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M A R K E T I N G
Consumer Behaviour
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Chapter
Objectives
1. Describe how consumer behaviour is affected by two main categories of influence: environmental & individual factors.
2. Explain the role of culture in consumer behaviour.
3. Consider the effects of reference groups on consumer behaviour.
4. Distinguish between needs and motives.
5. Explain perception.
6. Define attitude and its three main components, and explain how attitude influences behaviour.
7. Demonstrate how learning theory can be applied to marketing strategy.
8. Show the steps of the consumer decision process and how environmental and individual factors affect this process.
9. Differentiate among routinized response behaviour, limited problem solving, and extended problem solving.
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Chapter
Consumer Behaviour
• The activities of individuals in obtaining, using, and disposing of goods and services, including the decision processes that precede and follow these actions.
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Chapter
Determinants of Consumer Behaviour
Consumer Behaviour
Individual factors and psychological
processes
Environmental factors
Consumerbehaviour
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Figure 8.1
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Chapter
Environmental Factors That Affect Consumer Behaviour
Cultural Influences
Social Influences• Group influences• Reference groups• Social class• Family influences
CUSTOMER DECISIONS
Consumer Behaviour 8Figure 8.2
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Chapter
Culture
• The complex of values, ideas, attitudes, institutions, and other meaningful symbols created by people that shape human behaviour, and the artifacts of that behaviour, transmitted from one generation to the next.
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Summary of Significant CanadianCharacteristics
Consumer Behaviour 8Table 8.1
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As a Function of Being a Part of the North American Reality•Modern orientation•Openness to new ideas•Egalitarianism•A rich, developing society with many needs and high materialistic expectations•Growing, more diffuse middle class
In Relation to the United States•Conservative tendencies•Traditional bias•Greater confidence in bureaucratic institutions•Collectivity orientation--reliance on institutions such as state, big business, and thechurch vs. personal risk taking•Less achievement-oriented•Lower optimism--less willing to take risks•Greater acceptance of hierarchical order and stratification•Tolerance for diversity--acceptance of cultural mosaic•Family stability•Selective emulation of the United States--resistance to some American characteristicsand dominance, yet willingness to emulate•Elitist and ascriptive tendencies
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Microculture
• A subgroup with its own distinguishing modes of behaviour.
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Status
• Relative position in a group.
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Role
• The rights and duties expected of an individual in a group by other members of the group.
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Asch Phenomenon
• The impact that groups and group norms can exhibit on individual behaviour.
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Reference Group
• A group whose value structures and standards influence a person’s behaviour.
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Membership Group
• A type of reference group to which individuals actually belong.
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Aspirational Group
• A type of reference group with which individuals wish to associate.
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Disassociative Group
• A type of reference group with which an individual does not want to be identified.
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Group Influence as a Function of Product Type and Consumption Situation
Consumer Behaviour 8Figure 8.3
Product or BrandWeak reference group influence (-)
Strong reference group influence (+)
Strong reference group influence (+)
Weak reference group influence (-)
Public necessities Influence: Weakproduct and strong brandExamples: Wristwatch,automobile, man’s suit
Public luxuries Influence: Strong product and brandExamples: Golf clubs, snow,skis, sailboat
Private necessities Influence: Weak product and brandExamples: Mattress,floor lamp, refrigerator
Private luxuries Influence: Strong product and weak brandExamples: TV game, trashcompactor, icemaker
Source: William O. Bearden and Michaeli Etzei, “Reference Group Influence on Product and Brand Purchase Decisions,” Journal of Consumer Research 9 (September 1982), p. 185, published by the University of Chicago Press. Reprinted with permission.
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Chapter
Social Class
• The relatively permanent divisions in a society into which individuals or families are categorized based on prestige and community status.
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PSTYE
• A geodemographic classification system that identifies lifestyle cluster profiles across Canada.
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ChapterConsumer Behaviour 8
Table 8.2
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PSYTE Cluster Profile, Estimated 1999 Canadian Households (1 of 2)
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ChapterConsumer Behaviour 8
Table 8.2
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PSYTE Cluster Profile, Estimated 1999 Canadian Households (2 of 2)
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Chapter
Opinion Leaders
• Trendsetters – individuals who are more likely to purchase new products early and to serve as information source for others in a group.
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ChapterConsumer Behaviour 8
Figure 8.4 Relative Influence of Husbands and Wives in Decision Making
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Chapter
Environmental and Individual Factors that Influence Behaviour
Consumer Behaviour
Customer Decisions
8Figure 8.5
Environmental• Cultural influences• Social influences-group influences-reference groups-social class-family influences
Psychological Processes• Information processing• Learning• Attitude formation• Perceptual screening
Individual• resources• needs• motives• perceptions• attitudes• lifestage
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Need
• The perceived difference between the current state and a desired state.
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Motive
• An inner state that directs us toward the goal of satisfying a felt need.
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Perception
• The meaning that each person attributes to incoming stimuli received through the five senses.
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Perceptual Screen
• The filter through which messages must pass.
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Subliminal Perception
• A subconscious level of awareness.
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Weber’s Law
• The higher the initial intensity of a stimulus, the greater the amount of the change in intensity that is necessary in order for a difference to be noticed.
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Attitudes
• A person’s enduring favourable or unfavourable evaluations of some object or idea.
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Three Components of Attitude
Consumer Behaviour
Overall Attitude(overall orientation toward object or idea)
8Figure 8.7
Cognitive component(knowledge and beliefs)
Affective component(overall feelings)
Conative component(behavioural tendencies)
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Cognitive Component
• The knowledge and beliefs one has about an object or concept.
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Affective Component
• One’s feelings or emotional reactions.
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Conative Component
• The way one tends to act or behave.
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Learning
• Changes in knowledge, attitudes, and behaviour, as a result of experience.
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Drive
• Any strong stimulus that impels action.
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Cue
• Any object existing in the environment that determines the nature of the response to a drive.
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Response
• The individual’s reaction the cues and drives.
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Reinforcement
• The reduction in drive that results from a proper response.
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Shaping
• The process of applying a series of rewards and reinforcement so that more complex behaviour can evolve over time.
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Shaping
• The process of applying a series of rewards and reinforcement so that more complex behaviour can evolve over time.
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ChapterApplication of Learning Theory and Shaping Procedure to Marketing
Consumer Behaviour 8Figure 8.8
Induce producttrial
Terminal Goal: Repeat Purchase Behaviour
Free samples distributed, large discount coupons enclosed
Product performance and coupon
Approximation Sequence Shaping Procedure Reinforcement Applied
Induce purchase withfinancial obligation
Discount coupon prompts purchase with little cost; coupon good for small discount on next purchase enclosed
Product performance and coupon
Induce purchase withmoderate financial obligation Small discount coupon
prompts purchase with moderate cost
Product performance
Induce purchase withfull financial obligation
Purchase occurs without coupon association
Product performance
Source: Adapted from Michael Le. Rothschild and William C. Gaidis, “Behavioral Learning Theory: Its Relevance to Marketing and Promotion,” Journal of Marketing ( Spring 1981), p. 72. Reprinted by Permission of the American Marketing Association.
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Chapter
Consumer Decision Process Input Information Processing Decision Process
Consumer Behaviour 8Figure 8.9
Informationsearch
Problemrecognition-from marketing activities -other stimuli
Alternativeevaluation
Purchase decision andpurchase act
Postpurchaseevaluation
Environment Factors•Cultural influences•Social influences -group influences -needs -reference groups -social class -family influences
Individual Factors-motives-perceptions-attitudes-learning
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Chapter
Evoked Set
• The number of brands that a consumer actually considers in making a purchase decision.
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Evaluative Criteria
• Features the consumer considers in making a choice among alternatives.
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Cognitive Dissonance
• The postpurchase anxiety that occurs when there is a discrepancy between a person’s knowledge and beliefs (cognitions).
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Consumer Problem-Solving Categories• Routinized response
• Limited problem solving (LPS)
• Extended problem solving (EPS)
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Low-Involvement Products
• Products with little significance, either materially or emotionally, that a consumer may purchase first and evaluate later (while using them).
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High-Involvement Products
• Products for which the purchaser is highly involved in making the purchase decision.
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