Consumer Behavior Buying, Having, and BeingTwelfth EditionC.docx

Consumer Behavior: Buying, Having, and Being
Twelfth Edition
Chapter 1
Buying, Having, and Being: An Introduction to Consumer
Behavior
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
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This chapter defines the scope of international business and
introduces us to some of its most important topics.
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Learning Objectives (1 of 2)
1.1 Consumer behavior is a process.
1.2 Marketers have to understand the wants and needs of
different consumer segments.
1.3 Our choices as consumers relate in powerful ways to the rest
of our lives.
1.4 Our motivations to consume are complex and varied.
1.5 Technology and culture create a new “always on” consumer.
1.6 Many different types of specialists study consumer
behavior.

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Learning Objective 1.1
Consumer behavior is a process.
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In the early stages of development, researchers referred to the
field as buyer behavior. Marketers now recognize that consumer
behavior is an ongoing process, not merely what happens at one
point in the transaction cycle. We call the transaction of value
between two or more an exchange. It’s an integral part of
marketing but consumer behavior recognizes that the entire
consumption process is relevant for marketers. Figure 1.1
illustrates these issues.
Consumer behavior is the study of the processes involved when
individuals or groups select, purchase, use, or dispose of
products, services, ideas, or experiences to satisfy needs and
desires. A consumer may purchase, use, and dispose of a
product, but different people may perform these functions. In
addition, we can think of consumers as role players who need
different products to help them play their various parts.
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What Is Consumer Behavior?
The study of the processes involved when individuals or groups

select, purchase, use, or dispose of products, services, ideas, or
experiences to satisfy needs and desires.
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1-5
Figure 1.1
Stages in the Consumption Process
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1-6
Marketers have to understand the wants and needs of different
consumer segments.
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Markets & STP
Definitions
Market – people with means, authority, and desire to satisfy

their needs and wants (MAD people)
Market segment – smaller markets with similarities on some
dimension(s)
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Market Opportunity Analysis
Identify segmentation bases (S)
Determine market segments (S)
Determine needs/wants of market segments (S/T)
Develop measures of segment attractiveness (T)
Select target segments (T)
Develop product position for each target (P)
Develop marketing mix for each target (P)
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Market Segmentation
Definition
Process of identifying smaller markets that exist within a larger
market
Why segment?
Ease to identify and satisfy needs and wants for segments (than
all customers)
More efficient to “reach” a narrow segment than all consumers
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Segmenting Consumers: Demographics

Demographics:
Age
Gender
Family structure
Social class/income
Race/ethnicity
Geography
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What is the segmentation criteria here?
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Psychographic segmentation – targeting those who are “active”
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Targeting
Definition – directing marketing efforts to meeting the needs of
one or more market segments (i.e., target markets)
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Market coverage options

Undifferentiated marketing – treat all segments the same
Differentiated marketing – different mixes offered to different
segments
Market concentration – focus on one segment
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Pre exercise for next session
Using VALS provides marketers with:
A fresh perspective by effectively "putting them inside the
head" of their customers
Rich, customized, consumer profiles or personas
Distinctive communication styles of their best targets.
http://strategicbusinessinsights.com/vals/presurvey.shtml
1-14
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Good marketing is inspired by good insights. Good insights
about customers come from more than just product or service
category or brand behavior—and from more than just
demographics.
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Big Data
1-15
The collection and analysis of extremely large datasets is called
Big Data.
Database Marketing

Relationship Marketing
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Our choices as consumers relate in powerful ways to the rest of
our lives.
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Marketing influences popular culture and popular culture
influences marketing.
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1-17
Popular Culture
Music
Movies
Sports
Books
Celebrities
Entertainment
Marketers influence preferences for movie and music heroes,
fashions, food, and decorating choices.
Popular culture—the music, movies, sports, books, celebrities,
and other forms of entertainment that the mass market produces
and consumes—is both a product of and an inspiration for
marketers.

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Consumer-Brand Relationships
Self-concept attachment
Nostalgic attachment
Interdependence
Love
1-18
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We find that consumers may develop relationships with brands
over time. The slide lists some of the types of relationships we
may see between consumers and their brands.
Self-concept attachment means that the product helps to
establish the user’s identity. This was one of our early points in
this chapter.
Nostalgic attachment means the product serves as a link to the
consumer’s past.
Interdependence means that the product is a part of the user’s
daily routine.
Love means that the product elicits emotional bonds of warmth,
passion, or other strong emotion.
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1-19

Our motivations to consume are complex and varied.
Many products help to define our identities. Are you what you
drive?
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People often buy products not for what they do but for what
they mean. Products play an extended role in our lives.
Motivation refers to the processes that lead people to behave as
they do. It occurs when a need is aroused that the consumer
wishes to satisfy.
This fascination with a creepy little candy chick illustrates one
of the fundamental premises of the modern field of consumer
behavior: People often buy products not for what they do but for
what they mean. This principle does not imply that a product’s
basic function is unimportant, but rather that the roles products
play in our lives extend well beyond the tasks they perform.
Peeps are marshmallow candies, sold in the United States and
Canada, that are shaped into chicks, bunnies, and other animals.
There are also different shapes used for various holidays. They
have no nutritional value.
Motivation and Goals
1-20
Copyright © 2013 Pearson Education, Inc. publishing as
Prentice Hall
Motivation refers to the processes that lead people to behave as
they do. It occurs when a need is aroused that the consumer

wishes to satisfy.
Needs:
utilitarian (i.e., a desire to achieve some functional or practical
benefit)
hedonic (i.e., an experiential need, involving emotional
responses or fantasies).
Goal The desired end state is the consumer’s . Marketers try to
create products and services to provide the desired benefits and
help the consumer to reduce this tension.
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Technology and culture create a new “always on” consumer.
1-21
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Social Media facts
It took radio 38 years to reach 50 million listeners. TV took 13
years to reach 50 million users. The Internet took 4 years to
reach 50 million people. In less than 9 months, Facebook added
100 million users.
About 70 percent of Facebook users are outside the United

States.
Social networks have overtaken porn as the number-one online
activity.
One out of eight couples that married last year met on a social
media site.
80 percent of companies use LinkedIn as their primary
recruiting tool.
25 percent of search results for the world’s top 10 brands are to
user-generated content.
People share more than 1.5 billion pieces of content on
Facebook—every day.
80 percent of Twitter usage is from mobile devices, and 17
percent of users have tweeted while on the toilet.
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Chapter Summary
Consumer behavior is a process.
Marketers have to understand the wants and needs of different
consumer segments.
Our choices as consumers relate in powerful ways to the rest of
our lives.
Our motivations to consume are complex and varied.
Technology and culture create a new “always on” consumer.
Many different types of specialists study consumer behavior.
There are differing perspectives regarding how and what we
should understand about consumer behavior.
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Copyright
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Twelfth Edition
Chapter 13
Subcultures
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13.1 Consumer identity derives from “we” as well as “I”.
13.2 Our memberships in ethnic, racial, and religious
subcultures often play a big role in guiding our consumption
behaviors.
13.3 Marketers increasingly use religious and spiritual themes
when they talk to consumers.
13.4 Our traditional notions about families are outdated.
13.5 We have many things in common with others because they
are about the same age.

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13.6 Teens are an important age segment for marketers.
13.7 Baby Boomers are the most economically powerful age
segment.
13.8 Seniors are a more important market segment than many
marketers realize.
13.9 Birds of a feather flock together in place-based
subcultures.
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Consumer identity derives from “we” as well as “I”.
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Subcultures
Social identity is that part of the self that our group
memberships define.
The categories that matter in establishing our consumer identity

are subcultures.
We all belong to many subcultures, depending on our age, race,
ethnic background, and place of residence.
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What is Acculturation?
Acculturation occurs, at least in part, with the influence of
acculturation agents.
Family
Friends
Church organizations
Media
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Acculturation is the process of movement and adaptation to one
country’s cultural environment by a person from another
country. Acculturation agents are the influences in our
environment which affect the process of transitioning from one
culture to another that contains components of both the old and
new culture. These agents are family and friends, as well as
organizations like churches, and even the media. The agents
may be from the culture of origin or from the culture of
immigration.
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The Progressive Learning Model

Assumes that people gradually learn a new culture as they
increasingly come into contact with it
When people acculturate they will blend their original culture
and the new one
Consumers who retain much of their original ethnic identity
differ from those who assimilate
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Is Ethnicity a Moving Target?
Defining/targeting an ethnic group is not always so easy
(“melting pot” society)
Deethnicization occurs when a product we associate with a
specific ethnic group detaches itself from its roots and appeals
to other groups
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The “Big Three” American Ethnic Subcultures
African Americans
Hispanic Americans
Asian Americans
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African Americans
Overall spending patterns of blacks and whites are roughly
similar
Household income and educational levels rising for African
Americans
Differences in consumption behaviors subtle but important
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10-11
Hispanic Americans
“Hispanic” = many different backgrounds
Hispanics are:
Brand loyal
Highly concentrated geographically by country of origin (easy
to reach)
Internet advertising

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Distinguishing Characteristics of the Hispanic Market
Looking for spirituality, stronger family ties, and more color in
their lives
Large family size of Hispanic market
Spend more on groceries
Shopping is a family affair
Regard clothing children well as matter of pride
Convenience/saving time is not important to Hispanic
homemaker
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Asian Americans
Most affluent, best educated
Most brand-conscious but least brand loyal
Made up of culturally diverse subgroups that speak many
different languages/dialects
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13
Our memberships in ethnic, racial, and religious subcultures
often guide our consumption behaviors.
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Marketers increasingly use religious and spiritual themes when
they talk to consumers.
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Religion and Consumption
Organized religion and product choices
Born-again consumers
Islamic marketing
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Ethnic and Racial Subcultures
An ethnic subculture is a self-perpetuating group of consumers
who share common cultural or genetic ties where both its
members and others recognize it as a distinct category.
In countries like Japan, ethnicity is synonymous with the
dominant culture because most citizens claim the same cultural
ties.
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We have many things in common with others because they are
about the same age.
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Age and consumer identity
Shared
experiences
Shared
memories

Nostalgia
appeal
Age
cohort
identity
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Generational Categories
The Interbellum Generation (born at the beginning of the 20th
century)
The Silent Generation (between the two World Wars)
The War Baby Generation (during World War II)
The Baby Boom Generation (between 1946 and 1964)
Generation X (1965 and 1985)
Generation Y (1986 and 2002)
Generation Z (2003 and later)
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Gen Y and Z
Four basic conflicts are common among all teens:
Autonomy versus belonging
Rebellion versus conformity
Idealism versus pragmatism
Narcissism versus intimacy

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Getting to Know Gen Z
Born in the late 1990’s to early 2000’s
Most diverse generation
Digital natives
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Getting to Know Gen Y
“Echo Boomers” = “millennials” = Gen Yers
Make up one-third of U.S. population
Spend $170 billion a year
First to grow up with computers in their homes, in a 500-
channel TV universe
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Teens are an important age segment for marketers.

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Generation X
Consumers born between 1966 and 1976
Today’s Gen Xer is both values-oriented and value-oriented
Desire stable families, save portion of income, and view home
as expression of individuality
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Baby boomers continue to be the most powerful age segment
economically.
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10-27
Baby Boomers
Consumers born between 1946 and 1965
Active and physically fit
Currently in peak earning years
Food, apparel, and retirement programs

“Midlife crisis” products
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Seniors continue to increase in importance as a market segment.
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Perceived Age: You’re Only as Old as You Feel
Age is more a state of mind than of body
Perceived age: how old a person feels as opposed to his or her
chronological age
“Feel-age”
“Look-age”
The older we get, the younger we feel relative to actual age
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Values of Older Adults
Autonomy: want to be self-sufficient
Connectedness: value bonds with friends and family
Altruism: want to give something back to the world

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Birds of a feather flock together in place-based subcultures.
Table 13.1 A Comparison of Two Different Youth-Oriented
PRIZM ClustersSegment #4: Young DigeratiSegment #24: Up-
and-ComersTech-savvy consumers who live in trendy
urban neighborhoods filled with fitness clubs,
boutiques, and microbreweries.
A transition segment for young, middle-class
singles before they marry and establish
families. Primarily live in mid-size cities and
includes many recent college graduates who
are into athletic activities, technology, and
nightlife. Much more likely than the average consumer to:
Shop at Bloomingdale’s
Travel to Asia
Read Dwell
Watch Independent Film Channel
Drive an Audi A3Much more likely than the average consumer
to:
Order from Priceline.com
Travel to South America
Read Cigar Aficionado
Watch South Park
Drive a Nissan Altima Hybrid
Adapted from “My Best Segments,” Nielsen,
http://www.claritas.com/MyBestSegments/Default.jsp?ID=30&p
ageName=Segment%2Bexplorer, accessed April 21, 2015.

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Copyright
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Twelfth Edition
Chapter 9
Decision Making
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9.1 The three categories of consumer decision-making are
cognitive, habitual, and affective.
9.2 A cognitive purchase decision is the outcome of a series of
stages that results in the selection of one product over
competing options.

9.3 The way information about a product choice is framed can
prime a decision even when the consumer is unaware of this
influence.
9.4 We often fall back on well-learned “rules-of-thumb” to
make decisions.
2
9.5 Marketers often need to understand consumers’ behavior
rather than a consumer’s behavior.
9.6 The decision-making process differs when people choose
what to buy on behalf of an organization rather than for
personal use.
9.7 Members of a family unit play different roles and have
different amounts of influence when the family makes purchase
decisions.
3

Learning Objective 1
The three categories of consumer decision-making are
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Consumer #1:
I want the one I read about in the latest issue of Car and
Driver magazine: It has a six-cylinder turbo engine, a double-
clutch transmission, a 90 strokebore, and 10:1 compression
ratio.
Consumer #2:
I want a red one
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Figure 2.1 Three Types of
Decision-Making
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A cognitive purchase decision is the outcome of a series of
competing options.
Cognitive misers
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2-7

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Figure 2.5 Stages in
Consumer Decision Making
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Stage 1: Problem Recognition
Occurs when consumer sees difference between current state
and ideal state
Need recognition: actual state declines
Opportunity recognition: ideal state moves upward
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Figure 2.6 Problem Recognition
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Stage 2: Information Search
The process by which we survey the environment for
appropriate data to make a reasonable decision
Prepurchase or ongoing search
Internal or external search
Online search and cybermediaries
Who searches more?
Age, education, gender

10
Who searches more?
Newbies or product experts?
Selective search
Nonfunctional attributes
Top-down vs bottom-up
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Figure 2.7 Amount of Information Search and Product

Knowledge
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Alternatives
Evoked Set
Consideration Set
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Product Choice
Step 4: Product choice
Feature creep

Step 5: Postpurchase evaluation
Neuromarketing
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Product Choice
Feature creep
Philips Electronics
Half of the products returned
Buyers spent only 20 mins to figure out how products work
Why? Consumers assume more features the better
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NeuroMarketing

Is There a Buy Button Inside the Brain: Patrick Renvoise at
TEDxBend
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Online Decision Making
Cybermediary
Intelligent agents
Search engines
Search engine optimization
Long tail

17
Strategic Implementation of Product Categories
Position a product
Identify competitors
Create an exemplar product
Locate products in a store
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Figure 9.5 Levels of Categorization

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Table 2.2 Hypothetical Alternatives
for a TV Set
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Determinant attributes
Evaluative criteria
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We often rely upon “rules-of-thumb” or cues in the environment
to make future decisions.
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Habitual decision making describes the choices we make with
little or no conscious effort.
Choices on the basis of routine and cues in the environment!

21
Priming and Nudging
Power of the unconscious to influence our daily decisions.
Subtle changes in a consumer’s environment can change
behavior; some refer to such a change as a nudge
2-22
Creativity
Nonconformity
innovation
Tradition
Intelligence
responsibility

22
Behavioral Economics
Cognitive biases often prevent people from making rational
decisions, despite their best efforts.
The word “Free”
Pricing
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15 cents
1 cent
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Dan Ariely
- Behavioral economist Dan Ariely

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Decision-Making Biases and Shortcuts
Maximizing solution vs satisficing solution
Bounded rationality
Behavioral economics, Daniel Kahneman
Framing
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Biases in Decision-Making Process
Mental accounting: framing a problem in terms of gains/losses
influences our decisions
Sunk-cost fallacy: We are reluctant to waste something we have
paid for
Loss aversion: We emphasize losses more than gains
Prospect theory: risk differs when we face gains versus losses
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Heuristics
Covariation
Country of Origin
Familiar Brand Names

Higher Prices
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We make some decisions on the basis of an emotional reaction
rather than as the outcome of a rational thought process.
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Emotions

ical
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Heart and Mind in conflict
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Marketers often need to understand consumers’ behavior rather
than a consumer’s behavior.
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Roles In Collective Decision Making
Initiator
Gatekeeper
Influencer
Buyer
User
32

The decision-making process differs when people choose what
to buy on behalf of an organization rather than for personal use.
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Organizational Decision Making
Organizational buyers: purchase goods and services on behalf of
companies for use in the process of manufacturing, distribution,
or resale.
Business-to-business (B2B) marketers: specialize in meeting
needs of organizations such as corporations, government
agencies, hospitals, and retailers.
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Compared to Consumer Decision Making, Organizational
Decision Making…
Involves many people
Requires precise, technical specifications

Is based on past experience and careful weighing of alternatives
May require risky decisions
Involves substantial dollar volume
Places more emphasis on personal selling
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What Influences Organizational Buyers?
The buyclass theory of purchasing divides organizational
buying decisions into 3 types:
Level of information required
Seriousness of decision
Familiarity with purchase
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Buying Decisions
Buyclass theory: organizational buying decisions divided into
three types, ranging from most to least complex.
Table 9.3 Types of Organizational Buying DecisionsBuying

SituationExtent of EffortRiskBuyer’s InvolvementStraight rebuy
Habitual decision-making Low
Automatic reorder
Modified rebuyLimited problem solving Low to moderate
One or a few
New task Extensive problem solving High
Many
Source: Adapted from Patrick J. Robinson, Charles W. Faris,
and Yoram Wind, Industrial Buying and Creative Marketing
(Boston: Allyn & Bacon, 1967).
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Members of a family unit play different roles and have different
amounts of influence when the family makes purchase
decisions.
38

Household Decisions
Consensual Purchase Decisions
Accommodative Purchase Decisions
39
Resolving Decision Conflicts in Families
Interpersonal need
Product involvement and utility
Responsibility
Power
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Who Makes Key Decisions in the Family?
Autonomic decision: one family member chooses a product
Syncretic decision: involve both partners
Used for cars, vacations, homes, appliances, furniture, home

electronics, interior design, phone service
As education increases, so does syncretic decision making
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3
Perception
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CONSUMER BEHAVIOR, 12e
Michael R. Solomon

1
Learning Objectives
The design of a product today is a key driver of its success or
failure.
Products and commercial messages often appeal to our senses,
but we won’t be influenced by most of them.
Perception is a three-stage process that translates raw stimuli
into meaning.
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Learning Objectives (Cont.)
Subliminal advertising is a controversial—but largely
ineffective—way to talk to consumers.
We interpret the stimuli to which we do pay attention according
to learned patterns and expectations.
The field of semiotics helps us to understand how marketers use
symbols to create meaning.
3
The design of a product is now a key driver of its success or
failure.
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Hedonic consumption

4
Sensation and Perception
Sensation refers to the immediate response of our sensory
receptors (eyes, ears, nose, mouth, fingers, skin) to basic
stimuli such as light, color, sound, odor, and texture.
Perception is the process by which people select, organize, and
interpret these sensations. The study of perception, then,
focuses on what we add to these raw sensations in order to give
them meaning.
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Sensory Systems
Vision
Scent
Sound
Touch

Taste
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Sensory Marketing
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Companies think carefully about the impact of sensations on our
product experiences.

7
Vision
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Trade dress
Color forecasts
Marketers communicate meaning on a visual channel using a
product’s color, size, and styling.
Gender, age, culture
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Colors
Culture and colors
Marketing and colors
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9
Vision
Table 3.1 Marketing Applications of
ColorsColorAssociationsMarketing
ApplicationsYellowOptimistic and youthful Used to grab
window shoppers’ attention Red Energy Often seen in clearance
sales Blue Trust and securityBanksGreen Wealth Used to create
relaxation in stores Orange Aggressive Call to action: subscribe,
buy or sell Black Powerful and sleek Luxury products
PurpleSoothingBeauty or anti-aging products
Source: Adapted from Leo Widrich, “Why Is Facebook Blue?
The Science Behind Colors in Marketing,” Fast Company (May
6, 2013), fastcompany.com accessed February 23, 2015.
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Scent
Like color, odor can also stir emotions and memory.
Scent Marketing is a form of sensory marketing that we may see
in lingerie, detergents, and more.
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Products and commercial messages often appeal to our senses,
but because of the profusion of these messages, most won’t
influence us.

12
Key Concepts in Use of Sound
Audio watermarking
Sound symbolism
Hard consonant like a K (Kellogg’s) or P (Pepsi)
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Key Concepts in the Use of Touch
Touch matters.
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Taste
Flavor houses
Electronic tongue
Cultural factors and taste
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into meaning.
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Sensation and Perception
Perception is the process by which sensations are selected,
organized, and interpreted.

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Figure 5.1 Perceptual Process
We receive external
stimuli through
our five senses
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Stage 1: Key Concepts in Exposure
Sensory threshold
Psychophysics
Absolute threshold
Differential threshold
JND (Just noticeable difference)
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The Pepsi Logo Evolves
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Learning Objective
Subliminal advertising is a controversial but largely ineffective
way to talk to consumers
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Subliminal advertising
Subliminal perception refers to a stimulus below the level of the
consumer’s awareness.
Some research by clinical psychologists suggests that
subliminal messages can influence people under very specific
conditions, though it is doubtful that these techniques would be
of much use in most marketing contexts.
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Subliminal Techniques
Embeds: figures that are inserted into magazine advertising by
using high-speed photography or airbrushing.
Subliminal auditory perception: sounds, music, or voice text
inserted into advertising.
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Attention
Attention is the extent to which processing activity is devoted
to a particular stimulus
Consumers experience sensory overload
Marketers need to break through the clutter
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MultiTasking
Multitaskers have more trouble focusing, and they experience
more stress
More efficient
Technology is rewiring our brains
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Golden Triangle
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How Do Marketers Get Attention?
Personal Selection
Experience
Perceptual filters
Perceptual vigilance
Perceptual defense
Adaptation
Stimulus Selection
Contrast
Size
Color
Position
Novelty
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Factors Leading to Adaptation
Intensity
Duration
Discrimination
Exposure
Relevance
Adaptation is the degree to which consumers continue to notice
a stimulus over time
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We interpret the stimuli to which we do pay attention according

to learned patterns and expectations.
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Interpretation
Interpretation refers to the meaning we assign to sensory
stimuli, which is based on a schema

30
Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't
mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt
tihng is taht the frist and lsat ltteer be at the rghit pclae. Tihs is
bcuseae the huamn mnid deos not raed ervey lteter by istlef, but
the wrod as a wlohe.
Perceptual Organization
31
The field of semiotics helps us to understand how marketers use
symbols to create meaning
5-32
Prentice Hall

To help them understand how consumers interpret the meanings
of symbols, some marketers turn to semiotics. Semiotics is the
study of correspondence between signs and symbols and their
roles in how we assign meanings. This figure illustrates the
meaning of the three semiotic parts of a marketing message: 1)
the object, 2) the sign, and 3) the interpretant. For Marlboro
cigarettes, the cigarettes are the product. The symbol is the
cowboy which can be interpreted to mean rugged American.
What is the relationship between signs and marketing
communications? Why do certain symbols and icons work more
effectively in reaching consumers than others?
Semiotics: The study of signs and symbols as elements of
communicative behavior. This also includes the analysis of the
systems of communication, as language, gestures, or clothing.
32
Hyperreality
5-33
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33
Augmented Reality
Refers to media that superimpose one or more digital layers of
data, images, or video over a physical object.
5-34
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5-35
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Examples of Brand PositioningLifestyleGrey Poupon is “high
class”Price leadershipSouthwest Airlines is “no
frills”AttributesBounty is “quicker picker upper”Product
classMazda Miata is sporty
convertibleCompetitorsNorthwestern Insurance is the quiet

companyOccasionsUse Wrigley’s gum when you can’t
smokeUsersLevi’s Dockers targeted to young menQualityAt
Ford, “Quality is Job 1”
35
5-36
Prentice Hall
Chapter Summary
The design of a product affects our perception of it.
Products and messages may appeal to our senses.
into meaning.
Subliminal advertising is controversial.
We interpret stimuli using learned patterns.
Marketers use symbols to create meaning.

We’ve covered several key concepts in this chapter including
perception, our perception is affected by our senses, subliminal
advertising, and the factors which affect how we process
symbols.
36
Twelfth Edition
Chapter 9
Decision Making
Rights Reserved.
1
competing options.
influence.

make decisions.
2
personal use.
decisions.
3

2-4
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Consumer #1:
ratio.
Consumer #2:
I want a red one
4
Decision-Making
2-5
Prentice Hall

5
competing options.
Cognitive misers
2-6
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6
2-7
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7
2-8
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and ideal state
8
2-9

Prentice Hall
9
2-10
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Who searches more?

10
Who searches more?
Selective search
2-11
Prentice Hall
11
2-12
Prentice Hall
Knowledge

12
2-13
Prentice Hall
Alternatives
Evoked Set
Consideration Set
13
Product Choice
Feature creep
Neuromarketing

14
Product Choice
Feature creep
Philips Electronics
2-15
Prentice Hall
15
NeuroMarketing
TEDxBend
2-16

Prentice Hall
16
Cybermediary
Intelligent agents
Search engines
Long tail
17

Position a product
18
2-19
Prentice Hall
19

for a TV Set
2-20
Prentice Hall
Evaluative criteria
20
2-21
Prentice Hall

21
Priming and Nudging
2-22
Creativity
Nonconformity
innovation
Tradition
Intelligence
responsibility
22

The word “Free”
Pricing
2-23
Prentice Hall
15 cents
1 cent
23
Dan Ariely
2-24
Prentice Hall

24
Bounded rationality
Framing
2-25
Prentice Hall
25

2-26
Prentice Hall
paid for
26
2-27
Prentice Hall
Heuristics
Covariation
Country of Origin
Higher Prices

27
2-28
Prentice Hall
28
Emotions

2-29
Prentice Hall
29
2-30
30

31
Initiator
Gatekeeper
Influencer
Buyer
User
32

33
Organizational Decision Making
Organizational buyers: purchase goods and services on behalf of
companies for use in the process of manufacturing, distribution,
or resale.
Business-to-business (B2B) marketers: specialize in meeting
needs of organizations such as corporations, government
agencies, hospitals, and retailers.
34
Compared to Consumer Decision Making, Organizational
Decision Making…
Involves many people
Requires precise, technical specifications
Is based on past experience and careful weighing of alternatives
May require risky decisions
Involves substantial dollar volume
Places more emphasis on personal selling

35
36
Buying Decisions
Automatic reorder

One or a few
Many
37
decisions.
38
Household Decisions

39
Interpersonal need
Responsibility
Power
40

41
4
Learning and Memory
6-1
Prentice Hall
CONSUMER BEHAVIOR, 12e
Michael R. Solomon

1
Chapter 6 focuses on the way we mentally store information we
perceive and how it adds to our existing knowledge about the
world during the learning process.
4.1 It is important to understand how consumers learn about
products and services.
4.2 Conditioning results in learning.
4.3 Learned associations with brands generalize to other
products.
4.4 There is a difference between classical and instrumental
conditioning, and both processes help consumers learn about
products.
2
4.5 We learn about products by observing others’ behavior.
4.6 Our brains process information about brands to retain them
in memory.
4.7 The other products we associate with an individual product
influence how we will remember it.
4.8 Products help us to retrieve memories from our past.
4.9 Marketer measure our memories about products and ads.

3
It is important to understand how consumers learn about
products and services
6-4
Prentice Hall
4
Theories of Learning
Learning is a relatively permanent change in behavior caused by
experience.
Behavioral learning theories focus on stimulus-response
connections
Cognitive learning theories focus on consumers as problem

solvers who learn when they observe relationships
6-5
Prentice Hall
5
6-6
Prentice Hall
Conditioning results in learning.
6

6-7
Prentice Hall
Types of Behavioral Learning Theories
Classical conditioning: a stimulus that elicits a response is
paired with another stimulus that initially does not elicit a
response on its own.
Instrumental conditioning (also, operant conditioning): the
individual learns to perform behaviors that produce positive
outcomes and to avoid those that yield negative outcomes.
7
6-8
Prentice Hall
Classical Conditioning

Components of Conditioning
Unconditioned stimulus
Conditioned stimulus
Conditioned response
8
Classical Conditioning
9
What are UCS and CS here?
2-10
Prentice Hall

Dinner aromas
6 o’clock news
Salivation
6 o’clock news
Salivation
After repeated pairings:
Marketing Applications of Classical Conditioning Principles
The association between the Marlboro man and the cigarette
Children’s appetite and McDonald’s logo
2-11
Prentice Hall

11
Learned associations with brands generalize to other products.
We can utilize these associations in marketing applications
through
Repetition
Conditioned product associations
Stimulus generalizations
6-12
Prentice Hall
12
There is a difference between classical and instrumental
conditioning and both processes help consumers to learn about
products.
6-13
Prentice Hall

13
Instrumental conditioning
2-14
14
Positive reinforcement
Negative reinforcement
Punishment

Extinction
How Does
Instrumental Conditioning Occur?
Positive reinforcement
Negative reinforcement
Punishment
6-15

Prentice Hall
Drug Free America
BBT
Family guy
15
6-16
Prentice Hall
Figure 6.1 Types of Reinforcement
16

Reinforcement Schedules
Continuous: get discount every time
Intermittent: get discount only sometimes
Fixed interval (sales at the end of month)
Variable interval (surprise sales each month)
$2 Tuesdays
Reinforcement Schedules
Fixed ratio (each 6th ice-cream is free)
Variable ratio (slot machines, scratch and win lottery)
Marketing Applications of Instrumental Conditioning Principles
Frequency marketing: a marketing technique that reinforces

regular purchasers by giving them prizes with values that
increase along with the amount purchased
After purchase “Thank you” letters
2-19
Prentice Hall
19
Cognitive Learning Theory
Internal learning processes
20

We learn about products by observing others’ behavior.
Observational learning
6-21
Prentice Hall
21
Observational Learning
Social default and modeling
The consumer’s attention must be directed to the appropriate
model.
The consumer must remember what the model says or does.
The consumer must convert this information into actions.
The consumer must be motivated to perform these actions.

22
Consumer Socialization
Marketers don’t necessarily have to directly reward or punish
consumers when they make a purchase.
2-23
Prentice Hall
Consumer socialization is the process “by which young people
acquire skills, knowledge, and attitudes relevant to their
functioning in the marketplace.”
23
Figure 6.3 Five Stages of
Consumer Development
6-24
Prentice Hall

24
TV and kids
Ban on fast-
Kids who watched fast-food ads ate %84 to %134 more calories
2-25
Prentice Hall

25
Our brains process information about brands to retain them in
memory.
6-26
Prentice Hall
26
6-27
Prentice Hall
Memory Systems

27
Memory Systems
Sensory memory
Short-term memory
Long-term memory
2-28
Prentice Hall
28
Sensory memory
Stores the information from senses
Very temporary
Lasts couple of seconds
2-29
Prentice Hall

29
Short-term memory
Limited period of time, and it has limited capacity.
Working memory; it holds the information we are currently
processing
Store as combination of small pieces into larger ( A chunk)
2-30
Prentice Hall
30
Long term memory

Long period of time
Move from short-term memory into long-term memory.
Relating it to other information already in memory.
Catchy slogans or jingles that consumers repeat on their own.
2-31
Prentice Hall
LTM test
Do you remember the address of the last place you lived?
What was the name of your third grade teacher?
What did you have for dinner on January 14th 2016?
What did you have for dinner on February 14th 2016?
2-32
Prentice Hall

The other products we associate with an individual product
influence how we will remember it.
2-33
Prentice Hall
33
The “Spreading Activation” Model of Memory
Network related to a concept = knowledge structure
Individual bits of information (concepts, feelings, events)
stored in nodes
Connectors are called associative links (vary in strength)
When a concept is activated the resulting energy spreads
through associative links to related concepts (nodes) further
away from the original concept

6-35
Prentice Hall
Spreading Activation
Brand-specific (“it’s macho”)
Ad-specific (a macho-looking guy uses the product)
Brand identification (e.g., “Axe”)
Product category (a bottle of Axe sits in a guy’s medicine
cabinet)
Evaluative reactions (“that looks cool”)
35
Levels of knowledge
Schema: A schema is a cognitive framework we develop through
experience. An organized set of beliefs and feelings associated
with a particular concept

Script: a sequence of events an individual expects to occur.
2-36
Prentice Hall
36
More Complex Memory Structures: Product Category Schemas
Fast Food:
More Complex Memory Structures: Brand Schemas
Brand Schemas

More Complex Memory Structures: Self Schemas
More Complex Memory Structures: Scripts
Restaurant Scripts:
Make reservation
Get Seated
Order Drinks
Look at Menus
Order
Light Conversation
Eat
Order Dessert
Pay bill
Tip
Leave

What Makes Us Forget?
Decay
Interference
2-41
Prentice Hall
41
6-42
Prentice Hall
Understanding When We Remember
State-dependent retrieval
Familiarity and recall

Salience and the “von Restorff” effect
Viewing context
Pictorial versus verbal cues
42
Products help us to retrieve memories from our past.
Disney theme parks’ 2012 marketing campaign: "Let the
Memories Begin”
2-43
Prentice Hall

43
Marketers measure our memories about products and ads.
2-44
Prentice Hall
6-45
Prentice Hall
Measuring Memory for Marketing Stimuli
Recognition versus recall
multiple choice tests?
short answer questions?
Problems with memory measures
Response biases
Memory lapses
Omitting
Averaging
Telescoping

45
6-46
Prentice Hall
The Marketing Power of Nostalgia
Marketers may resurrect popular characters to evoke fond
memories of the past
Nostalgia
Retro brand
46
Twelfth Edition
Chapter 8

Attitudes and Persuasive Communications
Rights Reserved.
Rights Reserved.
1
8.1 It is important for consumer researchers to understand the
nature and power of attitudes.
8.2 Attitudes are more complex than they first appear.
8.3 We form attitudes in several ways.
8.4 A need to maintain consistency among all of our attitudinal
components motivates us to alter one or more of them.
8.5 Attitude models identify specific components and combine
them to predict a consumer’s overall attitude toward a product
or brand.
Rights Reserved.
2
8.6 The communications model identifies several important
components for marketers when they try to change consumers’
attitudes toward products and services.
8.7 The consumer who processes such a message is not
necessarily the passive receiver of information marketers once
believed him to be.
8.8 Several factors influence a message source’s effectiveness.

Rights Reserved.
3
8.9 The way a marketer structures his or her message
determines how persuasive it will be.
8.10 Many modern marketers are reality engineers.
8.11 Audience characteristics help to determine whether the
nature of the source or the message itself will be relatively more
effective.
Rights Reserved.
4
It is important for consumer researchers to understand the
nature and power of attitudes.
Rights Reserved.
The Power of Attitudes
Attitude: a lasting, general evaluation of people, objects,
advertisements, or issues
Attitude object (AO): anything toward which one has an attitude

Rights Reserved.
6
Overall favorable/unfavorable disposition towards an object
Attitudes
Bad1234567GoodNegative1234567PositiveUnfavorable1234567
Favorable
Rights Reserved.
Functional Theory of Attitudes
Utilitarian Function:
Relates to rewards and punishments
Value-Expressive Function:
Expresses consumer’s values or self-concept
EGO-Defensive Function:
Protect ourselves from external threats or internal feelings
Knowledge Function:
Need for order, structure, or meaning
Rights Reserved.
8
Attitudes are more complex than they first appear.

Rights Reserved.
9
Hierarchies of Effects
High-involvement hierarchy-> problem solving
Low-involvement hierarchy-> initially no strong preference
Experiential hierarchy of effects->emotions
Rights Reserved.
10
Figure 8.1: Three Hierarchies of Effects
Rights Reserved.
Rights Reserved.
11
I like Dawn dishwashing detergent?
Dawn makes me feel:

Affective component
Strongly dislike 1 2 3 4 5 6 7 8 9
Strongly like
Very unhappy 1 2 3 4 5 6 7 8 9
Very happy
Rights Reserved.
I will buy Dawn dishwashing detergent
I would recommend Dawn to my friends
Behavioral component
Very unlikely 1 2 3 4 5 6 7 8 9
Very likely
Definitely Yes 1 2 3 4 5 6 7 8 9
Definitely No
Rights Reserved.
I am satisfied with Dawn dishwashing detergent
Dawn is a good brand

Cognitive component
Strongly agree 1 2 3 4 5 6 7 8 9
Strongly disagree
Strongly disagree 1 2 3 4 5 6 7 8 9
Strongly agree
Rights Reserved.
We form attitudes in several ways.
Rights Reserved.
15
Attitude Commitment
Internalization
Highest level: deep-seeded attitudes become part of consumer’s
value system
Identification
Mid-level: attitudes formed in order to conform to another
person or group
Compliance
Lowest level: consumer forms attitude because it gains rewards
or avoids punishments
Rights Reserved.

16
A need to maintain consistency among all of our attitudinal
components often motivates us to alter one or more of them.
Rights Reserved.
17
Consistency Principle
We value/seek harmony among thoughts, feelings, and
behaviors
We will change components to make them consistent
Relates to the theory of cognitive dissonance – we take action to
resolve dissonance when our attitudes and behaviors are
inconsistent
Rights Reserved.
18
Cognitive Dissonance in Marketing
Buyer’s Remorse
If product not as good as hoped, discrepancy between behavior
(bought product) and attitude (no good).
To resolve discrepancy, consumer can:
(a) Stop purchasing product, or
(b) Change attitude and decide product is fine (focus on
positives, minimize negatives, etc.)

How can managers make (b) happen instead of (a)?
Send “congratulatory” mailings
Include promotional materials in the package
Continued advertising
Rights Reserved.
19
8-20
Prentice Hall
How Do Marketers Change Attitudes?
Reciprocity
Scarcity
Authority
Consistency
Liking
Consensus
Persuasion: involves an active attempt to change attitudes.
Rights Reserved.
20

Reciprocity
We try to repay, in kind, what has been given to us.
Examples
Free samples in supermarkets
Free address labels with solicitations
Compliance with surveys
Tips in restaurants
Solicitations for donations
Rights Reserved.
Who do we like?
Our friends
Tupperware parties
“John suggested I call you.”
Those who like us (or who seem to)…
…even when we know they’re flattering us.
Attractive people
Halo effect
Automatically assign favorable traits such as: talent, kindness,
honesty, intelligence to attractive people
Liking
Rights Reserved.
People who are like us (similarity)
Similar names (Garner, 2005)
Participants reported greater liking for the person, and
expressed more willingness to comply with a request for help
than control participants did. Questionnaire return rates
indicated that both undergraduates and college professors
completed and returned questionnaires more frequently if the
name on the cover letter was similar to their own.

“You’re from Boston? I’m from Boston!” – car salesmen
Dress like us
Familiar objects
Liking
Rights Reserved.
Scarcity
Scarce items tend to be perceived as more valuable.
Why?
Valuable objects are rare… so rare objects are valuable?
Rights Reserved.
24
Limit production (accidentally or purposefully)
Limit distribution
“We might be all out of that…”
“Limited time!” “Limited engagement!”
Close out sales; Black Friday sales
e.g. Toy sales
Increasing perceptions of scarcity
Rights Reserved.
25

The communications model identifies several important
Rights Reserved.
26
An Updated View: Interactive Communications
Figure 8.4 The Traditional Communications Model
Rights Reserved.
27
The consumer who processes a message is not necessarily the
passive receiver of information marketers once believed him or
her to be.
Rights Reserved.
28
Figure 8.5 Updated Communications Model

Rights Reserved.
29
New Message Formats (1 of 2)
M-commerce - marketers promote goods and services via
wireless devices.
New social media platforms:
Blogs and video blogs
Podcasts
Twitter
Virtual worlds
Widgets
Rights Reserved.
30
Several factors influence the effectiveness of a message source.
Rights Reserved.
31
The Source
Source credibility
Disclaimers
Sleeper effect
Native advertising

Source attractiveness
Shared endorsements
Halo effect
Spokecharacters
Rights Reserved.
32
Source Attractiveness
Attractiveness does not just mean physical appearance
Sources can be also attractive if they are likeable (Wendy’s
Dave Thomas), familiar (a well known infomercial host), or
high in social status (celebrities and professional athletes)
Sources can also be attractive because they are similar to us and
we feel that we can relate to them
Rights Reserved.
33
Japander?
2-34
Prentice Hall

Rights Reserved.
34
The way a marketer structures his or her message determines
how persuasive it will be.
Rights Reserved.
35
Decisions to Make About the Message
Should we use pictures or words?
How often should message be repeated?
Should it draw an explicit conclusion?
Should it show both sides of argument?
Should it explicitly compare product to competitors?
Should it arouse emotions?
Should it be concrete or based on imagery?
Rights Reserved.
36
The Message
Characteristics of good and Bad MessagesPositive
effectsNegative effectsShowing convenience of use

Extensive information on components, ingredients, or
nutritionShowing new product or improved features Outdoor
setting (message gets lost)
Casting background (i.e., people are incidental to message)
Large number of on-screen characters
Indirect comparison to other products Graphic displays
Source: Adapted from David W. Stewart and David H. Furse,
“The Effects of Television Advertising Execution on Recall,
Comprehension, and Persuasion,” Psychology & Marketing 2
(Fall 1985): 135–60. Copyright © 1985 by John Wiley & Sons,
Inc. Reprinted by permission.
Rights Reserved.
37
Repeating the Message
Figure 8.6 Two -Factor Theory of Message Repetition
Rights Reserved.
38
How Do We Structure Arguments?
One-sided: supportive arguments
Two-sided: both positive and negative information
Refutational argument: negative issue is raised, then dismissed
Positive attributes should refute presented negative attributes
Effective with well-educated and not-yet-loyal audiences

Rights Reserved.
39
One vs. two sided
Rights Reserved.
McGuire’s innoculation theory
40
Comparative Advertising
Comparative advertising: message compares two+ recognizable
brands on specific attributes.
“Unlike McDonalds, all of Arby's chicken sandwiches are made
with 100% all-natural chicken”
Negative outcomes include source derogation
Rights Reserved.
41
Comparative ad
Works best when not the market leader
Grabs attention, but negative attitudes towards format
Need high involvement to process
Print better

Partial comparative tricky
Mac vs PC
Rights Reserved.
8-43
Prentice Hall
Types of Message Appeals
Emotional versus Rational Appeals
Sex Appeals
Humorous Appeals
Fear Appeals
Rights Reserved.
43
Audience characteristics help to determine whether the nature
of the source or the message itself will be relatively more
effective.
Rights Reserved.

44
ELM
Figure 8.7 The Elaboration Likelihood Model (ELM) of
Persuasion
Rights Reserved.
The elaboration likelihood model, known as the ELM, assumes
that under conditions of high involvement, we will take the
central route to persuasion, but under conditions of low
involvement, we will take a peripheral route. The central route
is focused on the consumer’s cognitive response to the message.
The peripheral route focuses on other cues to decide how to
react to the message.
45
Chapter Summary (1 of 3)
Attitudes are very powerful, and they are formed in several
ways.
People try to maintain consistency among their attitudinal
components and their attitudes and behaviors.
The communications model includes several important
components which can be influenced by marketers to enhance
the persuasiveness of the message.
Rights Reserved.
46

The communications model identifies several important
The consumer who processes such a message is not necessarily
the passive receiver of information marketers once believed him
to be.
Rights Reserved.
47
Several factors influence a message source’s effectiveness.
The way a marketer structures his message determines how
persuasive it will be.
Audience characteristics help to determine whether the nature
of the source or the message itself will be relatively more
effective.
Rights Reserved.
48
Copyright
Rights Reserved.

Twelfth Edition
Chapter 9
Decision Making
Rights Reserved.
1
competing options.
influence.
make decisions.

2
personal use.
decisions.
3
2-4
Prentice Hall
Consumer #1:

ratio.
Consumer #2:
I want a red one
4
Decision-Making
2-5
Prentice Hall
5

competing options.
Cognitive misers
2-6
Prentice Hall
6
2-7
Prentice Hall

7
2-8
Prentice Hall
and ideal state
8
2-9
Prentice Hall

9
2-10
Prentice Hall
Who searches more?
10
Who searches more?
Selective search

2-11
Prentice Hall
11
2-12
Prentice Hall
Knowledge
12

2-13
Prentice Hall
Alternatives
Evoked Set
Consideration Set
13
Product Choice
Feature creep
Neuromarketing
14

Product Choice
Feature creep
Philips Electronics
2-15
Prentice Hall
15
NeuroMarketing
TEDxBend
2-16
Prentice Hall

16
Cybermediary
Intelligent agents
Search engines
Long tail
17
Position a product

18
2-19
Prentice Hall
19
for a TV Set
2-20
Prentice Hall

Evaluative criteria
20
2-21
Prentice Hall
21
Priming and Nudging

2-22
Creativity
Nonconformity
innovation
Tradition
Intelligence
responsibility
22
The word “Free”
Pricing
2-23

Prentice Hall
15 cents
1 cent
23
Dan Ariely
2-24
Prentice Hall

24
Bounded rationality
Framing
2-25
Prentice Hall
25
2-26
Prentice Hall

paid for
26
2-27
Prentice Hall
Heuristics
Covariation
Country of Origin
Higher Prices

27
2-28
Prentice Hall
28
Emotions
2-29
Prentice Hall

29
2-30
30

31
Initiator
Gatekeeper
Influencer
Buyer
User
32

35
36
Buying Decisions
Automatic reorder
One or a few
Many

37
decisions.
38
Household Decisions

39
Interpersonal need
Responsibility
Power
40
41

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