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Summary - book "Consumer Behavior", Lectures and other


summaries

Marketing 2: Consumentengedrag (Tilburg University)

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Marketing 2 Consumer Behavior


PART I INTRODUCTION TO CONSUMER BEHAVIOR

1) Understanding Consumer Behavior

Defining consumer behavior


Consumer behavior reflects the totality of consumers decisions with respect to the
acquisition, consumption and disposition of goods, services, activities, experiences, people,
and ideas by (human) decision-making units.

involves goods, services, activities, experiences, people, ideas:


We use the term offering to encompass these entities.
involves more than buying:
acquisition the process by which a consumer comes to own an offering
usage the process by which a consumer comes to uses an offering
disposition the process by which a consumer comes to discards an offering
is a dynamic process:
Sequence of acquisition, consumption & disposition can occur over time in dynamic order
can involve many people:
Consumer behavior does not necessarily reflect the action of a single individual
involves many decisions:
Consumer behavior involves understanding whether, why, when, where, how, how much,
how often, and for how long consumers will buy, use, or dispose an offering
involves feeling and coping:
Positive and negative emotions can affect how consumers think, the choices they make,
and how they feel

What affects consumer behavior


Factors that affect acquisition, usage, and disposition decisions are classified into 4 domains:

(i) The Psychological Core (internal process)


(ii) The Process of Making Decisions
(iii) The Consumers Culture (external process)
(iv) Consumer Behavior Outcomes and Issues

Benefits
Marketers study consumer behavior to gain insights that will lead to more effective
marketing strategies and tactics. Consumers and society can both benefit as marketers learn
to make products more user-friendly and to show concern for the environment. Finally,
studying consumer behavior helps marketers understand how to segment markets and how
to position an offering, and which marketing-mix tactics will be most effective.

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PART II THE PSYCHOLOGICAL CORE

2) Motivation, Ability, and Opportunity

Consumer motivation and its effects


Motivation: what moves people inner state of arousal that provides energy needed to
achieve a goal.

High effort behavior: outcome of motivation is behavior that takes considerable effort.
Moreover, motivation creates willingness to expend time en energy engaging in these
behaviors.

High effort information processing and decision making: when consumers are highly
motivated, they are more likely to pay attention to it, think about it, comprehend
information and evaluate it.

Motivated reasoning: processing information in a way that allows consumers to reach the
conclusion they want to reach. Informatie verdraaien zodat het motivatie ondersteunt.

Felt involvement: self-reported arousal or interest in an offering, activity or decision.


the psychological experience of the motivated consumer. Types of involvement:
Enduring: interest over a long period of time. (auto liefhebbers)
Situational: often caused by situational circumstances. (nieuwe auto gekocht)
Cognitive: interest in learning information related to the goal. (sport)
Affective: expend emotional energy or having feelings about an offering. (muziek)

Consumers can be involved with a brand, with ads and with a medium.

Response involvement: consumers involved in certain decisions and behaviors, like


deciding between two brands. It is important to specify the object of involvement
consumenten die gehecht zijn aan een merk, zullen minder involved zijn bij het kiezen
tussen merken.

What affects motivation


Motivation is affected when consumers regard something as:
Personal relevance: if something has a direct bearing on our life fuels motivation
Consistent with values, needs, goals, emotions and self-control processes: our
mental view of who we are motivates behavior
Risky: the extent to which a consumer is uncertain about the consequences
Moderately inconsistent with their prior attitudes: eliminate inconsistency

Values: the extent to which it matches your beliefs about what is right, important, or good

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Needs: internal state of tension caused by disequilibrium from an ideal or desired state.
According to Maslows Pyramid, lower-level needs must be satisfied before higher-level
needs. However, Maslow ignores the intensity of needs and is not consistent across cultures.

Another way to categorize needs is as followed:

Social Non-Social
Modeling Functional: need that motivates the search Safety
Support for offerings that solve consumption- Order
related problems Physical well-being
Status Symbolic: need that relates to how we Self-control
Belonging perceive ourselves and how were Independence
Achievement perceived by others
Sex Hedonic: need that relates to sensory Sensory stimulation
Play pleasure Cognitive stimulation

Needs have several characteristics:


Needs are dynamic
Needs exist in a hierarchy
Needs can be internally or externally aroused
Needs can conflict
approach-avoidance conflict (fulfills one need, fails another)
approach-approach conflict (each satisfy a different need)
avoidance-avoidance conflict (neither satisfy different needs)

Goals: outcome that we would like to achieve more specific and concrete than needs.
Consumer behavior is a continuous cycle of setting goals, pursuing them, determining
success and failure of goal pursuit, and adapting the goals. The more we visualize our goals,
the more motivated and committed we are to putting in effort towards the goals. When
people are close to attaining one of their goals, people tend to reduce effort on pursuing
that goal and redirect it to other goals. Type of goals:
Concrete: specific to a given behavior, determined by the situation (op tijd komen)
Abstract: over a longer period of time (een goede student zijn)

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Promotion-focused: to achieve positive outcomes


Prevention-focused: to avoid negative outcomes

The appraisal theory states that our emotions are determined by how we think about a
situation or outcome. Positive emotions when an outcome is consistent with our goals and
vice versa.

Self-control: to regulate feelings, thoughts and behaviors in line with long-term goals.

Ego depletion: the idea that people get tired of making decisions because it is a process that
requires energy leads to reducing decision quality.

Consumers have psychological conflict between desire (short term)/hedonic force (you want
it now, even if you regret later) & will-power (long term)/utilitarian force (not doing it now)

Embodiment: connection between mind and body that influences consumer self-control and
behavior

Perceived risk tends to be higher when:


Little information is available
Offering is new
Offering has a high price
Offering is technologically complex
Brands differ fairly substantially in quality
Consumer has little confidence or experience in evaluating
Opinions of others are important and the consumer is likely to be judged

Types of perceived risk:


Performance: offering might perform less than expected
Financial: when an acquisition might create financial harm (is expensive)
Physical (safety): potential harm to ones safety
Social: potential harm to ones social standing
Psychological: to what extent a product fits the way one perceives themselves
Time: uncertainty about the time that must be invested to buy, use or dispose

Consumer ability
Ability: the extent to which consumers have the resources needed to make an outcome
happen. Resources that affect abilities:
Financial: lack of money might constrain consumers
Cognitive: experts are better able to think deeply about information than novices
Emotional: empathy and sympathy can affect decisions
Physical: can affect where when and how we take actions and make decisions
Social and Cultural: who consumers know and cultural knowledge and experience
Education and Age: better-educated will lead to more cognitive resources

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Consumer opportunity
Time: consumers whom are under time pressure to make a decision will engage in limited
information processing. They also put more weight on negative information and will more
quickly reject a brand.

Distraction: any aspect of a situation that diverts consumers attention


influences thoughts on choice, but does not affect emotions on choice

Complexity: technical and quantitative information is considered difficult to handle

Amount: information might also be complex when it comes in great volume

Repetition: when repeatedly exposed to information, its easier to process

Control: consumers remember more when they can control the flow of information by
determining what information is presented, for how long, and in what order

3) From Exposure to Comprehension

Exposure and consumer behavior


Exposure: the process by which the consumer comes in physical contact with a stimulus.
Exposure is influenced by:
Position of an ad within a medium
Product distribution
Shelf placement

Selective exposure:
Zipping: fast-forwarding through commercials on a program recorded earlier
Zapping: avoiding ads by switching to other channels

Marketing stimuli: information about offerings communicated by the marketer or


nonmarketing sources

Attention and consumer behavior


Attention: how much mental activity is devoted to a stimulus. Characteristics of attention:
It is limited you cannot proceed everything at the same time
It is selective consumers decide what to focus on
It can be divided allocating some attention to one task and some to another

Focal and nonfocal attention: when we focus on a stimulus (focal) while simultaneously
being exposed to other stimuli (nonfocal). Characteristics:
Preattentive processing: most of our attentional resources are devoted to one
thing, leaving limited resources for something else

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Hemispheric lateralization: influential factors because of how the two halves of


the brand process information. Right: processing music and visuals. Left:
processing units that can be combined

Marketers often take steps to attract consumers attention by making the stimulus:
Personally relevant
Pleasant: music, humor, attractive model
Surprising: novelty, unexpectedness, puzzle
Easy to process: prominence (to stand out), concreteness (being imagined)

Habituation: when a stimulus becomes familiar, it can lose its attention-gaining ability.
alter this stimulus periodically to encounter this

Perception and consumer behavior


Perception: the process of determining the properties of stimuli using vision, hearing, taste,
smell, and touch.
Vision
size and shape (when dimensions change we are more sensitive)
lettering (size and style)
image location on package (images near top left are considered lighter)
effects of color on moods (warm: excitement, cool: relaxing)
color and liking (colors have a great effect)
Hearing
sonic identity: using certain sounds/music to identify a brand
sound symbolism: form evaluations from hearing a brands sounds and word
Taste
what tastes good to one person may not taste good to another
tasting a product in-store influences consumer purchasing the most
Smell
effects of smell on physiological response and mood
smell and product trial: smell can entice consumers to try or buy a food product
smell and liking: retailers recognize that smell can attract consumers
smell and buying: pleasant smell can have positive effects on shopping behavior
Touch
consumers who have a high need for touch tend to like products that provide
this opportunity
touching a product can increase a consumers perceived ownership of the item
a brief touch by a salesperson make consumers more likely to have positive
feelings and more likely to evaluate both store and salesperson positively

When do we perceive stimuli?


Absolute thresholds: minimal level of stimulus intensity needed to detect it

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Differential thresholds (just noticeable difference): intensity needed between to


stimuli before they are perceived to be different
Subliminal perception: activation of sensory receptors by stimuli presented below
the perceptual threshold
strong effect: when it could influence people against their will
weak effect: when it could influence people in ways consistent with their goals

Webers law: the stronger the initial stimulus, the greater the additional intensity needed
for the second stimulus to be perceived as different.
s/S=K
s = de kleinste verandering van een stimulus om gedetecteerd te worden
S = de waarde van de initile stimulus
K = constante proportie

Perceptual organization: the process by which stimuli are organized into meaningful units
Figure and ground: people interpret stimuli in the context of a background
Closure: need to organize perceptions so they form a meaningful whole
Grouping: group stimuli to form unified picture of impression easier to process
Bias for the whole: more value in the whole than in parts that are equivalent
(you would rather spend 1x10 + 2x5 than 1x20)

Comprehension and consumer behavior


Comprehension: the process of extracting high-order meaning from what weve perceived in
the context of what we already know

Source identification: the process of determining what the perceived stimulus actually is

Message comprehension: making sense out of a message


Objective comprehension: whether the meaning that consumers take from a
message is consistent with what the message actually stated
Subjective comprehension: the different or additional meaning consumers attach to
the message, whether or not these meanings were intended
Miscomprehension: when consumers inaccurately construe the meaning contained
in a message. Consumers may not comprehend a message when:
low motivation
limited opportunity to process it
message is complex or only shown a few seconds
message is viewed only once or twice
effects of culture

Perceptual fluency: the ease with which information is processed


Consumer inferences: conclusions consumers draw or interpretations that they form based on
the message. Congruent (if X has A, it also has B) or incongruent (if X has A, it will not have B)

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Brand names and symbols: can create subjective inferences


Product features and packaging: large multi-pack probably is a good buy
Price: can make inferences about quality
Retail atmospherics, display and distribution: a brands positioning could be
undermined by a stores inappropriate retail display decisions

4) Memory and Knowledge

What is memory
Consumer memory: the persistence of learning over time, via the storage and retrieval of
information, which can occur consciously or unconsciously

Retrieval: the process of remembering or accessing what was previously stored in memory

Sensory memory: input from the five senses stores temporarily in memory
Iconic: what you see
Echoic: what you hear
Olfactory: memory at play

Working memory: portion of the memory where we encode or interpret incoming


information and keep it available for further processing conscious information processing
Discursive processing: to remember something with words
Imagery processing: to remember something visually

Long-term memory: part of memory where information is permanently stored for later use.
Episodic memory: knowledge we have about ourselves and our experiences
Semantic memory: general knowledge about an entity

Explicit memory: when consumers are consciously aware that they remember something
Recognition: remembering something after being exposed to it
Recall: remembering something without being exposed to it

Implicit memory: memory without any conscious attempt at remembering something

Enhancing memory: help consumers remember their brands, communications or offerings


Chunking: providing larger bits of information that chunk together smaller bits
Rehearsal: when motivation is low, use jingles and slogans to instigate rehearsal
Recirculation: creating different ads that repeat the same basic message
Elaboration: novel stimuli can attract attention and include elaboration

Knowledge content, structure and flexibility


Knowledge content: information we have already learned and stored in memory

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Knowledge structure: how we organize knowledge in memory

Knowledge flexibility: the content and structure are flexible and adaptable to the requirements

Schema: set of associations linked to a concept


form of semantic knowledge

Scripts: type of schema that represents knowledge of actions involved in performing activity
form of episodic memory

Spreading of activation: the process by which retrieving a concept or association spreads to


the retrieval of a related concept or association

Priming: the increased sensitivity to certain concepts and associations due to prior
experience based on implicit memory

Three dimensions that are crucial to building strong brands:


Favorability
Uniqueness
Salience (how easily they come to mind)

Brand image: specific type of schema that captures what brand stands for and how
favorably it is viewed

Brand personality: the way that the consumer would describe the brand if it were a person

Taxonomic category: how consumers classify a group of objects in memory in an orderly,


often hierarchical way, based on their similarity to one another.
(things in the same taxonomic category share similar features)
Graded structure: category members vary in how well they are perceived to
prototype: the best example of a cognitive category
prototypicality: extent to which members are considered to be respresentive
Hierarchical structure
superordinate level: share a few associations (beverages)
basic level: finer discriminations (coffee, tea)
subordinate level: finest level of discrimination (diet, nondiet)
Correlation: when a network contains attributes that are linked in their mind

Goal-derived category: things viewed as belonging in the same category because they serve
the same goals may belong to a different taxonomic category

Construal level theory: theory describing the different levels of abstractness in the
associations that a consumer has about concepts (people, products, brands, and activities)
and how the consumers psychological distance from these concepts influences his or her
behavior.

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Memory and retrieval


Retrieval failures:
Decay: weakening of memory strength over time (because it has not been used)
Interference: weakening of memory strength because of competing memories
Serial position effects: things that encounter first or last in a sequence are often
those most easily remembered primacy and recency effect

Retrieval errors: (memory is not always accurate or complete)


Selective: you might only remember the good things
Confusion: you accurately remember the story but confuse the source
Distortion: when you remember experiences that did not happen

Enhancing retrieval:
Characteristics of the stimulus that affect retrieval:
salience: salient objects attract attention and thus create stronger memories
prototypicality: have been frequently rehearsed and are linked in memory
redundant cues: memory is enhanced when information items to be learned
seem to go together naturally (peanut butter/jelly; sponsor/event)
medium in which the stimulus is processed: certain media are more effective
Retrieval affected by what the stimulus is linked to:
retrieval cue: a stimulus that facilitates the activation of memory
internal (in mind) or external (memo, ads)
Retrieval affected by how a stimulus is processed in working memory: messages
processed through imagery are better remembered than processed discursively
dual coding: mental images are processed as pictures and words
Consumer characteristics affecting retrieval: mood and expertise can affect
retrieval

5) Attitudes based on High Effort

What are attitudes


Attitude: overall evaluation that expresses how much we like or dislike an object, issue,
person, or action. Attitudes are important because:
Cognitive function: how attitudes influence our thoughts
Affective function: how attitudes influence our feelings
Connative function: how attitudes influence our behavior

Characteristics of attitudes:
Favorability: the degree to which we like or dislike something
Attitude accessibility: how easily an attitude can be remembered
Attitude confidence: how strongly we hold an attitude

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Persistence: how long our attitudes last


Resistance: how difficult it is to change an attitude
Ambivalence: when our evaluations regarding a brand are mixed

Central-route processing: the attitude formation and change process when effort is high

Peripheral-route processing: the attitude formation and change process when effort is low

The cognitive foundations of attitudes


Various theories on how thoughts are related to attitudes. Five models:
Direct or imagined experience: experiences help form positive/negative attitudes
Reasoning by analogy or category: form attitudes by considering how similar a
product is to other products
Values-driven attitudes: individual values shape attitudes (like recycling)
Social identity-based attitude generation: the way you view your social identity
Analytical processes of attitude formation: cognitive responses

Cognitive responses to communication:


Counterarguments: thought that disagrees with the message
Support arguments: thought that agrees with the message
Source derogation: thought that discounts or attacks the source of the message
counterarguments and source derogation lead to less favorable initial attitude
or resistance to change

Belief discrepancy: when a message is different from what consumers believe

Expectancy-value models: widely used models that explain how attitudes form and change
Theory of Reasoned Action (TORA): a model that provides an explanation of how,
when, and why attitudes predict behavior

Theory of Planned Behavior (TOPB): an extension of TORA, that predicts


behaviors over which consumers perceive they have control

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Normative influences: how other people influence our behavior through social pressure

How cognitively based attitudes are influenced


Both the communication source and the message influence how favorable a consumers
attitude will be.
Communication source:
source credibility: extent to which the source is trustworthy or expert
credible sources will have less influence if consumers hold their existing attitude
with confidence and when they have a higher degree of ability to generate their
own conclusions. Consumers are less likely to believe a source is credible when
the source endorses multiple products
sleeper effect: consumers forget the source faster than the message itself
company reputation: people are more likely to believe messages from
companies with a good reputation (fair, equality, etc.)
Support message:
argument quality: whether a message contains strong arguments
one- versus two-sided messages: a one-sided message only contains positive
information, while a two-sided message contains both positive and negative
information, which makes a message more credible
comparative messages: messages make direct comparisons with competitors
indirect: compared with unnamed competitors (brand X)
direct: explicitly name and attack a competitor on the basis of an attribute
negatively framed: brand Y has more problems than X prevention-focused
positively framed: brand X is better than Y promotion-focused

The affective (emotional) foundations of attitude


Engagement: extent to which consumers are emotionally connected to a product or ad
(higher level means strong feelings that can influence the attitude)

Regulatory fit: attitude can also be formed through an emotional route to persuasion
Affective response: when consumers generate feelings and images in response to a message
(opposite of cognitive response, probably also stronger than cognitive response)

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Emotional appeal: message designed to elicit an emotional response


Ego-focused messages: group-oriented cultures (pride, happiness)
Empathic messages: individualistic cultures

For feelings to have a direct impact on their attitudes, consumers must cognitively link them
to the offering.

How affectively based attitudes are influenced


Source:
attractiveness: if a source is attractive, it evokes favorable attitudes
match-up hypothesis: idea that source must be appropriate for the product
Message:
emotional appeals/contagion: negative emotions negative behavior
fear appeals: message that stresses negative consequences
Terror Management Theory (TMT): how we cope with the threat of death

Attitude toward the ad


Attitude toward the ad (Aad): whether the consumer likes or dislikes an ad.
if you like the ad, you will probably like the brand

Factors that lead to a positive attitude towards the ad:


Utilitarian (functional) dimension: when an ad provides information
Hedonic dimension: when an ad creates positive or negative feelings
Interesting: when an ad arouses curiosity and attracts attention

When do attitudes predict behavior


The TORA model comes closest to providing predictions concerning behavior by predicting
which factors affect a consumers intentions. But, intentions do not always predict what we
will actually do.

Factors that affect whether someones attitude will influence his/her behavior:
Level of involvement/elaboration
Knowledge and experience
Analysis of reasons
Accessibility of attitudes
Specificity of attitudes
Attitude confidence
Attitude-behavior relationship over time
Emotional attatchment
Situational factors
Normative factors
Personality variables

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low self-monitors: people who are guided by their own internal dispositions
more consistent attitude-behavior relationships
high self-monitors: people who are guided by view and behaviors of others
adapt to every unique situation

6) Attitudes based on Low Effort

High-effort versus low-effort routes to persuasion


Low-effort situation: when consumers are unwilling/unable to exert a lot of effort or devote
emotional resources to processing the central idea behind a communication
passive recipients: attitude may not even be stored in memory

Peripheral route to persuasion: aspects other than key message arguments that are used to
influence attitudes like visuals

Peripheral cues: easily processed aspects of a message like music, picture, or humor

Unconscious influences on attitudes when consumer effort is low


Much processing in low-effort situations occur below conscious awareness.

Thin-slice judgments: evaluations made after very brief observation

Body feedback: consumers must know the meaning of the body feedback they experience in
order to explain their behavior; if they dont recognize it, the feedback cue will have no
impact.

Cognitive bases of attitudes when consumer effort is low


Changing beliefs is easier for a marketer when processing effort is low

Simple inferences: beliefs based on peripheral cues. (if ad is elegant, so is brand)


may also come from superficial analysis of brands name, country, price or color
can also be based on attributions or explanations for an endorsement

Heuristics: simple rules of thumb that are used to make judgments; require little thought

Frequency heuristics: belief based simply on the number of supporting arguments or


amount of repetition. it must be good because there are 10 reasons why I must like it

Truth effect: when consumers believe a statement simply because it has been repeated a
number of times using familiarity to judge its accuracy

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How cognitive attitudes are influenced:


Communication source: credible sources can serve as peripheral cues for making
a simplified judgment. Source expertise is then used as a simple cue in judging the
credibility. In contrast to high effort situations, little cognitive effort is required
Message: can influence attitude in a number of ways when effort is low
category- and schema-consistent information: immediate associations
many message arguments: form a belief based on the supporting arguments
simple messages: effective because little information has to be processed
involving messages: self-referencing increases purchase behavior
mystery ad: the brand is not identified until the end of the message
Message context and repetition: helps consumer acquire basic knowledge
incidental learning: occurs from repetition rather than conscious processing

Affective bases of attitudes when consumer effort is low


Attitudes can also be based on consumers affective or emotional reactions to easily
processed peripheral cues. May due to:
The mere exposure effect: when familiarity leads to a consumers liking an object
wearout: becoming bored with a stimulus
Classical and evaluative conditioning: producing a response to a stimulus by
repeatedly pairing it with another stimulus that automatically produces this
response (Pavlov effect)
Pavlov theory:
unconditioned stimulus (UCS) food
unconditioned reponse (UCR) salivation response
conditioned stimulus (CS) no automatic involuntary response
conditioned response (CR) response evoked in the presence of the CS
evaluative conditioning: an affective response by repeatedly pairing a neutral
conditioned stimulus with an emotionally-charged unconditioned stimulus
Attitude toward the ad (Aad): when consumers like an ad so much that they
transfer their positive feelings from the ad to the brand
dual-mediation hypothesis: how attitudes toward the ad influence brand
attitudes. Aad can affect attitudes toward the brand (Ab) either through
believability or liking. These responses in turn, may positively affect consumers
intentions to purchase (lb)

Mood: mood can bias attitudes in a mood-congruent direction.


Three categories of affective responses:

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SEVA (surgency, elation, vigour and activation): consumer in a happy mood


deactivation feelings: soothing, relaxing, quiet, pleasant responses
social affection: warmth, tenderness, caring

How affective attitudes are influenced


When consumers apply little processing effort and form attitudes based on feelings, the
same three factors that influence cognitive reasoning also influence affective attitudes:
Communication source
attractive sources
likeable sources
celebrity sources
Message
pleasant pictures
music
effective conditioned stimuli
developing positive attitudes
generates positive feelings
stimulates emotional memories of experiences or situations
has a positive effect on purchase intentions
humor
more appropriate for low-involvement offering
higher recall when humor is strong and relates to the message
comedic violence leads to an ad going viral rather than a change in Ab
sex
emotional content
concrete: short-term behavioral intentions
abstract: long-term behavioral intentions
transformational advertising: increase emotional involvement with product
dramas: ads with characters, a plot and a story influence positive attitudes
Message context: context in which an ad appears; can also distract viewers

PART III THE PROCESS OF MAKING DECISIONS

7) Problem Recognition and Information Search

Problem recognition
Problem recognition: the perceived difference between an actual and an ideal state
ideal state: the way we want things to be
actual state: the way things actually are

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Internal search
Internal search: the process of recalling stored information from memory

Much of the research on the role of internal search in consumer judgment and decision
making has focused on what is recalled. There are four major types of information recalled:
Recall of brands
consideration set: subset of top-of-mind brands evaluated when making choices
factors that increase possibility of recalling a brand in their consideration set:
prototypicality
brand familiarity
goals and usage situations
brand preference
retrieval cues
Recall of attributes
variables that influence the recall of attributes:
accessibility or availability
diagnosticity: that which helps us discriminate among objects, like price
salience salient attribute is attribute that is more important
attribute determinance: attribute that is both salient and diagnostic
vividness concrete information
goals
Recall of evaluations
online processing: actively evaluating a brand as the consumer views an ad for it
Recall of experiences
associate products with positive events like the Macys Thanksgiving Day parade

Processing biases that alter the nature of internal search:


Confirmation bias: tendency to recall information that reinforces or confirms our
overall beliefs rather than contradicting them, thereby making our judgment or
decision more positive than it should be
Inhibition: the recall of one attribute inhibiting the recall of another
Mood: most likely to recall information and experiences that match our mood

External search
External search: the process of collecting information from outside sources (magazines, ads)

Pre-purchase search: a search for information that aids a specific acquisition decision is
involvement in purchase, to make better purchase decisions.

Ongoing search: a search that occurs regularly, regardless of whether the consumer is
making a choice is involvement with product, to build bank of information for future use.

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Researchers have examined five key aspects of the external search process:
Source of information
retailer search
media and social media search
interpersonal search
independent search
experiential search
Extent of external search
motivation to process information:
involvement and perceived risk
perceived costs and benefits
consideration set
relative brand uncertainty
attitudes toward the search
level of discrepancy of new information
ability to process information:
consumer knowledge
cognitive abilities
demographics
opportunity to process information:
amount of information available
information format
time available
number of items being chosen
Content of external search
brand name information
price information
information about other attributes
Search typologies
Process or order of the search
orientation (overview) evaluation (key attributes) verification (confirm)
search stages: first simple criteria, later detailed decisions
searching by brand: compare all information of one brand before moving on
searching by attitude: compare one attribute at the time, like price

8) Judgment and Decision Making based on High Effort

High-effort judgment processes


Judgment: evaluation of an object or estimate of likelihood of an outcome or event
estimation of likelihood: judging how likely it is that something will occur
judging of goodness/badness: evaluating the desirability of something

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Decision making: making a selection among options of courses of action

Anchoring and adjustment process: starting with an initial evaluation and adjusting it with
additional information

Imagery: imagining an event in order to make a judgment


Visualizing an event can make it seem more likely to occur
Visualizing may also lead consumers to overestimate how satisfied they will be
Visualizing may also cause consumers to focus on vivid attributes

Mental accounting: categorizing spending and saving decisions into accounts mentally
designated for specific consumption transactions, goals, or situations
vacation account, emergency account, credit card account

Emotional accounting: the intensity of positive or negative feelings associated with each
mental account for saving or spending
money received under negative circumstances will often be spent on utilitarian purchase
counters for the negative feelings

Biases that affect consumers judgment processes:


Confirmation bias
Self-positivity bias
Negativity bias
Mood and bias
Prior brand evaluations
Prior experience
Difficulty of mental calculations

High-effort decisions and high-effort decision-making processes


Inept set: options that are unacceptable when making a decision

Inert set: options toward which consumers are indifferent

Attraction effect: when the addition of an inferior brand to a consideration set increases the
attractiveness of the dominant brand

Before consumers can choose a specific offering from among a set of brands in a
consideration set, they need to determine which criteria are relevant to the decision and
how important each criterion is to their decision:
Goals: clearly affect criteria for example: buy a car that impresses friends
Time: short-term: low-level construals, long-term: consider hedonic aspects
Framing: decision framing: initial reference point or anchor in decision process

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Thought-based decisions
Cognitive decision-making model: the process by which consumers combine items of
information about attributes to reach a decision. Types of cognitive choice models:

Compensatory Noncompensatory
Processing by Brand Multi-attribute model Conjunctive model
Disconjuntive model
Processing by Attribute Additive difference Lexicographic model
model Elimination-by-
aspects model

Affective decision-making model: the process by which consumers base their decision on
feelings and emotions

Compensatory model: a mental cost-benefit analysis model in which negative features can
be compensated for by positive ones

Noncompensatory model: a simple decision model in which negative information leads to


rejection of the option

Cut-off level: for each attribute, the point at which a brand is rejected with a
noncompensatory model

Brand processing: evaluating one brand at a time


Multi-attribute expectancy-value model: type of compensatory model
Conjunctive model: noncompensatory minimum cutoffs to reject bad options
Disconjunctive model: noncompensatory acceptable cutoffs to find good
options

Attribute processing: comparing brands, one attitude at a time


Additive difference model: compensatory two brands compared by attribute
Lexicographic model: noncompensatory one brand in order of importance
Elimination-by-aspects model: noncompensatory adds acceptable cutoffs

Prospect theory: losses loom larger than gains for consumers, even when the two outcomes
are of the same magnitude

Endownment effect: when ownership increases the value of an item


sellers (losing the item) ask for higher price than buyers (gaining the item) are willing to pay

High-effort feeling-based decisions


Consumers select an option based on their recall of past experiences and the associated

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feelings. We tend to buy offerings that make us feel good more often and for longer periods
than we buy offerings that do not have these effects.

Affective forecasting: prediction of how you will feel in the future. We can forecast (1) how
we think we will feel, (2) how intensely this will be, and (3) how long this feeling will last.

Additional high-effort decisions


In addition to deciding which brands to include in a consideration set, deciding what is
important to the choice, and deciding what offerings to choose, consumers in high-effort
situations face two more key decisions: (1) should they delay the decision or make it right
now, and (2) how can they make a decision when the alternatives cannot be compared?

Decision delay if:


Too risky
Unpleasant decision
Too many attractive alternatives
Uncertainty on product information

Decision making when alternatives cannot be compared:


noncomparable decision: a decision about products from different categories
alternative-based strategy: an overall evaluation top-down
attribute-based strategy: abstract representations attributes bottom-up

What affects high-effort decisions


Consumer characteristics:
expertise
mood
time pressure
extremeness aversion: options that are extreme on some attributes are less
attractive than those with a moderate level of those attributes
compromise effect: when a brand is an intermediate rather than extreme
attribute balancing: when a brand scores equally well on certain attributes
metacognitive experiences: how information is processed beyond the content
Characteristics of the decision:
information availability
information format
trivial attributes: arguing that its presence may be useful or is unnecessary
Group context: three types of individual-group goals
self-presentation: group-variety or group-uniformity
minimizing regret: group-uniformity
information gathering: group-variety

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9) Judgment and Decision Making based on Low Effort

Low-effort judgment processes


The previous chapter showed that when effort is high, consumers judgments can be
cognitively complex. In contrast, when MAO is low, individuals are motivated to simplify the
cognitive process by using heuristics, or rules of thumb, to reduce the effort involved in
making judgment. Two major types of heuristics are representativeness and availability:
Representativeness heuristic: making a judgment by simply comparing a stimulus
with the category prototype
Availability heuristic: basing judgments on events that are easier to recall

Base-rate information: how often an event really occurs on average we ignore this

Law of small numbers: the expectation that information obtained from a small number of
people represents the larger population

Low-effort decision-making processes


Unconscious low-effort decision making: 50 percent of all shopping decisions are
made unconsciously. These choices may be strongly affected by environmental
stimuli such as fragrance
Conscious low-effort decision making:
traditional hierarchy of effects: sequential steps used in decision making
involving thinking, then feeling, then behavior
low-effort hierarchy of effects: sequence of thinking-behaving-feeling

Under low motivation and low processing opportunity, a negatively framed marketing
message is more effective than a positively framed message. Two factors influence the low-
MAO decision process:
The goal is not necessarily to find the best brand, called optimizing, as in the case
with high-elaboration decisions. Instead:
satisfice: finding a brand that satisfies a need even though the brand may not
be the best brand
Most low-elaboration decisions are made frequently and repeatedly, where
consumers rely on previous information and judgments of satisfaction or
dissatisfaction from past consumption:
choice tactics: simple rules of thumb used to make low-effort decisions

Learning choice tactics


Operant conditioning: the view that behavior is a function of reinforcements and
punishments received in the past

Choice tactics choice usage outcome (reinforcement, no reinforcement, punishment)

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List of choice tactics:


Performance-related tactic
Habit
Brand loyalty
Price tactic
Normative tactic
Affect tactic
Brand familiarity
Variety seeking
Impulse buying

Low-effort thought-based decision making


Cognitive-based decision making:
Performance-related tactics: based on benefits, features, evaluations of the brand
Habit: doing the same thing after time. It is one of the most effortless types of
decision making, characterized by (1) little or no information seeking and
(2) little or no evaluation of alternatives
developing repeat-purchase behavior
shaping: through a series of steps to create a desired response
marketing to break habitual purchases of other brands
using sale promotion techniques
introducing a new and unique benefit that satisfies consumers needs
distribution policies
marketing to create habitual purchasers of ones own brand
offer comparable deals to build resistance to switching
distribution and inventory control
advertising
Brand loyalty: buying the same brand repeatedly because of strong preference
multi-brand loyalty: buying two or more brands repeatedly strong preference
developing brand loyalty through product quality
developing brand loyalty through sales promotions
Price-related tactics: simplifying decision heuristics that are based on price
zone of acceptance: the acceptable range of prices for any purchase decision
deal-prone consumer: a consumer who is more likely to be influenced by price
Normative influences: low-elaboration decision making that is based on others
opinions. These normative choice tactics can result from:
direct influence in which others try to manipulate us
vicarious observation in which we observe others to guide our behavior
indirect influence in which we are concerned about the opinions of others

Low-effort feeling-based decision making

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Feeling-based decision making:


Affective tactics:
affect: low-level feelings
affect-related tactics: tactics based on feelings
affect referral: tactic where we simply remember our feelings for the product
Brand familiarity: easy recognition of a well-known brand
co-branding: an arrangement by which the two brands form a partnership
unity: when all the visual parts of a design fit together
Variety seeking: trying something different reasons: satiation and boredom
optimal stimulation level (OSL): the level of arousal that is most comfortable
sensation seeker: a consumer who actively looks for variety
vicarious exploration: seeking information simply for simulation
Impulse purchasing: an unexpected purchase based on a strong feeling, due to:
an intense or overwhelming feeling to buy the product immediately
a disregard for potentially negative purchase consequences
feelings of euphoria and excitement
a conflict between control and indulgence

10) Post-Decision Processes

Post-decision dissonance and regret


Post-decision dissonance: a feeling of anxiety over whether the correct decision was made.
Most likely occurs when more than one alternative is attractive and the decision is important

Post-decision regret: a feeling that one should have purchased another option The regret
goes away over time
even if you change your decision, and feel regret over the new alternative, consumers will
feel less regret because they believe that their decision to switch was justified

Learning from consumer experience


Hypothesis testing: testing out expectations through experience

Hypothesis generation: forming expectations about the product or service

Exposure to evidence: actually experiencing the product or service

Encoding of evidence: processing the information of experiences

Integration of evidence: combining new information with stored knowledge

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The four basic stages in testing hypothesis for learning:

What affects learning:


Motivation
when motivation is low, consumers will generate few or no hypotheses
Prior knowledge or ability
when knowledge is high, they are unlikely to generate new hypothesis
Ambiguity of the information environment or lack of opportunity
ambiguity of information: not enough information to confirm/disprove
hypotheses
Processing biases

Top dog: a market leader or brand that has a large market share
limitations on learning are advantageous to top dogs because consumers will simply confirm
existing beliefs and expectations and be overconfident, particularly when the motivation to
learn is low

Underdog: a lower-share brand


encourage consumer learning because new information may lead to switch brands

How do consumers make satisfaction or dissatisfaction judgments


Satisfaction: the feeling that results when consumers make a positive evaluation or feel
happy with their decision
high-involvement consumers tend to express higher satisfaction immediately after a
purchase, but their satisfaction declines over time, while low-involvement consumers exhibit
lower satisfaction at first, but their satisfaction increases with greater usage over time

Dissatisfaction: the feeling that results when consumers make a negative evaluation or are
unhappy with a decision

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Satisfaction/dissatisfaction based on thoughts


expectations and performance: the disconfirmation paradigm
disconfirmation: a discrepancy between expectations and performance
positive disconfirmation leads to satisfaction
expectation: belief about how a product will perform
performance: whether the product actually fulfills consumers needs
performance is either subjective or objective
causality and blame: attribution theory
attribution theory: a theory of how individuals find explanations for events
based on (1) stability, (2) focus and (3) controllability
fairness and equity: equity theory
equity theory: focuses on the fairness of exchanges between individuals
fairness in the exchange: the perception that peoples input are equal to
their outputs in an exchange
Satisfaction/dissatisfaction based on feelings
experienced emotions and coping
post-decision feeling: positive or negative emotions while using the product
active coping: action coping, rational thinking and positive thinking
mispredictions about emotions

Responses to dissatisfaction
Complaints: more likely when MAO is high. Four customer characteristics when
preparing complaints-resolution policies and practices:
customers perceptions of the problem
customer-company relationship
customer psychographics
personal characteristics
Responding to service recovery
Responding by negative word of mouth: the act of consumers saying negative
things about a product or service to other consumers

Is customer satisfaction enough


Customer retention: the practice of keeping customers by building long-term relationships
Steps to retain customers:
Care about customers
Remember customers between sales bol.coms verjaardags-emailtje
Build trusting relationships
Monitor the service-delivery process
Provide extra effort

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Disposition
Disposition options: disposition often means throwing things away; however, there are
many additional ways of disposing of an offering (e.g., give away, trade, recycle). In addition,
disposition can involve one person (personal focus), two or more people (interpersonal
focus), or society in general (societal focus). Disposition can be temporary (loaning or renting
the item) or involuntary (losing or destroying the item)

Physical detachment: physically disposing of an item

Emotional detachment: emotionally disposing of an item

Recycling:
Motivation to recycle: consumers are more likely to recycle when they perceive
that the benefits outweigh the costs, including money, time, and effort
Ability to recycle: consumers who know how to recycle are more likely to do so
than those who do not
Opportunity to recycle: if separating, storing, and removing recyclable materials is
difficult or inconvenient, consumers will usually avoid doing so

PART IV THE CONSUMERS CULTURE

11) Social Influences on Consumer Behavior

Sources of Influence
Marketing source: influence delivered from a marketing agent, for example, advertising,
personal selling.
Marketing sources delivered via mass media
Marketing sources delivered personally
Marketing sources delivered via social media

Nonmarketing source: influence delivered from an entity outside a marketing organization,


for example, friends, family, the media.
Nonmarketing sources delivered via mass media
Nonmarketing sources delivered personally
word of mouth: verbally from one person to another person or group of people
this is more effective among people with weak ties
Nonmarketing sources delivered via social media

How do these general sources differ?


Reach: mass media delivered has higher reach than personally delivered

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Capacity for two-way communication: personally delivered has higher capacity


than mass media delivered
Credibility: nonmarketing sources have higher credibility than marketing sources

Opinion leader: an individual who acts as an information broker between the mass media
and the opinions and behaviors of an individual or group

Gatekeeper: a source that controls the flow of information

Market maven: a consumer on whom others rely for information about the marketplace in
general

Reference groups as sources of influence


Types of reference groups:
Aspirational reference group: a group that we admire and desire to be like
Associative reference group: a group to which we currently belong
Brand community: a specialized group of consumers with a structured set of
relationships involving a particular brand, fellow customers of that brand, and
the product in use
Dissociative reference group: a group we do not want to emulate

Characteristics of reference groups:


Degree of contact
Primary reference group: with whom we have physical face-to-face interactions
Secondary reference group: with whom we do not have direct contact
Formality
Homophily: the overall similarity among members in the social system
Group attractiveness
Density
Degree of identification
Tie-strength: the extent to which a close, intimate relationship connects people

Embedded market: market in which the social relationships among buyers and sellers
change the way the market operates

Consumer socialization: the process by which we learn to become consumers


People as socializing agents
Media and marketplace as socializing agents

Normative influence
Normative influence: social pressure designed to encourage conformity to the expectations

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of others. It implies that consumers will be sanctioned, punished, or ridiculed if they do not
follow the norms, just as it also implies that they will be rewarded for performing the
expected behaviors.

Norm: collective decision about what constitutes appropriate behavior

Normative influence can affect consumer behavior:


Brand-choice congruence: the purchase of the same brand as members of a group
Conformity: the tendency to behave in an expected way
Compliance: doing what the group or social influencer asks
Reactance: doing the opposite of what the individual or group wants us to do
Social-relational theory: consumers conduct their social interactions according to
(1) the rights and responsibilities of their relationship with group members, (2) a
balance of reciprocal actions with group members, (3) their relative status and
authority, and (4) the value placed on different objects and activities

What affects normative influence strength:


Product characteristics
Reference groups influence the brand purchased if product is consumed in public,
and low if it is consumed in private. Reference groups influence is high if its a
necessity product, and low if it is a luxury product.
Consumer characteristics
Group characteristics
Coercive power: the extent to which the group has the capacity to deliver
rewards and sanctions friends have more capacity than neighbors

Foot-in the-door technique: a technique designed to induce compliance by getting an


individual to agree first to a small favor, then to a larger one, and then to an even larger one

Door-in-the-face technique: a technique designed to induce compliance by first asking an


individual to comply with a very large and possibly outrageous request, followed by a smaller
and more reasonable request

Even-a-penny-will-help technique: a technique designed to induce compliance by asking


individuals to do a very small favor one that is so small that it almost does not qualify as a
favor

Informational influence
Informational influence: the extent to which sources influence consumers simply by
providing information

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Factors affecting informational influence strength:


Product characteristics
when products are complex or risky consumers tend to be susceptible to
informational influence
Consumer characteristics
Group characteristics

Descriptive dimensions of information:


Valence: whether information about something is positive negative
Modality: whether information comes from verbal or nonverbal channels

Viral marketing: rapid spread of brand/product information among a population of people


stimulated by brands

12) Consumer Diversity

How age affects consumer behavior


There are four major age groups being targeted by marketers:
Teens and millennials: individuals born between 1980 and 1994, aka Generation Y
social media, friends, technology, internet
Generation X: individuals born between 1965 and 1979
financial difficulties, shifting societal norms, time-sapping work schedules
Baby boomers: individuals born between 1946 and 1964
individualism, freedom to do what they want when they want, TV
Seniors: individuals born between 65 years old (gray market)
more woman, difficulties remembering information, simpler schematic processing

How gender and sexual orientation affect consumer behavior


Sex roles
Agentic goal: goal that stresses mastery, self-assertiveness, self-efficacy,
strength, and no emotion
Communal goal: goal that stresses affiliation and fostering harmonious
relations with others, submissiveness, emotionality, and home orientation
men tend to have agentic goals; competitive, independent, externally
motivated, and willing to take risks. Women tend to have communal goals;
cooperative, interdependent, intrinsically motivated and risk averse
Differences in acquisition and consumption behaviors
women are more likely to have high MAO, whereas men are more likely to have
low MAO. men are more likely to use specific hemispheres of their brain for certain
tasks, woman use both hemispheres of their brain for both tasks. men are more

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sensitive to positive emotions whereas woman are more sensitive to negative


emotions
Gender and sexual orientation
sexual orientation: a persons preference toward certain behaviors
feminine, masculine or androgynous

How regional influences affects consumer behavior


Residents in one part of the country can develop patterns of behavior that differ from those
in another area New England likes lobster and skiing, Texas likes barbecues and rodeos

Clustering: the grouping of consumers according to common characteristics using statistical


techniques

The way in which cultures differ can affect how consumers think:
Individualism versus collectivism
Western cultures focus on individualism, Eastern cultures focus on collectivism
Horizontal versus vertical orientation
Horizontal orientation value equality, vertical orientation value hierarchy
Masculine versus feminine
Masculine cultures are more aggressive, feminine cultures social relationships

How ethnic influences affects consumer behavior


Ethnic group: subculture with a similar heritage and values

Acculturation: learning how to adapt to a new culture

Multicultural marketing: strategies used to appeal to a variety of cultures at the same time

Intensity of ethnic identification: how strongly people identify with their ethnic group

Accommodation theory: the more effort one puts forth in trying to communicate with an
ethnic group, the more positive the reaction

How religion influences affects consumer behavior


Religious values and customs can influence consumer behavior and form the basis of some
marketing strategies. For example, the color green has significance for Muslims, which has
led to its frequent use on product packages for this group. Also, Mormons are prohibited
from using liquor, tobacco, and caffeine, including cola. Christians are less likely to buy on
credit, or attend rock concerts and movies.

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13) Household and Social Class Influences

How the household influences consumer behavior


Types of households:
Nuclear family: father, mother, and children
Extended family: the nuclear family plus relatives such as grandparents, aunts
Household: a single person living alone or a group of individuals who live together
in a common dwelling, regardless of whether they are related

Family life cycle: different stages of family life, depending on the age of the parents and how
many children are living at home
these stages do not capture all types of households, like same-sex couples and never-
married single mothers

Five main factors are altering the basic structure and characteristics of households:
Delayed marriage and cohabitation
single people spend more on alcohol, clothes, cars, shoes and entertainment
Dual careers
these people spend more on child care, eating out and services
Divorce
leads to disposing of old possessions, leading to buying new things
Smaller families
a smaller family means more discretionary income to spend on vacation etc
Same-sex couples
the number of same-sex couples is growing, particularly in certain urban areas

Roles that household members play


Household decision roles: roles that different members play in a household decision
Gatekeeper: collects and controls information important to the decision
Influencer: tries to express their opinions and influence the decision
Decider: who actually determines which product will be chosen
Buyer: who physically acquires the product or service
User: who consumes the product

Instrumental roles: roles that relate to tasks affecting the buying decision

Expressive roles: roles that involve an indication of family norms

The role of spouses:


Husband-dominant decision: made primarily by the male head-of-household
lawn mowers, hardware
Wife-dominant decision: made primarily by the female head-of-household

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childrens clothing, groceries, toiletries


Autonomic decision: equally likely to be made by the either, but not both
mens clothing, luggage, toys and games, cameras
Syncratic decision: jointly made by both
vacations, refrigerators, TVs, furniture, family car

The role of children:


children are more likely to use their influence for child-related products such as cereals,
snacks, vacations, and new computer technologies. Single parents are more likely to give in
to their childrens influences. The nature of childrens influence on acquisition, usage, and
disposition decisions partly depends on whether the household is authoritarian, neglectful,
democratic or permissive. The older the child, the greater the influence.

Social class
Social class hierarchy: the grouping of members of society according to status, high to low

Types of social class systems:


Overprivileged: families with an income higher than the average in the social class
Class average: families with an average income in a particular class
Underprivileged: families below the average income in the social class

Social class influences:


Trickle-down effect: trends that start in the upper classes and then are copied by
lower classes
Status float: trends that start in the lower and middle classes and move upward

How social class is determined:


Income: weakly related to social class
Occupation and education: occupation is greatest determinant of class standing,
just like education because this often leads to occupation
Other indicators of social class
Inherited status: status that derives from parents at birth
Earned status: status acquired later in life through achievements
Social class indexes
Status crystallization: when consumers are consistent across indicators of social
class income, education, occupation, etc.

How social class changes over time


Upward mobility: raising ones status level
Downward mobility: losing ones social standing
Social class fragmentation: the disappearance of class distinctions

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How does social class affect consumption


Conspicuous consumption and voluntary simplicity
Conspicuous consumption: acquisition of goods to show off ones status
Conspicuous waste: visibly buying products that one never uses
Voluntary simplicity: limiting acquisitions to live a less material life
Status symbols and judging others
Status symbol: product that tells others about someones social class standing
Parody display: status symbols start in lower-social classes and move upward
Fraudulent symbol: symbol that becomes so widely adopted that it loses status
Compensatory consumption
Compensatory consumption: the consumer behavior of buying products to
offset frustrations or difficulties in life
Meaning of money
Money can be both good and evil

14) Psychographics: Values, Personality, and Lifestyles

Values
Values: abstract, enduring beliefs about what is right/wrong, important, or good/bad

Value system: our total set of values and their relative importance
value conflict: something that is consistent with one value but inconsistent with another,
equally important

Acculturation: the process by which individuals learn the values and behaviors of a new
culture

Global values: a persons most enduring, strongly held, and abstract values that hold in
many situations. Seven domains: maturity, security, prosocial, self-direction, achievement,
enjoyment, and restrictive conformity. Two types within these domains:
Terminal values: highly desired end states such as social recognition and pleasure
Instrumental values: the values needed to achieve the desired end states such as
ambition and cheerfulness

Domain-specific values: values that may only apply to a particular area of activities

Values that characterize western cultures:


Materialism: placing importance on money and material goods
Home: making it as attractive and comfortable as possible
Work and play: value work for its instrumental value: to achieve other values

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Individualism: individuals needs have a higher priority than groups needs


Allocentric consumers: prefer interdependence and social relationships
Idiocentric consumers: prefer individual freedom and assertiveness
Family and children: value education
Health: high value on health due to reasons of self-esteem
Hedonism: the principle of pleasure seeking
Youth: high value on youth cosmetic surgery
Authenticity: close attachment to brands that perceive to be authentic
Environment: high value in supporting environmentally friendly goods
Technology: fascinated by technological advances make life easier

Influences on values:
Culture
Individualism versus collectivism: whether focus is on individuals or group
Uncertainty avoidance: if a culture prefers structured or unstructured situations
Masculinity versus femininity: if a culture stresses masculine or feminine values
Power distance: if societys members are equal in terms of status
Ethnicity
Social class
Age

Value segmentation: the grouping of consumers by common values

How values can be measured:


Inferring values from the cultural milieu
Advertising has often been used as an indicator of values
Means-end chain analysis
Means-end chain analysis: helps to explain how values link to attributes
Value laddering: determining the root values related to product attributes
Value questionnaires
Rokeach Value Survey (RVS): measures instrumental and terminal values
List of Values (LOV): measures nine principal values in consumer behavior
self-respect, warm relationships, sense of accomplishment, self-fulfillment, fun,
excitement, sense of belonging, being well respected, security

Personality
Personality: an internal characteristic that determines how individuals behave in various
situations

Research approaches to personality:


Psychoanalytic approaches: personality arises from a set of dynamic, unconscious

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internal struggles within the mind oral stage, anal stage, phallic stage
Trait theories: propose that personality is composed of characteristics that
describe and differentiate individuals (1) agreeableness, conscientiousness,
emotional stability, openness, and extraversion. (2) unstable/stable vs
introverted/extroverted. (3) melancholic, choleric, phlegmatic, and sanguine
Phenomenological approaches: personality is largely shaped by an individuals
interpretations of life events
Locus of control: how people interpret why things happen (internal/external)
Social-psychological theories: individuals act in social situations to meet their
needs (1) compliant: dependent on others, (2) aggressive: need power, (3)
detached: self-sufficient. Distinguish state-oriented consumers who are more likely
to rely on subjective norms, and action-oriented consumers whose behavior is
based on their own attitudes
Behavioral approaches: differences in personality are a function of how
individuals have been rewarded or punished in the past

Determining whether personality characteristics affect consumer behavior:


Optimal stimulation level: people prefer things that are moderately arousal. If the
OSL is high; people prefer high arousal, if OSL is low; people prefer low arousal
Dogmatism: a tendency to be resistant to change or new ideas (close-minded)
Need for uniqueness (NFU): the desire for novelty
Creativity: a departure from conventional consumption practice in a novel way
Need for cognition (NFC): a trait that describes how much people like to think.
Three dimensions: creative choice counter conformity, unpopular choice counter
conformity, and avoidance of similarity
Susceptibility to influence: high susceptibility are guided by others, low
susceptibility are guided by ads
Frugality: the degree to which consumers take a disciplined approach to short-
term acquisitions and are resourceful in using products and services to achieve
longer-term goals. High frugality are less materialistic and more conscious of price
and value
Self-monitoring behavior: high self-monitors are typically sensitive to the desires
and influences of others as guides to behavior, and low self-monitors are guided
more by their own preferences and desires and are less influenced by normative
expectations
National character: the personality of a country
Competitiveness: the desire to outdo others through conspicuous consumption of
material items such as electronic gadgets

Lifestyles
Lifestyles: peoples patterns of behavior. Three components:

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Activities
Interests
Opinios

Voluntary simplicity: consciously limiting acquisition and consumption for a less


materialistic, more eco-friendly lifestyle frugality: this is a personality trait, whereas
voluntary simplicity is a lifestyle choice

Combining values, personality, and lifestyles


Psychographic research today combines values, personality, and lifestyle variables:
VALS (values and lifestyles): analyzes behavior of consumers to create segments
based on two factors: resources and primary motivation
identifies eight consumer segments:

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