Chapter 3: CLASS, AGE, AND GENDER INFLUENCES

Social Class
- Members of a class that share similar values and social status

Biggest Indicators
1. Education
- Educated people are most likely employed due to the degree they earned and upwards
social mobility and a higher status in society
2. Occupation
- Gains greater status
3. Income
- Determines the expensive purchases of a person
- Determines customers that have the ability to purchase a particular product/service

Social Class Mobility

- Process of moving upward or downward on the social class spectrum
 Upward Social Class: individuals that move up from one social class to another

Conspicuous Consumption
- Purchase and obvious usage of expensive products clearly displayed in social class
Trickle-down Effect
- Consumption patterns in upper classes are copied by lower classes
Status Float
- Upper classes copied the purchase patterns and consumption behaviour of the lower
classes

Age and Consumer Identity

- As people age, their demands also age through changes in their demands

1. Seniors: mature markets. Grown because of better health care for the purpose of
longevity
2. Teens: attractive to marketers due to their size
3. Tweens: age 7-14 years old

Agentic Goals: emphasizes dominance and assertiveness. Information that is personally

related.
Communal Goals: focuses on harmony and establishing relationships
Chapter 5: CONSUMER MOTIVATION, PERCEPTION, AND ATTITUDE

CONSUMER MOTIVATION
Motivation
- Inner state of arousal leads to a kind/way of behaviour

Outcomes of High Motivation

1. Goal-relevant behaviour
2. High-effort information processing
3. High levels of involvement

Motivation leads to involvement

- Trying the product to satisfy the need and attain the goal

Goals
- Highly motivated persons become goal-oriented and perform actions to achieve their
goals

2 Types
1. Generic Goal: something that fulfils consumers’ need
2. Product-specific goal: specifies the needed product

Goal-relevant Behavior
- Course of action to take in order to achieve goals

Consumer Involvement
- Motivated consumers are highly involved consumers
 Involvement: relevance of an object to a person based on the needs and values

CONSUMER PERCEPTION
Perception
- Process of selecting, organise and interpreting stimuli to create a picture that surrounds
consumers

From Exposure to Perception

Exposure
- The process that consumers experience/contact with the adverts
- Begins the process of final purchase and consumption
- Exposure advantage generates more sales
- Product distribution impacts exposure too as highly distributed products receives more
recognition

Attention
- Attention is needed for the product to be perceived
 - Process that one devotes a mental resource to a thing
 Attention is selective: cannot give attention fully to multiple things at the same
time

Appealing to the Senses

- 5 senses are being used as the consumer contacts the stimuli

CONSUMER ATTITUDES
Attitude: evaluation of an object

TRI-COMPONENT MODEL OF ATTITUDE

1. Cognitive (think)
2. Affective (feel)
3. Conative (do)

FOUNDATIONS OF ATTITUDES
- Based on researched information
- Gathered information forms the attitude towards something

Chapter 5: CONSUMER KNOWLEDGE AND MEMORY

Knowledge: outcome of the gathered information

Knowledge Associations
1. Physical
2. Abstract ideas and concepts
Knowledge Structure
- System of information organization and storage
- How we organize and store information
Categorization
- Process of putting a mental label on a stimuli based on gathered information
Schema
- Associations with an object
Type of Schema
1. Product Brand Image: subset of associations related to a specific brand
Script
- Knowledge sequence of expected events
Script Facilitation
- Use of prior knowledge to facilitate learning
Script Disruption
- Prior knowledge to grab attention and interrupt the script
 KNOWLEDGE IS ORGANISED BASED ON INDIVIDUAL’S MINDS, INTERACTIONS,
AN ACTIVITIES
Taxonomic Categories
- Knowledge that is organized into groups
Superordinate Categories
- Different objects in a category that share minimal relations but are considered as part of
the category
- Kinds (dog)
Subordinate Categories
- More features in common with other members in the same category
- Specified kind (dog: golden retriever)
Prototypes
- Exemplar in the category
Graded Structure
- Ranking of products based on its representation
Memory Process
Storage

Environmental Working
Sensory Long-term
Input (short-term)
Memory memory
Memory
Retrieval
Encoding

Sensory Memory
-storage of stimuli that are unnoticeable
Types (a subcategory of human memory)
1. Iconic Memory (images)
- Recall visual images after the physical image is removed
2. Echoic Memory (sounds)
- Registers and temporarily holds sound information until processed and stored in the
brain

Short-term Memory
- Limited
- Holds 7 bits of information
2 Forms
1. Discursive Processing
- Store object as a basic label
2. Imagery Processing
- Store objects visually as an approximation of the reality

Long-term Memory
- Unlimited capacity store memory
2 Types
1. Autobiographical/Episodic Memory
- Stored memory that represents knowledge about experiences
2. Semantic Memory
- General information about things works
 Nostalgia Marketing
- Associating a brand to a customers memories and it taps their emotion, memories, and
experiences

Chapter 6

Consumer as a Decision Maker

- An individual who makes choices for what to purchase
Importance for marketers
- It helps marketers suit their marketing strategies to influence consumers purchasing
decision

The Internal Process

- During the decision-making process, psychological and cognitive processes occur
in the customers' minds.

Stages
1. Perception
2. Motivation
3. Attitude
4. Beliefs
5. Intentions

Decision-making Process
1. Problem Recognition: the problem is recognized and the customers are in need of a
particular product/service.

Types
1. Need Recognition: decrease in the actual state
2. Opportunity Recognition: increase in the ideal state

Forms
1. Generic Problem Recognition: broadly defined
2. Selective Problem Recognition: narrowly defined

➢ Motivating Problem Recognition: this stage is motivating cause it drives the

customers to find a solution to their problem.

2. Information Search: consumer seeks information for options and this can be online
search, word-of-mouth recos and adverts.
 a. Internal Search: gather information from the consumer's own knowledge through
their experiences.
b. External Search: gather information from outside sources (adverts, recos,
reviews, salespeople). It is time-consuming and resource intensive but it can
provide more comprehensive and objective information.

3. Evaluation of Alternatives (JUDGEMENT): options/alternatives are being

compared and consumers may consider the factors such as price, quality, and brand
reputation.

- Consumers compare features and benefits and determine which option best suits them.

4. Purchase Decision (Decision-making): consumer decides to purchase a particular

product/service.

a. Retrieved Set: set of all products/services that can be recalled/retrieved by the

consumers in their memory during the information search stage. Influenced
by knowledge, experiences, and exposure.

b. Evoked Set: this set is the subset of the retrieved set and it refers to the
products/services that consumers consider to evaluate during the
judgement stage. Influenced by the needs, wants, and criteria for evaluation.

c. Consideration Set: this set is the subset of the evoked set and it refers to the
products/services that consumers narrowed down as possible options for
purchase. Influenced by evaluation of alternatives and final decision.

5. Post-decision Processes: consumers' evaluation/reflections towards its purchase.

Theories:
a. Cognitive Dissonance Theory: discomfort that a person experiences whenever
they hold many conflicting thoughts, beliefs, or values. Applied to post-decision
processes.
b. Satisfaction-expectation Disconfirmation Model (Behavior Model): satisfaction can
be determined by finding out the gap between expectations and perception
towards performance.
★ Positive Disconfirmation: performance is better than expected
★ Negative Disconfirmation: performance is less than what is expected
Chapter 7 (Influence of Price on CB)

Consumer Behavior: choices and actions consumers make to buy items.

Factors Resonating CB:
a. Personal
b. Social
c. Psychological

Behaviorism Theory:
- John B. Watson
- Organisms make responses in which progress is observable through action.
- People associate sounds/spoken words with objects, situations, etc.

Social Exchange Theory:

- Manner of influencing
- Information furthermore includes essential resonance or largely accepted in favor the
relation and tendency for purchasing habits

Use of Pricing to influence CB

1. Price Perception: sacrifices of the customers to obtain the products/services.
2. Price Comparison: comparing the costs of the same items from several retailers.
3. Discounts and Bargains: price offerings are reduced to a lower amount.
- Discounts are reductions in price made by the shop itself.
- Bargains are the chance to steal a product and ask the shopkeeper to reduce the
price.
4. Appearances and Details: appealing details to attract customers
Chapter 8: Risk-taking in CB

Raymond Bauer
- Consumer behaviour as risk-taking (1960)
-
Comprehensive Theory:
- More work to unclear the image of risk as the central problem of CB.

 The central problem of CB is choice which is why risk is one of the pivotal aspects of CB
because it is perceived as painful.

2 aspects of risk
- Uncertainty about the outcome
 Risk with regard to the outcome can be reduced by acquiring and handling
information
- Uncertainty about the consequences
 Risk with regards of the reduction of its consequences can be dealt by reducing
the amount at stake.