Copyright © 2001 by Harcourt, Inc. All rights reserved. 9-1 CHAPTER NINE INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Text by Profs. Gene Boone & David Kurtz Multimedia Presentation by Prof. Milton Pressley The University of New Orleans

Copyright © 2001 by Harcourt, Inc. All rights reserved. 9-2 CHAPTER OBJECTIVES Differentiate between customer behavior and consumer behavior Explain how marketers classify behavioral influences on consumer decisions Identify the interpersonal determinants of consumer behavior Identify the personal determinants of consumer behavior Outline the steps in the consumer decision process Differentiate among routinized response behavior, limited problem solving, an extended problem solving

Copyright © 2001 by Harcourt, Inc. All rights reserved. 9-3 CUSTOMER VS. CONSUMER BEHAVIOR Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products Consumer behavior: the process through which the ultimate buyer makes purchase decisions © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved. 9-4 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Culture: values, beliefs, preferences, and tastes handed down from one generation to the next © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved. 9-5 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Core Values in the U.S. Culture While some cultural values change over time, basic core values do not Examples of American core values include: Importance of family and home life The work ethic Desire to accumulate wealth © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved. 9-6 Figure 9.1: Core Value: the Importance of Family

Copyright © 2001 by Harcourt, Inc. All rights reserved. 9-7 Milton Bradley Parker Brothers Emphasizing the Importance of Family and Home Life Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-8 Listerine This ad from the early 1900s, which states “Like every woman, her primary ambition was to marry...” demonstrates how culture changes over time. Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-9 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences International Perspective on Cultural Influences Cultural differences are particularly important for international marketers Successful strategies in one country often cannot extend to other international markets because of cultural variations © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Benetton This Firm Has Been Successful Extending Strategies Across Cultural and National Boundaries Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-11 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Subcultures: subgroup of culture with its own, distinct modes of behavior Subcultures can differ by: Race Nationality Age Religion Geographic distribution © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Benetton Also Has Been Successful Extending Strategies Across Subcultures Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-13 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR African-American buying power is rising rapidly compared to U.S. consumers in general Family structures may differ for African- American consumers, creating differences in preferences for clothing, music, cars, and many other products Cultural Influences: Profile of African-American Consumers © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.2: Advertising Aimed at Young African- American Families

Copyright © 2001 by Harcourt, Inc. All rights reserved Pontiac Sunfire Advertisement Targeted at Young African-American Consumers Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-16 Charles Schwab Designed Culturally Sensitive Investment Programs Specifically for African- Americans Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-17 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR The 30 million Hispanics in the U.S., coming from a wide range of countries, are not homogenous There are important differences in acculturation The Hispanic market is large and fast-growing Hispanics tend to be younger to been the general U.S. population Hispanics are geographically concentrated Cultural Influences: Profile of Hispanic Consumers © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.3: Spanish Language Ad Targets Partially Unacculturated Hispanics

Copyright © 2001 by Harcourt, Inc. All rights reserved Lullaby Club Advertisement Reflecting the Fact That Hispanic Parents Typically Spend More on Their Children Than Parents of Other Subcultures Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-20 Those Who Prefer Spanish-Language Programs Can Visit Univision’s Website for Detailed Information About Such Programming Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-21 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Marketing to Asian-Americans presents many of the same challenges as marketing to Hispanics Asian-Americans are spread among culturally diverse groups, including Chinese, Japanese, Indians, Koreans, Filipinos, and Vietnamese --many retaining their own languages Cultural Influences: Profile of Asian Consumers © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved GTE GTE Promotes Its Telecommunication Services to Asian-American Consumers With Ads in Their Native Languages Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-23 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Social Influences Norms: are the values, attitudes, and behaviors that a group deems appropriate for its members Status: is the relative position of any individual member in a group Roles define behavior that members of a group expect of individuals who hold specific positions within the group © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.4: Group Membership Influencing Behavior and Purchase Decisions

Copyright © 2001 by Harcourt, Inc. All rights reserved Jordache Advertisement Illustrating the Influence of Friendship Groups on Purchase Decisions Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-26 INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Social Influences The Asch Phenomenon: the effect of a reference group on individual decision-making © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Social Influences Reference groups: groups whose value structures and standards influence a person’s behavior © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Social Influences Social classes: groups whose rankings are determined by occupation, income, education, family background, and residence location © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved. Class Discussion Class Discussion Give an example of how you have seen social class (or perceived social class) operating in the marketplace. © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Social Influences Opinion leaders: individuals likely to purchase new products before others and then share the resulting experiences and opinions by word-of- mouth © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.5: Alternative Channels for Communications Flow

Copyright © 2001 by Harcourt, Inc. All rights reserved INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Social Influences Family Influences Four Categories of Household Decision- making Autonomic Husband-dominant White-dominant Syncratic © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.6: A Time-Saving Product

Copyright © 2001 by Harcourt, Inc. All rights reserved INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR Cultural Influences Social Influences Family Influences Children and teenagers in family purchases Growing numbers are assuming responsibility for family shopping They also influence what parents buy They represent over 50 million consumers in their own right © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.7: Ad Targeted at Children and Teens

Copyright © 2001 by Harcourt, Inc. All rights reserved CIBA Vision Advertisement Recognizing the Role of Teenagers in Purchase Decisions Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-37 PERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

Copyright © 2001 by Harcourt, Inc. All rights reserved PERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

Copyright © 2001 by Harcourt, Inc. All rights reserved Needs and Motives Need: an imbalance between a consumer’s actual and desired states Motives: inner states that direct a person toward the goal of satisfying a felt need © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Maslow’s Hierarchy of Needs Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-41 Table 9.1.a: Marketing Strategies Based on Maslow’s Needs Hierarchy Physiological Needs Products Vitamins, herbal supplements, medicines, food, exercise equipment, fitness clubs Marketing themes Church’s Fried Chicken—“Gotta love it.” Campbell’s Soups—“M’m! M’m! Good!” Campbell’s Healthy Request Soups—“M’m! M’m! Good!... and Healthy!” Post Cereals—“Commitment to Quality. ” Safety Needs Products Cars and car accessories, burglar alarm systems, retirement investments, insurance, smoke and carbon-monoxide detectors, medicines Marketing themes Fireman’s Fund insurance—“License to get on with it.” American General Financial Group—“Live the life you’ve imagined.” Shell Oil—“Count on Shell.” Bayer—“Changing the world with great care.” Volvo—“Protect the body. Ignite the soul.”

Copyright © 2001 by Harcourt, Inc. All rights reserved Tyco Tyco Addresses Safety Needs Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-43 Belongingness Products Beauty aids, entertainment, clothing, cars Marketing themes Cadillac Seville—“It’s what’s next.” Blue Ridge Knives—“Follow the leader.” Lawson Software—“Leading-edge technology without the attitude.” Egift online retailer—“Great gifts for everyone... starting with you.” Esteem Needs Product Clothing, cars, jewelry, liquors, hobbies, beauty spa services Marketing themes Saks Fifth Avenue—“Defining Style.” Van Cleef & Arpels—“The pleasure of perfection.” Serta—“We make the world’s best mattress.” Jenn-Air kitchen appliances—“The sign of a great cook.” Self Products Education, cultural events, sports hobbies, luxury goods Marketing themes Microsoft—“Where do you want to go today? Baccarat Crystal—“Beauty has its reasons.” Grand Lido Resorts—“Lost and found for the soul.” Gauthier jewelry—“Wear art.” Table 9.1.b: Marketing Strategies Based on Maslow’s Needs Hierarchy (Cont’d) Actualization

Copyright © 2001 by Harcourt, Inc. All rights reserved Lindblad Special Expeditions Service Aimed at Satisfying a Self-actualization Need Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-45 PERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

Copyright © 2001 by Harcourt, Inc. All rights reserved PerceptionsPerceptions Perception: the meaning that a person attributes to incoming stimuli gathered through the five senses – sight, hearing, touch, taste, and smell © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved PerceptionsPerceptions Perceptual screens: the filtering processes through which all inputs must pass Perceptual Screens © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.8: Breaking Through Perceptual Screens

Copyright © 2001 by Harcourt, Inc. All rights reserved Wallpaper Council Breaking Through Clutter in Print Ads Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-50 Crazy Bones Broke Through Consumers’ Perceptual Screens by Hiring Vendors Who Sold Crazy Bones to Children on School Grounds in Europe – a Strategy Not Allowed in the U.S. Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-51 PerceptionsPerceptions Subliminal Perception: subconscious receipt of information Subliminal Perception Perceptual Screens © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved PERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

Copyright © 2001 by Harcourt, Inc. All rights reserved AttitudesAttitudes Attitudes: a person’s enduring favorable or unfavorable evaluations, emotional feelings, or action tendencies toward some object or data Attitude components: include the cognitive, affective, and behavioral © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved AttitudesAttitudes Marketers have two choices to lead prospective buyers to adopt a favorable attitude toward their product: Attempt to produce consumer attitudes that will motivate the purchase of a particular product Evaluate existing consumer attitudes and then make the product characteristics appeal to them © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved AttitudesAttitudes Modifying the Components of Attitude Attitudes frequently change in response to inconsistencies among the three components The most common inconsistencies results when new information changes the cognitive or affective components of an attitude Marketers can work to modify attitudes by providing evidence of product benefits and by correcting misconceptions © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.9: Modifying Consumer Attitudes

Copyright © 2001 by Harcourt, Inc. All rights reserved Taster’s Choice Offering a Free Sample to Change Attitudes About Instant Coffee Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-58 PERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

Copyright © 2001 by Harcourt, Inc. All rights reserved LearningLearning Learning: an immediate or expected change in behavior as a result of experience Drive: strong stimulus that impels action Cue: any object in the environment that determines the nature of a consumer’s response to a drive Reinforcement: reduction in a drive that results from an appropriate consumer response © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.10: Reinforcing a Buying Behavior

Copyright © 2001 by Harcourt, Inc. All rights reserved Lands’ End Overcomes Reluctance to Purchase Clothing by Mail- order With Many Helpful Features Like Their “Library” on Its Website Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-62 LearningLearning Applying Learning Theory to Marketing Decisions Shaping: process of applying a series of rewards and reinforcements to permit more complex behavior to evolve over time © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Prego Using a Discount Coupon to Shape Behavior Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-64 PERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

Copyright © 2001 by Harcourt, Inc. All rights reserved Self-Concept Theory Self-Concept: person’s multifaceted picture of himself or herself, composed of the real self, self-image, looking-glass self, and ideal self © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved THE CONSUMER DECISION PROCESS Figure 9.11: An Integrated Model of the Consumer Decision Process

Copyright © 2001 by Harcourt, Inc. All rights reserved. Consumers complete a step-by-step process when making purchase decisions High-involvement purchase decisions are those with high levels of potential social or economic consequences Low-involvement decisions are routine purchases that pose little risk to the consumer Search Alternative Evaluation Purchase Decision Purchase Act Post- purchase Evaluation Problem Opportunity Recognition THE CONSUMER DECISION PROCESS © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved. THE CONSUMER DECISION PROCESS Consumer becomes aware of a significant discrepancy between the existing situation and the desired situation Motivates the individual to achieve the desired state of affairs Problem Opportunity Recognition © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Don’t Have a Clue Where to Start? The U.S. Government Maintains a Website That Serves As a Gateway for Consumer Information Resources That Many Consumers Find Helpful Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-70 “BotSpot” Provides Information on Intelligent or Shopping Agents (Robots) That Aid in Shopping on the Internet. Copyright © 2001 by Harcourt, Inc. All rights reserved.

THE CONSUMER DECISION PROCESS Consumer gathers information related to their attainment of the desired state of affairs Identifies alternative means of problem solution May cover internal or external sources of information Brands that a consumer actually considers buying before making a purchase decision are known as the evoked set Search Problem Opportunity Recognition © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Advertisement Using Penn and Teller to Attempt to Bring Fidelity Powerstreet into Consumers’ Evoked Set Powerstreet Print Advertisement Using Penn and Teller to Attempt to Bring Fidelity Powerstreet into Consumers’ Evoked Set Copyright © 2001 by Harcourt, Inc. All rights reserved.

Evoked Set Model All Brands All Brands Copyright © 2001 by Harcourt, Inc. All rights reserved.

Evoked Set Model All Brands All Brands Unknown Brands Unknown Brands Known Brands Known Brands Copyright © 2001 by Harcourt, Inc. All rights reserved.

Evoked Set Model All Brands All Brands Unknown Brands Unknown Brands Known Brands Known Brands Overlooked Brands Unacceptable Brands Acceptable Brands Evoked Set Copyright © 2001 by Harcourt, Inc. All rights reserved.

Evoked Set Model All Brands All Brands Unknown Brands Unknown Brands Known Brands Known Brands Overlooked Brands Unacceptable Brands Acceptable Brands Rejected Brands Rejected Brands Purchased Brand Evoked Set Inert Set Copyright © 2001 by Harcourt, Inc. All rights reserved.

THE CONSUMER DECISION PROCESS Consumer evaluates the evoked set Actually, it’s difficult to completely separate the second and third steps, since some evaluation takes place as the search progresses Outcome of the evaluation stage is the choice of a brand or product (or possibly a decision to renew the search) Evaluative criteria: features that a consumer considers in choosing a model alternatives Evaluative criteria are important in this stage Search Alternative Evaluation Problem Opportunity Recognition © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.12: An Attempt to Influence Evaluative Criteria

Copyright © 2001 by Harcourt, Inc. All rights reserved During the Decision Making Stage, Some Consumers Look to the U.S. Government’s Consumer Information Center for Guidance Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-80 More and More Frequently, Consumers are Using Website’s like Crutchfield Electronics' “Info Center” to Help Make Buying Decisions Copyright © 2001 by Harcourt, Inc. All rights reserved.

9-81 During the Decision Making Stage, Consumer World Can Prove to Be a Useful Tool Copyright © 2001 by Harcourt, Inc. All rights reserved.

THE CONSUMER DECISION PROCESS Consumer narrows the alternatives down to one Next, the purchase location is decided Search Alternative Evaluation Purchase Decision Problem Opportunity Recognition © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved. THE CONSUMER DECISION PROCESS Consumers tend to choose outlets by considering such characteristics as location, price, assortment, personnel, store image, physical design, and services Some choose the convenience of in-home shopping Increasingly, the www is the outlet of choice for many consumers Search Alternative Evaluation Purchase Decision Purchase Act Problem Opportunity Recognition © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved. THE CONSUMER DECISION PROCESS After the purchase, consumers are either satisfied or experience post-purchase anxiety Post-purchase anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes is called cognitive dissonance Search Alternative Evaluation Purchase Decision Purchase Act Post- purchase Evaluation Problem Opportunity Recognition © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Figure 9.13: Relieving Cognitive Dissonance

Copyright © 2001 by Harcourt, Inc. All rights reserved Classifying Consumer Problem- Solving Processes Routinized Response Behavior Purchases made routinely by choosing a preferred brand or one of a limited group of acceptable brands Examples: regular brand of a soft drink, orange juice, or alkaline batteries © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Classifying Consumer Problem- Solving Processes Routinized Response Behavior Situation where the consumer has previously set evaluative criteria for a particular kind of purchase but then encounters a new, unknown brand or item Example: Consumer considers trying a new brand of shampoo or selects a roast for a special dinner Limited Problem Solving © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved Classifying Consumer Problem- Solving Processes Routinized Response Behavior Results when brands are difficult to categorize or evaluate High-involvement purchase decisions usually require extended problem solving Example: purchase of a new car, new home, or baby furniture Limited Problem Solving Extended Problem Solving © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved CONSUMER BEHAVIOR: STRATEGIC IMPLICATIONS Understanding consumer behavior can help : Design a more efficient marketing strategy Persuade consumers to retain a brand in their evoked set Understand that more than one person is often involved in the decision process... and help to incorporate the implications of this into strategic and operational decisions © PhotoDisc

Copyright © 2001 by Harcourt, Inc. All rights reserved As Described in the Book, Townsley Cosmetics Has Used Its Knowledge of the Consumer Decision Process to Develop a Very Effective Marketing Strategy for Preteen Girls Copyright © 2001 by Harcourt, Inc. All rights reserved.