CHAPTER 4 PERSPECTIVES ON CONSUMER BEHAVIOR Chapter Overview The purpose of this chapter is to examine the field of consumer behavior and to demonstrate how knowledge and understanding of the consumer can be used in developing promotional strategies and programs. This chapter utilizes the basic consumer decision making process model as a framework for examining consumer behavior. The chapter takes the student through the various stages of this model and discusses what occurs at each and how advertising and other forms of promotion can be used to influence consumer decision making. The influence of various psychological concepts or influences such as motivation, perception, attitudes and integration processes are examined at the appropriate stages of the decision process model. Attention is also given to the three major variations in the consumer decision making process: routine response behavior, limited problem solving and extended problem solving. Consideration is given to how advertising and promotional strategies may differ depending on the type of decision making process consumers are likely to be using. Learning Objectives 1. To understand the role that consumer behavior plays in the development and implementation of advertising and promotional programs. 2. To understand the consumer decision-making process and how it varies for different types of purchases. 3. To understand various internal psychological processes, their influence on consumer decision making, and implications for advertising and promotion. 4. To recognize various approaches to studying the consumer learning process and their implications for advertising and promotion. 5. To understand external factors such as culture, social class, group influences, and situational determinants and how they affect consumer behavior. 6. To understand alternative approaches to studying consumer behavior. Chapter and Lecture Outline I. AN OVERVIEW OF CONSUMER BEHAVIOR A. A brief introduction to the field of consumer behavior and an indication of the increased importance that this domain of study has assumed in marketing would be a good starting point. The instructor should discuss the fact that to operationalize the marketing concept it is critical that the marketer have an understanding of some of the consumer decision making processes. Likewise, to effectively design effective advertising and promotions programs, these processes must be understood and considered. It is important to point out that the development of successful marketing communication programs begins with understanding why consumers behave as they do. Those who develop advertising and other promotional strategies begin by identifying relevant markets and then analyzing the relationship between target consumers and the product/service or brand. 49 B. Consumer Behavior can be defined as the process and activities that people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires. The decision process model should be introduced and a brief description given of the five stages: Problem recognition Information Search Alternative Evaluation Purchase Decision Post purchase Evaluation You should let the students know that this model will be used as a framework for analyzing the consumer decision making process. You will be going through the various stages of the model, discussing what occurs at each and how advertising and promotion can be used to influence consumer decision making. Professors Notes II. THE CONSUMER DECISION-MAKING PROCESS The consumer purchase decision process is generally viewed as consisting of sequential steps or stages through which the buyer passes in purchasing a product or service. Figure 4-1 of the text shows the various steps in this process as well as the relevant internal psychological processes that occur at each stage such as motivation, perception, attitude formation, integration and learning. A. Problem recognition—The first step in the consumer decision-making process is that of problem recognition, which is caused by a difference between the consumer’s ideal state and actual state. There are various causes of sources of problem recognition. These include: 1. Out of stock 2. Dissatisfaction 3. New needs/wants 4. Related products/purchases 5. Marketer induced problem recognition 6. New products Examining Consumer Motivations—the way a consumer perceives a need and becomes motivated to solve a consumption problem will influence the remainder of the decision making process. To better understand the reasons underlying consumer purchases, marketers develop considerable attention to examining motives or factors that compel or drive a consumer to take a particular action. Hierarchy of needs—one of the most basic and popular approaches to understanding consumer motivation is the classic theory of human motivation popularized by Maslow. His hierarchy of needs postulates five basic levels of human needs: physiological needs safety needs social/love and belonging needs 50 esteem needs self-actualization needs The implications of Maslow’s hierarchy for developing advertisements that appeal to different types of needs should be discussed. Psychoanalytic theory—One of the initial approaches to the study of consumer behaviors in marketing used Freud’s Psychoanalytic Theory as its basis. This approach viewed consumers as having complex, subconscious motivations for purchasing. Motivation research in marketing—While very popular in the late 1950s, this area of study— known as motivation research—received much less attention through the 1960s and 1970s. The text brings up several associations related to products and brands. Very recent applications of motivation research are discussed. Problems and Contributions—Because of problems with reliability and validity, and the fact that consumers were often considered as unaware and unable to control their motivations, this area has received substantial criticism. Nevertheless, as noted in the text, the 1990’s has seen a return of this theory in the formulation of advertising programs and strategies as demonstrated in this chapter. B. Information Search—the second step in the consumer decision making process is information search. Internal search involves a scan of information stored in memory to recall past experiences or knowledge regarding purchase alternatives. External search involves go to outside sources to acquire information such as personal sources, marketer controlled sources, public sources, or through personal experiences such as examining or handling a product. Perception—perception is the process by which an individual receives selects, organizes, and interprets information to create a meaningful picture of the world. There are a number of processes involved in perception which determine how marketing information will be received: Sensation—the immediate and direct response of the senses to a stimulus such as an advertisement. Selecting information—determining whether incoming information will be attended to and how much attention it will be given. Interpretation—the process by incoming information is interpreted and assigned meaning. Selective perception—a filtering or screening may occur at various stages of the perceptual process such as exposure, attention, comprehension and retention. Subliminal perception—refers to the ability of an individual to perceive a stimulus that is below the level of conscious awareness. The possibility that marketers could use subliminal advertising to influence consumers at a subconscious level has very strong ethical implications and can be discussed using Ethical Perspective 4-2. C. Alternative Evaluation—after acquiring information during the information search stage the consumer moves to alternative evaluation. At this stage the consumer compares the various brands and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. The evoked set is a subset of all the brands of which the consumer is aware and actively considering in the decision process. A goal of marketers is to ensure that their brands are included in the evoked set of consumers. There are a number of important factors and processes that are important during the alternative evaluation stage: 51 1. Evaluative criteria and consequences—evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Consequences are the specific events or outcomes that consumers experience when a product or service is purchased and/or consumed. Functional consequences are tangible and can be experienced directly by consumers. Psychosocial consequences are more intangible, subjective and personal. 2. Attitudes—attitudes refer to a summary construct that represents an individual’s overall feelings or evaluation of an object such as a brand, a company, another person, a retail store, or even an advertisement. Attitudes are one of the most heavily studied concepts in consumer behavior. Marketer’s keen interest in attitudes is based on the assumption that they are related to purchase behavior. Advertising and promotion are used to create favorable attitudes toward new products/services, reinforce or maintain existing favorable attitudes, and/or change negative attitudes. a. Multiattribute attitude models have been used by marketers to study consumer attitudes. These models view an object such as a product as possessing a number of attributes that provide the basis on which consumers form their attitudes. According to this model consumers have beliefs about specific brand attributes and attach different levels of importance to these attributes. b. Attitude change strategies—The multi-attribute model focuses on the underlying structure or basis of an attitude and provides insight into ways marketers can influence or change consumers’ attitudes such as: increasing or changing the strength or belief rating of a brand on an important attribute changing consumers’ perceptions of the importance or value of an attribute adding new attributes to the attitude formation process changing perceptions of belief ratings for a competing brand 3. Integration Processes and Decision Rules—an important aspect of the alternative evaluation stage is the way consumers integrate or combine information to evaluate alternatives and arrive at a purchase decision. Consumers may use formal integration rules which require examination and comparison of alternatives on specific attributes. These include both compensatory and non-compensatory integration strategies. Consumers may also use informal integration rules which are often referred to as heuristics. Promotional planners need to understand consumers’ integration processes and the types of decision rules they might use in a situation. Advertising messages can be constructed to be consistent with these decision rules or to suggest how consumers might go about making a decision. It is also important for marketers to recognize that some purchase decisions are the result of a constructive process that occurs at the time of purchase. D. Purchase Decision—as an outcome of the alternative evaluation stage the consumer may develop a purchase intention or predisposition to buy a certain brand. Once a purchase intention has been made and an intention formed, the consumer must still implement it and make the actual purchase. Many purchase decisions are made on the basis of brand loyalty which is a preference for a particular brand that results in its repeated purchase. Many purchase decisions for non- 52 durable, low involvement items take place in the store and decision and purchase occur almost simultaneously. For these types of decisions top-of-mind awareness of a brand is important as is the influence of packing, shelf displays, point-of-purchase materials, and various sales promotion tools. E. Post-purchase Evaluation—the consumer decision process does not end once the product or service has been purchased. After using a product or service the consumer compares the level of performance with expectations. Satisfaction occurs when the consumer’s expectations are either met or exceeded, while dissatisfaction results when performance is below expectations. Another possible outcome of purchase is cognitive dissonance which refers to a feeling of psychological tension or post-purchase doubt a consumer may experience after making a difficult purchase choice. Consumers often look to advertising for supportive information regarding the choice they have made. F. Variations in Consumer Decision Making—consumers do not always engage in all five steps of the purchase decision process nor proceed in the sequence presented. There are three major variations of the consumer decision making process: 1. Routine response behavior—many purchase decisions for low-priced, frequently purchased products are based on a habitual or routine choice process consisting of little more than recognizing the problem, engaging in brief internal search and making the purchase. Marketers of products characterized by routine response behavior must get and/or maintain their brands in the consumers’ evoked set and encourage brand loyalty. Those not in the evoked set must encourage trial and brand switching. 2. Limited problem solving—often a consumer has a limited amount of experience in purchasing a product or service but in somewhat aware or knowledgeable of the brands available and/or the criteria to use in making a purchase decision. When consumers purchase a product through limited problem solving, marketers should make information available to consumers that will help them make their decision. 3. Extended problem solving—the most complex and detailed form of decision making occurs when consumers have little, if any, knowledge regarding the criteria to use in making a purchase decision or the various brands available. As with limited problem solving, marketers of products characterized by extensive problem solving must provide consumers with detailed information that helps them in making their purchase decision. Professor’s Notes 53 III. THE CONSUMER LEARNING PROCESS Up to this point of the chapter, the focus on consumer behavior has been from a cognitive orientation. The decision process model looks at the consumer as a problem solver and information processor who engages in a variety of mental activities in evaluating and choosing among alternatives. There are, however, alternative perspectives regarding how consumers acquire the knowledge and experience they use in making purchase decisions. To examine some of these perspectives we examine various approaches to the consumer learning process and their implications for advertising and promotion. Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior. A. Behavioral Learning Theory—behavioral learning theory emphasizes the role of external or environmental stimuli in causing behavior while minimizing the significance of internal psychological processes. There are two major behavioral learning approaches to learning: 1. Classical conditioning—this approach assumes that learning is essentially an associative process whereby the relationship between an unconditioned stimulus and conditioned stimulus develops through repetition and contiguity. Classical conditioning has many applications in advertising as products and services are become associated with perceptions, images, and emotions that evoke favorable reactions from consumers. 2. Operant conditioning—this approach, which is sometimes called instrumental conditioning, requires the individual to operate or act on some aspect of the environment for learning to occur. Learning occurs as a result of the outcomes or consequences associated with a particular response. Reinforcement refers to a reward or favorable consequences associated with a behavior and are an important element of instrumental conditioning. Many advertisements emphasize the benefits or rewards a consumer will receive from using a product or service or encourage a consumer to use a brand to avoid unpleasant consequences. There are a number of operant conditioning concepts that are particularly relevant to marketers such as schedules of reinforcement and shaping. Shaping is particularly relevant to the introduction of new products through the use of sales promotion tools and techniques. B. Cognitive Learning—Cognitive learning theory has as its basis a problem-solving, information processing, reasoning approach to human behavior. In contrast to behavioral learning theory perspectives, cognitive orientations emphasize internal processing or thinking. Many consumer researchers disagree with the simplified explanations of behavior offered by behavioral learning theories and are more interested in examining the complex mental processes that might underlie consumer decision making. Thus the cognitive approach to studying learning and consumer decision making has dominated the field of consumer behavior. The various processes examined during the discussion of the consumer decision making process are all relevant to a cognitive learning approach to consumer behavior. Professor’s Notes 54 IV. ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOR Consumers do not make purchase decisions in isolation as there are various external factors that may influence their purchase decisions. These include: A. Culture—culture refers to the complexity of learned meanings, values norms, and customs shared by members of a society. The importance of understanding the impact of culture on consumer behavior has become increasingly important as marketers expand their international marketing efforts. B. Subcultures—subcultures refer to smaller groups or segments in a society that possess similar beliefs, values, norms and patterns of behavior that set them apart form the larger cultural mainstream. Subcultures may be based on age, geography, race, religion, racial, lifestyles, and ethnicity. C. Social Class—social class refers to relatively homogenous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. Social class structures in the United States are generally based on occupational status, educational attainment and source of income. Social class is important to marketers because consumers within various social strata often exhibit similar values, lifestyles and buying behaviors thus providing a natural basis for market segmentation. D. Reference Groups—a reference group is a group whose perspective or values are being used by an individual as the basis for his/her judgments, opinions and actions. Marketers utilize reference group influences in developing advertisements by associating, or sometimes disassociating, products, services or certain behaviors with certain types of groups. E. Family Influences—many purchased decisions are made by families rather than by individuals. Marketers must understand the various roles in the family decision making process such as initiator, information provider, influencer, decision maker, purchaser and user or consumer. They must also determine who in the family is responsible for the various roles in the decision making process so messages can be targeted to them. Messages must also be designed so as to appeal to the appropriate family member(s). F. Situational Determinants—another type of external factor that promotional planners must consider is that of situational determinants on consumer behavior. Three types of situational determinants may have an effect—the specific usage situation, the purchase situation, and the communications situation. Professor’s Notes 55 V. ALTERNATIVE APPROACHES TO CONSUMER BEHAVIOR In the past decade, a growing number of consumer researchers have examined this process from a different perspective, often referred to as alternative, interpretive, postmodern, or post positivist. Regardless of the name, alternative ways of attempting to understand consumer behavior assume a crossdisciplinary approach. Those who conduct research from this perspective believe that consumers’ decision-making processes do not occur in isolation. Rather, they view consumer decision making as influenced by cultural, linguistic, and historical factors. In examining the significance of communications, they have adopted three perspectives: socio-cultural, structural, and semiotic. Many consumer researchers believe that dross-disciplinary research is better suited for the study of consumers because it takes into account their complexity and multidimensionality. When considered with psychological research, these alternative approaches help us better understand the impact of communications. Professors Notes Teaching Suggestions Because of the consumer emphasis dictated by the marketing concept, consumer behavior has increased in importance, and has found its way into virtually every aspect of marketing. Of course, advertising and promotion are no exception. As a result, it is very important for the student to understand that advertising and promotion strategies are designed for the purpose of influencing customer behavior. Thus, it is important for promotional planners to have some understanding of consumer behavior including the way consumers relate to products and services, the goals and motives they seek to achieve and satisfy, and the process by which they make purchase decisions. You should emphasize that the success marketers have in influencing the purchase behavior of their target customers depends in large part on how well they understand their purchase patterns and behavior. This is one of the longer chapters in the text as it covers an extensive amount of material. Some students may have covered some of this material in a basic marketing or consumer behavior class. However, this chapter will still be valuable to them since it discusses how this material is used in the development of advertising and promotional programs. You may wish to divide the topics into two lectures to reduce the possibility of information overload. Answers to Discussion Questions 1. A number of factors may lead to problem recognition among consumers. Discuss the various causes of problem recognition, and give an example of each. As noted on pp. 107-109 of the text, problem recognition may result from a variety of factors. Some of these may be as simple as repeat purchase situations, while others may be more complex. For example, out of stock situations occur simply when the existing supply is diminished, and usually may require only routine re-purchase behavior (for example, replacing an empty salt box, or milk). Problem recognition may also occur as a result of dissatisfaction with the existing product/service being used. An example of this might be that having purchased a product, the consumer was disappointed in its performance, taste, etc. In other situations, the existing product may no longer be acceptable due to new needs and/or wants of the consumer. Changes in lifestyles, education, income and/or a number of factors may create new needs or wants. In turn, the purchase of a new and related 56 product may lead to a new problem. Consider the purchase of a digital camera. If one wants to use the camera to send pictures through the Internet, an additional purchase of computer software will be required. Some times needs are created through marketer-induced problem recognition. Advertisers may be telling you that your teeth are not white enough, that your clothing is out-of-style or that your Internet modem is too slow, creating—or at least, helping you recognize—a problem. Finally, the introduction of new products into the marketplace may lead the consumer to problem recognition. The advent of cellular telephones led many consumers to recognize the advantages of this form of communication, leading to problem recognition when they did not have one. 2. Explain the concept of an evoked set. Why is this concept important to marketers? Give examples of an evoked set, and how marketers might attempt to influence consumers to gain consideration. When one considers the numerous options for purchase in almost any product category, the choices may become overwhelming. One way that consumers manage this situation is to consider only a subset of the alternatives available, leading to an evoked set. Often referred to as a consideration set, this subset of brands are those that will be actively considered in the purchase decision process. This is an important concept for marketers to understand, in that if their brand does not get included in the evoked set, it is not likely to be purchased. Or, should the consumer become dissatisfied with a brand currently in the evoked set, it might be removed, eliminating it from future purchase consideration. Consider the purchase of a new car. The choice of alternatives runs from low end entries like Hyundai, Kia, etc. to expensive luxury and sports cars—not to mention SUV’s and others. It is highly unlikely that a consumer would consider the entire range of possibilities. The list would be narrowed down given decision criteria to a much smaller grouping, based on purchase criteria. It may lead to consideration of only Japanese cars, American cars or German cars. It might be limited based on price or past experiences. Whatever the criteria used, the entire list of cars will not be considered. Marketers attempt to gain entry into the evoked set through positioning against others in the category, marketing communications and other marketing tools. Their goal is to get the brand/product to be considered. In other instances, the marketer is concerned with maintaining customer satisfaction, recognizing that consumers will buy again, and may or may not consider the existing product in the evoked set. 3. Jerry Olson and J.Paul Peter define two broad categories of evaluative consequences. Describe each of these and provide examples. Peter and Olson define consequences as specific events or outcomes that consumers experience when they purchase and/or consume a product or service. They distinguish between two types of consequences. Functional consequences are outcomes of product or service usage that are tangible and directly experienced by consumers. Taste of a product, the clarity of a picture on a television set and quality of sound of a stereo system are examples. Psychosocial consequences are more subjective in nature, less tangible and objective, and subject to the perceptions of the consumer. The way clothes make one feel when worn would be one such example. What is important for marketers to understand is that consumers may experience one or both of these consequences with any given purchase. Too often, marketers think of their products as bundles of attributes, forgetting that it is not the attributes themselves that are important, but it is the consequences which they result in for the consumer that impact the decision process. 57 4. Figure 4-10 details a number of external influences on consumer behavior. Describe each of these influences, explaining how it might have an impact on consumer behavior, and provide an example of each. As can be seen in Figure 4-10 on page 126, there are five external influences on consumer behavior. Theses will be discussed, with examples of their influence. Culture—culture is the complexity of learned meanings, values, norms, and customs shared by members of a society. Buying behaviors are directly influenced by cultural values and norms. For example, in some cultures it may be improper to bargain over a purchase, whereas in others it may be expected. In the Latino culture, family is one of—if not the—most important values. As a result, ads depicting families and family values are more widely accepted than are those not showing these characteristics. Subcultures—within cultures are smaller groups of people sharing similar beliefs, values, norms, and patterns of behavior that set them apart from other groups. For example, in the U.S. there is the Latino subculture, the various geographic subcultures, age subcultures like Generation X and Generation Y, etc. These various groups may exhibit many of the same characteristics which impact their purchase behaviors. Generation X and Y may be different in their lifestyles and purchase behaviors. Those living in the South are often different than those in the Midwest, etc. Advertising agencies have sometimes found it necessary to have field offices in various cities to insure that their ads and commercials are “subculturally correct”—i.e. not out of touch with the geographic subculture. Social Class—the relatively homogeneous division in society into which people sharing similar lifestyles, values, norms, interests and behaviors can be grouped is known as social class. Virtually all societies have these stratifications. In the U.S., social class is determined by an index based on occupational status, educational attainment, and income (other cultures may have different criteria). The three classes in the U.S.—upper, middle, and lower—will exhibit different purchasing behaviors, media habits, shopping habits, lifestyles, etc. Marketers must identify these patterns to successfully attract these segments. Reference Groups—a group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions and actions are known as a reference group. These reference groups can be either associative—a group to which one might aspire to belong--, or disassociative—a group to which one does not wish to identify or be associated. Both groups may impact consumers’ purchase decisions. For example, members of a group share similar values and lifestyles, and may purchase similar types of products. Groups to which one aspires may provide a model for the way the aspirant dresses, acts, etc. Disassociative groups provide standards which the consumer may wish not to emulate. Smoking, the types of clothes worn, the type of music listened to, and so forth may be perceived as standards the non-associating member wants to stay away from. Situational Determinants—The specific situation in which the consumer plans to use the product or brand may directly affect the choice or consumption behavior. For example, consider the purchase of a bottle of wine for dinner. If dining alone or with the family on a regular night, one brand might be appropriate. On the other hand, for a special occasion with the family, a more expensive choice might be made. Now consider the situation if friends, associates or fellow-workers were coming for dinner—might the choice change again? The choice of clothes will also be situational. We often buy new clothes for vacations, special events, parties, etc. 58 5. Psychoanalytic theory has been criticized for its problems with validity and reliability. How do the current methods discussed in the text—for example, hypnosis—fare in regard to these criteria? As noted in the text, one of the problems that consumer behaviorists have with Psychoanalytic theory is that of validity and reliability. While the techniques employed by these researchers have been used for years by those in other professions (for example, psychology) these issues still remain. The use of these techniques to research consumer behaviors still leads to skepticism among many behavioral scientists. At the same time, marketers are constantly searching for new methods of gaining insights into consumer behaviors. While criticized for a lack of reliability and validity, motivation research has made numerous contributions to our understanding of consumer behaviors. As noted in the text, such research has led to successful strategy implementations (for example, Folgers and the PT Cruiser). To some involved in research into the minds of consumers, any insights are valuable insights. To others, research that has not been validated or is potentially not reliable is of little or no value. One possible solution is to employ psychoanalytic techniques in conjunction with other research methods, like surveys, personal interviews, observations, etc. If possible, this strategy might alleviate many of the criticisms aimed at these forms of research. Until this time, hypnosis, mind probing, etc. will still suffer from problems concerning reliability and validity. 6. Explain how consumers might engage in each of the processes of selective perception described in the chapter. Provide examples. As noted in the text, consumers may engage in selective perception for a variety of reasons, and in a number of different ways. These include: Selective exposure – Consumers may selectively decide what they will allow themselves to be exposed to. For example, if a consumer knows information will be provided that may lead to dissonance or the potential for inconsistency, they may consciously avoid the information. If one just purchased a new Ford, having selected this model over Chevrolet, they may avoid advertisements for Chevy’s to not create further dissonance. Changing stations during commercial breaks on television or radio, or leaving the room, skipping over ads in magazines, or simply ignoring banner ads are all forms of selective exposure. On the other hand, consumers may actually seek out information as well. Accessing the Internet to obtain more information, reading Consumer Reports for product comparisons, etc. are also forms of selective exposure. Selective attention—Some consumers may stay in the room during commercials, but not pay attention to them. Consumers will be more inclined to pay attention to ads when they are in a search and/or evaluation stage of the decision process, and the ad is relevant to this decision. For example, if you were in the market for a new car stereo, you might be more inclined to pay attention to commercials, print ads and publicity regarding brands, sales, etc. Once the purchase has been made, the consumer may engage in selective attention to these messages. Selective comprehension—There is no guarantee that the information provided by an advertiser will be comprehended in the manner intended. Consumers may distort information to meet their needs, or take away a different meaning than intended. For example, a consumer is torn between two attractive alternative automobiles. One gets 26 mpg highway, the other 22. Depending on which car is purchased, the differences in gas mileage may be distorted. If the higher of the two was bought the 26 may be made out to be significantly higher than 22. If the lower mpg car was purchased, the difference would seem to be much less. 59 Selective retention—Using the example of the two cars just above, what is remembered may be a result of selective retention. “Oh, I don’t remember the difference in mpg, but I recall it was only slightly higher” or “I remember there was a significant difference. My car got 4 mpg more, and over a year this would amount to $200 in savings”. Consumers have a tendency to forget that information that is inconsistent or contrary to what they want to believe, and may be more likely to recall that that reinforces their existing beliefs, values, and/or attitudes. 7. Describe how cultural differences might impact viewers’ perceptions of advertisements. Provide examples. Cultural mores, values and experiences will directly impact perceptions of advertisements. As noted in the text, understanding these differences may lead to success or failure of the message. For example, in Latin cultures, family is an extremely important value. Thus, messages often focus on the benefits of the product or service to the family as opposed to the individual. An ad that suggested that the buyer purchase the product for self pleasure would meet with little or no acceptance. On the other hand, the United States, comprised of many with Calvinist values can be appealed to with more personal “me” type appeals. Another example relates to age. In Far Eastern countries, age is to be respected, even revered. Ads describe the knowledge and wisdom of the elders. In the US, youth is more desirable. Many products stressing “how young it will make you feel” are advertised, cosmetic surgery is common, and fitness to stay young is almost mandatory. Cultures even differ in respect to eating habits. European countries, particularly the French, dine. That is, they take their time eating meals, enjoy the setting and the moment, and have multiple courses. The concept of fast foods, so common in the US, is still alien to many of these cultures (though there is some evidence that this is changing among the youth). 8. In the text it was indicated that families may influence the consumer decision-making process. Describe how various family members may assume the different roles described in Figure 4-11. Also explain how these roles might change depending upon the product under consideration. Research has shown that the family can both directly and passively influence the consumer decision process. The amount of influence they may exert will depend on the product category, the level of involvement of various family members with the product or product class, relative resource contributions, etc. Family members may also assume various roles in the decision process, such as: Initiator—different family members may initiate the purchase decision process. For example, a teenager who is very much into music may request the family consider the purchase of a new music system. The mother or the father may initiate the idea for a new family car, etc. Information provider—different levels of expertise in product categories may lead to various family members assuming the role of information provider. For example, as teenagers become more involved with the Internet, they may be called upon to provide information into a variety of areas. For example, they may be asked to search the Internet for vacation destination, music equipment or other products or services and provide information back to the family. The father may be the primary information provider for the family car, while the mother may have most of the input on furniture. Children may be the providers of information on stereo equipment. The influencer—each family member may have their own criteria in mind in the purchase decision process. The father may want an economical car, the mother an SUV for functional purposes, the children something more sporty to impress their friends. Again, depending on their involvement and expertise, various family members may be able to exert more or less influence. Another example 60 might be a stereo system. If the teenager is more involved in music than other family members, they may have more interest and be more able to exert more influence than those with less product expertise. The decision maker—who actually makes the purchase decision? It used to be that the mother had influence at various stages for autos, but the father actually made the final decision. In many families, this is not longer the case. In two car families, the mother may have her car, and the father his, both of whom made the decision as to what it would be. In families where children work, they may actually purchase their own cars, preferring to do so to make their own decisions rather than have the parents make it for them. The purchasing agent—regardless of the various roles assumed, the parent(s) may actually be the purchasing agent. When children are not of age to make the purchase, do not qualify for financing, or for other reasons, the parent may act as the purchasing agent to expedite or culminate the purchase decision. The consumer—in the case of the family car, vacation or stereo all family members may ultimately be consumers. For other products, perhaps computers, all may use the product, but some may use it more than others. In others, some family members may be involved in the decision making process, but never use the product ( the child helps research the vacation, but doesn’t actually go along). 9. The text discusses alternative approaches to studying consumer behavior. Explain how these approaches differ from those described earlier in this chapter. Alternative approaches—often referred to as alternative, interpretive, postmodern, or post-positivist— assume a cross disciplinary approach . Arguing that the focus on psychological perspectives may be too narrow, these approaches focus on multi-sensory, fantasy and emotive aspects of consumer behavior. The orientation is shaped with roots in anthropological, sociological, and historical perspectives, and often employs different research methodologies common to these disciplines (i.e., participant observer studies, interpretative analyses, etc.) Those who conduct research in this area argue that consumer behaviors do not take place in isolation, but are influenced by cultural, linguistic, and historical factors. Three approaches are taken: Socio-cultural- advertising and other forms of communication are viewed as both influencing and being influenced by culture. Structural- Consumption behaviors are examined to discover underlying meanings; these meanings are examined in relation to cultural stories and myths Semiotic- Products and ads are examined for their symbolic meanings to consumers. 10. Postmodern research often involves a sociological perspective to understanding consumer behavior. Give examples as to how sociology might impact purchase behaviors. A number of sociological factors may impact consumer behaviors. For example, social class has been shown to influence purchase behaviors such as brands purchased, stores shopped and even activities in which one engages (bowling versus tennis). Reference groups, including families provide both inspirational and disassociative groups influencing purchases. Where one shops, or for that matter, where one has the opportunity to shop may be affected by social factors. For example, rural dwellers may have a limited number of options available to them for shopping. Cultural and subcultural differences (see the text) have been shown to impact all aspects of the purchase decision process. Likewise, many sociologists take the perspective that not only do sociological factors impact consumer behaviors, but consumption also directly shapes the way that we live, our values, motives and behaviors. Advertising has been accused of shaping society—often in a negative way—as well as 61 being designed in response to societal needs. In sum, it can be said that sociological factors both shape and are shaped by consumer behaviors. Additional Discussion Questions (not in text) 11. What is subliminal perception? Describe how marketers are attempting to use this concept in the marketing of goods and services. While many marketers argue that the controversy surrounding subliminal advertising be put to rest because of a preponderance of evidence that such tactics cannot work, many others still believe that it is possible to influence consumers subliminally. In fact, many companies have successfully marketed subliminal self-improvement tapes—and argue that they can provide data to substantiate their effectiveness. For purposes of this question, let’s assume that subliminal or other subconscious methods might work. If this were the case, as is suggested by William Bryant Key, advertisers could manipulate us without our even knowing that such manipulations were taking place. Given that subliminal advertising would not be evident to the consumer, then the advertiser could suggest behaviors, present product benefits, etc. that might influence our purchase behaviors. A number of books have been written suggesting how this might occur through the implanting of symbols and words in ads and commercials, by auditorially sending messages through the airwaves, encouraging consumers to buy by sending subliminally messages through the store’s public address system, etc. Even if less sinister methods were employed (for example, selling products that supposedly offer subliminal benefits) one must argue that the consumer is being taken advantage of. Each year millions of dollars are spent on the purchase of subliminal tapes that supposedly help the buyer in some way. If these tapes do not have the benefits they claim, then the advertiser is engaging in deception, and the consumer is spending monies for products that do not work. While most advertisers claim that they do not believe in, nor employ subliminal advertising, there are many who believe that the practice continues to exist. Subliminal implants in ads would appear to be the most common form, with the goal more likely being to create awareness or interest rather than actually persuading the consumer to buy. 12. Explain how reference groups influence buyers’ behaviors. Give an example of how both inspirational and disassociative groups might have an impact. Reference groups are defined as “two or more individuals who share a set of norms”. As such, these groups can be both inspirational—those to which one might wish to aspire—to disassociative—those to which one does not wish to be associated. As such, these groups may pose both a boon and a threat to marketers. For example, inspirational reference groups may serve as a goal, or an image to which consumers might aspire. The growth of the athletic shoe market—particularly the expensive basketball shoes like Nike Air- have benefited, as young athletes aspire to play like Kobe Bryant, or Shaq or other NBA stars. People aspire to own certain types of cars, or live in certain areas to let others know that “they have arrived”. The attractiveness of name brand clothing like Versace, Calvin Klein, and others have become identified with specific groups—attractive to large segments of society. On the flip side, disassociative groups can also be motivating. Many of use do not wish to be identified with the likes of drug users or alcoholics. Obesity has almost become an obsession, as consumers join health clubs, jog and purchase diet pills and programs so as not to be seen as fat. These disassociative groups then serve as a group which is to be avoided through the purchase of products, services or just specific behaviors. 62 Finally, disassociative reference groups can hurt marketers. Many auto buyers see the Volvo as a family car of someone in the suburbs or the BMW as a “Yuppie” car. Others see specific name brands as associated with “snobs”, etc., and (whether these true or not) do not wish to purchase these brands and become affiliated with these groups. 13. Explain how the screening processes involved in selective perception might impact a viewer of TV commercials. As noted in the text, the consumer may engage in a screening process known as selective perception. This process may be enacted through selective exposure, selective attention, selective comprehension, and/or selective retention. The problem that this screening process may present is that the advertisers’ ad may not have the impact desired due to the fact that these processes are being enacted. For example, viewers may decide not to expose themselves to the information provided in an ad or commercial by skipping over it, changing stations, etc. Even if the consumer is exposed to the ad, there is no guarantee that he or she will attend to it. Consumers may pay attention to some ads, while ignoring others, or may pay attention only to information that is considered relevant or of interest to them. Consumers may also distort or comprehend information provided in ads in a way other than the advertiser intended, again in an attempt to support their previously held beliefs. Finally, consumers do not retain all of the information provided in the ads, perhaps even selectively forgetting discrepant information. Consumers may use selective screening processes to assure themselves that they made the proper decisions by selecting only supportive information, and screening out any information that might create dissonance or conflict. Perhaps the most effective way for advertisers to avoid the selective perception processes is to design more effective advertisements. By more effective we mean more interesting, more attention-getting, and more informative ads. Given the high volume of ads to which the consumer is exposed, it is critical that the ad break through the clutter. If the ad is not noticed and does not attract the interest of the viewer, higher order processing (comprehension and retention) will never take place. The use of mnemonics, or memory aiding devices, will also help the retention process. (You probably often catch yourself humming a tune or jingle without even thinking about it, or liking it, if it is well done.) 14. Discuss the various attitude change strategies recognized by the multi-attribute model. Discuss how an airline could use some of these attitude change strategies in their advertising and marketing programs. The multi-attribute model provides insight into several ways marketers can influence consume attitudes. Each of these strategies might be used by an airline to influence the attitudes of flyers toward their airline. Each will be discussed. The first strategy is increasing or changing the strength or belief rating of the airline on an important attribute. The airline should identify which attributes are important to flyers and emphasize them in their ads. For example, most airline flights are priced similarly so they focus their marketing and advertising on the quality of their service. They run ads that stress the high quality of customer service they provide at all levels of the flying experience. Another strategy is changing consumers’ perceptions of the importance or value of an attribute. An airline may want to emphasize a particular feature or benefit and why it is should be important to flyers. For example, many airlines talk about their frequent flyer programs and encourage consumers to accumulate miles by being loyal to them. 63 Adding a new attribute to the attitude formation process is another strategy recognized by the multiattribute model. An airline may find a new service or benefit it wants to provide to consumers that isn’t currently offered by competitors. For example, American Airlines has increased the amount of leg room it offers in coach class while others offer wider seating. A final strategy is changing perceptions of belief ratings for a competing brand. An airline may identify an area where a competitor is weak or vulnerable and note this in a comparative ad. For example, one airline may have a better offering of flights between two cities or may have a better ontime arrival record. These advantages could be pointed out in a comparative advertisement. 15. Discuss the three variations of the consumer decision-making process. What is the importance of communications in each type? The three variations of the decision making process are (1) routine response, (2) limited problem solving and (3) extensive problem solving. Obviously, the role of marketing communications will differ in each. Routine response behaviors are close to habits. As a result, they require little external search (if any) and there is little or no reliance on communications. The role of advertising and promotions is more of one of reinforcement, and of reminding the consumer that it is time to purchase. The role of providing information for evaluation is minimal. Limited problem solving involves both internal and external search behaviors. As a result, the role of marketing communications increases. Consumers are more likely to have recognized the problem, and are using advertising and other forms of communication to provide information for evaluation. Consumers are also more likely to employ a variety of sources of information in the process, and the marketer wants to be sure that his/her product is considered in the evoked set. The consumer’s most extensive use of communications is likely to occur in the extensive problem solving situation. Decisions are given much more thought, external search is more involved, and there is a much greater reliance on advertising, sales persons, friends, family, etc. as input into the decision. As a result, the responsibility of communications is increased as the marketer wants to have the information readily available to consumers when and where they want it. IMC Exercise Have the class collect ads that reflect various concepts of consumer behavior discussed in the text such as learning theories, attitudes, and various stages of consumer decision making. They should explain how the ads they have selected relate to a specific consumer behavior concept or theory and how it is reflected in the ad. 64