MARTIN de TOURS SCHOOL OF MANAGEMENT

DEPARTMENT OF MARKETING

LESSON PLAN
MKT3530
CONSUMER BEHAVIOR
MKT3530 CONSUMER BEHAVIOR
LESSON PLAN

COURSE DESCRIPTION
A study of the nature and determinants of consumer behavior. Attention will be focused on the
influence of socio psychological factors such as personality, various social groups, demographic
variables, social class, and culture on the information of consumers’ attitudes; consumption and
purchasing behavior; including steps in decision-making process starting from problem
identification, information and fact finding, evaluation of alternatives, buying decision, and after-
purchase evaluation.

COURSE OBJECTIVES
• Appreciate the fascinating field of consumer behavior with the consumer at its center.
• Get a full grasp of quantitative and qualitative consumer research.
• Understand the reasons for mass marketing and segmentation of markets.
• Get a feel of the internal processes like consumer perception, learning and memory
attitudes, motivation and emotion, personality, self-concept and lifestyle.
• Acquire insights into the social and cultural influences on behavior.
• Understand how communication combines the individual’s inner influences to the social
and cultural influences for an adequate decision-making and adoption of products, ideas
or services.

EXAMINATION STRUCTURE
Quiz 10%
Discussion Activity 10%
Term Project 10%
Midterm Examination 30%
Comprehensive Final Examination 40%
Total 100%
LESSON PLAN

Part 1: Introduction to
Consumer Behavior
Lesson 1: Introduction: The Impact of the Digital Revolution on Consumer Behavior

Time Allocation: 1.5 hrs

Teaching/ Teaching
Learning
Brief contents Learning Aids/ Evaluation
objectives
Strategies Materials
CHAPTER 1
THE IMPACT OF THE DIGITAL Questioning
To enable REVOLUTION Lecture PowerPoint and
students to:
The digital revolution has presentation Answering in
introduced several drastic Class

Understand changes into the business
the impact environment. Quiz and
of the a) Consumers have more Exams
digital power than ever before.
revolution b) Consumers have access to
on general more information then ever
consumer before.
behavior. c) Marketers can offer more
services and products than

Understand ever before.
consumer d) The exchange between
behavior. marketers and customers
is increasingly interactive

Identify the and instantaneous.
two major e) Marketers can gather more
approaches information about
to the study consumers more quickly
of and easily.
consumer f) Impact reaches beyond the
behavior. PC-based connection to
the Web.

Understand
the DEFINITION AND SCOPE OF
developme CONSUMER BEHAVIOR
nt of the
Consumer behavior is defined
marketing as the behavior that consumers
concept. display in searching for,
purchasing, using, evaluating,

Understand and disposing of products and
the role of services that they expect will
consumer satisfy their needs.
research in
The term consumer behavior is
the study of often used to describe two
consumer different kinds of consuming
behavior. entities: the personal consumer
and the organizational

Understand consumer.
how a) The personal consumer
segmentati buys goods and services
on, for his or her own use, for
targeting, the use of the household,
and or as a gift for a friend.
positioning b) The organizational
are used in consumer—includes profit
 the study of and not-for-profit
consumer businesses, government
behavior. agencies, and institutions,
all of which must buy

Understand products, equipment, and
customer services in order to run
value, their organizations.
satisfaction
, and DEVELOPMENT OF THE
retention. MARKETING CONCEPT AND THE
DISCIPLINE OF CONSUMER

Learn the BEHAVIOR
role of
The production concept
ethics in assumes that consumers are
marketing. mostly interested in product
availability at low prices.

Learn the
The product concept assumes
societal that consumers will buy the
marketing product that offers them the
concept. highest quality, the best
performance, and the most

Understand features.
the three
The selling concept is a
interlocking natural extension of the
stages of production and product
consumer concepts. In this concept,
decision- marketing’s primary focus is
making. selling the product(s) that it has
unilaterally decided to produce.

Instead of trying to persuade
customers to buy what the firm
had already produced,
marketing-oriented firms found
that it was a lot easier to
produce only products they had
first confirmed, through
research, that consumers
wanted.
a) This consumer-oriented
concept came to be known
as the marketing concept.
b) Consumer needs and
wants became the firm’s
primary focus.

THE ROLE OF CONSUMER

RESEARCH
1. Consumer research describes
the process and tools used to
study consumer behavior.
2. Two theoretical perspectives that
guide the development of
consumer research
methodology:
a) The positivist approach —
 tends to be objective and
empirical, to seek causes
for behavior, and to
conduct research studies
that are generalized to
larger populations.
b) The interpretivist
approach—tends to be
qualitative and based on
small samples.

SEGMENTATION, TARGETING,
AND POSITIONING

Three elements form a strategic
framework for bringing marketing
efforts to consumers:
a) Market segmentation—
the process of dividing a
market into subsets of
consumers with common
needs or characteristics.
b) Market targeting—
selecting one or more of
the segments identified for
the company to pursue.
c) Positioning—developing a
distinct image for the
product or service in the
mind of the consumer.

CUSTOMER VALUE,
SATISFACTION, AND RETENTION

Customer value is defined as
the ratio between the customer’s
perceived benefits (economic,
functional, and psychological)
and the resources (monetary,
time, effort, psychological) used
to obtain those benefits.

Customer satisfaction is the
individual’s perception of the
performance of the product or
service in relation to his or her
expectations.

Customer retention makes it in
the best interest of customers to
stay with the company rather
than switch to another firm.

MARKETING ETHICS AND SOCIAL

RESPONSIBILITY

The societal marketing concept
requires that all marketers fulfill
the needs of the target audience
in ways that improve society as a
whole, while fulfilling the
 objectives of the organization.

Marketing ethics and social
responsibility are important
components of organizational
effectiveness.

CONSUMER BEHAVIOR AND

DECISION MAKING ARE
INTERDISCIPLINARY

Marketing theorists borrowed
heavily from concepts developed
in other scientific disciplines:
a) Psychology—the study of
the individual.
b) Sociology—the study of
groups.
c) Social psychology—the
study of how an individual
operates in groups.
d) Anthropology—the
influence of society on the
individual.
e) Economics to form the
basis of this new marketing
discipline.

CONSUMER DECISION-MAKING

The process of consumer
decision-making can be viewed
as three distinct but interlocking
stages:
a) The input stage influences
the consumer’s recognition
of a product need
b) The process stage focuses
on how consumers make
decisions
c) The output stage consists of
purchase behavior and
postpurchase evaluation
Lesson 2: Consumer Research

Time Allocation: 3 hrs

Teaching/ Teaching
Learning
Brief contents Learning Aids/ Evaluation
objectives
Strategies Materials

To enable CONSUMER RESEARCH Questioning

students to: PARADIGMS Lecture PowerPoint and
• Consumer researchers today presentation Answering in
use two different types of research Class

Compare the methodology to study consumer
differences behavior Quiz and
between 1. Quantitative research is Exams
customer descriptive in nature, and is used by
research and researchers to understand the
marketing effects of various promotional inputs
research. on the consumer, thus enabling

Understand marketers to “predict” consumer
the behavior.
differences 2. Qualitative research methods
between are administered by a highly trained
quantitative interviewer/analyst who also
research and analyzes the findings—thus, they
qualitative tend to be somewhat subjective,
research. and findings cannot be generalized

Understand to larger populations.
the use of • Marketers use qualitative
positivist and research findings to discover new
interpretivist ideas and to develop promotional
research. strategy, and quantitative research

Learn the findings to predict consumer
steps in the reactions to various promotional
consumer inputs.
research
process. THE CONSUMER RESEARCH

Understand PROCESS
the difference
between 1. Defining the objectives of the
primary and research
secondary • A carefully thought-out statement
research. of objectives helps to define the

Understand type and level of information
the needed.
differences
between 2. Collecting and evaluating
qualitative secondary data
and • Secondary information is any
quantitative data originally generated for some
research purpose other than the present
designs research objectives.

Discuss the • Locating secondary data is called
differences secondary research. Original
between
 qualitative research performed by individual
and researchers or organizations to
quantitative meet specific objectives is called
data primary research.
collection • Syndicated Data - Because it is
instruments often very costly to collect primary

Identify the data, many companies routinely
various purchase syndicated data on
probability consumption patterns.
and
nonprobabilit 3. Designing a primary research
y sampling study.
methods. - Quantitative Research Designs
3.1 Observational Research -
consumers are watched during
the process of buying and using
products.
• Mechanical observation is
using a mechanical or
electronic device to record
customer behavior or
response to a particular
marketing stimulus.
3.2 Experimentation - test the
relative sales appeal of many
types of variables such as
package designs, prices,
promotional offers
• In such experiments (called
causal research), only one
variable is manipulated at a
time (the independent
variable), although all other
elements are kept constant.
• A major application of causal
research is test marketing in
which, prior to launching a
new product, elements such
as package, price, and
promotion are manipulated
in a controlled setting in
order to predict sales or
gauge the possible
responses to the product.
3.3 Surveys - ask consumers about
their purchase preferences in
person, by mail, or by telephone.
• Personal interview surveys
most often take place in the
home or in retail shopping
areas. One of the common
forms today is the mall
intercept.
• Telephone surveys are also
used to collect consumer
 data; however, evenings and
weekends are often the only
times to reach the working
homemaker.
• Mail surveys are conducted
by sending questionnaires
directly to individuals at their
homes.
• Online surveys are
sometimes conducted on the
Internet
- Quantitative Research Data
Collection Instruments
• Data collection instruments
include questionnaires,
personal inventories, attitude
scales, and, for qualitative
data, discussion guides.
• Data collection instruments
are usually pretested and
“debugged” to assure validity
and reliability of the research
study.
- A study is said to have
validity if it does, in fact,
collect the appropriate data
needed to answer the
questions or objectives.
- A study is said to have
reliability if the same
questions, asked of a similar
sample, produce the same
findings.
• Questionnaires - can be sent
through the mail to selected
respondents for self-
administration or can be
administered by field
representatives in person or
by telephone.
a) The questionnaire itself
can be disguised or
undisguised as to its true
purpose.
b) Open-ended questions
require answers to be in
the respondent’s own
words.
c) Closed-ended questions
require that the respondent
merely check the
appropriate answer from a
list of options.
• Attitude scales—researchers
often present respondents
 with a list of products or
product attributes for which
they are asked to indicate
their relative feelings or
evaluations.
a) Likert scales ask the
respondent to check or write the
number corresponding to their
level of “agreement” or
“disagreement” to statements.
b) Semantic differential scales
ask the respondent to evaluate
a concept, etc., on the basis of
each attribute by checking the
point on the continuum that best
reflects their feelings.
c) Behavior intention scales
measure the likelihood that
consumers will act in a certain
way in the future
d) Rank-order scales ask the
respondent to rank items in
order of preference in terms of
some criterion.
- Qualitative Research Designs
and Data Collection Methods
1. Depth Interviews—a lengthy,
nonstructured interview between a
respondent and a highly trained
interviewer.
2. Focus Groups—consist of eight to
ten respondents who meet with a
moderator/analyst for a group
discussion.
3. Projective Techniques—are
designed to tap the underlying
motives of individuals despite their
unconscious rationalizations or
efforts at conscious concealment..
4. Metaphor Analysis—a new stream
of consumer research suggests that
most communication is nonverbal,
and that people do not think in
words, but in images.

4. Sampling and Data Collection

• The sampling plan addresses
three questions.
a) Whom to survey (the
sampling unit).
b) How many to survey (the
sample size).
c) How to select (the
sampling procedure).
• The size of the sample is
 dependent both on the size of the
budget and on the degree of
confidence that the marketer
wants to place in the findings.
• If the researcher wants the
findings to be projectable to the
total population, then a
probability sample should be
chosen; if it is sufficient to have
the findings “representative” of the
population, then a nonprobability
sample can be selected.

5. Data Analysis and Reporting

Research Findings
• In qualitative research, the
moderator or test administrator
usually analyzes the responses
received.
• In quantitative research, the
researcher supervises the analysis.
• The body of the report includes a
full description of the methodology
used and, for quantitative research,
also includes tables and graphics to
support the findings.
- A sample of the questionnaire
is usually included in the
appendix to enable
management to evaluate the
objectivity of the findings.
Lesson 3: Market Segmentation

Time allocation: 1.5 hrs

Learning Brief Contents Teaching/ Teaching Evaluation

Objectives Learning Aids/
Strategies Materials
To enable the Lecture PowerPoint Questioning
students to: WHAT IS MARKET presentation and

Define SEGMENTATION? Answering
market • Market segmentation is the Questions in
segmentation. process of dividing a potential market Class

Explain how into distinct subsets of consumers
and why with common needs or characteristics Quiz and
market and selecting one or more segments Exams
segmentation to target with a distinct marketing mix.
is used.
• Prior to the development of market

Identify the
segmentation, mass marketing was
nine major
the prevailing method. The same
bases for
product and marketing mix were
segmentation
offered to all consumers.

Enumerate
the variables
WHO USES MARKET
within the nine
SEGMENTATION?
segment
• Both sides of the market place
bases.
benefit from market segmentation.

Categorize
a) Consumers receive products
the criteria for
targeted to their specific needs.
targeting a
b) Marketers are able to offer more
market
differentiated products, increasing
segment.
profits, market share, etc.

Explain the
c) Retailers, industrial manufacturers,
use of
hotels, and the media have all
concentrated,
benefited from market segmentation.
differentiated,
and
BASES FOR SEGMENTATION
countersegmen
tation when • There are nine major categories of
implementing a consumer characteristics on which to
segmentations base market segmentation:
strategy. 1. Geographic segmentation, the
market is divided by location.
2. Demographic segmentation is
the process of segmenting the
market based on age, sex, marital
status, income, occupation, and
education
3. Psychological segmentation
(characteristics) - consumers can
be segmented in terms of their
needs and motivation, personality,
perceptions, learning, level of
involvement, and attitudes.
4. Psychographic segmentation -
segmenting based on personality
and attitude measures
5. Sociocultural segmentation -
segments on the basis of stages
in the family life cycle, social
class, core cultural values,
subcultural memberships, and
cross-cultural affiliation.
6. Use-related segmentation
categorizes consumers in terms of
usage rate, awareness status,
and degree of brand loyalty.
7. Usage situation segmentation -
The occasion or usage situation
often determines what consumers
will purchase or consume.
8. Benefits Segmentation -
Marketers and advertisers seek to
isolate one particular benefit that
they should communicate to the
consumer.
9. Hybrid Segmentation
Approaches - Marketers
commonly segment markets by
combining many segmentation
bases, rather than relying on a
single base.

CRITERIA FOR EFFECTIVE

TARGETING OF MARKET
SEGMENTS
To be an effective target, a market
segment should be:
a) Identifiable.
b) Sufficient (in terms of size).
c) Stable or growing.
d) Accessible (reachable) in
terms of both media and
cost

IMPLEMENTING SEGMENTATION
STRATEGIES
• Differentiated marketing is when
the marketer targets several
segments using individual marketing
mixes.
• Concentrated marketing is when
the marketer targets only one
segment with a unique marketing mix.
• Countersegmentation strategy
Sometimes companies find that it is
beneficial to recombine some
segments into a new single segment
that could be targeted with an
individually tailored product or
promotional campaign.
LESSON PLAN

Part 2: Consumers as an
Individual
 Lesson 4: Consumer Motivation

Time Allocation: 1.5 hours

Learning Brief Contents Teaching/ Teaching Evaluation
Objectives Learning Aids/
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To enable Lecture Powerpoint Questioning
students to MOTIVATION AS A PSYCHOLOGICAL presentation and

Explain FORCE answering
motivation • Motivation can be described as the driving questions in

Define the force within individuals that impels them to class.
terms needs action. This driving force is produced by a
and goals state of tension, which exists as the result of Quiz and

Understand an unfilled need. Exams
positive and • Needs
negative 1. Innate needs are physiological or
motivation. biogenic, and include food, water, air,

Discuss the clothing, shelter, and sex.
difference 2. Acquired needs are needs that we learn
between in response to our culture or environment and
rational and include the need for self-esteem, prestige,
emotional affection, power, and learning.
motives. • Goals

Understand 1. Generic goals are the general classes
the dynamic or categories of goals that consumers select
nature of to fulfill their needs.
motivation. 2. Product-specific goals are the products

Explain the they select to fulfill their needs.
various • Positive and Negative Motivation
defense - Motivation can be positive or negative in
mechanisms direction - we may feel a driving force toward

Identify the some object or condition, or a driving force
four types of away from some object or condition.
arousal
stimulus.
• Positive and Negative Goal

Explain 1. A positive goal is one toward which
need systems behavior is directed, and thus is often
referred to as an approach object.
2. A negative goal is one from which
behavior is directed away, and thus is
sometimes referred to as an avoidance
object.
• Rational versus Emotional Motives
1. Rational motives - consumers carefully
consider all alternatives and choose those
that give them the greatest utility.
2. Emotional motives - the selection of
goals according to personal or subjective
criteria (e.g., pride, fear, affection, status).

THE DYNAMIC NATURE OF MOTIVATION

1. Needs and goals are constantly growing
and changing.
a) They don’t cease because existing
needs are never completely
satisfied.
 b) Newer, higher-level needs replace
fulfilled needs.
2. Success and Failure Influence Goals
• Individuals who successfully achieve their
goals usually set new and higher goals for
themselves.
• The nature and persistence of an
individual’s behavior often is influenced by
expectations of success or failure in reaching
certain goals.
3. Substitute Goals
• When an individual cannot attain a
specific goal or type of goal that he or she
anticipates will satisfy certain needs, behavior
may be directed to a substitute goal.
4. Frustration
• Failure to achieve a goal often results in
feelings of frustration. Individuals react
differently to frustrating situations.
5. Defense Mechanisms
• People who cannot cope with frustration
often mentally redefine the frustrating
situation in order to protect their self-image
and defend their self-esteem.
• Reaction to the frustration of not being
able to reach goal attainment can take many
forms, such as aggression, rationalization,
regression, withdrawal, projection, autism,
identification, and repression.
6. Arousal of Motives
• Physiological Arousal - Bodily needs, at
any one specific moment in time, are rooted
in an individual’s physiological condition at
that moment.
• Emotional Arousal - Thinking or
daydreaming results in the arousal or
stimulation of latent needs
• Cognitive Arousal - Random thoughts or
personal achievement can lead to a cognitive
awareness of needs.
• Environmental Arousal - The set of needs
activated at a particular time is often
determined by specific cues in the
environment.

TYPES AND SYSTEMS OF NEEDS

1. Hierarchy of Needs
• Maslow's theory postulates five basis levels
of human needs, which rank in order of
importance from low-level (biogenic) needs to
higher-level (psychogenic) needs.
• Maslow’s hierarchy of needs theory
suggests that individuals seek to satisfy
lower-level needs before higher-level needs
emerge.
2. A Trio of Needs Theory
• Some psychologists believe in the
existence of a trio of basic needs: the needs
for power, for affiliation, and for achievement.

MOTIVATIONAL RESEARCH
• Motivational research is a term generally
used to refer to qualitative research designed
to uncover the consumer’s subconscious or
hidden motivation.
Lesson 5: Personality and Consumer Behavior

Time Allocation: 1.5 hours

Learning Brief Contents Teaching/ Teaching Evaluation
Objectives Learning Aids/
Strategies Materials
To enable Lecture Powerpoint Questioning
students to WHAT IS PERSONALITY? presentation and

Describe the Personality is defined as those inner answering
nature and psychological characteristics that both questions in
development determine and reflect how a person class.
of personality. responds to his or her environment.

Discuss
personality THE NATURE OF PERSONALITY Quiz and
theory. In the study of personality, three Exams

Trace the distinct properties are of central
shift from importance:
consumer a) Personality reflects
materialism to individual differences.
compulsive b) Personality is consistent
consumption. and enduring.

Explain c) Personality can change.
consumer
ethnocentrism. THEORIES OF PERSONALITY

Describe the 1. Freudian Theory
elements of • The Id is the “warehouse” of
brand primitive and impulsive drives, for
personality. which the individual seeks immediate

Discuss the satisfaction without concern for the
concepts of specific means of that satisfaction.
self and self-
• Superego is the individual’s
image.
internal expression of society’s moral
and ethical codes of conduct.
• Ego is the individual’s conscious
control which functions as an internal
monitor that attempts to balance the
impulsive demands of the id and the
sociocultural constraints of the
superego.
2. Neo-Freudian Personality Theory
• Several of Freud’s colleagues
disagreed with his contention that
personality is primarily instinctual and
sexual in nature. They argued that
social relations are fundamental to
personality development.
• Karen Horney proposed three
personality groups: compliant,
aggressive, and detached.
3. Trait Theory
• It is primarily quantitative or
empirical, focusing on the
measurement of personality in terms
of specific psychological
characteristics called traits.
• Types of traits measured include:
a) Consumer
innovativeness—how
receptive a person is to new
experiences.
b) Consumer materialism—
the degree of the
consumer’s attachment to
“worldly possessions.”
c) Consumer
ethnocentrism—the
consumer’s likelihood to
accept or reject foreign-
made products.

PERSONALITY AND
UNDERSTANDING CONSUMER
DIVERSITY
1. Consumer Innovativeness and
Related Personality Traits
• Personality traits to be discussed
include:
a) Consumer innovativeness.
b) Dogmatism.
c) Social character.
d) Need for uniqueness.
e) Optimum stimulation level.
f) Variety-novelty seeking.
2. Cognitive Personality Factors
• Two cognitive personality traits
have been useful in understanding
selected aspects of consumer
behavior. They are:
a) Need for cognition.
b) Visualizers versus
verbalizers.
3. Consumer Materialism to
Compulsive Consumption
• Consumer Materialism is a trait of
people who feel their possessions are
essential to their identity.
• Fixated consumption behavior:
Fixated consumers’ characteristics
are:
a) A deep (possibly:
“passionate”) interest in a
particular object or product
category.
b) A willingness to go to
considerable lengths to
secure additional examples
of the object or product
category of interest.
 c) The dedication of a
considerable amount of
discretionary time and
money to searching out the
object or product.
• Compulsive consumption -
Consumers have an addiction; in
some respects, they are out of
control, and their actions may have
damaging consequences to them and
those around them.
• Consumer Ethnocentrism:
Responses to Foreign-Made Products

BRAND PERSONALITY
• A brand personification recasts
consumers’ perception of the
attributes of a product or service into
the form of a “human-like character.”
• It seems that consumers can
express their inner feelings about
products or brands in terms of
association with a known personality.

SELF AND SELF-IMAGE

1. One or Multiple Selves
- The idea that an individual embodies
a number of different multiple selves
suggest that marketers should target
their products and services to
consumers within the context of a
particular self.
2. The Makeup of the Self-Image
- Four aspects of self-image are:
a) Actual self-image—how
consumers see themselves.
b) Ideal self-image—how
consumers would like to see
themselves.
c) Social self-image—how
consumers feel others see
them.
d) Ideal social self-image—
how consumers would like
others to see them.
e) Expected self-image—how
consumers expect to see
themselves at some
specified future time.
f) “Ought-to” self—traits or
characteristics that an
individual believes it is his
or her duty or obligation to
possess.
3. The Extended Self
- Consumers’ possessions can be
seen to “confirm” or “extend” their
self-images.
4. Altering the Self
- Consumers often wish to change
themselves—to become a different or
improved self.
Lesson 6: Consumer Perception

Time Allocation: 3 hours

Learning Brief Contents Teaching/ Teaching Evaluation
Objectives Learning Aids/
Strategies Materials
To enable ELEMENTS OF PERCEPTION Lecture Powerpoint Questioning
students to • Perception is the process by presentation and

Define which an individual selects, answering
perception and organizes, and interprets stimuli into a questions in
its key meaningful and coherent picture of class.
elements. the world.

Differentiate Quiz and
between Sensation Exams
absolute
threshold and
• Sensation is the immediate and
direct response of the sensory organs
differential
to stimuli (an advertisement, a
threshold.
package, and a brand name).

Explain the
• Sensory receptors are the human
marketing
organs (i.e., the eyes, ears, nose,
applications of
mouth, and skin) that receive sensory
just noticeable
inputs, sight, sound, smell, taste, or
difference
touch.
(j.n.d.).

Review the
The Absolute Threshold
concept of
subliminal • The lowest level at which an
perception individual can experience a sensation
is called the absolute threshold.

Discuss the • Adaptation refers specifically to
dynamics of “getting used to” certain sensations,
perception. becoming accustomed to a certain

Explain the level of stimulation.
concept of • Sensory adaptation is a problem
Gestalt that causes many advertisers to
psychology. change their advertising campaigns

Understand regularly.
the
implications of The Differential Threshold
consumer • The minimal difference that can be
imagery. detected between two stimuli is called

Describe the difference threshold or the j.n.d.
consumers’ (just noticeable difference).
perception of • Weber’s law states that the
risk and key stronger the initial stimulus, the
risk reduction greater the additional intensity
strategies. needed for the second stimulus to be
perceived as different.
• Manufacturers and marketers
endeavor to determine the relevant
j.n.d. for their products so that:
a) Negative changes—
reductions or increases in
 product size, or reduced
quality—are not readily
discernible to the public.
b) So that product
improvements are readily
discernible to the consumer
without being wastefully
extravagant.

Subliminal Perception
• People are also stimulated below
their level of conscious awareness—
they can perceive stimuli without
being consciously aware of it.

DYNAMICS OF PERCEPTION
• There are three aspects to
perception—selection, organization,
and interpretation of stimuli.
a) Individuals are very
selective as to which stimuli
they “recognize.”
b) They subconsciously
organize the stimuli they do
recognize according to
widely held psychological
principles.
c) And they interpret such
stimuli (i.e., they give
meaning to them)
subjectively in accordance
with their needs,
expectations, and
experiences.
Perceptual Selection
• Consumers subconsciously
exercise selectivity as to the stimuli
they perceive.
• Which stimuli get selected
depends on two major factors in
addition to the nature of the stimulus
itself:
a) Consumers’ previous
experience as it affects their
expectations.
b) Their motives at the time
(their needs, desires,
interests, and so on).

Selective Perception
• The consumer’s “selection” of
stimuli (selective perception) from
the environment is based on the
interaction of expectations and
motives with the stimulus itself.
1. Selective exposure—consumers
actively seek out messages they
find pleasant or with which they
are sympathetic.
2. Selective attention—consumers
have a heightened awareness of
the stimuli that meet their needs
or interests.
3. Perceptual defense—individuals
unconsciously may distort
information that is not consistent
with their needs, values, and
beliefs.
4. Perceptual blocking—
consumers screen out enormous
amounts of advertising by simply
“tuning out.”

Perceptual Organization
• Gestalt psychology - People do
not experience the numerous stimuli
they select from the environment as
separate and discrete sensations.
a) People tend to organize
stimuli into groups and
perceive them as unified
wholes.
• Three of the most basic principles
of perceptual organization are figure
and ground, grouping, and closure.
1. Figure and Ground - Stimuli that
contrast with their environment
are more likely to be noticed.
2. Grouping can be used
advantageously by marketers to imply
certain desired meanings in
connection with their products.
3. Closure - If the pattern of stimuli to
which they are exposed is incomplete,
they tend to perceive it as complete—
they fill in the missing pieces.

Perceptual Interpretation
• The interpretation of stimuli is
uniquely individual because it is
based on what individuals expect to
see in light of their previous
experience.
• How close a person’s
interpretations are to reality depends
on the clarity of the stimulus, the past
experiences of the perceiver, and his
or her motives and interests at the
time of perception.
Perceptual Distortion
• With respect to perceptual
distortion, individuals are subject to
a number of influences that tend to
distort their perceptions: Physical
Appearances; Stereotypes; First
Impressions; Jumping to Conclusions;
Halo Effect

CONSUMER IMAGERY
• Consumers attempt to preserve or
enhance their self-images by buying
products they believe agree with that
self-image and avoiding products that
do not agree.

Perceived Risk
• Perceived risk is the uncertainty
that consumers face when they
cannot foresee the consequences of
their purchase decision.
• The degree of risk that consumers
perceive and their own tolerance for
risk taking are factors that influence
their purchase strategies.
• Types of risk include: functional
risk, physical risk, financial risk, social
risk, psychological risk, and time risk.

How Consumers Handle Risk

• Consumers seek information
• Consumers are brand loyal.
• Consumers select by brand image.
• Consumers rely on store image.
• Consumers buy the most
expensive model.
• Consumers seek reassurance.
Lesson 7: Consumer Learning

Time Allocation: 3 hours

Learning Brief Contents Teaching/ Teaching Evaluation
Objectives Learning Aids/
Strategies Materials
To enable Lecture Powerpoint Questioning
students to CONSUMER LEARNING presentation and

Explain • Consumer learning can be thought of answering
consumer as the process by which individuals questions in
learning acquire the purchase and consumption class.
theory and knowledge and experience that they
identify the apply to future related behavior.
necessary • Motivation is based on needs and Quiz and
elements goals. Exams

Discuss • If motives serve to stimulate learning,
the elements cues are the stimuli that give direction
of Classical to the motives
Conditioning • Response is how individuals react to
theory. a cue—how they behave—constitutes

Review their response.
the elements • Reinforcement increases the
of likelihood that a specific response will
Instrumental occur in the future as the result of
Conditioning particular cues or stimuli.

Describe
modeling
(observation BEHAVIORAL LEARNING THEORIES
al learning).

Explain • Behavioral learning theories are
and apply sometimes called stimulus-response
cognitive theories.
learning a) When a person responds in a
theory in a predictable way to a known
marketing stimulus, he or she is said to
situation. have “learned.”

Relate
involvement Classical Conditioning
theory to • Conditioned learning results when
consumer a stimulus that is paired with another
behavior. stimulus elicits a known response and

Describe serves to produce the same response
the when used alone.
Elaboration a) An unconditioned stimulus
Likelihood might consist of a well-known
Model. brand symbol that implies

Outline technological superiority and
measures of trouble-free operation (the
involvement. unconditioned response).

Understand b) Conditioned stimuli might
how consist of new products
consumer bearing well-known symbols.
learning can
be Strategic Applications of Classical
measured. Conditioning
• Repetition works by increasing the
strength of the association and by
slowing the process of forgetting.
a) After a certain number of
repetitions retention declines.
b) This effect is known as
advertising wearout and can
be decreased by varying the
advertising messages.
• Stimulus generalization explains
why imitative “me too” products succeed
in the marketplace: consumers confuse
them with the original product they have
seen advertised.
a) The principle of stimulus
generalization is applied by
marketers to product line, form,
category extensions, family
branding and licensing.
• Stimulus discrimination is the
opposite of stimulus generalization and
results in the selection of specific
stimulus from among similar stimuli.
a) The consumer’s ability to
discriminate among similar
stimuli is the basis of
positioning strategy, which
seeks to establish a unique
image for a brand in the
consumer’s mind.

Instrumental Conditioning
• Instrumental conditioning - the
stimulus that results in the most
satisfactory response is the one that is
learned.
a) In consumer behavior terms,
instrumental conditioning
suggests that consumers learn
by means of a trial-and-error
process in which some
purchase behaviors result in
more favorable outcomes (i.e.,
rewards) than other purchase
behaviors.
b) A favorable experience is
instrumental in teaching the
individual to repeat a specific
behavior.
c) Two types of reinforcement (or
reward) influence , which
provided that the likelihood for
a response would be
 repeated.
- The first type, positive
reinforcement, consists of
events that strengthen the
likelihood of a specific
response.
- Negative reinforcement is
an unpleasant or negative
outcome that also serves to
encourage a specific behavior.
d) Forgetting and extinction—
when a learned response is no
longer reinforced, it diminishes
to the point of extinction; that
is, to the point at which the link
between the stimulus and the
expected reward is eliminated.

Strategic Applications of
Instrumental Conditioning
• Aside from the experience of using
the product itself, consumers can
receive reinforcement from other
elements in the purchase situation, such
as the environment in which the
transaction or service takes place, the
attention and service provided by
employees, and the amenities provided.
• Reinforcement schedules—
marketers have found that product
quality must be consistently high and
provide customer satisfaction with each
use for desired consumer behavior to
continue.
• Shaping—the reinforcement of
behaviors that must be performed by
consumers before the desired behavior
can be performed
• Massed versus distributed learning—
timing has an important influence on
consumer learning.
a) Question—should a learning
schedule be spread out over a period
of time (distributed learning), or
should it be “bunched up” all at once
(massed learning)?

Modeling or Observational Learning

• Modeling or observational learning
(also called vicarious learning) -
Consumers observe how others behave
in response to certain situations
(stimuli), the ensuing results
(reinforcement) that occur, and they
imitate (model) the positively-reinforced
behavior when faced with similar
situations.
a) Modeling is the process
through which individuals
learn behavior by observing
the behavior of others and the
consequences of such
behavior.
b) Their role models are usually
people they admire because
of such traits as appearance,
accomplishment, skill, and
even social class.

COGNITIVE LEARING THEORY

• Cognitive learning theory holds that
the kind of learning most characteristic
of human beings is problem solving, and
it gives some control over their
environment.

Information Processing
• Information processing is related to
both the consumer’s cognitive ability
and the complexity of the information to
be processed.
• Individuals differ in terms of their
ability to form mental images and in
their ability to recall information.

Involvement Theory and Consumer

Relevance
• A consumer’s level of involvement
depends on the degree of personal
relevance that the product holds for the
consumer.
a) High-involvement purchases
are those that are very
important to the consumer in
terms of perceived risk.
b) Low-involvement purchases
are purchases that are not
very important to the
consumer, hold little
relevance, and little perceived
risk.

Central and Peripheral Routes to

Persuasion
1. Central and peripheral routes to
persuasion—the central premise is that
consumers are more likely to weigh
information carefully about a product
and to devote considerable cognitive
effort to evaluating it when they are
highly involved with the product
category and vice versa.
a) Use of the central route to
persuasion is more effective in
marketing for high-
involvement purchases.
b) The peripheral route to
persuasion is more effective
for low-involvement
purchases.

2. The elaboration likelihood model

(ELM) suggests that a person’s level of
involvement during message processing
is the critical factor in determining the
most effective route of persuasion.
c) For high-involvement
purchases, marketers should
use arguments stressing the
strong, solid, high-quality
attributes of their products—
thus using the central route.
d) For low-involvement
purchases, marketers should
use the peripheral route to
persuasion, focusing on the
method of presentation rather
than on the content of the
message

MEASURES OF CONSUMER
LEARNING
Recognition and Recall Measures
• Recognition and recall tests are
conducted to determine whether
consumers remember seeing an ad, the
extent to which they have read it or
seen it and can recall its content, their
resulting attitudes toward the product
and the brand, and their purchase
intentions.

Cognitive Responses to Advertising

1. Comprehension is a function of the
message characteristics, the
consumer’s opportunity and ability
to process the information, and the
consumer’s motivation (or level of
involvement).
2. To ensure a high level of
comprehension, many marketers
conduct copy testing either before
the advertising is actually run in
media (called pre-testing) or after it
appears (post-testing).
Attitudinal and Behavioral Measures
of Brand Loyalty
1. Brand loyalty is the ultimate
desired outcome of consumer
learning.
2. Attitudinal measures are
concerned with consumers’ overall
feelings about the product and the
brand, and their purchase
intentions.
3. Behavioral measures are based
on observable responses to
promotional stimuli—purchase
behavior, rather than attitude toward
the product or brand.
Lesson 8: Consumer Attitude Formation and Change

Time Allocation: 3 hrs

Learning Brief Contents Teaching/ Teaching Aids/ Evaluation
Objectives Learning Materials
Strategies
To enable the WHAT ARE ATTITUDES? Lecture PowerPoint Questioning
students to: • An attitude is a learned presentation and

Describe predisposition to behave in a Answering
attitude in consistently favorable or unfavorable Questions in
terms of its four way with respect to a given object. Class
elements.

Discuss the The Attitude “Object” Quiz and
structural Exams
models of • Object refers to such things as:
attitude product, product category, brand,

Describe service, possessions, product use,
how attitudes advertisement price, or retailer.
are formed.

Describe Attitudes Are a Learned
how attitudes Predisposition
are learned. 1. Attitudes are learned

Identify the a) They are formed as a result of
sources of direct experience with the product,
influence on information acquired from others,
attitude and exposure to mass media.
formation.

Outline and 2. Attitudes Have Consistency
explain the five a) Attitudes are relatively
strategies for consistent with the behavior they
changing reflect.
consumer
attitudes. Attitudes Occur Within a Situation
a) By situation we mean events or
circumstances that, at a particular
time, influence the relationship
between an attitude and a
behavior.

STRUCTURAL MODELS OF
ATTITUDES

1. Tricomponent Attitude Model

• According to the tricomponent
attitude model, attitudes consist of
three major components: cognition,
affect, and conation.
• Cognitions are previous knowledge
or experiences with or about the object.
• The affective component of an
attitude consists of the consumer’s
emotions or feelings.
• Conation is concerned with the
likelihood or tendency that an individual
will undertake a specific action or
behave in a particular way with regard
to the attitude object.

2. Multi-Attribute Attitude Models

• Multi-attribute attitude models
examine attitudes in terms of selected
product attributes or beliefs.

2.1 The Attitude-Toward-Object Model

• The consumer’s attitude toward a
product or specific brands of a product
is a function of the presence (or
absence) and evaluation of certain
product-specific beliefs and/or
attributes.

2.2 The Attitude-Toward-Behavior

Model
• The individual’s attitude toward
behaving or acting with respect to an
object

2.3 Theory-of-Reasoned-Action Model

• To understand intention we also
need to measure the subjective norms
that influence an individual’s intention to
act.
a) A subjective norm can be
measured directly by
assessing a consumer’s
feelings as to what relevant
others (family, friends,
roommates, co-workers)
would think of the action being
contemplated.
b) They accomplish this by
assessing the normative
beliefs that the individual
attributes to relevant others,
as well as the individual’s
motivation to comply with each
of the relevant others.

2.4 Theory of Trying-to-Consume

• The theory of trying-to-consume is
designed to account for the cases
where the action or outcome is not
certain but reflects the consumer’s
efforts to consume.
a) Sometimes personal
impediments or environmental
impediments prevent the desired
outcome.
2.5 Attitude-Toward-the-Ad Models
• The consumer forms various feelings
(affects) and judgments (cognitions) as
the result of exposure to an ad.
• These feelings and judgments in turn
affect the consumer’s attitude toward
the ad and beliefs about the brand
acquired from exposure to the ad.
• Finally, the consumer’s attitude
toward the ad and beliefs about the
brand influence his or her attitude
toward the brand.

ATTITUDE FORMATION

How Attitudes Are Learned

• When we speak of the formation of
an attitude, we refer to the shift from
having no attitude toward a given object
to having some attitude toward it.
• In general, the more information
consumers have about a product or
service, the more likely they are to form
attitudes about it, either positive or
negative.

Sources of Influence on Attitude

Formation
• The formation of consumer attitudes
is strongly influenced by personal
experience, the influence of family and
friends, direct marketing, and mass
media.
• The primary means by which
attitudes toward goods and services are
formed is through the consumer’s direct
experience in trying and evaluating
them.
• Sometimes attitudes follow the
purchase and consumption of a product.

Personality Factors
1. Individuals with a high need for
cognition (information) are likely to
form positive attitudes in response
to ads that are rich in product-
related information.
2. Consumers who are relatively low in
need for cognition (information) are
more likely to form positive attitudes
to ads that feature attractive models
or well-known celebrities.
STRATEGIES OF ATTITUDE
CHANGE

1. Attitude changes are learned; they

are influenced by personal
experience and other sources of
information, and personality affects
both the receptivity and the speed
with which attitudes are likely to be
altered.

2. Marketers have several attitude-

change strategies from which to
choose:
a) Changing the consumer’s
basic motivational function.
b) Associating the product with
an admired group or event.
c) Resolving two conflicting
attitudes.
d) Altering components of the
multi-attribute model.
e) Changing consumer beliefs
about competitors’ brands.

Basic Motivational Function

1. Utilitarian function—changing
attitudes by showing that the product
serves a useful purpose that the
consumers did not previously consider.
2. Ego-defensive function—offers
reassurance to the consumer’s self-
concept.
3. Value-expressive function—
anticipate and appeal to the consumer’s
values, lifestyle, and outlook.
4. Knowledge function—individuals
generally have a strong need to know
and understand the people and things
with whom they come in contact.

BEHAVIOR CAN PRECEDE OR

FOLLOW ATTITUDE FORMATION

Cognitive Dissonance Theory

1. Cognitive dissonance theory -
discomfort or dissonance occurs
when a consumer holds confusing
thoughts about a belief or an
attitude object (either before or after
the purchase).
2. Postpurchase dissonance occurs
after the purchase.
a) The consumer is not happy
 with the purchase—so they
adjust their attitudes to
conform to their behavior.
3. Tactics that consumers can use to
reduce dissonance include
reduction:
a) By rationalizing the decision
as being wise.
b) By seeking out advertisements
that support the original
reason for choosing the
product.
c) By trying to “sell” friends on
the positive features of the
brand.
d) By looking to known satisfied
owners for reassurance.

Attribution Theory
• Attribution theory attempts to
explain how people assign causality to
events on the basis of either their own
behavior or the behavior of others.
• Self-perception theory addresses
individuals’ inferences or judgments as
to the cause of their own behavior.
• Internal and external attributions—
attitudes develop as consumers look at
and make judgments about their own
behavior.
• Defensive attribution—consumers
are likely to accept credit personally for
success, and to credit failure to others
or to outside events.
• Foot-in-the-door technique- based
on the premise that individuals look at
their prior behavior and conclude that
they are the kind of person who says
“Yes” to such requests.
a) Such self-attribution serves to
increase the likelihood that
they will agree to a similar,
more substantial request.

Attributions Toward Others

• Every time a person asks “Why?”
about a statement or action of another
or “others”— attribution toward others
theory is relevant.

Attributions Toward Things

• It is in the area of judging product
performance that consumers are most
likely to form product attributions
toward things.
• Specifically, they want to find out
why a product meets or do not meet
their expectations.
Lesson 9: Communication and Consumer Behavior

Time Allocation: 1.5 hrs

Learning Brief Contents Teaching Teaching Aids/ Evaluation
Objectives Learning Materials
Strategies
To enable the Lecture PowerPoint Questioning
students to: COMPONENTS OF COMMUNICATION presentation and
Answering

Define The Sender Questions in
communication Class
by enumerating 1. The sender is the initiator of the
the five communication and can be a formal Quiz and
elements or informal source. Exams

Elaborate 2. A formal communications source
the bases of might be the organization
credibility for a communicating the message.
communication 3. An informal communications
source. source might be a parent or a friend

Outline the who gives product information or
factors advice.
affecting the
target The Receiver
audience’s 1. The receiver is the targeted
reception of a prospect or a customer.
communication 2. There are also intermediary

Describe the audiences for a message and
feedback unintended audiences
process in
communication The Medium

Explain the 1. The medium is the channel or way
elements of a the message is communicated.
persuasive 2. It can be an impersonal
communication communications channel, such as
s strategy. a mass medium like a newspaper or

Define and television program.
discuss the 3. It can be an interpersonal
elements of a communications channel—an
message informal conversation between two
strategy. friends—or a formal conversation

Discuss between a salesperson and a
involvement customer.
theory.

Discuss the The Message
central
elements of 1. The message can be a verbal
message message, spoken or written, and
presentation usually can contain more specific
and their product information than a
implications for nonverbal message.
marketers. 2. Or, it can be a nonverbal message
in the form of symbolic
communication.
The Feedback
1. Prompt feedback permits the sender
to reinforce, to change, or to modify
the message to ensure that it is
understood in the intended way.

THE COMMUNICATIONS PROCESS

The Message Initiator (Source)
1. The source (initiator) must encode
the message in such a way that its
meaning is interpreted by the
targeted audience in precisely the
intended way.
2. Encoding can be done through
words, pictures, symbols,
spokespersons, and special
channels.

Credibility
1. The credibility of the source affects
the decoding of the message.
2. The perceived honesty and
objectivity of the source contributes
to his/her credibility.
3. Credibility of informal sources is
built on the perception that they
have nothing to gain from their
recommendation.
4. Credibility of formal sources is built
on intention, reputation, expertise,
and knowledge.
5. Credibility of spokespersons and
endorsers—the spokesperson that
gives the product message is often
perceived as the source.
6. Message credibility—the reputation
of the retailer who sells the product
has a major influence of message
credibility.
7. Effects of time on source
credibility—the sleeper effect
a) Consumers simply forget the
source of the message faster
than they forget the message
itself.

The Target Audience (Receivers)

• Receivers decode the messages
they receive on the basis of their
personal experience and personal
characteristics.
1. Barriers to Communication
• Consumers selectively perceive
advertising messages - They tend to
ignore advertisements that have no
special interest or relevance to them.
2. Psychological Noise
• Things that impair reception of a
message, such as competing
advertising messages or distracting
thoughts are called psychological
noise.

Feedback—The Receiver’s Response

• Only through feedback can the
sender determine if and how well the
message has been received.
• Unlike interpersonal
communications, mass communications
feedback is rarely direct; instead, it is
usually inferred.

DESIGNING PERSUASIVE
COMMUNICATIONS

Communications Strategy
• The sponsor must first establish the
primary communications objectives,
which might be awareness, promoting
sales, encouraging certain practices.

Target Audience
• It is essential that the sponsor
segment the audience into groups that
are homogeneous in terms of some
relevant characteristic. This enables the
marketer to create specific messages
for each target group and run them in
specific media that are seen or heard by
each target group.

Media Strategy
1. First, the sponsor should develop a
consumer profile of the target
market.
2. Next, a medium with an appropriate
audience profile needs to be
selected.

Message Strategies
• The message is the thought, idea,
attitude, image, or other information that
the sender wishes to convey to the
intended audience.

Message Structure and Presentation

1. Advertising resonance is defined
as wordplay, often used to create a
double meaning, used in
combination with a relevant picture.
2. Should a marketer stress the
benefits to be gained by using a
specific product (positive message
framing), or the benefits to be lost
by not using the product (negative
message framing)?
3. One-sided messages tell
consumers only the good points
(benefits). Two-sided messages
tell consumers both good (benefits)
and bad (disadvantages) points of
the product.
4. Comparative advertising claims
product superiority over one or more
explicitly named or identified
competitors.
5. Order effects—communications
researchers have found that the
order in which a message is
presented affects audience
receptivity.
6. Repetition—is an important factor
in learning. Repetition, or frequency
of the ad, affects persuasion, ad
recall, brand name recall, and brand
preferences.

Advertising Appeals
• Factual and emotional appeal
effectiveness varies with the
circumstance and the audience.
1. Fear Appeals - The mention of
possible harmful effects of a product
category or usage situation causes
negative attitudes toward the
product.
2. Humor—a significant portion of ads
use humor because marketers
believe it increases ad
effectiveness.
3. Abrasive advertising—they work
because of the sleeper effect as
only the brand name and the
persuasive message are retained
over time.
4. Sex in advertising—there is more
daring sexual imagery, extending far
beyond the traditional product
categories

Audience participation
• The provision of feedback changes
the communications process from one-
way to two-way communication.
LESSON PLAN

Part 3: Consumers in Their

Social and Cultural Settings
Lesson 10: Reference Groups and Family Influences

Time Allocation: 3 hrs

Teaching/ Teaching
Learning
Learning Aids/ Evaluation
objectives
Strategies Materials
To enable Lecture PowerPoint Questioning
students to: WHAT IS A GROUP? presentation and
Answering in
• Define a • A group is two or more people Class
group. who interact to accomplish either
individual or mutual goals. Quiz and
• Understand Exams
the power of • Sometimes groups are classified
reference by membership status.
groups on a) A group to which a person
consumer either belongs or would
behavior. qualify for membership is
called a membership group.
• Identify six
consumer- • There are also groups in which
relevant an individual is not likely to
groups. receive membership, despite
acting like a member by adopting
the group’s values, attitudes, and
• Describe the behavior—this is considered to
five types of be symbolic groups.
reference
groups. UNDERSTANDING THE POWER
OF REFERENCE GROUPS
• Explain the
major forms
• A reference group is any
of reference
person or group that serves as a
group
point of comparison (or
appeals.
reference) for an individual in
forming either general or specific
• Discuss how
values, attitudes, or a specific
the family
guide for behavior.
has
a) They help us understand
changed.
the impact of other people
on an individual’s
• Explain the consumption beliefs,
role of the attitudes, and behavior.
family in the
consumer
socialization SELECTED CONSUMER-RELATED
of REFERENCE GROUPS
individuals.
• Five specific reference groups
• List and are considered because they
describe the give us a kind of cross-section of
three major the types of groups that influence
functions of consumers’ attitudes and
 the family. behavior. They are:
a) Friendship groups.
• Describe the b) Shopping groups.
relationship c) Work groups.
between d) Virtual groups or
family communities.
decision-
making and CELEBRITIES AND OTHER
consumption REFERENCE GROUP APPEALS
-related
roles. • Celebrities and other similar
reference group appeals are
• Contrast the used very effectively by
traditional advertisers to communicate with
family life their markets.
cycle and
the • Celebrities can be a powerful
nontradition force in creating interest or
al family life actions with regard to purchasing
cycle. or using selected goods and
services.

• Identification may be based on

admiration, on aspiration, on
empathy, or on recognition.

• Five major types of reference

group appeals in common
marketing usage are:
1) Celebrity appeals.
2) Expert appeals.
3) Common man appeals.
4) Executive and employee
appeals.
5) Trade or spokes-character
appeals.

THE FAMILY IS A CONCEPT IN

FLUX

• Traditionally, the family is

defined as two or more persons
related by blood, marriage, or
adoption who reside together.

• Although families sometimes

are referred to as households,
not all households are families.

• Three types of families dominate:

the married couple, the nuclear
family, and the extended family.
Types include:
1. The married couple—a husband
 and wife, is the simplest
structure.
2. The nuclear family—a husband
and wife and one or more
children. This is still
commonplace.
3. The extended family—a
husband, wife, one or more
children, and at least one
grandparent. At one time this
was the norm, but geographic
mobility has reduced its
presence.
4. A fourth form, the single-parent
family—one parent and at least
one child—is growing due to
divorce, separation, and out-of-
wedlock births.

SOCIALIZATION OF FAMILY
MEMBERS

• The socialization of family

members is a central family
function.

• In the case of young children,

this process includes imparting
to children the basic values and
modes of behavior consistent
with the culture.

• Marketers frequently target

parents who are looking for
assistance in the task of
socializing their children.

OTHER FUNCTIONS OF THE

FAMILY

• Other basic functions include

economic well-being, emotional
support, and suitable family
lifestyles.

FAMILY DECISION MAKING AND

CONSUMPTION-RELATIED
ROLES

• Marketers most frequently

examine the attitudes and
behavior of the one family
member whom they believe to be
the major decision maker.
• Sometimes they also examine
the attitudes and behavior of the
person most likely to be the
primary user of the product or
service.

THE FAMILY LIFE CYCLE

• Sociologists and consumer

researchers have long been
attracted to the concept of the
family life cycle (FLC) as a
means of depicting what was
once a rather steady and
predictable series of stages that
most families progressed
through.

• FLC analysis enables marketers

to segment families in terms of a
series of stages spanning the life
course of a family unit.

• The FLC is a composite variable

created by systematically
combining such commonly used
demographic variables as marital
status, size of family, age of
family members (focusing on the
age of the oldest or youngest
child), and employment status of
the head of household.

• The ages of the parents and the

relative amount of disposable
income usually are inferred from
the stage in the family life cycle.

• The text divides the treatment of

the FLC concept into two
sections.
a) The first section considers
the traditional FLC schema.
b) The alternative FLC stages,
including increasingly
important nontraditional
family structures are
considered separately.
Lesson 11: Social Class and Consumer Behavior

Time Allocation: 1.5 hrs

Teaching/ Teaching
Learning
Brief contents Learning Aids/ Evaluation
objectives
Strategies Materials
To enable WHAT IS SOCIAL CLASS? Lecture PowerPoint Questioning
students to: presentation and
• Social class is defined as the Answering in
• Distinguish division of members of a society Class
between into a hierarchy of distinct status
and define classes, so that members of Quiz and
social class each class have relatively the Exams
and social same status, and members of all
status. other classes have either more
or less status.
• List and
briefly THE MEASUREMENT OF SOCIAL
discuss the CLASS
variations in
the number • There is no general agreement
and types of as to how to measure social
social-class class.
categories.
• The result is a wide variety of
• Explain the measurement techniques, which
three broad may be classified into subjective
measures of measures, reputational
social class. measures, and objective
measures.
• Comment
on social LIFESTYLE PROFILES OF THE
class SOCIAL CLASSES
profiles as a
way of • Consumer research has found
distinguishin evidence that within each of the
g between social classes, there is a
social constellation of a specific lifestyle
classes. factors (shared beliefs, attitudes,
activities, and behaviors) that
• Articulate a distinguish members of a social
definition of class from members of other
social social classes.
mobility and
its practical • People in any class may possess
consequenc values, attitudes, and behavioral
es for patterns that are a hybrid of two
marketers. or more classes.

• Explain SOCIAL CLASS MOBILITY

geodemogra
phic • Individuals can move either up or
clustering down in social class standing
from the class position held by
• Distinguish their parents.
the affluent
consumer • Most Americans think of upward
and their mobility.
importance a) This results in the upper
to classes being the
marketers. reference group.
b) Recognizing these
• Discuss aspirations, marketers
several frequently incorporate
specific higher-class symbols into
applications their advertising.
of social
class • Social class mobility also
information contributes to products and
to consumer services filtering down from a
behavior. higher level to a lower one.

GEODEMOGRAPHIC
CLUSTERING

• Traditional social class measures

have been enhanced by the
linkage of geograp ocioeconomic
consumer data to create more
powerful geodemographic
clusters.

SOCIAL CLASS AND

COMMUNICATON

• Social class groupings differ in

terms of their media habits and
in how they transmit and receive
communications.

• Regional differences in
terminology, choice of words and
phrases, and patterns of usage
also tend to increase as we
move down the social class
ladder.

• Selective exposure to various

types of mass media differs by
social class.
Lesson 12: The Influence of Culture on Consumer Behavior

Time Allocation: 1.5 hrs

Teaching/ Teaching
Learning
Brief contents Learning Aids/ Evaluation
objectives
Strategies Materials
To enable WHAT IS CULTURE? Lecture PowerPoint Questioning
students to: presentation and
• Culture is a study generally Answering in
• Explain requires a detailed examination Class
culture and of the character of the total
how it is society, including such factors as Quiz and
acquired. language, knowledge, laws, Exams
religions, food customs, music,
• Discuss how art, technology, work patterns,
culture is products, and other artifacts that
learned. give a society its distinctive
flavor.
• Describe
how culture • In a sense, culture is a society’s
may be personality.
measured
and • Culture is the sum total of
examined. learned beliefs, values, and
customs that serve to direct the
• Outline consumer behavior of members
American of a particular society.
core values.
• Beliefs consist of the very large
number of mental or verbal
statements that reflect a person’s
particular knowledge and
assessment of something.

• Values also are beliefs, however,

values differ from other beliefs
because they must meet the
following criteria:
1) They are relatively few in
number,
2) They serve as a guide for
culturally appropriate behavior,
3) They are enduring or difficult to
change,
4) They are not tied to specific
objects or situations, and
5) They are widely accepted by the
members of a society.

• Customs are overt modes of

behavior that constitute culturally
approved or acceptable ways of
behaving in specific situations.
THE INVISIBLE HAND OF
CULTURE

• Often, it is only when we are

exposed to people with different
cultural values or customs that
we become aware of how culture
has molded our own behavior.

CULTURE IS LEARNED

• At an early age we begin to

acquire from our social
environment a set of beliefs,
values, and customs that make
up our culture.

• As children play, they act out and

rehearse important cultural
lessons and situations.

CULTURE IS DYNAMIC

• Culture continually evolves;

therefore, the marketer must
carefully monitor the
sociocultural environment in
order to market an existing
product more effectively or to
develop promising new products.

• The changing nature of culture

means that marketers have to
consistently reconsider:
a) Why consumers are now doing
what they do.
b) Who are the purchasers and the
users of their products?
c) When they do their shopping.
d) How and where they can be
reached by the media.
e) What new product and service
needs are emerging?

THE MEASUREMENT OF
CULTURE

• There are a variety of measures

of culture; projective tests,
attitude measurement
techniques, as well as content
analysis, consumer fieldwork,
and value measurement
instruments.
Lesson 13: Subculture and Consumer Behavior

Time Allocation: 1.5 hrs

Teaching/ Teaching
Learning
Brief contents Learning Aids/ Evaluation
objectives
Strategies Materials
To enable WHAT IS SUBCULTURE? Lecture PowerPoint Questioning
students to: • Members of specific presentation and
subcultures possess beliefs, Answering in
• Define values, and customs that set Class
subculture. them apart from other members
of the same society. Quiz and
• Discuss the Exams
methods • Subculture is defined as being a
used for distinct cultural group that exists
defining and as an identifiable segment within
segmenting a larger, more complex society.
the various
subcultures NATIONALITY SUBCULTURES
in America.
• For many people, nationality is
an important subcultural
• Outline the
reference that guides what they
geographic
value and what they buy.
impact of
nationality
• Although most U.S. citizens are
subcultures. born in the United States, some
still retain a pride and
• Explain the identification with the language
importance and customs of their ancestors.
of the
prominent • This identification can manifest
religious itself in consumption behavior.
subcultures.
• Identify the
consequenc
• When it comes to consumer
behavior, ancestral pride is
e of regional
manifested most strongly in the
and
consumption of ethnic foods, in
geographic
travel to their “homeland,” and in
subcultures.
the purchase of numerous
• Identify the cultural artifacts.
major racial
subcultures. • A good illustration of the
• Define and importance of ethnic origin as a
discuss the subcultural market segment is
Generation the Hispanic American
Y, subculture.
Generation
X, baby AGE SUBCULTURES
boomers,
and the • Four age subculture segments
older have been singled out for
consumer discussion (Generation Y,
markets. Generation X, baby boomers,
 and seniors) because their
• Describe the distinctive lifestyles qualify them
relationship for consideration as subcultural
of sex roles groups.
and
consumer THE BABY BOOMBER MARKET
behavior. • They are especially attractive
because:
• Discuss how a) They are largest age
marketers category alive today.
segment the b) They make important
Working consumer purchase
Woman decisions.
market. c) They contain a small
subsegment of trendsetting
consumers—Yuppies—
who influence the
consumer tastes of other
age segments of society.

SEX AS A SUBCULTURE
• Because sex roles have an
important cultural component, it
is quite fitting to examine gender
as a subcultural group.

SUBCULTURAL INTERACTION
• All consumers are
simultaneously members of more
than one subcultural segment;
this can be viewed as
subcultural interaction.

• Marketers should strive to

understand how multiple
subcultural memberships interact
to influence target consumers’
relevant consumption behavior.

• Promotional strategy should not

be limited to a single subcultural
membership.
LESSON PLAN

Part 4: The Consumer’s

Decision-Making Process
Lesson 14: Consumer Influence and the Diffusion of Innovations

Time Allocation: 1.5 hrs

Teaching/ Teaching
Learning
Learning Aids/ Evaluation
objectives
Strategies Materials
To enable WHAT IS OPINION LEADERSHIP? Lecture PowerPoint Questioning
students to: presentation and
• Opinion leadership (or word-of- Answering in
• Define mouth communications) is the Class
opinion process by which one person
leadership (the opinion leader) informally Quiz and
and explain influences the actions or Exams
the attitudes of others, who may be
dynamics of opinion seekers or merely
the opinion opinion recipients.
leadership • The key characteristic of the
process. influence is that it is
interpersonal and informal and
• Describe takes place between two or more
viral people, none of whom
marketing. represents a commercial selling
source that would gain directly
• Describe the from the sale of something.
dynamics of
the opinion DYNAMICS OF THE OPINION
leadership LEADERSHIP PROCESS
process.
• Opinion leaders are remarkably
• Describe the effective at influencing
motivations consumers in their product-
of opinion related decisions.
leaders and • The information or advice that an
opinion opinion leader dispenses may
receivers. provide all types of tangential
personal benefits, it may confer
• Explain the attention, imply some type of
four basic status, grant superiority,
measureme demonstrate awareness and
nt expertise, and give the feeling of
techniques possessing inside information
for and the satisfaction of
measuring “converting” less adventurous
opinion souls.
leadership. • In addition to self-involvement,
the opinion leader may also be
• Discuss how motivated by product
the involvement, social involvement,
situational and message involvement.
environment • Opinion leaders who are
, the motivated by product
interpersona involvement may find themselves
l flow, and so pleased or so disappointed
the multistep with a product that they simply
 flow affect must tell others about it.
opinion • Those who are motivated by
leadership. social involvement need to share
product-related experiences.
• Describe • Individuals who are bombarded
how opinion with advertising messages and
leaders can slogans tend to discuss them
be created. and the products they are
designed to sell.
• Describe the
diffusion MEASUREMENT OF OPINION
process LEADERSHIP

• Discuss the • In measuring opinion leadership,

consumer the researcher has a choice of
adoption four basic measurement
process. techniques:
1) The self-designating method.
2) The sociometric method.
3) The key informant method.
4) The objective method.

THE SITUATIONAL ENVIRONMENT

OF OPINION LEADERSHIP

• Product discussions generally

occur within relevant situational
contexts (e.g., when a specific
product or a similar product is
used or serves as an outgrowth
of a more general discussion that
touches on the product
category).
• Opinion leaders and opinion
receivers often are friends,
neighbors, or work associates,
for existing friendships provide
numerous opportunities for
conversation concerning
product-related topics.

THE INTERPERSONAL FLOW OF

COMMUNICATION

• A classic study of voting

behavior concluded that ideas
often flow from radio and print
media to opinion leaders and
from them to the general public.
• This so-called two-step flow of
communication theory portrays
opinion leaders as direct
receivers of information from
impersonal mass-media sources,
which in turn transmit (and
 interpret) this information to the
masses.
• This theory views the opinion
leader as a middleman between
the impersonal mass media and
the majority of society.

THE DIFFUSION PROCESS

• The diffusion process is

concerned with how innovations
spread, and how they are
assimilated within a market.
• Diffusion is the process by which
the acceptance of an innovation
is spread by communication to
members of a social system over
a period of time.

THE ADOPTION PROCESS

• The second major process in the

diffusion of innovations is
adoption.
• The focus of this process is the
stages through which an
individual consumer passes
although arriving at a decision to
try or not to try or to continue
using or to discontinue using a
new product.
Lesson 15: Consumer Decision Making and Beyond

Time Allocation: 1.5 hrs

Teaching/ Teaching
Learning
Brief contents Learning Aids/ Evaluation
objectives
Strategies Materials
To enable Lecture PowerPoint Questioning
students to: WHAT IS A DECISION? presentation and
Answering in
• Describe a • A decision is the selection of an Class
decision. option from two or more
alternative choices. Quiz and
• Enumerate • If the consumer has no Exams
the three alternatives from which to
levels of choose and is literally forced to
consumer make a particular purchase or
decision take a particular action, then this
making. does not constitute a decision.

• Explain the LEVELS OF CONSUMER

four models DECISION MAKING
of consumer
decision
making. • Not all consumer decisions
receive or require the same
amount of effort in the
• Outline a
information search.
model of
consumer • Researchers have identified
decision- three specific levels of consumer
making. decision making: extensive
problem solving, limited
problem solving, and
• Discuss the
routinized response behavior.
three stages
of consumer
decision MODELS OF CONSUMERS: FOUR
making. VIEWS OF CONSUMER DECISION
MAKING
• Discuss
purchase • The term models of consumers
and refer to a general view or
postpurchas perspective as to how and why
e behavior individuals behave as they do.
as part of • Four views will be examined:
the 1) An economic view.
consumer 2) A passive view.
decision 3) A cognitive view.
process. 4) An emotional view.

• Explain A MODEL OF CONSUMER

consumer DECISION MAKING
gifting
behavior. • The model looks at cognitive
processes, problem solving, and
• Describe the to some degree, the emotional
elements of aspects of consumer decision
the making as well.
consuming
and OUTPUT
possessing
process. • The output portion of the
consumer decision-making
model concerns two closely
associated kinds of postdecision
activity: purchase behavior and
postpurchase evaluation.

• The objective of both activities is

to increase the consumer’s
satisfaction with his or her
purchase.

CONSUMER GIFTING BEHAVIOR

• The amount of money spent and

feelings generated by gifts make
them an interesting part of
consumer behavior.

• Gifting behavior is the process

of gift exchange that takes place
between a giver and receiver.

• It includes gifts given to (and

received from) others and gifts to
oneself, or self-gifts.

BEYOND THE DECISION:

CONSUMING AND POSSESSING

• Consumer choices might be

viewed at the beginning of the
consumption process rather
than at the end.

1) The choice or purchase decision

is the input of the process.
2) The input stage includes a
consumption set and a
consumption style.
3) The process stage consists of
using, possessing, collecting,
and disposing of things and
experiences.
4) The output stage would include
changes in feelings, attitudes,
and behaviors, as well as
reinforcement of a lifestyle.