Copia de Consumer Behavior reducidoFINAL

Consumer Behavior Workbook 1
Instituto Politecnico
Nacional
Escuela superior de
comercio y administración
Unidad Tepepan
Consumer
Behavior
Compiled by:
• Teacher: Silvia Elena Osuna Urrea

• Student: Norma Angélica Pérez Pérez
• Student: José Roberto Cancino Magaña
Reviewed by:
• Jefe del departamento de Licenciado en Relaciones Comerciales: M en C
Eduardo Ponce García
Contenido
UNIT I. INTRODUCTION TO THE CONSUMER BEHAVIOUR ...............................
5 Class 1: What is Consumer
Behaviour?.................................................................... 5
Building Customer Value, Satisfaction and Loyalty .........................................................................5

Evaluation 1:.....................................................................................................................................6
Class 2 Customer Perceived Value ...........................................................................
8
Market segmentation: to whom are we marketing?.......................................................................9

Evaluation 2....................................................................................................................................13
Class 3 Relationship marketing: building bonds with consumers ...........................
15
Evaluation
3....................................................................................................................................16 UNIT II.
SOCIO-CULTURAL FACTORS OF THE CONSUMER BEHAVIOR ........ 17
Class 4 What influences consumer behavior? ........................................................ 17
Cultural Factors..............................................................................................................................17
Evaluation 4....................................................................................................................................18
Class 5 Social Factors..............................................................................................
19
Cultural Factors..............................................................................................................................19
Family .............................................................................................................................................20
Evaluation 5....................................................................................................................................21
Class 6 Roles and Statuses.....................................................................................
22
Personal Factors.............................................................................................................................22
Evaluation 6....................................................................................................................................24
UNIT III PSYCHOLOGICAL FACTORS OF THE CONSUMER BEHAVIOR .........
25
Class 7 Personality theories..................................................................................... 25
Evaluation
7....................................................................................................................................25 Class 8
Motivation .................................................................................................... 26
Perception......................................................................................................................................26
Evaluation 8....................................................................................................................................28
Class 9 Sensory systems.........................................................................................
29
Evaluation 9....................................................................................................................................30

Class 10 Sensory thresholds ................................................................................... 31
Evaluation
10..................................................................................................................................32 Class 11
Perceptual selection.................................................................................. 33
Evaluation
11..................................................................................................................................34 Class 12
Behavioral learning theories ..................................................................... 35
The role of learning in memory .....................................................................................................36

Evaluation 12..................................................................................................................................38
Class 13 Attitudes.....................................................................................................
39
Evaluation
13..................................................................................................................................40 Class 14
Attitude models.......................................................................................... 41
Evaluation
14..................................................................................................................................42 UNIT IV.
THE CONSUMER AND MARKETING ..................................................... 43
Class 15 Bases for Segmenting Consumer Markets .............................................. 43
Geographic Segmentation .............................................................................................................43

Demographic Segmentation ..........................................................................................................43
Psychographic Segmentation.........................................................................................................45
Evaluation 15..................................................................................................................................45
Class 16 Behavioral Segmentation..........................................................................
47
Behavioral variables.......................................................................................................................47
The conversion model....................................................................................................................48
Evaluation 16..................................................................................................................................49
BIBLIOGRAPHY.......................................................................................................
51

UNIT I. INTRODUCTION TO THE CONSUMER BEHAVIOUR
Class 1: What is Consumer Behaviour?

How many times throughout the day do people make product decisions? If you stop to think about
it, many product decisions are made every day, some without much thought. What should I wear?
What should I eat? What am I going to do today? Many product decisions are answered routinely
every day and they help move the economy of cities, countries and ultimately the world.
To define consumer behavior: it is the study of consumers and the processes they use to choose,
use (consume), and dispose of products and services. A more in depth definition will also include
how that process impacts the world. Consumer behavior incorporates ideas from several sciences
including psychology, biology, chemistry and economics.
Consumer buyer behaviour is considered to be an inseparable part of marketing and Kotler and
Keller (2011) state that consumer buying behaviour is the study of the ways of buying and
disposing of goods, services, ideas or experiences by the individuals, groups and organizations in
order to satisfy their needs and wants.
Buyer behaviour has been defined as “a process, which through inputs and their use though
process and actions leads to satisfaction of needs and wants”. Consumer buying behaviour has
numerous factors as a part of it which are believed to have some level of effect on the purchasing
decisions of the customers.
Alternatively, consumer buying behaviour “refers to the buying behaviour of final consumers, both
individuals and households, who buy goods and services for personal consumption” (Kumar, 2010,
p.218). From marketers’ point of view issues specific aspects of consumer behaviour that need to
be studied include the reasons behind consumers making purchases, specific factors influencing
the patterns of consumer purchases, analysis of changing factors within the society and others.
Building Customer Value, Satisfaction and Loyalty

Creating loyal customers is at the heart of every business. Managers who believe the customer is
the company’s only true “profit center” consider the traditional organization chart in a pyramid
with the president at the top, management in the middle, and frontline people and customers at
the bottom.
Successful marketing companies invert the chart. At the top are customers; next in importance are
frontline people who meet serve, and satisfy customers; under them are the middle managers,
whose job is to support the frontline people so they can serve customers well; and at the base is
top management, whose job is to hire and support good middle managers. We have added

customers along the sides of the pyramid to indicate that managers at every level must be
personally involved in knowing, meeting and serving customers.
Some companies have been founded with the customer-on-top business model, and customer
advocacy has been their strategy – and competitive advantage – all along. With the rise of digital
technologies such as the internet, today’s increasingly informed consumers expect companies to
do more than connect with them, more than satisfy them, and even more than delight them. They
expect companies to listen to them. When CompUSA permitted customer reviews on its site –
which can then show up in online searches – I found that 20,000 more customers than before
visited the site in a month, with a 50% greater propensity to buy. When Ebates, an online shopping
portal that offers members cash back for shopping on the Web, switched to online survey software
to better monitor customer responses, the site redesign and other changes that resulted from
customer feedback brought increases in virtually all aspects of business performance, including
sales.
Vocabulary Meaning
Consumer A person who buys and uses goods or services; a person whose needs
are satisfied by producers.
Behavior The manner in which one acts.
Top management The highest ranking executives.
Middle management Comprises of managers who head specific departments.
Frontline people The first or second level managers directly responsible for production
of goods and services, and supervision of clerical staff and shop floor
employees.
Customer Value The difference between what a customer gets from a product, and
what he or she has to give in order to get it.
Brand Loyalty Is where an individual buys products from the same

manufacturer repeatedly rather than from other suppliers
Evaluation 1:
Answer the following questions:
1) Explain what Consumer Behavior is _________________________________________________
________________________________________________________________________________
2) Why do successful marketing companies place the customers at the top in the pyramid?

________________________________________________________________________________
Complete the Traditional and the modern organization chart
Top _______________ Frontline people

management _____________
_______________
_____________ Customers
Top
managemen t
Class 2: Customer Perceived Value
Consumers are more educated and informed than ever, and they have the tools to verify
companies’ claims and seek out superior alternatives.
How then do customers ultimately make choices? They tend to be value maximizers, within the
bounds of search costs and limited knowledge, mobility and income. Customers estimate which
offer will deliver the most perceived value and act on it. Whether the offer lives up to expectation
affects customer satisfaction and the probability that the customer will purchase the product
again.
Customer – perceived value (CPV) is the difference between the prospective customer’s evaluation
of all the benefits and all the costs of an offering and the perceived alternatives. Total customer
benefit is the perceived monetary value of the bundle of economic, functional, and psychological
benefits customers expect from a given market offering because of the products, services,
personnel, and image involved. Total customer cost is the perceived bundle of costs customers
expect to incur in evaluating obtaining, using, and disposing of the given market offering, including
monetary, time, energy, and psychological costs.
Customer – perceived value is thus based on the difference between what the customer gets and
what he or she gives for different possible choices. The customer gets benefits and assumes costs.
The marketer can increase the value of the customer offering by some combination of raising
economic, functional, or emotional benefits and/or reducing one or more of the various types of
costs. The customer choosing between two value offerings, V1 and V2, will examine the ratio
V1:V2 and favor V1 if the ratio is larger than one, favor V2 if the ratio is smaller than one, and be
indifferent if the ratio equals one.
Vocabulary Meaning
Market offering The product or service that is sold into the marketplace
Purchase To buy something; something bought
Marketer Someone who works in marketing
Costs The expenses involved in doing or making something
Income All the money received by a person or company during a given period

Market segmentation: to whom are we marketing?
Many segmentation variables form the basis for slicing up a larger market, and a great deal of this
book is devoted to exploring the ways marketers describe and characterize different segments.
The segmentation variables listed in Table 1.1 are grouped into four categories, which also indicate
where in the book these categories are considered in more depth.
Category Variables
Demographics • Age
Gender
• Social class, occupation, income
• Ethnic group, religion
• Stage in life
• Purchaser vs. user
Geographic • Region
• Country differences
Psychographic • Self-concept, personality

• Lifestyle
Behavioural • Brand loyalty, extent of usage

• Usage situation
• Benefits desired
While consumers can be described in many ways, the segmentation process is valid only when the
following criteria are met:
● Consumers within the segment are similar to one another in terms of product needs, and these
needs are different from consumers in other segments.
● Important differences among segments can be identified.
● The segment is large enough to be profitable.
● Consumers in the segment can be reached by an appropriate marketing mix.
● The consumers in the segment will respond in the desired way to the marketing mix designed
for them.
Demographics

Are statistics that measure observable aspects of a population, such as birth rate, age distribution
or income. The national statistical agencies of European countries and pan-European agencies
such as EuroStat15 are major sources of demographic data on families, but many private firms
gather additional data on specific population groups. The changes and trends revealed in
demographic studies are of great interest to marketers, because the data can be used to locate
and predict the size of markets for many products, ranging from mortgages to baby food. We’ll
also consider other important characteristics that are not so easy to measure, such as
psychographics – differences in consumers’ personalities and tastes which can’t be measured
objectively. For now, let’s summarize a few of the most important demographic dimensions, each
of which will be developed in more detail in later chapters. However, a word of caution is needed
here. The last couple of decades have witnessed the growth of new consumer segments that are
less dependent on demographics and more likely to borrow behavioural patterns and fashions
across what were formerly more significant borders or barriers. It is now not so uncommon to see
men and women, or grandmothers and granddaughters, having similar tastes. Hence, useful as
they might be, marketers should beware of using only demographic variables to predict consumer
tastes.
Age.
Consumers in different age groups have very different needs and wants, and a better
understanding of the ageing process of European consumers will continue to be of great
importance to marketers as well as public policy decision-makers. While people who belong to the
same age group differ in many other ways, they do tend to share a set of values and common
cultural experiences that they carry throughout life. Marie Claire, the French magazine that is
published in 25 editions and 14 languages, has noticed that its circulation and readership has fallen
in past years, due primarily to not keeping pace with its younger readers and their reading habits.
In the past, article length was typically nine to ten pages, and what is now desired is two to five
pages. Rather than concentrating on serious articles on contemporary women’s issues, the newer
and younger readership is looking for something more fun and entertaining. Finding the balance of
‘fun’ (e.g. ‘Four Celebs secrets to fabulous legs’) and ‘serious’ (e.g. ‘The role of the veil in Islamic
dress’) has been the challenge in bridging women readers of different age groups.
Gender
Many products, from fragrances to footwear, are targeted at men or women. Differentiating by
sex starts at a very early age – even nappies are sold in pink-trimmed versions for girls and blue for
boys. As proof that consumers take these differences seriously, market research has revealed that
many parents refuse to put baby boys in pink nappies!
One dimension that makes segmenting by gender so interesting is that the behaviours and tastes
of men and women are constantly evolving. In the past most marketers assumed that men were
the primary decision-makers for car purchases, but this perspective is changing with the times.

Sometimes, the gender segmentation can be an unintended product of an advertising strategy.
Wranglers launched a European campaign featuring macho Wild West values such as rodeo riding,
after an earlier campaign, featuring a supermodel, had made their sales of jeans to women grow
400 per cent but put men off their brand.
Websites for women marketing opportunity

Segmenting by gender is alive and well in cyberspace. In France, for example, a group of women
started the country’s first women’s electronic magazine and web portal called Newsfam.com. These
entrepreneurs are hoping to reproduce the success of American sites like iVillage.com and
Women.com. To underscore the idea that men and women differ in their tastes and preferences
(the French would say vive la différence!), a website for high-tech products called Hifi.com opened a
sister site just for women called herhifi.com. It avoids jargon, offers friendly advice and finds ways to
make home entertainment systems relevant to women. Probably a sound strategy, considering that
six out of every ten new internet users are female.
Family structure
A person’s family and marital status is yet another important demographic variable, since this has
such a big effect on consumers’ spending priorities. Young bachelors and newly-weds are the most
likely to take exercise, go to wine bars and pubs, concerts and the cinema and to consume alcohol.
Families with young children are big purchasers of health foods and fruit juices, while single
parent households and those with older children buy more junk food. Home maintenance services
are most likely to be used by older couples and bachelors.
Social class and income
People in the same social class are approximately equal in terms of their incomes and social status.
They work in roughly similar occupations and tend to have similar tastes in music, clothing and so
on. They also tend to socialize with one another and share many ideas and values. The distribution
of wealth is of great interest to marketers, since it determines which groups have the greatest
buying power and market potential.

Race and ethnicity
Immigrants from various countries in Africa and Asia are among the fastest-growing ethnic groups
in Europe. As our societies grow increasingly multicultural, new opportunities develop to deliver
specialized products to racial and ethnic groups, and to introduce other groups to these offerings.
Sometimes, this adaptation is a matter of putting an existing product or service into a different
context. For example, in Great Britain there is a motorway service station and cafeteria targeted at
the Muslim population. It has prayer facilities, no pork menus and serves halal meat. And now,
Turks in Berlin do not have to rely solely on the small immigrants’ greengroceries and kiosks
known from so many other European cities. A Turkish chain has opened the first department store
in Berlin, carrying Turkish and Middle Eastern goods only, catering to both the large Turkish
population as well as to other immigrant groups and Germans longing for culinary holiday
memories.
Geography
In Europe, most of the evidence points to the fact that cultural differences persist in playing a
decisive role in forming our consumption patterns and our unique expressions of consumption. At
the same time, global competition tends to have a homogenizing effect in some markets such as
music, sports, clothing and entertainment, and multinational companies such as Sony, Pepsi,
Nintendo, Nike and Levi Strauss continue to dominate or play important roles in shaping markets.
With the creation of the single European market, many companies have begun to consider even
more the possibilities of standardized marketing across national boundaries in Europe. The
increasing similarity of the brands and products available in Europe does not mean that the
consumers are the same, however! Variables such as personal motivation, cultural context, family
relation patterns and rhythms of everyday life, all vary substantially from country to country and
from region to region. And consumption of various product categories is still very different: in
1995 the per capita consumption of cheese per annum was 16.9 kg in France and 6.1 kg in Ireland;
consumption of potatoes was 13.8 kg in Italy and 59.9 kg in Finland. In marketing research, the
possibility of operating with standard criteria for something as ‘simple’ as demographics for
market segmentation is constantly under discussion. But to date the results have not always been
encouraging.
To sum up, a European segmentation must be able to take into consideration:
● Consumption which is common across cultures (the global or regional, trends, lifestyles and
cultural patterns that cross borders); and
● Consumption which is specific between different cultural groups (differences in values, lifestyles,
behavioral patterns, etc. among different cultures and subcultures).
Even then, the problem of specifying the relevant borders arises. Cultural borders do not always
follow national borders. Although national borders are still very important for distinguishing

between cultures, there may be important regional differences within a country, as well as cultural
overlap between two countries. Add to this immigration and the import of foreign (often
American) cultural phenomena, and you begin to understand why it is very difficult to talk about
European countries as being culturally homogeneous. For example, it is important to distinguish
between, say, Dutch society with all its multicultural traits and Dutch culture, which may be one,
albeit dominant, cultural element in Dutch society. Furthermore, Dutch culture (as is the case with
all cultures) is not a static but a dynamic phenomenon, which changes over time and from contact,
interaction and integration with other cultures.
Vocabulary Meaning
Market segment Part of a market; a group of costumers with specifics needs,

defined in terms of geography, age, sex, in come…
Marketing mix The set of all the various elements in a marketing program, and
the way a company integrates them.
Achievement Something successfully accomplished or performed.
Hierarchically Any system of persons or things ranked one above another.

Consumer profile A description of the characteristics of the consumers of a
particular product, in terms of age, class, in come, etc…
Evaluation 2
1. Name some aspects that contribute to form the CPV.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
2. Write the variables for each market segmentation category
Category Variables
Behavioural

Geographics
Demographics
Psychographic

Class 3: Relationship marketing: building bonds with consumers
Marketers are carefully defining customer segments and listening to people as never before. Many
of them have realized that the key to success is building lifetime relationships between brands and
customers. Marketers who believe in this philosophy – so called relationship marketing – are
making an effort to keep in touch with their customers on a regular basis, and are giving them
reasons to maintain a bond with the company over time. Various types of membership of retail
outlets, petrol companies and co-operative movements illustrate this. One co-operative chain
offers reductions to its members on such diverse goods as travelling, clothing, home appliances,
electronics and garden furniture. A new trend is to form consortia of diverse companies from
different sectors, such as supermarkets, banks, petrol retailers, telecommunications and the
entertainment and leisure industry. The consortium then issues a loyalty card to help.
Secure a stable clientele. Some companies establish these ties by offering services that are
appreciated by their customers. Many companies donate a small percentage of the purchase price
to a charity such as the Red Cross or the World Wildlife Fund, or for the care of the poor and
marginalized in society. This cements the relationship by giving customers an additional reason to
continue buying the company’s products year after year. Another revolution in relationship
building is being brought to us by courtesy of database marketing. This involves tracking
consumers’ buying habits by compute and crafting products and information tailored precisely to
people’s wants and needs. Keeping close tabs on their customers allows database marketers to
monitor their preferences and communicate with those who show an interest in their products or
services. Information is passed to the appropriate division for follow-up. DVD online rental
companies such as Screen Select in the UK and Web.DE in Germany are testing a system that
makes recommendations based on a consumer’s prior rentals and offers special promotions based
on these choices. However, some consumers feel threatened by this kind of surveillance and resist
such marketing efforts. Hence, attempts have been made to ensure that database marketing
conforms to the requirements of respondent confidentiality.
Vocabulary Meaning
Co-operative chain Working or acting together willingly for a common purpose or benefit.
Database marketing A systematic approach to the gathering, consolidation, and processing

of consumer data (both for customers and potential customers) that
is maintained in a company's databases.
Trend A tendency or direction (in some aspect of human behaviour)
Brands A product that is distinguished from those of competitors by a name,

sign, symbol, design etc.

Evaluation 3
1. Match the columns. Write the letter inside the parenthesis.
1. ( ) Commerce a) A systematic approach to the gathering, consolidation, and
processing of consumer data (both for customers and
potential customers) that is maintained in a company's
databases.
2. ( ) Client b) The set of all the various elements in a marketing program,

and the way a company integrates them.
3. ( ) Trend c) Something successfully accomplished or performed
4. ( ) Marketing d) To buy something; something bought.
5. ( ) Brands e) All the money received by a person or company during a

given period.
6. ( ) Market segment f) Working or acting together willingly for a common purpose

or benefit.
7. ( ) Product g) Trade: the buying and selling of goods, and all related activities.
8. ( )Marketing mix h) Part of a market; a group of costumers with specifics

needs, defined in terms of geography, age, sex, in come.
9. ( ) Consumer i) Something made, manufactured or produced by a mechanical,

profile industry or natural process; anything capable of satisfying a
want or a need.
10.( ) Achievement j) A product that is distinguished from those of competitors by

a name, sign, symbol, design.
11.( ) Purchase k) The expenses involved in doing or making something.
12.( ) Co-operative l) A person or organization that hires professional services. ( of

chain a lawyer, advertising agency, etc)
13.( ) Database m) A description of the characteristics of the consumers

marketing of a particular product, in terms of age, class, in come,
etc.
14.( ) Costs n) A tendency or direction ( in some aspect of human behaviour)
15.( ) Income o) The process of identifying and satisfying consumers`

needs desires.

UNIT II. SOCIO-CULTURAL FACTORS OF THE CONSUMER BEHAVIOR
Class 4: What influences consumer behavior?

Consumer behavior is the study of how individuals, groups, and organizations select, buy, use and
dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Marketers must
fully understand both the theory and reality of consumer behavior.
A consumer’s buying behavior is influenced by cultural, social, and personal factors, cultural
factors exert the broadest and deepest influence.
Cultural Factors
Culture, subculture, and social class are particularly important influences on consumer buying
behavior. Culture is the fundamental determinant of a person’s wants and behavior. Through
family and other key institutions, a child growing up in the United States is exposed to the
following values: achievement and success, activity, efficiency and practicality, progress, material
comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness. A child
growing up in another country might have a different view of self, relationship to others, and
rituals. Marketers must closely attend to cultural values in every country to understand how to
best market their existing products and find opportunities for new products.
Each culture consists of smaller subcultures that provide more specific identification and
socialization for their members. Subcultures include nationalities, religions, racial groups, and
geographic regions. When subcultures grow large and affluent enough, companies often design
specialized marketing programs to serve them.
Culture is the fundamental determinant of a persons’ wants and behaviors.
socialization for their members.
Subcultures include nationalities, religions, racial groups, and geographic regions.
a) Multicultural marketing grew out of careful marketing research that revealed that different
ethic and demographic niches did not always respond favorable to mass-market advertising. b)
Virtually all human societies exhibit social stratification. Social stratification sometimes takes
the form of a caste system where members of different castes are reared for certain roles and
cannot change their caste membership.
c) More frequently, it takes the form of social classes, relatively homogeneous and enduring
divisions in a society that are hierarchically ordered and whose members share similar values,
interests, and behavior.
d) One class depiction of social classes in the United States defined seven ascending levels:
1) Lower lowers.
2) Upper lowers.
3) Working class.
4) Middle class.
5) Upper middles.
6) Lower uppers.

7) Upper uppers.
e) Social classes have several characteristics:
1) Those within a class tend to behave more alike than persons from two different social classes. 2)
Persons are perceived as occupying inferior or superior positions according to social class. 3) Social
class is indicated by a cluster of variables (occupation, income, etc.) rather than by any single
variable.
4) Individuals can move up or down the social-class ladder.
f) Social classes show distinct product and brand preferences in many
areas. g) Social classes differ in media preferences.
h) There are language differences among the social classes.

Vocabulary Meaning
Social class Abroad group in society having common economic, cultural,

or political status.
Racial Groups A set of individuals whose identity as such is distinctive in terms

of physical characteristics or biological descent.
Demographic niches Is the subset of the market on which a specific product is focused.
SANDOVAL TORRES JORGE 2RM35

Evaluation 4
1. - Choose the correct words to complete the text below:
Personal Factors Services Organizations
Consumer Behavior Marketers

What influences consumer behavior?
Consumer behavior is the study of how individuals, groups, and ORGANIZATIONS select, buy,
use and dispose of goods, SERVICES, ideas, or experiences to satisfy their needs and wants.
MARKETERS must fully understand both the theory and reality of CONSUMER BEHAVIOR.
A consumer’s buying behavior is influenced by cultural, social, and PERSONAL FACTS,

cultural factors exert the broadest and deepest influence.

Class 5: Social Factors
In addition to cultural factors, a consumer’s behavior is influenced by such social factors as

reference groups, family, and social roles and statuses.
a) A person’s reference groups consist of all the groups that have a direct (face-to-face) or indirect
influence on his/her attitudes or behavior.
1) Groups having a direct influence on a person are called membership groups. i. Some memberships
groups are primary groups such as family, friends, neighbors, and co workers with whom the
person interacts fairly continuously and informally. ii. Some membership groups are secondary
groups such as religious, professional groups that tend to be more formal.
b) People are significantly influenced by their reference groups in at least three ways: 1) Reference
groups expose an individual to new behaviors and lifestyles, influencing attitudes and self-
concept.
2) They create pressures for conformity that may affect actual product and brand choices.
3) People are also influenced by groups to which they do not belong:
a. Aspirational groups are those a person hopes to join.
b. Dissociative groups are those whose values or behavior an individual reject. The buyer evaluates
these elements together with the monetary cost to form a total customer cost.
c. Manufacturers of products and brands where group influence is strong must determine how to
reach and influence opinion leaders in these reference groups.
d. An opinion leader is the person in informal, product-related communications who offers advice
or information about a specific product or product category.
e. Marketers try to reach opinion leaders by identifying demographic and psychographic

characteristics associated with opinion leadership, identifying the media read by opinion leaders,
and directing messages at opinion leaders.
Cultural Factors
Culture, subculture, and social class are particularly important influences on consumer buying
behavior. Culture is the fundamental determinant of a person’s wants and behavior. Through
family and other key institutions, a child growing up in the United States is exposed to the
following values: achievement and success, activity, efficiency and practicality, progress, material
comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness. A child
growing up in another country might have a different view of self, relationship to others, and
rituals. Marketers must closely attend to cultural values in every country to understand how to
best market their existing products and find opportunities for new products.
socialization for their members. Subcultures include nationalities, religions, racial groups, and

geographic regions. When subcultures grow large and affluent enough, companies often design
specialized marketing programs to serve them.
Culture is the fundamental determinant of a persons’ wants and behaviors.
socialization for their members.
Subcultures include nationalities, religions, racial groups, and geographic regions.
a) Multicultural marketing grew out of careful marketing research that revealed that different
ethic and demographic niches did not always respond favorable to mass-market advertising.
b) Virtually all human societies exhibit social stratification. Social stratification sometimes takes
the form of a caste system where members of different castes are reared for certain roles and
cannot change their caste membership.
Family
The family is the most important consumer-buying organization in society, and family members
constitute the most influential primary reference group.
a) We can distinguish between two families in the buyer’s life.

1) The family of orientation consists of parents and siblings.
2) A more direct influence on everyday buying behavior is the family of procreation –namely,
one’s spouse and children.
b) The makeup of the American family has changed dramatically.

c) Marketers are interested in the roles and relative influence of family members in the purchase
of a large variety of products and services.
d) With expensive products and services, the vast majority of husbands and wives engage in more
joint decision-making.
e) Men and women may respond differently to marketing messages.
f) Another shift in buying patterns is an increase in the amount of dollars spent and the direct and
indirect influence wielded by children and teens.
Vocabulary Meaning
Buyer Either a customer who buys goods or a service, or a person who

purchases goods for a company or a shop or a store.
Demographic The statistical data of a population, especially those showing
average age, income, education, etc
Psychographic The use of demographics to determine the attitudes and tastes of a

particular segment of a population, as in marketing studies
Subculture A culture derived from another culture
Wants A desire for something that satisfies a need.
Needs Something that is essential to human life, such as food shelter.
Evaluation 5
2. – Find the words below
DEMOGRAPHIC
FAMILY
MULTICULTURAL
NATIONALITIES
REGIONS
RELIGIONS
SOCIALCLASS
SOCIALIZATION
SOCIETIES
SUBCULTURE
Class 6: Roles and Statuses
A person participates in many groups and a person’s position in each group can be defined in
terms of role and status.
Each role carries a status.
Marketers must be aware of the status symbol potential of products and brands.
Personal Factors
A buyer’s decisions are also influenced by personal characteristics. These include the buyer’s age
and stage in the life cycle; occupation and economic circumstances; personality and self-concept;
and lifestyle and values.
1) Age and Stage in the Life Cycle
People buy different goods and services over a lifetime.
a) Consumption is also shaped by the family life cycle.

b) In addition, psychological life cycle stage may matter.
c) Critical life events or transitions give rise to new needs.
2) Occupation and Economic Circumstances
Occupation influences consumption patterns and economic circumstances influence product.
a) Spendable income (level, stability, and time pattern).

b) Savings and assets.
c) Debts.
d) Borrowing power.
e) Attitudes toward spending and saving.
3) Personality and Self-Concept
Each person has personality characteristics that influence his or her buying behavior.
Personality: A set of distinguishing human psychological traits that lead to relatively consistent and
enduring responses to environmental stimuli.
a) The idea is that brands have personalities and consumers are likely to choose brands whose
personalities match their own.
b) We define brand personality as the specific mix of human traits that may be attributed to a
particular brand. Jennifer Aaker identified the following five traits:
1) Sincerity (down-to-earth).
2) Excitement (daring).

3) Competence (reliable).
4) Sophistication (upper-class).
5) Ruggedness (outdoorsy).
c) Consumers also choose and use brand that have a brand personality consistent with their own
actual self-concept (how one views themselves).
d) Although in some cases, the match may be based on the consumer’s ideal self-concept (how we
would like to view ourselves).
e) Others self-concept (how we think others see us).
4) Lifestyles and Value
a) People from the same subculture, social class, and occupation may lead quite different
lifestyles. A lifestyle is a person’s pattern of living in the world as expressed in activities,
interests, and opinions. Lifestyle portrays the “whole person” interacting with his or her
environment.
b) Marketers search for relationships between their products and lifestyle groups. c) Lifestyles are
shaped partly by whether consumers are money-constrained or time constrained.
d) Consumers who experience time famine are prone to multitasking.
e) Consumer decisions are also influenced by core values, the belief systems that underlie
consumer attitudes and behaviors.
f) Core values go much deeper than behavior or attitude, and determine, at a basic level, people’s
choices and desires over the long term.
Vocabulary Meaning
Lifestyle The way people choose to live, a factor to consider in market

segmentation.
Interest The feeling of a person whose attention, concern, or curiosity is

particularly engaged by something.
Multitasking In a human context, is the practice of doing multiple things

simultaneously, such as editing a document or responding to email
while attending a teleconference.
Values Guiding beliefs for a company and all its employees

Evaluation 6
Find an example of a famous family and using pictures give examples of their consumption’s habits
according to the factors mentioned ( Age and Stage in the Life Cycle, 2) Occupation and Economic
Circumstances,3) Personality and Self-Concept and 4) Lifestyles and Value)
UNIT III PSYCHOLOGICAL FACTORS OF THE CONSUMER
BEHAVIOR Class 7: Personality theories
Sigmund Freud Abraham Maslow Frederick Herzberg
The psychological forces People will try to satisfy their The absence of dissatisfiers is
shaping people’s behavior most important needs first. not enough to motivate a
are largely unconscious, and When a person succeeds in purchase; satisfiers must be
that a person cannot fully satisfying an important need, present. For example, a
understand his or her own he will then try to satisfy the computer that does not
motivations. When a person next-most-important need. come with a warranty would
examines specific brand, she For example, a starving man be a dissatisfier. Yet the
will react not only to their (need 1) will not take an presence of a product
stated capabilities, but also interest in the latest warranty would not act as a
to other, less conscious cues happenings in the art world satisfier or motivator of a
such as shape, size, weight, (need 5), nor in how he is purchase, because it is not a
material, color and brand viewed by others (need 3 or source of intrinsic
name. A technique called 4), nor even in whether he is satisfaction. Ease of use
laddering lets us trace a breathing clean air (need 2); would be a satisfier
person’s motivations from but when he has enough
the stated instrumental food and water, the next-
ones to the more terminal most important need will
ones. Then the marketer can become salient.
decide at what level to
develop the message and
appeal.
Evaluation 7
1. Describe the personality’s theories.
Sigmund Freud:
_________________________________________________________________________
_________________________________________________________________________
Abraham Maslow:
_________________________________________________________________________
_________________________________________________________________________
Frederick Herzberg:
_________________________________________________________________________
_________________________________________________________________________

Class 8: Motivation
People are motivated by many things, some positive others not. Some motivating factors can
move people only a short time, like hunger which will last only until you are fed. Others can drive a
person onward for years.
Motivation is the driving force within individuals that impels them to action. Motivation is the
activation or energization of goal-oriented behavior. Motivation may be intrinsic or extrinsic. The
term is generally used for humans but, theoretically, it can also be used to describe the causes for
animal behavior as well. According to various theories, motivation may be rooted in the basic need
to minimize physical pain and maximize pleasure, or it may include specific needs such as eating
and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less
apparent reasons such as altruism, morality, or avoiding mortality.
The motivation process

The process of motivation starts with the need which may be the perception of deficiency in an
individual. For example, an employee in the organization considers the need for higher pay, more
challenging work, for time off etc. These needs influence the thought processes of employee that
directs him to satisfy the needs by adopting a particular pattern of action. In case the selected
course of action of an employee leads him towards expected results in the form of reward than he
will definitely be motivated by the similar reward to give the same performance in the future. On
the other hand, if the anticipated rewards are not resulted by adopting a certain line of action,
then the employee would not be likely to repeat his behavior. So the rewards of certain action, act
as a feedback mechanism that supports the employee to evaluate the consequences when he is
considering his future action.
Perception
We live in a world overflowing with sensations. Wherever we turn, we are bombarded by a
symphony of colours, sounds and odours.
Marketers certainly contribute to this commotion. Consumers are never far from advertisements,
product packages, radio and television commercials, and advertising hoardings that clamour for
their attention.
The perceptual process

As you sit in a lecture hall, you may find your attention shifting. One minute you are concentrating
on the lecture, and in the next, you catch yourself daydreaming about the weekend ahead before
you realize that you are missing some important points and tune back into the lecture.
People undergo stages of information processing in which stimuli are input and stored. However,
we do not passively process whatever information happens to be present. Only a very small

number of the stimuli in our environment are ever noticed. Of these, an even smaller number are
attended to. And the stimuli that do enter our consciousness are not processed objectively. The
meaning of a stimulus is interpreted by the individual, who is influenced by his or her unique
biases, needs and experiences. These three stages of exposure (or sensation), attention and
interpretation make up the process of perception. The stages involved in selecting and
interpreting stimuli are illustrated in Figure, which provides an overview of the perceptual process.
An overview of the perceptual process.
Vocabulary Meaning
Overflowing To be filled beyond capacity, as a container or waterway.
Motivation An incentive or inducement to do something; an interest or desire; the act of

motivating someone.

Evaluation 8
1. Complete the perceptual process’s diagram with the word below
Perception Stimuli Sounds Sensation Textures Sensory Interpretation

Receptors
2. Match the columns. Write the letter inside the parenthesis.
1. ( ) The psychological forces shaping people’s behavior are A. Abraham Maslow
largely unconscious B. Market Segmentation
2. ( ) The way people choose to live, a factor to consider in C. Needs
market segmentation. D. Lifestyle
3. ( ) Part of a market; a group of costumers with specifics E. Brand
needs, defined in terms of geography, age, sex, in come… 4. ( ) F. Sigmund Freud
When a person succeeds in satisfying an important need, he G. Brand Loyalty
will then try to satisfy the next-most-important need. 5. ( ) A
product that is distinguished from those of competitors by a name,
sign, symbol, design etc.
6. ( ) Is where an individual buys products from the same
manufacturer repeatedly rather than from other suppliers
7. ( ) Something that is essential to human life, such as food
shelter.

Class 9: Sensory systems
The inputs picked up by our five senses constitute the raw data that generate many types of
responses. For example, sensory data emanating from the external environment (hearing a song
on the radio) can generate internal sensory experiences when the song on the radio triggers a
young man’s memory of his first dance and brings to mind the smell of his date’s perfume or the
feel of her hair on his cheek.
Although we usually trust our sensory receptors to give us an accurate account of the external
environment, new technology is making the linkage between our senses and reality more
questionable. Computer-simulated environments, or virtual reality, allow surgeons to ‘cut into’ a
person without drawing blood or an architect to see a building design from different perspectives.
This technology, which creates a three-dimensional perceptual environment which the viewer
experiences as being virtually real, is already being adapted to everyday pursuits, such as virtual
reality games.
Enterprising business people will no doubt continue to find new ways to adapt this technology for
consumers’ entertainment – perhaps by developing ‘virtual catalogues’ which allow a person to
browse through a shop without leaving his or her armchair. Until that time, though, we are mostly
affected by marketers’ ability to manipulate real sensory inputs along five distinct channels. In this
section, we’ll take a brief look at some of the processes involved in the business applications of
sensory stimuli.
Vision: Sound
Marketers rely heavily on visual Music and sound are also important to
elements in advertising, store design marketers. Consumers spend vast
and packaging. Meanings are amounts of money each year on
communicated on the visual compact discs and cassettes, advertising
channel through a product’s size, jingles maintain brand awareness and
styling, brightness and distinctiveness background music creates desired
compared with competitors. moods.
Colour in the marketplace Colours are
rich in symbolic value and cultural
meanings. For example, the display of
red, white and blue evokes feelings of
patriotism for both British and French
people. Such powerful cultural
meanings make colour a central aspect
of many marketing strategies. Colour
choices are made with regard to
packaging, advertising, and even shop
fittings.
Taste
Touch:

Touch has even been shown to be a Our taste receptors contribute to our
factor in sales interactions. There are experience of many products. Sensory
considerable cultural differences in the analysis is used to account for the human
world as well as within Europe perception of sensory product qualities.
concerning the appropriate amount One study used sensory analysis to assess
and kind of touching in interpersonal butter biscuits: the crispness, buttery-
interactions. In general, northern taste, rate of melt, density, ‘molar
Europeans touch less than their packing’ (the amount of biscuit that
southern European sticks to the teeth) and the ‘notes’ of the
counterparts. biscuit, such as sweetness, saltiness or
bitterness.
Evaluation 9
1. Explain why experts in Marketing should know the impact of the perception stimuli in the
consumers?
2. Use the following terms to complete the definition below

Product Line Brand Product Mix Product Product
Elimination
1. A ___________ is the set of all the product lines and items offered by a company.
2. A __________ is defined by marketers as anything capable of satisfying a need or a want

(including services such as a bank loan, a haircut, a meal in a restaurant)
3. A _________ is a name used to identify the goods or services of a particular manufacturer, seller
or supplier, and to differentiate them from the goods or services of competition.
4. __________ is the process of withdrawing products from the market when they are no longer
profitable.
5. A _________ is a group of closely related products, which usually have the same function and
are sold to the same customer groups through the same outlets.
Management and marketing by Ian Mackenzie/ LTP 1997

Class 10: Sensory thresholds
If you have ever blown a dog whistle and watched pets respond to a sound you cannot hear, you
will know that there are some stimuli that people simply are not capable of perceiving. And, of
course, some people are better able to pick up sensory information than are others.
The science that focuses on how the physical environment is integrated into our personal,
subjective world is known as psychophysics. By understanding some of the physical laws that
govern what we are capable of responding to, this knowledge can be translated into marketing
strategies.
The absolute threshold

When we define the lowest intensity of a stimulus that can be registered on a sensory channel, we
speak of a threshold for that receptor. The absolute threshold refers to the minimum amount of
stimulation that can be detected on a sensory channel. The sound emitted by a dog whistle is too
high to be detected by human ears, so this stimulus is beyond our auditory absolute threshold. The
absolute threshold is an important consideration in designing marketing stimuli. A hoarding might
have the most entertaining story ever written, but this genius is wasted if the print is too small for
passing motorists to read it.
The differential threshold

The differential threshold refers to the ability of a sensory system to detect changes or differences
between two stimuli. A commercial that is intentionally produced in black and white might be
noticed on a colour television because the intensity of colour differs from the programme that
preceded it. The same commercial being watched on a black-and-white television would not be
seen as different and might be ignored altogether. The issue of when and if a change will be
noticed is relevant to many marketing situations. Sometimes a marketer may want to ensure that
a change is noticed, such as when merchandise is offered at a discount. In other situations, the fact
that a change has been made is downplayed, as in the case of price increases or when the size of a
product, such as a chocolate bar, is decreased. A consumer’s ability to detect a difference between
two stimuli is relative. A whispered conversation that might be unintelligible on a noisy street can
suddenly become public and embarrassing knowledge in a quiet library. It is the relative difference
between the decibel level of the conversation and its surroundings, rather than the loudness of
the conversation itself, that determines whether the stimulus will register. The minimum change in
a stimulus that can be detected is also known as the JND, which stands for just noticeable
difference. In the nineteenth century, Ernst Weber, a psychophysicist, found that the amount of
hange that is necessary to be noticed is related to the original intensity of the stimulus. The
stronger the initial stimulus, the greater the change must be for it to be noticed. This relationship
is known as Weber’s Law. Many companies choose to update their packages

periodically, making small changes that will not necessarily be noticed at the time. When a product
icon is updated, the manufacturer does not want people to lose their identification with a familiar
symbol.
Evaluation 10
1. Find the words below
•
Threshold
• Sensory
• Channel
• Stimulation
• Hoarding
• Ability
• Stimuli
• Updated
• Marketing
• Symbol

Class 11: Perceptual selection
Although we live in an ‘information society’, we can have too much of a good thing. Consumers
are often in a state of sensory overload, exposed to far more information than they are capable of
or willing to process. People in a noisy, crowded bar or party for several hours may feel the need
to step outside periodically to take a break. A consumer can experience a similar feeling of being
overwhelmed after being forced to sift through the claims made by hundreds of competing
brands. Further, the competition for our attention is increasing steadily with the increasing
number of exposures to television commercials and other types of advertising.
Exposure
Exposure is the degree to which people notice a stimulus that is within range of their sensory
receptors. Consumers concentrate on certain stimuli, are unaware of others, and even go out of
their way to ignore some messages. An experiment by a bank illustrates consumers’ tendencies to
miss or ignore information in which they are not interested. After a law was passed in America
requiring banks to explain details about money transfer in electronic banking, the Northwestern
National Bank distributed a pamphlet to 120,000 of its customers at considerable cost to provide
the required information – hardly exciting bedtime reading. In 100 of the leaflets, a phrase in the
middle of the pamphlet offered the reader $10.00 just for finding that paragraph. Not a single
person claimed it.
Selective exposure
Experience, which is the result of acquiring stimulation, is one factor that determines how much
exposure to a particular stimulus a person accepts. Perceptual filters based on consumers’ past
experiences influence what we decide to process.
Perceptual vigilance is a factor in selective exposure. Consumers are more likely to be aware of
stimuli that relate to their current needs. These needs may be conscious or unconscious. A
consumer who rarely notices car ads will become very much more conscious of them when he or
she is in the market for a new car. A newspaper ad for a fast-food restaurant that would otherwise
go unnoticed becomes significant when one glances at the paper during a five o’clock class
Adaptation
Another factor affecting exposure is adaptation, or the degree to which consumers continue to
notice a stimulus over time. The process of adaptation occurs when consumers no longer pay
attention to a stimulus because it is so familiar. Almost like drug addiction, a consumer can
become ‘habituated’ and require increasingly stronger ‘doses’ of a stimulus for it to continue to be
noticed. For example, a consumer on the way to work might read a new advertising hoarding, but
after a few days it becomes part of the passing scenery.
Next factors can lead to adaptation:

Intensity Less intense stimuli habituate because they have less of a sensory impact
Duration Stimuli that require relatively lengthy exposure in order to be processed
tend to habituate because they require a long attention
span.
Discrimination Simple stimuli tend to habituate because they do not require

attention to detail.
Exposure Frequently encountered stimuli tend to habituate as the rate of

exposure increases.
Relevance Stimuli that are irrelevant or unimportant will habituate because they
fail to attract attention.
Evaluation 11
1. Explain the next perceptual factors
-Exposure:
-Selective exposure:
-Adaptation:
2. Categorize the following aspects of marketing according to the well-known “4 P`s” classification
of the marketing mix- product, price, promotion and place.
Brand Name Personal Selling List price Franchising Cash discount Commercial Points of sale
Market coverage Quality Payment period Guarantee Media plan
Product Price Promotion Place
Brand Name Cash discount Commercial Franchising
Guarantee List price Media plan Points of sale
Quality Payment period Personal selling Market coverage

Class 12: Behavioral learning theories
Behavioural learning theories assume that learning takes place as the result of responses to
external events. Psychologists who subscribe to this viewpoint do not focus on internal thought
processes. Instead, they approach the mind as a ‘black box’ and emphasize the observable aspects
of behaviour, as depicted in Figure
Consumers who are complimented on a product choice will be more likely to buy that brand again,
while those who get food poisoning at a new restaurant will not be likely to patronize it in the
future.
Theories
Occurs when a stimulus that elicits a response is paired with
another stimulus that initially does not elicit a response on
its own. Over time, this second stimulus causes a similar
Classical conditioning
response because it is associated with the first stimulus.
Example Ivan Pavlov’s dogs
Operant conditioning, also known as instrumental

conditioning, occurs as the individual learns to perform
behaviours that produce positive outcomes and to avoid
Operant conditioning
those that yield negative outcomes.
B.F. Skinner’s experiment
Cognitive learning occurs as a result of mental processes. In

contrast to behavioural theories of learning, cognitive
learning theory stresses the importance of internal mental
Cognitive learning
processes. This perspective views people as problem-solvers
theory
who actively use information from the world around them to
master their environment. Supporters of this viewpoint also

stress the role of creativity and insight during the learning
process.
The role of learning in memory

Memory involves a process of acquiring information and storing it over time so that it will be
available when needed. Contemporary approaches to the study of memory employ an
information-processing approach. They assume that the mind is in some ways like a computer:
data are input, processed and output for later use in revised form. In the encoding stage,
information is entered in a way the system will recognize. In the storage stage, this knowledge is
integrated with what is already in memory and ‘warehoused’ until needed. During retrieval, the
person accesses the desired information.
In the next image we can appreciate the memory process.
Memory systems
According to the information-processing perspective, there are three distinct memory systems:
sensory memory, short-term memory (STM) and long-term memory (LTM).
Memory systems
Permits storage of the information we receive from our senses.
This storage is very temporary: it lasts a couple of seconds at
most. For example, a person might be walking past a bakery
and gets a brief, but enticing, whiff of bread baking inside.
Sensory memory
While this sensation would only last for a few seconds, it would
be sufficient to allow the person to determine if he or she
should investigate further. If the information is retained for
further processing, it passes through an attentional gate and is
transferred to short-term memory.
Also stores information for a limited period of time, and its

capacity is limited. Similar to a computer, this system can be

regarded as working memory: it holds the information we are
Short-term memory
currently processing. Verbal input may be stored acoustically
(in terms of how it sounds) or semantically (in terms of its
meaning).
Is the system that allows us to retain information for a long

period of time. In order for information to enter into long-term
memory from short-term memory, elaborative rehearsal is
Long-term memory
required. This process involves thinking about the meaning of a
stimulus and relating it to other information already in
memory. Marketers sometimes assist in the process by devising
catchy slogans or jingles that consumers repeat on their own.
The interrelationships of these memory systems are summarized in the next image.
Memory lapses.
People are also prone to forgetting information unintentionally. Typical problems include omitting
(the leaving out of facts), averaging (the tendency to ‘normalize’ things and not report extreme
cases), and telescoping (the inaccurate recall of time). These distortions call into question the
accuracy of various product usage databases that rely upon consumers to recall their purchase and
consumption of food and household items. In one study, for example, people were asked to
describe what portion of various foods – small, medium or large – they ate in a normal meal;
however, different definitions of ‘medium’ were used. Regardless of the measurement specified,
about the same number of people claimed they normally ate medium portions.
Memory for facts vs. feelings Although techniques are being developed to increase the accuracy of
memory scores, these improvements do not address the more fundamental issue of whether
recall is necessary for advertising to have an effect. In particular, some critics argue that these

measures do not adequately tap the impact of ‘feeling’ ads where the objective is to arouse strong
emotions rather than to convey concrete product benefits. Many ad campaigns, including those
for Hallmark cards, Chevrolet and Pepsi, use this approach. An effective strategy relies on a long
term build-up of feeling rather than on a one-shot attempt to convince consumers to buy the
product.
Evaluation 12
1. Describe the models of memory systems

Memory systems
Sensory memory
Short-term memory
Long-term memory
2. Match the columns; write the letter inside the parenthesis.

1. ( ) An incentive or inducement to do something; an interest or A. Costs
desire; the act of motivating someone.
2. ( ) In a human context, is the practice of doing multiple things B. Demographic

simultaneously, such as editing a document or responding to email
while attending a teleconference.
3. ( ) The expenses involved in doing or making something C. Customer Value
4. ( ) All the money received by a person or company during a given period D. Psychographic
5. ( ) The statistical data of a population, especially those showing D. Motivation

average age, income, education, etc
6. ( ) The use of demographics to determine the attitudes and tastes of a F. Multitasking

particular segment of a population, as in marketing studies
7. ( ) The difference between what a customer gets from a product, G. Income

and what he or she has to give in order to get it.

Class 13: Attitudes
An attitude is a feeling or opinion about something or someone, or a way of behaving that is
caused by something. (Cambridge Advanced Learner’s Dictionary)
An attitude is lasting because it tends to endure over time. It is general because it applies to more
than a momentary event, like hearing a loud noise (though over time you might develop a
negative attitude towards all loud noises). Consumers have attitudes towards very product specific
behaviors (such as using Mentodent rather than Colgate toothpaste), as well as towards more
general consumption-related behaviors (for example, how often you should brush your teeth).
Attitudes help to determine who a person goes out with, what music he or she listens to, whether
he or she will recycle or discard cans, or whether he or she chooses to become a consumer
researcher for a living.
The functions of attitudes.

The functional theory of attitudes was initially developed by the psychologist Daniel Katz to explain
how attitudes facilitate social behavior. According to this pragmatic approach, attitudes exist
because they serve a function for the person. That is, they are determined by a person’s motives.
Consumers who expect that they will need to deal with similar information at a future time will be
more likely to start forming attitudes in anticipation of this event.
Two people can each have the same attitude towards an object for very different reasons. As a
result, it can be helpful for a marketer to know why an attitude is held before attempting to
change it. The following are attitude functions as identified by Katz:
Is related to the basic principles of reward and punishment. We
develop some of our attitudes towards products simply on the
basis of whether these products provide pleasure or pain. If a
Utilitarian function
person likes the taste of a cheeseburger, that person will develop
a positive attitude towards cheeseburgers. Ads that stress
straightforward product benefits appeal to the utilitarian function.
Attitudes that perform a value-expressive function express the

consumer’s central values or self-concept. A person forms a
product attitude not because of its objective benefits, but because
Value-expressive
of what the product says about him or her as a person (e.g. ‘What
function
sort of woman reads Elle?’). Value-expressive attitudes are highly
relevant to lifestyle analyses, where consumers cultivate a cluster
of activities, interests and opinions to express a particular social
identity.
Attitudes that are formed to protect the person, from either

Ego-defense external threats or internal feelings, perform an ego-defensive

function function. An early marketing study indicated that housewives in the 1950s
resisted the use of instant coffee because it threatened
their conception of themselves as capable homemakers.
Knowledge function Some attitudes are formed as the result of a need for order, structure
or meaning. This need is often present when a person is in an
ambiguous situation or is confronted with a new product.
Evaluation 13
1. Find the words below
• Utilitarian
• Value
• Ego
• Knowledge
• Attitude
• Need
• Function
• Behavior
• Towards
• Consumer
Class 14: Attitude models
A consumer’s overall evaluation of a product sometimes accounts for the bulk of his or her
attitude towards it. When market researchers want to assess attitudes, it can often be sufficient
for them simply to ask the consumer, ‘How do you feel about Heineken?’, or ‘How do you feel
about the eventual acceptance of a European constitution?’ However, as we saw earlier, attitudes
can be a lot more complex than that. One problem is that a product or service may be composed
of many attributes or qualities – some of which may be more important than others to particular
people. Another problem is that a person’s decision to act on his or her attitude is affected by
other factors, such as whether it is felt that buying a product will meet with approval of friends or
family (if Leah’s closest friends are strongly opposed to using cheap labour for the making of Nike
soccer boots, this may be a key reason for her not to buy Nike). For these reasons, attitude models
have been developed that try to specify the different elements that might work together to
influence people’s evaluations of attitude objects.
Multi-attributes attitude models.

A simple response does not always tell us everything we need to know about why he consumer
has certain feelings towards a product or about what marketers can do to change the consumer’s
attitude. For this reason, multi-attribute attitude models have been extremely popular among
marketing researchers.
The functions of attitudes

The functional theory of attitudes was initially developed by the psychologist Daniel Katz to explain
how attitudes facilitate social behavior. According to this pragmatic approach, attitudes exist
because they serve a function for the person. That is, they are determined by a person’s motives.
Consumers who expect that they will need to deal with similar information at a future time will be
more likely to start forming attitudes in anticipation of this event.
Two people can each have the same attitude towards an object for very different reasons. As a
result, it can be helpful for a marketer to know why an attitude is held before attempting to
change it. The following are attitude functions as identified by Katz:
• Utilitarian function. The utilitarian function is related to the basic principles of reward and
punishment. We develop some of our attitudes towards products simply on the basis of
whether these products provide pleasure or pain. If a person likes the taste of a
cheeseburger, that person will develop a positive attitude towards cheeseburgers.
• Value-expressive function. Attitudes that perform a value-expressive function express the
consumer’s central values or self-concept. A person forms a product attitude not because
of its objective benefits, but because of what the product says about him or her as a
person.
• Ego-defensive function. Attitudes that are formed to protect the person, from either
external threats or internal feelings, perform an ego-defensive function.

• Knowledge function. Some attitudes are formed as the result of a need for order, structure
or meaning. This need is often present when a person is in an ambiguous situation or is
confronted with a new product.
Evaluation 14
Answer the following questions according to the text.
1) Why is it important to marketers knowing about attitudes?
2) Why do attitudes exist, according to Daniel Kats?
3) What is the utilitarian function?
4) What is the Value-expressive function?
5) What is the Ego-defensive function?
6) What is the Knowledge function?

UNIT IV. THE CONSUMER AND MARKETING
Class 15 : Bases for Segmenting Consumer Markets

We use two broad groups of variables to segment consumer markets. Some researchers try to
define segments by looking at descriptive characteristics: geographic, demographic, and
psychographic. Then they examine whether these customer segments exhibit different needs or
product responses. For example, they might examine the differing attitudes of “professionals”,
“blue collars”, and other groups toward, say, “safety” as a car benefit.
Other researches try to define segments by looking at behavioral considerations, such as

consumer responses to benefits, use occasions, or brands. The researcher then sees whether
different characteristics are associated with each consumer-response segment.
Regardless of which type of segmentation scheme we use the key is adjusting the marketing
program to recognize customer differences.
Geographic Segmentation
Geographic segmentation calls for dividing the market into different geographical units such as
nations, states, regions, countries, cities or neighborhoods. The company can operate in one or a
few areas, or operate in all, but pay attention to local variations.
More and more, regional marketing means marketing right down to a specific zip code. Many
companies use mapping software to show the geographic locations of their customers. The
software may show a retailer that most of his customers are within only a 10 – mile radius of his
store, and further concentrated within certain zip+4 areas. By mapping the densest areas, the
retailer can rely on customer cloning, assuming the best prospects live where most of his
customers come from.
Demographic Segmentation
In demographic segmentation, we divide the market into groups on the basis of variables such as
age, family life cycle, gender, income, occupation, education, religion, race, generation, nationality
and social class.
Here’s how certain demographic variables have been used to segment markets.
Age and life-cycle stage. Life Stage Gender
Consumer wants and People in the same part of Men and women have
abilities change with age. the life cycle may differ in different attitudes and
Toothpaste brands such as their life stage. Life stage behave differently, based
Crest and Colgate offer defines a person’s major partly on genetic makeup
three main lines of
concern, such as going and partly on socialization.
products to target kids,
through a divorce, going For example, women tend
adults, and older
consumers. Age into a second marriage, to be more
segmentation can be even taking care of an older communal minded and
more refined. Pampers parent, deciding to cohabit men tend to be more self
divides its market into with expressive and goal
prenatal, new baby another person, deciding directed; women tend to
(0-5 months), baby to buy a new home, and take in more of the data in
(6-12 so on. These life stages their immediate
months), toddler (13- present environment that helps
23 months), and opportunities for them achieve a goal. A
preschooler (24 marketers who can help research study examining
months+). people cope with their how men and women shop
major concerns. found that men often need
to be invited to touch a
product information;
women may relate to a
product on a more
personal level.
Income Generation Social Class

Is a long-standing practice Each generation is Social class has a strong
in such categories as profoundly influenced by influence on preferences
automobiles, clothing, the times in which it grows in cars, clothing, home
cosmetics, financial up the music, movies, furnishings, leisure
services and travel. politics, and defining activities, reading habits,
However, income does events of that period. and retailers, and many
not always predict the
Demographers call these companies design
best customers for a
generational groups products and services for
given product.
cohorts. Members share specific social classes. The
the same major cultural, tastes of social classes
political, and economic change with the years.
experiences and have
similar outlooks and
values. Marketers often
advertise to a cohort by
using the icons and images
prominent in its experiences.

Psychographic Segmentation
Psychographics is the science of using psychology and demographics to better understand
consumers. In psychographic segmentation, buyers are divided into different groups on the basis
of psychological/personality traits, lifestyle, or values. People within the same demographic group
can exhibit very different psychographic profiles.
The four groups with higher resources are:
1. Innovators – Successful, sophisticated, active, “take-charge” people with high self

esteem
2. Thinkers – Mature, satisfied, and reflective people who are motivated by ideals and
who value order, knowledge, and responsibility.
3. Achievers – Successful, goal-oriented people who focus on career and family 4.
Experiencer – Young, enthusiastic, impulsive people who seek variety and excitement.
The four groups with lower resources are:
1. Believers – Conservative, conventional and traditional people with concrete beliefs. 2.

Strivers – Trendy and fun-loving people who are resource constrained. They favor stylish
products that emulate the purchases of those with greater material wealth 3. Makers –
Practical, down-to-earth, self-sufficient people who are concerned about change. They are
loyal to their favorite brands.
Evaluation 15
1. Describe the bases for segmenting consumer markets.

Geographic
Demographic
Psychographic
2. Describe the higher and lower groups of the psychographic segmentation.

Innovators
Thinkers
Achievers
Experiencer
Believers
Strivers
Makers

Class 16: Behavioral Segmentation
In behavioral segmentation, marketers divide buyers into groups on the basis of their knowledge
of, attitude toward, use of, or response to a product.
Different people are playing different roles, but all are crucial in the decision process and ultimate
consumer satisfaction.
Behavioral variables
Many marketers believe behavioral variables – occasions, benefits, user status, usage rate,
buyer-readiness stage, loyalty status, and attitude – are the best starting points for
constructing market segments.
Occasions Benefits User Status Usage Rate
Occasions can be Not everyone who Every product has Markets can be
defined in terms buys a product its nonusers, ex- segmented into
of the time of wants the same users, potential light, medium, and
day, benefits from it. users, first time heavy product
week, month, users, and users. Heavy users
year, or in terms regular users. are often a
of other well- The key to small percentage
defined attracting of the market
temporal aspects of potential users, but
a consumer’s life. or even account for a
We can distinguish possibly high percentage
buyers according nonusers, is of total
to the occasions understanding the consumption.
when they reasons they are
develop a need, not using.
purchase a
product, or use a
product.
Buyer-Readiness stage Loyalty Status Attitude
Some people are unaware 1. Hard-core loyals – Five attitudes about
of the product, some are Consumers who buy only products are: enthusiastic,
aware, some are one brand all the time positive, indifferent,
interested, some desire 2. Split loyals – Consumers negative, and hostile.
the product, and some who are loyal to two or Door-to-door workers in a
intend to buy. To help political campaign use
three brands
characterize how many
3. Shifting loyals – voter attitude to determine
people are at different
Consumers who shift how much time to spend
stages and how well they
have converted people loyalty from one brand to with that voter. They thank
from one stage to another, another enthusiastic voters and
some 4. Switchers – Consumers remind them to vote; they
marketer employ a who show no loyalty to any reinforce those who are
marketing funnel. brand positively
disposed; they try to win
the votes of indifferent
voters; they spend no
time trying to change the
attitude of

negative and hostile voters
The conversion model.

The conversion model measures the strength of consumers’ psychological commitment to brands
and their openness to change. To determine how easily a consumer can be converted to another
choice, the model assesses commitment based on factors such as consumer attitudes toward, and
satisfaction with, correct brand choices in a category and the importance of the decision to select
a brand in the category.
The model segments users of a brand into four groups based on strength of commitment, from
low to high, as follows:
Convertible Shallow Average Entrenched
Most likely to defect Uncommitted to Also committed to Strongly committed
the brand and the brand they are to the brand they
could using, but not as are currently using
switch – some are strongly – they are – they are highly
actively unlikely to switch unlikely to switch
considering brands in the short brands in the
alternatives term foreseeable future
The model also classifies nonusers of a brand into four other groups based on their “balance of
disposition” and openness to trying the brand, from low to high, as follows:
Strongly Weakly Ambivalent Available
Unavailable unavailable Not As attracted to Most likely to be
Unlikely to switch available to the the brand as they acquired in the
to the brand – brand because are to their short run
their their preference current brands
preference lies lies with their
strongly with their current brand,
current brands although not
strongly
Finally, a related method of behavioral segmentation has recently been proposed that looks more
at the expectations a consumer brings to a particular kind of transaction and locates those
expectations on a “Gravity of Decisions Spectrum”. On the shallow end of the spectrum,
consumers seek products and services they think will save them time, effort, and money, such as
toiletries and snacks. Segmentation for these items would tend to measure consumers’ price
sensitivity, habits and impulsiveness. At the other end of the spectrum, the deep end, are those
decisions in which consumers’ emotional investment is greatest and their core values most
engaged, such as deciding on a health care facility for an aging relative or buying a new home.
Here the marketer would seek to determine the core values and beliefs related to the buying
decision. As the model suggests focusing on consumer’s relationships and involvement with

products and product categories can often be revealing as to where and how the firm should
market to consumers.
Evaluation 16
1. Complete the text using these words:
Income Dividing Geographical
Purchasing Demographic
Market segmentation means (1) ___________ a market into distinct subsets of customers with
different needs, according to different variables that can play a role in (2) ________ decisions.
These can include (3)___________factors- region, population density ( urban, suburban, rural),
size of town, and climate; ( 4)___________ factors such as age, sex, family size, or stage in the
family life cycle; and other variables including (5) __________ occupation, education, social class,
life style, and personality .
2. Match the columns

1.( ) Top management A) Something made, manufactured or produced by a mechanical,
industry or natural process; anything capable of satisfying a want
or a need.
2. ( ) Trends B) Comprises of managers who head specifics departments
3. ( ) Wants C) All the money received by a person or company during a

given period
4. ( ) Demographic D) Either a customer who buys goods or a service, or a person

who purchases goods for a company or a shop or a store.
5. ( ) Exposure E) An incentive or inducement to do something; an interest

or desire; the act of motivating someone.
6. ( ) Market F) Satisfiers must be present to motivate a purchase.

segmentation
7. ( ) Product G) A general tendency or course of events.
8. ( ) Motivation H) The degree to which people notice a stimulus that is within

range of their sensory receptors.
9. ( ) Buyer I) The driving force within individuals that impels them to action.
10.( ) Frederick J) The highest ranking executives.

Herzberg
11.( ) Middle K) Something that is essential to human life, such as food shelter.
Management
12.( ) Psychographic L) Part of a market; a group of costumers with specifics

needs, defined in terms of geography, age, sex, in come.
13.( ) Database M) The statistical data of a population, especially those

marketing showing average age, income, education, etc

14.( ) Needs N) A desire for something that satisfies a need.
15.( ) Income O) Systematic approach to the gathering, consolidation, and

processing of consumer data (both for customers and
potential customers) that is maintained in a company's
databases.

BIBLIOGRAPHY
http://www.marketingteacher.com/what-is-consumer-behavior/
http://research-methodology.net/consumer-buyer-behaviour-
definition/
CONSUMER BEHAVIOR : A European Perspective

Michael Solomon
Gary Bamossy
Margaret K. Hogg
Third edition
Pearson Education
Management and marketing

Ian Mackenzie
LTP Business
Identifying Market Segments and Targets
Philip Kotler
Kevin Lane Keller
2009 Pearson Education, Inc. Publishing as Prentice Hall

Copia de Consumer Behavior reducidoFINAL

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Copia de Consumer Behavior reducidoFINAL

Uploaded by

Copyright:

Available Formats

Consumer Behavior Workbook 1

• Teacher: Silvia Elena Osuna Urrea

5 Class 1: What is Consumer

Building Customer Value, Satisfaction and Loyalty .........................................................................5

Market segmentation: to whom are we marketing?.......................................................................9

Class 4 What influences consumer behavior? ........................................................ 17

Class 7 Personality theories..................................................................................... 25

Consumer Behavior Workbook 3

The role of learning in memory .....................................................................................................36

Class 15 Bases for Segmenting Consumer Markets .............................................. 43

Geographic Segmentation .............................................................................................................43

Consumer Behavior Workbook 4

Class 1: What is Consumer Behaviour?

Building Customer Value, Satisfaction and Loyalty

Consumer Behavior Workbook 5

Behavior The manner in which one acts.

Top management The highest ranking executives.

Middle management Comprises of managers who head specific departments.

Brand Loyalty Is where an individual buys products from the same

Consumer Behavior Workbook 6

Complete the Traditional and the modern organization chart

Top _______________ Frontline people

Purchase To buy something; something bought

Marketer Someone who works in marketing

Costs The expenses involved in doing or making something

Consumer Behavior Workbook 8

Psychographic • Self-concept, personality

Behavioural • Brand loyalty, extent of usage

● Important differences among segments can be identified.

● The segment is large enough to be profitable.

● Consumers in the segment can be reached by an appropriate marketing mix.

Consumer Behavior Workbook 9

Consumer Behavior Workbook 10

Websites for women marketing opportunity

Social class and income

Consumer Behavior Workbook 11

To sum up, a European segmentation must be able to take into consideration:

Consumer Behavior Workbook 12

Market segment Part of a market; a group of costumers with specifics needs,

Achievement Something successfully accomplished or performed.

Hierarchically Any system of persons or things ranked one above another.

2. Write the variables for each market segmentation category

Consumer Behavior Workbook 13

Consumer Behavior Workbook 14

Database marketing A systematic approach to the gathering, consolidation, and processing

Trend A tendency or direction (in some aspect of human behaviour)

Brands A product that is distinguished from those of competitors by a name,

Consumer Behavior Workbook 15

2. ( ) Client b) The set of all the various elements in a marketing program,

3. ( ) Trend c) Something successfully accomplished or performed

4. ( ) Marketing d) To buy something; something bought.

5. ( ) Brands e) All the money received by a person or company during a

6. ( ) Market segment f) Working or acting together willingly for a common purpose

8. ( )Marketing mix h) Part of a market; a group of costumers with specifics

9. ( ) Consumer i) Something made, manufactured or produced by a mechanical,

10.( ) Achievement j) A product that is distinguished from those of competitors by

11.( ) Purchase k) The expenses involved in doing or making something.

12.( ) Co-operative l) A person or organization that hires professional services. ( of

13.( ) Database m) A description of the characteristics of the consumers

14.( ) Costs n) A tendency or direction ( in some aspect of human behaviour)

15.( ) Income o) The process of identifying and satisfying consumers`

Consumer Behavior Workbook 16