HD 24202 Consumer Behaviour

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HD 24202 CONSUMER BEHAVIOUR
Consumer Behaviour (University of Technology Sydney)
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CONSUMER BEHAVIOUR 25300

SUMMARY
Chapter 1 An Introduction to Consumer Behaviour +

Chapter 2 MAO + Lecture Week 2
What is Consumer Behaviour? / Defining

It creates goods and services that consumers will:
• Want
• Like
• Use
• Recommend to others.
It involves choices about the Consumption of Time.

It is how marketing can influence consumers’ Thoughts, Feelings and Actions.
It is the Acquisition, Consumption and Disposition of goods, services, time and ideas
by decision-making units over time.
What it involves?

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Involves:
• People
• Products / Goods
• Services
• Activities
• Ideas
• Consumer feelings
• Dynamic Process – every day, every time
Consumer Behaviour as a field of study
Why?
To gain Insight and Create Solutions
As marketers, What do we need?
Offers
Consumer decision can involve many people, is important to understand what reflect
their actions and, who are the influencers.
How much they decide to spend may be influenced by their perceptions of how much
they recall spending in the past.
Elements
How much consumers decide to spend may be influenced by their perceptions of
how much they recall spending in the past
The three elements decisions are often related to: Personal Goals, Safety concerns
or a Desire to reduce economic, Social or Psychological Risk.

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An offering meets someone’s Needs, Values, or Goals – a form of Self-expression, Fit

into a group, Feelings, Gain acceptance, Self-control.
Find for privacy, Family traditions, Culture influences, Pleasurable consumptions.
Acquiring an Offering
• The process which a consumer comes to own = Acquisition Behaviour
• Involves decisions about Time / Money (can depend on perceptions
and attitude toward time / time of day influences consumption decisions)
• Involves decisions about Product Categories and Variety
• Deadlines can affect it
• Consumers tend to procrastinate in redeeming coupons and gift cards
• Attitudes towards Materialism, Status and Self-concept
Using an Offering
• The process by which Consumer Uses
• Usage Behaviour
• Products can Symbolise something
• How we Feel about or who we are
Disposing of an Offering
• The process by which a Consumer Discards

• How we get rid of it
• Sometimes about Ethics and Social responsibility issues
Ways of Disposing
! Finding a new use for it
! Get rid of it temporarily
! Get rid of it permanently
Sales of a product can be increased:

• Uses larger amount of the product
• Uses the product more frequently
• Uses it for longer periods
Affects of researches
Positive
• Better consumer experiences

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• Building customer relationship

• More efficient and effective marketplace
• Helping consumers making better decisions
Negative
• Invasion of privacy
• Unscrupulous firms
• Difficulty of conducting due to culture barriers
• Deceptive practices
• Lying to customers
• Promise to compensate respondents
What influences Consumer Behaviour?

• Psychological Cores
• Process of Making Decision
• Consumer’s Culture
• Consumer Behaviour outcomes and issues

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Psychological Cores
• Motivation, Ability and Opportunity (Internal Process)
• Exposure, Attention and Perception
• Memory and Knowledge
• Forming and Changing Attitudes
I) Consumer Motivation
It is defined as “an inner state of action” that provides energy needed to achieve a
goal.
Motivated consumers are energised, ready, and willing to engage in a Goal-Relevant
Activity.
Psychologically or Environmental driven.
"Effects on Motivation
• High Effort Behaviour

– Creates willingness to expend time and energy on Preparatory
Behaviours
– Takes considerable effort
– Consumers pay carefully attention
– Attempt to understand or comprehend goal-relevant information
– Evaluate critically
– Try to remember later (recall)
– Feel Involved (evokes psychological state)
• Low Effort
- Devote little attention to learn, effort
- May use shortcuts making-decisions
"Felt Involvement: psychological experience of the motivated consumer

! Enduring Involvement vs Situation Involvement
! Cognitive Involvement vs Affective Involvement
Enduring: long-term interest in an offering, activity or decision

Situational: temporary interest cause by a situational circumstance
Cognitive: interest in thinking about and learning information pertinent to an offering,
activity or decision
Affective: interest in expending emotional energy and evoking deep feelings

Involvement can be an extension of yourselves.

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We can be involved with a brand, ads or medium (tv, newspaper, internet) or a

particular article.
Emotional connection makes consumers less price sensitive towards a brand.

Response involvement: interest in certain decisions and behaviours
"What determines Motivation?
Personally relevant:
Career, Romance, Relationships, Hobbies – it fuels your motivation to process
information, make decisions and take actions
Consistent with Self-concept:
e.g. when we buy clothes, we are often making a statement about some aspect of
who we are
Values:
Identifying a brand and make Emotional Connection

Abstract beliefs that guide what people regard as important good

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Needs:
An internal state of tension cause by discrepancy between the current and an
ideal or desire state.
Maslow’s Hierarchy:
• Can be Internal and affected by External

• Need is Dynamic
• Daily life is a constant process of need fulfilment
• Can Conflict (resolve conflict through Marketing Opportunities)
o Approach-Avoidance Conflict: inner struggle about acquiring or

consuming an offering that fulfils one meed but fails to fulfil
another
o Approach-Approach Conflict: inner struggle about which offering
to acquire, but can satisfy in different needs
o Approach-Avoidance Conflict: inner struggle about an offering to
acquire when neither can satisfy a need
• Inconsistent across cultures

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Marketing approach for needs:
Personal needs - Are not based on other people (understanding, novelty, sleep).
Functional needs – May be social or non-social; Need to search for offerings that
solve consumption-related problems
Symbolic needs – Affect how we perceive ourselves and how others perceive us
(reflects on social role and consumption behaviour) / Achievement, Self-control
and Independence
Hedonic needs – Include needs for sensory, cognitive and novelty pleasure /
Reinforce sex and play
Cognitive and Stimulation – understanding and metal stimulation

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Goals:
Concrete or Abstract (are more specific than needs)
1. Set goals that they try to pursue over time

2. Consumers are more likely to achieve a goal when they have a fixed rather
than a flexible plan for goal pursuit
3. Target goal it’s easier for consumers - differs from single goal which is
hard
4. The ability to set goals can affect consumer satisfaction with the outcome
5. Consumers tend to distort their memories of progress towards the goal
6. Difference between ‘I don’t eat this vs I cant eat this’ (Promotion-focused /
Prevention-focused)
7. Consumer have goals about how they want to feel or don’t want

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Appraisal Theory – emotion are based on individual’s assessment of a situation

or an outcome and its relevance to the person’s goals
Self-control – process consumers use to regulate feelings, thoughts and

behaviour in line with long-term goals
o Impulsive consumers tend to distort their memories of progress toward
the goal
o Consumers usually have goals about how they want to feel or do not to
feel
o Embodiment – connection between mind and body that influences and
expresses consumer self-control behaviour
o Self-control can be enhanced by promotional materials, using narrative
structures to stimulate consumers to connect the advertised brand with
self-concept
Ego depletion – outcome of decision-making effort that results in mental
resources being exhausted (type of self-control and goal conflict.
Risky:
Moderately inconsistent prior attitudes
As perceived risk increases, consumers tend to collect more information and
evaluate it carefully.
Perceived risk - The extent to which the consumer anticipates negative
consequences of an action
Reasons
o Offering is new
o Offering has a high price
o Offering is technologically complex
o When brands differ fairly in quality
o Consumers have little confidence or experience / lack of
information
o Opinions are important
o Brands differ substantially
Performance risk - The possibility that offering will not perform as well as
hoped or expected
Financial risk -The potential to create financial harm
Physical or safety risk - Potential to create physical harm
Social risk - Potential to harm one’s social standing
Psychological risk - Potential to harm one’s sense of self and this create
negative emotions
Time risk - Potential to lead to loss of time
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"Inconsistency Attitude
• Consumers tend to be motivated to process messages:
o Moderately inconsistent with our knowledge or attitudes
o Moderately threatening and uncomfortable
• Consumers tend to be less motivated to process messages

o Highly inconsistent with our knowledge or attitudes
o They simply reject it
"Marketing: Making Decisions based on Motivation

Developing and Implementing Customer-Oriented Strategy
• Market Segment
• Profitability of each segment
• Characteristics
Selecting the Target Market
Developing products
• Attributes
• Brand Position
• Brand Image
Marketing Promotions and Communications Decisions

• Advertising
• Sales promotion
• Personal selling
• Public Relations
Pricing Decisions - How sensitive is the customers
Making Distribution Decisions - Channels
II) Consumer Ability

The extent to which consumers have the necessary resources to make an outcome
happen.
Ability is an extremely important process because consumers only will take action
towards a service or good if they have the capacity to process and understand
information.
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"Factors that affect our ability:

Financial resources
• cheap and accessible

• perceived risks
• financial literacy: people how was less savings and financial
education
Cognitive resources
• make the customer to understand increase knowledge of the brand (it
affects a lot how consumer make decisions)
• about and experience an offering
• exposures, interactions, information’s from friends or media or
memory
• the inability to understand costs may result in a less than optimal
decision
• consumers may have difficulty evaluating a service provider when
they lack product knowledge or experience " in this case consumers judge
by using Heuristic
Emotional resources
• make customer get engaged
• consumer’s ability to experience empathy and sympathy
Physical resources – body power
Social resources
• network
• relationship
Social and Cultural resources

Education and Age
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III) Consumer Opportunity
"Can be influenced by:

Time
- opportunities (e.g., fast-food)
- high time pressure (less information processed)
- place more emphasis on negative information
Distraction - more on information processing, less on emotions
Amount, Complexity, Repetition and Control of information

- technical or quantitative information more difficult to handle
- frequency of exposure (can lead to irritation)
"Enhancing opportunity
• Repeat marketing communication

• Simplify messages
• Reduce distraction
• Provide more information channels
Chapter 3 Exposure to Comprehension

Chapter 4 Memory and Knowledge + Lecture Week 3
IV) Exposure
Reflects the process by which the consumer comes into contact with a stimulus
It’s critical influencing – thoughts and feelings
Distribution is the key to exposure ate the retail level
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Attention, Perception and Stimulus
"Factors influencing Exposure
• Position of the ads within a medium

• Product distribution (the key to exposure at the retail level)
• Shelf placements
• Product’s location (eye-level)
• Space allocated
"Selective Exposure
• Consumers select for what they want to be exposure
• Consumers avoid categories they don’t use (they find distracting)
• Zipping – skipping ads in a program previously recorded
• Zapping – avoid ads
V) Attention
Reflect how mental activity consumers devote to a stimulus
• Its limited – we can’t pay attention in everything
• Selective
• Can be divided – switching attention
• Focal and nonfocal – focus on stimulus but meanwhile exposed to
other one
• Preattentive processing – the non-conscious processing of stimuli,
such as in peripheral vision
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"Track consumer’s attention

• Personally relevant – appeal to consumers’
needs/values/emotion/goals
• Pleasant
a. Using attractive models
b. Using music
c. Using humour
d. Using novelty
e. Using unexpectedness
f. Using puzzle
• Surprising – novelty, unexpectedness, puzzles
• Easy to process
a. Concrete stimuli (words instead of images) - concreteness
b. Limiting number of competing stimuli – more likely to notice a
billboard when driving down a deserted rural highway than when in a
congested city
c. Contrast with competing stimuli – colours, unusual animals on labels
d. Improve the prominence of the stimuli – size/colour/volume
Concreteness: the extent to which a stimulus is capable of being imagined

Prominence: the intensity of stimuli that causes them to stand out relative to the
environment
"Costumers are more affected by:

1. Relevance (pleasantness, surprise and ease of processing)
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2. Visually pleasant element

3. Longest time looking at the ad
Habituation: the process by which a stimulus loses its attention-getting abilities by

virtue of its familiarity
VI) Perception
The process incoming stimuli activate our sensory receptors
"5 Senses – Sensory Marketing (is the process of systematically managing

consumers’ perception and experiences of marketing stimuli)
Vision
Combine to impact the beauty or aesthetic qualities of a product or package
• Size and Shape

• Lettering – logo, symbol, text
• Image location on package
• Colour – warm, cool – chroma / lightness / darkness (influences
psychological responses)
• Colour preferences – affected by gender
• Being new or worn
Hearing (sensory input)
Depends on its intensity – pitched voice syllables at a faster than normal rate
includes more positive attitude
• Sonic identity – supports brand image

• Symbolism
• Background voices – affects behaviour
• Fast or slow tempo music
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Taste
• Sensory texture – hard or rough / smooth or soft

• Calorie perceptions
Smell
• Blindfolded
• Effects on smell on physiological responses and moods (home and
laundry smell)
• Aromatherapy – ocean, freshly baked, flower
Touch
• Positive feelings - influence willing to pay

• Shows symbolic nature dryness-related images or words - lead
consumers feel thirsty or less energetic
"When do we perceive stimuli?
Absolute threshold: minimum level of stimulus intensity needed for to be

perceived
Differential Threshold: intensity difference needed between two stimuli before

people can perceive
Weber’s Law: the stronger initial stimulus, the greater the additional intensity
needed for the second stimulus to be perceived as different
Subliminal Perception: the activation of sensory receptors by stimuli represented

below the perceptual threshold
Miscomprehension: when consumers inaccurately construe the meaning incorrect
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"How do consumers perceive stimulus?

Perceptual organisation: the process by which stimuli are organised into
meaningful units
Perceptual Influence: the ease with which information is processed
Figure and Ground: people interpret stimuli in the context of a background
Closure: individuals have a need to organise perceptions
Grouping: unified picture or impression
Preference for the whole: the tendency to perceive more value in a whle than in
the combined parts
Comprehension: the process of extracting high-order meaning from what we have

perceived in the context of what we already know
Source of Identification: the process of determining what the perceived stimulus

actually is
Objective Comprehension: the extent to which consumers accurately understand

the message a sander intended to communicate
Subjective Comprehension: what the consumer understands from the message,

regardless of whether this understanding is accurate
Miscomprehension: when consumers inaccurately construct the meaning

contained in a message – when their subjective comprehension is incorrect
* Consumer may not comprehend marketing message when they have low
motivation and limited opportunity to process it
"Consumers Inferences
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Are the conclusions that consumers draw or interpretations that they form based on
the message
• Product feature and Packaging

• Price
• Message Wording
• Retail atmosphere
• Displays
• Distribution
Curiosities:
Consumers usually know how to budget and plan purchases but they tend to
underestimate it, specially anticipated purchases.
When consumers feel powerful and in controls of their resources they will put more
money in the bank in order to maintain that state of power.
Self-control is an important factor in many consumer behaviour situations.
Time of day influences many consumption decisions.
Consumption can be affected by traditions, family, culture.
Waiting to consumer a pleasurable product such as a candy increases our enjoyment
of it.
Consumer behaviour is a continuous cycle of setting goals, pursuing them,
determining success and fail goal
VII) Memory
Consumer memory is a vast personal storehouse of knowledge about products,
services, shopping and consumption experiences
• Sensory memory
• Working short-term (STM)
• Long-term memory
• Implicit or Explicit
Memory is the way we structure knowledge in memory influence our ability to relate
to new information
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Memory is the persistence of learning over time, via the storage and retrieval of
information, which can occur consciously or unconsciously
Retrieval Memory: the process of remembering or accessing what was previously

stored in memory
"Sensory Memory
Input from the 5 senses stored temporarily in memory
• Input from the 5 senses
• Operates automatically
• Short-term
• Echoic Memory: is sensory memory of things we hear
• Iconic Memory: is sensory memory of things we see
• Olfactory Memory: things we smell
"Working Short-term Memory (STM)

Is the portion of memory where we encode or interpret incoming information in
light of existing knowledge. Most of our information-processing takes place here.
STM can take one of several forms of information
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Discursive Processing: when we think about an object (e.g., apple)

Imagery Processing: we represent it visually
It is highly related to MAO
o Can improve the amount of information that can be processed
o Can stimulate future choices
o Can improve consumer satisfaction
Marketing Implication:
• Imagery can affect how much information we can process
• Imagery may affect how satisfied we are with a product or consumption
experience
"Long-term Memory (LTM)

Is the portion of memory where information is permanently stored for later use
Characteristics
• Limited capacity
• Limited time
Divided in 2 majors
o Episodic – about ourselves; past experiences

o Semantic – general knowledge; detached from specific episodes
"Implicit or Explicit
Implicit: memory without a conscious attempt at remembering something. It’s

evidenced when a process that requires memory is executed faster or more
accurately
Explicit: when consumers are consciously aware that they remember something
"How memory is Enhanced?

Chunking (fragmentação) – it is a group of items that is processed as a unit.
Consumers usually use acrenyms to simplify names; phones
Rehearsal (ensaio) – jingles, sounds and slogans. It is an actively reviewing
material. When consumers are motivated to process and remember information
Recirculation – simple repetition without active rehearsal
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Elaboration – information being processed at deeper levels. It relates info to prior

knowledge and past experiences
Elaboration > Rehearsal > Recirculation
VIII) Knowledge
Reflects the set of things we have learned from the past
The information are linked to/associated with a concept
"Schemas
Schemas are a form of semantic knowledge about what objects and people are, and
what they mean to a consumer. The associations are learned based on personal
experiences and other information – some are episodic and others semantic. It
contains subjective knowledge.
"Associations in Schema
• Attribute
• Benefits
• Values
• Consumptions
• Brands – is a subset of salient and feeling-related associations stored
in brand schema
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The associations vary in terms of how abstract or concrete they are.
"Associations in Schema vary in 3 dimensions

• Favourability
• Uniqueness
• Salience – how ease they come to mind
"Specific Schemas
• Brand Image
• Personality
• Antropomorphization
Schemas can reflect the brand’s personality – the way consumers would describe the
brand if it were a person. It reflects culture values and have a strong influence on the
consumer’s emotional attachment to the brand.
Scripts are a form of procedural knowledge about how to do things
Taxonomic Category: how consumers classify a group of objects in memory in an

orderly
Because associations in the network are connected, activating one part of the
associative network leads to a spreading of activation to other parts. If consumers’
motivation and opportunity to process information are high, the number of activated
links can also be quite high.
Priming: the increased sensitivity to certain concepts and associations due to prior
experiences based on implicit memory
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Prototypical: category member is an example perceived to be a best example of the

category
Prototype: the best example of a cognitive (mental) category
It’s the main point of comparison used by consumers to categorize a new brand
Hierarchical: integrates information and form general brand beliefs
Correlated Associations: knowledge about correlated attributes or benefits
Goal-derived category: things we viewed as belonging in the same category because

they serve the same goals
Construal Level Theory: theory describing the different levels of abstractness in the
associations that a consumer has about things and how the consumer’s psychological
distance influences the abstractness of the associations and behaviour
"Memory and Retrieval

• Decay: the weakening of memory strength over time because it is not
being used
• Inference: semantic networks being too closely aligned
• Primacy & Recency Effects: commercials during break
Retrieval is something to facilitate the activation of memory. Can be generated

internally or externally
"How retrieval is enhanced?

• Enhance Memory 1st
o Chunking
o Rehearsal
o Similar factors
There are 4 additional factors:
1. The stimulus itself
2. What is linked to
3. They way it is processed
4. The characteristics of consumers
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• Salience
• Prototypical or Pioneer Brands
• Redundant cues – information items go together naturally
• Imagery – tend to be better remembered than discursive memory; It
created a greater number of associations in memory
"What the Stimulus is linked to in Memory?

• Brand names as a retrieval cue
• Evoke rich image
• Are novel or unexpected
• Suggest the offering and its benefits
Consumers characteristics affecting retrieval?

Yes, Mood and Expertise.
Attitude –
Chapter 5 High Effort Based +
Chapter 6 Low Effort Based- + Lecture Week 4
IX) Attitude
An attitude is an overall evaluation that expresses how much we like or dislike an
object, issue, person, or action.
Attitudes can be:

• Learned
• Persisted over time
• Based on set of associations linked to it
Important because:
• Guide thoughts – Cognitive function
• Influence feelings – Affective function
• Affect behaviour – Connative function
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"Affective Component
• Represents the consumer’s ‘feelings’ or emotional reaction to a
product
• Based on experience or cognitive information
• Response is person-situation specific
"Behavioural Component
• Represents the consumer’s tendency (intention)
• Generally NOT attribute specific
"Characteristics of Attitudes
Favourability - Are positive, negative or neutral in direction
− “I don’t mind doing exams but I hate doing group assignments.”
Attitude Accessibility - How easily an attitude can be remembered
Attitude Confidence - How strongly we hold an attitude
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Attitude Persistence -How long our attitude lasts
Attitude Resistance -How difficult it is to change attitude
Ambivalence -When our evaluation regarding a brand are mixed
"The Foundation of Attitudes

• Attitudes can be based on Cognitions – thoughts or beliefs
(information received from external source)
• Attitudes are based on Emotions
Central-Route Processing: the attitude formation and change process when effort is
high
Peripheral-Route Processing: the attitude processing and formation when attitude is
low
"High Effort Attitude Formation:

A) Cognitive Foundations: (What do these beliefs come from?)
Focuses on 5 cognitive model:
Direct or Imagined experience - Elaborating on actual experiment with a product

or service
Reasoning by Analogy or Category - How similar a product is to other products
Values-driven attitudes - Based on individual values
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Social identity-based attitude generation - The way consumers view their own
social identities towards product or brands
Analytical processes
Cognitive responses – thought we have in response to a communication
o Counter arguments(CAs) – disagree with message
o Support arguments(SAs) – agree with message
o Source derogations (SDs) – discounts or attacks the source of the
message
o Belief Discrepancy – when a message is different from what
consumers believe
Consumer who generate CAs and SDs will have a weak or even negative attitde
towards an offering
"Expectancy-Value Models
Analytical processes that explain how consumers’ form and change attitudes based
on
1 – The beliefs or knowledge they have about an object or action
2 – Consumers evaluation of these particular beliefs
This model is known as Theory of Reasoned Action (TORA) - model that

provides and explanation of how, when and why attitudes predict behaviour
The model proposes:
• Behaviour (B): what we do
• Behaviour Intention (BI): what we intent to do
• Attitude toward the Action (Aact): how we feel about doing something
• Subjective Norm (SN): how others feel about we doing something
Normative influence: how other people influence our behaviour through social
pressure.
Theory of planned behaviour: an extension of TORA model that predicts
behaviours over which consumers perceive they have control
"Changing Consumer Attitudes

• Understand existing attitude first
• Change the strength of the beliefs
• Add a new belief
• Encouraging imagined experience
• Target Normative beliefs
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"How Cognitively based Attitude are Influenced by:

Source/Communication factors
Communication source is influenced by believable information.
It means that marketing message must be credible to generate support

arguments
Message factors
o Affected by message credibility

o Argument quality
o Strong argument convincing on central merits (a presentation that
features the best or central merits of an offering in a convincing manner)
• One Vs Two sided messages

One side: a marketing message that present only positive information
Two sided: a marketing message that present both
- two sided has more credibility and works only if negative info is about non-
central attributes
• Comparative message - Indirect vs Direct

- a message that makes direct comparisons with competitors
- direct comparative message works better for new brands and low-market-share
brand
How can you believe?
• Actual experiences or imagining

• Reasoning by analogy or category
• Values-driven attitudes
• Social identity-based attitude generation
• Analytical processes of attitude formation…
B) Affective (Emotional) Foundations

Consumers might exert a lot of mental energy in processing a message on an
emotional basis
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Emotional reactions may serve as a powerful way of creating attitudes that are
favourable, enduring and resistant to change
It influence attitudes because emotion is intensity expressed

Feelings can act as a source of information
Affective Response: when consumers generate feelings and images in response to

a message
Emotional Appeal: a message designed to elicit an emotional response
Arouse emotions by:

• Music
• Emotional scenes
• Visuals
• Sex
• Attractive sources
"How Affectively based Attitudes are influenced by:

Regulatory fit
Promotion focus vs Prevention focus
Source factors
Perceived attractiveness is an important source (a source characteristic that evokes

favourable attitudes if a source is physically attractive, likeable, familiar or similar
to ourselves)
Match-up hypothesis: when appropriate source works
Ads often use attractive models to stimulate positive feelings toward the ad and the
product
Message factors
Influence affective processing; use characteristics of the message to influence
consumers
Emotional contagion: depict people expressing an emotion, with the goal of

inducing consumers to vicariously experience that emotion
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Influence consumers’ attitudes by using appeals that elicit emotion such as love,
desire, joy, hope and excitement
Fear Appeal: a message that stresses negative consequences

It is effective when:
o Providing immediate solution
o Moderate level
o Credible source
"When Attitudes predict behaviour?

• Level of involvement/elaboration is high
• The consumer is knowledgeable/experienced
• Consumer analyse their reasons
• Attitudes are ‘top of mind’ (accessibility of attitude)
• Consumers hold their attitudes with confidence (attitude confidence)
• Consumers are emotionally connected to the brand (emotional
attachment)
• Situational factors
• Normative factors
• Personality variables
"Low Effort Attitude Formation: (chapter6)

Unwilling or unable to exert a lot of effort to processing the central idea behind a
marketing communication
When processing effort is low, consumers are passive recipients of the message
and usually do not form strong beliefs. They form attitudes under low effort may
not even be stored in memory
One approach is to create communications that use a different route, the message
will be more effective if it takes the:
Peripheral Route to Persuasion - attitudes are based on easily processed aspects of
the message
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When consumers’ attitudes are not based on a detailed consideration, but on easily
processed aspects of the message, such as the source or visuals, called:
Peripheral Cues: easily processed aspects of a message, such as music, and

attractive source, picture or humour
Consumers form attitudes with low effort because in most cases consumers will
have limited motivation, ability and opportunity (MAO) to process marketing
communications
Form attitudes without being aware

• Thin-Slice Judgments – evaluations after a very brief evaluation
• Body Feedback
When processing effort is low, consumers may acquire simple beliefs by forming
Simple Inferences based on simple associations
Consumers can aid judgements by forming heuristics or simple rules of thumb
"Cognitive Bases of Attitude when Consumer Effort is Low

The attitude may be less resistant to attack than those of high effort, and not resist the
message or develop counterarguments
When process is low, consumers may acquire simple beliefs by forming:

Simple Inferences
- based on peripheral cues
- consumers will not process a lot of information
Heuristics
- simple rules of thumb that are used to make judgments

- frequency heuristics: belief based simply on the number of supporting arguments or
amount of repetition
- truly effect: when consumers believe a statement simply because it has been
repeated a number of times
"How Cognitive Attitudes are Influenced ? (Low MAO)
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Communication Source - Credible sources
The Message
• Inferences about quality based on prices; colour; visual and verbal
• Simple messages
• Arguments – number of supporting
• Category-and-Schema consistent information (e.g., product attributes)
Involving Message
• Self-referencing – nostalgia; positive attitudes (relating a message to
one’s own experience or self-image)
• Words can be important element
"Affective based on Attitudes

Repetition help to consumers acquire basic knowledge of important product features
or benefits, enhancing the strength and salience of their beliefs
Mere exposure effect - when familiarity leads to a consumer’s linking an object

Incidental learning - when it occurs from repetition rather than conscious processing
Classical and Evaluative conditioning - producing a response to a stimulus by
repeatedly pairing it with another stimulus that automatically produces this response
Dual-mediation hypothesis: explains how attitudes toward the ad influence brand
attitude
"How Affective Attitudes are Influenced:

Communication Source
Attractive Sources – attractive models, spokespersons or celebrities – stimulated
positive ad and product evaluation. Attractiveness can have beneficial effects on
advertiser believability and actual purchase (physical attractiveness)
Likable Source – because personality, enthusiasm and popularity
Celebrity Source
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The Message
Pleasant Picture – visual stimuli
Music
-Effective CS for classical conditioning
–Leads to positive mood

-Generating emotional response
Humour
Sex
Emotional content
Chapter 7 Problem Recognition and Information Search + Chapter 8

Judgement and Decision-Making based on High Effort + Lecture
Week 7
X) Problem Recognition and Information Search
Consumer decision-making process involves problem recognition

Solve the problem either internally or externally
Problem Recognition is the perceived difference between and Actual and Ideal state
Ideal state
• The way we want things to be done

• Sometimes we rely on expectations
• The ideal state can be also a function of our future goals
• Past experiences
• Major changes
Both expectations and aspirations are often stimulated by our own personal
motivations
Actual state
• Current state
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• Physical factors
• Our needs
• External stimuli
"Marketing Implication
Put consumers in a state of problem
Motivate them to start
By
Creating a new ideal state
Creating dissatisfaction
"Internal Search
The process of recalling stored information from memory
Consumers have limited capacity or ability to process information

Consumers are likely to recall only a small subset of stored info when they engage
in internal search
Time pressure or distractions will limit internal search
"Kind of information retrieved from Internal Search

Brand recall factors
o Prototypicality
o Familiarity
o Goals/Usage Situation
o Brand Preference
o Retrieval Cues
Attributes factors
Small proportion of information stored in internal search, it tends to be in summary or
simplified form rather than in its original detail
o Accessibility/Availability - strongest associative links
o Diagnosticity/Diagnostic Information - help us to discriminate among
objects
o Salience - it is the ‘top mind’ = easy to remember attribute
o Attribute determinance - both salient and diagnostic
o Vividness - concrete words & pictures
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o Goals
Evaluations factors
Easy to remember than specific attributes
o Overall evaluations or general attitudes when consumers are exposed to
relevant information
o Strong association with the brand
o “Online processing”
Experiences
Form specific images and the effect associated with them
o Vivid, Salient, or frequent experiences
o Repeating positive experiences
"Is Internal Search Accurate?

• Confirmation bias – we see what we want to see (selective
perception)
• Inhibition – the recall of one attribute inhibiting the recall of another
• Mood
"External Search
They are outside sources, such as dealers, trusted friends or relatives, published
sources, advertisements
It is the process of collecting from outside sources, divided into two:

Ongoing Search – a search that occurs regularly
Prepurchase Search – a search information that aids a specific acquisition
decision
"Where we can search for information?

• Retailer
• Media and Social Media
• Interpersonal Search
• Independent Search
• Experiential Search (trials)
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"Kind of information retrieved from External Search

Brand name – most frequently accessed (because is a central node)
Price –because it tends to be diagnostic and can be used to make inferences about
other attributes such as quality and value
Other attributes – information relevant to their goals
"Motivation to process External Search

Involvement and Perceived Risk
o Relates to a response to a particular situation – and enduring
involvement – ongoing response
o Perceived risk is a major determinant of involvements
o Consumers face riskier decisions, they engage in more external search
activity
The perceived cost and benefits -The costs associated with external search are
time, effort, inconvenience and money
Consideration of set -Number of attractive alternatives
Relative brand uncertainty -They are more motivated to engage in external

search
Attitudes towards search -These consumers generally have positive beliefs about
the value and benefits of their search
Level of discrepancy of new information -An existing category, consumers will

try to resolve this incongruity by engaging in info search, especially when
incongruity is at a moderate level and the consumer has limited knowledge about
the product category
"Ability to Process External Information

Consumer knowledge - Common sense
o Subjective knowledge – perception about what people know is relative
o Objective knowledge – actual information stored in memory that can be
measured with a formal knowledge
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Cognitive abilities
Consumer affect
Demographic factors
"Opportunity to Process External Information

• Amount of information
• Information format
• The time available - time restrictions / under pressure / less time "
are the reasons that consumers search on internet
• Number of items being chosen
"Factors that affect External search

Consumers can just as biased in their search for external information as they are
during internal search
XI) High Effort Judgement Process
It can vary in terms of processing effort (from high to low)
Judgements serve as inputs decision-making. It is evaluations of an object or

estimates of likelihood of an outcome or event.
Judgement do not require us to make a decision
"The importance of judgments

Likelihood
The determination of the probability that something will occur
Goodness or Badness
Reflect our evaluation of the desirability of the offering’s features
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When making judgements about likelihood and goodness/badness, consumers often

employ an Anchoring and Adjustment Process (starting with an initial evaluation
and adjusting it with additional info)
Consumers values and normative influences can also be strong determinants
Imagery also plays a major role – multisensory mental representation of a stimulus or
an event
Mental and Emotional accounting

Categorising spending and saving decisions into ‘accounts’ Mentally Designated for
specific consumption transactions, goals or situations
Mental Accounting - categorising spending and saving decisions into ‘accounts’
mentally designated for specific consumption transactions, goals or situations
Emotional Accounting – the intensity of positive or negative feelings associated with

each mental ‘account’ for saving or spending
"Biases in Judgement Process
Confirmation Biases
Self-positivity bias - Bad things are more likely to happen to people other than
myself
Negative bias – Give negative information more weight
Mood and bias

- Serve as the initial anchor for a judgment
- Positive mood
• reduces searching for negative information
• makes you overconfident
Prior brand evaluations

Good past exposure - > fail to learn important information
"High Effort Consumer Decisions

1. Deciding which brands to consider
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Consideration set: the subset of top-of-mind brands evaluated when making a

choice
o Inept set: options that are unacceptable when making a decision

o Inert set: options toward which consumers are indifferent
2. Deciding what is important to the choice
Weights of attributes changes according to:

Goals
! If goals are flexible, consumers will seek out a large assortment
! Consumers’ goal may change during the decisions process
! When goals is to make a decision, consumers evaluate products with
unique attributes
Time (e.g. CLT : Construal level theory)

Buy/do right now
Buy/do in the future
Low-level construal: specific concrete elements
Anticipate making later: criteria tend to be more general
When the decision outcome will be realised far in the future, consumers may
consider the hedonic aspects - how good it will make me feel
Framing
Decision framing – the initial reference point or anchor in the decision process
3. Deciding what Brand to choose

Cognitive decision-making models
! Combine information about attribute to research a decision in a rational,
systematic manner
! Compensatory vs. non-compensatory model − Brand vs. attribute model
Affective decision-making models:

Decision based on feelings & emotions.
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Compensatory Models:
Negative features can be compensated for by positive ones
Non-compensatory Models:
Negative information leads to rejection of the option
Decisions Based on ‘Brands’ (product):

Evaluate one brand at a time, evaluating the attributes of that one
brand/product
Decisions Based on Product ‘Attributes’

Compare brands one attribute at a time
Decision delay
Too many attractive options − Too risky
Entails unpleasant task
When alternatives cannot be directly compared

Example: A trip to Fiji or a new laptop computer?
o Alternative-Based: based on an overall evaluation.
o Attribute-Based: using abstract representations of comparable
attributes – e.g. ‘fun’.
XII) Low Effort Judgement Process
COPIAR DO CADERNO
Chapter 10 Post-Decision Processes + Lecture 7
IXX) Post-Decision Processes
Customer satisfaction depends on good performance, creating positive feelings, and
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perceptions of equity.
Consumers learn about offering by experiencing them directly.
The process does not end after consumers have made their decision to acquire a
product or Service.
Consumers can experience dissonance (discomfort over choice) or regret after

purchase, learn about the offering by using it, experience satisfaction with it, and
eventually dispose it.
"Post-Decision Processes
• Dissonance and Regret

• Consumer learning
• Satisfaction/ Dissatisfaction
• Disposition
"Post-Decision Dissonance and Regret
1.1 Dissonance
When you feel uncertain about your choice
Anxiety over whether the correct decision was made
It is the most likely to occur when more than one alternative is attractive or important
Search for additional information - is one way to reduce dissonance.
1.2 Regret
Consumers perceive an unfavourable comparison between the performance of the
chosen options and the performance of the options not chosen.
We may feel regret even if we have no info about the nonchosen alternatives
It is a negative feeling that one should have made another purchase, consumptions, or
disposition decision than one actually did
Consumers may feel it immediately or later
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Consumers can regulate postpurchase regret by seeking info, switching to another

options, and also by focusing on what they can learn from these decisions to improve
future decisions.
"Learning from Experiences
Consumers learning because much of exposure is under the direct control of the
company, which provides info through marketing communication. They also acquire
knowledge by direct experience, important source.
Info that is perceived as controlled by marketing is less credible for consumers. They
assume that is to persuade them
Consumers also acquire knowledge by direct experience - important source - because

it is not under mkt controls and is more credible. It also more involvement and
interesting, as well as, easy to remember. However not always accurate.
A Model of Learning from Consumers

Consumers can learn from experience by engaging in a process of Hypothesis
Testing - comparing prior beliefs or expectations with new info, such as evidence
from experience.
A hypothesis is a belief or expectation about some future event or state, and it

contains 4 stages:
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Hypothesis Generation - based on previously info consumer forms a prediction

about brand, product or service
Exposure to Evidence - actually experience of it

Encoding of Evidence - processing the info
Integrating of Evidence - combining new with older info stored
What affects learning?

4 Factors:
• Motivation
Higher motivation " more hypotheses

When consumers are motivated they will generate a number of hypotheses and
actively engaging in the process of learning from experience
When motivation is low, consumers will rely less on hypothesis testing, which
is an effortful cognitive process.
• Prior Knowledge or Ability
Moderate level of knowledge " highest learning

It affects the extent to which they learn from experience. When ability is high,
consumers are likely to have well-defined beliefs and expectations. But when it
is low, they have a lack in skills to develop hypotheses.
Without guiding hypotheses, consumers have difficulty in collecting evidence

and learning from it.
The amount of prior experiences and the breadth (variety) of them also affect
consumer learning and individual preferences for novel products.
• Ambiguity or Lack of Opportunity
When there’s not enough info from the consumption experience to confirm or
disprove one’s hypotheses
Making the initial choice in a context of ambiguity affects consumers’

certainty about the decision and, if the actual experience is uninformative, can
lead to persistent preferences for the chosen option’s attributes.
Ambiguous consumption info reduces consumers’ ability to learn from

experience. On the other hand, when evidence is unambiguous and the product
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is clearly good or bad, consumer base their perceptions on actual experience

and learn a great deal.
• Processing Biases
Confirmation biases and overconfidence can pose major hurdles to the

learning process, specially is biases inhibit learning.
Experience which unambiguously disconforme prior beliefs can have a strong

and rapid impact on consumer learning.
Marketing Implications
Top-Dog Strategies
A market leader or brand with a large or the largest market share.
Limitations on learning are advantageous to top dogs because consumers will
simply confirm existing beliefs and expectations.
When motivation to learn is high, consumers will try to acquire info that could be
disproving and lead to a switch.
The top dog can encourage consumers not to acquire new info, which is called
Blocking Exposure to Evidence.
If top dog evidence is unambiguous, the consumer simply needs reinforcement of
messages telling why this brand is satisfying - called Explaining the Experience
Underdog Strategies
A lower-share brand that is perceived to be doing well in spite of the odds against it.
They want to encourage consumer learning because new info may lead consumers to
switch to them.
Underdogs can instigate learning through comparisons and they can create
expectations through the use of promotions to provide the actual experience.
"How do consumers make Satisfaction or Dissatisfaction Judgement?

These feelings can concern offerings that consumers are able to evaluate on
Utilitarian Dimensions, how well the product or service functions.
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All aspects of the product or brand experience - its sensory, affective, behavioural and
cognitive appeals - can influence.
1. Evaluate the Outcome of their decisions

It varies with consumer involvement, time and characteristics.
*High-involvement = consumers express higher satisfaction immediately.
• Positive – satisfaction
Satisfactions: the feeling that a purchase decision, consumption experience or

disposition decision meets or exceeds one’s expectations. Satisfaction Index
(NCSI) - company use it to measure satisfaction
When consumers make their own choices of hedonic products they are more
satisfied when they delay consumption on a short-time.
Satisfied customer are willing to pay higher prices and remain loyal. They will
tell others about their experience.
• Negative - dissatisfaction
Dissatisfaction: the feeling that a purchase decision, consumption, experience
or disposition decision falls short of one’s expectations. It is a general negative
evaluation, but it can be more specific (distress, sadness, regret, disgust or
anger).
Low-involvement can lead for dissatisfaction after all.
2. Consumers can Evaluate Offerings on Both:
• Utilitarian dimensions (how well the offering works)

• Hedonic dimensions (how the offering makes you feel)
3. Two types of goods
Utilitarian or Hedonic
4. Better Model
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Attracting new customer is 5 times more expensive than remained currently ones.
When a product category is important to consumers, satisfaction can also lead to more
frequent purchasing
Expectations and Performance: The Disconfirmation Paradigm

Disconfirmation: occurs when there is a discrepancy, positive or negative,
between our prior expectations and the product’s actual performance. When
expectations do not match the actual brand performance because it is either better
or worse than expected.
Expectations: belief (hypothesis) about the performance of a brand, product or
service. Desire on an outcome, including overall performance or attribution levels.
Performance: indicates whether the expected outcome has been achieved. What is
supposed to do and fulfils consumers’ need. Can either be Objective (based on the
actual performance) or Subjective (on individual’s feelings).
Customers’ evaluation of services is susceptible to disconfirmation as well. When
they have many choices they’ll feel more satisfied but if they have to choose an
option from a large assortment they become more dissatisfied.
When consumers expect to evaluate an offering they pay closer attention to
negative aspects (unless they have low expectations).
Causality and Blame:

Attribution Theory
A theory of how individuals find explanations for events
3 Factors:
• Stability: is the cause of the event temporary or permanent?
• Focus: is the problem consumer or marketer related?
• Controllability: is the event under the customer’s or marketer’s controls?
Satisfaction/Dissatisfaction Based on Feelings:

Equity Theory
Fairness of exchange: the perception that the inputs and outputs of people involved in
an exchange are equal
• Consumer’s input and output vs Seller’s input and output

• Fairness means Satisfaction
• It tend to be self-centered
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Post-decision feelings
Positive or negative emotions experienced while using or disposing of the acquired
brand, service or product
Satisfaction judgement
Coping with Dissatisfaction

Consumers may cope with dissatisfaction through active coping, expressive support
seeking or avoidance
Mis-prediction about emotions

Expected feelings vs Actual feelings
Response to Dissatisfaction
• Taking no action
• Discontinue purchasing the product or service
• Complain and perhaps even return the item – more likely when MAO is high
• Engage in negative word-of-mouth
• Quick responses are essential
Types of Complains:
• Passives – are the least likely to complain
• Voicers - are the likely to complain directly to the retailer
• Irates – are angry who engage in word mouth
• Activists – engage heavily in all types
Four Consumers Characteristics

• Consumer’s perceptions of the problem: responsible for the problem
• Customer-company relationship
• Customer Psychographics: a propensity to complain
• Personal characteristic
"Disposition
• Influences later acquisition decisions
• It is a business
• Impact on first-hand market
• Major impact on society
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Chapter 12 Consumer’s Culture Diversity + Chapter 13 Household

Social Class Influence + Lecture 8
XX) Consumer Culture
"What influence?
• Age
• Gender and Sexual orientation
• Regional
• Ethnic and Religious
a) Age:
The basic logic is that people of the same age are going through similar life
experiences, needs, symbols and it may lead to similar consumption patterns
Age are groups that are constantly shifting
There are 4 major ages:
1. Teens and Millennials / Generation Y (1979 to 1994)
2. Generation X (1965 to 1976)
3. Baby boomers (1946 to 1964)
4. Seniors (65+)
GROUP 1
Teens
They shop more frequently than consumers in other segments
Friends are a major source of information about products and socialising is one of the
major reasons that teens like to shop
They are more financial independents and consider environmental impact before
buying
Types of teens:
Thrills and chills – fun seeking; middle and upper-class background
Resigned – alienated from society

World savers – altruism
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Quiet achievers – conform to societal norms

Bootstrappers – family-oriented
Upholders – dutiful and conforming; seek a rewarding family life and uphold
traditional values
Millennial
Describe themselves as “idealistic”
They are media and tech savvy
They seek 4 benefits:

• Immediacy
• Entertainment
• Social interaction
• Self-expression
10 years from now the age group of then 21 to 35 years old would compromise
different people
Consumers in their late teens and early 20s are a prime target for marketers because
they need to acquire many goods and services
Brand loyalty: consumers are able to access internal info about brand names learned
early in life
Positioning: marketers can positioning products as helpful for dealing with the
adolescent pressures (teen vogue, example). But teen tastes can change very quickly.
Advertising Message: through multiple media
Other marketing activities: recreation or special event; sponsors musical events
GROUP 3
Generation x
Some are underachievers while some are career-oriented
This generation market has considerable buying power
Marketing through Tv and eletronics, this generation tend to be cynical about obvious
marketing techniques
These consumer tend to watch tv at home, less pressured
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Marketing usually sponsor events
GROUP 4
Boomers
Young boomers – make saving for retirement a high priority, which is they spend
less than older boomers
Older boomers – spend on travel, electronics, home and other goods and services
Boomers - strongly value individualism and want the freedom
They are heavy consumers of financial services

However, brands that have traditionally prospered by marketing to boomers, must be
prepared to adjust their targeting and tactics as this group ages and their behaviour
changes.
GROUP 5
Seniors
The gray market – over 65+
Women outnumber men because tend to live longer

Some way they need help or education when making decisions
Seniors represent a critical and growing market for health-related products and
services
They tend to be brand-loyal

Older consumers like and can better recall messages that focus on avoiding negative
emotions, because they want to avoid the negative outcomes
Seniors value services – taking advantage of discount
They represent a critical and growing market for health-related products and services.
Also retirement companies
Who seeks social interaction may not recognise fraudulent offers
b) Gender and Sexual Orientation

Gender: is a biological state of being make or female
Sexual orientation: a person’s preference towards certain behaviours
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Sex roles
Traditional sex roles are changing in many countries.
Sex roles and appropriate behaviour may vary from one culture to another.
Contemporary ad message portray stereotyped sex roles are less often than in the past.
How sex roles are portray in ad for children can influence consumer attitude towards
the message and the brand
Men (low MAO decision making)

More competitive, independent, externally motivated, and willing to take risks.
Guided by agentic goals that stress mastery, self-assertiveness, self-efficacy and
no emotion.
More sensitive to personally relevant info, by overall themes and simplifying

heuristics.
More positively to loyalty programs that emphasise status
Women (high MAO decision making)

Guided by communal goals that stresses affiliation and foresting harmonious
relations with others
More cooperative, interdependent, intrinsically, motivated and risk averse.
More likely to engage in a detailed and to make extended decisions based on
product attributes.
They pay attention for both personally relevant info. Women are more negative
emotions.
Women’s hormonal cycles can also affect product choice.
Masculine individuals
Display male-oriented traits
Feminine individuals
Display female-oriented traits
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c) Regional influences & Consumer Behaviour

Because people tend to work and live in the same area, they develop patterns of
behaviour.
Clustering: group of consumers with same behaviour patterns/ Similar income,

lifestyle, education, age, housetype, degree of urbanity, attitudes.
Marketers can use clustering to help find new customers, learn what their want and
develop new products
Sampling in Individual consumer segments:

• Young Digerati: are affluent, well-educated, tech-savvy, 25-44, urban
• Kids & Cul-de-sac: consumers are upper-middle income, white collar 25-44,
with children
• Boomtown Singles: educated under 35, entry-level jobs
• Mobility Blues: singles, lower income, smaller cities, under 55
Regions across the world focused oriented
• Individualism vs Collectivism
Individualism: more emphasis on themselves

Collectivism: more emphasis on the group, connections
• Horizontal vs Vertical Orientation
Horizontal: value equality

Vertical: value hierarchy
• Masculine vs Feminine
Masculine: amore aggressive and focused on individual advancement

Feminie: more concerned with social relationship
Consumption patterns differs across the world

Meaning, colour, symbols, numbers and others
Skin whitening
c) Ethnic and Religion Influences
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Ethnic
Ethnic Groups – share a common heritage, set of beliefs, religions and experiences
Acculturation – learning how to adapt to a new culture
• Acculturated
• Bicultural
• Traditional
Multicultural marketing – strategy to appeal a variety of cultures at the same time

Intensity of Ethnic Identification – how strongly people identify with their ethnic
group
Accommodation Theory – using the very specific role models and language / More
effort one puts forth in trying to communicate with an ethnic group, the more positive
is the reaction
Religion
Provides people with a structured set of beliefs and values that serve as code of
conduct or guide to behaviour.
It binds people together.

Religious are: active group that encourages positive reactions or the opposite
XXI) Social Class and Household Influences
Households make many more decisions than individuals do, related to acquisition,
consumption and disposition decisions.
Household: a single person living alone or a group of individuals who live together in
a common dwelling regardless of wether they are related
"Types of households
• Nuclear family – mother, father, children
• Extended family – relatives
"Family life cycle
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Different stages of family, depending on the age of the parents and how nay children
are living at
Basic Structure
1 – Delayed: because career is a higher priority
2 – Dual Career: higher discretionary spending ‘role overload’; tend to spend more
than the other families
3 – Divorced: creating new patterns because they face new needs

4 – Smaller families: more discretionary income
5 – Same sex couples
"Non-traditional families is on the rise:

• Singles living alone
• Couple without children
• Divorced families
• Same sex
"Roles Household Members Play

Household purchase decisions can be made by one, some or all members
• Gatekeeper: members who collect and control info
• Influencer: who try to express their opinions and influence decisions
• Decider: who actually determined
• Buyer: who purchases or acquires
• User: who consumes
Members can influence each other in terms of:

• Brand preferences
• Loyalties
• Search patterns
• Media reliance
• Price sensitivities
"Household Decisions can be:

Instrumental: roles that relate to tasks affecting the buying decision. Such as when,
how much to purchase
Expressive: roles that involve an indication of family norms.
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Conflict can occur when:

1 – the reasons for buying
2 – who should make decisions
3 – which option to choose
4 – who gets to use the product or service
Usually householders resolve conflicts through problem solving, persuasion,

bargaining and politics, with persuasion and problem solving being the most
frequently used methods.
"Roles of Spouses
• Husband-Dominant decision: primarily by the male
• Wife-Dominant decision: primarily by the female
• Autonomic decision: decision equally likely to be made by the husband or
wife
• Syncratic decision: decision made jointly by both
"Roles of Children
It depends on the type of offering, characteristics of the parents, age of the child and
stage of the decision process.
Less influence – parents are more involved in the decision process or more traditional
and conservative
"Marketing Implications:
Knowing the roles of family members

Find the right target
"Social Class Hierarchy

Grouping of members of society whose behaviours and lifestyle are the same
Help determine aspirations of societal roles
Help us segment the market
Within a social class
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• Overprivileged: income higher than the average

• Class average: income similar to the average
• Underprivileged: income below to the average
"Social Class Influences

Trickle-down Effect: lower classes copy trends of upper classes
Status Float: trends start in lower/middle and spread upward
"How Social Class is determined?

Income vs Social Class
• Income not strongly related
• Income level overlap social class
• Social class often explains how income is used
• Income can be a better predictor of consumer behaviour
Occupation and Education
• Occupation is the strongest determinant of class standing

• Most reliable determinant of income potential & spending patterns
• Education is the most important determinant of occupation
Other indicators
• Inherited status – status that derives from parents at birth
• Earned status – acquired later in life
"How Social Class changed over time?
Upward Mobility – raising one’s status level
Downward Mobility – moving to a lower class “status panic”
Social class fragmentation – the disappearance of class distinctions. Blurred class
divisions because of mass media and communication technology
"How Social Class affect consumption?

Conspicuous Consumption / Conspicuous Waste
The acquisition and display of goods and services to show off one’s status
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Visibility buying products and services that one never uses

“Terror management theory” – such materialism helps relieve consumer’s anxiety
over the inevitability of death
Voluntary Simplicity: Limiting acquisition and consumption to live a less material

life
Compensatory consumption: the consumer behaviour of buying products or services

to offset frustration or difficulties in life
"Status Symbols and Judging Others
Status Symbol: product or service that tells others about someone’s social class
standing
Parody Display: status symbols that start in the lower-social classes and move
upward
Fraudulent symbol: symbol that becomes so widely adopted that it loses its status
"Social Class and Their Consumption Patterns
Upper Class
View themselves as intellectual, political and socially conscious
Self-expression: high-quality, prestige brands and good taste
Tend to save and invest money
The middle Class (white collar)
Looking at the upper class for guidance

Leisure activities, theatre, vacations for self-improvement
Working Class (blue collar)

Have more of local orientation
More likely to spend than to save
Judge product quality based on price; usually have less info about products
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Depends heavily on family members
Homeless
Lack of shelter
Scavenging – find used goods that others have discarded
"Implications
• Marketing segmentation
• Develop offerings for a specific social class
• Message tailored to different social classes
• Channels selections
Chapter 14 Psychographics Values, Personality and Lifestyles +

Chapter 11 Social Influences + Lecture 9
XXII) Psychographics Values, Personality and Lifestyles
Together, values, personality and lifestyles constitute the basic components of

psychographics, the description of consumers based on their psychological and
behavioural characteristics
Marketers use psych. to gain a more detailed understanding of consumer behaviour

than they can get from demographic variables
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"Demographic Variables
• Ethnicity
• Social class
• Age
• Gender
• Sexual orientation
• Religion
"Values
Determine whether consumers care more about individualism or put more emphasis
on social groups
• Values are enduring beliefs that a given behaviour or outcome is good or bad
• Guide standards across situations and over time
• It happens unconscious
• Reflects our Value System – our total set of values and their relative
importance
• We experience Value Conflict - when we do something that is consistent with
one value but inconsistent with another
• Reflects what is socially desirable
• Relative stable
*Acculturation – how individuals learn values and behaviours from other culture
(Consumers are adopt things if they view the new culture as attractive)
"Values Described as:

Global Values vs Domain-specific values:
Global Values: a person’s most enduring, strongly held and abstract values that
hold in many situations
• Maturity
• Security
• Prosocial
• Restrictive conformity
• Enjoyment
• Achievement
• Self-direction
Domain-specific values: values that may only apply to a particular area of
activities (e.g., materialism)
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Terminal Values vs Instrumental Values:

Terminal Values: highly desired end states such as social recognition and
pleasure
Instrumental Values: the values needed to achieve the desired end states such as
ambition and cheerfulness
Value segmentation: an attitude is an overall evaluation that express how much we

like or dislike an object, issue, person or action
"How measure Values

Inferring values from cultural milieu - by products that you buy
Values Questionnaires
-Rokeach Value Survey (RVS) – measures instrumental and terminal values
-List of Values (LOV) – measures instrumental in 9 principles
Means-end chain values – how values link to attributes in products and services
Product, attribute, benefit, instrumental value and terminal value
"West Culture Values

Materialism: placing importance on money & material goods
Home: placing high value on the home, making it as comfortable as possible.
It is the ’command central’
Work and Play: less value on work and delay gratification but value leisure time
Individualism: the individual’s rights and needs vs the group’s rights and needs
Allocentric – who prefer interdependence and social relationships (more health
consciousness
Idiocentric – who prefer individual freedom and assertiveness (more interest in

sports and adventures)
Family and Children: high value
Health: due to self-esteem & concerns about longevity & survival
Hedonism: the principle of pleasure seeking (make consumers feel good) / Often
contradicts ‘health’ value
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Youth: enjoy being young (products combating anti-aging)

Authenticity: cheap knockoffs or counterfeits valued much less
The Environment: important protection
Technology: valuing the improvements brought by it / A renewed emphasis on
simplicity
"Personality
An internal characteristic that determines how individuals behave in various situations
Patterns are the internal characteristics
5 approaches to research personality:

• Psychoanalytic – personality arises from a set of dynamic, unconscious
internal struggles within the mind (Freud)
• Trait Theories - personality arises of a set of characteristics that describes and
differentiate individuals based on ‘Big 5’ (Carl Jung)
o Agreeableness
o Conscientiousness
o Emotional stability
o Openness
o Extraversion
• Phenomenological – personality is largely shaped by an individual’s
interpretation rather than by internal conflicts or traits (locus of control:
people’s tendency to attribute the cause of events to the self)
• Social-psychological – focuses on social rather than biological (Karen
Horney). It is oriented by 3 majors which distinguish between ‘thinkers’, who
are more likely to rely on subjective norms and action-oriented ‘doers’, whose
behaviour is based more on their own attitudes
o Compliant: individuals are dependent and humble, tied to groups
o Aggressive: individuals need power, move against others, are assertive
and self-confident
o Detached: individuals are independent
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• Behavioural approaches – individuals are more likely to have traits or engage

in behaviours for which they have been rewarded
Useful Personality Traits:

Optimal Stimulation Level (OSL): prefer things that are moderately arousing
Dogmatism: closed-mind
Need for Uniqueness (NFU): avoidance of similarity; high need for uniqueness
Need for Cognition (NFC): a trait that describes how much people like to think; it’s
linked to education
Creativity: departure from conventional consumption practice in a novel and
functional way
Susceptibility to Influence
Frugality: is the degree to which consumers take a disciplined approach to short-term
acquisition and are resourceful in using products and services to achieve long-term
goals
Self-Monitoring Behaviour: look to others for cues on how to behave
High monitoring is sensitive and influences others
Low monitoring is more guided by their own preferences and desires
National Character: stereotype of people of a particular country
Competitiveness: has been associated with the desire to outdo others through
conspicuous consumption of material items
"Lifestyle
People’s patterns of behaviour represented by consumer’s activities, interests and

opinions (AIOs)
Values and Lifestyle Survey (VALS): classified consumers into 8 major segments
based on 2 dimensions
Segments:
*Ideals (guided by intellectual aspects) are Believers and Thinkers
Believers (low resources and motivated by ideals, seeking
inspiration from faith)
Thinkers (more resource than believers; value oriented)
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*Self-Expression are Experiencers and Makers

Experiencers like to be the first in participations
*Achievement are Achievers and Strivers
Dimensions: Innovators, Survivors
Voluntary Simplicity: means consciously limiting acquisition and consumption for a

less materialistic, more eco-friendly
"Psychographic Variables
• Description on the basis of psychological and behavioural characteristics
• More detailed understanding of consumer behaviour
• Values, personality and lifestyles – basic components
XXIII) Social Influences
It is divided by Sources and Characteristics
"Sources
• General
• Special
• Reference Groups
Characteristics:
• Normative
• Informational
• Positive or negative
• Verbal or nonverbal
Social influence: info by and implicit or explicit pressures from individuals, groups
and the mass media that affects how a person behaves
"Sources of Influence:
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1.1 Marketing and Nonmarketing Source
Marketing: influence delivered from a marketing agent (ads, personal selling, social
media, etc).
It is influenced through mass media.
It builds buzz media - effective because it uses the influence of third parties to amplify
initial marketing efforts.
Usually when consumers are worried about undue persuasion, companies pay
someone to blog or tweet, it is called as buzz-building tactics.
Nonmarketing: is influence delivered from an entity outside a marketing

organisation, (friends, family and media, news). It tends to be more credible.
Consumers report: is a strong nonmarketing way to influence people, because it
shows ratings
Word of mouth: influence delivered verbally from one person to another
Social Media for Both sources: platforms that are in constant growing.
It can have a mass reach but a more personal feel because consumers can choose what
they want to.
It is likely to be positive reaction if the content is entertaining, informative or valued
in some other way.
1.2 How do these general sources differ?

Both sources differ in terms of their
• Reach
• Capacity
• and Credibility
Reach mass media sources are important - large audiences expanding marketers’
reach dramatically, however it seems to be less credible
Capacity for two-way communication (two-way flow of information)
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Personally delivered sources of influence are valuable (car salesperson).

Personal conversations are often more casual and less purposeful than mass media
Info from a personal source may also seem more vivid - a factor that may make it
more persuasive.
Credibility
Consumers tend to perceive info delivered through marketing sources as being less
credible and manipulative.
Many companies encourage managers and employees to post comments to social-
media.
Specific personal and mass media sources vary in their credibility (testimonial and
word-of-mouth).
*Best Buy: benefits from the combination of both sources
1.3 Opinion Leaders

An individual who acts as an information broker between the mass media and the
opinions and behaviours of an individual or group.
Opinion leaders have some position, expertise or firsthand knowledge. They are
regarded as nonmarketing.
They are not necessarily well-know people, but who advise something.
They tend to learn a lot about products, how to acquisition, usage and disposition.
They also self-confident, gregarious and willing to share product information - An
intrinsic interest.
Opinion leaders might also like the power of having information. However, simply
because opinion leaders serve as information brokers does not mean that info only
flows from opinion leaders to consumers.
Market maven: a consumer on whom others rely info about the marketplace in
general
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"Reference Groups as Sources of Influence

2.1 Types of Reference Group
A reference group is a set of people with whom individuals compare themselves for
guidance in developing their own attitudes, knowledge, and/or behaviour.
3 types: Aspirational; Associative; Dissociative
Aspirational reference groups: we admire and desire to be like but we are not
currently members of. (Celebrities are an aspirational ref group)
Associative reference groups: group we currently belong

Gender, ethnic, geographic and age group to which you belong are also associative
reference groups with whom you may identify however, when consumers
misunderstand their relative position in a reference group, they tend to make poor
acquisition or consumptions
Associative reference groups can form around a brand
Brand community: a specialised group of consumers with a structure set of

relationships involving a particular brand, fellow customers of that brand, and the
product in use.
A consumer who is a member of brand community thinks about brand names, product
category, others users of the brand. The members become like a family. They are
extremely committed to it. These brand communities bring together like-minded
consumers, reinforce brand loyalty, encourage positive attitudes towards the brand
and its products, and disseminate information about the brand.
Marketers can also identify and appropriately represent target consumers in ads by
accurately reflecting the clothing, hairstyles, accessories, and general demeanor of
their associative reference groups.
Dissociative reference groups: a group we do not want to emulate
2.1 Characteristics of Reference Group

It can be described as:
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• Degree of Contact
• Formality
• Similarity among members (Homophily)
• Group Attractiveness
• Density
• Degree of Identification
• Tie-Strength
Degree of Contact:
Primary reference group: with whom we have physical face-to-face
interaction. It has a great influence.
Secondary reference group: with whom we do not have it (like internet chat -
interpersonal communication)
Formality: groups with rules outlining the criteria for membership and the expected
behaviour of members. But friends groups as more ad hoc, less organised
Homophily: the overall similarity among members in the social system

Influence is likely to be strong because similar people tend to see things in the same
way because senders and receivers are similar.
Group Attractiveness: how much consumers conform to the group - even its illicit
consumption behaviour
Degree of Identification: just because people are members of a group does not mean
that they use it as a reference group
Tie-Strength: the extent to which a close, intimate relationship connects people. By
frequent interpersonal contact
Weak-Strength: people who have a more distant relationship with limited

interpersonal contact. It serves as bridges. Researchers have found that word of mouth
spreads more broadly among people with weak ties.
Marketing Implications:
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Homophily, degree of contact, tie-strength and network density can significantly

influence whether, how much, and how quickly info is transmitted within a group.
The best way to disseminate info rapidly within a market is to target individuals in
dense networks characterised by strong ties and frequent contact.
Facebook message “I like to go” - is a type of targeting network.
Embedded market: market in which the social relationships among buyers and
sellers change the way the market operates
2.3 How Reference Groups affect consumer socialisation
The process by which individual acquire the skills, knowledge, values and attitudes
that are relevant for functioning in a given domain.
The process by which we learn
• To become customers
• Consumptions values
People as Socialising Agents - Family and Friends
The media and Marketplace as Agents - Tv programs, movies, videos, music,

games...serve as socialising agent
Intergeneration influence - information, believes, and resources being transmitted

from one generation to the next.
The effect of reference groups as socialising agents can change over time.
"Normative Influence
Various sources - general, special and group
→ these sources can exert two types of influences, normative and informational.
Normative influence is social pressure designed to encourage conformity to the

expectations of others.
Morals also exert normative influence.
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Normative influence implies that consumers will be sanctioned, punished, or ridiculed

if they do not follow the norms.
Normative influence tends to be greater when groups are large and when group
members are experts
Norms - collective decision about what constitutes appropriate behaviour
Conformity - the tendency to behave in an expected way
3.1 How Normative can affect consumers

a) Brand-Choice Congruence and Conformity
Friends, relatives and others in your social network may also influence the types of
goods and services.
Normative influence can also affect conformity.

Conformity and brand-choice congruence may be related.
Pressures to conform can be substantial.
How others would perceive them if they refused to conform to the group’s expected
behaviour. However, identity-based thinking is very strong and resistant to
conformity pressures.
b) Compliance vs Reactance
Compliance: doing what the group or social influencer asks

Reactance: doing the opposite (it can occur in brand community too)
In virtual community, members may not comply as readily with the group’s desires
because the members are anonymous and can withdraw at will.
c) Social-Relational Theory
Consumers conduct their social interactions according:
1 - the rights and responsibilities of their relationships with group members
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2 - a balance of reciprocal actions with group members

3 - their relative status and authority
4 - the value placed on different objects and activities
Taboos based on cultural or historical elements may also apply to buying and selling
transactions
3.2 What affect Normative influence strength

The significance of the product to the group also affects normative influence.
Measuring susceptibility to interpersonal influence and attention to social comparison

information - individuals differ in whether they are susceptible to influence from
others and whether they pay attention to what others do.
Product Characteristics
1 - whether we buy a product

2 - what brand we buy
Depends on whether the product is typically consumed in private or in public, whether

it is a necessity or a luxury.
Necessity items - little influence

Luxury items - strong influence
Luxury items may communicate your special interests and values and thus convey
who you are and with whom you associate.
Products consumed in public - such as cars - give others the opportunity to observe
which brand we have purchased.
Different brand images communicate different things.

Reference groups influence product category choice.
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The significance of the product to the group also affects normative influence.
Consumer Characteristics
The personalities of some consumers make them readily susceptible to influence by

others.
Consumers who are susceptible to interpersonal influence try to enhance their self-
image by acquiring products that they think others will approve of.
A personality characteristic class attention to social comparison information (ATSCI)

is related to normative influence.
People who are high on this personality trait pay close attention to what others do and
use. This attitude guide their behaviours.
When consumers are susceptible to normative influence, they tend to react more
positively to communications highlighting to communications benefits that help them
avoid social disapproval.
When ties are strong, individuals presumably want to maintain their relationship with
others.
Normative influence is also affected by a consumer’s identification with the group.

Group Characteristics
Impact the degree of normative influence
Exert Coercive power: the extent to which the group has the capacity to deliver
rewards and sanctions. Friends have greater influence
The influence is also different for high self-monitoring, agentic consumers, who tend
to spend more when they shop with a friend than when they shop alone.
Group cohesiveness and group similarity also affect the degree of normative
influence.
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Consumers from cultures where collectivism is strong are more sensitive to how
differences in pricing affect those in their group.
Marketing Implications for Normative

Create norms for group behaviour - e.g., offers apps that allow consumers to track
their fitness activities and compare performance with other users.
Stimulate Referrals Through Normative Influence - e.g., “bring a friend”, “friend

zone day”
Create Conformity Pressures - “antismoking campaigns”
Use Compliance Techniques

Foot-in-the-door-technique: it’s designed to induce compliance by getting an
individual to agree 1st to a small favour, then to a larger one, and then to an even
larger one.
Door-in-the-face-techniques: it’s designed to induce compliance by 1st asking an

individual to comply with a very large and possibly outrageous request, followed
by a smaller and more reasonable request.
Even-a-penny-will-help-technique: it’s designed to induce compliance by asking

individuals to do a very small favour - one that is so small that it almost doesn't
qualify as a favour.
Ask Consumers to Predict Their Behaviour: it increases the likelihood that they
will actually behave in that way.
Provide Freedom of Choice: reactance usually occurs when people feel that their
freedom is being threatened - marketers need to ensure that they have freedom - it
usually happens through offering multiple products within a product line.
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"Informational Influence
The extent to which sources influence consumers simply by providing information to
help consumers make decisions.
e.g., chat groups on internet (travel) / Friends / Media
Informational can be affect ‘how much time and effort’ consumers devote to
information search and decision-making
4.1 What affect Informational influence strength

Product Characteristics
Consumers tend to be susceptible to info when considering complex products -
electronics; cosmetic surgery; formidable financial and safety risk; investment
decisions; economic risk.
Consumer and Influencer Characteristics

Influencers, group communication, experts - exert influence (e.g., real estate)
Personality traits - a consumer open-mindedness also is influenced by to look to
others for cues.
It is affected by tie-strength. Also stranger online group can affect decisions as well
(e.g., anonymous reviewer).
Group Characteristics
Members of cohesive groups have both greater opportunity and perhaps greater
motivation to share info
4.2 Marketing Implications for Informational
Create Informational Influence by Using Experts: it exerts credibility and shows

expertise
Create a context for Informational Influence: by
• Hosting or sponsoring special product-related event

• Host chat online
• Social Media programs
• Blogs; Posts and Images
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• Inviting customers to rate products

• Forums
Create Informational and Normative

Both are important and together may be more successful influencers.
4.3 Descriptive Dimensions of Information
Valence: Whether info about something is good or bad.
More than half of the dissatisfied consumers engage in negative word mouth.
People pay more attention to and give more weight to negative info -it has more
significance
Modality: Although norms about group behaviour might be explicitly communicated

by verbal
4.4 The Pervasive and Persuasive influence Word of Mouth

Both online and offline exert influence
Individuals are motivated because:

• They feel altruistic and helpful to others
• They want to make themselves look good
• They love the product
• They want to persuade others
• And because the product is publically visible
We are 61m consumers worldwide read reviews, it provides:

• evaluation
• explanation
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• endorsement
• embracement
These social exchanges can themselves spark word of mouth and get more consumers
involved in the conversation and the brand or product
Marketers who provide consumers with opportunities to comment via social media
during product acquisition or consumption are, in effect, facilitating real-time world.
Viral marketing: rapid spread of brand/product info among a population of people

stimulated by brands
(e.g., angry birds)
Engineer favorable:
• Opinion Leaders
• Public Conference
• Events
Preventing negative word of mouth:

• Managing major crisis
• Rebuilding reputation
• Do not ignore complaints / Do not delay / Track complaints
• Customers = priority
• Listen all opinions carefully
• Have a contingency plan
• Do something discreetly
Chapter 15 Innovations: Adoption, Resistance and Diffusion +

Chapter 16 Symbolic Consumer Behaviour + Lecture 10
XXIII) Innovations: Adoption, Resistance and Diffusion
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"Innovation
The ability to develop successful new products is critical to a company’s sales, future
growth and long-term survival potential
Consumers may decide to adopt or resist adopting a new offering.
Innovation can bring about changes in acquisition, consumption and disposition
patterns
"Defining an Innovation
It’s a product, service, attribute or idea that is perceived as new by consumers within a
market segment, and that has an effect on existing consumption patterns
Marketers classify innovations in 3 ways:
• Innovations types
• Type of benefits it offers
• Its breadth
"Degree of Innovation Novelty

Continuous innovation: innovation that has a limited effect on existing
consumption patters
Dynamically innovation: innovation that ha pronounced effect on consumption
practices and often involves a new technology
Discontinuous innovation: an offering that is so new that we have never known
anything like it before
"Innovations Characterised by Benefits
Functional: a new product, service, attribute or idea that has utilitarian benefits
that are different from or better than those of alternatives. Performance benefits
usually rely on new technology.
Hedonic or Aesthetic: innovation that appeals to our aesthetic, pleasure-seeking,
and/or sensory needs. It’s the point of differentiation.
Symbolic: a product, service, attribute or idea that has new social meaning
"Innovation Breadth
Range of new and different uses for a particular product
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"Cocreation
Actively involving consumers in creating value through participation in new product
development among other marketing activities
e.g., forums for interaction
It’s one way to consumer get involved by submitting new products ideas and voting
on other consumer’s ideas
Benefits for cocreation

• Likely to fit better with consumers needs
• Fast and inexpensive
• Strength consumer’s relationship with the company
• Consumers feel sense of ownership
Despite benefits, new product ideas can challenge of developing an idea into a
commercially feasible innovation
"Characteristics of Innovation
Innovation that can affect resistance, adoption and diffusion include perceived values,
benefits and costs
Perceived Value: offers greater perceived benefits or lower perceived costs than
existing alternatives
Perceived Benefits:
Relative Advantage the extent to which it offers benefits superior to those of

existing products
Use Innovativeness: finding uses for a product that differs from the product’s
original intended usage
Perceived Cost: the higher the purchase cost, the greater the resistance and hence the
slower the diffusion
Switching costs – the costs of changing from the current product to a new one – are
part of the total cost
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• Communicate and Demonstrate the relative advantages
• Use prices promotions to reduce perceived cost
• Provide incentives for switching
"Innovation Consequences
Negative socioeconomic consequence
"Resistance vs Adoption
Resistance: a desire no to by the innovation, even in the face of pressure to do so
(may involve some perceived risk)
Adoption: a purchase of an innovation by an individual consumer or household
When consumers Adopt Technology?

8 Central Paradoxes:
• Control/Chaos
• Freedom/Enslavement
• New/Obsolete
• Competence/Incompetence
• Efficiency/Inefficiency
• Fulfils/Creates needs
• Assimilations/Isolations
• Engaging/Disengaging
"How consumers Adopt?

Depends in part on whether they are Prevention or Promotion-focused
Prevention: whose priority is safety; resist new offerings because of the perceived
risk
Promotion-focused: whose priority is advancement and growth, are more likely to
adopt new offerings, at least when the risk are not salient
It is High-effort or Low-effort
High-effort:
• Purchase of an innovation based on considerable decision-making effort
• Info search, attitude formation, judgement, attitude processed
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• Consumers are aware of the innovation

• Resistance maybe due to high price and learning concerns
• MAO determine it
• Discontinued innovation type – because they know less about it
• Marketers need to do all they can to reduce perceived risk
Awareness"Info collection"Attitude formation"Trial"Adoption
Low-effort
• Continuous innovation type

• More people involved on the process of decision-making
• Consider and research the product before try it
• Awareness and trial time are brief
• Marketers need to encourage trials
Awareness"Trial"Attitude formation"Adoption
"When consumer Adopt Innovation?

Groups:
Innovators
- want to be the firsts
- venturesome / high needs for stimulation
- adopt independent the opinion of others by their virtue of experience;
normative and informational influence
- tend to be young, affluent and better educated
- heavy users of social media / product category
- rely on external information
Early adopters
- visionaries in product category
- admire technology
- respectable
Late adopters/Majority
- pragmatics
- often incremental, predictable
- they don’t like risk
- deliberate
Late Majority
- price sensitive
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- conservative
- wary of progress
- fear high tech products
- traditional
Laggards
- sceptical
- usually less income, education and lower occupation
"Nonadopters Types
Passive: who have tried but are unlikely to provide much info to others about it
Active rejectors: who have tried and are likely to provide unfavourable word
Potential adoptors: who have not yet tried
"Diffusion
The percentage of the pop that has adopted an innovation at a specific point in time
Reflects individual behaviour

Diffusion reflects how fast an innovation spreads through a marketplace
"How offering Diffuse through a market?

S-shaped diffusion curve:
Characterised by slow initial growth followed by a rapid increase in diffusion
Associated with some social, psychological, economic, performance or physical risk

e.g., electronic books
Exponential diffusion curve: characterised by a rapid initial growth
"Diffusion and Product Life (PCL)
Product life cycle: a concept that suggests that products go through an initial
introductory period followed by periods of sale growth, maturity and decline. It deals
with sales of products over time
Marketers can lengthen product’s life by finding new uses for a product or
encouraging it
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Fad: a successful innovation that has a very short product life cycle
Contagion: the degree to which consumers influence each other ijn the diffusion of
a new product
Fashion: a successful innovation that has moderately long and potentially cyclical
product life
Classic: have lengthy PCLs
"Uncertainty
Consumers can often more uncertain about the usefulness of a discontinuous
innovation
More info makes them more uncertain

Length of the product also influence
"Consumer Learning Requirements

Involves:
Compatibility: the extent to which an innovation is consistent with one’s needs,
values, norms or behaviours
Complexity: the extent to which an innovation is complicated and difficult to
understand or use. Mental and think cost are high
Trial-ability: the extent to which an innovation can be tried on a limited basis
before it is adopted
• Enhance compatibility or Reduce complexity
• Educate about Compatibility
• Use change agents
• Fit with a system of products
• Force the innovation to be the industry standard (smoke detector)
• Use promotions to enhance Trialability
• Demonstrate compatibility and Simplicity
• Stimulate Trials

"Social Relevance
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The extent to which an innovation can be observed or the extent to which having
others observe it has social cachet
Observability: is the extent to which consumers can see other using the innovation. It
can be enhance by packaging, styling and colour or unique promotions.
Social Value reflect the extent to which the product has social cachet, which means
that it is seen as socially desirable and/or appropriate and therefore generates
imitation, speeding diffusion
"Legitimacy and Adaptability

Legitimacy: the extent to which an innovation follows established guidelines for
what seems appropriate in the category
Adaptability: the extent to which an innovation can fosters new styles. Potential to fit
with existing product or styles
"Characteristics of the Social System

Modernity: the extent to which consumers in the social system have positive attitudes
towards a change. Values science, technology and education
Physical Distance: diffusion tends to be faster when member of the social system are
physically close
Homophily: diffusion tends to be faster when consumers in the market are similar in
education, values, needs, income and other dimensions
Opinion Leader: because they spread many product info
Cultural Self-Perspectives: individualism vs collectivism
XXIV) Symbolic Consumer Behaviour
"Meaning derived from Culture
Meaning that exists at the level of culture can become associated with a product
Meaning comes from nonmarketing sources
Cultural Categories:
• The natural grouping of objects that reflect our culture
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o Time, space, occasions, people

• It reflects characteristics of people, as gender, age, social class and ethnicity
Cultural Principles
• How aspects of culture should be perceived
• It gives meaning to offering
o ‘work time’, ‘leisure time’
• Includes festive, somber and occasions categories
• It’s linked with social status, gender, age and ethnicity
"Functions of Symbolic Meaning

The Emblematic
Consciously or unconsciously we do it
• Geographic emblems (e.g., clothes of US)
• Ethnics emblems (culture or subculture)
• Social Class emblems (status)
• Gender emblems (food preference)
• Reference groups emblems (e.g., Harley Davidson)
Establishing the emblematic function of products
• Symbol Development
• Symbol Communication – retailers, channels, salesperson
• Symbol Reinforcement – marketing mix, pricing, distribution, product
strategy, targeted segment
• Symbol Removal
"Functions of Symbolic Meaning

The Role Acquisition Function – the use of products as symbols to help us feel more
comfortable in a new role
The Role Acquisition Phases

• Separation – breaking up
• Transaction – one to another
• Incorporation – new role and the identity associated
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Use of Symbols and Rituals in Role Transactions

Often we are uncomfortable with the new role because we’re inexperienced
Rituals (marriage, funerals) – involve participations who help us to validate the role
transaction
• Products associated with new roles
• Reflexive evaluation – feedback from others
The Connectedness Function

Express our membership in a group
Personal connections to significant people, events or experiences
The Expressiveness Function
Express something about you; our uniqueness
Grooming ritual: ritual we engage in to bring out or maintain the best in special
products
Divestment ritual: ritual enacted at the disposition stage that is designed to wipe away
all traces of our personal meaning in a product
Marketing Implication
• Connecting products with people, places or events
• Product help consumers stand out as unique
• Multiple functions are possible
The Self-Concept
Symbolic functions of a product together with consumption rituals help to define and
maintain our self-concept
• Actual Identity Schema – a set of multiple, salient identities that reflect our
self-concept
• Ideal Identity Schema - a set of ideas about how the identity would be
indicated in its ideal form
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• Fit with identities of their target consumers

• Consistent with all aspects of multiple self-concepts
• Frame switching - stimulated by language cues, a consumer who identifies
with more than one culture will activate the aspects of self-concept related to
culture language background
"Special Possessions and Brands

Special Brands
• People stand for

• Extension of who they are
• Feel as their own reputation
• Ambassadors
Types of Special Possessions

• Pets
• Memory-laden objects: special meaning evoke memories or emotions
• Achievement symbols: e.g., Rolex
• Collections
Characteristics
- Irreplaceable
- Low price elastic
- Reluctance to discard because they lose their functional value
- Consumer personify special possessions
Symbolic Values: fulfil the emblematic, role adoption, connectedness and

expressiveness functions (our style)
Mood-altering properties: evoke feelings of pride, happiness and joy
Instrumental importance / Utilitarian value: extremely useful (cell phone) /
Financial aspects
Characteristics for Consumers

Social class: symbolise values as
o personal history; self-development

o ties interpersonal
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o demonstrate status
Mobility: tendencies acquired
o global nomads
o spiritual
o appearance related
Gender and Age
"Gif Giving
An important aspect of symbolic consumption involves transferring meaning from
one individual to another through gift or physical goods or experiences
The Timing of Gifts

• Culturally determined (e.g., holidays)
• Religious occasions
• Specific to the individual (e.g., birthday)
Stages
• Gestation – when consider to give a gift to someone
• Presentation – when actually gives
• Reformulation - revaluate the relationship based on the gift-giving
experience
Possible Effects
• Strengthening
• Affirmation
• Negligible effect
• Weakening
• Severing
Promote their products and services as gifts
Major changes in the gift-giving process due to online-shop
Growing use gift cards
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Chapter 17 Marketing, Ethics and Social Responsibility in today’s

Consumer Society + Lecture 11
XXV
"Addictive, Compulsive & Impulsive Behaviour
Addictive
Taking actions as a result of a physiological dependency
• Chemical dependency on products or activities

• Repeated use of products, event if dangerous
• Involving negative consequences
• Harmful
Irresistible urge to perform an irrational consumption
Strong emotional components:
• Respond to anxiety or tension
• Feel great emotional arousal
• Emotional high and loss of control
• Remorse, guilt, shame and depression
Compulsive: An inability to stop doing something
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Why?
Low self-esteem
• The attention and social approval
• Temporarily raise a compulsive buyer
Personally trait
• Buying makes feel more important
• Alienated from society
Family related factors
e.g., eating disorders
Impulsive: Nonthoughtful action
"Consumer Theft
A desire to steal things
Prevalence: credit card, piracy of music, movies; coupons; identity
Factors:
1.Temptatio of Steal
Consumers want products that they legitimately cannot buy

Embarrassing to buy or cannot legally to buy
2.Ability to Rationalise Behaviour

Eating grape: the cost seems to negligible that we word stealing seems no to apply
Downloading
"Black market
Consumers pay for items not readily available
• Sellers are unauthorised – illegal
• Legal to short supply
• Illegal (e.g.,weapons)
"Underage Drinking and Smoking
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Exposed to alcohol ads – positive behaviour, attractive models/actors

Evidence: youthful smokers & drinkers are more likely to choose the most advertised
brand
Critical determinants
• Peer influence
• Parents behaviour
• Self-esteem
"Advertise to Children
• Undeveloped cognitive abilities

• Unable to distinguish between ad and tv program
• Teaches children to become materialistic
"Advertising and Self-Image

Social Comparisons Theory: a theory that proposes that individuals have a drive to
compare themselves with other people
"Social Responsibility Issues in Consumer Behaviour

When do consumers’ like to conserve?
• Personally responsible
• Personally relevant
• Perceived barriers
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HD 24202 Consumer Behaviour

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lOMoARcPSD|5476280

HD 24202 CONSUMER BEHAVIOUR

Consumer Behaviour (University of Technology Sydney)

StuDocu is not sponsored or endorsed by any college or university

CONSUMER BEHAVIOUR 25300

Chapter 1 An Introduction to Consumer Behaviour +

What is Consumer Behaviour? / Defining

It involves choices about the Consumption of Time.

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Consumer Behaviour as a field of study

As marketers, What do we need?

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An offering meets someone’s Needs, Values, or Goals – a form of Self-expression, Fit

Find for privacy, Family traditions, Culture influences, Pleasurable consumptions.

• The process by which a Consumer Discards

Sales of a product can be increased:

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• Building customer relationship

What influences Consumer Behaviour?

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• High Effort Behaviour

"Felt Involvement: psychological experience of the motivated consumer

Enduring: long-term interest in an offering, activity or decision

Affective: interest in expending emotional energy and evoking deep feelings

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We can be involved with a brand, ads or medium (tv, newspaper, internet) or a

Emotional connection makes consumers less price sensitive towards a brand.

"What determines Motivation?

Consistent with Self-concept:

Identifying a brand and make Emotional Connection

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• Can be Internal and affected by External

o Approach-Avoidance Conflict: inner struggle about acquiring or

• Inconsistent across cultures

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Marketing approach for needs:

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1. Set goals that they try to pursue over time

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Appraisal Theory – emotion are based on individual’s assessment of a situation

Self-control – process consumers use to regulate feelings, thoughts and

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• Consumers tend to be less motivated to process messages

"Marketing: Making Decisions based on Motivation

Selecting the Target Market

Marketing Promotions and Communications Decisions

Pricing Decisions - How sensitive is the customers

Making Distribution Decisions - Channels

II) Consumer Ability

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"Factors that affect our ability:

• cheap and accessible

Physical resources – body power

Social and Cultural resources

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III) Consumer Opportunity

"Can be influenced by:

Distraction - more on information processing, less on emotions

Amount, Complexity, Repetition and Control of information