CHAPTER 1

CONSUMER BEHAVIOUR AND THE MARKETING CONCEPT

 Understanding consumer needs and wants is crucial for business success.

 Research to learn about consumer behaviour is essential for effective marketing.
 Market segmentation, targeting, and positioning are key components of marketing strategy.
 Consumer behaviour encompasses various aspects such as searching for, purchasing, using,
evaluating, and disposing of products and services to satisfy needs.
 It involves decisions on what to buy, why, when, where, how often, how to evaluate post-
purchase, and how to dispose of products.
 All individuals are consumers who regularly use or consume a wide range of products and
services.
 Consumer decisions impact the economy, including demand for raw materials,
employment, and industry success.
 Marketers must thoroughly understand consumer preferences, behaviours, influences, and
decision-making processes to succeed in the dynamic marketplace.
 Consumer behaviour includes personal consumers (individuals who buy for personal use)
and organizational consumers (businesses, government agencies, institutions).
 This book primarily focuses on individual consumers who purchase for personal or
household use.
 Individual consumer behaviour is pervasive and involves people of all ages and
backgrounds in various roles as buyers and users.

CONSUMER BEHAVIOUR AND THE MARKET CONCEPT

 The strategic and applied field of consumer behaviour is rooted in three philosophically
different business orientations that lead up to an extremely important business orientation
known as the marketing concept.

Production Orientation (1850s - late 1920s):

 Focus on expanding manufacturing skills and increasing production.

 Emphasis on perfecting production capabilities.
 Consumers content with generic products due to high demand.
 Quantity and production efficiency were prioritized.

Sales Orientation (1930s - early to mid-1950s):

 Shift from producing to selling as production capacity expanded.

 Companies faced oversupply of similar products.
 The challenge was to sell products in a competitive market.
 Increased emphasis on sales and distribution.

Marketing Orientation (Mid-1950s):

 Emerged as consumers desired unique products to meet specific needs.

 Shift from sales to a focus on consumers' preferences.
 Putting the consumer first became central to business thinking.
 Introduction of the marketing concept, aligning with consumer demands and preferences.
WHAT IS THE MARKETING CONCEPT

 Marketing Concept Key Assumptions:

o Success hinges on identifying specific target markets' needs and delivering superior
products or services compared to competitors.
o Profit is seen as a fair reward for satisfying consumer needs, not an entitlement for merely
being in business.
 Relevance and Effectiveness of the Marketing Concept:
o The marketing concept remains a valuable guideline and philosophy for business
management.
o It emphasizes the importance of keeping consumer needs central in product development,
marketing communications, and strategic decision-making.
 Societal Marketing Concept:
o Suggests that consumers may sometimes prioritize immediate desires over long-term best
interests, their family, community, country, or the planet's well-being.
o Calls for enlightened marketers to educate consumers about long-term benefits and their
company's commitment to being a responsible corporate citizen.
o Example: A business developing non-harmful products that attract consumers sharing
similar values and environmental concerns.

EMBRACING THE MARKETING CONCEPT

 Continuous Marketing Research:

o Companies should conduct ongoing marketing research to identify both unsatisfied and
unrecognized consumer needs.
o Research helps monitor consumer preferences for existing products and services and
potential future offerings.
 Complex Consumer Profiles:
o Consumers exhibit a high level of complexity, with various psychological and social needs
beyond basic functional requirements.
 Segmented Consumer Needs:
o Different consumer segments have distinct and diverse needs and priorities.
o The company's objective is to target specific products and services to these segments to
better address their unique requirements.
 In-Depth Consumer Study:
o To achieve this, companies must conduct in-depth research to understand what products
will satisfy the needs of different market segments.
o This requires a comprehensive understanding of consumers and their consumption
behaviour.

SEGMENTATION, TARGETING AND POSITIONING

 Marketing Concept Focus:

o Understand current and anticipated consumer needs.
o Recognize diversity among consumers while identifying commonalities.
 Acquired Needs:
o Environmental, cultural, educational, and experiential factors shape needs after birth.
o Many people develop similar acquired needs, forming the basis for consumer market
segments.
 Strategic Framework:
 o In the marketing concept, three key elements are market segmentation, targeting, and
positioning.
 Market Segmentation:
o Process of dividing a market into consumer subsets with shared needs or characteristics.
o Variables and methods for forming subsets are discussed.
o Limited resources mean companies can't pursue all identified segments.
 Market Targeting:
o Selection of one or more segments for pursuit.
o Example: Tab, a Coca-Cola soft drink, targets sophisticated females concerned with weight
and appearance.
 Positioning:
o Development of a distinct product or service image in consumers' minds.
o Aims to differentiate from competitors and convey better fulfilment of needs.
o Emphasizes communicating benefits over features and creating a unique selling
proposition to stand out.

THE MARKETING MIX

 The marketing mix consists of a company's service and/or product offerings to consumers and
the methods and tools it selects to accomplish the exchange. The marketing mix consists of four
elements known as the four Ps:
1. the product (i.e., the features, designs, brands and packaging of a product or service
offering, along with post-purchase benefits such as warranties and return policies.
2. the price (including discounts, allowances and payment methods)
3. the place (the distribution of the product or service through specific store and non-store
outlets)
4. promotion (the advertising, sales promotion, public relations and personal selling efforts
designed to build awareness of and demand for the product or service).

CUSTOMER VALUE, SATISFACTION, TRUST AND RETENTION

 Customer Needs and Business Practices:

o Customers seek a variety of products to fulfil different needs.
o Communication, social responsibility, and understanding the difference between satisfied and
loyal customers are key for business success.
 Impact of the Marketing Concept:
o Emerged in the 1950s, leading to more product variety and precise targeting of smaller
markets.
o Resulted in increased competition and a rapidly changing marketplace.
o Digital technology, especially the internet, accelerated changes and provided consumers with
more information and choices.
o The marketing concept and internet availability benefit consumers, enhancing their quality of
life.
 Technology Adoption Factors:
o Technology adoption can be hindered by factors like low income, poor education, lack of
infrastructure, culture, and language.
o Adoption rates vary by country, influenced by economic disparities and cultural diversity.
o South Africa's technology adoption has lagged behind developed regions but is gradually
improving.
 Role of Digital Technology and Social Media:
o Technologically savvy marketers with limited budgets can reach a wide consumer audience.
o To outperform competitors, marketers must maximize profit potential from each customer.
o Customer-centric organizational culture and a focus on building relationships are crucial.
o Key drivers of successful marketer-customer relationships: customer value, satisfaction, trust,
and retention.

PROVIDING CUSTOMERS WITH VALUE

 Customer Value:
o Customer value is the ratio of perceived benefits (economic, functional, and
psychological) to the resources (money, time, effort, and psychological) used to obtain
those benefits.
o Perceived value is subjective and relative.
o Example: Diners at an exclusive Cape Town restaurant paying a high price expect
unique food, great service, and beautiful decor, but some may leave disappointed if
their expectations are too high.
 Value Proposition:
o Developing a value proposition is crucial for brand positioning.
o It replaces the traditional concept of a unique selling proposition.
o Consideration of emerging "mega trends" (e.g., individualism, choice overload, hiving,
and geek chic) is essential for successful positioning.

ENSURING CUSTOMER SATISFACTION

 Customer satisfaction is the individual consumer's perception of the performance of the

product or service in relation to his or her expectations.
 Customer Types Based on Satisfaction:
o Study identifies various customer types based on their satisfaction levels and
behaviours.
o Positive types include loyalists and apostles.
o Negative types include defectors, consumer terrorists, and hostages.
o Mercenaries are satisfied but not loyal.
 Objective: Creating Positive Customer Relationships:
o Companies should aim to create apostles, raise defectors' satisfaction, and turn them
into loyalists.
o Avoid having terrorists and hostages, and reduce the number of mercenaries.
 Building Customer Trust:
o Trust is crucial for establishing and maintaining long-lasting customer relationships.
o Trust increases the likelihood of customer loyalty.
o In cases where trust is at risk, the concept of delight involves recovering and showing
value to the customer, strengthening the relationship.
 Securing Customer Retention:
o The goal is to continuously provide better value to retain satisfied and trusting
customers.
o Customer retention is cost-effective compared to acquiring new customers.
o Loyal customers buy more, are less price-sensitive, and provide positive word of
mouth.
o Companies should prioritize retaining customers, considering profitability tiers and
tailoring strategies for each group.
o Inequality, particularly in South Africa, affects customer segments based on wealth
disparities.
o Selective relationships with customers depend on profitability rankings, with distinct
strategies for different customer groups.
THE IMPACT OF DIGITAL TECHNOLOGIES ON MARKETING STRATEGIES

 Impact of Digital Technology on Marketing Environment:

o Increased Consumer Empowerment: Consumers have gained more influence and
control.
o Greater Information Access: Consumers can access more information about products
and services.
o Expanded Product Offerings: Marketers are compelled to offer a wider range of
products and services.
o Instant Communication: Instantaneous interactions between marketers and
consumers are possible.
o Enhanced Data Collection: Marketers can quickly and easily gather consumer
information.
o Beyond PC Internet Access: Digital impact extends beyond traditional PC-based
internet connections.
 Customization and Relationship Building:
o Digital technologies enable marketers to customize products, services, and
promotional messages.
o Marketers can efficiently adapt marketing mix elements to cater to specific consumer
needs.
o Data collection and analysis lead to targeted marketing efforts.
o Consumers can access information, compare prices, and make informed decisions
from their home computers.
o Marketers must ensure their products and services provide value and are positioned
effectively to reach the right consumers.

CONSUMERS HAVE MORE POWER THAN EVER BEFORE

 Consumer Empowerment with Digital Tools:

o Some consumers use intelligent agents to find the best prices and bid on marketing
offerings.
o They can bypass traditional distribution outlets and shop globally and 24/7 from
home.
o This necessitates marketers to offer competitively priced products with more options.
 Consumer Control Over Media:
o Devices like PVR decoders in South Africa give consumers control over TV content,
viewing times, and ad exposure.
o These devices shift power from broadcasters to viewers, but the response from
broadcasters is uncertain.
o As consumers spend more time online and use technology to avoid TV ads, marketers
shift advertising budgets to newer media like web, email, and cell phone advertising.
o Advertisers seek improved measurement systems for viewer demographics in
response to changing consumer behaviour.

CONSUMERS HAVE MORE ACCESS TO INFORMATION THAN BEFORE

 Consumers can easily find reviews, posted by previous buyers, for products they are
considering buying; click a button to compare the features of different product models on
the sites of online retailers, and participate in virtual communities of people who share the
same interests they do.
 In turn, marketers must be aware of the limits of their promotional messages and assume
that such consumers are highly likely to know all of their buying options.
MARKETERS MUST OFFER MORE SERVICES AND PRODUCTS THAN BEFORE

 Digitization for Customization:

o Digitization enables sellers to customize products and services while maintaining
reasonable prices.
o Marketers can tailor promotional messages for a wide range of customers.
 Examples of Personalized Marketing:
o Amazon.com sends personalized emails to book purchasers, suggesting new books
based on past purchases.
o Kalahari.com sends newsletters to update customers on new products and
promotions.
o An American online pharmacy customizes website displays for returning buyers,
categorizing products based on past purchasing behaviour.
o Clicks Pharmacy Online in South Africa offers special offers, health guidance, news,
and an online health tracker service in partnership with Virgin Life Care to track
family health and suggest lifestyle improvements.

INCREASING INSTANTANEOUS EXCHANGES BETWEEN MARKETERS AND

CUSTOMERS

 Traditional Advertising:
o One-way communication where marketers pay to reach a large audience through
mass media.
o Effectiveness assessed later based on future sales or market studies.
 Digital/New Media Communication:
o Enables two-way interactive exchange.
o Consumers can instantly react to messages (e.g., clicking links or leaving websites).
o Marketers can quickly assess message effectiveness rather than relying on delayed
feedback from post-campaign sales data.

MARKETERS CAN QUICKLY AND EASILY GATHER CONSUMER INFORMATION

 Marketers can track consumers' online behaviour and gather information by requiring
visitors to the websites to register and provide some background information before they
get access to the site's features. Thus, marketers can construct and update their consumer
databases efficiently and inexpensively. As a result, many marketers now employ
narrowcasting - a method that enables them to develop and deliver more customised
messages to increasingly smaller market segments on an ongoing basis.

IMPACT REACHES BEYOND THE PC-BASED CONNECTION OF THE INTERNET

 Future Access Tools:

o Computer internet access is widespread and growing.
o Future access tools are likely to include mobile phones, smartphones, tablet
computers, and personal digital assistants (PDAs).
o These devices bring together email and text messaging, are user-friendly, compact,
and quick to access compared to laptops.
o Large numbers of highly mobile consumers drive the preference for mobile devices.
 Mobile Device Features:
o Mobile devices with built-in GPS offer custom promotional messages and mobile
purchasing capabilities.
o Smart TV cable boxes in some U.S. homes enable two-way communications with
broadcasters.
o High-definition TV transition leads to merging of TV and PC, offering cable channels,
interactive features, and high-speed internet access.
 o Technologies enable supermarket scanners to track purchases and provide
personalized coupons.
o Caller identification devices are also emerging.
 Future Technological Convergence:
o Electronic companies are merging TV and PC into a single device with cable channels
and internet access.
o Continued technological advancements promise similar functionality in the future.

THE EXPANDING MOBILE CONSUMER

 Cellular Service Providers and Advertising:

o Cellular service providers view cell phone screens as opportunities for advertising
revenue, similar to TV stations and movie theatres.
o They contract entertainment content providers to create engaging content like games,
contests, and soap opera stories, providing advertisers with access to mobile consumers.
o Expanding use of wireless media messages is expected with:
1. Increased availability of flat-rate data traffic to consumers.
2. Enhanced screen image quality.
3. Improved internet-related applications, leading to better consumer experiences.

CONSUMER BEHAVIOUR IN A WORLD OF ECONOMIC INSTABILITY

 Challenges in the Global Economy:

o The global economy faces multiple interconnected problems.
o Key challenges include high unemployment and declining economic growth, especially
in developed countries.
o Stalled recovery due to lack of demand for new products and services.
 Global Economic Impact:
o Many investors have seen significant losses in their financial holdings set aside for
retirement or education.
o The USA, hit by the 2008 banking crisis, has not fully recovered, affecting global
confidence.
o Eurozone growth slowed significantly from 2011.
o Japan fell into recession in the first half of 2011 due to natural disasters.
 Impact on South Africa:
o South Africa's political and business elite seem in denial about the global economic
downturn's effect on the country.
o Post-apartheid trade and financial liberalization exposed South Africa to global
economic volatility.
o Resilience of South Africa's economy will be tested if the world recession continues.
 Credit Rating Concerns:
o Downgrading of South Africa's credit rating from 'stable' to 'negative' may indicate
future challenges.
o Potential capital outflows by foreign investors could weaken the rand, raise inflation,
and delay interest rate cuts.
o These factors can lead to economic hardships, unemployment, and uncertainty for South
African citizens.
 Policy Response:
o South Africa's policymakers' response to the global financial crisis will determine the
country's economic resilience and survival.
CONSUMER BEHAVIOUR AND DECISION -MAKING

 Early Consumer Behaviour Study:

o Consumer behaviour was a relatively new field in the mid-60s.
o Borrowed concepts from other scientific disciplines: psychology (individual study),
sociology (group study), social psychology (individual in groups), anthropology (society's
influence on individuals), and economics.
o Early theories rooted in economic theory, assuming rational individuals seeking to
maximize benefits.
 Evolution of Understanding:
o Later research revealed consumers also make impulsive decisions.
o Influenced by family, friends, advertisers, role models, mood, situation, and emotion.
o Comprehensive body of research on consumer behaviour now encompasses cognitive
and emotional aspects of decision-making.

A SIMPLIFIED MODEL OF CONSUMER DECISION-MAKING

Consumer Decision-Making Stages:

 Input Stage:
o Influences consumer's recognition of a product need.
o Sources of information:
o Company's marketing efforts (product, price, promotion, place).
o External sociological influences (family, friends, community, social class, culture,
etc.).
o Cumulative impact of these factors affects consumer purchasing decisions.
 Process Stage:
o Focuses on how consumers make decisions.
o Psychological factors (motivation, perception, learning, personality, attitudes)
influence:
o Recognition of a need.
o Pre-purchase search for information.
o Evaluation of alternatives.
o Experience from evaluating alternatives affects existing psychological attributes.
 Output Stage:
o Post-decision activities: Purchase behaviour and post-purchase evaluation.
o For low-cost, nondurable products (e.g., shampoo), purchase behaviour may involve
a trial purchase influenced by manufacturer's coupons.
o A repeat purchase signifies product adoption.
o For relatively durable products (e.g., laptops), the purchase more likely signifies
adoption.
 APPENDIX A
 Defining 'Marketing':
o "The process by which firms create value for customers and build strong customer
relationships in order to capture value for customers in return."
o Focus on the exchange process, where customers exchange value (money) for their
needs being satisfied.
o The more benefit provided by the company, the higher the transactional value.
THE MARKETING PROCESS (FIVE-STEP MODEL):
1. Understand the marketplace and customer needs and wants.
 Core concepts: customer needs, market offerings, customer value, exchanges, markets.
2. Design a customer-driven marketing strategy.
 Selecting customers to serve (market segmentation and target marketing).
 Choosing a value proposition (competitive advantage).
3. Construct an integrated marketing plan and program that delivers superior value.
 Marketing program consists of the marketing mix: product, price, place, promotion.
4. Build profitable relationships and create customer delight.
 Customer Relationship Management (CRM) for maximizing loyalty and customer
satisfaction.
5. Capture value from customers to create profits and customer equity.
 Creating highly satisfied customers leads to loyalty, future sales, and increased share of
customer.

CHAPTER 3:
MARKET SEGMENTATION AND STRATEGIC TARGETING

 When a company does research in the market to identify distinct groups of customers with
similar needs to whom they can offer specific products and services to satisfy their needs.
This is referred to as segmentation. Companies segment the market so that they can decide
which one or more of those segments they want to target for profit and at the same time to
satisfy the needs and wants of those customers. They set specific criteria before deciding
which segments they want to target.

WHY IS SEGMENTATION NECESSARY?

 Consider for example, a bank. A bank offers a variety of services and therefore it is
important to distinguish between the different segments that they service. For example,
they have personal banking clients, small business and commercial clients and corporate
clients. Within the category of personal banking clients, they can further differentiate and
service customers with investment of savings or transaction needs. In the personal banking
category, they segment even further and differentiate between student loans, personal loans
or home loans. It is therefore important to distinguish between different markets in order
to serve them better.

CRITERIA FOR EFFECTIVE TARGETING

 Before describing how market segments are identified, we must point out that not every
segment that can be identified is viable or profitable. The challenge marketers face is to
select one or more segments to target with an appropriate marketing mix. To be an effective
 target, a market segment should be: (1) identifiable, (2) sizeable, (3) stable or growing, (4)
accessible (reachable), and (5) congruent with the marketer's objectives and resources.

IDENTIFIABLE

 Divide the market into segments based on common needs or characteristics relevant to the
product or service.
 Characteristics include demographics (age, gender, ethnicity), determinable through
questioning (education, income, occupation, marital status).
 Some features like benefits sought or lifestyle are harder to identify and measure.

SIZEABLE

 Must have enough consumers to be profitable.

 Identifiable and stable segments may not be large enough to be profitable.
 Use secondary data (e.g., census figures) and consumer surveys to estimate segment size,
spending power, and buying propensity.

STABLE OR GROWING

 Marketers prefer stable segments with predictable lifestyles and consumption patterns.
 Fickle segments can be unpredictable and challenging.
 For example, teenagers are a sizable and reachable segment but often embrace fads that can
change quickly.

ACCESSIBLE

 Accessibility of Market Segment:

o Marketers need to reach a segment economically.
o Diverse media options (magazines, TV channels, new media) allow access to unique
segments.
 Alignment with Company Objectives and Resources:
o Not all companies are interested or have the means to target every segment.
o Company objectives and resources influence segment selection.
o Example: Kulula.com focuses on providing value with a single class of service.

BASES FOR SEGMENTATION

 Segmentation Bases:
o Begin by selecting core attributes representing customers.
o Use popular bases for segmentation.
o Often use hybrid segmentation combining attributes from different bases.
 Segmentation Criteria:
o Consumer-rooted features based on physical, social, and psychological
characteristics.
o Consumption-specific usage behaviours influenced by attitudes, preferences, and
cognitions.

CONSUMER-ROOTED SEGMENTATION BASES

 Consumer Segmentation Bases:

o Segmenting based on personal attributes, including facts and cognitions.
 o Personal attributes can be both objective (e.g., demographics) and subjective (e.g.,
psychographics).
 Demographic Segmentation:
o Utilizes factual and measurable attributes like age, gender, marital status, and
income.
o Age is critical for marketing products and services.
o Gender has traditionally influenced product design.
o Lifestages, marital status, and family life cycles play a role in segmentation.
o Income, education, and occupation are correlated and help distinguish market
segments.
o Social class is based on a weighted index of education, occupation, and income.
 Geographic Segmentation:
o Geographic location affects consumption behaviour.
o Climates impact clothing choices.
o Geographical destinations can create market segments.
o Geographic segmentation relies on the premise that similar locations lead to similar
preferences and habits.
 Living Standard Measures (LSM):
o LSM classification is based on wealth and living standards, not just income.
o The SAARF LSM is widely used in South Africa.
o It divides the population into 10 groups based on living standards.
 Personality Traits:
o Personality tests can identify traits affecting consumer behaviour.
o Open-minded individuals may be consumer innovators.
 Lifestyles (Psychographics):
o Consist of activities, interests, and opinions (AIOS).
o Psychographics are widely used in segmentation.
o VALS combines lifestyles and values for segmentation.
 Socio-Cultural Values and Beliefs:
o Cultural and sub-cultural values and beliefs can be used for segmentation.
o Different cultural groups may have distinct preferences and customs.
o Cross-cultural marketing segmentation considers global markets and cultural
diversity.
o Global markets may share some product preferences but also require adaptations
based on local cultures.

CONSUMPTION-SPECIFIC SEGMENTATION BASES

 Consumption-Specific Bases for Segmentation:

o Include actual consumption behaviour and consumer cognitions (attitudes,
preferences).
o Segmentation based on usage behaviour: Usage rate, awareness, involvement.
o Segmentation based on usage situation.
o Benefit segmentation and brand loyalty also serve as consumption-specific
segmentation bases.
 Usage Rate Segmentation:
o Divides consumers into heavy, medium, light users, and non-users.
o Identifies the proportion of heavy users who account for a significant share of total
product consumption.
 o Common strategy is targeting heavy users, but it may require costly advertising.
o Some marketers target light and medium users with unique products to differentiate.
 Usage Situation Segmentation:
o Considers the context or situation in which consumers make purchasing decisions.
o Occasions significantly influence consumer choices.
o Many products are promoted for specific usage occasions, e.g., greeting cards for
holidays.
 Benefit Segmentation:
o Focuses on the benefits consumers seek from products and services.
o Identifying unique and prominent benefits leads to brand loyalty.
o Used to develop positioning strategies that guide the marketing mix.
 Media Benefits:
o Understand the benefits consumers seek from different media channels.
o Helps tailor advertising effectively, recognizing the unique characteristics of each
medium.
 Brand Loyalty:
o Comprises behavioural and attitudinal components.
o Behavioural loyalty involves consistent brand purchases.
o Attitudinal loyalty reflects a consumer's commitment to the brand.
o Applications include frequency award programs targeting loyal consumers.
o Brand switchers may respond well to coupons and price cuts.
o Consumer innovators, a key target for new products, tend not to be brand loyal.

IMPLEMENTING SEGMENTATION STRATEGIES

 Targeting Strategies:
o Behavioural Targeting: Using historical behaviour data to send customized promotions
to loyal customers.
o Micro-Targeting: Aggregating individuals into small groups using data from multiple
sources to deliver tailored messages.
o Concentrated Targeting: Targeting a small group with a niche product or service.
o Differentiated Targeting: Developing various marketing mixes for different market
segments.
o Counter-Segmentation: Revising segmentation and targeting strategies due to market
changes.
 Behavioural Targeting:
o Uses historical behaviour data to target loyal customers.
o Can include tracking purchase history and offering customized promotions.
o Behavioural targeting can also involve tracking online behaviour, such as websites
visited, for personalized ads.
 Micro-Targeting:
o Aggregates individuals into small groups based on data from multiple sources.
o Delivers personalized messages through narrowcasting via email, mobile devices, or
door-to-door presentations on small screens.
o Utilizes diverse data sources, including voting records, demographics, tax records, and
more.
 Concentrated Targeting:
o Targets a small group of people, often for niche products or services.
 Differentiated Targeting:
o Develops various marketing mixes for different market segments.
o For example, Colgate may target different market segments with age-based or
behaviour-based segmentation.
  Counter-Segmentation:
o Periodically revaluates segmentation and targeting strategies.
o Combines segments with similar needs or characteristics into one segment when some
segments have contracted or changed.
o Used to adjust marketing strategies to evolving market conditions.

CHAPTER 4
MOTIVATION AS A PSYCHOLOGICAL FORCE
 What drives you to attend lectures and study further? Why do people dress in a certain way?
All of this can be linked to motivation, which is the driving force within you and me that
leads to action. We all have needs, and needs must be satisfied.

NEEDS

 Innate needs – physiological (i.e., biogenic); they include the needs for food, water, air,
clothing, shelter and sex.
 Primary needs – needs needed to sustain biological life, the biogenic needs are considered
primary needs or motives.
 Acquired needs – are needs that we learn in response to our culture or environment. These may
include needs for self-esteem, prestige, affection, power and learning.
 Secondary needs – acquired needs are considered secondary needs, they are generally
psychological.

GOALS

 Goals in Consumer Behaviour:

o Goals are the desired outcomes of motivated behaviour.
o Goals can be generic (general categories of goals) or product-specific (specifically
branded products or services).
o Marketers focus on product-specific goals as consumers select products to fulfil their
needs.
 Goal Selection:
o Individual goal selection depends on personal experiences, physical capabilities, cultural
norms, and goal accessibility in the physical and social environment.
o Goals can be positive (approach goals) or negative (avoidance goals).
o Positive goals are pursued, while negative goals are avoided.
o Goal objects must be socially acceptable and physically accessible.
 Relationship Between Needs and Goals:
o Needs and goals are interdependent, with goals serving as the means to fulfil needs.
o People are often more aware of their goals than their underlying needs.
o Needs can be physiological (e.g., hunger, thirst) or psychological (e.g., acceptance, self-
esteem).
o Behaviour is directed towards satisfying both physiological and psychological needs,
whether consciously or subconsciously.

RATIONAL VERSUS EMOTIONAL MOTIVES

 Rational vs. Emotional Motives:

o Some consumer behaviourists differentiate between rational and emotional motives.
o Rational motives involve objective criteria like size, weight, or price.
o Emotional motives involve personal or subjective criteria like pride, fear, affection, or
status.
o Emotional motives can impact consumers' responses to advertising and product choices.
  Complexity of Motivation:
o Recent studies highlight the complexity of rational and emotional motivation in
consumption.
o Emotional triggers, such as the word "Free," can lead to seemingly irrational buying
behaviour.
o Ambiguous information about a product can lead to increased post-purchase happiness,
known as the "blissful ignorance effect."
 Perceived Rationality:
o What may seem irrational to an outsider can be entirely rational within an individual's
psychological context.
o Personal goals and motivations can lead individuals to make decisions that appear
irrational to others, depending on their cultural or personal values.

THE DYNAMICS OF MOTIVATION

 Consumer Dissatisfaction and Evolving Needs:

o Consumers are never completely satisfied; they continually desire something better or
bigger.
o As one need is fulfilled, new needs emerge.
o For example, as one progresses in their career, they may aspire to upgrade their mode of
transportation from their current vehicle to a brand-new car.
o Upon researching and comparing prices, financial constraints may lead them to consider
more economical options or feel frustrated.
o Consumer choices are influenced not only by practical considerations but also by the
desire for status symbols.

NEEDS ARE NEVER FULLY SATISFIED

 Most human needs remain unsatisfied or are only temporarily fulfilled.

 Basic needs like hunger and the need for companionship and approval are regularly sought.
 Complex psychological needs, like the need for power, may be partially satisfied but often
require further pursuit for full satisfaction.
 Temporary goal achievement may not adequately satisfy these needs, leading individuals to
strive for more complete fulfilment.

NEW NEEDS EMERGE AS OLD NEEDS ARE SATISFIED

 Hierarchy of Needs Theory:

o Some motivational theorists propose a hierarchy of needs.
o Lower-order needs, like basic physiological needs, are prioritized first and pursued.
o As lower-order needs are fulfilled, individuals may shift their focus to higher-order
needs.
o Example: A person with well-satisfied physiological needs may seek acceptance in the
community, followed by recognition and status through activities like fund-raising or
acquiring more significant assets.

SUCCESS AND FAILURE INFLUENCE GOALS

 Goals and Aspiration:

o Successful individuals often set new and higher goals for themselves, raising their levels
of aspiration.
o Failure to achieve goals may lead to lowering aspirations.
 o Success and failure influence goal selection.
o Marketing Implications: Goals should be reasonably attainable, and advertisements
should not overpromise.
 Substitute Goals:
o When individuals can't attain a primary goal, they may pursue substitute goals.
o Substitute goals may not be as satisfying as primary goals but can alleviate tension.
o Continued deprivation can lead to substitute goals taking priority.
o Examples include switching from full cream to skim milk or choosing a less expensive
car.
 Frustration:
o Failure to achieve a goal results in frustration.
o Frustration can arise from personal or environmental barriers.
o People react differently to frustration: some adapt, and others may view it as personal
failure.
o Products can offer solutions to frustrating situations, like vacuum-sealing machines for
preserving food.
 Defence Mechanisms:
o When people can't cope with frustration, they may use defence mechanisms to protect
their self-image.
o Examples of defence mechanisms include aggression, rationalization, regression,
withdrawal, projection, daydreaming, identification, and repression.
o Marketers may consider these mechanisms when crafting advertising appeals to help
consumers overcome their frustrations.

DEFENCE MECHANISM DUSCRIPTION & ILLUSTRATION

Aggression In a response to frustration, individuals may
resort to aggressive behaviour in an attempt to
protect their self-esteem
Rationalisation Resolve frustration by inventing a plausible
reason for being unable to attain their goals or
deciding that the goal is not really worth
pursuing
Regression An individual may react to a frustrating
situation with childish or immature behaviour.
Withdrawal Frustration may be resolved by simply
withdrawing from the situation.
Projection An individual may redefine a frustrating
situation by projecting blame for his or her
own failures and inabilities on other objects or
persons.
Daydreaming Daydreaming or fantasising, enables the
individual to attain imaginary gratification of
unfilled needs
Repression Another way that individual avoid the tension
arising from frustration is by repressing the
unsatisfied need. Thus, individuals may force
the need out of their conscious awareness.

MULTIPLICITY OF NEEDS AND VARIATION OF GOALS

  Multiple Needs and Goals:
o Consumer behaviour often serves multiple needs.
o Specific goals are selected to fulfil various needs.
o For example, clothing serves protection, modesty, and social needs like acceptance.
 Inference of Motives:
o Motives cannot be accurately inferred from behaviour alone.
o People with different needs may pursue the same goal for different reasons.
o People with the same needs may seek fulfilment through different goals.
o Example: Different reasons for joining a neighbourhood watch.
o Example: Various ways individuals fulfil an ego need, from professional advancement to
dance lessons.

AROUSAL OF MOTIVES

Arousal of Specific Needs:

o Specific needs are not always active but can be dormant.

o Arousal of needs can be triggered by various factors:
 Physiological Arousal:
o Bodily needs are based on an individual's current physiological state.
o Examples: Hunger triggered by low blood sugar, warmth need due to a decrease in body
temperature.
o Often involuntary and lead to discomfort until satisfied.
o Example: Feeling cold prompts turning on a heater and considering buying warm
clothing.
 Emotional Arousal:
o Daydreaming can stimulate latent needs.
o Boredom or frustration may lead to daydreaming, which awakens dormant needs.
o Examples: Imagining a romantic relationship leading to activities like online dating or
singles' bars.
 Cognitive Arousal:
o Random thoughts or external cues can lead to awareness of needs.
o Advertisements are designed to arouse needs.
o Example: An ad reminding of home can trigger a need for communication.
 An enriched environment offers more opportunities for need arousal.
 Television exposure can arouse needs but may also frustrate those with limited means,
education, or hope.
 Theories of Motivation:
o Two philosophies regarding the arousal of human motives:
o Behaviourist School:
▪ Sees motivation as a mechanical process.
▪ Behaviour is seen as a response to external stimuli, and conscious thought is
ignored.
▪ Example: Impulse buyers who react to in-store stimuli.
o Cognitive School:
▪ Believes all behaviour is directed at goal achievement.
▪ Needs and past experiences are reasoned and transformed into attitudes and beliefs,
which guide actions.
▪ Individuals act purposefully to satisfy needs based on their cognitive control.
TYPES AND SYSTEMS OF NEEDS
Various types and systems of needs are discussed. However, focus on Maslow's hierarchy of needs.
You have already been introduced to it in previous modules.

MASLOW'S HIERARCHY OF NEEDS

 Maslow's Hierarchy of Needs:

o Developed by Dr. Abraham Maslow, this theory outlines a hierarchy of human needs.
o The hierarchy consists of five basic levels of human needs, ordered from lower to higher:
1. Physiological Needs: Basic needs to sustain biological life, such as food, water,
shelter, and sex.
2. Safety Needs: Concerned with physical safety, as well as order, stability, routine, and
control over one's life.
3. Social Needs: Involves love, affection, belonging, and acceptance, emphasizing
human relationships.
4. Egoistic Needs: Focused on self-acceptance, self-esteem, success, independence,
prestige, reputation, status, and recognition.
5. Need for Self-Actualization: The desire to fulfil one's potential and become
everything one is capable of becoming.
 The theory posits that individuals seek to satisfy lower-level needs before higher-level needs
emerge.
 Unsatisfied needs serve as motivation for behaviour, and when a need is "fairly well"
satisfied, a higher need emerges.
 If a lower-level need experiences renewed deprivation, it may become dominant
temporarily.
 Self-actualization represents the desire to fulfil one's potential and is expressed uniquely by
different individuals.

AN EVALUATION OF THE NEED HIERARCHY AND MARKETING APPLICATIONS

 Maslow's Hierarchy of Needs and Marketing:

o Maslow's theory outlines a hierarchy of human needs with five levels, and it posits that
dissatisfaction, not satisfaction, motivates behaviour.
o The hierarchy has been widely accepted as it aligns with the motivations of many people
in society and encompasses various individual needs.
o However, a major limitation is that it can't be empirically tested to determine when one
need level must be satisfied before the next higher need becomes operative.
o The theory is closely tied to Western culture.
 Applications in Marketing:
o The hierarchy offers a valuable framework for South African marketers to develop
advertising appeals and product positioning.
o It can be used in market segmentation and promotional strategies.
o Marketers can align their appeals with the need level likely to be shared by their target
audience.
 Consumer Goods and Needs:
o Various consumer goods align with different need levels, making them suitable for
satisfying specific needs.
o Examples include health foods, insurance, personal care products, high-tech items,
postgraduate education, and more, catering to physiological, safety, social, ego, and self-
fulfilment needs.
o Web design for hedonic and utilitarian products can take social needs into account.
 o This adaptability allows marketers to offer products and appeals that cater to a wide
range of consumer needs.

TRIO OF NEEDS

 Power Need:
o It relates to the desire to control one's environment, including other people and objects.
o Exercising power often boosts an individual's self-esteem, similar to Maslow's ego needs.
 Affiliation Needs:
o These needs emphasize the importance of friendship, acceptance, and belonging.
o Similar to Maslow's social needs, they strongly influence consumer behaviour.
 Achievement Needs:
o Those with a strong achievement need focus on personal accomplishment as a primary
goal.
o These needs are closely related to both egoistic and self-actualization needs.
o Individuals with high achievement needs tend to be self-confident, risk-takers, and
proactive in researching their environments.
o Monetary rewards are a valuable form of feedback for them.
o High achievement is a useful promotional strategy for products and services targeting
educated and affluent consumers.

CHAPTER 5
WHAT IS PERSONALITY

 Approaches to Personality Study:

o The study of personality involves various approaches:
o Influence of heredity and early childhood experiences on personality development.
o Broader social and environmental influences on continuous personality development.
o Views on personality as a unified whole or focusing on specific traits.
 Defining personality as inner psychological characteristics that determine and reflect an
individual's responses to their environment.
 Emphasis on inner characteristics, attributes, traits, factors, and mannerisms that
differentiate individuals.
 Personality traits impact consumer product choices, responses to marketing efforts, and
consumption behaviours.
 Identifying personality characteristics aids in developing effective market segmentation
strategies in conjunction with other insights.

THE NATURE OF PERSONALITY

 Central Properties of Personality:

o Three key properties central to the study of personality:
▪ Personality reflects individual differences, as each person's personality is a unique
combination of traits.
▪ Personality is consistent and enduring, displaying stability over time.
▪ Personality can change, influenced by various life events and the maturing process.
 Personality Reflects Individual Differences:
o Personality enables the categorization of consumers into different groups based on one
or multiple traits.
 o If everyone had entirely different personalities, consumer segmentation would be
challenging.
 Personality is Consistent and Enduring:
o Consumer personalities tend to be consistent and stable, as indicated by anecdotes about
enduring personality traits.
o Marketers cannot change consumers' personalities but can appeal to relevant traits
when designing products or campaigns.
o Consumer behaviour can still vary due to psychological, socio-cultural, environmental,
and situational factors.
 Personality Can Change:
o Major life events and gradual maturation can lead to changes in an individual's
personality.
o These changes can impact consumption behaviour, providing a competitive advantage
for marketers.

THEORIES OF PERSONALITY
This section reviews three major theories of personality: (1) Freudian theory, (2) neo-Freudian
theory and (3) trait theory. These theories have been chosen for discussion from
among many theories of personality because each has played a prominent role in the
study of the relationship between consumer behaviour and personality.

1. FREUDIAN THEORY
 Sigmund Freud's Psychoanalytic Theory:
o Freud's theory of personality focuses on unconscious needs and drives as the basis of
human motivation and personality.
o Constructed based on patient recollections of early childhood experiences, dream
analysis, and mental/physical adjustment problems.
 Three Interacting Systems of Personality:
o Human personality consists of three interacting systems:
▪ Id: Represents primitive and impulsive drives seeking immediate satisfaction
(pleasure principle).
▪ Superego: Internal expression of society's moral and ethical codes, guiding
socially acceptable behaviour (morality principle).
▪ Ego: Acts as a conscious control, balancing id's impulsive demands with
superego's constraints (reality principle).
o These systems collectively shape personality.
 Stages of Development:
o Freud proposed several stages of infant and childhood development, including oral,
anal, phallic, latent, and genital stages.
o Personality development is influenced by how well one copes with crises in these stages,
particularly during the first three stages.
 Freudian Theory and 'Product Personality:
o Researchers apply Freud's theory to consumer personality studies, emphasizing the
unconscious nature of human drives.
o Consumer purchases and consumption are seen as reflections and extensions of the
individual's personality.
o Appearance, possessions, and product choices are considered expressions of personality.
 Example:
 o Vuyo's interest in a Land Rover Discovery unconsciously links the car to his own
personality traits, such as being adventurous and sensation-seeking.
o Successful brand communication that mirrors these traits could make Vuyo identify with
the brand and consider the Discovery for purchase.

2. NEO-FREUDIAN PERSONALITY THEORY

 Neo-Freudian Perspectives on Personality:
o Freud's colleagues disagreed with his emphasis on instinctual and sexual aspects of
personality.
o Neo-Freudians believed social relationships play a fundamental role in personality
development.
 Alfred Adler's Views:
o Adler emphasized that individuals seek to attain rational goals, which he referred to as
the "style of life."
o He focused on the individual's efforts to overcome feelings of inferiority by striving for
superiority.
 Harry Stack Sullivan:
o Sullivan stressed people's continuous efforts to establish significant and rewarding
relationships with others.
o He was concerned with reducing tensions like anxiety in social interactions.
 Karen Horney's Personality Groups (CAD):
o Horney classified individuals into three personality groups based on their desires:
▪ Compliant: Move toward others, desiring love, appreciation, and acceptance.
▪ Aggressive: Move against others, seeking excellence, admiration, and feelings
of superiority.
▪ Detached: Move away from others, desiring independence, self-reliance, and
freedom from obligations.
 Personality Test (CAD) in Consumer Behaviour:
o A personality test based on Horney's theory (the CAD) has been developed and tested in
the context of consumer behaviour.
o Recent research suggests that individuals with detached personalities are less likely to be
brand loyal and more likely to try different brands.
 Marketing Applications:
o Many marketers intuitively use Neo-Freudian theories in their strategies.
o Marketers may position products or services as opportunities to belong or be
appreciated by others, aligning with Horney's characterization of the compliant
individual.
 Example:
o An advertisement by Newgroup Investments cautions against compliance and emotional
decisions in investment, encouraging independent and objective advice.

3. TRAIT THEORY
 Trait Theory in Personality Study:
o Trait theory departs from qualitative measures in Freudian and Neo-Freudian
approaches.
o It is primarily quantitative and empirical, focusing on measuring personality through
specific traits.
o A trait is defined as a relatively enduring way individuals differ from one another.
 o Trait theorists construct personality tests (inventories) to pinpoint individual differences
in terms of traits.
 Single-Trait Personality Tests:
o Tailor-made personality tests are used in consumer behaviour studies to measure
specific traits.
o Examples of measured traits include consumer innovativeness, consumer materialism,
and consumer ethnocentrism.
 Linking Personality Traits to Consumer Behaviour:
o Trait researchers often find that personality traits are more closely associated with
purchase or consumption behaviour at the product category level rather than specific
brands.
o Relationships exist between personality traits and choices like impulse buying and
consumption of broad product categories such as fast food.

BRAND PERSONALITY

PRODUCT ANTHROPOMORPHISM

 Anthropomorphism Definition:
o Anthropomorphism involves attributing human characteristics to non-human entities.
 Factors Affecting Anthropomorphism:
o Ease of anthropomorphism depends on product presentation and the presence of
human-like features.
o Products appearing human but lacking human attributes receive less favourable
consumer evaluations.
 Marketers and Anthropomorphism:
o Marketers encourage anthropomorphism by giving products a personality.
o Examples include Rice Krispies (Snap, Crackle, and Pop) and Simba Chips.
o Some individuals also anthropomorphize objects like cars and computers.

BRAND PERSONIFICATION

 Marketers create a brand personification to reshape consumer perceptions of a product or

service, giving it human-like characteristics.
 Consumer research often relates well-known brands to personalities, and understanding
these associations is crucial for marketing.
 Brand Personality Framework:
o A brand personality framework identifies five defining dimensions: sincerity,
excitement, competence, sophistication, and ruggedness.
o There are 15 facets of personality linked to these dimensions, such as down-to-earth,
daring, reliable, upper class, and outdoors.
 Example:
o Mr. Min cleaning products are viewed as dependable and reliable, which aligns with
their brand personality.
PRODUCT PERSONALITY AND GENDER

 Product Gender Persona:

o Products or brands are often associated with a gender persona, such as masculine or
feminine characteristics.
o Some products, like Mr Min and Mr Muscle, are given a masculine personality, while
others, like Ouma Rusks, have a feminine persona.
 Marketplace Gender Perceptions:
o Products and services are commonly perceived as having gender by consumers.
o Gender perceptions in the marketplace can affect consumer behaviour and product
choices.
 Example:
o New Zealand males may face conflicts when buying grooming products due to their
traditional association with females. They create unwritten rules for product choices and
packaging colours based on societal expectations.
 Marketing Implications:
o Marketers can use knowledge of a product's perceived gender to tailor visuals and text
copy in marketing messages.

PRODUCT PERSONALITY AND GEOGRAPHY

 Geographical Association:
o Certain products are strongly associated with specific geographical regions in
consumers' minds, such as Montagu dried fruit and Simonsberg Cheese.
 Geographic Personality:
o Marketers create a geographic personality for a product by using geography in the
product's name.
 Geographic Equity:
o Geographic personality can lead to geographic equity, meaning the brand is strongly
associated with a particular location in consumers' memory.
 Familiarity of Geographic Brand Names:
o Geographic brand names can be either familiar or unfamiliar (fictitious).
o Familiar names, like Ceres Fruit Juice, are real and based on actual locations where the
product originates.
 Brand Equity Enhancement:
o The key is whether the location and its image add value to the product's brand equity.
o Examples like Durbanville Hills wines, Simonsberg cheese, and Montagu dried fruit use
real place names that enhance brand equity.
PERSONALITY AND COLOUR

 Colour and Personality Traits:

o Consumers associate personality traits with specific colours, like red connoting
excitement, yellow indicating novelty, and black often symbolizing sophistication.
 Colour Combinations for Brand Persona:
o Brands use colours strategically to create a specific persona or image.
o Black combined with gold is used for an upscale or premium image.
o Black and white suggest careful engineering, high tech, and sophisticated design.
 Examples of Colour Use:
o Lenovo Thinkpad uses black with a red button to imply advanced technology.
o Nike uses black, white, and red for performance sports shoes.
o Fast-food restaurants use bright colours (red, yellow, blue) for fast service and
inexpensive food.
o Fine dining restaurants use soft, pale colours for leisurely service.
o Blue is associated with respect, power, and authority; used by financial institutions and
masculine products.
 Legal Considerations:
o Specific shades of colours can be registered as trademarks, but it may be legally
challenging.
o Marketers must adhere to legal requirements when using colours in branding.

SELF AND SELF-IMAGE

 Consumer Self-Image:
o Consumers have a self-image that is closely associated with their personality.
o Self-images are linked to the products and brands individuals choose, aiming to enhance
their self-concept.
o Consumers seek to depict themselves through brand choices that align with their self-
images.
 Multiple Self-Images:
o Consumers often have multiple self-images, each associated with different aspects of
their personality.
 Makeup of Self-Image:
o The self-image is influenced by personality, values, lifestyle, and social factors.
o Extended Self:
▪ The concept of the extended self involves how consumers' possessions and
product choices become an integral part of their self-identity.
o Altering Self-Image**:
▪ Consumers have the potential to change or adjust their self-images based on
their experiences, behaviours, and interactions with products and brands.

ONE OR MULTIPLE SELVES

 Consumer Multiple Selves:

o Historically viewed as having a single self-image.
o More accurate to consider consumers having multiple selves.
o Individuals act differently in various situations and roles.
 Consumer Behaviour Implications:
o Marketers should target products/services based on specific selves.
o Different selves react differently to persuasive communication.
 Makeup of Self-Image:
 o Each individual has a unique self-image influenced by background and experience.
o Developed through interactions with parents and others over the years.
 Self-Image and Brand Connections:
o Evidence suggests brand connections increase with age.
o Formed between middle childhood and early adolescence.
o Brands viewed as connected to self-concept in adolescence.
 Symbolic Value of Products and Brands:
o Products and brands evaluated based on consistency with self-images.
o Consumers preserve/enhance self-images by selecting congruent products.
 Brand Preference and Self-Image:
o Consumers prefer products matching their self-image.
o Strong links to brands create a positive self-brand connection.
 Consumer Loyalty and Satisfaction:
o Self-image congruency is crucial for customer satisfaction and loyalty.
o Congruence between self-image and brand personality increases brand loyalty.
 Types of Self-Images Recognized:
o Actual self-image (how consumers see themselves).
o Ideal self-image (how consumers want to see themselves).
o Social self-image (how others see them).
o Ideal social self-image (how consumers want others to see them).
o Expected self-image (future-oriented combination of actual and ideal self-images).
o Ought-to self (traits or characteristics seen as duty or obligation).
 Strategic Implications for Marketers:
o Marketers can segment markets based on consumer self-images.
o Products or services positioned as symbols of relevant self-images.
o Marketing strategy aligned with consumer needs and self-images.
o Brand equity theory emphasizes the value inherent in a brand name based on experiences
(purchase, usage, advertising, promotion).

THE EXTENDED SELF

 Interrelationship Between Self-Images and Possessions:

o Consumers' possessions confirm or extend their self-images.
o Acquiring desired items enhances self-image (e.g., a trendy cellular phone).
o Loss or theft of possessions can impact emotional well-being (e.g., stolen watch).
 Emotional Connection to Valued Possessions:
o Human emotion linked to valued possessions.
o Possessions considered extensions of the self.

Ways Possessions Extend the Self:

 Actual Extension:
o Enables tasks difficult or impossible without them (e.g., using a computer for problem-
solving).
 Symbolic Extension:
o Makes a person feel better or 'bigger' (e.g., receiving an award for excellence).
 Status or Rank Conferral:
o Confers status or rank (e.g., ownership of a rare work of art among collectors).
 Feelings of Immortality:
 o Leaving valued possessions to young family members extends the self.
 Magical Powers Endowment:
o Certain possessions, like inherited cuff links, perceived as magic amulets with special
powers (e.g., bestowing good luck when worn).

ALTERING THE SELF

 Self-Alteration through Products and Accessories:

o Consumers use clothing, grooming aids, cosmetics, and accessories for self-modification.
o These products offer opportunities to:
▪ Create a new self.
▪ Maintain the existing self.
▪ Extend the self.
▪ Conform to or imitate a specific person or identity (e.g., pop star, business
executive).
 Expressing Individualism and Uniqueness:
o Consumers use self-altering products to express individualism and uniqueness.
 Relationship to Personal Vanity:
o Vanity associated with acting self-important, self-interested, or admiring one's
appearance or achievements.
o Researchers investigate physical vanity (concern for physical appearance) and
achievement vanity (concern for personal achievements).
o Both types of vanity are related to materialism, cosmetic use, clothing concern, and
country club membership.
 Self-Monitoring as a Moderating Variable:
o Self-monitoring influences how individuals respond to situational cues.
o Low self-monitors are guided by inner feelings.
o High self-monitors adapt behaviour based on different situations and people.
o High self-monitors may use self-altering products to enhance ideal social self-image.
 Methods of Self-Alteration:
o Altering appearance or body parts can involve:
▪ Cosmetics.
▪ Hair extensions.
▪ Restyling or colouring.
▪ Tattoos.
▪ Switching eyewear.
▪ Contact lenses or cosmetic surgery.

VIRTUAL PERSONALITY OR SELF

 Online Chat Rooms and Social Media:

o Widespread interest in using the internet for entertainment and socializing.
o Growth in online chat rooms and social media platforms like Facebook and Twitter.
 Real-time Conversations and Global Connections:
o Participants engage in real-time conversations with people worldwide.
o Discuss personal interests and topics of mutual interest.
 Text-Based Conversations and Identity Exploration:
o Most chats are text-based, not live video broadcasts.
o Participants can't see each other, creating an opportunity for identity exploration.
  Identity Changes in Online Chats:
o Participants can try out new identities or change existing ones.
o Examples include 'gender swapping,' changing age, marital status, profession, body
image, and personality traits.
 Virtual Personality and Self-Exploration:
o Concept of a virtual personality or virtual self.
o Allows individuals to experiment with different personalities or identities, similar to
trying on outfits in a store.
 Consumer Behaviour Implications:
o Trying out new personalities online may influence purchase behaviour.
o Marketers have opportunities to target various online personas or "online selves."

CHAPTER 6
SENSORY DYNAMICS OF PERCEPTION
 Perception is defined as 'the process by which an individual selects, organises, and
interprets stimuli into a meaningful and coherent picture of the world' It can be described
as 'how we see the world around us? Two individuals may be exposed to the same stimuli
under the same apparent conditions, but how each person recognises, selects, organises and
interprets these stimuli is a highly individual process based on each person’s own needs,
values and expectations.
1. SENSATION
 Sensation Overview:
o Immediate and direct response of sensory organs to stimuli.
o Stimuli are units of input to the senses, such as products, packages, brand names,
advertisements.
 Sensory Receptors:
o Human organs (eyes, ears, nose, mouth, and skin) receiving sensory inputs.
o Functions include seeing, hearing, smelling, tasting, and touching.
 Human Sensitivity:
o Refers to the experience of sensation.
o Varies with the quality of sensory receptors and the intensity of stimuli exposure.
 Energy Change and Sensation:
o Sensation depends on energy change in the environment where perception occurs.
o A bland, unchanging environment provides little or no sensation.
 Detecting Changes in Input:
o In environments with high sensory input, small changes may go unnoticed.
o Decreasing sensory input increases the ability to detect changes, reaching maximum
sensitivity in minimal stimulation conditions.
 Adaptation and Sensitivity Levels:
o Human organism adapts to varying sensitivity levels based on external conditions.
o Provides more sensitivity when needed and protects against excessive or irrelevant
stimulation.
2. THE ABSOLUTE THRESHOLD
 Absolute Threshold:
o The lowest level at which an individual can experience a sensation.
 o It's the point where a person can detect a difference between 'something' and 'nothing'
for a particular stimulus.
 Illustration of Absolute Threshold:
o Example: The distance at which a driver can notice a specific billboard on a highway is
their absolute threshold.
 Variability in Absolute Threshold:
o Different individuals may have different absolute thresholds for the same stimulus.
o Two people may detect a stimulus (e.g., a billboard) at different distances.
 Effects of Constant Stimulation:
o Under constant stimulation, like driving through a corridor of billboards, absolute
threshold increases (senses become dulled).
o Continuous exposure leads to reduced noticeability; we "get used to" stimuli.
 Adaptation in Perception:
o Adaptation refers to getting used to specific sensations and becoming accommodated
to a certain level of stimulation.
o For example, people adapt to sensations like hot baths, cold showers, or bright sunlight
over time.
 Sensory Adaptation in Advertising:
o Advertisers face the challenge of sensory adaptation, where consumers might get used
to their ads.
o Regularly changing advertising campaigns is an attempt to prevent consumers from
becoming desensitized and to ensure continued noticeability.
3. THE DIFFERENTIAL THRESHOLD

Differential Threshold (J.N.D.):

 The minimal difference between two similar stimuli that can be detected.
 Also known as the just noticeable difference (j.n.d.).

Weber's Law:

 Discovered by Ernst Weber in the 19th century.

 States that the j.n.d. is not an absolute amount but relative to the intensity of the first
stimulus.
 Stronger initial stimuli require a greater additional intensity for the second stimulus to be
perceived as different.

Illustration of Weber's Law:

 Example: Price increase of 25 cents in a liter of premium orange juice may not be noticed
(below j.n.d.), but a 50 cent increase in 500 ml of milk might be significant.

Marketing Applications of J.N.D.:

 Avoiding Negative Changes:

o Keep negative changes (e.g., reductions in size or quality, or price increases) below the
j.n.d. to avoid detection by the public.
 Highlighting Product Improvements:
o Ensure product improvements are apparent to consumers without being wastefully
extravagant (at or just above the j.n.d.).
 Determining Product Improvement Amount:
 o Marketers use the j.n.d. to determine the amount of improvement needed in products.
o Less than the j.n.d. is wasted effort; more than the j.n.d. is wasteful.
 Managing Price Increases:
o Keep price increases below the j.n.d. to avoid consumer notice.
o Some companies maintain prices but reduce product quantity to effectively increase per
unit price.
 Updating Package Designs:
o When updating package designs, make small changes below the j.n.d. to maintain
consumer recognition.

Strategic Considerations:

 Use the j.n.d. to ensure consumer perception of improvements and manage changes in
product size, quality, and price.

4. SUBLIMINAL PERCEPTION
 Subliminal Perception:
o Process where stimuli are perceived below the level of conscious awareness.
o Stimuli are too weak or brief to be consciously seen or heard but can be perceived by
receptor cells.
o Referred to as subliminal perception because it is below the threshold of conscious
awareness.
 Supraliminal Perception:
o Perception of stimuli above the level of conscious awareness.
o Also known as perception.
 Effectiveness of Subliminal Persuasion:
o Despite studies since the 1950s, no evidence supports subliminal advertising persuading
people to buy goods or services.
o Comprehensive literature review suggests no impact on attitudes or consumption
behaviour.
o Recent laboratory study: Subjects exposed to Apple logo subliminally scored higher on a
creativity test than those exposed to IBM logo or no logo.
o Interpretation: Some believe a brand can enhance performance.

ELEMENTS OF PERCEPTION
Perception Elements:

 Individuals do not perceive products, brands, or advertising uniformly.

 Different ways of organizing information and stimuli.
 Understanding perception involves various elements.

Principles of Perception:

 Sensory input alone doesn't explain the coherent world picture adults possess.
 Perception involves subconscious addition or subtraction from raw sensory inputs.
 Sensory world has countless changing sensations, but individuals block or adapt to intensive
stimulation.

Two Inputs of Perception:

 Physical stimuli from the outside environment.

 Inputs from individuals in the form of predispositions (expectations, motives, learning) based
on previous experience.
 The interaction of these inputs forms a unique, personal picture of the world for each
individual.

Uniqueness of Perception:

 Each person's experiences, needs, wants, desires, and expectations are unique.
 No two people see the world in precisely the same way.

Selective Perception:

 Individuals are selective in recognizing stimuli.

 Subconscious organization of recognized stimuli based on psychological principles.

Perceptual Processes:

 Perceptual selection: Selective recognition of stimuli.

 Perceptual organization: Subconscious organization of recognized stimuli.
 Interpretation of stimuli: Giving subjective meaning based on personal needs, expectations,
and experiences.

A. PERCEPTUAL SELECTION
 Selective Perception Overview:
o Consumers subconsciously select stimuli from their environment.
o Only a small fraction of exposed stimuli is perceived.
o Selectivity allows individuals to navigate complex environments efficiently.
o Factors Influencing Selectivity:
o Consumers' previous experience and expectations shape what they are prepared to see.
o Motives, needs, desires, and interests at the time of exposure influence stimulus
perception.
 Nature of the Stimulus:
o Marketing stimuli involve various variables (product nature, physical attributes,
packaging, brand name, advertisements).
o Contrast is a compelling attribute for attention.
 o Differentiation through contrast is used in advertising and packaging.
 Expectations:
o People tend to see what they expect based on familiarity, previous experience, or
preconceived expectations.
o Stimuli conflicting with expectations often receive more attention.
 Motives:
o Individuals are more likely to notice stimuli relevant to their needs and interests.
o Stronger needs lead to greater attention, while irrelevant stimuli are ignored.
 Selective Perception Concepts:
1. Selective Exposure:
a. Consumers actively seek pleasant or sympathetic messages and avoid painful or
threatening ones.
2. Selective Attention:
a. Consumers exercise selectivity in the attention given to commercial stimuli.
3. Perceptual Defence:
a. Consumers subconsciously screen out psychologically threatening stimuli, reducing
conscious perception.
4. Perceptual Blocking:
a. Consumers protect themselves by tuning out and blocking stimuli from conscious
awareness to avoid overload.

PERCEPTUAL ORGANISATION
 People do not experience the numerous stimuli they select from the environment as
separate and discrete sensations; rather, they tend to organise them into groups and
perceive them as unified wholes. Thus, the perceived characteristics of even the simplest
stimulus are viewed as a function of the whole to which the stimulus appears to belong. This
method of perceptual organisation simplifies life considerably for the individual.
 The principles underlying perceptual organisation are often referred to by the name Gestalt
psychology. (Gestalt, in German, means 'pattern or configuration.) Three of the most basic
principles of perceptual organisation are figure and ground, grouping and closure.

FIGURE AND GROUND

 Contrast in Stimuli Perception:

o Stimuli contrasting with their environment are more likely to be noticed.
o Examples include louder or softer sounds and brighter or paler colours.
 Visual Illustration of Contrast:
o A figure on a ground (background) creates contrast.
o The figure is perceived more clearly, well-defined, solid, and in the forefront.
o The ground is perceived as indefinite, hazy, and continuous.
o The common line separating figure and ground is attributed to the figure, enhancing
definition.
 Figure-Ground Concept in Perception:
o The figure is dominant and perceived more clearly.
o The ground is subordinate, appearing less important.
o In the context of music, actively listening to music makes it the figure, while background
music is the ground.
GROUPING

 Individuals tend to group stimuli so that they form a unified picture or impression. The
perception of stimuli as groups or chunks of information, rather than as discrete bits of
information, facilitates their memory and recall. Marketers use grouping to imply certain
desired meanings in connection with their products.
 For example, an advertisement for tea may show a young man and woman sipping tea in a
beautifully appointed room before a fire place. The overall mood implied by the grouping of
stimuli leads the consumer to associate the drinking of tea with romance, fine living, and
winter warmth.

CLOSURE

 Individuals have a need for closure. They express this need by organising their perceptions
so that they form a complete picture. If the pattern of stimuli to which they are exposed is
incomplete, they tend to perceive it, nevertheless, as complete; that is, they consciously or
subconsciously fill in the missing pieces. Thus, a circle with a section of its periphery
missing is invariably perceived as a circle, not an arc. Incomplete messages or tasks are
better remembered than completed ones.
 One explanation for this phenomenon is that a person who hears the beginning of a
message or who begins a task develops a need to complete it. If he or she is prevented from
doing so, a state of tension is created that manifests itself in improved memory for the
incomplete task.

PERCEPTUAL INTERPRETATION
Individuality of Perception:

 Perception is personal and selective.

 Stimuli are organized based on psychological principles.
 Interpretation is individual, influenced by expectations, past experiences, and current
motives.

Ambiguity in Stimuli:

 Stimuli can be weak, fluctuating, or highly ambiguous.

 Respondents' interpretations of ambiguous stimuli reveal personal needs and desires.
 Psychological tests often use ambiguous stimuli to unveil individual characteristics.

Stereotypes in Perception:

 Individuals carry biased mental images that affect how they perceive stimuli.
 Biases lead to distorted impressions, and marketers should be aware of possible
stereotypes.
 Factors triggering stereotypes include physical appearances, descriptive terms, first
impressions, and the halo effect.

Factors Triggering Stereotypes:

 Physical Appearances:
o People attribute qualities associated with certain types to those who resemble them.
o Selection of models in advertisements is crucial for persuasiveness.
  Descriptive Terms:
o Stereotypes reflected in verbal messages influence perceptions.
o Elaborate names for foods can enhance perceived taste and appeal.
 First Impressions:
o First impressions are lasting and can impact product success.
o Early introduction of a product, even if not perfected, affects subsequent perceptions.
 Halo Effect:
o Historically describing evaluation based on one or a few dimensions.
o In consumer behaviour, extends to the evaluation of multiple objects based on one
dimension.
o Marketers leverage the halo effect in branding and licensing for instant recognition and
status.

CONSUMER IMAGERY
 Product Positioning:
o Refers to the consumer's perception and symbolic value of a product.
o Examples: Mercedes Benz as safe and luxurious, Capitec as an affordable bank.
o Repositioning may be necessary for brands with negative consumer perceptions.
 Packaging Influence:
o Packaging is the "silent salesperson."
o Marketers consider size, colour, and overall message to influence product perception.
 Positioning of Services:
o Services are intangible, requiring a strong image for differentiation.
o Tangible elements are linked to services to provide visual images and reminders.
o Consumers seek tangible elements to form perceptions, e.g., hotel decor influencing
expectations.
 Perceived Price/Quality:
o Consumers judge product quality based on price.
o Price influences the perceived quality of a product.
 Retail Store and Manufacturer Image:
o Store and manufacturer images influence product perceptions.
o Example: Woolworths perceived as an upmarket, quality store.
o Example: Apple's manufacturer image influencing perceptions of its products.
 Perceived Risk:
o Consumers form perceptions based on uncertainty and consequences.
o Consider functional, physical, financial, social, psychological, and time risks.

PRODUCT POSITIONING

 The essence of successful marketing is the image that a product has in the mind of the
consumer - that is, its positioning. Positioning is more important to the ultimate success of
a product than are its actual characteristics, although products that are poorly made will not
succeed in the long run on the basis of image alone. The core of effective positioning is a
unique position that the product occupies in the mind of the consumer. Most new products
fail because they are perceived as 'me too offerings that do not offer potential consumers
any advantages or unique benefits over competitive products.
 Marketers of different brands in the same category can effectively differentiate their
offerings only if they stress the benefits that their brands provide rather than their products
physical features. The benefits featured in a products positioning must reflect attributes
 that are important to and congruent with the perceptions of the targeted consumer
segment. As illustrated at the beginning of this chapter, although water is a homogeneous
commodity, marketers have created numerous successful brands of bottled water, each
positioned as having a unique attribute.

PACKAGING AS A POSITIONING ELEMENT

 Packaging must convey the image that the brand communicates to buyers. For example, the
Pick n Pay household cleaning range that predominantly promises to be eco-friendly is
named Green and comes in green containers, because consumers tend to associate
environmentally-friendly products with this colour.
 The perception of scent and the associations made with different aromas vary greatly
among individuals. For this reason, it is extremely difficult to convey an 'image of a
fragrance. A recent study identified several holistic (or Gestalt) designs of packages, each
conveying prominent brand impressions. For each package type, the study also identified
the brand personality features that consumers associate with it.

PRODUCT REPOSITIONING

 Regardless of how well positioned a product appears to be, the marketer may be forced to
reposition it in response to market events, such as a competitor cutting into the brand's
market share or too many competitors stressing the same attribute. Another reason to
reposition a product or service is to satisfy changing consumer preferences.

PERCEPTUAL MAPPING

 The analytical technique called perceptual mapping enables marketers to determine just
how they want their products or services to appear to consumers in relation to competitive
brands on one or more relevant characteristics. It allows them to see gaps in the positioning
of all brands in the product or service class and identify areas in which new offerings can be
developed.

POSITIONING OF SERVICES

 Compared with manufacturing companies, service marketers face several unique problems
in positioning and promoting their offerings. Because services are intangible, image
becomes a key factor in differentiating a service from its competition. Thus, the marketing
objective is to enable the consumer to link a specific image with a specific brand name.
 Many service marketers have developed strategies to provide customers with visual images
and tangible reminders of their service offerings. These include delivery vehicles painted in
distinct colours, restaurant matchbooks, packaged hotel soaps and shampoos and a variety
of other specialty items. Many service companies feature real service employees in their
adverts (as tangible cues) and use people-focused themes to differentiate themselves.

PERCEIVED PRICE

 Perceived price should reflect the value that the customer receives from the purchase. How
a consumer perceives a price - as high, low or fair - has a strong influence on both purchase
intentions and purchase satisfaction. Consider the perception of price fairness. Customers
often pay attention to the prices paid by other customers (such as senior citizens, frequent
flyers and affinity club members), and sometimes such differential pricing strategies are
perceived as unfair by customers not eligible for the special prices.
Reference prices

 Products advertised as 'on sale tend to create enhanced customer perceptions of savings and
value. Different formats used in sales advertisements have differing impacts, based on
consumer reference prices.
 A reference price is any price that a consumer uses as a basis for comparison in judging
another price. Reference prices can be external or internal. An advertiser general, uses a
higher external reference price (sold elsewhere at ...) in an advert offering a lower sale,
price, to persuade the reencounter that the product advertised is a really good buy.
 Internal reference prices are those prices (or price ranges) retrieved by the consumer from
memory Internal reference prices play a major role in consumers evaluations and
perceptions of value of an advertised (external) price deal, as well as in the believability of
any advertised reference price.

PERCEIVED QUALITY
PERCEIVED QUALITY OF PRODUCTS:

 Intrinsic Cues (Physical Characteristics):

o Concern physical aspects like size, colour, flavour, or aroma.
o Used to judge product quality, enabling rational decision justification.

PERCEIVED QUALITY OF SERVICES:

 Distinctive Characteristics of Services:

o Intangible, variable, perishable, simultaneously produced and consumed.
o Consumers rely on surrogate cues (extrinsic cues) to evaluate service quality.
o Evaluation of a doctor's services includes office and room furnishings, framed degrees,
receptionist, nurse professionalism.

PRICE/QUALITY RELATIONSHIP:

 Perceived Product Value:

 o Trade-off between perceived benefits (quality) and perceived sacrifice.
o Consumers rely on price as an indicator of quality, viewing more expensive products as
higher quality.
o Some consumers use a well-known brand as a quality indicator.

RETAIL STORE IMAGE:

 Influence on Product Perceptions:

o Retail store images influence perceived quality of products and shopping decisions.
o Image influenced by merchandise, brands, prices, service, environment, clientele.
o Product assortment affects store image; unique benefits outweigh the number of items.

MANUFACTURERS' IMAGE:

 Consumer Perceptions of Manufacturers:

o Manufacturers with favorable images have products accepted more readily.
o First-in-category brands are generally favorably perceived by consumers.
o Consumers associate certain attributes with manufacturers.

PERCEIVED RISK:

 Definition and Dimensions:

o Uncertainty and consequences define perceived risk.
o Consumers face uncertainty and consequences in purchase decisions.
 Major Types of Risks:
o Functional risk, physical risk, financial risk, social risk, psychological risk, time risk.
o Consumers influenced by perceived risks, whether or not they actually exist.
 CHAPTER 8
WHAT ARE ATTITUDES
ATTITUDE DEFINITION:

 Consumer Behaviour Context:

o Attitude determines feelings, thoughts, or behaviour toward something.
o Example: Negative attitude towards tobacco products due to perceived health risks.

INFERENCE OF ATTITUDES:

 Non-Observable Nature:
o Attitudes not directly observable; inferred from what people say or do.
o Consumer behaviours (purchases, recommendations, beliefs) related to attitudes.

ATTITUDE OBJECT:

 Broad Interpretation:
 o Object includes product, brand, service, possessions, causes, people, ads, internet site,
price, medium, or retailer.
o Attitude conceptualized as a summary evaluation of an object in research.

ATTITUDES AS LEARNED PREDISPOSITION:

 Formation Sources:
o Attitudes are learned through direct experience, word-of-mouth, mass media, internet,
and direct marketing.
o Mobile phone technology, SMSes used for communication with consumers.
o Legal considerations in electronic communication, with consumer rights and marketer
obligations.

ATTITUDE MOTIVATIONAL QUALITY:

 Propelling or Repelling Behaviour:

o Attitudes are learned predispositions with motivational quality.
o Attitudes may propel consumers toward or repel them from specific behaviours.
o Sources of attitude formation: personal experience, word-of-mouth, mass media
advertising.

ATTITUDES HAVE CONSISTENCY:

 Determining Response:
o Attitude influences response to products, brands, or situations.
o Attitudes are not permanent; they can change.
o Situational influence on attitudes, with events affecting the relationship between attitude
and behaviour.
o Variety of attitudes possible toward an object, depending on the situation or application.

STRUCTURAL MODELS OF ATTITUDES

PSYCHOLOGICAL MOTIVATION:

 Psychologists construct models to understand the attitude-behavior relationship.

 Focus on underlying dimensions of attitude for better behavior explanation and prediction.

TRI-COMPONENT ATTITUDE MODEL:

 Attitudes have three major components: cognitive, affective, and conative.

1. Cognitive Component:**

 Involves consumer knowledge and perceptions acquired through experience and information.

 Example: Attitude toward the Covid vaccine based on childhood vaccination and current
information.

 Importance of sharing correct information in marketing to reinforce positive attitudes.

2. Affective Component:

 Relates to consumer emotions or feelings toward a product or brand.

 Example: Liking or disliking Coca Cola, pleasant or unpleasant experience at a restaurant.

 Challenges in determining the causes of these feelings in marketing.

3. Conative Component:**

 Refers to the likelihood of individual behavior, also known as the behavioral component.

 Example: Likelihood of visiting a new pub in the area based on attitude.

 Positive attitude increases the likelihood of visiting, and vice versa.

ATTITUDE FORMATION
MARKETERS AND ATTITUDE FORMATION:

 Interest in understanding how attitudes are formed.

 Attitudes are learned through various sources and influences.

SOURCES OF INFLUENCE ON ATTITUDE FORMATION:

 Personal Experience:
o Example: Personal experience with a brand or product influences attitude.
o Consideration of family and friends' opinions.
o Impact of media and the internet on attitude formation.

HOW ATTITUDES ARE LEARNED:

 Formation of Attitudes:
o Shift from having no attitude to having a favorable or unfavorable attitude.
o Learning involves classical conditioning and repeated satisfaction with a brand.
o Brand name acts as an unconditioned stimulus; new products are conditioned stimuli.
o Stimulus generalization from established brand name to new products.
o Trial purchases of new brands lead to attitude formation based on meeting expectations.
o Attitudes also form when consumers seek to solve a problem or satisfy a need.
 Information Processing:
o Consumers form attitudes based on information exposure and cognition.
 o More information increases the likelihood of attitude formation.
o Consumers may use only a limited amount of available information.
o Marketers should focus on key points distinguishing their product from the competition.

SOURCES OF INFLUENCE ON ATTITUDE FORMATION:

 Direct Experience:
o Attitudes strongly influenced by direct experience, family, friends, direct marketing, mass
media, and the internet.
o Marketers stimulate trials through discount coupons or free samples.
 Social Influence:
o Contact with other people, especially family, close friends, and admired individuals,
influences attitude formation.
o Family provides basic values and less central beliefs.
 Direct Marketing:
o Marketers use direct marketing to target small consumer niches with personalized offerings.
o Highly focused direct-marketing programs aim at addressing individual segment needs and
concerns.

PERSONALITY FACTORS:

 Role of Personality:
o Personality plays a critical role in attitude formation.
o Individuals with a high need for cognition form positive attitudes in response to information-
rich advertisements.
o Consumers low in need for cognition form positive attitudes in response to advertisements
featuring attractive models or celebrities.
o Specific personality characteristics influence attitudes toward new products and consumption
situations.

STRATEGIES OF ATTITUDE CHANGE

LEARNING AND ATTITUDE CHANGES:

 Attitude changes are learned and influenced by personal experience, information sources, and
personality.
 Personality impacts receptivity and the speed of attitude alteration.

MARKETERS' GOAL FOR ATTITUDE CHANGES:

 Marketers aim to alter and fortify consumer attitudes.

 Market leaders focus on reinforcing positive attitudes to retain customer loyalty.
 Competitors often target market leaders' customers to change attitudes and win them over.

ATTITUDE CHANGE STRATEGIES:

1. Changing the Basic Motivational Function:

 Make specific needs prominent.

 Utilize the functional approach, classifying attitudes based on four functions.

2. Associating with an Admired Group or Event:

 Create associations with groups or events that consumers admire.

3. Resolving Two Conflicting Attitudes:

 Address conflicting attitudes to create consistency.

4. Altering Components of the Multi-Attribute Model:

 Modify elements within the multi-attribute model.

5. Changing Consumer Beliefs about Competitors' Brands:

 Influence consumer beliefs about competitor brands.

CHANGING THE BASIC MOTIVATIONAL FUNCTION:

 Utilitarian Function:
o Attitudes influenced by a brand's utility.
o Changing attitudes by demonstrating utilitarian purposes not previously considered.
 Ego-Defensive Function:
o People seek to protect self-images and replace doubt with security.
o Advertisements offer reassurance, aligning with the ego-defensive function.
 Value-Expressive Function:
o Attitudes express consumer values, lifestyle, and outlook.
o Marketers anticipate consumer values and reflect them in advertising efforts.
 Knowledge Function:
o Consumers have a need to know and understand encountered people and things.
o Product positioning addresses the need to know, improving consumer attitudes by
emphasizing advantages over competitors.

COMBINING SEVERAL FUNCTIONS:

 Different consumers may have positive attitudes for various reasons.

 Functional framework helps examine attitudes based on utilitarian, ego-defensive, value-
expressive, and knowledge functions.
 Example: Positive attitudes toward Vaseline care products may stem from various functions,
such as utilitarian, ego-defensive, or knowledge.

ASSOCIATE THE PRODUCT WITH A GROUP, EVENT OR CAUSE

 In order to change the attitude of consumers, marketers may associate their brand with a
good cause, for example consider Nedbank which associates itself with the Green Trust,
specifically with saving the rhino campaigns. When a business associates its products or
brands with an event, group or cause, it aims to positively influence the public’s attitude
towards the product or the brand.
 Attitudes are related, at least in part, to certain groups, social events, or causes. It is possible
to alter attitudes toward companies and their products, services and brands by pointing as
their relationships to particular social groups, events or causes.
 Recent research into brand-cause alliances has investigated the relationship between the
cause and the sponsor. One study found that while both the brand and the cause benefit.
from such alliances, a low-profile cause benefited more from its association with a positive
brand than did a highly familiar cause. The results of another study further suggests that it
 corporate sponsors fail to explicitly indicate their motives for a company-cause or a product.
cause association, it is likely that consumers will form their own motives for the association
between the company, product or service and the cause." This finding seems to indicate that
it is likely to be a good idea for a sponsor to reveal to target consumers the reasoning behind
their sponsorship, so that consumers know the sponsor's motives rather than form their
own potentially inaccurate or negative motives.

RESOLVING TWO CONFLICTING ATTITUDES

 Attitude-change strategies can sometimes resolve actual or potential conflict between two
attitudes. Specifically, if consumers can be made to see that their negative attitude toward a
product, a specific brand, or its attributes is really not in conflict with another attitude, they
may be induced to change their evaluation of the brand (i.e., moving from negative to positive).

ALTERING COMPONENTS OF THE MULTI-ATTRIBUTE MODEL

CHANGING THE RELATIVE EVALUATION OF ATTRIBUTES:

 Market segmentation based on distinct product features or benefits.

 Opportunity for marketers to persuade consumers to shift preferences between product
versions.

CHANGING BRAND BELIEFS:

 Focus on altering beliefs or perceptions about the brand.

 Common advertising appeal emphasizing superiority in terms of specific attributes.
 Consumers may resist changes to strongly held attitudes, requiring compelling and repeated
information.

ADDING AN ATTRIBUTE:

 Two routes: adding a previously ignored or unknown attribute, or introducing an improvement

or technological innovation.
 Adding a previously ignored attribute illustrated by yogurt having more potassium than a
banana.
 Introducing an attribute involves product change or innovation, e.g., Oral-B toothbrush's
superior cleaning.

CHANGING THE OVERALL BRAND RATING:

 Strategy aims to alter consumers' overall assessment of the brand.

 Utilizes global statements, such as being the largest-selling brand, to set the brand apart from
competitors.

CHANGING BELIEFS ABOUT COMPETITORS' BRANDS:

 Involves altering consumer beliefs about attributes of competitive brands or product categories.
 Comparative advertising can be effective but may backfire by giving visibility to competing
brands.

THE ELABORATION LIKELIHOOD MODEL (ELM):

 Proposes two distinct routes to persuasion for attitude change: central route and peripheral
route.
 Central route: Relevant when consumer motivation or ability to assess the attitude object is
high.
 Peripheral route: Relevant when consumer motivation or assessment skills are low (e.g., low
involvement).
 Central route involves active consumer information processing and learning, while peripheral
route relies on secondary inducements.
 Central inducements have greater staying power over time, especially for subjects low in
product knowledge.
 Advertisements with terminology lead to better attitudes toward the brand and the advert for
consumers low in product knowledge.

CHAPTER 10
THE CONTEMPORARY SOUTH AFRICAN FAMILY
DIFFERENCE BETWEEN HOUSEHOLD AND FAMILY:

 Family: Basic social unit related by blood, marriage, or adoption.

 Household: Shares a housing unit and may not necessarily be a family.

FAMILY AND HOUSEHOLD COMPOSITIONS:

 Couple:
o Simplest family type representing married or unmarried couples.
o May include gay couples, older couples without children.
 Nuclear Family:
o Consists of a husband, wife, and one or more children.
o Declining in South Africa, with only 35% of children living with both biological parents.
o Factors contributing to fractured family structures: apartheid history, migrant labor system,
poverty, unemployment, high HIV prevalence.
 Extended Family:
o Includes nuclear family and at least one grandparent.
o Traditional in black African families.
o Declining in affluent regions, more prevalent in less affluent regions.
o More common in black households in South Africa due to cultural differences.
 Single-Parent Households:
o Rapidly increasing due to divorce, separation, and out-of-wedlock births.
o 18% of households in South Africa are single-parent households, predominantly headed by
females.
 Child-Headed or Grandmother-Headed Households:
o Examples of family structures without parents present.
 Other Family Structures in South Africa:
o Polygamous families, migrant and refugee families, same-sex families, skip-generation
families (grandparents living with grandchildren without parents).

CULTURAL VARIATIONS IN FAMILY TYPES:

 Varies considerably from culture to culture.

 Individualistic societies (Canada, USA, Northern and Western Europe) commonly have nuclear
families.
 Kinship cultures, such as in black South African cultures, include extended families with a head
of household, married adult children, and grandchildren.

SOCIALISATION AND RELATED ROLES OF FAMILY MEMBERS

SOCIALIZATION OF FAMILY MEMBERS:

 Central Function: Socialization is a central family function for all members, from children to
adults.

Children's Socialization:

 Content: Imparts basic values, cultural behaviors, moral and religious principles, interpersonal
skills, hygiene, grooming standards, manners, and educational and career goals to children.
 Expanding Parental Responsibilities:**
o Affluent parents in South Africa eager for early education.
o Daily extracurricular activities prevalent in middle and upper-class children's lives.
o Challenges of such schedules: fostering competition, limiting imaginative exploration.

Impact of Apartheid:

 Millions of South African children still lack adequate education due to factors like poverty,
hunger, fractured families, and inadequate infrastructure.
 Government efforts to improve education often hindered by these challenges

Marketers' Sensitivity:

 Marketers recognize the opportunity in socializing young children for long-term brand loyalty.
 Target parents seeking assistance in socializing their children.

Distinction: Children vs. Adults:

 Next section distinguishes between the socialization processes of children and adults.
SOCIALIZATION OF CHILDREN:

 Definition: Consumer socialization is the process through which children acquire skills,
knowledge, attitudes, and experiences necessary to function as consumers.

Agents of Socialization:

 Mainly Parents: Parents are primarily responsible, along with other agents like school,
church, media, and societal systems.
 Parents serve as role models and sources of cues for basic consumption learning.

Co-Shopping and Influence:

 Shared shopping experiences provide children with in-store shopping skills.

 Mothers considered stronger consumer socialization agents than male partners.
 Mothers mediate children's exposure to commercial messages.

Segmentation of Mothers:

 Different segments of mothers have distinct influences on children.

 Single mothers and working mothers identified as significant market segments with specific
needs.
 Example: Single mothers influencing the cosmetics industry.

GROWING UP IN A MATERIALISTIC WORLD:

Early Attachment to Possessions:

 Children attach importance to possessions early, influenced by media and commercials.

 Materialism increases from middle childhood to early adolescence.

Self-Esteem and Materialism:

 Inverse relationship between self-esteem and materialism in children and adolescents.

 Focus on increasing self-esteem as a positive approach.

Adolescent Materialism:

 Middle school identified as the period marking the onset and peak of ridicule about
possessions.
 Ridicule used to exchange information about consumption norms.

Extreme Materialism Subculture:

 Subculture 'Ukukhotana' in South Africa associated with extreme materialism.

 Emphasis on showing off, wearing expensive designer labels, and bragging about
possessions.

Scepticism Development:

 Adolescents develop skepticism towards product claims and advertising.

 Factors influencing skepticism include age, socioeconomic status, and internet usage.
ADULT CONSUMER SOCIALIZATION:

 Ongoing Process: Socialization continues into adulthood.

Examples:

 Newly married couples establishing a household.

 Couples adjusting to retirement and relocating.
 Families adapting to new family members, like pets.

INTERGENERATIONAL SOCIALISATION
Intergenerational Brand Transfer:

 Certain product loyalties and brand preferences persist across generations.

 Transfer occurs between parent and child and can extend through multiple generations
within the same family.

Common Product Categories:

 Products like peanut butter, mayonnaise, tomato sauce, coffee, and tinned soup often
passed from one generation to the next.

Example of Student Perspective:

 University student finds it challenging to change from products used since childhood, such
as Vaseline, Dove, Five Roses tea, and cornflakes.
 Shopping habits reflect familiarity with products her mother used.

Role of Grandparents:

 Grandparents play an instrumental role in the socialization of grandchildren.

 Grandmothers, especially in South African families, often care for grandchildren without
parents present.

Two-way Street of Socialization:

 Socialization is a two-way process; the young person is both socialized and influences those
doing the socializing.
 Children of all ages often influence the opinions and behaviour of their parents.

Parental Internet Interest Example:

 US research indicates that parental warmth positively relates to the child's interest in the
internet.
 Children act as catalysts for increased parental internet interest, teach parents about the
internet, and even act as their internet agents in activities like online shopping.

Influence on Consumer Innovativeness:

 Research shows that family perceptions of adult children regarding their parent's
innovativeness influence the children's innovativeness.
 Family dynamics play a role in shaping consumer behaviours and attitudes.
OTHER FUNCTIONS OF THE FAMILY
ECONOMIC WELLBEING:

Financial Responsibilities:

 Family plays a crucial role in providing for education, food, and shelter.
 Changing family dynamics with women entering the workforce contribute to financial
support.

Role Evolution:

 Traditional roles of husbands as sole providers and wives as homemakers are evolving.
 Working mothers' contributions to family income positively impact marital stability and
equality.

Children's Economic Role:

 Despite teenage employment, they often don't contribute financially to the family.
 Teenagers are expected to finance personal expenses, and involvement in credit card
acquisition correlates with lower balances.

EMOTIONAL SUPPORT:

Nurturing Emotional Bonds:

 Emotional support, including love and care, is a core function of contemporary families.
 Families provide encouragement, assistance in decision-making, and help in coping with
personal and social problems.
Impact of Basic Needs:

 Families facing poverty may struggle to provide emotional support.

 Poverty and unemployment lead to initiatives like school-feeding schemes in South Africa.

ESTABLISHMENT OF SUITABLE FAMILY LIFESTYLE:

Quality vs Quantity of Time:

 Family lifestyle involves determining priorities like education, career, and entertainment.
 Changing nature of family togetherness emphasizes being in the same household rather
than doing activities together.

Influence on Consumption Patterns:

 Family commitments influence consumption; time pressures on mothers lead to a demand

for convenience products.
 "Quality time" gains importance in families where both parents work.

Challenges to Family Togetherness:

 Single-parent households, poverty, and high unemployment rates hinder family time.
 Survival and daily concerns often take precedence over spending time together in many
South African families.

FAMILY DECISION-MAKING AND CONSUMPTION-RELATED ROLES

CHANGING DYNAMICS OF FAMILY DECISION-MAKING:

Nuclear Family Scenarios:

 Overseas Working Father:

o Wife becomes the primary decision-maker in daily household matters.
 Both Partners Equally Successful:
o Joint decision-making prevalent due to equal success and income.
 Both Parents Working, Children Independent:
o Children actively participate in decision-making in the absence of parents.

HUSBAND-WIFE DECISION-MAKING DYNAMICS:

Family Structure Statistics:

 35% of South African families are husband-wife-headed, and marketers analyse influence
distribution.

Categories of Influence:

 Husband-dominated, wife-dominated, joint, and autonomic decision-making roles.

Product Category Influence:

 Historical shifts in influence, e.g., cars traditionally husband-dominated, but female buyers
gain attention.
 Financial decisions increasingly handled by female heads of households.
South African Consumer behaviour Trends:

 Study shows wife's autonomy in decisions related to appliances, non-prescription drugs, and
cosmetics.
 Husband-autonomous decisions include house upkeep, savings, and alcoholic beverages.
 Husband-dominated decisions in life insurance, while wife dominates furniture, kitchenware,
food, and children's clothing.
 Syncretic decisions on housing, children's school, holidays, toys, and television.

DECISION-MAKING IN FEMALE-HEADED HOUSEHOLDS:

Statistics in South Africa:

 40% of 18.1 million children live in mother-only households.

Rise of Working Women:

 Growing number of working women as heads of households.

 Women recognized as powerful decision-makers in both traditional and female-headed
families.

Market Targeting:

 Companies target women in both durable and non-durable goods.

 Services industry recognizes women's influence in insurance, health, leisure, and travel
sectors.

THE FAMILY LIFE CYCLE

FAMILY LIFE CYCLE (FLC) DYNAMICS:

Changing Family Structures:

 FLC once depicted steady family progression; now, diverse family arrangements challenge
the standard model.
 Societal factors influencing the decline in traditional FLC include increasing divorce rates,
single mothers, and reduced extended families due to job advancements.
 Black African family structures disrupted by historical events, with some nannies living with
affluent families while their children reside with relatives in distant rural areas.

Nuclear Family Dominance:

 Nuclear family prevalent in present-day South Africa, making traditional FLC a valuable
marketing tool.
 FLC analysis for segmentation incorporates demographic variables such as marital status,
family size, age of family members, and head of household's employment status.

Traditional FLC Stages:

 Stage I: Bachelorhood:
o Young single adults living independently, spending on rent, entertainment, clothing, and
transportation.
o Target for various products and services.
 Stage II: Honeymooners:
 o Young married couples focusing spending on home furnishing, appliances, and
household items.
o Period of adjustment to married life, substantial start-up expenses.
 Stage III: Parenthood:
o Married couple with at least one child, spending on food, clothing, medical and
educational expenses.
o Divided into phases reflecting children's age and educational stages.
o Magazines catering to parents and children's needs.
 Stage IV: Post parenthood:
o Older couple with no children at home, spending on personal hobbies, travel, and
investments.
o Considered a period of rebirth, financial comfort, and leisure time.
o Target market for luxury goods, new cars, and holidays.
 Stage V: Dissolution:
o One surviving spouse, retirement stage, may involve death of one spouse.
o Adjustments influenced by health, savings, and support systems.
o Potential entry into second or subsequent marriages.

Marketing Impact on FLC:

 FLC influences product and service preferences at each stage.

 Example: Holiday marketing tailored to specific life cycle stages, such as singles, young
families, families with older children, and mature couples.
 Detailed market segmentation studies focus on FLC dynamics.

Note: FLC stages described are a synthesis of various traditional FLC models proposed over the
years.

THE MODIFIED FAMILY LIFE CYCLE

 Contemporary Life Stages:
o Begins with 'At-Home Singles' and concludes with 'Mature Households.'
o Refer to prescribed textbook, page 280, figure 10.4, for detailed categories.
 Shift from Traditional FLC:
o Traditional Western FLC loses dominance in contemporary societies.
o In South Africa, extended family dominance in black African groups gives way to
traditional Western FLCs and non-traditional FLCs.
o Non-traditional FLCs include non-family households like singles or unrelated
cohabitants.
 Challenges of Modified FLC Models:
o Researchers seek expanded FLC models to better represent diverse family
arrangements.
o Challenges include limited scope in recognizing non-marriage-based families like
single-parent households.
 Contemporary South African Life Stages:
o SAARF introduces life stages and Living Standard Measures (LSMs) for marketers.
o Table 10.4 defines eight SAARF life-stage groups and their percentage representation
in the South African population.
 Consumption in Non-Traditional Families:
o Consumption in non-traditional families changes with household status changes.
 o Spending behavior adapts with preferences when new individuals enter the household.
 Dual-Income Households:
o Significant changes in consumer behaviour in dual-income households.
o Occupational status and career commitment of both spouses become segmentation
bases.
 Social Class:
o Social class defined as hierarchical distinctions based on wealth and power.
o Influences consumers' consumption behaviour.

CHAPTER 11
WHAT IS CULTURE
Definition:

 Culture encompasses language, knowledge, laws, religions, food customs, music, art,
technology, work patterns, and societal artifacts.
  Edward Burnett Tylor's definition: "Culture is that complex whole which includes
knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired
by man as a member of society."

Focus on Consumer behaviour:

 For consumer behaviour, culture is defined as the sum total of learned beliefs, values, and
customs directing consumer behaviour.

Beliefs and Values:

 Beliefs:
o Mental or verbal statements reflecting personal knowledge and assessment.
o Examples include beliefs about people, stores, products, and brands.
 Values:
o Fewer compared to beliefs.
o Guide culturally appropriate behaviour, enduring, not tied to specific objects or
situations.
o Widely accepted by society.

Customs:

 Open display of behaviour culturally approved in specific situations.

 Every day or routine behaviour, such as adding sugar to coffee or family Sunday lunch.

Key Concepts of Culture:

 Knowledge:
o Based on consumer's awareness and information about a product, service, or brand.
 Values:
o Difficult to change, linked to culture and may relate to health or religion.
 Customs:
o Acceptable ways of behaving within a specific culture.
o Example: South African families having Sunday lunch together.

Norms:

 Rules or guidelines regulating behaviour, culture-specific.

 Example: Dress code or makeup norms in a culture.

Sanctions:

 Pressures on deviants to conform.

Mores:

 Vital norms for society's survival.

 Prohibit crimes like murder, rape, theft, and treason.
 Violators face severe punishments like imprisonment.
THE INVISIBLE HAND OF CULTURE
CONSUMER BEHAVIOUR AND CULTURAL INFLUENCE:

 Consumers perceive the world through their cultural context.

 behaviour aligns with cultural customs and values.
 Marketers must consider varying cultural interpretations of product value.

SUBJECTIVE CULTURE AT THREE LEVELS:

1. Supranational Level:
 Reflects cultural elements in multiple countries.
 Example: South Africa, Australia, and New Zealand share a value for rugby, attending
matches, and socializing.
2. National Level:
 Core values of the majority within a specific country.
 Example: South Africans supporting the Springboks, engaging in braais, wearing team
jerseys, and drinking beer.
3. Group Level:
 Pertains to specific groups like families or social groups.
 Example: Support for specific rugby teams (Blue Bulls, Stormers, Lions) with unique
rituals like braais and beer consumption.

INGRAINED IMPACT OF CULTURE:

 Culture's influence is often taken for granted.

 People's actions are deeply influenced by cultural values.
 Responses like offering a seat to the elderly showcase cultural ingraining.

AWARENESS THROUGH EXPOSURE TO DIFFERENT CULTURES:

 Awareness of cultural influence deepens when exposed to diverse values.

 Understanding another society aids in recognizing cultural moulding of personal behaviour.

CULTURAL PHENOMENON AT DIFFERENT LEVELS:

 Culture manifests at various perceived or subjective levels.

 Consumer behaviour tied to culture involves considering:
o Supranational Level: Cross-cultural understanding.
o National Level: Shared core values.
o Group Level: Subdivisions, subcultures, and reference groups.

LIFESTYLE MATRIX FOR GLOBAL YOUTH:

 In-Crowd:
o Seeks approval, values tradition.
o Prefers classic brands like Nike and Abercrombie & Fitch.
 Pop Mavericks:
o Values individuality, instant gratification.
o Prefers brands that allow personalization, such as Diesel and Adidas.
 Networked Intelligentsia:
o Hub of online social networks, values revolution.
 o Prefers cult brands like Vespa and Vans for obscurity.
 Thrill Renegades:
o Values infamy, adrenaline, anarchy.
o Co-opts brands of the in-crowd and takes them to another level (e.g., Tanqueray and
Timberland).

CULTURE SATISFIES NEEDS

Purpose of Culture:

 Exists to satisfy societal needs.

 Offers order, direction, and guidance in problem-solving.
 Provides tried-and-tested methods for physiological, personal, and social needs.

Examples of Cultural Guidance:

 Eating Habits:
o Standards for meals (e.g., breakfast, lunch, supper).
o Guidelines for serving guests at different occasions (e.g., sit-down meal, braai, wedding).
 Dress Codes:
o Rules for attire on various occasions (e.g., at home, school, work, place of worship,
restaurant, theatre, funeral).
o Shifts in dress codes over time, influenced by cultural changes.
Shifts in Dress Codes:

 Casual attire becoming more common, especially in a relaxed corporate environment.

 Influence of iconic figures like Nelson Mandela challenging traditional dress codes.
 Mandela's unique style, including the Madiba shirt, setting new fashion trends among
politicians.

Impact of Cultural Beliefs, Values, and Customs:

 Followed as long as they provide satisfaction.

 Modified or replaced when they no longer meet societal needs and desires.
 Continuous evolution to align with current standards and preferences.

CULTURE IS LEARNED
FORMS OF CULTURAL LEARNING:

1. Formal Learning:
 Adults teach proper behaviour in society.
 Cultural differences impact practices (e.g., funeral attire).
 Awareness crucial in consumerism to avoid offensive advertisements.
2. Informal Learning:
 Children imitate behaviour in immediate surroundings.
 Shopping experiences with parents shape brand preferences.
 Peer influence plays a role, especially for visible products.
3. Technical Learning:
 Formal education in schools, colleges, or universities.
 Focus on key aspects of managing affairs in a complex society.
 Emphasis on understanding, manipulating, and interpreting words and numbers.

MARKETING'S INFLUENCE ON CULTURAL LEARNING:

 Advertising and marketing impact all three types of cultural learning.

 Informal cultural learning is often enhanced by marketing messages.
 Social beings imitate behaviour modelled in advertising, especially for visible products.

CULTURAL MEANING IN ADVERTISING:

 Repeating marketing messages reinforces cultural beliefs.

 Cultural meaning flows from socio-cultural values to consumer goods to individuals.
 Symbols and imagery in advertising convey product benefits and cultural values.

ENCULTURATION AND ACCULTURATION:

 Enculturation: Learning one's own culture.

 Acculturation: Learning a foreign culture.
 Relevant for understanding consumer willingness to adopt global or local brands.

LANGUAGE AND SYMBOLS:

 Common language crucial for shared meaning in a society.

 Marketers use symbols (verbal and non-verbal) to convey product images.
  Effective use of language and symbols in advertising enhances communication.

RITUALS:

 Rituals involve symbolic activities in a fixed sequence.

 Rituals extend over the human life cycle and include various events.
 Rituals often associated with specific products, reinforcing cultural ties.

CULTURE IS SHARED:

 Shared beliefs, values, and practices define cultural characteristics.

 Common language facilitates the sharing of culture.
 Multicultural challenges in advertising require creative and inclusive approaches.

UBUNTU PHILOSOPHY IN SOUTH AFRICAN BLACK COMMUNITY:

 Ubuntu philosophy emphasizes harmony and unity within the community.

 Extended family ties are central, influencing marketing perspectives.
 Strangers are considered part of the extended family, contrasting Western views.

DYNAMIC NATURE OF CULTURE:

 Culture continually evolves to fulfil societal needs.

 Marketers must monitor socio-cultural changes for effective marketing.
 Economic, social, and technological factors contribute to cultural changes.

CHANGING NATURE OF CULTURE IN SOUTH AFRICA:

 Shifts in economic landscape and markets since 1994.

 Changing roles of women impact consumer behaviour.
 Marketers must adapt to new consumer demographics and emerging needs.

SOUTH AFRICAN CORE VALUES

IDENTIFIED CORE VALUES IN SOUTH AFRICAN SOCIETY:

Challenges in Identification:

 Diverse country with numerous subcultures.

 Constant change due to rapid technological developments.
 Existence of contradictory values, creating complexity.

Selected Core Values:

1. Sport, Fitness, and Health:

 Pervasive interest in sports, fitness, and health.
 Influences lifestyle choices and brand preferences.
 Acculturation of Western values contributed to the health and fitness boom.
2. Friendliness, Courtesy, Warmth, and Kindness:
 General friendliness observed in social interactions.
 Commuters and communities exhibit warmth and kindness.
 Social bonds developed through regular interactions.
3. Freedom:
  Strong historical emphasis on freedom.
 Resistance against oppression and limitations.
 Preference for a wide range of choices, reflecting a value for freedom.
4. Achievement and Success:
 Emphasis on hard work and its rewarding nature.
 Success seen as a result of achievement.
 Success tied to both intrinsic and extrinsic rewards.
5. Braaivleis:
 Socializing and gathering with friends and family.
 National Braai Day as a cultural celebration.
 Braai culture influences various South African customs.

CRITERIA FOR CORE VALUES:

 Pervasiveness:
o Accepted and used by a significant portion of the population.
 Endurance:
o Influenced actions over an extended period.
 Consumer Related:
o Provides insights into understanding consumer actions.

CONSUMER INSIGHTS AND MARKETING OPPORTUNITIES:

 Core values shape consumer behaviour and preferences.

 Understanding these values aids marketers in developing effective strategies.
 Opportunities to tap into cultural celebrations, such as National Braai Day.

ENTREPRENEURIAL INFLUENCE:

 Jan Braai's proposal for National Braai Day.

 Opportunities for advertisers and marketers to align with cultural celebrations.
 Consumer imagery extends beyond price, impacting product acceptance.

CHANGING DEMOGRAPHICS:

 Shifts in the representation of the black community across LSM categories.

 Economic and social changes impact consumer demographics and behaviours.
 Adaptation required to address evolving consumer needs and expectations.
 CHAPTER 12:
WHAT IS SUBCULTURE
SUBCULTURES IN SOCIETY:

© Definition: Members of a subculture possess distinct beliefs, values, and customs.

© Relation to Dominant Culture: Subcultures adhere to dominant cultural beliefs while having
unique elements.
© Identity: Subcultures are identifiable segments within a larger society.
© Categories:
o Ethnic and language groups
o Race
o Gender
o Age
o Religion
o Marital status
o Social class

CULTURAL PROFILE ELEMENTS:

1. Unique Subcultural Elements:

© Distinct beliefs, values, and customs of specific subcultures.
2. Core Cultural Themes:
© Shared by the majority, regardless of subcultural memberships.

INFLUENCE ON CONSUMER BUYING DECISIONS:

© Subculture defined by Jacobs & Maree (2020) as smaller distinctive groups.

© Shared behaviours, like dressing alike and engaging in similar activities, characterize
subcultures.
© Example: Eduvos students forming a subculture with shared age, academic pursuits, and daily
routines.

THE IMPACT OF GEOGRAPHY AND RELIGION ON SUBCULTURE

© South Africa has nine provinces and the people living in each province have their unique
characteristics, income levels and standard of living. In the same way there can be
subculture within a bigger geographic area. Referring back to our previous example of
Eduvos students with similar routines and characteristics, they are an example of a
subculture within the bigger geographical area of the Western Cape. It is also true that
people from the Western Cape have their own subculture, compared to those subcultures in
any one of the other provinces in the country.

RACE, LANGUAGE AND RELIGION AS SUBCULTURAL INFLUENCES

© South Africa is a country of diversity. We have various communities, for example, black,
coloured, Indian and white with their own language, habits and other subcultural
influences. For example, South Africa also has numerous religious subcultures who have
their own dietary preferences, dress code and festivities, etc.
AGE: GENERATIONAL MARKETS
© Marketers often use age as differentiating factor in segmentation. For example, they
distinguish between Generation Y and Generation X when segmenting the market. Your
generation is mainly determined by the year in which you were born and your specific
preferences and attitudes.
© Black diamonds

GENDER AND THE ROLE OF WOMEN IN SOUTH AFRICA

GENDER SUBCULTURES IN MARKETING:

© Marketers use gender subcultures for gender-specific products.

© Modern women's increased spending power and financial decision-making.
© Evolution of traditional male roles due to women entering male-dominated careers.

GENDER ROLES AND CONSUMER BEHAVIOUR:

© Societal assignment of traits and roles to males and females.

© Changing perspectives on traditional gender traits.
© Men's increased involvement in household tasks and grooming.
© Different reactions of men and women to identical print advertisements.

SHOPPING MOTIVES AND GENDER:

© Female shoppers motivated by uniqueness, assortment, social interaction, and browsing.

© Male shoppers motivated by attaining information and seeking convenience.
© Women tend to be more loyal to local merchants.
© Women control 85% of family spending.

CONSUMER PRODUCTS, SERVICES, AND GENDER ROLES:

© Historical gender associations with certain products.

© Evolving gender links for products in South Africa.
© Growing market for beauty and personal care products for men.
© Gender differences in internet usage and preferences.

MEDIA AND ADVERTISING'S PORTRAYAL OF WOMEN:

© Media and advertising set unrealistic beauty expectations.

© Dove's advertising challenges traditional beauty norms.
© Dove's campaign embraces diversity in sizes, shapes, and ages.
© Some women find traditional advertisements patronizing.

SEGMENTING THE WORKING WOMAN MARKET:

© Shift in traditional gender roles; women as decision-makers in households.

© Example of an insurance company targeting women with cheaper premiums.
© Focus on married working women as a significant consumer segment.
© Categories differentiating motivations of working and non-working women.
© Working women spend less time shopping, employing a 'time economy.'
 CHAPTER 14:
DIFFUSION OF INNOVATIONS
Diffusion of Innovations Framework:

© Describes the framework for exploring consumer acceptance of new products.

© Involves two closely linked processes: diffusion and adoption.
© Diffusion is the spread or assimilation of a new innovation in the market.
© Adoption process includes stages in consumer behavior from introduction to acceptance or
rejection.

Identifying Key Consumer Groups:

© Marketers need to identify consumer groups crucial for the success or failure of new
products.
© Importance of research to keep up with changes in consumer behavior.

Consumer Acceptance and Diffusion of Innovations:

© Major issue in marketing and consumer behavior.

© Consumer acceptance framework drawn from the diffusion of innovations research.
© Focus on two processes: diffusion (macro process) and adoption (micro process).
© Examining these processes helps understand the profile of consumer innovators.

Role of Marketers in New Product Introductions:

© Marketers play a crucial role in the success or failure of new-product introductions.

© Economic uncertainty in the 2010s makes innovation essential for brand strength and
increased profits.
© Innovation and effective use of new technology contribute to increased productivity,
macroeconomic growth, and national wealth creation.
© Innovation can enhance family well-being by enabling more informed choices and personal
well-being.

THE DIFFUSION PROCESS

© Concerned with how innovations spread and assimilate in the market.
© New products introduced via social media, salespeople, mass marketing, etc.
© Spread involves communication through mass media, salespeople, or informal
conversations.

ELEMENTS OF DIFFUSION PROCESS:

1. THE INNOVATION:

© Firm:
o The product may not be new in the market but it is new to the firm
o Firm could take a competitors product, make it better and sell as your own
© Product:
o Continuous innovation: modifying or updating an already existing product
§ I.e., upgrading a cellphone
 § Doesn’t expect the customer to do much
§ Customers accept it easily.
§ Promotes brand loyalty
o Dynamically continuous innovation :
§ Some input from consumer
§ Effort
§ Customers don’t easily accept it
o Discontinuous innovation:
§ Completely new idea/concept/product
§ Not very consumer friendly
§ Lots of effort and input needed from consumer
© Market:
o A small group of people currently buying the product
o A product has only been in the market for a short period of time
© Consumer:
o The product is new to the consumer
o first time the consumer is using this type of product
Product Characteristics Influencing Diffusion:

© Relative Advantage:
o Degree to which customers perceive a new product as superior to existing
substitutes.
o Example: Cellular phones offering instant communication.
© Compatibility:
o Degree to which a new product is consistent with present needs, values, and
practices.
o Example: 3M's Scotch Pop-up Tape Strips are compatible with established tasks.
© Complexity:
o Degree to which a new product is difficult to understand or use.
o Simplicity increases the likelihood of acceptance.
o High-tech products may face technological fear barriers.
© Trialability:
o Degree to which a new product can be tried on a limited basis.
o Opportunity for trial facilitates evaluation and adoption.
o Examples include small or trial-sized products.
© Observability:
o Ease with which a product's benefits or attributes can be observed, imagined, or
described.
o Social visibility enhances diffusion.
o Tangible products and those easily communicated are more readily adopted.

Factors Influencing Product Acceptance:

© Consideration of societal needs leading to innovations.

© Environmentally friendly products termed eco-innovations.
© Mobile development, termed m-development, offering opportunities in Sub-Saharan Africa.

Role of Marketers in Diffusion:

© Marketers crucial in understanding and anticipating consumer reactions.

 © Focus on social responsibility and green marketing.
© Products meeting societal needs can lead to shared value creation.

Product Characteristics and Adoption:

© Five product characteristics influencing consumer acceptance: relative advantage,

compatibility, complexity, trialability, and observability.
© These characteristics account for the dynamic nature of adoption rates.

Resistance to innovation

© Factors Influencing Consumer Acceptance:

o Success of new products varies; some instantly successful, others struggle.
o Slow acceptance seen in innovations like microwave ovens and dishwashers.
o Consumer resistance occurs when innovations require habit changes.
© Resistant Innovation:
o Term for innovations facing consumer resistance due to habit changes.
© Product Characteristics and Consumer Resistance:
o Marketers analyse product characteristics to understand resistance.
o Resistance increases when perceived relative advantage, compatibility, trialability,
and communicability are low.
o High perceived complexity contributes to resistance.
© Innovation Overload:
o Situation where an excess of information impairs consumer decision-making.
o Results in difficulty making comparisons among available choices.
o Leads to a sense of too little time, too much stress, and wasted time.
© Challenges in Consumer Decision-Making:
o Innovation overload creates challenges in decision-making.
o Consumers may feel overwhelmed by the multitude of choices.
o Time constraints and stress contribute to complexity issues.
© Product Introductions and Consumer Resistance:
o Large percentage of product introductions face failure.
o Research on customer resistance to innovation is scarce.
o Suggested need to investigate consumer resistance as a distinct behaviour, separate
from adoption.
© Despite previous work on the different types of consumer resistance and its many
antecedents, there is limited empirical evidence available on whether different forms of
resistance have distinct antecedents. Some researchers suggest a conceptual framework
which explains the major components of consumer resistance as:
o rejection,
o postponement,
o opposition,
© identify two main groups of antecedents to consumer resistance: (1) degree of change
required and (2) conflicts with the consumer's existing belief structure.
 2. THE CHANNELS OF COMMUNICATION
Innovation Spread and Communication:

© Spread of innovation depends on marketer-consumer and consumer-consumer

communication.
© Channels of communication crucial for evaluating influence from impersonal (advertising)
and interpersonal (salespeople, opinion leaders) sources.

Internet as a Communication Medium:

© Internet serves as both interpersonal and personal source of information.

© Interpersonal through adverts, e-commerce websites, podcasts, and web-pods.
© Personal through forums and discussion groups allowing interaction with experienced
individuals.

New Communication Channels:

© Growth in interactive marketing messages involves consumers actively participating.

© Social networking sites offer opportunities for content delivery and relationship
strengthening.

Social Networking and Consumer Traits:

© Social networking sites depend on understanding user psychological attributes and social
interactions.
© Study finds consumer innovativeness positively related to both active and passive use.
© Self-identity and social identity expressiveness impact active use positively.

Viral Marketing and Consumer Role:

© Viral marketing recognizes active consumer role in brand awareness.

© Companies use platforms like YouTube, MySpace, and blogs, encouraging word of mouth.
© Debates exist on whether viral content is natural and unpredictable or can be predicted and
created.

3. THE SOCIAL SYSTEM

Diffusion in Social Systems:

© Diffusion of new products occurs within a social system.

© In consumer behaviour, terms like market segment and target market are more relevant.
© A social system is a physical, social, or cultural environment where people function.

Social System Orientation:

© Orientation influences acceptance or rejection of innovations.

© Modern social systems have positive attitudes towards change, advanced technology,
education emphasis, rational social relationships, outreach perspective, and role flexibility.

National vs. Local Social Systems:

© Social systems may be national or local.

 © The orientation of the social system is crucial for marketers operating in that climate.

Cultural Differences and Innovation Adoption:

© Study on French and German consumers found cultural differences in innovation adoption.
© Cultural dimensions like power distance, uncertainty avoidance, and masculinity impact
propensity to innovate.
© Hofstede's cultural dimensions play a role, but mobile phone usage may involve unique
cultural dimensions.

Challenges in Classic Diffusion Models:

© Assumption of easy interpersonal communication in classic diffusion models may not be

realistic.
© Few studies trace innovation through social networks.
© Diversities in networks include structural heterogeneities and relational heterogeneities.

4. TIME

Time in Diffusion Process:

© Time is fundamental in diffusion, influencing purchase time, adopter categories,

and the rate of adoption.

Purchase Time:

© Elapsed time from awareness to purchase or rejection.

© Crucial predictor for widespread adoption.
© Research indicates different focuses for near and distant future adopters.

Adopter Categories:

© Innovators (first 2.5%), early adopters (next 13.5%), early majority (next 34%),
late majority (next 34%), and laggards (last 16%).
© Limited research on early and late adopters, but targeting early adopters is
valuable for recovering development costs.

Characteristics of Adopter Categories:

© Innovators:
o Tech enthusiasts, little risk perception, early adopters, opinion leaders.
© Early Adopters:
o Early purchasers, opinion leaders, assist others in evaluating new
products.
© Early Majority:
o Part of the mass market, perceived risk initially, wait for some adoption.
© Late Majority:
o Second half of mass market, longer evaluation, higher risk perception.
© Laggards:
o Very last to adopt, high risk perception, often switch to more advanced
innovations.
Non-Adopters:

© Those who don't fall into adopter categories are called non-adopters or non-
purchasers.
© Voluntary Simplicity:
o Some non-adopters may follow voluntary simplicity, focusing on inner
values and avoiding material possessions.

Differences Among Non-Adopters:

© Research on internet banking adoption found differences between adopters,

prospective adopters, and persistent non-adopters.
© Demographic characteristics alone are not effective in profiling adopters
versus non-adopters.

RATE OF ADOPTION
© Concerned with how quickly a new product is accepted by members of a social system.
© General trend: adoption getting faster worldwide.
© Fashion adoption has varying rates (fast for fads, slow for classics).

MARKETING OBJECTIVES:

© Aim for wide acceptance quickly to establish market leadership.

© Rapid adoption convinces intermediaries of the product's worthiness.

ADOPTION RATE AND EXTENT:

© Tracking time from introduction to adoption and the extent of adoption is essential.
© Adoption categories may not always follow a normal distribution; some involve initial
peaks, troughs, and then another increase.

ADOPTION STRATEGIES:

© Penetration Policy:
o Quick adoption, low introductory price to deter competition.
© Skimming Policy:
o High initial price, gradually reduced to attract different market segments.

STAGES IN THE ADOPTION PROCESS:

© Awareness, interest, evaluation, trial, adoption (or rejection).

© Assumption of extensive information search, but consumer involvement theory suggests
limited search for low-involvement products.

DETAILED ADOPTION PROCESS:

© Awareness Stage (Exposure):

o Target audience hears about the product through social media and personal selling.
© Interest Stage (Searching for Information):
o Audience searches for more information on Google, reads methods, and follows
reviews on social media.
© Evaluation:
 o Consumer considers alternatives, weighing advantages and practicality of each
method.
© Trial:
o Product is bought, tested for practicality, effectiveness, and cost-saving during usage.
© Adoption/Rejection (Decision-making):
o Consumer decides to buy more (adoption) and may recommend or rejects the
product based on trial experience.

THE ADOPTION PROCESS AND INFORMATION SOURCES

© Provides a structure for understanding consumers' information preferences at different

decision stages.

Information Sources Evolution:

© Traditionally, impersonal mass-media sources were deemed crucial for creating initial
product awareness.
© Importance of these sources was thought to decrease as the purchase decision progresses.
© Interpersonal sources (friends, salespeople) were believed to become more critical as the
decision approached.

Changing Nature of Interpersonal Sources:

© While interpersonal sources remain important, their nature has evolved.

© Today, information seekers are not solely reliant on friends or salespeople.
© Discussion forums, chat rooms, and blogs on the web are now available for almost any
product category.
© Online platforms not only provide relevant information but also facilitate direct interaction
and Q&A sessions.
© Experts in specific product or service categories often participate in online discussions.

Online Community Dynamics:

 © Consumers can pose questions in discussion groups and receive multiple responses.
© Responses, especially from those who have already purchased and used the product, hold
significant value.
© Consumers are no longer limited to knowing someone personally; they can connect with
relevant individuals electronically.

Impact on Purchase Decision:

© Information obtained from online platforms becomes particularly valuable in the final
stages of the purchase decision process.
© Electronic interactions allow consumers to tap into the experiences of others, enhancing
their decision-making.

A PROFILE OF A CONSUMER INNOVATOR

DEFINING THE CONSUMER INNOVATOR:

© Earliest purchasers of a new product, often the first 2.5% of the social system to adopt an
innovation.
© Definition can vary based on the new product's status or innovativeness criteria.
© Characteristics include higher levels of education, social interaction, opinion leadership,
cosmopolitanism, optimism, venturesomeness, and social status.

INTEREST IN PRODUCT CATEGORY:

© Consumer innovators exhibit higher interest in the product categories they are early
adopters of.
© They focus on specific features and technologies, indicating a deeper engagement with the
innovation.

INNOVATOR AS AN OPINION LEADER:

© Consumer innovators often serve as opinion leaders, influencing others' acceptance or

rejection of new products.
© Their enthusiasm or dissatisfaction can impact the broader acceptance of a new product.

PERSONALITY TRAITS:

© Consumer innovators are less dogmatic, open-minded, and express a need for uniqueness.
© They are inner-directed, relying on personal values in decision-making, contrasting with
other-directed non-innovators.
© Innovators tend to seek novel, complex, and unusual experiences, correlating with a
willingness to try new products.

PERCEIVED RISK AND VENTURESOMENESS:

© Consumer innovators have low perceived risk, indicating little fear of trying new products.
© Venturesomeness, a willingness to accept the risk of new purchases, aligns with actual
innovative behaviour.

PURCHASE AND CONSUMPTION CHARACTERISTICS:

 © Innovators are less brand loyal, more deal-prone, and heavier users of the innovated
product.
© Usage variety and finding new uses for innovations create additional market opportunities.

MEDIA HABITS:

© Innovators have greater exposure to product-specific magazines and lower TV exposure.

© Media habits may evolve with new technological developments, impacting innovators'
preferences.

SOCIAL CHARACTERISTICS:

© Consumer innovators are socially accepted, involved, and integrated into communities.
© Greater social involvement contributes to their effectiveness as opinion leaders.

DEMOGRAPHIC CHARACTERISTICS:

© Consumer innovators tend to be younger, more educated, with higher incomes and
occupational status.
© No consistent gender-related adoption pattern, but age, education, and income are
positively correlated.

GENERALIZED CONSUMER INNOVATORS:

© Innovativeness tends to be domain-specific, but within a category, innovators show a

consistent pattern of innovation.
© High-tech innovators, change leaders, and technophiles embrace and popularize new
technologies.

TECHNOLOGY AND INNOVATORS:

© The technology acceptance model (TAM) helps predict technology adoption.

© Perceived usefulness and ease of use influence adoption, but the hedonic aspect (fun) is also
crucial for consumers.

CROSS-CULTURAL CONSIDERATIONS:

© Most studies on consumer innovativeness are from Western countries.

© Limited research on innovativeness in emerging markets, cross-cultural validation needed
for a comprehensive understanding.

REFERENCE GROUPS
COMMUNICATION MODEL OVERVIEW:

© Components: Sender (source), Message (e.g., advertisement), Channel (e.g., YouTube),

Receiver (consumer).

FORMAL VS. INFORMAL COMMUNICATION:

© Formal: Paid TV advertisements.

© Informal: Personal feedback on social media, word of mouth.

POWER OF REFERENCING AND WORD OF MOUTH:

 © Example: Friend's social media feedback about a gym is more influential than a marketing
ad.
© Illustrates the impact of referencing and trust in personal opinions over paid advertising.

IMPORTANCE OF WORD OF MOUTH FOR MARKETERS:

© Marketers should focus on informal, credible references, especially opinion leaders.

© Word of mouth can significantly influence consumer decisions

REFERENCE GROUPS DEFINED:

© Definition: Individuals others use to evaluate themselves, forming attitudes toward an

object.
© Examples: Celebrities, sport stars, serving as points of reference

CREDIBILITY OF REFERENCE GROUPS:

© Reference groups perceived as credible by consumers.

© Various types of reference groups, including celebrities and sport stars

EXAMPLES OF REFERENCE GROUPS:

© Personal reference groups individuals belong to: family, friends, colleagues, gym buddies,
church group.

APPENDIX B
© Definition: Groups with direct contact influencing individual consumers as a point of
comparison or reference

TYPES OF GROUPS:

© Examples: Families, friends, co-workers, organization members, leisure groups, and

neighbours.
© Any group can become a reference group.

CHARACTERISTICS OF REFERENCE GROUPS:

© Basis for comparison or point of reference in forming responses and making buying
decisions.
© Distinctive norms of behaviour; members expected to conform to avoid sanctions.

TYPES OF REFERENCE GROUPS:

© Membership groups: Obtained membership, e.g., church congregation, social club.

© Automatic groups: Membership based on age, gender, occupation (e.g., age peer groups).
© Negative groups: Groups an individual rejects association with (e.g., smokers, drinkers).
© Associative or aspirational groups: Groups an individual aspires to (e.g., peer groups,
celebrities).

WAYS REFERENCE GROUPS INFLUENCE BEHAVIOUR:

 1. Normative influence: Group norms dictate behaviour, e.g., clothing choice, shopping
preferences.

2. Value-expressive influence: Consumer behaviour reflects certain values (e.g., health-

consciousness).

3. Informational influence: Acceptance of group opinions as credible, especially when assessing

products.

REFERENCE GROUP INFLUENCE IN PURCHASING:

© Private consumed luxuries:

o Not many people are going to see this product
o Strong influence on decision to buy the product but not a strong influence on brand
choice
o Water purifiers
o Between you and the business
o Rg don’t influence brands they do influence whether or not you are going to buy a
product
© Public consumed luxuries
o People are going to see you with this product
o To be seen publicly
o Products to show off, e.g., cars and cellphones
o Strong influence on decision to buy the product and strong influence on the voice of
the brand.
o Reference group has a big influence on what you buy.
© Public consumed necessity
o People are going to see you with the product and the thing is not optional.
o Clothes
o Strong influence on brand choice
© Privately consumed necessity
o No reference group influence on product and brand choice
o Underwear, mattress, toilet paper
OPINION LEADERS:

© Definition: Individuals within reference groups influencing consumer buying decisions.

© Role: Act as intermediaries in the two-step flow of communication.
© Influence: Particularly important for high-risk new products.
© Diffusion of innovation: Gradual acceptance process; opinion leaders play a crucial role.

OVERLAPPING ROLES:

© Every buyer is a member of several reference groups, influenced by them and opinion
leaders.
© Marketers must identify relevant reference groups and opinion leaders for effective
communication.

CHAPTER 15
WHAT IS A DECISION?
DECISION-MAKING OVERVIEW:
 © Daily decisions involve choosing from a wide range of product options.
© Decision-making is the process of choosing from available options.

IMPACT OF TOO MANY OPTIONS:

© Consequences: Dissatisfaction, regret, disappointment, decreased willingness to choose,

and reduced consumption rates.
© Consumer Perspective: Having too many options can lead to negative outcomes.

TYPES OF DECISION-MAKING SCENARIOS:

© Purchase decision: Choosing between making a purchase and not making one.
© Brand choice: Deciding between different brands, e.g., brand X and brand Y.
© Time allocation: Making choices about how to spend time, e.g., doing A or B.

NO-CHOICE SITUATIONS:

© Definition: Occurs when a consumer has no options and must make a specific purchase or
take a particular action.
© Example: Using a prescribed medication.
© No-choice decision is termed a Hobson's choice.

FREEDOM AND PRODUCT CHOICES:

© Consumer Expression: Freedom often linked to a wide range of product choices.

© Availability of Choice: Almost always an opportunity for consumers to make decisions.
© Exception: Severe poverty may lead to restricted choice sets and feelings of powerlessness.

NEGATIVE EFFECTS OF TOO MANY CHOICES:

© Empirical Findings: Overwhelming options can lead to the "too-much-choice effect," choice
overload, or hyper-choice.
© Consequences: Dissatisfaction, regret, disappointment, reduced willingness to choose, and
lower consumption rates.
CATEGORIES OF DECISIONS

© It is important to know that consumer decision-making involves more than the selection of
a number of brands.
© Categories of consumption and purchase decisions can be identified. Basic consumption
decision: buying a basic product like bread or milk for personal consumption from your
local store.
© Brand decision: buying a chicken meal from a branded supplier like Nando’s or Kentucky
Fried Chicken (KFC) for personal consumption.
© Channel purchase decision: buying your groceries from Checkers where you can choose
which channel you want to choose, for example, online or at the physical store.
© Payment purchase decision: paying the plumber attending to a water leak at your
house in cash or via online banking using an electronic transfer (EFT) for the service
delivered.

LEVELS OF CONSUMER DECISION-MAKING

EXTENSIVE PROBLEM SOLVING:

© Example: Buying a flat for the first time.

© Characteristics: Requires significant effort, time, and information.
© Occurs in purchasing expensive, important, or complex products.

LIMITED PROBLEM SOLVING:

© Example: Buying an electrical kettle.

© Characteristics: Basic criteria established, additional information fine-tuning.
© Common in purchasing updated versions of previously bought items.

ROUTINE RESPONSE BEHAVIOUR:

© Example: Buying daily or weekly products like toothpaste.

© Characteristics: Well-established criteria, minimal need for additional information.
© Consumers rely on existing knowledge and may review what they already know.
VIEWS OF CONSUMER DECISION-MAKING:

Economic View:

© Assumes rational decision-making with complete information.

© Criticisms: Consumers have limited resources, skills, and information.
© Practicality: Consumers often settle for satisfactory decisions, not perfect ones.

Passive View:

© Perceives consumers as impulsive and irrational.

© Consumers yield to marketers' interests and promotions.
© Limitation: Doesn't acknowledge the consumer's dominant role and influence.

Cognitive View:

© Consumers think about purchases, considering problem-solving.

© Information Processing: Consumers evaluate products, search for information.
© Heuristics: Consumers use shortcut decision rules to facilitate choices.

Emotional View:

© Decisions based on feelings and emotions.

© Brand Personification: Emotional connections with brands.
© Consumer Behaviour: Deep feelings associated with purchases, involving joy, fear, love, etc.
© Superstitious Beliefs: Impact on decision-making, even in non-conscious ways.
© Implications for Marketers: Understanding and incorporating emotional aspects in brand
development.
MODELS OF CONSUMER DECISION-MAKING
© The model is designed to tie together many of the ideas on consumer decision-making and
consumption behaviour discussed throughout the book. It is not meant to provide a
complete picture of the complexities of consumer decision-making, but is designed to
synthesise and coordinate relevant concepts into a significant whole.

INPUT:

Stimuli for Decision-Making:

© Examples: Products, prices, advertisements.

© Influence: Consumer's experience with the brand, knowledge, culture, lifestyle.
© Consumer's Culture and Lifestyle: Influence on decisions (e.g., interest in using a
motorbike).
Marketing Inputs:

© Influence: Marketing mix activities.

© Components: Product, advertising, direct marketing, personal selling, pricing, distribution.
© Impact: Controlled by consumer perception; marketers need to understand consumer
perceptions.

Socio-cultural Inputs:

© Influence: Non-commercial factors.

© Examples: Comments from friends, family, newspaper columns, cultural influences.
© Impact: Internalized factors affecting product evaluation and adoption.

PROCESS:

Psychological Concepts:

© Internal Influences: Motivation, perception, learning, personality, attitudes.

© Decision-Making Stages: Need recognition, pre-purchase search, evaluation of alternatives.

Need Recognition:

© Example: Planning a special dinner for a friend.

© Types: Actual state (problem with product performance) and desired state (desire for
something new).

Pre-Purchase Search:

© Information Sources: Advertisements, internet, social media.

© Example: Searching for the best restaurant for a special dinner.

Evaluation of Alternatives:

© Criteria: Based on experience, time schedule, budget, and desired experience.

© Concept of Evoked Set: Brands that meet criteria; Inept set (unacceptable); Inert set (not
considered).

OUTPUT:

Purchase Behaviour:

© Types: Trial purchase, repeat purchase, long-term commitment purchase.

© Strategies: Promotional efforts, free samples, discount coupons.
© Relationship with Brand Loyalty: Repeat purchase contributes to stability in the
marketplace.

Post-Purchase Evaluation:

© During Trial Purchase: Evaluation influenced by expectations and experiences.

© Outcomes: Neutral, satisfaction (exceeded expectations), dissatisfaction (did not meet
expectations).
© Reduction of Uncertainty: Consumers analyse experiences to reduce post-purchase
cognitive dissonance.
Post-Purchase Analysis:

© Strategies: Rationalization, seeking supportive advertisements, persuasion of others,

seeking reassurance.
© Importance: Influences future decisions, contributes to customer satisfaction.
© Customer Retention: Linked to brand reputation; satisfaction alone may not ensure
retention.

Decision to Do Nothing

© Reasons: Vary by type of service, culture, information overload.

© Impact of Information Overload: Can lead to confusion, abandonment, postponement,
seeking more information, or delegating the decision.
© Strategies to Reduce Confusion: Default settings, reliable testimonials, online reviewing
systems.

This comprehensive consumer decision-making model highlights the complex interplay of external
and internal factors throughout the decision-making process, emphasizing the importance of
understanding consumer perceptions and the dynamic nature of post-purchase evaluation.