Consumer Behaviour Notes PDF

Chapter 1: An Introduction to Consumer Behaviour Definition: Consumer behaviour studies how individuals or groups select, purchase, use, or dispose of goods, services, ideas, or experiences to satisfy needs, from basic (e.g., hunger) to complex (e.g., love or status). Cons...

Chapter 1: An Introduction to Consumer Behaviour Definition: Consumer behaviour studies how individuals or groups select, purchase, use, or dispose of goods, services, ideas, or experiences to satisfy needs, from basic (e.g., hunger) to complex (e.g., love or status). Consumer Behaviour Process: ○ Pre-Purchase: Need recognition, information search, and alternative evaluation. ○ Purchase: Transaction where value is exchanged. ○ Post-Purchase: Satisfaction, usage, and disposal of product. ○ Exchange: Involves giving and receiving something of value, but consumer behaviour covers the entire consumption process. ○ Importance: Understanding consumer behaviour helps businesses target consumer segments, predict trends, and remain competitive. Segmenting Consumers: ○ Demographics: Age, gender, income, family structure, social class, ethnicity, geography. ○ Psychographics: Values, attitudes, and lifestyles. ○ Examples: G Adventures targets young travelers; Lululemon appeals to all active lifestyles. Marketing Strategies: ○ Relationship Marketing: Builds long-term customer loyalty. ○ Database Marketing: Uses consumer data to personalize offers. Marketing & Culture: ○ Popular culture and user-generated content (UGC) influence consumer choices and brand perception. ○ Meaning of Consumption: Consumers often buy products for symbolic meaning, not just function, connecting with brands that reflect their identity. Global Consumer Culture: ○ Globalization and social media create shared experiences, shaping global brand communities and trends (e.g., League of Legends, Etsy). Consumer Trends: ○ Sharing Economy: Access over ownership (e.g., renting tools). ○ Authenticity: Desire for transparency and ethical products. ○ Inclusivity: Products that represent diverse identities. ○ Tech Trends: IoT and AI are transforming daily life and marketing. Business Ethics: ○ Ethics guide marketplace behavior, ensuring fairness and transparency. Ethical challenges vary by culture but are critical to building consumer trust. Key Issues: ○ Data privacy, especially with recent tech changes (e.g., Apple updates). ○ Marketing to vulnerable groups like children. ○ Corporate social responsibility (CSR) initiatives like McDonald’s McHappy Day. Consumer Research Methods: ○ Primary: Surveys, focus groups, interviews, observation.  ○ Secondary: Pre-existing data. ○ Data Analytics: Identifying trends through big data. Key Techniques: ○ ZMET (imagery to explore motivations) ○ Projective methods (e.g., word associations) ○ Experimental research (e.g., A/B testing). Chapter 2: Perception Sensation: the immediate response of our sensory receptors (those in our eyes, ears, nose, mouth, and skin) to such basic stimuli as light, color, and sound. Perception: Process by which these sensations are selected, organized, and interpreted Perception A 3-stage process that translates raw stimuli into meaning. Stages of Perception: ○ 1. Exposure Sensory stimuli (sights, sounds, smells, tastes, textures) reach sensory receptors (eyes, ears, nose, mouth, skin). Exposure can lead to expectations and later interpretation. ○ 2. Attention Only a small amount of stimuli is noticed, and even less is attended to. ○ 3. Interpretation Stimuli are interpreted based on individual biases, needs, and experiences. Interpretation is subjective. Sensory Systems ○ Sensory inputs (external stimuli) include: Sight: Billboards, visual media Sound: Jingles, music Touch: Textures like cashmere Taste: New flavors Smell: New car smell Information Processing: ○ Consumers selectively process stimuli, unlike passive computers. ○ External stimuli can trigger internal sensory experiences (e.g., a song recalling memories). Sensory Marketing: Focuses on how senses influence consumer experiences and choices. Competitive Advantage: Sensory elements (sight, sound, smell, touch, taste) create immersive experiences that differentiate brands. Key Sensory Examples:  ○ Sight: Color impacts emotions and perceptions (e.g., red = arousal, blue = relaxation). Apple's sleek design conveys sophistication. ○ Sound: Audio cues like jingles or sounds (BMW’s audio watermark) enhance brand recall. ○ Smell: Scents trigger emotions and memories (e.g., Starbucks' scented stickers in hotels). ○ Touch: Tactile experiences (e.g., touchscreen interactions) increase attachment to products. ○ Taste: Flavor and product color influence taste perception. ○ Cross-Sensory Impact: Combining senses (sight, sound, smell) can enhance or detract from consumer engagement. ○ Augmented & Virtual Reality: These technologies allow for enhanced product experiences, helping customers visualize products before purchase. Exposure: ○ Exposure happens when a stimulus comes within the range of our sensory receptors, giving us the potential to notice it. ○ Key point: People can choose whether or not to notice stimuli. Sensory Thresholds: ○ Absolute Threshold: The minimum level of stimulus intensity that can be detected. Important for marketing; stimuli below this threshold (e.g., too-small print) won’t be noticed. ○ Differential Threshold (JND - Just Noticeable Difference): The smallest detectable change in a stimulus. Weber’s Law: The stronger the initial stimulus, the greater the change needed for detection (e.g., a small price drop won't be noticed on high-priced items). Marketing Application of Weber's Law: ○ Companies use the JND to subtly alter products without consumer detection (e.g., reducing package size). ○ To get attention, changes must be large enough to surpass this threshold (e.g., a 20% price drop for sales impact). Subliminal Perception: ○ Subliminal stimuli are below the level of conscious awareness. ○ Despite public fascination, there's little evidence that subliminal messages significantly influence consumer behavior. ○ The famous 1957 New Jersey experiment claiming increased sales via subliminal messaging was fabricated. Key Takeaway: ○ Thresholds in sensory perception (absolute and differential) are crucial for marketing effectiveness. Attention: ○ Refers to how much cognitive processing is given to a particular stimulus. ○ "Eyeball Economy": Marketers face increased competition for consumer attention as multitasking and media snacking rise. Multitasking and Sensory Overload: ○ Consumers face sensory overload, exposed to thousands of ads daily.  ○ Multitasking (processing multiple media at once) is common but impacts the ability to absorb and retain information. ○ Dopamine effect: Multitasking can provoke dopamine releases, creating a craving for more stimulation but reducing focus. Adapting Marketing: ○ To capture attention, marketers use quick, engaging tactics like rich media, teaser ads, and guerrilla marketing. ○ Video features: Slow-motion video ads can convey sensory details but may backfire by seeming overly deliberate. Perceptual Selectivity: ○ People only focus on a small portion of the stimuli they encounter due to psychological economy. ○ Personal Selection Factors: Perceptual vigilance: More attention given to stimuli relevant to current needs (e.g., car ads when buying a car). Perceptual defense: Avoiding stimuli that are uncomfortable or threatening (e.g., ignoring anti-smoking ads). Adaptation: Habituation to familiar stimuli over time, leading to less attention. Stimulus Selection Factors: ○ Contrast helps stimuli stand out and command attention: Size: Larger stimuli are more likely to be noticed. Colour: Distinct colours create a unique identity (e.g., yellow DeWalt tools). Novelty: Unconventional placements or unexpected stimuli grab attention. Position: Stimuli placed at eye level or in prominent magazine spots are more likely to be noticed. Key Takeaway: ○ Marketers must adapt to shorter attention spans by using engaging, visually distinct, and strategically positioned messages. Interpretation ○ Definition: How we assign meanings to sensory stimuli. ○ Influenced by: Learned patterns, expectations, schemas (cognitive frameworks based on past experiences). ○ Example: McDonald's fries tasted better to kids when served in a McDonald’s bag due to brand expectations. Schema ○ Definition: A set of beliefs or cognitive frameworks that guide interpretation. ○ Impact: Helps organize and interpret information, shaping product perception (e.g., "Nike" evokes athleticism, empowerment). Gestalt Psychology ○ Focus: "The whole is greater than the sum of its parts." Interpretation is based on totality rather than individual stimuli. ○ Principles: Closure: People complete incomplete stimuli (e.g., partial jingles).  Similarity: Grouping similar objects together (e.g., Green Giant's "sea of green"). Figure-ground: Dominance of a stimulus in focus with others in the background (e.g., ads with a clear focal point). Perceptual Positioning ○ Brand Perception: Consumers evaluate products based on functional and symbolic attributes. ○ Positioning Strategy: Marketers use price, attributes, product class, users, occasions, and design to differentiate brands (e.g., Volvo for safety, Apple for design). Chapter 3: Behavioral Learning Theories Overview: ○ Behavioral learning theories focus on learning through external events and observable behaviors rather than internal thought processes. ○ Key concepts include stimuli (external events) and responses (reactions). Key Approaches: ○ Classical Conditioning: Learning occurs through pairing a neutral stimulus with an unconditioned stimulus (e.g., Pavlov’s dogs). Examples: Brand names, jingles, or scents paired with positive experiences (e.g., food) lead to conditioned responses (e.g., salivation). Ads often use positive stimuli to create associations (e.g., music with products). ○ Instrumental Conditioning (Operant Conditioning): Learning through consequences of behavior (rewards or punishments). Reinforcement Types: Positive Reinforcement: Increases desired behavior (e.g., discounts for repeat purchases). Negative Reinforcement: Encourages behavior by removing negatives (e.g., free shipping). Punishment: Decreases undesired behavior (e.g., social ridicule). Shaping: Gradually reinforcing successive steps toward a desired behavior. Learning Schedules: ○ Fixed-Ratio: Reward after a set number of responses (e.g., buy 10 get 1 free). ○ Variable-Ratio: Reward after an unpredictable number of responses (e.g., lottery). ○ Fixed-Interval: Reward after a set time (e.g., annual birthday reward). ○ Variable-Interval: Reward at varying times (e.g., surprise discounts). Key Concepts: ○ Stimulus Generalization: Similar stimuli evoke similar responses (e.g., brands with similar packaging perceived as similar quality). ○ Stimulus Discrimination: Differentiating between stimuli to avoid confusion (e.g., distinguishing brand attributes).  ○ Frequency Marketing: Rewards increase with purchase frequency (e.g., loyalty programs). ○ Gamification: Using game-like elements to motivate behavior (e.g., earning points, badges). Applications in Marketing: ○ Create positive brand associations through stimuli. ○ Use reinforcement and conditioning techniques to influence consumer behavior. ○ Leverage learned associations for brand loyalty and recognition. Overview: ○ Cognitive learning theories focus on internal mental processes, portraying individuals as active problem solvers who use creativity and insight in learning, differing from behavioral theories. Key Concepts: ○ Cognitive Learning in Marketing: Example: Ocean Spray’s diet cranberry juice ad featured exercise instead of a party to clarify the diet message. Delaying the product mention allowed better processing, resulting in high recall rates. ○ Conscious vs. Unconscious Learning: Cognitive Insights: Cognitive theorists argue that even automatic behaviors involve mental activities like forming expectations. Mindlessness: People often respond passively to stimuli. Research Example: Students holding hot coffee rated others as warmer than those with iced coffee, showcasing subconscious influences. ○ Observational Learning: Definition: Learning occurs by watching others, not through direct experience. ○ Conditions for Success: Attention: Focus on an attractive or competent model. Retention: Remember the behavior. Production Ability: Be able to replicate it. Motivation: Want to perform the behavior based on perceived rewards. ○ Marketing Implications: Showcasing positive outcomes motivates consumers to imitate without direct reinforcement. Model Influence: ○ Attractiveness Matters: Consumers emulate models based on their attractiveness and social factors. ○ Complex Evaluations: Decisions to imitate are based on various attributes, not just reflexive responses. ○ Negative Effects: Media portrayals can lead to negative behaviors in children, as demonstrated by studies showing imitation of aggression. Conclusion: Cognitive learning theories highlight the significance of internal processes, observational learning, and the influence of models on consumer behavior, informing effective marketing strategies. Memory Process: ○ Information goes through three stages: encoding (input), storage (saved for later), and retrieval (access). ○ Influences consumer behavior by combining internal (memories) and external (e.g., product packaging) aids. ○ Memory can be distorted by post-experience advertising. Memory Systems: ○ Sensory Memory: Very brief, stores sensory input.  ○ Short-Term Memory (STM): Limited capacity, holds info temporarily (up to 20 sec). ○ Long-Term Memory (LTM): Unlimited, permanent storage; requires elaborative rehearsal (deep processing). Encoding & Retrieval: ○ New info is better retained if linked to existing knowledge. ○ Retrieval cues (e.g., ads) aid in recalling stored info, but interference (new info replacing old) affects memory. Types of Memory: ○ Episodic Memories: Personally relevant events (stronger retrieval). ○ Semantic Meaning: Symbolic associations (e.g., champagne = luxury). ○ Associative Networks: Memory links concepts (e.g., brand = benefit). Marketing Implications: ○ Narrative Ads: Stories help consumers encode info more effectively (e.g., Tiffany’s narrative campaigns). ○ Nostalgia: Triggers emotions, enhancing brand recall and connection (e.g., retro brands/products). Factors Affecting Memory: ○ Attention, personal relevance, prior experience, and familiarity impact memory strength. ○ Extreme familiarity can reduce recall efficiency Recognition vs. Recall: ○ Recognition: Shown ads and asked if they’ve seen them before (easier, more reliable). ○ Recall: Asked to recall ads without prompts (harder, decays over time). ○ Both are important in purchase decisions: recall is crucial when no product data is available, while recognition helps when confronted with many product options in-store. Problems with Memory Measures: ○ Response Biases: People may give inaccurate responses (e.g., “yes” answers) or try to please researchers. ○ Memory Lapses: Forgetting details, normalizing answers, or inaccurately recalling time. ○ Facts vs. Feelings: Emotional ads may build long-term positive feelings but not directly convey product benefits or change preferences. ○ Advertising Effectiveness: Recall alone may not influence consumer preference or behavior. Emotional connection and long-term attitude strategies are essential. Chapter 4: Motivation and Effect Types of Needs: ○ Biogenic needs: Basic needs essential for survival (e.g., food, water, air, shelter). ○ Psychogenic needs: Acquired needs like status, power, and affiliation, influenced by culture and environment. Henry Murray's Psychogenic Needs: ○ Developed a universal set of needs that drive behavior. ○ Basis for personality tests like the TAT, which reveals subconscious needs. Maslow's Hierarchy of Needs: ○ Pyramid of needs from basic (biogenic) to complex (psychogenic). ○ Progression: Physiological needs → Safety → Social needs → Ego (esteem) → Self-actualization. ○ Critique: Not empirically tested, may not apply to non-Western cultures. Consumption-Specific Needs:  ○ Affiliation: Products that foster social connections (e.g., venues, group activities). ○ Power: Products that offer control or mastery (e.g., luxury services, customized experiences). ○ Uniqueness: Products that allow self-expression (e.g., personalized items). Utilitarian vs. Hedonic Needs: ○ Utilitarian: Practical, functional needs (e.g., durability, fuel efficiency). ○ Hedonic: Emotional, experiential needs (e.g., luxury, excitement). Needs vs. Wants: ○ Needs are universal, while wants are shaped by personal experiences and culture (e.g., craving different foods to satisfy hunger). Motivation: Drives behavior to reduce the tension caused by unmet needs, aiming to achieve a goal. Motivational Theories: ○ Drive Theory: Biological needs create tension (e.g., hunger), motivating individuals to restore balance (homeostasis). ○ Expectancy Theory: Behavior is shaped by expected positive outcomes (e.g., buying a luxury item for status). Motivational Strength & Direction: ○ Strength: Energy invested depends on how far the goal is. ○ Direction: Goals can have positive (approach) or negative (avoidance) valence. Motivational Conflicts: ○ Approach-Approach: Choosing between two desirable options. ○ Approach-Avoidance: Wanting something but also wishing to avoid it. ○ Avoidance-Avoidance: Choosing between two undesirable options. ○ Self-Regulation: Balancing long-term values with short-term temptations. Goal Fulfillment: Setting SMART goals (Specific, Measurable, Attainable, Relevant, Time-bound) aids in achieving consumer aims (e.g., fitness apps tracking progress). Subconscious Motivation: Goals can be activated without conscious awareness (e.g., brand exposure influences behavior). Involvement: Motivation to process information, based on personal relevance of an object (product, service, etc.). Involvement types: Product, message-response, and purchase situation involvement. Involvement factors: Driven by personal needs, goals, and interests. Involvement levels: Range from inertia (habitual) to passion (high engagement). Flow state: High involvement leads to flow—focused attention, control, time distortion. Product involvement: Increases with customization and co-creation (e.g., Lay’s "Do Me a Flavor"). Message involvement: Enhanced by novel stimuli, celebrity endorsements, user-generated content. Purchase involvement: Varies based on context (e.g., buying for self vs. others). Strategies to increase involvement: Appeal to senses, use prominent stimuli, build ongoing relationships, and involve consumers directly. Affect: Emotional states influencing consumer behavior. Types include: ○ Evaluations: Low arousal (e.g., liking/disliking a movie).  ○ Moods: Temporary states, not tied to events. ○ Emotions: Intense and event-specific (e.g., happiness, fear). ○ Mood Congruency: Consumers’ moods influence product evaluations (e.g., good mood = positive reviews). Retailers use stimuli like music to boost moods. ○ Sadvertising: Emotionally volatile ads (e.g., happy-sad-happy) engage consumers and improve ratings. Specific Emotions: ○ Happiness: Linked to time-saving purchases and social connections, not material goods. ○ Fear: Drives behavior, strengthens brand attachment. ○ FOMO: Fuels consumption but can lead to negative outcomes like anxiety. ○ Disgust: Triggers strong moral judgments, preference for familiar brands. ○ Envy: Can lead to higher spending (benign envy) or alternative purchases (malicious envy). ○ Guilt: Subtle guilt appeals encourage positive actions (e.g., choosing eco-friendly products). ○ Embarrassment: Arises with sensitive product purchases, reduced through familiarity or friendly interactions. Chapter 5: The Self Self-Concept: The beliefs a person holds about their attributes and how they evaluate them. These beliefs can vary in content, positivity, stability, and accuracy. Situations, like stereotype threat, can influence self-evaluations. Self-Esteem: Refers to the positivity of a person’s self-concept. Higher self-esteem leads to confidence and risk-taking, while low self-esteem may result in conservative choices and negative social comparisons. Ideal vs. Real Self: Consumers compare themselves to an ideal shaped by culture and media, influencing their self-esteem and purchasing behavior. Multiple Selves: People adopt different identities in various contexts, which impacts their product choices and behavior. Looking-Glass Self: People view themselves through how they imagine others perceive them, influencing behavior to match these perceived expectations. Self-Concept Definition ○ William James: Self is the sum of what one can call their own. ○ Refined through consumption behaviors, influencing identity. Influence of Consumption on Identity ○ Consumption choices (clothing, food) define personal and social identities. ○ People make judgments about others based on their consumption. Children's Self-Concept Development ○ Older children use more branded items in self-collages. ○ Shift from ownership (“I own it”) to association (“It is like me”) with age. Embodied Cognition ○ Bodily states influence mental states.  ○ Enclothed Cognition: Clothing symbolism affects behavior (e.g., lab coats enhance focus). Loss of Possessions and Identity ○ Loss impacts self-identity; rebuilding can be challenging after significant loss. Self-Product Congruence ○ Preference for products aligning with self-image and values. ○ Cognitive matching influences consumer choices. Extended Self ○ Levels: Individual: Personal possessions (hobbies, clothing). Household: Home and furnishings as identity symbols. Community: Identity tied to location. Group: Attachments to social groups or fandoms. Integrated Self ○ Technology increasingly integrates into identity (e.g., wearables). ○ Raises concerns about privacy and dependency. Body Image ○ Body Image: Subjective evaluation of physical self impacting self-esteem. ○ Distortion: Perceptions often do not reflect reality (e.g., feeling fitter or larger than one is). Marketing Exploitation ○ Advertisers create a gap between perceived and ideal body images. ○ Social media increases self-consciousness, as seen in studies of user reactions to photos. Self-Perceived Attractiveness ○ Affects consumer behavior in stores; attractive salespeople can lower customers' self-esteem. ○ Less confidence leads to hesitance in purchasing decisions. Cultural Ideals of Beauty ○ Eurocentric beauty standards dominate, marginalizing diverse traits. ○ Advertising perpetuates dissatisfaction with personal appearance. Beauty Practices ○ "Beauty work" (cosmetics, surgery) is often viewed as inauthentic but can be framed as self-expression for greater acceptance. Hair and Identity ○ Hair significantly impacts self-image and varies by cultural norms (e.g., Sikh and Indigenous hair practices). Weight and Body Anxiety ○ Western culture prioritizes thinness, contributing to body anxiety and unhealthy behaviors. ○ Distorted body images linked to eating disorders, especially among women. Consumer Activism ○ Growing advocacy for body inclusivity and representation in fashion and marketing. Overview: Gender, ethnicity, race, and age are central to a consumer's self-concept, shaped by societal expectations and their interplay through intersectionality.  Gender Identity ○ Gender is a social construct, extending beyond male/female binaries. ○ Expression of gender varies culturally, and marketers are increasingly recognizing diverse identities, impacting consumer preferences. Gender Socialization ○ Societal norms dictate gender roles, often reinforced in marketing. ○ Brands like Lego adapt by offering gender-neutral products to reflect evolving attitudes. Ethnic and Racial Identity ○ Ethnicity and race shape self-concept, influencing consumer attitudes and behaviors. ○ Representation in marketing fosters trust among ethnic and racial groups. Age ○ Self-esteem often increases with age, challenging stereotypes associated with aging. ○ Perceived age (how old one feels) can impact consumer behavior more than chronological age. Age Cohorts ○ Consumers share preferences within age cohorts, guiding targeted marketing strategies. Chapter 6: Personality, Lifestyles, and Values Personality Concept: ○ Refers to a person’s unique psychological makeup, influencing how they respond to their environment. ○ Debate exists over whether personality is stable across situations; situational factors often play a large role in behavior. Freudian Theory: ○ Id: Seeks immediate gratification (pleasure principle). ○ Superego: Conscience, counteracts the id, follows societal rules. ○ Ego: Mediates between the id and superego, works by the reality principle. ○ Consumer behavior relevance: Unconscious motives influence purchases, product symbolism reflects desires. Motivational Research: ○ Applies Freudian theory to consumer behavior, focusing on unconscious motives through in-depth interviews. ○ Example: Esso’s “Put a tiger in your tank” appeals to power/virility symbolism. ○ Criticized for subjectivity but valuable for deep insights. Neo-Freudian Theories: ○ Personality is shaped by social relationships. ○ Karen Horney: Described three personality types—compliant, detached, aggressive, each linked to product preferences. ○ Alfred Adler: Emphasized overcoming inferiority. ○ Harry Stack Sullivan: Focused on reducing anxiety in relationships. Carl Jung’s Analytical Psychology: ○ Introduced the collective unconscious and archetypes (e.g., wise old man, earth mother). ○ Marketing often taps into these shared archetypes.  Trait Theories: ○ Focuses on measurable personality traits. ○ Big Five Traits: Extraversion, agreeableness, conscientiousness, neuroticism, openness to experience. ○ Consumer-relevant traits: Need for cognition (liking for effortful thinking), public self-consciousness, need for uniqueness. Inner vs. Outer-Directed: ○ Inner-directed: Consumes for self-expression. ○ Outer-directed: Consumes to fit in with others. Traits Interaction with Situations: Traits like public self-consciousness, need for uniqueness, and need for cognition can predict consumer behavior, especially in specific contexts like social settings or product comparisons. Lifestyle Definition: Reflects a person’s consumption and behavior patterns, indicating how they spend time and money. Influenced by factors like self-concept, personality, and social class. ○ Lifestyle Marketing: Focuses on understanding patterns of behavior to position products within existing consumption habits. Evolution: Lifestyles and preferences evolve over time, making older consumption patterns outdated. Community Engagement: Companies create community experiences to integrate products into consumer lifestyles (e.g., Lululemon's free yoga classes). Product Usage in Social Settings: Linking products with desirable social situations helps define a lifestyle (e.g., outdoor sports, festivals, or luxury environments). Product Complementarity & Consumption Constellations: ○ Products that "go together" to symbolize lifestyles (e.g., fast food and paper plates). ○ Cross-category relationships guide marketing strategies, often through co-branding (e.g., Fenty x Puma). Data-Driven Lifestyle Insights: Social media and geodemographic data are used to predict consumer preferences and behavior, making targeted marketing more effective. Geodemography: Combines lifestyle, spending, and geographic data to identify consumer segments, acknowledging regional differences in preferences (e.g., Acadian cuisine in the Maritimes). Core Values & Influence on Behaviour: ○ Values are beliefs about preferable conditions (e.g., health, security). ○ They shape behaviour, consumption, and societal distinctions (e.g., vegetarianism for animal rights vs. health). ○ Values can be personal, social, or cultural and influence shared beliefs within social networks. Cultural Value Systems: ○ Values like health, wisdom, or peace are universal, but their ranking varies by culture. ○ Example: North Americans value self-reliance and personal goals, whereas Koreans emphasize family and collective harmony. ○ Canadian values: fairness, equity, sustainability, and diversity. Link to Consumer Behaviour:  ○ Values influence consumption (e.g., environmentally conscious purchasing). ○ Consumption-specific values (convenience) vs. product-specific values (durability). ○ Example: People valuing group approval prioritize style/brand in clothing. Conscientious Consumerism: ○ Focus on ethical, social, environmental impacts of products (e.g., buying local, avoiding plastic). ○ 71% of consumers avoid brands with disagreeable practices, and many are willing to pay more for ethical products (e.g., Fairtrade). Materialism: ○ Emphasis on worldly possessions and status. ○ High materialists value expensive, status-related items, while non-materialists cherish sentimental objects. ○ Experiences (e.g., travel) often bring more happiness than material goods. Minimalism: ○ Opposite of materialism; focuses on simplicity and minimal possessions. ○ Encouraged by figures like Marie Kondo with "decluttering" movements. Political Ideology & Consumer Behaviour: ○ Liberals and conservatives differ in consumption patterns. ○ Conservatives prefer national brands and products that signal status; liberals seek uniqueness and support diverse causes. Brand Activism: ○ Brands take stances on political/social issues (e.g., Black Lives Matter). ○ Positive impact if aligned with brand values, but backlash if perceived as inauthentic (“woke-washing”). Psychographics: The use of psychological, sociological, and anthropological factors to segment the market. It identifies how and why different groups make purchase decisions. Components of Psychographics: ○ Personality: Reflects consumer traits. ○ Lifestyle: How people live and their patterns of behavior. ○ Values: Beliefs influencing consumer decisions. ○ Example: Best Buy segmented customers into types like “Jill” (suburban mom), “Buzz” (tech-enthusiast male), “Ray” (practical family man), using these insights to tailor stores. Psychographic Analysis: Originally used standard psychological scales, but modern methods focus more on consumer behaviors related to products. AIOs (Activities, Interests, Opinions): ○ Group consumers based on their lifestyle. ○ Examines how consumers spend their time and view themselves. Psychographic Segmentation: ○ Defines the target market beyond demographics. ○ Creates a new market view by breaking stereotypes. ○ Positions the product to fit lifestyles. ○ Improves communication by aligning product attributes with lifestyle. ○ Shapes overall marketing strategy and finds new product opportunities. ○ Used for social and political issues like anti-drinking campaigns.  Psychographic Typologies: ○ VALS™ System: Divides consumers into 8 segments based on psychological characteristics and resources (e.g., Innovators, Thinkers, Achievers, Survivors). Definition: Brand personality refers to human traits attributed to a brand, making it relatable to consumers, like a person. Brand Equity: Consumers form strong associations with brands, influencing their willingness to pay more for branded products over generic ones. Personality Dimensions: ○ Old-fashioned, wholesome, traditional ○ Surprising, lively ○ Serious, efficient ○ Glamorous, romantic ○ Rugged, tough Brand Actions and Inferences: ○ Frequent repositioning = flighty, indecisive ○ High price, exclusive distribution = snobbish, sophisticated ○ Frequent deals = cheap, uncultured ○ Recycled materials, public sponsorship = helpful, supportive Anthropomorphism: Brands are given human-like qualities (e.g., spokescharacters like Tony the Tiger). Two levels of animism: ○ Level 1: Associated with a real person (e.g., celebrity endorsements). ○ Level 2: Given human characteristics (e.g., cartoon characters). Positioning and Repositioning: Aligning brand personality with consumer perception is key. Example: Buick repositioned from a senior-citizen image to target younger buyers with luxury and performance. Chapter 7: Attitudes Attitudes' Role: ○ Serve a function for individuals, facilitating social behavior (Katz's Functional Theory). ○ Marketers need to understand why an attitude exists before attempting to change it. ○ Attitudes can serve multiple functions but often have one dominant purpose. Functions of Attitudes: Utilitarian Function: ○ Based on reward and punishment (pleasure/pain). ○ Positive attitude toward things that provide enjoyment (e.g., cheeseburgers). ○ Ads that highlight direct benefits (e.g., Diet Coke for taste). Value-Expressive Function: ○ Tied to self-concept or values. ○ Reflects what the object/behavior says about the person (e.g., giving blood reflects being altruistic). ○ Important in psychographic and lifestyle analyses. Ego-Defensive Function: ○ Protects from external threats or internal feelings.  ○ Negative attitudes may stem from protecting self-esteem (e.g., avoiding bike riding if insecure about ability). Knowledge Function: ○ Organizes information and provides structure or meaning. ○ Positive attitudes can form from trusted sources or familiarity (e.g., liking a brand because a friend does). ABC Model: ○ Attitudes consist of Affect, Behavior, and Cognition. ○ Example: Subaru's campaign focused on heart (emotions), head (rational benefits), and wallet (financial aspects). Affect: How a consumer feels about the attitude object. Behavior: Intention to act regarding the object. Cognition: Beliefs about the object. Hierarchies of Effects: ○ High-Involvement Hierarchy: Cognition → Affect → Behavior. Involves careful thought and evaluation (e.g., buying a computer). ○ Low-Involvement Hierarchy: Cognition → Behavior → Affect. Consumers act first, then form attitudes (e.g., buying paper towels). ○ Experiential Hierarchy: Affect → Behavior → Cognition. Based on emotional reactions and hedonic consumption (e.g., concert tickets). Attitude Toward Advertisements: ○ Influenced by emotions, ad execution, and the context in which the ad appears. ○ Ads can shape attitudes toward products even if consumers haven't used or seen them in person. Attitude Formation: ○ Attitudes develop through classical conditioning (associating a brand with positive stimuli), instrumental conditioning (reinforcement through consumption), or cognitive learning (modeling behavior of others). Commitment Levels: ○ Compliance: Low involvement; attitudes formed to gain rewards/avoid punishment (e.g., choosing a nearby coffee shop out of convenience). ○ Identification: Form attitudes to align with a group (e.g., drinking coffee with friends). ○ Internalization: High involvement; deep, long-lasting attitudes tied to core values (e.g., family rituals). Consistency Principle: ○ People seek harmony between thoughts, feelings, and behaviors. Attitudes are adjusted to maintain consistency (e.g., justifying a purchase). ○ Linked to cognitive dissonance: discomfort from conflicting thoughts, which people seek to reduce by changing attitudes or behaviors. Self-Perception Theory:  ○ People infer their attitudes by observing their own behaviors (e.g., assuming a positive attitude toward a product after purchasing it). Balance Theory: ○ Consumers seek balanced relationships between themselves, attitude objects, and others. Imbalance (e.g., liking a person but disliking their tattoo) creates tension, motivating attitude change to restore balance. Purpose of Attitude Models: ○ Used to identify components influencing a consumer's overall attitude toward an object (e.g., brands). ○ Attitudes are complex, involving multiple attributes and external factors (e.g., family approval). Multi-Attribute Attitude Models: ○ Assumes attitude is based on beliefs about several attributes. ○ Basic model includes: Attributes: Characteristics considered (e.g., produce freshness, parking). Beliefs: What consumers believe about a brand’s attributes. Importance Weights: Priority given to each attribute by the consumer. ○ Overall attitude is computed by multiplying attribute ratings by importance. Fishbein Model: ○ Most influential multi-attribute model. ○ Measures 3 components: Salient Beliefs: Important beliefs considered. Object-Attribute Linkages: Probability of the object having an attribute. Evaluation: Consumer’s assessment of important attributes. ○ Overall attitude score = sum of attribute scores multiplied by importance. Marketing Applications: ○ Capitalize on relative advantage: Emphasize important attributes where your brand is strong. ○ Strengthen brand-attribute links: Improve consumer perceptions of weak attributes. ○ Add new attributes: Introduce unique features that competitors don’t offer. ○ Influence competitors’ ratings: Use comparative advertising to lower competitor scores. Attitudes & Behaviour: ○ Attitudes often don't predict behavior well due to external factors and situations that can interfere with intentions. ○ Greater conviction in attitudes (e.g., environmental responsibility) leads to more consistent behavior. Theory of Reasoned Action: ○ Focuses on behavioral intentions, recognizing uncontrollable factors may prevent accurate prediction of actual behavior. Social Pressure (Normative Influence): ○ Others' expectations may override personal preferences, affecting decisions (e.g., choosing stores based on social perceptions). ○ Subjective norm (SN) accounts for how much others' beliefs influence one's actions. Attitude Toward the Act:  ○ Predicting behavior focuses on perceived consequences of an action (e.g., how someone feels about donating vs. just their view of the charity). Obstacles to Predicting Behaviour: ○ Intentionality: Impulse or sudden changes affect prediction (e.g., novelty seeking, weather changes). ○ Outcome beyond control: Some intentions (e.g., getting a mortgage) depend on external factors. ○ Mismatch: Attitude needs to align closely with the behavior (e.g., attitude toward the environment may not predict buying an electric car). ○ Time Frame: Longer gaps between measuring attitude and behavior reduce predictability. ○ Direct Experience: Attitudes from personal experience are stronger predictors than those from indirect sources (e.g., ads). Cultural Considerations: ○ Western-based assumptions may not apply universally. ○ Voluntary Actions: In some cultures, consumption decisions are less voluntary (e.g., vaccines). ○ Subjective Norms: Interdependent cultures value conformity more, increasing the impact of norms on behavior. ○ Time Perspective: Assumes linear time (past, present, future), which isn't universal in all cultures. Chapter 8 Attitude Change and Marketing Communications Communications Model Overview ○ Purpose: Helps marketers understand how to influence consumers' attitudes. ○ Components: Source: Origin of the communication (e.g., organization). Message: Content and structure; symbols impact perception. Medium: Channel used to transmit (e.g., social media, print, radio, billboards). Receiver(s): Consumers interpret messages based on their experiences. Feedback: Consumers’ reactions allow for message adjustment. Updated View: Interactive Communications ○ Traditional model focused on one-way mass communication (e.g., TV, radio). ○ Limitations: Views consumers as passive. Does not emphasize two-way interaction or personalization. Modern Approach: ○ Permission Marketing: Targeting consumers who "opt-in" to messages (e.g., email subscriptions, social media followers). ○ Narrowcasting: Tailoring messages for small groups or individuals. Personalization enhances effectiveness when matched to recipient preferences. Consumer Interactivity ○ Customer Co-Creation: Consumers actively influence product/service (e.g., designing Nike shoes).  ○ Real-Time Marketing: Leveraging current events for immediate engagement (e.g., Oreo's "dunk in the dark" tweet). ○ Social platforms enhance consumer discovery and engagement (e.g., Pinterest as a tool for style exploration). Levels of Interactive Response ○ First-Order Response: Immediate, transaction-based feedback (e.g., purchases from Instagram ads). Provides sales data and measures communication effectiveness. ○ Second-Order Response: Indirect feedback (e.g., likes, shares, follows). Builds brand awareness, informs consumers, and fosters long-term relationships. Key Takeaways ○ Marketing today emphasizes two-way, personalized, and interactive communication. ○ Success depends on understanding consumer preferences and fostering engagement beyond direct transactions. Source Effects ○ The source of a message influences its acceptance. ○ Key characteristics: credibility (expertise, trustworthiness) and attractiveness (likeability, social value). Credibility ○ Enhances message acceptance, especially for unfamiliar objects. ○ Can be compromised by knowledge bias (inaccurate info) or reporting bias (conflict of interest). ○ Increased by congruence (relevance of source qualifications). Attractiveness ○ Physical appearance, personality, or social similarity boost persuasion. ○ Halo effect: Attractive sources are assumed to excel in other traits. ○ Works best for socially sensitive products (e.g., fashion, jewellery). Celebrity and Influencer Endorsements ○ Match-up hypothesis: Endorser must align with the product’s image. ○ Effective for raising brand awareness and differentiation. ○ Risks: Lack of sincerity, scandals, or irrelevant endorsements. Non-Human Endorsers ○ Reliable alternatives (e.g., mascots, AI influencers). ○ Boost recall and brand attitudes but may lack perceived trustworthiness. Message Structure and Persuasion ○ Subtle changes in tone or phrasing (e.g., "we" vs. "the brand") influence consumer perception. ○ Layout affects consumer relationships: Friend: Horizontal placement, near the model. Leader: Vertical placement, above the user. ○ Medium choice impacts effectiveness: High-prestige magazines suit image-based ads. Expert magazines suit factual messages. Pictures vs. Words  ○ Visuals: Evoke emotions, aid memory retention, and influence brand attitudes. ○ Verbal: Better for conveying detailed or factual information. ○ Combination is most effective when aligned. Argument Structure ○ One-Sided: Focuses only on positives. ○ Two-Sided: Balances positives with minor negatives, boosting credibility, especially for educated or skeptical audiences. Conclusion Drawing: ○ Self-drawn conclusions work for motivated consumers. ○ Explicit conclusions help in low-involvement situations. Comparative Advertising ○ Highlights brand attributes against competitors. ○ Risks: Can appear confrontational or reduce credibility. ○ Effective for new brands when carefully executed. Message Repetition ○ Mere Exposure Effect: Familiarity increases likability. ○ Wearout: Overexposure leads to boredom or negative reactions. ○ Mitigation: Shorten ads or vary themes while maintaining consistency. Emotional vs. Rational Appeals ○ Emotional appeals evoke feelings to connect with consumers. Effective in mature product categories where brand differences are minimal. Hard to measure cumulative effects of emotional ads. ○ Rational appeals focus on logical, factual information. Better recall but less emotional connection. Humorous Appeals ○ Grab attention and reduce counterarguments, increasing message acceptance. ○ Need to be subtle, brand-appropriate, and culturally sensitive. ○ Effective for relaxed products (e.g., beer) but less for serious industries (e.g., banking). Sex Appeals ○ Work well with congruent products (e.g., lingerie). ○ Can backfire if seen as gratuitous or unrelated to the product. ○ Attract attention but may hinder recall of the ad’s actual message. ○ More effective with male audiences, though not always resulting in stronger brand attitudes. Fear Appeals ○ Highlight negative consequences of not taking action. Effective for moderate levels of fear (inverted U-curve effect). Must provide a solution to avoid denial or disengagement. ○ Works best with credible sources and relatable threats. Source vs. Message Importance ○ Effectiveness depends on consumer involvement. High involvement: focus on message details. Low involvement: source credibility matters more. Two Routes to Persuasion ○ Central Route (High Involvement): Consumers process content carefully when the message is relevant. Focus on argument quality; leads to long-lasting attitude change. Counterarguments reduce persuasiveness; supporting arguments increase compliance.  ○ Peripheral Route (Low Involvement): Consumers rely on peripheral cues (e.g., packaging, attractiveness of the source). Leads to temporary attitude change, more prone to reversal. Appeals to emotional or behavioral decision-making rather than cognitive evaluation. Implications for Marketers ○ Use strong arguments for high-involvement audiences. ○ Design appealing visuals and use popular spokespeople for low-involvement audiences. ○ The same element can act as central or peripheral depending on consumer focus (e.g., cup size as value vs. visual appeal). ○ The elaboration likelihood model assumes​that, under conditions of high​involvement, we take the central route to persuasion. Under conditions of low​involvement, we take a peripheral route instead. Chapter 9: Individual Decision Making Consumers as Problem Solvers ○ Consumer Purchase= response to problem We are interested in a purchase, and go through a series of steps in order to accomplish it ○ Decision making process Perspectives on Decision Making ○ Rational perspective-consumers Integrate as much information as possible with what they already know about the product. Purchase momentum Occurs when consumers buy beyond needs ○ Rational system of cognition Limited Problem solving ○ Buyers not as motivated to search for information ot to evaluate rigorously ○ Buyers use simple decision rules to choose ○ Straightforward choices Habitual decision making ○ Choices made with little to no conscious effort Efficient decisions: minimal time and energy Challenge: Consumers must be convinced to unfreeze their former habit and replace it with a new one Extended problem solving ○ Initiated by a motive that is central to self concept ○ Consumer feels that eventual decision carriers a fair degree of risk ○ Consumers collect internal and external search ○ Careful evaluation of brand attributes Behavioral influence perspective ○ When a person decides to buy something on impulse that is promoted as a surprise special in a store Experiential perspective ○ Consumers buy based on totality of products appeal Stage 1: Problem Recognition ○ When we experience a significant difference between our current state of affairs and some state we desire  Problems arise two ways Actual state-need recognition Ideal state-opportunity recognition Stage 2: Information Search ○ Process by which consumer surveys the environment for appropriate data ro make reasonable decision ○ Internal search Scanning memory to assemble product alternative information ○ External search Obtaining info from ads, retailers, friends, family ○ Brand Switching: Select familiar brands when decision is ambiguous ○ Variety Seeking: Desire to choose new alternatives over more familiar ones ○ Perceived Risk Belief that product has negative consequences Risk can be objective (physical danger) and subjective (social embarrassment) Step 3: Evaluation of Alternatives ○ Choosing from the often very many available alternatives ○ Marketers must focus on getting their brands in consumers evoked set ○ Product Positioning Convincing consumers that product should be considered within a given category ○ Identifying competitors products /services different on the surface can actually compete on sumer-ordinate level Chapter 10: Group Influence and Social Media Individual versus Group Decisions ○ We engage in consumption as individuals, in groups, and on behalf of others Requestor: the person who asks (“What movie should we see?”) Responder: the person who provides an answer (“Anything works for me.”) ○ Research shows groups often make different and sometimes riskier decisions than individuals alone ○ This may be due to diffusion of responsibility where each individual is less responsible for the outcome ○ Group decision making tends to increase decision polarization where the direction that group members were taking becomes more extreme after discussion. ○ In larger groups normal restraints on behaviour may be reduced. This is know as deindividuation. ○ The roles people play within groups can also influence Initiator – The person who brings up the idea or identifies a need. Gatekeeper – The person who conducts the information search and controls the flow of information available to the group. Influencer – The person who tries to sway the outcome of the decision. Some people may be more motivated than others to get involved, and participants also possess different amounts of power to get their point across. Buyer – The person who actually makes the purchase. The buyer may or may not actually use the product. User – The person who actually consumes the product or service Normative Influence ○ Norms are informal riles that govern behaviour  ○ Social norms indicate expected behaviours in a situation by a group or individual ○ Normative influence tells us that people often change their behaviour, thoughts, or values to liked and accepted by others ○ Descriptive norms – norms that convey what others are doing ○ Injunctive norms – norms that convey what others think you should do ○ Dynamic norms draw attention to how people’s behaviour is changing over time For example expanding efforts to reduce electricity consumption by 60% of Canadians over the last 5 years Conformity ○ Conformity refers to a change in beliefs or actions as a reaction to real or imagined group pressure. Pressure to conform conflicts with the desire to be unique Reactance is the negative emotional state when someone is threatened with a loss of freedom ○ What influences conformity? Cultural pressures Fear of deviance Commitment Group unanimity, size, and expertise Environmental cues Reference Groups ○ Actual or imaginary individual/group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviour ○ Influences consumers in three ways: Informational An individual might rely on a reference group for information about a consumption decision, such as brand-related knowledge or experience. Utilitarian An individual might make a consumption choice to satisfy the expectations of a reference group. Value-expressive An individual might engage in consumption to satisfy the expectations of a reference group. ○ Social identity theory argues that each of us has several “selves” that relate to groups Membership versus Aspirational Reference Groups ○ Aspirational reference groups: Comprise idealized figures, such as successful businesspeople, athletes, or performers. ○ Membership reference groups: involve other consumers who belong to the same groups as us. ○ People the consumer actually knows vs. people the consumer doesn’t know but admires Aspirational strategies concentrate on highly visible, widely admired figures (athletes or performers) Membership strategies focus on “ordinary” people whose consumption provides informational social influence Propinquity Mere exposure Group cohesiveness Positive versus Negative Reference Groups ○ Reference groups may exert either a positive or negative influence on consumption behaviours ○ Dissociative reference groups = motivation to distance oneself from other people/groups ○ Marketers show ads with undesirable people using competitor’s product  When Are Reference Groups Important? ○ Impact of reference groups vary based on whether the product is complex or, a product with little perceived risk (less susceptible) ○ Two dimensions of influence: Purchases to be consumed privately or publicly Whether a luxury or a necessity ○ Reference groups are most robust for purchases: Luxuries Socially conspicuous products Power of Reference Groups ○ Social power Capacity to alter the actions of others Types of social power: Referent power Information power Legitimate power Expert power Reward power Coercive power Brand Communities ○ A group of consumers who share a set of social relationships based upon usage or interest in a product ○ Brand communities share emotions, moral beliefs, styles of life, and affiliated product Brand loyalty Brandfests enhance brand loyalty Brand missionaries Anti Brand Communities ○ Anti Brand communities: Coalesce around a celebrity, store, or brand—but in this case they’re united by their disdain for it ○ Social Idealists who advocate non-materialistic lifestyles ○ Many oppose Walmart, Starbucks, McDonald’s and Hummers Opinion Leadership ○ Influence others’ attitudes and behaviours ○ Hard to identify but are: Technically competent Possess knowledge power Socially active, highly interconnected Possess referent power Are often the first to buy Hands-on experience ○ Two-step flow of model of influence Small group of influencers change opinions or many people ○ Influence network Interactions and communications between influencers and those who are easily influenced How Influential is an Opinion Leader? ○ Generalized opinion leader: Somebody whose recommendations are sought for all types of purchases. ○ Very few people are capable of being expert in a number of fields. Opinion leaders are either:  Monomorphic experts in a limited field Polymorphic experts tend to concentrate on one broad domain Types of Opinion Leaders ○ Opinion leaders absorb information from mass media and transmits data to opinion receivers ○ May or may not purchase the products they recommend ○ Innovative communicators The Market maven ○ Market Maven: Actively involved in transmitting marketplace information of all types Just into shopping and aware what’s happening in the marketplace Overall knowledge of how and where to get products ○ Surrogate consumers:Hired to provide input into purchase decisions Product Curators and Crowd Power ○ Product curators - smart marketers proactively seek out influencers to help them identify just what they should offer to their customers. ○ Crowd Power - key change in the way some new media companies approach their business is to think of it as marketing strategy by committee wisdom of crowds perspective argues that under the right circumstances groups are smarter than the smartest people in them Identifying Opinion Leaders ○ Opinion leaders can be difficult for marketers to identify ○ Many operate at the local level and may influence 5 to 10 people rather than an entire market segment ○ Techniques for identifying opinion leaders: The Self-Designated Methos Sociometry The Self Designating Method ○ Most commonly used technique to identify opinion leaders… Simply ask individuals whether they consider themselves to be opinion leaders Method is easy to apply to large group of potential opinion leaders View with skepticism…inflation or unawareness of own importance/influence ○ Alternative: key informants identify opinion leaders Sociometric Methods ○ Trace communication patterns among group members ○ Systematic map of group interactions ○ Most precise method of identifying product-information sources, but is very difficult/expensive to implement ○ Network analysis Referral behaviour/network, tie strength Bridging function, strength of weak ties Word-of-Mouth Communication ○ Product information transmitted by individuals to individuals Thought to be more reliable than traditional advertising Social pressure to conform Influences two-thirds of all sales We rely upon WOM in later stages of product adoption Powerful when we are unaware of product category  Yelp reviews Buzz Building ○ Refers to activities undertaken by marketers to encourage consumers to spread WOM about the brand. WOM online encouraged by marketers Tremor – youth recruited by Proctor and Gamble to act as brand influencers Crowd power Wisdom of crowds – creation and marketing by committee Threadless T-shirts Negative WOM ○ We weigh negative WOM more heavily than we do positive comments! Negative WOM is easy to spread, especially online Determined detractors Information/rumor distortion Social Media and Consumer Behaviour ○ Refers to forms of electronic communication through which users create online communities to share information, ideas, personal messages, and other content. Instagram, X (Twitter), TikTok, Twitch About online community Our passion for social media exerts a big impact on our emotions and experiences during the course of a typical day Online Social Networks and Online Communities ○ Social networks = social graphs ○ Nodes = members in a network ○ Ties = relationships among nodes ○ Nodes Have interactions (behaviour based ties) Have flows (exchange information, influence, etc.) ○ Media multiplexity – flows are in many directions ○ Social object theory – object of common interest ○ Object sociality – extent objects can be shared What Makes Online Communities Work? ○ Standards of behaviour ○ Member contributions Most members of online communities are lurkers who primarily absorb content rather than create or contribute their own ○ Degree of connectedness ○ Network effects Why Do We Post? ○ The megaphone effect: everyday consumers have a huge audience available to them Communicate something about our identity Manage the impression we make on others Regulate emotions Share and acquire information Entertain others Inspire or persuade other Chapter 11: Buying, Using, and Disposing Key Concepts ○ Factors Influencing Purchase Decisions: Physical and social environments (e.g., store design, crowd density). Store layout, website, and salesperson interactions shape decisions. ○ Sharing Economy: Rise of renting versus buying. Examples include bike-sharing and temporary product ownership. ○ Product Disposal: Marketers and policymakers are addressing challenges in disposing of products. Includes recycling programs, second-hand sales, and disposal rituals. Situational Effects and Antecedent States ○ Mood and Consumption: Mood congruency affects judgments (e.g., happy mood = positive product evaluation). Store elements like lighting and music influence mood. ○ Temporal Factors: Economic time: Multitasking and time poverty among consumers. Psychological time: Perceptions of time like "flow time" or "leisure time." ○ Physical and Social Surroundings: Décor, temperature, and co-consumer interactions affect product perception. Crowding vs. density interpretations vary by context. Shopping Behavior and Environment ○ Types of Shoppers: Economic, ethical, recreational, and apathetic. ○ Spontaneous Shopping: Unplanned buying: Needs triggered by reminders. Impulse buying: Sudden urges to buy. ○ Retail Strategies: "Clicks vs. Bricks" emphasizes online (m-commerce) and in-store (showrooming) shopping. Atmospherics: Store design elements like scents and music to enhance customer experience. Post-Purchase Activities ○ Sharing Economy Benefits: Avoids ownership costs and disposal concerns. ○ Disposal Practices: Options: Retain, temporarily dispose, or permanently dispose. Lateral cycling: Second-hand markets, bartering, and online resale. Divestment rituals: Emotional detachment strategies like ritual cleansing. ○ Recycling: Companies encourage recycling with reward programs. Focus on reducing electronic waste. Chapter 12: Income & Social Class Income Patterns ○ Income Inequality: A significant social issue causing worry about "falling behind." Effects: Poor decisions, health outcomes, crime rates, increased mortality.  ○ Canadian Living Standards: High and improving, but income inequality has risen over 20 years. Family Life Cycle (FLC) ○ Spending depends on children and working status of women. ○ Combines income trends and family composition to analyze income demands. ○ Preferences and needs evolve with age. Consumer Spending Habits ○ Demand = Willingness + Ability to buy. ○ Discretionary Income: Surplus money after basic needs. Shifts with age: older households spend more on shelter/transport, less on food/apparel. Rising expenses on entertainment and education. Individual Attitudes Toward Money ○ Consumer types: Spendthrifts vs. tightwads. Groups (e.g., Walmart Study): Brand aspirationals: Low income, love premium brands. Value-price shoppers: Prioritize low costs. Price-sensitive affluents: Wealthy but love deals. Consumer Confidence ○ Reflects optimism/pessimism about the economy. ○ Influences discretionary spending. ○ Affected by: Personal circumstances. Global/national events. Cultural attitudes towards savings. Social Class ○ Defined by income, family background, education, and occupation. ○ Determines spending patterns and preferences. ○ Social Mobility: Horizontal: Within the same class. Upward/Downward: Change in class. Components of Social Class ○ Occupational Prestige: A key indicator; stable across cultures. ○ Income: Not evenly distributed; spending patterns matter more than income levels. ○ Consumption and Social Class ○ Social Class predicts symbolic purchases. ○ Income predicts major non-status expenditures. ○ Both predict expensive symbolic purchases. Taste Cultures & Cultural Capital ○ Taste Culture: Differentiates aesthetic preferences by class. Upper-class: Museums, theatre. Middle-class: Camping, fishing. Status Symbols ○ Conspicuous Consumption: Displaying wealth to inspire envy. Thorstein Veblen: Leisure classes, impractical fashion as signs of affluence. Chapter 13: Cultural Influences on Consumer Behaviour Key Concepts ○ Culture as Society's Personality  Culture encompasses shared meanings, rituals, norms, and traditions. It influences product priorities and dictates success or failure. ○ Dimensions of Culture Ecology: Adapting to the environment. Social Structure: Maintaining orderly social life. Ideology: Shared beliefs and values (worldview and ethos). Cultural Factors and Norms ○ Values: Universal (e.g., family, health, happiness) but shaped uniquely by culture. ○ Norms: Rules for behavior, divided into: Enacted Norms: Explicit (e.g., traffic rules). Crescive Norms: Implicit, including customs, mores, and conventions. ○ Hofstede’s Cultural Dimensions: Framework for cross-cultural analysis. Cultural Practices ○ Myths: Symbolic stories that explain cultural ideals, e.g., hero myths. Functions: Metaphysical, cosmological, sociological, psychological. Applications: Comic books, marketing (e.g., Sasquatch beer ads). ○ Rituals: Symbolic, repetitive behaviors. Examples: Tailgating, wedding ceremonies, holiday traditions. Businesses supply ritual artifacts (e.g., diamond rings). ○ Sacred vs. Profane: Sacralization: Ordinary objects/events gain sacred meaning (e.g., souvenirs). Desacralization: Sacred items become mundane (e.g., mass-produced symbols). Cross-Cultural Marketing Considerations ○ Language and Symbols: Misinterpretations can occur without back-translation (e.g., advertising blunders). Symbols (colors, gestures) carry different meanings across cultures. ○ Standardized vs. Localized Strategies: Standardized: Economies of scale, consistent branding (e.g., McDonald’s). Localized: Tailored to cultural preferences (e.g., Disney’s regional parks). Cultural Production and Fashion ○ Cultural Production Systems (CPS): Composed of creative, managerial, and communication subsystems. Cultural gatekeepers (e.g., editors, DJs) influence trends. ○ Fashion Systems: Fashion conveys symbolic meanings, influenced by psychology, sociology, and economics. Models of fashion: Conformity, variety seeking, conspicuous consumption. ○ Fashion Cycles: Classics (long-lasting) vs. Fads (short-lived, impulsive). Factors for trends: Lifestyle fit, visible benefits, personalization. Diffusion of Innovations ○ Innovation Types: Continuous: Evolutionary changes. Dynamically Continuous: Significant improvements. Discontinuous: Revolutionary changes. ○ Adoption Process: Categories: Innovators → Early adopters → Early majority → Late majority → Laggards.  Factors Influencing Adoption: Compatibility: Fits consumer lifestyles. Trialability: Easy to test. Complexity: Easy to understand. Observability: Benefits are visible. Relative Advantage: Superior to alternatives.