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SESSION 1:

Foundations of Consumer Behavior

Chapter 1: An Introduction to Consumer Behaviour

Chapter 2: Consumer and Social Well-Being

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
SESSION 1:
Foundations of Consumer Behavior
Chapter 1:
• How consumers influence the field of marketing
• How marketers influence consumers.
• Describe the discipline of consumer behavior
• Some of the different approaches to understanding
what makes consumers tick.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Chapter 1: Learning Objectives
1. Consumer behavior is a process.
2. Marketers have to understand the wants and needs of
different consumer segments.
3. Our choices as consumers relate in powerful ways to the rest
of our lives.
4. Our motivations to consume are complex and varied.
5. Technology and culture create a new “always on” consumer.
6. Many different types of specialists study consumer behavior.
7. There are differing perspectives regarding how and what we
should understand about consumer behavior.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
SESSION 1:
Foundations of Consumer Behavior
Chapter 2:

• Look at the broad issue of well-being, at both the


positive and negative ways the products we use
affect us
• Focus on the central role of ethics in marketing
decisions.

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Learning Objectives
1. Ethical business is good business.
2. Marketers have an obligation to provide safe and
functional products as part of their business activities.
3. Consumer behavior impacts directly on major public policy
issues that confront our society.
4 . Consumer behavior can be harmful to individuals and to
society.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
SESSION 2:
Internal Influences on Consumer Behavior

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
SESSION 2:
Internal Influences on Consumer Behavior
• In this section, we focus on the internal dynamics of
consumers.
• Although “no man is an island,” each of us are to some
degree “self-contained” in terms of receiving information
about the outside world.
• We are constantly confronted by advertising messages,
products, and other people—not to mention our own
thoughts about ourselves—that affect how we make
sense of the world and of course what we choose to buy.
• Each chapter in this section looks at some aspect that
may be “invisible” to others but is important to understand
how consumers make choices.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Consumer Behavior: Buying, Having,
and Being
Twelfth Edition
Chapter 3
Perception
The ability to see, hear, or become
aware of something through the
senses.
Ø Describes the process of
perception
Ø The way we absorb and interpret
information about products and
other people from the outside
world
Learning Objectives (1 of 2)
3.1 The design of a product today is a key driver of its
success or failure.
3.2 Products and commercial messages often appeal to our
senses, but because of the profusion of these messages
we don’t notice most of them.
3.3 Perception is a three-stage process that translates
raw stimuli into meaning.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Learning Objectives (2 of 2)
3.4 Subliminal advertising is a controversial—but largely
ineffective—way to talk to consumers.
Subliminal Advertising (quảng cáo tiềm thức): phương
thức này sử dụng các thông điệp mang tính tiềm thức,
và được cảm nhận bằng tiềm thức. Những dấu hiệu của
quảng cáo tiềm thức không thể nhận ra bằng mắt
thường, mà bằng chính tiềm thức. phương thức này sử
dụng những thông điệp ẩn và những ảo giác về thị giác.
advertising that uses images and sounds that the conscious
mind is not aware of, in order to influence people and
make them attracted to a product: Subliminal advertising
is banned in the UK.
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Learning Objectives (2 of 2)
3.5 We interpret the stimuli to which we do pay attention
according to learned patterns and expectations.
3.6 The field of semiotics helps us to understand how
marketers use symbols to create meaning.

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Learning Objective 3.1
The design of a product is often a key driver
of its success or failure.
• In recent years, the sensory experiences we receive from
products and services have become a high priority when
we choose among competing options.
• Consumers increasingly want to buy things that will give
them hedonic value in addition to functional value. They
often believe that most brands perform similarly, so they
weigh a product’s aesthetic qualities heavily when they
select a brand.

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Sensation – Cảm giác

• Sensation refers to the immediate response of our


sensory receptors (eyes, ears, nose, mouth, fingers, skin)
to basic stimuli such as light, color, sound, odor, and
texture.
• Perception is the process by which people select,
organize, and interpret these sensations.
• The study of perception focuses on what we add to these
raw sensations to give them meaning.

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Sensation
• Vision
• Scent
• Sound
• Touch
• Taste
• Hedonic consumption
• Context effects

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Sensation

• Our senses play quite a role in the decisions marketers


make.
• For instance, marketers rely heavily on visual elements in
advertising, store design, and packaging.
• They communicate meanings on the visual channel
through a product’s color, size, and styling.
• An interest in scent has spawned new products.

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Sensation
Examples:
• Starbucks requires baristas to grind a batch of coffee each
time they brew a post instead of just once each morning to
ensure customers have that intense smell during their
Starbucks’ experience.
• Stores and restaurants often play certain kinds of music to
create a certain mood.
• Recent research found that participants who simply touch
an item for 30 seconds or less had a greater level of
attachment with the product. This connection in turn
boosted what they were willing to pay for it.
• A food item’s image and the values we attach to it
influence how we experience the actual taste.

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Perception
• Perception is the process by which people select,
organize, and interpret these sensations.
• The study of perception focuses on what we add to
these raw sensations to give them meaning.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Hedonic consumption
• Hedonic consumption includes how consumers interact
with the emotional aspects of products. In other words,
products are rarely strictly functional. Consumers may
want hedonic value too.
• Target is a company that has embraced this insight. Target
focuses on products with great design as well as
functionality.
• The Coca-Cola bottle also illustrates an example of how
design can facilitate product success.

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Sensory Marketing
When guests at Omni luxury hotels
Welcome to
visit the hotel chain’s Web site to
the new era of
reserve a room, they hear the sound
sensory
of soft chimes playing.
marketing:
The signature scent of lemongrass
Companies
and green tea hits them as they
think carefully
enter the lobby.
about the
In their rooms, they find eucalyptus impact of
bath salts and Sensation Bars, sensations on
minibars stocked with items such as consumers'’
mojito-flavored jellybeans, and product
miniature Zen gardens. experiences.

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Sensory Marketing
• From hotels to carmakers to brewers, companies recognize
that our senses help us decide which products appeal to us;
and which ones stand out from a host of similar offerings in the
marketplace.
• In this section, we’ll take a closer look at how some smart
marketers use our sensory systems to create a competitive
advantage.
• Marketers rely heavily on visual elements in advertising, store
design, and packaging. Many of our reactions to color come
from learned associations. These are cultural connotations
such as the color black for mourning. But other reactions are
biological. Women tend to be drawn to brighter colors, for
instance. Because colors are so powerful, they are an
important concern in packaging design.

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Vision (1 of 2)
• Marketers rely heavily on visual elements in
advertising, store design, and packaging. They
communicate meanings on the visual channel
through a product’s color, size, and styling.
• Trade dress: when some color combinations come
to be so strongly associated with a corporation.
• Color forecasts: are colors that manufacturers and
retailers buy so they can be sure they stock up on
the next hot hue.

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Vision (2 of 2)
Table 3.1 Marketing Applications of Colors: how experts link
specific colors to marketing contexts.

Color Associations Marketing Applications


Yellow Optimistic and Used to grab window shoppers’
youthful attention
Red Energy Often seen in clearance sales
Blue Trust and security Banks
Green Wealth Used to create relaxation in stores
Orange Aggressive Call to action: subscribe, buy or sell
Black Powerful and sleek Luxury products
Purple Soothing Beauty or anti-aging products

Source: Adapted from Leo Widrich, “Why Is Facebook Blue? The Science Behind Colors in Marketing,”
Fast Company (May 6, 2013), fastcompany.com accessed February 23, 2015.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Odor and Scents
• Like color, odor can also stir emotions and memory.
• Scent Marketing is a form of sensory marketing that we
may see in underwear, detergents, and more.
• Marketers are seeking ways to exploit the power of scent.
You may notice products with scent such as aircraft cabins.
A consistent scent could ultimately register with consumers
as a brand’s sensory signature.
• Odors stir emotions or create a calming feeling. They
invoke memories or relieve stress.
• Retailers like Hugo Boss often pump a “signature” scent
into their stores; one study reported that “warm scents”
such as vanilla as opposed to “cool scents” such as
peppermint enhance shoppers’ purchases of premium
brands.
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For Reflection (1 of 8)
• Imagine you are the marketing consultant for the package
design of a new brand of premium chocolate.
• What recommendations would you make regarding sight
and scent?

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Learning Objective 3.2
Sensory marketing means that companies pay extra
attention to how our sensations affect our product
experiences. Marketers recognize that our senses help us to
decide which products appeal to us. In addition to scent and
sight, sound, touch, and taste are also relevant.

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Sound
• There are many aspects of sound relevant to marketers.
Brands can use audio watermarking to encourage the
retention of the message - when producers weave a
sound/motif into a piece of music that acts like an earworm
we compulsively hum.

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Touch
• Encouraging shoppers to touch a product encourages them
to imagine they own it, and researchers know that people
value things more highly if they own them: This is known as
the endowment effect.
• One set of researchers reported that participants who simply
touched an item for 30s or less created a greater level of
attachment to the product; this connection in turn boosted
what they were willing to pay for it.
• Indeed, the power of touch even translates to online
shopping where touchscreens create a stronger feeling of
psychological ownership compared to products consumers
explore using a a mouse.

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Touch

• Touch can even influence sales interactions. Consumer


researchers are studying the role that haptic sense (touch)
plays in consumer behavior. Basically, we are more sure
about what we perceive if we can touch it. We have a
tendency to want to touch objects.
• Some Japanese companies take this idea a step farther with
their practice of Kansei engineering, a philosophy that
translates customers’ feelings into design elements.

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Taste

• Taste is influenced by biological factors (taste receptors) and


cultural factors (the image and values associated with food
influence how we experience taste).

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For Reflection (2 of 8)
• Some studies suggest that as we age, our sensory
detection abilities decline. What are the implications of this
phenomenon for marketers who target elderly consumers?

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For Reflection (3 of 8)
• How has your sense of touch influenced your reaction to a
product?
• Which of your senses do you feel is most influential in your
perceptions of products?

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Learning Objective 3.3
The Stages of Perception:
Perception is a three-stage process that translates raw
stimuli into meaning

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Stages of Perception
• Exposure
• Attention
• Interpretation

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Figure 3.1 Perceptual Process

Figure 3.1 shows how as consumers we


are exposed to sensory stimuli through our
sensory receptors. We then interpret those
stimuli to which we paid attention. This
image also emphasizes the three key
stages of perception: exposure, attention,
and interpretation.
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Figure 3.1 Perceptual Process

• Perception is the process by which physical sensations, such as


sights, sounds, and smells, are selected, organized, and
interpreted.
• The eventual interpretation of a stimulus allows it to be
assigned meaning.
• A perceptual map is a widely used marketing tool that evaluates
the relative standing of competing brands along relevant
dimensions.
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Stage 1: Exposure

• Exposure occurs when a stimulus comes within the range


of someone’s sensory receptors.
• The science that focuses on how the physical environment
is integrated into our personal, subjective world is known
as psychophysics.

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Stage 2: Attention
• Attention is the extent to which processing activity is
devoted to a particular stimulus. The allocation of
processing activity can vary depending on the
characteristics of the stimulus and the recipient.

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Stage 2: Attention
• Getting the attention of young people in particular is a
challenge. A large proportion of teens report that they
engage in multitasking, where they process information
from more than one medium at a time as they alternate
among their cell phones, TVs, and laptops.
• One study observed 400 people for a day and found that
96% of them were multitasking about a third of the time
they used media.
• As of 2010, more than half of teens report that they
engage in multitasking, or processing information from
more than one medium at a time.

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How Do Marketers Get Attention?
• Networks try to engage viewers with original
content during commercial breaks.
• Rich media advertisements online use
movement to get viewer attention.
• Teaser ads start a story on television and ask
you to go to the website for the rest of the ad.
• Doing something novel/unexpected.

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Interpretation
• Interpretation refers to the meaning we assign to sensory
stimuli, which is based on a schema.
• As people differ in terms of the stimuli that they perceive,
the meanings we assign to these stimuli vary as well
• Two people can see the same event but their interpretation
can be completely different.

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Brand Positioning
• Perceptual positioning is important because our evaluation
of a product is the result of what it means rather than what
it does. Our perceptions of this meaning are the basis for
the product’s market position.
• Perceptions of a brand consist of functional attributes (e.g.,
its features, its price, and so on) and symbolic attributes
(its image, and what we think it says about us).
• When a marketer understands how consumers think about
a set of competing brands, it can use these insights to
develop a positioning strategy. Marketers can use many
dimensions to carve out a brand’s position in the market
place including lifestyle, price leadership, attributes,
product class, competitors, occasions, users, and quality

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Brand Positioning
• Positioning strategy is a fundamental part of a
company’s marketing efforts as it uses elements of the
marketing mix to influence the consumer’s interpretation of
its meaning. There are many dimensions that can be used
to establish a brand’s position

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Examples of Brand Positioning

Lifestyle Grey Poupon is “high class”


Price leadership L’Oreal sells Noisome brand face cream
Attributes Bounty is “quicker picker upper”
Product class The Spyder Eclipse is a sporty convertible
Competitors Northwestern Insurance is the quiet
company
Occasions Use Wrigley’s gum when you can’t smoke
Users Levi’s Dockers targeted to young men
Quality At Ford, “Quality is Job 1”

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For Reflection (8 of 8)
• How do your favorite brands position themselves in the
marketplace?
• Which possible positioning strategies seem to be most
effective?

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