Consumer Behaviour Schiffman, Kanuk, Hansen PDF

consumer BEHAviour consumer BEHAviour A European Outlook Second Edition Leon...

consumer BEHAviour consumer BEHAviour A European Outlook Second Edition Leon G. Schiffman Leslie Lazar Kanuk HÅvard Hansen The second European edition of Schiffman and Kanuk’s classic Consumer Behaviour focuses not only on what consumers buy, but also why they buy, when they buy, where they buy, how they evaluate their purchase, and how they ultimately dispose of it. The text has been thoroughly adapted and revised to reflect European conditions, and to focus attention on critical concepts in consumer behaviour. The authors discuss the effects of family, social class, culture and subculture on the decision making process, and, by taking a psychological approach, illuminate the ways in which marketers apply the principles of consumer behaviour to the development and implementation of marketing strategies. New to this edition Second A strengthened emphasis on decision making as an important Edition starting point for studying consumer behaviour. Thoroughly updated European examples as well as new examples Schiffman Kanuk Hansen BEHAviour relating to online consumer behaviour. More theoretical models of consumer behaviour, such as the Theory of Planned Behaviour. Online resources available at www.pearsoned.co.uk/schiffman include PowerPoint slides and a testbank of multiple choice questions for lecturers as well as an online glossary, self-assessment questions for every chapter, flashcards and weblinks for students. About the authors A European Outlook Leon G. Schiffman is J. Donald Kennedy Chair in E-Commerce at the Peter J. Tobin College of Business at St. John’s University, New York City, USA. Leslie Lazar Kanuk is Emeritus Professor of Marketing at the City University of New York Graduate School, USA. Håvard Hansen is Professor of Marketing at the UiS Business School, University of Stavanger, Norway. Second Edition Leon G. Schiffman www.pearson-books.com Leslie Lazar Kanuk HÅvard Hansen CVR_HANS6950_02_SE_CVR.indd 1 30/08/2011 10:10  CONS MER BEHAVIOUR Visit the Consumer Behaviour: A European Outlook, Second Edition, Companion Website at www.pearsoned.co.uk/schiffman to find valuable student learning material including: Self-assessment multiple choice questions for each chapter Searchable online glossary Flashcards to test your knowledge of key terms and definitions A00_HANS6950_01_SE_FM.indd i 8/24/11 3:01 PM  We work with leading authors to develop the strongest educational materials in business, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearson.com/uk A00_HANS6950_01_SE_FM.indd ii 8/24/11 3:02 PM  CONS MER BEHAVIOUR A EUROPEAN OUTLOOK second edition LEON G. SCHIFFMAN St. John’s University, New York, USA LESLIE LAZAR KANUK and HÅVARD HANSEN City University, University of Stavanger, New York Graduate School, USA Norway A00_HANS6950_01_SE_FM.indd iii 9/2/11 10:28 AM  Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearson.com/uk Published 2007, 2004, 2000, 1997, 1991 by Pearson Education Inc., Upper Saddle River, New Jersey, 07458 First published in the UK 2008 Second edition 2012 © Pearson Education Limited 2008, 2012 The rights of Leon G. Schiffman, Leslie Lazar Kanuk and Håvard Hansen to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. Pearson Education is not responsible for the content of third-party internet sites. ISBN: 978-0-273-73695-0 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Schiffman, Leon G. Consumer behaviour : a European outlook / Leon G. Schiffman, Håvard Hansen and Leslie Kanuk. — 2nd ed. p. cm. Includes bibliographical references and index. ISBN 978–0–273–73695–0 (pbk.) 1. Consumer behavior—Europe. 2. Motivation research (Marketing)—Europe. I. Hansen, Håvard. II. Kanuk, Leslie Lazar. III. Title. HF5415.33.E85H36 2011 658.8'342—dc22 2011013123 10 9 8 7 6 5 4 3 2 1 15 14 13 12 11 Typeset in 9/12 pt ITC Giovanni by 73 Printed and bound by Rotolito Lombarda, Italy A00_HANS6950_01_SE_FM.indd iv 8/25/11 2:36 PM  BRIEF CONTENTS Preface to the second edition xi Guided Tour xiv Acknowledgements xvi PART 1 INTRODUCTION 1 1 An introduction to the study of consumer behaviour 2 2 Consumer research 18 3 Market segmentation 38 PART 2 THE CONSUMER AS AN INDIVIDUAL 61 4 Consumer decision-making 62 5 Consumer motivation 97 6 Personality and consumer behaviour 125 7 Consumer perception 158 8 Consumer learning 195 9 Consumer attitude formation and change 232 10 Communication and consumer behaviour 264 PART 3 CONSUMERS IN THEIR SOCIAL AND CULTURAL SETTINGS 293 11 Reference groups and family influences 294 12 Social class and consumer behaviour 323 13 The influence of culture and subculture on consumer behaviour 341 14 Cross-cultural consumer behaviour: an international perspective 365 PART 4 MORE ON THE CONSUMER’S DECISION-MAKING PROCESS 387 15 Consumer influence and the diffusion of innovations 388 16 Consumer decision-making – again 429 Glossary 432 Index 444 A00_HANS6950_01_SE_FM.indd v 8/24/11 3:02 PM  vi PART 1 INTRODUCTION A00_HANS6950_01_SE_FM.indd vi 8/24/11 3:02 PM  CONTENTS Preface to the second edition xi Guided Tour xiv Acknowledgements xvi PART 1 INTRODUCTION 1 1 AN INTRODUCTION TO THE STUDY OF CONSUMER BEHAVIOUR 2 Development of the marketing concept and the discipline of consumer behaviour 3 Customer value, satisfaction and retention 7 The impact of digital technologies on marketing strategies 11 Marketing ethics and social responsibility 13 Consumer behaviour and decision-making are interdisciplinary 14 The plan of this book 15 Summary 16 2 CONSUMER RESEARCH 18 Consumer research paradigms 19 The consumer research process 21 Summary 36 3 MARKET SEGMENTATION 38 What is market segmentation? 39 Criteria for effective targeting of segments 40 Bases for segmentation 41 Implementing segmentation strategies 55 Summary 57 PART 2 THE CONSUMER AS AN INDIVIDUAL 61 4 CONSUMER DECISION-MAKING 62 What is a decision? 63 Levels of consumer decision-making 64 Models of consumers: four views of consumer decision-making 65 A model of consumer decision-making 68 Consumer gifting behaviour 85 Beyond the decision: consuming and possessing 89 Summary 91 A00_HANS6950_01_SE_FM.indd vii 8/24/11 3:02 PM  viii CONTENTS 5 CONSUMER MOTIVATION 97 Motivation as a psychological force 99 The dynamics of motivation 107 Types and systems of needs 114 Motivational research 120 Summary 121 6 PERSONALITY AND CONSUMER BEHAVIOUR 125 What is personality? 126 Theories of personality 127 Personality and understanding consumer diversity 130 Brand personality 140 Self and self-image 147 Virtual personality or self 151 Summary 152 7 CONSUMER PERCEPTION 158 Elements of perception 159 Dynamics of perception 165 Consumer imagery 175 Perceived risk 186 Ethics and consumer perception 188 Summary 189 8 CONSUMER LEARNING 195 The elements of consumer learning 196 Behavioural learning theories 197 Cognitive learning theory 211 Measures of consumer learning 222 Ethics and consumer learning 226 Summary 227 9 CONSUMER ATTITUDE FORMATION AND CHANGE 232 What are attitudes? 233 Structural models of attitudes 234 Attitude formation 243 Strategies of attitude change 245 Behaviour can precede or follow attitude formation 254 Summary 258 10 COMMUNICATION AND CONSUMER BEHAVIOUR 264 Components of communication 265 The communications process 268 Designing persuasive communications 277 Marketing communication and ethics 286 Summary 288 PART 3 CONSUMERS IN THEIR SOCIAL AND CULTURAL SETTINGS 293 11 REFERENCE GROUPS AND FAMILY INFLUENCES 294 What is a group? 295 Understanding the power of reference groups 295 A00_HANS6950_01_SE_FM.indd viii 8/24/11 3:02 PM  CONTENTS ix Selected consumer-related reference groups 298 Celebrity and other reference group appeals 301 The family is a concept in flux 306 Socialisation of family members 307 Other functions of the family 309 Family decision-making and consumption-related roles 310 The family life cycle 314 Summary 319 12 SOCIAL CLASS AND CONSUMER BEHAVIOUR 323 What is social class? 324 The measurement of social class 326 Lifestyle profiles of the social classes 330 Social-class mobility 330 The affluent consumer 332 Middle-class consumers 334 The working class and other non-affluent consumers 336 Recognising the ‘techno-class’ 336 Summary 337 13 THE INFLUENCE OF CULTURE AND SUBCULTURE ON CONSUMER BEHAVIOUR 341 What is culture? 342 The invisible hand of culture 342 Culture satisfies needs 343 Culture is learned 343 Culture is shared 348 Culture is dynamic 348 The measurement of culture 349 What is subculture? 352 Nationality subcultures 353 Religious subcultures 353 Geographic and regional subcultures 353 Age subcultures 354 Sex as a subculture 359 Subcultural interaction 361 Summary 361 14 CROSS-CULTURAL CONSUMER BEHAVIOUR: AN INTERNATIONAL PERSPECTIVE 365 The imperative to be multinational 366 Cross-cultural consumer analysis 369 Alternative multinational strategies: Global versus local 376 Cross-cultural psychographic segmentation 381 Summary 381 PART 4 MORE ON THE CONSUMER’S DECISION- MAKING PROCESS 387 15 CONSUMER INFLUENCE AND THE DIFFUSION OF INNOVATIONS 388 What is opinion leadership? 389 Dynamics of the opinion leadership process 390 The motivation behind opinion leadership 391 Measurement of opinion leadership 393 A00_HANS6950_01_SE_FM.indd ix 8/24/11 3:02 PM  x PART 1 INTRODUCTION CONTENTS A profile of the opinion leader 395 Frequency and overlap of opinion leadership 396 The situational environment of opinion leadership 398 The interpersonal flow of communication 399 Marketers seek to take control of the opinion leadership process 401 Diffusion of innovations 403 The diffusion process 403 The adoption process 414 A profile of the consumer innovator 416 Summary 422 16 CONSUMER DECISION-MAKING – AGAIN 429 Glossary 432 Index 444 SUPPORTING RESOURCES Visit www.pearsoned.co.uk/schiffman to find valuable online resources Complete, downloadable Instructor’s Manual PowerPoint slides that can be downloaded and used for presentations Also: The Companion Website provides the following features: Search tool to help locate specific items of content E-mail results and profile tools to send results of quizzes to instructors Online help and support to assist with website usage and troubleshooting For more information please contact your local Pearson Education sales representative or visit www.pearsoned.co.uk/schiffman A00_HANS6950_01_SE_FM.indd x 8/24/11 3:02 PM  PREFACE TO THE SECOND EDITION Ever since I was a second year business school student and took my first course in consumer behav- iour, Schiffman and Kanuk’s text has stood out as one of the best textbooks I have ever read. Later, when I found myself responsible for the same introductory consumer behaviour course as I once took myself, the choice of which textbook to use turned out to be quite simple. And certainly, when I was invited to contribute to a European adaptation of the text, I found myself facing yet another simple choice. That being said, the term ‘adaptation’ needs an explanation. Given the fact that the original text is a really good introduction to the study of consumer behaviour, the contents of this European adaptation do not differ substantially from the original text. The goal has been to adapt the book to fit the needs of the European student of consumer behaviour, which means that what you are now holding is a book for European consumers (i.e. students) – and not a book about European consumers. Specifically, in line with the original text, I have kept the focus on the examination and application of consumer behaviour principles to the development and implementation of market- ing strategies. From a managerial point of view, the overarching objective for a marketer is to have consumers choose its products or services instead of equivalents offered by competing firms. While simple to state, such a goal often proves hard to accomplish. In recognition of this fact, the European adaptation has increased the emphasis on consumer decision-making by placing this topic as the first chapter in the section on the consumer as an individual. By so doing, an understanding of the complexity of consumer decision-making is established early on, and the succeeding chapters on consumers both as individuals and in their social settings extend the comprehension of how deci- sions are influenced in a variety of ways. OVERVIEW OF CHANGES IN THIS SECOND EDITION The first edition text was thoroughly adapted to European conditions and somewhat revised to focus attention on critical consumer behaviour concepts, highlighting the links between inter- related principles and processes. Some of the major changes between the first and the second edition include: A strengthened emphasis on decision-making as an important starting point for studying consumer behaviour. A further update of examples from Europe, with a focus on offering examples that are both understandable and familiar to students regardless of which European country they come from. An inclusion of more examples related to online consumer behaviour. Inclusion of more theoretical models of consumer behaviour, for example the Theory of Planned Behaviour as an extension of TRA in the chapter on attitudes. A00_HANS6950_01_SE_FM.indd xi 8/24/11 3:02 PM  xii PREFACE TO THE SECOND EDITION ORGANISATION OF THE TEXT This European adaptation of Consumer Behaviour consists of 16 chapters, divided into four parts: Part 1 provides the background and tools for a strong and comprehensive understanding of the consumer behaviour principles examined throughout the rest of the book Chapter 1, An introduction to the study of consumer behaviour, sets the tone for the book. It introduces the reader to the study of consumer behaviour, its diversity, its development and the latest evolution of the marketing concept, and discusses marketing ethics and consumer responsibility. It examines how companies use past consumption behaviour as the foundation for creating and keeping satisfied and profitable lifetime customers. The chapter also introduces a simple model of consumer decision-making that provides a structural framework for under- standing the interrelationships among the consumer behaviour principles examined throughout the book. Chapter 2 provides readers with an overview of the critical consumer research process and the techniques associated with consumer behaviour research. Chapter 3 presents a comprehensive exami- nation of the newest insights into effective market segmentation. Part 2 discusses the consumer as an individual Chapter 4 describes how consumers make product decisions, and expands on the increasingly important practice of relationship marketing. This chapter concludes with a deeper and more comprehensive examination of a model of consumer decision-making (building on the over- view model briefly introduced in Chapter 1). It includes an in-depth examination of consumer gifting behaviour, a discussion of the expanding research focus on individual consumption behaviour and the symbolic meanings of consumer possessions. Chapter 5 presents an in-depth discussion of consumer needs and motivations, exploring both the rational and emotional bases of consumer actions. Chapter 6 discusses the impact of the full range of personality the- ories on consumer behaviour and explores consumer materialism, fixated consumption and compulsive consumption behaviour. The chapter considers the related concepts of self and self- image and includes an expanded discussion of virtual personality or self. Chapter 7 provides a comprehensive examination of the impact of consumer perception on marketing strategy and the importance of product positioning and repositioning. Chapter 8 examines how consumers learn, and discusses behavioural and cognitive learning theories, limited and extensive informa- tion processing, and the applications of consumer involvement theory to marketing practice. Chapter 9 offers an in-depth examination of consumer attitudes. Chapter 10 demonstrates that communication is the bridge between individuals and the world and people around them, and includes a timely discussion of advertising, traditional and new media, and the effective use of persuasion. Part 3 is concerned with the social and cultural dimensions of consumer behaviour Chapter 11 begins with a discussion of consumer reference groups (including virtual groups and virtual communities), family role orientations and changing family lifestyles. Chapter 12 presents consumers in terms of their socio-economic and social-class standing and discusses the emergence of the ‘techno class’. Chapter 13 investigates consumers in their social and cultural milieus. Societal and subcultural values, beliefs and customs in relation to consumer behaviour are also discussed in this chapter. Chapter 14 concludes this part with a discussion of cross- cultural marketing within an increasingly global marketplace. A00_HANS6950_01_SE_FM.indd xii 8/24/11 3:02 PM  PREFACE TO THE SECOND EDITION xiii Part 4 explores further aspects of consumer decision-making Chapter 15 offers a comprehensive discussion of personal influence, opinion leadership and the diffusion of innovations. Chapter 16 summarises the text and ties the threads back to the decision-making model introduced in Chapter 1 and described in detail in Chapter 4. Finally, I would like to record my great appreciation for being given the opportunity to work with such an impressive text, and it is my hope that you enjoy reading this European adaptation as much as I have enjoyed working on it. HÅVARD HANSEN Egersund, Norway February 2011 A00_HANS6950_01_SE_FM.indd xiii 8/24/11 3:02 PM  GUIDED TOUR Colourful part openers introduce the chapters, outlining what you can expect to learn from each section of the book. ▲ PART 1 INTRODUCTION PART 1 PROVIDES THE BACKGROUND AND THE TOOLS FOR A STRONG AND COMPREHENSIVE UNDERSTANDING OF CONSUMER BEHAVIOUR Chapter 1 introduces the reader to the study of consumer behaviour, its diversity, its development and the role of consumer research. It concludes with a detailed discussion of ethical considerations in marketing and consumer practices and introduces a simple model of consumer decision- making. Chapter 2 provides an overview of the critical research process and the techniques associated with consumer behaviour research, including a discussion of positivist and interpretivist research methods. Chapter 3 presents a comprehensive examination of market segmentation and demonstrates how consumer behaviour variables provide both the conceptual framework and the strategic direction for the practical segmentation of markets. CHAPTER 1 AN INTRODUCTION TO THE STUDY OF CONSUMER BEHAVIOUR Consumer behaviour has changed dramatically in the past few decades. Today, consum- ers can order online many customised products ranging from trainers to computers. Many have replaced their daily newspapers with customised, online editions of these media and are increasingly receiving information from online sources. Students choosing a university no longer rely on receiving prospectuses through the post; instead, they have online access to all the pertinent information about a university’s courses and teach- ing staff and, in some cases, can visit, virtually, actual classes. People wanting to sell their old computers or grandmother’s antique table no longer need to advertise in the local newspaper or rely on a pricey auctioneer; instead, they can sell these items via online auctions or their own personalised online advertisement. Consumers who want out-of-print books no longer have to visit out-of-the-way shops with hundreds of poorly organised dusty shelves, and those who wish to purchase a book published in another country no longer have to call foreign publishers or deal with the bureaucratic nightmare of overseas delivery; instead, they can visit online stores where they can easily locate and place orders for the books they seek. Television viewers can now avoid the advertisement breaks by using the ‘skip’ feature of their recorders and order on demand previously shown television programmes as well as films. All of these new ways of selling products and services became available to consumers during the past 15 years and are the result of digital technologies. And they also have another thing in common: they exist today because they reflect an understanding of consumer needs and consumer behaviour. The term consumer behaviour is defined as the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behaviour focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption- related items. That includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase, the impact of such evaluations on future purchases and how they dispose of it. Chapter introductions concisely describe the ▲ themes and issues explored in the chapter. A00_HANS6950_01_SE_FM.indd xiv 8/25/11 10:24 AM  GUIDED TOUR xv CHAPTER 1 AN INTRODUCTION TO THE STUDY OF CONSUMER BEHAVIOUR 3 36 PART 1 INTRODUCTION Clearly, as individuals we are all unique. However, one of the most important constants element of the research design, such as question wording or format, they might decide first to among all of us despite our differences is that, above all, we are consumers. We use do a small-scale exploratory study. Then, after refining the questionnaire and any other needed or consume on a regular basis food, clothing, shelter, transport, education, equipment, elements of the research design, they would launch a full-scale quantitative survey, using a prob- holidays, necessities, luxuries, services and even ideas. As consumers we play a vital ability sample that would allow them to project the findings to the total population of singles role in the health of the economy – local, national and international. The purchase deci- (as originally defined). The analysis should cluster prospective consumers of the online dating sions we make affect the demand for basic raw materials, for transport, for production, service into segments based on relevant sociocultural or lifestyle characteristics and on media for banking; they affect the employment of workers and the deployment of resources, the habits, attitudes, perceptions and geodemographic characteristics. success of some industries and the failure of others. In order to succeed in any business, and especially in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers – what they want, what they think, how they work, how they spend their leisure time. They need to understand the personal and group influences that affect consumer decisions and how these decisions are made. And, in A Summary of the SUMMARY these days of ever-widening media choices, they need not only to identify their target audiences, but also to know where and how to reach them. The term consumer behaviour describes two different kinds of consuming entities: points covered The field of consumer research developed as an extension of the field of marketing research to enable marketers to predict how consumers would react in the marketplace and to understand the reasons why they made the purchase decisions they did. Consumer research undertaken the personal consumer and the organisational consumer. The personal consumer buys from a managerial perspective to improve strategic marketing decisions is known as positivism. goods and services for his or her own use, for the use of the household, or as a gift for a friend. In each of these contexts, the products are bought for final use by individu- concludes each Positivist research is quantitative and empirical and tries to identify cause-and-effect relation- ships in buying situations. It is often supplemented with qualitative research. als, who are referred to as end-users or ultimate consumers. The second category of Qualitative research is concerned with probing deep within the consumer’s psyche to under- consumer – the organisational consumer – includes companies and charities, government agencies (local and national), and institutions (e.g. schools, hospitals and prisons), all chapter – ideal for stand the motivations, feelings and emotions that drive consumer behaviour. Qualitative research findings cannot be projected to larger populations but are used primarily to provide of which must buy products, equipment and services in order to run their organisations. new ideas and insights for the development of positioning strategies. Interpretivism, a qualita- Despite the importance of both categories of consumers – individuals and organisations – this book will focus on the individual consumer, who purchases for his or her own per- revision and tive research perspective, is generally more concerned with understanding the act of consuming rather than the act of buying (consumer decision-making). Interpretivists view consumer behav- iour as a subset of human behaviour, and increased understanding as a key to eliminating some sonal use or for household use. End-use consumption is perhaps the most pervasive of all types of consumer behaviour, for it involves every individual, of every age and back- ground, in the role of either buyer or user, or both. checking your of the ills associated with destructive consumer behaviour. Each theoretical research perspective is based on its own specific assumptions and uses its own research techniques. Positivists typically use probability studies that can be generalised ▲ to larger populations. Interpretivists tend to view consumption experiences as unique situa- DEVELOPMENT OF THE MARKETING CONCEPT AND understanding. tions that occur at specific moments in time; therefore, they cannot be generalised to larger populations. The two theoretical research orientations are highly complementary and, when THE DISCIPLINE OF CONSUMER BEHAVIOUR used together, provide a deeper and more insightful understanding of consumer behaviour than either approach used alone. The field of consumer behaviour is rooted in the marketing concept, a business orientation that The consumer research process – whether quantitative or qualitative in approach – generally evolved in the 1950s through several alternative approaches towards doing business referred to, consists of six steps: defining objectives, collecting secondary data, developing a research design, respectively, as the production concept, the product concept and the selling concept. collecting primary data, analysing the data and preparing a report of the findings. The researcher The production concept assumes that consumers are mostly interested in product availability must make every effort to ensure that the research findings are reliable (that a replication of the at low prices; its implicit marketing objectives are cheap, efficient production and intensive dis- study would provide the same results) and valid (that they answer the specific questions for tribution. This orientation makes sense when consumers are more interested in obtaining the which the study was originally undertaken). product than they are in specific features and will buy what is available rather than wait for what they really want. Today, using this orientation makes sense in developing countries or in other situations in which the main objective is to expand the market. The product concept assumes that consumers will buy the product that offers them the highest quality, the best performance and the most features. A product orientation leads the company DISCUSSION QUESTIONS to strive constantly to improve the quality of its product and to add new features that are techni- cally feasible without finding out first whether or not consumers really want these features. A 1. Have you ever been selected as a respondent in a marketing research survey? If yes, how product orientation often leads to ‘marketing myopia’, that is, a focus on the product rather than were you contacted? Why do you think you, in particular, were selected? Did you know or on the consumer needs it presumes to satisfy. Marketing myopia may cause a company to ignore could you guess the purpose of the survey? Do you know the name of the company or brand crucial changes in the marketplace because it causes marketers to look in the mirror rather than involved in the survey? through the window. For example, Levi’s Jeans saw a decline in sales from record annual sales 2. Identify a purchase you have made that was motivated primarily by your desire to obtain a of $7.1 billion in 1996 to $5.1 billion in 1999. In the same period, profits fell from more than special ‘feeling’ or an ‘experience’. Would the positivist or interpretivist research paradigm be $1 billion to barely nothing, despite the fact that Levi’s closed down 30 of its 51 factories and laid a more appropriate way to study your consumption behaviour? Explain your answer. ▲ ▲ Key terms highlighted in the text can be Discussion questions can stimulate cross-referenced to the Glossary found at further thought and debate and can be the end of the book. used when preparing for exams. CHAPTER 2 CONSUMER RESEARCH 37 3. What is the difference between primary and secondary research? Under what circumstances might the availability of secondary data make primary research unnecessary? What are some major sources of secondary data? 4. A manufacturer of powdered fruit drinks would like to investigate the effects of food colour and label information on consumers’ perceptions of flavour and product preferences. Would you advise the manufacturer to use observational research, experimentation or a survey? Explain your choice. 5. Why might a researcher prefer to use focus groups rather than depth interviews? When might depth interviews be preferable? 6. Compare the advantages and disadvantages of postal, telephone, personal and online Exercises in 7. surveys. How would the interpretation of survey results change if the researcher used a probability GLOSSARY 8. sample rather than a non-probability sample? Explain your answer. Why is customer satisfaction measurement an important part of marketing research? Apply each chapter one of the methods in Table 2-4 to measure your fellow students’ satisfaction with the serv- 9. ices provided by the bookshop at your university. Why is observation becoming a more important component of consumer research? Describe two new technologies that can be used to observe consumption behaviour and explain why help you to put Absolute Threshold. The lowest level at which an individual can experience a sensation. Advertising Wear-out. Overexposure to repetitive advertising that causes individuals to become satiated Acculturation. The learning of a new or ‘foreign’ culture. and their attention and retention to decline. they are better to use than questioning consumers about the behaviour being observed. the concepts Acquired Needs. Needs that are learned in response to one’s culture or environment (such as the need for Affect Referral Decision Rule. A simplified decision rule by which consumers make a product choice on the esteem, prestige, affection, or power). Also known as basis of their previously established overall ratings of the EXERCISES 1. Nivea is a manufacturer of personal care products, and offers products ranging from sun care you have learned psychogenic or secondary needs. Acquisition–Transaction Utility. This theory suggests brands considered, rather than on specific attributes. Affluent Market. Upscale market segment that consists that there are two types of utilities that are associated of households with incomes that are higher than average to deodorants. The company would like to extend its facial care product line. Design (1) a qualitative and (2) a quantitative research design for the company focused on this objective. 2. How would you design an experiment able to test the effect of time pressure on consumers’ about to with consumer purchases: acquisition utility, which represents the consumer’s perceived economic gain (e.g. income over €75,000). Age Subcultures. Age sub-groupings of the population. ▲ ability to solve mathematical puzzles? or loss associated with a purchase, and transaction Approach Object. A positive goal towards which 3. Using one of the customer satisfaction measures, construct an instrument to assess your fellow students’ satisfaction with the technological support services provided by your practical use. utility, which concerns the perceived pleasure or displeasure associated with the financial aspect of the behaviour is directed. Attitude. A learned predisposition to behave in a university. purchase. consistently favourable or unfavourable manner with 4. Develop a questionnaire to measure students’ attitudes toward the instructor on this course. Activities, Interests and Opinions (AIOs). Psychographic respect to a given object. a. Prepare five statements measuring students’ attitudes via a Likert scale. variables that focus on activities, interests, and opinions. Attitude Scales. Research measurement instrument used b. Prepare five semantic differential scales to measure student attitudes. Can the same Also referred to as lifestyle. to capture evaluative data. dimensions be measured by using either scaling technique? Explain your answer. Actual Self-Image. The image that an individual Attitude Towards Behaviour Model. A model that has of himself or herself as a certain kind of person, proposes that a consumer’s attitude towards a specific with certain characteristic traits, habits, possessions, NOTES behaviour is a function of how strongly he or she relationships and behaviour. believes that the action will lead to a specific outcome 1. Brian D. Till and Michael Busler, ‘The Match-Up Hypothesis: Physical Attractiveness, Adopter Categories. A sequence of categories that (either favourable or unfavourable). Expertise, and the Role of Fit on Brand Attitude, Purchase Intent and Brand Beliefs’, Journal describes how early (or late) a consumer adopts a new Attitude Towards Object Model. A model that proposes of Advertising, Fall 2000, 1–13. product in relation to other adopters. The five typical that a consumer’s attitude towards a product or brand is 2. Joseph F. Hair, Robert P. Bush and David J. Ortinau, Marketing Research, 2nd edn (New York: adopter categories are innovators, early adopters, early a function of the presence of certain attributes and the McGraw Hill Irwin, 2003), Chapter 10. majority, late majority and laggards. consumer’s evaluation of those attributes. 3. Nina Michaelidou and Sally Dibb, ‘Using Email Questionnaires for Research: Good Practice Adoption Process. The stages through which an Attitude Towards the Ad Model. A model that proposes in Tackling Non-Response’, Journal of Targeting, Measurement and Analysis for Marketing, 14, individual consumer passes in arriving at a decision to that a consumer forms various feelings (affects) and July 2006, 289–96. try (or not to try), to continue using (or discontinue judgements (cognitions) as the result of exposure to 4. Deborah D. Heisley and Sidney J. Levy, ‘Autodriving: A Photoelicitation Technique’, Journal using) a new product. The five stages of the traditional an advertisement, which, in turn, affect the consumer’s of Consumer Research, December 1991, 257–72. adoption process are awareness, interest, evaluation, trial attitude towards the advertisement and beliefs and attitudes 5. Robin A. Coutler, Gerald Zaltman and Keith S. Coutler, ‘Interpreting Consumer Perceptions and adoption (rejection). towards the brand. of Advertising: An Application of the Zaltman Metaphor Elicitation Technique’, Journal of Advertising, Winter 2001, 1–21. Advertising Resonance. Wordplay, often used to create Attitudinal Measures. Measures concerned with 6. Emily Eakin, ‘Penetrating the Mind by Metaphor’, New York Times, 23 February 2002, B9, B11. a double meaning, used in combination with a relevant consumers’ overall feelings (i.e. evaluation) about the picture. product and the brand and their purchase intentions. ▲ ▲ Notes at the end of each chapter list the An end-of-book Glossary provides a handy sources you can use if you want to take guide to important terms and concepts. your reading further. A00_HANS6950_01_SE_FM.indd xv 8/25/11 10:24 AM  ACKNOWLEDGEMENTS We are grateful to the following for permission to reproduce reprinted with permission from Dimensions of brand copyright material: personality, Journal of Marketing Research, published by the American Marketing Association, Aaker, J. L., 35, August 1997, p. 352; Figure 6.7 from LG Born to Shine advertise- Figures ment, LG Electronics Nordic AB; Figure 6.8 adapted from Figure 2.2 reprinted with permission from Customer Using self-concept to assess advertising effectiveness, profitability in a supply chain, Journal of Marketing, pub- Journal of Advertising Research, February, p. 87 (Mehta, A. lished by the American Marketing Association, Niraj, R., 1999), with permission from Warc; Figure 7.1 from WWF Gupta, M. and Narasimhan, C., July, 2001; Figure 3.1 from advertisement. Mediterranean bluefin tuna are killed to Volvo XC90 advertisement, Copyright: Volvo Personbiler make sushi, photographer Piet Johnson, with kind per- Norge AS/TWBA; Figure 3.2 from Jagged Globe, reprinted mission from WWF and Ogilvy & Mather; Figure 7.4 from with permission from Jagged Globe, Climb Trek Ski Ltd., AAAA advertisement, courtesy of American Association www.jagged-globe.co.uk ; Figure 3.3 adapted from SBI of Advertising Agencies; Figure 7.5 from PETA advertise- VALS™ segments, Reprinted with permission of Strate- ment, image courtesy of PETA (www.peta.org ); Figure gic Business Insights (SBI); www.strategicbusinessin- 7.11 reprinted by permission from Macmillan Publish- sights.com/VALS; Figure 4.1 reprinted with permission ers Ltd: Journal of Brand Management, 11, 6, July, Measur- from Goal setting and goal striving in consumer behav- ing perceptions of brand luxury, p. 484 (Vigneron, F. and iour, Journal of Marketing, published by the American Johnson, L. W. 2004), copyright 2004 published by Pal- Marketing Association, Bagozzi, R. P. and Dholakia, U., grave Macmillan; Figure 7.12 reprinted with permission 63, 1999, p. 21; Figure 4.3 from Search regret: Anteced- from The behavioural consequences of service quality, ents and consequences, Journal of Retailing, 82, 4, p. 342 Journal of Marketing, published by the American Market- (Reynolds, K. E., Garretson Folse, J. A. and Jones, M. A. ing Association, Zeithaml, V. A., Berry, L. L. and Parasura- 2006), Copyright 2006, with permission from Elsevier; man, A., 60, April 1996, p. 33; Figure 7.13 reprinted Figure 4.5 reprinted with permission from Decision mak- with permission from Effects of price, brand and store ing and coping of functionally illiterate consumers and information on buyers’ product evaluations, Journal of some implications for marketing management, Journal of Marketing Research, published by the American Marketing Marketing, published by the American Marketing Associa- Association, Dodds, W., Monroe, K. and Grewal, D., 28, tion, Viswanathan, M., Rosa, J. A., Harris, J. E., 69, Janu- August 1991, p. 308; Figure 8.1 from KLM BlueBiz adver- ary 2005, p. 19; Figure 5.1 adapted from Observations: tisement © KLM Royal Dutch Airlines; Figures 8.3a, 8.3b, Translating values into product wants, Journal of Advertis- 8.4a, 8.4b from © V&S Vin & Sprit AB. Used under per- ing Research, 36, 6, November (Dugree, J. F. et al. 1996), mission from V&S Vin & Sprit AB. ABSOLUT® VODKA. with permission from Warc; Figures 5.3a, 5.3b, 5.3c from ABSOLUT COUNTRY OF SWEDEN VODKA & LOGO, Sonador Wines advertisements, www.sonadorwines. ABSOLUT, ABSOLUT BOTTLE DESIGN AND ABSOLUT com, Branded Wines AS; Figure 6.3 from IKEA advertise- CALLIGRAPHY ARE TRADEMARKS OWNED BY V&S VIN ment - TILLSAMMANS - together with IKEA, illustrator & SPRIT AB; Figure 8.10 from BBC World News adver- Lotta Kühlhorn, with agency Agent Bauer. Used with the tisement, BBC World News/James Day; Figure 8.11 with permission of Inter IKEA Systems B.V; Figure 6.4 from kind permission from Springer Science+Business Media:, Devold advertisement, Devold of Norway AS; Figure 6.5 Journal of the Academy of Marketing Science, Customer A00_HANS6950_01_SE_FM.indd xvi 8/24/11 3:02 PM  ACKNOWLEDGEMENTS xvii loyalty: Toward an integrated conceptual framework, 22, Tables 2, 1994, p. 101 (Dick, A. S. and Basu, K.), Copyright © 1994, Springer; Figure 9.3 adapted from The relationship Table 1.3 adapted from Beyond the Marketing Concept: between consumer characteristics and attitude toward From ‘Make only what you can sell’ to ‘Let customers customize online shopping, Marketing Intelligence and Planning, 21, what you make’, Working Paper, May (Wisenblit, J. 2002), 1, p. 40 (Shwu-Ing Wu 2003), © Emerald Group Publish- The Stillman School of Business, Seton Hall University, ing Limited all rights reserved; Figure 9.4 adapted from South Orange, NJ, with permission from Joe Wisenblit; Ajzen, Icek; Fishbein, Martin, Understanding Attitudes and Table 2.1 reprinted with permission from Customer Predicting Social Behavior, 1st ©1980, Printed and Electron- research, not marketing research, Marketing Research, ically reproduced by permission of Pearson Education, published by the American Marketing Association, Pru- Inc., Upper Saddle River, New Jersey; Figure 9.5 adapted den, D. R. and Vavra, T. G., Summer 2000, pp. 14-19; from The power of feelings in understanding advertising Table 3.1 adapted from VALS™ segments consumers by effects, Journal of Consumer Research, 14, December, p. 431 psychological characteristics and a few demographics. (Edell, J. A. and Burke, M. C. 1987), Copyright © 1987, GeoVALS™ brings geography to VALS, Reprinted with per- JCR, Inc; Figure 9.9 from Nikon advertisement, www. mission of Strategic Business Insights (SBI); www.strate- europe-nikon.com , Nikon BV; Figure 9.10 from Dove gicbusinessinsights.com/VALS; Table 3.3 adapted from soap advertisement, reproduced with kind permission of Segmenting global markets by generational cohorts: Unilever [from an original in Unilever Archives]; Figure determining motivations by age, Journal of Consumer 10.5 adapted from A new model for measuring advertis- Behaviour , 1 September, p. 56 (Schewe, C. D. and ing effectiveness, Journal of Advertising Research, March/ Meredith, G. 2004), copyright © 2004 Henry Stewart Pub- April, pp. 23-31 (Hall, B. F. 2002), with permission from lications Ltd., reprinted with permission from John Wiley Warc; Figure 10.6 from SAAB advertisement, with permis- and Sons; Table 3.6 reprinted with permission from How sion from Saab USA and Saab AB; Figure 11.3 adapted to court various target markets, Marketing News, published from Selecting celebrity endorsers: The practitioner’s per- by the American Marketing Association, Barlow, R. G., spective, Journal of Advertising Research, May/June, p. 46 9 October 2002, p. 22; Table 4.8 reprinted with permis- (Zafer Erdogan, B., Baker, M. J. and Tagg, S. 2001), with sion from Decision making and coping of functionally permission from Warc; Figure 11.6 adapted from Strate- illiterate consumers and some implications for marketing gies for influencing parental decisions on food purchas- management, Journal of Marketing, published by the ing, Journal of Consumer Marketing, 21, 2, p. 135 (Marquis, American Marketing Association, Viswanathan, M., Rosa, M. 2004), © Emerald Group Publishing Limited all rights J. A., Harris, J. E., 69, January 2005, p. 25; Table 4.10 reserved; Figure 11.7 adapted from A modern-sized fam- adapted from Gift giving in Hong Kong and the contin- ily life cycle, Journal of Consumer Research, 6 June, p. 17 uum of social ties, Journal of Consumer Research, 28, 2, (Murphy, P. E. and Staples, W. A. 1979), Copyright © September, p. 244 (Joy, A. 2001), Copyright © 2001, JCR, 1979, JCR, Inc; Figure 13.1 adapted from Culture and Inc; Table 4.11 adapted from The role of mothers as gift consumption: A theoretical account of the structure and givers: A comparison across three cultures, Advances in movement of the cultural meaning of consumer goods, Consumer Research, 23, edited by Kim P. Corfman and Journal of Consumer Research, 13, June, p. 72 (McCracken, John G. Lynch, Jr., p. 26 (Hill, C. and Romm, C. T. 1996), G. 1986), Copyright © 1986, JCR, Inc; Figure 13.4 from reproduced with permission of Association for Consumer Unilever Bestfoods advertisement, reproduced with kind Research; permission conveyed through Copyright Clear- permission of Unilever [from an original in Unilever ance Center, Inc; Table 4.12 adapted from To me from Archives]; Figure 14.2a from British Airways advertise- me: A descriptive phenomenology for self-gifts, Advances ment - Don’t sit up all night before important meetings. in Consumer Research, 23, edited by Marvin E. Goldberg, © British Airways, reprinted with permission from Brit- Gerald Gorn and Richard W. Pollay, pp. 677-82 (Mick, D. ish Airways Plc; Figure 15.6 reprinted with permission G. and DeMoss, M. 1990), reproduced with permission from Riding the saddle: How cross-market communica- of Association for Consumer Research; permission con- tions can create a major slump in sales, Journal of Market- veyed through Copyright Clearance Center, Inc; Table 6.1 ing, published by the American Marketing Association, adapted from What Flavour is Your Personality? Discover Goldenberg, J., Libai, B. and Muller, E., 66, April 2002, Who You Are by Looking at What You Eat, Sourcebooks p. 5; Figure 15.9 from adidas ‘Be first’ advertisement. adi- (Hirsch, A. 2001), with permission from Dr. Alan Hirsch; das, the adidas 3-Bars logo and FOREVER SPORT are Table 6.2 adapted from Consumer innovativeness: Con- registered trademarks of the adidas group, used with cepts and measurements, Journal of Business Research, 57, permission. 6, June, p. 674 (Roehrich, G. 2004), Copyright 2004, with A00_HANS6950_01_SE_FM.indd xvii 8/24/11 3:02 PM  xviii ACKNOWLEDGEMENTS permission from Elsevier; Table 6.3 adapted from Con- through Copyright Clearance Center, Inc; Table 8.4 sumers’ need for uniqueness: Scale development and reprinted with permission from Whence brand loyalty?, validation, Journal of Consumer Research, 28, June, pp. Journal of Marketing, published by the American Market- 50-66 (Tepper Tian, K., Bearden, W. O., Hunter, G. L. ing Association, Oliver, R. L., 63, 1999, pp. 33-44; Table 2001), Copyright © 2001, JCR, Inc; Table 6.4 adapted 8.5 reprinted by permission from Macmillan Publishers from A consumer values orientation for materialism and Ltd:, Journal of Brand Management, January, A comparison its measurement: Scale development and validation, Jour- of attitudinal loyalty measurement approaches, pp. 193- nal of Consumer Research, 19, 3, December, p. 310 (Rich- 209 (Bennett, R. and Rundle-Thiele, S. 2002), copyright ins, M. L. and Dawson, S. 1992), Copyright © 1992, JCR, 2002, published by Palgrave Macmillan; Table 9.6 Inc; Table 6.6 reprinted with permission from Consumer reprinted by permission from Macmillan Publishers Ltd:, ethnocentrism: Construction and validation of the CETS- Corporate Reputation Review, 7, 1 October, From actions to CALE, Journal of Marketing Research, published by the impressions: Cognitive attribution theory and the forma- American Marketing Association, Shimp, T. A. and tion of corporate reputation, p. 277 (Sjovall, A. M. and Sharma, S., 24, August 1987, p. 282; Table 6.7 adapted Talk, A. C. 2004), copyright 2004, published by Palgrave from Does ‘Made in...’ matter to consumers? A Malaysian Macmillan; Table 11.4 adapted from A cross-national study of country of origin effect, Multinational Business study on children’s purchasing behaviour and parental Review, Fall, p. 73 (Mohamad, O., Ahmed, Z. U., Honey- response, Journal of Consumer Marketing, 21, 4, p. 276 cutt, Jr., E. D. and Tyebkhan, T. H. 2000), with permission (Wimalasiri, J. S. 2004), © Emerald Group Publishing from Emerald Group Publishing Ltd; Table 6.8 adapted Limited all rights reserved; Table 11.5 adapted from The from Colour schemes, New York Magazine, 2 April, pp. influence of children on purchases: the development of 22-3 (Kanner, B. 1989), Bernice Kanner/New York Maga- measures for gender role orientation and shopping savvy, zine, New York Media; Table 6.10 reprinted with permis- International Journal of Market Research, 47, 1, p. 22 (Tin- sion from Managing images in different cultures: A cross- son, J. and Nancarrow, C. 2005), with permission from national study of colour meanings and preferences, Warc; Table 11.6 adapted from Children’s influence on Journal of International Marketing, published by the Ameri- family decision making: A restaurant study, Journal of can Marketing Association, Madden, T. J., Hewett, K. and Business Research, 54, 2, November, p. 175 (Labrecque, J. Roth, M. S., 8, 4, 2000, p. 95; Table 6.11 adapted from and Ricard, L. 2001), Copyright 2001, with permission Peak experiences and mountain biking: Incorporating the from Elsevier; Table 13.5 reprinted with permission from bike in the extended self, Advances in Consumer Research, Getting to know Y: The consumption behaviours of a new 1996 (Dodson, K. J. 1996), reproduced with permission cohort, 2000 AMA Winter Educators’ Conference, Marketing of Association for Consumer Research; permission con- Theory, Conference Proceedings, published by the American veyed through Copyright Clearance Center, Inc; Table Marketing Association, Noble, S. M. and Noble, C. H.,11, 6.12 adapted from Trait aspects of vanity: Measurement p. 294; Table 13.6 adapted from The value orientation of and relevance to consumer behaviour, Journal of Consumer new-age elderly: The coming of an ageless market, Journal Research, 21, March, p. 624 (Netemeyer, R. G., Burton, S. of Business Research, 22, 2, March, pp. 187-94 (Schiffman, and Lichtenstein, D. R. 1995), Copyright © 1995, JCR, L. G. and Sherman, E. 1991), Copyright 2001, with per- Inc; Table 7.1 adapted from Capture and communicate mission from Elsevier; Table 13.7 reprinted with permis- value in the pricing of services, MIT Sloan Management sion from Men and women online: What makes them Review, Summer, pp. 41-51 (Berry, L. L., Manjit, Y. S. click, Marketing Research, published by the American Mar- 1996), © 1996 from MIT Sloan Management Review/Mas- keting Association, Smith, S. M. and Whitlark, D. B., 13, sachusetts Institute of Technology. All rights reserved. 2, Summer 2001, p. 23; Table 14.5 adapted from How to Distributed by Tribune Media Services; Table 7.2 adapted turn national European brands into Pan-European from Beyond reference price: Understanding consumers’ Brands, Working Paper, Hagan School of Business, Iona encounters with unexpected prices, Journal of Product and College, New Rochelle, NY, with permission from George Brand Management, 12, 3, p. 141 (Lindsey-Mulliken, J. V. Priovolos, PhD; Table 15.2 adapted from Surrogate 2003), © Emerald Group Publishing Limited all rights buyers and the new product adoption process: A concep- reserved; Table 8.3 adapted from A revised product tualization and managerial framework, Journal of Con- involvement inventory: Improved usability and validity, sumer Marketing, 14, 5, p. 394 (Aggarwal, P. and Cha, T. Diversity in Consumer Behaviour: Advances in Consumer 1997), © Emerald Group Publishing Limited all rights Research, Vol. 19, pp. 108-115 (McQuarrie, E. F. and Mun- reserved; Table 15.3 from Price perceptions and con- son, J. M. 1992), reproduced with permission of Associa- sumer shopping behaviour: A field study, Journal of Mar- tion for Consumer Research; permission conveyed keting Research, 30 (May), pp. 234-245 (Lichtenstein, D. A00_HANS6950_01_SE_FM.indd xviii 8/24/11 3:02 PM  ACKNOWLEDGEMENTS xix R., Ridgway, N. M., Netemeyer, R. G. 1993), used with the Corbis: © Swim Ink 2, LLC / CORBIS 172; Image cour- permission of American Marketing Association; permis- tesy of The Advertising Archives: 112, 113, 114, 117, 143, sion conveyed through Copyright Clearance Center, Inc. 172, 215l, 215r, 248, 249, 251, 270, 305, 346. Every effort has been made to trace the copyright hold- Photos ers and we apologise in advance for any unintentional The publisher would like to thank the following for omissions. We would be pleased to insert the appropri- their kind permission to reproduce their photographs: ate acknowledgement in any subsequent edition of this publication. (Key: b-bottom; c-centre; l-left; r-right; t-top) A00_HANS6950_01_SE_FM.indd xix 8/24/11 3:02 PM A00_HANS6950_01_SE_FM.indd xx 8/24/11 3:02 PM  PART 1 INTRODUCTION PART 1 PROVIDES THE BACKGROUND AND THE TOOLS FOR