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Consumer Behavior
Roger D. Blackwell
Paul W. Miniard
James F. Engel
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CHAPTER 7
Demographics,
Psychographics, and
Personality
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Analyzing and Predicting
Consumer Behavior
Demographics
Personality
Personal Values
Lifestyles
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Analyzing and Predicting
Consumer Behavior
Demographics is the size,
structure, and distribution of a
population
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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
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Demographic Analysis to
Predict Consumer Behavior
Consumer analysts use demographic trends to predict changes
in demand for and consumption of
specific products and services
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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
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Demographic Analysis and
Social Policy
Demographics used in analyzing
policy questions related to the
aggregate performance of
marketing in society
(macromarketing)
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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
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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
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Demographic Analysis to
Predict Consumer Behavior
Demographics
Changing Structure of Markets
Geographic Factors
Economic Resources
Global Markets
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Changing Structure of
Consumer Markets
Market analysis requires
information about
people with needs
ability to buy
willingness to buy
authority to buy
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Changing Structure of
Consumer Markets
How many people will there be?
birthrate
natural increase
fertility rate
total fertility rate
population momentum
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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)
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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
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Changing Structure of
Consumer Markets
Population momentum: future
growth of any population will be
influenced by its present age
distribution
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Changing Structure of
Consumer Markets
Factors affecting birthrates:
Age distribution of population
Family structure
Social attitudes toward family/children
Technology
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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
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trademarks used herein under license.
U.S. Population Projections
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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
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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
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Children As Consumers
Projected increase in number of
young children between 2000 and
2010
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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
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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
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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
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Appealing to Generation Y
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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
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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
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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
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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
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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
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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
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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
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Demographic Analysis to
Predict Consumer Behavior
Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets
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trademarks used herein under license.
Demographic Analysis to
Predict Consumer Behavior
Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets
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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
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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
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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
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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
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Demographic Analysis to
Predict Consumer Behavior
Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets
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trademarks used herein under license.
Economic Resources
The ability to buy, typically measured
by income and wealth
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Economic Resources
Income: money from wages and
salaries as well as interest and
welfare payments
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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
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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
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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
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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
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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
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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
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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
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Demographic Analysis to
Predict Consumer Behavior
Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets
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trademarks used herein under license.
Global Market Analysis
The most attractive markets are
countries that are growing both in
population and in economic
resources
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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?
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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?
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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
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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
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trademarks used herein under license.
Consumer Behavior in
the Pacific Rim
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Consumer Behavior in
the Pacific Rim
South Asia
India
China
Australia
Japan
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trademarks used herein under license.
Consumer Behavior in
Latin America
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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
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Consumer Behavior in
Eastern Europe
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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
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trademarks used herein under license.
Consumer Behavior in The EU
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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
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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
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Analyzing and Predicting
Consumer Behavior
Demographics
Personality
Personal Values
Lifestyles
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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
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Personality
Personality:
How does personality influence
consumer behavior?
Psychoanalytic Theory
Sociopsychological Theory
Trait-Factor Theory
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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
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Personality
Psychoanalytic theory
Personality is a result of more than
just subconscious drives
Some advertising is influenced by
psychoanalytic approach
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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
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Personality
Sociopsychological Theory
Person may buy a product that
symbolizes an unattainable or
unacceptable goal—the acquisition
fulfills some subconscious “forbidden
desire”
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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
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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
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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
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trademarks used herein under license.
Predicting Buyer Behavior
Research typically attempts to find
relationships between personality
variables and consumer behaviors
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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
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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
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trademarks used herein under license.
Analyzing and Predicting
Consumer Behavior
Demographics
Personality
Personal Values
Lifestyles
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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
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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
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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
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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
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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
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trademarks used herein under license.
Rokeach Value Scale (RVS)
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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
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Structural Relation of Motivational
Value Types
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Value Type
Exemplary Values
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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
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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
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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
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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
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trademarks used herein under license.
Analyzing and Predicting
Consumer Behavior
Demographics
Personality
Personal Values
Lifestyles
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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
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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
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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
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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
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trademarks used herein under license.
AIO Categories of Lifestyle Studies
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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
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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
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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
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trademarks used herein under license.
VALSTM Lifestyle Segments
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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
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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
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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
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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
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trademarks used herein under license.
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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
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trademarks used herein under license.
CHAPTER 8
Consumer Motivation
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trademarks used herein under license.
Consumer Motivation
Represents the drive to satisfy
both physiological and
psychological needs through
product purchase and
consumption
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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
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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
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trademarks used herein under license.
Types of Consumer Needs
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trademarks used herein under license.
Types of Consumer Needs
Physiological Needs
Fundamental human needs,
including food, water, and sleep
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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
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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
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trademarks used herein under license.
Safety and Health Needs
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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
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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
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trademarks used herein under license.
Love and Companionship
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trademarks used herein under license.
Types of Consumer Needs
Need for Financial Resources and
Security
A need that includes others
important to the individual
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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
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trademarks used herein under license.
Social Image Needs
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trademarks used herein under license.
Types of Consumer Needs
Need for Pleasure
Products, services, and
consumption activities provide
fun and excitement
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trademarks used herein under license.
© SETH WENIG/Reuters/Landow
Consumers’ Need for Pleasure
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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
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trademarks used herein under license.
Consumers’ Need to Possess
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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
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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
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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
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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
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trademarks used herein under license.
Motivational Conflict and
Need Priorities
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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
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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
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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
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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
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trademarks used herein under license.
Maslow’s Hierarchy of Needs
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Motivational Intensity
Motivational intensity: how strongly
consumers are motivated to satisfy
a particular need
Depends on need’s importance
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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
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trademarks used herein under license.
The Challenge of Understanding
Consumer Motivation
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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
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Unconscious Motivation
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trademarks used herein under license.
Motivating Consumers
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trademarks used herein under license.
Motivating Consumers
Motivating with Money
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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
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trademarks used herein under license.
Motivating with Money
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trademarks used herein under license.
Motivating Consumers
Provide Other Incentives
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trademarks used herein under license.
Motivating Consumers
Provide Other Incentives
Premiums, free products,
contests, and sweepstakes are
designed to motivate consumers
to purchase
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trademarks used herein under license.
Motivating with Other Incentives
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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)
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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
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trademarks used herein under license.
Participation in Loyalty Programs
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trademarks used herein under license.
Motivating Consumers
Enhance Perceived Risk
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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
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trademarks used herein under license.
Informing Consumers of Their Risks
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trademarks used herein under license.
Motivating Consumers
Arouse Consumers’ Curiosity
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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
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trademarks used herein under license.
Arousing Curiosity
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trademarks used herein under license.
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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
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trademarks used herein under license.
Attitudes
Global evaluative judgments
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trademarks used herein under license.
Intentions
Subjective judgments by people
about how they will behave in the
future
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trademarks used herein under license.
Beliefs
Subjective judgments about the
relationship between two or more
things
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trademarks used herein under license.
Feelings
An affective state (e.g., current
mood state) or reaction (e.g.,
emotions experienced during
product consumption)
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trademarks used herein under license.
Relationships between
Consumer Beliefs, Feelings,
Attitudes, and Intentions
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trademarks used herein under license.
Consumer Beliefs
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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.
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trademarks used herein under license.
Consumer Beliefs
Expectations
Brand Distinctiveness
Inferential Beliefs
Consumer Confusion
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Consumer Expectations
Expectations are beliefs about the
future
Consumers’ willingness to spend is
influenced by beliefs about their
financial future
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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
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trademarks used herein under license.
Communicating the Product’s
Unique Selling Proposition
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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
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trademarks used herein under license.
Visual Advertising Elements
and Inferential Beliefs
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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
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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
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trademarks used herein under license.
Consumer Feelings
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trademarks used herein under license.
Types of Feelings
Upbeat
Negative
Warm
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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
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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
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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
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trademarks used herein under license.
Advertising that Evokes
Positive Feelings
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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
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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
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Emphasizing the Product’s Mood
Altering Properties
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trademarks used herein under license.
Emphasizing How Negative
Feelings May Be Avoided
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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
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Consumer Attitudes
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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
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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
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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
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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
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Using Multiattribute Models to
Understand Consumer Attitudes
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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
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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
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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
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trademarks used herein under license.
The Fishbein Multiattribute
Attitude Model
Developing the ei and bi measures
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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
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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
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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
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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)
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trademarks used herein under license.
Communicating the Presence
of Desirable Attributes
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trademarks used herein under license.
Communicating the Absence
of Undesirable Attributes
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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
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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
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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
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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
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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
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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
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Benefits of Using Multiattribute
Attitude Models
Diagnostic power: examine why
consumers like or dislike products
Simultaneous importanceperformance grid with marketing
implications for each cell
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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
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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
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Attitude Change Implications from
Multiattribute Attitude Models
Three primary ways for changing
consumer attitudes:
Change beliefs
Change attribute importance
Change ideal points
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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
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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
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Changing Consumer Attitudes:
Changing Ideal Points
Altering consumers’ preferences for
what the ideal product should look like
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trademarks used herein under license.
This Ad Attempts to Change
Consumers’ Ideal Point
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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?
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trademarks used herein under license.
Consumer Intentions
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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?
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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
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Types of Intentions
Spending intentions
Purchase intentions
Repurchase intentions
Shopping intentions
Search intentions
Consumption intentions
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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
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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
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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
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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
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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
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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
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trademarks used herein under license.
How Firms Can Predict Behavior
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How Firms Can Predict Behavior
Rely on past behavior to predict
future behavior
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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
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How Firms Can Predict Behavior
Rely on consumers’ reported
intentions
People often do what they intend
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trademarks used herein under license.
Constraints on Predictive Power
of Intentions
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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
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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
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Constraints on Predictive Power
of Intentions
Measuring intentions may be less
predictive of future behavior than
measuring what they expect to do
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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)
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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)
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Constraints on Predictive Power
of Intentions
Volitional control: the degree to
which a behavior can be performed
at will
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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
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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
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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
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trademarks used herein under license.
How Reference Groups Influence
Individuals
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trademarks used herein under license.
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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
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The Values Transfusion Model
Values of Society
Family
Religious
Institutions
Peers
Educational
Institutions
Individual
Internalized
Values
Early
Lifetime
Experiences
Media
Society of
Future
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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
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trademarks used herein under license.
How Culture Affects Consumer
Behavior:
Pre-purchase and Purchase
Activities
Consumption and
Divestment Activities
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trademarks used herein under license.
Adapting Strategies to Changing
Cultures
Advertising and marketing efforts
have difficulty changing behaviors
or norms learned early in life
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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
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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
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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
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CHAPTER 11
Culture, Ethnicity, and
Social Class
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Consumer Behavior
Roger D. Blackwell
Paul W. Miniard
James F. Engel
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mailed to the following address:
Permissions Department, Thomson
Business and Economics
5109 Natorp Boulevard
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800–423–0563
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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
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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
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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
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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
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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
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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
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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
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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
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trademarks used herein under license.
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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
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trademarks used herein under license.
CHAPTER 11
Culture, Ethnicity, and
Social Class
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trademarks used herein under license.
What Is Culture?
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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
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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
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trademarks used herein under license.
Influences
Ethnicity
Race
Religion
Regional or
national identity
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trademarks used herein under license.
Influences
Ethnicity
Race
Religion
Regional or
national identity
CULTURE
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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
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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
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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
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trademarks used herein under license.
Characteristics Influenced by Culture
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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
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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
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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
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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
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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
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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
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trademarks used herein under license.
The Values Transfusion Model
Values of Society
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trademarks used herein under license.
The Values Transfusion Model
Values of Society
Family
Religious
Institutions
Educational
Institutions
Early
Lifetime
Experiences
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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
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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
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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
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trademarks used herein under license.
Adapting Strategies to Changing
Cultures
Advertising and marketing efforts
have difficulty changing behaviors
or norms learned early in life
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trademarks used herein under license.
How Culture Affects Consumer
Behavior:
Pre-purchase and Purchase
Activities
Consumption and
Divestment Activities
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trademarks used herein under license.
Influence of Culture on Prepurchase and Purchase Activities
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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
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trademarks used herein under license.
Influence of Culture on Consumption
and Divestment Activities
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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
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trademarks used herein under license.
How Core Values Affect
Marketing
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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
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trademarks used herein under license.
Changing Values
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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
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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
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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
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The Values Transfusion Model
Cultural Transfusive Triad
Family
Religious
Institutions
Educational
Institutions
Early
Lifetime
Experiences
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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)
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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
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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
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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
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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
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trademarks used herein under license.
Consumer Age Cohorts
The Depression
Cohort
The World War II
Cohort
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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.
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trademarks used herein under license.
Consumer Age Cohorts
The Postwar
Cohort
Leading Edge
Boomers Cohort
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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.
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Consumer Age Cohorts
Trailing Edge
Boomers Cohort
Generation X
Cohort
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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.
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Consumer Age Cohorts
N Generation
Cohort
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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.
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National Culture
Individualism versus collectivism
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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
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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
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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
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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
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North American Core Values
Foundation of American values
American values and advertising
Understanding values helps
advertisers avoid violating norms or
standards of society
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trademarks used herein under license.
Core Values Provide Appeals to
Marketers
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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
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trademarks used herein under license.
Ethnic Microcultures and Their
Influences on Consumer
Behavior
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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
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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
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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
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America’s Ethnic Microcultures
Euro-Descent Americans
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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
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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
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America’s Ethnic Microcultures
Multiethnic Microcultures
Includes people from multiple ethnic
backgrounds
How will each of these influences
affect behavior and values?
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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
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trademarks used herein under license.
U.S. Population by Race
and Ethnic Group
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trademarks used herein under license.
U.S. Households and
Average Incomes
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trademarks used herein under license.
Black or African-American Culture
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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
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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
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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
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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
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trademarks used herein under license.
Asian-American Culture
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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
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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
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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
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Advertisements Appealing to
the Asian-American Market
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trademarks used herein under license.
Latino (Hispanic) Culture
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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
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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
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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
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Advertisements Appealing to
the Latin-American Market
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trademarks used herein under license.
Advertisements Appealing to
the Latin-American Market
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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”
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Latino (Hispanic) Culture
Avoiding Marketing Blunders
Translation problems
Culture misunderstandings
Latino idiosyncrasies
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trademarks used herein under license.
French-Canadian Culture
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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
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trademarks used herein under license.
Social Class Microcultures
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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
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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
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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
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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
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trademarks used herein under license.
Social Class Microcultures
What determines social class?
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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
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trademarks used herein under license.
Social Class Microcultures
Consumer analysts often focus on
six variables which determine
social class
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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
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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
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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
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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)
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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)
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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)
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trademarks used herein under license.
Market Segmentation
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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
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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
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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
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trademarks used herein under license.
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