Motivation and ValuesDr L Spiteri Corni.docx

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Motivation and Values
Dr L Spiteri Cornish
We discussed:That both personal and social conditions
influence how we spend our money. How we group consumers
into social classes and how this defines where they stand in
society. That a person’s desire to make a statement about his
social class, or the class to which he hopes to belong, influences
the products he likes and dislikes.
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After this lecture, you should understand :That it’s important
for marketers to recognize that products can satisfy a range of
consumer needs.That the way we evaluate and choose a product
depends upon our degree of involvement with the product, the

marketing message, and/or the purchase situation.
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Making more Babies
Marketers to recognize that products can satisfy a range of
consumer needs. Marketers give us solutions!
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. The need creates a state of tension that drives
the consumer to attempt to reduce or eliminate it. This need
may be utilitarian (i.e., a desire to achieve some functional or
practical benefit, as when a person loads up on green vegetables
for nutritional reasons) or it may be hedonic (i.e., an
experiential need, involving emotional responses or fantasies).
The desired end state is the consumer’s goal . Marketers try to
create products and services to provide the desired benefits and
help the consumer to reduce this tension.
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A need creates a state of tension that drives the consumer to
attempt to reduce or eliminate it.The desired end state is the
goalThe degree of arousal is drive
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013)
Consumer behaviour: a European perspective, Pearson: London.

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This need may be utilitarian (i.e., a desire to achieve some
functional or practical benefit, as when a person loads up on
green vegetables for nutritional reasons) or it may be hedonic
(i.e., an experiential need, involving emotional responses or
fantasies, as when Basil longs for a juicy steak). The desired
end state is the consumer’s goal.
Marketers try to create products and services to provide the
desired benefits and help the consumer to reduce this tension.
Whether the need is utilitarian or hedonic, the magnitude of the
tension it creates determines the urgency the consumer feels to
reduce it. We call this degree of arousal a drive. We can satisfy
a basic need in any number of ways, and the specific path a
person chooses is influenced both by her unique set of
experiences and by the values his or her culture instills. These
personal and cultural factors combine to create a want, which is
one manifestation of a need.
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Stimulus
Need
Recognition
Drive
State
Goal
Directed
Behavior
Actual state
Desire State
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NEED FOR ACHIEVEMENT
Value personal accomplishment
Place a premium on products that signify success (luxury
brands, technology products)
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NEED FOR AFFILIATION
Want to be with other people
Focus on products that are used in groups (alcoholic beverages,

sports bars)
NEED FOR POWER
Control one’s environment
Focus on products that allow them to have mastery over
surroundings (muscle cars, loud boom-boxes)
NEED FOR UNIQUENESS
Assert one’s individual identity
Enjoy products that focus on their unique character (perfumes,
clothing)
Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour.
Prentice Hall: London
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Need for achievement refers to the desire to accomplish
something. Sometimes people will express a need for
achievement with premium products that express success.
Need for affiliation is the desire to be with other people.
Products that express emotion and aid in group activities are
relevant.
Need for power is the need to control one’s environment.
Products that allow us to feel mastery over our surroundings
and situation meet this need.
Need for uniqueness is the need to assert one’s individual
identity. Products that pledge to illustrate our distinct qualities
meet this need.
Motivation satisfies either utilitarian or hedonic needs.
Satisfying utilitarian needs implies that consumers emphasize
the objective, tangible attributes of products e.g. fuel economy
in a car.

Satisfying hedonic needs implies that consumers emphasize
subjective and experiential aspects, e.g. self confidence,
excitement, etc.
Overby, J. and Lee, E. (2006). The effects of utilitarian and
hedonic online shopping value on consumer preference and
intentions, Journal of Business Research 59, 1160–1166.
Kelley C., Anderson, D., et al. (2008). Inﬂuence of hedonic and
utilitarian motivations on retailer loyalty and purchase
intention: a Facebook perspective. Journal of Retailing and
Consumer Services, 21, 773–779.
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Motivational Conflict
APPROACH/AVOIDANCE
APPROACH/APPROACH
AVOIDANCE/AVOIDANCE
A goal has valence, which means that it can be positive or

negative. Therefore, goals can be sought or avoided. There are
three general types of conflicts:
Approach-approach conflict—a person must choose between
two desirable alternatives such as choosing between two
favorite brands of automobiles.
Approach-avoidance conflict—many products or services we
desire have negative consequences attached to them. An
example is having to undergo a root canal procedure in order to
rectify tooth decay.
Avoidance-avoidance conflict—a choice between two
undesirable alternatives such as having to spend more on an
older car or buy a newer more expensive car.
Two desirable alternatives
Cognitive dissonance
Positive & negative aspects
of desired product
Guilt of desire occurs
Facing a choice with two
undesirable alternatives
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A person has an approach–approach conflict when she must
choose between two desirable alternatives. The theory of
cognitive dissonance is based on the premise that people have a
need for order and consistency in their lives and that a state of
dissonance (tension) exists when beliefs or behaviors conflict
with one another. We resolve the conflict that arises when we

choose between two alternatives through a process of cognitive
dissonance reduction, where we look for a way to reduce this
inconsistency (or dissonance) and thus we eliminate unpleasant
tension.
Dissonance occurs when a consumer must choose between two
products, both of which possess good and bad qualities. When
he chooses one product and not the other, the person gets the
bad qualities of the product he buys and loses out on the good
qualities of the one he didn’t buy. This loss creates an
unpleasant, dissonant state he wants to reduce. We tend to
convince ourselves, after the fact, that the choice we made was
the smart one as we find additional reasons to support the
alternative we did choose—perhaps when we discover flaws
with the option we did not choose (sometimes we call this
“rationalization”). A marketer can bundle several benefits
together to resolve an approach–approach conflict.
Types of Motivational Conflict
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Maslow's Hierarchy of Needs: Does It Apply In A Collectivist
Culture
Gambrel, P.A. and Cianci, R. (2003). Maslow's Hierarchy of
Needs: Does It Apply in A Collectivist Culture Journal of
Applied Management and Entrepreneurship 8.2, 143-161
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This exhibit illustrates Maslow’s Hierarchy of Needs. The
hierarchy includes five levels: 1) physiological, 2) safety, 3)
belongingness, 4) ego needs, and 5) self-actualization.
Marketers’ application of this hierarchy has been somewhat
simplistic, especially as the same product or activity can gratify
different needs. For example, one study found that gardening
could satisfy needs at every level of the hierarchy:
• Physiological—“I like to work in the soil.”
• Safety—“I feel safe in the garden.”
• Social—“I can share my produce with others.”
• Esteem—“I can create something of beauty.”
• Self-actualization—“My garden gives me a sense of peace.”
Koltko-Kulik, W. (2005). Rediscovering the later version of
Maslow's hierarchy of needs: Self-transcendence and
opportunities for theory, research, and unification. Review of
General Psychology, 10(4), 302-317
History will see advertising "as one of the real evil things
of our time. It is stimulating people constantly to want things,
want this, want that."
Malcolm Muggeridge, quoted in Eric Clark, The Want Makers:
Inside the World of Advertising, 1988, New York: Penguin
Books, p. 371

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PMS Chocolate_Wants Needs
Solomon's Wants vs Needs for Marketers
Got Milk?
Involvement: perceived relevance of an object based on one’s
needs, values and interests
OBJECTIVE: It is important to understand why the way we
evaluate and choose a product depends upon our degree of
involvement with the product, the marketing message, and/or
the purchase situation
We use the word object in the generic sense to refer to a product
(or a brand), an advertisement, or a purchase situation.
Consumers can find involvement in all these objects.

INERTIA
FLOW
Because a person’s degree of involvement can be conceived as a
continuum, consumption at the low end of involvement is
characterized by inertia. In this state, decisions are made out of
habit because the consumer lacks the information to consider
alternatives. To the contrary, decisions can be very passionate
and carry great meaning for a person. In consumer situations of
high involvement, the consumer enters a flow state, where the
consumer is in an elated state of focus and concentration and
loses track of time.
Inertia: consumption at the low end of involvement (Decisions
made out of habit (lack of motivation)Flow : consumers are
truly involvedSense of controlConcentrationMental
enjoymentDistorted sense of time
Carù, A., & Cova, B. (2003). Revisiting consumption
experience: A more humble but complete view of the concept.
Marketing Theory, 3(2), 267.
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2-*Cult product: command fierce consumer loyalty, devotion,

and even worship by consumers who are highly involved
Cult Branding_China
Cult Branding Done Right
Value: a belief that some condition is preferable to its opposite
(E.g. looking younger is preferable to looking older)People’s
values play an important role in their consumption activities,
since many products and services are purchased because it is
believed that they will help attain a certain
goal.Products/services = help in attaining value-related goal
Lynn R. K. and Kennedy, P. (2013). “Using the list of values
(LOV) to understand consumers”, Journal of consumer
Marketing, Vol. 2 Iss: 4, pp. 49 - 56.
Values change over time. Values can be challenged.Cultures
differ in the relative importance they assign to universal values
e.g. security, relationships/ This determines a country’s value
systemChildren learn their cultures core values from
socialization agents such as parents, teachers and friendsThe
meaning of core values is dependent on the local cultural
contextIn many cases values can be universal – desire for
health, wisdom, etc.
Brosch, T., and Sander, D. (2014). Appraising value: the role of
universal core values and emotions in decision-making. Cortex,
59, 203-205.

Madhavan P., Lane, V. and Stansifer M.L. (2015) "A time-based
analysis of changing consumer values in India", Journal of
Indian Business Research, 7(3), pp.271 - 291
Conscientious consumerism: consumer’s focus on personal
health merging with a growing interest in global healthLOHAS
(lifestyles of health and sustainability): Consumers who:Worry
about the environmentWant products to be produced in a
sustainable waySpend money to advance what they see as their
personal development and potential
Menzel, S. and Green, T. L. (2013). Sovereign Citizens and
Constrained Consumers: Why Sustainability Requires Limits on
Choice. Environmental Values 22, pp. 59-79
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https://www.gov.uk/government/statistics/uks-carbon-footprint
The carbon footprint measures, in units of carbon dioxide, the
impact human activities have on the environment in terms of the
amount of greenhouse gases they produce. The average
American is responsible for 9.44 tons of CO2 per year! As the
figure shows, a carbon footprint comes from the sum of two
parts, the direct, or primary, footprint and the indirect, or
secondary, footprint:
1) The primary footprint is a measure of our direct emissions of

CO2 from the burning of fossil fuels, including domestic energy
consumption and transportation (e.g., cars and planes).
2 The secondary footprint is a measure of the indirect CO2
emissions from the whole life cycle of products we use, from
their manufacture to their eventual breakdown.
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Materialism refers to the importance people attach to worldly
possessions.Materialists: value possessions for their own status
and appearanceThe pursuit of happiness through acquisition
rather than other means.Judging others’ success by their
material possessions.Consumers either justify their own
materialism or make excuses for it.“The good life”...“He who
dies with the most toys, wins”Non-materialists: value
possessions that connect them to other people or provide them
with pleasure in using them
Goldsmith, R. E. (2012) Materialism, Status Consumption, and
Consumer Independence. Journal of Social Psychology, 152(1),
pp43-60.
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Understanding the
Consumer
Income and Social Class

Dr L. Spiteri Cornish
Last Lecture…
We discussed:
The historical advancement of women from a
marketing/consumer behavior perspective
The role of women in contemporary societies and the way they
are portrayed in advertising
The role of men in contemporary society and the way they are
portrayed in advertising
How men and women differ in their buying behavior.
Lecture Objectives
After this lecture, you should understand :
That both personal and social conditions influence how we
spend our money.
How we group consumers into social classes and how this
defines where they stand in society.
That a person’s desire to make a statement about his social
class, or the class to which he hopes to belong, influences the
products he likes and dislikes.

What is Social Class?
Social class refers to an individual's standing in society.
Social class can be classified with various market segments,
such as upper, middle, and lower class.
Social class groups relate their purchase decisions to their
purchasing power, which is dependent upon the group’s
disposable income.
What is Social Class?
Virtually all groups make distinctions among members in terms
of relative superiority, power, and access to valued resources.
Every individual senses that he is more at home with and more
acceptable to some groups than to others
Consumers often use external symbols of status to indicate their
position in society.
Can you give me examples of external symbols?
Zubin, S and Blythe, J. (2016) Consumer behaviour. Sage:

London.
Social Classes in UK
Savage M, Devine F, Cunningham N, et al. (2013) A new model
of social class? Findings from the BBC’s Great British Class
Survey Experiment. Sociology 47(2): 219–250

Social Class
Social class structures begin to evolve from the moment an
individual is born into a particular family structure.
Many societies are divided into the “haves” and the “have-
nots”, resulting in social stratification.
Social stratification is the process by which scarce and valuable
resources are distributed unequally to status positions
(Solomon, Zaichkowsky, Polegato, 2004).
Social Class Components
Social class is comprised of three major components:
occupation, income, and education.
Educational attainment is strongly linked to income and
occupation (Solomon, Zaichkowsky, Polegato, 2004), since a
good education tends to lead to better and higher paying jobs.
Occupation plays a critical factor in consumer spending: it
specifies their leisure & living patterns ; This helps marketers
understand which products appeal to a specific social class.
Income itself is not a strong indicator of social class, but how
that income is spent is.
Partha Dasgupta, P., Southerton, D., Ulph, A. and Ulph, D.
(2016). Consumer Behaviour with Environmental and Social
Externalities: Implications for Analysis and Policy,
Environmental and Resource Economics, 65(1),191–226

Social Mobility
Climbing Up the Ladder (0.30 – 3.50)
Barki, E. and Parente, J. (2010) Consumer behaviour of the base
of the pyramid market in Brazil, Greener management
international, 11-23
Socio-Economic GroupingsAUpper Middle ClassHigh
managerial/ professional
e.g.company director, doctor, solicitorBMiddle
ClassIntermediate managerial/admin/professionalC1Lower
Middle ClassSupervisory/clerical/junior managerialC2Skilled
Working ClassSkilled manual workersDWorking ClassSemi-
skilled or unskilled workersEPensioners, casual
workersPensioners, unemployed, homeless
A basic assumption of economic psychology is that consumer
demand for goods and services depends on their ability and
willingness to buy.
Discretionary spending only occurs when people are able and
willing to spend money on items above and beyond their basic
needs.
Consumer confidence or the state of mind consumers have about

their own personal situation, as well as their feelings about their
overall economic prospects helps to determine whether they will
purchase goods, take on debt or save their money.
Factors Influencing Consumer Spending
Durmaz, Y., Kalyoncu, H., Üzeri, Y., Taşdemir, A. and
Kalyoncu, H. (2014). A Theoretical Approach to the Influence
of Social Class on Consumer Behavior, International Journal of
Social Science, 3(3).
Targeting the Affluent
Marketers focus on targeting the affluent (upper) social class as
this upscale market is comprised of individuals with significant
resources to spend on expensive products.
An affluent social class is defined by their standard of living,
where they receive their income, how they got it, and how long
they have had it.
Solomon, M., Zaichkowsky, J. L. and Polegato, R. (2011)
Consumer Behaviour: Buying, Having, Pearson: London.
Affluent people are more likely to buy:
Theatre, art, books, travel (especially unusual foreign)
donations to good causes, prestige schooling, membership of
private clubs, high quality prestige brands.
More likely to engage in careful information search.
Less likely to use price as an indicator of quality but rely on
actual product characteristics

More concerned about long term purchases
The affluent social class can be divided further into three
groups based on their attitudes toward luxury:
Luxury is a functional need:
Luxury is a reward:
Luxury is an indulgence:
O’Cass, A. (2012). Exploring consumer status and conspicuous
consumption, Journal of Consumer Behaviour, 4(1), 25–39
Targeting the Middle Classes
Those in the middle classes work with their minds.
Often provide professional service to the upper classes e.g.
healthcare, education.
More than one segment.
Secure jobs, long hours, high psychological demands.
Well educated/ educated parents.
Becoming more diverse: more multi-cultural (immigration),
Motohashi, K. (2015) Marketing Theory in Global Business
Strategy, Springer: USA.

Targeting the Middle Class
More likely to spend on:
Housing (location important), education, quality branded
clothes, home furnishings, wine, eating out, golf, tennis,
squash, skiing, buy on credit
Spend on comfort, pleasure, youth, time-savers.
Value substance over style and quality over show.
Look to Upper Classes (Cultural trickle-down)for guidance on
dining etiquette, apparel selection etc.
Williams, T. G. 2002) "Social class influences on purchase
evaluation criteria ", Journal of Consumer Marketing,19(3),
pp.249 - 276
Targeting the Working Class
People who work with their hands; Routine, mechanised jobs
with little job security.
Becoming more ethnic, more female, more educated.
More unemployment, illness and shorter lives.
Children aspire to fashion brands as a means of symbolic self-
completion.
Resistant to change, traditional gender roles exist: Women in
home, men the breadwinners, men go hunting, fishing, to the
pub, mend the car.
More limited horizons: socially, psychologically and
geographically.

Targeting the Working Class
More likely to:
Eat at home, spend rather than save, judge quality by price,
shop in mass retail/discount stores, buy domestic vehicles over
foreign
Be more brand loyal – look for popular brands, often spend
more than they need to.
Be more concerned with short term needs
Believe in external control of their lives.
Smoke, drink and eat fast food.
Lively ads and promos work well as they break the monotony of
their mundane lives.
Targeting the Poor?
Approximately 14 million people families live in poverty in the
UK (Oxfam 2015).
Although they obviously spend significantly less than the more
affluent classes, they have the same basic needs as all social
classes (i.e. food, housing, etc.).
Unfortunately, most businesses are reluctant to open in low-
income areas. Many residents of very poor neighbourhoods
must travel vast distances to have access to supermarkets, drug
stores, etc.
Solomon, M., Zaichkowsky, J. L. and Polegato, R. (2011)
Consumer Behaviour: Buying, Having, Pearson: London.
Rogers, H. P., Peyton, R., and Berl, R. L. (2012) The Notion of
Social Class and the Minority Buyer, Minority Marketing:

Issues and Prospects, Proceedings of the Academy of Marketing
Science, pp 28-32.
Status Symbol
A major component of social class is impacted by the status
symbols associated with certain products.
Can you think of any??
Members of affluent social classes purchase these status
symbols to display their wealth.
Keeping up with the Jones’s
Status-seeking: motivation to obtain products that will let others
know that you have “made it”
Status symbols vary between countries, based on the states of
their economic and technological development, and common
status symbols change over time with societal and cultural
changes.
Luxury Global Consumers 2015

Social Class Marketing Implications
Social class has a significant impact on purchasing decisions.
Consumer behaviour is heavily reliant on the concept of social
class, which defines consumer consumption patterns.
As such, social class is associated with the values and life-
styles of consumers, both of which significantly determine the
consumption structure and behaviour for numerous products.
It is becoming increasingly important for marketers to begin
marketing to lower income earners, especially in rapidly
developing areas (i.e. China, India, etc.). By developing ways
of producing high quality products at a lower cost, lower-
income consumers will be able to purchase products that were
until then out of their price range.
Williams, T. G. 2002) "Social class influences on purchase
evaluation criteria ", Journal of Consumer Marketing,19(3),
pp.249 - 276
Income & Social Class
Income is NOT strongly related to social class because:
Income levels overlap between social classes
Incomes increase with age but older people are not of a higher
social class
Dual career families generate higher incomes but not
necessarily higher status
Income cannot explain social class but social class can explain
how income is used
Status is more closely related to occupation than income.
Classes are mostly to do with social networks and peer
judgements of “people quality”
Also : what about future aspirations?

Relative value of social class versus income in predicting
consumer behaviour:
Social class appears to be a better predictor of purchases that
have symbolic aspects.
Income is a better predictor of major expenditures that do not
have status or symbolic aspects.
Social class and income data together are better predictors of
purchases of expensive, symbolic products.
Income and Social Class
Zubin, S and Blythe, J. (2016) Consumer behaviour. Sage:
London.
To Do…
Read the chapter on “Income and Social Class.”
ONLY if you have time (Coursework comes first!!!) read the
following:
Sobel, M.E., De Graaf, N.D, Heath, A. & Zou, Y (2003) Men
matter more: the social class identity of married British women
1985-1991, Journal of Royal Statistical Society, pp37-52

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Copyright © 2013 Pearson Education, Inc. Publishing as
Prentice Hall
Culture?
OBJECTIVE: It is important to understand that culture is like a
society’s personality and it shapes our identities as individuals
Culture includes both abstract ideas, such as values and ethics,
and material objects and services, such as the automobiles,
clothing, food, art, and sports a society produces. Put another
way, it’s the accumulation of shared meanings, rituals, norms,
and traditions among the members of an organization or society.
We simply can’t understand consumption unless we consider its
cultural context: Culture is the “lens” through which people
view products.
Our culture determines the overall priorities we attach to
different activities and products, and it also helps to decide
whether specific products will make it. A product that provides
benefits to members of a culture at any point in time has a much
better chance to achieve marketplace acceptance.

Last Lecture…
We discussed :That self-concept strongly influences consumer
behavior.That products often play a pivotal role in defining the
self-concept.The role of self-esteem in buying behaviorThe
difference between real and actual self and the role of products
in bridging this gapThe role of extended self in our buying
decisions
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Lecture Objectives
After this lecture, you should understand thatA culture is a
society’s personality; it shapes our identities as individuals.
Myths are stories that express a culture’s values, and in modern
times marketing messages convey these values.Rituals play an
important part in our lives and marketers adopt them as part of
their targeting strategies.
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https://www.youtube.com/watch?v=6_WAmt3cMdk
Culture and 'weird' foods

What is Culture?
Characteristics of Culture Culture is learned Culture is
unconscious Culture is Symbolic Culture is a way of life
Culture is Dynamic
“Everything that people have, think, and do as members of a
society” (Ferraro, 2005)
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Values Norms Ideas/Beliefs Attitudes Symbols Traditions
Artifacts
Dimensions of Culture
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Defining CultureThe accumulation of shared meanings, rituals,
norms, and traditions among membersDefines a human
community, its individuals, its social organizations, its
economic and political system. Includes both abstract ideas,
such as values and ethics, as well as the material objects and
services, such as cars, clothing, food, art and sports. Individual
consumers and groups of consumers are but part of culture, and
culture is the overall system within which other systems are
organized.”
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What do these products say about today’s culture?
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Hong Kong Secret Night Meal

Studying Culture in CBCulture is the lens through which
consumers view products and try to make sense of their own and
other people’s behaviour.Consumption choices cannot be
understood without considering the cultural context in which
they are made.Culture determines the overall priorities that a
consumer attaches to different activities and products.the
success or failure of specific products and services.
The material evidence of what a cultures does
What its people value
What attitudes prevail, how they conduct their lives
Usually embody the ideas and traditions of a society
Cultural Artifacts
De Mooij, M. and Hofstede, G. (2011) Cross-Cultural Consumer
Behavior: A Review of Research Findings Journal of
International Consumer Marketing, 23, pp. 181–192, 2011
Copyright �
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Norwegians Don't Believe in God
Hersey Struggles with China Weak Chocolate Appetite
Understanding Culture
Norms: rules dictating what is right or wrongEnacted norms:
explicitly decided on (e.g., green light equals “go”)Crescive
norms: Embedded into a culture and only discovered through
interaction with other members of that culture:Customs: norms
handed down from the past that control basic behavior (e.g.
household roles or special ceremonies)Mores: custom with a
strong moral overtone (e.g. incest; sexuality)Conventions:
norms regarding the conduct of everyday life (e.g. correct way
to host a dinner party).
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The Italians Who Prefer American Coffee
Culture is the lens through which people view products as well
as companies and brands!Culture channels consumer values,
attitudes, motives and goal directed behavior, as well as their

personalities.Culture influences the overall priorities consumers
attach to different activities and productsConsumption choices
cannot be understood without considering the cultural context in
which they are madeDetermines the success or failure of
specific products or servicesDetermines the success or failure of
marketing communications
Why should Marketers Understand Culture?
Luna, D. and Forquer Gupta, S. (2001) "An integrative
framework for cross‐cultural consumer behavior",International
Marketing Review, Vol. 18 Iss: 1, pp.45 - 69
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Chocolate Fries in Japan
Hiring Millenials in Japan
Culture & Marketing
Colgate's Cue toothpaste had problems in France as cue is a
crude term for "butt" in France.
Parker pen mistook embarazar (to impregnate) to mean to
embarrass and ran an ad in Mexico stating "It won't leak in your
pocket and make you pregnant”.

Ikea removed women from its catalogue in Saudi Arabia which
was met by worldwide protests and complaints.
American Airlines introduced its new leather first-class seats in
Mexico by saying "Fly in leather" which literally translates to
"fly naked“.
Many companies have had to learn that white is the colour of
mourning in the Far East while it means purity in many Western
countries and change their packaging and advertising
accordingly.
China Racist Whitewashing Advert
Brand Names Outside the USA
Chevrolet Nova didn't do well in Spanish speaking countries
...Nova means 'No Go' In Brazil the Ford Pinto flopped because
Pinto was Brazilian slang for "tiny male genitals." Ford pried
all the nameplates off and substituted Corcel, which means
horse. Bacardi concocted a fruity drink with the name 'Pavian'
to suggest French chic ... but 'Pavian' means 'baboon' in
German. A peanut-packed chocolate bar targeted at Japanese
teenagers needing energy while cramming for exams ran into a
belief that eating peanuts and chocolate causes nosebleeds.

Coors slogan, "Turn it Loose," translated into Spanish as
"Suffer From Diarrhea." Jolly Green Giant translated into
Arabic means "Intimidating Green Ogre."
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Puffs tissues had a bad name in Germany since "Puff" is a
colloquial term for whorehouse. Chicken magnate Frank
Perdue’s slogan "It takes a tough man to make a tender chicken,
“translated into Spanish came out as "It takes a sexually
stimulated man to make a chicken affectionate." In Italy, a
campaign for Schweppes Tonic Water translated the name
into"Schweppes Toilet Water."Beta Systems of Germany
prefaced all its software products in North America with the
word Beta, which in the Software business is pre-release testing
phase of the product meaning it’s not ready for general
use.Japan's 2nd-largest tourist agency, the Kinki Nippon Tourist
Co., changed its name after it began receiving requests for
unusual sex tours when it entered English-speaking
markets.Scandinavian vacuum manufacturer Electrolux used the
following in an American campaign, "Nothing sucks like an
Electrolux".
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Hofstede’s 4 Dimensions of Culture
Power
Distance
Uncertainty
Avoidance
Masculine

versus
Feminine
Individualism
versus
Collectivism
Way members perceive differences in power when they form
interpersonal relationships
Degree to which people feel threatened by ambiguous situations
Degree to which sex roles are clearly delineated
Extent to which culture values the welfare of the individual
versus that of the group
Discussion of Theory
Study based on IBM: 64 national subsidiaries, 116,000 workers
(not just managers), three world regions
Reports averages; does not describe exact individual situations
IBM values may overwhelm national values
Privileged group
Researcher bias? Western stereotypes and culturally biased
conclusions?
Many recent studies validate Hofstede’s dimensions
De Mooij, M. and Hofstede, G. (2011) Cross-Cultural Consumer
Behavior: A Review of Research Findings Journal of
International Consumer Marketing, 23, pp. 181–192, 2011
Copyright �
MYTHS AND RITUALS
A Myth is a Story Containing Symbolic Elements That Express

the Shared Emotions and Ideals Of a Culture.
Mythic Characters and symbols are often used in advertising
*
MythsMyth: a story containing symbolic elements that represent
the shared emotions/ideals of a culture
*
Myths in Modern Popular CultureMyths are often found in
comic books, movies, holidays, and commercialsConsumer fairy
tales: Disney weddingsMonomyths: a myth that is common to
many cultures (e.g. superhero). Many present characters and
plot structures that follow mythic patterns
*
VictoryLiberationThe raising of the flagGood guys coming
making the world safe for democracy Conquering repressive
evilAmerica coming together and struggling against
insurmountable oddsFreedom to buyFreedom to choose the
clothes that free them from the "trends" of the masses Freedom
is a style, not a struggle Is this what Freedom has Bought?
Symbol

Myth &
Advertising
*
RitualsRituals are sets of multiple, symbolic behaviors that
occur in a fixed sequence and that tend to be repeated
periodicallyGroomingGift-givingHolidayRites of passage
*
When you hear the word, ritual, you may think of something
formal and serious like the ritual of taking communion at
church. In reality, consumers have many ritualistic activities.
Having Sunday brunch, going daily to Starbucks, and tailgating
before football games are all examples of commonplace rituals.
Rituals
Businesses supply ritual artifacts (items needed to perform
rituals) to consumersWedding rice, birthday candles, diplomas,
online gift registries
*
Grooming RitualsAll consumers have private grooming
ritualsAid transition from private to public self (or back
again)Inspires confidence, cleanses body of dirtBefore-and-after

phenomenonPrivate/public and work/leisure personal
ritualsBeauty rituals reflect transformation from natural state to
social world or vice versa
*
Gift-Giving RitualsGift-giving ritual: consumers procure the
perfect object, meticulously remove price tag, carefully wrap it,
then deliver it to recipientGift giving is a form of:Economic
exchangeSymbolic exchangeSocial expressionEvery culture
prescribes certain occasions and ceremonies for giving gifts
*
Gift-giving stages
Gestation: procures an item to mark some event
Reformulation: giver and receiver redefine the bond between
them
Presentation: process of gift exchange
The gift-giving ritual proceeds in three distinct stages:
During gestation the giver procures an item to mark some

event. This event may be either structural (i.e., prescribed by
the culture, as when people buy Christmas presents) or emergent
(i.e., the decision is more personal and idiosyncratic).
The second stage is presentation, or the process of gift
exchange. The recipient responds to the gift (either
appropriately or not), and the donor evaluates this response.
In the reformulation stage the giver and receiver redefine
the bond between them (either looser or tighter) to reflect their
new relationship after the exchange. Negativity can arise if the
recipient feels the gift is inappropriate or of inferior quality.
For example, the hapless husband who gives his wife a vacuum
cleaner as an anniversary present. The donor may feel the
response to the gift was inadequate or insincere or a violation of
the reciprocity norm, which obliges people to return the gesture
of a gift with one of equal value.
Harvey Nichols_Avoiding Gift Face
Holiday Rituals- Use ritual artifacts and scripts.
On holidays, we step back from our everyday lives and perform
ritualistic behaviors unique to those occasions.
These special events require tons of ritual artifacts and scripts.
The Thanksgiving holiday script includes serving foods such as
turkey and cranberry sauce that many of us consume only on
that day, complaining about how much we’ve eaten (yet rising
to the occasion to find room for dessert), and (for many) a
postmeal trip to the couch for the obligatory football game.

Holiday Rituals
Consumers perform rituals unique to those occasions
(Christmas; Halloween; Easter)Marketers find ways to
encourage gift givingBusinesses invent new occasions to
capitalize on need for cards/ritual artifactsSecretaries’ Day and
Grandparents’ DayRetailers elevate minor holidays to major
ones to provide merchandising opportunitiesValentine’s Day
*
http://www.whychristmas.com/cultures/
To do…
Read chapter on “Culture”Read the following paper:Craig and
Douglas (2006) “Beyond national culture: implications of
cultural dynamics for consumer research”, International
Marketing Review, 23(3), p. 322-342
*
OBJECTIVE: It is important to understand that culture is like a
society’s personality and it shapes our identities as individuals
Culture includes both abstract ideas, such as values and ethics,
and material objects and services, such as the automobiles,
clothing, food, art, and sports a society produces. Put another
way, it’s the accumulation of shared meanings, rituals, norms,

and traditions among the members of an organization or society.
We simply can’t understand consumption unless we consider its
cultural context: Culture is the “lens” through which people
view products.
Our culture determines the overall priorities we attach to
different activities and products, and it also helps to decide
whether specific products will make it. A product that provides
benefits to members of a culture at any point in time has a much
better chance to achieve marketplace acceptance.
*
*
*
*
*
*
*
*
*
*
*
*

*
*
*
*
*
When you hear the word, ritual, you may think of something
formal and serious like the ritual of taking communion at
church. In reality, consumers have many ritualistic activities.
Having Sunday brunch, going daily to Starbucks, and tailgating
before football games are all examples of commonplace rituals.
*
*
*
The gift-giving ritual proceeds in three distinct stages:
During gestation the giver procures an item to mark some
event. This event may be either structural (i.e., prescribed by
the culture, as when people buy Christmas presents) or emergent
(i.e., the decision is more personal and idiosyncratic).
The second stage is presentation, or the process of gift
exchange. The recipient responds to the gift (either
appropriately or not), and the donor evaluates this response.
In the reformulation stage the giver and receiver redefine
the bond between them (either looser or tighter) to reflect their
new relationship after the exchange. Negativity can arise if the
recipient feels the gift is inappropriate or of inferior quality.
For example, the hapless husband who gives his wife a vacuum

cleaner as an anniversary present. The donor may feel the
response to the gift was inadequate or insincere or a violation of
the reciprocity norm, which obliges people to return the gesture
of a gift with one of equal value.
On holidays, we step back from our everyday lives and perform
ritualistic behaviors unique to those occasions.
These special events require tons of ritual artifacts and scripts.
The Thanksgiving holiday script includes serving foods such as
turkey and cranberry sauce that many of us consume only on
that day, complaining about how much we’ve eaten (yet rising
to the occasion to find room for dessert), and (for many) a
postmeal trip to the couch for the obligatory football game.
*
*
The Self

Last Lecture…
We discussed that:Perception is a three-stage process that
translates stimuli into meaning.Products and persuasion
messages often appeal to our senses, but we won’t be influenced
by most of them.The design of a product today is a key driver of
its success or failure.
*
Lecture Objectives
After this lecture, you should understand why:Self-concept
strongly influences consumer behavior.Products often play a
pivotal role in defining the self-concept.The role of self-esteem
in buying behaviorThe difference between real and actual self
and the role of products in bridging this gapThe role of
extended self in our buying decisions
*
A relatively new concept that regards people and their

relationship to society.
Takes the idea that each human life is unique, rather than a part
of a group.
Accepts the notion that the self is an object to be pampered.
The self is divided into an inner, private self and an outer,
public self.
What is the Self?
Hamachek, Don E. (1992). Encounters with the self, 4th ed. San
Diego, CA, US.
van Dijck, J. (2013) ‘You have one identity’: performing the
self on Facebook and LinkedIn”, Culture & Society 35(2) 199–
215 .
The Self – First Theories
Freudian Theory –much of one’s adult personality stems from a
fundamental conflict between a person’s desire to gratify
her physical needs and the necessity to function as a
responsible member of society.
This struggle is carried out in the mind among three systems:
The ID – about immediate gratification, which operates
according to the pleasure principle. Our basic desire is to
maximise pleasure and avoid pain. Guides a person towards
pleasurable acts without regard for consequences
The SUPEREGO – This is counter to the id. This is also known
as the person’s conscience. It internalises society’s rules
(parents teaching) and prevents the id from seeking selfish
gratification. (a referee in the fight between temptation and

virtue)
The REALITY PRINCIPLE – The ego tried to balance these
opposing forces according to the reality principle, which means
it finds a way to gratify the id that the outside world will find
acceptable. (this is where Freudian theory applies to Marketing)
Lapsley, D. K. and Stey, P. C. (2011). Id, Ego, and Superego, in
V.S. Ramachandran (Ed.), Encyclopedia of Human Behavior,
2nd Ed. Elsevier.
Meissner, W. W. (2000). The self as structural. Psychoanalysis
& Contemporary Thought, 23(3), 373-416.
Self-ConceptSelf-concept: the beliefs a person holds about
his/her own attributes, and how he/she evaluates these
qualitiesAttribute dimensions: content, positivity, intensity,
stability over time, and accuracy
Self-EsteemSelf-esteem: the positivity of a person’s self-
conceptLow self-esteem: think they will not perform wellHigh
self-esteem: think they will be successful and will take risks
Marketing & Self-Esteem

Self-Esteem Advert 2
Self-Esteem Advert 3
Self-Esteem_Fat Models
Self-Esteem Advert
Ideal
Actual
Many consumers engage in the process of impression
management where they work hard to manage what others think
of them by strategically choosing clothing and other cues that
will put them in a good light. Although most people experience
a discrepancy between their real and ideal selves, for some
consumers this gap is larger than for others.
IDENTITY
Real and Ideal SelvesIdeal self: our conception of how

we would like to beActual self: our more realistic appraisal of
the qualities we haveProducts can:Help us reach ideal selfBe
consistent with actual selfImpression management means that
we work to “manage” what others think of us
Lucia Malär, L., Krohmer, H., Hoyer, W.D. and Nyffenegger, B.
(2011). Emotional Brand Attachment and Brand Personality:
The Relative Importance of the Actual and the Ideal Self.
Journal of Marketing: 75(4), pp. 35-52
*
We choose some products because we think they are consistent
with our actual self, while we buy others to help us reach an
ideal standard. We may strategically choose clothing and other
products to show off to others. In other words, we are managing
their impression of us with our product choices.
You Are What You ConsumeSocial identity as individual
consumption behaviors.Products can shape the self – you are
what you consume.Question: Who am I now?Answer: To some
extent, your possessions!Inference of personality based on
consumption patternsConsumers may attach themselves to
product to maintain self-concept
Surbhi, D. (2016). Real vs ideal self: A study of identity
creation and desired images on Facebook, Journal of Applied
Journalism & Media Studies, 5(1), 85-102(18)
Identity Marketing A person exhibits attachment to an object to

the extent that it is used by that person to maintain his or her
self-concept. Objects act as security blankets by reinforcing our
identities, especially in unfamiliar situations.Symbolic self-
completion theory predicts that people who have an incomplete
self-definition, or lack of confidence tend to complete this
identity by acquiring and displaying symbols associated with it
(e.g., men and “macho” products).
Self/Product CongruenceConsumers demonstrate their values
through their purchase behaviorSelf-image congruence models:
we choose products when attributes matches the self
Product Usage
Self-Image
=
Leilei G., Wheeler, C. and Shiv, B. (2008) ,"The “Shaken Self”:
Product Choices As a Means of Restoring Self-View
Confidence", Advances in Consumer Research, 35,, 776-777.
*
Research supports this idea that there is a match between
product usage and self-image. In one study, car owners’ rating
of themselves tended to match their perceptions of their cars. In
another study, observers were able to match photos of male and
female drivers to the cars they drove 70% of the time.
Self/Product Congruence
Product

Self
More overlap - better
you like the product
OBJECTIVE: It is important to understand how products play a
key role in defining the self-concept
Self-image congruence models predict that products will be
chosen when their attributes match some aspect of the self.
These models assume a process of matching between product
image and the consumer self-image.
Although research results are mixed, the ideal self appears to be
more relevant than the actual self as a comparison standard for
highly expressive social products.
The Extended SelfExtended self: external objects that we
consider a part of usLevels of extended self:Individual: personal
possessions (cars, clothing)Family: residence and
furnishingsCommunity: neighborhood or town where you
liveGroup: social or other groups
Belk, R.W. (1988) Possessions and the Extended Self, Journal
of Consumer Research, September p139-68
The ideal – many consumers are motivated to match up to an
ideal appearance and often go to great lengths to change aspects
of their physical selves.Size – the pressure to be slim is

continually reinforced by advertisers and by peers.Image
distortions – many people perceive a strong link between self-
esteem and appearance and some exaggerate this connection
even more and sacrifice greatly to attain what they consider to
be a desirable body image.Cosmetic surgery and body
decoration and mutilation changes a person’s perception of their
body image.
Body Image
Noh, M. and Mosier, J. (2014) Effects of young consumers’
self-concept on hedonic/utilitarian attitudes towards what is
‘cool’, Journal of Fashion and Marketing and Management,
9(4), 450–467.
Law, D., Wong, C. and Yip, J. “2012” How does visual
merchandising affect consumer affective response? An intimate
apparel experience, European Journal of marketing, 46(1/2),
pp.112 – 133.
Ideals of BeautyFemale: high forehead, full lips, short jaw,
small chin and noseMale: Heavy lower face, slightly above
average height and prominent brow.Models becoming
thinner/more muscular over last 3 decades (waif
look)Consumers willing to endure to achieve ideal e.g.corsets,
high heels, waxing, cosmetics, health clubsMale/Female ideal
different for men than for women/Men
Noh, M. and Mosier, J. (2014) Effects of young consumers’
self-concept on hedonic/utilitarian attitudes towards what is
‘cool’, Journal of Fashion and Marketing and Management,
9(4), 450–467.

Beauty Ideals over time
Beauty ideals have shifted over time. A study of 50 years of
Playboy centerfolds shows that women have become less
shapely and more androgynous since Marilyn Monroe graced the
first edition.
The ideal body type of Western women has changed radically
over time, and these changes have resulted in a realignment of
sexual dimorphic markers—those aspects of the body that
distinguish between the sexes.
Working on the BodyFattismCosmetic surgeryBody decoration
and mutilationBody piercing
Society is obsessed with weight. Though it began as America’s
obsession, the cultural priority on thinness is spreading to other
countries. Still, even with the ideal of thin, the U.S. consumer
today is larger than 60 years ago. The typical woman’s body is
not as petite as it used to be.
Consumers increasingly choose to have cosmetic surgery to
change a poor body image or to enhance appearance. These may
include breast augmentation, liposuction, nose jobs, face lifts,
and other enhancements.
Decorating the self can serve several purposes. Some of these
are to:Distinguish group members from nonmembersPlace the
individual in the social organizationPlace the person in a gender
categoryEnhance sex-role identificationIndicate desired social
conductIndicate high status or rankProvide a sense of security
*

Virtual IdentityPeople are assuming virtual identities in
cyberspaceAvatars represent visual identity
To do…Read Chapter on “The Self”Read the following
article:Belk, R.W. (1988) Possessions and the Extended Self,
Journal of Consumer Research, September p139-68
SELF CONCEPT and self-esteem
How would you define self-concept and self-esteem? How are
the two concepts related? How do marketers use self-esteem sell
products?
Self concept: the beliefs of a man or women have their own
attributes and how they evaluates these qualities. Self concept
always come with five dimensions: content, positivist, intensity,
stability over time, and accuracy.
AGE
Explain the differences in the psychological makeup of
consumers who are a) Gen X and b) Gen Y. How do these
differences impact the way marketers target these consumers?
Give examples to support your answer.
Income and Social class
Is wealth财富 or social class the better predictor of consumer

behaviour? Use theories and examples to support your answer.
CULTURE
Define “Culture”. What are its characteristics? Discuss why it
is important to study culture in order to understand consumer
behaviour. Please use examples to support your answer.
AIDA
Explain the AIDA model and its significance in the adoption of
a new product by consumers.
Example: one Chinese restusrants 汉朝伯明翰新开的火锅店《熬》
1.意识：在开门四个月前进行公关活动，推广奖励，特色菜介绍
通过微信平台，推行一人推荐一人的优惠活动并通过DM活动加强针对性的客户
群体。
2.兴趣：执行直接邮寄活动，免费咨询或试吃完成。他们用研究来支持这一点，
因为如果报价和产品质量是令人信服的，客户是忠诚的。
3.欲望：接近的开幕，他们进行了当地的独家发布活动，通过当地媒体和社交媒
体进行广告宣传。这为“想要邀请的人”创造了一个当地的嗡嗡声，并兴奋地看到
这家餐馆的开张。
4.行动：明确CTAS定位在Facebook网站
微博（电话预约），网站（致电预订）和本地广告（打电话接受折扣或报价。
案例研究没有强调保留，虽然有很多方法可以提高邮件列表或社交平台的忠诚度
，这些邮件列表或社交平台提供有关优惠和活动的消息，产品范围的折扣，根据
访问频率的折扣等。
CUSTOMER BEHAVIOUR
Motivation and values
What are values and what role do they play in consumer
*

*
CONSUMER BEHAVIOUR
AGE IN CONSUMPTION
Dr L. Spiteri Cornish
Last Lecture we discussed:That it’s important for marketers to
recognize that products can satisfy a range of consumer
needs.That the way we evaluate and choose a product depends
upon our degree of involvement with the product, the marketing
message, and/or the purchase situation.
*
After this lecture, you should understand that There are 6 main
age segments for marketersPeople of about the same age have
many things in common. Tweens is a recent age cohort but one
that is become more and more powerful.Baby boomers continue
to be the most powerful age segment economically. Seniors will
increase in importance as a market segment.
*

Age exerts a significant influence on identity
Consumers undergo predictable changes in their values,
lifestyles, and consumption patterns as they move through their
life cycle
Possessions let consumers identify with others of a certain
age/life stage
Marketers need to know how to communicate with members of
an age group in their own language.
*
*
*
You have probably heard these terms before. Marketers and
other researchers divide the population into groups depending
on the year they were born. There are many differences
between these age subcultures, which will be explored in the
following slides.
*

*
Roughly 65 years and olderTraditionally neglected by
marketersLarge proportion of population: Growing segment due
to better medical care, declining birthrate and the aging of the
large baby boomer segmentMore affluent than previous
seniorsPerceived age more important than actual age
(Chronological vs cognitive age)Fastest growing group of
Internet usersThree segments by ageThe Young-Old (65-74)The
Old (75-84)The Old-Old (85 and older)
Coates, Julie. Generational learning styles. River Falls, WI:
Lern books, 2007.
The older consumer is an important and growing segment.
People are living longer and are healthier and more active at an
older age. Many people tend to clump seniors together when, in
fact, there are several segments within this group. The young-
old tend to travel and purchase at a very high rate.
*
Vuori, S., & Holmlund-Rytkönen, M. (2015). 55+ people as
internet users. Marketing Intelligence & Planning, 23(1), 58-76.
Older consumers are very active online and are more connected
than you might think at first. This graph shows the most
common reasons that seniors use the internet and the online
activities in which they engage.
*

Women outnumber menTend to be brand loyalLower
information processing skills (Impaired senses); Simpler, more
schematic processingTruth effect (trusting)Shop at discount
storesFairly resistant to the adoption of new productsHate
queuing
*
Most older people lead more active, multidimensional lives than
we assume
https://www.youtube.com/watch?v=dQmaC_dMGVgOlder
consumers are finished with many financial obligations
Most own their own homes
Child-rearing costs are over“We’re Spending Our Children’s
Inheritance” Sector important for health and medical products
in storeInterest in home and leisure based productsGrandparent
consumers
Lu, Y., & Seock, Y. K. (2008). The influence of grey
consumers' service quality perception on satisfaction and store
loyalty behavior. International Journal of Retail & Distribution
Management, 36(11), 901-918.
*
Ads with positive older role modelsTraditional brands –
nostalgia.Favour informative ad messages over imagerySimple
messages - bigger, louder and slowerAvid readers of mediaStore
designs to make life easierRespond to discountsMobility,

parking and transport important.Offer higher level of service
Mumel, D., & Prodnik, J. (2005). Grey consumers are all the
same, they even dress the same-myth or reality?. Journal of
Fashion Marketing and Management: An International Journal,
9(4), 434-449.
*
Born between 1946 – 1964More than 40 percent of the adult
populationMotivated consumersNot anxious to retire and handle
it as:
Opportunity for a new start
A continuation of preretirement life
Unwelcome disruption
Transition to old age
The baby boomers have a lot of purchasing power due to their
size and their propensity to purchase for themselves, others, and
their homes. They are mixed on their views of retirement and
will therefore purchase in different ways during these golden
years.
*
Very idealistic - banned together and walked through life with
their fists held highGeneration gap occurred between them and
their parentsCaptured phrases like “why be normal” and
“question authority”They weren’t friendly toward authority
figuresDid not get along with their parents and swore they

would not raise their kids like they were raised
Coates, Julie. Generational learning styles. River Falls, WI:
Lern books, 2007.
Influential segment because of size and buying powerValue
individualism and freedomPeak earning years. Planning to work
till they’re 70!Lived through political, social and fashion
changesTrying to stay young and healthyMore educated/open-
minded/diverse than previous generations.Sceptical of
authoritySelf-obsessedInterested in time-saving convenience
Parment, Anders. "Generation Y vs. Baby Boomers: Shopping
behavior, buyer involvement and implications for retailing."
Journal of retailing and consumer services 20.2 (2013): 189-
199.
*
*
Heavy consumers of financial servicesLike retro products and
nostalgiaDelayed leaving school, getting married, buying a
home, child rearing, middle-age, retirement! Growing
Up!Concern about safety for the familyAgeing populationYouth
preservation products popularPlayful and nostalgic ad
messagesUse of selective mediaBaby Boomers will spend and
keep spending!
Parment, A. (2013). Generation Y vs. baby boomers: Shopping
behavior, buyer involvement and implications for retailing.
Journal of Retailing and Consumer Services, 20(2), 189-199.

*
Target for cars, housing, travel, entertainment, recreation
equipment, motor homesHeavy consumers of financial
servicesGourmet fast foodComfortable clothingAnti-aging
products
Power in Numbers.They created a revolution in style, politics,
and consumer attitudes.Consumers aged 45 to 54 spend the most
of any age on food, apparel, and retirement programsone of the
most affluent sections of the population, controlling over $7
trillion in wealth
*
Reisenwitz, T. , and Rajesh I. . "A comparison of younger and
older baby boomers: investigating the viability of cohort
segmentation." Journal of Consumer Marketing 24.4 (2007):
202-213.
*
Born 1965–1982
A Lost Generation… A Nomadic Generation…
Half the Size of the Baby Boomers

Core Values
Dedication
Hard Work
Conformity
Law and Order
Patience
Delayed reward
Duty before pleasure
Adherence to rules
Honor
Divorce reached an all-time high
Single-parent families became the norm
Latch-key kids were a major issue of the time
Children not as valued – looked at as a hardship
Families spread out (miles apart)
Family size = 1.7 children (many only-children)
Perception of the world as “unsafe”
Average 10 year old spent 14 ½ minutes a day with a significant
adult role model
Mitchell, M. ; McLean, P. and Turner, G. (2005): Understanding
Generation X... Boom or Bust Introduction. Business Forum
27.1, pp. 26-30.
This is the conscientious, extremely pragmatic, self-sufficient
generation that has a ruthless focus on the bottom-line.
Born and raised at a time when children were at the bottom of

our social priorities, Gen Xers learned that they could only
count on one thing - themselves. As a result, they are very
"me" oriented.
They are not active voters, nor are they deeply involved in
politics in general.
Are hands-on – like to get physically involved
Desire stable families, save portion of income, and view home
as expression of individuality.Less materialisticFull of angst
(like hard rock, rap, tattoos)EntrepreneurialDelayed marriage
Mitchell, M. ; McLean, P. and Turner, G. (2005): Understanding
Generation X... Boom or Bust Introduction. Business Forum
27.1, pp. 26-30.
*
High spending powerImportant segment for many products (e.g.
fast food, clothing, jeans, trainers, music)Born and bred on TV -
cynicalRespond to marketing that reflects own values and
attitudesCult TV shows (The A-team, Star Trek)Communication
via Internet promotion sites
Williams, Kaylene C., and Robert A. Page. "Marketing to the
generations." Journal of Behavioral Studies in Business 3 (1).
Călin Gurău, (2012) "A life‐stage analysis of consumer loyalty
profile: comparing Generation X and Millennial consumers",
Journal of Consumer Marketing, Vol. 29 Iss: 2, pp.103 - 113
.
*

*
*
Generation Y
Echo Boom
Net Generation
Millennials
*
Much is expected of the children born between 1982 and 1998, a
cohort variously called :“Millennial” - children of the new
“millennium” Generation Y - follow Gen X Net Generation -
internet, cell phones, computers, infinitely comfortable with
technologyThe Echo Boom - “population momentum”
Howe, Neil and William Strauss. 2000. Millennials Rising: The
Next Great Generation.
Vintage Books: New York
Lancaster, Lynne C. and David Stillman. 2002. When
Generations Collide. HarperCollins Publishers, Inc.: New
York.
O’Briant, Don. 2003. “Millennials: The Next Generation.” The
Atlanta Journal Constitution. (September).
Paul, Pamela. 2001. “Getting Inside Gen Y.” American
Demographics. Vol. 23 Issue 9, pp. 42-50.
Tapscott, Don. 1998. Growing Up Digital: The Rise of the Net

Generation. McGraw- Hill: New York.
Zemke, Ron, Claire Raines and Bob Filipczak. 2000.
Generations at Work: Managing the Clash of Veterans,
Boomers, Xers, and Nexters in Your Workplace. AMA
Publications: Broadway, New York.
Are the Millennials Special?
*
*The term Millennials is usually considered to apply to
individuals who reached adulthood around the turn of the 21st
century. Neil Howe and William Strauss, authors of the book
“Generations: The History of America's Future, 1584 to 2069”
(1991) are credited with coining the term.The precise
delineation varies from one source to another:Howe and Strauss
define the Millennial cohort as consisting of those born between
1982 and 2004.According to Iconoclast, a consumer research
firm, the first Millennials were born in 1978.Newsweek
magazine reported that the Millennial generation was born
between 1977 and 1994.In separate articles, the New York
Times pegged the Millennials at 1976-1990 and 1978-1998.A
Time magazine article placed the Millennials at 1980-2000.
*1 in 5 has at least one parent who is an immigrantMost diverse
generation everHave the best educated mothers in historyHave
better educated parents Came out of the infertility era – were
very wanted as childrenBorn to older parents and raised in
smaller families (lots of only children) – many have never
shared a roomMany raised by single parent and/or working

motherValue fitting in/teamworkAre as interested in where they
live as what they do – so cities are working to attract
themBoomerang kids?
Expect what they pay forEveryone should be concerned that
they are satisfied and happyIf they are not happy with your
answer, they will go over your headExpect companies to bend
over backwards to please themMultitaskers with mobile phones,
music downloads, IM on Internet: Been plugged in since they
were babies; Have had mobile phones since they were
childrenExpect technology to be freeMost of many billion
dollars that millennials spend go toward “feel good”
productsAre much less brand loyalThink it is cool to be smart
Hewlett, S. A., Sherbin, L., & Sumberg, K. (2009). How Gen Y
and boomers will reshape your agenda. Harv Bus Rev, 87(7-8),
71-6.
Jackson, V., et al. (2011). Mall attributes and shopping value:
Differences by gender and generational cohort. Journal of
Retailing and Consumer Services, 18(1), 1-9.
Lazarevic, V., (2012). Encouraging brand loyalty in fickle
generation Y consumers. Young Consumers, 13(1), 45-
61.
*
Millennials are becoming parents — and it's creating
shockwaves in the retail, restaurant, automotive, and home-
buying industries.

The 18- to 35-year-old generation is notorious for renting
homes instead of buying, spending on experiences over apparel,
and dining at restaurants instead of at home.
But now – more than 80% of the generation will become
parents in the next decade, according to a study by marketing
platform Crowdtap.
Millennials currently spend $170 billion a year and are
projected to spend $200 billion annually starting in 2017 and
$10 trillion in their lifetimes, according to a study by
Exponential.
(Business Insider, 2016:
https://flipboard.com/@flipboard/flip.it%2F_ThQfr-everything-
you-know-about-millennial-sp/f-
04fd95c24e%2Fbusinessinsider.com
http://www.inc.com/justin-bariso/why-everything-you-know-
about-millennials-is-about-to-change-infographic.html
)
*
In 2016, the Department for Work and Pensions (DWP)’s
surveyed more than 20,000 households in the UK. It found
that:Britain's vote to leave the European Union will leave
economic uncertainty and reduced opportunities for young
people.While incomes rose by 2% since 2008, most of the
wealth went to the older generation. The income
disparity between age brackets means that Millennials are
suffering- people 22 to 30 years old — income fell by 7%.
Millennials have stagnant wages and higher living costs, they
are also struggling to get into the jobs markets, despite record
low unemployment,.Millennials and those aged up to 60, do not
have subsidies like older people. They are less likely to own a

home, have savings, and therefore pour most of their money into
rent, transport, utility bills, and food.
http://uk.businessinsider.com/ifs-income-poverty-report-young-
people-versus-old-people-and-brexit-impact-2016-
7?r=US&IR=T
*
“Teenage” first used to describe youth generation in
1950sYouth market often represents rebellionFirst to grow up
with internet, mobile technology and a 500-channel TV universe
in their homes
*
Four basic conflicts common among all teens:Autonomy versus
belonging: break from family but attach to peersRebellion
versus conformity: rebel against social standards but want to be
accepted by societyIdealism versus pragmatism: view adults as
hypocrites and see themselves as sincereNarcissism versus
intimacy: obsessed with own needs but want to connect with
others
Dotson, M. and Hyatt, E. (2005) "Major influence factors in
children's consumer socialization", Journal of Consumer
Marketing, 22(1), pp.35 - 42

*
*
Who is Gen Z? Who is Gen Z II?Who is Gen Z III?
*
*The brands and influences Gen Z can't live without
Link to PDF
*
Relatively newly defined cohort More affluent than ever
beforeHighly influential in household decision makingVariety
seekers – not very brand loyalBrand perceptions built up now
can persist into adulthood.Peer pressure is critical – belonging
is essential.Exhibit characteristics of both children and
adolescents
Lundby, E. (2011) Consumer research on tweens: putting the

pieces together. Young Consumers: Insight and Ideas for
Responsible Marketers, 12(4): 326-336
*
New products and product updates needed fast.Ethics are
important – they are childrenPeer-to-peer marketing more
important (viral)24/7 availability essentialInteractive
communications more important
Lundby, E. (2011) Consumer research on tweens: putting the
pieces together. Young Consumers: Insight and Ideas for
Responsible Marketers, 12(4): 326-336
*
Is it ethical for marketers of high-priced goods, an iPhone for
example, to target tweens?
*
There are many consumer groups who feel that their young
tweens are too heavily marketed to by clothing, entertainment,
and technology firms. Do you agree?
*
Is it ethical for marketers to market beauty products to tweens?
*

There are many consumer groups who feel that their young
tweens are too heavily marketed to by clothing, entertainment,
and technology firms. Do you agree?
*
204MKTJanuary 2013Coventry University
Coventry Business School
204MKT Consumer Behaviour
Instructions to candidates
Time allowed:
2 hours
Answer FOUR questions out of six.
You may take this question paper away at the end of the
examination: please keep it in a safe place for future reference.
Please answer FOUR questions.
1. Define “Culture”. What are its characteristics? Discuss why
it is important to study culture in order to understand consumer
behaviour. Please use examples to support your answer. (25%)

2. Explain the AIDA model and its significance in the adoption
of a new product by consumers. (25%)
3. Explain the differences in the psychological makeup of
consumers who are a) Gen X and b) Gen Y. How do these
differences impact the way marketers target these consumers?
Give examples to support your answer. (25%)
4. Is wealth or social class the better predictor of consumer
(25%)
5. What are values and what role do they play in consumer
(25%)
6. What components make up a consumer’s self-concept?
Explain each concept briefly. What is meant by the extended
self and what role does consumption play in this concept? (25%)
PAGE
Continued/.....

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