1. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

2. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

3. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographics, Psychographics, and Personality CHAPTER 7

4. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics Personality Personal Values Lifestyles

5. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics is the size, structure, and distribution of a population

6. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics is the size, structure, and distribution of a population Marketers use demographic analysis as market segment descriptors and in trend analysis

7. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Consumer analysts use demo- graphic trends to predict changes in demand for and consumption of specific products and services

8. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Consumer analysts use demo- graphic trends to predict changes in demand for and consumption of specific products and services Demographic analysis provides information for social policy

9. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis and Social Policy Demographics used in analyzing policy questions related to the aggregate performance of marketing in society (macromarketing)

10. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Consumer analysts use demo- graphic trends to predict changes in demand for and consumption of specific products and services Demographic analysis provides information for social policy Industrial demand is ultimately derived from consumer demand

11. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic and Industrial Demand Analysis of demographic trends is important for industrial and business-to-business marketing In an industrial firm, you must understand not only the customers’ minds, but also the minds of the customers’ customers

12. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Changing Structure of Markets Geographic Factors Economic Resources Global Markets

13. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Market analysis requires information about people with needs ability to buy willingness to buy authority to buy

14. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets How many people will there be? birthrate natural increase fertility rate total fertility rate population momentum

15. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Birthrate: number of live births per 1,000 population in a given year Natural increase: surplus of births over death in a given period Fertility rate: number of live births per 1,000 women of childbearing age (15 to 44 years)

16. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Total fertility rate: average number of children that would be born alive to a woman during her lifetime if she were to pass through all of her childbearing years conforming to age-specific fertility rates of a given year

17. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Population momentum: future growth of any population will be influenced by its present age distribution

18. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Factors affecting birthrates: Age distribution of population Family structure Social attitudes toward family/children Technology

19. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Factors affecting birthrates: Age distribution of population Family structure Social attitudes toward family/children Technology Increasing life expectancy Immigration represents about 30% of annual growth in United States

20. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. U.S. Population Projections

21. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing U.S. Age Distribution Changes in age distribution affects the types of products and services that will be bought and consumed in the future Cohort analysis is fundamental to understanding changing consumer markets A cohort is any group of individuals linked as a group in some way

22. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing U.S. Age Distribution The key to cohort analysis is examining the influences that are shared by most people in a specific group Ultimately, these influences affect consumer decision processes and the types of products, brands, and retailers consumers prefer when responding to a firm’s marketing strategy

23. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Children As Consumers Projected increase in number of young children between 2000 and 2010

24. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Children As Consumers Projected increase in number of young children between 2000 and 2010 The importance of children as consumers increases even more, with the higher proportion of first- order babies generating higher demand for quality products and services

25. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Children As Consumers Most parents do most of the buying Children often involved in family purchasing decisions Children often have their own ability to buy

26. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Generation Y Born in the 1980s and early 1990s with 72 million members Greater need for peer acceptance, which often guides product and brand choice More likely to switch brands quicker than other segments Teens like the social aspects of shopping with friends

27. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Appealing to Generation Y

28. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Generation X (Young Adults) Segment of 25-to-34 year olds is declining but will have a slight increase with the inclusion of older Gen Y consumers Need to buy products to set up households and for young children With many needs and greater financial restraints, they often shop at value-oriented retailers

29. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Baby Boomers or Muppies This group (45 to 64 years) is projected to grow by 19 million by 2010 Good market for luxury travel, spas, health clubs, cosmetics, salons, diet plans foods, and health foods Group represents the greatest share of the workforce, the greatest share of income, and the greatest share of voting power, and political influence

30. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Young Again Market Also referred to as mature market, seniors, and elderly These segments are expected to grow substantially Despite advanced chronologic age, many in this segment feel, think, and buy young

31. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Young Again Market Cognitive age: the age one perceives one’s self to be Cognitive age is measured in terms of how people feel and act, express interests, and perceive their looks Can be used with chronologic age to better target segments, create more effective content, and select the most efficient media channels

32. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Young Again Market Important segmentation variables for this group include health, activity level, discretionary time, engagement in society, and gender Communicating with this segment often requires alteration of traditional messages and materials - larger type and bright colors - newspapers and AM radio - sensitive to revealing their age

33. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Macromarketing to an Aging Population The aging populations of the United States, Japan, Canada, and Europe will have enormous effects on macromarketing and social policy Younger consumers may have considerably less financial resources at their disposal due to future contributions to Social Security and Medicare

34. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Macromarketing to an Aging Population One solution to this problem includes increasing the age at which benefits begin, thus changing the age at which people and organizations expect to retire Quasi-retirement is another option where more experienced workers fill in for younger workers during vacations, sabbaticals, training, or maternity leaves

35. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets

36. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets

37. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Geography of Demand Geodemography, refers to where people live, how they earn and spend their money, and other socioeconomic factors

38. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Geography of Demand Geodemography, refers to where people live, how they earn and spend their money, and other socioeconomic factors The study of demand related to geographic areas assumes that people who live in proximity to one another also share similar consumption patterns and preferences Cities are the most important unit of analysis in most marketing plans

39. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Geography of Demand Metropolitan statistical area (MSA): a free-standing metropolitan area surrounded by non-metropolitan counties and not closely related to other metropolitan areas Primary MSA (PMSA): metropolitan area closely related to another city Consolidated MSA (CMSA): a grouping of closely related PMSAs

40. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Geography of Demand The greatest gains in population are expected in California, Texas and Florida These states are considered prime candidates for new stores compared to other states where populations may be declining Growth rate may be deceptive unless the size of the population is also taken into account Geographic variables affect many components of a firm’s marketing strategy

41. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets

42. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources The ability to buy, typically measured by income and wealth

43. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources Income: money from wages and salaries as well as interest and welfare payments

44. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources What consumers think will happen in the future (consumer confidence) heavily influences consumption Influences whether consumers will increase their debt or defer spending to pay off debt Measures of consumer confidence are important in making decisions about inventory levels, staffing, or promotional budgets

45. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources Income: money from wages and salaries as well as interest and welfare payments Wealth: a measure of a family’s net worth or assets in things such as bank accounts, stocks, and a home, minus its liabilities such as home mortgage and credit card balances

46. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources Net worth influences willingness to spend but not necessarily ability to spend, because much wealth is not liquid and cannot be spent easily How much people accumulate over the years is more a function of how much they save rather than how much they earn

47. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Targeting the Up Market The superaffluent represent the top quintile of consumers in terms of income Households often consists of two income earners who place a high value on time They value extra services provided by some retailers Saving money is as important as spending it for many individuals in this group

48. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Targeting the Up Market Shop discount stores, use coupons, and wait for sales More print oriented in communications Simple ads that promote image Credibility of source selling product Product reviews influence this group

49. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Targeting the Down Market Throughout the world, the majority of consumers are low income Retailers such as Wal*Mart have found success by providing good products at reasonable prices Closeout stores offer brand name products at deep discounts to at all income-level consumers Dollar stores are one of the fastest growing retail categories

50. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Targeting the Down Market Provide good products at reasonable prices Maintaining attractive stores Offering stylish and up-to-date products Have friendly employees that treat customers with respect

51. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets

52. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Market Analysis The most attractive markets are countries that are growing both in population and in economic resources

53. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Market Analysis The most attractive markets are countries that are growing both in population and in economic resources Which countries will grow the most in the future?

54. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Market Analysis The most attractive markets are countries that are growing both in population and in economic resources Which countries will grow the most in the future? Which countries have the highest per capita income?

55. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Market Analysis Low income countries offer an advantage to firms looking to buy products from the lowest-cost source There are pockets of consumers who are able to buy products, even in the poorest countries

56. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Emerging Markets Marketing programs should focus on creating brand awareness (because competitors will follow) and stimulating product trial Marketers may have to teach consumers about products taken for granted (deodorant) Products may have to be adapted to local values

57. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in the Pacific Rim

58. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in the Pacific Rim South Asia India China Australia Japan

59. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in Latin America

60. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in Latin America Some of the most attractive markets include Brazil, Venezuela, Colombia, Argentina, and Chile Most countries have high population growth rates, moderately high incomes close proximity Intermarket segmentation provides a basis to identify segments that can afford certain items

61. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in Eastern Europe

62. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in Eastern Europe The attractiveness of Eastern European markets lies in their similar preferences to Western consumers Hungary and Poland have received much attention from global marketers Marketers have launched a myriad of successful brands

63. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in The EU

64. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in The EU The EU is a market larger than the United States Extremely low population growth makes customer retention extremely important for marketers Products and people move across borders easily Efficiencies include logistics, financial arrangements, and marketing economies of scale

65. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in The EU Efficiencies include logistics, financial arrangements, and marketing economies of scale Marketers can approach Europe as a single market, but national identity still exists among consumers

66. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics Personality Personal Values Lifestyles

67. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality consistent responses to environmental stimuli an individual’s unique psychological makeup, which consistently influences how the person responds to his or her environment Personality:

68. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality How does personality influence consumer behavior? Personality: Psychoanalytic Theory Sociopsychological Theory Trait-Factor Theory

69. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Human personality system consists of the id, ego, and superego The dynamic interaction of these results in unconscious motivations that are manifested in observed human behavior Personality is derived from conflict between the desire to satisfy physical needs and the needs to be a contributing member of society Psychoanalytic theory

70. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Personality is a result of more than just subconscious drives Some advertising is influenced by psychoanalytic approach Psychoanalytic theory

71. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Recognizes interdependence of the individual and society—individual strives to meet needs of society and society helps individual attain personal goals Social variables (rather than biological instinct) are most important in shaping personality Behavioral motivation is directed to meet those needs Sociopsychological Theory

72. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Person may buy a product that symbolizes an unattainable or unacceptable goal—the acquisition fulfills some subconscious “forbidden desire” Sociopsychological Theory

73. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Quantitative approach to personality Personality made up of traits: any distinguishable, relatively enduring way in which one individual differs from another Understanding consumer traits can be useful in marketing planning Trait-Factor Theory

74. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Assumes that traits are common to many individuals and vary in absolute amounts among individuals Traits are relatively stable and exert fairly universal effects on behavior regardless of the environmental situation Traits can be inferred from the measurement of behavioral indicators Trait-Factor Theory

75. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Trait theory is most useful to marketing strategists in developing brand personality—the personality consumers interpret from a specific brand Brands may be characterized as old- fashioned, modern, fun, provocative, masculine, or glamorous Trait-Factor Theory

76. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Predicting Buyer Behavior Research typically attempts to find relationships between personality variables and consumer behaviors

77. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Predicting Buyer Behavior Research typically attempts to find relationships between personality variables and consumer behaviors Research tried to predict brand and store preference based on personality but with poor results

78. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Predicting Buyer Behavior Research typically attempts to find relationships between personality variables and consumer behaviors Research tried to predict brand and store preference based on personality but with poor results Personality is just one variable in the consumer decision making process

79. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics Personality Personal Values Lifestyles

80. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personal Values Represent consumer beliefs about life and acceptable behavior Unlike attitudes, values transcend situations or events and are more enduring because they are more central in the personality structure Values:

81. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personal Values Represent three universal requirements: biological needs, requisites of coordinated social interaction, and demands for group survival and functioning Values express the goals that motivate people and the appropriate ways to attain those goals Values:

82. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personal Values Social values define “normal” behavior for a society or group Personal values define “normal” behavior for an individual Personal values reflect the choices an individual makes from the variety of social values or social systems to which they are exposed Individuals pick and choose which social values to emphasize

83. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Rokeach Value Scale (RVS) Values are concerned with goals and ways of behaving to obtain them Values are enduring beliefs that specific modes of conduct or end states of existence are personally or socially preferable to opposing modes of conduct or end states or existence

84. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Rokeach Value Scale (RVS) RVS asks people to rank the importance of a series of goals and ways of behaving which can be analyzed by whatever variable might be of interest in consumer analysis Consumer analysts are using values as a criterion for segmenting the population into homogeneous groups

85. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Rokeach Value Scale (RVS)

86. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Schwartz Value Scale (SVS) Designed to measure a compre- hensive set of values thought to be held by nearly everyone Values are trans-situational goals that serve the interest of individuals or groups and express one of ten universal motivations or value types The ten values and four higher- order value domains represent a continuum of related motivations

87. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Structural Relation of Motivational Value Types

88. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Exemplary Values Value Type

89. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Exemplary Values Value Type Power Authority, wealth Achievement Successful, capable Hedonism Pleasure, enjoying life Stimulation Daring, exciting life Self-direction Creativity, curious Universalism Social justice, equality Benevolence Helpful, honest Tradition Humble, devout Conformity Politeness, obedient Security Social order, clean

90. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Consumer Decision Process Personal values help explain how we answer the question, “Is this product for me?” While important in the need recognition stage, values also affect consumers in determining evaluative criteria Values influence the effectiveness of communications programs and are enduring motivations

91. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Consumer Decision Process Laddering: in-depth probing directed toward uncovering higher-level meanings at both the benefit (attribute) level and the value level It seeks linkages between product attributes, personal outcomes, and values that serve to structure components of the cognitive network in a consumer’s mind

92. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Identifying which product attribute appeals to which value-based segment can guide alternative advertising and marketing strategies Values and Consumer Decision Process

93. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics Personality Personal Values Lifestyles

94. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Lifestyle Concepts Lifestyle: patterns in which people live and spend time and money Reflects a person’s activities, interests, and opinions as well as demographic variables

95. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Lifestyle Concepts Lifestyle: patterns in which people live and spend time and money Reflects a person’s activities, interests, and opinions (AIO) as well as demographic variables Since lifestyles change readily, marketers must keep research methods and marketing strategies current

96. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Lifestyle Concepts Psychographics: an operational technique to measure lifestyles; it provides quantitative measures and can be used with the large samples needed for definition of market segments Can also be used in qualitative research techniques such as focus groups or in-depth interviews

97. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Lifestyle Concepts Demographics profile who buys products whereas psychographics focus on why they buy AIO measures: activities, interests, and opinions of consumers

98. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. AIO Categories of Lifestyle Studies

99. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Market Segmentation Develop a deeper understanding of a segment or define segments Use Likert scale to answer various AIO statements Gain understanding of core customers lifestyles better and develop packaging and communication strategies that position products to their various lifestyle attributes

100. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Lifestyle System VALS™ suggests that consumer buy products and services and seek experiences that fulfill their characteristic preference and give shape, substance, and satisfaction to their lives An individual’s primary motivation determines what in particular about the self or the world governs his or her activities Primary motivations include ideals, achievement and self-expression

101. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values And Lifestyle System Consumers who are primarily motivated by ideals are guided by knowledge and principles Consumers primarily motivated by achievement look for products or services to demonstrate their success to their peers Consumers primarily motivated by self- expression desire social or physical activity, variety, and risk

102. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. VALS TM Lifestyle Segments

103. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. VALS TM Types Innovators: successful, sophisticated, take- charge consumers with many resources and high self-esteem. Image is important Thinkers: satisfied, mature, comfortable, practical people who look for durability, value, and functionality in products Achievers: motivated by the desire for achievement, career-oriented, and prefer prestige brands that signal success. Social lives revolve around family, place of worship, and work

104. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Experiencers: young, enthusiastic, impulsive, and like risk taking, variety, and excitement. Like new and off-beat products and activities Like Thinkers: conservative, conventional, and motivated by ideals, with beliefs based on codes of church, community, family, and nation. Buy proven brands from home country and are generally loyal consumers Strivers: concerned about approval and opinions of others and seek self-definition, security, and image of success. Emulate those they want to be like, but lack resources VALS TM Types

105. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Like Experiencers: express themselves and experience the world by working on it. Practical people who are self-sufficient, live within a traditional context, and prefer value to luxury Survivors: live narrowly focused lives with few resources and represent a modest market for most products. They are cautious consumers and seek safety and security VALS TM Types

106. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Lifestyles Increased globalization requires that marketing strategy be increasingly planned on a global basis VALS TM and other approaches are being used to identify lifestyle segments across country borders and segment international markets

107. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

108. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

109. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation CHAPTER 8

110. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption

111. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption Gives insights into why people buy certain products

112. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption Gives insights into why people buy certain products Stems from consumer needs: industries have been built around basic human needs

113. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs

114. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Physiological Needs Fundamental human needs, including food, water, and sleep

115. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Safety and Health Needs Threats to our safety and health motivate purchases for personal security and protection

116. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Safety and Health Needs Protecting our personal information and computers represents new types of safety needs Businesses provide a variety of products and services to appeal to safety and health conscious consumers

117. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Safety and Health Needs

118. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Love and Companionship Humans are social creatures who need to experience and express love and companionship

119. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Love and Companionship Services and products help individuals find and attract others Products are often used as symbols of love and caring

120. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Love and Companionship

121. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Financial Resources and Security A need that includes others important to the individual

122. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Social Image Needs Conspicuous consumption: purchases motivated to some extent by the desire to show other people how successful they are Companies reinforce the notion that products enable users to communicate their social image

123. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Image Needs

124. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Pleasure Products, services, and consumption activities provide fun and excitement

125. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers’ Need for Pleasure © SETH WENIG/Reuters/Landow

126. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors

127. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers’ Need to Possess

128. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors Plays a role in impulse buying: where consumers unexpectedly experience a sudden and powerful urge to buy something immediately

129. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need to Give Give something back to others or reward ourselves Self-gifts let us motivate, reward, and console ourselves

130. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Information One reason we read or watch TV Fuels Internet usage Plays an important role in persuasion—if an ad appears when consumers need information, they are more likely to pay attention than when they don’t need the information

131. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Variety Marketers may introduce different versions of original brand Variety may become focus of product positioning

132. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities

133. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities Satisfying a need often comes at the expense of another need—these trade-offs cause motivational conflict

134. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Motivational Conflict Approach-approach: deciding between two or more desirable options Avoidance-avoidance: deciding between two or more undesirable options Approach-avoidance: behavior has both positive and negative consequences

135. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities Resolving motivational conflicts requires prioritizing needs Maslow’s hierarchy Some needs take precedence over other needs—physiological needs take top priority Differences in the importance attached to various needs affects how consumers evaluate products

136. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities Because of consumers’ different motivational priorities, companies use benefit segmentation: dividing consumers into different market segments based on benefits they seek from purchase and consumption

137. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Maslow’s Hierarchy of Needs

138. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Intensity Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance

139. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Intensity Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance Involvement: degree to which an object or behavior is personally relevant Motivational intensity and involve- ment determine amount of effort consumers exert in satisfying needs

140. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Challenge of Understanding Consumer Motivation

141. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Challenge of Understanding Consumer Motivation Reasons underlying consumer motivation are not always “obvious” Research is necessary to discover real motivations behind behaviors People don’t always want to disclose real reasons for their actions People don’t always know why they do what they do—unconscious motivation Motivations change over time

142. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Unconscious Motivation

143. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers

144. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Motivating with Money

145. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Motivating with Money Price cuts, specials, rebates, and coupons motivate purchase Resulting sales may increase, but profits may not Attracts consumers less likely to repeat Price reductions may increase price sensitivity

146. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating with Money

147. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Provide Other Incentives

148. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Provide Other Incentives Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase

149. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating with Other Incentives

150. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Provide Other Incentives Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase There are limitations and shortcomings for this strategy in addition to the products offered as a premium being valued less (value-discounting hypothesis)

151. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Implement a Loyalty Program Motivate repeat buying by providing rewards to customers based on how much business they do with the company Tracks consumer purchases and provides estimates of Customer Lifetime Value

152. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Participation in Loyalty Programs

153. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Enhance Perceived Risk

154. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Enhance Perceived Risk Perceived risk: consumers’ apprehensions about the consequences of their behavior (buying and consuming the product) Greater perceived risk increases search Educating consumers about risks may motivate them to make more informed choices that reduce exposure to risk

155. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Informing Consumers of Their Risks

156. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Arouse Consumers’ Curiosity

157. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Arouse Consumers’ Curiosity For new products, educating potential customers is crucial Curiosity often leads to an enhanced need for information May advertise a benefit that is not normally associated with the product

158. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Arousing Curiosity

159. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

160. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

161. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Beliefs, Feelings, Attitudes, and Intentions CHAPTER 10

162. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Attitudes Global evaluative judgments

163. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Intentions Subjective judgments by people about how they will behave in the future

164. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Beliefs Subjective judgments about the relationship between two or more things

165. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Feelings An affective state (e.g., current mood state) or reaction (e.g., emotions experienced during product consumption)

166. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Relationships between Consumer Beliefs, Feelings, Attitudes, and Intentions

167. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Beliefs

168. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Beliefs A Sampling of Consumer Beliefs If a deal seems to good to be true, it probably is. You can’t believe what most advertising says these days. Auto repair shops take advantage of women. People need less money to live on once they retire. It’s not safe to use credit cards on the Internet. Appliances today are not as durable as they were 20 years ago. Extended warranties are worth the money. You get what you pay for: lower price means lower quality. Changing the oil in your car every three thousand miles is a waste of money.

169. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Beliefs Expectations Brand Distinctiveness Inferential Beliefs Consumer Confusion

170. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Expectations Consumers’ willingness to spend is influenced by beliefs about their financial future Expectations are beliefs about the future

171. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why should consumer want to buy your brand instead of the competitor’s? The desirability of products having something unique to offer to their consumers is also known as the Unique Selling Proposition Brand Distinctiveness

172. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Communicating the Product’s Unique Selling Proposition

173. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Inferential Beliefs Consumers use information about one thing to form beliefs about something else Beliefs are often inferred when product information is incomplete Also undertaken when consumers interpret certain product attributes as signals of product quality—e.g., price-quality inferential beliefs

174. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Visual Advertising Elements and Inferential Beliefs

175. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Confusion Sometimes consumers do not know what to believe due to many different reasons May arise due to conflicting information and knowledge Mistaking one company’s product for the product of another company Due to changes in a product’s position and image

176. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Confusion Consumers respond to confusion by: Undertaking further information search Basing their decision on things that are perfectly clear—e.g., price Deferring product purchase indefinitely

177. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings

178. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Feelings NegativeWarmUpbeat

179. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Feelings NegativeWarmUpbeat Angry Annoyed Bad Bored Critical Defiant Disgusted Fed-up Insulted Irritated Regretful Affectionate Calm Concerned Contemplative Emotional Hopeful Kind Peaceful Pensive Touched Warm-hearted Active Adventurous Alive Attractive Confident Creative Elated Energetic Good Happy Pleased

180. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings Feelings as part of the advertising experience Feelings as part of the shopping experience Feelings as part of the consumption experience

181. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings Feelings activated by the advertisement have the potential to influence attitudes formed about the featured product The program in which advertising appears can induce feelings and affect post-message attitudes Feelings as part of the advertising experience

182. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Advertising that Evokes Positive Feelings

183. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings The retail environment elicits different feelings in consumers ultimately affecting their attitudes and behaviors in the store The shopping environment can evoke pleasure, arousal, or dominance in consumers Feelings as part of the shopping experience

184. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings Some consumption experiences are liked primarily for the feelings they induce Feelings during consumption will influence post-consumption evaluations Consumers are more satisfied when product consumption leads to positive feelings while avoiding negative ones Feelings as part of the consumption experience

185. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Emphasizing the Product’s Mood Altering Properties

186. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Emphasizing How Negative Feelings May Be Avoided

187. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How often, if at all, do you experience the following feelings as a result of eating chocolate? Happy never _:_:_:_:_:_:_:_:_ very often Excited never _:_:_:_:_:_:_:_:_ very often Delighted never _:_:_:_:_:_:_:_:_ very often Joyous never _:_:_:_:_:_:_:_:_ very often Satisfied never _:_:_:_:_:_:_:_:_ very often Proud never _:_:_:_:_:_:_:_:_ very often Annoyed never _:_:_:_:_:_:_:_:_ very often Depressed never _:_:_:_:_:_:_:_:_ very often Guilty never _:_:_:_:_:_:_:_:_ very often Regretful never _:_:_:_:_:_:_:_:_ very often Measuring Feelings

188. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Attitudes

189. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Valence: Whether the attitude is positive, negative or neutral Extremity: The intensity of liking or disliking Resistance: Degree to which the attitude is immune to change Confidence: Belief that attitude is correct Accessibility: How easily the attitude can be retrieved from memory Properties of Attitudes Consumer Attitudes

190. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Attitude towards the object (A o ) represents the evaluation of the attitude object Attitude towards the advertisement (A ad ) represents the global evaluation of an advertisement Types of Attitudes

191. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Attitude towards the behavior (A b ) represents the evaluation of performing a particular behavior involving the attitude object Preferences represent attitudes toward one object in relation to another Types of Attitudes

192. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Attitude toward the object: How much do you like/dislike Dell computers? Like very much 1 2 3 4 5 Dislike very much Attitude toward the behavior: Buying a Dell personal computer would be: Very good 1 2 3 4 5 Very bad Very rewarding 1 2 3 4 5 Very punishing Very wise 1 2 3 4 5 Very foolish Preference: Compared to Apple personal computers, how much do you like Dell personal computers? Like IBM much 1 2 3 4 5 Like Apple much more than Apple more than IBM

193. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Using Multiattribute Models to Understand Consumer Attitudes

194. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Multiattribute Attitude Model n A o = Σ b i e i i =1 A o = attitude toward the object b i = strength of the belief that object has attribute i e i = evaluation of attribute i n = number of salient or important attributes

195. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Model Model proposes that attitude toward an object is based on the summed set of beliefs about the object’s attributes weighted by the evaluation of these attributes Attributes can be any product or brand association The Fishbein Multiattribute Attitude Model

196. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Running shoe example Whether the shoe is shock absorbent for use on hard surfaces Whether it is priced less than $50 Durability of the shoe How comfortable the shoe is to wear Whether the shoe is available in the desired color Amount of arch support The Fishbein Multiattribute Attitude Model

197. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Developing the e i and b i measures The Fishbein Multiattribute Attitude Model

198. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Developing the e i and b i measures e i Buying running shoes priced less than $50 is very good _ : _ : _ : _ : _ : _ : _ very bad +3 +2 +1 0 -1 -2 -3 The Fishbein Multiattribute Attitude Model

199. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Developing the e i and b i measures e i Buying running shoes priced less than $50 is very good _ : _ : _ : _ : _ : _ : _ very bad +3 +2 +1 0 -1 -2 -3 b i How likely is it that brand A running shoes are priced less than $50? very likely _ : _ : _ : _ : _ : _ : _ very unlikely +3 +2 +1 0 -1 -2 -3 The Fishbein Multiattribute Attitude Model

200. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Model: Sample Results Shock absorbent +2+2+1 -1 Price less than $50 -1-3-1 +3 Durability +3+3+1 -1 Comfort +3+2+3 +1 Desired color +1+1+3 +3 Arch support +2+3+1 -2 Total Σ b i e i score +29+20 -6 Brand Brand Brand AttributeEvaluation A B C Beliefs

201. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Attitudes Companies want consumers to perceive their products as: Possessing desirable attributes (when e i positive, b i should be positive) Not possessing undesirable attributes (when e i is negative, b i should be negative)

202. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Communicating the Presence of Desirable Attributes

203. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Communicating the Absence of Undesirable Attributes

204. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. A P = Σ W i I i - X i n i =1 A P = attitude toward product W i = importance of attribute i I i = ideal performance on attribute i X i = belief about product’s actual performance on attribute i n = number of salient attributes The Ideal-Point Multiattribute Attitude Model

205. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers indicate where they believe a product is located on scales representing the various levels of salient attributes Also report where ideal product would fall on these scales The closer the ideal and actual ratings, the more favorable the attitude The Ideal-Point Multiattribute Attitude Model

206. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Soft drink example Sweetness of taste Degree of carbonation Number of calories Amount of real fruit juices Price The Ideal-Point Multiattribute Attitude Model

207. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Developing a scale to represent various levels of each attribute very sweet taste _ : _ : _ : _ : _ : _ : _ very bitter taste 1 2 3 4 5 6 7 The Ideal-Point Multiattribute Attitude Model

208. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Developing a scale to represent various levels of each attribute very sweet taste _ : _ : _ : _ : _ : _ : _ very bitter taste 1 2 3 4 5 6 7 Provide ratings of attribute importance not at all important _ : _ : _ : _ : _ : _ : _ extremely important 0 1 2 3 4 5 6 The Ideal-Point Multiattribute Attitude Model

209. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Ideal-Point Model: Sample Results Taste: sweet(1) - bitter (7) Carbonation: high(1) - low (7) Calories: high (1) - low (7) Fruit juices: high (1) - low (7) Price: high (1) - low (7) Total Σ W i I i -X i score 6 223 3326 4545 4122 5543 1629 Import- Ideal Brand Brand Attribute ance Point A B Beliefs

210. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Using Multiattribute Attitude Models Diagnostic power: examine why consumers like or dislike products Simultaneous importance- performance grid with marketing implications for each cell

211. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Stimulus Importance-Performance Grid HIGH LOW POOR GOOD POOR GOOD Neglected Opportunity Competitive Disadvantage Competitive Advantage Head-to-head competition Null Opportunity False Alarm False Advantage False Competition Poor Good Poor Good Poor Good Poor Good Attribute Our Competitor’s Simultaneous Importance Performance PerformanceResult

212. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Using Multiattribute Attitude Models Can provide information for segmentation (based on importance of product attributes) Useful in new product development Guidance in identifying attitude change strategies

213. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Attitude Change Implications from Multiattribute Attitude Models Three primary ways for changing consumer attitudes: Change beliefs Change attribute importance Change ideal points

214. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Consumer Attitudes: Changing Beliefs Firms hope that changing beliefs about products will result in more favorable product attitudes and influence what consumers buy If beliefs are false, they need to be brought into harmony with reality If beliefs are accurate, it may be necessary to change the product Comparative advertising can hurt beliefs about a competitive brand

215. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Consumer Attitudes: Changing Attribute Importance Changing an attribute’s importance is more difficult than changing a belief How is a brand perceived relative to ideal performance? Increasing attribute importance is desirable when the competitor’s brand is farther from the ideal point than your product Firms may add a new attribute

216. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Consumer Attitudes: Changing Ideal Points Altering consumers’ preferences for what the ideal product should look like

217. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. This Ad Attempts to Change Consumers’ Ideal Point

218. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Estimating the Attitudinal Impact of Alternative Changes How expensive are the product modifications required to change attitude? Are they possible to accomplish? How resistant to change are consumers? What is the potential attitudinal payoff each change might deliver?

219. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Intentions

220. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Intentions How much existing product should be produced to meet demand? How much demand will there be for a new product? Useful for firms when predicting how people will act as consumers

221. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Intentions How much existing product should be produced to meet demand? How much demand will there be for a new product? Useful for firms when predicting how people will act as consumers Firms interested in many types of consumer intentions

222. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Spending intentions Purchase intentions Repurchase intentions Shopping intentions Search intentions Consumption intentions

223. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Spending intentions reflect how much money consumers think they will spend No chance 1 2 3 4 5 6 7 I definitely will Will you spend at least $1,000 on Christmas gifts this year?

224. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Purchase intentions represent what consumers think they will buy No chance 1 2 3 4 5 6 7 I definitely will Will you buy a Mercedes-Benz automobile during the next 12 months?

225. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Repurchase intentions indicate whether consumers anticipate buying the same product or brand again No chance 1 2 3 4 5 6 7 I definitely will The next time you purchase coffee, will you buy the same brand?

226. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Shopping intentions capture where consumers plan on making their product purchases No chance 1 2 3 4 5 6 7 I definitely will Will you shop at Wal*Mart during the next 30 days?

227. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Search intentions indicate consumers’ intentions to engage in external search No chance 1 2 3 4 5 6 7 I definitely will The next time you need to be hospitalized, will you speak to your doctor before choosing a hospital?

228. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Consumption intentions represent consumers’ intentions to engage in a particular consumption activity No chance 1 2 3 4 5 6 7 I definitely will Will you watch the next Super Bowl?

229. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Firms Can Predict Behavior

230. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Firms Can Predict Behavior Rely on past behavior to predict future behavior

231. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Firms Can Predict Behavior Rely on past behavior to predict future behavior Problems: Situations change (changes in market can cause unpredictable changes in demand) Sales trends are sometimes erratic Past behaviors not available for new products or first-time behaviors

232. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Firms Can Predict Behavior Rely on consumers’ reported intentions People often do what they intend

233. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions

234. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Intentions can change Intend to do something and don’t Intend not to do something and do Can’t control whether consumers act upon their intentions Can influence predictive accuracy

235. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Intentions’ predictive accuracy strongly depends on how they are measured The more closely intention measures correspond to the to-be- predicted behavior, the greater the predictive accuracy

236. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Measuring intentions may be less predictive of future behavior than measuring what they expect to do

237. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Measuring intentions may be less predictive of future behavior than measuring what they expect to do Behavioral expectations: represent perceived likelihood of performing a behavior (Although smokers may intend to quit smoking, they may report more moderate expectations due to past failures)

238. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Accuracy of forecasts also depends on when intentions are measured How far into the future is being predicted? Accuracy depends on the to-be- predicted behavior (behaviors repeated with regularity are easier to predict)

239. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Volitional control: the degree to which a behavior can be performed at will

240. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Volitional control: the degree to which a behavior can be performed at will Existence of uncontrollable factors interfere with the ability to do as intended Perceived behavioral control: the person’s belief about how easy it is to perform the behavior

241. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Intentions: Other Uses Indicator of the possible effects of certain marketing activities Intentions may provide an informative indication of a company’s likely success in retaining customers