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Because learning changes everything.

Chapter 4

Perspectives on Consumer Behavior

© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
Learning Objectives

LO1 Discuss why an understanding of consumer behavior is


valuable in developing advertising and promotional
programs.
LO2 Describe the steps in the consumer decision-making
process.
LO3 Explain the influence on consumer behavior of
psychological processes like perception and motivation.
LO4 Discuss behavioral learning theory and cognitive learning
theory.
LO5 Explain the influence of external factors like culture and
subculture influences.
LO6 Identify new ways to study consumer behavior.

© McGraw Hill 2
An Overview of Consumer Behavior

Consumer Behavior
• Process and activities people engage in with relation to products and
services to satisfy their needs and desires.
• Searching for.
• Selecting.
• Purchasing.
• Using.
• Evaluating.
• Disposing of.

Purchase decisions may be influenced by


the personality or lifestyle of the consumer. Source: Telluride Ski & Golf Resort

This ad for Telluride Ski Resort appeals to


those who enjoy the skier lifestyle. LO4-1

© McGraw Hill 3
Figure 4-1 Basic Model of Consumer Decision Making

Access the text alternative for slide images.

© McGraw Hill 4
The Consumer Decision-Making Process 1

Problem Recognition
• Consumer perceives a need and gets motivated to solve the problem.

• Caused by difference between consumer’s ideal state and actual


state.
• Sources:
• Out of stock.
• Dissatisfaction.
• New needs or wants.
• Related products or purchases.
• Marketer-induced problem recognition.
• New products. LO4-2

© McGraw Hill 5
The Consumer Decision-Making Process 2

Examining Consumer Motivations


• Helps understand the reasons underlying consumer purchases.
• Motives: Factors that compel a consumer to take a particular action.

• Hierarchy of needs
• Lower-level physiological and safety needs must be satisfied before
higher-order needs become meaningful.

LO4-3

© McGraw Hill 6
Figure 4-2 Maslow’s Hierarchy of Needs

Access the text alternative for slide images.

© McGraw Hill 7
Exhibit 4-5

This ad for Toyota appeals to security by promoting safety.


This ad for Jaguar appeals to self-actualization by advertising
its car as the ideal.

© McGraw Hill Sources: Toyota Motor Sales, U.S.A., Inc.; Jaguar Land Rover North America, LLC. All Rights Reserved 8
The Consumer Decision-Making Process 3

Examining Consumer Motivations continued


• Psychoanalytic theory:
• Influenced modern psychology and explanations of motivation and
personality.

• Applied to study of consumer behavior.

• Deep motives can only be determined by probing the subconscious.

• Motivation research:
• Use psychoanalytic techniques to determine consumers’ purchase
motivations.

© McGraw Hill 9
Figure 4-3 Some of the Marketing Research Methods
Used to Probe the Mind of the Consumer

In-depth interviews
Face-to-face situations in which an interviewer asks a consumer to talk freely in
an unstructured interview using specific questions designed to obtain insights into
his or her motives, ideas, or opinions.

Projective techniques
Efforts designed to gain insights into consumers’ values, motives, attitudes, or
needs that are difficult to express or identify by having them project these internal
states upon some external object.

Association tests
A technique in which an individual is asked to respond with the first thing that
comes to mind when he or she is presented with a stimulus; the stimulus may be
a word, picture, ad, and so on.

Focus groups
A small number of people with similar backgrounds and/or interests who are
brought together to discuss a particular product, idea, or issue.

© McGraw Hill 10
The Consumer Decision-Making Process 4

Examining Consumer Motivations continued


• Problems of psychoanalytic theory and motivation research:
• Psychoanalytic theory criticized as:
• Very vague.
• Unresponsive to external environment.
• Too reliant on early development of the individual.
• Uses small sample for drawing conclusions.
• Motivation research criticized for:
• Results difficult to verify.
• Lack of experimental validation.
• Findings not generalizable to entire population.

© McGraw Hill 11
The Consumer Decision-Making Process 5

Examining Consumer Motivations continued


• Contributions of psychoanalytic theory and motivation research:
• Psychoanalytic theory:
• Insights gained make more effective strategies than rationally based
appeals.
• Motivation research:
• Helps assess how and why consumers buy.
• Helps get around stereotypical or socially desirable responses.
• Forerunner of psychographics.

© McGraw Hill 12
The Consumer Decision-Making Process 6

Information Search
• Internal search: Information retrieval that involves recalling:
• Past experiences.
• Information regarding various purchase alternatives.

• External search: Seeking information from external sources.


• Internet, personal, and public sources.
• Marketer-controlled sources.
• Personal experience.

© McGraw Hill 13
Exhibit 4-7

Source: Angie’s List

AngiesList.com is a valuable source of information for consumers


engaging in external searches online.

Access the text alternative for slide images.

© McGraw Hill 14
The Consumer Decision-Making Process 7

Information Search continued


• Extent of external source to be used depends on:
• Importance of purchase decision.

• Effort needed to acquire information.

• Amount of past experience relevant.

• Degree of perceived risk associated with purchase.

• Time available.

© McGraw Hill 15
The Consumer Decision-Making Process 8

Perception
• Receiving, selecting, organizing, and interpreting information to create
meaningful picture of the world.
• Depends on:
• Internal factors.
• Characteristics of a stimulus.

In this ad for Simply


Orange, the use of color
and context influences the
consumer’s perception and
helps promote the urge to
purchase orange juice.

© McGraw Hill Source: Simple Orange Juice Company 16


The Consumer Decision-Making Process 9

Perception continued
• Sensation:
• Immediate, direct response of the senses to stimulus.

• Selecting information:
• Internal psychological factors determine what one focuses on and/or
ignores.

© McGraw Hill 17
The Consumer Decision-Making Process 10

Perception continued
• Interpreting the information:
• Organizing and categorizing information influenced by:

• Internal psychological factors.

• Nature of the stimulus.

• Selective perception:

• Selectivity occurs throughout various stages of consumer’s perceptual


process.

© McGraw Hill 18
Figure 4-4 The Selective Perception Process

Access the text alternative for slide images.

© McGraw Hill 19
The Consumer Decision-Making Process 11

Perception continued
• Selective perception:
• Selective exposure:
• Consumers choose whether or not to make themselves available to
information.
• Selective attention:
• Consumers choose to focus attention on certain stimuli and not others.

The color red is used in this Coke ad to


attract attention while also focusing on the
brand identity. Coke almost seems to own
this color, as the ad doesn’t even mention
the brand name.
Source: The Coca-Cola Company

© McGraw Hill 20
The Consumer Decision-Making Process 12

Perception continued
• Selective perception: continued
• Selective comprehension:

• Consumers interpret information on basis of own attitudes, beliefs,


motives, and experiences.

• Selective retention:

• Consumers do not remember all information they see, hear, or read


even after attending to and comprehending it.

• Mnemonics: Symbols, rhymes, associations, and images that assist


in the learning and memory process.

© McGraw Hill 21
The Consumer Decision-Making Process 13

Perception continued
• Subliminal perception:
• Ability to perceive stimulus that is below the level of conscious awareness.

• Controversial tactic with strong ethical implications.

© McGraw Hill 22
The Consumer Decision-Making Process 14

Alternative Evaluation
• Comparing brands that have been identified as capable of:
• Solving the consumption problem.

• Satisfying the needs or motives that initiated the decision process.

• Evoked set: Subset of all brands of which consumer is aware.


• Size depends on:

• Importance of the purchase.

• Time and energy spent comparing alternatives.

• Top-of-mind awareness; reminder advertising.

© McGraw Hill 23
Exhibit 4-11

The ad from the Michigan


Economic Development
corporation presents the
many benefits of Michigan
and encourages
prospective businesses to
consider it in their evoked
set of places to locate or
relocate.

© McGraw Hill Source: Michigan Economic Development Corporation 24


The Consumer Decision-Making Process 15

Alternative Evaluation continued


• Evaluative criteria and consequences.
• Evaluative criteria: Dimensions or attributes of a product that are used to
compare different alternatives.

• Objective or subjective.

• Viewed as product or service attributes.

• Functional consequences: Concrete outcomes of product or service


usage.

• Tangible and directly experienced by consumers.

© McGraw Hill 25
The Consumer Decision-Making Process 16

Alternative Evaluation continued


• Evaluative criteria and consequences. continued
• Psychosocial consequences: Abstract outcomes that are more
intangible, subjective, and personal.

• Subprocesses:

• Process by which consumer attitudes are created, reinforced, and


changed.

• Decision rules or integration strategies used to compare brands and


make purchase decisions.

© McGraw Hill 26
The Consumer Decision-Making Process 17

Attitudes
• Learned predispositions to respond to an object.

• Theoretically summarize consumer’s evaluation of an object.


• Represent positive or negative feelings and behavioral tendencies.

© McGraw Hill 27
The Consumer Decision-Making Process 18

Attitudes continued
• Multiattribute attitude model:
• Attributes of product or brand provide basis on which consumers form
attitudes.

• Consumers attach different levels of importance to different attributes.

• Salient beliefs:

• Beliefs concerning specific attributes.

• Consequences that are activated and form basis of attitude.

© McGraw Hill 28
The Consumer Decision-Making Process 19

Attitudes continued
• Multiattribute attitude model: continued

n
AB   Bi  Ei
i 1

where AB = attitude toward a brand

Bi = beliefs about the brand’s performance on attribute i

Ei = importance attached to attribute i

n = number of attributes considered

© McGraw Hill 29
The Consumer Decision-Making Process 20

Attitudes continued
• Attitude change strategies:
• Changing strength or belief rating of brand on an important attribute.

• Changing consumers’ perceptions of the importance or value of attribute.

• Adding new attributes to the attitude formation process.

• Changing perceptions of belief ratings for a competing brand.

© McGraw Hill 30
Exhibit 4-12

This Michelin ad stresses


advantages over the
competition. The Michelin
Defender tire allows cars to
stop up to 31 feet shorter
(than the competition) and
drive up to 21,000 miles
longer (than the
competition).

© McGraw Hill Source: Michelin North America, Inc. 31


The Consumer Decision-Making Process 21

Integration Processes and Decision Rules


• Integration processes:
• Combining product knowledge, meanings, and beliefs to evaluate
alternatives.
• Decision rules: Strategies used to decide among alternatives.
• Heuristics:

• Simplified decision rules customers use for purchase decisions.

• Affect referral decision rule:

• Selection is made on basis of overall impression or summary


evaluation of various alternatives under consideration.

© McGraw Hill 32
Exhibit 4-13

Market leaders, such as


Levi's, whose products enjoy
strong overall brand images,
often use ads that promote
the brand by appealing to
affect.

Source: Levi Strauss & Co.

© McGraw Hill 33
The Consumer Decision-Making Process 22

Purchase Decision
• Purchase intention:
• Predisposition to buy a certain brand by matching purchase motives with
attributes of brands considered.

• Brand loyalty:
• Preference for a particular brand that results in repeated purchases.

© McGraw Hill 34
Figure 4-5 Brands That Have the Most Brand Loyalty

Category Winnera Category Winnera


Airline JetBlue Ice Cream Ben & Jerry’s
App-based Rideshare Lyft Laptop Computer Microsoft Surface
Athletic Footwear Nike Online Retailer Amazon
Automotive Hyundai Online Video Netflix
Streaming
Casual/Fast Casual Panera Pizza Domino’s
Dining
Credit Card Discover Social Networking Instagram
Sites
Energy Drinks Red Bull
aBrands listed have highest loyalty ranking in Brand Keys 2016 Customer Loyalty Engagement Index.

© McGraw Hill Source: Brand Keys, Inc. 35


The Consumer Decision-Making Process 23

Postpurchase Evaluation
• Satisfaction occurs when consumer’s expectations are met or
exceeded.

• Dissatisfaction occurs when product performance is below


expectations.
• Cognitive dissonance: Psychological tension experienced after a
difficult purchase choice.
• Postpurchase communication is important.

© McGraw Hill 36
The Consumer Decision-Making Process 24

Variations in Consumer Decision Making


• Many purchase decisions based on habitual or routine choice process.

• Marketers need to keep brands in consumer’s evoked set.

• Marketers of new brands or those with a low market share face a


challenge.

• A more complicated decision-making process occurs when consumers


have limited experience in purchasing a particular product or service.

© McGraw Hill 37
The Consumer Learning Process 1

Behavioral Learning Theory


• Based on the stimulus–response orientation (S–R).

• Learning occurs as result of responses to external stimuli in the


environment.
• Classical conditioning: Learning is an associative process with
existing relationship between a stimulus and a response.
• A conditioned stimulus elicits a conditioned response.

• Contiguity and repetition are necessary.

• Marketers strive to associate their products and services with positive


perceptions, images, and emotions.

LO4-4

© McGraw Hill 38
Figure 4-6 The Classical Conditioning Process

Access the text alternative for slide images.

© McGraw Hill 39
Exhibit 4-16

This ad for Mariah Carey’s


new perfume follows the
classical conditioning
process. It associates its
product with the looks and
sweetness of lollipops.

© McGraw Hill Source: Mariah Carey Beauty and EA Fragrances Co 40


The Consumer Learning Process 2

Behavioral Learning Theory continued


• Operant conditioning:
• Learning occurs when individual actively operates or acts on some aspect
of the environment.

• Reinforcement: Reward or favorable consequence associated with a


particular response.

• Reinforced behavior strengthens bond between stimulus and


response.

© McGraw Hill 41
Figure 4-7 Instrumental Conditioning in Marketing

Access the text alternative for slide images.

© McGraw Hill 42
The Consumer Learning Process 3

Behavioral Learning Theory continued


• Operant conditioning: continued
• Schedules of reinforcement:

• Continuous—Learning occurs rapidly and every response is rewarded.

• Behavior is likely to cease when reinforcement stops.


• Partial or intermittent—Learning occurs more slowly but lasts longer.

• Only some responses are rewarded.


• Shaping: Reinforcement of successive acts that lead to desired behavior
pattern or response.

© McGraw Hill 43
Figure 4-8 Application of Shaping Procedures in
Marketing

Access the text alternative for slide images.

© McGraw Hill 44
The Consumer Learning Process 4

Behavioral Learning Theory continued


• Cognitive learning theory:
• Studies complex mental processes that underlie consumer decision
making.

• Perception.

• Formation of beliefs about brands.

• Attitude development and change.

• Integration.

© McGraw Hill 45
Figure 4-9 The Cognitive Learning Process

© McGraw Hill 46
Environmental Influences on Consumer Behavior 1

Culture
• Complexity of learned meanings, values, norms, and customs shared
by members of society.

Subcultures
• Smaller segments within a culture, whose beliefs, values, norms, and
patterns of behavior set them apart from the larger cultural
mainstream.
• Social class:
• Homogeneous divisions in a society into which people sharing similar
lifestyles, values, norms, interests, and behaviors can be grouped.

LO4-5

© McGraw Hill 47
Exhibit 4-18

This ad for Giorgio Armani's


fragrance Si Passione, is
meant to appeal to the
growing Hispanic subculture
in the U.S.

Source: Giorgio Armani S.p.A

© McGraw Hill 48
Environmental Influences on Consumer Behavior 2

Reference Groups
• Group whose presumed perspectives or values are being used by an
individual as basis for judgments, opinions, and actions.

• Types: Associative, aspirational, or dissociative.


• Can include families.
Situational Determinants
• Specific situation in which consumers plan to use the product or brand
directly affects their perceptions, preferences, and purchase
behaviors.
• Types: Usage, purchase, and communications situation.

© McGraw Hill 49
Figure 4-11 Roles in the Family Decision-Making Process

The initiator. The person responsible for initiating the purchase decision process—
for example, the mother who determines she needs a new car.
The information provider. The individual responsible for gathering information to
be used in making the decision—for example, the teenage car buff who knows
where to find product information in specific magazines or collects it from dealers.
The influencer. The person who exerts influence as to what criteria will be used in
the selection process. All members of the family may be involved. The mother may
have her criteria, whereas others may each have their own input.
The decision maker(s). The person (or persons) who actually makes (make) the
decision. In our example, it may be the mother alone or in combination with another
family member.
The purchasing agent. The individual who performs the physical act of making the
purchase. In the case of a car, a husband and wife may decide to choose it together
and sign the purchase agreement.
The consumer. The actual user of the product. In the case of a family car, all family
members are consumers. For a private car, only the mother might be the consumer.

© McGraw Hill 50
Alternative Approaches to Consumer Behavior

New Methodologies
• Qualitative methods.

• Linguistic or historical perspective of communications.


• Examining symbolic meanings of advertising and facets of
consumption.
New Insights
• Leads to better understanding of:
• Cultural significance of advertising messages.

• Influence of advertising images on society.

LO4-6

© McGraw Hill 51
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© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.

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