REVISION BUYER BEHAVIOR

CHAPER 1: A MODEL OF BUYER BEHAVIOR

I) THE CONSUMER DECISION PROCESS:

1) Problem Recognition:
A consumer problem is a difference between an existing state and a desired one. To be simpler,
it is what happens to your current products? Run out? Need a new version……
2) Information Search:
Information search is undertaken to isolate an effective solution. Where do people go for the
information: internal, external, long term memories, friends, online…………..
3) Evaluation Of Alternatives:
Allow customers to determine and compare the relevant and feasible alternatives, the decision
can be made. What criteria are used to decide? Do they need extended evaluation or limited? All the
attributes of the product/service are important or some more critical than the others?
4) Store Choice And Purchase:
Selection of the retail outlet and the actual purchase of the good/service. Why customers choose
that outlet? Point of Sales? Promotion? Out of Stock? Or Their favorite shops which they usually buy from?
Product First then Outlet or vice versa?
5) Post Purchase Processes:
Related to what occurs after purchase: use, evaluation, disposal and repurchase behavior. Does
it perform satisfactorily? Are customers happy?
CHAPTER 2: SITUATIONAL INFLUENCES: (This is not in the revision slides but should have a look)
I) 4 MAIN SITUATION TYPES:
The situation in which consumers receive information has an impact on their behaviour.
If they are preoccupied then it is the marketer’s challenge to attract their attention, e.g. they may be
in a group, travelling, or not interested.
Shoppers in convenience stores, in a group, or with a shortage of time are less likely to be price
sensitive and search and compare brands.
Marketers need to understand how the usage situation influences consumers’ selection and use of
products. Some brands are selected for guests, while others are selected for private use, e.g. generic
brands are not likely to be used for guests. Purchasing influences alter if the purchase is for a business
use or one’s personal use, e.g. a car-buyer is more objective for business purchase.
Consumers frequently need to dispose of used goods and/or packaging and this can become a major
influence on the purchase decision, e.g. trade-in of a car.
1) Communication Situation : Where? Alone or with others? Surrounding noise?
2) Purchase Situation: Where? Alone or with others? In a hurry?
3) Usage Situation: With guests or alone? For pleasure or for work?
4) Disposal Situation: Before the next purchase? Trade-ins? After the purchase, e.g. packaging

II) 5 MAIN TYPES OF SITUATIONAL INFLUENCES:

1) Physical Surroundings: Store location,Interior décor,Music,Smell/aromas,Temperature

(airconditioning or heating),Choice provided (by product category or across the categories)
2) Social Surroundings: deal primarily with other persons present who could have an
impact on the individual consumer’s behaviour. This can be a positive or negative influence: for
example, consumers shopping for golf equipment or motor bikes would feel more comfortable when
shopping with like-minded people. Types of customers in the store,Queues and crowding,Whether the
consumer is likely to be known by others/recognized,Whether there are high-profile people/celebrities
shopping at that store,Whether the product will be consumed privately or in the presence of others
 3) Temporal Influences: deal with the effect of time on consumer behavior. Whether the
product is seasonal,Whether the product is urgently required (snack between lectures),Time available for
shopping limited/excess (the product may be an excuse for shopping),How long the previous product lasted
or was expected to last

4) Task Influences:reflect the different user roles anticipated by the individual. Is the
product utilitarian or used as a status symbol?,Is it a gift or for oneself?,Must the product be long-
lasting/tough? (e.g. an everyday watch) or decorative? (e.g. a dress watch), Is the product intended for
several uses? (e.g. a family computer for study and internet access)

5) Antecedent States: are features of the individual that are not lasting or relatively
enduring characteristics. They are momentary moods or conditions.

 Mood:
Feeling sad triggers buying sweets or seeing a funny movie
Feeling rejected triggers buying a new handbag
 Momentary conditions
Can’t eat ice cream because teeth hurt
Can’t buy a book because the credit card was left at home
Buy more groceries because hungry before shopping

6) Ritual Situations:
 Described as a set of interrelated behaviours that occur in a structured format, which have symbolic
meaning, and that occur in response to socially-defined occasions
 Important to marketers as they define consumption, e.g. anniversaries, seasonal gifts
 Traditions and rituals being continued and developed, e.g. Valentine's Day, Tet (Five fruits tray),
Halloween

III) SITUATIONAL INFLU AND MARKETING STATG:

 Developing a situational influence matrix
 Positioning the product based on situation
 Segmenting the market based on usage situation
 CHAPTER 3: PROBLEM RECOGNITION
I) PURCHASE INVOLVEMENT AND TYPES OF DECISION MAKING:

1) What is Purchase Involvement? The level of concern for, or interest in, the purchase process,
once the purchasing process has been triggered by the need to consider a particular purchase
2) Generic Problem Recognition: the recognition of a discrepancy that a variety of brands within a
product category can reduce
3) Selective Problem Recognition: the recognition of a discrepancy that only one brand in the
product category can solve
4) Habitual Decision Making:
A purchase decision effectively involving no decision as such; occurs when there is very low
involvement with the purchase and results in repeat purchasing behavior (also called routinized purchase
behavior)
Habitual decisions are divided in 2 categories: Brand Loyal Decisions and Repeat Purchase
Decisions
a) Brand Loyal Decisions: customer who displays a high degree of product involvement and high
emotional attachment to that brand
b) Repeat Purchase Decisions: a pattern of CBehavior that involves the purchase of the same
good/service over time, with or without loyalty to that good/service
5) Limited Decision Making:
Consumer decision-making used for products that are purchased occasionally. Also used when a
buyer needs to acquire information about an unfamiliar brand in a familiar product category.
LDMaking also occurs in response to some emotional or environmental needs. Ex: they might feel
bored with the current brand and try new one.
6) Extended Decision Making:
Very high level of purchase involvement,require an extensive internal and external Information
Search, complex evaluation of multiple alternatives, difficult high likelihood of post purchase dissonance
II) NATURE OF PROBLEM RECOGNITION : (not in the revision slides but should read)
The problem recognition is the result of a difference between desired state and actual state.
1) Actual State: the condition the consumer perceives himself/herself to be at this point in time
Ex: currently using Nokia 1202, only call, text
2) Desired State: the condition the consumer would like to be in at this point in time
Ex: want an Iphone for better connection, web surfing, chat……
III) TYPES OF PROBLEMS:
1) Active: A problem the consumer is aware of, or will become aware of, in the normal
course of events
2) Inactive: A problem of which the consumer is not yet aware.

IV) TYPES OF CONSUMER PROBLEMS AND ACTION REQUIRED

1) Routine problems:Expected, require immediate solution. Ex: need food, water, fuel….
2) Emergency problems:Not expected, require immediate solution. Ex: car suddenly breaks, need
repair
3) Planning problems:Expected, don’t require immediate solution. Ex: health check for every 6
months
4) Evolving problems:Not expected, don’t require immediate solution.Ex: aware that car needs to
be changed tires but don’t know exactly when
CHAPTER 4: INFORMATION SEARCH

I) DECISION ALTERNATIVES:
1) Unawareness Set: customers do not know about these products/brands
2) Aware Set: customers know about these products/brands. Include 3 subcategories:
a. Evoked (or Consideration) Set: comprise those brands customers will consider for the
solution of a particular consumer problem, depending on the usage situation.
- What come in to your mind when you want to buy a phone? Iphone? Samsung?
HTC…..Evoked sets are often composed of brands from a single product category
(Ex: for buying phone, they only consider the Apple Iphone, Samsung Phone…. Not
involve other products from that brands)
b. Inert Set : brands that consumer is aware but towards those brands you were basically
indifferent( no views or opinions about the brands, just know them but not take action)
Ex: Sony Phones, Motorola Phones, Nokia Phones…
c. Inept Set: consumers think those brands are unworthy to consider, they might dislike the
brands
Ex: Qmobile, China Phones….
II) MARKETING STRATEGIES BASED ON INFORMATION-SEARCH PATTERNS: (not in
Rev Slides)
1) Maintenance Strategy: Defend against disruptive tactics, Constant activity + interest

 Attention to product quality

 Distribution (Avoid out-of-stock)
 Reinforcement advertising strategy
 Maintain product development and improvement
 Maintain top of mind awareness

2) Capture Strategy: Constant supply + quality,Continue limited search

 Where does the customer find information?
 What does (s)he evaluate on?
 Provide info on price and availability in local media
 POP displays
 Active website

3) Preference Strategy: Search locations must be anticipated, e.g. chemists,POP + sales assistance
 Extensive advertising
 Sales person with extra motivation
 POP displays
 Pamphlets
 Well-designed website
 Limit search

4) Disrupt strategy:Attention-seeking ads,Free samples or bonus encouraging trial, Comparative

advertising
 Product Innovation
 Lower price
 Heavy Promotion
 Eye-catching package design
 POP displays
 Comparative advertising
 Find a competitive advantage
5) Intercept Strategy:

 Advertise to build awareness and reasons to consider

 Make sure you are where customers search
 Provide info on price and availability in local media
 POP displays
 Active website
 Product improvement
 Free samples
6) Acceptance Strategy:
 Long-term advertising designed to change perceptions of the brand
 Build awareness
 Advertise but don’t “sell” the brand
 Encourage consumer to seek information
 Make sure the right information is available target
CHAPTER 5: EVALUATIVE CRITERIA AND RELATIVE IMPORTANCE
I) DETERMINE WHICH EVALUATION CRITERIA ARE USED (not in RS)
1) Direct Methods: Asking consumers, Focus groups, Observation. It is important to know, when
using direct methods, whether the consumers actually know why they have a preference for the
various products/brands. They may not have thought about the criteria; however, this may be a
very important research finding in itself.
2) Indirect Methods:
a) Projective Techniques: techniques designed to measure feelings, attitudes and motivations
that consumers may be unable or unwilling to reveal
b) Perceptual Mapping: consumers judge the similarity of alternative brands without
specifying evaluation criteria.
II) DETERMINING CONSUMERS’ JUDGMENTS OF BRAND PERFORMANCE IN

TERMS OF SPECIFIC EVALUATIVE CRITERIA: (not in RS)

 Rank-ordering scales:Ranks a list of items: most favourite to least
 Semantic-differential scales:Ranks between opposite levels of performance eg fast to slow
 Likert scales:Level of agreement disagreement

III) DETERMINING THE RELATIVE IMPORTANCE OF EVALUATIVE CRITERIA

1) Constant Sum Method-Direct method:
Most common method, requires consumer to allocate 100 pointw in total to his/her evaluation
criteria
 2) Conjoint Analysis- Indirect Method:
A technique that provides data on the structure of consumers’ preferences for product features and
their willingness to trade one feature for more of another.

IV) INDIVIDUAL JUDGMENT AND EVALUATION CRITERIA:

1) Surrogate Indicator: use one attribute to evaluate the level of another attribute. Ex: use price
attribute to estimate the level of quality attribute.
2) Sensory Discrimination: use 5 senses to evaluate. The ability of an individual to distinguish
between similar stimuli. Ex: sound of a stereo system, taste of food…
3) Just-Noticeable Difference: notice minimum amount of difference between one brand and another
brand. Ex: C2 tea is sweeter than O0 tea.
 V) USAGE OF SURROGATE INDICATOR: (not in RS)
1) Predictive Value: the customer’s perception that 1 attribute is an accurate predictor for another
2) Confidence Value: consumer’s ability to distinguish between brands on the surrogate indicator.
3) How To Apply:
a) Price To Indicate Quality: Rolex watches are expensive and yet more durable than Casio
Watches
b) Country of Origin: Made in Japan vs Made in China
c) Celebrity Endorsement: High class jewelry represented by Ly Nha Ky
d) Seal of Approval: Vietnamese High Quality Product

VI) 5 DECISION RULES BY CONSUMERS (not in RS)

CHAPTER 6: OUTLET SELECTION AND PRODUCT PURCHASE

I) ATTRIBUTES AFFECTING RETAIL OUTLET SELECTION: (not in RS)
1) Retail format: Low or High Involvement Buying.
2) Store image
3) Store brands
4) Retail advertising
5) Outlet location and size

II) CONSUMER CHARACTERISTICS AND OUTLET CHOICE (not in RS)

1) Shopping orientation: traditionalists, passive shoppers,value seekers, modern responsibles,time
starved
2) Perceived Risk:
a) Financial Risk: perceive risk to his financial status when he purchases
b) Social Risk: perceive risk to his image when he purchase

III) IN-STORE INFLUENCES:

1) Point Of Purchase Or Point Of Sale Display:
2) Discounts and Promotions:

3) Store Layout: Physical layouts and locations of items

4) Stockouts:
5) Sales Personnel: knowledge,skill, customer relationship…..
CHAPTER 7: POST PURCHASE PROCESSES

I) POST PURCHASE DISSONANCE :

Doubt or anxiety about the correctness of one’s decision after a purchase has been made
1) Degree of commitment or irrevocability of the decision: the harder it is to alter the decision, the
more likely the consumer is to experience dissonance
2) Importance of the decision to the customer: more important more possibility to dissonance
3) Difficulty of choosing among the alternatives
4) Individual’s tendency to experience anxiety

II) PRODUCT USE AND NON-USE:

1) Product Use:
a) Use Innovativeness: when consumers use a product in a new way. Ex: baking soda for brushing
teeth
b) Multiple Uses, Multiple Products: product fulfills several uses competitive advantage.Use
one product may require or suggest the use of other products. Ex: liquid make up base with spf,
shampoo and conditioner, printer and ink, cellphone and charger…..
c) Regional Use Behavior: Ex: instant rice of British and traditional cooking rice of Vietnamese.
2) Packaging:
More effective packaginghow consumers use the products, the purposes of products. Packing can be
important value creating aspect of a product.
3) Defective Products:
Product Recalls: the situation where an unsafe product is recalled by its manufacture, usually with full
refund or exchange. Ex: Toyota recalls cars because of technical mistakes.
III) MARKETING STRATEGIES FOR PRODUCT DISPOSAL:
1) Trade-ins: a product that consumers try to sell back when they purchase a new one. Ex: sell old
motorbikes to the dealers and buy new ones.
2) C2C: occurs when one consumer sells a product directly to another without a commercial
intermediary. Ex: post on 5giay.vn for selling old computer.
3) Recycling: Using materials from products or packaging in future products and packaging. Ex: Coca
tin can be recycled.
4) Environmental Disposal: product design. Ex: leaf , recycle sign, friendly with the environment…..

IV) PURCHASE EVALUATION:

1) Expectations: the sets of outcomes expected by consumers before entering into an exchange

2) Perceived Performance: the way a good or service delivers benefits, as perceived by the consumer
3) Complaint Behavior: consumer action that involves contacting a supplier or third party to request
the redress of a dissatisfaction experience while purchasing or using a product

V) CUSTOMER SATISFACTION, REPEAT PURCHASE, LOYALTY

1) Repeating Purchase Behavior: purchase the same good or service overtime, with or without
loyalty to that good/ service. Ex: that product is unique; no other brands have it so you only buy
that brand.
2) Brand Loyalty: commitment to a brand by a consumer because he/she believes it best meets
overall needs, and because an emotional attachment has been formed. Ex: skin moisturizers, LV
bags…..
Characteristics of Brand Loyalty:
 Biased
 A behavioural response
 Expressed over time
 A consumer selects a brand over alternative brands
 A function of psychological processes
3) Relationship Marketing:
Five key elements:
• Developing a core product/service on which to build
• Customising the relationship to the individual customer
• Augmenting the core product/service with extra benefits
• Pricing in a manner that encourages loyalty
• Marketing to employees so that they perform well for customers
CHAPTER 8: PERCEPTION

I) EXPOSURE:
Occurs when a stimulus, such as an image on a billboard, or the smell from a bakery, comes within
range of our sensory receptor nerves- sight, sound, taste, smell and touch.
1) Deliberate Exposure: (Selective Exposure):
- Consumers seek information that will help achieve certain goals
 Immediate
 Long-Range
Ex: if you want to buy a new phone, you might seek for the ads of Samsung or Iphone, not the ads of other
products
2) Random Exposure (Absolute Threshold): such as billboards, newspapers ads, information on
those are available but not exposed to the customer’s receptor nerves.
Ex: there is ad about new pies on newspaper, you just look at it and did not pay more attention.
II) ATTENTION:
Occurs when stimulus activates one or more sensory receptor nerves and the resulting sensations
go to the brain for processing
Determined by: Stimulus,Individual,Situation
 1) Stimulus:
- Size and Intensity: bigger billboardseasy to notice, intensity: loudness, brightness attract more
attention
- Color and Movement: bright colors, movements more noticeable than the still ones.
- Position: the placement of the object in the visual view, object near the center of visual field easy
to be noticed
- Isolation: the separation of a stimulus object from the other objects. Such as placing a brief message
in the center of an otherwise blank or white advertisement.

- Format: the manner in which the message is presented. Simple, straightforward presentations 
more attention than complex and long presentations.

- Contrast: attend more closely to stimuli that contrast with their background than to stimuli that
blended with it
- Compressed Messages: messages that are sped up to increase attention(30s commercial reduced to

20s
- Information Quantity- Information Overload: occurs when consumers are confronted with so
much information that they can not or not attend to all of it

2) Individual Factors:
a) Perceptual Vigilance: the tendency of consumers to demonstrate a heightened awareness of those
stimuli that are relevant to their current needs or interests. Ex: you want to buy a TV,you are likely to
seek and pay attention to the TV ads
b) Perceptual Defence: : the tendency of consumers to demonstrate a decreased awareness of those
stimuli that are not relevant to their current needs or interests or for consumers to block out unwanted
stimuli. Ex: you already had an Iphone, and you blocked out the ads of phones

3) Situational Factors:

Elements in the environment other than the focal object that are likely to influence consumer behavior

Program Involvement: influence attention paid to the ads, affect the viewer’s attitude towards the ads and
the product advertised. Ex: Sponsor of sport event, appropriate ads for TV channels…..

III) INTERPRETATION:
1) Cognitive Interpretation: a process whereby stimuli are placed in existing categories of meaning(process
of adding meaning from existing knowledge) Ex: Jeep designed like a bug
2) Affective Interpretation: process of adding meaning from existing knowledge. Ex: family-like emotional
response for milk ads
3) Stimulus- Semiotics: how the meaning is created, maintained and altered. Anything that conveys the
meaning :words, pictures, music, colors, smells, prices, products…….Ex: pies ads with warm colors,
cleaning product with white colors……
4) Individual Characteristics:
a) Learning: time, space, friendship, colors and those are varied between cultures. People interpret and
give meaning to new events and date. Ex: dark purple means death in Mexico
b) Expectations: people tend to interpret stimuli consistently with their expectations. Ex: dark brown
pudding should be tasted chocolate, not vanilla.
5) Situational Characteristics: hunger, moods, temperature…Proximity: perceive objects or events that
are close to one another as related. Ex: manufacturer avoid ads in the news broadcast because bad news
might affect the moods of the audiences, also affects the ads
CHAPTER 9: LEARNING

I) LEARNING OF HIGH AND LOW INVOLVEMENT:

1) High Involvement Learning: the consumer is motivated to learn the material, in other words, the
consumer is willing to put some effort into their learning process
2) Low Involvement Learning:consumer has little or no motivation to learn or process the material

II) CONDITIONING:
1) Classical Conditioning: using an established relationship between a stimulus and a response to bring
about the learning of the same response to a different stimulus. Ex: Hearing popular music (unconditioned
stimulus) elicits a positive emotion (unconditioned response) in many individuals. If this music is
constantly paired with a particular brand of product, the brand itself will come to elicit the same positive
emotion (conditioned response). 
2) Operant Conditioning (Instrumental Conditioning): customer’s response to a stimulus is either
reinforced by a reward or discouraged by a punishment.Ex: product sampling, trial

III) COGNITIVE LEARNING:

1) Iconic Rote Learning: learning the association between 2 or more concepts in the absence of
conditioning. Ex: you may see ads stating “Panadol is a headache remedy” and associate the new concept
of Panadol with the existing concept “headache remedy”
2) Vicarious Learning: based on the observation and imitation of the behavior of others (The individual
learns by observing others' behaviour and adjusting their own accordingly) Ex: Celebrity Endorsement.
You see David Beckham advertise for a product and you wanna try that.
3) Reasoning: Ads using this approach usually provide the information necessary to allow the learning to
take place. Thus individuals use thinking to restructure and recombine existing and new
information to form new concepts by reasoning.
(Read more about the summary on page 275)
IV) GENERAL CHARACTERISTICS OF LEARNING (not in RS)

The strength of learning depends on:

• Importance: this refers to the value that the consumer places on the information to be learned—the greater
the importance, the greater the learning.
• Reinforcement: this is anything that increases the likelihood that a response will be repeated in the future—
the greater the reinforcement, the greater the learning.

• Repetition: this refers to the number of times that consumers are exposed to the information, or the number of
times they practice a behaviour. Repetition increases the strength and speed of learning.

• Imagery: this is the degree to which concepts evoke well-defined mental images. High-image concepts are
easier to learn.
CHAPTER 10: MOTIVATION

I) MASLOW’S HIERARCHY OF NEEDS:

II) PURCHASE MOTIVES:

1) Manifest Motives: motives that are known and freely admitted.
2) Latent Motives: Motives that are either unknown to the individual or are such that the individual is
very reluctant to admit them

3) Projective Techniques: measure feelings, attitudes, motivations that consumer would be unable or
unwilling to reveal
4) Netnography: qualitative research method investigate the consumer behavior of communities and
cultures that are present on the internet
CHAPTER 11: ATTITUDE AND ATTITUDE CHANGE

I) WHAT IS ATTITUDE: not in RS

An enduring combination of motivational, emotional, perceptual and cognitive processes with respect to
some aspects of the environment
A learned predisposition to respond in a consistently positive or negative way to an object or event
- Favourability: the positive or negative evaluation of the object
- Intensity: the strength of the consumer’s attitude
- Confidence: the degree to which the consumer believes their attitude is ‘right’
II) ATTITUDE COMPONENTS:
1) Cognitive Component: The consumer’s beliefs and knowledge about the attributes of a
particular brand, product or outlet.Ex: you think that Diet Coke has no kilojoules, contains
caffeine, good price and produced by large company
o Many beliefs relate to the evaluation of attributes
o The cognitive component represents the summation of evaluations

2) Affective Component: Represents the consumer’s ‘feelings’ or emotional reaction to a

product. Ex: you may like the Diet Coke but your friend thinks it’s not tasty.
 Based on experience or cognitive information
 Response is person-situation specific
 Cultural influence

3) Behavioral Component: Represents the consumer’s tendency (intention) to respond in a

particular way towards the object or event. Ex: you can buy or not buy, recommend or not the
Coke .
 Situational influence
 III) COMPONENT CONSISTENCY:
1) Component Consistency: The three components of an attitude (cognitive, affective and
behavioural) have a tendency to be consistent.
Example:
-Cognitive: “Toyota has a solid expertise in car making”
-Affective: “I love the feeling of driving a Toyota”
 What would be the consistent behaviour for this person?
A change in one component will have a flow-on effect on the other components.
2) Cognitive Dissonance: inconsistency between attitude components
Seven reasons why components appear to be inconsistent:
1. A need or motive required .
2. Ability required e.g. funds .
3. Consumer may trade off against other purchases .
4. Cognitive and affective may be weakly held
5. Others may influence the purchase e.g. spouse, child .
6. A specific situation may influence the purchase
7. Difficulty in accurately measuring all components

IV) ATTITUDE-CHANGE STRATEGIES:

1) Changing The Affective Component: Involves changing the consumer’s ‘feel’ about a product,
without necessarily directly influencing their beliefs or behavior
a) Classical Conditioning: stimulus like music paired with the brand name.
b) Affect Towards The Ads: like the ads like the product. Humor, celebrities or emotional
appeals increase effect of ads
c) Mere Exposure:repeatedly presenting a brand to an individual could make the individual’s
attitude towards the brand more positive. Ex: Dr. Thanh, Merino Ice Dream……

2) Changing The Behavioral Component:

Change strategies focusing on behaviour mostly rely on allow consumers to try the product.
- Operant conditioning
 Sampling
 Trial of website (leads to cognitive learning / higher involvement levels)

3) Changing Cognitive Component:

Change in beliefs or improved knowledge base will have a subsequent influence on affect and
behaviour (can apply reasoning)
a) Change the beliefs about the attributes of the brand:
b) Change the relative importance of these beliefs:

c) Add new beliefs

d) Change the beliefs about the attributes of the ‘ideal’ brand:how product can be promoted
as representing a new ideal.
CHAPTER 12: DEMOGRAPHIC AND LIFESTYLE

Look at the slides for this chapter

CHAPTER 13: HOUSEHOLD STRUCTURE AND CONSUMPTION BEHAVIOR

I) HOUSEHOLD LIFE CYCLE :

1) Single I: The Young Single Stage:

 Living at home: few cares and lead an active social life, few financial commitments, they can afford
for entertainment, shopping
 Independent: more financial obligations, spend more time in household management

2) Young Married: No Children Stage

 High level of disposable income
 Often dual incomes
 Share roles in household activities, savings, furnishings,insurance. This group spends heavily on
theater tickets, clothes, luxury holidays…..

3) Full Nest I: The Married With Young Children Stage

 One partner stops working

 About 61% keep dual income
 Discretionary funds are redirected to baby needs
4) Single Parent I: Young Solo Parent Stage

 An increasing divorce rate

 A higher proportion of divorced males remarry
5) Middle-Aged Single II Stage
 Small group of the population
 High disposable income
 Short on time
 Travel often
6) Delayed Full Nest I: Older Married With Young Children Stage
 Many have delayed having children until their thirties
 They have a high income and have acquired more capital and possessions
 They outspend all groups on childcare, mortgage repayments, home and garden maintenance, and
household furnishings
 High non-child spending e.g. food, alcohol, entertainment and savings

7) Full Nest II: Middle-Aged Married, With Children At Home Stage

 Older children
 Heavy consumer of lessons and clothing
 Need larger homes
 Some advertisers try to attract the attention of teenagers of these households
8) Single Parent II: Middle-Aged Single With Children At Home Stage
 Financially burdened group
 Older children take on significant household responsibilities
 Typically female
9) Empty Nest I: Middle-Aged Married With No Children At Home Stage

 Typically dual income

 Time poor, cash rich

 Spend on dining out, holidays, services

10) Empty Nest II: Older Married Couple Stage

 Either still working or fully retired

 Financial situation in decline

 Unique needs for health care, housing, food and recreation

11) Older single III stage

 Typically female

 Growing segment as baby boomers age

 Requirements for services, assistance with financial decision making, and seek security
II) HOUSEHOLD STRUCTURE HN &HCMC

III) HOUSEHOLD DECISION PROCESS:

1) Information Gatherer: individual who has expertise and interest in a particular
purchase. Different people seek information at different times and different aspects of the
purchase
2) Influencer: the person who influences the alternatives evaluated,the criterias and the final
choice. Children and teenagers are important influencers for a range of household purchase
decisions.
3) Decision Maker:person who makes the final decision
4) Purchaser: person who actually purchases the product. This can be adult or teenager
5) Consumer: the user of the product.
IV) TARGETING COMMUNICATIONS AT ‘INFLUENCERS’ AND ‘INFORMATION
GATHERERS’
CHAPTER 14: GROUP INFLUENCES

I) CONFORMITY:
 Conformity : the tendency to want to be like relevant and significant others
 Makes groups influential
 Generally makes life more pleasant
Ex: wearing uniforms to class conforming to basic social norm, shorts and sandals are only suitable
for casual wear not formal.

II) NORMS:
 Are general expectations about behaviours that are deemed appropriate for all persons in a
social context, regardless of the position they hold
 Are often communicated non-verbally
 Norms tend to cover all aspects of behaviour relevant to the group’s functioning and violation of
prevailing norms can result in sanctions
Ex: T-shirt for hanging out, skirt and shirt for job interview, formal wear for wedding party…..

III) NATURE OF GROUP INFLUENCE:

1) Information Influence: Behaviours and opinions of reference groups are used as potentially useful
pieces of information
Ex: you see a particular movie because it is recommended by a friend who has similar taste in
movies. You order the beers because you know that your friends like that
 2) Normative Influence: (Utilitarian Influence)
-When an individual fulfils group expectations to gain a direct reward or avoid a punishment
Ex: you don’t wear the old fashioned cloths anymore because you don’t want to be teased by them.
You wear formal cloths for interview because you want to create the professional image with the
interviewer.

3) Identification Influence: (Value-Expressive Influence)

-When an individual uses perceived-group norms and values as a guide for their own attitudes or values
Ex: Blackberry phones for successful businessmen, suits for businessmen, diamond ring for rich
women……

IV) CONSUMPTION SUBCULTURES (not in RS)

A consumption subculture is a distinctive subgroup of society that self-selects on the basis of a shared
commitment to a particular product class, brand or consumption activity. Ex: cosplay
V) BRAND COMMUNITY (not in RS): is a specialized, non geographically bound group of
people, based on a structured set of social relations among admirers of a brand
 Brand community members share a sense of belonging and feel different from other people
outside the community
Ex: Vespa group, Motor group…..
VI) OPINION LEADERSHIP:
- Opinion leaders filter, interpret or provide information for individuals within groups
- Situations in which opinion leadership occurs:

 One individual exchanges information with another

 One individual volunteers information

Characteristics of opinion leaders

 Opinion leaders have enduring involvement with product category .

 Function primarily through interpersonal communications and observation .
 Similar demographic characteristics to the group
 Public individuation – attention seeking
 High level of exposure to media .
 The market maven – expert on all products!
 Motivation of dissatisfied customers to tell others of their negative message

VII) CATEGORIES OF INNOVATIONS

1) Continuous Innovation: a product for which adoption requires relatively minor changes in
behavior.
2) Dynamically Innovation: a product for which adoption requires a major change in an area of
behavior that is relatively unimportant to the individual
3) Discontinuous Innovation: a product for which adoption requires dramatic changes in
consumer behavior. Ex: when computers first introduced
The adoption process and extended decision making

VIII) FACTORS AFFECTING INNOVATION UPTAKE

1. Type Of Group: some groups are more accepting of change than others. Young, affluent, highly
educated members would accept change, new products
2. Type Of Decision: the fewer individual involved in the decision, the more rapidly the innovation
will spread. Ex: mobile phones involve younger, single adults and hence to spread rather quickly
3. Marketing Effort: the rate of diffusion is influenced by the extent of the marketing effort
involved
4. Fulfillment of Felt Need: the more obvious the need the innovation satisfied, the faster the
diffusion
5. Compatibility: the more purchase and use of the innovation are consistent with the individual
and group’s values or beliefs, the more rapid the diffusion
6. Relative Advantage: the more the innovation is perceived to meet consumers’ needs relative to
earlier products, the more rapid the diffusion. The product must have either a performance
advantage or a cost advantage. The combination of these 2 factors is called relative advantage.
7. Complexity: the more difficult the innovation is to understand and use, the slower the diffusion
8. Observability: the more easily consumers can observe the positive effects of adopting an
innovation, the more rapid its diffusion will be. Ex: smaller digital camera travel use….
9. Trialability: the easier it is to have a low cost or low risk trial of the innovation, the more rapid
its diffusion.
10. Perceived Risk: the higher the degree of risk associated with trying an innovation, the slower the
diffusion of that product. Risk can be financial, physical or social
 CHAPTER 15: SOCIAL STRATIFICATION

Social class: The hierarchical division of a society into relatively permanent and homogenous
groups with respect to attitudes, values, and lifestyles.

I) BEHAVIOR AND SOCIAL CLASS

1) Unique behaviours
Upper Class: Product: diamonds, expensive product
Situation: Entertainment, Ex: Opera
Not all behaviours are unique:
2) Shared behaviours
Situation: Entertainment. Ex: Football match: both upper, middle, working class
II) THE FUNCTIONAL APPROACH TO SOCIAL-CLASS STRUCTURE

III) THE REPUTATIONAL APPROACH TO SOCIAL-CLASS STRUCTURE

IV)POSITIONING WITHIN SOCIAL CLASS

V) UPWARD-PULL STRATEGY TARGETED AT THE MIDDLE CLASS

VI) USING SOCIAL CLASS TO DEVELOP MARKETING STRATEGY

CHAPTER 16: CULTURE AND CROSS CULTURE VARIATIONS IN CONSUMER BEHAVIOR

I) OTHER-ORIENTED VALUES
1. Individual vs collective: are people driven by acting for the good of the community over that of
individual’s good?
2. Romantic vs practical: does the culture believe that “love conquers all?”
3. Adult vs child: is family life organised to meet the needs of the children or the adults?
4. Masculine vs feminine: to what extent does social power automatically go to males?
5. Competition vs cooperation: do people obtain success by excelling over others or by
cooperating with them?
6. Youth vs age: are wisdom and prestige assigned to the younger or the older members of a
culture?
II) ENVIRONMENT-ORIENTED VALUES
1. Maximum vs minimum cleanliness: is cleanliness pursued beyond the minimum level needed
for health?
2. Performance vs status: is the culture reward system based on performance or on inherited
factors such as family or class?
3. Tradition vs change: are existing patterns considered to be superior to new patterns?
4. Risk-taking vs security: are those who take risks admired?
5. Problem-solving vs fatalism: are people encouraged to overcome problems or take a “whatever
will be will be” attitude?
6. Nature threatening v friendly: is nature regarded as something to overcome or admire?
III) SELF-ORIENTED VALUES
1. Active vs passive: is a physically active approach to life valued more highly than a less active
orientation?
2. Material vs non-material approach: how much importance is attached to the acquisition of
material wealth?
3. Hard work vs leisure: is a person who works harder admired?
4. Postponed vs immediate gratification: are people encouraged to “save for a rainy day” or “live
for today”?
5. Sensual gratification vs abstinence: is it good to enjoy sensual pleasure (food, drink, etc)
6. Humour vs seriousness : is life to be regarded as a strictly serious affair or is it to be treated
lightly?