MODULE 6

CONSUMER DECISION
MAKING
LEARNING OUTCOMES

After studying this module, you will be able to…

6-1 Explain why marketing managers should understand consumer

behavior
6-2 Analyze the components of the consumer decision-making process
6-3 Explain the consumer’s post-purchase evaluation process
6-4 Identify the types of consumer buying decisions and discuss the significance of consumer
involvement
6-5 Identify and understand the cultural factors that affect consumer buying decisions
6-6 Identify and understand the social factors that affect consumer buying decisions
6-7 Identify and understand the individual factors that affect consumer buying decisions
6-8 Identify and understand the psychological factors that affect consumer buying decisions

6-1 THE IMPORTANCE OF UNDERSTANDING CONSUMER BEHAVIOR

Consumers' preferences for products and services are constantly shifting. To create a proper
marketing mix for a well-defined market, marketing managers must first understand these
desires. As a result, marketing executives must be well-versed in consumer behavior.
Consumer behavior describes how consumers make purchasing decisions as well as how they
use and dispose of the goods or services they purchase. Consumer behavior research also
includes factors that influence purchase decisions and product usage.
A personal assessment of the net worth obtained from a purchase is referred to as
value. In other words, value is what you get minus what you give up. Value can also refer to a
society's long-held belief that one way of behaving is personally or socially preferable to
another way of behaving.
consumer behavior processes a Purchases are made based on perceived value, or what
consumer uses to make purchase you expect to receive. The actual value may be higher or lower
decisions, as well as to use and than you anticipated. He enjoys drinking coffee all morning but
dispose of purchased goods or
discovered that the heating elements in traditional coffee
services; also includes factors
makers tended to turn the coffee bitter and thick after a few
that influence purchase decisions
and product use
hours. There is no value there! (For those who are interested,
the author has switched to a new traditional style coffee maker.)
Two types of value can be obtained from a purchase:
 Utilitarian value is derived from a product or service that value a personal assessment of
assists the consumer in problem-solving and task the net worth one obtains from
completion. Thus, utilitarian value is a means to an end. The making a purchase, or the
purchase adds value because it allows something good to enduring belief that a specific
mode of conduct is personally or
happen.
socially preferable to another
 Hedonic value exists as an end in and of itself rather than as mode of conduct
a means to an end. The value is provided entirely by the
experience and emotions associated with consumption, not perceived value the value a
by the accomplishment of another goal. Taking a ski consumer expects to obtain from
a purchase
vacation or going to the beach provides us with hedonic
value. A day at the spa is a source of hedonic value. A coffee utilitarian value a value derived
maker has utilitarian value, but the coffee itself has hedonic from a product or service that
value. Utilitarian and hedonistic values do not have to be helps the consumer solve
mutually exclusive. In some cases, the purchasing problems and accomplish tasks
experience can provide hedonic as well as utilitarian value. hedonic value a value that acts
Going to Morton's and enjoying the atmosphere and a good as an end in itself rather than as a
steak will provide you with hedonic value. At the same time, means to an end
it satisfies your hunger, providing utilitarian value. Some of
the best consumer experiences have a high utilitarian as
well as hedonic value.

6-2 THE CONSUMER DECISION-

MAKING PROCESS
When purchasing products, particularly those that
are new or expensive, consumers generally follow
the consumer decision-making process depicted in
Exhibit 6.1: (1) need identification, (2) information
search, (3) alternative evaluation, (4) purchase, and
(5) post-purchase behavior These five steps
represent a general process that can be used to
study how consumers make decisions. It is
important to note, however, that consumer
decisions do not always follow the same sequence
through all of these steps. The consumer has the
option to exit the process at any time or not make
a purchase at all. Later in the module, the section
on the different types of consumer purchasing
decisions discusses why a consumer's progression
through these steps may differ. But first, let's take
a closer look at the basic purchasing process.
 6-2a Need Recognition
The first step in the consumer decision-making process is recognizing a need. The recognition
of a need is the result of a mismatch between the actual and desired states. The imbalance
arouses and activates the decision-making process of the consumer. A want is the
identification of an unsatisfied need and the creation of a product to meet it. Have you ever
developed blisters from an old running shoe and realized you needed new shoes? Or perhaps
you saw a new sports car driving down the street and wanted to buy it. When a consumer is
exposed to either an internal or external stimulus, which is any unit of input affecting one or
more of the five senses: sight, smell, taste, touch, and hearing, need recognition is triggered.
 Internal stimuli are events that occur in your life, such as hunger or thirst. For
example, you may notice your stomach growling and realize you are hungry.
 External stimuli are influences that come from somewhere else.

Stimuli can come from a variety of sources in today's digital age. Perhaps it was a
YouTube video that piqued your interest in making a purchase. It could have been a Google
search on a smartphone or an interactive advertisement on a large touch-enabled screen. Or
perhaps it was a friend’s video posted on Facebook using a new GoPro camera.
They want–got gap refers to the disparity between actual and desired states. That is,
there is a gap between what a customer has and what he or she desires. This disparity does
not always elicit consumer action. The gap must be large enough to compel the consumer to
act. Just because your stomach growls once doesn't mean you'll stop what you're doing and
go eat.
The goal of a marketing manager is to get consumers to recognize this want–got the
gap. This stimulus is frequently provided by advertising, sales promotion, and social media.
Buyer preferences surveys provide marketers with information about consumer needs and
desires, which can be used to tailor products and services.
consumer decision-making Marketing managers can create consumer desires. An
process a five-step process used advertisement promoting a healthy, active lifestyle and the
by consumers when buying goods
enjoyment of fitness tracking may persuade you to buy a
or services
wearable fitness tracker such as a Fitbit Charge HR or a
need recognition result of an Runtastic Orbit. A desire can be for a specific product or a
imbalance between actual and specific attribute or feature of a product. A runner, for
desired states example, might buy the Orbit because it works with the
want recognition of an unfulfilled Runtastic app to display information about recent runs right on
need and a product that will the wearer's wrist.
satisfy it

stimulus any unit of input

6-2b Information Search
affecting one or more of the five Consumers seek information about the various alternatives
senses: sight, smell, taste, touch,
available to satisfy a need or wants after recognizing them. For
hearing
example, you know you want to see a movie, but you're not
sure what to see. So you go to the Rotten Tomatoes website to
see what is getting rave reviews from both critics and your Facebook friends. This is a type of
information search that can take place either internally or externally. During an internal
information search, the person recalls information from memory. This stored information is
primarily derived from previous product experience. For example, while traveling with your
family, you may choose to stay at a hotel you have stayed in before because you remember
that the hotel had clean rooms and friendly service.
An external information search, in contrast, seeks information in the outside
environment. External information sources are classified into two types: Non-marketing
controlled and marketing controlled.

 Non-marketing controlled information source. A product information source that is

not associated with marketers promoting a product.
Personal experiences (trying or observing a new product), internal information search the
personal sources (family, friends, acquaintances, and process of recalling past
coworkers who may recommend a product or service), information stored in the
and public sources are examples of information sources memory
(such as Rotten Tomatoes, Consumer Reports, and other
external information search the
rating organizations that comment on products and
process of seeking information in
services. After reading Rotten Tomatoes reviews to the outside environment
determine which movie to see (public source), you can
search your memory for positive theater experiences to non-marketing-controlled
determine where you will go (personal experience). information source a product
information source that is not
Alternatively, you could go to a new theater based on a
associated with advertising or
recommendation from a friend (personal source). promotion
Marketers collect information about how these
information sources operate and use them to attract
customers. Car manufacturers, for example, know that younger customers are more
likely to get information from friends and family, so they try to generate enthusiasm
for their products through word of mouth and social media.

Eighty percent of US consumers conduct online research on electronics, computers, and

media before making an in-store purchase, and a quarter of shoppers consult at least four
sources for product information. The Internet has altered the quality of information available
to consumers when making purchasing decisions. If you want to stay in New York City, for
example, you can easily view a ranking of all New York hotels based on thousands of reviews
on websites like TripAdvisor. However, researchers using data from a large private label
retailer's Web site discovered that approximately 5% of product reviews were submitted by
people who had no record of ever
purchasing the products they were
reviewing. Expedia avoids this issue by
allowing customers to write reviews only
after they have purchased service (such
as a flight, car, or hotel room). In 2014,
30% of shoppers purchased social media.
Forty-four percent will learn about new
products through social media, and 49
percent will make purchases based on
social media referrals, recommendations
from friends in their social networks, or
promotions from brands they follow on
Facebook or Twitter.
 Although the use of mobile devices for purchases is increasing, consumers primarily
use their smartphones and tablets to research products before purchasing. According to one
survey, 70% of respondents planned to research products on their mobile devices before
purchasing them in-store. Nonetheless, online searches can still have an impact on purchasing
habits. This research assists the shopper in deciding which ingredients to buy at the
supermarket.

 Because it originates with marketers promoting that product, a marketing-controlled

information source is biased toward that product. Mass media advertising (radio,
newspaper, television, and magazine advertising), sales promotion (contests, displays,
premiums, and so on), salespeople, product labels and packaging, and digital media
are all examples of marketing-controlled information sources. In 2016, the web
influenced more than half of all retail transactions, totaling nearly $2 trillion in sales.
The degree to which a person conducts an external search is determined by his or her
perceived risk, knowledge, prior experience, and level of interest in the good or
service. In general, as the perceived risk of a purchase rises, the consumer broadens
his or her search and considers more alternative brands. Let's say you want to buy a
surround sound system for your home entertainment system. Because the decision is
risky due to the expense and technical nature of the surround-sound system, you are
motivated to research models, prices, options, compatibility with existing
entertainment products, and capabilities. You may decide to compare the
characteristics of several speaker systems because the value of the time spent locating
the "right" stereo will be less than the cost of purchasing the incorrect system.

The extent of an external information search will also be influenced by the consumer's
knowledge of the product or service. A consumer who is well-informed and knowledgeable
about a potential purchase is less likely to seek out additional information. Furthermore, the
more knowledgeable consumers are, the more efficiently they will conduct the search
process, resulting in less time spent searching. People who lack this confidence will continue
their information search even if they are well-versed in the
marketing-controlled product. Consumers who have previously purchased a specific
information source a product product will perceive less risk than inexperienced consumers. As
information source that a result, they will spend less time searching and consider fewer
originates with marketers products. Consumers who have had a positive experience with a
promoting the product
product are more likely to limit their search to items associated
with the positive experience.
evoked set (consideration set) When a consumer is more interested in a product, he or
a group of brands resulting she will spend more time looking for information and
from an information search alternatives. When looking for a new pair of running shoes, you
from which a buyer can choose may enjoy reading about the new brands on the market and
spend more time and effort than other buyers deciding on the
best shoe.
The consumer's information search should produce a group of brands known as the buyer's
evoked set (or consideration set), which represent the consumer's most preferred
alternatives. Consumers do not consider all of the brands available in a product category, but
they do take a much smaller set seriously.
6-2c Evaluation of Alternatives and Purchase
The consumer is ready to decide after gathering information and constructing an evoked set
of alternative products. A consumer will develop a set of criteria based on information stored
in memory and obtained from outside sources. According to recent research, being exposed
to certain cues in your everyday environment can influence your decision criteria and
purchase. For example, when NASA landed the Pathfinder spacecraft on Mars, it drew
worldwide attention. Mars, the candy company, also reported an unusual increase in sales.
Although the Mars bar is named after the company's founder rather than the planet,
consumers appear to have responded to news about Mars by purchasing more Mars bars.
Picking a product attribute and then excluding all products in the set that do not have
that attribute is one way to start narrowing the number of options in the evoked set. Finally,
rank the attributes under consideration in order of importance and evaluate the products
based on how well each performs on the most important attributes. Jane and Jill may decide
that proximity to campus is the most important factor in deciding on one of the remaining
eight apartments. When presented with this option, they may decide that the $800
apartment is too expensive, given that a comparable apartment is less expensive. However,
if they add a $900 apartment to the list, they may consider the $800 apartment to be more
reasonable and decide to rent it. In other words, the evaluation is made by comparing
alternative benefits and drawbacks along with key product attributes. A categorization
process is another way for consumers to evaluate a product. The evaluation of an alternative
is determined by the category to which it is assigned. These categories are typically associated
with some level of liking or disliking. To the extent that the product can be assigned
membership in a specific category, it will be evaluated following the category's criteria.
As a result, when consumers rely on categorization, a product's evaluation is
determined by the category to which it is perceived to belong. Given this, businesses must
determine whether consumers are using categories that elicit the desired evaluations. For
example, what products come to mind when you think of the category "morning beverages"?
To the dismay of the soft drink industry, far too few consumers include sodas in this category.
One way companies use categorization to their advantage is through brand
extensions, in which a well-known and respected brand name from one product category is
extended into other product categories.
Brand extensions are a common occurrence in business. The Ultimate Fighting
Championship (UFC), for example, has built its brand through pay-per-view events, cable and
network television broadcasts, and merchandising. In Long Island, New York, the UFC opened
a 24-hour full-service gym. The UFC Gym also has standard fitness equipment, a café, and
signature classes like Hot Hula and Hi-Octane Conditioning, in addition to martial arts-themed
activities.

TO BUY OR NOT TO BUY. Finally, the consumer must decide whether or not to purchase.
Consumers must specifically decide:
1. Whether to buy
2. When to buy
3. What to buy (product type and brand)
4. Where to buy (type of retailer, specific retailer, online or in-store)
5. How to pay
 Assume Mike and Linda have recently purchased their first home and are looking to
purchase a washer and dryer. Because space is limited in their starter home, and the washer
and dryer are a relatively large purchase in their opinion, they decide to see the items in
person before deciding which to purchase. Even before they enter the store, a transmitter
mounted at the entrance recognizes Mike and Linda and sends a text message to their
smartphones welcoming them and providing personalized offers and recommendations
based on their unique histories with the store. When Mike and Linda tap on their wish list in
the store's app, they are given a store map that directs them to the appliances section as well
as a "call button" to speak with an expert. Because the store uses sophisticated tagging
technologies, the washer and dryer's information is automatically synced with other apps on
the couple's smartphones. They use the Consumer Reports app to scan reviews, then share
the appliance specs with their messaging apps and send them to their parents for advice. They
also ask Facebook friends to weigh in on the purchase and compare the retailer's prices to
others. Mike and Linda also use a virtual designer feature in the retailer's mobile app, which
allows them to preview how the washer and dryer will look in their home by entering just a
few key pieces of information. Three weeks after the appliances are delivered, the couple
receives an email from the retailer with offers for additional appliances and home-
improvement services geared toward first-time home buyers.

PLANNED VERSUS IMPULSE PURCHASE. The preceding example represents a meticulously

planned purchase based on a wealth of information. Consumers will frequently make a
partially planned purchase when they know the product category they want to buy (shirts,
pants, reading lamp, car floor mats) but wait until they get to the store or go online to select
a specific style or brand. We frequently associate impulse purchases with low-cost items
purchased at the grocery store checkout. Using in-store video cameras, researchers
discovered that when shoppers make impulse purchases, they touch and examine the item
more, stand further away from the shelf, and are less likely to consult their shopping lists,
coupons, or in-store circulars.

6-3 POSTPURCHASE BEHAVIOR

When people buy products, they expect certain things to happen. The consumer's
satisfaction or dissatisfaction with the purchase is determined by how well these expectations
are met. For example, if a person wins a bid on a used KitchenAid mixer on eBay, she may
have low expectations for its performance. If the mixer's performance is of high quality, the
person will be pleased because her expectations were exceeded. If, on the other hand, the
person bids on a new Kitchen Aid mixer expecting superior quality and performance and the
mixer breaks within one month, she will be very disappointed because her expectations were
not met. The price of a product or service frequently influences the level of expectation for
that product or service.
For the marketer, removing any lingering doubts about the decision's soundness is an
important part of any post-purchase evaluation. When people notice the inconsistency
between their values or opinions and their behavior, they experience cognitive dissonance.
In some cases, people actively seek out contradictory information to refute it and reduce
cognitive dissonance. Dissatisfied customers may use word of mouth to reduce cognitive
 dissonance by informing friends and family of their dissatisfaction.
cognitive dissonance inner
tension that a consumer
Manufacturers' post-purchase letters and dissonance-reducing
experiences after recognizing statements in instruction booklets may make customers feel more
an inconsistency between at ease with their purchase.
behavior and values or Advertising that emphasizes the product's superiority over
opinions competing brands or guarantees can also help to alleviate any
involvement the amount of
cognitive dissonance felt by someone who has already purchased
time and effort a buyer invests the product. Apple's Genius Bar and customer service will alleviate
in the search, evaluation, and cognitive dissonance for iPad buyers because they will know that
decision processes of consumer the company is there to help them. When a customer has a question
behavior or a complaint and attempts to contact the company, this is an
excellent opportunity for the company to reduce (or, if handled
poorly, increase) cognitive dissonance.
Too many businesses regard their contact centers as cost centers, with each contact
viewed as a problem to be minimized by making it as difficult as possible to speak with a
customer representative. Have you ever gone through four or five automated sequences,
pressing a series of buttons, only to be told, "We are experiencing a higher-than-normal call
volume, and you can expect a lengthy delay?" This not only causes cognitive dissonance but
can also destroy brand loyalty. According to a recent study, consumers who had positive
contact experiences were 15 times more likely to say they would buy again than those who
had negative contact experiences.

6-4 TYPES OF CONSUMER BUYING DECISIONS AND CONSUMER

INVOLVEMENT
All consumer purchasing decisions can be divided into three broad categories: routine
response behavior, limited decision making, and extensive decision making (see Exhibit 6.2).
These three categories of goods and services are best described by five factors:
 Level of consumer involvement
 Length of time to make a decision
 Cost of the good or service
 Degree of information search
 Number of alternatives considered

The level of consumer involvement is possibly the most important determinant in

categorizing purchasing decisions. These goods and services are also known as low-
involvement products because consumers spend little time searching for and deciding on
them before making a purchase. Consumers buy first and evaluate later, whereas extensive
decision-making is the opposite.
 When a consumer has previous product experience but is unfamiliar with the current
brands available, limited decision-making occurs. Because consumers expend only moderate
effort in searching for information or considering various alternatives, limited decision-
making is also associated with lower levels of involvement (though higher than routine
decisions). Before making
a final decision, the
consumer will most likely
compare several other
brands based on their
active ingredients,
promotional claims, and
previous experiences.
Con s u m e
rspractIcerspract
IcerspractIcerspr
actIcerspractIce
This is the most complex
type of consumer
purchasing decision and is
associated with a high
level of consumer
involvement. These
customers want to make
the best decision possible, so2.they want to learn everything they can about the product
category and available brands. Purchasing a home or a car, for example, necessitates
0
extensive deliberation. For example, if a frequently purchased
routine response behavior the product no longer meets their needs, they may make a limited or
type of decision making exhibited extensive decision to switch to another brand. People who use
by consumers buying frequently extensive decision-making, in the beginning, may switch to limited
purchased, low-cost goods and or routine decision-making in the future.
services; requires little search and
decision time
6-4a Factors Determining the Level of Consumer
limited decision making the type
of decision making that requires a
Involvement
moderate amount of time for
The following factors influence the level of involvement in the
gathering information and
purchase:
deliberating about an unfamiliar
brand in a familiar product  Previous experience: When customers have previous
category
experience with a product or service, their level of involvement
extensive decision making the tends to decrease. Consumers learn to make quick decisions after
most complex type of consumer repeated product trials. Consumers become less involved in the
decision making, used when buying purchase because they are familiar with the product and know
an unfamiliar, expensive product or whether it will meet their needs. A consumer purchasing cereal,
an infrequently bought item;
for example, has many brands to choose from—just look in any
requires use of several criteria for
grocery store cereal aisle. If a consumer buys the same brand
evaluating options and much time
for seeking information
every time because it satisfies his hunger, he has a low level of
 involvement. When a consumer buys a new cereal category for the first time, it is likely
to be a much more involved purchase.
 Interest: Participation is directly related to consumer interests, such as automobiles,
music, movies, bicycling, or online games. Naturally, these areas of interest differ from
person to person. A person who is heavily involved in bike racing will be more
interested in the type of bike she owns and will spend a significant amount of time
evaluating various bikes. If a person only wants a bike for fun, he may be relatively
uninvolved in the purchase. He may simply select a bike in the most convenient
location and at a reasonable price.
 Perceived risk of negative consequences: The level of involvement of a consumer
increases as the perceived risk of purchasing a product increases. Consumers are
concerned about financial risk, social risk, and psychological risk.
o Financial risk is the risk of losing one's wealth or purchasing power. Consumers
become extremely involved because the high risk is associated with high-
priced purchases. As a result, price and involvement are usually inextricably
linked: As the price rises, so do the level of participation. For example,
someone purchasing a new car for the first time (higher perceived risk) will put
in a lot of time and effort.
o Social risks occur when consumers buy products that can affect people’s social
opinions of them (for example, driving an old, beat-up car or wearing unstylish
clothes).
o Psychological risks arise when customers believe that making the wrong
decision will cause them to be concerned or anxious. Some consumers, for
example, feel guilty about eating unhealthy foods, such as regular ice cream
rather than fat-free frozen yogurt.

 Social visibility: As a product's social visibility grows, so does its involvement. Clothing
(especially designer labels), jewelry, automobiles, and furniture are common items on
display at social gatherings. All of these items make a statement about the buyer and
thus pose a social risk.
A high level of involvement indicates
that the consumer is passionate about a
product category or a specific good or service.
The product or service is relevant and
important to the buyer, and it means
something to them. High involvement can
manifest itself in a variety of ways. The
following are the most important types:
 Product involvement indicates that a
product category has a high level of
personal relevance. Product
enthusiasts are consumers who have a
strong interest in a particular product
category. There is a sizable market for
 product enthusiasts in the fashion industry. These people are interested in the most
recent fashion trends and want to dress in the most recent clothing.
 Situational involvement This means that the circumstances of purchase may
temporarily convert a low-involvement decision into a high-involvement decision.
When a consumer perceives risk in a specific situation, he or she becomes highly
involved. For example, a person may frequently purchase low-cost brands of liquor
and wine. When the boss comes to visit, the consumer may make a high-involvement
decision and purchase more prestigious brands.
 Shopping involvement represents the personal significance of the shopping process
Even if they have no intention of purchasing anything, some people enjoy the process
of shopping. Others find shopping to be a pleasurable social activity. Many consumers
also engage in showrooming, which is the practice of inspecting merchandise in a
physical retail location without purchasing it and then shopping online for a better
deal on the same item.
 Enduring involvement represents a continuing interest in a product, such as kitchen
appliances, or an activity, such as fishing. The
consumer is constantly looking for new ways to
consume the product or participate in the activity.
Enduring involvement typically provides
consumers with personal gratification as they
continue to learn about, shop for, and consume
these goods and services. As a result, there is
frequently a link between long-term involvement,
shopping, and product involvement.
 Emotional involvement represents the level of
emotion experienced by a consumer during a
specific consumption activity. Emotional
involvement is linked to enduring involvement
because the things that consumers care about will
eventually result in high emotional involvement.
Sports fans are an example of a consumer with a
high level of emotional involvement.

6-4b Marketing Implications of Involvement

The marketing strategy differs depending on the level of involvement with the
product. Marketing managers have several goals in mind when it comes to high-involvement
product purchases. First, extensive and informative promotion to the target market is
required. A good advertisement provides consumers with the information they need to make
a purchase decision and specifies the benefits and unique benefits of owning the product.
Ford, for example, sells a vehicle with numerous custom options to small business owners.
One recent print advertisement depicts how one entrepreneur customized his Ford Transit to
help improve the efficiency of his home theater and electronics installation business. Ford
emphasizes the fact that unique businesses necessitate unique and adaptable transportation.
The Transit is available in three body lengths, each with its volume and payload capacity.
There are also three different roof heights to choose from, as well as a variety of engines.
 Consumers may not recognize their desires until they are in the store for low-
involvement product purchases. As a result, when promoting low-involvement products, in-
store promotion is an important tool. Campbell's soups, Tide detergent, Velveeta cheese, and
Heinz ketchup are examples of products that take this approach. Another tactic that
marketing managers can use to increase sales or positive publicity of a relatively low-
involvement product is to link it to a higher-involvement issue. To "choose lovin'," participants
could hug family members or call their mothers and tell them they loved them.
Researchers discovered that offering products with "limited availability" is another
way to increase participation. Marketers can use a variety of
triggers to trigger limited availability, such as daily specials (such showrooming the practice of
as special soup du jour), days of the week (such as Sunday examining merchandise in a
brunch), promotional periods (such as item availability for a physical retail location without
purchasing it, and then shopping
limited time only), harvest time (such as corn in the summer), and
online for a better deal on the
small production runs (for example, limited edition items). same item
Researchers discovered that consuming such products increases
consumer enjoyment more than if the items were always
available. Cultural factors such as culture and values, subculture, and social class all have a
large influence on consumer decision-making. Social factors are the sum of a consumer's
social interactions with influential groups of people such as reference groups, opinion leaders,
and family members.
Individual factors such as gender, age, family life cycle stage, personality, self-concept,
and lifestyle are unique to each individual and play a significant role in the types of products
and services that consumers desire.
6-5 CULTURAL INFLUENCES ON CONSUMER BUYING DECISIONS
Cultural factors have the greatest and deepest influence on consumer decision-making of all
the factors that influence consumer decision-making. Marketers must comprehend how
people's culture and values, as well as their subculture and social class, influence their
purchasing behavior.

6-5a Culture and Values

Culture is defined as the set of values, norms, attitudes, and other meaningful symbols that
shape human behavior and the artifacts, or products, of that behavior as they are passed
down from generation to generation. It is a society's essential character that distinguishes it
from other cultural groups. The values, language, myths, customs, rituals, and laws that guide
people's behavior are the underlying elements of every culture.

 Culture is pervasive. Cultural values and influences are the ocean in which people
swim, and most are completely unaware of it. Culture can be defined by what people
eat, how they dress, what they think and feel, and the language they speak.
Consumers do things without thinking about it because their culture's values,
customs, and rituals are ingrained in their daily habits.
 Culture is functional. For each culture, human interaction creates values and
prescribes acceptable behavior. Culture brings order to society by establishing
common expectations. These expectations are sometimes enacted into laws. In our
culture, for example, drivers must stop at a red light. Other
times, these expectations are taken for granted: grocery culture the set of values, norms,
stores and hospitals are open 24 hours a day, whereas attitudes, and other meaningful
banks are only open during "bankers' hours," which are symbols that shape human
typically nine a.m. to five p.m. behavior and the artifacts, or
products, of that behavior as they
 Culture is learned. Consumers are not born knowing their are transmitted from one
society's values and norms. They must instead learn what generation to the next
is acceptable from family and friends. Parents, teachers,
subculture a homogeneous group
and peers teach children the values that will govern their
of people who share elements of
behavior. As members of our society, they learn to greet the overall culture as well as
others by shaking hands, to drive on the right side of the unique elements of their own
road, and to eat pizza and drink Coca-Cola. group
 Culture is dynamic. It evolves in response to changing
needs and an ever-changing environment. In today's world,
the rapid advancement of technology has accelerated the rate of cultural change. Our
culture is beginning to teach us when it is appropriate to send a text message and
when it is impolite. Assume you're on a first date with someone in a nice, romantic
restaurant, and your date is telling you about his or her favorite activities. Pulling out
your smartphone to check a text message will almost certainly result in a very short
date. Because of our need for social patterns that solve problems, cultural norms will
continue to evolve.

The most distinguishing feature of a culture is its values. Remember that "value" can refer to
an enduring belief shared by a society that one mode of behavior is personally or socially
preferable to another. People's value systems have a significant impact on their purchasing
behavior. Consumers with similar value systems tend to react similarly to price and other
marketing-related inducements. Values are also related to consumption patterns. Americans,
for example, place a high value on convenience. This value has created profitable markets for
products like breakfast bars, energy bars, and nutrition bars that allow consumers to eat on
the go. Values can also influence what consumers watch on television or read in magazines.
People who strongly oppose violence, for example, avoid crime shows, and vegetarians avoid
cooking magazines that feature a lot of meat-based recipes.

6-5b Subculture
Subcultures of a culture can be classified based on demographic characteristics, geographic
regions, national and ethnic background, political beliefs, and religious beliefs. A subculture
is a group of people who share elements of the larger culture as well as cultural elements
unique to their group. People's attitudes, values, and purchasing decisions are even more
similar within subcultures than they are within the larger culture. Subcultural differences can
cause significant variation within a culture in terms of what, how, when, and where people
purchase goods and services. Once marketers identify subcultures, they can design special
marketing to serve their needs. The United States’ growing Hispanic population has made
South and Central American subcultures a prime focus for many companies, for example.
Recall that marketing to Hispanics was discussed in Chapter 4.
Many Hispanics live in border states, whereas the majority of Chinese, Japanese, and
Korean Americans live on the West Coast. Computer hackers, the deaf and hard of hearing,
Harley-Davidson bikers, military families,
and university professors can be found all
over the country. One spouse was born
and raised in the United States, while the
other was born and raised in another
country. This frequently leads to cultural
complexities in family purchase decisions.
According to research, the partner with
the most cultural competence (knowledge
of the customs of the country of
residence) serves as the family's cultural
bridge, arbitrator, and translator. This
spouse makes up for her relative
advantage in purchasing decisions by
relinquishing control over other decisions.

6-5c Social Class

Like other societies, the United States has a social class system. A social class is a group of
people who are nearly equal in status or Community esteem, who regularly socialize formally
and informally among themselves, and who share behavioral norms. Several techniques have
been used to measure social class, and many criteria have been used to define it. One view of
contemporary U.S. status structure is shown in Exhibit 6.4.
 Exhibit 6.4 shows that the upper and upper-middle classes comprise a small segment
of affluent and wealthy Americans. In terms of consumer purchasing habits, the wealthy are
more likely to own their own homes, buy new cars and trucks, and are less likely to smoke.
Regardless of their actual income or educational attainment, the majority of Americans today
define themselves as middle-class. This phenomenon is most likely caused by the fact that
working-class Americans aspire to the middle-class lifestyle, and some of those who do
achieve some affluence call themselves middle-class as a matter
social class a group of people in a of principle.
society who are considered The middle class is divided into two parts: the working
nearly equal in status or class and the upper class. One of the most common
community esteem, who characteristics of the working class is an interest in organized
regularly socialize among labor. Lifestyle differences between social classes are greater than
themselves both formally and differences within a given class. The most significant difference
informally, and who share between classes occurs between the middle and lower classes,
behavioral norms
where lifestyles change dramatically. Lower-class members have
annual incomes that are at or below the poverty line—$11,770 for
individuals and $24,250 for families of four (as defined by the
federal government).
A person's social class is typically determined by a combination of occupation, income,
education, wealth, and other factors. Those with a college degree or a graduate degree are
more likely to be in the upper classes, while those with some college experience are closest
to traditional middle-class concepts.

Marketers are fascinated by social class for two reasons. First, social class frequently
dictates which medium is used for promotion. It could advertise the local evening news
because middle-class families watch more television than other classes. Long the domain of
more educated and affluent families, the Internet has become an increasingly important
advertising outlet for advertisers seeking to reach blue-collar workers and homemakers.
Second, knowing which products appeal to which social classes can assist marketers in
determining where their products should be distributed.

6-6 SOCIAL INFLUENCES ON CONSUMER BUYING DECISIONS

Many consumers seek out the opinions of others to reduce their search and evaluation effort
or uncertainty, particularly as the perceived risk of the decision increases. Consumers may
also seek out the opinions of others for guidance on new products or services, products with
image-related attributes, or products with insufficient or misleading attribute information. To
obtain product information and decision approval, consumers interact socially with reference
groups, opinion leaders, and family members.

6-6a Reference Groups

People interact with a wide range of reference groups. A reference group is any formal or
informal group that influences an individual's purchasing behavior. Consumers may use
products or brands to identify with or join a group. They learn by observing how members of
their reference groups consume, and they apply the same criteria to their own purchasing
decisions.
Reference groups can be broadly classified as either direct or indirect (see Exhibit 6.5).
Direct reference groups are membership organizations that have a direct impact on people's
lives.
 A primary membership group consists of all groups with whom people interact
regularly in an informal manner, such as family, friends, social media users, and
coworkers.
 People, on the other hand, are associated with a secondary membership group less
consistently and more formally. Clubs, professional organizations, and religious
organizations are examples of such organizations.
 Consumers also are influenced by many indirect, non-membership reference groups to which
they do not belong.
 An aspirational reference group is a group a person would like to join. To join an
aspirational group, a person must at least conform to the norms of that group.
 Non-aspirational reference groups, or dissociative groups, influence our behavior
when we try to maintain distance from them.
A consumer may avoid buying some types of clothing or cars, going to certain
restaurants or stores, or even buying a home in a certain neighborhood to avoid being
associated with a particular group. For middle- and upper-middle-class professionals who
take an interest in Harley-Davidson motorcycles, biker gangs serve as both an aspirational and
a non-aspirational reference group.

Reference groups have a strong influence on the clothes people wear, the cars they
drive, the electronics they use, the activities they participate in, the foods they eat, and the
luxury goods they buy. In short, reference groups' activities, values, and goals have a direct
impact on consumer behavior. Reference groups have three major implications for marketers:
1) They serve as information sources and influence perceptions;
2) they affect an individual’s aspiration levels; and
3) their norms either constrain or stimulate consumer behavior.

6-6b Opinion Leaders

Individuals are known as group leaders or opinion leaders—people who influence others—
frequently appear in reference groups and social media groups (for example, your Facebook
friends). Marketing managers must persuade such people to buy their products or services.
They are frequently the most powerful, informed, connected,
reference group all of the formal and
and vocal members of society. Teenagers have been identified
informal groups in society that as key opinion leaders for the success of new technologies by
influence an individual’s purchasing technology companies due to their willingness to experiment.
behavior Opinion leadership is a casual phenomenon that is
usually inconspicuous, making it difficult to locate opinion
primary membership group a
leaders offline. In one field, such as cooking, an opinion leader
reference group with which people
interact regularly in an informal, face- may not be an opinion leader in another, such as sports. As a
to-face manner, such as family, result, marketers frequently attempt to create opinion leaders.
friends, and coworkers On a national level, companies will occasionally use movie stars,
sports figures, and other celebrities to promote their products
secondary membership group a
in the hopes that they will be appropriate opinion leaders.
reference group with which people
associate less consistently and more
Marketers are increasingly turning to social media to
formally than a primary membership find opinion leaders, but the sheer volume of posts and
group, such as a club, professional platforms makes identifying true opinion leaders difficult.
group, or religious group People often rely on each other's opinions more than marketing
messages when making purchase decisions, thanks to their
aspirational reference group a group
that someone would like to join
unprecedented ability to network and communicate with one
another. And social media is quickly becoming a popular way for
norm a value or attitude deemed people to express themselves.
acceptable by a group
 Social media has made it easier than ever to identify opinion leaders. Klout's Perks
program has evolved from providing coupons and product
samples to assisting brands in sending out invitations to product
Non-aspirational reference group
launches, promotional events, and concerts. VIP Perks, a
a group with which an individual
program that tracks opinion leaders' mobile devices to does not want to associate
determine when they enter a store or restaurant, was recently
launched by the company. According to research, when social opinion leader an individual who
media influencers buy a new product, they tend to share it with influences the opinions of others
their social networks right away.

6-6c Family
For many consumers, the family is the most important social institution, strongly influencing
values, attitudes, self-concept, and purchasing behavior. A family that places a high value on
health, for example, will have a very different grocery list than a family that treats every meal
as a gourmet event. Furthermore, the family is in charge of socialization, or the transmission
of cultural values and norms to children. Children learn by observing their parents' purchasing
habits, so they tend to shop in similar ways.
The decision-making roles of family members vary greatly depending on the type of
item purchased. Family members play many roles in the purchasing process. Any member of
the family can be the initiator. Influencers are family members whose opinions are valued.
The decision-maker is the family member who decides whether or not to buy. Dad or Mom,
for example, is likely to select the final brand and model of bicycle to purchase after seeking
additional information from Sister about cosmetic features such as color and then imposing
additional criteria of his or her own, such as durability and safety.
Marketers should take into account family purchase situations, as well as the
distribution of consumer and decision-making roles among family members. Family
marketing introduces several new possibilities: sometimes more than one family member or
all family members are involved in the decision, sometimes only children are involved,
sometimes more than one consumer is involved, and sometimes the decision-maker and the
consumer are different people. This has the effect of reducing family conflict.

6-6d Individual Differences in Susceptibility to Social Influences

Although social influence is important in consumer behavior, not all people are equally
influenced in their purchasing decisions. Some people have a strong desire to improve the
image of themselves that others have of them by purchasing products used by other members
of their reference groups. Seeking approval from others by owning the "correct" product is
very important to these customers. This is especially true for conspicuous items (those that
are visible to others), such as clothing, jewelry, automobiles, and even mobile devices. These
people have a strong desire to avoid making a bad impression in public. Wearing the wrong
bathing suit to the university swimming pool, for example, would be extremely upsetting to
this type of customer.
Consumers' feelings of connectedness to other consumers
socialization process how vary. A consumer with a separated self-schema sees himself
cultural values and norms are as distinct and distinct from others. A person with a
passed down to children connected self-schema sees himself as an important
member of a group. According to research, people who feel
connected are more likely to respond positively to advertisements that promote group
belonging and cohesion. Other people's influence on how a consumer behaves is greatest
when the consumer is aware or believes she is being watched. This has been discovered by
researchers to be especially true when people consume or purchase personal products. Some
people will not purchase athletic club memberships because they do not want to work out
with (or even near) a group of people. They are concerned about how they will appear to
others.

6-7 INDIVIDUAL INFLUENCES ON CONSUMER BUYING DECISIONS

While a person's individuality influences their susceptibility to social influences, other factors
such as gender, age, life cycle stage, personality, self-concept, and lifestyle all play important
roles in consumer decision making. Individual characteristics are generally stable throughout
a person's life. Most people, for example, do not change their gender, and changing one's
personality or lifestyle necessitates a complete reorientation of one's life. These changes
occur gradually over time in the case of age and life cycle stage.

6-7a Gender
The physiological differences between men and women result in a wide range of
needs, including those for health and beauty products. Equally important are men's and
women's distinct cultural, social, and economic roles, and the effects these have on their
decision-making processes. According to a recent survey, 52 percent of women have
purchased a product based on a marketer's portrayal of women. Messages and videos for
companies like Nike, Always, and Under Armour were viewed favorably. Advertising Age
named the Dove "RealBeauty" campaign the best advertisement of the twenty-first century.
Under Armour's "I Will What I Want" ad did well as well
because it depicted women rejecting the idea of perfection separated self-schema a
and simply embracing themselves (see an example at perspective whereby a consumer
www.youtube.com/watch?v=ZY0cdXr 1MA). sees himself or herself as distinct
Gender marketing trends are influenced by the shifting and separate from others
roles of men and women in society. Men, for example, used to connected self-schema a
rely on the women in their lives to do their shopping for them. perspective whereby a consumer
More than 70% of men shop online, and approximately 48% sees himself or herself as an
shop on mobile devices. Men are price-sensitive, and they integral part of a group
prefer to scan QR codes rather than type in URLs to access
promotional materials, coupons, and product information.

6-7b Age and Family Life Cycle Stage

The age of a consumer and the stage of his or her family life cycle can have a significant impact
on his or her behavior. In general, a consumer's age indicates what products he or she is likely
to be interested in purchasing. Consumer preferences in food, clothing, automobiles,
furniture, and recreation are frequently age-related.
Marketers frequently define target markets based on the family life cycle, such as
"young singles," "young married couples with children," and "middle-aged married couples
without children." Young singles, for example, spend more than the average amount on
alcoholic beverages, education, and entertainment. New parents typically spend more on
health care, clothing, housing, and food while spending less on alcohol, education, and
transportation. Households with older children spend more money on food, entertainment,
personal care products, education, and automobiles, and gasoline. After their children leave
home, older couples typically increase their spending on vehicles, women's clothing, and
health care. Parents are the ultimate need-driven car buyers, necessitating larger vehicles and
trucks to transport their children and all of their belongings.
NONTRADITIONAL LIFE CYCLES. Marketers should also be aware of the many nontraditional
life cycle paths that exist today and provide insights into the needs and desires of consumers
such as divorced parents, lifelong singles, and childless couples. Married couples with children
under the age of 18 accounted for roughly half of all households in the United States three
decades ago. Today, such families account for only 23% of all households, while people living
alone or with nonfamily members account for more than 30%. Furthermore, the number of
single-mother households in the United States has increased by 25% in the last decade,
according to the U.S. Census Bureau. The increase in single-parent households is part of a
larger societal shift that has put more women on the path to success.

SINGLE PARENTS. Careers frequently result in

a lack of time for single parents. To balance the
demands of a career and raising children, single
parents are constantly on the lookout for time-
saving products such as quick-preparation
foods and no-iron clothing. To be sure, an
increasing number of marketers are catering to
the single-parent market. eTargetMedia owns
a database of over 9,500,000 active single
parents, which it rents out for e-mail and postal
advertising campaigns. According to the
company, the list is ideal for educational,
childcare, insurance, photo sharing, parenting
magazines and books, camps, and children's recreation offers.

LIFE EVENTS. Another way to consider the life cycle is to consider major events in one's life
over time. Death of a spouse, relocation, the birth or adoption of a child, retirement, job loss,
divorce, and marriage are a few examples. Life-changing events frequently result in news
consumption patterns. Moving to a new city necessitates finding a new dentist, grocery store,
auto service center, and doctor, among other things. Marketers understand that life events
frequently represent an opportunity to gain a new customer. When you put your house on
the market, you'll start getting flyers from moving companies promising you a great deal on
moving your belongings.

6-7c Personality, Self-Concept, and Lifestyle

Each customer has a distinct personality. Personality is a broad concept that can be thought
of as a method of organizing and categorizing how an individual typically reacts to situations.
Thus, personality is a synthesis of psychological characteristics and environmental factors. It
encompasses people's underlying dispositions, particularly their most dominant traits.
Although personality is one of the least useful concepts in the study of consumer behavior,
some marketers believe it influences the types and brands of products purchased. A
consumer's choice of car, clothing, or jewelry, for example, may reflect one or more
personality traits.
Consumers perceive themselves through their self-concept, also known as self-
perception. Although self-concept can change, it is often gradual. People define their
identities through self-concept, which allows for consistent and coherent behavior. The ideal
self-image (how individual wishes to be perceived) and the real self-image are combined in
self-concept (how an individual perceives himself or herself).
To combat declining sales, Nissan Quest minivan marketers decided to reposition the
vehicle as something other than a "mom mobile" or "soccer mom car." They went with the
ad copy "Passion built it." "Passion will fill it up," he says, before adding, "What if we made a
minivan that changed the way people think about minivans?"
Marketers can influence consumers' motivation to learn about, shop for, and buy a
specific brand by influencing the degree to which they
perceive a good or service to be self-relevant. Marketers personality a way of organizing and
grouping the consistencies of an
value self-concept because it helps explain the relationship
individual’s reactions to situations
between people's perceptions of themselves and their
purchasing behavior. For many years, marketers selling self-concept how consumers
products to mothers assumed that all mothers were fairly perceive themselves in terms of
homogeneous and concerned about the same things—their attitudes, perceptions, beliefs, and
self-evaluations
children's health and well-being—and that they could all be
reached with a similar message. However, recent lifestyle ideal self-image the way an
research has revealed that there are traditional, blended, individual would like to be perceived
and nontraditional moms, and companies such as Procter &
real self-image the way an individual
Gamble and Pillsbury are developing strategies to reach actually perceives himself or herself
these various types of mothers. Other market segments
benefit from psychographics as well.

6-8 PSYCHOLOGICAL INFLUENCES ON CONSUMER BUYING

DECISIONS
Psychological factors such as perception, motivation, and learning all have an impact on a
person's purchasing decisions. These are the factors that consumers use to interact with their
surroundings. They are the tools that consumers use to identify their emotions, gather and
analyze information, form thoughts and opinions, and take action. Psychological influences,
unlike the other three influences on consumer behavior, can be influenced by a person's
environment because they are applied on specific occasions. For example, depending on
whether you are sitting in class concentrating on the instructor, sitting outside of class talking
to friends, or sitting in your dorm room streaming a video, you will perceive and process
different stimuli.
 6-8a Perception
The world is teeming with stimuli. A stimulus is defined as any unit of input that affects one
or more of the five senses: sight, smell, taste, touch, and hearing. Perception is the process
by which we select, organize, and interpret these stimuli into a
meaningful and coherent picture. Perception is, in essence, how we personality a way of organizing and
perceive the world around us. We make decisions based on grouping the consistencies of an
perceptions that may or may not be accurate. Assume you're individual’s reactions to situations
driving to the grocery store when you notice a house with smoke self-concept how consumers
pouring from the roof. Because you believe the house is on fire, you perceive themselves in terms of
quickly come to a halt to warn any occupants and dial 911. You can attitudes, perceptions, beliefs, and
hear laughter coming from the backyard as you approach the self-evaluations
house. When you look around the corner, you see a family burning
ideal self-image the way an
a large pile of leaves, and the smoke is blowing over the roof. There individual would like to be perceived
is no fire in the house. When you arrive at the grocery store, you
notice a large, beautiful ripe pineapple and immediately place it in real self-image the way an individual
your cart. When you get home, you cut into the pineapple, only to actually perceives himself or herself
discover that it has a rotten core and is, therefore, unfit to eat. In
both cases, you acted based on perceptions that were not accurate.
As a result, they employ selective exposure to determine which stimuli to pay
attention to and which to ignore. Selective distortion and selective retention are two other
concepts that are closely related to selective exposure. When consumers change or distort
information that contradicts their feelings or beliefs, this is referred to as selective distortion.
If the student receives new information about an alternative brand, such as an Asus
Transformer, after the purchase, he or she may distort the information to make it more
consistent with the prior view that the Dell is just as good as, if not better than, the
Transformer. Executive Platinum frequent flyers on American Airlines may distort or dismiss
information about the quality of United Airlines' business class service. "Yes, the service is OK,
but the seats are uncomfortable, and the planes are always late," a frequent flyer may think
to herself.
Selective retention refers to remembering only
perception the process by which
information that reinforces one's feelings or beliefs. All
people select, organize, and interpret potentially contradictory information is forgotten by the
stimuli into a meaningful and consumer. Many of the points made in a pamphlet that
coherent picture contradicts one's political beliefs, for example, maybe
forgotten after reading it. Similarly, consumers may see a
selective exposure a process whereby
news report about their favorite retail store's suspected
a consumer notices certain stimuli and
ignores others illegal practices but quickly forget why the store was featured
in the news. Two people watching a television commercial,
selective distortion a process for example, may have different interpretations of the
whereby a consumer changes or advertising message. One person may become completely
distorts information that conflicts with
engrossed by the message and become extremely motivated
his or her feelings or beliefs
to purchase the product. The second person may be unable
selective retention a process to recall the content of the message or even the product
whereby a consumer remembers only advertised thirty seconds after the ad ends.
that information that supports his or
her personal beliefs
MARKETING IMPLICATIONS OF PERCEPTION
Marketers must understand the significance of cues, or signals, in consumer perception of
products. Marketing managers first identify the important attributes that targeted consumers
want in a product, such as a price or quality, and then design signals to communicate these
attributes. Consumers, for example, will pay more for candy in expensive-looking foil
packages. Shiny labels on wine bottles, on the other hand, indicate lower-priced wines, while
dull labels indicate higher-priced wines. Price is also frequently used by marketers to signal to
consumers that a product is of higher quality than competing products. Brand names, of
course, send signals to customers. Close-Up toothpaste, DieHard batteries, and Caress
moisturizing soap, for example, have brand names that identify important product qualities.
The names chosen for search engines and Internet sites, such as Yahoo!, Amazon, and Bing,
are meant to convey excitement, intensity, and vastness.
Consumers also associate certain brand names with quality and dependability.
Google, Disney, National Geographic, Mercedes-Benz, and Fisher-Price are examples of
brands that consistently have a high perceived value among consumers. Naming a product
after a location can also increase perceived value through association. Brand names that
include the words Santa Fe, Dakota, or Texas convey a sense of openness, freedom, and
youth, whereas products named after other locations may evoke images of pollution and
crime. This is referred to as the "just-noticeable difference" concept. For example, how much
would Apple have to reduce the price of its 15-inch MacBook Pro with Retina display before
consumers considered it a steal—$100? How many
new services must Target add before customers
perceive it to be a full-service department store?
How many sporty features will General Motors
have to add to a basic two-door sedan before it is
perceived as a sports car by consumers?
Marketing executives who want to do
business in international markets should be aware
of how foreign consumers perceive their products.

6-8b Motivation
Marketers can analyze the major forces influencing
consumers to buy or not buy products by studying
motivation. When you buy a product, you usually
do so to meet a need. When these needs are
sufficiently aroused, they become motives. For
example, suppose you were so hungry before class
this morning that you needed to eat something.
You went to Subway for a breakfast sandwich in
response to that need. In other words, you stopped
at Subway because you were hungry. A motive is a driving force that drives a person to act to
meet specific needs.
 motive a driving force that causes a
Why are people motivated by specific needs at specific person to take action to satisfy
times? Maslow's hierarchy of needs, depicted in Exhibit 6.6, is a specific needs
popular theory that arranges needs in ascending order of
importance: physiological, safety, social, esteem, and self- Maslow’s hierarchy of needs a
method of classifying human needs
actualization. As one need is met, a higher-level need becomes
and motivations into five categories
more important. The most basic human needs, namely those for in ascending order of importance:
food, water, and shelter, are physiological. These needs must be physiological, safety, social, esteem,
met first because they are critical to survival. Advertisements and self-actualization
depicting a juicy hamburger or a runner guzzling Gatorade after a
marathon are examples of appeals to the physiological needs of
hunger and thirst. Security and freedom from pain and discomfort are two aspects of safety.
After physiological and safety needs are met, social needs, particularly love and a
sense of belonging, take precedence. Acceptance by one's peers, as well as sex and romantic
love, are all examples of love. Marketing managers are likely to appeal to this need more than
any other. Self-respect and a sense of accomplishment are important components of self-
esteem. Esteem also necessitates prestige, fame, and recognition for one's accomplishments.
Montblanc pens, Mercedes-Benz automobiles, and Neiman Marcus department stores all
cater to esteem needs. Self-actualization is the most important human need. Nonetheless,
advertisements may target this type of need.

6-8c Learning
Almost all consumer behavior is the result of learning, which is the process of changing one's
behavior through experience and practice. Although we cannot directly observe learning, we
can infer when it has occurred based on a person's actions. Assume you come across an
advertisement for a new and improved cold medicine.
There are two kinds of learning: experiential learning and conceptual learning. When
you change your behavior as a result of an experience, this is referred to as experiential
learning. For example, if the new cold medicine does not relieve your symptoms, you may
avoid purchasing that brand in the future. The second type of learning is conceptual learning,
which is acquired through reasoning rather than direct experience. You already knew you
didn't like this new diet drink before you tried it. If you see a vendor selling frozen yogurt
(stimulus), buy it (response), and find the yogurt to be quite refreshing (reward), you have
positively reinforced your behavior. However, if you purchase
a new flavor of yogurt and it does not taste good (negative
learning a process that creates
reinforcement), you will not purchase that flavor of yogurt
changes in behavior, immediate
or expected, through experience
again (response). As a result, if a new brand elicits neutral
and practice feelings, some marketing activity, such as a price change or
increased promotion, may be required to encourage further
stimulus generalization a form of consumption. Learning theory can assist marketers in
learning that occurs when one
remembering that concrete and timely strategies are what
response is extended to a second
reinforce desired consumer behavior. Most marketers employ
stimulus similar to the first
repetitive advertising for consumers to understand what their
distinct advantage over the competition is.
 In general, advertising messages should be spread out over time rather than clustered
together to increase learning. Stimulus generalization is a related learning concept that
marketing managers can use. In theory, stimulus generalization occurs when one response is
extended to a similar second stimulus. Marketers frequently use a successful, well-known
brand name for a family of products because it familiarizes and educates consumers about
each product in the family. Such brand-name families encourage
the introduction of new products while also facilitating the sale of
stimulus discrimination a
existing items. Such imitation conveys the impression that the store learned ability to differentiate
brand is as good as the brand of the national manufacturer. The among similar products
inverse of stimulus generalization is stimulus discrimination, which
is the ability to distinguish between similar products.

For your activities & assessment for this module kindly refer
to Moodle.

REFERENCES

BOOKS

Principles of Marketing
Charles W. Lamb, Joseph F. Hair, Jr., Carl McDaniel

Principles of Marketing. Sixteenth Edition

Philip Kotler & Gary Armstrong

Marketing: An Introduction
Gary Armstrong, Philip Kotler, Valerie Trifts, & Lilly Anne Buchwitz