Foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada...

Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

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M A R K E T I N G

Consumer Behaviour

8


Chapter

Objectives

1. Describe how consumer behaviour is affected by two main categories of influence: environmental & individual factors.

2. Explain the role of culture in consumer behaviour.

3. Consider the effects of reference groups on consumer behaviour.

4. Distinguish between needs and motives.

5. Explain perception.

6. Define attitude and its three main components, and explain how attitude influences behaviour.

7. Demonstrate how learning theory can be applied to marketing strategy.

8. Show the steps of the consumer decision process and how environmental and individual factors affect this process.

9. Differentiate among routinized response behaviour, limited problem solving, and extended problem solving.

Consumer Behaviour 8

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Chapter

Consumer Behaviour

• The activities of individuals in obtaining, using, and disposing of goods and services, including the decision processes that precede and follow these actions.


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Chapter

Determinants of Consumer Behaviour

Consumer Behaviour

Individual factors and psychological

processes

Environmental factors

Consumerbehaviour

8

8-3

Figure 8.1


Chapter

Environmental Factors That Affect Consumer Behaviour

Cultural Influences

Social Influences• Group influences• Reference groups• Social class• Family influences

CUSTOMER DECISIONS

Consumer Behaviour 8Figure 8.2

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Chapter

Culture

• The complex of values, ideas, attitudes, institutions, and other meaningful symbols created by people that shape human behaviour, and the artifacts of that behaviour, transmitted from one generation to the next.


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Chapter

Summary of Significant CanadianCharacteristics

Consumer Behaviour 8Table 8.1

8-6

As a Function of Being a Part of the North American Reality•Modern orientation•Openness to new ideas•Egalitarianism•A rich, developing society with many needs and high materialistic expectations•Growing, more diffuse middle class

In Relation to the United States•Conservative tendencies•Traditional bias•Greater confidence in bureaucratic institutions•Collectivity orientation--reliance on institutions such as state, big business, and thechurch vs. personal risk taking•Less achievement-oriented•Lower optimism--less willing to take risks•Greater acceptance of hierarchical order and stratification•Tolerance for diversity--acceptance of cultural mosaic•Family stability•Selective emulation of the United States--resistance to some American characteristicsand dominance, yet willingness to emulate•Elitist and ascriptive tendencies


Chapter

Microculture

• A subgroup with its own distinguishing modes of behaviour.


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Chapter

Status

• Relative position in a group.


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Chapter

Role

• The rights and duties expected of an individual in a group by other members of the group.


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Chapter

Asch Phenomenon

• The impact that groups and group norms can exhibit on individual behaviour.


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Chapter

Reference Group

• A group whose value structures and standards influence a person’s behaviour.


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Chapter

Membership Group

• A type of reference group to which individuals actually belong.


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Chapter

Aspirational Group

• A type of reference group with which individuals wish to associate.


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Disassociative Group

• A type of reference group with which an individual does not want to be identified.


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Chapter

Group Influence as a Function of Product Type and Consumption Situation


Product or BrandWeak reference group influence (-)

Strong reference group influence (+)

Strong reference group influence (+)

Weak reference group influence (-)

Public necessities Influence: Weakproduct and strong brandExamples: Wristwatch,automobile, man’s suit

Public luxuries Influence: Strong product and brandExamples: Golf clubs, snow,skis, sailboat

Private necessities Influence: Weak product and brandExamples: Mattress,floor lamp, refrigerator

Private luxuries Influence: Strong product and weak brandExamples: TV game, trashcompactor, icemaker

Source: William O. Bearden and Michaeli Etzei, “Reference Group Influence on Product and Brand Purchase Decisions,” Journal of Consumer Research 9 (September 1982), p. 185, published by the University of Chicago Press. Reprinted with permission.

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Chapter

Social Class

• The relatively permanent divisions in a society into which individuals or families are categorized based on prestige and community status.


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Chapter

PSTYE

• A geodemographic classification system that identifies lifestyle cluster profiles across Canada.


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ChapterConsumer Behaviour 8

Table 8.2

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PSYTE Cluster Profile, Estimated 1999 Canadian Households (1 of 2)



Table 8.2

8-18b

PSYTE Cluster Profile, Estimated 1999 Canadian Households (2 of 2)


Chapter

Opinion Leaders

• Trendsetters – individuals who are more likely to purchase new products early and to serve as information source for others in a group.


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Figure 8.4 Relative Influence of Husbands and Wives in Decision Making

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Chapter

Environmental and Individual Factors that Influence Behaviour

Consumer Behaviour

Customer Decisions

8Figure 8.5

Environmental• Cultural influences• Social influences-group influences-reference groups-social class-family influences

Psychological Processes• Information processing• Learning• Attitude formation• Perceptual screening

Individual• resources• needs• motives• perceptions• attitudes• lifestage

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Chapter

Need

• The perceived difference between the current state and a desired state.


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Chapter

Motive

• An inner state that directs us toward the goal of satisfying a felt need.


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Chapter

Perception

• The meaning that each person attributes to incoming stimuli received through the five senses.


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Chapter

Perceptual Screen

• The filter through which messages must pass.


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Chapter

Subliminal Perception

• A subconscious level of awareness.


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Chapter

Weber’s Law

• The higher the initial intensity of a stimulus, the greater the amount of the change in intensity that is necessary in order for a difference to be noticed.


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Chapter

Attitudes

• A person’s enduring favourable or unfavourable evaluations of some object or idea.


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Chapter

Three Components of Attitude

Consumer Behaviour

Overall Attitude(overall orientation toward object or idea)

8Figure 8.7

Cognitive component(knowledge and beliefs)

Affective component(overall feelings)

Conative component(behavioural tendencies)

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Chapter

Cognitive Component

• The knowledge and beliefs one has about an object or concept.


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Chapter

Affective Component

• One’s feelings or emotional reactions.


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Chapter

Conative Component

• The way one tends to act or behave.


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Chapter

Learning

• Changes in knowledge, attitudes, and behaviour, as a result of experience.


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Chapter

Drive

• Any strong stimulus that impels action.


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Chapter

Cue

• Any object existing in the environment that determines the nature of the response to a drive.


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Chapter

Response

• The individual’s reaction the cues and drives.


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Chapter

Reinforcement

• The reduction in drive that results from a proper response.


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Chapter

Shaping

• The process of applying a series of rewards and reinforcement so that more complex behaviour can evolve over time.


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Chapter

Shaping

• The process of applying a series of rewards and reinforcement so that more complex behaviour can evolve over time.


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ChapterApplication of Learning Theory and Shaping Procedure to Marketing


Induce producttrial

Terminal Goal: Repeat Purchase Behaviour

Free samples distributed, large discount coupons enclosed

Product performance and coupon

Approximation Sequence Shaping Procedure Reinforcement Applied

Induce purchase withfinancial obligation

Discount coupon prompts purchase with little cost; coupon good for small discount on next purchase enclosed

Product performance and coupon

Induce purchase withmoderate financial obligation Small discount coupon

prompts purchase with moderate cost

Product performance

Induce purchase withfull financial obligation

Purchase occurs without coupon association

Product performance

Source: Adapted from Michael Le. Rothschild and William C. Gaidis, “Behavioral Learning Theory: Its Relevance to Marketing and Promotion,” Journal of Marketing ( Spring 1981), p. 72. Reprinted by Permission of the American Marketing Association.

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Chapter

Consumer Decision Process Input Information Processing Decision Process


Informationsearch

Problemrecognition-from marketing activities -other stimuli

Alternativeevaluation

Purchase decision andpurchase act

Postpurchaseevaluation

Environment Factors•Cultural influences•Social influences -group influences -needs -reference groups -social class -family influences

Individual Factors-motives-perceptions-attitudes-learning

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Chapter

Evoked Set

• The number of brands that a consumer actually considers in making a purchase decision.


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Chapter

Evaluative Criteria

• Features the consumer considers in making a choice among alternatives.


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Cognitive Dissonance

• The postpurchase anxiety that occurs when there is a discrepancy between a person’s knowledge and beliefs (cognitions).


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Chapter

Consumer Problem-Solving Categories• Routinized response

• Limited problem solving (LPS)

• Extended problem solving (EPS)


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Chapter

Low-Involvement Products

• Products with little significance, either materially or emotionally, that a consumer may purchase first and evaluate later (while using them).


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Chapter

High-Involvement Products

• Products for which the purchaser is highly involved in making the purchase decision.


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Foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada...

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