1. Chapter foundations of Chapter M A R K E T I N G Consumer Behaviour 8

2. Chapter Objectives 1.Describe how consumer behaviour is affected by two main categories of influence: environmental & individual factors. 2.Explain the role of culture in consumer behaviour. 3.Consider the effects of reference groups on consumer behaviour. 4.Distinguish between needs and motives. 5.Explain perception. 6.Define attitude and its three main components, and explain how attitude influences behaviour. 7.Demonstrate how learning theory can be applied to marketing strategy. 8.Show the steps of the consumer decision process and how environmental and individual factors affect this process. 9.Differentiate among routinized response behaviour, limited problem solving, and extended problem solving. Consumer Behaviour 8 8-1

3. Chapter Consumer Behaviour The activities of individuals in obtaining, using, and disposing of goods and services, including the decision processes that precede and follow these actions. Consumer Behaviour 8 8-2

4. Chapter Determinants of Consumer Behaviour Consumer Behaviour Individual factors and psychological processes Environmental factors Consumer behaviour 8 8-3 Figure 8.1

5. Chapter Environmental Factors That Affect Consumer Behaviour Cultural Influences Social Influences Group influences Reference groups Social class Family influences CUSTOMER DECISIONS Consumer Behaviour 8 Figure 8.2 8-4

6. Chapter Culture The complex of values, ideas, attitudes, institutions, and other meaningful symbols created by people that shape human behaviour, and the artifacts of that behaviour, transmitted from one generation to the next. Consumer Behaviour 8 8-5

7. Chapter Summary of Significant Canadian Characteristics Consumer Behaviour 8 Table 8.1 8-6 As a Function of Being a Part of the North American Reality Modern orientation Openness to new ideas Egalitarianism A rich, developing society with many needs and high materialistic expectations Growing, more diffuse middle class In Relation to the United States Conservative tendencies Traditional bias Greater confidence in bureaucratic institutions Collectivity orientation--reliance on institutions such as state, big business, and the church vs. personal risk taking Less achievement-oriented Lower optimism--less willing to take risks Greater acceptance of hierarchical order and stratification Tolerance for diversity--acceptance of cultural mosaic Family stability Selective emulation of the United States--resistance to some American characteristics and dominance, yet willingness to emulate Elitist and ascriptive tendencies

8. Chapter Microculture A subgroup with its own distinguishing modes of behaviour. Consumer Behaviour 8 8-7

9. Chapter Status Relative position in a group. Consumer Behaviour 8 8-8

10. Chapter Role The rights and duties expected of an individual in a group by other members of the group. Consumer Behaviour 8 8-9

11. Chapter Asch Phenomenon The impact that groups and group norms can exhibit on individual behaviour. Consumer Behaviour 8 8-10

12. Chapter Reference Group A group whose value structures and standards influence a person’s behaviour. Consumer Behaviour 8 8-11

13. Chapter Membership Group A type of reference group to which individuals actually belong. Consumer Behaviour 8 8-12

14. Chapter Aspirational Group A type of reference group with which individuals wish to associate. Consumer Behaviour 8 8-13

15. Chapter Disassociative Group A type of reference group with which an individual does not want to be identified. Consumer Behaviour 8 8-14

16. Chapter Group Influence as a Function of Product Type and Consumption Situation Consumer Behaviour 8 Figure 8.3 Product or Brand Weak reference group influence (-) Strong reference group influence (+) Strong reference group influence (+) Weak reference group influence (-) Public necessities Influence: Weak product and strong brand Examples: Wristwatch, automobile, man’s suit Public luxuries Influence: Strong product and brand Examples: Golf clubs, snow, skis, sailboat Private necessities Influence: Weak product and brand Examples: Mattress, floor lamp, refrigerator Private luxuries Influence: Strong product and weak brand Examples: TV game, trash compactor, icemaker Source: William O. Bearden and Michaeli Etzei, “Reference Group Influence on Product and Brand Purchase Decisions,” Journal of Consumer Research 9 (September 1982), p. 185, published by the University of Chicago Press. Reprinted with permission. 8-15 NECESSITYLUXURY

17. Chapter Social Class The relatively permanent divisions in a society into which individuals or families are categorized based on prestige and community status. Consumer Behaviour 8 8-16

18. Chapter PSTYE A geodemographic classification system that identifies lifestyle cluster profiles across Canada. Consumer Behaviour 8 8-17

19. Chapter Consumer Behaviour 8 Table 8.2 8-18a PSYTE Cluster Profile, Estimated 1999 Canadian Households (1 of 2)

20. Chapter Consumer Behaviour 8 Table 8.2 8-18b PSYTE Cluster Profile, Estimated 1999 Canadian Households (2 of 2)

21. Chapter Opinion Leaders Trendsetters – individuals who are more likely to purchase new products early and to serve as information source for others in a group. Consumer Behaviour 8 8-19

22. Chapter Consumer Behaviour 8 Figure 8.4 Relative Influence of Husbands and Wives in Decision Making 8-20

23. Chapter Environmental and Individual Factors that Influence Behaviour Consumer Behaviour Customer Decisions 8 Figure 8.5 Environmental Cultural influences Social influences -group influences -reference groups -social class -family influences Psychological Processes Information processing Learning Attitude formation Perceptual screening Individual resources needs motives perceptions attitudes lifestage 8-21

24. Chapter Need The perceived difference between the current state and a desired state. Consumer Behaviour 8 8-22

25. Chapter Motive An inner state that directs us toward the goal of satisfying a felt need. Consumer Behaviour 8 8-23

26. Chapter Perception The meaning that each person attributes to incoming stimuli received through the five senses. Consumer Behaviour 8 8-24

27. Chapter Perceptual Screen The filter through which messages must pass. Consumer Behaviour 8 8-25

28. Chapter Subliminal Perception A subconscious level of awareness. Consumer Behaviour 8 8-26

29. Chapter Weber’s Law The higher the initial intensity of a stimulus, the greater the amount of the change in intensity that is necessary in order for a difference to be noticed. Consumer Behaviour 8 8-27

30. Chapter Attitudes A person’s enduring favourable or unfavourable evaluations of some object or idea. Consumer Behaviour 8 8-28

31. Chapter Three Components of Attitude Consumer Behaviour Overall Attitude (overall orientation toward object or idea) 8 Figure 8.7 Cognitive component (knowledge and beliefs) Affective component (overall feelings) Conative component (behavioural tendencies) 8-29

32. Chapter Cognitive Component The knowledge and beliefs one has about an object or concept. Consumer Behaviour 8 8-30

33. Chapter Affective Component One’s feelings or emotional reactions. Consumer Behaviour 8 8-31

34. Chapter Conative Component The way one tends to act or behave. Consumer Behaviour 8 8-32

35. Chapter Learning Changes in knowledge, attitudes, and behaviour, as a result of experience. Consumer Behaviour 8 8-33

36. Chapter Drive Any strong stimulus that impels action. Consumer Behaviour 8 8-34

37. Chapter Cue Any object existing in the environment that determines the nature of the response to a drive. Consumer Behaviour 8 8-35

38. Chapter Response The individual’s reaction the cues and drives. Consumer Behaviour 8 8-36

39. Chapter Reinforcement The reduction in drive that results from a proper response. Consumer Behaviour 8 8-37

40. Chapter Shaping The process of applying a series of rewards and reinforcement so that more complex behaviour can evolve over time. Consumer Behaviour 8 8-38

41. Chapter Shaping The process of applying a series of rewards and reinforcement so that more complex behaviour can evolve over time. Consumer Behaviour 8 8-39

42. Chapter Application of Learning Theory and Shaping Procedure to Marketing Consumer Behaviour 8 Figure 8.8 Induce product trial Terminal Goal: Repeat Purchase Behaviour Free samples distributed, large discount coupons enclosed Product performance and coupon Approximation SequenceShaping Procedure Reinforcement Applied Induce purchase with financial obligation Discount coupon prompts purchase with little cost; coupon good for small discount on next purchase enclosed Product performance and coupon Induce purchase with moderate financial obligation Small discount coupon prompts purchase with moderate cost Product performance Induce purchase with full financial obligation Purchase occurs without coupon association Product performance 8-40

43. Chapter Consumer Decision Process Input Information Processing Decision Process Consumer Behaviour 8 Figure 8.9 Information search Problem recognition -from marketing activities -other stimuli Alternative evaluation Purchase decision and purchase act Postpurchase evaluation Environment Factors Cultural influences Social influences -group influences -needs -reference groups -social class -family influences Individual Factors -motives -perceptions -attitudes -learning 8-41

44. Chapter Evoked Set The number of brands that a consumer actually considers in making a purchase decision. Consumer Behaviour 8 8-42

45. Chapter Evaluative Criteria Features the consumer considers in making a choice among alternatives. Consumer Behaviour 8 8-43

46. Chapter Cognitive Dissonance The postpurchase anxiety that occurs when there is a discrepancy between a person’s knowledge and beliefs (cognitions). Consumer Behaviour 8 8-44

47. Chapter Consumer Problem-Solving Categories Routinized response Limited problem solving (LPS) Extended problem solving (EPS) Consumer Behaviour 8 8-45

48. Chapter Low-Involvement Products Products with little significance, either materially or emotionally, that a consumer may purchase first and evaluate later (while using them). Consumer Behaviour 8 8-46

49. Chapter High-Involvement Products Products for which the purchaser is highly involved in making the purchase decision. Consumer Behaviour 8 8-47

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