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Consumer Behavior

7th Edition

Wayne D. Hoyer University of Texas, Austin

Deborah J. MacInnis University of Southern California

Rik Pieters Tilburg University

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ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Sec- tion 107 or 108 of the 1976 United States Copyright Act, without the prior writ- ten permission of the publisher.

To my wonderful family, Shirley, David, Stephanie, and Lindsey and to my parents Louis and Doris for their tremendous support

and love. To all of you, I dedicate this book.

Wayne D. Hoyer Austin, Texas

September 2016

To my loving husband, my beautiful children, and my devoted family. You are my life-spring of energy and my center of gravity.

Deborah J. MacInnis Los Angeles, California

September 2016

To Trees who loves me and �omas who knew everything.

Rik Pieters Tilburg

September 2016

About the Authors

Wayne D. Hoyer Wayne D. Hoyer is the James L. Bayless/William S. Farish Fund Chair for Free Enterprise in the McCombs School of Business at the University of Texas at Austin. He received his Ph.D. in Consumer Psychology from Purdue University in 1980. He also holds an honorary doctorate from the University of Bern in Switzerland and was recently given a Humboldt Research Award in Germany. His major area of study is Consumer Psychology and his research interests include consumer information processing and decision-making, customer relationship management, consumer brand sabotage, and advertising information processing (including miscomprehension, humor, and brand personality). Wayne has published over 100 articles in various publications including the Journal of Consumer Research, Journal of Marketing, Journal of Marketing Research, Journal of Advertising Research, and Journal of Retailing. A 1998 article in the Journal of Marketing Research (with Susan Broniarczyk and Leigh McAlister) won the O’Dell Award in 2003 for having the most impact in the marketing field over that five-year period. In addition to Consumer Behavior, he has co-authored two books on the topic of advertising miscomprehension. He is a current area editor for the Journal of Marketing, a Marketing, a Marketing Senior Editor for the International Journal of Research in Marketing, a former associate editor for the Journal of Consumer Research and serves on eight editorial review boards including the Journal of Marketing Research, Journal of Consumer Research, and Journal of Consumer Psychology. His major areas of teaching include consumer behavior, customer strategy, and marketing communications. He has also taught internationally at the University of Mannheim, the University of Muenster, and the Otto Beisheim School of Management (all in Germany), the University of Bern in Switzerland, the University of Cambridge (UK), and Thammasat University in Thailand. He has also been the Montezemolo Visiting Research Fellow in the Judge School of Business and is a Visiting Fellow of Sidney Sussex College at the University of Cambridge (UK).

Deborah J. MacInnis Debbie MacInnis (Ph.D., University of Pittsburgh 1986) is the Charles L. and Ramona I. Hilliard Professor of Business Administration and Professor of Marketing at the University of Southern California in Los Angeles, CA. She has previously held positions as Chairperson of the Marketing Department, Vice Dean for Research and Strategy and Dean of the Undergraduate Programs at Marshall. Debbie has published papers in the Journal of Consumer Research, Journal of Marketing Research, Journal of Marketing, Journal of Personality and Social Psychology, Psychology and Marketing, and others in the areas of Personality and Social Psychology, Psychology and Marketing, and others in the areas of Personality and Social Psychology, Psychology and Marketing marketing communications, information processing, imagery, emotions, and branding. She has also published two co-edited volumes and a book on branding and consumer-brand relationships. She is former co-editor of the Journal of Consumer Research, and served as an Associate Editor for the Journal of Consumer Research, the Journal of Consumer Psychology, and the Journal of Marketing and has won outstanding reviewer awards from the Journal of Marketing and has won outstanding reviewer awards from the Journal of Marketing these journals. Debbie has served as Conference Co-Chair, Treasurer, and President of the Association for Consumer Research. She has also served as Vice President of Conferences and Research for the Academic Council of the American Marketing Association. She has received major awards for her research, including the Alpha Kappa Psi and Maynard awards, given to the best practice- and theory-based articles, respectively, published in the Journal of Marketing. Debbie’s research has also been named as a finalist for the Practice Prize Competition for contributions to marketing, and the Converse Award for significant

long-term contributions to marketing. She has been named recipient of the Marshall Teaching Innovation Award, the Dean’s Award for Community, and the Dean’s Award for Research from the Marshall School of Business. She has also received the USC mentoring work for her mentoring of faculty. Her classes have won national awards through the SAA National Advertising Competition. Debbie enjoys travel, reading, and being in nature.

Rik Pieters Rik Pieters is Professor of Marketing at the Tilburg School of Economics and Management (TISEM) of Tilburg University, the Netherlands. He received his Ph.D. in Social Psychology from the University of Leiden in 1989. Rik believes in interdisciplinary work, and that imagination, persistence, and openness to surprise are a person’s biggest assets. He has published over 100 articles in marketing, psychology, economics, and statistics. His work has appeared in Journal of Consumer Psychology, Journal of Consumer Research, Journal of Marketing, Journal of Marketing Research, Marketing Science, Management Science, and International Journal of Research in Marketing. He has published in the Journal of Personality and Social Psychology, Organizational Behavior and Human Decision Processes, European Journal of Social Psychology, Emotion, Psychological Science, and Journal of Economic Literature. Currently, Rik is an Associate Editor of the Journal of Marketing Research. His research concerns attention and memory processes in marketing communication, and the role of emotions in consumer decision-making. He has served as Co-Chair of the Association for Consumer Research annual conference, and has co-organized special conferences on visual marketing, social communication, and service marketing and management. He has taught internationally at Pennsylvania State University; University of Innsbruck, Austria; Koc University, Turkey; and the University of Auckland, New Zealand. He has won best teaching awards at the school and university levels. He has been Strategy Director for National and International clients at the Publicis/FCB advertising agency, Amsterdam office. He bakes bread, rides bikes, plays the bass, and drinks hoppy, fermented barley beverages, all except the first in moderation. In his spare time, he works.

ABOUT THE AUTHORS v

Part 1 An Introduction to Consumer Behavior 3 1 Understanding Consumer Behavior 4

Appendix Developing Information About Consumer Behavior 28

Part 2 �e Psychological Core 43 2 Motivation, Ability, and Opportunity 44

3 From Exposure to Comprehension 72

4 Memory and Knowledge 100

5 Attitudes Based on High Effort 127

6 Attitudes Based on Low Effort 154

Part 3 �e Process of Making Decisions 179 7 Problem Recognition and Information Search 180

8 Judgment and Decision-Making Based on High Effort 206

9 Judgment and Decision-Making Based on Low Effort 234

10 Post-Decision Processes 258

Part 4 �e Consumer’s Culture 291 11 Social In�uences on Consumer Behavior 292

12 Consumer Diversity 321

13 Household and Social Class In�uences 346

14 Psychographics: Values, Personality, and Lifestyles 373

Part 5 Consumer Behavior Outcomes and Issues 403

15 Innovations: Adoption, Resistance, and Diffusion 404

16 Symbolic Consumer Behavior 429

17 Marketing, Ethics, and Social Responsibility in Today’s Consumer Society 457

Brief Contents

vii

1-1 Defining Consumer Behavior 5 1-1a Consumer Behavior Involves Goods, Services,

Activities, Experiences, People, and Ideas 5 1-1b Consumer Behavior Involves More than Buying 5 1-1c Consumer Behavior Is a Dynamic Process 7 1-1d Consumer Behavior Can Involve Many People 7 1-1e Consumer Behavior Involves Many Decisions 7 1-1f Consumer Behavior Involves Emotions and Coping 11

1-2 What Affects Consumer Behavior? 11 1-2a The Psychological Core: Internal Consumer Processes 11 1-2b The Process of Making Decisions 12 1-2c The Consumer’s Culture: External Processes 13 1-2d Consumer Behavior Outcomes and Issues 14

1-3 Who Benefits from the Study of Consumer Behavior? 15 1-3a Marketing Managers 15 1-3b Ethicists and Advocacy Groups 15 1-3c Public Policy Makers and Regulators 16

1-3d Academics 16 1-3e Consumers and Society 16

1-4 Making Business Decisions Based on the Marketing Implications of Consumer Behavior 16

1-4a Developing and Implementing Customer-Oriented Strategy 16

1-4b Selecting the Target Market 17 1-4c Developing Products 17 1-4d Positioning 18 1-4e Making Promotion and Marketing Communications

Decisions 18 1-4f Making Pricing Decisions 19 1-4g Making Distribution Decisions 20

Summary 22

Endnotes 22

Consumer Behavior Research Methods 28 Surveys 28 Focus Groups 29 Interviews 30 Storytelling 30 Photography and Pictures 31 Diaries 31 Experiments 31 Field Experiments 32 Conjoint Analysis 32 Observations and Ethnographic Research 32 Purchase Panels 33 Database Marketing and Big Data 33 Netnography 33 Psychophysiological Reactions and Neuroscience 34

Types of Consumer Researchers 34 In-House Marketing Research Departments 34

External Marketing Research Firms 35 Advertising Agencies and Media Planning Firms 36 Syndicated Data Services 36 Retailers 36 Research Foundations and Trade Groups 37 Government 37 Consumer Organizations 37 Academics and Academic Research Centers 37

Ethical Issues in Consumer Research 38 The Positive Aspects of Consumer Research 38 The Negative Aspects of Consumer Research 38

Summary 39

Endnotes 39

Part 1 An Introduction to Consumer BehaviorPart 1 An Introduction to Consumer Behavior 3

Chapter 1 Understanding Consumer Behavior 4

Appendix Developing Information About Consumer Behavior 28

Contents About the Authors iv

Preface xiv

CONTENTSviii

2-1 Consumer Motivation and Its Effects 45 2-1a High-Effort Behavior 45 2-1b High-Effort Information Processing and

Decision-Making 45 2-1c Felt Involvement 45

2-2 What Determines Motivation? 47 2-2a Personal Relevance 48 2-2b Consistency with Self-Concept 48 2-2c Values 48 2-2d Needs 48 2-2e Goals 52 2-2f Goals and Emotions 55 2-2g Self-Control and Goal Conflict 55 2-2h Perceived Risk 58 2-2i Inconsistency with Attitudes 60

2-3 Consumer Ability: Resources to Act 60 2-3a Financial Resources 61 2-3b Cognitive Resources 61 2-3c Emotional Resources 61 2-3d Physical Resources 61 2-3e Social and Cultural Resources 62 2-3f Education and Age 62

2-4 Consumer Opportunity 63 2-4a Time 63 2-4b Distraction 63 2-4c Complexity, Amount, Repetition, and Control

of Information 63

Summary 65

Endnotes 65

Part 2 �e Psychological CorePart 2 �e Psychological Core 43

Chapter 2 Motivation, Ability, and Opportunity 44

3-1 Exposure and Consumer Behavior 73 3-1a Factors Influencing Exposure 73 3-1b Selective Exposure 73

3-2 Attention and Consumer Behavior 76 3-2a Characteristics of Attention 76 3-2b Focal and Nonfocal Attention 76 3-2c Customer Segments Defined by Attention 80 3-2d Habituation 80

3-3 Perception and Consumer Behavior 80 3-3a Perceiving Through Vision 80 3-3b Perceiving Through Hearing 81

3-3c Perceiving Through Taste 81 3-3d Perceiving Through Smell 81 3-3e Perceiving Through Touch 82 3-3f When Do We Perceive Stimuli? 84 3-3g How Do Consumers Perceive a Stimulus? 86

3-4 Comprehension and Consumer Behavior 87 3-4a Source Identification 87 3-4b Message Comprehension 87 3-4c Consumer Inferences 89

Summary 92

Endnotes 92

Chapter 3 From Exposure to Comprehension 72

4-1 What Is Memory? 102 4-1a Sensory Memory 102 4-1b Working Memory 102 4-1c Long-Term Memory 103 4-1d Explicit Memory, Implicit Memory, and Processing

Fluency 104 4-1e How Memory Is Enhanced 104

4-2 Knowledge Content, Structure, and Flexibility 105

4-2a Knowledge Content: Schemas and Scripts 105 4-2b Knowledge Structure: Categories 111

4-2c Knowledge Flexibility 114 4-2d Why Consumers Differ in Knowledge Content and

Structure 115

4-3 Memory and Retrieval 116 4-3a Retrieval Failures 116 4-3b Retrieval Errors 117 4-3c Enhancing Retrieval 118 4-3d Characteristics of the Stimulus 118

Summary 120

Endnotes 120

Chapter 4 Memory and Knowledge 100

CONTENTS ix

5-1 What Are Attitudes? 128 5-1a The Importance of Attitudes 128 5-1b The Characteristics of Attitudes 128 5-1c Forming and Changing Attitudes 128

5-2 The Cognitive Foundations of Attitudes 129

5-2a Direct or Imagined Experience 131 5-2b Reasoning by Analogy or Category 131 5-2c Values-Driven Attitudes 131 5-2d Social Identity-Based Attitude

Generation 131 5-2e Analytical Processes of Attitude

Formation 131

5-3 How Cognitively Based Attitudes are Influenced 135 5-3a Communication Source 135 5-3b The Message 137

5-4 The Affective (Emotional) Foundations of Attitudes 139

5-5 How Affectively Based Attitudes Are Influenced 141 5-5a The Source 141 5-5b The Message 142

5-6 Attitude Toward the AD 144

5-7 When Do Attitudes Predict Behavior? 144

Summary 147

Endnotes 147

Chapter 5 Attitudes Based on High Effort 127

6-1 High-Effort Versus Low-Effort Routes to Persuasion 155

6-2 Unconscious Influences on Attitudes When Consumer Effort Is Low 155

6-2a Thin-Slice Judgments 155 6-2b Body Feedback 155

6-3 Cognitive Bases of Attitudes When Consumer Effort Is Low 157

6-4 How Cognitive Attitudes Are Influenced 158 6-4a Communication Source 158 6-4b The Message 158 6-4c Message Context and Repetition 160

6-5 Affective Bases of Attitudes When Consumer Effort Is Low 160

6-5a The Mere Exposure Effect 160 6-5b Classical and Evaluative Conditioning 161 6-5c Attitude Toward the Ad 163 6-5d Mood 164

6-6 How Affective Attitudes Are Influenced 165 6-6a Communication Source 165 6-6b The Message 166

Summary 171

Endnotes 171

Chapter 6 Attitudes Based on Low Effort 154

7-1 Problem Recognition 182 7-1a The Ideal State: Where We Want to Be 182 7-1b The Actual State: Where We Are Now 182

7-2 Internal Search: Searching for Information from Memory 183

7-2a How Much Do We Engage in Internal Search? 183 7-2b What Kind of Information Is Retrieved from Internal

Search? 184 7-2c Is Internal Search Always Accurate? 188

7-3 External Search: Searching for Information from the Environment 189

7-3a Where Can We Search for Information? 189

7-3b How Much Do We Engage in External Search? 192 7-3c What Kind of Information Is Acquired in External

Search? 197 7-3d Is External Search Always Accurate? 198 7-3e How Do We Engage in External Search? 198

Summary 200

Endnotes 200

Part 3 �e Process of Making DecisionsPart 3 �e Process of Making Decisions 179

Chapter 7 Problem Recognition and Information Search 180

CONTENTSx

8-1 High-Effort Judgment Processes 208 8-1a Judgments of Likelihood and Goodness/

Badness 208 8-1b Mental and Emotional Accounting 209 8-1c Biases in Judgment Processes 209

8-2 High-Effort Decisions and High-Effort Decision-Making Processes 210

8-2a Deciding Which Brands to Consider 211 8-2b Deciding Which Criteria Are Important to the

Choice 212

8-3 Deciding What Brand to Choose: Thought-Based Decisions 214

8-3a Decisions Based on Brands 216 8-3b Decisions Based on Product Attributes 217 8-3c Decisions Based on Gains and

Losses 218

8-4 Deciding What Brand to Choose: High-Effort Feeling-Based Decisions 219

8-4a Appraisals and Feelings 220 8-4b Affective Forecasts and Choices 220 8-4c Imagery 221

8-5 Additional High-Effort Decisions 222 8-5a Decision Delay 222 8-5b Decision-Making When Alternatives Cannot

Be Compared 222

8-6 What Affects High-Effort Decisions? 223 8-6a Consumer Characteristics 223 8-6b Characteristics of the Decision 224 8-6c Group Context 225

Summary 227

Endnotes 228

Chapter 8 Judgment and Decision-Making Based on High Effort 206

9-1 Low-Effort Judgment Processes 236 9-1a The Representativeness Heuristic 236 9-1b The Availability Heuristic 236

9-2 Low-Effort Decision-Making Processes 237 9-2a Unconscious Low-Effort Decision-Making 237 9-2b Conscious Low-Effort Decision-Making 238 9-2c Using Simplifying Strategies When Consumer

Effort Is Low 238

9-3 Learning Choice Tactics 239 9-3a Reinforcement 239 9-3b Punishment 239 9-3c Repeat Purchase 240 9-3d Choice Tactics Depend on the Product 240

9-4 Low-Effort Thought-Based Decision-Making 240 9-4a Performance as a Simplifying Strategy 241

9-4b Habit as a Simplifying Strategy 241 9-4c Brand Loyalty as a Simplifying Strategy 243 9-4d Price as a Simplifying Strategy 245 9-4e Normative Influences as a Simplifying Strategy 247

9-5 Low-Effort Feeling-Based Decision-Making 247 9-5a Feelings as a Simplifying Strategy 247 9-5b Brand Familiarity 248 9-5c Decision-Making Based on Variety-Seeking Needs 249 9-5d Buying on Impulse 250

Summary 252

Endnotes 252

Chapter 9 Judgment and Decision-Making Based on Low Effort 234

10-1 Post-Decision Dissonance and Regret 260 10-1a Dissonance 260 10-1b Regret 260

10-2 Learning from Consumer Experience* 261 10-2a A Model of Learning from Consumer Experience 261 10-2b What Affects Learning? 262

10-3 How Do Consumers Make Satisfaction or Dissatisfaction Judgments? 264

10-3a Satisfaction/Dissatisfaction Based on Thoughts 266 10-3b Satisfaction/Dissatisfaction Based on Feelings 270

10-4 Responses to Dissatisfaction 272 10-4a Complaints 272

10-4b Responding to Service Recovery 274 10-4c Responding by Negative Word of Mouth 274

10-5 Is Customer Satisfaction Enough? 275 10-5a Customer Retention 275 10-5b Product-Harm Crises 275

10-6 Disposition 276 10-6a Disposing of Meaningful Objects 278 10-6b Recycling 279

Summary 282

Endnotes 282

Chapter 10 Post-Decision Processes 258

CONTENTS xi

11-1 Sources of Influence 294 11-1a Marketing and Nonmarketing Sources 294 11-1b How Do These General Sources Differ? 295 11-1c Opinion Leaders 297

11-2 Reference Groups as Sources of Influence 298 11-2a Types of Reference Groups 298 11-2b Characteristics of Reference Groups 300 11-2c Reference Groups Affect Consumer Socialization 303

11-3 Normative Influence 303 11-3a How Normative Influence Can Affect Consumer

Behavior 304

11-3b What Affects Normative Influence Strength 305

11-4 Informational Influence 309 11-4a Factors Affecting Informational Influence Strength 309 11-4b Descriptive Dimensions of Information 310 11-4c The Pervasive and Persuasive Influence

of Word of Mouth 311

Summary 314

Endnotes 315

Part 4 �e Consumer’s CulturePart 4 �e Consumer’s Culture 291

Chapter 11 Social In�uences on Consumer Behavior 292

12-1 How Age Affects Consumer Behavior 323 12-1a Age Trends in the United States 323 12-1b Teens and Millennials 323 12-1c Generation X 326 12-1d Boomers 326 12-1e Seniors 327

12-2 How Gender and Sexual Orientation Affect Consumer Behavior 329

12-2a Sex Roles 329 12-2b Differences in Acquisition and Consumption

Behaviors 329 12-2c Gender and Sexual Orientation 331

12-3 How Regional Influences Affect Consumer Behavior 331

12-3a Regions Within the United States 332 12-3b Regions Across the World 333

12-4 How Ethnic and Religious Influences Affect Consumer Behavior 334

12-4a Ethnic Groups Within the United States 334 12-4b Ethnic Groups Around the World 338 12-4c The Influence of Religion 339

Summary 340

Endnotes 340

Chapter 12 Consumer Diversity 321

13-1 How the Household Influences Consumer Behavior 348

13-1a Types of Households 348 13-1b Households and Family Life Cycle 348 13-1c Changing Trends in Household

Structure 349

13-2 Roles that Household Members Play 351 13-2a The Roles of Spouses 352 13-2b The Role of Children 353

13-3 Social Class 355 13-3a Types of Social Class Systems 356 13-3b Social Class Influences 356 13-3c How Social Class Is Determined 356 13-3d How Social Class Changes Over Time 359

13-4 How Does Social Class Affect Consumption? 361 13-4a Conspicuous Consumption and Voluntary

Simplicity 361 13-4b Status Symbols and Judging Others 361 13-4c Compensatory Consumption 361 13-4d The Meaning of Money 362

13-5 The Consumption Patterns of Specific Social Classes 363

13-5a The Upper Class 364 13-5b The Middle Class 364 13-5c The Working Class 364 13-5d The Homeless 365

Summary 367

Endnotes 368

Chapter 13 Household and Social Class In�uences 346

CONTENTSxii

14-1 Values 375 14-1a How Values Can Be Described 375 14-1b The Values That Characterize Western Cultures 376 14-1c Why Values Change 381 14-1d Influences on Values 381 14-1e How Values Can Be Measured 384

14-2 Personality 386 14-2a Research Approaches to Personality 386 14-2b Determining Whether Personality Characteristics

Affect Consumer Behavior 388

14-3 Lifestyles 391 14-3a Lifestyle and Behavior Patterns 391 14-3b Voluntary Simplicity 392

14-4 Psychographics: Combining Values, Personality, And Lifestyles 394

14-4a VALSTM 394 14-4b Other Applied Psychographic Research 394

Summary 396

Endnotes 396

Chapter 14 Psychographics: Values, Personality, and Lifestyles 373

15-1 Innovations 404 15-1a Defining an Innovation 406 15-1b Innovations Characterized by Degree

of Novelty 406 15-1c Innovations Characterized by Benefits

Offered 406 15-1d Innovations Characterized by Breadth 407 15-1e Innovations and Cocreation 407 15-1f The Consequences of Innovations 408

15-2 Resistance Versus Adoption 409 15-2a Whether Consumers Adopt

an Innovation 409 15-2b How Consumers Adopt an Innovation 410 15-2c When Consumers Adopt Innovations 411

15-3 Diffusion 414 15-3a How Offerings Diffuse Through a Market 414 15-3b Factors Affecting the Shape of the Diffusion Curve 414 15-3c How Diffusion Relates to the Product Life Cycle 415

15-4 Influences on Adoption, Resistance, and Diffusion 416 15-4a Characteristics of the Innovation 416 15-4b Uncertainty 418 15-4c Consumer Learning Requirements 418 15-4d Social Relevance 421 15-4e Legitimacy and Adaptability 422 15-4f Characteristics of the Social System 423

Summary 424

Endnotes 425

Part 5 Consumer Behavior Outcomes and IssuesPart 5 Consumer Behavior Outcomes and Issues 403

Chapter 15 Innovations: Adoption, Resistance, and Diffusion 404

16-1 Sources and Functions of Symbolic Meaning 431 16-1a Meaning Derived from Culture 431 16-1b Meaning Derived from the Consumer 432 16-1c The Emblematic Function 432 16-1d The Role Acquisition Function 435 16-1e The Connectedness Function 438 16-1f The Expressiveness Function 438 16-1g Multiple Functions 438 16-1h Symbols and Self-Concept 439

16-2 Special Possessions and Brands 440 16-2a Special Brands 441 16-2b Types of Special Possessions 441 16-2c The Characteristics That Describe Special Possessions 442

16-2d Why Some Products Are Special 443 16-2e Consumer Characteristics Affect What Is Special 443 16-2f Rituals Used with Special Possessions 443 16-2g Disposing of Special Possessions 445

16-3 Sacred Meaning 445

16-4 The Transfer of Symbolic Meaning Through Gift Giving 446

16-4a The Timing of Gifts 447 16-4b Three Stages of Gift Giving 447

Summary 451

Endnotes 451

Chapter 16 Symbolic Consumer Behavior 429

CONTENTS xiii

17-1 In Search of Balance 459 17-1a Self-interest Versus the Interests of Others 459 17-1b Immediate Versus Long-Term Interests 459 17-1c “Dark Side” Versus “Bright Side” Outcomes 460

17-2 Marketing Ethics, Consumer Ethics, and Deviant Consumer Behavior 460

17-2a Acquisition Controversies 461 17-2b Consumption Controversies 466 17-2c Disposition Controversies 471

17-3 Social Responsibility Issues in Marketing 472 17-3a Environmentally Conscious Behavior and Ethical

Sourcing 472

17-3b Charitable Behavior 474 17-3c Community Involvement 474

17-4 How Can Consumers Resist Marketing Practices? 475

Summary 476

Endnotes 476

Glossary 482

Name/Author Index 491

Product Index 511

Subject Index 515

Chapter 17 Marketing, Ethics, and Social Responsibility in Today’s Consumer Society 457

At just about every moment of our lives, we engage in some form of consumer behavior. When we look for posts on social media, watch an ad on TV, send a text message to friends about a movie we just saw, brush our teeth, go to a ball game or to a beach party, visit a website, download a new song, or even throw away an old pair of shoes, we are behaving as a consumer. Being a consumer reaches into every part of our lives. Of course, we are much more than just consumers. We are students, teammates, family members, employees, citi- zens, voters, patrons, patients, clients, neighbors, basketball fans, ice-cream lovers, bloggers, inventors, and more. This book is dedicated to our role as consumers.

Given its omnipresence, the study of consumer behav- ior has critical implications for areas such as marketing, public policy, and ethics. It also helps us learn about ourselves—why we buy certain things, why we use them in a certain way, and how we remove them from our lives through practices like throwing them away, selling, re-gifting, and donating them.

In this book we explore the fascinating world of con- sumer behavior, looking at a number of interesting and exciting topics. Some of these are quickly identified with our typical image of consumer behavior. Others may be surprising. We hope you will see why we became stimulated and drawn to this topic from the very moment we had our first consumer behavior course as students. We hope you will also appreciate why we choose to make this field our life’s work, and why we are dedicated to this textbook.

Why the New Edition of This Book? There are a number of consumer behavior books on the market. An important question concerns what this book has to offer and what distinguishes it from other texts. As active researchers in the field of consumer behavior, our overriding goal was to continue providing a treatment of the field that is up to date and cutting edge. There has been an explosion of research on a variety of consumer behavior topics over the last 30 years. Our primary aim was to pro- vide a useful summary of this material for students of mar- keting. However, in drawing on cutting-edge research, we wanted to be careful not to become too “academic.” Instead, our objective is to present cutting-edge topics in a man- ner that is accessible and easy for students to understand, and provides context for how and why consumer behavior insights are applied in real-world marketing.

Specific changes and improvements to the seventh edi- tion of this book include:

▪ Accessible explanations of the latest academic research and classic research from consumer behavior studies, and their practical implications for marketing strategy worldwide.

▪ Global perspective of research and behavioral concepts related to such important contemporary topics as financial management and money decisions, marketing ethics, privacy and transparency, obesity, materialism, self-control and self-regulation, conta- gion, emotions, mobile marketing, social media, and unconscious consumer behavior.

▪ Carefully edited narrative and examples make the content easier for students to process and connect with basic marketing principles as well as personal consumer experiences.

▪ Balanced coverage of marketing controversies and the challenges and opportunities of marketing as a force for social responsibility.

▪ New and updated examples highlight how all kinds of organizations in many nations use insights into consumer behavior to improve their marketing effectiveness and creativity.

▪ New database analysis exercises offer students an opportunity to make marketing decisions based on consumer demographics and behavior styles.

▪ Improved synergistic and digitally accessible supplemental materials allow students the opportunity to participate in self-assessments, polls, and short videos for self-reflection and more; Additional short readings are also available. These materials are both student friendly and extremely helpful for effec- tive learning using the Cengage MindTap platform. A description of the MindTap platform appears later in this preface.

Textbook Features As award-winning teachers, we have tried to translate our instructional abilities and experience into the writing of this text. The following features have been a natural out- growth of these experiences.

Preface

xiv

Conceptual Model First, we believe that students can learn best when they see the big picture—when they understand what concepts mean, how these concepts are used in business practice, and how these relate to one another. In our opinion, con- sumer behavior is too often presented as a set of discrete topics with little or no relationship to one another. We have therefore developed an overall conceptual model that helps students grasp the big picture and see how the chap- ters and topics are themselves interrelated. Each chapter is linked to other chapters by a specific model that fits within the larger model. Further, the overall model guides the organization of the book. This organizing scheme makes the chapters far more integrative than most other books. Instructors have told us that this conceptual model is a valuable and beneficial aide to student learning.

Practical Orientation, with an Emphasis on Globalization and Social Media Second, we believe that insights into consumer behav- ior are interesting in and of themselves, but also that they should be relevant to managerial practice. The ulti- mate goal of consumer behavior theory and research is to improve the decision-making ability of managers in profit and nonprofit organizations who aim to cater to consumers’ needs, and to help policy makers better pro- tect consumers. Rather than merely translating general psychological or sociological principles and theories to a consumer context, this book is dedicated to understand- ing consumer behavior in order to improve managerial practice. Given our notion that students enjoy seeing how the concepts in consumer behavior can apply to business practice, a second objective of the book was to provide a very practical orientation. We include a wealth of con- temporary real-world examples to illustrate key topics. We also try to broaden students’ horizons by providing a number of international examples. Given the impor- tance of online consumer behavior, the new edition also fully treats the advent and implications of the latest digital developments, social media marketing, and mobile mar- keting applications.

Current and Cutting-Edge Coverage Third, we provide coverage of the field of consumer behav- ior that is as current and up to date as possible (including many of the recent research advances). This includes sev- eral novel chapters that often do not appear in other text- books: “Attitudes Based on Low Effort,” “Judgement and Decision Making Based on Low Effort,” and “Marketing Ethics and Social Responsibility in Today’s Consumer

Society.” These important topics are likely to be of consid- erable interest to students. Instructors have told us how much they appreciate the cutting-edge nature of our book and its ability to keep abreast of the latest research in con- sumer behavior. Students appreciate that this material is delivered in an engaging way that’s also easy to read.

Balanced Treatment of Micro and Macro Topics Fourth, our book tries to provide a balanced perspective on the field of consumer behavior. Specifically, we give treatment to both psychological (micro) consumer behav- ior topics (e.g., attitudes, decision-making) and sociolog- ical (macro) consumer behavior topics (e.g., subculture, gender, social class influences). Also, although we typically teach consumer behavior by starting with the more micro topics and then moving up to more macro topics, we real- ize that some instructors prefer the reverse sequence.

Broad Conceptualization of the Subject Fifth, we present a broad conceptualization of the topic of consumer behavior. While many books focus on what products or services consumers buy, consumer behav- ior scholars have recognized that the topic of consumer behavior is much broader. Specifically, rather than study- ing buying per se, we recognize that consumer behavior includes a set of decisions (what, whether, when, where, set of decisions (what, whether, when, where, set why, how, how often, how much, how long) about acqui- sition (including, but not limited to buying), usage, shar- ing, and disposition decisions. Focusing on more than what products or services consumers buy provides a rich set of theoretical and practical implications for both our understanding of consumer behavior and the practice of marketing.

Finally, we consider the relevance of consumer behav- ior to many constituents, not just marketers. Chapter 1 indicates that consumer behavior is important to mar- keters, public policy makers, ethicists and consumer advocacy groups, and consumers themselves (including students). Some chapters focus exclusively on the impli- cations of consumer behavior for public policy makers, ethicists, and consumer advocacy groups. Other chapters consider these issues as well, though in less detail.

Content and Organization of the Book One can currently identify two main approaches to the study of consumer behavior: One approach focuses on the individual psychological processes that consumers

xvPREFACE

xvi PREFACE

use to make acquisition, consumption, and disposition decisions. A second approach focuses on group behaviors and the symbolic nature of consumer behavior. This lat- ter orientation draws heavily from such fields as sociol- ogy, culture theory, and anthropology. Both orientations are represented in this book. The current book and overall model have been structured around a “micro to macro” organization based on the way we teach this course and the feedback that we have received from reviewers.

Chapter 1 in Part I, “An Introduction to Consumer Behavior,” presents an introduction to consumer behav- ior. It helps students understand the breadth of the field, and its importance to marketers, advocacy groups, public policy makers, and consumers themselves. This chapter introduces some of the newest research and presents the overall model that guides the organization of the text. An Appendix, which follows Chapter 1, introduces methods by which consumer research is conducted.

Part II, “The Psychological Core,” focuses on the inner psychological processes that affect consumer behavior. We see that the amount of effort consumers put into their acquisition, usage, and disposition behaviors and deci- sions has significant effects on the decisions they make. Chapter 2 describes three critical factors that affect effort: the (1) motivation or desire, (2) ability (knowledge and information), and (3) opportunity to engage in behaviors and make decisions. The key role of emotions is also dis- cussed. In Chapter 3, we then examine how consumers process information in their environments (ads, prices, product features, word-of-mouth communications, etc.). We consider how they come in contact with these stim- uli (exposure), notice them (attention), and perceive them (perception). Chapter 4 continues by discussing how consumers compare new things they encounter in their environment to their existing knowledge, a process called categorization, and how they make sense of or comprehend them on a deeper level. Also, because consumers often must remember the information they have previously stored in order to make decisions, this chapter examines the important topic of consumer memory. In Chapters 5 and 6, we see how attitudes are formed and changed depending on whether the amount of effort consumers devote to forming an attitude is high or low and whether attitudes are cognitively or affectively based.

Whereas Part II examines some of the internal factors that influence consumers’ decisions, a critical domain of consumer behavior involves understanding how consum- ers make acquisition, consumption, and disposition deci- sions. Thus, in Part III, “The Process of Making Decisions,” we examine the sequential steps of the consumer deci- sion-making process. In Chapter 7, we examine the initial steps of this process—problem recognitionsteps of this process—problem recognitionsteps of this process— and information search. Similar to the attitude change processes described earlier, we next examine the consumer decision-making process, both when effort is high (Chapter 8) and when

it is low (Chapter 9). Further, in both chapters we exam- ine these important processes from both a cognitive and an affective perspective. Finally, the process does not end after a decision has been made. In Chapter 10, we see how consumers determine whether they are satisfied or satisfied or satisfied dissat- isfied with their decisions and how they isfied with their decisions and how they isfied learn from choos- ing and consuming products and services.

Part IV, “The Consumer’s Culture,” examines how various aspects of culture affect consumer behavior. First, Chapter 11 considers how, when, and why the specific reference groups (friends, work group, clubs) to which we belong can influence acquisition, usage, and disposition decisions and behaviors. Then, we see how consumer diversity (in terms of age, gender, sexual orientation, region, ethnicity, and religion) can affect consumer behavior in Chapter 12. Chapter 13 then examines how social class and household characteristics influence acquisi- tion, usage, and disposition behaviors. Finally, Chapter 14 examines how external influences affect our personality, lifestyle, and values, as well as consumer behavior.

Finally, Part V, “Consumer Behavior Outcomes,” examines the effects of the numerous influences and decision processes discussed in the previous three sections. Chapter 15 builds on the topics of internal decision-making and group behav- ior by examining how consumers adopt new offerings, and how their adoption decisions affect the spread or diffusion of an offering through a market. Because products and ser- vices often reflect deep-felt and significant meanings (e.g., our favorite song or restaurant), Chapter 16 focuses on the excit- ing topic of symbolic consumer behavior. Finally, Chapter 17 examines marketing, ethics, and social responsibility, including a look at marketing controversies and the use of marketing for constructive purposes.

Pedagogical Advantages Based on our extensive teaching experience, we have incorporated a number of features that should help stu- dents learn about consumer behavior.

Chapter Opening Model Each chapter begins with a conceptual model that shows the organization of the chapter, the topics discussed, and how they relate both to one another and to other chapters. Each model reflects an expanded picture of one or more of the elements presented in the overall conceptual model for the book (described in Chapter 1).

Marketing Implication Sections Numerous Marketing Implications sections are interspersed throughout each chapter. These sections illustrate how various consumer behavior concepts can be applied to the practice

xviiPREFACE

of marketing, including such basic marketing functions as market segmentation, target market selection, positioning, market research, promotion, price, product, and place decisions. An abundance of marketing examples (from many countries and many industries) provide concrete applications and implementations of the concepts to marketing practice.

Marginal Glossary Every chapter contains a set of key terms that are both high- lighted in the text and defined in margin notes. These terms and their definitions should help students identify and remember the central concepts described in the chapter.

Rich Use of Full-Color Exhibits Each chapter contains a number of illustrated examples, including photos, advertisements, charts, and graphs. These illustrations help to make important topics person- ally relevant and engaging, help students remember the material, and make the book more accessible and aesthet- ically pleasing, thereby increasing students’ motivation to learn. All diagrams and charts employ full color, which serves to both highlight key points and add to the aes- thetic appeal of the text. Each model, graph, ad, and photo also has an accompanying caption that provides a simple description and explanation of how the exhibit relates to the topic it is designed to illustrate.

End-of-Chapter Summaries The end of each chapter provides students with a simple and concise summary of topics. These summaries are a good review tool to use with the conceptual model to help students to get the big picture.

End-of-Chapter Questions Each chapter includes a set of review and discussion questions designed to help students recall and more deeply understand the concepts in the chapter.

Complete Teaching Package with Online Content In addition to online content for students including self-assessments, polls, and short videos for self-reflection, a variety of ancillary materials have been designed to help the instructor in the classroom. All of these supplements have been carefully coordinated to support the text and provide an integrated and synergistic set of materials for the instructor. Dr. Angeline Close Scheinbaum of

The University of Texas at Austin authors the digital content and has revised and updated the instructor’s teaching manual. She brings a modern approach, and includes experiential aspects of consumer behavior in the supplements. Her objective in this project is twofold:

▪ Give students digital content so they can have more real-world examples of the theoretical content and opportunities for self-assessment and more critical thinking, while enhancing the student learning expe- rience via more interactive and visually engaging supplements.

▪ Help instructors, especially newer instructors, by giving modern supplements that are synergistic with each other. That is, the text, the Instructor’s Manual, Test Bank, PowerPoint presentations, and quizzes reinforce the same learning objectives and content.

▪ MindTap for Marketing: Consumer Behavior

As authors, one frustration we’ve had in the past is providing current examples. Every day, new and inter- esting video, audio, and print content that relates to consumer behavior is covered in the media. Now technology helps us make such content immediately accessible to students. We have partnered with Cen- gage Learning to provide students with access to cur- rent issues in Consumer Behavior through the content of Business Insights. We have selected exciting content from Business Insights which contains readings and videos from sources like The New York Times, The Economist magazine, and Economist magazine, and Economist Marketing News and related it to the concepts in each chapter. We have also created assessments to provide assurances to both students and instructors that learning objectives are being met.

MindTap The seventh edition of Consumer Behavior offers two exciting Consumer Behavior offers two exciting Consumer Behavior alternative teaching formats. Instructors can choose between either a hybrid print and digital offering or a version that provides completely integrated online delivery through a platform called MindTap. MindTap is a fully online, highly personalized learning experience built upon authoritative content. By combining readings, multimedia, activities, and assessments into a singular Learning Path, MindTap guides students through their course with ease while promoting engagement. Instructors personalize the Learning Path by customizing Cengage Learning resources and adding their own content via apps that integrate into the MindTap frame- work seamlessly. Instructors are also able to incorporate the online component of Consumer Behavior into a traditional Consumer Behavior into a traditional Consumer Behavior Learning Management System (e.g., Blackboard, Canvas, D2L, etc.) providing a way to manage assignments, quizzes, and tests throughout the semester.

xviii

How to Access the Supplements Consumer Behavior 7e’s Instructor’s Manual, Test Bank, Consumer Behavior 7e’s Instructor’s Manual, Test Bank, Consumer Behavior and PowerPoint supplements, are available on the Instruc- tor’s Resource companion site.

Instructor’s Manual The Instructor’s Manual is updated to be synergistic with all other supplements. Each chapter includes a summary, learning objectives, chapter outline, review/discussion answers discussion questions, and experiential learning exercises to enhance student learning.

Test Bank A new test bank is available for CB 7e, also updated to be synergistic with the text and other supplements. Each test bank question has a new system of potential choices. There is one clearly defined correct choice. There are two or three other choices that are clearly incorrect for a precise rea- son (as indicated by the readings). Then, there is a choice that is not relevant at all. The number of “all of the above” and “none of the above” choices has been reduced. The new CB 7e test bank includes AACSB requirement tags (e.g., ethics).

Test Bank, Cognero Format The Cognero Testing system is a full-featured, online assessment system that allows you to manage content, cre- ate and assign tests, deliver tests through a secure online test center, and have complete reporting and data dissem- ination at your fingertips. The following are some of the features of the Cognero Testing System:

▪ Access from anywhere. Web-based software that runs in a Web browser. No installs are required to start using Cognero. Works in Windows, Mac, and Linux browsers.

▪ Desktop-like interface looks and feels like a desktop application. Uses the latest Web functionality to imi- tate desktop usability features like drag-and-drop and wizards.

▪ Full-featured test generator. Author and manage your assessment content as well as build tests using the only online test generator that supports all of the major functionality of its desktop competitors. Cognero is complete with a full-featured word processor, multil- anguage support, Math-ML compliant equation edi- tor, algorithmic content support, native support for 15 question types (true/false, modified true/false, yes/no, multiple choice, multiple response, numeric response, completion, matching, objective short answer, subjec- tive short answer, multi-mode, ordering, opinion scale/

Likert, essay, and custom), unlimited metadata, ability to print professional paper tests with multiple styles and versions, and more.

▪ Class Management and Assignments. Manage your students, classes, and assignments with the ease of simple drag-and-drop. You can build or import ros- ters, have students self-register for a class, and move students easily from class to class. Once your roster is set, simply drag a test to a class to schedule and put your students to work.

▪ Secure Online Testing. Cognero has an integrated secure online testing center for your students. Along with delivering traditional tests, your students can receive immediate feedback on each question and/or receive a detailed end-of-assignment report to help them know exactly how they are doing.

▪ Complete Reporting System. What is the use of assess- ment without being able to disseminate the data derived from it? Cognero allows you to analyze how your students are performing on a real-time basis and from multiple approaches to allow for immediate intervention. You can also quickly analyze your ques- tions and perform a gap analysis of student testing.

▪ Content Management System. Cognero has a unique set of tools to allow for the creation of products (groups of question sets and tests) for distribution to other users. This system includes workflow management for the shared authoring environment, the ability to authorize specific users to access your content, and the ability to edit content and push changes through to subscribers. There are also a number of design features to make high volume authoring within Cognero very efficient. All content created in this system has built-in digital rights management, meaning that your content is protected against unauthorized use.

PowerPoint Presentation Package A package of professionally developed PowerPoint slides is available for use by adopters of this textbook. These lec- ture PowerPoint slides outline the text content, including key figures and tables. CB 7e will have more user friendly, experiential presentations to enhance student learning and break up the monotony of text-based lectures.

Videos A video package has been provided to supplement and enliven class lectures and discussion. Videos contain real- world scenarios that illustrate certain concepts in a given chapter. The clips are intended to be interesting, to ground the concepts in real life for students, and to provide an impetus for stimulating student input and involvement.

PREFACE

Acknowledgments Special recognition is extended to Marian Wood, whose assistance was crucial to the completion of this project. Her tireless work on this project is greatly appreciated. We have also been extremely fortunate to work with a wonderful team of dedicated professionals from Cengage Learning. We are very grateful to Jason Fremder, Michael Roche, and Bethany Sexton whose enormous energy and enthusiasm spurred our progress on this seventh edition. We also appreciate the efforts of Angeline Close Schein- baum of the University of Texas at Austin for her work on the online content and Instructor’s Manual. The qual- ity of this book and its ancillary package has been helped immensely by the insightful and rich comments of a set of researchers and instructors who served as reviewers. Their thoughtful and helpful comments had real impact in shap- ing the final product. In particular, we wish to thank:

Larry Anderson Long Island University

Mike Ballif University of Utah

Sharon Beatty University of Alabama

Sandy Becker Rutgers Business School

Russell Belk University of Utah

Joseph Bonnice Manhattan College

Timothy Brotherton Ferris State University

Carol Bruneau University of Montana

Margaret L. Burk Muskingum College

Carol Calder Loyola Marymount University

Paul Chao University of Northern Iowa

Dennis Clayson University of Northern Iowa

Joel Cohen University of Florida

Sally Dibb University of Warwick

Richard W. Easley Baylor University

Richard Elliott Lancaster University

Abdi Eshghi Bentley College

Frank W. Fisher Stonehill College

Ronald Fullerton Providence College

Philip Garton Leicester Business School

Peter L. Gillett University of Central Florida

Debbora Heflin Cal Poly, Pomona

Elizabeth Hirschman Rutgers University

Raj G. Javalgi Cleveland State University

Harold Kassarjian UCLA

Patricia Kennedy University of Nebraska, Lincoln

Robert E. Kleine Arizona State University

Stephen K. Koernig DePaul University

Scott Koslow University of Waikato

Robert Lawson William Patterson University

Phillip Lewis Rowan College of New Jersey

Kenneth R. Lord SUNY, Buffalo

Peggy Sue Loroz Gonzaga University

Bart Macchiette Plymouth State College

Michael Mallin Kent State University

Lawrence Marks Kent State University

David Marshall University of Edinburgh

Ingrid M. Martin California State University, Long Beach

Anil Mathur Hofstra University

A. Peter McGraw University of Colorado, Boulder

Matt Meuter California State University, Chico

Martin Meyers University of Wisconsin, Stevens Point

Vince Mitchell UMIST

Lois Mohr Georgia State University

Risto Moisio California State University, Long Beach

Rebecca Walker Naylor University of South Carolina

James R. Ogden Kutztown University

Thomas O’Guinn University of Illinois

Marco Protano New York University

Judith Powell Virginia Union University

Michael Reilly Montana State University

Anja K. Reimer University of Miami

Gregory M. Rose The University of Mississippi

Mary Mercurio Scheip Eckerd College

Marilyn Scrizzi New Hampshire Technical College

John Shaw Providence College

C. David Shepherd University of Tennessee, Chattanooga

Robert E. Smith Indiana University

Eric Richard Spangenberg Washington State University

Bruce Stern Portland State University

Barbara Stewart University of Houston

Jane Boyd Thomas Winthrop University

Phil Titus Bowling Green State University

Carolyn Tripp Western Illinois University

Rajiv Vaidyanathan University of Minnesota, Duluth

Stuart Van Auken California State University, Chico

Kathleen D. Vohs University of Minnesota

Janet Wagner University of Maryland

John Weiss Colorado State University

Tommy E. Whittler University of Kentucky

Carolyn Yoon University of Michigan

PREFACE

222

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The Psychological Core

2 Motivation, Ability, and Opportunity 3 From Exposure to Comprehension 4 Memory and Knowledge 5-6 Attitudes Based on Effort Attitudes Based on Effort

An Introduction An Introduction to

Consumer Behavior Consumer Behavior 1 Understanding Consumer Understanding Consumer

BehaviorBehavior

The Process of The Process of Making DecisionsMaking Decisions

7 Problem Recognition and Problem Recognition and Information SearchInformation Search

8-9 Judgment and Decision-Judgment and Decision- Making Based on EffortMaking Based on Effort

10 Post-Decision Processes Post-Decision Processes

The Consumer’s Culture Consumer’s Culture Consumer’s Culture 11 Social Influences on

Consumer Behavior 12 Consumer Diversity 13 Household and Social Class

Influences 14 Psychographics: Values,

Personality, and Lifestyles

Consumer Behavior Consumer Behavior Outcomes and Issues 15 Innovations: Adoption,

Resistance, and Diffusion 16 Symbolic Consumer Behavior 17 Marketing, Ethics, and Social

Responsibility in Today’s Consumer Society

IN PART ONE, you will learn that consumer behavior involves much more than purchasing products. In addition, you will find out that marketers continuously study consumer behavior for clues to who buys, uses,

and disposes of what goods and services, as well as clues

to when, where, why, and how they make decisions.

Chapter 1 defines consumer behavior and examines

its importance to marketers, advocacy groups, public

policy makers, and consumers. The chapter also pres-

ents the overall model that guides the organization of

this book. As this model indicates, consumer behavior

covers four basic domains: (1) the psychological core,

(2) the process of making decisions, (3) the consum-

er’s culture, and (4) consumer behavior outcomes and

issues. In addition, you will read about the implica-

tions of consumer behavior for marketing activities.

The Appendix focuses on consumer behavior

research and its special implications for market-

ers. You will learn about various research methods,

types of data, and ethical issues related to consumer

research. With this background, you will be able to

understand how consumer research helps market-

ers develop more effective strategies and tactics for

reaching and satisfying customers.

Part 1

An Introduction to Consumer Behavior

1 Understanding Consumer Behavior 4

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Understanding Consumer Behavior LEARNING OBJECTIVESAfter studying this chapter, you will be able to:

▸ Define consumer behavior and explain the components that make up the definition.

▸ Identify the four domains of consumer behavior that affect acquisition, usage, and disposition decisions.

▸ Discuss the benefits of studying consumer behavior.

▸ Explain how companies apply consumer behavior concepts when making marketing decisions.

INTRODUCTION From Starbucks to Samsung and Apple to Amazon, all businesses know that their success depends on understanding consumer behav- ior and trends so they can create goods and services that consum- ers will want, like, use, and recommend to others. Charities, schools, government agencies, and other organizations are also interested in how consumers behave and how marketing can influence consum- ers’ thoughts, feelings, and actions.

This chapter provides an overview of (1) what consumer behav- ior is, (2) what factors affect it, (3) who benefits from studying it, and (4) how marketers apply consumer behavior concepts. Because you are a consumer, you probably have some thoughts about these issues. However, you may be surprised at how broad the domain of consumer behavior is, how many factors help explain it, and how important the field is to marketers, ethicists and consumer advo- cates, public policy makers and regulators, and consumers like yourself. You will also get a glimpse of the marketing implications of consumer behavior, previewing how we will connect consumer behavior concepts with practical applications throughout this book.

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 5

activities, experiences, and ideas such as going to the den- tist, attending a concert, taking a trip, and donating to UNICEF.2 In addition, consumers make decisions about people, such as voting for politicians, reading books by

certain authors, streaming movies or TV shows starring certain actors, and attending concerts featuring favorite bands.

Another example of consumer behavior involves choices about the consumption of time, a scarce resource. Will you check to see what’s hap- pening on Facebook, search for a YouTube video, watch a sports event live, or record a program and watch it later, for instance?3 How we use time reflects who we are, what our lifestyles are like, and how we are both the same as and different from others.4 Because consumer behavior includes the consumption of so many things, we use the simple term offering to encompass these entities.

1-1b CONSUMER BEHAVIOR INVOLVES MORE THAN BUYING

Marketers are intensely interested in consumer behavior related to using and disposing of a product, not just the way that consumers make acquisition decisions. They

1-1 Defining Consumer Behavior If you were asked to define consumer behavior, you might say it refers to the study of how a person buys products. However, consumer behavior really involves quite a bit more, as this more complete definition indicates:

Consumer behavior reflects the totality of con- sumers’ decisions with respect to the acquisi- tion, consumption, and disposition of goods, services, activities, experiences, people, and ideas by (human) decision-making units [over time].1

This definition has some very important ele- ments, summarized in Exhibit 1.1. The following sections present a closer look at each element.

1-1a CONSUMER BEHAVIOR INVOLVES GOODS, SERVICES, ACTIVITIES, EXPERIENCES, PEOPLE, AND IDEAS

Consumer behavior means more than just the way that a person buys tangible products such as bath soap and automobiles. It also includes consumers’ use of services,

Consumer behav- ior The totality of consumers’ decisions with respect to the acquisition, consump- tion, and disposition of goods, services, time, and ideas by human decision-making units (over time).

Offering A product, service, activity, experi- ence, or idea offered by a marketing organiza- tion to consumers.

Exhibit 1.1 ▸ What Is Consumer Behavior? Consumer behavior reflects more than the way that a product is acquired by a single person at any one point in time. Think of some marketing strategies and tactics that try to influence one or more of the dimensions of consumer behavior shown in this exhibit.

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PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR6

used packaging and recycled materials. In North and South America, Europe, and the Baltic, the company part- ners with firms such as PepsiCo to collect mountains of discarded packaging and turn them into usable products for sale.16

Managing Money and Making Financial Decisions How do consumers make financial decisions before, during, and after acquiring an offering? What are their attitudes toward money and prices? These topics are the focus of much study because consumers don’t always do a good job of managing money. For example, consumers generally know how to budget and plan for ordinary pur- chases, but they tend to underestimate spending on out- of-the-ordinary purchases and, in particular, spend more

than anticipated on individual purchases.17 On the other hand, consumers do adjust their bud- gets in some situations. For example, perhaps because the price of gas is very salient (with prices displayed on store signs and discussed in the news), when gas prices rise, consumers do tend to shop less frequently, switch to one-stop shopping at low-price retail establishments, and reduce overall spending to compensate.18

Consumer behavior also affects decisions about managing debt. For instance, consumers

also study how consumers make decisions about personal finances.

Acquiring an Offering Buying represents one type of acquisition behavior. As shown later in this chapter, acquisition includes other ways of obtaining goods and services, such as renting, leasing, trading, and sharing. It also involves decisions about time as well as money.5 Consumers sometimes find themselves interrupted during a consumption experience; studies show interruption actually makes a pleasant expe- rience seem more enjoyable when resumed.6 Deadlines can also affect acquisition behavior: Consumers tend to procrastinate in redeeming coupons and gift cards with far-future deadlines, but move more quickly when dead- lines are closer. Why? Because they do not want to regret having missed out and they expect to have more time to enjoy and indulge themselves with the acquisition in the future.7 Obviously, attitudes toward materialism, status, and self-concept play a role in acquisition behavior, as dis- cussed in later chapters.

Using an Offering After consumers acquire an offering, they use it, which is why usage is at the very core of consumer behavior.8 Whether and why we use certain products can symbolize something about who we are, what we value, and what we believe. The products we use on Thanksgiving (e.g., mak- ing desserts from scratch or buying them in a bakery) may symbolize the event’s significance and how we feel about our guests. The music we enjoy (Lady Gaga or Mark Ron- son) and the jewelry we wear (nose rings or engagement rings) can also symbolize who we are and how we feel. Moreover, marketers must be sensitive to when consum- ers are likely to use a product,9 whether they find it effec- tive,10 whether they control their consumption of it,11 and how they react after using it—do they spread positive or negative word-of-mouth reviews about a new movie, for instance?12

Disposing of an Offering Disposition, how consumers get rid of an offering they have previously acquired, can have important implica- tions for marketers.13 Consumers can give away their used possessions, sell them on eBay or on consignment to vin- tage stores, rent them via sharing websites, or lend them to others. As discussed in detail in Chapter 17, environmental concerns are growing among consumers and marketers. Eco-minded consum- ers often seek out biodegradable products made from recycled materials or choose goods that do not pollute when disposed of (see Exhibit 1.2).14 Municipalities are also interested in how to moti- vate earth-friendly disposition.15 Marketers see profit opportunities in addressing disposition concerns. TerraCycle, for example, markets tote bags, pencil cases, and other products made from

Acquisition The process by which a consumer comes to own an offering.

Usage The process by which a consumer uses an offering.

Disposition The process by which a consumer discards an offering.

Exhibit 1.2 xhibit 1.2 ▸ Disposition Consumers dispose of old products they acquired in a number of ways, oftentimes through recycling or vintage shops.

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 7

phone, via social media, or by e-mail or text message. Moreover, the individuals engaging in consumer behavior can take on one or more roles. In the case of a car pur- chase, for example, one or more family members might take on the role of information gatherer by researching different models. Others might assume the role of influ- encer and try to affect the outcome of a decision. One or more members may take on the role of purchaser by actually paying for the car, and some or all may be users. Finally, several family members may be involved in the disposal of the car.

1-1e CONSUMER BEHAVIOR INVOLVES MANY DECISIONS

Consumer behavior also involves understanding whether, why, when, where, how, how much, how often, and for how long consumers will buy, use, or dispose of an offer- ing (look back at Exhibit 1.1).

Whether to Acquire/Use/Dispose of an Offering Consumers must decide whether to acquire, use, or dis- pose of an offering. They may need to decide whether to spend or save their money when they earn extra cash. How much they decide to spend may be influenced by their perceptions of how much they recall spending in the past.24

They may need to decide whether to order a pizza, clean out a closet, or download a movie. Some consum- ers collect items, for example, a practice that has created a huge market for buying, selling, transporting, storing, and insuring collectible items.25 Decisions about whether to acquire, use, or dispose of an offering are often related to personal goals, safety concerns, or a desire to reduce economic, social, or psychological risk. However, such decisions can also be affected by subtle cues in our envi- ronment. Did you know that the mere act of hand washing can affect people’s decisions to relinquish their own pos- sessions?26 Also, simply entering a lottery can undermine someone’s self-control—making a person more likely, for example, to give in to indulgent purchases.27 Self-control is an important factor in many consumer behavior situa- tions, as you’ll see in later chapters.

What Offering to Acquire/Use/Dispose Of Consumers make decisions every day about what to buy; in fact, U.S. consumers spend an average of about $90 per day on goods and services in a typical month.28 In some cases, we make choices among product or service catego- ries such as buying food versus downloading new music. In other cases, we choose between brands such as whether to buy an Apple iPhone or a Samsung Galaxy phone. Our choices multiply daily as marketers introduce new prod- ucts, sizes, and packages. Exhibit 1.3 shows how much, on average, U.S. consumers spend for major categories of goods and services every year.

are likely to make higher repayments when credit card statements make no mention of a mandatory minimum monthly repayment.19 Another study found that con- sumers who close a credit account are more likely to be successful at eliminating their debt, because taking this step motivates them to persist in pursuit of their goal.20 When consumers feel powerful and in control of their resources, they will put more money in the bank in order to maintain that state of power.21

1-1c CONSUMER BEHAVIOR IS A DYNAMIC PROCESS

The sequence of acquisition, consumption, and disposi- tion can occur over time in a dynamic order—hours, days, weeks, months, or years, as shown in Exhibit 1.1. To illus- trate, assume that a family has acquired and is using a new car. Usage provides the family with information—whether the car drives well and is reliable—that affects when, whether, how, and why members will dispose of the car by selling, trading, or junking it. Because the family always needs transportation, disposition is likely to affect when, whether, how, and why its members acquire another car in the future.

Entire markets are designed around linking one con- sumer’s disposition decision to other consumers’ acqui- sition decisions. When consumers buy used cars, they are buying cars that others have disposed of. From eBay’s online auctions to Goodwill Industries’ secondhand clothing stores, from consignment shops to used books sold online, many businesses exist to link one consumer’s disposition behavior with another’s acquisition behavior. Environmental attitudes and actions are changing, which means marketers must take into account consumers’ goals and priorities, perceptions of brands, and internal pro- cesses when planning marketing efforts.

Broader changes in consumer behavior occur over time, as well. Fifty years ago, consumers had far fewer brand choices and were exposed to fewer marketing messages. In contrast, today’s consumers (particularly millennials) are more connected, easily able to research offerings online, access communications and promotions in multiple media, and check what others think of brands with a quick search or social media post. Later chapters examine these influences in more detail. Consumers can also work with marketers or with each other to collaboratively create new products.22 For example, thousands of consumers partic- ipate when Mountain Dew uses crowdsourcing to request crowdsourcing to request crowdsourcing ideas for new soft-drink flavors, product logos, and ads.23

1-1d CONSUMER BEHAVIOR CAN INVOLVE MANY PEOPLE

Consumer behavior does not necessarily reflect the action of a single individual. A group of friends, a few coworkers, or an entire family may plan a birthday party or decide where to have lunch, exchanging ideas in person, on the

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR8

electronics product because they believe that the prod- uct will soon be outdated or that some firms will leave this market, leaving them without after-sale support or service. At times, consumers who want to acquire or con- sume an offering are unable to do so because what they want is unavailable. Ethics and social responsibility can also play a role. Some consumers may want to avoid prod- ucts made in factories with questionable labor practices or avoid movies downloaded, copied, and shared without permission.30 This is why transparency is increasingly of concern when consumers want to know what a brand or company stands for.

How to Acquire/Use/Dispose of an Offering Marketers gain a lot of insight by understanding how con- sumers acquire, consume, and dispose of an offering.

Ways of Acquiring an Offering How do consumers decide whether to acquire an offer- ing in a store or mall, online, or at an auction?31 How do they decide whether to pay with cash, a check, a debit card, a credit card, an electronic system such as PayPal, or a “mobile wallet” smartphone payment app such as

Why Acquire/Use/Dispose of an Offering Consumption can occur for a number of reasons. Among the most important reasons, as you will see later, are the ways in which an offering meets someone’s needs, val- ues, or goals. Some consumers acquire tattoos as a form of self-expression, to fit into a group, or to express their feelings about someone or something. Taking the self- expression of tattoos into the automotive arena, 3M makes a series of vinyl wrap “tattoos” for car owners to use in personalizing the look of their vehicles.29 Acquisition may be related to a consumer’s attitudes toward money, mate- rialism, status, emotions, and self-control, as discussed in other chapters.

Sometimes our reasons for using an offering are filled with conflict, which leads to some difficult consumption decisions. Teenagers may smoke cigarettes or e-cigarettes, even though they know it is harmful, because they think smoking will help them gain acceptance. Some consum- ers may be unable to stop acquiring, using, or disposing of products. They may be physically addicted to products such as cigarettes, or they may have a compulsion to eat, gamble, or buy.

Why an Offering Is Not Acquired/Used/ Disposed Of Marketers also try to understand why consumers do not acquire, use, or dispose of an offering. For exam- ple, consumers may delay buying a particular consumer

Exhibit 1.3 xhibit 1.3 ▸ Average Annual U.S. Consumer SSSpending, By Categorypending, By Categorypending, By Category On average, U.S. consumers spend more for basics like housing, transportation, and food than for other categories of expenditures.

Item Average annual

expenditure by consumers

Housing $17,148

Transportation 9,004

Food 6,602

Personal insurance, pensions 5,528

Health care 3,631

Entertainment 2,482

Cash contributions 1,834

Clothing and services 1,604

All other expenditures 3,267

TOTAL $51,100

Source: Adapted from “Consumer Expenditures—2013,” Economic News Release, September 9, 2014, U.S. Department of Labor, U.S. Bureau of Labor Statistics, Table A, www.bls.gov.

Exhibit 1.4 xhibit 1.4 ▸ Eight Ways to Acquire an OOfferingffering

There are many ways that consumers can acquire an offering.

Acquisition Method Description

Buying Buying is a common acquisition method used for many offerings.

Trading Consumers might receive a good or service as part of a trade.

Renting or leasing

Instead of buying, consumers rent or lease cars, furniture, vacation homes, and more.

Bartering Consumers (and businesses) can exchange goods or services without having money change hands.

Gifting Each society has many gift-giving occasions as well as informal or formal rules dictating how gifts are to be given, what is an appropriate gift, and how to respond to a gift.

Finding Consumers sometimes find goods that others have lost (hats left on a bus) or thrown away.

Stealing Because various offerings can be acquired through theft, marketers have developed products to deter this acquisition method, such as alarms to deter car theft.

Stealing Another method of acquisition is by sharing or borrowing. Some types of “sharing” are illegal and border on theft, as when consumers copy and share movies.

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 9

“time for me” or “time for others” and whether acquiring or using an offering is planned or spontaneous.38 In cold weather, our tendency to rent movies, call for a tow truck, or shop for clothes is greatly enhanced. At the same time, we are less likely to eat ice cream, shop for a car, or look for a new home during cold weather. Time of day influ- ences many consumption decisions, which is why Panera Bread is adding drive-throughs to accommodate breakfast customers in a hurry and McDonald’s now serves break- fast all day, every day.39

Our need for variety can affect when we acquire, use, or dispose of an offering. We may decide not to eat a sandwich for lunch today if we have already had it every other day this week. Transitions such as graduation, birth, retirement, and death also affect when we acquire, use, and dispose of offerings. For instance, we buy wedding rings when we get married. When we consume can be affected by traditions influenced by our families, our cul- ture, and the area in which we live.

Decisions about when to acquire or use an offering are also affected by knowing when others might or might not be buying or using it. Thus, we might choose to go to the gym when we know that others will not be doing so. In addition, we may wait to buy until we know something will be on sale; even if we have to line up to buy something popular, we are likely to continue waiting if we see many people joining the line behind us.40 Also, waiting to con- sume a pleasurable product such as candy increases our enjoyment of its consumption, even though we may be frustrated by having to wait.41

Another decision is when to acquire a new, improved version of a product we already own. This can be a diffi- cult decision when the current model still works well or has sentimental value. However, marketers may be able to affect whether and when consumers buy upgrades by pro- viding economic incentives for replacing older products.42

Even the first letter of our last name can impact when we acquire products. If your last name begins with a let- ter that’s later in the alphabet (i.e., W, X, Y, or Z) you may be faster in buying the product than consumers whose last name begins with a letter that’s in the beginning of the alphabet. Why? One reason is that as a kid you were always last when lines or roll calls were alphabetical. If you’ve learned to wait, you may develop a desire not to wait, which leads to buying more quickly.43

Where to Acquire/Use/Dispose of an Offering In addition to acquisition decisions, consumers also make decisions about where to consume various products. For example, the need for privacy motivates consumers to stay home when using products that determine whether they are ovulating or pregnant. On the other hand, wire- less connections allow consumers in public places to make phone calls, post messages and photos to social media sites, play computer games, and download photos or music from anywhere in the world.

Apple Pay?32 These examples relate to consumers’ buy- ing decisions, but Exhibit 1.4 shows that consumers can acquire an offering in other ways. As the cost of cars and car insurance rises, some consumers are choosing not to buy cars, but to instead use services like Zipcar or Uber.33

Ways of Using an Offering In addition to understanding how consumers acquire an offering, marketers want to know how consumers use an offering. For obvious reasons, marketers want to ensure that their offering is used correctly. Improper usage of offerings like cough medicine or alcohol can create health and safety problems.34 Because consumers may ignore label warnings and directions on potentially dangerous products, marketers who want to make warnings more effective have to understand how consumers process label information.

Using an offering can include what we use with the offering (e.g., chips with salsa) as well as how we store and organize the items in our homes. Some interesting research suggests that we like to have things organized in our homes because we feel less anxiety and a greater sense of control over our lives when things are structured.35 Notably though what seems organized to one person may seem messy to another. Whereas you might think about the items in your room in finely grained categories (e.g., black shirts are different from white shirts, and pants, shoes, and belts are in a different categories altogether), your roommate might have broader categories for think- ing of items in their closet (they’re all just “my clothes”). You may think her closet is messy; your roommate may think the organization of her closet is perfectly fine.36

Ways of Disposing of an Offering Sometimes nothing but the packaging remains of an offer- ing (such as food) after it has been consumed. This leaves only a decision about whether to recycle or not, and how. Consumers who want to dispose of a tangible product have several options:37

▪ Find a new use for it. Using an old toothbrush to clean rust from tools or making shorts out of an old pair of jeans shows how consumers can continue using an item instead of disposing of it.

▪ Get rid of it temporarily. Renting or lending an item is one way of getting rid of it temporarily.

▪ Get rid of it permanently. Throwing away an item, sending it to a recycling center, trading it, giving it away, or selling it are all ways to get rid of it perma- nently. However, some consumers refuse to throw away things that they regard as special, even if the items no longer serve a functional purpose.

When to Acquire/Use/Dispose of an Offering The timing of consumer behavior can depend on many factors, including our perceptions of and attitudes toward time itself. Consumers may think in terms of whether it is

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR10

Russian consumers eat 10 times as much chocolate as con- sumers in Mexico.48 The amount we are willing to spend on items certainly depends on the state of our economy and whether or not we are in a recession.49 But even if we try to be careful spenders, on the whole we tend to under- estimate our spending. And we often don’t budget for exceptional purchases.50

Sales of a product can be increased when the consumer (1) uses larger amounts of the product, (2) uses the prod- uct more frequently, or (3) uses it for longer periods of time. Bonus packages may motivate consumers to buy more of a product, but does this stockpiling lead to higher consumption? In the case of food products, consumers are more likely to increase consumption when the stockpiled item requires no preparation.51 Usage may also increase when consumers sign up for flat-fee pricing covering unlimited consumption of telephone services or other offerings. However, because many consumers who choose flat-fee programs overestimate their likely consumption, they often pay more than if they had chosen per-usage pricing.52

Some consumers experience problems because they engage in more acquisition, usage, or disposition than they should. For example, they may have a compulsion to overbuy, overeat, smoke, or gamble too much. Research- ers are also investigating what affects consumers’ abilities to control consumption temptations and what happens when self-control falters, an issue for anybody who has tried to diet or make other changes to consumption habits.53

Finally, consumers make decisions regarding where to dispose of goods. Should they toss an old magazine in the trash or the recycling bin? Should they store an old photo album in the attic or give it to a relative? Older consum- ers, in particular, may worry about what will happen to their special possessions after their death and about how to divide heirlooms without creating family conflict.44 A growing number of consumers are recycling unwanted goods through recycling agencies or nonprofit groups or giving them directly to other consumers through web- sites like The Freecycle Network (www.freecycle.org) (see Exhibit 1.5).

How Much, How Often, and How Long to Acquire/Use/Dispose of an Offering Consumers must make decisions about how much of a good or service they need; how often they need it; and how much time they will spend in acquisition, usage, and disposition.45 In general, consumers don’t like to waste things, and therefore will consider whether they are buy- ing more of a product than what they will use.46 Interest- ingly though, we can sometimes mispredict how happy we will be from usage. Although we might want to binge- watch eight episodes of a favorite TV show we’ve down- loaded or streamed, research shows that longer breaks between episodes (e.g., watching one episode a night) will actually make us enjoy the series more.47 Usage decisions can vary widely from person to person and from culture to culture. For example, consumers in Switzerland eat twice as much chocolate as consumers in Russia—and

Exhibit 1.5 xhibit 1.5 ▸ Where to Dispose Consumers have a number of options of places to dispose of goods, such as this recycling website.

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 11

In the following overview, we illustrate the interrelation- ships among the domains with an example of a vacation decision.

1-2a THE PSYCHOLOGICAL CORE: INTERNAL CONSUMER PROCESSES

Before consumers can make decisions, they must have some source of knowledge or information upon which to base their decisions. This source—the psychological core—covers motivation, ability, and opportunity; expo- sure, attention, perception, and comprehension; memory and knowledge; and attitudes about an offering.

Motivation, Ability, and Opportunity Consider the case of a consumer named Jason who is deciding on a ski vacation. In Jason’s mind, the vacation decision is risky because it will consume a lot of money and time, and he does not want to make a bad choice. Therefore, Jason is motivated to learn as much as he can about various vacation options, think about them, and imagine what they will be like. He has put other activities aside to give himself the opportunity to learn and think about this vacation. Because Jason already knows how to ski, he has the ability to determine what types of ski vaca- tions he would find enjoyable. Whether he focuses on concrete things (how much the trip will cost) or abstract things (how much fun he will have) depends on how soon he plans to travel and how well the place he plans to visit fits with his self-concept.69

Exposure, Attention, Perception, and Comprehension Because Jason is motivated to decide where to go on vaca- tion and has both the ability and opportunity to do so, he will make sure he is exposed to and attends to any infor- mation relevant to his decision. He might look at travel ads and websites, read travel-related articles, check Twit- ter for special deals, browse photos on Pinterest, and talk with friends and travel agents. Jason will probably not attend to all vacation information; in fact, he is likely to be exposed to information he will never consciously perceive or pay attention to. He must identify what he has per- ceived—is it an ad or something else?—and then deter- mine what country or mountain resort is involved, all as part of the comprehension process. He might infer that Kitzbühel, Austria, is a reasonably priced vacation des- tination because a website shows information consistent with this interpretation, for example.

Memory and Knowledge Whether Jason can store what he learns about ski resorts in his memory—and whether he can recall that infor- mation later—depends, in part, on his motivation, abil- ity, and opportunity. As he learns something new about ski resorts, he will organize that knowledge according to

1-1f CONSUMER BEHAVIOR INVOLVES EMOTIONS AND COPING

Consumer researchers have studied the powerful role that emotions play in consumer behavior.54 Positive and nega- tive emotions as well as specific emotions like loneliness,55 hope,56 fear,57 regret,58 guilt,59 embarrassment,60 and gen- eral moods61 can affect how consumers think, the choices they make, how they feel after making a decision, what they remember, and how much they enjoy an experience. Emotions like love sometimes describe how we feel about certain brands, possessions, and experiences.62 Consum- ers often use products to regulate their feelings—as when a scoop of ice cream seems like a good antidote to a bad quiz score.63

Because issues related to consumer behavior can involve stress, consumers often need to cope in some way.64 Researchers have studied how consumers cope with difficult choices and an overwhelming array of goods from which to choose;65 how consumers use goods and services to cope with stressful events66 like having cancer; and how they cope with losing possessions due to divorce, natural disasters, moving to a residential-care facility, and other significant events.67 They have even studied the coping behavior of certain market segments, such as low-literacy consumers, who often find it challenging to understand the marketplace without being able to read.68 In later chapters, you’ll learn more about how emotions affect goal pursuit, reactions to marketing stimuli, and other aspects of consumer behavior.

1-2 What Affects Consumer Behavior?

The many factors that affect acquisition, usage, and dispo- sition decisions can be classified into four broad domains, as shown in the model in Exhibit 1.6: (1) The psycho- logical core, (2) the process of making decisions, (3) the consumer’s culture, and (4) consumer behavior outcomes. Although the four domains are presented in separate sec- tions of this book, each domain is related to all the oth- ers. For example, to make decisions that affect outcomes like buying new products, consumers must first engage in processes described in the psychological core. They need to be motivated, able, and have the opportunity to be exposed to, perceive, and attend to information. They need to think about and comprehend this information, develop attitudes about it, and form memories they can retrieve during the decision process.

The cultural environment also affects what motivates consumers, how they process information, and the kinds of decisions they make. Age, gender, social class, ethnic- ity, families, friends, and other factors affect consumer values and lifestyles and, in turn, influence the decisions that consumers make and how and why they make them.

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR12

information. Attitudes do not always predict behavior. For example, although many of us have a positive attitude toward working out, our attitude and our good intentions do not always culminate in a trip to the gym. For this reason, attitudes and choices are considered as separate topics.

1-2b THE PROCESS OF MAKING DECISIONS

As shown in Exhibit 1.6, the processes that are part of the psychological core are intimately tied to the process of making decisions. This domain involves four stages: Prob- lem recognition, information search, decision-making, and postpurchase evaluation.

categories such as “places to stay on a ski vacation.” Jason will also associate each new piece of information with other concepts he knows, such as “expensive” or “eco- friendly.” Note that Jason may store information in mem- ory, but his choices will be based only on the information that can be retrieved from memory—a key point for mar- keters seeking to create strong brand images and develop memorable communications (see Exhibit 1.7).

Forming and Changing Attitudes Jason is likely to form attitudes toward the vacations he has categorized and comprehended. He may have a favorable attitude toward Kitzbühel because a website describes it as affordable, educational, and fun. How- ever, his attitudes might change as he encounters new

Exhibit 1.6 ▸ A Model of Consumer Behavior Consumer behavior encompasses four domains: (1) The consumer’s culture, (2) the psychological core, (3) the process of making decisions, and (4) consumer behavior outcomes and issues. As the exhibit shows, Chapters 2–17 of this book relate to the four parts of this overall model.

P Psychological Core �e

2 Motivation, Ability, Ability, Ability and Opportunity 3 From Exposure to Comprehension 4 Memory and Knowledge

5-6 Attitude Formation and Change

Consumer’s Cs Cmer’s Cmer’ ulture 11 Social Influences Social Influences Social Influences

on Consumer Behavioron Consumer Behavior 12 Consumer Diversity Consumer Diversity 13 Household and Social Household and Social Household and Social

Class Influences Class Influences 14 Psychographics: Values,

PersonalityPersonality, Personality, Personality and Lifestylesand Lifestylesand Lifestyles

�e

Consumer Behaviornsumer Behavior Outcomes and Itcomes and Issues

Innovations:ations: Adoption, ResistanceResistance, and Diffusion Symbolic Consumer BehaviorSymbolic Consumer Behavior MarketingMarketing, Ethics, and Social Responsibility in Responsibility in Today’Today’T s Consumer SocietyConsumer Society

16 17

Makinaking Decisions �e Process of�e Process of

7 Problem Recognition and Information Search

8-9 Judgment and Decision-Making

10 Post-Decision Processes

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 13

educational, and affordable. Not all decisions involve a lot of effort. Jason also faces low-effort decisions such as what brand of toothpaste to take on the trip.

Again, the psychological core is invoked in making decisions. With a high-effort decision, Jason will be motivated to be exposed to lots of information, think about it deeply, analyze it critically, and form attitudes about it. He may have lasting memories about this infor- mation because he has thought about it so much. Con- sumers are not always aware of what they are thinking and how they are making their choices, so Jason might not be able to explain what affected his choices (back- ground music in a travel agency might even be an influ- ence).70 Yet the emotions he thinks he will experience from different options (excitement, relaxation) may well influence his ultimate choice.71 With a low-effort deci- sion, such as what brand of toothpaste to buy, he would probably engage in less information search and process information less deeply, resulting in less enduring atti- tudes and memories.

Making Postdecision Evaluations This step allows the consumer to judge, after the fact, whether the decision made was the correct one and whether to purchase that offering again. When he returns from his vacation, Jason will probably evaluate the outcome of his decisions. If his expectations were met and if the vacation was everything he thought it would be, he will feel satisfied. If the vacation exceeded his expectations, he will be delighted. If it fell short of them, he will be dissatisfied. Once again, aspects of the psychological core are invoked in making postdecision evaluations. Jason may seek out information that vali-

dates his experiences, he may update his attitudes, and he may selectively remember aspects of his trip that were extremely positive or negative.

1-2c THE CONSUMER’S CULTURE: EXTERNAL PROCESSES Why did Jason decide to go on a skiing trip in the first place? In large part, our consumption decisions and how we process information are affected by our culture.72 Culture refers to the typ- ical or expected behaviors, norms, and ideas that characterize a group of people. It can be a pow- erful influence on all aspects of human behav- ior. Jason had certain feelings, perceptions, and attitudes because of the unique combination of groups to which he belongs and the influence they have on his values, personality, and lifestyle.

Reference Groups and Other Social Influences When Jason sees groups of others he perceives as similar to himself, he regards them as reference groups, people whose values he shares and whose opinions he respects. He might also want to emulate the behavior of people

Problem Recognition and the Search for Information Problem recognition occurs when we realize that we have an unfulfilled need. Jason realized that he needed a vaca- tion, for example. His subsequent search for information gave him insight into where he might go, how much the vacation might cost, and when he might travel. He also examined his financial situation. Elements of the psychological core are invoked in problem recognition and search because once Jason realizes that he needs a vacation and begins his information search, he is exposed to information, attends to and per- ceives it, categorizes and comprehends it, and forms attitudes and memories.

Making Judgments and Decisions Jason’s decision is characterized as a high-effort decision, meaning that he is willing to invest a lot of time and to exert mental and emotional energy in making it. He identifies several criteria that will be important in mak- ing his choices: The trip should be fun and exciting, safe,

Exhibit 1.7 xhibit 1.7 ▸ Forming and Retrieving Memories Ads that make consumers form and retrieve memories can be effective if the memories are of a positive experience.

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Culture The typical or expected behaviors, norms, and ideas that characterize a group of people.

Reference group A group of people consumers compare themselves with for information regarding behavior, attitudes, or values.

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR14

shown in Exhibit 1.9, and try to imagine the background factors that predispose consumers to choose these as vaca- tion options.

Household and Social Class Influences Because Jason is a member of the upper middle class and lives with his parents, these household and social class influences may affect his decision to go to a luxurious European ski resort with friends rather than join his fam- ily at a rustic ski area near home.

Values, Personality, and Lifestyle The choices Jason makes are based, in part, on his beliefs, his personality, and his activities, interests, and opinions. Thus, he may be attracted to a European ski trip because he wants a vacation that he thinks will be exciting and out of the ordinary. He also anticipates that this vacation will test his ability to manage on his own and give himself a

sense of accomplishment.

1-2d CONSUMER BEHAVIOR OUTCOMES AND ISSUES

As Exhibit 1.6 shows, the psychological core, deci- sion-making processes, and the consumer’s culture affect consumer behavior outcomes through the symbolic use of products and the diffusion of ideas, products, or services through a market. They also influence and are influenced by issues of ethics and social responsibility.

Consumer Behaviors Can Symbolize Who We Are The groups we belong to and our sense of self can affect the symbols or external signs we use, consciously or unconsciously, to express our actual or desired identity. For example, while skiing, Jason may wear a North Face parka and Bollé goggles to communicate his status as an experienced skier. He might use his phone to snap a selfie and take home souvenirs, such as postcards and T-shirts, which symbolize his vacation.

Consumer Behaviors Can Diffuse Through a Market After Jason makes his vacation decision, he may tell others about his prospective trip, which, in turn, could influence their vacation decisions. In this way, the idea of going to Kitzbühel on vacation may diffuse, or spread, to others. Had Jason resisted going to Kitzbühel (perhaps because he thought it was too expensive or too far away), he might have communicated information that would make others less likely to vacation there. Thus, the diffusion of infor- mation can have both negative and positive effects for marketers.

Consumer Behavior, Ethics, and Social Responsibility Sometimes consumers face potentially conflicting priori- ties: They try to balance an immediate outcome against a

whom he admires and to listen to the advice they offer through word of mouth (in person, on Facebook, on Twit- ter, etc.). Athletes, musicians, or movie stars sometimes serve as reference groups, influencing how we evaluate information and the choices we make (see Exhibit 1.8). Reference groups can also make us feel as if we should behave in a certain way. Jason may feel some pressure to go to Kitzbühel because his friends think that doing so is cool.

Diversity Influences Jason is a member of many regional, ethnic, and religious groups that directly or indirectly affect the decisions he makes. For example, although his decision to ski at a place far from home is fairly typical for a North American man launched on his career, a consumer from a developing nation or a single woman from a different culture may not have made the same choice. Also, his age, gen- der, and educational background may all affect his impressions of what constitutes a good vacation, accounting for his interest in a Euro- pean ski trip. Consider the vacation choices

Symbols External signs that consumers use to express their identity.

Exhibit 1.8 xhibit 1.8 ▸ Influence of Reference Groups Reference groups are people whose values we share and whose opinions we value, as evidenced in the Got Milk? campaigns.

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CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 15

research: Marketing managers, ethicists and advocates, public policy makers and regulators, and consumers.

1-3a MARKETING MANAGERS The study of consumer behavior provides critical infor- mation to marketing managers for developing marketing

strategies and tactics. The American Marketing Association’s definition of marketing shows why marketing managers need to learn about con- sumer behavior:

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for cus- tomers, clients, partners, and society at large.

As this definition makes clear, marketers need con- sumer behavior insights to understand what consumers and clients value; only then can they develop, communi- cate, and deliver appropriate goods and services. See the Appendix for more about marketing research.

1-3b ETHICISTS AND ADVOCACY GROUPS

Marketers’ actions sometimes raise important ethical questions. Concerned consumers sometimes form advo- cacy groups to create public awareness of inappropriate practices. They also influence other consumers as well as the targeted companies through strategies such as media statements and boycotts. For example, U.S. advocacy groups such as Consumer Watchdog worry about compa- nies tracking what consumers do online. They and other

long-term outcome, or try to balance their own interests against the interests of others. For instance, a consumer who steals may acquire something right away, but the long-term outcome is personally risky and also problem- atic to society. Many consumers are interested in whether products have been produced in an ethical manner, with ethically sourced inputs, as discussed in later chapters. Similarly, marketing decisions may involve con- flicting priorities and sometimes lead to ethical questions, such as whether marketing efforts promote obesity, whether advertising affects self-image, and whether marketing invades con- sumers’ privacy.

On the other hand, both consumers and mar- keters can and do use marketing for constructive purposes, balancing short and long-term horizons plus the interests of themselves and others. These efforts by marketers and consumers may be relatively narrow— focusing on satisfying the needs of a particular consumer segment—or much broader, such as protecting the environ- ment or improving the community. In the example of Jason choosing a ski vacation, he might decide to stay at an ecof-choosing a ski vacation, he might decide to stay at an ecof-choosing a ski vacation, he might decide to stay at an ecof riendly resort that conserves water and uses energy from clean sources. Or he may decide to buy his gear second- hand on eBay or from a retailer that is transparent about its environmental impact.73

1-3 Who Benefits from the Study of Consumer Behavior?

Why do people study consumer behavior? The reasons are as varied as the four different groups who use consumer

Marketing The activ- ity, set of institutions, and processes for creating, communi- cating, delivering, and exchanging offerings with value for indi- viduals, groups, and society.

Exhibit 1.9 ▸ Vacation Choices The word “vacation” means different things to different people. Can you see how factors like social class, ethnic status, lifestyle, economic conditions, group affiliations, and gender affect the kinds of vacations that appeal to us? These examples show that some marketers are successful because they understand what their customers value.

On vacation, would you like to . . .

Learn how to walk on the moon? Space Camp is the place for you! You’ll experience the weightlessness of space flight, launch a rocket, and take a simulated trip to Mars or the Moon. The price for would-be astronauts starts at $499 for a three-day camp experience.

Volunteer to restore parklands? Through the Sierra Club, you can travel to wildlife refuges and parks around the United States when you help preserve wilderness areas and keep up hiking trails. Along with a reasonable price tag—a seven-day stay in the Yosemite Valley to fix hiking trails costs $445, not including transportation—you’ll get an insider’s view of the local area plus the satisfaction of helping the planet.

See where penguins play? On a National Geographic cruise, you’ll start from the tip of South America and sail through Drake Passage. Then you’ll travel by kayak along Antarctica’s edge, home to penguins, whales, and other marine life. If your itinerary includes the Falkland Islands and South Georgia, you’ll pay up to $44,550 (airfare is extra).

Sources: Based on information on www.spacecamp.com; www.sierraclub.org; and www.expeditions.com.

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR16

1-3e CONSUMERS AND SOCIETY Understanding consumer behavior enables marketers and other organizations to provide tools for more informed decision-making. For example, research indicates that we better understand the differences among brands when we can view a chart, matrix, or grid comparing brands and their attributes.81 Thus, matrices such as those presented in the Consumer Reports magazine or on its website are likely to help many consumers make better decisions.

Product, service, and communications developments to protect certain consumer segments have also grown out of understanding how consumers behave. Many people want to protect children against inappropriate advertising or guard themselves against invasion of privacy. Some companies have changed their marketing voluntarily, whereas others have waited until legislators, regulators, or advocacy groups forced them to make changes. Finally, a better understand- ing of consumer behavior can pave the way for programs that benefit society. As discussed in Chapter 17, research on disposition behavior has the potential to aid recycling pro- grams and other environmental activities, just as research on charitable donations can help nonprofit groups design com- munications to attract and inform contributors.

1-4 Making Business Decisions Based on the Marketing Implications of Consumer Behavior

As you learn about consumer behavior, you may wonder how businesses use different consumer behavior insights. Starting with Chapter 2, you will find numerous sections titled Marketing Implications that illustrate how marketers apply consumer behavior concepts in the real world. In gen- eral, consumer research helps marketers to develop prod- uct-specific plans, as well as broader strategies for market segmentation, targeting, and positioning, and to make deci- sions about the components of the marketing mix.

1-4a DEVELOPING AND IMPLEMENTING CUSTOMER-ORIENTED STRATEGY

Marketing is designed to provide value to customers. Thus, marketers must conduct research to understand the various groups of consumers within the marketplace so that they can develop a strategy and specific offerings that will pro- vide such value. Once they develop and implement a suit- able strategy, marketers need research to determine how well it is working and whether it is delivering the expected results (such as increasing market share or improving profits).

How Is the Market Segmented? What one consumer values in a product may not be the same as what another consumer values. Consider the market for orange juice, which can be offered from

groups support an enforceable “do not track” mechanism that would allow consumers to opt out of online track- ing systems. The Federal Trade Commission and Fed- eral Communications Commission are weighing input from advertisers and consumers about the privacy issues involved and possible regulatory action.74 We explore var- ious ethical issues throughout this book and go into more detail in Chapter 17.

1-3c PUBLIC POLICY MAKERS AND REGULATORS

Understanding consumer behavior is crucial for legislators, regulators, and government agencies in developing pol- icies and rules to protect consumers from unfair, unsafe, or inappropriate marketing practices. In turn, marketers’ decisions are affected by these public policy actions. Con- sider the regulatory limits on tobacco marketing that are designed to discourage underage consumers from smoking and to inform consumers of smoking’s health hazards. The United States, Canada, and many other nations already ban cigarette advertising on television and radio. Canada also requires large graphic warning labels on each pack.75 However, electronic cigarettes and vaping are not yet reg- ulated as heavily as traditional tobacco products, despite a steady increase in consumer usage and health concerns about liquid nicotine poisoning.76

Understanding how consumers comprehend and cat- egorize information is important for recognizing and guarding against misleading advertising. For instance, researchers want to know what impressions an ad creates and whether these impressions are true. They also want to know how marketing influences consumers’ decisions to comply with product usage instructions, such as using medical treatments as prescribed.77 Consumer behav- ior research helps government officials understand and try to improve consumer welfare.78 One example is the increase in childhood obesity over the past few decades, which government officials and regulators are working to address through proposals and actions to shape consumer behavior and influence marketing activities.79 Even in developing nations where hunger is an ongoing issue, too many children are overweight, a cause for concern around the world.80 See Chapter 17 for more about this issue.

1-3d ACADEMICS Understanding consumer behavior is important in the academic world for two reasons. First, academics dis- seminate knowledge about consumer behavior when they teach courses on the subject. Second, academics generate knowledge about consumer behavior when they conduct research focusing on how consumers act, think, and feel when acquiring, using, and disposing of offerings. In turn, such academic research is useful to marketing managers, advocacy groups, policy makers, regulators, and others who need to understand consumer behavior.

CHAPTER 1 | UNDERSTANDING CONSUMER BEHAVIOR 17

decisions. U.S. home builders like Toll Brothers, for exam- ple, are interested in the trend of multigenerational fam- ilies living in one home. They know that some, if not all, of the family members will want a say in the home pur- chase, and therefore the homes must have features that will appeal to all the relatives involved in the decision.87

1-4c DEVELOPING PRODUCTS Developing goods and services that satisfy consumers’ wants and needs is a critical marketing activity. Marketers apply consumer research when making a number of deci- sions about products and branding.

What Ideas Do Consumers Have for New Products? First, marketers need to design an offering that matches what consumers in the target market want. As noted ear- lier, sometimes customers collaborate with marketers or with each other on the development of innovative new offerings. The jewelry firm Swarovski is one of many companies that have used online competitions to tap the creativity of their customers in designing new products.88 The entire inventory of Chicago-based online T-shirt company Threadless comes from designs submitted by consumers. After consumers vote (online or via social media), Threadless puts the highest-scoring items into production—with a ready segment of buyers who have a taste for such individualistic designs.89

What Attributes Can Be Added to or Changed in an Existing Offering? Marketers often use research to determine when and how to modify or tailor a product to meet the needs of new or existing groups of consumers. For example, the U.S. Postal Service (USPS) knows that many engaged couples still send printed wedding invitations through the mail instead of communicating electronically. To supplement its regularly updated series of stamps, the USPS designed a stamp specifically for wedding invitations—which gen- erated $375 million in sales within a few years. Now the USPS offers a range of wedding-stamp designs and invites consumers to personalize their own wedding stamps.90

How Should the Offering Be Branded? Consumer research plays a vital role in decisions about choosing a brand and differentiating it from competing brands and from other brands in the company’s product portfolio.91 For example, the Japanese automaker Nissan once marketed cars under the Datsun brand, but elimi- nated that brand in favor of its corporate name, Nissan, in 1981. Later, the company introduced the Infiniti brand to distinguish its luxury autos from its other cars. Now Nissan is bringing back the Datsun brand for small, low- priced cars to be sold in emerging markets such as Russia, India, and Indonesia. This strategy allows Nissan to main- tain a separate brand image and positioning for each of these product lines.92

concentrate, fresh squeezed, with other juices, and in other combinations. For example, Minute Maid, owned by Coca-Cola, has increased sales by adding “Pure Squeezed” orange juices to its product line. A Minute Maid executive explains that “there’s a segment of consumers who have an affinity for the not-from concentrate [juice].”82 Clearly, research helps marketers understand the different groups that make up a market and whether they can make an offering to appeal to one or more of these groups.

How Profitable Is Each Segment? Consumer research can help marketers identify consum- ers who have needs that are not being met and can reveal the size and profitability of each segment. For example, Daimler has identified a potentially profitable segment of affluent auto buyers interested in upscale compact vehi- cles. It is introducing a series of Mercedes-Benz compact cars and SUVs specifically for this segment, fully equipped with accessories for consumers’ digital devices, all part of its effort to regain the lead in the premium auto market by 2020.83

What Are the Characteristics of Consumers in Each Segment? After determining how the market is segmented and whether it is potentially profitable, marketers need to learn about the characteristics of consumers in each seg- ment, such as their age, education, and lifestyle. This information helps marketers project whether the segment is likely to grow or to shrink over time, a factor that affects future marketing decisions. For example, sales of fitness goods and services—as well as fitness tracking devices— are increasing as baby boomers, Millennials, and Genera- tion X consumers strive to get and stay in shape.84

Are Customers Satisfied with Existing Offerings? Marketers often do considerable research to learn whether consumers are currently satisfied with the company’s offerings and marketing. For example, Harley-Davidson executives regularly ride with members of the Harley Owners Group to see firsthand what satisfies motorcy- cle buyers and what else they are looking for. They invite customers to submit their own videos online illustrating individual Harley-Davidson experiences, and ask social media users to comment on proposed ad campaigns. This research helps the company come up with new prod- uct ideas and new ways to promote bikes to current and potential customers.85

1-4b SELECTING THE TARGET MARKET Understanding consumer behavior helps marketers deter- mine which consumer groups are appropriate targets for marketing tactics and how heavy users of a product differ from light users.86 Marketers also need to identify who is likely to be involved in acquisition, usage, and disposition

PART ONEPART ONEP | AN INTRODUCTION TO CONSUMER BEHAVIOR18

Should Our Offerings Be Repositioned? Consumer research can help marketers reposition exist- ing products (i.e., change their image). Consider how the Versus sports cable channel was repositioned. Originally introduced as Outdoor Life Network in 1995, the U.S. cable channel was repositioned as Versus in 2006 to reflect its broader sports coverage. Even with an audience of 70 million households, Versus fell short of rival ESPN’s audi- ence of 100 million households. Knowing that consumers are far more familiar with the NBC brand and coverage, thanks to the network’s broadcasting of the Olympics and other high-profile events, Versus was repositioned as NBC Sports Network, broadcasting round-the-clock sporting events and related content.100

1-4e MAKING PROMOTION AND MARKETING COMMUNICATIONS DECISIONS

Research can help companies make decisions about pro- motional/marketing communications tools, including advertising, sales promotions (premiums, contests, sweep- stakes, free samples, coupons, and rebates), personal sell- ing, and public relations. One area receiving attention is the use of techniques to measure consumers’ physiological and neurological responses to marketing communications and other stimuli.101 The rise of social media adds another twist to promotion and communications decisions.102 Word of mouth—which spreads quickly through social media—that is not marketer-controlled, seems more cred- ible to consumers than messages directly controlled by marketers.103

What Are Our Communication Objectives? Consumer research can be very useful in determining advertising objectives. It may reveal, for example, that few people have heard of a new brand, suggesting that the advertising objective should be to enhance brand-name awareness. If research indicates that consumers have heard of the brand but don’t know anything about it, the advertising objective should be to enhance brand knowl- edge. If consumers know the brand name but don’t know the characteristics of the brand that make it desirable, the advertising should aim to enhance brand knowledge and encourage positive attitudes about it. And if consumers know neither the brand name nor the product’s benefits, the advertising should educate the target market about both.

What Should Our Marketing Communications Look Like? Research can help marketers determine what words and visuals—and what balance of text and images—would be most effective for ad and brand recognition and recall.104 A brand name is better remembered when placed in an ad that has interesting, unusual, and relevant visuals. If the visuals are interesting but unrelated to the product,

What Should the Package and Logo Look Like? Many marketers use consumer research when making decisions about packaging and logos. For example, if you were to buy a bag of pretzels, you might infer that a bag with 15 pretzels on the package would contain more pretzels than one that shows only 3 pretzels on the pack- age.93 ConAgra Foods, which makes products such as Orville Redenbacher popcorn, takes online shopping habits into consideration when designing product pack- ages. By developing smaller packages that cost less to ship, ConAgra increases the opportunities for selling to cost-conscious online shoppers.94

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