Survey
* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project
Download Consumer Influences Text Slides - California State University
Document related concepts
no text concepts found
Transcript
COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. CHAPTER 7 Demographics, Psychographics, and Personality COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics Personality Personal Values Lifestyles COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics is the size, structure, and distribution of a population COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics is the size, structure, and distribution of a population Marketers use demographic analysis as market segment descriptors and in trend analysis COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Consumer analysts use demographic trends to predict changes in demand for and consumption of specific products and services COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Consumer analysts use demographic trends to predict changes in demand for and consumption of specific products and services Demographic analysis provides information for social policy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis and Social Policy Demographics used in analyzing policy questions related to the aggregate performance of marketing in society (macromarketing) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Consumer analysts use demographic trends to predict changes in demand for and consumption of specific products and services Demographic analysis provides information for social policy Industrial demand is ultimately derived from consumer demand COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic and Industrial Demand Analysis of demographic trends is important for industrial and business-to-business marketing In an industrial firm, you must understand not only the customers’ minds, but also the minds of the customers’ customers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Changing Structure of Markets Geographic Factors Economic Resources Global Markets COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Market analysis requires information about people with needs ability to buy willingness to buy authority to buy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets How many people will there be? birthrate natural increase fertility rate total fertility rate population momentum COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Birthrate: number of live births per 1,000 population in a given year Natural increase: surplus of births over death in a given period Fertility rate: number of live births per 1,000 women of childbearing age (15 to 44 years) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Total fertility rate: average number of children that would be born alive to a woman during her lifetime if she were to pass through all of her childbearing years conforming to age-specific fertility rates of a given year COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Population momentum: future growth of any population will be influenced by its present age distribution COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Factors affecting birthrates: Age distribution of population Family structure Social attitudes toward family/children Technology COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Structure of Consumer Markets Factors affecting birthrates: Age distribution of population Family structure Social attitudes toward family/children Technology Increasing life expectancy Immigration represents about 30% of annual growth in United States COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. U.S. Population Projections COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing U.S. Age Distribution Changes in age distribution affects the types of products and services that will be bought and consumed in the future Cohort analysis is fundamental to understanding changing consumer markets A cohort is any group of individuals linked as a group in some way COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing U.S. Age Distribution The key to cohort analysis is examining the influences that are shared by most people in a specific group Ultimately, these influences affect consumer decision processes and the types of products, brands, and retailers consumers prefer when responding to a firm’s marketing strategy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Children As Consumers Projected increase in number of young children between 2000 and 2010 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Children As Consumers Projected increase in number of young children between 2000 and 2010 The importance of children as consumers increases even more, with the higher proportion of firstorder babies generating higher demand for quality products and services COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Children As Consumers Most parents do most of the buying Children often involved in family purchasing decisions Children often have their own ability to buy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Generation Y Born in the 1980s and early 1990s with 72 million members Greater need for peer acceptance, which often guides product and brand choice More likely to switch brands quicker than other segments Teens like the social aspects of shopping with friends COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Appealing to Generation Y COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Generation X (Young Adults) Segment of 25-to-34 year olds is declining but will have a slight increase with the inclusion of older Gen Y consumers Need to buy products to set up households and for young children With many needs and greater financial restraints, they often shop at value-oriented retailers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Baby Boomers or Muppies This group (45 to 64 years) is projected to grow by 19 million by 2010 Good market for luxury travel, spas, health clubs, cosmetics, salons, diet plans foods, and health foods Group represents the greatest share of the workforce, the greatest share of income, and the greatest share of voting power, and political influence COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Young Again Market Also referred to as mature market, seniors, and elderly These segments are expected to grow substantially Despite advanced chronologic age, many in this segment feel, think, and buy young COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Young Again Market Cognitive age: the age one perceives one’s self to be Cognitive age is measured in terms of how people feel and act, express interests, and perceive their looks Can be used with chronologic age to better target segments, create more effective content, and select the most efficient media channels COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Young Again Market Important segmentation variables for this group include health, activity level, discretionary time, engagement in society, and gender Communicating with this segment often requires alteration of traditional messages and materials - larger type and bright colors - newspapers and AM radio - sensitive to revealing their age COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Macromarketing to an Aging Population The aging populations of the United States, Japan, Canada, and Europe will have enormous effects on macromarketing and social policy Younger consumers may have considerably less financial resources at their disposal due to future contributions to Social Security and Medicare COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Macromarketing to an Aging Population One solution to this problem includes increasing the age at which benefits begin, thus changing the age at which people and organizations expect to retire Quasi-retirement is another option where more experienced workers fill in for younger workers during vacations, sabbaticals, training, or maternity leaves COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Geography of Demand Geodemography, refers to where people live, how they earn and spend their money, and other socioeconomic factors COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Geography of Demand Geodemography, refers to where people live, how they earn and spend their money, and other socioeconomic factors The study of demand related to geographic areas assumes that people who live in proximity to one another also share similar consumption patterns and preferences Cities are the most important unit of analysis in most marketing plans COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Geography of Demand Metropolitan statistical area (MSA): a free-standing metropolitan area surrounded by non-metropolitan counties and not closely related to other metropolitan areas Primary MSA (PMSA): metropolitan area closely related to another city Consolidated MSA (CMSA): a grouping of closely related PMSAs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Geography of Demand The greatest gains in population are expected in California, Texas and Florida These states are considered prime candidates for new stores compared to other states where populations may be declining Growth rate may be deceptive unless the size of the population is also taken into account Geographic variables affect many components of a firm’s marketing strategy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources The ability to buy, typically measured by income and wealth COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources Income: money from wages and salaries as well as interest and welfare payments COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources What consumers think will happen in the future (consumer confidence) heavily influences consumption Influences whether consumers will increase their debt or defer spending to pay off debt Measures of consumer confidence are important in making decisions about inventory levels, staffing, or promotional budgets COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources Income: money from wages and salaries as well as interest and welfare payments Wealth: a measure of a family’s net worth or assets in things such as bank accounts, stocks, and a home, minus its liabilities such as home mortgage and credit card balances COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Economic Resources Net worth influences willingness to spend but not necessarily ability to spend, because much wealth is not liquid and cannot be spent easily How much people accumulate over the years is more a function of how much they save rather than how much they earn COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Targeting the Up Market The superaffluent represent the top quintile of consumers in terms of income Households often consists of two income earners who place a high value on time They value extra services provided by some retailers Saving money is as important as spending it for many individuals in this group COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Targeting the Up Market Shop discount stores, use coupons, and wait for sales More print oriented in communications Simple ads that promote image Credibility of source selling product Product reviews influence this group COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Targeting the Down Market Throughout the world, the majority of consumers are low income Retailers such as Wal*Mart have found success by providing good products at reasonable prices Closeout stores offer brand name products at deep discounts to at all income-level consumers Dollar stores are one of the fastest growing retail categories COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Targeting the Down Market Provide good products at reasonable prices Maintaining attractive stores Offering stylish and up-to-date products Have friendly employees that treat customers with respect COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Demographic Analysis to Predict Consumer Behavior Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Market Analysis The most attractive markets are countries that are growing both in population and in economic resources COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Market Analysis The most attractive markets are countries that are growing both in population and in economic resources Which countries will grow the most in the future? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Market Analysis The most attractive markets are countries that are growing both in population and in economic resources Which countries will grow the most in the future? Which countries have the highest per capita income? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Market Analysis Low income countries offer an advantage to firms looking to buy products from the lowest-cost source There are pockets of consumers who are able to buy products, even in the poorest countries COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Emerging Markets Marketing programs should focus on creating brand awareness (because competitors will follow) and stimulating product trial Marketers may have to teach consumers about products taken for granted (deodorant) Products may have to be adapted to local values COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in the Pacific Rim COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in the Pacific Rim South Asia India China Australia Japan COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in Latin America COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in Latin America Some of the most attractive markets include Brazil, Venezuela, Colombia, Argentina, and Chile Most countries have high population growth rates, moderately high incomes close proximity Intermarket segmentation provides a basis to identify segments that can afford certain items COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in Eastern Europe COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in Eastern Europe The attractiveness of Eastern European markets lies in their similar preferences to Western consumers Hungary and Poland have received much attention from global marketers Marketers have launched a myriad of successful brands COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in The EU COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in The EU The EU is a market larger than the United States Extremely low population growth makes customer retention extremely important for marketers Products and people move across borders easily Efficiencies include logistics, financial arrangements, and marketing economies of scale COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior in The EU Efficiencies include logistics, financial arrangements, and marketing economies of scale Marketers can approach Europe as a single market, but national identity still exists among consumers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics Personality Personal Values Lifestyles COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Personality: consistent responses to environmental stimuli an individual’s unique psychological makeup, which consistently influences how the person responds to his or her environment COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Personality: How does personality influence consumer behavior? Psychoanalytic Theory Sociopsychological Theory Trait-Factor Theory COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Psychoanalytic theory Human personality system consists of the id, ego, and superego The dynamic interaction of these results in unconscious motivations that are manifested in observed human behavior Personality is derived from conflict between the desire to satisfy physical needs and the needs to be a contributing member of society COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Psychoanalytic theory Personality is a result of more than just subconscious drives Some advertising is influenced by psychoanalytic approach COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Sociopsychological Theory Recognizes interdependence of the individual and society—individual strives to meet needs of society and society helps individual attain personal goals Social variables (rather than biological instinct) are most important in shaping personality Behavioral motivation is directed to meet those needs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Sociopsychological Theory Person may buy a product that symbolizes an unattainable or unacceptable goal—the acquisition fulfills some subconscious “forbidden desire” COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Trait-Factor Theory Quantitative approach to personality Personality made up of traits: any distinguishable, relatively enduring way in which one individual differs from another Understanding consumer traits can be useful in marketing planning COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Trait-Factor Theory Assumes that traits are common to many individuals and vary in absolute amounts among individuals Traits are relatively stable and exert fairly universal effects on behavior regardless of the environmental situation Traits can be inferred from the measurement of behavioral indicators COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personality Trait-Factor Theory Trait theory is most useful to marketing strategists in developing brand personality—the personality consumers interpret from a specific brand Brands may be characterized as oldfashioned, modern, fun, provocative, masculine, or glamorous COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Predicting Buyer Behavior Research typically attempts to find relationships between personality variables and consumer behaviors COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Predicting Buyer Behavior Research typically attempts to find relationships between personality variables and consumer behaviors Research tried to predict brand and store preference based on personality but with poor results COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Predicting Buyer Behavior Research typically attempts to find relationships between personality variables and consumer behaviors Research tried to predict brand and store preference based on personality but with poor results Personality is just one variable in the consumer decision making process COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics Personality Personal Values Lifestyles COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personal Values Values: Represent consumer beliefs about life and acceptable behavior Unlike attitudes, values transcend situations or events and are more enduring because they are more central in the personality structure COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personal Values Values: Represent three universal requirements: biological needs, requisites of coordinated social interaction, and demands for group survival and functioning Values express the goals that motivate people and the appropriate ways to attain those goals COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Personal Values Social values define “normal” behavior for a society or group Personal values define “normal” behavior for an individual Personal values reflect the choices an individual makes from the variety of social values or social systems to which they are exposed Individuals pick and choose which social values to emphasize COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Rokeach Value Scale (RVS) Values are concerned with goals and ways of behaving to obtain them Values are enduring beliefs that specific modes of conduct or end states of existence are personally or socially preferable to opposing modes of conduct or end states or existence COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Rokeach Value Scale (RVS) RVS asks people to rank the importance of a series of goals and ways of behaving which can be analyzed by whatever variable might be of interest in consumer analysis Consumer analysts are using values as a criterion for segmenting the population into homogeneous groups COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Rokeach Value Scale (RVS) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Schwartz Value Scale (SVS) Designed to measure a comprehensive set of values thought to be held by nearly everyone Values are trans-situational goals that serve the interest of individuals or groups and express one of ten universal motivations or value types The ten values and four higherorder value domains represent a continuum of related motivations COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Structural Relation of Motivational Value Types COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Value Type Exemplary Values COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Value Type Exemplary Values Power Authority, wealth Achievement Successful, capable Hedonism Pleasure, enjoying life Stimulation Daring, exciting life Self-direction Creativity, curious Universalism Social justice, equality Benevolence Helpful, honest Tradition Humble, devout Conformity Politeness, obedient Security Social order, clean COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Consumer Decision Process Personal values help explain how we answer the question, “Is this product for me?” While important in the need recognition stage, values also affect consumers in determining evaluative criteria Values influence the effectiveness of communications programs and are enduring motivations COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Consumer Decision Process Laddering: in-depth probing directed toward uncovering higher-level meanings at both the benefit (attribute) level and the value level It seeks linkages between product attributes, personal outcomes, and values that serve to structure components of the cognitive network in a consumer’s mind COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Consumer Decision Process Identifying which product attribute appeals to which value-based segment can guide alternative advertising and marketing strategies COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Analyzing and Predicting Consumer Behavior Demographics Personality Personal Values Lifestyles COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Lifestyle Concepts Lifestyle: patterns in which people live and spend time and money Reflects a person’s activities, interests, and opinions as well as demographic variables COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Lifestyle Concepts Lifestyle: patterns in which people live and spend time and money Reflects a person’s activities, interests, and opinions (AIO) as well as demographic variables Since lifestyles change readily, marketers must keep research methods and marketing strategies current COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Lifestyle Concepts Psychographics: an operational technique to measure lifestyles; it provides quantitative measures and can be used with the large samples needed for definition of market segments Can also be used in qualitative research techniques such as focus groups or in-depth interviews COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Lifestyle Concepts Demographics profile who buys products whereas psychographics focus on why they buy AIO measures: activities, interests, and opinions of consumers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. AIO Categories of Lifestyle Studies COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Market Segmentation Develop a deeper understanding of a segment or define segments Use Likert scale to answer various AIO statements Gain understanding of core customers lifestyles better and develop packaging and communication strategies that position products to their various lifestyle attributes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Lifestyle System VALS™ suggests that consumer buy products and services and seek experiences that fulfill their characteristic preference and give shape, substance, and satisfaction to their lives An individual’s primary motivation determines what in particular about the self or the world governs his or her activities Primary motivations include ideals, achievement and self-expression COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values And Lifestyle System Consumers who are primarily motivated by ideals are guided by knowledge and principles Consumers primarily motivated by achievement look for products or services to demonstrate their success to their peers Consumers primarily motivated by selfexpression desire social or physical activity, variety, and risk COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. VALSTM Lifestyle Segments COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. VALSTM Types Innovators: successful, sophisticated, takecharge consumers with many resources and high self-esteem. Image is important Thinkers: satisfied, mature, comfortable, practical people who look for durability, value, and functionality in products Achievers: motivated by the desire for achievement, career-oriented, and prefer prestige brands that signal success. Social lives revolve around family, place of worship, and work COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. VALSTM Types Experiencers: young, enthusiastic, impulsive, and like risk taking, variety, and excitement. Like new and off-beat products and activities Like Thinkers: conservative, conventional, and motivated by ideals, with beliefs based on codes of church, community, family, and nation. Buy proven brands from home country and are generally loyal consumers Strivers: concerned about approval and opinions of others and seek self-definition, security, and image of success. Emulate those they want to be like, but lack resources COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. VALSTM Types Like Experiencers: express themselves and experience the world by working on it. Practical people who are self-sufficient, live within a traditional context, and prefer value to luxury Survivors: live narrowly focused lives with few resources and represent a modest market for most products. They are cautious consumers and seek safety and security COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Global Lifestyles Increased globalization requires that marketing strategy be increasingly planned on a global basis VALSTM and other approaches are being used to identify lifestyle segments across country borders and segment international markets COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. CHAPTER 8 Consumer Motivation COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption Gives insights into why people buy certain products COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption Gives insights into why people buy certain products Stems from consumer needs: industries have been built around basic human needs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Physiological Needs Fundamental human needs, including food, water, and sleep COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Safety and Health Needs Threats to our safety and health motivate purchases for personal security and protection COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Safety and Health Needs Protecting our personal information and computers represents new types of safety needs Businesses provide a variety of products and services to appeal to safety and health conscious consumers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Safety and Health Needs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Love and Companionship Humans are social creatures who need to experience and express love and companionship COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Love and Companionship Services and products help individuals find and attract others Products are often used as symbols of love and caring COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Love and Companionship COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Financial Resources and Security A need that includes others important to the individual COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Social Image Needs Conspicuous consumption: purchases motivated to some extent by the desire to show other people how successful they are Companies reinforce the notion that products enable users to communicate their social image COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Image Needs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Pleasure Products, services, and consumption activities provide fun and excitement COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. © SETH WENIG/Reuters/Landow Consumers’ Need for Pleasure COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers’ Need to Possess COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors Plays a role in impulse buying: where consumers unexpectedly experience a sudden and powerful urge to buy something immediately COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need to Give Give something back to others or reward ourselves Self-gifts let us motivate, reward, and console ourselves COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Information One reason we read or watch TV Fuels Internet usage Plays an important role in persuasion—if an ad appears when consumers need information, they are more likely to pay attention than when they don’t need the information COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Variety Marketers may introduce different versions of original brand Variety may become focus of product positioning COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities Satisfying a need often comes at the expense of another need—these trade-offs cause motivational conflict COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Motivational Conflict Approach-approach: deciding between two or more desirable options Avoidance-avoidance: deciding between two or more undesirable options Approach-avoidance: behavior has both positive and negative consequences COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities Resolving motivational conflicts requires prioritizing needs Maslow’s hierarchy Some needs take precedence over other needs—physiological needs take top priority Differences in the importance attached to various needs affects how consumers evaluate products COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities Because of consumers’ different motivational priorities, companies use benefit segmentation: dividing consumers into different market segments based on benefits they seek from purchase and consumption COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Maslow’s Hierarchy of Needs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Intensity Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Intensity Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance Involvement: degree to which an object or behavior is personally relevant Motivational intensity and involvement determine amount of effort consumers exert in satisfying needs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Challenge of Understanding Consumer Motivation COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Challenge of Understanding Consumer Motivation Reasons underlying consumer motivation are not always “obvious” Research is necessary to discover real motivations behind behaviors People don’t always want to disclose real reasons for their actions People don’t always know why they do what they do—unconscious motivation Motivations change over time COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Unconscious Motivation COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Motivating with Money COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Motivating with Money Price cuts, specials, rebates, and coupons motivate purchase Resulting sales may increase, but profits may not Attracts consumers less likely to repeat Price reductions may increase price sensitivity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating with Money COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Provide Other Incentives COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Provide Other Incentives Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating with Other Incentives COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Provide Other Incentives Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase There are limitations and shortcomings for this strategy in addition to the products offered as a premium being valued less (value-discounting hypothesis) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Implement a Loyalty Program Motivate repeat buying by providing rewards to customers based on how much business they do with the company Tracks consumer purchases and provides estimates of Customer Lifetime Value COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Participation in Loyalty Programs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Enhance Perceived Risk COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Enhance Perceived Risk Perceived risk: consumers’ apprehensions about the consequences of their behavior (buying and consuming the product) Greater perceived risk increases search Educating consumers about risks may motivate them to make more informed choices that reduce exposure to risk COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Informing Consumers of Their Risks COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Arouse Consumers’ Curiosity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Arouse Consumers’ Curiosity For new products, educating potential customers is crucial Curiosity often leads to an enhanced need for information May advertise a benefit that is not normally associated with the product COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Arousing Curiosity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. CHAPTER 10 Consumer Beliefs, Feelings, Attitudes, and Intentions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Attitudes Global evaluative judgments COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Intentions Subjective judgments by people about how they will behave in the future COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Beliefs Subjective judgments about the relationship between two or more things COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Feelings An affective state (e.g., current mood state) or reaction (e.g., emotions experienced during product consumption) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Relationships between Consumer Beliefs, Feelings, Attitudes, and Intentions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Beliefs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Beliefs A Sampling of Consumer Beliefs If a deal seems to good to be true, it probably is. You can’t believe what most advertising says these days. Auto repair shops take advantage of women. People need less money to live on once they retire. It’s not safe to use credit cards on the Internet. Appliances today are not as durable as they were 20 years ago. Extended warranties are worth the money. You get what you pay for: lower price means lower quality. Changing the oil in your car every three thousand miles is a waste of money. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Beliefs Expectations Brand Distinctiveness Inferential Beliefs Consumer Confusion COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Expectations Expectations are beliefs about the future Consumers’ willingness to spend is influenced by beliefs about their financial future COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Brand Distinctiveness Why should consumer want to buy your brand instead of the competitor’s? The desirability of products having something unique to offer to their consumers is also known as the Unique Selling Proposition COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Communicating the Product’s Unique Selling Proposition COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Inferential Beliefs Consumers use information about one thing to form beliefs about something else Beliefs are often inferred when product information is incomplete Also undertaken when consumers interpret certain product attributes as signals of product quality—e.g., price-quality inferential beliefs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Visual Advertising Elements and Inferential Beliefs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Confusion Sometimes consumers do not know what to believe due to many different reasons May arise due to conflicting information and knowledge Mistaking one company’s product for the product of another company Due to changes in a product’s position and image COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Confusion Consumers respond to confusion by: Undertaking further information search Basing their decision on things that are perfectly clear—e.g., price Deferring product purchase indefinitely COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Feelings Upbeat Negative Warm COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Feelings Upbeat Active Adventurous Alive Attractive Confident Creative Elated Energetic Good Happy Pleased Negative Angry Annoyed Bad Bored Critical Defiant Disgusted Fed-up Insulted Irritated Regretful Warm Affectionate Calm Concerned Contemplative Emotional Hopeful Kind Peaceful Pensive Touched Warm-hearted COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings Feelings as part of the advertising experience Feelings as part of the shopping experience Feelings as part of the consumption experience COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings Feelings as part of the advertising experience Feelings activated by the advertisement have the potential to influence attitudes formed about the featured product The program in which advertising appears can induce feelings and affect post-message attitudes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Advertising that Evokes Positive Feelings COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings Feelings as part of the shopping experience The retail environment elicits different feelings in consumers ultimately affecting their attitudes and behaviors in the store The shopping environment can evoke pleasure, arousal, or dominance in consumers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Feelings Feelings as part of the consumption experience Some consumption experiences are liked primarily for the feelings they induce Feelings during consumption will influence post-consumption evaluations Consumers are more satisfied when product consumption leads to positive feelings while avoiding negative ones COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Emphasizing the Product’s Mood Altering Properties COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Emphasizing How Negative Feelings May Be Avoided COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Measuring Feelings How often, if at all, do you experience the following feelings as a result of eating chocolate? Happy never _:_:_:_:_:_:_:_:_ very often Excited never _:_:_:_:_:_:_:_:_ very often Delighted never _:_:_:_:_:_:_:_:_ very often Joyous never _:_:_:_:_:_:_:_:_ very often Satisfied never _:_:_:_:_:_:_:_:_ very often Proud never _:_:_:_:_:_:_:_:_ very often Annoyed never _:_:_:_:_:_:_:_:_ very often Depressed never _:_:_:_:_:_:_:_:_ very often Guilty never _:_:_:_:_:_:_:_:_ very often Regretful never _:_:_:_:_:_:_:_:_ very often COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Attitudes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Attitudes Properties of Attitudes Valence: Whether the attitude is positive, negative or neutral Extremity: The intensity of liking or disliking Resistance: Degree to which the attitude is immune to change Confidence: Belief that attitude is correct Accessibility: How easily the attitude can be retrieved from memory COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Attitudes Attitude towards the object (Ao) represents the evaluation of the attitude object Attitude towards the advertisement (Aad) represents the global evaluation of an advertisement COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Attitudes Attitude towards the behavior (Ab) represents the evaluation of performing a particular behavior involving the attitude object Preferences represent attitudes toward one object in relation to another COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Attitude toward the behavior: Buying a Dell personal computer would be: Very good 1 2 3 4 5 Very bad Very rewarding 1 2 3 4 5 Very punishing Very wise 1 2 3 4 5 Very foolish Attitude toward the object: How much do you like/dislike Dell computers? Like very much 1 2 3 4 5 Dislike very much Preference: Compared to Apple personal computers, how much do you like Dell personal computers? Like IBM much 1 2 3 4 5 Like Apple much more than Apple more than IBM COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Using Multiattribute Models to Understand Consumer Attitudes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Multiattribute Attitude Model n Ao = Σ bi ei i =1 Ao = attitude toward the object bi = strength of the belief that object has attribute i ei = evaluation of attribute i n = number of salient or important attributes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Multiattribute Attitude Model The Fishbein Model Model proposes that attitude toward an object is based on the summed set of beliefs about the object’s attributes weighted by the evaluation of these attributes Attributes can be any product or brand association COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Multiattribute Attitude Model Running shoe example Whether the shoe is shock absorbent for use on hard surfaces Whether it is priced less than $50 Durability of the shoe How comfortable the shoe is to wear Whether the shoe is available in the desired color Amount of arch support COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Multiattribute Attitude Model Developing the ei and bi measures COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Multiattribute Attitude Model Developing the ei and bi measures ei Buying running shoes priced less than $50 is very good _:_:_:_:_:_:_ very bad +3 +2 +1 0 -1 -2 -3 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Multiattribute Attitude Model Developing the ei and bi measures ei Buying running shoes priced less than $50 is very good _:_:_:_:_:_:_ very bad +3 +2 +1 0 -1 -2 -3 bi How likely is it that brand A running shoes are priced less than $50? very likely _ : _ : _ : _ : _ : _ : _ very unlikely +3 +2 +1 0 -1 -2 -3 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Fishbein Model: Sample Results Attribute Beliefs Brand Brand Brand Evaluation A B C Shock absorbent +2 +2 +1 -1 Price less than $50 -1 -3 -1 +3 Durability +3 +3 +1 -1 Comfort +3 +2 +3 +1 Desired color +1 +1 +3 +3 Arch support +2 +3 +1 -2 +29 +20 -6 Total Σ bi ei score COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Attitudes Companies want consumers to perceive their products as: Possessing desirable attributes (when ei positive, bi should be positive) Not possessing undesirable attributes (when ei is negative, bi should be negative) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Communicating the Presence of Desirable Attributes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Communicating the Absence of Undesirable Attributes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Ideal-Point Multiattribute Attitude Model n AP = Σ Wi Ii - Xi i =1 AP = attitude toward product Wi = importance of attribute i Ii = ideal performance on attribute i Xi = belief about product’s actual performance on attribute i n = number of salient attributes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Ideal-Point Multiattribute Attitude Model Consumers indicate where they believe a product is located on scales representing the various levels of salient attributes Also report where ideal product would fall on these scales The closer the ideal and actual ratings, the more favorable the attitude COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Ideal-Point Multiattribute Attitude Model Soft drink example Sweetness of taste Degree of carbonation Number of calories Amount of real fruit juices Price COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Ideal-Point Multiattribute Attitude Model Developing a scale to represent various levels of each attribute very sweet taste _:_:_:_:_:_:_ 1 2 3 4 5 very bitter taste 6 7 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Ideal-Point Multiattribute Attitude Model Developing a scale to represent various levels of each attribute very sweet taste _:_:_:_:_:_:_ 1 2 3 4 5 very bitter taste 6 7 Provide ratings of attribute importance not at all important _:_:_:_:_:_:_ 0 1 2 3 4 5 extremely important 6 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Ideal-Point Model: Sample Results Attribute Taste: sweet(1) - bitter (7) Beliefs Import- Ideal Brand Brand ance Point A B 6 2 2 3 Carbonation: high(1) - low (7) 3 3 2 6 Calories: high (1) - low (7) 4 5 4 5 Fruit juices: high (1) - low (7) 4 1 2 2 Price: high (1) - low (7) 5 5 4 3 16 29 Total Σ Wi Ii-Xi score COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Using Multiattribute Attitude Models Diagnostic power: examine why consumers like or dislike products Simultaneous importanceperformance grid with marketing implications for each cell COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Stimulus Importance-Performance Grid Attribute Our Competitor’s Importance Performance Performance POOR Simultaneous Result Poor Neglected Opportunity Good Competitive Disadvantage Poor Competitive Advantage Good Head-to-head competition Poor Null Opportunity Good False Alarm Poor False Advantage Good False Competition HIGH GOOD POOR LOW GOOD COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Using Multiattribute Attitude Models Can provide information for segmentation (based on importance of product attributes) Useful in new product development Guidance in identifying attitude change strategies COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Attitude Change Implications from Multiattribute Attitude Models Three primary ways for changing consumer attitudes: Change beliefs Change attribute importance Change ideal points COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Consumer Attitudes: Changing Beliefs Firms hope that changing beliefs about products will result in more favorable product attitudes and influence what consumers buy If beliefs are false, they need to be brought into harmony with reality If beliefs are accurate, it may be necessary to change the product Comparative advertising can hurt beliefs about a competitive brand COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Consumer Attitudes: Changing Attribute Importance Changing an attribute’s importance is more difficult than changing a belief How is a brand perceived relative to ideal performance? Increasing attribute importance is desirable when the competitor’s brand is farther from the ideal point than your product Firms may add a new attribute COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Consumer Attitudes: Changing Ideal Points Altering consumers’ preferences for what the ideal product should look like COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. This Ad Attempts to Change Consumers’ Ideal Point COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Estimating the Attitudinal Impact of Alternative Changes How expensive are the product modifications required to change attitude? Are they possible to accomplish? How resistant to change are consumers? What is the potential attitudinal payoff each change might deliver? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Intentions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Intentions Useful for firms when predicting how people will act as consumers How much existing product should be produced to meet demand? How much demand will there be for a new product? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Intentions Useful for firms when predicting how people will act as consumers How much existing product should be produced to meet demand? How much demand will there be for a new product? Firms interested in many types of consumer intentions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Spending intentions Purchase intentions Repurchase intentions Shopping intentions Search intentions Consumption intentions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Spending intentions reflect how much money consumers think they will spend Will you spend at least $1,000 on Christmas gifts this year? No chance 1 2 3 4 5 6 7 I definitely will COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Purchase intentions represent what consumers think they will buy Will you buy a Mercedes-Benz automobile during the next 12 months? No chance 1 2 3 4 5 6 7 I definitely will COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Repurchase intentions indicate whether consumers anticipate buying the same product or brand again The next time you purchase coffee, will you buy the same brand? No chance 1 2 3 4 5 6 7 I definitely will COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Shopping intentions capture where consumers plan on making their product purchases Will you shop at Wal*Mart during the next 30 days? No chance 1 2 3 4 5 6 7 I definitely will COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Search intentions indicate consumers’ intentions to engage in external search The next time you need to be hospitalized, will you speak to your doctor before choosing a hospital? No chance 1 2 3 4 5 6 7 I definitely will COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Intentions Consumption intentions represent consumers’ intentions to engage in a particular consumption activity Will you watch the next Super Bowl? No chance 1 2 3 4 5 6 7 I definitely will COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Firms Can Predict Behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Firms Can Predict Behavior Rely on past behavior to predict future behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Firms Can Predict Behavior Rely on past behavior to predict future behavior Problems: Situations change (changes in market can cause unpredictable changes in demand) Sales trends are sometimes erratic Past behaviors not available for new products or first-time behaviors COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Firms Can Predict Behavior Rely on consumers’ reported intentions People often do what they intend COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Intentions can change Intend to do something and don’t Intend not to do something and do Can’t control whether consumers act upon their intentions Can influence predictive accuracy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Intentions’ predictive accuracy strongly depends on how they are measured The more closely intention measures correspond to the to-bepredicted behavior, the greater the predictive accuracy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Measuring intentions may be less predictive of future behavior than measuring what they expect to do COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Measuring intentions may be less predictive of future behavior than measuring what they expect to do Behavioral expectations: represent perceived likelihood of performing a behavior (Although smokers may intend to quit smoking, they may report more moderate expectations due to past failures) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Accuracy of forecasts also depends on when intentions are measured How far into the future is being predicted? Accuracy depends on the to-bepredicted behavior (behaviors repeated with regularity are easier to predict) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Volitional control: the degree to which a behavior can be performed at will COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constraints on Predictive Power of Intentions Volitional control: the degree to which a behavior can be performed at will Existence of uncontrollable factors interfere with the ability to do as intended Perceived behavioral control: the person’s belief about how easy it is to perform the behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Intentions: Other Uses Indicator of the possible effects of certain marketing activities Intentions may provide an informative indication of a company’s likely success in retaining customers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Reference Groups Influence Individuals Socialization: permits an individual to know what behavior is likely to result in stability both for the individual and the group Company manual may explain the dress code in the workplace Informal groups may tell them what styles are most comfortable and easiest to maintain COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Reference Groups Influence Individuals COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media Society of Future COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media Society of Future COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Culture Affects Consumer Behavior: Pre-purchase and Purchase Activities Consumption and Divestment Activities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Adapting Strategies to Changing Cultures Advertising and marketing efforts have difficulty changing behaviors or norms learned early in life COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Adapting Strategies to Changing Cultures Culture is adaptive, and marketing strategies based on values of society must also be adaptive Marketers must address consumer socialization: the acquisition of consumption-related cognitions, attitudes, and behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Norms Socialization: the process by which people develop their values, motivations, and habitual activity The Values Transfusion Model shows how the values of a society are reflected in families, religious institutions, and schools, all of which expose and transmit values to individuals COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society Blueprint of human activity, determining coordinates of social action and productive activity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. CHAPTER 11 Culture, Ethnicity, and Social Class COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Positioning Based on Social Class Brands such as Coach and Godiva are positioned to middle class consumers with simple, sleek ads Wanting it all is a hallmark of the middle class and buying the best on at least a few occasions sets them apart and bolsters their selfimage COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Discontinuous Innovation Involves the introduction of an entirely new product that significantly alters consumers’ behavior patterns and lifestyles Examples include automobiles, televisions, videocassette recorders, and computers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Innovations While innovations are usually considered in terms of new products, they might also be usage based—finding new uses for old products COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why Some Innovations Succeed and Others Don’t Successful products are those that become culturally anchored—so inextricably a part of a consumer’s life and sociocultural surroundings that the person-product interface is an important part of the individual’s self-concept Imagine being without personal computers or microwave ovens COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Compatibility The degree to which a new product is consistent with an individual’s existing practices, values, needs, and past experiences of the potential adopters COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Diffusion Process Diffusion: the process by which an innovation (new idea) is communicated through certain channels over time among the members of a social system COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Rogers Model of Innovation Decision Process Implementation: occurs when the consumer puts an innovation to use The process has been a mental exercise until this point where it requires a behavioral change The strength of the marketing plan may be the critical determinant in a sale resulting COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers Likely to Buy New Products Late majority: tends to be cautious when evaluating innovations, taking more time than average to adopt them, and often at the pressure of peers Laggards: the last groups that tend to be anchored in the past, are suspicious of the new, and exhibit the lowest level of innovativeness among adopters COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. CHAPTER 11 Culture, Ethnicity, and Social Class COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Culture? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society Blueprint of human activity, determining coordinates of social action and productive activity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society Blueprint of human activity, determining coordinates of social action and productive activity A set of socially acquired behavior patterns transmitted symbolically through language and other means to the members of a particular society COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Influences Ethnicity Race Religion Regional or national identity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Influences Ethnicity Race Religion Regional or national identity CULTURE COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Influences Ethnicity Race Religion Regional or national identity CULTURE Abstract/behavioral Values Norms Rituals Symbols Physical/material Artifacts Technology Infrastructure COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Culture? Abstract elements: values, attitudes, ideas, personality types, and summary constructs such as religion or politics Symbol may evolve to represent a culture Symbols (with three components of language, aesthetic styles, and story themes) often act as shorthand for a culture, defining its characteristics and values similar to a brand COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Is Culture? Material components (cultural artifacts): include such things as books, tools, buildings, and specific products Products provide symbols of meaning Products may be used in ritual behavior such as food eaten on certain holidays Material components may become icons such as McDonald’s arches COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Characteristics Influenced by Culture COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Characteristics Influenced by Culture Sense of self and space Communication and language Dress and appearance Food and feeding habits Time and time consciousness Relationships Values and norms Beliefs and attitudes Mental processes and learning Work habits and practices COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Characteristics Influenced by Culture Sense of self and space Communication and language Dress and appearance Food and feeding habits Time and time consciousness Relationships Values and norms Beliefs and attitudes Mental processes and learning Work habits and practices Used to define and differentiate cultures COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Norms Norms: rules of behavior held by a majority or at least a consensus of a group about how individuals should behave Cultural (social) values: values shared broadly across groups of people Personal values: terminal (goals) or instrumental (behaviors) beliefs of individuals COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Norms Values and norms represent the beliefs of various groups within a society Macroculture: values and symbols that apply to an entire society or most of its citizens Microculture: values and symbols of a restrictive group or segment of consumers, defined according to variables such as age, religion, ethnicity, or social class COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Norms Socialization: the process by which people develop their values, motivations, and habitual activity The Values Transfusion Model shows how the values of a society are reflected in families, religious institutions, and schools, all of which expose and transmit values to individuals COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Values and Norms People adopt values that influence how they live, how they define right and wrong, how they shop, and what is important to them The values adopted by individuals today shape the values of society in the future COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Values Transfusion Model Values of Society COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Values Transfusion Model Values of Society Family Religious Institutions Educational Institutions Early Lifetime Experiences COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media Society of Future COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Adapting Strategies to Changing Cultures Culture is adaptive, and marketing strategies based on values of society must also be adaptive Marketers must address consumer socialization: the acquisition of consumption-related cognitions, attitudes, and behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Adapting Strategies to Changing Cultures Advertising and marketing efforts have difficulty changing behaviors or norms learned early in life COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Culture Affects Consumer Behavior: Pre-purchase and Purchase Activities Consumption and Divestment Activities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Influence of Culture on Prepurchase and Purchase Activities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Influence of Culture on Prepurchase and Purchase Activities Culture affects what consumers think they need and what they perceive as frivolous Culture affects how consumers are likely to search for information Culture affects the importance placed on certain attributes of alternatives Culture affects the amount of price negotiation during the purchase process COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Influence of Culture on Consumption and Divestment Activities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Influence of Culture on Consumption and Divestment Activities Culture affects how consumers use or consume products Consumers’ expectations about form and function vary between cultures Culture influences how individuals dispose of products—reselling products after use, giving them to others for use, or recycling them and their packaging when possible COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Core Values Affect Marketing COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Core Values Affect Marketing Core values define how products are used in a society Core values define acceptable market relationships Core values define ethical behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Values COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Values Society’s values change continuously even though core values are relatively permanent Changes in values may alter the response to advertising, service offerings, and retailing formats COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Values Life-cycle explanation: values change according to life-cycle (as individuals grow older, their values change) Theory of behavioral assimilation: Younger people grow into the values of their parents as they get older Generational change: gradual replacement of existing values by those of young people who form the leading generation in value terms COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Values Will people become more like their parents as they get older, or will they carry with them the values of their generation? Depends on elements in the Cultural Transfusive Triad and early lifetime experiences COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Values Transfusion Model Cultural Transfusive Triad Family Religious Institutions Educational Institutions Early Lifetime Experiences COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Family Influences Less time for in-home or parentchild influence Increasing divorce rates Isolated nuclear family (geographic separation of generations) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Religious Influences Traditional churches and religions have seen a decline in loyalty Increase in non-Christian religions A shift from traditional religion to spirituality Women are more religious Religion and spirituality are big business and influence big business COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Changing Educational Influences Dramatic increase in formal education Teaching has evolved from memorization to questioning Digital learning has increased in popularity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Influence of Age-Related Microcultures on Values Cohorts: a group of individuals linked as a group in some way— usually by age Cohort analysis: investigates the actual changes in patterns of behavior or attitudes in a cohort, those attributed to the process of aging and those associated with the events of a particular period COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts The Depression Cohort The World War II Cohort The Postwar Cohort Leading Edge Boomers Cohort Trailing Edge Boomers Cohort The Generation X Cohort N Generation Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts The Depression Cohort The World War II Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts The Depression Cohort The World War II Cohort The G.I. Generation Depression Generation Born 1912-1921 Born 1922-1927 Living through the Depression has deeply affected this group—they save a lot and spend little. This group was unified by a common goal and enemy. This was the first group to be influenced by contemporary media. It exhibits self-denial characteristics that have outlived the war, especially among veterans and their families. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts The Postwar Cohort Leading Edge Boomers Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts The Postwar Cohort Leading Edge Boomers Cohort The Silent Generation Woodstock Generation Born 1928-1945 Born 1946-1954 Generation of war babies benefited from years of economic growth and social tranquility. The Kennedy and King assassinations meant an end to status quo and unified this vast cohort. The youngest were the first to listen to folk rock music. Early boomers pushed for lifestyles at least as good as their parents. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts Trailing Edge Boomers Cohort Generation X Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts Trailing Edge Boomers Cohort Generation X Cohort Zoomers Baby-busters Born 1955-1965 Born 1966-1976 After Watergate, the idealistic youth disappeared, giving rise to the self-help movement. A generation of kids raised in daycare and with divorce is born. Searching for an anchor, many resort to “retro” behaviors. In an age of downward mobility, debt became a way to maintain lifestyle. “What’s in it for me” cynicism is prevalent. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts N Generation Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Age Cohorts N Generation Cohort Millenials Born 1977-1984 The advent of the Internet is defining for N-Gens with a different core value structure than Gen X. More idealistic and team oriented. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. National Culture Individualism versus collectivism COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Individualism Collectivism Defined by internal attributes and personal traits Defined by important others, family, friends Role of Others Self-evaluation Self-definition Values Emphasis on individuality and separateness Emphasis on relationships and connectedness Motivational drives Differentiation, need to be unique Focus on similarity, need to blend in Behavior Reflective of personal preferences, needs Influenced by personal preferences, needs Self-construal COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. National Culture Individualism versus collectivism Uncertainty avoidance: how societies react to uncertainties inherent in life Power distance: the degree to which a society accepts inequality in power at different levels in organizations and institutions Masculinity-femininity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. National Culture Geographic culture: cultures may exist for an entire country, but areas within a nation sometimes develop their own culture Climate, religious affiliations, nationality influences, and other variables are interrelated to produce a core of cultural values in a geographic area COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. North American Core Values Foundation of American values American values and advertising What are the core values that provide appeals for advertising? Marketers are most successful when they appeal to core values based on hard work, achievement and success, optimism, and equal opportunity for a better standard of living COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. North American Core Values Foundation of American values American values and advertising Understanding values helps advertisers avoid violating norms or standards of society COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Core Values Provide Appeals to Marketers COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Marketers Adapt to Core American Values Material Well-Being Twofold Moralizing Importance of Work over Play Time Is Money Effort, Optimism, and Entrepreneurship Mastery over Nature Egalitarianism Humanitarianism COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Ethnic Microcultures and Their Influences on Consumer Behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Ethnic Microcultures and Their Influences on Consumer Behavior An Subjectivist perspective reflects ascriptions people make about themselves An Objectivist definition is derived from sociocultural categories COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Ethnic Microcultures and Their Influences on Consumer Behavior Ethnicity is an important element in determining culture and predicting consumer preferences and behavior A subjectivist perspective reflects ascriptions people make about themselves, while an objectivist definition is derived from sociocultural categories COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. America’s Ethnic Microcultures Immigrants bring with them new religions, cultures, and languages Acculturation: measures the degree to which a consumer has learned the ways of a different culture compared to how they were raised Just as individuals adapt to cultural changes, so do companies COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. America’s Ethnic Microcultures Euro-Descent Americans COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. America’s Ethnic Microcultures Euro-Descent Americans Most Euro-Descents come from England, Germany, and Ireland European immigration declined for many years, but increased in recent years due to immigration after the fall of Communism Group tends to have a fairly high savings rate although they like to spend on material items COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. America’s Ethnic Microcultures Native American Culture Native Americans include American Indians, Alaskan Eskimos, Native Hawaiians and Canadian aboriginals Some Native Americans dislike sharing their culture and spiritual practices with outsiders while others welcome people of any race into their culture Increased consumer demand for Native American products COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. America’s Ethnic Microcultures Multiethnic Microcultures Includes people from multiple ethnic backgrounds How will each of these influences affect behavior and values? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. America’s Ethnic Microcultures Multiethnic Microcultures Includes people from multiple ethnic backgrounds How will each of these influences affect behavior and values? Transcultural marketing research: gathers data from specific ethnic groups and compares these data to those collected from other markets, usually the mass market COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. U.S. Population by Race and Ethnic Group COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. U.S. Households and Average Incomes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Black or African-American Culture COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Black or African-American Culture Refers more to a common heritage rather than to a skin color Controversy over proper terminology still exists and most marketers opt for term Black/African American Has a population base of 32 million with growing buying power COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Black or African-American Culture Structural Influences Black families have lower than average incomes, although incomes have risen in recent years 25% of black households had incomes of $50,000 or more by 2003 24.4% still live under poverty line Higher education has become a priority for many young AfricanAmerican people COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Black or African-American Culture Structural Influences A high proportion of families are headed by women Black women influence many purchases that might otherwise be purchased by men Advertising often appeals to the strength black women portray in life The effects of discrimination mean that some black consumers are skeptical or sensitive of white businesses COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Black or African-American Culture Consumption Patterns African American consumers view magazines such as Ebony and Essence as credible sources Firms target products to black consumers (hip-hop clothing lines) and for the special needs of black consumers (special make-up products) Advertisers have also increased the number of black models and spokespersons used in campaigns COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Asian-American Culture COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Asian-American Culture Includes: Chinese, Japanese, Koreans, Vietnamese, Cambodians, Laotians, Filipinos, Asian Indians, Pakistanis, Hawaiians, Samoans, Fiji Islanders, and others This market is expected to continue to grow in the future, and may reach 20 million consumers in the early part of the century COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Asian-American Culture Structural Influences Asian-Americans have higher than average incomes and 53% of households have two income earners Highest rate of education among any U.S. population category Emphasis on strong family ties, hard work, and education COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Asian-American Culture Consumption Patterns Marketers find that it is effective to reach Asian-Americans through mass media, including cultural and foreign language publications Some consumers are accustomed to bargaining over prices COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Advertisements Appealing to the Asian-American Market COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Latino (Hispanic) Culture COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Latino (Hispanic) Culture Rapid growth, size, and language have fueled interest in this microculture Latinos recently surpassed AfricanAmericans as the largest minority group in the United States Great diversity among members of this group make it a heterogeneous segment of wants and behaviors COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Latino (Hispanic) Culture Who is Latino? Language and cultural identity, rather than national origin, are key elements in Latino culture Latino describes Americans whose origins are in the Spanish-speaking countries of the Western world Latino consumers are often segmented into four groups: Mexicans, Puerto Ricans, Cubans, and others COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Latino (Hispanic) Culture Structural Influences Fastest growing market in the U.S. Buying power around $340 billion, with Cuban-Americans having the highest income in this group Education level is increasing This segment values family (has higher birth rates and larger families) Average age is younger than nonLatino white population COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Advertisements Appealing to the Latin-American Market COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Advertisements Appealing to the Latin-American Market COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Latino (Hispanic) Culture Consumption Patterns Latin culture is affecting tastes and preferences of the majority culture They watch almost as much television as average American, but much time is spent watching Spanish-language programming Tend to shy away from using coupons which they believe are for “people who can’t afford to pay full price” COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Latino (Hispanic) Culture Avoiding Marketing Blunders Translation problems Culture misunderstandings Latino idiosyncrasies COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. French-Canadian Culture COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. French-Canadian Culture One of the largest and most distinct cultures in North America Quebec accounts for more than 23 percent of the Canadian population Firms marketing in Canada often use two campaigns: one for English- and one for FrenchCanadians Other times the same ad is used for both segments COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Social class: relatively permanent and homogeneous divisions in a society into which individuals or families sharing similar values, lifestyles, interests, wealth, status, education, economic positions, and behavior can be categorized COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Concrete variables that define social classes include occupation, education, friendships, ways of speaking, and possessions Perceived variables that define social class include power, and prestige Social class, in part, determines the mix of goods consumers will buy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Status groups: reflect community’s expectations for style of life among each class as well as the positive or negative social estimation of honor given to each class COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Whereas classes are stratified based on relations to production and acquisition of goods, status groups are stratified based on lifestyles and principles of consumption of goods COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures What determines social class? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures What determines social class? Economic Variables Interaction Variables Political Variables COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Political Variables COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Personal Prestige Association Socialization Political Variables COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Personal Prestige Association Socialization Political Variables Power Class consciousness Mobility COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Consumer analysts often focus on six variables which determine social class COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Consumer analysts often focus on six variables which determine social class Occupation Personal performance Interactions Possessions Value orientations Class consciousness COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Occupation: best single indicator of social class Personal performance: a person’s success relative to that of others (often in the same occupation) Interactions: the people with whom one associates and socializes Possessions: symbols of class membership COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Value orientations: values are indicators of our social class In some countries, values are more important than possessions and social class is determined more by achievements than by possessions Class consciousness: the degree to which people in a social class are aware of themselves as a distinctive group COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Social stratification: perceived hierarchies in which consumers rate others as higher or lower in social status Achieved status: earn a higher status due to work or study Ascribed status: lucky to be born wealthy or beautiful Status inconsistency: when a person rates high on one variable and low in another (some athletes or musicians) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class Microcultures Social mobility: process of passing from one social class to another Parody display: the mockery of status symbols and behavior (upper class individuals using the word “ain’t” to proclaim distaste) Some consumers rebel against their social class by becoming part of a counterculture (perhaps by body piercing or tattooing) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Class and Consumer Behavior Products can be positioned as brands appealing to upper social classes (Heineken and Amstel Light) or have every person appeal (Budweiser) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Market Segmentation COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Market Segmentation Identification of social class usage of the product Comparison of social class variables for segmentation with other variables Description of social class characteristics identified in target markets Development of marketing program to maximize effectiveness of marketing mix based on consistency with social-class attributes COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Positioning Based on Social Class Understanding social class helps marketers create perceptions about products or organizations in consumers’ minds Appeal to those who are in a social class and those who aspire to be there COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Positioning Based on Social Class Brands such as Coach and Godiva are positioned to middle class consumers with simple, sleek ads Wanting it all is a hallmark of the middle class and buying the best on at least a few occasions sets them apart and bolsters their selfimage COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
Related documents