford high quality products except for big ticket items such
as university educations, housing or luxury cards
Components of Social Class
Occupational Prestige: Evaluating ones worth by what they do for
a living (the single best indicator of social class because it
decides everything)
Income: The distribution of wealth determines which groups have
the greatest buying power and market potential (not the best
indicator of social class)
Educational Attainment: Those who go further in school have
better potential for future attainment

o Social class is a better predictor of purchases that have

symbolic aspects but low-to-moderate prices (cosmetics
and liquor)
o Income is a better predictor of major expenditures that do
not have status or symbolic pickup truck aspects (major
appliances)
o Both social class and income data are needed to predict
purchases of expensive, symbolic products (cars and
homes)
Potent Actors: Those who believe they have the ability to take actions
that affect their world
Impotent Actors: Those who feel they are at the mercy of their
economic situations
*Social class involves much more than absolute income. It is also a way
of life, and factors including where they got their money, how they got
it, and how long they have had it significantly affect affluent consumer
interests and spending priorities
SRI Consulting Business intelligence divides consumers into three
groups on the basis of their attitudes toward luxury
1. Luxury is Functional: These consumers buy things that will last
and have enduring value. They conduct extensive prepurchase
research and make logical decisions rather than emotional or
impulsive choices
2. Luxury is a Reward: These consumers tend to be younger than
the firs group but older than the third group. They often use
luxury goods to say, Ive made it. The desire to be successful
and to demonstrate their success to others motivates these
consumers to purchase conspicuous luxury items, such as highend cars and homes in exclusive communities
3. Luxury is Indulgence: The smaller of the two and also the
youngest, which tends to include more males. To these
consumers, the purpose of owning luxury items is to be
extremely lavish and self-indulgent. This group is willing to pay a
premium for goods that express its individuality and make others
take notice have an emotional attachment to luxury spending
and are more likely to make impulse purchases)
Taste Culture: Differentiates people in terms of their aesthetic and
intellectual preferences
o Upper and Upper Middle Class consumers are more likely to visit
museums and attend live theater
o Middle Class consumers are more likely to go camping or fishing

o The Upper Class is more likely to listen to all-news programs

o Middle Classes are more likely to tune into country music
Online Gated Communities: Selectivity allows access to some people
may offer a high degree of social capital to the lucky few who pass the
test
Status Symbol: A major motivation to buy and display what we buy is
not to enjoy these items, but rather to let others know that we can
afford them (we all want to be better than everyone else)
How to people cope with seeing their luxury items as imitations?
1. Flight: They stop using the brand because they dont want to be
mislabeled as a lesser-status person who buys fake brands
2. Reclamation: They go out of their way to emphasize their long
relationship with the brand but express concern that its image
will be tarnished
3. Abranding: They disguise their luxury in the belief that truly highstatus people do not need to display expensive logos while
those who do betray their lower status
Indevious Distinction: To inspire envy in others through the display of
wealth and power
Conspicuous Consumption: Refers to peoples desire to provide
prominent, visible evidence of their ability to afford luxury goods
Status Signal Preferences (Pg 370)
Patrician: They signal to each other, they use quiet signals
Parvenu: They associate with other haves and want to
disassociate themselves from the have nots, they use loud
signals
Proletarian: They do not engage in signaling
Poseur: Aspire to be haves, they mimic the parvenus
Parody Display: Deliberately avoiding status symbols, that is, to seek
status by mocking it
Status Crystallization: Assess the impact of social-class inconsistency
(someone may not have a high paying job but they live in a lavish
house and vise versa). The logic is that when these indicators are not
consistent, stress occurs because the rewards from each part of such
an unbalanced persons life are variable and unpredictable. People
who exhibit such inconsistencies tend to be more receptive to social
change than those whose identities are rooted more firmly

Social class remains an important way to categorize consumers, yet

marketers fail to use this information effectively because
They ignore status inconsistency
They ignore intergenerational mobility
They ignore subjective social class (the class in which a
consumer identifies rather that the one to which he or she
actually belongs)
They ignore consumers aspirations to change their class
standing
They ignore social status of working wives
Family Structure
Household Structure
Household Living Arrangements: Refers to whether or not the
person lives with another person and if so, whether or not he or
she is related to that person (s)
Census Family: A married couple and the children, if any, of
either or both partners, a couple living common law with children
of both spouses or a lone parent of any marital status living with
at least one child (also includes children living with their
grandparents)
The Extended Family: Consists of three generations living
together which often includes grandparents, aunts, uncles and
cousins
Nuclear family: A mother and father and one or more children
(the model family)
Family Age
The average age in which people are getting married is getting
older as time goes by (people are waiting to get married)
Understanding the family life stage helps marketers understand
how to position anything towards families more effectively
Family Size
Family size is dependent on factors such as educational level, the
availability of birth control, and religion
Total Fertility Rate (TFU): The average number of children that
would be born per women if all women lived to the end of their
childbearing years and bore children according to a given fertility
rate at each age
Marketers keep an eye out for birth rates to see the how the
pattern of births will effect demand for products in the future
Sandwich Generation: Middle-aged people who must care for and
attend to those above (parents) and bellow (children) in age

The Family life Cycle: There are many factors that determine how a
couple spends their time and money (how many children, age,
employment etc.), but there are two primary ones
1. Whether they have children
2. Whether the women works outside the home (must make
allowances for daycare, cleaning services, wardrobe etc.)
Family Life Cycle Concept (FLC): (Segments Households) It combines
trends in income and family compensation with the changes these
demands place upon this income (as we age, our preferences and
needs for products and activities tend to change)
A life-cycle approach to the study of family assumes that pivotal
events alter role relationships and trigger new stages of life that
alter our priorities (these vents include couples moving in
together, giving birth to a child, the departure of the last child
from home, the death of a spouse, retirement and divorce)
There are four variables that describe these changes adequately
1. Age
2. Marital Status
3. The presence or absence of a child from home
4. The childrens age
o In addition, our definition of a household must be relaxed
to include any couple living together in a long-term
relationship

CHAPTER 10: Buying and Disposing

Relationship Marketing: Based on building strong customer service
experience with loyal customers in ways that foster a continued
relationships over time
Consumption Situation: Defined by contextual factors over and above
characteristics of the person and the product (Can be behavioral or
perceptual)
Issues Related to Purchase and Postpurchase Activities
Antecedent States
Situational Factors
Usage Contexts
Time Pressure
Mood
Shopping Orientation
Purchase Environment
Time Shopping Experience
Point-of-Purchase Stimuli
Sales Interactions
Postpurchase Processes
Customer Satisfaction
Product Disposal
Alternative Markets
Physical and Social Surroundings: This can make a big difference in
motives for product usage and also affect how the product is
evaluated. Important cues include the persons physical surroundings
as well as the number and type of other consumers also present in the
situation
Consumer Contamination: If another consumer touches the
product in a retail context, this can lead to consumers negatively
evaluating the product (unless the person was attractive, then
they evaluate it positively)
The presence of large numbers of people in a consumer
environment increases arousal levels so that a consumers
subjective experience of a setting tends
Crowding: The amount of people in a physical proximity, and
usually has a negative psychological connotation (crowding in a
retail context results in more variety seeking amongst
consumers)

Temporal Factors: Our perspective on time can effect many stages of

decisions making and consumption, such as when needs are
stimulated, the amount of information search we undertake etc.
Economic Time: Consumers try to maximize satisfaction by
allocating time to appropriate combination of tasks (A persons
priorities determines lifestyles)
o Time Poverty: Feeling extremely pressed for time
o Polychromic Activity: Consumers do more than one thing at
a time
Psychological Time: Our experience of time is subjective and is
influenced by our immediate priorities and needs (we can
identify time categories in terms of when people are likely to be
receptive to marketing messages)
o Flow Time: We become so absorbed in an activity that we
dont notice anything else (not a good time for ads)
o Occasion Time: This includes special moments when
something monumental occurs, such as a birth or an
important job interview (Ads clearly relevant to the
situation will be given out attention)
o Deadline Time: Any time when were working against the
clock is the worst time to try and catch our attention
o Leisure Time: During downtime, we are more likely to
notice ads and try new things
o Time to Kill: This is when were waiting for something to
happen, such as catching a plane or sitting in a waiting
room. This is bonus time, where we feel we have the luxury
to focus on extraneous things (As a result, were more
receptive to commercial messages)
How time styles of a group of women influenced their consumption
choices; there are four dimensions
1. The Social Dimension: Refers to individuals categorization of
time as either time for me or time with/for others
2. Temporal Orientation Dimension: Depicts the relative significance
individuals attach to past, present and future
3. Planning Orientation Dimension: Alludes to different timemanagement styles varying on a continuum from analytic to
spontaneous
4. Polychromic Orientation Dimensions: Distinguishes between
people who prefer to do one thing at a time from those who have
multitasking timestyles
Five metaphors that capture the participants perspective on time

Time is a Pressure Cooker: Women who personify this metaphor

are usually analytic in their planning, other-oriented, and
monochromic in their time styles. They treat shopping in a
methodical manner and often feel under pressure and in conflict
Time is a Map: Women who exemplify this metaphor are usually
analytic planners and have a future temporal orientation and
polychromic timestyle. They often engage in extensive
information search and comparison shopping
Time is a Mirror: Women in this group are also analytic planners
and have a polychromic orientation. However, they have a past
temporal orientation. Due to their risk-averseness in time use,
these women are usually loyal to products and services they
know and trust (They prefer convenience-oriented products)
Time is a River: Women whose timestyles can be described by
this metaphor are usually spontaneous in their planning
orientation and have a present focus. They go on unplanned,
short, frequent shopping trips on impulse
Time is a Feast: These women are analytic planners who have a
present temporal orientation. They view time as something to be
consumers in the pursuit of sensory pleasure and gratification;
hence, they are motivated by hedonic and variety-seeking
desires in their consumption behavior, which explains why they
prefer fresh and novel ingredients when they buy food

Queuing Theory: The mathematical theory of waiting lines (A

consumers experience of waiting can drastically influence their
perceptions of the service)
There are two dimensions that determine whether a shopper will react
positively or negatively to a store environment
1. Pleasure (Gloomy or Relaxing)
2. Arousal (Distressing or exciting)
Shopping can be done for two reasons
1. Utilitarian Reasons (Functional or Tangible)
2. Hedonic Reasons (Pleasure or Intangible)
Women shop to love (finding emotional fulfillment by
shopping) while men shop to win (seek to demonstrate
their expertise or ability to procure status items)
Hedonic Shopping Motives can include
o Social Experiences: Gathering place for people
o Sharing of Common Interests: Stores offer specialized goods that
allow people with common interests to communicate

o Interpersonal Attraction: Shopping malls are natural places to

congregate
o Instant Status: Feeling important because someone is serving
you
o The thrill of the Chase: People pride themselves on their
knowledge of the market and relish the process of haggling and
bargaining
Shopping Orientation: General attitudes about shopping, with several
shopping type
1. Economic Consumer: A rational, goal-oriented shopper who is
primarily interested in maximizing the value of his or her money
2. Personalized Consumer: A shopper who tends to form strong
attachments to the store personnel
3. Ethical Consumer: A shopper who likes to help out the underdog
and will support locally owned stores against big chains
4. Apathetic Consumer: A shopper who does not like to shop and
sees it as a necessary but unpleasant chore
5. Recreational Shopper: A shopper who views shopping as a fun
social activity (a preferred way to spend leisure time)
6. Transumer: A shopper who opts for temporary ownership or
experiences of products, rather then permanently acquiring them
(A trend driven by wanting to be current and fashion-conscious
while remaining environmentally sustainable)
Pretailer: A company who produce items that their customers tell them
they want
Retail Theming: The quest to entertain means that many stores are
going all out to create imaginative environments that transport
shoppers to fantasy worlds or provide other kinds of stimulation.
Innovative merchants today use four basic kinds of themes (One
popular theming strategy is turning a store location into a Being
Space, an environment where people can go and relax, be
entertained, hang out with friends and escape the everyday struggles
ex. Starbucks)
1. Landscape Themes: Rely on association with images of nature,
the earth, animals and the physical body (Camping stores having
a simulated indoor experience)
2. Marketscape Themes: Build on association with human-made
places (a Venetian style hotel in Las Vegas that remakes part of
the city)
3. Cyberspace Themes: Built around images of information and
communications technology (eBays retail interface instills a
sense of community between the vendors and traders)

Store Image/Personality: Location, merchandise suitability, and

knowledge and congeniality of the sales staff (can really help people
decide which store to visit)
o Consumers evaluate stores in terms of their specific attributes
and global evaluations or gestalt) Evoked Sets
Atmospherics: The conscious designing of space and its various
dimensions to evoke certain effects in buyers (colors, scents, and
sounds etc.)
o Light colors impart a feeling of spaciousness and serenity
o Bright Colors create excitement
Unplanned Buying: occurs when a person unfamiliar with a stores
layout is under time pressure (recognizing new need while in the store
or being forced to get it)
Impulse Buying: Occurs when the person experiences a sudden urge
that she or he cannot resist
Point-of-Purchase Stimulus: an elaborate product display or
demonstration, a coupon-dispensing machine, or someone giving
out free samples of a new cookie in the grocery isle (increasing
impulse purchases)
The Salesperson: One of the most important in-store factors is the
salesperson, which attempts to influence the buying behavior of the
consumer
Exchange Theory: stresses that every interaction involves
an exchange of value; each participant gives something to
the other and hopes to receive something in return
Commercial Friendships: Involve affection, intimacy, social
support, loyalty and reciprocal gift giving. They also work
to support marketing objectives such as satisfaction,
loyalty and positive word of mouth (Having a sense of
connection and attractiveness to each other)
Consumer Satisfaction/Dissatisfaction (CS/D): Is determined by the
overall feelings, or attitude, a person has about a product after it has
been purchased (we as consumers constantly evaluate the things we
buy and use on a daily basis) Consumers want quality and value
when they buy their products, using brand names, price and their own
intuitions to measure this
Expectancy Disconfirmation Model: Consumers form beliefs about
product performance based on prior experience with the product
and/or on communications about the product that imply a certain level

of quality (if something fails to live up to what we thought it would be,

a negative effect may result If performance exceed our expectations,
were pleased)
If consumers are not happy with their product or service, they can do
three things
1. Voice Response: The consumer can appeal directly to the retailer
for redress
2. Private Response: The consumer can express dissatisfaction
about the store or product/service to friends and/or boycott the
store (negative word of mouth)
3. Third-Party Response: The consumer can take legal action
against the merchant, register a complaint with the Better
Business Bureau or post reviews/help on websites, forums and
the newspaper
Total Quality Management (TQM): A complex set of management and
engineering procedures aimed at reducing errors and increasing
quality, has influenced this perspective. To help attain this objective,
researches can go to the gemba (one true source of information, like a
physical location where people can be watched and observed in their
natural behavioral habitat)
Disposal Options: When a consumer decides that a product is no longer
in use, they can keep it, temporarily dispose of it or permanently
dispose of it. In most cases, a new product is already acquired even
though the old one is still functional. Some reasons for replacement
include a desire for new features, a change in the persons
environment or a change in the persons role of self-image (Page 306)
Loss Frame: Focusing on what would be lost if consumers did not
recycle
Works best with exact instructions in order to make recycling
more understandable, easy and attractive
Gain Frame: Focusing on what would be gained if consumers did
recycle
Works better when combined with abstract information regarding
the more general question of why people should recycle (to
benefit the environment)
Lateral Cycling: Already purchased objects are sold to others or
exchanged
Divestment Rituals: People take steps to gradually distance themselves
from things they treasure so that they can sell them or give them
away. Researchers identified the following rituals,

Iconic Transfer Ritual: Taking pictures and videos of objects

before getting rid of them
Transition-Place Ritual: Putting items in an out-of-the way
location, such as a garage or an attic, before disposing of them
Ritual Cleansing: Washing, Ironing, and/or meticulously wrapping
the item

CHAPTER 13: Subcultures

Subculture: a group whose members share beliefs and common

experiences that set them apart from the others (They are group
memberships within our society that help to define us related
demographically to our age, ethic background or region of where we
live etc.)
Microculture: Based on a lifestyle or aesthetic preference, and typically
command fierce loyalty (people who share a passion of MMA fighting or
really devoted Star Wars fans)
Sonys Age Related Segments
Gen Y: (Younger than 25)
Young Professionals/DINKs (Double income, no kids, age 25-34)
Families (35 to 54 years old)
Zoomers (Those older than 55)
Age Cohort: A group of consumers of the same or approximate age
who have undergone similar experiences (For example, they share
many common memories of cultural heroes like sports stars, celebrities
and important historical events like war, stock market crash etc.)
Generational Categories (Consumers within an age group confront
crucial life changes at roughly the same time, so the values and
symbolism used to appeal to them can evoke powerful feelings of
nostalgia (shared moments) + Possessions play a key role in letting us
identify with others of a certain age and express the priorities and
needs we encounter at each life stage)
The Interbellum Generation: People born at the beginning of the
20th century
The Silent Generation: People born between the two World Wars
The War Baby Boomers Generation: People born during World
War 2
Baby Boomers: People born between 1946 1964
Generation X: People born between 1965 1985
Generation Y: People born between 1986 2002
Generation Z: People born 2003 and later
Multigenerational Marketing Strategy: They use imagery that appeals
to consumers from more than one generation (Example: The Super
Bow Best Buy ad featuring Ozzy Osbourne and Justin Bieber)
Generation Y (The Youth) Millennials
This group is hopeful about the future, agreeing that is important
to maintain a positive outlook on life

They have positive associations with the words change, new,

progress, hope and excitement
Tweens (Age 10-14) and Teens (Age 15-19)
Are often brought up by non-traditional families such as single
parents or a working mother
They tend to feel like they belong to the global community first
and love being ethically diverse
They hold relatively traditional values and believe in fitting rather
than rebelling (They stress teamwork, collaboration and service
learning)
Digital Natives: Multitaskers that group up and live with
technology
o Texting
o Video
o Online Brand WOM
o Consumer Generated Content
University students are at a time where they are willing to try
new products so it is a good time for companies to try and attract
them and get them into your franchise (because they live away
from home, brand loyalty doesnt usually stick depending on
what they can afford)
Marketing to teens is action-oriented and depicts teens using the
products. Consumers at this age have a number of needs
including experimentation, belonging, independence,
responsibility and approval from others and status
Four basic conflicts that are common to all teens
1. Autonomy vs. Belonging: Teens need to acquire
independence, so they try to break away from their
families. However, they need to attach themselves to a
support structure, such as peers, to avoid being alone
2. Rebellion vs. Conformity: Teens need to rebel against social
standards or appearance and behavior, yet they still need
to fit in and be accepted
3. Idealism vs. Pragmatism: Teens tend to view adults as
hypocrites, while they see themselves as sincere. They
struggle to reconcile their view of how the world should be
with the realities they perceive around them
4. Narcissism vs. Intimacy: Teens tend to obsess about their
appearance and needs. However, they still feel the need to
connect with others on a meaningful level
Rules of engagement when it comes to consumers
1. Rule 1: Dont talk down (teens like to feel like theyre
drawing their own conclusions and dont like being told
what to do)

2. Rule 2: Dont try to be what youre not (stay true to your

brand image)
3. Rule 3: Entertain them (make it interactive and keep the
sell short)
4. Rule 4: Show that you know what theyre going through,
but keep it light
Marketers view teens as consumers in training because we
often develop brand loyalty during adolescents (getting brand
loyal teens can flourish a long lasting relationship between the
two)
Teens also have a huge impact on the products consumed by the
entire household and the purchase patterns of their parents

Generation X (A group profoundly effected by the economic downturn

of the 1990s and they are less adept to technology)
Theyre a small group sandwiched between Gen Y and the baby
boomers that often dont get targeted by marketers too often
known as the forgotten generation
Baby Boomers
The biggest age cohort available, and also those that had the
most influence and collective power behind some of the biggest
events in history, such as Woodstock, Expo 67, democracy, laws
etc.
Boomers have huge spending power because as they got older,
they earned more. Now as they are beginning to retire (some
may continue to work well beyond their years), they have a lot of
money to spend on luxuries and to live their lives
Although the older generation still accounts for their typical
products such as healthcare and medical bills, they still make up
a huge market of car sales and vacations (The older generations
are getting younger)
The Grey Market: Usually refers to people aged 65 and older (fastest
growing age group on earth). Although they may be considered senior
citizens, theyre living longer and healthier lives and theyre acting
much younger, becoming more in tune with hip trends and current
technology (can be attributed to new health technologies changing
cultural expectation about appropriate behaviors for older consumers
etc.) They are the most brand loyal cohort; they repurchase a brand
more frequently, consider fewer brands and dealers, and chose long
established brands more often
Some industries that stand to benefit from the surging grey
market include exercise facilities, cruises and tourism, cosmetic

surgery, skin treatments and how to books that offer enhanced

learning opportunities
Age is more a state of mind than of body
Chronological Age: The actual number of years the person has
actually been alive
Perceived Age: How old the person feels (measured based on
feel age, how old a person feels, and look age, how old a
person looks)
As people get older, they feel younger so marketers emphasize
product benefits rather than age-appropriateness in campaigns
because consumers will not relate to products that target their
chronological age)
Mature consumers usually respond positively to ads that provide
an abundance of information and are typically not mused or
persuaded by image oriented advertising (Successful strategy
involves advertising that depicts mature consumers as wellintegrated, contributing members of society, with emphasis on
expanding their horizons rather than clinging precariously to life)

Key values owned by older consumers

Autonomy: Mature consumers want to lead active lives and be
self-sufficient
Connectedness: Mature consumers value the bonds they have
with friends and family
Altruism: Mature consumers want to give something back to the
world
Consumer Identity Renaissance: refers to the redefinition process
people undergo when they retire
1. Revived (Revitalization of previous identities)
2. Emergent (Pursuit of entirely new life projects)
Regional Segmentation: refers to segmenting the market according to
geographic location (All Canadians share the same national identity but
each regional has a different climate, culture, ethnicity, age population,
lifestyles, preferences, styles etc.). The four regions of Canada are
1. Atlantic Canada (The East Coast)
2. Quebec
3. Ontario
4. West (Maritimes, Prairies etc.)
Ethnic Subcultures: A self-perpetuating group of consumers who share
common cultural or genetic ties recognized by both its members and
others as a distinct category (Ethnic identity is often a significant

component of a consumers self-concept) Subculture memberships do

shape many attitudes, values, activities and preferences
Dimensions of ethnicity that are important to marketers include
heritage, life experiences, religion and beliefs
High-Context Cultures: Group members tend to be tightly knit,
and they infer meanings that go beyond the spoken word
(symbols and gestures, rather than words, carry much of the
weight of the message China, Brazil etc.)
Low-Context Cultures: Are very literal and say what they mean
(USA/Canada/Australia etc.)
Marketers are targeting ethnic consumers in two ways
1. By fostering inclusiveness through putting more individuals from
visible minorities into mainstream advertising
2. By speaking to specific ethnic groups in their mother tongue
Ethnic Groups in Canada
English Canadians
English is the biggest ethnicity in Canada
Put high value on Intellectual and Cultural activities
English-Canadian market appears to need messages that link
their actions with an awareness of environmental so that their
environmentally friendly behaviors are likely to be sustain or
explained
French Canadians
They form the second largest ethnic market in Canada
They enjoy life/excitement and they value security and warm
relationships with others
Require more emphasis on moving positive attitudes and
behavior toward environmentally friendly actions
Chinese Canadians
The fastest growing Canadian minority, with Mandarin being the
second most widely spoken language in Canada
Asian-Canadians are hard-working and have the highest incomes
of visible minorities
Aboriginal Canadians
About 50% of the population is under 25 years old and they
dominate the Northwest Territories and Nunavut
Theyre responsive to advertisements that connect with their
values
South Asian Canadians
This includes India, Pakistan, Sri Lanka, Punjab, Bangladesh etc.
and makes up more than Chinese Canadians

Generally arrive in Canada with high income education levels and

are likely to speak English

Advertising methods that seem effective among recent immigrants are

based on messages of comfort, familiarity and appropriateness of
language (in response to feelings of fear and insecurity on coping to a
new country)
Second generation Canadians highly value a good warranty and
the ability to return a product (all about trust)

CHAPTER 14: Cultural Influences on Consumer Behavior

Culture: A societies personality, an accumulation of shared meanings,
rituals, norms, and traditions among the members of an organization
or a society (It includes both abstract ideas, such as values and ethics,
as well as the material objects and services that are produced or value
by a group of people, such as automobiles, clothing, food, art and
sports) The lens through which people view products, and determines
the different priorities he or she attaches to different activities and
products (the more products resonate with the priorities of a culture,
the better chance they have at being accepted)
A cultural System consists of three functional areas (culture is
continuously evolving and synthesizing old ideas with new ideas)
1. Ecology: A way in which a system is adapted to its habitat, an
area shaped by the technology used to obtain and distribute
resources (In Japan, great value products are designed for

efficient use of space because of the cramped conditions in that

island nation)
2. Social Structure: A way in which orderly social life is maintained,
including the domestic and political groups dominant within the
culture (the nuclear family versus the extended family)
3. Ideology: Refers to the mental characteristics of a people and the
way in which they relate to their environment and social groups.
This area revolves around the belief that members of a society
possess a common worldview; that is, they share certain ideas
about principles of order and fairness (They also share an ethos,
or a set of moral and aesthetic principles)
Values: Refers to share beliefs shaped by individual, social and cultural
forces. The most common universal cultural values are family, health,
happiness and wisdom, but what sets cultures a part is what emphasis
they put on each (meaning that whats appealing to one culture may
not be appealing to another)
Core Values: This is our reason for being, and its what guides us
to be the way we are (American culture its usually freedom,
youthfulness, achievement and activity while in Japan its safety
and security)
Hofstedes Study: Discovered the five dimensions in which work-related
values differed across cultures. Cultures that are more individualistic
tend to downplay power differences, while those that are more
collectivistic tend to accentuate power differences.
1. Power Distance: The extent to which society members accept an
unequal distribution of power. In large power distant cultures,
Inequality is acceptable, superiors are inaccessible and power
differences are highlighted. (Small is opposite)
2. Uncertainty Avoidance: The extent to which people are
uncomfortable with uncertain and ambiguous situations. Strong
uncertainty avoidance cultures stress rules and regulations, hard
work, conformity and security. (Weak is the opposite)
3. Masculinity/Femininity: More masculine cultures differentiate
gender roles, support the dominance of men and stress
economic performance. More feminine cultures accept fluid
gender roles; stress sexual equality and stress quality of life.
(There are two aspects to this dimension how assertive people
are and how much they value gender equality)
4. Individualism/Collectivism: Individualistic societies stress
independence, individual initiative and privacy while collective
cultures favor interdependence and loyalty to family or clans.
(There are two aspects to this dimension how much the
collective distribution of resources is stressed and how much
ones group or organization elicits loyalty)

o Collectivist Culture: People subordinate their personal goals

to those of a stable in-group
o Individualist Culture: Attach more importance to personal
goals, and people are more likely to change memberships
when the demands of the group become too costly
5. Long-term/Short-term Orientation: Cultures with a long-term
orientation tend to stress persistence, perseverance, thrift and
close attention to status differences. Cultures with short-term
orientation stress personal steadiness and stability, face-saving
and social niceties (things to do in a social setting).
Norms: (Taboo) Rules dictating what is right or wrong, acceptable or
unacceptable
o Enacted Norms: Norms that have been explicitly decided upon
(Green light means go and Red light means stop)
o Crescive Norms: Norms embedded in culture, and discovered
only through interaction with other members of that culture
(operate to completely define a culturally appropriate behavior).
They include
A Custom is a norm handed down from the past that
controls basic behaviors such as division of labor in a
household or the practice of particular ceremonies
A more is a custom norm with a strong moral overtone
(forbidden behavior such as incest or cannibalism which
meets strong punishment from members of society)
Conventions are norms regarding the conduct of everyday
life (the correct way to furnish ones house, wear ones
clothes, conduct ourselves in public etc.)
A Food Culture: A pattern of food and beverage consumption that
reflects the values of a social group (this pattern changes due to
tastes, traditions, health and culture)
Myth: Is a story containing symbolic elements that express the shared
emotions and ideals of a culture (the story often features some kind of
conflict between two opposing forces, and its outcome serves as a
moral guide for people)
Myths serve as the following four interrelated functions in a culture
1. Metaphysical: They help to explain the origins of existence
2. Cosmological: They emphasize that all components of the
universe are part of a single picture
3. Sociological: They maintain order by authorizing a social code to
be followed by members of a culture
4. Psychological: They provide models for personal conduct

Binary Opposition: Two opposing ends of some dimension are

represented (good vs. evil or nature vs. technology) Myths can be
analyzed by examining their underlying structures)
Monomyth: A myth that is common to many cultures (A typical
myth is a superhero that saves the day from evil and then
returns to his normal life)
Two sets of binary oppositions that expressed in personal rituals
are private-public and work-leisure
Ritual: A set of symbolic behaviors that occur in a fixed sequence and
that tend to be repeated periodically
Ritual Artifacts: Items used in the performance of rituals to
consumers
Gift-Giving Ritual: consumers procure the perfect object (artifact),
meticulously remove the price tag (symbolically changing the item
from a commodity to a unique good), carefully wrap it, and deliver it to
the recipient (in addition, making gifts or cards further personalizes the
gift-exchange process) can either be an economic exchange (where
something of value is given to someone else and then theyre force to
reciprocate) or a symbolic exchange (where the giver is motivated by
unselfish motives of love and admiration)
The gift giving ritual has three distinct stages
1. Gestation: The giver is motivated by an event to procure a gift
(either a structural event (a normal holiday) or an emergent
event (a personal, idiosyncratic reason)
2. Presentation: The recipient responds to the gift and the donor
evaluates his response (the actual exchange)
3. Reformulation: The bonds between the giver and the receiver are
adjusted (looser or tighter) to reflect the new relationship that
emerges after the exchange is complete
o Reciprocity Norm: Obliges people to return the gesture of a
gift with one of equal value
Three rules to re-gifting
1. Never gift something that has been used
2. Remove all traces of the previous wrapping
3. Never return a gift to the person who gave it to you
Antifestival: In which symbols associated with other holidays are
distorted (Halloween is a prime example because we celebrate tricks,
evil and death)

Rites of Passage: Special times marked by a change in social status

(puberty, death or when getting divorced etc.) It consists of three
phases
1. Separation: Occurs when the individual is detached from his or
her original group or status (the university student leaves home
for the first time)
2. Liminality: The person is literally between statuses (a new arrival
on campus is trying to figure out whats happening on orientation
week)
3. Aggregation: Takes place when the person re-enters society
when the right of passage is complete (the student returns home
for the summer as a university veteran)
Sacred Consumption: Involves objects and events that are set apart
from normal activities and are treated with some degree of respect or
awe (most religious items and events are sacred)
Sacred Places: Places of high meaning and involvement (Meca,
Malls)
Sacred People: People themselves can be sacred when they are
idolized and set apart from the masses (People go crazy for items
touched or owned by sacred people like celebrities; Contagion
Effect is a belief that the individuals immaterial qualities or
essence can be transformed to the object through physical
contact.
Sacred Events: Sporting events, holidays, tourism etc.
Desacralization: Occurs when a sacred item or symbol is
removed from its special place or is duplicated in mass
quantities, becoming profane as a result
Sacralization: Occurs when ordinary objects, events and people
take on sacred meaning to a culture or to specific groups within a
culture
o Objectification occurs when sacred qualities are attributed
to mundane items
Profane Consumption: Involves consumer objects and events that are
ordinary, everyday objects and events that do not share the
specialness: of sacred ones
Symbol: Refers to an object that represents something else (seeing an
infant wear the color pink symbolizes that its a girl)
Etic Perspective: Focuses on commonalities across cultures (an etic
approach to culture is objective and analytical; it reflects impressions
of a cultures as viewed by outsiders)

Emic Perspective: Focuses on variations within a culture (This

perspective believes that every culture is unique, with its own value
system, conventions, and regulations, a long with a national character
and a distinctive set of behaviors and personality characteristics)
Cross-Cultural Analysis: This involves examining the degree to which
consumers of two or more cultures are different or similar in terms of
psychological, social and cultural factors (Whether to use standardized
or a localized strategy based on values, norms, myths, rituals, symbols
and language)
There are four major segments of consumers who evaluate global
brands the same way
1. Global Citizens: Use the global success of a company as a signal
of quality and innovations (also worries if whether the company
behave responsibly on issues such as consumer health, the
environment and workout rights)
2. Global Dreamers: Consumers who see global brands as quality
products and readily buy into the myths they author
3. Antiglobals: Consumers are skeptical that transnational
companies deliver higher-quality goods (they avoid doing
business with transnational firms because they dont trust them
prefer local store)
4. Global Agnostics: Consumers dont base their decisions on a
brands global attributes, rather they judge using the same
criteria against local brands
Globalized Consumption Ethic: Transnational companies that have
revenues more than most countries GNP
Creolization: Occurs when foreign influences intergrade with local
meanings (Mexicans spreading peanut butter and jelly on tortillas)