633d639af277b Learn Week 2 Ch. 2

Marketing Management 6e
Chapter 2: Consumer Behavior
Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
After you have finished this chapter, you should be able to:
2-1: Describe the phases of the purchase process
2-2: Discuss the different types of purchases and the challenges

they pose to marketers
2-3: Understand different consumer psychological needs and the

impact they have for marketing
Marketing Framework
2-1
Three Phases of the Purchase Process
Consumer Behavior
• There are known, reliable patterns that comprise consumer
behavior, including:
• The phases consumers go through when making a purchase
• The different kinds of purchases that consumers make
• How consumers sense and perceive, become motivated, form attitudes,

and make decisions
• The cultural differences that influence consumers
The Purchase Process
Pre-Purchase Phase
• Customers recognize a need/desire.
• Some are heavily marketer influenced; some are not.
• e.g., Having trendy clothes vs. needing to eat
• Customers search and evaluate products that address their

needs.
• e.g., Conduct online search, ask friends, etc.
• Customers create a consideration set.

• All brands considered as candidates for purchase.
Discussion Activity 1
Describe the process you used when you decided which college to
attend and consider the following questions:
1. What need/desire drove you to consider “purchasing” college?
2. How did you search for information?
3. Which colleges were in your consideration set?
4. What criteria did you utilize to form this set?
Discussion Activity 1 Debrief
1. What need/desire drove you to consider “purchasing” college?
• Answer: Identified what was lacking; motivated either internally or
externally
2. How did you search for information?
• Answer: Online; mail from colleges; college recruiters; family/friends
3. Which colleges were in your consideration set?
• Answer: Answers will vary
4. What criteria did you utilize to form this set?
• Answer: Location; cost; field of study; family tradition; other
Purchase Phase
• Customers narrow the consideration set.
• Customer may delay the purchase.
• Customer may decide not to purchase.
• Customers decide on retail channel.
Post-Purchase Phase
• Customers assess the purchase and the purchase process.
• Customers determine satisfaction.
• Did the customer get what was expected?
• Customers’ level of satisfaction leads to:

• Repeat purchases
• Negative or positive word of mouth
• Product returns, etc.
Who Utilizes the Purchase Process?
• Business-to-Consumer (B2C) and Business-to-Business (B2B)
both utilize the buying process.
• The amount of time spent on a particular stage depends on what is
being bought.
• A business customer is an agent buying something on behalf of

an organization.
• e.g., administrative assistants, operations department, etc.
2-2
Different Kinds of Purchases
Types of Consumer Purchases
• Convenience purchases
• Low involvement; standard, frequently consumed goods or impulse
purchase.
• Consumers don’t spend much time thinking or planning the purchase.
• Shopping purchases
• Medium involvement; not as frequently purchased.
• Consumers spend time and effort prior to purchase.
• Specialty purchases
• High involvement; occasional purchases, often more expensive, require
more thought.
• Customers put much effort into the purchase.
Types of Business Purchases
• Straight rebuy:
• Low involvement; purchase what was purchased last time with little or no
thought
• Modified rebuy:
• Medium involvement; something about the purchase is altered, requiring
some thought
• New buy:
• High involvement; purchase something that hasn’t been purchased
before requiring much thought and planning
Purchase Differences
Low-Involvement Purchases
• Low-involvement purchases:
• Have more price sensitivity
• Use price discounts
• Generally don’t generate word of mouth
• Are usually distributed extensively
• Marketers should focus on how to capture consumers’ attention
High-Involvement Purchases
• High-involvement purchases:
• Have less price sensitivity
• Use brand communities and events
• May generate word of mouth
• Are usually distributed selectively
• Marketers should focus on providing consumers with information
Anatomy of a Grocery Store
• Layout of a grocery store encourages purchases:
• Group similar products
• Group complementary products
• Place common purchases far from the entrance
• Group products to form consideration sets
• Place high-profit and impulse-purchase items at end of aisles and
checkout lanes
2-3
The Marketing Science of Consumer Behavior
Sensation and Perception
(1 of 3)
• Senses convey information.
• Consumers have selective attention; they block out what is not
relevant.
• Vision can:
• Identify colors that convey product characteristics, brand identity,
meaning
• Hearing can:
• Increase spending (e.g., quick tempo music = increased spending)
• Convey a brand (e.g., Harley-Davidson’s distinctive sound)
(2 of 3)
• Smell can:
• Get attention (e.g., smelling the Cinnabon store)
• Allow product sampling (e.g., perfume in magazines)
• Taste can:
• Distinguish one brand from another (e.g., Coke vs. Pepsi)
• Touch can:
• Convey brand imagery (e.g., well-designed products compared to value-
designed products)
(3 of 3)
• Subliminal advertising
• An ad that is shown so quickly that it doesn’t meet the threshold of liminal
recognition.
• Has been debunked by research.
• Mere exposure
• Repeated exposure to an ad brings familiarity and a positive feeling.
• Perceptual fluency
• Customers may pay the most attention to the content of a message.
• However, the colors, font, etc. make a brand impression as well.
Learning, Memory, and Emotions
• Sensory and perceptual impressions can become brand
associations.
• Learning is the process by which associations get past the
sensory and perception stages into short-term memory and
then, with repetition and elaboration, into long-term memory.
• Classical and operant conditioning
Classical Conditioning
• Pavlov’s dogs:
• Stage 1: a dog drools at sight of food
• Stage 2: a dog doesn’t respond to a bell
• Stage 3: ringing a bell while placing food in front of the dog elicits drool
• Stage 4 (occurs over time): a bell rung in front of the dog elicits drool
• A similar process can be used in advertising and jingles.

• Companies may have negative brand associations in
customers’ memories.
• Some companies change names to help create new associations (e.g.,
Philip Morris is now Altria; ValuJet is now AirTran).
Operant Conditioning
• Skinner used pigeons to show that learning occurs by positively
reinforcing behavior.
• Fixed ratio reward: reward is given every time or every 4th time, etc.
• Variable ratio reward: reward timing varies unpredictably.
• Subject will engage in the behavior more often if rewarded on the
variable schedule.
Group Activity
Form small groups of 3-6 participants. Assign half of the groups to
part A and half to part B.
1. In small groups, design a loyalty program for a deli that uses
operant conditioning with
• Part A: fixed ratio reward
• Part B: variable ratio reward
2. Have groups share their loyalty program particulars and then

discuss which reward ratio is likely to be more effective and
why.
Group Activity Debrief
1. In small groups, design a loyalty program for a deli that uses
operant conditioning with either fixed ratio reward (Part A) or
variable ratio reward (Part B).
• Answer:
• Part A: A fixed ratio reward might be a loyalty card (after 10 purchases,
get one free); a deal-of-the-day; etc.
• Part B: A variable ratio reward might be surprise deals (2-for-1 item at
random times); an extra item randomly for recognized customers;
sales
2. Which reward ratio is likely to be more effective? Why?

• Answer: Answers will vary. In general, variable ratio rewards tend to be
more effective.
Motivation: Hierarchy of Needs
Maslow’s Hierarchy of Needs
(1 of 2)
• Maslow suggests that people must have their basic needs met
before moving on to more abstract needs.
• Marketers may identify their product with one of Maslow’s
needs.
• e.g., Volvo and safety needs
• Many brands are associated with a sense of belonging, social
acceptance, and respect.
Maslow’s Hierarchy of Needs
(2 of 2)
• Marketers may identify products with aspiration groups.
• Marketers may offer an extended brand line for customers at
different levels in Maslow’s hierarchy.
• e.g., Mercedes has a lower-end C model, then upward to E, S, and
finally CL models.
• Marketers use hierarchy for positioning.
Distinguishing Motivations
• Utilitarian vs. hedonic
• e.g., suit for interviews vs. Armani suit
• Conformity vs. individuality

• May vary over lifetime or in different situations
• Risk seeking vs. risk averse

• Risk tolerance may vary with product knowledge
Attitudes and Decision Making
• Attitudes and decision making influence whether consumers:
• Will buy a brand
• Repeatedly purchase it
• Become loyal
• Recommend it to others, etc.
• Attitudes are a mix of beliefs and importance weights:
• Beliefs (e.g., I think Sprite has caffeine)
• Importance (e.g., I think having caffeine is important)
• Customer may differ on both importance and beliefs
Decision Making
(1 of 3)
• Decision making:
• With a few choices, consumers easily compare brands to make decision.
• With many choices, consumers use two stages:
• Stage 1: Determine consideration set.
• Stage 2: Compare brands to make a purchase decision.
Decision Making
(2 of 3)
• Stage 1
• Non-compensatory method: if a brand doesn’t have important attributes,
it is cut.
• Lexicographic method: compare all brands on most important attribute;
cut brands that don’t have it; move on to next important attribute and
compare and cut, etc.
Decision Making
(3 of 3)
• Stage 2: Compare brands in detail.

• Compensatory model (cost/benefits)
• One excellent attribute can compensate for a poor attribute.
• Some websites aid this process by allowing users to view a side-by-side
comparison of attributes.
Behavioral Economics Principles
Differences in System 1 and System 2 thinking
• System 1
• Automatic, unconscious
• Efficient, heuristics
• Routine decisions
• May optimize a consumer’s time
• System 2
• Effortful, conscious
• Reasoned, thought through
• Complex decisions
• May optimize certain product features
The Psychology of Prospect Theory
Use of the “Nudge”
• Nudge is a gentle means of mental persuasion.
• Operates on the level of the nonconscious
• Marketing tool to influence consumers’ information processing
• Walks a fine line between helpful and unethical
Cultural Differences
• Sociocultural differences—social class, age, gender, ethnicity,
and nationality—influence consumer impressions and
preferences and produce shopping patterns.
• Social class
• e.g., Old-monied people seek exclusivity; nouveaus indulge in
conspicuous consumption.
• Age
• e.g., Young people buy furniture; as they get older, they buy diapers
and minivans; then college and finally healthcare.
Discussion Activity 2
1. How can a marketer capitalize on the Baby Boomer segment?
Discussion Activity 2 Debrief
1. How can a marketer capitalize on the Baby Boomer segment?
• Answer: Answers will vary, but should take into consideration some
general characteristics of the Baby Boomer cohort:
• They take their time and do research before spending.
• They expect excellent customer service.
• They may have age-related issues (e.g., less able to read small
print, reduced mobility, chronic health issue, etc.).
• Many are still quite active and even Internet-savvy; don’t consider
themselves “old”; appreciate patience.
Managerial Recap
(1 of 2)
• Three major phases of consumption
• Pre-purchase, purchase, post-purchase
• Three major classes of purchases

• B2C: convenience, shopping, specialty
• B2B: straight rebuy, modified rebuy, new buy
• Involvement determines class
Managerial Recap
(2 of 2)
• How do consumers think?

• Sensing and perceiving information that is learned and stored in
memory.
• Motivations help marketers understand what consumers are seeking to
satisfy.
• Attitudes and decision making are subject to influence by good
information and by biases.
• Social norms define consumers.
Knowledge Check Activity
A low-involvement purchase would have which of the following

characteristics?
a. Low levels of price sensitivity
b. Significant levels of word of mouth
c. Use of price discounts
d. Marketed with focus on providing information

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Marketing Management 6e

Chapter 2: Consumer Behavior

2-1: Describe the phases of the purchase process

2-2: Discuss the different types of purchases and the challenges

2-3: Understand different consumer psychological needs and the

• The different kinds of purchases that consumers make

• How consumers sense and perceive, become motivated, form attitudes,

• The cultural differences that influence consumers

• Customers search and evaluate products that address their

• Customers create a consideration set.

• Customer may decide not to purchase.

• Customers decide on retail channel.

• Customers’ level of satisfaction leads to:

• Negative or positive word of mouth

• Product returns, etc.

• A business customer is an agent buying something on behalf of

• A similar process can be used in advertising and jingles.

2. Have groups share their loyalty program particulars and then

2. Which reward ratio is likely to be more effective? Why?

• Conformity vs. individuality

• Risk seeking vs. risk averse

• Stage 2: Compare brands in detail.

• Three major classes of purchases

• How do consumers think?

A low-involvement purchase would have which of the following

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