Consumer Behavior: Buying, Having, and Being (13th Edition) PDF

 Engage, Assess, Apply and Develop Employability Skills with MyLab Marketing MyLabTM Marketing is an online homework, tutorial, and assessment program constructed to work with this text to engage students and improve results. It was designed to help stu-...

 Engage, Assess, Apply and Develop Employability Skills with MyLab Marketing MyLabTM Marketing is an online homework, tutorial, and assessment program constructed to work with this text to engage students and improve results. It was designed to help stu- dents develop and assess the skills and applicable knowledge that they will need to succeed in their courses and their future careers. 86% See what more than 25,000 students had to say about MyLab Marketing: of students said MyLab “The interactive assignments on MyMarket lab were Marketing helped them always very interesting. It helped in understanding how to apply the concepts in the readings, to real world earn higher grades on situations.” homework, exams, — Student, University of California Irvine or the course *Source: 2017 Student Survey, n 2361 Mini Sims* put students in professional roles and give them the opportunity to apply course concepts and develop decision- making skills through real-world business challenges. “The simulations really helped me think as a marketer would in those spe- cific situations.” — Student, Fordham University *Available with select titles CVR_SOLO5691_13_SE_IC.indd 1 02/11/2018 20:54  Engaging Videos explore a variety of business topics related to the theory students are learning in class. Exercise Quizzes assess students’ comprehension of the concepts in each video. 92% 92% 92% Dynamic Study Modules use the latest ­developments in cognitive science and help ­students study chapter topics by adapting to their performance in real time. eText Study Plan Dynamic Study Modules % of students who found learning aid helpful Pearson eText enhances student learning with engaging and interactive lecture and example videos that bring learning to life. The Gradebook offers an easy way for you 89% and your students to see their performance of students would tell their in your course. instructor to keep using MyLab Marketing For additional details visit: www.pearson.com/mylab/marketing CVR_SOLO5691_13_SE_IC.indd 2 02/11/2018 20:54 Consumer Behavior Buying, Having, and Being Thirteenth Edition Michael R. Solomon Saint Joseph’s University Vice President, Business, Economics, and UK Courseware: Managing Producer, Digital Studio and GLP: James Bateman Donna Battista Managing Producer, Digital Studio: Diane Lombardo Director of Portfolio Management: Stephanie Wall Digital Studio Producer: Monique Lawrence Executive Portfolio Manager: Lynn M. Huddon Digital Studio Producer: Alana Coles Editorial Assistant: Rachel Chou Full Service Project Management: Heidi Aguiar, Pearson CSC Vice President, Product Marketing: Roxanne McCarley Interior Design: Pearson CSC Senior Product Marketer: Becky Brown Cover Design: Pearson CSC Product Marketing Assistant: Marianela Silvestri Cover Art: Thomas Herzberg Manager of Field Marketing, Business Publishing: Adam Goldstein Cover Credits: Dominos, Courtesy of Domino’s Pizza Inc.; Mountain Field Marketing Manager: Nicole Price Dew, Mountain Dew is a registered trademark of PepsiCo, Inc. Used with Vice President, Production and Digital Studio, Arts and Business: permission.; Mr. Clean, Courtesy of The Procter & Gamble Company; Etain O’Dea Doritos, Provided courtesy of Frito-Lay North America, Inc.; Cheetos, Director, Production and Digital Studio, Business and Economics: Provided courtesy of Frito-Lay North America, Inc.; Foursquare, © Ashley Santora 2015, Foursquare Labs, Inc. All of the Foursquare® logos and trademarks Managing Producer, Business: Melissa Feimer displayed on the cover is the property of Foursquare Labs, Inc.; GLAD, Content Producer: Michelle Zeng GLAD is a registered trademark of The Glad Products Company and is Operations Specialist: Carol Melville used with permission.; Pepsi, Pepsi and the Pepsi Globe are registered Design Lead: Kathryn Foot trademarks of PepsiCo, Inc. Used with permission. 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Copyright © 2020, 2017, 2015 Pearson Education, Inc. 221 River Street, Hoboken, NJ 07030. All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/. Acknowledgments of third-party content appear on the appropriate page within the text. PEARSON, ALWAYS LEARNING, and MYLAB are exclusive trademarks owned by Pearson Education, Inc. or its affiliates in the U.S. and/or other countries. Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship between the owner and Pearson Education, Inc., or its affiliates, authors, licensees, or distributors. Library of Congress Cataloging-in-Publication Data Names: Solomon, Michael R., author. Title: Consumer behavior : buying, having, and being / Michael R. Solomon, Saint Joseph’s University. Description: Thirteen Edition. | Hoboken, NJ : Pearson, | Revised edition of the author’s Consumer behavior, Identifiers: LCCN 2018049249 | ISBN 0135225698 (pbk.) Subjects: LCSH: Consumer behavior. Classification: LCC HF5415.32.S6 2019 | DDC 658.8/342—dc23 LC record available at https://lccn.loc.gov/2018049249 1 18 ISBN 10: 0-13-5225698 ISBN 13: 978-0-13-5225691 BRIEF CONTENTS Section 1 Foundations of Consumer Behavior 3 Chapter 1 Buying, Having, and Being: An Introduction to Consumer Behavior 4 Chapter 2 Consumer Well-Being 33 Section 2 Internal Influences on Consumer Behavior 71 Chapter 3 Perception 72 Chapter 4 Learning and Memory 108 Chapter 5 Motivation and Affect 149 Chapter 6 The Self: Mind, Gender, and Body 180 Chapter 7 Personality, Lifestyles, and Values 228 Section 3 Choosing and Using Products 273 Chapter 8 Attitudes and Persuasive Communications 274 Chapter 9 Decision Making 320 Chapter 10 Buying, Using, and Disposing 354 Section 4 Consumers in Their Social and Cultural Settings 391 Chapter 11 Group Influences and Social Media 392 Chapter 12 Income and Social Class 439 Chapter 13 Subcultures 474 Chapter 14 Culture 513 Appendix I: Careers in Consumer Research 572 Appendix II: Research Methods 574 Appendix III: Sources of Secondary Data 579 Glossary 581 Index 597 iii CONTENTS Major Policy Issues Relevant to Consumer Behavior 44 Section 1 Foundations of Data Privacy and Identity Theft 44 Market Access 46 ­Consumer Behavior 3 Sustainability and Environmental Stewardship 48 The Dark Side of Consumer Behavior 53 Buying, Having, and Being: Consumer Terrorism 53 1 An Introduction to Consumer Addictive Consumption 54 Consumed Consumers 57 Behavior 4 Illegal Acquisition and Product Use 57 Consumer Behavior: People in the Marketplace 5 Chapter Summary 59 What Is Consumer Behavior? 6 Key Terms 59 Consumers’ Impact on Marketing Strategy 8 Review 60 Consumer Behavior Challenge 60 Consumers Are Different! How We Divide Them Up 8 Case Study Marketing Responsibly: Patagonia Redefines User-Generated Content (UGC) 13 What It Means to Be Transparent and Authentic 62 Marketing’s Impact on Consumers 13 Popular Culture Is Marketing Is Popular Culture... 13 All the World’s a Stage 15 Section 1 Data Case: Analyzing the Athletic Shoe What Does It Mean to Consume? 16 Market 67 The Global “Always-On” Consumer 18 The Digital Native: Living a Social [Media] Life 19 Consumer Behavior as a Field of Study 20 Where Do We Find Consumer Researchers? 21 Section 2 Internal Influences on Interdisciplinary Influences on the Study of Consumer Behavior 21 Consumer Behavior 71 Two Perspectives on Consumer Research 23 Consumer Trends: Keep Ahead to Keep Up 25 Taking It from Here: The Plan of the Book 27 3 Perception 72 Chapter Summary 27 Sensation 72 Key Terms 28 Sensory Marketing 74 Review 28 Augmented and Virtual Reality 81 Consumer Behavior Challenge 29 The Stages of Perception 82 Case Study Hey Alexa—What Is Consumer Behavior? 30 Stage 1: Exposure 83 Subliminal Perception 85 Stage 2: Attention 88 2 Consumer Well-Being 33 Personal Selection Factors 90 Stage 3: Interpretation 93 Business Ethics and Consumer Rights 34 Stimulus Organization 94 Needs and Wants: Do Marketers Manipulate Semiotics: The Meaning of Meaning 96 Consumers? 35 Perceptual Positioning 100 Consumers’ Rights and Product Satisfaction 38 Market Regulation 40 Chapter Summary 101 Consumerism 42 Key Terms 102 Corporate Social Responsibility (CSR) 43 Review 102 Transformative Consumer Research 43 Consumer Behavior Challenge 103 Social Marketing 43 Case Study The Brave New World of Subway Advertising 104 iv  Contents v Chapter Summary 172 4 Learning and Memory 108 Key Terms 172 Review 173 Consumer Behavior Challenge 173 How Do We Learn? 108 Case Study The Louis Vuitton $2900 Smartwatch— Behavioral Learning Theories 109 High Tech or High Fashion? It’s All in the Eye of the Marketing Applications of Classical Conditioning Beholder 175 Principles 111 Marketing Applications of Repetition 111 The Self: Mind, Gender, 6 Marketing Applications of Conditioned Product Associations 112 Marketing Applications of Stimulus Generalization 113 and Body 180 Instrumental Conditioning 114 The Self 180 Marketing Applications of Instrumental Conditioning Does the Self Exist? 181 Principles 117 Self-Concept 181 Gamification: The New Frontier for Learning Applications 118 Are We What We Buy? 187 Cognitive Learning Theory 119 The Extended Self 189 Observational Learning 119 Embodied Cognition 191 Is Learning Conscious or Not? 120 Wearable Computing 192 How Do We Learn to Be Consumers? 121 Gender Identity 194 Memory 126 Sex Role Socialization 195 How Our Brains Encode Information 127 Female Sex Roles 197 How Our Memories Store Information 129 Male Sex Roles 199 How We Retrieve Memories When We Decide What to Buy 132 Androgyny 200 What Makes Us Forget? 133 Lesbian, Gay, Bisexual, and Transgender (LGBT) How We Measure Consumers’ Recall of Marketing Consumers 204 Messages 136 Bittersweet Memories: The Marketing Power of The Body as Product 204 Nostalgia 138 Ideals of Beauty 205 Body Decoration and Mutilation 214 Chapter Summary 140 Body Anxiety 215 Key Terms 141 Review 141 Chapter Summary 218 Consumer Behavior Challenge 142 Key Terms 219 Review 219 Case Study Gap Takes Customers Back in Time—to the Consumer Behavior Challenge 220 Nineties! 143 Case Study Retailer Eloquii Believes That Fashion Doesn’t Stop at Size 12 221 5 Motivation and Affect 149 Personality, Lifestyles, and The Motivation Process: Why Ask Why? 149 7 Values 228 Motivational Strength 150 Motivational Direction 151 Personality 229 Motivational Conflicts 153 Consumer Behavior on the Couch: Freudian Theory 229 How We Classify Consumer Needs 155 Neo-Freudian Theories 232 Affect 158 Trait Theory 233 Types of Affective Responses 158 Brand Personality 239 Positive Affect 160 Negative Affect 161 Lifestyles and Consumer Identity 245 How Social Media Tap into Our Emotions 163 Product Complementarity and Co-Branding Strategies 248 Consumer Involvement 164 Psychographics 249 Types of Involvement 165 vi Contents Values 255 Cognitive Decision Making 323 Core Values 256 Steps in the Cognitive Decision-Making How Do Values Link to Consumer Behavior? 260 Process 324 Neuromarketing 330 Chapter Summary 263 Online Decision Making 331 Key Terms 263 How Do We Put Products into Categories? 333 Review 264 Consumer Behavior Challenge 264 Habitual Decision Making 339 Heuristics: Mental Shortcuts 339 Case Study Beyoncé’s Beyhive—Honeybees and Killer AI: Who’s Calling the Shots? 342 Bees in Love with Their Queen 265 Priming and Nudging 343 Section 2 Data Case: Evolving Trends in Fitness and Chapter Summary 345 French Fries 270 Key Terms 346 Review 346 Consumer Behavior Challenge 347 Case Study P&G and the Moments of Truth—Just How Section 3 Choosing and Using Many Moments Are There? 349 Products 273 Buying, Using, and Attitudes and Persuasive 10 Disposing 354 8 Communications 274 Situational Effects on Consumer Behavior 355 The Consumption Situation 355 The Power of Attitudes 275 The ABC Model of Attitudes 276 The Shopping Experience 359 Mood 360 How Do We Form Attitudes? 279 When the Going Gets Tough, the Tough Go Attitude Models 285 Shopping 361 Do Attitudes Predict Behavior? 288 E-Commerce: Clicks versus Bricks 363 Persuasion: How Do Marketers Change Attitudes? 292 Digital currency 365 Decisions, Decisions: Tactical Communications Options 293 Retailing As Theater 366 The Elements of Communication 293 Store Image 367 The Source 295 In-Store Decision Making 368 The Message 299 Spontaneous Shopping 369 New Message Formats: The Social Media Revolution 303 The Salesperson: A Lead Role in the Play 371 Types of Message Appeals 306 Ownership and the Sharing Economy 371 The Source Versus the Message: Do We Sell the Steak or the Sizzle? 309 Postpurchase Satisfaction and Disposal 372 Postpurchase Satisfaction 373 Chapter Summary 311 Product Disposal 373 Key Terms 311 Recycling and the Underground Economy 375 Review 312 Consumer Behavior Challenge 313 Chapter Summary 376 Key Terms 377 Case Study Anti-Smoking Advertising—Can You Be Scared Reviews 378 into Quitting? 314 Consumer Behavior Challenge 378 Case Study RH—Revolutionizing Physical 9 Decision Making 320 Retailing 380 What’s Your Problem? 321 Hyperchoice: Too Much of a Good Thing! 321 Section 3 Data Case: Cats, Kibble, and Cable TV 386 Self-Regulation 322  Contents vii Status Symbols and Social Capital 454 Section 4 Consumers in Their Status Symbols 454 “What Do You Use That Fork For?” Taste Cultures and Social and Cultural Settings 391 Codes 454 Social Class Around the World 459 Status Signaling 463 Group Influences and Social 11 Media 392 Chapter Summary 466 Key Terms 467 Review 467 Groups 393 Consumer Behavior Challenge 468 Social Power 394 Reference Group 395 Case Study Success at the Bottom of the Pyramid? Conformity 397 Unilever & P&G Show It’s Possible 469 Brand Communities 399 Collective Decision Making: How Groups Influence What We Buy 400 13 Subcultures 474 B2B Decision Making 400 Ethnic and Racial Subcultures 475 The Intimate Corporation: Family Decision Subcultural Stereotypes 475 Making 405 Ethnicity and Acculturation 476 How Families Decide 406 The “Big Three” American Ethnic Subcultures 479 Word-of-Mouth Communication 410 Religious Subcultures 483 Buzz Building 411 Organized Religion and Consumption 485 Negative WOM 412 Born Again Consumers 486 Opinion Leadership 412 Islamic Marketing 487 How Influential Is an Opinion Leader? 414 The Family Unit and Age Subcultures 488 Types of Opinion Leaders 415 Family Structure 488 How Do We Find Opinion Leaders? 416 Age Cohort 491 Social Media: The Horizontal Revolution 419 Place-Based Subcultures 501 Online Social Networks and Brand Communities 421 Social Games 424 Chapter Summary 503 Digital Word-of-Mouth 425 Key Terms 504 Review 504 Chapter Summary 428 Consumer Behavior Challenge 504 Key Terms 429 Case Study Toyota’s Multicultural Ad Campaign— Review 430 Same Car, But ­Different Ads for Different Consumer Behavior Challenge 430 Ethnic Groups 507 Case Study Never Stay Here! The Power of Negative Online Reviews 433 14 Cultures 513 12 Income and Social Cultural Systems 514 Class 439 Dimensions of Culture 514 The Yin and Yang of Marketing and Culture 515 Income and Consumer Identity 440 Cultural Movement 516 To Spend or Not to Spend, That Is the Question 440 High and Low Culture 519 Income-Based Marketing 444 Cultural Formulae 520 Social Class and Consumer Identity 448 Cultural Stories and Ceremonies 521 Pick a Pecking Order 449 Myths 521 How Do We Measure Social Class? 452 Rituals 523 viii Contents Gift-Giving Ritual 528 Holiday Rituals 530 Sacred and Profane Consumption 533 Sacralization 534 Domains of Sacred Consumption 535 From Sacred to Profane, and Back Again 537 The Diffusion of Innovations 538 How Do We Decide to Adopt an Innovation? 539 Behavioral Demands of Innovations 540 What Determines If an Innovation Will Diffuse? 542 The Fashion System 543 Behavioral Science Perspectives on Fashion 544 Cycles of Fashion Adoption 548 Global Consumer Culture 549 It’s a BRAND-New World 550 Does Global Marketing Work? 555 Chapter Summary 557 Key Terms 558 Review 559 Consumer Behavior Challenge 559 Case Study Twist, Lick, and Dunk! Does it Make Oreos Taste Better? 561 Section 4 Data Case: Going Global with Juice 568 Appendix I: Careers in Consumer Research 572 Appendix II: Research Methods 574 Appendix III: Sources of Secondary Data 579 Glossary 581 Index 597 PREFACE For many years, this course was called Buyer Behavior rather than Consumer Behavior. What’s in a name? In this case, a lot—the word “buyer” reflected a singu- lar focus on buyer/seller transactions. This book played a significant role in broad- ening that focus to the larger sphere of consumption. That includes what happens before, during, and after the point of purchase. Hence the suffix that defines the title: Buying, Having, and Being. The book also was the first to provide a much more interdisciplinary and com- prehensive look at the discipline. It continues to incorporate a variety of social science perspectives. Students appreciate the broader context and the emphasis on cultural dynamics that influence (often in unseen ways) the consumption experi- ences they have every day. It reflects my strong endorsement of the social psycholo- gist Kurt Lewin’s maxim: “There is nothing as practical as a good theory.” If you don’t believe it, that saying is even in my email signature (email me at msolom01@ sju.edu and I’ll prove it to you). The book marries a strong theoretical and empirical foundation with the practi- cal applications of these insights to the everyday practice of marketing. Thoughtful discussion and applications questions at the end of each chapter also encourage stu- dents to integrate what they have learned with what is going on around them in the real world. But here’s the important question: “How is this book different from other Con- sumer Behavior texts?” Let me count the ways... What’s New and Notable in This Edition 1. It includes a mix of academic and industry research to show students that “there’s nothing as practical as a good theory.” Academics understand the value of a rigorous theoretical framework Section 1 and that many of the fleeting “fads” we observe in consumer behavior Analyzing the Athletic Shoe Market actually reflect underlying and stable internal and external phenom- Background You are the marketing analyst for an online athletic shoe by your company to make some recommendations for future marketing tactics. ena. Yesterday’s “Mouseketeers” are today’s Beyhive (Beyoncé’s store. To date, your company has done little formal marketing research about athletic shoe buyers in the United States. Using the 2017 Spring GfK MRI data, you recently ran a series of The Data You can interpret the data in the following manner: devoted fan club). The book cites hundreds of academic articles. In reports about the shoe-buying habits of several U.S. consumer Market Segment Size (000s): The total number of U.S. adults segments. At this time, you have decided to focus on the five that meet the criteria for the segment (regardless of whether best-selling shoe brands on your website: Adidas, Asics, Nike, they did or did not buy a particular shoe brand) Market Segment Size (%): The same as Market Segment addition, MyLab Marketing offers brief essays on consumer behavior New Balance, and Reebok. After looking through the GfK MRI Size (000s), but presented as a percentage of all U.S. Adults. data report options, you decided that the most fitting question Estimated Count (000s): The estimated number of for your purposes was “Did you buy [SHOE BRAND] in the last U.S. adults within the segment who bought that particular research by professors who relate the work they do to chapter topics. 12 months?” pair of shoes at least once in the last 12 months. The report is designed to compare the shoe-buying habits Percentage of Total: Among all U.S. adults who bought of consumers across several different consumer characteris- a particular brand of shoes in the last 12 months, the tics: gender, age, and internet use. In addition, you also cre- There are 38 of these “CB As I See It” contributions, including 11 percentage of them who belong to that particular segment. ated three subsegment schemes that combined two different Percentage within market segment who bought in last year: segmentation variables: Gender and Age (men 18–34 and The percentage of people within a particular segment who women 18–34) and Internet Use and Age (heavy internet users bought the shoe brand within the last 12 months that are new to this edition. 18–34 years old). Index: The likelihood of a member of the segment to have bought the particular shoe brand in the last 12 months, Your Goal indexed to the likelihood of an average U.S. adult (the As valuable as I believe academic research to be (and I’ve U.S. average equals an index value of 100). Thus, an index First, review the data from the 2017 GfK MRI. You will use this value of 120 can be interpreted as members of that seg- information to make some inferences about the brand prefer- ment being 20 percent more likely than the national aver- ences of the different segments. You will combine the informa- age to have bought a particular brand of shoes in the last published my share of it), I believe it’s vital to complement this tion in the GfK MRI with some financial assumptions provided 12 months. work with industry data. Thus you’ll find a large number of stud- Internet Adults 18–34 Adults Men Women 1 (Heavy and Heavy Total Men Women 18–34 18–34 18–34 Users) Internet ies that companies and survey firms have conducted to support the Market Segment Size (000s) 245,907 118,605 127,302 74,034 37,020 37,014 49,147 23,632 Market Segment Size (%) 100 48.2 51.8 30.1 15.1 15.1 9.6 academic data. This edition also includes updated end-of-section ADIDAS Estimated Count (000s) 18,845 10,350 8,495 8,493 4,566 3,926 4,910 2,998 % of Total 100 54.92 45.08 24.23 20.83 26.06 15.91 assignments with data provided by GfK, one of the world’s larg- % within Mkt. Seg. who bought last year Index 7.66 100 8.73 114 6.67 87 11.47 150 12.33 161 10.61 138 9.99 130 12.68 est marketing research firms. These allow students to “get their ASICS Estimated Count (000s) 11,135 4,712 6,424 2,909 1,093 1,817 2,070 804 % of Total 100 42.31 57.69 26.13 9.81 16.31 18.59 7.22 hands dirty” by actually working with real information that they % within Mkt. Seg. who bought last year Index 4.53 100 3.97 88 111 3.93 87 2.95 87 4.91 108 4.21 93 3.40 75 can manipulate and use to do a deep dive into real world problems. (Continued ) M02_SOLO5691_13_SE_C02.indd 66 24/10/18 1:04 PM ix x Preface Hey, I get the need to marry theory and data. As a regular contributor to Forbes.com, I’m challenged each and every week to identify important develop- ments in today’s fast-moving business world and explain to thousands of readers why these relate to what we know about consumer behavior. And last but not least, you’ll find a new ­Appendix on Research Methods to Study Consumer Appendix Behavior. This section summarizes an array of II Research Methods methodologies to help students understand that there is more than one way to approach a chal- lenging problem. The Appendix shows how a marketer with a specific problem might employ each technique to better understand his or her As we saw in Chapter 1 (see especially Table 1.1), there Department of On Deck, a small company that makes skate- customers. are many approaches to studying consumer behavior. They range from one-on-one intensive interviews to sophisticated board decks and a limited amount of skate gear. Actually, Brittany is the Marketing Department! Her college friend Cody 2. It expands its prior focus on “participatory analyses of “Big Data” that may involve (literally) millions of observations. If you are a marketing major, the odds are started On Deck in his basement when a sophomore, and now he’s sold enough merch to actually move into a converted ware- marketing.” In my opinion the single biggest quite good that you will take a separate course on marketing research. So for now, we’ll only briefly review some of the house near Laguna Beach. That’s because his designs caught the attention of an “angel investor” who pumped enough transformation in consumer behavior today is many methodologies available to researchers. Remember that information we collect for our own money into the business to give it a good kick start. A staff of five guys (all fraternity brothers of Cody’s) make the decks, and the extent to which everyday people actually use is called primary data, while information that others collect (and we use or purchase) is called secondary data. Cody designs the hats, hoodies, and shirts that then get made in China. Brittany’s task is to understand the skateboard market participate to create and promote the products For example, if your professor assigns you to interview friends and family members on their thoughts about snack and help Cody to grow the business with a limited research budget. She needs to get a handle on how potential customers and services they use as we all become absorbed food brands (or snacking in general), you are collecting primary data. If on the other hand he or she? assigns you to think about the emerging On Deck brand, and understand how “wood pushers” choose one board over others. into the “Internet of Things.” This added cover- analyze the information the GfK marketing research firm kindly provided at several places in this text, you are using age starts in Chapter 1, where I have added a Qualitative Methods secondary data that was collected by someone else. In this section we’re going to focus on different types of primary Brittany will probably want to start with some quick-and- new section on this topic. The book emphasizes data. Appendix III provides more information about some sources of secondary data that many companies also use. dirty projects that will start to give her some insights into skateboarding culture such as these: the positive aspects (e.g., co-creation) and the We’ll roughly divide these approaches into qualitative and quantitative approaches. Keep in mind that in most cases qual- Interview: A one-on-one discussion where the inter- viewer asks a respondent detailed questions about their pur- not-so-positive aspects (e.g., chipping, biohack- itative research intends to probe for insights and hopefully to identify the “deep meanings” that explain why people choose ing) chase decisions of and this product use.revolution. As always, I apply a somewhat critical eye to new devel- Brittany can go to a skate park and strike up conversa- some products over others, or how they use these products (or services) in their daily lives. These insights don’t necessarily opments tions with the people there.andShe maytake offer eachcare person some kind of incentive to talk to her, such as a discount coupon to highlight the huge ethical quandaries some of these apply to everyone in a target market, but they provide a solid for On“advances” Deck products. She will poseprobably to want our civilization to record in addition to the exciting opportunities they foundation that quantitative approaches may later comple- (audio or video) these conversations—with the permission ment or that may try to probe for whether X causes Y (for example, do shoppers buy more French wine in a liquor store create of the respondents—so for marketers she can who consult the interviews This will help her to recall what they said, but also to look later.are savvy enough to jump on them. Quite frankly, I just when French music is playing in the background?). In other cases, these studies try to describe a bigger phenomenon, such haven’t for possible nonverbal seen cues such competing titles that begin to capture many of the amazing disruptions as fidgeting or other body language that may indicate whether respondents have any as what many consumers are posting online about the latest brand introduction, or whether Americans’ attitudes toward problemswe’re witnessing in the real world. with parts of the conversations. This is a great way to gain some initial understand- green marketing have changed in the last five years. ing, and the ability to probe for additional responses can To put these approaches into perspective, meet Brittany. She is 23 years old, and she recently graduated college with 3. It’s up-to-date and relevant to students’ lives. I actually teach this course every provide insights more formal methods can’t. But, these interviews are very subjective and what people say can dif- a degree in marketing. Brittany landed a job in the Marketing semester, so I know firsthand that we are all challenged to show students why these fer based upon many factors such as the gender and age of 574 important concepts are so relevant to them NOW and tomorrow. To them, an exam- ple from, say, 2013, should pop up in a course on Ancient History. We need to wake up these students! I strive to write the book in a conversational Z01_SOLO5691_13_SE_APP.indd 574 tone and to minimize jargon. And, you’ll find some humor thrown in that I don’t 20/10/18 9:40 AM believe other books offer (of course, everyone’s definition of humor is subjective, but at least I get a kick out of some of it). There is also an Appendix on Careers in Consumer Behavior that shows students how they can actually land a job in this fascinating discipline. You deserve teaching materials that meet your own high standards for your course. That’s why we partner with highly respected authors to develop interactive content and course-specific resources that you can trust—and that keep your stu- dents engaged. With the 13th edition of Consumer Behavior, we’ve added brand new assignments to the MyLab.  Preface xi New Mini Sims developed for the Consumer Behav- ior course put students in professional roles and give them the opportunity to apply course concepts and develop decision-making skills through real-world busi- ness challenges. The simulations use each student’s decisions to cre- ate various scenario paths that help them understand the impact their decisions can have on an organization. New Dynamic Study Modules use the latest dev­ elopments in cognitive science and help students study chapter topics by adapting to their performance in real time. New CB As I See It sections in MyLab Marketing feature prominent consumer behavior researchers who share their current work with students. These short essays are accompanied by open-ended discussion questions to get students thinking about how the research relates to what they’ve just learned in the chapter. Wait, I haven’t convinced you that the book’s contents are current? Here’s a ­partial list of new key terms I have included in the 13th edition: Internet of Things Brand Resonance Robot Companions Buyer Personas Machine Learning Decluttering M2M (machine to machine Minimalism communication) Paid Influencer Programs Autonomous vehicles Fake News AI (Artificial intelligence) Astroturfing Mindfulness Ethnocentrism Cellphone Zombie Social scoring Emoji Authenticity The Google Effect Agile Marketing Subscription Boxes Scrum Biohackers Blockchain Thinspiration Content marketing Gender Binarism Sneakerheads xii Preface Instructor Teaching Resource This edition’s program comes with the following teaching resources. Supplements available to instructors at www.pearsonhighered.com Features of the Supplement Instructor’s Manual Chapter-by-chapter summaries Examples and activities not in the main book authored by Kate Pounders from Teaching outlines The University of Texas at Austin Teaching tips Solutions to all questions and problems in the book Test Bank 4,000 multiple-choice, true/false, short-answer, and graphing questions with these annotations: authored by John Capela from St. Joseph’s College Difficulty level (1 for straight recall, 2 for some analysis, 3 for complex analysis) Type (Multiple-choice, true/false, short-answer, essay) Topic (The term or concept the question supports) Learning outcome AACSB learning standard (Written and Oral Communication; Ethical Understanding and Reasoning; Analytical Thinking; Information Technology; Interpersonal Relations and Teamwork; Diverse and Multicultural Work; Reflective Thinking; Application of Knowledge) Computerized TestGen TestGen allows instructors to: Customize, save, and generate classroom tests Edit, add, or delete questions from the Test Item Files Analyze test results Organize a database of tests and student results. PowerPoints Slides include all the graphs, tables, and equations in the textbook. authored by Darci Wagner from Ohio University PowerPoints meet accessibility standards for students with disabilities. Features include, but are not limited to: Keyboard and Screen Reader access Alternative text for images High color contrast between background and foreground colors ACKNOWLEDGMENTS Thanks for the tremendous support I receive from my Pearson team including (in alphabetical order) Becky Brown, Lynn Huddon, Nicole Price, Stephanie Wall, and Michelle Zeng; as well as other production team members Heidi Aguiar, Clara Bartunek, Katie Costello, Maya Lane, and Dana Weightman. George Allen at Asbury University wrote some amazing new cases, and Christy Ashley at the University of Rhode Island made thoughtful updates to the end of section data assignments. A s­ pecial thanks to Ekin Ok, a doctoral student at the University of British Columbia, who helped me to identify and understand the current research literature. The guidance and recommendations of the following instructors helped me revise the content and features of this text. I am grateful for their reviews and truly believe that their feedback was indispensable: Sucheta Ahlawat, Kean University Patrick Coyle, Lycoming College Donna DeVault, Fayetteville Technical Community College Richard Feinberg, Purdue University Judy Ungar Franks, Northwestern University Albert N. Greco, Fordham University Mark E. Hill, Montclair State University Virginie Khare, Eckerd College Heather Kirkwood, SUNY-Farmingdale State College Debbie Laverie, Texas Tech University Yun Jung Lee, Adelphi University Robert S. Moore, Mississippi State University Eric Newman, California State University SB–Palm Desert Campus Jaime Noriega, DePaul University Kristen Regine, Johnson & Wales University Scot Squires, Central Michigan University Sarah M. Shepler, Ivy Tech Community College Shiri D. Vivek, Associate Professor, Eastern Michigan University Michelle F. Weinberger, Northwestern University – Michael R. Solomon  xiii ABOUT THE AUTHOR Michael R. Solomon, Ph.D., is Professor of Marketing in the Haub School of Business at Saint Joseph’s University in Philadelphia. Before joining the Saint Joseph’s faculty in the fall of 2006, he was the Human Sciences Professor of Consumer Behavior at Auburn University. Before moving to Auburn in 1995, he was chair of the Department of Marketing in the School of Business at Rutgers University, New Brunswick, New Jersey. Professor Solomon began his academic career in the Graduate School of Business Administration at New York University (NYU), where he also served as Associate Director of NYU’s Institute of Retail Management. He earned his B.A. degrees in psychology and sociology magna cum laude at Brandeis University and a Ph.D. in social psychology at the University of North Carolina at Chapel Hill. In 1996 he was awarded the Fulbright/FLAD Chair in Market Globalization by the U.S. Fulbright Commission and the Government of Portugal, and he served as Distinguished Lecturer in Marketing at the Technical University of Lisbon. He held an appointment as Professor of Consumer Behaviour at the University of Manchester (United Kingdom) from 2007 to 2013. Professor Solomon’s primary research interests include consumer behavior and lifestyle issues; branding strategy; the symbolic aspects of products; the psychology of fashion, decoration, and image; services marketing; marketing in virtual worlds; and the development of visually oriented online research methodologies. He has published numerous articles on these and related topics in academic journals, and he has deliv- ered invited lectures on these subjects in Europe, Australia, Asia, and Latin America. His research has been funded by the American Academy of Advertising, the American Marketing Association, the U.S. Department of Agriculture, the International Council of Shopping Centers, and the U.S. Department of Commerce. He currently sits on the editorial or advisory boards of The Journal of Consumer Behaviour, Journal of Marketing Theory and Practice, Critical Studies in Fashion and Beauty, and Journal for Advancement of Marketing Education, and he served an elected six-year term on the Board of Governors of the Academy of Marketing Science. Professor Solomon has been recognized as one of the 15 most widely cited scholars in the academic behav- ioral sciences/fashion literature, and as one of the 10 most productive scholars in the field of advertising and marketing communications. Professor Solomon is a frequent contributor to mass media. His feature articles have appeared in such magazines as Psychology Today, Gentleman’s Quarterly, and Savvy. He has been quoted in numerous national magazines and newspapers, including Advertising Age, Adweek, Allure, Elle, Glamour, Mademoiselle, Mirabella, Newsweek, the New York Times, Self, Time, USA Today, and the Wall Street Journal. He frequently appears on television and speaks on radio to comment on consumer behavior issues, including appearances on The Today Show, Good Morning America, Inside Edition, Newsweek on the Air, the Entrepreneur Sales and Marketing Show, CNBC, Channel One, the Wall Street Journal Radio Network, the WOR Radio Network, and National Public Radio. He acts as consultant to numerous companies on consumer behavior and marketing strategy issues and often speaks to business groups throughout the United States and overseas. In addition to this text, Professor Solomon is coauthor of the widely used textbook Marketing: Real People, Real Choices. He has three children, Amanda, Zachary, and Alexandra; a son-in-law, Orly; and three granddaughters, Rose, Evey, and Arya. He lives in Philadelphia with his wife Gail and their “other child,” a pug named Kelbie Rae. xiv  This page intentionally left blank A01_THOM6233_05_SE_WALK.indd 9 1/13/17 6:50 PM  Section 1 Foundations of Consumer Behavior This introductory section provides an overview of the field of consumer behavior (CB). In Chapter 1, we look at how consumers influence the field of marketing and at how marketers influence us. We describe the discipline of consumer behavior and some of the different ap- proaches to understanding what makes consumers tick. In Chapter 2, we’ll look at the broad issue of well-being, at both the positive and negative ways the products we use affect us, and we’ll also focus on the central role of ethics in marketing decisions. M01B_SOLO5691_13_SE_C01.xhtmlM02_ Chapters Ahead Chapter 1 Chapter 2 SOLO5691_13_ Buying, Having, and Being: Consumer and Social An Introduction to Consumer Well-Being SE_C02.xhtml Behavior 3  1 Buying, Having, and Being: An Introduction to Consumer Behavior CHAPTER OBJECTIVES When you finish reading this chapter you will understand why: 1-1 Consumer behavior is a process. 1-5 T  echnology and culture create a new “always-on” consumer. 1-2 M  arketers have to understand the wants and needs of different consumer segments. 1-6 M  any types of specialists study consumer behavior. 1-3 O  ur choices as consumers relate in powerful ways to the rest of our lives. 1-7 T  here are differing perspectives regarding how and what we should understand about consumer 1-4 O  ur motivations to consume are complex and behavior. varied. G ail has some time to kill before her accounting class, so she pulls out her trusty iPhone to see what’s going on in her social networks. Between studying for her accounting and marketing exams, she hasn’t checked out anything interesting in days—even her Facebook friends around campus have been quiet. Enough of the serious stuff, she decides. It’s time for some really educational surfing. So, where to go first? Gail goes straight to Pinterest to see if anyone has pinned any new styles on her Shoe-aholic Board. Yes, definitely some new stuff to post for her soror- ity sisters. She flicks over to HerCampus (“a collegiette’s guide to lifeSM”) to get the latest 411 on The Bachelor TV show. She’s just about to jump to Tobi to check out today’s sales when her friend Courtney texts her to check out Kourtney Kardashian’s new CZ initial necklace that’s just been revealed on the Be Monogrammed jewelry blog.1 With her PayPal account, it doesn’t take Gail long to throw the necklace in the digital cart and order it—and to share a photo of her haul on Instagram. Just on a whim, Gail opens the Tinder app on her phone; yes, as usual plenty of guys who want to meet up if she “swipes right.” Not happening with these dweebs—a flurry of left swipes and she’s done.2 As Gail glances at the clock, she realizes she’d better come back to the real world or she’ll miss her exam. Okay, enough time for one quick post before she runs to catch the campus Source: arek_malang/Shutterstock. shuttle: Gail logs on to RateMyProfessors.com and writes a quick but glowing paragraph about how great her consumer behavior professor has been this semester... not to mention that awesome textbook they’re using.3 4  Chapter 1 Buying, Having, and Being: An Introduction to Consumer Behavior 5 OBJECTIVE 1-1 Consumer Behavior: People in Consumer behavior is a process. the Marketplace This book is about people like Gail—and you. It concerns the products and services we buy and use and the ways these fit into our lives. This introductory chapter describes some important aspects of the field of consumer behavior and some reasons why it’s essential to understand how people interact with the marketing system. For now, though, let’s return to one “typical” consumer: Gail, the business major. The preceding vignette allows us to highlight some aspects of consumer behavior that we will cover in the rest of the book. Gail is a consumer; so let’s compare her to other consumers. For some purposes, marketers find it useful to categorize her in terms of her age, gender, income, or occupation. These are descriptive characteristics of a population, or demographics. In other cases, marketers would rather know something about Gail’s interests in clothing or music or the way she spends her leisure time. Knowledge of consumer characteris- tics plays an extremely important role in many marketing applications, such as when a manufacturer defines the market for a product or an advertising agency decides on the appropriate techniques to employ when it targets a certain group of consumers. Gail’s sorority sisters strongly influence her purchase decisions. The conversa- tions we have with others transmit a lot of product information, as well as recommen- dations to use or avoid particular brands; this content often is more influential than what we see on television commercials, magazines, or billboards. The growth of the internet has created thousands of online consumption communities, where members share opinions and recommendations about anything from Barbie dolls to baseball fantasy league team lineups to iPhone apps. Gail forms bonds with fellow group members because they use the same products. There is also pressure on each group member to buy things that will meet with the group’s approval. A consumer may pay a steep price in the form of group rejection or embarrassment when he or she doesn’t conform to others’ conceptions of what is good or bad, “in” or “out.” As members of a large society, such as in the United States, people share certain cultural values, or strongly held beliefs about the way the world should function. Members of subcultures, or smaller groups within the culture, also share values; these groups include Hispanics, teens, Midwesterners, and even hipsters who listen to The Lumineers, wear Band of Outsiders clothing, and eat sushi burritos. Every day Gail comes into contact with information about many competing brands. Some don’t capture her attention at all, whereas others are just a turnoff because they don’t relate to “looks,” people, or ideas with which she identifies. The use of market segmentation strategies means an organization targets its product, service, or idea only to specific groups of consumers rather than to everybody—even if it means that other consumers who don’t belong to this target market aren’t attracted to it. That’s why they make chocolate and vanilla ice cream (and even candied bacon flavor!). Brands often have clearly defined images, or “personalities,” that advertising, packaging, branding, and other marketing elements help to shape. Even the choice of a favorite website is very much a lifestyle statement: It says a lot about a person’s interests, as well as something about the type of person he or she would like to be. People often purchase a product because they like its image or because they feel its “personality” somehow corresponds to their own. This is true even when they evaluate other people; after all, each of us is in a way a “brand” that others like or not—thus the popularity of dating apps such as Tinder that let people quickly choose among competing alternatives! Moreover, a consumer may believe that if he or she buys and uses the product or service, its desirable qualities will 6 Section 1 Foundations of Consumer Behavior Consumers form strong loyalties with their favorite brands or stores. If necessary, many are willing to camp out for a new product introduction, much like they would for scarce tickets at a big concert. Source: Jeffrey Blackler/Alamy Stock Photo. “magically” rub off on to him or her. When a product or service satisfies our specific needs or desires, we may reward it with many years of brand loyalty, which is a bond between product and consumer that is difficult for competitors to break. The appearance, taste, texture, or smell of the item influences our evaluations of products. A good website helps people to feel, taste, and smell with their eyes. We may be swayed by the shape and color of a package on the store shelf, as well as by more subtle factors, such as the symbolism in a brand name, in an advertisement, or even in the choice of a cover model for a magazine. These judgments are affected by—and often reflect— how a society feels people should define themselves at that point in time. Many product meanings lurk below the surface of packaging and advertising; we’ll discuss some of the methods marketers and social scientists use to discover or apply these meanings. Like Gail, we shape our opinions and desires based on a mix of voices from around the world, which is becoming a much smaller place as a result of rapid advancements in communications and transportation systems. In today’s global culture, consumers often prize products and services that “transport” them to different places and allow them to experience the diversity of other cultures—even if only to watch others brush their teeth on YouTube. What Is Consumer Behavior? The field of consumer behavior covers a lot of ground: It is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Consumers take many forms, ranging from a ten year old child who begs her mother for a smartphone to an executive in a large corporation who helps to decide on a multimillion-dollar computer system. The items we consume include anything from canned peas to a massage, democracy, Juicy jeans, Reggaeton music, or a celebrity like Taylor Swift. The needs and desires we satisfy range from hunger and thirst to love, status, and even spiritual fulfillment. Also, as we’ll see throughout this text, people get passionate about a broad range of products. Whether it’s vintage Air Jordans, that perfect yoga mat, or the latest  Chapter 1 Buying, Having, and Being: An Introduction to Consumer Behavior 7 computer tablet, there’s no shortage of brand fans who will do whatever it takes to find and buy what they crave. Consumer Behavior Is a Process In its early stages of development, researchers referred to the field as buyer behavior; this reflected the emphasis at that time (1960s and 1970s) on the interaction between consumers and producers at the time of purchase. Most marketers now recognize that consumer behavior is in fact an ongoing process, not merely what happens at the moment a consumer hands over money or a credit card and in turn receives some good or service. The exchange, a transaction in which two or more organizations or people give and receive something of value, is an integral part of marketing.4 Although exchange theory remains an important part of consumer behavior, the expanded view empha- sizes the entire consumption process, which includes the issues that influence the consumer before, during, and after a purchase. Figure 1.1 illustrates some of the issues that we address during each stage of the consumption process. A consumer is a person who identifies a need or desire, makes a purchase, and then disposes of the product during the three stages of the consumption process. In many cases, however, different people play a role in this sequence of events. The pur- chaser and user of a product might not be the same person, as when a parent picks out clothes for a teenager (and makes selections that can result in “fashion suicide” in the view of the teen). In other cases, another person may act as an influencer when he or she recommends certain products without actually buying or using them. A friend’s grimace when you try on that new pair of pants may be more influential than anything your mother might say. Finally, consumers may take the form of organizations or groups. One or sev- eral persons may select products that many will use, as when a purchasing agent orders a company’s office supplies. In other organizational situations, a large group of people may make purchase decisions: for example, company accountants, designers, CONSUMER’S PERSPECTIVE MARKETER’S PERSPECTIVE How does a consumer decide that How are consumer attitudes toward PREPURCHASE he/she needs a product? products formed and/or changed? ISSUES What are the best sources of information What cues do consumers use to infer to learn more about alternative choices? which products are superior to others? Is acquiring a product a stressful or How do situational factors, such as time PURCHASE pleasant experience? What does the pressure or store displays, affect the ISSUES purchase say about the consumer? consumer’s purchase decision? What determines whether a consumer Does the product provide pleasure or will be satisfied with a product and POSTPURCHASE perform its intended function? whether he/she will buy it again? ISSUES How is the product eventually disposed Does this person tell others about his/her of, and what are the environmental experiences with the product and influence consequences of this act? their purchase decisions? Figure 1.1 STAGES IN THE CONSUMPTION PROCESS 8 Section 1 Foundations of Consumer Behavior engineers, sales personnel, and others—all of whom will have a say in the various Marketing Opportunity stages of the consumption process. As we’ll see in Chapter 11, one important type of organization is the family, in which different family members weigh in about products Successful companies understand that needs are a moving target. and services that all will use. No organization—no matter how renowned for its marketing Consumers’ Impact on Marketing Strategy prowess—can afford to rest on its laurels. Everyone needs to Why should managers, advertisers, and other marketing professionals bother to learn keep innovating to stay ahead about consumer behavior? Simply, it’s good business. The basic marketing concept of changing customers and the that you (hopefully) remember from your basic marketing class states that organiza- marketplace. BMW is a great example. No one (not even rivals tions exist to satisfy needs. Marketers can satisfy these needs only to the extent that like Audi or Mercedes-Benz) would they understand the people or organizations that will use the products and services argue that the German automaker they sell. Voila! That’s why we study consumer behavior. knows how to make a good car (although they may not agree with the company’s claim to be “the ultimate driving machine”). Still, OBJECTIVE 1-2 Consumers Are Different! How Marketers have BMW’s engineers and designers know they have to understand how to understand the We Divide Them Up wants and needs of drivers’ needs will change in the future—even those loyal owners different consumer Our society is evolving from a mass culture in which many segments. consumers share the same preferences to a diverse one in who love the cars they own today. The company is highly sensitive to which we each have almost an infinite number of choices. such key trends as: We may have “fifty shades of grey,” but just think about how many shades of lipstick A desire for environmentally or necktie patterns compete for your attention! This change makes it more important friendly products than ever to identify distinct market segments and to develop specialized messages Increasingly congested road- and products for those groups. ways and the movement by As we’ll see later, building loyalty to a brand is a smart marketing strategy, so some cities such as London and sometimes companies define market segments when they identify their most faith- New York to impose fees on vehicles in central areas ful customers or heavy users. As a rule of thumb, marketers use the 80/20 Rule: New business models that 20 percent of users account for 80 percent of sales. This guideline often holds encourage consumers to rent up well, and in some cases even this lopsided split isn’t big enough: A study of products only while they need 54 million shoppers reported that only 2.5 percent of consumers account for 80