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Mccain Foods - Consumer Behaviour

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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Consumer Behavior, 7e Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters

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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

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iv

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

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

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

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vi

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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1

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

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222

iStockphoto.com/Ostill

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

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3

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

Appendix: Developing Information About Consumer Behavior 28

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4

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.