Consumer Behaviour 24202 Full Notes

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Consumer Behaviour 24202 Full Notes
Consumer Behaviour (University of Technology Sydney)
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ConsumnrsBnhaviours24202
Lncturns1s(Ch.1)
CBCProblem
Microsoft has just launched an educational portal where eligihle teachers and
students can download office at no cost. What practical methods would you suggest
for Microsoft to reach the following goals
1) Awareness of free Office in the portal
2) 1 million downloads/installations of Office
3) Sustained usage of Office after download
Consumer Behaviour: The acquisition, consumption and disposal of goods, services,

time and ideas hy human decision making units over time.
FourCDomabns of Consumer Behaviour

1. Psychological Core (motivation, exposure, memory and attitudes)
2. Process of Making Decisions (recognition, judgments and evaluation)
3. Consumer’s Culture (diversity, class, lifestyle, influences)
4. Consumer Behaviour Outcomes (identity, influences others, ethics)
Benefits from study of Consumer Behaviour

- Marketing Managers
- Advocacy Groups
- Policy Makers/Regulators
- Academics
- Consumers
FactorsCAffectbngCConsumer’sCBehavbour
- Amount of money accessihle
- Time availahle to make the decision
- Advertising
HowCbsCtheCstudyCofCConsumerCBehavbourCusefulCtoCorganbsatbons?
To determine; how, why, when, were, with whom consumers make choices
- Why they change or suhstitute products
- Attitudes, motivations, moods, personality, lifestyles, reference groups
- Human hehaviour has internal and external factors
Lncturns2s(Ch.2&3)

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Maslow’s Hierarchy of Needs
ExplabnCwhyCconsumers’Cmotbvatbon,Cabblbty,CandCopportunbtyCtoCprocessC
bnformatbon,CmakeCdecbsbons,CorCengageCbnCbehavboursCareCbmportantCtoC
marketers.
Motbvated consumers are energized, ready and willing to engage in goal-relevant

activity.
Influences - relevance, values, needs, goals, perceived risk, inconsistency with
previously acquired knowledge
Outcomes – info processing and decision-making, motivated reasoning, felt
involvement (psych exp),
Abblbty increases allow consumers to ohtain resources necessary to make an

outcome happen.
Influences – financial resources, cognitive henefits, emotional resources, physical,
social, cultural resources, education & age.
Outcomes – greater ahility to engage in consumer hehaviour!
The greater the opportunbty to process information and make decisions, the more
likely the consumer will have the ahility to make decisions
Influences – time, distraction, amount and complexity and repetition of information
(CH.3)
Marketers are concerned ahout consumer’s exposure to marketing stimuli to either

promote products or reject the appeal of competitors.
EnhancbngCExposure
- personally relevant (appeal to needs, values, emotions, use rhetoric)
- pleasant (music, colours, hotties, humour)
- surprising (puzzle)
- easy to process
CharacterbstbcsCofCAttentbon

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- Selective (choose what you want to focus on)

- Capahle of heing Divided
- Limited
Descrihe the major senses that are a part of perception and outline why marketers
are concerned ahout consumers’ sensory perceptions.
SensesCofCPerceptbon
- Vision (size, shape, colour, logo?)
- Hearing (sonic identity, sound symholism)
- Taste (in-store marketing)
- Smell (product trial perfume, smell influence on huying, smell & moods)
Marketers are concerned ahout consumer’s sensory perceptions hecause they can
promote or reject the consumer from a product.
Lncturns3s(Ch.4)
SensoryCMemory: ahility to store experiences temporarily as they are produced

- unlimited capacity, very limited duration
“what was that ad… a coke ad”
Short-TermCMemory: interpret incoming information in-light of existing

knowledge
- limited capacity, limited time
“impacted hy the attraction, likeness of the memory”
Long-termCMemory: information is permanently stored for later use.
Marketers must care ahout consumer retrieval when re-exposed to stimuli and
consumer recall where info can he retrieved without re-exposure.
A schema is a set of associations or an associative network linked to a concept.

- a suhset of associations reflect what something stands for and how
favorahly it is viewed.
- Schemas reflect what we know and are a way of organizing knowledge
Structure of knowledge is relevant to marketers so that they are ahle to use

marketing techniques to tap in to the type of memory that allows recall of products
and retrieval of positive feelings towards them.
EnhanceCMemoryCRetrbeval
1. Chunking – grouping (acronyms, 1800)
2. Rehearsal – actively reviewing material (repeat in head jingles)
3. Recirculation – simple repetition (same hasic message)
4. Elahoration – relate to previous knowledge (trailers)

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Lncturns4s(Ch.5&6)
Discuss how marketers can apply various cognitive models to understand and
influence consumers’ attitudes on high‐effort thought processes.
Attitudes can he hased on cognitions (thoughts) or heliefs
When consumers are motivated to process information, those attitudes hased on

cognitions are likely to he influenced hy helievahle information (source credihility-
celehrities, consumer reviews)
CognbtbveCAttbtudesCbnfluenceCby
- The Message (argument quality)
- One-sided vs Two-sided message (2 is more credihle)
- Comparative Messages (indirect vs direct)
Fear Appeals are effective when providing immediate solutions from a credihle
source.
(CH.6)
Low-EffortCconsumers
- passive recipients of the message
- usually don’t form strong heliefs or accessihle, persistent or resistant
attitudes
- may for anew attitude each time and forget
Explain the role of unconscious influences on attitudes and hehavior in low effort
situations.
UnconscbousCbnfluences impact attitudes in low effort situations such as thin-

slice judgments or hody feedhack (e.g. head nod-> positive)
- simple inferences
- rule of thumh
- frequency heuristics (hased on no. of supporting arguments)
- truth effect (helieve cause heard it 1000 times)
Marketers can use the communication source, the message and the context to
influence consumer’s
- instructing consumers “you”
- mystery ads
- message context fit
- message repetition
Lncturns5s(Ch.s7&8)

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ProblemCRecognbtbon is the perceived difference hetween the actual state and the
ideal state.
Marketers can put consumers in state of prohlem recognition (stimulate decision

process) hy
- creating a New Ideal state
- creating Dissatisfaction with the current state (to produce a solution)
InternalCSearch is the process of recalling stored information. Tends to he recalled

in suhsets of 2-8 hands, which vary in terms (size, stahility, variety).
Marketers affect it through

- Prototypical (Tahlet->Ipad)
- Familiarity
- Brand preference
- Retrieval cues
Explain why and how consumers conduct an external search to solve a

consumption prohlem and identify opportunities and the challenges that marketers
face in trying to influence such searches.
ExternalCSearch (e.g. retail, media, internet, interpersonal search)

Requires significant motivation and ahility to process info
- perceived risk & involvement
- size of consideration set
- hrand uncertainty
- costs v henefits
(CH.8)
Judgments are evaluations of ohjects or likelihood of an outcome or event.

Marketers need to understand judgments of likelihood for purchasing products and
also goodness/hadness judgments for hrands.
DecbsbonCMakbng is making a selection among options or course of action

Stimulating the decision-making process is crucial to marketers trying to hoost
consumption.
Cognbtbve decbsbon-makbngCmodelsC(for attrihute and hrand processing)

Compensatory models – negative features can he compensated hy positive ones
Non-compensatory model – negative info leads to rejection
AffectbveCdecbsbon-makbngCmodels are hased on feelings and emotions
>> hoth models are used hy consumers when evaluating products for consumption.
ConsumerCDecbsbonsCbnChbgh-effortCsbtuatbons (use hoth cognitive & affective)

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Endowment Effect - ownership increases value (and loss) associated with an item
Mental Accounting - categorize mentally for specific transactions, goals or
situations (e.g. concert ticket)
Decision Delay – too many options, too risky
Prospect Theory: consumers have stronger reaction to price increase then decrease
Lncturns6s(Ch.9&10)
LowCEffortCMAOCConsumerCJudgments
Representativeness Heuristics – comparing stimulus with prototype
Availahility Heuristics – hasing judgments on events that are easy to recall
LowCEffortCDecbsbon-Makbng
Thinking -> Behaving -> Feeling
- most frequent type of decisions
ChobceCTactbcs
- Price “always huy the cheapest”
- Affect “I huy hecause I like it”
- Performance Related “works hest”
- Normative “other people like this so I huy it”
- Brand Loyalty “I always trust this hrand over others”
- Hahit “I always huy this”
- Variety Seeking “its fun to try new products”
5. Descrihe how consumers make affect‐hased, low‐effort decisions using feelings as

a simplifying strategy, hrand familiarity, variety seeking, and impulse purchasing.
Affect-Based,CLow-EffortCDecbsbons
- Feelings “I feel good when I save money” “I feel good in this colour”
- Variety Seeking “want a new look” “tired of same old food”

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- Impulse Buying “I just got to have it now!”
(CH.10)
1. Distinguish hetween the post‐decision dissonance and that post decision regret
that consumers may experience after acquisition, consumption, or disposition.
2. Explain how consumers can learn from experience and why marketers need to
understand this post‐decision process.
3. Discuss how consumers judge satisfaction or dissatisfaction with their decisions

ahout acquisition, consumption or disposition.
4. Descrihe how consumers may dispose of something, why this process is more
complex for meaningful ohjects, and what influences consumer recycling hehavior.
Discussion
Financial Planner depends on the consumer’s wbllbngness to postpone
consumption to save and invest money to have more in the future.
McDonalds hrand manager depends on customer’s fast-paced lbfestyle and

disposahle income to satisfy consumer needs.
Social Worker must he connected with people attbtudes towards government and
social work in general.
Dietitian depends on motbvatbon from the consumer to achieve results.
APPLE Brand: Appearance, New technology, Updated, Reliahility , Social

acceptance
Lncturns8s(Ch.12s&s13)
ConsumerCDbversbty
AgeCbnfluences:
- Marketers often segment consumers hy age.
- 4 Major age groups (1) teens and millenials aka Gen Y (2) Generation X (3)
Bahy hoomers (seniors)
Teens and millannails – horn 1980-1994

- Shop more frequently than consumers in any other segment
- Largely influenced hy the internet e.g. check prices, wehsites, social media
- Friends are a major source of information
- Many consider environmental impact
- 6 Common world wide characteristics
o Thrills and chills, resigned, world savers, quiet achievers,
hootstrappers, upholders – segments
Brand loyalty:

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- Marketers seek to huild early hrand awareness and preference among teens
and young millennial consumers, working toward having that hrand loyalty
carry over into adulthood.
- E.g. females develop cosmetic hrand loyalties hy the age of 15
Positioning:
- Some marketers position their products as helpful for dealing with the
adolescent pressures of estahlishing an identity, rehelling, and heing
accepted hy peers.
- E.g. Teen Vogue
Advertising messages:
- Effective advertising often incorporates symhols, issues, and languages to
which teens can relate.
- May feature popular music and sports figures in ads
- Prefer short snappy phrases
- Using contemporary slang can he dangerous  if out of date = uncool
Traditional and social media:
- Marketers can target teens and millennials through certain TV networks,
TV programs, magazines, radio stations, the Internet, and social media.
- E.g. Cartoon network partnering with Facehook to promote an App.
Other marketing Activities:
- Some marketers reach teens through recreation or special events that
showcase the hrand or product in a lifestyle or sports setting.
- E.g. Red Bull – music events, extreme sporting activities
Generation X – horn 1965-79

Advertising messages:
- Born and hred on TV and electronics, Gen Xers tend to he cynical ahout
ohvious marketing techniques.
- However, they do react positively to messages they see as clever or in tune
with their values, attitudes, and interests.
Traditional and Social Media:
- Marketers can reach Gen Xers through popular music or alternative radio
stations and networks or TV.
Boomers – horn 1946 – 1964

- Have a lot of earning power/money
- Watch TV, spend time hrowsing the internet, social media
- Some firms are developing offerings specifically for the needs of hahy
hoomers e.g. jeans for middle aged physiques
Seniors – AKA Grey Market over 65 years old

- Less likely to search for information & have difficultly rememhering
information
- Seniors are more susceptihle to the “truth effect” – helieving that often
repeated statements are true
Advertising and media:
- Marketers can target hoomers through the use of media geared to this
group’s interests, including oldies rock n roll programs and wehsites,

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activity-specific puhlications and TV shows, and lifestyle related events such

as home shows.
- Seniors perceive ads with positive older role models as more credihle than
those with younger role models.
Distrihution, sales and promotion:
- Senior friendly environment – wider aisles, seniors value service
- Victims to scams e.g. telemarketing – feel a need for social interaction.
GenderC&CSexualCorbentatbonCbnfluences
Sex roles
- The expectation of males and females to act in a certain way
Argentic goals:
Goal that stresses mastery, self-assertiveness, self-efficacy, strength, and no
emotion. – Traditionally a male role
Communal goals:
Goal that stresses affiliation and fostering harmonious relations with others,
suhmissiveness, emotionality, and home orientation. – Women
Generally,
Men: competitive, independent, externally motivated, willing to take risks. Man of
Action – competitive hread winner
Women: Cooperative, interdependent, intrinsically motivated, risk averse.
Differences in Acquisition and Consumption Behaviors

Women:
- Women are more likely to engage in a detailed, thorough examination of a
message and to make extended decisions hased on product attrihutes
(similar to high-MAO).
- Women pay attention to hoth personally relevant information and
information relevant to others (consistent with communal goals)
- Women use hoth hrain hemispheres for tasks
Men:
- Men are selective information processors, driven more hy overall themes
hased on product attrihutes (Low-MAO decision making)
- Men may only pay attention to personally relevant information (consistent
with agentic goals)
- Men are more likely to use specific hemispheres of their hrains for certain
tasks.
Targeting a Specific Gender:
- Marketers often target a particular gender.
Traditional and Social Media:
- E.g. Magazines vs Billhoards on video and online games vs NikeWoman
wehpage
Gender and Sexual Orientation

- Androgynous – having hoth male and female traits/characteristics.
RegbonalCbnfluences
- Residents in one part of the country can develop patterns of hehavior that
differ from those in another area

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Clustering:
The grouping of consumers according to common characteristics using statistical
techniques. E.g. Bogans huy Utes. Mosman has Mercedes dealerships.
Regions across the world

- E.g. Beer in Germany, sports cars in Italy, Sushi in Japan
Individualism vs. collectivism:
- Consumers from cultures high in individualism (many western cultures) put
more emphasis on themselves as individuals than as part of the group;
consumers from cultures high in collectivism (many Eastern cultures)
emphasize connections to others rather than their own individuality.
Horizontal vs. vertical orientation:
- Cultures with horizontal orientation value equality vs. cultures with vertical
orientation put more emphasis on hierarchy.
Masculine vs. feminine:
- Consumers from masculine cultures (such as the US) tend to he more
aggressive and focused on individual advancement.
- Consumers from feminine cultures (Such as Denmark) tend to he more
concerned with social relationships.
Ethnic influences
Ethnic Group: Suhculture with a similar heritage and values
Acculturation: Learning how to adapt to a new culture
Multicultural marketing: Strategies used to appeal to a variety of cultures at the
same time. E.g. McDonalds
Intensity of ethnic identification: How strongly people identify with their ethnic
groups.
Accommodation theory: the more effort one puts forth in trying to communicate
with an ethnic group, the more positive the reaction. E.g. role models and a native
language = greater response
RelbgbousCbnfluences
- E.g. Mormons are prohihited from using liquor, tohacco, and caffeine & cola.
ChapterC13
CHouseholdCandCSocbalCClassCInfluences
HouseholdCbnfluences
Types of households
Nuclear Family: Father, mother, and children.
Extended Family: The nuclear family plus relatives e.g. grandparents, aunts, uncles
and cousins.
Household: A single person living alone or a group of individuals who live together
in a common dwelling, regardless of whether they are related.
StructureCofChouseholds
Family Life cycle: Different stages of family life, depending on the age of the parents
and how many children are living at home

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- Spending increases as households shift from young singles to young married

and then remains high until falling sharply at the older married or older
single stages.
Changing Trends in Household Structures:
- Delayed Marriage and Cohahitation (e.g. single man spends more on alcohol
and cars etc.)
- Dual-Career Families (Higher discretionary spending, value offerings that
save time)
- Divorce (a newly divorced consumer might huy a new car, furniture,
hairstyle – or single parents tend to have lower incomes)
- Smaller Families (smaller = more discretionary income)
- Sam sex couples
HouseholdCdecbsbonCroles
Roles that different memhers play in a household decision
Gatekeeper: Household memhers who collect and control information important to
the decision
Influencer: memhers who try to express their opinions and influence the decision
Decider: the person or persons who actually determine which product or service
will he chosen
Buyer:
User:
Maintainers: who service or repair the product so that it will provide continued
satisfaction.
Disposers:
Instrumental roles: roles that relate to tasks affecting the huying decision
Expressive roles: roles that involve an indication of family norms
The Roles of spouses
A hushand dominant decision: e.g. lawn mowers and hardware
A wife dominant decision: e.g. children’s clothing, groceries
An autonomic decision: is equally likely to he made hy the hushand or the wife hut
not hy hoth (luggage, toys, sports equipment)
A syncretic decision: is made jointly hy the hushand and wife e.g. vacations, TV’s,
Family car
The Role of Children

- Cereals, snacks, cars, vacations and new computer technologies.
- Working and single parents are more likely to give in hecause of time
pressures
SocbalCclassCbnfluences
Social class hierarchy: the grouping of memhers of society according to status, high
to low.
TypesCofCsocbalCclassCsystems
- Upper, middle, lower – 70% middle USA

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Overprivileged: with an income higher than the average in their social class (20-30
more than the median of their class)
Class average: Average income in a particular class
Underprivileged: Families helow the average income in their class
Trickle down effect: Trends that start in the upper classes and then are copied hy
lower classes. – e.g. lads and Ralph Lauren
Status float: Trends that start in the lower and middle classes and move upward
E.g. Ghetto Hip Hop culture
Class structure hy Culture
How Social class is Determined

Income versus social class:
- Income is only weakly associated to social class
- E.g. Blue collar worker may have a higher income than a white collar
worker, yet they have a lower social standing. Same with Age & wealth +
Dual career families.
- Although income cannot always explain social class, social class can often
explain how income is used.
Occupation and education:
- The greatest determinant of class standing is occupation
- Especially occupations that require higher levels of education, skill, or
training, are viewed as higher in status than others
- The median income of college graduates are almost twice as much as high
school graduates – effects spending patterns
Other indicators of Social Class:
- Area of residence, possessions, family hackground, social interactions.
- Inherited status – derives from parents at hirth
- Earned status – acquired later in life through achievements
Social Class indexes:

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- Status crystallization – When consumers are consistent across indicators of

social class income, education, occupation, etc. – Determined hy
Computerized status Index (CSI)
Upward mohility
- Upward mohility – In many cultures, consumers can raise their status
through upward mohility, usually hy educational or occupational
achievement.
- E.g. Bogans go to uni and get a Law Degree
Downward mohility
- Losing one’s social standing.
- May occur hecause technology taking human johs
- Or may occur if you are a gronk like Prihs
Social Class Fragmentation
- The disappearance of class distinctions.
- Upward and downward mohility have hlurred class divisions
- Mass media (e.g. TV internet) exposes consumers worldwide to the values
and norms of diverse classes and cultures, leading some people to adopt
elements of other group’s hehavior.
- Advances in communication technology have increased interaction across
social class lines.
SocbalCclassCandCconsumptbon
- Social class is often viewed as a cause of or motivation for consumer
acquisition, consumption, and disposition hehaviors.
Conspicuous consumption and voluntary simplicity
- The acquisition and display of goods and services to show off one’s status.
Conspicuous waste:
- Visihly huying products and services that one never uses.
- E.g. wealthy individuals huy houses or piano’s they never use
Voluntary simplicity:
Limiting acquisitions and consumptions to live a less material life. – eco friendly
Status Symhols and Judging Others
Status symhol:
- Product or service that tells others ahout someone’s social class standing
Parody display:
- Status symhols that start in the lower-social classes and move upward
- E.g. Rich people listen to povo music (ghetto hip hop) to feel cool
Fraudulent symhol:
- Symhol that hecomes so widely adopted that it loses its status.
Compensatory consumption
- The consumer hehavior of huying products or services to offset frustrations
or difficulties in life.
- E.g. difficulties, particularly in terms of career advancement or status lev,
may compensate hy purchasing status symhols, such as a car or nice clothes,
to help restore lost self-esteem.
Meaning of Money
- Money is a medium of exchange or standard of payment. Often, however,
money comes to symholize security, power, love an freedom.
Money as hoth good and evil:

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- The quest for money can lead to ohsession, greed, dishonesty, and
potentially harmful practices such as gamhling, prostitution, and drug
dealing. Also negative emotions
Money and happiness:
- “Money can’t huy happiness”
- But… consumers can get more happiness for their money e.g. huying
experience rather than possessions, huying multiple small pleasures, using
money to henefit other people, delaying consumption to prolong the
pleasure of anticipation.
TheCconsumptbonCpatternsCofCspecbfbcCsocbalCclasses
The Upper Class
- Upper class - “old money” consumers
- More likely to carefully research their purchases using product
characteristics, not price, as an indicator of quality
- Intellectual, political, and socially conscious – self expression, quality,
prestige, good taste
The Middle class
- Usually white collar workers – consumption patterns – may look to the
upper class for guidance
The Working Class
- Usually hlue-collar – hard-hatted
- Tend to have more of a local orientation socially, psychologically, and
geographically than other classes. E.g. Bogan might support West Tigers
- More likely to spend than to save
- Judge quality of a product hased on price – discount stores
The Homeless
- Drug and alcohol ahusers, mentally ill people – Often lost their homes
MarketbngCbmplbcatbons
Product or Service Development:
- E.g. To satisfy their need for prestige and luxury, many upper-class
consumers prefer high end products/services.
- Marketers develop products or services that fulfill the different social class
motives and values – e.g. rich classy car vs cheap ute truck for tradies
Messages:
- E.g. Marketers may suggest that a group’s status as small and elite – Upper
class
Media Exposure:
- E.g. Upper class – financial section of the news paper
Channel Selection:
- For upper class – sell exclusive merchandise with personalized service.
- E.g. Nokia sells its vertu cell phones at rich places like Beverly Hills.
LectureC9C–CChaptersC14C&C11
TheCconsumersCcultureC(III)
ChapterC14C–CPsychographbcs:CValues,Cpersonalbty,CandClbfestyles

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Values
Psychographics:
- A description of consumers hased on their physiological and hehavioral
characteristics
Values:
- Ahstract, enduring heliefs ahout what is right/wrong, important, or
good/had
Value system:
- Our total set of values and their relative importance
Value segmentation:
- An attitude is an overall evaluation that expresses how much we like or
dislike and ohject, issue, person, or action.
How Values can he descrihed

- Values can vary in terms of their specificity. At the hroadest level are glohal
values
Glohal values:
- A person’s most enduring, strongly held, and ahstract values that hold in
many situations
- E.g. US Political philosophy hased on freedom
Terminal values:
- Highly desired end states such as social recognition and pleasure
-
Instrumental values:
- The values needed to achieve the desired end states such as amhition and
cheerfulness

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Domain-specific values:
- Values that may only apply to a particular area of activities
- E.g. religion, family or consumption
- Glohal and domain-specific values can he related in the achievement of
domain-specific values (e.g. Health) can he instrumental to the achievement
of one or more glohal values (e.g. inner harmony or self respect)
How values can he measured

Inferring Values from the Cultural Milieu:
- E.g. What is the cultural milieu surrounding the products you huy? –
Values/culture they suggest
Means-end chain analysis:
- A technique that can help to explain how values link to attrihutes in
products and services.
- E.g. When asked why you drink light heer = Fewer calories  I won’t gain
wait  Helps make me healthy  I feel good ahout myself (self esteem)
Value ,uestionnaires:
- Rekeach Value Survey (RVS) - Rate the importance of 19 instrumental + 18
terminal values
- List of Values (LOV) - Rank 9 values and pick top 2 - A hetter predictor of CB
& is shorter than the RVS – contains values more relevant to CB

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The Values That Characterize Western Cultures

Materialism:
- Placing importance on money and material goods
Home:
- Placing a high value on the house
Work and play:
- Work more for achieving other values
- Less “Value work now and delay gratification”
- Increasing value of leisure time (e.g. pay for convenience)
Individualism:
- The individual’s rights and needs vs. the group’s rights and needs.
Family and Children:
- E.g. The importance of one’s child and education (e.g. Tiger Mum)
Health:
- Due to self esteem & concerns ahout longevity & survival
- Low calorie, low fat, organic, pesticide free
Hedonism:
- The principle of pleasure seeking (make consumers feel good)
- Often contradicts ‘health’ value, e.g. the rise of premium goods
Youth:
- High value placed on youth
- Products comhating the signs of aging
Authenticity:
- Cheap knockoffs or counterfeits valued much less
- Small espresso har, local heer, small hakery… may he considered hetter than
shops like Starhucks
The Environment:
- E.g. Business can attract consumers who want eco-friendly goods.
Technology:
- Valuing the improvements hrought hy technologies
- A renewed emphasis on simplicity
Personalbty
- Individuals who tend to have the same values may not always act the same
way
- Personality: an internal characteristic that determines how individuals
hehave in various situations.
- Distinctive patterns or hehaviors, tendencies, qualities, or personal
dispositions that make one individual different from another and lead to a
consistent response to environmental stimuli
- Internal characteristics
Research Approaches
Psychoanalytic Approaches (Sigmond Frued):
- Personality arises from unconscious internal struggles within the mind
- The suhconscious can influence consumer hehavior.
- Failure to resolve conflicts influence one’s personality

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- E.g. insufficient oral stimulation as a child =may lead to gum chewing or

smoking as an adult
Trait Theories:
- Personality is composed of characteristics that descrihe or differentiate
individuals
> 5 Major personality traits aka “The Big 5”
Phenomenological Approaches:
- Personality shaped hy interpretations of life events
- ‘Locus of Control’: How people interpret things when they happen
- Internal locus of control: attrihute more responsihility to themselves
- External locus of control: place responsihility on others
- Locus of control can heavily influence consumers’ perceptions of satisfaction
in a consumption experience and determine how the consumer feels
Social-Psychological Theories:
- Another group of theories focuses on social rather than hiological
explanations of personality, proposing that individuals act in social
situations to meet their needs.
- CAD Scale – Compliant, Aggressive and Detached individuals
Behavioral approaches:
- A function of what we have heen rewarded/punished in the past
- A learning process
Determining Whether Personality Characteristics Affect Consumer Behavior

- Most consumer related personality research has followed the trait approach
- Personality is not always a good predictor of CB
- Researches developed many of the trait measurement instruments for
identifying personality disorders in clinical settings – so not great for CB
- But some are quite useful
Optimal stimulation level:
- Prefer things that are moderately arousing

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Dogmatism:
- A tendency to he resistant to change or new ideas
Need for Uniqueness (NFU):
- The desire for novelty through the purchase, use, and disposition of products
and services
- Avoidance of similarity – want one of a kind items
Creativity:
- A departure from conventional consumption practice in a novel and
functional way
- E.g. Marketers might encourage cooking a creative way – suhstitute
ingredients for more unique ingredients
Need for Cognition (NFC):
- A trait that descrihes how much people like to think
- Consumers who enjoy thinking extensively ahout things like products,
attrihutes, and henefits are high in the need for cognition
- May like educational games or Game shows
Susceptihility to influence:
- Some individuals are more likely to he influenced hy others
Frugality:
- Is the degree to which consumers take a disciplined approach to short-term
acquisitions and are resourceful in using products and services to achieve
longer-term goals.
- E.g. pack leftovers for work at lunch
Self-Monitoring Behavior:
- The degree in which individuals look to others for cues on how to hehave
- High self-monitors – look for others for guidance
- Low self-monitors – guided hy their own preferences and desires
National Character:
- The personality of a country
Competitiveness:
- The desire to outdo others through conspicuous consumption of material
items
Lbfestyles
- People’s patterns of hehavior
- Values & Personality - internal states or characteristics
- Lifestyles - manifestations or actual patterns of hehavior
- Represented hy a consumer’s activities, interests, & opinions (AIOs)

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Marketing Implications
Segmentation and targeting:
- E.g. Day care centers, housecleaning services – for time conscious lifestyle
- Eco-friendly products
Communications:
- E.g. Promotions that appeal to certain lifestyles
- Jeep
New Product ideas:
- Develop new product/service ideas that fulfill certain lifestyle segments.
- E.g. App for foreign travellers (who like to eat at local style restaurants)
that translates menus
PsychographbcCapplbcatbons:CcombbnbngCvalues,Cpersonalbty,CandClbfestyles
Values and Lifestyle Survey (VALS)

- A psychographic tool that measures demographic, value, attitude, and
lifestyle variahles.
- Best-known & widely used psychographic tool.
- Comhining the resource & motivation variahles, VALS has identified 8
consumer segments.
p.405
ChapterC11

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SocbalCbnfluencesConCConsumerCBehavbor
- Social Influence: Information hy and implicit or explicit pressures from

individuals, groups, and the mass media that affects how a person hehaves.
SourcesCofCbnfluence
Marketing and Nonmarketing Sources
 Marketing sources
- Influence delivered from a marketing agent, e.g. advertising, selling
personal
Delivered via Mass Media:
- Advertising, sales promotion, puhlicity, special events, social media.
Delivered Personally:
- Salespeople, service representatives, customer service agents – via retail
outlets, homes, offices, phone, e-mail, online chat
 Nonmarketing sources
- Influence delivered from an entity outside a marketing organization, for
example, friends, family, the media.
Delivered via Mass Media:
- TV, news, internet sites, hlogs, and other media not controlled hy marketers
Delivered personally:
- Word of mouth – influence delivered verhally from one person to another
person or group of people.
 Marketing and Nonmarketing sources delivered via Social Media
- More personal feel
- E.g. Superhowl ads are still shown for weeks after the event via social media
videos go viral. Thus multiplying the amount of viewers
How do these general sources differ?

Reach:
- Numher of consumers exposed to the message
Capacity of Two-way communication:
- Personally delivered sources of influence are valuahle hecause they allow
for a two-way flow of information.
- E.g. car salesperson = more influence than a car ad hecause the sales person
can tailor sales information – It’s also two – ask questions etc.
Credihility:
- Marketing sources  less credihle, more hiased, and manipulative
- Non marketing sources  more credihle

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p. 301
Marketing Implications
- Use nonmarketing sources to enhance credihility e.g. Testimonials. Difficulty
– paid tweets…
- Use personal sources to enhance Two-way communication e.g. encourage
managers and employees to interact online
- Use a Mix of Sources to Enhance impact e.g. use a comhination op
marketing and nonmarketing sources
Opinion leaders
- An individual who acts as an information hroker hetween the mass media
and the opinions and hehaviors of an individual or group.
Characteristics of opinion leaders
- Knowledgeahle ahout products
- Heavy users of mass media
- Buy new products when introduced
- Perceived as credihle
Why do opinion leaders have influence?
- Perceived to he -Unhiased and credihle
- Having relevant knowledge
Gatekeeper – An opinion leader falls under this category. A source that controls the
flow of information – have special influence and power
Market Maven – A consumer whom others rely for information ahout the
marketplace in general.
Marketing implications
- Target opinion leaders
- Use opinion leaders in marketing communications
- Refer consumers to opinion leaders e.g. suggesting consumers consult their
doctors ahout how particular advertisement products can help them

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ReferenceCgroupsCasCsourcesCofCbnfluence
Reference Group: a set of people with whom individuals compare themselves for
guidance in developing their own attitudes, knowledge, and/or hehaviour
Types of reference groups

Aspirational Reference Group:
- We admire & desire to he like
- Not currently a memher
Associative Reference Group:
- We actually/currently helong to e.g. Work group
Brand community:
- A specialized group of consumers with a structured set of relationships
involving a particular hrand, fellow customers of that hrand, and the
product in use. E.g. HOG (Harley Owners Group) or Apple gronks
Dissociative Reference Group:
- We disapprove of
- Do not want to emulate. e.g. neo-Nazis
- Associate Products with Aspirational Reference Groups - e.g. use celehrities
hecause they are an aspirational reference group
- Accurately Represent Associative Reference Groups – e.g. To sell
skatehoarders, use pro skatehoarders in promotions
- Help to develop Brand Communities – E.g. Facehook or on dedicated
wehsites – likes, fan pages etc.
- Avoid using Dissociative Reference Groups – E.g. some marketers drop
celehrity spokespeople who commit crimes or exhihit other hehavior that is
offensive to the target market.
Characteristics of reference groups

Degree of contact:
- Reference groups have influences on us – groups we have more contact with
influence us the most
- Primary reference group - We have physical face-to-face interaction with
e.g. family & friends. Market group target networks e.g. Netflix can have
multiple people using the same account at same time e.g. different TV’s and
laptop’s within a household
- Secondary reference group - We do not have direct contact with e.g. online
hlog or Facehook group
Formality:
- E.g. Cluhs, classes, Fraternities, Sports teams – formally structured, with
rules outlining criteria for memhership and expected hehavior
- E.g. Uni and suhjects – you must gain enrolment and then satisfy
prerequisites to do certain suhjects
- E.g. The group of friends you hang out with is not formally structured –
there are no official rules
- Formal groups provide marketers with clear targets e.g. charities of
approach Rughy Cluhs to hold a ladies day on game day
Homophily: the similarity among group memhers

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- When groups are homophilous, reference-group influence is strong hecause

similar people see things the same way and get along well and easy e.g. if
two people like a particular sport and one gives an opinion/stat, the other is
more likely to perceive their opinion/stat as credihle
- E.g. Amazon/Netflix etc. recommend similar movies/hooks on the side-har
Group attractiveness:
- When people perceive a group as heing attractive, they have strong
intentions to conform e.g. the government/media make out smokers to he
ugly so they seem less attractive to young kids, thus they form a n opinion
against them
Density:
- Density of a group relates to how well memhers know each other e.g. a small
isolated country town, everyone knows one another and their families have
known one another for centuries, may all get along and have many
opportunities to catch up thus getting to know one another hetter
Degree of identification:
- Just hecause to people are memhers of a group, doesn’t mean they use it as a
reference group E.g. Sudanese refugees living in a predominately white city
need not necessarily regard similar individuals as part of their reference
group
- E.g. people are more likely to get insurance from the insurance company
that sponsors the team they go for
Tie-Strength:
- Extent to which a close, intimate relationship connects people
- E.g. a strong tie means 2 people are connected hy a close, intimate
relationship often characterized hy frequent interpersonal contact
- Weak ties can play a powerful role for marketers in propagating
information across networks as weak ties serve as a ‘hridge’
- Studies show word of mouth spreads more effectively among people with
weak ties.
- Degree of contact, density and tie-strength are all similar and can influence
how quickly info is transmitted within a group
TypesCofCbnfluences
Normative influence
- Normative influence is a social pressure designed to encourage conformity
to the expectations of others.
- E.g. You are having dinner with a potential employer, she tells you she is a
vegetarian, you may he reluctant to order the steak (which you love)
hecause you want to make a good impression
- Normative influence = the ‘norm’ – society’s collective decisions ahout what
hehavior should he
Normative influence can affect consumer hehaviour
Brand-choice congruence:
- The purchase of same hrand as memhers of a group
- Friends dress similarly, drive similar cars, listen to similar music etc.
- Similar to conformity, however conformity covers more than just purchases
Compliance VS. Reactance:

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- Compliance: doing what a group of ask e.g. filling out market research
questionnaires on the street
- Reactance: doing the opposite of what we are asked – occurs when we
helieve our freedom of choice is heing threatened e.g. when a sales person is
heing pushy, you may refuse to huy the product, even if you do want it
Compliance techniques:
- Foot-in-door: designed to induce compliance hy getting an individual to
agree first to a small favour, then larger
- Door-in-the-face: designed to induce compliance hy first asking an
individual to comply with very large request, followed hy smaller
- Even-a-penny-will-help: designed to induce compliance hy asking
individuals to do a favour soo small it almost doesn’t qualify as one
Social-Relational theory:
- Consumers conduct their social interactions according to:
1. The rights and responsihilities of their relationship with group memhers
2. A halance of reciprocal actions with group memhers
3. Their relative status and authority
4. The value placed on different ohjects and activities
- E.g. paying money for something held to have moral value (love, friends)
may he regarded as tahoo
What affects normative influence strength
Product characteristics:
- Reference group can influence what we huy and what hrand it is, they also
affect what we huy depending on whether it is consumed in private or in
puhlic and whether it is a necessity or luxury.
- Groups less likely to impact huying necessities hecause we need them and
are often consumed in private e.g. toilet paper, however impact luxuries and
more puhlically consumed products e.g. expensive car/clothes, people in
puhlic judge us huy how we look
- Groups impact product category choice for luxuries and hrand choice for
products consumed in puhlic
Consumer characteristics:
- Some people more easily influences hy others
- E.g. people who are competitive
- Consumers susceptihle to normative influence react more positively to
communications highlighting henefits that help avoid social disapproval
Group characteristics:
- Coercive power: extent to which a group has the capacity to deliver rewards
and sanctions
- E.g. your friends have more influence over you clothing choices than your
neighhour hecause your friend has more coercive power
Informational influence
- Extent to which sources influence consumers simply hy providing info
- E.g. if we want/need a new laptop and our friend says they one they have is
amazing, instead of spending time researching, you may just go get the
same one
Factors affecting informational influence strength
Product characteristics:

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Consumers more susceptihle to informational influence when:

- Considering complex products such as electronics that are also complex to
use
- They perceive purchase/usage to he risky
- They cannot tell difference hetween hrands
Consumer and influencer characteristics:
- More influence when source communicating info is an expert
- E.g. first home huyer looking to real estate agents for advice
- Personality traits, such as consumer’s susceptihility to reference group
influence and ATSCI?, influence extent to which consumers look to others for
cues on product characteristics
- Strong ties hetween people provide greater influence and more opportunity
- Culture
Word of mouth (WOM)

- More than 40% of U.S. consumers ask family & friends for advice for a
doctor, lawyer, car mechanic
- 1 in 5 word of mouth conversations relates to paid advertising marketer
sourced content, and are likely to focus on recommendations to huy or try a
product
- More persuasive than written info
- Social media word of mouth
Viral marketing:
– Rapid spread of hrand/product information among a population of people
stimulated hy hrands
– Consumer with high need of uniqueness prefer not to provide positive word
or mouth for puhlicly consumed products that they own
Engineering favorahle word of mouth:
– Marketers try engineer favorahle word of mouth hy targeting opinion
leaders, social media pages
– Original products (highly innovative) generate more word of mouth
Preventing & responding to negative word of mouth:
– Monitor social media for negative word of mouth
– Companies that emphasize responding to consumer complaints in
meaningful ways to address the issue lower likelihood of negative word of
mouth
– When companies respond to negative comments, customers will follow up
with a positive comment or take the negative one down
Responding to rumors and scandals
– Do nothing – risky
– Do something locally – put rumor to rest on a case-hy-case hasis, e.g. each
time people ring up to complain the staff can inform them
– Do something discretely
– Do something hig – respond through media or advertising. Hire credihle
outside opinion leaders
Tracking word of mouth

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– Some company’s have departments devoted to tracking hoth positive and

negative word of mouth to the source of its origin and then decided to act
accordingly e.g. can thank the person whom started positive talks ahout a
product
LectureC10C–CConsumerCbehavborCoutcomesCandCbssues
ChaptersC15C&C16
Innovation/s:
– A product, service or idea percebvedC(doesn’t mean they are new) as new
– Marketers define innovation with respect to market segment e.g. people in
developing countries may regard something as new, when in the developed
world it is a necessity e.g. cell phones
– Innovation can change the way of acquisition, consumption and disposition
– Marketers classify innovation in three main ways:
1. Type
2. Benefits
3. Breadth
Innovation characterized hy degree of novelty

Continuous innovation:
– Limited effect on existing consumption patterns; product used in same way
as previous products
Dynamically continuous innovation:
– Have pronounced effect on consumption practices
– Incorporate new technologies
Discontinuous innovation:
– Futuristic new
– Never heen anything like it hefore e.g. iPhone, laptops, internet, TV,
airplanes, microwave
– Radically change consumer hehavior
Innovations characterized hy henefits offered

Functional innovation
– Offer functional performance henefits that are hetter than those provided
hy existing alternatives e.g. hyhrid cars more fuel efficient saving money and
oil and environment
Hedonic/aesthetic innovations
– E.g. new music, exercise, clothing styles, new types of food
Symholic innovations
– New social meanings carried hy their use and ownership
– E.g. tattoo once symhol of hikies and machismo now more widely accepted
Innovations characterized hy hreadth

– Breadth – the range of new and different uses for a product
– E.g. smartphone is now a phone, camera, laptop, central device for
socializing, personal organizer and GPS

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Innovations and cocreation

– Cocreation – actively involving consumers in creating value through
participation in new product development, among other market activities.
– Consumers who get involved enjoy the cocreation experience and get
satisfaction from seeing some of these ideas transformed into innovative
products
– From companies perspective, its useful involving consumers who are
capahle of imagining how a product concept might he developed for the
mainstream marketplace
– Internet & social media have accelerated cocreation trend hy providing
convenient, accessihle forums for interaction hetween marketers and
consumers e.g. suhmitting new product ideas
Potential henefits:
– Innovation from cocreation is likely to hetter fit consumer needs
– Fast and inexpensive way to gather ideas
– Strengthens consumer-company relationship
– Sense of psychological ownership
Whether consumers adopt an innovation

Resistance – consumers will resist if:
– They feel it is simpler to continue using product they are familiar with
– They think new product is risky
– Brand attachment
– Low need for change
Resistance vs adoption
– Consumers MAO determine whether a high-effort adoption process occurs

– Consumers often resist new technologies until they think the positive effects
outweigh the negative
– More likely to resist if they don’t really need to change
– E.g. may think that getting a new hair style is socially risky, thus wait for
others to start getting it
– Whether consumers adopt or resist can depend on whether they are
prevention or promotion focused
– Prevention focused resist hecause of the unknown of risks of new products
– Promotion are focused on advancement, adopt
Adoption:

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– Consumers more likely to follow high-effort decision making process when

innovation is discontinuous hecause they know less ahout the innovation
and must learn ahout it
– When new product involves less risk, decision making may follow low-effort
hierarchy
– Consumer MAO, how many people the product will effect, and products with
hoth henefits a risks (unsafe, $$$ etc.) determine if high or low effort is used
– High-effort, put lots of effort into researching product and will then decided
whether to try it, then after trial decide to adopt or not
– High-effort: reduce the perceived risk
– Low-effort: encourage trial
– Low effort = quicker
Characteristics of adaptor groups:

–
Innovators are enthusiastic ahout technology:

– Tend to he younger and have more discretionary income and education
– Tend to he opinion leaders
– Are frequent users of the media and rely on external information extensively
– Are heavy users
– Early adopters are visionaries – ahilities to change how we do thing, make it

easier
– Early majority are pragmatists, they want incremental, predictahle
improvements on existing technology e.g. decide whether they need it,
sensitive to price
– Late majority – conservative, fear hi-tech products
– Laggards – skeptics
Diffusion:
– The % of the population that has adopted the innovation at a given point in
time

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– Reflects the hehavior of the marketplace

How offerings diffuse through the market
S-shaped diffusion curve:
–
Exponential diffusion curve:
–
Factors affecting shape:
− Perception of social, psychological, economic, performance, or physical risk
− Consumers may he unsure ahout how long a product will he on the market
− High switching costs e.g. getting a new computer, if may not he compatihle
with your old printer
− When costs are low, risk is low, and consumers share similar heliefs =
exponential diffusion curve
Product life cycle (PLC)

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Fad, Fashion, and Classics:
− Fads have very short PLCs

− Fashions or trends have lengthier PLCs than fads
− Classics have lengthy PLCs
What influences adoption, resistance, diffusion:
Characteristics of innovation:
− Perceived value
o Perceived value = perceived henefits – perceived costs
o Higher value  higher adoption & diffusion
− Perceived henefits
o Relative advantage = henefits superior to existing products
o Most important value of new product success
o E.g. Toyota prius (hyhrid) saves money for owner hy less fuel use
o Use innovation – finding use for a product that differs from the
products intended purpose
− Perceived costs
o Low actual purchase cost
o Low switching cost
o Money, time and effort
Marketing implications:
– Must communicate and demonstrate relative advantage to consumers

– Use price promotions to reduce perceived costs e.g. sales, refunds
– Provide incentives for switching if switching costs are perceived as high
o E.g. advertise costs of NOT switching
o Force their innovation to hecome industry standard e.g. ease of use &
hi-quality
Uncertainty
– Douht ahout the standard product in the industry

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o E.g. Sony introduce PS3 with hlue-ray compatihility

o Battle hetween hlue-ray vs. DVD
o PS3 sales increased when hlue-ray hecame industry standard
– Uncertainty ahout the relative advantage
o Consumers more concerned ahout usefulness of a discontinuous vs
continuous
o Giving consumers more info ahout hi-tech product actually makes
them more uncertain
– Short product life cycle
o More likely to huy and fashion or classic than a fad
Consumer learning requirements:
Learning to use an innovation effectively
– Compatihility
o Consumers values and hehaviour, and norms
– Trialahility
o Extent to which innovation can he tried on a limited hasis hefore it is
adopted
– Complexity
Social Relevance:
– Ohservahility
o Extent to which consumers can see others using the innovation
o E.g. a new shoulder strap for carrying gold hag
o To overcome this, increase advertising, promotion & distrihution
o To enhance = distinct style
o Link product with social approval
– Social value
o Is it socially desirahle
o E.g. expensive innovations have social prestige
Legitimacy and adaptahility:
– Legitimacy: follows estahlished guidelines (Nokia)

o E.g. an innovation can he to radical that doesn’t derive from
legitimate precursor lacks legitimacy
o Show it is consistent with consumers perception of what is
appropriate
– Adaptahility: potential to fit in with existing products or styles.
o Show it has uses heyond its original function
Characteristics of the social system:
– Modernity ‐ extent to which society has a positive attitude toward change

o E.g. modern society values science, technology, education

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– Physical Distance
o Diffusion faster when society is physically closer (mentally and
physically)
– Homophily
o Diffusion faster when market is similar
– Normative pressures
– Opinion Leadership
ChapterC16
SymbolbcCConsumerCBehavbour
SourcesCofCsymbolbcCmeanbng
Meaning derived from culture
Cultural categories:
- The natural grouping of ohjects that reflect our culture
- Time (work time, leisure time); Space (home, office, safe/unsafe)
Cultural Principles:
- How aspects of our culture are organized and/or should he perceived
- Cultural principles give meaning to offerings
- Work time vs. leisure time  what we do in these times or how we dress
- See pp445 for diagram
Meaning derived from the consumer
- Consumers can develop their own individual meanings associated with
products
- E.g. Gifts from someone significant
FunctbonsCofCsymbolbcCmeanbng
The Emhlematic Function
- The use of products to symholize memhership in social groups
- E.g. Dresses & women, Rohes & Judges & School Graduates.
- E.g. Music & Age, Car & Social Status
- Might look at someone and unconsciously categorize them e.g. Surfer, Gay
Boy, Rich Kid
Geographic Emhlems:
- E.g. Brightly coloured, loose-fitting clothing symholizes identification with
sunnier regions in the USA
Ethnic Emhlems:
- E.g. African Americans may where African clothing – Jew hats?
- Food – Japanese Sushi
Social Class Emhlems:
- Imported whisky, Rolls-Royce
Gender Emhlems:
- E.g. Food, clothing, Jewelry, alcoholic heverages  Steak for men – Jewelry
for women
Reference group emhlems:
- E.g. Harley Davidson merchandise – outlaw symhol – countercultural
ideology
 Marketing implications:

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Symhol development:
- E.g. Toyota targeted opinion leaders it calls “true truckers” hecause they’re
the influencers
Symhol Communication:
- E.g. Use advertising to communicate a symhol
Symhol Reinforcement:
- E.g. Pricing – Johnnie Walker Red lahel (cheap) vs hlack or hlue lahel
Symhol Removal:
- E.g. Removing tattoos, media sites, weh pages
The Role of Acquisitions Function
- The use of products as symhols to help us feel more comfortahle in our new
role
Role Acquisitions Phases:
- Separation from the old role - disposing of products
- Transition from one role to another‐ experimentation with new identities
- Incorporation taking on the new role
- E.g. Throwing away products associated with an ex gf
Use of Symhols and Rituals in Role Transitions:
- Products associated with new roles E.g. get a joh and dress appropriately
- Reflexive evaluation - Feedhack from others
Transitions with Role Acquisitions:
- Martial transitions e.g. Household products
- Cultural Transitions e.g. Drop cultural products when you move countries
- Social Status transitions e.g. Newly wealthy individuals huy mad shit
The Connectedness function
- Express our memhership in a group
- The use of products as symhols of our personal connections to significant
people, events, or experiences
Expressiveness function
- The use of products as symhols to demonstrate our uniqueness – how we
stand out as different from others
 Marketing implications
- Connecting products with people, places, or events
- Product help consumers stand out as unique
Multiple functions
- Satisfy several symholic functions at the same time
- E.g. Crystal gohlets received as a wedding present from grandparents
Self Concept
- Define and maintain our self-concept.
Social identity theory
- We evaluate hrands in terms of their consistency with our individual
identities
- Fit with the identities oftheir target consumers
- Consistent with all aspects of multiple self-concepts?
SpecbalCPossessbonsCandCbrands
Special Brands
- Consumers feel emotionally attached

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Types of special possessions

- Pets, Memory-Laden Ohjects (antiques from your grandparents),
Acheivement symhols (e.g. Diplomas, trophies), Collections (Sports
memorahilia, Seashells)
Why Some Products are Special
- Symholic value, Mood altering properties, Instrumental importance
TheCTransferCOfCSymbolsCMeanbngCThroughCGbftCGbvbng
Timing of gifts
- Culturally determined (e.g., holidays)
- Religious occasions
- Culturally prescrihed specific to the individual (e.g., hirthday, weddings)
Three Stages of Gift Giving
Gestation stage: Considering what to give someone
- Motives, nature of the gift, value of the gift, search time
Presentation stage: Giving
- Ceremony, wrapping, timing and surprise, attention devoted, reaction
Reformulation stage: We reevaluate the relationship hased on the gift-giving
experience
- Relationship honding, Reciprocation
- Promote their products and services as gifts (M&M’s)
- Major changes in the gift- giving process (online gifting)
- Growing use of gift cards
LectureC11
ChapterC17
Marketbng,CEthbcs,CandCSocbalCResponsbbblbtyCbnCToday’sCConsumerCSocbety
Marketing Ethics: Rules of acceptahle conduct that guide individuals and
organizations in making honest, fair, and respectful decisions ahout marketing
activities.
Consumer Ethics: Rules of acceptahle conduct (such as honesty, fairness and
respect) that apply to the range of consumer hehaviours.
Deviant consumer hehaviour

- Chapters 1-16  Average consumer in an everyday consumption context
- Some CB is considered deviant if it is
o Unexpected or sanctioned hy memhers of society

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Addictive compulsive & impulsive hehaviour

Addictive Behaviour:
- Taking action as a result of a physiological dependency
- Chemical dependency
- Dependence on product or activity
- Repeated use of product, even if dangerous
- Can he harmful to addicts and those around them
Examples: cigarettes, drugs, alcohol, Internet use and video games
Why would we care ahout such hehaviour?
- In the context of smoking…
- Numher 1 preventahle cause of death
- A leading cause of cancer, cardiovascular, and lung disease
- Smokers use more health henefits, take more sick leave, and have more joh-
related accidents than non- smokers
- Annual cost of lower productivity due to smoking in US > US$90Billion
Compulsive Behaviour:
- An irresistihle urge to perform an irrational consumption
- E.g. Wanking, or compulsively purchasing items even though you don’t need
them – another e.g. is huying every single Iphone when they’re released
Strong emotional components
- Buying may he a response to anxiety or tension
- Feel great emotional arousal In store
- Buying leads to emotional high & a loss of control
- Followed hy feelings of remorse, guilt, shame, and depression
Why do people huy compulsively?
Low self esteem
- The attention and social approval they get
- Satisfaction provided hy salesperson
- Pleasing the sales person & the company hy purchasing
- Temporarily raise a compulsive huyers’ self-esteem
Personality Trait

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- A fantasy orientation is linked with compulsive huying

- Buying makes consumer feel more important
- Somewhat alienated from society
- May feel that they are friends with a salesperson
Family related factors
- May come from families
- E.g. eating disorders & fat cunt families
Financial & Emotional Consequences of Compulsive Buying:
- Extensive reliance on credit cards
- High credit card deht
- Children, partners, & friends can all he hurt hy the spending hahits
Marketing Implications for Addictive, compulsive and impulsive hehaviour
Do marketing activities encourage addictive, compulsive, and impulsive hehavior?
- “Legal to sell, legal to promote”
- Promotion of lottery programs
- Singapore lifted a han of casinos to hoost tourism & joh growth
Marketing activities to reduce addictive and compulsive hehavior
- Hot lines to help compulsive gamhlers, advertised in casinos
- The henefits of plain packaging
Marketing activities that stimulate impulsive hehavior
- Chocolate and magazines (called ‘impulse items’) right next to cash register
ConsumerCtheft
- A desire to steal things
Prevalence
- Yearly merchandise losses in Australia retail: $7.5 hillion
- An issue for non- retailers too
- Credit card fraud; piracy of music, movies & software; coupon fraud;
Fraudulent returns; identity theft
Motivations for Consumer Theft
Two psychological factors that explain theft:
1.Temptationto steal
- Consumers want products that they legitimately cannot huy
- Emharrassing to huy or cannot legally huy
2. Ahility to rationalize hehavior
- Eating a grape: the cost seems to negligihle that we word stealing seems not
to apply
- Downloading music: ’everyone does it’ as a rationalisation

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P. 479
Black Markets
= Consumers pay for items not readily availahle. – Usually overpriced
- Sellers are unauthorized- the huying - selling process is usually illegal
- Legal, hut in short supply: tickets to sporting events & concerts
- Illegal: weapons to huild homhs, drugs, fake luxury goods, cigarettes
Deviant CB: Underage drinking and smoking:

Is marketing to hlame?
- Children are exposed to alcohol advertising
- In ads - drinking alcohol as positive & appropriate hehaviour
- Attractive models/actors produce more positive attitudes
- Images of ‘freedom from authority’
- Youthful smokers & drinkers are more likely to choose the most advertised
hrands
More critical determinants are said to he:
- Peer influence
- Parental smoking

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- Self – esteem
 Ethical Issues in Marketing

Young consumers
- Undeveloped cognitive ahilities
- Unahle to distinguish hetween ad and TV program
Advertising teaches children to
- Become materialistic,
- Act on impulsively,&
- Expect immediate gratification
Should marketers advertise to children?
Marketing Implications:
- Use a separator hetween the program and the ad
- e.g. “We will return after these messages”
- Limit advertising towards children
- Puhlic announcements to promote proper nutritional hahits
- In school education
- Cookie Monster now refers to cookies as a ‘sometimes’ food
Does marketing efforts promote ohesity?
- E.g. Lahel the meal a Pasta or salad (for a shitty pasta salad at a
restaurant)
- Candy chews or fruit chews – dieters consumed more fruit chews
Other:
- Healthy food just isn’t as tasty
- Underestimate of the calorie content of a meal
- In terms of feelings & actual hehaviour E.g. Low fat snacks – over eat
Advertising and Self Image - Does advertising make consumers dissatisfied with
their appearance?
- Advertising = what one’s life should he like?
- Social Comparisons Theory ‐individuals have a drive to compare themselves
with other people
- If we do not measure up to this idealised image, we may feel dissatisfied
- E.g. Models ‐ an ohsession with thinness
- Many men and women will never actually achieve
Do marketing practices invade consumers’ privacy?
- Retailers, hanks, credit reporting agencies, Internet husinesses, telephone
companies, and insurance firms- Collect & exchange information ahout
consumers
- Consumers worry ahout identity theft
Social responsihility issues in marketing

When are consumers most likely to engage in environmentally conscious
hehaviours (e.g.recycling)?
- Believe that it is important
- Have a positive attitude
- Convenient to do so
- MOST IMPORTANT: When the consumer perceives that their actions will
make a difference
When do consumers’ like to conserve?

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- When they feel personally responsihle & accountahle

- Messages need to he personally relevant
- With no perceived harriers
Can consumers he motivated to conserve?
- Encourage consumers to use products that conserve resources
- Provide detailed information
- Incentives to conserve – Freehies (e.g. a free shower head and light hulh),
Tax incentives; Providing personal feed hack may curtail energy use

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Consumer Behaviour 24202 Full Notes

Consumer Behaviour (University of Technology Sydney)

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Consumer Behaviour: The acquisition, consumption and disposal of goods, services,

FourCDomabns of Consumer Behaviour

Benefits from study of Consumer Behaviour

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Maslow’s Hierarchy of Needs

Motbvated consumers are energized, ready and willing to engage in goal-relevant

Abblbty increases allow consumers to ohtain resources necessary to make an

Marketers are concerned ahout consumer’s exposure to marketing stimuli to either

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- Selective (choose what you want to focus on)

SensoryCMemory: ahility to store experiences temporarily as they are produced

Short-TermCMemory: interpret incoming information in-light of existing

Long-termCMemory: information is permanently stored for later use.

A schema is a set of associations or an associative network linked to a concept.

Structure of knowledge is relevant to marketers so that they are ahle to use

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Attitudes can he hased on cognitions (thoughts) or heliefs

When consumers are motivated to process information, those attitudes hased on

UnconscbousCbnfluences impact attitudes in low effort situations such as thin-

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Marketers can put consumers in state of prohlem recognition (stimulate decision

InternalCSearch is the process of recalling stored information. Tends to he recalled

Marketers affect it through

Explain why and how consumers conduct an external search to solve a

ExternalCSearch (e.g. retail, media, internet, interpersonal search)

Judgments are evaluations of ohjects or likelihood of an outcome or event.

DecbsbonCMakbng is making a selection among options or course of action

Cognbtbve decbsbon-makbngCmodelsC(for attrihute and hrand processing)

AffectbveCdecbsbon-makbngCmodels are hased on feelings and emotions

ConsumerCDecbsbonsCbnChbgh-effortCsbtuatbons (use hoth cognitive & affective)

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5. Descrihe how consumers make affect‐hased, low‐effort decisions using feelings as

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- Impulse Buying “I just got to have it now!”

3. Discuss how consumers judge satisfaction or dissatisfaction with their decisions

McDonalds hrand manager depends on customer’s fast-paced lbfestyle and

APPLE Brand: Appearance, New technology, Updated, Reliahility , Social

Teens and millannails – horn 1980-1994

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Generation X – horn 1965-79

Boomers – horn 1946 – 1964

Seniors – AKA Grey Market over 65 years old

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activity-specific puhlications and TV shows, and lifestyle related events such

Differences in Acquisition and Consumption Behaviors

Gender and Sexual Orientation

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Regions across the world

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- Spending increases as households shift from young singles to young married

The Role of Children

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Class structure hy Culture

How Social class is Determined

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- Status crystallization – When consumers are consistent across indicators of

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How Values can he descrihed

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