MKT Report

Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 5
Consumer Behavior
CHAPTER 5 Consumer Behavior
Chapter Objectives
1. Define consumer behavior and describe the role
it plays in marketing decisions.
2. Describe the interpersonal determinants of
consumer behavior: cultural, social, and family
influences.
3. Explain each of the personal determinants of
consumer behavior: needs and motives,
perceptions, attitudes, learning, and self-concept
theory.
Copyright 2012 by South Western, a division of Cengage Learning. All rights reserved.
Chapter Objectives
4. Distinguish between high-involvement and lowinvolvement purchase decisions.
5. Outline the steps in the consumer decision
process.
6. Differentiate among routinized response
behavior, limited problem solving, and extended
problem solving by consumers.
Consumer Behavior
o Process through which buyers make
purchase decisions
o Marketers borrow extensively from
psychology and sociology to better
understand consumer behavior
Interpersonal Determinants Of
Consumer Behavior
o Cultural influences
Cultural influences means historical, geographical, and
familial factors that affect assessment and intervention
processes.
oCulture - Values, beliefs, preferences, and

tastes handed down from one generation to
the next.
Core Values in U.S. Culture

o American political culture contains a
number of core ideals and values.
Not all Americans share the same
views, of course, but the vast
majority subscribes to these general
ideals, including liberty,equality,
democracy,individualism,unity,
and diversity.
International Perspective on Cultural

Influences
o Cultural differences are particularly
important for international marketers.
Marketing strategies that prove successful
in one country often cannot extend to
other international markets because of
cultural variations.
Subcultures
Cultures are not homogeneous groups with
universal values, even though core values tend to
dominate. Each cultures includes numerous
subcultures. Understanding the differences among
subcultures can help marketers develop more
effective marketing strategies.
Subcultures - Groups with their own distinct
modes of behavior.
Note: Percentages do not total to 100 percent due to overlap of some racial and ethnic categories.
Source: Data from the U.SX. Census Bureau, Projected Population of the United States, by Race and Hispanic Origin: 2000 to 2050,
www.census.gov, accessed February 25, 2010, An Older and More Diverse Nation by Midcentury, U.S. Census Bureau News,
http://www.census.gov, accessed February 25, 2010.
Hispanic American
o Hispanic-Americans represent the fastest-growing
demographic in the United States (U.S.). Hispanic
is defined by the U.S. Census Bureau as a person
of Cuban, Mexican, Puerto Rican, South or Central
American, or other Spanish culture or origin
regardless of race. There are currently 50 million
Hispanic-American consumers, making this
market segment the second-largest in the U.S.,
behind Caucasian Americans. Not only is this
market large, but it also had a buying power of $1
trillion in 2010, which is expected to reach to $1.5
trillion in 2015.
o The Hispanic market is ethnically and generationally

diverse, creating opportunities for niche markets
within the larger Hispanic marketplace. With this
diverse market, it is important for food manufacturers
and marketers to go beyond the term Hispanic' and
recognize that there are some 20 different
nationalities that make up the total Hispanic
population. Having said that, many Hispanic-American
families closely resemble America's idealized concept
of the 1950s nuclear family; they tend to be young,
and live in large, traditional, married-with-children
families, with lots of participation from grandparents.
African-American Consumers
o African-Americans make an average of 156 shopping
trips per year, compared with 146 for the total market.
Favoring smaller retail outlets, blacks shop more
frequently at drug stores, convenience stores, and dollar
stores. Beauty supply stores are also popular within the
black community, as they typically carry an abundance
of ethnic hair and beauty aids reside that cater
specifically to the unique needs of African-American hair
textures. Overall, health and beauty supply stores have
an average household penetration rate of 46 percent
among African-Americans, and the average black
household spends an average of $94 in this store
channel each year, providing a significant opportunity to
connect with black shoppers.
Asian American Consumer

With China and India taking the front seat as
important immigration drivers in the U.S., its
actually the younger Asian-American cohorts who
are predominantly U.S. born. Seventy-nine percent
of Asian-Americans under 18 are U.S.-born. These
younger Asian-Americans, many of whom have
been raised in multigenerational households with
strong ties to their cultural heritage, are
expanding the body of am bicultural consumers
able to navigate seamlessly between cultures and
are exerting a strong influence on the U.S.
mainstream.
o Social influences
o Everyone belongs to multiple social groups:
family, neighborhood, clubs, and sports
teams
Consumer Behavior
o Reference groups - Groups whose value
structures and standards influence a
persons behavior
o Social classes
o Six classes: upper-upper, lower-upper,
upper-middle, lower-middle, working class,
and lower class
o Opinion leaders - Trendsetters who

purchase new products before others in a
group and then influence others in their
purchases
Consumer Behavior
o Family influences
o Family structure has changed over the last
century
o Children and teenagers represent a huge

market and they influence what their
parents buy
Personal Determinants of Consumer

Behavior
o Need - Imbalance between a consumers
actual and desired states
o Motive - Inner state that directs a person
toward the goal of satisfying a need
Physiological Needs
o Needs at the most basic level

concern essential requirements
for survival, such as food, water,
shelter, and clothing.
Safety Needs
o Second level needs include security,
protection from physical harm, and
avoidance of the unexpected. To
gratify this need, consumers may
buy disability insurance or security
devices.
Social/Belongingness Needs
o Satisfaction of physiological and safety
needs leads a person to attend to thirdlevel needs the desire to be accepted by
people and groups important to that
individual. To satisfy this need, people may
join organizations and buy goods or
services that make them feel part of the
group.
Esteem Needs
o People have a universal desire for a sense
of accomplishment and achievement. They
also wish to gain the respect of others and
even exceed others performance once
lower-order needs are satisfied.
Self-Actualization
o At the top rung of Maslows ladder of
human needs is peoples desire to realize
their full potential and fine fulfillment by
expressing their unique talents and
capabilities. Companies specializing in
exotic adventure or educational trips aim
to satisfy consumers needs for selfactualization.
Perceptions
o Meaning that a person attributes to incoming
stimuli gathered through the five senses
o A persons perception of an object or event
results from the interaction of two types of
factors:
1. Stimulus factors characteristics of the physical
objects such as size, color, weight, and shape
2. Individual factors unique characteristics of the
individual including not only sensory processes
but also experiences with similar inputs and basic
motivations and expectations
Perceptual Screens
o The mental filtering processes

through which all inputs must
pass
Subliminal Perception
o Subconscious receipt of incoming
information.
o Subliminal advertising is aimed at the
subconscious level of awareness to
circumvent the audiences perceptual
screens. Although subliminal advertising is
considered manipulative, it is exceedingly
unlikely to induce purchasing except by
people already inclined to buy.
Subliminal Perception
o There are three reasons for this:
1. Strong stimulus factors are required just to
get a prospective customers attention
2. Only a very short message can be
transmitted
3. Individuals vary greatly in their thresholds
of their consciousness
Attitudes
o It is defined as a persons enduring favorable
or unfavorable evaluations, emotions, or
action tendencies toward some object or
idea.
o Having an enduring characteristic, attitudes
are hard to change. It is because attitudes
are based on peoples values and beliefs, but
that doesnt stop sellers from trying, though.
They want people to have positive rather
than negative feelings about their offerings.
3 Attitude Components
1. Cognitive the individuals
information and knowledge about an
object or concept
2. Affective deals with feelings or
emotional reaction
3. Behavioral involves tendencies to
act in a certain manner
Changing Consumer Attitudes
a. Attempt to produce consumer attitudes

that will motivate purchase of a
particular product
b. Evaluate existing consumer attitudes
and then make the product features
appeal to them
Modifying the Components of

Attitude
Attitudes change in response to
inconsistencies
among the three components. Marketers
can work
to modify attitudes by:
a.Providing evidence of product benefits
b.Correcting misconceptions
c.Engaging buyers in new behavior
Learning
o It is defined as immediate or expected

changes in consumer behavior as a
result of experience
Components of learning process:
1. Drive any strong stimulus that impels

action
2. Cue any object in the environment
that determines the nature of
consumers response to a drive
3. Response an individuals reaction to a
set of cues and drives
4. Reinforcement the reduction in drive
that results from a proper response
Shaping
o It is the process of applying a series of

rewards and reinforcements to permit
more complex behavior to evolve
4 Steps in the Shaping Process

1. Getting consumers try the product
2. Entice consumers to buy the item with
little financial risk
3. Motivate persons to buy the item again at
a moderate cost
4. Consumers decide whether to buy the
item at its true price without a discount
coupon
Self-Concept Theory
o Self-Concept is a persons
multifaceted picture of himself or
herself
4 Components of Self-Concept
1. Real Self an objective view of the total
person
2. Self Image the way an individual views
himself or herself
3. Looking-glass Self the way an individual
thinks others see him or her
4. Ideal Self serves as a personal set of
objectives, because it is the image to which the
individual aspires
Source: Roger Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, 10th ed.
(Mason, OH: South-Western, 2006).
The Consumer Decision Process

o High-involvement purchase decisions
o Purchases with high levels of potential social or
economic consequences
o Low-involvement purchase decisions

o Routine purchases that pose little risk to the consumer

o Problem or opportunity recognition
o Consumer becomes aware of a gap between
the existing situation and a desired situation
o Search
o Consumer gathers information about the
attainment of a desired state of affairs
o Evoked set - Number of alternatives that a
consumer actually considers in making a
purchase decision

o Evaluation of alternatives
o Consumer evaluates the evoked set of
options and as the search progresses, the
consumer accepts, distorts, or rejects
o Evaluative criteria - Features that a
consumer considers in choosing among
alternatives

o Purchase decision and purchase act
o After evaluating each alternative in the
evoked set, the consumer decides where or
from whom to make the purchase
o Post-purchase evaluation
o Cognitive dissonance - Imbalance among
knowledge, beliefs, and attitudes that
occurs after an action or decision, such as a
purchase
Classifying Consumer ProblemSolving Processes

o Routinized response behavior
o Limited problem solving
o Extended problem solving

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Principles of

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

oCulture - Values, beliefs, preferences, and

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

Core Values in U.S. Culture

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

International Perspective on Cultural

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

o The Hispanic market is ethnically and generationally

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

Asian American Consumer

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

o Opinion leaders - Trendsetters who

CHAPTER 5 Consumer Behavior

o Children and teenagers represent a huge

CHAPTER 5 Consumer Behavior

Personal Determinants of Consumer

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

o Needs at the most basic level

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

o The mental filtering processes

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

CHAPTER 5 Consumer Behavior

Changing Consumer Attitudes

a. Attempt to produce consumer attitudes

CHAPTER 5 Consumer Behavior

Modifying the Components of

CHAPTER 5 Consumer Behavior

o It is defined as immediate or expected

CHAPTER 5 Consumer Behavior

Components of learning process:

1. Drive any strong stimulus that impels

CHAPTER 5 Consumer Behavior