INTRO TO CONSUMER
BEHAVIOR
Marketing
Concept
A consumer-oriented
philosophy that suggests that
satisfaction of consumer
needs provides the focus for
product development and
marketing strategy to enable
the firm to meet its own
organizational goals.
Consumer
Behavior
The behavior that consumers
display in searching for,
purchasing, using,
evaluating, and disposing of
products, services, and ideas.
Specific Questions
• Acquisition / use / disposal of products,
services, time, ideas
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Whether?
What?
Why?
How?
When?
Where?
How much?
Net Takeaway
• 3 types of decisions
– acquisition, usage, disposal
• 8 specific questions
– whether, what, why, how, when,
where, how much, how often
• 2 types of explanations
– psychological, cultural
“Black Box”
The marketing
mix
Competing
marketing
mixes
Social
Stimuli
influences
(culture, social
class, reference
groups &
family)
Exchange
No exchange
More
information
sought
Responses
External Influence
Input
Firm’s Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Need
Recognition
Process
Prepurchase
Search
Evaluation of
Alternatives
Output
Purchase
1. Trial
2. Repeat purchase
Postpurchase Evaluation
Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial
sources
4. Social class
5. Subculture and culture
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
Figure 1-1
A Simple Model of
Consumer Decision
Making
Net Takeaway
• KEY TERMS
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Consumer behavior
Consumer Research
Deontology
Market segmentation
Marketing concept
Marketing ethics
Organizational consumer
Personal consumer
Societal marketing concept
Teleology
Utilitarianism
CONSUMER RESERCH
The Research Process
STEP1: Defining the Problem and Research Objectives
STEP 2: Developing the Research Plan
STEP 3: Implementing the Research Plan
STEP 4: Interpreting and Reporting the Findings
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Marketing Research Process
Step 1. Defining the Problem & Research Objectives
Types & Levels of Information Needed
Exploratory
Research
Descriptive
Research
Causal
Research
Gathers preliminary information
that will help define the problem
and suggest hypotheses.
•Describes such things as market
potential for a product or attitudes
and demographics of consumers
who buy the product.
•Test hypotheses about causeand-effect relationships.
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preliminary information: identify
issues
problem definition
first stage of descriptive or
causal research
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expand understanding of
factors
describe phenomenon
representative sample
test cause and effect
hypothesis
experimentation
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Secondary
Data
Data that has been collected
for reasons other than the
specific research project at
hand.
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Primary
Research
Original research undertaken
by individual researchers or
organizations to meet
specific objectives.
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2 High Level Research Methods
1. Quantitative Research
A. Survey
B. Observation
C. Experimental
2. Qualitative Research
A. Focus Group
B. Projective
C. In-Depth Interview
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Designing Primary Research
Quanti
Research
Quali
Research
• Quantitative studies more likely for collecting
descriptive information.
• Qualitative studies may be used to
get new ideas.
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Data Collection Methods
Observation
Experimentation
Surveys
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Validity
The degree to which a
measurement instrument
accurately reflects what it is
designed to measure.
17
Reliability
The degree to which a
measurement instrument is
consistent in what it
measures.
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Attitude Scales
• The three most frequently used scales are:
– Likert scales: easy for researchers to prepare
and interpret, and simple for consumers to
answer.
– Likert scales ask the respondent to check or
write the number corresponding to their level of
"agreement" or "disagreement" to statements.
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A Classification of Marketing Research Data
Marketing
Research Data
Secondary
Data
Primary
Data
Qualitative
Data
Quantitative
Data
Descriptive
Survey Data
Experimental
Observational
& Other Data
Experimental
Data
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SEGMENTATION,
TARGETING, AND
POSITIONING
Consumer Behavior
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STP
Segmentation Targeting & Positioning
Market Segmentation
Market Targeting
Market Positioning
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Market Segmentation
Requirements for Effective Segmentation
Measurable
Accessible
• Size, purchasing power, profiles
of segments can be measured.
• Segments can be effectively
reached and served.
Substantial
Differential
Actionable
• Segments are large or
profitable enough to serve.
• Segments must respond
differently to different marketing
mix elements & programs.
• Effective programs can be
designed to attract and serve
the segments.
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Bases for Segmentation
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•
•
•
•
Geographic Segmentation
Demographic Segmentation
Psychological Segmentation
Psychographic Segmentation
Sociocultural Segmentation
Use-Related Segmentation
Usage-Situation Segmentation
Benefit Segmentation
Hybrid Segmentation Approaches
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Sequential Segmentation
9.1%

Percentages in
branches represent
size of the segment
12.8%
North
Central
40.3%
3.7%
Females
24.3%
34.6%
43.0%
55.8%
Total
Sample
16.5%
Rest
of U.S.
19.5%
8.4%
28.6%
44.2 %
Males
6.7%
15.6%
More Than
High School
10.2%
High School
or Less
3.8%
Heavy
Users
48.7%
Medium &
Light Users
20.0%
54 and
Under
21.4%
Over
54
6.5%
Percentages
in
boxes represent
market share
AIOs
Psychographic variables that
focus on activities, interests,
and opinions. Also referred
to as Lifestyle.
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The VALS TM 2 Framework
Actualizers High resources
Fulfilleds
Achievers
Experiencers
Believers
Strivers
Makers
Strugglers
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Segmentation Strategies
Low resources
Usage-Situation Segmentation
• Segmenting on the basis of special
occasions or situations
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Use-Related Segmentation
• Rate of Usage
– Heavy vs. Light
• Awareness Status
– Aware vs. Unaware
• Brand Loyalty
– Brand Loyal vs. Brand Switchers
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Hybrid Segmentation
Approaches
• Psychographic-Demographic Profiles
• Geodemographic Segmentation
• SRI Consulting’s Values and Lifestyle
System (VALSTM)
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Maslow’s Hierarchy of Needs
5
Self-Actualization
(Self-fulfillment, personal enrichment)
Ego Needs
(Prestige, status, self esteem)
4
Social Needs
(affection, friendship, belonging)
Safety and Security Needs
(Protection, order, stability)
Physiological Needs
(Food, water, air, shelter, sex)
3
2
1
Toothpaste: Example of Market Segments
Segment
Name
The Sensory
Segment
Principal
Benefit
Sought
Flavor, product Brightness
appearance
of teeth
Demographic
Strengths
Children
Teens, young Large
people
families
Men
Special
Behavior
Characteristics
Users of
spearmint flavored
toothpaste
Smokers
Heavy users
Heavy users
Macleans, Plus
White, Ultra Brite
Crest
Brands on sale
High selfinvolvement
High
sociability
High hypochondriasis
High autonomy
Hedonistic
Active
Conservative Value oriented
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Brands dispropColgate, Stripe
ortionately
Favored
Personality
Characteristics
Life-style
Characteristics
The
Sociables
The
Worriers
The Independent
Segment
Decay
prevention
Price
Determining the
SEGMENT
DIMENSIONS
is not
EASY
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All Potential
Dimensions
Qualifying
Dimensions
Determining
Dimensions
(product type)
Snack Food Market
Determining
Dimensions
(brand type)
Health = nutrition
Dieters = calories
Families = fill up
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THINGS TO REMEMBER
ABOUT SEGMENTATION
• Segments must exist in the marketplace
• More than one segmentation pattern may
exist
• Segments can shift over time
• Targeting one or more segments is more
profitable than targeting the entire market
• Segmentation is at the core of a successful
marketing strategy
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Step 2. Market Targeting
Evaluating Market Segments
• Segment Size and Growth
– Analyze current sales, growth rates and expected profitability for
various segments.
• Segment Structural Attractiveness
– Consider effects of: competitors, availability of substitute
products and, the power of buyers & suppliers.
• Company Objectives and Resources
– Company skills & resources needed to succeed in that
segment(s).
– Look for Competitive Advantages.
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TARGETING STRATEGIES
• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing
• + Countersegmentation
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Marketing Differentiation Strategy
A Undifferentiated Marketing
Company Marketing Mix
All Market
B Concentrated Marketing
Company Marketing Mix
Target Segment 1
Target Segment 2
Target Segment 3
C Differentiated Marketing
Company Marketing Mix 1
Company Marketing Mix 2
Company Marketing Mix 3
Marketing strategies
Target Segment 1
Target Segment 2
Target Segment 3
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Counter
segmentation
Strategy
A strategy in which a
company combines two or
more segments into a single
segment to be targeted with
an individually tailored
product or promotion
campaign.
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Step 2. Market Targeting
Choosing a Market-Coverage Strategy
Company Resources
Product Variability
Product’s Stage in the Life Cycle
Market Variability
Competitor’s Marketing Strategies
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STEP 3: POSITIONING
Market Positioning: arranging for a product to
occupy a clear, distinctive, and desirable place
relative to competing products in the minds of
target consumers. i.e. Chevy Blazer is “like a rock.”
• Part of the marketing strategy which allows to give the
product/service its own identity
• Positioning is a competitive tool
• Positioning can be operated at the physical level or at the
perceptual level
• A strong position in buyers’ minds gives the product a
competitive advantage
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Step 3. Choosing a Positioning
Strategy
Step 1. Identifying
Possible Competitive
Advantages
Step 2. Selecting the
Right Competitive
Advantage
Step 3. Communicating
and Delivering the
Chosen Position
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Step 3. Choosing a Positioning
Strategy
• Product’s Position - the way the product is
defined by consumers on important attributes the place the product occupies in consumers’
minds relative to competing products.
• Marketers must:
– Plan positions to give their products the greatest
advantage in selected target markets,
– Design marketing mixes to create these planned
positions.
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Examples of Perceptions
•
•
•
•
•
•
•
•
•
Coca-Cola = cool, all-American, and real
Pepsi = young, exciting, and hip
Dr Pepper = nonconforming, unique, and fun
Virginia Slims = feminine
Marlboro = masculine
Apple = young
IBM = older
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Identifying Possible Competitive
Advantages
• Key to winning and keeping customers is to
understand their needs and buying processes
better than competitors do and deliver more
value.
• Competitive advantage is an advantage over
competitors gained by offering consumers
greater value, either through lower prices or by
providing more benefits, that justify competitive
advantage,
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Identifying Possible Competitive Advantages
Product
Differentiation
i.e. Features,
Performance, Style &
Design, or Attributes
Image
Differentiation
i.e. Symbols,
Atmospheres, Events
Services
Differentiation
i.e. Delivery, Installation,
Repair Services, Customer
Training Services
Personnel
Differentiation
i.e. Hiring, Training
Better People Than
Competitors Do
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Choosing the Right Competitive
Advantages
Important
Profitable
Criteria
For Determining
Which Competitive
Advantage
Affordable
Preemptive
Distinctive
Superior
Communicable
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Selecting an Overall Positioning Strategy
Ralphs: “Pay less for Higher Standards”
Price
More
More
The Same
Less
More
for
More
The same
More
for the
same
Less
More
for
Less
The same
for
less
Less for
much
less
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Changing the way a product
is perceived by consumers in
relation to other brands or
product uses.
Repositioning
GTE
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PERCEPTUAL MAPS
• Indicate where a product stands in buyers’
minds relative to its direct and indirect
competitors
• Horizontal and vertical axes are perceived
relevant dimensions of the product category
• Distances between two brands are perceived
competitive distances
• Ideal tool for positioning strategies
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Perceptual Map
Has a touch of class * A car I’d be proud to own * Distinctive looking
Porsche
Lincoln
#4
Cadillac
BMW
#5
Mercedes
Chrysler
#2
Buick
Pontiac
Oldsmobile
Dodge
Chevrolet
Datsun
Fun to drive
Appeals to
young people
Ford
#1
Toyota
Plymouth
#3
VW
Very practical * Gives good gas mileage * Affordable
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Marketing strategies
POSITIONING STRATEGIES
• Move brand closer to ideal point
• Move ideal point closer to brand
• Change relevance of dimensions
• Introduce a new brand close to ideal point
52
Steps in Market Segmentation, Targeting, and
Positioning
Market Segmentation
1. Identify bases for
segmenting the market
2. Develop segment profiles
Market Targeting
3. Develop measure of
segment attractiveness
4. Select target segments
Market positioning
5. Develop positioning for
target segments
6. Develop a marketing
mix for each segment
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Review of Concept Connections
• List and discuss the major levels of market segmentation and
bases for segmenting consumer and business markets.
• Explain how companies identify attractive market segments and
choose a market-coverage strategy.
• Define the three steps of target marketing: market segmentation,
market targeting, and market positioning.
• Discuss how companies can position their products for
maximum competitive advantage in the marketplace.
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Chapter 4
Consumer Motivation
Rational
Versus Emotional Motives
• Some consumer behaviorists distinguish
between so-called rational motives and emotional
motives.
• Traditional economic sense, which assumes that
consumers behave rationally when they carefully
consider all alternatives and choose those that
give them the greatest utility.
• In a marketing context, the term rationality
implies that consumers select goals based on
totally objective criteria, such as size, weight,
price, or miles per gallon.
Rational
Versus Emotional Motives
• Emotional motives imply the selection of
goals according to personal or subjective
criteria (e.g., pride, fear, affection, status.)
• The assumption underlying this distinction
is that subjective or emotional criteria do
not maximize utility or satisfaction.
Rational
Versus Emotional Motives
• Positivist research
– Rationally motivated
– Isolate the causes
– Can predict, and thus influence, future behavior
• Interpretivists
– hedonistic pleasures
– consumption behaviors such as fun, fantasy sensuality
– Understanding behaviors in various circumstances.
The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
Arousal of
Motives
• Physiological arousal
– Bodily needs are rooted in an individual's
physiological condition at that moment
– Most physiological cues are involuntary
• Emotional arousal
– Thinking or daydreaming results
in the arousal or stimulation of
latent needs
Arousal of Motives
• Cognitive arousal
• Personal achievement can lead to
a cognitive awareness of needs
• Environmental arousal
– Set of needs may be activated by specific cues in
the environment
– People living in a complex and highly varied
environment may have more opportunities for
need arousal
Philosophies Concerned
With Arousal of
Motives
• Behaviorist School
– Behavior is response to stimulus
– Elements of conscious thoughts are to be ignored
– Consumer does not act, but react
• Cognitive School
– Behavior is directed at goal achievement
– Need to consider needs, attitudes, beliefs, past
experiences, etc. in understanding consumer
behavior
+
Positive
Motivation
Negative
Motivation
A driving force toward some
object or condition.
A driving force away from
some object or condition.
Substitute
Goal
A goal that replaces an
individual’s primary goal
when the goal cannot be
achieved or acquired.
• Although the substitute goal may not
be as satisfactory as the primary goal,
it may be sufficient to dispel
uncomfortable tension.
Defense
Mechanism
Methods by which people
mentally redefine frustrating
situations to protect their
self-images and their selfesteem.
Motivational
Research
Qualitative research
designed to uncover
consumers’ subconscious or
hidden motivations. The
basic premise of
motivational research is that
consumers are not always
aware of, or may not wish to
renewal, the basic reasons
underlying their actions.
Chapter 5
Personality and Consumer
Behavior
What is
Personality?
The inner psychological
characteristics that both
determine and reflect how a
person responds to his or her
environment.
The Nature of Personality
• Personality reflects individual differences
• Personality is consistent and enduring
• Personality can change
Theories of Personality
• Freudian theory
– Unconscious needs or drives are at the heart of
human motivation
• Neo-Freudian personality theory
– Social relationships are fundamental to the
formation and development of personality
• Trait theory
– Quantitative approach to personality as a set of
psychological traits (sort of scales)
Freudian
Psychoanalytic
Theory
A theory of motivation and
personality that postulates
that unconscious needs and
drives, particularly sexual
and other biological drives,
are the basis of human
motivation and personality.
Neo-Freudian
Personality
Theory
A school of psychology that
stresses the fundamental role
of social relationships in the
formation and development
of personality.
Trait Theory
A theory of personality that
focuses on the measurement
of specific psychological
characteristics.
Horney’s CAD Theory
• Using the context of child-parent relationships, individuals can be
classified into:
– Compliant individuals
• moves toward others e.g., one who desires to be loved,
wanted, and appreciated by others
– Aggressive individuals
• moves against others (e.g., competes with others).
– Detached individuals
• moves away from others (e.g., who desires independence,
self-sufficiency, and freedom from obligations).
Personality and Consumer
Diversity
• Some specific consumer traits
are of particular interest to
marketers:
– Consumer Innovativeness
– Cognitive Personality Factors
– Consumer Materialism, Fixated
Consumption Behavior, and
Compulsive Consumption
– Consumer Ethnocentrism
InnerDirected
Consumers
Consumers who tend to rely
on their own “inner” values
or standards in evaluating
new products and are likely
to be consumer innovators.
OuterDirected
Consumers
Consumers who tend to look
to others for direction on
what is “right” and “wrong.”
They are less likely to be
consumer innovators.
Optimum
Stimulation
Levels (OSL)
A personality trait that
measures the level or amount
of novelty or complexity that
individuals seek in their
personal experiences. High
OSL consumers tend to
accept risky and novel
products more readily than
low OSL consumers.
VarietyNovelty
Seeking
A personality trait similar to
OSL, which measures a
consumer’s degree to variety
seeking
Visualizers
Consumers who prefer
visual information and
products that stress the
visual, such as membership
in a videotape cassette club.
Verbalizers
Consumers who prefer
verbal or written information
and products, such as
membership in book clubs or
audiotape clubs
Consumer
Materialism
A personality-like trait of
individuals who regard
possessions as particularly
essential to their identities
and lives.
• The emotional connection between
consumers' self-images and their
possessions is explained by the
concept of the extended self.
Compulsive
Consumption
Consumers who are
compulsive buyers have an
addiction; in some respects,
they are out of control and
their actions may have
damaging consequences to
them and to those around
them.
Consumer
Ethnocentrism
A consumer’s predisposition
to accept or reject foreignmade products.
Brand
Personification
Specific “personality-type”
traits or characteristics
ascribed by consumers to
different brands.
A Brand Personality Framework
Brand
Personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
•Down-toearth
•Honest
•Wholesome
•Cheerful
•Daring
•Spirited
•Imaginative
•Up-to-date
•Reliable
•Intelligent
•Successful
•Upper class
•Charming
•Outdoorsy
•Tough
Role
A pattern of behavior
expected of an individual in
a specific social position,
such as mother, daughter,
teacher, lawyer. One person
may have a number of
different roles, each of which
is relevant in the context of a
specific social situation.
Extended Self
Modification or changing of
the self by which consumers
use self-altering products or
services to conform to or
take on the appearance of a
particular types of person
(e.g., a biker, a physician, a
lawyer, a college professor).
QUIZ 1
MKT 348 CB
Training
Dr. Franck Vigneron
Q1: Individuals high in the need for cognition
would respond to ads that:
A. used celebrity endorsers.
B. used color and graphics to grab consumer
attention.
C. were heavy in product content and description.
D. used images, cartoons, and clip art to explain
the product.
Q2: A primary advantage of differentiated
marketing is that it costs less than mass
marketing.
A. TRUE
B. FALSE
Q3: Despite the drawbacks, some see motivational research:
A. valuable because the unconscious mind has a bigger part in our decisions than
was earlier thought.
B. as empirically verifiable once the proper quantitative techniques are developed.
C. as consistent with biogenic needs and motivations.
D. as the future of market research as traditional methods become less effective.
Q4: The semantic differential scale:
A. asks a respondent how strongly he/she agrees or disagrees with a series of
statements.
B. asks for a consumer to compare a particular brand against the "ideal" brand.
C. consists of a series of bipolar adjectives at each end of an odd numbered
continuum.
D. involves choosing which of a pair of choices (e.g., two brands) a consumer
prefers.
Q5: The _____ believes that all consumer behavior is goal
oriented.
A. affective school
B. behaviorist school
C. cognitive school
D. psychoanalytic school
Q6: An individual's self-image:
A. has no impact on the selection and achievement of goals.
B. only affects higher order needs, ego and selfactualization.
C. directs the individual to choose goals congruent with that
image.
D. determines what are his/her biogenic needs.
Q7: Needs and goals constantly change because:
A. once fully satisfied new needs must be selected.
B. the surrounding environment remains stable.
C. new needs emerge from the satisfaction of old needs.
D. all of the these.
Q8: For Maslow _____ needs are lower-level needs.
A. egoistic
B. psychogenic
C. inanimate object
D. biogenic
Q9: Psychologists consider psychogenic needs as acquired needs
and secondary.
A. TRUE
B. FALSE
Q10: To reach inner-directed consumers, ads should:
A. feature social acceptance.
B. demonstrate an improvement of life or the environment.
C. stress features and personal benefits.
D. be conceptual in nature.
Q11: Some products or services, by their very nature, appeal to consumers
who are bored with their everyday life existence and seek something novel
or exciting. Research suggests that there is a link between consumer
behaviors such as willingness to take risks, try new products, be
innovative, seek purchase-related information, and accept new retail
facilities, and:
A. high optimum stimulation levels.
B. high inner-directedness.
C. low optimum stimulation levels.
D. low inner-directedness.
Q12: The largest drawback of motivational research is:
A. it does not allow to test new ideas
B. about generalizing findings to the total market
C. it limits the research scope
D. it does not explain the cues of decisions making.
Q13: Interpretivists would be interested in:
A. consumer response to promotions.
B. predicting consumer behavior.
C. generalizing their research to specific target markets.
D. the meanings consumers place on key symbols in an ad.
Q14: The emotional connection between consumers' self-images and their
possessions is explained by the concept of the:
A. extended self.
B. social self-image.
C. ideal self-image.
D. expected self-image.