Summary Consumer behavior
Content
Part 1 Consumers, marketers and technology...........................................................................4
Chapter 1 Technology-driven consumer behavior.....................................................................4
The marketing concept...........................................................................................................4
Technology enriches the exchange between consumers and marketers..............................5
Customer value, satisfaction and retention............................................................................5
Chapter 2 Segmentation, targeting and positioning...................................................................8
Market segmentation and effective targeting........................................................................8
Bases for segmentation...........................................................................................................8
Behavioral targeting..............................................................................................................10
Positioning and repositioning...............................................................................................10
Part 2 The consumer as an individual.......................................................................................11
Chapter 3 Consumer motivation and personality.....................................................................11
The dynamics of motivation..................................................................................................12
Systems of needs..................................................................................................................13
The measurement of motives...............................................................................................13
The nature and theories of personality................................................................................14
Personality traits and consumer behavior............................................................................14
Product and brand personification.......................................................................................16
The self and self-image.........................................................................................................16
Chapter 4 Consumer perception...............................................................................................17
The elements of perception..................................................................................................17
Perceptual selection..............................................................................................................18
Perceptual organization........................................................................................................18
Perceptual interpretation: stereotyping...............................................................................19
Consumer imagery................................................................................................................19
Perceived quality...................................................................................................................19
Perceived risk........................................................................................................................20
Chapter 5 Consumer learning...................................................................................................20
The elements of consumer learning.....................................................................................20
Classical conditioning............................................................................................................21
Instrumental conditioning.....................................................................................................21
1
, Observational learning..........................................................................................................22
Information processing.........................................................................................................22
Cognitive learning.................................................................................................................23
Consumer involvement and Hemispheric lateralization......................................................23
Outcomes and measures of consumer learning...................................................................23
Chapter 6 Consumer attitude formation and change...............................................................24
Attitudes and their formation...............................................................................................24
The tri-component attitude model.......................................................................................24
Multi-attribute attitude models............................................................................................24
Changing the motivational functions of attitudes................................................................25
The elaboration likelihood model.........................................................................................25
Cognitive dissonance and resolving conflicting attitudes.....................................................26
Assigning causality and attribution theory...........................................................................26
Part 3 Communication and consumer behavior.......................................................................28
Chapter 7 Persuading consumers.............................................................................................28
The communication process.................................................................................................28
Broadcasting versus narrowcasting......................................................................................29
Designing persuasive messages............................................................................................29
Persuasive advertising appeals.............................................................................................29
Measures of message effectiveness.....................................................................................31
Chapter 8 From print and broadcast advertising to social and mobile media.........................32
Targeting segments versus eyeballs.....................................................................................32
Google’s consumer tracking and targeting...........................................................................32
Consumers and social media................................................................................................33
Consumers and mobile advertising.......................................................................................34
Measuring media’s advertising effectiveness.......................................................................34
Traditional media’s electronic revolution.............................................................................35
Chapter 9 Reference groups and word-of-mouth....................................................................35
Source credibility and reference groups...............................................................................35
Credibility of spokesperson, endorsers and other formal sources.......................................36
Word-of-mouth and opinion leadership...............................................................................37
Strategic applications of word-of-mouth..............................................................................38
Diffusion of innovations: segmenting by adopter categories...............................................39
2
,Part 5 Consumer decision-making, marketing ethics and consumer research........................40
Chapter 14 Consumer decision-making and diffusion of innovations......................................40
Consumer decision-making model.......................................................................................40
Consumer gifting behavior....................................................................................................41
Diffusion and adoption of innovations.................................................................................41
Chapter 15 Marketing ethics and social responsibility.............................................................42
The societal marketing concept: utopia or reality?..............................................................42
Exploitive marketing.............................................................................................................42
Crafty promotional messages and techniques.....................................................................43
Provocative marketing..........................................................................................................43
Abusing consumers’ privacy..................................................................................................43
Promoting social causes........................................................................................................44
3
, Part 1 Consumers, marketers and technology
Chapter 1 Technology-driven consumer behavior
Marketing is the activity, set of institutions and processes for creating, communicating, delivering
and exchanging offerings that have value for customers, clients, partners and society. Consumer
behavior is the study of consumers’ actions during searching for, purchasing, using, evaluating, and
disposing of product and services that they expect will satisfy their needs. The core of marketing is
identifying unfilled needs and delivering product and services that satisfy these needs. Consumer
behavior explains how individuals make decisions to spend their available resources on goods that
marketers offer for sale. The study of consumer behavior describes what products and brands
consumers buy, why, when, where and how often they buy them, how often they use them, how
they evaluate them after the purchase, and whether or not they buy them repeatedly. Egotism and
power are pervasive psychological needs, and marketers often appeal to them in advertisements.
The marketing concept
Marketing concept: the essence of marketing consists of satisfying customers’ needs, creating value
and retaining customers. It maintains that companies must produce only those goods that they have
already determined that consumers would buy. The marketing concept evolved from several prior
business orientations focused on production, the product itself and selling:
Production concept: consumers are mostly interested in product availability at low prices. Its
implicit marketing objectives are cheap, efficient production and intensive distribution.
Henry Ford (Ford) & Alfred Sloan (General Motors)
Product concept: consumers will buy the product that offers them the highest quality, the
best performance and the most features. A product orientation leadt the company to strive
constantly to improve the quality of its product and to add new features if they are
technically feasible, without finding out first whether consumers really want these features.
This often leads to marketing myopia: a focus on the product rather than on the needs it
presumes to satisfy.
Selling concept: marketers’ primary focus is selling the product that they have decided to
produce. Assumption selling concept: consumers are unlikely to buy the product unless they
are aggressively persuaded to do so – mostly through the hard sell approach: does not
consider customer satisfaction, because consumer who are aggressively induced to buy
products they do not want or need, or product of low quality, will not buy them again.
Implementing the marketing concept requires sellers to use consumer research, market
segmentation, a combination of the product, price, place and promotion strategies, provide value
and result in long-term customer satisfaction and retention.
Consumer research
Consumers are complex individuals, subject to a variety of psychological and social needs, and the
needs an priorities of different consumer segments differ dramatically. Consumer research: the
process and tools used to study consumer behavior (CH16). Consumer research is a form of market
research: a process that links the consumer, customer and public to the marketer through
information in order to identify marketing opportunities and problems, evaluate marketing actions
and judge the performance of marketing strategies. The market research process outlines the
information required, designs the method for collecting information, manages the data collection
process, analyzes the results and communicates the findings to marketers.
4
Content
Part 1 Consumers, marketers and technology...........................................................................4
Chapter 1 Technology-driven consumer behavior.....................................................................4
The marketing concept...........................................................................................................4
Technology enriches the exchange between consumers and marketers..............................5
Customer value, satisfaction and retention............................................................................5
Chapter 2 Segmentation, targeting and positioning...................................................................8
Market segmentation and effective targeting........................................................................8
Bases for segmentation...........................................................................................................8
Behavioral targeting..............................................................................................................10
Positioning and repositioning...............................................................................................10
Part 2 The consumer as an individual.......................................................................................11
Chapter 3 Consumer motivation and personality.....................................................................11
The dynamics of motivation..................................................................................................12
Systems of needs..................................................................................................................13
The measurement of motives...............................................................................................13
The nature and theories of personality................................................................................14
Personality traits and consumer behavior............................................................................14
Product and brand personification.......................................................................................16
The self and self-image.........................................................................................................16
Chapter 4 Consumer perception...............................................................................................17
The elements of perception..................................................................................................17
Perceptual selection..............................................................................................................18
Perceptual organization........................................................................................................18
Perceptual interpretation: stereotyping...............................................................................19
Consumer imagery................................................................................................................19
Perceived quality...................................................................................................................19
Perceived risk........................................................................................................................20
Chapter 5 Consumer learning...................................................................................................20
The elements of consumer learning.....................................................................................20
Classical conditioning............................................................................................................21
Instrumental conditioning.....................................................................................................21
1
, Observational learning..........................................................................................................22
Information processing.........................................................................................................22
Cognitive learning.................................................................................................................23
Consumer involvement and Hemispheric lateralization......................................................23
Outcomes and measures of consumer learning...................................................................23
Chapter 6 Consumer attitude formation and change...............................................................24
Attitudes and their formation...............................................................................................24
The tri-component attitude model.......................................................................................24
Multi-attribute attitude models............................................................................................24
Changing the motivational functions of attitudes................................................................25
The elaboration likelihood model.........................................................................................25
Cognitive dissonance and resolving conflicting attitudes.....................................................26
Assigning causality and attribution theory...........................................................................26
Part 3 Communication and consumer behavior.......................................................................28
Chapter 7 Persuading consumers.............................................................................................28
The communication process.................................................................................................28
Broadcasting versus narrowcasting......................................................................................29
Designing persuasive messages............................................................................................29
Persuasive advertising appeals.............................................................................................29
Measures of message effectiveness.....................................................................................31
Chapter 8 From print and broadcast advertising to social and mobile media.........................32
Targeting segments versus eyeballs.....................................................................................32
Google’s consumer tracking and targeting...........................................................................32
Consumers and social media................................................................................................33
Consumers and mobile advertising.......................................................................................34
Measuring media’s advertising effectiveness.......................................................................34
Traditional media’s electronic revolution.............................................................................35
Chapter 9 Reference groups and word-of-mouth....................................................................35
Source credibility and reference groups...............................................................................35
Credibility of spokesperson, endorsers and other formal sources.......................................36
Word-of-mouth and opinion leadership...............................................................................37
Strategic applications of word-of-mouth..............................................................................38
Diffusion of innovations: segmenting by adopter categories...............................................39
2
,Part 5 Consumer decision-making, marketing ethics and consumer research........................40
Chapter 14 Consumer decision-making and diffusion of innovations......................................40
Consumer decision-making model.......................................................................................40
Consumer gifting behavior....................................................................................................41
Diffusion and adoption of innovations.................................................................................41
Chapter 15 Marketing ethics and social responsibility.............................................................42
The societal marketing concept: utopia or reality?..............................................................42
Exploitive marketing.............................................................................................................42
Crafty promotional messages and techniques.....................................................................43
Provocative marketing..........................................................................................................43
Abusing consumers’ privacy..................................................................................................43
Promoting social causes........................................................................................................44
3
, Part 1 Consumers, marketers and technology
Chapter 1 Technology-driven consumer behavior
Marketing is the activity, set of institutions and processes for creating, communicating, delivering
and exchanging offerings that have value for customers, clients, partners and society. Consumer
behavior is the study of consumers’ actions during searching for, purchasing, using, evaluating, and
disposing of product and services that they expect will satisfy their needs. The core of marketing is
identifying unfilled needs and delivering product and services that satisfy these needs. Consumer
behavior explains how individuals make decisions to spend their available resources on goods that
marketers offer for sale. The study of consumer behavior describes what products and brands
consumers buy, why, when, where and how often they buy them, how often they use them, how
they evaluate them after the purchase, and whether or not they buy them repeatedly. Egotism and
power are pervasive psychological needs, and marketers often appeal to them in advertisements.
The marketing concept
Marketing concept: the essence of marketing consists of satisfying customers’ needs, creating value
and retaining customers. It maintains that companies must produce only those goods that they have
already determined that consumers would buy. The marketing concept evolved from several prior
business orientations focused on production, the product itself and selling:
Production concept: consumers are mostly interested in product availability at low prices. Its
implicit marketing objectives are cheap, efficient production and intensive distribution.
Henry Ford (Ford) & Alfred Sloan (General Motors)
Product concept: consumers will buy the product that offers them the highest quality, the
best performance and the most features. A product orientation leadt the company to strive
constantly to improve the quality of its product and to add new features if they are
technically feasible, without finding out first whether consumers really want these features.
This often leads to marketing myopia: a focus on the product rather than on the needs it
presumes to satisfy.
Selling concept: marketers’ primary focus is selling the product that they have decided to
produce. Assumption selling concept: consumers are unlikely to buy the product unless they
are aggressively persuaded to do so – mostly through the hard sell approach: does not
consider customer satisfaction, because consumer who are aggressively induced to buy
products they do not want or need, or product of low quality, will not buy them again.
Implementing the marketing concept requires sellers to use consumer research, market
segmentation, a combination of the product, price, place and promotion strategies, provide value
and result in long-term customer satisfaction and retention.
Consumer research
Consumers are complex individuals, subject to a variety of psychological and social needs, and the
needs an priorities of different consumer segments differ dramatically. Consumer research: the
process and tools used to study consumer behavior (CH16). Consumer research is a form of market
research: a process that links the consumer, customer and public to the marketer through
information in order to identify marketing opportunities and problems, evaluate marketing actions
and judge the performance of marketing strategies. The market research process outlines the
information required, designs the method for collecting information, manages the data collection
process, analyzes the results and communicates the findings to marketers.
4
