Consumer Behavior2011

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Todaythe marketing managers concern with why has brought a new ,more efficient focus to marketing products. It has caused marketing management to analysize the factors that influence the choice of a particular brand. Now marketing managers are concerned about delivering product benefits,changing brand attitudes ,and influencing consumer perceptions. They realize that marketing plans must be based on the psychological and social forces that are likely to condition consumer behaviorthat is , what goes on inside the consumers head. In this course, we will learn consumer behavior in four parts. In part 1,we will see the introduction about this course. In part 2, we study four kinds of consumer decision making. In part 3,we talk about the individual consumer, and in the last part,we will discuss environmental influences on consumer behavior. Now lets go !
Course Aims
Introduce the student to a range of theoretical perspectives on consumer behavior Recognize and anticipate the variety of consumer behavior observable in the workplace .To allow the student the opportunity to consider the observed behavior with reference to the main perspectives Analyze, infer, and understand the reasons for that behavior Identify, design, and apply techniques for effectively managing that behavior Develop the skills needed for management: skills that include analytical, learning, interpersonal, communication, advertising, and organizational skills.

100%=be out on duty(10%)+ case study(40%)+final exam(50%) Consumer Behavior and Marketing Action J. PAUL PETER & JERRY C. OLSON McGRAW HILL INTERNATIONAL EDITION 9TH EDITON 2010 CONSUMER BEHAVIOR BLACKWELL MINIARD ENGEL THOMSON SOUTH-WESTERN 10th EDITION2 2006
2004.3
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CONTENTS
Part 1 Introduction
Part 2 Consumer Decision Making

Part 3 The Individual Consumer Part 4 Environmental Influences on Consumer
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CONTENTS
Part 1 Introduction
Chapter1 Introduction
1.1 Overview 1.2 Background and trend of consumer behavior 1.3 Research scope of consumer behavior and related subjects
Chapter 2 Complex Decision Making

2.1 Types of consumer decision 2.2 High involvement decision
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Chapter3 Brand Loyalty

3.1 Consumer learning Overview 3.2 Habit 3.3 Brand loyalty
Chapter4 Low Involvement Decision Making

4.1 The important of a low involvement perspective 4.2 The four type of behavior summarized 4.3 Theories of low involvement consumer behavior 4.4 Strategic Issues in Low Involvement Decision Making
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Chapter5 Situational Determinants of Consumer Behavior

5.1 The nature of situational variables 5.2 A model of situational determinants 5.3 Use of situational variables in marketing strategy
Part 3 The Individual Consumer
Chapter 6 Consumer Perception
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6.1 Perception 6.2 Package and consumer psychology 6.3 Brand and consumer psychology
6.4 Consumer perception of advertising
Chapter 7 Consumer Needs and Motives

7.1 Needs 7.2 Motives 7.3 Needs, Motivation and Behavioral strategies
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Chapter 8 Consumer Attitudes

8.1 Attitude s Definition and Functions 8.2 Attitude Formation and Change 8.3 Attitude and Behavior
Chapter 9 Consumer Personality

9.1 Personality 9.2 Life-Style 9.3 Self-Concept 9.4 Personality and Behavior
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CONTENTS Part 4 Environmental Influences on Consumer
Chapter 10 Household Decision Making

10.1 Family Influences on Consumer Behavior 10.2 Types of household 10.3 Family Life Cycle (FLC) 10.4 A Mode of Family Decision Making 10.5 Husband-wife Influences 10.6 Parent-child Influences
10.7 Family Decision Making and Marketing strategies

10.8 The Measurement of Family Influence 10.9 Families in The Future
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Chapter11 Group Factors

11.1 Types of groups
11.2 Reference group influences

11.3 Application in Marketing Strategy
Chapter12 Social Class Influences

12.1 The importance of social class to marketing strategy 12.2 The Nature of Social Class. 12.3 Social Class Categories and Measurement 12.4 The Limitation of Social Class As A Determinant of Consumer Behavior 12.5 Differences in behavior between classes.
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Chapter13 Cultural Influences and Consumer Values

13.1 The Nature of Culture 13.2 Cultural Values and Consumer Behavior
13.3 Culture and Product 13.4 Culture and Consumption
13.5 Changes in Cultural Values from The 1990s

13.6 Application in marketing strategy
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Chapter14 Subcultural and Cross-Cultural Influences
14.1 Types of Subculture 14.2 Difference of Cross-culture 14.3 Globalization 14.4 Cross-cultural effects influence marketers in two ways. 14.5 Application in Marketing Strategy
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Chapter15 Communication and Public Opinion Leadership
15.1 The communication model
15.2 Communication analysis 15.3 Medium 15.4 Message 15.5 Public opinion directing process
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CONTENT PART1
Part 1 Introduction
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Part 1 Introduction
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1.1 Overview
What is consumer behavior? Consumer behavior is defined as those acts of individuals directly involves in obtaining, using, and disposing of economic goods and services, including the decision processes that precede and determine of these acts. About consumption behavior Generally speaking, consumption behavior refers to the physical and mental action of consumers searching, purchasing, using and evaluation of products and services by which they hope to satisfy their needs. Its a process including the following steps: Information search and evaluation
Problem recognition
Purchasing process
Postpurchasing behavior
Part1 Introduction
Why study consumer behavior? 1.Significance in daily life 2.Application to decision making 3.Micro perspective 4.Societal perspective
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1.2 Background and trend of consumer behavior

Background 1.Attack of marketing concept 2.Development of market segmentation strategy 3.Improvement of society richness 4.Emerge of large amounts of products 5.Development of computer and statistics technology 6.Campaign of protection of consumer rights and interests Development of consumer behavior Preliminary stage: 1900---1930 Research of this stage is confined to two aspects, advertising and sales.
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Mature stage: 1930---1960 Main characteristic of research of this stage is that it gives consideration to interests of both the producer and the consumer. It can be called a two-way stage. Advancing at top speed stage: 1960---present time Many associations were founded and the subject began to be studied in many colleges and institutes.
Developing trend
1.The research scope is being widened. For example: from the past research of customer to the present research of consumer. 2.From the simple describe of the relationship of variables to the study of the cause and effect relationship, and performing laboratory research of many problems. 3.The work abstract level improved.Many consumer theory models are put forward. 4.From static concept to dynamic concept.This is to say, consumers process of information and consumption is a dynamic process. 5.The research tends to be a multiple study of many subjects.
1.3 Research scope of consumer behavior and related subjects
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1.3.1Research scope of consumer behavior Psychological characteristics of consumer such as needs, motives, personality, attitudes and general effect of such psychological process as perception and learning on consumer behavior Application of psychology research accomplishments on marketing strategies such as influences of such factors as brand, package, price, advertisement on consumer behavior Family, social group, social class, culture, subculture influences on consumer purchasing. 1.3.2Related subjects Subjects related to consumer behavior are advertising psychology, commerce psychology, market psychology, economic psychology, consumption psychology and so on. These subjects have some overlaps in research field, and research methods. The main difference of them is the research angle. 1.3.2.1Psychology
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The nature of psychology Psychology is a subject that studies the laws of peoples psychological activities. Generally, it includes two parts: 1.Psychology process: recognition and perception, affection process, characteristic of willpower. 2.Psychology characteristic: personality consciousness (such as interest, hobby, needs and motive), personality characteristic (such as temperament, character and ability) Characteristic of scientific psychology 1.Fishner:Absolutely Difference( AD):Just noticed Difference (JND): 2.Wundt built the first psychological laboratory in the world and this can be seen as the symbol of scientific psychology as an independent subject. 3.Ebbinghaus discovered the curve of forgetting during his research of language learning and memory, which still directs peoples daily study and life style.
Part1 Introduction
Four Kinds of Views about the nature of Psychology: 1.Behaviorism (S-R theory); 2.Cognitive Psychology (S-O-R theory);
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3.Psychoanalysis (id, ego, superego);

4.Humanism ( need)
1.3.2.2Consumer behavior research in economical theory Consumption function: Economics studies peoples consumption behavior from the angle of the relationship between their income and consumption expenditure, and this is called consumption function theory. Absolute income hypothesis 1.The law of MPC. 2.The principle of flexible preference. Relative income hypothesis 1.Demonstration function of consumption 2.Irreversibility of consumption
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Constant income hypothesis There are two parts of peoples income: temporary income and constant income, and so is peoples consumption expenditure: temporary expenditure and constant expenditure.
Consumption influencing income hypothesis There are often indefinite parts in peoples income. So after the consumption decision, family or individual can change indefinite income into definite ones through certain efforts so as to increase their income. A viewpoint opposite to the five former ones assumes that: there is no definite relationship between peoples income and consumption expenditure; consumption expenditure may not vary as income varies, and can even have no relationship of income.
Typical figures and theories of this viewpoint are: 1.Daniel B. Suits: Short Period Analysis Theory 2.Gorge Kantona: Short Period Change Analysis Theory 3.H.S Houthakker & L.D. Taylor: Consumption Products Storage Adjustment Hypothesis 1.3.3.3Consumption motive research in economics theory
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Individual factor
Individual factor refers to the power (such as needs, comprehension, learning, thinking) that impels consumers buying.
SR theory and its development

1.SR : here S refers to desire, needs, and R refers to purchasing. This theory emphasizes the function of peoples needs in purchasing. These needs include physiological, psychological and social needs. This is to say, peoples needs decide whether they purchase or not. 2.SPR: Here P refers to perception and this theory puts forward the function of peoples perception in consumption. Here perception refers to how people look upon their purchasing and new products, including understanding whether the products can satisfy their needs. So, theory can give an interpretation of why people buy this product instead of other ones and also can explain the reason that people change their purchasing. 3.SLR:The function of learning in consumption is put forward. Here learning means: a. Learning of product information; b. Formation of peoples consumption habit. The resource is experience and advertisement from others or oneself. Learning has influence on which brand consumer will buy. Purchasing wont occur if there is no learning process.
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4.ST(J)R: Here the function of thinking and judgement in consumption is emphasized. This theory is put forward directed against the disturb caused by too much or incorrect market information. So, it is thinking and judge that determines which product consumer will ultimately buy. Its also deemed that the process of thinking and learning determines the formation and change of consumers purchasing attitude.
Maximum satisfaction and minimum regret:

There is always certain risk in purchasing (this can be called purchasing risk). Once such risk occurs, its possible that regret could be caused. So, consumer does purchasing according to minimum postpurchasing regret principle. Herbent Simon believes actually there is no best choice. So no best plan can be drawn. The only thing consumer can do is to make a choice that can satisfy himself. Environmental factors
Family
Everyone may purchase under the influences of his family. These influences include: 1.Total income and assets of family 2.Scale of family 3.Age composition of family 4.Education of family
Part1 Introduction
Influence of social intercourse Influence of consumer campaign Influence of resources that consumer can use New product development and produce Persuade ability of enterprise Function of brand Store location and service quality Price
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Enterprise: factors from enterprise that influence consumers purchasing motive of enterprise
1.3.3.4 Indifference curve and its application in consumer behavior analysis

Indifference curve indicates the same utility of two kinds of products or composition of different amount product. The basis is the utility ordinal theory.
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The main use of indifference curve in consumer behavior analysis is the ascertainment of consumer balance position. Consumer balance is defined as the condition that consumer obtains the best satisfaction through purchasing of certain amount or certain kind of product under certain income and certain product price. Condition of consumer balance is consumer can obtain 1$s marginal utility when he spends the last 1$ on purchasing a certain kind of product.
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Questions
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1. Which of the following decision should be considered legitimate topics of concern in the study of consumer behavior:
(a). selecting a college (b). purchasing a life insurance policy (c). Smoking a cigarette (d).selecting a church to join (e).selecting a dentist (f).visiting an auto showroom to see new models (g).purchasing a college textbook 2. Consumption behavior begins with the step of: (a). purchasing process (b). Information search and evaluation (c). Problem recognition (d). Postpurchasing behavior 3. ____occurs when an individual perceives a difference between an ideal state of affairs and the actual state at any given moment. (a). Problem recognition (b).search (c).alternative evaluation (d).choice (e).outcome 4. The research scope of consumer behavior includes:
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(a). Psychological characteristics of consumer such as needs, motives, personality, attitudes and general effect of such psychological process as perception and learning on consumer behavior (b).Application of psychology research accomplishments on marketing strategies such as influences of such factors as brand, package, price, advertisement on consumer behavior (c). Family, social group, social class, culture, subculture influences on consumer purchasing 5. From which of the following we can see the research of consumer behavior is being widened? (a). From the past research of customer to present consumer (b). From the simple describe of the relationship of variables to the study of the cause and effect relationship, and performing laboratory research of many problems (c).The work abstract level improved Many consumer theory models are put forward. (d).From static concept to dynamic concept 6. What are the two parts psychology includes: (a). Psychology process (b). Psychology characteristic (c).recognition and perception (d).personality consciousness
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7. AD( Absolutely Difference) refers to____ JND(Just Noticed Difference) refers to____ (a). The least difference that people can detect. (b). The least stimulus that people can detect. 8. The discoverer of the forgetting curve is : (a).Fisher (b).Wundt (c).Ebbinghaus (d).Herbent Simon
9. Explain the main difference of the theory of S-R, S-P-R, S-L-R, S-T(J)-R. 10.Choose the factors that influence consumer purchase: (a). Education of family (b).New product development and produce of enterprise (c).Persuade ability of enterprise (d). Function of brand (e).Store location and service quality 11.What is consumer balance and what is the condition of it? Answer: 1)a,b,e,g;2)c;3)a;4)a,b,c;5)a,b,c,d;6)a,b;7)b,a;8)c;10)a,b,c,d,e
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CONTENT PART2

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2.1Types of consumer decision
what is consumer decision
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consumer decision is the activity when the consumer chooses one alternative from two or more ones.
Four factors we should master A. The consumer must confront a problem that has to be settled. B. There are many products to choose from. Different products stand for different brand, and have different prices. C. The consumers decision can not always solve the problem, that is to say, the decision has risk. D. There is only one feasible choice.
Types of consumer decision(Figure2.1) Complex decisionChapter2 Brand loyaltyChapter3 Variety seekingChapter4 Inertia (Chapter4

High involvement purchase decision Low know.le
High know.le Complex decision Chapter2 Brand loyalty Chapter3
Low involvement purchase decision

Variety seeking Chapter4 Inertia (Chapter4
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Figure 2.1 Consumer Decision Making
Theories about consumer decision
1.The theory of taking consumer as economic person.

The consumer will acquaint himself or herself with some similar products and will contrast them when buying, so as to gain the maximum advantage. 2.The theory of taking consumers as passive persons. The consumer always accept persuasion from enterprises, accordingly, he or she will buy the products. 3.The theory of taking consumer as problem-solver. When buying, the consumer will search for some information about the product, at the same time, he or she will evaluate it. So it is a process that the consumer actively solve the problem.

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2.2High involvement decision

In complex decision making,the consumer evaluates brands in a more detailed and comprehensive manner. More information is sought and more brands are evaluated. Such a process is most likely for: High priced products Products associated with performance risks (medical products, automobiles) Complex products(stereo sets, home computers)
Specially goods (sports equipment, furniture),and

Products associated with ones ego(clothing, cosmetics).
The process of high involvement decision making can be defined as following:
Need arousal. A consumer begins with a particular state of mind that represents his or her perceptions of and attitude toward known brands.
Information processing. The immediate result of need arousal is a greater awareness of information about the product.

Brand evaluation. It takes place at the same time as information processing. The consumer will establish certain criteria, and each brand is judged on the criteria. Purchase. After evaluation, the consumer will purchase the product in accordance to the criteria. Postpurchase evaluation. After purchasing, the consumer will evaluate the brands performance.
NEED AROUSAL
Feedback POSTPURCHASE EVALUATION
CONSUMER INFORMATION PROCESSING
PURCHASE
BRAND EVALUATION
Figure2.2 A Basic Model of Complex Decision Making

NEED AROUSAL INPUT VARIABLES
INTERNAL Consumers Past Experiences Consumer Characteristics Demographics Life-style Personality Consumer Motivations
EXTERNAL Environmental Influences Face-to-face groups Situational determinants Social class Culture Marketing Stimuli Product Price Promotion Store
CONSUMERS PSYCHOLOGICAL SET
STIMULUS EXPOSURE
Need Criteria
Tension State Brand Attitudes Beliefs about the brands Brands evaluation Tendency to act NEED RECOGNITION (initiation of decision making)

CONSUMER INFORMATION PROCESSING
SEARCH FOR ADDITIONAL INFORMATION
INPUT VARIABLES
STIMULUS EXPOSURE
Selectivity
PERCEPTION OF STIMULI Attention Comprehension
NEED RECOGNITION MEMORY Past information New information
Retention

Perception of stimuli Stimuli are more likely to be perceived when they: conform to consumers past experiences,
conform to consumers current beliefs about a brand,

are not too complex, are believable, relate to a set of current needs,and
do not produce excessive fears and anxieties.

Search for additional information Such a search is most likely when the consumer: feels that alternative brands being considered are inadequate, has insufficient information about the brands under consideration, receives information from friends or media sources that conflicts with past experience and current information,or is close to deciding on a particular brand and would like to confirm expectations regarding its performance.

BRAND EVALUATION
SEARCH FOR ADDITIONAL INFORMATION
INPUT VARIABLES
STIMULUS EXPOSURE NEED RECOGNITION
Selectivity
PERCEPTION OF STIMULI
EXPECTED SATISFACTION Arrive at expected satisfaction for each brand based on need association
NEED ASSOCIATION Define needs Establish priority of needs Evaluate each brand by using: Compensatory decision rules Noncompensatory decision rules
CHANGES IN CONSUMERS PSYCHOLOGICAL SET Changes in need criteria
Changes in brand attitudes

PURCHASE AND POSTPURCHASE EVALUATION SEARCH FOR ADDITIONAL INFORMATION INPUT VARIABLES Feedback POSTPURCHASE EVALUATION Instrumental Actions PURCHASE INTENTION TO BUY Outside Constraints NO PURCHASE EXPECTED SATISFACTION NEED ASSOCIATION CONSUMERS PSYCHOLOGICAL SET STIMULUS EXPOSURE Tension State NEED RECOGNITION CHANGES IN CONSUMERS PSYCHOLOGICAL SET PERCEPTION OF STIMULI
Selectivity

Choice Questions
1.Which of the following is a proper function for a consumer model : A to provide an integrative view of consumer behavior B to provide detailed guidelines for the development of media and advertising strategies C to identify new product characteristics to meet consumer needs D to provide a basis for organizing marketing activities 2.It is generally easier to organize information by: A attribute B brand C neither D both 3.Stimuli are more likely to be perceived when they: A conform to cultural norms B are complex C deal with information about existing brands D relate to consumer needs
True-False Questions
1.A model of consumer behavior is equally relevant for all product categories. 2.A model of consumer behavior should provide detailed guidance in establishing criteria by which to position a product. 3.A consumers action tendency toward a brand is represented by whether it was the brand last purchased. 4.Consumer information processing always requires interpretation and comprehension of a stimulus.

5.Generally, consumer like to use as few need criteria as possible in evaluating brands, consistent with choosing a satisfactory rather than an optimal product. ANSWER 1 A 2 A 3 D 1 F 2 F 3 F 4 F 5 T
Questions
A large auto manufacturer conducted a survey of recent car purchasers to determine their needs in buying a new car and their perceptions of the companys makes so as to evaluate possible new product offerings. Information collected by the company can be classified into information dealing with each of the four stages of the decision-making model,namely: A,Need arousal 1)consumer thought variables 2)consumer characteristics B,Information processing 1)exposure to marketing stimuli 2)perceptions of marketing stimuli C,Evaluation of alternative brands of cars D,Purchase and postpurchase evaluation Specify the types of information the auto manufacturer might collect from consumers for each of the four stages described above, Specify the strategic applications of such information.
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Chapter 3 LearningHabit and Brand Loyalty

3.1 Consumer learning
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3.1.1 Fundamental
theories of learning
1)Conditioning theories Classic conditioning explains behavior based on repetitive stimuli and the establishment of a close association (contiguity) between a secondary stimulus (picture of cowboy in a Marboro ad) and the primary stimulus (need for a cigarette).Figure3.1 Instrumental conditioning views behavior as a function of the consumers assessment of the degree of satisfaction obtained from the action. Satisfaction leads to reinforcement and to an increase in the probability of repurchasing. Figure3.2 2). Cognitive learning theory
Cognitive psychologists view learning as a problem-solving process rather than the stimulus and response. Learning is a cognitive process of perceiving stimuli, associatingstimuli to needs, evaluating alternative brands, and assessing whether expectations have been met. Learning is equated to a process of complex decision making because of the emphasis on problem solving.

Cognitive theory emphasizes the thought process involved in consumer learning; classic and instrumental conditioning emphasize the result based on the stimulus association. Figure 3.3
Classic conditioning
Unconditioned stimulus
response
Figure 3.1 Classic conditioning
conditioned stimulus
emphasis : association through reception and contiguity

instrumental conditioning
behavior
increase or decrease in probability of response
reward or punishment emphasis : reinforcement; dependence of outcome on learners action.
Figure3.2 Instrumental conditioning

Cognitive learning theory
Goal
purposive behavior
insight
goal achievement
emphasis: problem solving,understanding relationships
Figure3.3 Cognitive learning theroy

3). Learning curve In general, learning of all but the simplest tasks appears to follow a rather common pattern which has become known as a learning curve.
4).Forgetting curve
Amount learnt Number of practice trials
Figure 3.4 A typical learning curve
Figure 3.5 Forgetting curve
Percentage of material retained
Recognition
Recall
Hour since learning

3.1.2 Consumer learning and purchasing
1). Enlarge consumers knowledge of products and enrich their purchasing experience. 2). Help to promote consumers repurchasing.
3.1.3 Consumers learning methods

1)try and error 2)comparison: get a better knowledge comparing 3)imitation: imitation can be intentional or unintentional 4)discovery: get a better knowledge through information search
3.2Habit
3.2.1 A model of habitual purchasing behavior -Figure3.6
3.2.2 The functions of habit

Purchasing by habit provides two important benefits to the consumer.First,it reduces risk. Second,it facilitates decision making.
3.2.3 Habit versus Complex decision making Table 3.1

Figure 5.6 A model of habitual purchasing behavior Selectivity CONSUMERS STIMULUS PERCEPTION PSYCHOLOGICAL SET EXPOSURE OF STIMULI
NEED ASSOCIATION
Tension State Feedback NEED RECOGNITION
POSTCHASE EVALUATION
PURCHASE
INTENTION TO BUY
Satisfaction and Reinforcement Dissatisfaction and Extinction

OUTSIDE CONSTRAINTS REVERET TO COMPLEX DECISION MAKING

Table 3.1 Habit versus Complex decision making Habit Limited informational search High frequency of purchase Low price Low involvement Intensive distribution Less need for service People promotion is important Promotion is important Advertising is for reminding High sensibility of price Complex Decision Making Extensive informational search Low frequency of purchase High price High involvement Selective distribution More need for service People promotion is not important Promotion is not important Advertising is for providing informations Low sensibility of price
3.2.4Inducing a switch from habit to decision making

Generally, the market leader in a category is more likely to be purchased by habit. Various marketing strategies can induce consumers who buy by habit to consider other brands by:

3.3Brand loyalty
There is a close link between habit ,learning,and brand loyalty. Brand loyalty represents a favorable attitude toward and consistent purchase of a single brand over time. Two approaches to the study of brand loyalty have dominated marketing literature. The first ,an instrumental conditioning approach,views consistent purchasing of one brand over time as an indication of brand loyalty. The second approach to the study of brand loyalty is based on cognitive theories. Loyalty implies a commitment to a brand that may not be reflect by just measuring continuous behavior. Despite the product-specific nature of brand loyalty, some generalizations can be made about those who tend to be brand loyal. These findings can be summarized as follows: Brand-loyalty consumers are more likely to be influenced by reference groups. The brand-loyalty consumer tends to be more self-confident in his or her choice. The brand-loyalty consumer tends to be in the higher income group. Brand-loyalty consumers are more likely to perceive a higher level of risk in the purchase. The brand-loyalty consumer is more likely to be store-loyal.

Choice Questions
1.Habit is a means of : A choosing and processing marketing information in an efficient B insuring satisfaction based on past experience C assessing the positive and negative attributes of a brand D considering alternative brands and choosing the best one. 2.Brand loyalty is a result of : A a favorable attitude towards the brand B repurchasing the brand over time C reinforcement D all of the above 3.Purchasing by habit tends to : A increase risk B decrease brand involvement C reduce shopping time D increase price sensitivity 4.Which of following concept is associated with classical conditioning: A repetition B reinforcement C forgetting D satisfaction E all of the above 5.Which of following concept is associated with instrumental conditioning: A contiguity B reinforcement C problem solving D information processing

6.Cognitive theory describes learning as a: A stochastic process B repetitive process C process of problem solving D behavioral process E all of above 7.Brand loyal consumers are more likely to be : A opinion leaders B younger C self-confident in brand choice D innovators 8.Brand loyalty is more likely to occur when the brand is: A well-known B a private brand C a durable D not seen as risky good
True-False Question
1.Boredom with the existing brand might be a sufficient reason to cause a consumer to switch from habit to decision-making. 2.Widespread distribution provides an important reminder effect when consumers purchase by habit. 3.Cognitive learning theory is more relevant in understanding complex decision-making than habit. 4.Consumers who buy a brand regularly but are not strongly committed to it are brand loyal. ANSWER 1 B 2 D 3 C 4 A 5 B 6 C 7 C 8 A 1 T 2 T 3 T 4 F

Questions
This chapter suggests that boredom and desire for variety may result in a change from habit to decision making. Is this more likely for certain product categories than others? Is this more likely for certain consumers than others? That is, is there a stick with it type as opposed to a novelty seeker type?
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Chapter 4 Low Involvement Decision Making


A low involvement purchase is one where the consumer does not consider the product sufficiently important to his or her belief system and does not strongly identify with the product.
4.1 The important of a low involvement perspective
4.1.1 Involvement and the hierarchy of effects

If low involvement characterizes so much of purchasing, why have marketers focused on complex decision making and brand loyalty? There are two reasons. (1)it is easier to influence the consumer when the marketer assumes there is a cognitive process of brand evaluation. (2)complex decision making assumes a sequence or hierarchy of effects that stipulates that consumers think before they act.
4.1.2 The low involvement hierarchy

The low involvement hierarchy stipulates that consumers may act without thinking. Rather than searching for information, the consumer will receive information passively.

Table 4.1 Low versus high involvement hierarchy Low involvement hierarchy Brand beliefs are formed first by passive learning A purchase decision is then made The brand may or may not be evaluated afterwards High involvement hierarchy Brand beliefs are formed first by active learning Brands are then evaluated A purchase decision is made
4.2 The four type of behavior summarized

Figure 4.1 summarizes the four types of behavior. In each case the behavioral model,the underlying theory, and the decision process are listed.
4.3 Theories of low involvement consumer behavior

KRUGMANS THEORY OF PASSIVE LEARNING

HIGH INVOLVEMENT MODEL Beliefs Evaluation Behavior THEORY Cognitive learning DECISION PROCESS Complex Decision Making or Brand Loyalty MODEL Behavior Beliefs Evaluation THEORY Dissonance or Attribution Theory DECISION PROCESS Dissonance Reduction or Attribution
LOW INVOLVEMENT
SIGNIFICANT DIFFERENCE S BETWEEN BRANDS
MODEL Beliefs Behavior Evaluation THEORY Low Involvement Decision Making DECISION PROCESS Variety Seeking
MODEL Beliefs Behavior THEORY Low Involvement Decision Making DECISION PROCESS Inertia
FEW DIFFERENCES BETWEEN BRANDS
Figure 4.1 A Classification of Four Types of Consumer Behavior

Much of the work on low involvement consumer behavior is based on Krugmans perspective of television as an uninvolving medium. Krugman predicts that television would be more effective for low involvement cases and print advertising for high involvement cases. Krugmans view of a passive consumer has stood many of the traditional behavioral concepts in marketing on their head. Table 4.2 SHERIFS SOCIAL JUDGMENT THEORY A second theory that sheds additional light on the uninvolved consumer is Sherifs theory of social judgment. Sherif describes an individuals position on an issue according to that individuals involvement with the issue. Sherif then operationalizes this concept of involvement by identifying a latitude of acceptance (the positions the individual accepts),a latitude of rejection(positions the incivudual rejects), and a latitude of noncommitment (positions toward which the individual is neutral). A highly involved individual having a definite opinion about the issue would accept very few positions and reject a wide number of positions (narrow latitude of acceptance and wide latitude of rejection). An uninvolved individual would find more positions acceptable (wide latitude of acceptance) or would have no opinion about the issue (wide latitude of noncommitment). Figure 4.2 describe applications of Sherifs theory to marketing.

Table 4.2 The High Involvement, Active Consumer Versus the Low Involvement, Passive Consumer Traditional, High Involvement View of an Active Consumer Consumers are information processors. Consumers are information seekers. Consumers represent an active audience for advertising. As a result, the effect of advertising on the consumer is weak. Consumers evaluate brands before buying. Consumers seek to maximize expected satisfaction. As a result, consumers compare brands to see which provide the most benefits related to needs and buy based on multiattribute comparisons of brands. Personality and life-style characteristics are related to consumer behavior because the product is closely tied to the consumers identity and belief system. Reference groups influence consumer behavior because of the importance of the product to group norms and values. Newer, Low Involvement View of a Passive Consumer Consumers learn information at random. Consumers are information gathers. Consumers represent a passive audience for advertising. As a result, the effect of advertising on the consumer is strong. Consumers buy first. If they do evaluate brands, it is done after the purchase. Consumers seek some acceptable level of satisfaction. As a result, consumers buy the brand least likely to give them problems and buy based on a few attributes. Familiarity is the key. Personality and life-style characteristics are not related to consumer behavior because the product is not closely tied to the consumers identity and belief system. Reference groups exert little influence on product choice because products are unlikely to be related to group norms and values.

Low High Latitude of Acceptance Low Consider many brands and use a smaller number of attributes to evaluate each brand
High Low Involvement High Involvement
Few brands will be evaluated using many attributes Figure 4.2 Applications of Sherifs Theory to Marketing.
4.4 Strategic Issues in Low Involvement Decision Making

4.4.1 Marketing strategy 1.Advertising (1)Advertising should focus on a few key points rather than a broad-based information campaign. (2)Advertising dollars should be spent in a campaign of high repetition and should use short-duration messages. (3)There is considerable leeway in the advertising messages acceptable to the consumer.

(4)Visual components are more important influencing behavior. (5)Advertising should be the primary means of differentiating the product from competition.
(6)Television rather than print media should be the primary vehicle for communication.
2. Product positioning Low involvement products are likely to be positioned to solve problems, while high involvement products are more likely to be positioned to deliver benefits. 3.Price Low involvement products are purchased on the basis on price alone, so a decrease in price may be enough to influence the consumer. 4.Sales promotions Sales incentives such as coupons, price deals, or free samples are likely to be more important when the consumer is not involved. 5.In-store conditions When the consumer is not involved with the product, brand choice is frequently made in the store. So in-store conditions become important for low involvement products. The brand at eye level or the one with the largest space may be purchased simply because of the reminder effect.

6.Distribution. Widespread distribution is important for low involvement products, because the consumer does not search for a brand.
4.4.2Strategic
Issues
1.Shift consumers from low to high involvement (1)Linking the product to some involving issue. (2)Linking the product to some involving personal situation.
(3)Linking the product to involving advertising.

(4)Changing the importance of product benefits (5)Introducing an important characteristic in the product. 2.Shift consumers from inertia to variety seeking
If the brand is a market leader, it should encourage inertia; if it is a lesser known brand, it should encourage variety seeking.
3.Should markets be segmented by degree of consumer involvement?

Choices
1.A low involvement decision model also involves a sequence of three steps. Place a___ next to the first step, a ___ next to the second, and a ___ next to the third. A beliefs B intentions C behavior D need-arousal E evaluation 2.Buying by inertia generally involves A high involvement and significant differences between brands B high involvement and few differences between brands C low involvement and significant differences between brands D low involvement and few differences between brands E none of the above 3.High involvement purchasing behavior does not involve one of the following A consumer involvement B cognitive evaluation C passive learning D postpurchase evaluation E information processing 4.According to Krugman, television encourage passive learning because A the advertising is active while the viewer is passive B both the advertising and the viewer are passive C the viewer can control the pace of viewing D the viewer is active while the advertising is passive 5.According to Sherifs theory of social judgement, a highly involved consumer would have

A a narrow latitude of rejection B a narrow latitude of acceptance C a wide latitude of acceptance D a wide latitude of rejection 6.Advertising in a low involvement situation is not likely to A increase brand awareness B increase brand trial C increase in-store brand recognition D change brand attitudes
1.Consumers are not highly involved with most products. 2.The primary basis for inducing trial under low involvement conditions is through price and in-store promotional strategies. 3.Marketing strategies should be directed to minimizing consumer problems in the high involvement case and to maximizing consumer benefits in the low involvement case. 4.The leading brand in a market should encourage variety-seeking behavior. ANSWER 1 A C E 2 D 3 C 4 A 5 B 6 D 1T 2 T 3 F 4 F
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Chapter 5 Situational Determinants of Consumer Behavior

Chapter 5 Situational Determinants of Consumer Behavior

5.1 The nature of situational variables
5.1.1 Type of situations 1.The Communications Situations 2.The Purchase Situation (1)In-store situations Price promotions Free sample Displays (2)Gift-giving situations (3)Unanticipated purchase situations 3.The Consumption Situation The consumption situation is the anticipated usage situation for the brand.

5.1.2 Characteristics of consumption situations 1.The physical surrounding. For example, a stores decor and shelf layout; being indoors or outside; being in a noisy room. 2.Social Surrounding. Whether guests are present, the social occasion, the importance of friends and neighbors that are present. 3.Time. Breakfast, lunchtime, between meals; seasonal factors such as winter versus summer relative to clothing; the time that has passed since the product was last consumed. 4.Task definition. Shopping for oneself or for the family, shopping for a gift; cooking for oneself, for the family or for guests. 5.Antecedent States. Momentary conditions such as shopping when tired or anxious, buying a product on impulse because of an excess of cash on hand, using a product when in an excited state.
5.2 A model of situational determinants

SITUATION
CONSUMER
PRODUCT
Decision Making
PURCHASING BEHAVIOR
Figure 5.1 A model of situational determinants of consumer behavior

The situation versus the product 1.The greater the degree of brand loyalty, the less important are situational influence. 2.The higher the level of product involvement, the less likely it is that situational factors will determine behavior.
5.3 Use of situational variables in marketing strategy

Situational variables have been used most frequently for positioning products and segmenting markets.Several studies will be cited to illustrate the use of situational factors for these strategic applications.
5.3.1 Induct the new condition Wansick and Ray had analyzed how the advertisement drive consumers introducing the product into new condition by expansion strategy. They found that advertisement can effectively suggest the consumer to induct the new condition when the new use-occasion consistent with the exist conception of how to use the product. 5.3.2 Take extant use condition as target market (1)Subdivide the user based on product use (2)Develop new product to meet the special situation (3)Position product in the use of a particular situation though advertising (4)Distribute product to meet the needs of the situation

Choices
1.Which of the following is not a situational variable A nutritional orientation B a social occasion C being in a store D between meals E shopping for a gift 2.Which of the following situational influences is most likely to influence behavior A the consumption situation B the social situation C the environment situation D the in-store situation 3.Which of the following is not a characteristic of a usage or purchase situation A time B social surrounding C brand attitude D antecedent states E physical surroundings 4.The theory that best explain the relative influence of product versus situation on consumer behavior is A dissonance theory B balance theory C attribution theory D learning theory E assimilation/contrast theory 5.The situation eating a snack while working at home is made up of which of the following situational characteristics A social surrounding B task definition C time D antecedent states 6.Price sensitive consumers are most likely to be influenced by A the usage situations B the purchase situation C product attributes D the communication situation E peer group influences

1. The assumption in most multiattribute models is that brand attitudes are the same, regardless of usage situation. 2. The greater the degree of brand loyalty, the more important are situational influence. 3. If a situation is close to behavior in time, then it is more likely to influence behavior. 4. Purchase situation variables are most likely to be defined by in-store conditions. ANSWER 1A2A3C4C5B6B1T2F3T4T
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Chapter 6 Consumer Perception Chapter 7 Consumer Needs and Motives Chapter 8 Consumer Attitudes Chapter 9 Consumer Personality
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6.1Perception
6.1.1. What is perception?

Perception is the process of organizing and interpreting sensory impressions in order to give meaning to the environment. Selection is the basic characteristic of perception .
6.1.2. Factors influencing perception

6.1.2.1 objective factors: 1).characteristics of figure . 2).contrast between figure and ground .
6.1.2.2 subjective factors 1). Personality: 2). Interest 3). Needs and motive 4). Past experience

6.1.3. Illusion
6.1.3.1 Illusion in sight (1)Color (2)Line (3)Shape (4)Texture 6.1.3.2 Illusion in dress and adornment People can select certain dress and adornment to make up the shortage of their building and complexion.

6.2Atention Processes
6.2.1 Variations in attention

Preconscious attention Uses activated knowledge from long-term memory No conscious awareness Automatic process Uses little or no cognitive capacity More likely for familiar,frequently encountered concepts,with welllearned memory representations More likely for concepts of low to moderate importance or involvement Focal attention Uses activated knowledge from long-term memory Conscious awareness Controlled process Uses some cognitive capacity More likely for novel,unusual,infrequently encountered concepts without welllearned memory representations More likely for concepts of high importance or involvement
6.2.2 Factors Influencing attention
three particularly important influencesconsumers general affective state consumers involvement with the information the prominence of the information in the environment

6.2.3 Marketing Implications
Increase consumers involvement with the marketing information Make the marketing information more prominent in the environment
6.3Comprehension Processing
6.3.1Variations in Comprehension
Automatic processing Highly automatic: Little conscious awareness Level Shallow; Focus on concrete tangible meaning Elaboration Less elaborate; Fewer meanings Memorability Lower recall; Weak memory More controlled: High levels of awareness Deep; Focus on more abstract meaning More elaborate; Fewer meanings Greater recall; Stronger memory

6.3.2 Inferences during Comprehension

Inferences are knowledge or beliefs that are not based on explicit information in the environment.
6.3.3 Factors Influencing Comprehension

We examine three important influences consumers existing knowledge in memory
their involvement at the time of exposure
various aspects of the environment during exposure
6.3.4 Marketing Implications

To develop effective marketing strategies,marketers need to understand consumers comprehension processes in order to design marketing information that will be interpreted appropriately. This requires a consideration of the characteristics of the target consumers and the environment in which consumers are exposed to the information.

6.4Consumers Product Knowledge

6.4.1.products as bundles of attributes. Consumers have different levels of knowledge about product attributes. Knowledge about abstract attributes represents intangible,subjective characteristics of a product. Knowledge about concrete attributes represents tangible,physical characteristics of a product. In addition,consumers attribute knowledge may also contain affective evaluations of each attribute 6.4.2.products as bundles of benefits Functional consequences are tangible outcomes of product use that consumers experience rather than directly.
Psychosocial consequences refer to the psychological and social outcomes of product use.
6.4.3.products as value satisfiers Values are peoples broad life goal. Values also involve the affect associated with such goals and needs.

Bundles of attributes
Arch support Nike running shoes Tread design $59.95 Lacing pattern
Long-wearing
Bundles of benefits Nike running shoes Stabilize heel Run faster
Be physically fit
Value satisfaction Nike running shoes Have good health Live a long life

6.5Means-End Chains Model

6.5.1.Examples of Means-End Chains
A means-end chain is a knowledge structure that links consumers knowledge about product attributes with knowledge about consequences and values.
Attributes
Consequences
Values
Concrete attributes example
Abstract attributes
Functional consequences
Psychosocial consequences
Instrumental values
Terminal values
price
Good quality
Handles easily
Others see me as special
Being center of attention
Self-esteem

6.5.2.Measuring Means-End Chains Measuring means-end chains is best accomplished with one-on-one, personal interviews in which the researcher tries to understand a consumers meanings for product attributes and consequences.
6.5.3.Marketing Implications
A basic advantage of means-end chain models is that they provide a deeper understanding of consumers product knowledge than methods focusing only on attributes or benefits.
The more complete understanding of consumers product knowledge provided by means-end analysis helps marketers devise more effective advertising, pricing, distribution, and product strategies.

Questions
1. What is perception and what is the basic characteristic of it? 2. Suppose that a consumer cannot recall seeing advertisements for any brand of hair spray other than her preferred brand even through she had the opportunity in a given day to see 20 or more competing ads. What explanation can be given? 3. Two consumers are exposed to the same ad. One is in the market for this product while the other is not. How might these two consumers differ in their perception of this ad?
4. Why is figure-ground concept important for designing an effective ad? Give an example to support you answer.
5. What is closure and how can it be used to marketers advantage? Give an example to support you answer. 6. Distinguish between classical conditioning and instrumental conditioning and assess the relative importance of each in an analysis of consumer behavior.

7. Learning which increases the probability of a particular response being emitted is: (a).* Instrumental conditioning (b).*classical conditioning (c).conditioned response (d).hit-miss conditioning 8. change in response to tendencies due to the effects of experience is the definition of: (a).dissonance (b).fatigue *.learning (d).reactive evaluation 9. Learning will occur more rapidly if: (a)*.every response is rewarded (b).there is a large interval between each response and reward (c).the reward is large (d).the respondent has a broad range of experience

10.Tell what is packaging , its benefit and how it can be used to influence consumers behavior. 11.Explain what is branding, brand loyalty and expected satisfaction. Use examples to support your answer. 12.Brand loyalty is a: (a) general attribute across products
(b)product specific phenomenon, with high variability of loyalty across items.

13.In picking a brand name, What criteria should be followed? 14.How do consumers evaluate a brand? Use examples to explain what is conpensatory model and nonconpensatory model for consumers brand evaluation. 15.The product manager for a new brand of skin softener is considering two possible names: Soft Skin versus Dickson Skin Moisturizer. What name would you select? 16. For years, The Linx Company has had a reputation for producing high-quality crystal stemware. Because of economical pressure on consumers, the company plans to market a lower priced glass for the mass market. What branding strategy would you recommend? What are the trade-offs with your recommended strategy?

17.Generic brands are a new entry into the marketplace. Assume you are the manufacturer of the Green Giant canned vegetables. Would you introduce a generic line of canned vegetables? Explain your rationale.
18. Tell the definition of advertising and advantages and disadvantages of major advertising medias.
19. A recent study reveals that a particular ad was much more effective in magazine A than in magazine B, even though the readership of the two magazines is virtually identical. How can you explain this finding?
20. In this chapter we discussed many factors that can influence the perception of ads. What do you perceived as the important principles that can be learned from this chapter for making ads more effective? 21. Many critics contend that too much advertising today is gimmicky and cute. The argument if that creative people are carried away by flashy attention-attracting devices and are forgetting that good advertising must sell. How would you respond to this criticism? 22. Do you believe that recognition and/or recall measures are appropriate measures for advertising effectiveness?
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7.1 Needs
7.1.1 Definition: Need refers to resulting from a discrepancy between an actual and a desired state of being
7.1.2 Types:
Primary needs: physiological necessities Information needs :those learned from the society and culture; e.g.achievement, antonym, power, order, affiliation and understanding.
A Systematic Approach to Needs One way to understand human needs is to picture them as the layers of a pyramid, with the most basic needs at the bottom. Each higher layer then represents needs less important to staying alive but more important to living a satisfied and fulfilled life.

Hierarchy of need theory Physiological needs: hunger, thirst, shelter, sexual drives and other bodily needs. Safety needs: security and protection from physical and emotional harm. Social needs: affection, belongings, acceptance and friendship. Esteem needs: internal esteem factors such as self-respect, autonomy and achievement; and external esteem factors such as self-respect. Self-actualization needs: growth, achieving ones potential and self-fulfillment; the drive to become what one is capable of becoming. 7.1.3 Some Important Points to Remember about Personal Needs Personal needs overlap. The strength of each personal need varies with each person In almost all cases a person is fundamentally motivated by his lowest unfilled personal need.

Needs which are already satisfied have little power to motivate people. There are, on rather rare occasions, exceptions to our statement that men are motivated by their lowest unfilled personal needs. For the most part, personal needs can be filled in more than one way A man who thinks a particular set of needs is satisfied may suddenly find it is not. A salesman can satisfy a customers personal needs in two ways: By his method of presentation and by his product.
7.2 Motives
7.2.1Definition: Motive refers to an activated state within a person that leads to goal-directed behavior. That is to say, motive is the direct reason of the behavior. 7.2.2Types
Primary motives

General motives Secondary motives 7.2.3 Theories of Motivation Need-based Approaches to Motivation Five human needs identified by Maslow: physiological, safety, social, esteem and self-actualization. As each need is substantially satisfied, the next need becomes dominant and a substantially satisfied need no longer motivates. Expectancy theory F= V*E The theory that the tendency to act in a certain way depends on the strength of the expectation that the act will be followed by a given outcome and on the arrtactiveness of that outcome to the individual. It includes, therefore, three variables or relationships.
(1) Attractiveness(Value): the importance that the individual places on the potential outcome or reward that can be achieved on the job. This considers the unsatisfied needs of the individual.

(2) Performance-reward linkage (Instrumentality): the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome. (3) Effort-performance linkage(Expectancy): the perceived probability by the individual that exterting a given amount of effort will lead to performance. Reinforcement-based Approaches to Motivation
(1)reinforcer: Any consequence immediately following a response that increases the probability that the behavior will be repeated.
(2)continuous reinforcement schedule: A schedule that reinforces a desired behavior each and every time it is demonstrated.
(3)intermittent reinforcement schedule: A schedule in which reinforcement is given only often enough to make the behavior worth repeating.
7.3Needs, Motivation and Behavioral strategies

The Q1 Customers Needs

The Q1 customer typical expresses his independence needs by trying to control the presentation by making independent decisions without seeking the advice or opinion of the salesman , and expresses his esteem needs in the following ways:
He makes a bid for respect and admiration; he makes it plain that he wants to be thought of as a powerful. Intelligent, competent person; he seeks recognition for his achievements; and he is eager not to lose face. So he becomes the focus of whatever is being talked about. His entire manner is one in which he tries hard to elicit approval and praise. The Q2 Customers Needs
The submissive-hostile (Q2) customer is largely motivated by security needs, and , to a lesser extent, by biological needs. Typically, the Q2 customer expresses his strong security needs by the following behavior:he is cautious, unenthusiastic about any suggested changes in his present way of doing things, slow to act or make decisions, unwilling to share or provide information, and unwilling to reveal his opinions or feelings. His whole attitude seems to say:Why dont we just leave well enough alone?

The Q3 Customers Needs Basically, the Q3 customer is motivated by social needs. Security needs and esteem needs are lesser but important elements in his behavior. Typically, the Q3 customer expresses his motivating needs by the following types of behavior: he is usually very submissive, dodging any hint of disagreement or argument; he gives in easily on both major and minor points; he wants to be esteemed as a nice guy, and tries to come across as pleasant, cooperative, sympathetic, understanding, good-natured, responsive, helpful, appreciative, and encouraging. The Q4 customers Needs The Q4 customer is largely motivated by a need for self-realization and secondarily, for independence. Typically, the Q4 customer expresses his independence needs by the following behavior: by getting involved in the presentation, offering his ideas and opinions, venting his feelings openly, and, in general, participating as a full partner in the sales process.

Choices 1 Enduring dispositions to strive to attain goals are called: A: attitudes B: intention *C: motives D: aspirations E: recognized problem
2 ___ integrates motives into a purposeful pattern that is reflected in purchasing behavior. A: The evoked set B: The charged need state *C: The self-concept D: The rational-emotional center
3 That Why dont we just leave well enough alone? is always ____customers say. A: Q1 * B:Q2 C:Q3 D: Q4 True-False Questions 1 Motive patterns are not likely to be changed through persuasive activity of any type.(T) 2 The theory of needs based approach to motivation is based on the Maslows hierarchy of need theory .(T) 3 Expectancy theory includes three variables, they are value, expectancy and reinforcer.(F)

Questions 1 Can motives be changed through advertising? Why or why not? 2 Can you distinguish needs with motives?
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8.1 Attitudes Definition and Functions
8.1.1 Definition Attitudes are the amount of effect or feeling for or against a stimulus, such as a person, product, company or idea.
Attitude is comprised of three dimensions or components:

(1)Cognitive The cognitive component refers to the persons beliefs or cognitions about the attitude object.
(2)Affective The affective component involves the persons like or dislike of the attitude object.
(3)Intention or behavioral. The third component, refers to the persons action or behavior tendencies toward the attitude object.

Common in Attitude 1.Attitude has some structure,and it consists of three components: cognitive, affective, intention. 2.Attitude has an object, such as a person, a product or an advertisement, an enterprise, it includes abstract ideal, too . 3.Attitude is the result of learning. 4.Attitude is one of the reasons which affect consumers behaviors. 8.1.2 Functions The Utilitarian function The utilitarian function of attitudes relates to the concept that people express feelings to maximize rewards and minimize punishments received from others. The Ego-Defensive function

The knowledge function Attitudes may also serve as standards that help people to understand their universe. As such, attitudes help a person to give meaning to the unorganized and chaotic world.
The value-expressive function The value-expressive function expresses a persons central values to others. Thus it has also been called the social identify function.
8.2 Attitude Formation and Change

8.2.1 Formation: BEHAVIORAL LEARNING AND ATTITUDE FORMATION Attitudes may be created directly through the behavioral-learning processes of classical conditioning, operant conditioning, and observational learning. From a classical-conditioning perspective, an attitude is a conditioned response that can be elicited by a conditioned stimulus. MERE EXPOSURE AND ATTITUDE FORMATION Another method through which positive feelings may be formed is through repeated exposures with a stimulus.

8.2.2 Change Communicators have several options for changing an existing attitude.
1.They can attempt to change the perceived evaluation of an attribute.

2..Another strategy involves introducing a new attribute, rather than attempting to change the evaluation of an existing attribute. 3..A third way of influencing attitudes is to change the belief that an object has a particular attribute 4..A forth way is to influence consumer perceptions of the consequences of a behavior. 5.Another way to directly influencing attitudes without necessarily changing beliefs involves influencing consumer attitudes toward the brand. 8.2.3 The Experiential Path to Attitude Change BALANCE THEORY Balance theory dealt with the cognitive relationships between an observer(consumer), another person(a product endorser), and an impersonal object(a brand).The basic

premise of balance theory is that people have a preference to maintain a balanced state among the three cognitive elements. A balanced state was defined as a situation in which the cognitive elements fit together harmoniously with no stress for change. If an imbalanced state is experienced, the person is motivated to change the signs of one or more of the cognitive relations. SOCIAL JUDGMENT THEORY AND INFLUENCING ATTITUDES According to this theory, the same factors that influence psychophysical judgments also influence attitude expression.When individuals form an attitude about an object, they compare the incoming message to their initial attitude ,which acts as a frame of reference for the judgment.
8.3 Attitude and Behavior

8.3.1 Evaluation of Attitude Research in Marketing 1.Assessment of Brand Attitudes Our approach suggests that attitudes toward a brand or product are determined by

salient beliefs about that brand or product. Recall that salient beliefs can be obtained by asking respondents to list the characteristics, qualities, and attributes of the brand or product under consideration.
2. Brand Attitudes and Consumer Behavior To predict and understand consumer behavior we have to consider attitudes toward the act, of buying or using a product rather than attitudes toward the product itself. 3.Correspondence between attitudes and behavior We argued that the correlation between any two variables (the behavioral criterion, measures of intention, attitude and subjective norms, beliefs) depends on the extent to which they correspond in their action, target, context, and time elements; the correlation will decreased as the number of elements on which they fail to correspond increases. 8.3.2 Prediction of Consumer Behavior Purchase Intentions and Actual Behavior In sum, consumer behavior is typically found to be accurately predicted from measures of intention that correspond to the behavior criteria.

To demonstrate the ability of our theory to predict purchase intentions, we asked 37 college students to indicate their intentions to perform two or three different behaviors with respect to each of five brands in three product classes. Table8.1 Intentions, Brands, and Product Classes Used in Study of Buying Intentions PRODUCT CLASS Automobile 1.Chevllet 2.Ford Brand 3.Volkswagen 4.Jaguar 5.Mercedes 1.Buy Toothpaste 1. Crest 2.Colgate 3.Gleem 4.Pepsodent 5.Ultra-Brite 1.Buy 2.Buy in next 2 weeks Beer 1. Michelob 2.Budweiser 3.Busch 4.Miller 5.Drewry 1.Buy 2.Buy for my own use in the next week
Intentions 2.Buy in next 3 Years
3.Buy to serve to my friends at a party

1.Purchase intention I intend to buy Miller beer for my own use in the next week. Likely--------------------------------------------------unlike 2..Attitudes toward the behavior Buying Miller beer for my own use in the next week would be wise-------------------------------------------------be foolish have good consequences---------------------------have bad consequences 3.Subjective norm Most people who are important to me think I Should------------------------------------should not Buy Miller beer for my own use in the next week. Conclusion It was found that in each case,, a persons buying intention could be predicted with considerable accuracy from knowledge of his corresponding attitude and subjective norm.
8.3 Fishbeins model It is one of multiattribute attitude models which focus on consumers belief about multiple product or brand attributes. In the model, attitude toward an object is a function of two factors: the strengths of the salient beliefs associated with the object and the evaluations of those beliefs.
A0=
biei
A0 = Attitude toward the object bi = The strength of the belief that the object has attribute i ei = The evaluation of attribute i n = The number of salient belief about the object
Belief strength( bi ) Extremely Unlikely 1 2 3 4 5 6 7 8 9 10 Extremely Likely Belief evaluation( ei ) Very Bad -3 -2 -1 0 +1 +2 +3 Very Good

Choices 1 which of the following is not one of the four functions of attitudes defined by Daniel Katz? A: the utilitarian function B: the value-expressive function C: the ego-defensive function D: the beliefs function E: the knowledge function 2 Which of the following is not a true principle of attitude change ? A: attitudes are easier to change than needs B: weakly held attitudes are easier to change C: attitudes of consumers with less confidence in brand evaluation are easier to change D: culturally derived attitudes are easier to change E: attitudes are easier to change if there is a low level of ego-involvement 3 Trying to convince non-users of a brand that it provides useful benefits is an attempt to change attitudes by using ____ A: the utilitarian function B: the value-expressive function C: the ego-defensive function D: the evaluative function E: the knowledge function True-False Questions 1 In marketing situations, attitude change is probably best achieved by one or a few exposures, each of which encompasses a fairly large discrepancy.

2 Attitude consistsof three components, that is , cogntive, affectice and conative. 3 We can changes the consumers behavior by changing the attitude to the brand. Questions 1 What explanations can you give for the contradictory evidence in the literature until recently regarding the relationship of change in attitude to a change in behavior? Is attitude change a valid marketing goal? 2 What is the relationship between evaluative criteria, beliefs, attitude and intention? 3 How can we change the existing attitudes? Answer 1 D 2 D 3 A 1F 2 T 3 T
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9.1 Personality
9.1.1Definition In consumer behavior, personality is defined as consistent responses to environmental stimuli. 9.1.2 Predicting Buyer Behavior People with common personality dimensions must be homogeneous in terms of demographic factors such as age, income, or location so that they can be reached economically through the mass media. Measures that isolate personality variables must be demonstrated to have adequate reliability and validity. Personality differences must reflect clear-cut variations in buyer activity and preferences, which, in turn, can be capitalized upon meaningfully through modifications in the marketing mix.

Market groups isolated by personality measures must be of a sufficient size to be reached economically.
9.2 Life-Style
9.2.1Definition: A life-style is broadly defined as a mode of living that is identified by how people spend their time(activities); what they consider important in their environment(interests);and what they think of themselves and the world around them(opinions). 9.2.2 Measuring Life-style Characteristics Measuring Life-Style by Activities, Interests, and Opinions (AIO)
Measuring Life-style by Purchase Inventories

9.2.3 Uses of Life-style Characteristics in Marketing Strategy Life-style characteristics have been used with increasing frequency for four purposes:
Market Segmentation

Advertising and Product Positioning Media Guidelines Defining New Product Target
9.3 Self-Concept
9.3.1Definition: The self-concept, or self-structure, may be thought of as an organized configuration of perceptions of the self which are admissible to awareness. It is composed of such elements as the perceptions of ones characteristics and abilities; the percepts and concepts of the self in relation to others and to the environment; the value qualities which are perceived as associated with experiences; and objectives, goals, and ideas which are perceived as having positive or negative valence.
9.3.2 Form
Self-Evaluation People often judge their behaviors by the criteria of the social acceptance, that can form the self-conception.

Reflection Evaluation Reflection evaluation refers to judging oneself by the model of others self-conception Social Compare Peoples self-conception is determined depending on observing themselves through relations with others. 9.3.3 Self-concept theory High discrepants are dissatisfied with their self-image and wish for great and unrealizable changes; Middle discrepants are somewhat dissatisfied and want to improve themselves in a .realistic way; Low discrepants have accurate and often severe notions of themselves and little tolerance for fantasy. 9.3.4 Self-conception and Consume Behavior Predict product brands

Base on that (1)People always try to maintain and enforce the self-expression ,(2) People are used to maintain the suitable, identical self.
Predict new products

New products are always produced according to the consumers self-conceptions.
9.3.5 Dress and Self-concept Dress is very important in the form and development of individual self-conception. 1.Decide the sex and role trains 2.Help individual to conclude the acceptance of individual and group . (1) The same age person or group (2) The public starsgroup (3) the important others group 3.Self-valued

4. Self-defense In many cases, dress offers the real clues of the character, because it concludes who the person is , what he is doing, what he believes.
9.4 Personality and Behavior

9.4.1 Consumers Capacity and Purchase Behavior Capacity is defined as the personality psychology trains that people can finish the activity fluently and affect the efficiency directly. 1.Observation and Attention At the most times, the richer the consumers experience is, the sharper the observation and attention is. 2..Identification and Judgement Identification refers to the capability with which the consumer can identify and discern goods. It must on the base of the consumers analysis and judgement. The degree of the consumers identification to some goods is about the experience and the knowledge to it .The richer the experience and the larger the knowledge, the stronger the identification.

Judgement refers to the capability with which the consumer can judge the function, quality of the goods, and make the conclusion of the value. The base is the consumers identification. The degree of it affects the realization of the consumers purchase behavior. 3.Decision- Making Ability It is the most important capability in the consumers purchase behavior and decides directly the identification.
9.4.2 Using Personality Characteristics in Marketing strategy Market Segmentation
Advertising and Product Positioning

Media Guidelines New Product Users

Choices 1.____ is defined as responses to the outer stimuli in the same way . A: Needs * B: Personality C: Intention D: Attitude 2. In A.I.O terminology, an ____is something generating both excitement and attention. A: activity B: attitude C: intention * D: interest E: opinion 3.In A.I.O terminology, an ____is manifest behavior, such as shopping. *A: activity B: attitude C: intention D: interest E: opinion 4. Life-styles are represented by consumer____ A: brand attitude B: needs *C: activities D: perceptions E: beliefs 5.Life-styles research has been used by marketers to provide guidelines for ____ A: identifying target markets B: advertising C: product positioning D: media selection *E: all of the above 6.When somebody always judges himself by the other ideals, we can call that kind of the formation of the self-conception_____. A: self-evaluation *B: reflection evaluation C: social compare D: self formation

1. Lifestyles are derivatives of a consumers personal value system and personality.(T)
2.Lifestyle is the operational measure of psychographics.(F) 3. Personality has not been demonstrated convincingly as a useful means of market segmentation.(T) 4. Consumer with a wide discrepancy between their actual and ideal self-image are more likely to be influenced by appeals to fantasy.(T) Questions 1. What is the self-conception? How is it formed? Would measurement of self-concept be of any use to a brand manager who has full responsibility for the marketing of a new brand of household detergent? 2. How the dress forms and developes the self-conception?
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Part4 Environmental Influences on Consumer

Chapter 10 Chapter 11 Chapter 12 Chapter 13 Values Chapter 14 Influences Chapter 15 Leadership Household Decision Making Group Factors Social Class Influences Cultural Influences and Consumer Subcultural and Cross-Cultural Communication and Public Opinion
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Chapter10 Household Decision Making
Chapter 10 Household Decision Making

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What is household? The U.S, Census Bureau defines a housing unit as having its own entrance(inside and outside ) and basic facilities .If the housing unit has people living in it ,they constitute a household. what is family? A family is a group of two or more persons related by blood, marriage, or adoption who reside together.In view of function it can be defined as the basic unit of society , in which two or more persons live together for personal and municipal purpose. So family is one kind of household.
10.1 Family Influences on Consumer Behavior

Family has great influence on its members. Because:
Childrens early contacting with consuming is in family.

Family determines its members consuming model to a large extent. Most of products are focused on families.

10.2 Types of household
Traditional household
Nontraditional household
Married couples without children Single-parent families with children under 18 Individuals share with others Unmarried cohabitants
Types of Family
Family of procreation: Family established by marriage. The nuclear family: It is the immediate group of father, mother, and child living together. The extended family: It includes the nuclear family plus other relatives, such as grandparents, uncles and aunts, cousins, and in-laws.
10.3 Family Life Cycle (FLC)

FLC is used most often in classification. It describes how families change over time. FLC includes some factors such as marriage statues , age of family members an their working situations and family scale.
TABLE10.1 Nontraditional household life cycle

sequence 1 young couples with children young divorced couples single parents with older children unmarried older sequence 2 divorced young spouses with none child middle-aged couple with none child old couple with none child sequence 3 young couple with children middle-aged divorced parents middle-aged remarried parents with children of their own sequence 4 young unmarried spouses without a child middle-aged couple without a child old couple without a child widowwidower

TABLE10.2 Traditional family life cycle

Stage Married couples Childbearing couples (the eldest infant is less than 30 months old Families with preschool children (eldest 2 to 6 years old) Families with pre-teens (eldest 6 to 13 years old) Families with teens (eldest 13 to 20 years old) Families with young adults (with the eldest gone to the youngest getting ready to leave) Post-parenting couples Aging couples (retirement and beyond) Goals Forming a healthy relationship, preparing for parenthood, and fitting in to their new family system. Creating a healthy environment for the birth and growth of a child, restructuring their relationship to keep it healthy. Helping develop the childs interests and talents, responding to their needs, and adapting to parental stress and a lack of privacy. Fostering a healthy educational environment, fitting in with other families. Discovering new interests and needs, establishing freedom and responsibility for their teen Developing a nurturing home to return to, encouraging young adults first steps into their own lives. Building bonds among family generations, establishing a new marriage relationship . Dealing with loss, leaving the family home, adjusting to aging and adapting to retirement

10.4 A Mode of Family Decision Making

Postpurchase Evaluation Individual Decision Making
Need Arousal
Joint Decision Making
Role Specification
Consumption
Conflict Resolution
Figure10.1 A Mode of Family Decision Making

Joint Decision Making

When the level of perceived risk in buying is high. When the purchasing decision is important to the family. When there are few time pressures. For certain demographic groups.
-Joint decision making is less likely among and upper and lower
socioeconomic groups. -Younger families (those under 24) show a higher frequency of joint decision making. -Joint decision making is more likely if there are no children in the family. -Joint decision making is more likely if only one of the parents is working.
Roles in family decision making The information gather The influencer The decision maker The purchasing agent The consumer
Conflict in family decision making

In problem solving there are three means of decision making that are likely to consensus among family members:

Experts in the family can be relied on to determine the best alternative; Family discussion may lead to a better solution than that proposed by any one member of the family; and Multiple purchases may be a way of avoiding conflict.
10.5 Husband-wife Influences
By type of product considered

Davis and Rigaux studied family decision making in Belgian households for twenty-five products and classified these products into four categories: Figure 10.2 Husband-wife Roles in Family Decision by Product Category
Husband-dominant.
Wife dominant. Autonomic Syncratic (joint)
By stage in decision making

In the Davis and Rigaux study, husband-wife influences were studied in three phases of the decision process:

Figure 10.2 Husband-wife Roles in Family Decision by Product Category Wife clothing Food
RELATIVE INFLUENCE OF HUSBANDS AND WIVES
WIFE DOMINANT
Husbands clothing
Kitchenware Handbag
SYNCRATIC
Furniture Refrigerator Vacation Financial plan Car
AUTONOMIC Camera TV
Sports appliances Hardware
Lawnmower
HUSBAND DOMINANT 100%
50%
0%
EXTENT OF ROLE SPECIALIZATION

Problem recognition Information search The final decision
By type of decision
Davis defined six types of decisions for each product: When to buy Where to buy How much to spend What make or type to buy What model or style to buy What color to select
By family characteristics
Various studies show that a husband will be more influential in the purchase decision than his wife when:

His level of education is higher than his wifes His income and occupational status are higher than his wifes His wife is not employed
The couple is at an earlier stage in the family life cycle (young parents), or
The couple has a greater than average number of children.
Changing patterns of
husband-wife influences
Changes in marital roles have led to greater influence by the husband in decisions traditionally assumed by the wife , and greater influence by the wife in areas traditionally assumed to be the domain of the husband.
10.6 Parent-child Influences
Consumer socialization
It refers to how children acquire knowledge about products and services and various consumption-related skills(such as how to search for bargains). Methods of consumer socialization

Observation and imitation Experience TV and schools Other children Stages of consumer socialization Observation Providing needs Make a choice Assistant purchase Independent purchase Parents roles in consumer socialization Authoritarian parents Neglecting parents Democratic parents Permissive parents
Effect in two generations
Childs role in the purchasing process Parents-child interaction

10.7 Family Decision Making and Marketing strategies
Content of advertising messages. The nature of family decision making will influence the content of ad messages. For example, in deciding on an automobile, the husband and wife are likely to place different values on benefits such as performance, style. One solution is to direct separate ad messages to husband and wives. Media The selection of ad media will be based on who is involved in the decision. The husband and wife contact different media. Product development
Products designed for one member of the family provide the marketer with less of a problem than products designed for two or more members.
Pricing
The fact that husbands generally determine how much to spend and wives determine what to buy means that price levels must reflect the price sensitivity of those individuals.

Distribution Family decision making may also influence distribution strategies. If decisions are made jointly, stores may be required to stay open longer to accommodate both the husband and the wife.
10.8 The Measurement of Family Influence
Whom to interview
Three approaches have been used in determine husband-wife influences: Interview both together Interview each separately Interview the wife to determine her influence and the husbands
Whom to measure influence

10.9 Families in The Future
Little scale Economical conditions will better, so the expenditure will increase. More spare time. Family entertainment and social iteration will be more.

More normal education. More expectation on life The old will be better taken good care of.
10.10 Social significance of Family Influence
Conflict between parents and their children increased Socialization of consumers who are not ideal Alternative scheme

Choices
1.One factor that is important in family decision making but not in individual decision making is : A:stimulus expose B:changes in attitudes C:role specialization D:advertising awareness E:post-purchase evaluation
2.The individual who has the role of influencing the type of stimuli the decision unit is exposed to is known as the: A:information-gatherer B:influencer C:decision maker D:purchasing agent E:consumer 3.Joint decisions are more likely when A:the product is purchased frequently B:there is little time to make a decision C:the product is technologically complex D:the level of perceived risk in purchasing is high E:the product is likely to be used by more than one family member 4.When family members agree about goals, the primary strategy for conflict resolution is through A:consensus B:accomodation C:coercion D:bargaining E:persuasion

5.When family members disagree about goals, the primary strategy for conflict resolution is through: A:consensus B:accomodation C:problem solving D:budgetary allocation E:role specialization 6.Wives tend to make the decision for: A:automobiles B:food C:housing D:vacations
E:garden tools
7.A joint decision is most likely to be made for A:small appliances B:food C:housing D:automobiles
E:garden tools
1.Expressive roles are more likely to be performed by the husband, instrumental roles by the wife. 2.Joint decision making is more likely when there is little time pressure in making the decision. 3.Conflict is norm in family decision making. 4.The profile of the husband-dominant family suggests a family with more traditional values and attitudes towards marital roles.

5.The mother is the most important source of information for a child in evaluating alternative brands. 6.Most studies that have interviewed husbands and wives separatly have found little agreement between them regarding their respective influence on the purchase decision.
Answer
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11.1Types of groups
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groups: they are groups that the consumer frequently comes into contact with each other. e.g. business groups. They have no formal structure. E.G. ports groups that get together once for a while. Secondary groups: they are groups that consumers meet infrequently. We have much interest in primary groups, because they have much influence on consumers and their behaviors can easily be predicted.
Primary
Formal groups. They have a more formal structure. Informal groups. Big groups. People dont know all the people in the group. Small groups. People know each other. It has large influence on people.

Anticipatory groups They are groups the individual anticipates joining at some future time and has direct contact with.
Symbolic groups They are groups that an individual is not likely to belong to, despite the acceptance of the groups beliefs and attitudes.
11.2 Reference group influences

Reference group: a group that serves as a reference point for the individual in the formation of his or her beliefs, attitudes, and behavior.
11.2.1
Types of reference groups
Membership group: be a member of a reference group . Aspiration group: aspire to belong to a group .
Disclaimant group: belong to or join a group and then reject the groups values . Avoidance group: regard membership in a particular group as something to be avoided .

POSITIVE ATTITIUDE NEGATIVE ATTITUDE
MEMBERSHIP Positive Membership Group Disclaimant Group
NONMEMBERSHIP Aspiration Group
Avoidance Group
TYPES OF MEMBERSHIP GROUPS INFORMAL Family/Peer Groups Shopping Groups Sports Groups FORMAL School Groups Business Groups Alumni Groups Tenant Organizations
PRIMARY
SECONDADRY
TYPES OF ASPIRATION GROUPS ASPIRATIONAL CONTACT NO CONTACT Anticipatory FIGURE11.1 Types of reference groups
Symbolic
11.2.2
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The nature of reference groups

Norms: Norms are the rules and standards of conduct established by the group.
Values: Values are the believes shared among groupers about which conduct is suitable and unsuitable.
Roles: Roles are functions that the group assigns to the individual in order to attain group objectives. Status: Status refers to the position the individual occupies in the group.
Socialization: The process by which the individual learns the groups norms and role expectation is called socialization. Power Expert power: To have experience and knowledge. Referent power: The basis of referent power is the individuals identification with members of the group. Reward power. Reward power is based on the groups ability to reward the individual.
11.2.3 Reference group influences on the consumer
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Informational influence: A consumer will accept information from a source if he or

she believes the information will enhance knowledge about product choices.
Comparative influence: The basis for comparative influence is in the process of

comparing oneself to other members of the group would be supportive.
Normative influence: Normative influence refers to the influence exerted by a

group to conform to their norms and expectation. (TABLE11.1 TABLE11.2)
11.3 Application in Marketing Strategy
Advertising strategy
act as informational influence role act as comparative influence role act as normative influence role
Personal selling strategy

the significance of marketing strategies of informational influence and comparative influence
the significance of marketing strategies of bargaining power

TABLE 11.1 Types of Influence Exerted by Reference Groups Nature of Influence Perceived Characteristics of Source Credibility Type of Power
Objectives
Behavior
Informational
Knowledge Selfmaintenance and enrichment Reward
Expert
Acceptance
Comparative
Similarity
Referent
Identification
Normative
Power
Reward or coercion
Conformity
11.4 Social significance of reference group influences
try to reduce the pressure of reference group to use the product the responsibility of marketing staff when describe reference group influences

TABLE11.2 Conditions Reflecting Informational,Comparative, and Normative Influences

Informational influence 1. The individual seeks information about various brands of the product from an association of professionals or independent group of experts . 2. The individual seeks brand-related knowledge and experience (such as how Brand As performance compares to Brand Bs ) from those friends,neighbors,relatives ,or work associates who have reliable information about the brands . 3. The individuals observation of what experts do influences his or her choice of a brand (such as observing the type of car which police drive or the brand of TV which repair people buy ). Comparative influence 4. The individual feels that the purchase or use of a particular brand will enhance the image which others have of him or her . 5. The individual feels that the purchase of a particular brand helps show others what he or she is ,or would like to be (such as an athlete ,successful businessperson ,etc. ). 6. The individual feels that those who purchase or use a particular brand process the characteristics which he or she would like to have. 7. The individual sometimes feels that it would be nice to be like the type of person which advertisements show using a particular brand . Normative influence 8. The individuals decision to purchase a particular brand is influenced by the preferences of people with whom he or she has social interaction . 9. The individuals decision to purchase a particular brand is influenced by the preferences of family members . 10. The desire to satisfy the expectation which others have of him or her has an impact on the individuals brand choice .

Choices
1.Which of the following is membership group A:symbolic groups B:avoidance groups C:aspirational groups D:disclaimant groups E:none of the above 2.The most important influence on purchasing decisions is generally provided by A:primary informal groups B:secondary informal groups C:primary formal groups D:secondary formal groups E:aspiration groups 3.A consumer whose main objective is self-maintenance and enrichment is most likely to accept which of the following types of influence A:informational B:material C:comparative D:cultural E:normative 4.Normative influence is most closely linked to which of the following types of power A:expert power B:bargaining power C:referent power D:reward power E:coercive power
1.Both membership and aspiration groups are reference groups.

2.A disclaimant group is a membership group. 3.Most group influence on consumer purchasing behavior is achieved through reward power. 4.Informational influence is an overrated aspect of group influence.Much of what passes for informational influence is really normative influence.
Answer
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Social class Social class refers to the position of an individual or family on a social scale based on criteria valuable to society. Social Stratification Society can be divided into several stratification, each has the same social status. The simple classification is the blue collar and the white collar.
12.1 The importance of social class to marketing strategy
Market segmentation. Different social classes reflect different values, and these
differences are manifested in consumer buying behavior.
Advertising. The symbols used in ad must be understood by the social class to

which the ad is directed.
Distribution. Lower class consumers are more likely to shop in discount stores,
in local stores. Upper class consumers are likely to shop in regular department

Product development. Social class may react differently to product characteristics and styles.
12.2 The Nature of Social Class.
Social classes have status. Social classes are hierarchical.
Social classes serve as a frame of reference for individual norms, attitudes, and behavior.
Social classes are dynamic.
Social classes discourage contact with members of other class groups.
12.3 Social Class Categories and Measurement
Index of Status Characteristics(ISC)

The ISC is based on the following socioeconomic indicators:

1.Occupation(weighted by a factor 4) 2.Source of income(weighted by a factor3) 3.House type(weighted by a factor 3) 4.Dwelling area(weighted by a factor 2)
Coleman-Rainwater Social Standing Hierarchy 1.The Upper Upper Class(0.3% of the population) 2.The Lower Upper Class(1.2% of the population) 3.The Upper Middle Class(12.5% of the population) 4.The Lower Middle Class(32% of the population) 5.The Upper Lower Class(38% of the population) 6.The Lower Lower Class(16% of the population)
12.4 The Limitation of Social Class As A Determinant of Consumer Behavior
What is the advantage of using a composite social class index over a simper onedimensional classification such as occupation or income?

What happen if there is social class incongruence (e.g., an individual is high in one component of the social class index and low in the other, such as high occupation and low education)?
Are there significant difference in socioeconomic status within a social class ?

Is consumer behavior likely to be influence by ones social class as a child as well as by ones current social class? Are social classes merging into one giant middle class? If so, what is the point of emphasizing social class if it is unlikely to differentiate consumer behavior?
12.5 Differences in behavior between classes.
Purchasing behavior Shopping behavior Media behavior
Pricing behavior
Information search behavior
Communication behavior

Choices
1.The most important distinction between social classes is that they are likely to have different A:life-style B:brand perceptions C:patterns of group influence D*:value systems E:personality characteristics 2.The group that is most likely to engage in impulse purchasing is the A:upper-upper class B:lower-upper class C:upper-middle class D*:lower-middle class E*:upper-lower class F*:lower-lower class 3. The group that is most likely to emphasize quality and value in purchasing is the A*:upper-upper class B*:lower-upper class C*:upper-middle class D:lower-middle class E:upper-lower class F:lower-lower class
4.The reason that upper and upper-middle class consumers tend to engage in more active leisure activities than lower-class consumers is A:to make up for less activity in their occupations B*:as a means of self-ecpression C:because of more disposable income D:to spend more time with their families E:because they are more achievement oriented

1.Income is the best criterion of social stratification in Chinese society.
2.Lower class consumers tend to be more oriented to traditional values.

3.Social classes are face to face groups that exert direct influence on the individual consumer.
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Culture refers to the norm, beliefs, and customs that are learned from the society and lead to common patterns of behavior. As in the study of consumer behavior, it refers to the complex of values, ideas, attitudes, and other meaningful symbols that serve humans to communicate, interpret, and evaluate as members of society.
13.1 The Nature of Culture
Cultural values Rokeach defines cultural values as beliefs that some general state of existence is personally and socially worth striving for.
Characteristics of cultural values
1.Cultural values are learned.

2.Cultural values are guides to behavior. 3.Cultural values are both permanent and dynamic 4.Cultural values are socially shared.
Traditional cultural values in American society

1.Materialism
2.Individualism 3.Youthfulness
4.Informality
5.Other values :process, freedom, activity and personal achievement
Measurement of cultural values

1.Ethnographic study

2.Cultural value inventories 3.The Monitor Service , VALS(Value and Life-Style) 4.Content analysis
Subcultural and Cross-Cultural Influences

Features of subculture
A subculture may be defined as a subdivision of national culture, based on some unifying characteristic, such as social status or nationality. Some characteristics are: race, region, age, sex, etc. By region, consumers could be identified as subcultures because of differences in tastes and behavior. Eastern, western, and southern consumers differ in consumption habits. The subculture is a very important criterion for dividing different markets. Types of Subculture Age 1.YA(Young Adult) 2.New generation 3.Baby Boomgeneration 4.Elder
Geography Religion Nontraditional Subculture: Homosexual Group Ethnic
Difference of Cross-culture Cross-cultural influences are crucial to international marketers. The greater the difference is, the more different the marketing strategy is. Some factors to be considered are:
Difference Difference Difference Difference Difference Difference Difference in in in in in in in language. consuming style. the using of products. family decision. dividing potential markets. the meaning of symbolization. the economic environment.
13.2 Cultural Values and Consumer Behavior
Means-end
chain Values
Attributes
Consequences

Ladder links
Ladder links contains a series of visit to consumerby which to determine the links of attributes, consequences and values. Marketers can make use of the ladder links in the means-end chain to develop marketing strategy 1.Information element 2.Consumers benefit 3.Leverage point 13.3 Culture and Product
the role of product symbolic system

1.to convey social position
2.to express themselves

3.to share life experiences 4.sense of material comfort 5.has commemoration significance which remind consumers their old memory
Mark theory
Connect product with fiction and dream

13.4 Culture and Consumption
Routine consumption The routine behavior is a series of symbolic movement which is frequently redundant according to certain order. There are three characteristics:
1. Often appears in the form of consumption products including some routine products 2. Often defined why, who and how to use the products 3. Requires the role function has stipulated to certain people
Scared consumption and real consumption Scared consumption expenses commodity that can promote the cooperation, be advantageous in nature protecting and make business affairs better. Real consumption expenses commodity that can promote the technological development, conquer the nature and strengthen the competition.

13.5 Changes in Cultural Values from The 1990s
New reality
Young and youth More strong traditional significance Emphasis on self-realizationself-fulfillment) New materialism
13.6 Influence of globalization on consumer behavior
Global media Globalized young people Universal population trend Reduction of trade barriers Americanization of consumer values
13.7 Application in marketing strategy Market segmentation. Value orientation is closely associated with consumer needs. The me-oriented self-enhancement segment wants product performance, the we-oriented wants prestige and style. Product positioning. Study demonstrates that car positioned to the mesegment must emphasize performance and quality; car positioned to the wesegment must emphasize style and size.
Promotional strategy. Ad aimed at the me-segment should emphasize the utilitarian aspects, ad for the we-segment should appeal to prestige, luxury.

Choices
1.Cultural values have not been widely used in marketing because A:they are not related to consumption behavior B:they have not been adequately identified by social researchers C:empirical measures of cultural values cannot be developed D:cultural values deal with broad purchasing patterns and most marketing studies deal with specific brands E:all of the above
2.Which of the following is a key cultural value in the United States A:hedonism B:tradition C:conformity D:formality E:youthfulness
3.An expression of a me orientation is A:greater fashion consciousness B:more concern for family norms C:an emphasis on immediate gratification D:an emphasis on the work ethic E:a desire for more functional and less expensive products 4.Because of changes in cultural values, advertising is unlikely to increase the demand for

A:diet drinks B:headache remedies D:bicycle E:computerized games
C:sterling silverware
1.Cultural values are guides to behavior. 2.The trend to voluntary simplicity reflects a reaction against material possessions. 3.Cultural values can be used to segment markets 4.Cultural values are product specific. 5.The proper role of advertising is to appeal to existing cultural values rather than attempt to change them.
Answer
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Choices
1.There are significant differences between blacks and whites in A:shopping behavior B:brands purchased C:media behavior E:all of the above
D:pricing behavior
2.The danger of using a universal appeal in various foreign markets is that A:consumers in neighboring countries might get confused B:consumers might get bored with the campaign C:the campaign is less likely to be changed D:the campaign is less likely to meet local needs and to conform to local customs 3.The danger of using a localized appeal in various markets is that A:consumers in neighboring countries might get confused B:consumers might get bored with the campaign C:the campaign is less likely to be changed D:none of the above
1.Subcultures are segment of society whose consumers have common norms and characteristics that differ from society as a whole.

2.American businesses are more sensitive to the needs of foreign markets than foreign businesses are sensitive to the needs of the American market.
Answer
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14.1 The communication model
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Communication: it is the process in which the sender sends out information and the receiver receives the information.Communication includes communication within groups and communication across groups. The former refers to word-ofmouth communication, the latter refers to diffusion. Word-of-mouth communication between consumers is the most important source of information and influence in consumer behavior. The individual who influences the purchasing of another is the opinion leader, the consumer being influenced is the follower. It is more likely to be important when the product is visible, distinctive, and important to the belief system. Motives for transmitting word-of-mouth communication

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product involvement is likely to encourage a consumer to transmit information an influence. Another motive is to erase any doubts about products any choice. A third reason is involvement with the group. The greater the importance of the group, the greater the likelihood the consumer will seek to transmit information to it.
Motives for seeking word-of-mouth communication
one reason is that friends and relatives are a good source of product information. The second is that information from personal source facilitates the purchase task.
Diffusion
Diffusion is the process by which the adoption of an innovation is spread by communication to members of a target market.

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In marking, two types of communication are required: communication from marketers to consumers, and word-of-mouth communication between consumers . The advertisers should use an information campaign to attract those who are not familiar with the new product, and should try to stimulate favorable word-of-mouth communication to try to encourage adoption.
Model of communication
Source channel terminal
Sender
coding
medium
receiver
decoding
Feedback

14.2 Communication analysis
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receiver: all the receivers are individuals with their own characters, and they compose consumers. communication strategy in market dividing: some groups have similar characters, so we communicate with those groups in the same way.
Sender: It can be divided into individual source and non-individual source.
The credibility of the source has great influence on the effects of communication.
Non-human communication has greater credibility than human communication. The influential factors are: The sender of the information. The medium. E.g. authority of ads medium. The representative. Experts have great credibility, but their influences have limits.

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14.3 Medium
two factors which influence communication effects, they are: The mediums persuasive power and influence. The mediums relation with the receiver.
If we want to choose effective mediums, we must take into account some factors. medium can be overlapped( we can watch TV and listen to radio at
same time), so we can increase ads frequency. Some products can only be advertised by certain mediums, so we must concede the characters of products.
14.4 Message
There are two ways we use to present messages, they are: one-sided message. Only mention the essence of the message. Two-sided message. Mention two sides of the message, with comparing, used in competitive products.
Part4 Environmental Influences on Consumer In cases when the audience is unfriendly, when we knows that opposite arguments
14.5 Public opinion directing process
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exist, or when it is likely to hear arguments from the opposition, two-sided message may be effective.
Analysis of public opinion directing process

What is public opinion it is informal human influence that is acquired by informal human communication. it includes the director and the follower. Characters
It happens between two or among many persons, it represents certain business departments, and not for the purpose of selling. It has some relation with commodity exchanging. Two-sides: the influenced and the follower influence each other. It happens frequently, about one-third of consumers can serves as directors in one area.

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Model of opinion leadership public opinion directing model public medium the receiver
the director
Environment
Public opinion take place between individuals who use same or similar commodities, one of them serves as the follower, and the other as the director, and always they live nearly.
Information in public opinion directing
The information is very reliable, because the director is reliable and the director doesnt gain any profits.

LAST CHAPTER
The reliability is reinforced by two-sided information. Information and suggestion. Not only do People want to receive information, but also they want to gain suggestions.
Characters of directors
They show great interest in certain commodities and have abundant relevant knowledge. They are renovators. They are self-reliance, open-headed, sensitiveand their emotions are stable. They are in good terms with some mediums. They are in the same social class with receivers.
Effects of the message
One-side or two-side message. Comparative ads. It is a kind of ad in which a competitor is named. Humor in ads. Humorous messages are used as a means of attracting attention and because advertisers believe that humor can be persuasive.

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Source effects Source credibility has great influence, some ads does not exert as much influence on the consumer as personal sources is that consumers are more likely to believe messages from friends.
Media effects Ad must ensure the message reaches the intended target, so we should select the media that can best reach them.
Strategy of opinion leadership Identify opinion leaders directly. Opinion leaders can be identified through company
purchase records. Because of the close relationship between opinion leadership and new product adoption, it is possible to identify consumers who use the product first.
Creating opinion leaders. It is possible to create opinion leaders for a particular

product.

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Simulating opinion leadership. Ad can simulate opinion leadership by portraying conversations between typical consumers.
Stimulation. Ad can try to encourage consumers to talk about the product, one strategy is to generate curiosity
Measuring opinion leadership
The sociometric technique. Members are asked whom they would go to for advice and information.
The key informant method. Key informants in a social system are asked to identify opinion leaders.
The self-designating technique. Consumers are asked to determine the degree to which they as an opinion leaders.

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Choice
1). An individual who is both an opinion leader and an information seeker is referred to as a A.socially itergrated consumer B. Socially independent consumer C. socially isolate consumer D. Innovative communicator 2). An individual who is an opinion leader but not an information seeker is referred to as a A.socially itergrated consumer B. Socially independent consumer C. socially isolate consumer D. Innovative communicator 3). Opinion leaders are most likely to be distinguished from followers by the fact they tend to be more-----. A. compulsive B. Self-confident in purchasing the product C. Dogmatic D. Innerdirected. 4). Which of the following would be the most difficult strategy to implement-----. A.identify opinion leaders B. Create opinion leaders C. Stimulate the process of opinion leadership in ads. D. all are equally hard.
5). Which of the following would be the easiest strategy to implement-----. A.identify opinion leaders B. Create opinion leaders

6). When a researcher seeks to identify opinion leaders among a broad and diverse group of consumers, the best technique to use is the------. A.sociometric technique C. Psychometric technique B. Key informant method D. Self-designating technique
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7). The sociometric technique can best be used in which of the following situations----. A.identifying opinion leaders for designer jeans among college students. B. Identifying opinion leaders for selection of business periodicals among businessmen. C. Identifying opinion leaders for enlistments among Army recruits. D. identifying opinion leaders for the selection of a mew salt-free diet food among residents of a local retirement community.
Questions
1) It was suggested that an alternative categorization to an opinion leader is a social communicator since individuals most likely to transmit information on a product are also more likely to receive such leader and a social communicator in terms of

LAST CHAPTER
the nature of influence? the role of the influencer? possible characteristics of the influencer?
2) Marketing studies have not identified any distinctive characteristics of opinion leaders. Given the difficulty in identifying opinion leaders, can the concept of opinion leadership be used for purposes of market segmentation? 3) Is it feasible to attempt to create opinion leaders? If so, for what types of product categoties?
4) Would you recommend a sociometric technique to measure opinion leadership in evaluating patterns of influence in the Adoption of a new product in a retirement community? Purchase if a new line of high-styled jeans?
Answer
1A2B3B4B5D6D7D
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INDEX
CASES:
Case1 Case 2 Case 3 Case 4 FLORIDA GRAPEFRUIT GIORGIO BEVERLY HILLS BUYING A PERSONAL COMPUTER HEALTH CARE SEARCH AND EVALUATION FOR CHILDREN
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Case1 FLORIDA GRAPEFRUIT
The Florida Department of Citrus has undertaken a series of research efforts to investigate the market potential for grape fruit and to provide strategic direction for future advertising and promotional programs for this citrus category. The following study describes the Department's attempt to understand how people perceive Florida grapefruit in order to learn the best possible positioning and how best to communicate that positioning to potential consumers. METHODOLOGY For the initial investigation, Qualitative research in the form of mini focus group composed of six to eight respondents per group was recommended as the method of choice, with specific qualifications to satisfy demographic and psycho-graphic consumer profiles. So that various cross sections of the population could be represented in the sample, five segments were selected for study with the expectation that they would yield abundant material for the measurement of similarities and differences in motivation and consumption behavior. The sample was chosen based upon a few key reasons: 1Mothers (with children under18): To provide insight into their attitudes regarding fresh fruit consumption as well as information related to child and early teen consumption and receptivity to fruit versus other. 2Health Conscious Adults (males and females between 26 and 34 who answered
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"Yes" to some health-related questions): To determine the penetration of fruit consumption and use as a possible barometer of a "healthy" attitude potentially driving/increasing addition of fresh fruit to the diet. 3Young Middle Income Groups (males and females between 26 and 40 with no children): The most random group selected on the basis of demographics: primary shoppers. 4Empty Nesters (women and few men between 51 and 65 who have had children): Representing the current and especially the future bulge in the census. These individuals are presumed to alter or become duly conscious of diet and nutrition. What relationship does this have to their interest and sentiment about the inclusion of grapefruit fresh fruit to the diet? 5Teen/Young Adults (males and females between19 and 25 who do 10 percent of their own shopping): Those moving out on their own. What are they eating now that they are on their own? Fresh fruit/Grapefruit? Consumption patterns were taken into account by dividing the sample into two types: 1HEAVY USERS: Consumers who had bought and eaten grapefruit within the past one to two weeks. 2LIGHT USERS: A dispersion of consumers who had bought and eaten grapefruit beyond the past month and those who do not buy it at all. To achieve a geographical balance, the following markets were chosen, in each of which four groups were conducted: Danbury, CT (New York Metro); Charlotte, NC; Bala Cyn wyd, PA (Philadelphia Metro); Chicago, IL; and Denver, CO.
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FINDINGS
Why People Eat Fruit Everyone in the sample eats fruit, although the degree of consumption ran the gamut from "fruit fanatics," who eat fruit several times a day to "fruit neutrals," who include 1in their diets in the form of juice in the morning and then tend to forget about it. Table 1 shows that basically three reasons for eating fruit emerged: it's enjoyable, it's healthy, and it's convenient. Breakfast choices are dominated by citrus fruits (and juices) and fruits that are often used on cereal. Snack/Lunch box and Travel fruits are considered easy to eat and carry. Appetizer and Dessert fruits are considered more time-consuming to prepare and not especially portable. Attitudes and Perceptions Unlike oranges, which appeared to be an almost universally popular fruit among the sample, grapefruit elicited less generalized appeal, although it should be remembered that the sample was selected to include both heavy and light users. Everyone was familiar with grapefruit, often claiming to have memories of being served grapefruit by their mothers when they were little. In fact, these childhood associations appeared to play a role in current perception. Those who liked grapefruit as children, and even some of those who did not, have positive feelings about grapefruit, at least partly because they enjoyed those occasions when mom was preparing something for them.
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There were also those who remembered being forced to eat it as children, thus developing a On the rather negative association with it which lasted into adulthood. Grapefruit has a distinct taste which consumers like, love, or hate. It can be described as "tart" or "refreshing" by those who eat it frequently and as "sour," "bitter," or "terrible" those who don't. A substantial number of respondents reported using sugar on grapefruit to cut the tartness, though this practice was condemned by those who eat it plain. For the most part, it is the older people who used to use sugar on their grapefruit when they were growing up who seem to continue to do so. Younger people who never learned this don't. One Heavy User exclaimed: "With grapefruit, when you take that first bite, you just have to say, um-m-m!" Another respondent described the taste as a great start to the day: "Eating grapefruit in the morning is a good 'wakeup and go' fruit. It's better than coffee-it has the 'up-and-go' of coffee-without the caffeine." Other, less enthusiastic, participants found it difficult to imagine anyone enjoying the taste and could only think of it as a food women eat when they are dieting. Many, including both users and nonusers, claimed that children do not care for the taste, which limits or precludes its usage in households purchasing quantities of other fruit. Among Heavy User households, however, some children do tend to eat it because of its presence. Even among those who eat it with some regularity, there is a preference for those types deemed sweeter than others. On other hand, great-tasting grapefruit is sometimes hard to find, according to consumers who seem to purchase enough of it to know. This raises the question of whether some of those who claim not to care for it have ever eaten grapefruit at its best. One respondent generated murmurs of agreement when she talked about how hard it
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seemed to find great-tasting grapefruit. But, as she put it: "when you find it, there's nothing as delicious as a good grapefruit." The taste of grapefruit is perhaps its most salient characteristic in the minds of consumers. While the segment of the population that loves grapefruit savors its taste, many of those who eat it occasionally and most who never ate it a second time after an initial exposure described the taste as a barrier to purchase. As will be pointed out later in this report, the notion that grapefruit can taste sweet or good is not known or believed by some consumers. Yet these are the same people who are least likely to have tried grapefruit with any frequency or to be aware of different types. This finding suggests an opportunity for education and communication. Grapefruit is perceived as a healthy food, rich in Vitamin C and fiber. Some people feel it is more nutritious than oranges. A number of people across all age groups, but most often in those comprised of older consumers, mentioned that grapefruit helps to reduce cholesterol. Those who heard this fact for the first time in the group were impressed by it. The health benefit is important to many users: "Eating grapefruit is a healthy feeling. It's good for you and doesn't make you feel like you are putting anything bad into your body." Grapefruit is also closely identified with dieting; many respondents expressed great faith in its powers as a weight reducing aid. Regardless of whether or not participants viewed or used it as a tool in a weight loss regimen, everyone agreed that it is a low calorie food that fills one up. Another association some consumers make with grapefruit is as a beauty benefit that goes beyond health. Some female Heavy Users feel it helps their skin look and feel better. Interestingly, this point of view came from younger women, who care about how they look.
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Grapefruit does appear to benefit along with other fruits in the American trend toward health consciousness. The perception that it might actively aid in reducing cholesterol levels enhances its value as a "health" food. When and How People Eat Grapefruit Grapefruit is primarily eaten for breakfast, and may also be used as an appetizer or dessert at dinner by heavy users. The most common, and in many cases, exclusive method of preparation is to cut it in half and section it. This manner of preparing and eating grapefruit is considered a chore by many consumers and represents a barrier to frequent use. While some respondents described this ritual as "enjoyable" or "relaxing," most people think of it as time consuming and the very opposite of convenient. This leads some to limit their consumption to times when it's prepared for them by a spouse or mother or in a restaurant. In fact in this context, grapefruit becomes a "treat," something the recipient accepts as a gift or pays money for. In most cases, women are unwilling to spend the extra effort for weekday breakfast; quite a few people mentioned grapefruit as suitable for- weeBnd brr~nch. ln lives which many described as fast paced and hectic, grapefruit does not fit into the normal schedule. As one respondent put it: "Everybody wants everything fast these days. Grapefruit isn't fast." On the other hand, there were those who disagreed that grapefruit was especially time consuming; a number of people mentioned special knives or spoons that make the
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process easy and fun. There were also a few people who said the); liked the act of preparing grapefruit for another person; these are the mothers and spouses who "give" it to those noted earlier who more often than not "receive" grapefruit in their lives. As one woman said: "It's a way of saying 'you're special Alternative methods of eating grapefruit, though far less common, were to quarter it or peel it and eat segments. People who do this generally eat a lot of grapefruit and include it in their lists of snack food. Another reported preparation technique designed to avoid sectioning during busy times was the sectioning of several grapefruit at one time and storing the sections in the refrigerator for easy access later. The availability of grapefruit sections packaged in jars came up a number of times in discussions of other ways of eating grapefruit; however, there appeared to be a preference for fresh fruit, except among some who mix the sections into a recipe. Quite a few people mentioned including grapefruit in their fruit salads; they like the "zing" it adds to the mixture. Among those who eat grapefruit for dessert, a popular recipe called for broiling halved grapefruit with a little brown sugar on top. Regardless of the meal occasion, grapefruit is generally considered and treated as a "sit down" food. It does not readily find itself in the school lunch box or carried along for a snack. This is not only a function of traditional preparation methods, it is also a result of consumers' perceptions that it is too large for one person to eat at one time. "Too big" was frequently mentioned as a disadvantage of grapefruit. While consumers agreed that unopened grapefruit keeps well, many complained that, once opened, the uneaten half often wastes away in the refrigerator until it has to be thrown out. Few
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people seemed to feel that an entire grapefruit could be consumed for a snack, and they apparently dont want to worried about who is going to eat the other half or to feel that they have an obligation to eat it themselves two days in a row. There were those who described one grapefruit as a meal unto itself, andcompared it favorably to oranges: Grapefruit feeds two people; an orange just feeds one. However, the perception that it is an unwieldy size was fairly widespread and provides consumers with anther reason not to purchase it: No one could eat a grapefruit at one sitting, so youve got to find two people to eat it. Its hard enough to fine one. The notion of size also caused some to claim that grapefruit is too heavy to carry along, particularly if only one person would be eating it. In addition, a few people mentioned that it is too large to fit with other fruits into the storage container of their refrigerators. Usually, during any discussion of the size of grapefruit, one respondent would mention sizes do exist. However, this information did not generate much reaction. Either people are unaware of small sizes or are unreceptive to a new view of grapefruit. In any case, the perception that grapefruit is not convenient appears to be a popular one. In sum, traditional views of how and when grapefruit should be eaten are constricting, preventing grapefruit from becoming a usual fruit which can be eaten in various circumstances. Though Heavy Users are far more likely to use grapefruit more broadly, even among this group, one-dimensional usage is common.
Kinds of Grapefruit
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When asked about what types of grapefruit there are, most consumers distinguish between white and pink. and many also add red to the list. White grapefruit is "regular." Everyone knows it and a majority had their first taste of this fruit from a white grapefruit. There is a widespread perception that this is the most tart of the three types, although a number of people claimed to have eaten deliciously sweet ones. Pink grapefruit is believed to be sweeter than the white and, at least among this sample, appears to be more popular. It's "pretty," a visual treat to the person preparing breakfast alone as well as to the guests at a dinner party where it is served as an appetizer. A common belief among consumers is that pink grapefruit has fewer seeds than white. Red grapefruit is considered the sweetest and most striking variety, and it appeared to be the preferred choice among those who know it. Although some consumers unfamiliar with this type initially confused it with pink grapefruit, the descriptions of a deep red color given by others in the group clarified the fact that this was another type of grapefruit. Red grapefruit is not as well known and does not appear to be wildly available. Regions and Brands Most consumers believe grapefruit comes from Florida and California. Texas and Arizona are also known to produce grapefruit, especially among people who live in the West. Respondents did not express any particular concern or interest in the origin of the grapefruit they purchase, although Easterner Northeasterners generally prefer Florida
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citrus, and those in the Central and Western United States seemed to tend toward California fruit. Some of those who regularly eat red grapefruit suggested that these come from Texas, hut this was not mentioned frequently. Consumers are also somewhat aware of grapefruit from Mexico and Central America, but are leery of pesticide control in foreign countries. Unaided awareness of brands of grapefruit did not seem particularly high; however, the name Indian River was mentioned most frequently in this context. Many people had heard of Indian River, but there was confusion about whether it was a type of grapefruit, a brand, or a region. Only a few people identified it as a region in Florida where grapefruit bearing that brand name is produced. Among those who did know the name-whether or not m any detail-it was associated with quality: -the best citrus m the country." as one person put it. Grapefruit is believed to be available year round. It appeared that most people think of it primarily in the winter months, but there were those who like its refreshing taste in the summer. However, quite a few winter users indicated that grapefruit available in the summer is not very good. According to a big Indian River fan, If its July, even Indian River is not good. Who Eats Grapefruit Five segments surfaced in the Grapefruit Culture, and they appeared in all demographic/psychographic groupings in the sample. They defined themselves not only by how much grapefruit they consumed but by their interest in grapefruit, their knowledge
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of it, and their reasons for eating it. Identification of these segments and an understanding of how they relate represent a strategic tool in communication efforts. 1 Grapefruit Enthusiasts-As the name implies, Grapefruit Enthusiasts are Heavy Users. By and large, they grew up with it and developed a taste for it early. They are apt to use the word "refreshing" or a phrase like "nice and tangy" to describe the taste of grapefruit. A smaller number of Enthusiasts became habitual users after being exposed to it later in life, often by another member of their household. They, too, like the taste and are quick to enumerate the health and beauty benefits of eating grapefruit. A third group, primarily found among the senior citizens, started eating grapefruit as part of a heath regimen, sometimes on the advice of a doctor. They like it and have made it a part of their lives. 2 The Dieters-Grapefruit has had a long association with the dieters of the world. For years, it has been on the diet menus given out by family doctors and weight reduction programs; recently, it enjoyed new celebrity in the book The Grapefruit Diet. Current and former dieters who were participants in this research all vouched for grapefruit: -It really works." While the nature of the relationship between grapefruit consumption and the successful loss of weight was not one everybody agreed upon. Some claiming it "burns fat" and others reflecting that eating half a grapefruit before a meal put a dent in one's appetite, the existence of some relationship was not disputed. Some dieters eat as many as four grapefruit in a day. This degree of consumption over any length of time makes at least some of them Heavy Users. However, dieters differ significantly from Enthusiasts in terms of their attitude about grapefruit, their motivation to eat it, and their usage behavior. These users are not particularly fond of grapefruit;
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rather, they view it as a means to an end, often a "necessary evil," and they discontinue using it as soon as their goal (measurable in pounds) is reached. Whether it's because of an unpleasant psychological association with the experience of dieting or a physical reaction to overdosing on a particular food, serious dieters are not inclined to eat grapefruit except when they're dieting. 3 The Amnesiacs-Grapefruit comes and goes in the amnesiacs. Some really like the taste and are pleased to eat it if it's placed in front of them or if it jumps out from the menu at a restaurant. Some are not quite as passive and will purchase it for a rare brunch. Others who might not care for it as much eat it for a change of pace from other citrus or fruit in general or as part of a diet or health regimen. The common denominator is sporadic usage. Most simply don't think about grapefruit, even though quite a few of them are knowledgeable about it. 4 The Uninformed -The Uninformed are also only occasional users of grapefruit and, to some extent, they are Amnesiacs as well. They are not, however, familiar with grapefruit; most did not grow up with it. They may have tried it a few times; they might eat it with some regularity; but they don't know that there are different types of grapefruit, that some kinds might be sweeter than others, or that they are available in different sizes. They tend to stick to one method of eating grapefruit, i.e., cutting it in half and sectioning it. To these people, it is a one-dimensional fruit and, even if they enjoy it, they find limited occasions to eat it. A classic Uninformed consumer talked about seeing another mother sitting in the bleachers at a football practice take out a grapefruit, peel it, and give segments to her children. Finally, she offered one to the respondent . When she did take it
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she was surprised that it tasted so good in such a convenient form. "I never dreamed of doing that with grapefruit!" 5 The Avoiders -These consumers have a consistent negative taste perception about grapefruit. They eat it rarely or not at all. More than one Avoider told of picking it out of fruit salad or disposing of an accidental mouthful in a restaurant napkin. In most cases, they did not grow up with grapefruit; in cases where they did, it is frequently associated with being forced to eat it. The occasional purchase is often for dieting. Avoiders may or may not eat other citrus; they do not feel they are missing anything by not eating grapefruit. Communication Time and again, respondents in all categories mentioned the lack of any advertisements for grapefruit. They often recalled advertisements for grapefruit juice, particularly Ocean Spray Cocktail Juice, and some referred to advertising for fresh oranges. However, no one could recall having seen an ad or commercial for fresh grapefruit. When asked how they would advertise grapefruit, participants often suggested using actors or athletes to promote it; many used words like: "Show it fun," or "Sweet," or "Healthy." Quite a few people mentioned the popular California Raisin commercial as the humorous tone to strive for. And many respondents felt that using advertising to create awareness and to show how grapefruit can be eaten for fun would be effective: "Maybe create new and exciting "Stress it as a substantial source of Vitamin C or as energy fruit.
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"Establish the many ways to eat it." "Eat this. The bitter is better." "Educate the public on all the good things about grapefruit. "Sharing it with a friend in a romantic way." "Use athletes or health fanatics (Walter Payton or Cher)." Amnesiacs and Uninformed consumers are not only less aware of grapefruit in general, but have limited, in some cases, negative, perceptions about it. This research indicates that these consumers have grapefruit information gaps that only encourage narrow and/or inaccurate perceptions.
QUESTIONS 1 Summarize the basic findings of the research. 2 Describe the market attractiveness of each segment. 3 How have learning and perception influenced target markets? 4 What goals would you recommend for communication? 5 Suggest a plan for attitude change within relevant target segments.
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Case 2 GIORGIO BEVERLY HILLS
Giorgio Beverly Hills had built a very successful business on the company's signature scent of women's perfumeGiorgio was the top-selling fragrance in the United States market. However, not wanting to rest on its laurels, managers decided to launch an addition to the product line. Of primary importance was that the perfume have a unique image and be targeted at a distinct group of women who do not use Giorgio. This was required so that the new scent would not cannibalize sales from the Giorgio brand. Since Giorgio is a strong and quite expressive fragrance, women who wear it tend to be rather outgoing and feel comfortable being the center of attention. Its bright yellow packaging had been designed to express this vitality and it had been very successful. The company developed its new, softer fragrance brand to reach a slightly older (25 to 54), more moneyed ($40,000 income), and more sophisticated woman than the Giorgio buyer. The name Red was chosen for the brand to connote vibrancy, passion, and sexy romance but with a more subtle image than Giorgio. The package color was also unique in the fragrance market at the time, so its distinctiveness captured considerable attention. The packaging was indeed red, but touches of purple and gold were added to convey a festive, elegant, and upscale quality. A major task in any new product introduction is to get consumers to try the product. But consumer trials are hard to obtain in the perfume market if women are not given any idea what the fragrance is like. Consequently, fragrance strips were placed in a variety of print
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media prior to product introduction. In fact, one estimate is that by the time Red was launched, over 20 million scent strips had been placed in circulation. Research had also revealed that women are much more likely to purchase a fragrance if they have worn it at least three times. Therefore, the company obtained mailing lists of department stores' preferred charge customers, and two weeks prior to product launch special red tubes holding a three-day supply were sent out. The brand's roll-out was scheduled for February, which provided a nice tie-in with the product color because of Valentine's Day. Special in-store materials were also obtained to emphasize the product's name and package color, including hundreds of red roses and red carpets which were rolled out. In many places mannequins were even dressed with material featuring the product's package colors. Consumer response was very enthusiastic-sales of $90 million were achieved in its first year and Red jumped to the number 1 fragrance position, while Giorgio also remained top seller. QUESTIONS 1 Why was the image of Red so important to the company? 2 What information processing issues arose in the company's attempt to market Red? What steps did the company take to address these issues? 3 What type of involvement levels do you expect for such a product? Why? 4 To what degree do you think brand- and self-image issues were central to the success of Red? 5 What principles of learning were utilized by the company? back
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Case 3 BUYING A PERSONAL COMPUTER
We had fretted over the decision for more than a year. My husband and I were reluctant to add this stress to our already harried lives. Sure, nearly all our friends had one and boasted about how rewarding the little darlings were. But we also knew it would demand time we couldnt spare. And it would probably need its own room and special furniture. Despite our anxieties, we decided it was time to buy our first home computer. Although we both used PCs at work, our technical knowledge didn't go much beyond working the on-off switch. So, armed with advice from friends. Rich and I headed to a nearby mall. The friendly salesman in the computer department at Dillard's asked what we wanted to do on our PC. "Writing," I replied. He regarded me quizzically. "Writing," I repeated. He stood silent. "Rating?" he finally asked, wrinkling his brow. My Wisconsin accent may sound weird to Texans, but I hadn't figured on miscommunicating so soon. He seated me in front of IBM's new PS/l, ignoring the bulky $2300 Magnavox nearby. He popped off the top and babbled about memory, VGA, expansion cards, and disk drives. The talk made me dizzy, but the PC seemed downright friendly. With a few clicks of the mouse, I was creating files. When we figured out what we'd really need, including a printer, the $1999 price soared by $600. But the promise of IBM's service and the salesman's enthusiasm were appealing. "I used to be afraid to sell computers," he said. "With IBM, Im not. Before our next outing, we figured more homework was in order. Computer catalogs,
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with their lists of megahertz and I/0 ports, proved worthless. One brochure rhapsodized about "disk-caching, ROM shadowing, and LIM 4.0 EMS support in ROM." Stacks of computer magazines didn't offer much enlightenment either. Suddenly, the idea of plugging in a cuddly PS/l seemed good. Still, we now were confident that we knew our RAM from our ROM. So off we went to Radio Shack. After asking which word processing program we liked, the salesman dismissed Tandy Corp.'s new home PC, the 1000 RL. "Your needs rule that out right away," he said. He suggested a Tandy 1000 TL/2, which we could have for $1899, with a dotmatrix color printer. But when we added a modem, a 51/4-inch disk drive, and a 40megabyte hard drive, the ticket soared to $2943.16, including tax. As with the PS/l, the sales approach for the Tandy PCs emphasized fun and easy software, including programs to balance our budget and plan our meals. With the "stereo system of the month" blaring nearby, I didn't catch all the details. But a handy chart comparing the Tandy PC to the IBM PS/l showed that with Tandy we'd save hundreds and have 7000 Radio Shack stores to help us in a crisis. After Radio Shack, we were beginning to feel like old hands. At dinnertime, Rich and I would debate the merits of the Intel Corp. 80286 chip versus the 80386SX. We scoffed at PCs with less than 1 megabyte of memory. Our confidence was soon dashed at Mr. Micro. Wandering through the small shop, we attracted little notice until a casually dressed employee approached. He was perplexed when we couldn't specify a computer brand. "I'm a technician, not a salesman," he explained. His advice? Buy a Macintosh. He said the Mac would be simpler to operate than
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IBM-compatible PCs. Maybe, but I couldn't hear expanding my search to a whole new universe of computers. By now, we were itching to spend. And what better place than a "computer superstore" that boasted more than 5000 computer-related items? At first sight, Soft Warehouse seemed part chaos, part carnival: Families strolled the store with children and computer gear in tow. A salesman recommended a machine based on the 80286 or 80386SX chip. He pointed us to his "system of the week" a $1463.99 IBM clone. With the extras we wanted, the price came to $1855. The price sounded good. But one of our magazines had warned against falling for inhouse specials. And Rich had doubts about the monitor's sharpness. Finally, we took the easy way out. A friend in the computer business put together an Acer Technologies 80386SX system for us. He's even loading the software. Now if only he sold computer furniture.
QUESTIONS
1 Describe the consumer decision process stages identified in this scenario. 2 What factors are most influential in this couple's buying process? 3 How did the couple's evaluation process change over time? What was the ultimate deciding factor? 4 What are the implications of postpurchase behavior for this couple and other computer buyers?
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5 What research issues for computer marketers are suggested by this case? 6 Assuming that a large number of consumers acted like the couple described in this case, what implications for communication strategies for computer marketers are suggested?
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Case 4 HEALTH CARE SEARCH AND EVALUATION FOR CHILDREN
Primary child health care is provided by pediatricians, family physicians (FPs), general practitioners, and family mid-level practitioners (physician assistants and nurse practitioners). Pediatricians are estimated to currently cater to about 55 percent to 60 percent of the market, while nonphysicians provide to barely 5 percent, and that, too, generally on reference or delegation by physicians. FP/GPs are estimated to devote 15 percent to 30 percent of their practices to child health care, and they may be considered to be a significant source of competition to pediatricians. By 1990 it was estimated that one out of every four general pediatricians could be surplus, though there could be some shortages in the subspecialties. There are a couple of other trends m in the primary health care business where the impact will be felt by pediatricians. First, there has been a boom in walk-in or convenience clinics, with well over a thousand of them operational and serving over 12 million patients. Second, the growth of the "wellness movement" is an important factor. METHOD Open-ended interviews were conducted with seventy mothers waiting to see one of seven pediatricians in private practice. They were asked how they first became aware of their child's health care provider (HCP), how they investigated their alternatives, what factors were important in their decision making, and whether they had ever left (or
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seriously considered leaving) a provider, and if so the reasons for the same. The responses from these preliminary interviews were used to develop a closed-ended questionnaire which was administered to a mail panel of 750 families (maintained by the University of Arkansas) in the state of Arkansas. Of the sample(84 percent) of the households returned the questionnaire. Out of these, 224 households indicated that they had children less than 18 years _of age in the home. Two hundred twenty-nine (94percent) of these families identified a regular child health care provider, 99 a pediatrician, 119 a generalist (GP or FP), and11identiaed other providers. The results presented are based on the data collected from these 229 families. In all cases the questionnaires were completed by parents reference to the youngest child living at home with them. The respondents, like members of most mail panels, represent relatively better educated, higher income groups, with underrepresentation of less privileged groups, racial minorities, and mobile sections of the society. The generalizability of the results reported is limited to middle- and upperclass, stable families. RESULTS 1 Provider Loyalty: On an aggregate basis, 60percent of the respondents reported using the same HCP for more than 4 years, and 35 percent of the total respondents reported using the same HUP for more than 8 years. The data further show that 50 percent of those using a generalist have been using the same provider for over 8 years as compared to a figure of 27 percent for those going to a pediatrician this difference is consistent with the findings groups have significantly younger children.GPs/FPs.
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2 Profile of the Choice Set: Respondents were asked the number of HCPs seriously considered before they selected their present provider. Thirty-four percent of all respondents did not consider any alternative providers; another 32 percent considered just one other alternative provider; the rest considered three or more providers. Consumers using a generalist did not differ from consumers using a specialist with respect to number of providers considered. The SES data did not reveal any significant differences in age/education/income of parents or in the size of the family between consumers carrying out a very limited search and those engaging in a more extensive search. 3 Sources of Information in Search Process: Respondents were requested to indicate all sources of information they had utilized in identified from the earlier open-ended interviews included (1) Friends and neighbor, (2) Other family members, (3) Other physicians, (4) Encounters as a patient [ I used the doctor as a child or the doctor provided my prenatal or obstetrical care], (5) Encounters other than as a patient [I heard the doctor speak at a KTA meeting or a Lamaze class], (6) Phone directory, (7) Government agencies, and (8) Local medical societies. Parents averaged just 1.2 for all who responded, with almost no difference in this figure between those who selected a generalist and those who selected a pediatrician. Eightytwo percent of the total respondents indicated having used just one source of information, with no respondent mentioning more than three sources. Some significant differences were found in the sources of information utilized by the two segments. Families who selected a pediatrician were significantly more likely to have gone by the recommendation of a friend or neighbor or of another physician, while those
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selecting a generalist were more likely to have utilized their own experience as a patient. Fifty-three percent of the respondents among pediatrician users went by friend or neighbor. 4 Demographic Differences: Two-thirds of the male parents using a pediatrician were 36 years or less in age, while among those going to a generalist, two-thirds were over 36 years. A similar difference was found between the mothers in the two groups. Eight-two percent of families going to a pediatrician mentioned that their youngest child was aged 10 years or less, while this was true of only 46 percent of the families taking the child to a generalist. No significant differences were found between the two groups of consumers in terms of size of family, number of years resident in the same state, education of either parent, occupation of either parent, or employment status of the male parent. However, there was a significant difference in the employment status of the female parent; fewer working mothers were present in the group using pediatricians. An important finding was that there was no significant difference in annual household income between the two groups, even though one recent survey reports that pediatricians charge on an average about 20 percent more GPs/FPs. 5 Factors Considered as Important in Selection of HCP: Respondents were asked to indicate on a 5-point scale ranging from "Most Important" to "Not Important" the impact of fifteen factors (identified from the open-ended interviews) on the selection of their childs HCP. The following factors were considered to be of more than average importance by consumers in both categories, but with no significant difference between them:
CONSUMBE BEHAVIOR
Recommendation of friend or neighbor. Personality of provider. Whether provider explains properly. Can get appointments quickly. Similarly, the following factors were considered to be of less than average importance, but again, with no significant difference between the two groups of consumers: Recommendation of other family members. Provider's office hours. More than one physician in practice. Convenient location. Age of provider. Whether provider recommends breastfeeding. Significant differences were found between the two groups. Those using a pediatrician tended to rate as more important the recommendation of another physician and whether the physician calls back quickly. Those going to a GP/FP were more concerned about whether the physician could treat all family members and provide prenatal care, the amount of waiting time, getting prescriptions on the phone, and the prices charged by the provider. 6 Causes of Dissatisfaction: Thirty-five respondents con firmed having changed their child's HCP and another 49 were seriously considering such a change. These 84
CONSUMBE BEHAVIOR
respondents were distributed as 34 in the use-pediatrician group and 50 in the usegeneralist group. These families were then asked to indicate the sources of their dissatisfaction from a list of seventeen reasons identified in the open- ended personal interviews. The &1 respondents mentioned, in all, 161 reasons out of which 148 were pertinent to provider-consumer interaction. The following reasons were most often given, ranked by frequency of mention, by those using a pediatrician's services: Doctor not interested in child's behavior. No concern for child. Child not getting better. Doctor incompetent: didn't know what he/she was In contrast, these were the most frequent reasons given by those going to a GP/FP: Office (clinic) too far away. Found another MD more convenient. Staff were rude. No concern for me.
QUESTIONS
1 How extensive is the health care search process among these consumers? 2 How important does opinion leadership appear to be in these decisions? 3 What degree of consumer involvement exists among these respondents?
CONSUMBE BEHAVIOR
4 Does the level of consumer involvement characterized in these situations seem to match the extent of information search? 5 How would you account for differing age groups choosing different types of health care providers? 6 What conclusions do you draw regarding the importance of various factors in provider selection and the reasons for dissatisfaction?
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Consumer Behavior2011

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Consumer Behavior2011

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CONSUMER BEHAVIOR

Part 2 Consumer Decision Making

Part 2 Consumer Decision Making

Chapter 2 Complex Decision Making

Part 2 Consumer Decision Making

Chapter3 Brand Loyalty

Chapter4 Low Involvement Decision Making

Part 2 Consumer Decision Making

Chapter5 Situational Determinants of Consumer Behavior

Part 3 The Individual Consumer

Chapter 6 Consumer Perception

Part 3 The Individual Consumer

6.4 Consumer perception of advertising

Chapter 7 Consumer Needs and Motives

Part 3 The Individual Consumer

Chapter 8 Consumer Attitudes

Chapter 9 Consumer Personality

Chapter 10 Household Decision Making

10.7 Family Decision Making and Marketing strategies

Chapter11 Group Factors

11.2 Reference group influences

Chapter12 Social Class Influences

Chapter13 Cultural Influences and Consumer Values

13.5 Changes in Cultural Values from The 1990s

1.2 Background and trend of consumer behavior

1.3 Research scope of consumer behavior and related subjects

3.Psychoanalysis (id, ego, superego);

SR theory and its development

Maximum satisfaction and minimum regret:

1.3.3.4 Indifference curve and its application in consumer behavior analysis

Part 2 Consumer Decision Making

Chapter 2 Complex Decision Making

Chapter3 Brand Loyalty

Chapter 2 Complex Decision Making

Part 2 Consumer Decision Making

Chapter 2 Complex Decision Making

Part 2 Consumer Decision Making

Low involvement purchase decision

Figure 2.1 Consumer Decision Making

Theories about consumer decision

1.The theory of taking consumer as economic person.

Part 2 Consumer Decision Making

2.2High involvement decision

Specially goods (sports equipment, furniture),and

The process of high involvement decision making can be defined as following:

Part 2 Consumer Decision Making

CONSUMER INFORMATION PROCESSING

Figure2.2 A Basic Model of Complex Decision Making

Part 2 Consumer Decision Making

NEED AROUSAL INPUT VARIABLES

CONSUMERS PSYCHOLOGICAL SET

Part 2 Consumer Decision Making

CONSUMER INFORMATION PROCESSING

SEARCH FOR ADDITIONAL INFORMATION

CONSUMERS PSYCHOLOGICAL SET

PERCEPTION OF STIMULI Attention Comprehension

NEED RECOGNITION MEMORY Past information New information

Part 2 Consumer Decision Making

conform to consumers current beliefs about a brand,

do not produce excessive fears and anxieties.

Part 2 Consumer Decision Making

SEARCH FOR ADDITIONAL INFORMATION

CONSUMERS PSYCHOLOGICAL SET