Building Marketing Strategy
Consumer BEHAVIOR eleventh edition
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Consumer Behavior is the most current,
relevant, and balanced presentation
of consumer behavior in the context
of building marketing strategy.
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HAWKINS
MOTHERSBAUGH
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Consumer Behavior Building Marketing Strategy E L E V E N T H E D I T I O N
Del I. Hawkins University of Oregon
David L. Mothersbaugh University of Alabama
Boston Burr Ridge, IL Dubuque, IA New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
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CONSUMER BEHAVIOR: BUILDING MARKETING STRATEGY
Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2010, 2007, 2004, 2001, 1998, 1994, 1992, 1989, 1986, 1983, 1980 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the United States.
This book is printed on acid-free paper.
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ISBN 978-0-07-338110-7 MHID 0-07-338110-1
Vice president and editor-in-chief: Brent Gordon Publisher: Paul Ducham Executive editor: Doug Hughes Editorial coordinator: Kelly Pekelder Marketing manager: Katie Mergen Lead project manager: Christine A. Vaughan Senior manager, EDP: Heather D. Burbridge Interior designer: Laurie J. Entringer Senior photo research coordinator: Lori Kramer Photo researcher: Mike Hruby Senior media project manager: Greg Bates Cover and interior design: Laurie J. Entringer Cover image: © Sylvain Sonnett, Getty Images Typeface: 10/12 Times Roman Compositor: Macmillan Publishing Solutions Printer: R. R. Donnelley
Library of Congress Cataloging-in-Publication Data Hawkins, Del I. Consumer behavior: building marketing strategy / Del I. Hawkins, David L. Mothersbaugh.—11th ed. p. cm. Includes index. ISBN-13: 978-0-07-338110-7 (alk. paper) ISBN-10: 0-07-338110-1 (alk. paper) 1. Consumer behavior—United States. 2. Market surveys—United States. 3. Consumer behavior—United States—Case studies. I. Mothersbaugh, David L. II. Title. HF5415.33.U6H38 2010 658.8'3420973—dc22 2008044958
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Preface teacher, and the right topic, you might even produce a masterpiece. The same approach should be taken by one wishing to become a marketing manager, a sales- person, or an advertising director. The various factors or principles that infl uence consumer behavior should be thoroughly studied. Then, one should practice applying these principles until acceptable marketing strategies result. However, while knowledge and practice can in general produce acceptable strategies, great marketing strategies, like masterpieces, require special talents, effort, timing, and some degree of luck (what if Mona Lisa had not wanted her portrait painted?). The art analogy is useful for another reason. All of us, professors and students alike, tend to ask, “How can I use the concept of, say, social class to develop a suc- cessful marketing strategy?” This makes as much sense as an artist asking, “How can I use blue to create a great picture?” Obviously, blue alone will seldom be suffi - cient for a great work of art. Instead, to be successful, the artist must understand when and how to use blue in conjunction with other elements in the picture. Like- wise, the marketing manager must understand when and how to use a knowledge of social class in conjunc- tion with a knowledge of other factors in designing a successful marketing strategy. This book is based on the belief that knowledge of the factors that infl uence consumer behavior can, with practice, be used to develop sound marketing strategy. With this in mind, we have attempted to do three things. First, we present a reasonably comprehensive descrip- tion of the various behavioral concepts and theories that have been found useful for understanding consumer behavior. This is generally done at the beginning of each chapter or at the beginning of major subsections in each chapter. We believe that a person must have a thorough understanding of a concept in order to suc- cessfully apply that concept across different situations. Second, we present examples of how these concepts have been used in the development of marketing strat- egy. We have tried to make clear that these examples are not “how you use this concept.” Rather, they are presented as “how one organization facing a particular marketing situation used this concept.” Third, at the end of each chapter and each major sec- tion, we present a number of questions, activities, or cases that require the student to apply the concepts.
Marketing attempts to infl uence the way consumers behave. These attempts have implications for the orga- nizations making them, the consumers they are trying to infl uence, and the society in which these attempts occur. We are all consumers and we are all members of society, so consumer behavior and attempts to infl u- ence it are critical to all of us. This text is designed to provide an understanding of consumer behavior. This understanding can make us better consumers, better marketers, and better citizens.
MARKETING CAREERS AND CONSUMER BEHAVIOR A primary purpose of this text is to provide the student with a usable, managerial understanding of consumer behavior. Most students in consumer behavior courses aspire to careers in marketing management, sales, or advertising. They hope to acquire knowledge and skills that will be useful to them in these careers. Unfortu- nately, some may be seeking the type of knowledge gained in introductory accounting classes; that is, a set of relatively invariant rules that can be applied across a variety of situations to achieve a fi xed solution that is known to be correct. For these students, the uncertainty and lack of closure involved in dealing with living, breathing, changing, stubborn consumers can be very frustrating. However, if they can accept dealing with endless uncertainty, utilizing an understanding of con- sumer behavior in developing marketing strategy will become tremendously exciting. It is our view that the use of knowledge of consumer behavior in the development of marketing strategy is an art. This is not to suggest that scientifi c principles and procedures are not applicable; rather, it means that the successful application of these principles to particu- lar situations requires human judgment that we are not able to reduce to a fi xed set of rules. Let us consider the analogy with art in some detail. Suppose you want to become an expert artist. You would study known principles of the visual effects of blending various colors, of perspective, and so forth. Then you would practice applying these principles until you developed the ability to produce acceptable paintings. If you had certain natural talents, the right
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text. The objective is to develop the ability to apply consumer behavior knowledge to social and regulatory issues as well as to business and personal issues.
FEATURES OF THE ELEVENTH EDITION Marketing and consumer behavior, like the rest of the world, are changing at a rapid pace. Both the way con- sumers behave and the practices of studying that behav- ior continue to evolve. To keep up with this dynamic environment, the eleventh edition includes a number of important features.
Internet and Technology The Internet and technology are rapidly changing many aspects of consumer behavior. We have integrated the latest research, practices, and examples concerning the Internet and technology throughout the text and the cases. Examples include:
• Online social media and Web 2.0 • Sears Goes Zwicky for Tweens and Teens • Mobile marketing strategies • Techniques for converting Web site visitors to buyers
Global Marketing Previous editions have included a wealth of global material, and this edition is no exception. Most chap- ters contain multiple global examples woven into the text. In addition, Chapter 2 and several of the cases are devoted to global issues. New global examples include:
• Wal-Mart adapts its strategy to developing countries • Emerging segments of global citizens • Seki Saba—repositioning Japanese Mackerel • The changing nature of globalization
Ethnic Subcultures This edition continues our emphasis on the exciting issues surrounding marketing to ethnic subcultures. Ethnic diversity is increasing, and we draw on the lat- est research and emerging trends to shed light on this important topic. Examples include:
• P&G’s My Black Is Beautiful Campaign • Camry Goes Interactive to Attract Black Women • Hispanic Teens—The New Bicultural Youth
CONSUMING AND CONSUMER BEHAVIOR The authors of this book are consumers, as is everyone reading this text. Most of us spend more time buying and consuming than we do working or sleeping. We consume products such as cars and fuel, services such as haircuts and home repairs, and entertainment such as television and concerts. Given the time and energy we devote to consuming, we should strive to be good at it. A knowledge of consumer behavior can be used to enhance our ability to consume wisely. Marketers spend billions of dollars attempting to infl uence what, when, and how you and I consume. Marketers not only spend billions attempting to infl u- ence our behavior but also spend hundreds of millions of dollars studying our behavior. With a knowledge of con- sumer behavior and an understanding of how marketers use this knowledge, we can study marketers. A televi- sion commercial can be an annoying interruption of a favorite program. However, it can also be a fascinating opportunity to speculate on the commercial’s objective, target audience, and underlying behavior assumptions. Indeed, given the ubiquitous nature of commercials, an understanding of how they are attempting to infl uence us or others is essential to understand our environment. Throughout the text, we present examples that illus- trate the objectives of specifi c marketing activities. By studying these examples and the principles on which they are based, we can develop the ability to discern the underlying logic of the marketing activities encoun- tered daily.
SOCIAL RESPONSIBILITY AND CONSUMER BEHAVIOR What are the costs and benefi ts of direct-to-consumer (DTC) advertising of pharmaceutical products? How much more needs to be done to protect the online privacy of children? These issues are currently being debated by industry leaders and consumer advocacy groups. As educated citizens, we have a responsibility to take part in these sorts of debates and work toward positive solutions. However, developing sound positions on these issues requires an understanding of such factors as information processing as it relates to advertising—an important part of our understanding of consumer behavior. The debates described above are just a few of the many that require an understanding of consumer behav- ior. We present a number of these topics throughout the
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Preface v
knowledge of consumer behavior to infl uence consum- ers. A section at the end of each chapter has Internet assignments to enhance students’ understanding of how marketers are approaching consumers using this medium.
DDB Life Style Study™ Data Analyses Each relevant chapter poses a series of questions that require students to analyze data from the annual DDB Life Style Study™ survey. These data are available in spreadsheet format on the disk that accompanies this text. These exercises increase students’ data analy- sis skills as well as their understanding of consumer behavior. The DDB data were completely updated for the tenth edition to include results of the 2004 survey. A major advantage of this new data is that it includes information on behaviors related to Internet use and shopping.
Four-Color Illustrations Print ads, Web pages, storyboards, and photos of point- of-purchase displays and packages appear throughout the text. Each is directly linked to the text material both by text references to each illustration and by the descrip- tive comments that accompany each illustration. These illustrations, which we’ve continued to update with the eleventh edition, provide vivid examples and applications of the concepts and theories presented in the text.
Review Questions The review questions at the end of each chapter allow students or the instructor to test the acquisition of the facts contained in the chapter. The questions require memorization, which we believe is an important, though insuffi cient, part of learning.
Discussion Questions These questions can be used to help develop or test the students’ understanding of the material in the chapter. Answering these questions requires the student to uti- lize the material in the chapter to reach a recommen- dation or solution. However, they can generally be answered without external activities such as customer interviews; therefore, they can be assigned as in-class activities.
Strategic Application This edition continues our emphasis on the application of consumer behavior concepts and theory to exciting marketing problems and important emerging trends. We do this through our opening examples, featured Consumer Insights, and cases. Examples include:
• Jack Link’s Beef Jerky Going Hip and Healthy • Positioning the Yaris • Living in a DVR world • Organic Hits Its Stride
CHAPTER FEATURES Each chapter contains a variety of features designed to enhance students’ understanding of the material as well as to make the material more fun.
Opening Vignettes Each chapter begins with a practical example that introduces the material in the chapter. These involve situations in which businesses, government units, or nonprofi t organizations have used or misused consumer behavior principles.
Consumer Insights These boxed discussions provide an in-depth look at a particularly interesting consumer study or market- ing practice. Each has several questions with it that are designed to encourage critical thinking by the students.
Integrated Coverage of Ethical and Social Issues Marketers face numerous ethical issues as they apply their understanding of consumer behavior in the mar- ketplace. We describe and discuss many of these issues. These discussions are highlighted in the text via an “ethics” icon in the margin. In addition, Chapter 20 is devoted to social and regulation issues relating to mar- keting practice. Several of the cases are also focused on ethical or regulatory issues, including all of the cases following Part Six.
Internet Exercises The Internet is a major source of data on consumer behavior and a medium in which marketers use their
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Consumer Behavior Audit Appendix B provides a format for doing a consumer behavior audit for a proposed marketing strategy. This audit is basically a list of key consumer behavior ques- tions that should be answered for every proposed mar- keting strategy. Many students have found it particularly useful if a term project relating consumer behavior to a fi rm’s actual or proposed strategy is required.
SUPPLEMENTAL LEARNING MATERIALS We have developed a variety of learning materials to enhance the student’s learning experience and to facili- tate the instructor’s teaching activities. Please contact your local Irwin/McGraw-Hill sales representative for assistance in obtaining ancillaries. Or visit the McGraw- Hill Higher Education Web site at www.mhhe.com.
Instructor’s Presentation CD ROM The Instructor’s CD ROM to Accompany Consumer Behavior includes all of the instructor’s resources avail- able for Consumer Behavior in electronic form and an easy interface that makes it even easier to access the specifi c items the instructor wants to use:
• Instructor’s Manual (New Supplemental Exam- ples for Eleventh Edition)
The Instructor’s Manual contains suggestions for teaching the course, learning objectives for each chapter, lecture tips and aids, answers to the end- of-chapter questions, suggested case teaching approaches, and discussion guides for each case. It also includes supplemental examples called CB Press Highlights. These examples are not found in the text and can help enhance classroom presenta- tion and discussion.
• Test Bank and Computerized Test Bank A new and improved test bank was created for the
tenth edition. The eleventh edition maintains our high standards of accuracy and completeness, with over 2,000 questions ranging from multiple-choice, to true-false, to short-answer. These questions are coded according to degree of diffi culty and are designed with the fl exibility to suit your students’ needs and your teaching style. These questions cover all the chapters, including material in the opening
Application Activities The fi nal learning aid at the end of each chapter is a set of application exercises. These require the students to use the material in the chapter in conjunction with exter- nal activities such as visiting stores to observe point-of- purchase displays, interviewing customers or managers, or evaluating television ads. They range in complexity from short evening assignments to term projects.
OTHER LEARNING AIDS IN THE TEXT Three useful sets of learning material are presented outside the chapter format—cases, an overview of con- sumer research methods, and a format for a consumer behavior audit.
Cases There are cases at the end of each major section of the text except the fi rst. Many of the cases can be read in class and used to generate discussion of a particular topic. Students like this approach, and many instructors fi nd it a useful way to motivate class discussion. Other cases are more complex and data intense. They require several hours of effort to analyze. Still others can serve as the basis for a term project. We have used sev- eral cases in this manner with success (the assignment is to develop a marketing plan clearly identifying the consumer behavior constructs that underlie the plan). Each case can be approached from a variety of angles. A number of discussion questions are provided with each case. However, many other questions can be used. In fact, while the cases are placed at the end of the major sections, most lend themselves to discussion at other points in the text as well.
Consumer Research Methods Overview Appendix A provides a brief overview of the more com- monly used research methods in consumer behavior. While not a substitute for a course or text in market- ing research, it is a useful review for students who have completed a research course. It can also serve to provide students who have not had such a course with relevant ter- minology and a very basic understanding of the process and major techniques involved in consumer research.
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ACKNOWLEDGMENTS We enjoy studying, teaching, consulting, and writing about consumer behavior. Most of the faculty we know feel the same. As with every edition of this book, our goal for the eleventh edition has been to make a book that students enjoy reading and that excites them about a fascinating topic. Numerous individuals and organizations helped us in the task of writing this edition. We are grateful for their assistance. At the risk of not thanking all who deserve credit, we would like to thank Martin Horn at DDB, Tom Spencer at Claritas, Jessica Damico at Forrester Research, Dr. Sijun Wang at California State University at Pomona, Dr. Junwu Dong at Guangdong University, Rick Bruner at DoubleClick, Matt Bailey at Site Logic, and Carrie Hollenberg at SRI Consulting Business Intelligence. Maren Kirlin and Casey Findley (The University of Alabama) deserve special thanks for their countless hours of research and analysis. We would also like to thank the many members of the McGraw-Hill Higher Education team, including Dough Hughes, Kelly Pekelder, Katie Mergen, Christine Vaughan, Heather Burbridge, Laurie Entringer, Lori Kramer, Mike Hruby, and Greg Bates. We believe that the eleventh edition is improved because of your efforts: Scott Anderson, Buena Vista University; Linda Anglin, Minnesota State University, Mankato; Yeqing Bao, University of Alabama-Huntsville; Mary E. Briseno, University of the Incarnate Word; Kathy Crockett, Lubbock Christian University; Brent Cunningham, Jacksonville State University; Michael T. Elliott, University of Missouri–St. Louis; Dr. Nitika Garg, University of Mississippi; David Hagenbuch, Messiah College; Karl A. Hickerson, St. Ambrose University; Samira B. Hussein, Johnson County Community College; Joseph Izzo, SUNY Fredonia; John C. Kozup, Villanova University; William Lundstrom, Cleveland State University; Kimberly McNeil, North Carolina A&T State University; Nancy J. Nentl, Metropolitan State University; Dr. Brooke Quigg, Pierce College; Dr. Donna Tillman, California State University–Pomona; and Ramaprasad Unni, Tennessee State University. Finally, to our colleagues at Oregon and Alabama— Thanks for your ongoing support, encouragement and friendship.
Del I. Hawkins David L. Mothersbaugh
vignettes and in the Consumer Insights. Questions are marked with a page number so that instructors can make quick reference back to the book.
• Digital Four-Color Ad Set A set of digital four-color images of ads, picture
boards, point-of-purchase displays, and so forth is included. These items are keyed to specifi c chapters in the text. The Instructor’s Manual relates these items to the relevant concepts in the text.
• PowerPoint Program (New Video Clips for the Eleventh Edition!)
The PowerPoint slides have again been substan- tially enhanced for each chapter. They include the key material from each chapter as well as additional illustrations and examples to enhance the overall classroom experience. A new feature of the Power- Points for the eleventh edition is that each chapter is accompanied by a one- to three-minute video clip that elaborates on one of the chapter concepts. The PowerPoints can be used “off the shelf,” in combina- tion with the instructor’s own materials, and/or can be combined with the digital four-color ad set to cre- ate powerful presentations that include both text and nontext materials.
Video Cases (Now on DVD!) A set of 15 video cases is available to adopters. One third of the videos are new to the eleventh edition and since the tenth edition, all the videos have been replaced. These videos describe fi rm strategies or activities that relate to material in the text. A guide for teaching from the videos is contained in the Instructor’s manual. Examples of videos in the set include:
• Geek Squad: Services and Satisfaction • Oreo: Crafting a Truly Global Brand • Targeting the Premium Dog Market • MINI Cooper: Creating an Iconic Lifestyle Brand
Text Web site The book-specifi c Online Learning Center, located at www.mhhe.com/hawkins11e, offers comprehensive classroom support by providing resources for both instructors and students. For instructors, it gives access to downloadable teaching supplements (Instructor’s Manual and PowerPoint slides), resource links, and PageOut. For students, it offers resource links and quiz- zes for self-testing.
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KNOWING CONSUMER BEHAVIOR Marketing attempts to infl uence the way consumers behave. These attempts have implications for the organizations making the attempt, the consumers they are trying to infl uence, and the society in which these attempts occur. We are all consumers: the authors of this book are consumers, as is everyone reading this text, and we are all members of society, so consumer behavior, and attempts to infl uence it, are critical to all of us. This text is designed to provide an understanding of consumer behavior. This understanding can make us better consum- ers, better marketers, and better citizens.
Throughout the text, we present examples that illustrate the objectives of specifi c mar- keting activities. By studying these exam- ples and the principles on which they are based, one can develop the ability to discern the underlying logic of the marketing activi- ties encountered daily. Given the time and energy we devote to consuming, we should strive to be good at it, and a knowledge of consumer behavior can be used to enhance our ability to consume wisely.
Opening Vignette The chapter openers feature vignettes that focus on practical examples that introduce the consumer behavior concepts covered in the chapter.
Walkthrough
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ILLUSTRATION 9–1
Successful new
products and brands
must enter into
memory in a favor-
able manner, and
they must be recalled
when required. In
this case, the brand
name, the visual in
the ad, and the ad
text will enhance
elaborative activities
appropriate for the
product.
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Four-Color Illustrations Print ads, Web pages, storyboards, and photos of point-of-purchase dis- plays and packages appear throughout the text.
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Part Four Cases
CASE 4–1 SEARS GOES ZWINKY FOR TWEENS AND TEENS
Sears has struggled over the years. While some categories, such as Craftsman tools, have been a perennial hit, other categories, particularly apparel, have struggled. Sears has made numerous efforts, including the addition of Lands’ End and the Covington collection, as well as the refur- bishing of out-of-date stores. While Sears may not be the coolest brand around, the data in Table A for tween and teen girls suggest that in terms of store visits, Sears beats out retailers such as Gap, Macy’s, and Wet Seal.
tool? Social networking! Their message? “Don’t Just Go Back. Arrive.” According to one source:
Thirteen sites have partnered with Sears to create custom animation, virtual worlds and social networking applica- tions aimed at driving the target market to the Sears online “Arrive Lounge.” [Arrive Lounge] features exclusive, interactive content from the entire Sears 2008 back to school offering.
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What Are the Ethical Implications of Marketing This Product in This Country? All marketing programs should be evaluated on ethical as well as financial dimensions. As discussed at the beginning of the chapter, international marketing activities raise many eth- ical issues. The ethical dimension is particularly important and complex in marketing to Third World and developing countries. Consider Kellogg’s attempt to introduce cold cereal as a breakfast food in a developing country. An ethical analysis would consider various fac- tors including:
If we succeed, will the average nutrition level be increased or decreased?
If we succeed, will the funds spent on cereal be diverted from other uses with more ben- eficial long-term impacts for the individuals or society?
If we succeed, what impact will this have on the local producers of currently consumed breakfast products?
Such an ethical analysis not only is the right thing to do; it may head off conflicts with local governments or economic interests. Understanding and acting on ethical considerations in international marketing is a difficult task. However, it is also a necessary one.
DDB LIFE STYLE STUDY™ DATA ANALYSES
1. Examine the DDB data in Tables 1B through 7B. What characterizes someone who wants to look a little different from others? Which factors contrib- ute most? Which of McGuire’s motives does this most relate to, and what are the marketing implica- tions of your fi ndings?
2. What characterizes someone who views shopping as a form of entertainment (Tables 1B through 7B)? Which factors contribute most? How do your
fi ndings relate to the information presented in Consumer Insight 10–1?
3. Some people feel (and act) more self-confi dent than others. Based on the DDB data (Tables 1B through 7B), what factors are most characteristic of highly confi dent individuals? Which of the Big Five per- sonality dimensions does self-confi dence relate most to, and what are the marketing implications of your fi ndings?