Contemporary Logistics, 12th edition Paul R. Murphy Instructor Manual.pdf (22)

Learning Objectives (1 of 2) 6.1To understand how consumers’ attitudes influence their decision-making.

6.2To understand the tri-component attitude model.

6.3To understand how to apply multiattributemodels to change consumers’ attitudes.

6.4To understand how to alter consumers’ attitudes by making particular needs prominent.

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Learning Objectives (2 of 2) 6.5To understand cognitive elaboration and the two routes to persuasion.

6.6To understand cognitive dissonance and resolving cognitive conflicts.

6.7 To understand how people assign causality to events.

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Learning Objective 6.1 6.1 To understand how consumers’ attitudes influence their decision-making.

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Attitude Defined A learned predisposition to behave in a consistently favorable or unfavorable manner with respect to a given object.

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Example: Wrangler

Source: Wrangler, a VF Company .

Attitude Formation •Consumers learn attitudes •Sources of attitude formation – Experience –Family and friends

–Media/Internet/Social Media

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Role of Personality Factors •Need for cognition • Innovativeness

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Role of Attitudes • Attitudes are consistent with behavior • How do situations affect attitudes?

Table 6.1 Situations Affecting Attitudes Product/Service

Situation

Energizer Batteries

Hurricane is coming

Mini Cooper

Buying a new car

Cheerios

High cholesterol

The Wall Street Journal

Extra cash on hand

Delta Airlines

Friend’s bachelor party

Maxwell House Coffee Stouffer’s Easy Express Meals

Need to stay awake Want dinner at home

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Attitude “I know that the hurricane is going to knock out my electricity, so I’d better be prepared.”

“With gas prices so high, I’ve got to trade in my SUV and buy a car that gets 30 mpg!”

“They’ve been advertising how Cheerios can lower cholesterol for so long that it must be true.”

“I have to decide whether to invest in stocks or just put my money in a money market fund.”

“My friend’s bachelor party is in Las Vegas, and I want to be there.”

“I had a late date last night, but I’ve got a lot of work to do this morning at the office.”

“I’m tired of eating out night after night.”

Learning Objective 6.2 6.2 To understand the tri-component attitude model.

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The Cognitive Component Table 6.2 Beliefs about Two Smart Speakers Product Attribute Responds to Voice Commands Prompt Word

Google Home Yes “OK Google” or “Hey Google”

Amazon Echo

Works with my Smart Home (Ecobee)

No

Yes

Customizable Appearance

Yes

No

Personal Assistant

Search Google, daily briefing, Add items to calendar, make check traffic, calendar, flights, shopping and to-do lists, make shopping list, track packages check flights, track a package

Works with my Music Streaming Yes Preference (YouTube Music)

Yes “Alexa,” “Echo,” “Amazon,” or “Computer”

No

Source:Adapted from: Andrew Gebhart, “Google Home verus Amazon Echo: Round 2— Google strikes back,” CNET.com, 28, 2017. .

The Affective Component For the past 30 days, you have been using Dapper Dan Aftershave Balm. Please tell us how your skin felt after using the product. Please indicate your level of agreement or disagreement with each of the statements listed here.

Blank

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Dapper Dan Balm refreshed my skin.

[1]

[2]

[3]

[4]

[5]

Dapper Dan Balm tightened my skin.

[1]

[2]

[3]

[4]

[5]

Dapper Dan Balm smoothed my skin.

[1]

[2]

[3]

[4]

[5]

Dapper Dan Balm suppled my skin.

[1]

[2]

[3]

[4]

[5]

Dapper Dan Balm revived my skin.

[1]

[2]

[3]

[4]

[5]

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Likert Scale Defined The most popular form of attitude scale, where consumers are asked to check numbers corresponding to their level of “agreement” or “disagreement” with a series of statements about the studied object.

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Semantic Differential Scale For the past 30 days, you have been using HI Lipgloss.

Please tell us how your lips felt after using the product. For each of the adjectives listed here, please mark an “X” in the box corresponding to how your lips felt after using HI Lipgloss.

Refreshed

[1]

[2]

[3]

[4]

[5]

Not refreshed

Refreshed

[1]

[2]

[3]

[4]

[5]

Not tight

Refreshed

[1]

[2]

[3]

[4]

[5]

Not smooth

Supple

[1]

[2]

[3]

[4]

[5]

Not supple

Revived

[1]

[2]

[3]

[4]

[5]

Not revived

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The Conative Component Which of the following statements best describes the chance that you would buy Dapper Dan Aftershave Balm the next time you purchase an aftershave product?

Fill in the blankI definitely will buy it.

Fill in the blankI probably will buy it.

Fill in the blankI am uncertain whether I will buy it or not.

Fill in the blankI probably will not buy it.

Fill in the blank

I definitely will not buy it.

How likely are you to buy Dapper Dan Aftershave Balm during the next three months?

Fill in the blankVery likely Fill in the blankLikely Fill in the blankUncertain Fill in the blankUnlikely Fill in the blankVery unlikely

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Discussion Questions •Explain your attitude toward your college/university based

on the tricomponent attribute model.

•Be sure to isolate the cognitive, affective, and conative elements.

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Altering Consumer Attitudes •Changing beliefs about

products •Changing brand image •Changing beliefs about competing brands

Source:Avocados From Mexico, Mexican Hass Avocado Importers Association .

Learning Objective 6.3 6.3 To understand how to apply multiattributemodels to change consumers’ attitudes.

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Attitude-Toward-Object Model •Used to change attitudes • Ways –Add an attribute –Change perceived importance of an attribute –Develop new products

Source: The Kraft Heinz Company .

Other Multi-Attribute Models •Theory of Reasoned Action •Theory of trying-to-consume •Attitude-toward-the-ad model

How are the models different from the attitude-towardobject model? From each other?

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Multiattribute Models Attitude Toward the Object • Does a brand have the needed attribute?

•What is the importance of that attribute?

Theory of Trying to Consume

Attitude Toward Behavior

Theory of Reasoned Action

• Attitude toward the brand

• Tri-component attitude model

• How do I feel about buying this brand?

• Normative beliefs

Attitude Toward the Ad

Attitude-Toward-SocialMedia Posts

• Attitudes toward brands are formed based on how consumers feel about the advertisements for these brands.

• Attitude toward the behavior • Personal impediments • Environmental impediments

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• Motivation to comply with norms

• Attitudes toward brands are formed based on how consumers feel about what they see on social media about the brands.

Learning Objective 6.4 6.4 To understand how to alter consumers’ attitudes by making particular needs prominent.

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Functional Approach •Utilitarian function •Ego-defensive function •Value-expressive function

•Knowledge function •Associate brands with worthy causes and events

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Example: Utilitarian Function

Source: LYSOL is a registered trademark of Reckitt Benckiser LLC. .

Learning Objective 6.5 6.5 To understand cognitive elaboration and the two routes to persuasion.

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Elaboration Likelihood Model Defined The proposition that attitudes can be changed by either one of two different routes to persuasion –a central route or a peripheral route –and that the cognitive elaboration related to the processing of information received via each route is different

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Central Route •High involvement •Considered thought and cognitive processing •Learning through –Attribute-based information –High quality arguments –Exertion of effort to learn, comprehend, evaluate •Comparative ads •Objective knowledge

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Peripheral Route •Low involvement •Little thought and little information processing •Learning through – Repetition –Passive processing of visual cues –Holistic processing •Non-comparative ads •Subjective knowledge

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Applications (1 of 2) •Comparative ads –Comparative ads processed centrally –Noncomparative ads processed peripherally •Product knowledge –Higher objective knowledge for utilitarian products than hedonic products –Higher subjective knowledge for hedonic products than utilitarian products

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Learning Objective 6.6 6.6 To understand cognitive dissonance and resolving cognitive conflicts.

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Dissonance •Cognitive dissonance •Post-purchase dissonance •Ways to reduce post-purchase dissonance –1. Rationalize decision –2. Seek advertisements that support choices (avoid competitive ads).

–3. “Sell” friends on the positive features of the purchase.

–4. Seek reassurance from satisfied owners

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Learning Objective 6.7 6.7 To understand how people assign causality to events.

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Attribution Theory •Self-perception

attribution

•Defensive attribution •Footin-the-door technique

•Door-in-the-face technique

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Defensive Attribution Defined People generally accept (or take) credit for success (internal attribution), but assign failure to others or outside events (external attribution)

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Applications (2 of 2) •Why does the foot-in-the door technique increase the likelihood that the requestee will fulfill a larger request?

•How is it different from the door-in-face technique?

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Analyzing Self-Attributions Table 6.4 Reviewing Self-Attributions Scenario Distinctiveness

Consistency Over Time Consensus and Varied Situations An alumnus How distinctive will my Can I afford to donate If I ask my friends, would regularly?

Will I be able to considering contribution be? Do most of them agree that I contribute money if the donating money to many others make should make a donation, his MBA program larger donations? Will I university asks for a special or will their opinions become part of a select donation (e.g., for building vary? group if I donate? a new student center)?

An amateur photographer who sees that, when printed on the latest HP printer, her photos look much better

Am I the only one who sees this marked difference, or do others notice the same?

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Will I see the same If I ask my friends, would superiority of the HP printer most of them agree that when I take other photos? my pictures look better Or is the advantage I see when printed on the HP mostly a function of what printer, or would some this articular photo shows? notice the difference and others not?

Copyright

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Consumer Behavior Twelfth Edition

Chapter 7 Persuading Consumers

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Learning Objectives 7.1To understandthe components of communications, source credibility, and barriers to effective transmissions.

7.2To understand the distinctions between broadcasted and addressable messages.

7.3 To understand elements of message structure.

7.4To understand the effectiveness and limitations of prominent advertising appeals.

7.5 To understand how to measure the effectiveness of advertising messages.

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Learning Objective 7.1 7.1 To understand the components of communications, source credibility, and barriers to effective transmissions.

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Communications •Impersonal verus interpersonal •Formal verus informal

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Source Credibility Defined A source’s persuasive impact, stemming from its perceived expertise, trustworthiness, and believability

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Source Credibility and Time •Sleeper effect •Differential decay

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Barriers to Communications •Selective exposure •Time shift •Psychological noise

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Sensory Input Defined The stimuli that are received and perceived from our five senses: smell, sight, touch, taste, and sound

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Overcoming Noise • Repetition • Contrast •Digital technologies

•Effective positioning and providing value

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Experiential Ads Defined Allow customers to engage and interact with products and services in sensory ways and to create emotional bonds between consumers and brands

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Learning Objective 7.2 7.2 To understand the distinctions between broadcasted and addressable messages.

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Mid-Roll Ads Defined Promotions that run in the middle of streaming videos, allowing viewers to view about 50 percent of the program before they appear

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Comparison Traditional media • Broadcast • One-way

•Directed at groups New media • Narrowcast • Two-way • Addressable

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Addressable Advertising • Customized • Interactive • Response-Measurable

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Learning Objective 7.3 7.3 To understand the elements of message structure.

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Messages •Verbal, nonverbal or both •Cognitive learning

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Steps for Sponsors •Establish objectives –Create awareness –Promote sales –Encourage/discourage practices –Attract patronage –Reduce dissonance –Create goodwill/favorable image

•Select medium •Design (encode) message .

Message Decisions •Images and text •Message framing •One-sided verus two-sided messages

•Order of presentation

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Images and Text (1 of 2) •Visual complexity –Feature complexity –Design complexity •Preference for words verus pictures varies Table7.1Preference for Text or Images Scale Items to Measure Preference of Processing in Words versus Pictures 1.I enjoying doing work that requires the use of words. (W) 2.There are some special times in my life that I like to relive by mentally “picturing” just how everything looked. (P) .

Images and Text (2 of 2) Table 7.1 [Continued] 3.I can never seem to find the right word when I need it. (P) 4.I do a lot of reading. (W) 5.When I’m trying to learn something new, I’d rather watch a

demonstration than read how to do it. (P) 6.I think I often use words in the wrong way. (P) 7.I enjoy learning new words. (W) 8.I like to picture how I could fix up my apartment or a room if I could buy anything I wanted. (P) 9.I often make written notes to myself. (W) P = pictures W = words .

Message Framing Discussion Question: When should a marketer use positive message framing?

Negative message framing?

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One-verus Two-Sided Messages

Source: ©2018 The Clorox Pet Products Company. Reprinted with permission. .

Native Advertising •Designed to blend in with editorial content • Podcasts • Advertorials

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Order Effects Discussion Question: When should marketers rely on the primacy effect? When should they rely on the recency effect?

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Learning Objective 7.4 7.4 To understand the effectiveness and limitations of prominent advertising appeals.

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Need for Cognition (NFC) Defined A personality trait that reflects a person’s craving for or enjoyment of thinking

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Comparative Ads •Promotion verus Prevention-focused •Reasonable factual evidence

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Fear Appeals •When do they work?

•When are they unlikely to work?

Source: Sojourner Family Peace Center .

Guidelines for Fear Appeals 1.Understand reaction and previous experiences 2.Beware the boomerang effect

3.Behavior change long and complex process 4.Study relationship with action and anxiety

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5.Determine whether rational or emotional fear appeal 6.Repeat advertising over the long term 7.Accept that some addicts may not respond 8.Consider alternatives

Humor Appeals What are some key findings related to the effectiveness of humor appeals?

Source: Mercedes-Benz USA, LLC .

Sex Appeals •Sexual self-schema •Sensation seeking

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Timely Appeals Table7.2 Timely Appeals Objective Campaign Theme Humor: “We love Chase and not just because they have a million dollars.”

Restore confidence in banks

Make people feel good during down economic times

Attract consumers who became more sensible

Happiness: Bank of America: “Bank of opportunity”; Coca Cola: “Open happiness”; Western Union: “Yes”; Ads for a Broadway show promise “a happy moment” during “challenging times” and promises better times ahead.

Advertising so products seem affordable and sensible rather than indulgent and fabulous. Not appealing to conspicuousness or status.

Avoiding aspirational advertising.

Initially, an ad for an NYC condo proclaimed “not just an address, it’s an attitude,” and showed beautiful young people dining out or shooting pool. During the economic downturn, new marketing materials promise, “clean styling and attractive pricing,” and feature a child reaching for a juice box at a local market and an older gentleman leaving the building with his dog.

Attract buyers who feel uncomfortable about buying real estate

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Learning Objective 7.5 7.5 To understand how to measure the effectiveness of advertising messages.

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Measuring Feedback •Interpersonal communications →immediate feedback •How are sales effects different from persuasion effects?

•How are persuasion effects different from media exposure effects?

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Measure Emotional Appeals •Physiological measures • Self-reports •Symbolic measures

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Copyright

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Consumer Behavior Twelfth Edition

Chapter 8 From Print and Broadcast to Social Media and Mobile Advertising Slides in this presentation contain hyperlinks.

JAWS users should be able to get a list of links by using INSERT+F7

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Learning Objectives 8.1To understandconsumer behavior and engagement with social media.

8.2To understand advertising channels and promotional strategies on social media.

8.3To understand the dynamics and potential of mobile advertising.

8.4 To understand audience measurement and media reach.

8.5 To understand technology’s impact on traditional broadcast media.

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Learning Objective 8.1 8.1 To understand consumer behavior and engagement with social media.

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Social Media Defined Means of interactions among people in which they create, share, and exchange information and ideas in virtual communities and networks.

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Total Reach of Social Media

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Reach by Age

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Mobile Advertising Defined Sending promotional messages to consumers’ cell phones, iPads, electronic readers, and other devices that people carry while on the go

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The Marketing Mix Table 8.1 The Impact of Social and Mobile Media on the Marketing Mix Blank Product

Price

Place or distributio n

Promotion

Impact of Social Media Marketers engaged in product development use crowdsourcing to pull together various aspects of the marketing mix for a brand. Mobile marketers have developed a number of new products aimed at smartphone users.

Example(s) The company Quirky.com used social media to choose the best products to bring to market and then leveraged the knowledge of the crowd to develop the marketing strategy. Angry Birds, Snapchat, and Instagram are all products developed specifically for mobile devices.

Prices of products are transparent online, deal sites influence consumers’ perceptions of price and value, and consumers use mobile devices to seek out lower prices.

Groupon’s original discounts of 50% appealed to highly dealprone consumers who often failed to repeat purchase at the regular price. Best Buy created its own shelf tags for consumers to use with mobile devices to help limit the need to search for lower prices on their mobile phones. Marketers can set up stores

Marketers can now distribute Products via social media , and social media sites drive traffic to marketer websites and brick and mortar retailers.

People can also buy digital products on their phones or tablets any time when they are wirelessly connected.

Many aspects of promotion have been influenced by social media and mobile marketing. For example, brands can build awareness, encourage engagement, provide product information, and drive purchase behavior.

on Facebook.com, and traffic from Pinterest can be a strong sales generator for particular brands.

Fandango’s mobile app sells movie tickets via mobile. The service is useful when people are out and about, and decide to see a movie.

Consumers communicate about products and services on social media sites, and this type of word of mouth can strongly influence purchase as consumers continue to deny that traditional advertising influences them . McDonald’s uses Snapchat to communicate with its young mobile customers.

Source: Social Media and Mobile Marketing Strategy by Priluck, Randi. (2016). By permission of Oxford University Press, USA.

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Individuals and Networks • Profiles • Friends • Groups

•Social networks •Opt-ins and optouts

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Apps Defined Chunks of software –installed on one’s computer, tablet, or smartphone –that are gateways to games, online resources, and social networking

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Permissions Sought by Apps •Basic permissions •Users’ permissions •Friends’ permissions

•Sensitive information requests

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Consumer Engagement •Sharing information with others •Convenience and entertainment •Passing time

•Interpersonal relations •Promoting one’s self •Bonding and social capital

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Engagement Strategies Table 8.2 Enhancing Consumer Engagement Platform lnstagram

Pinterest

YouTube

Facebook

Method of Engagement European lnstagram users uploaded their own photos of the Ford Fiesta with the hashtag #Fiestagram on lnstagram and the global Ford Fiesta Facebook page. Judges chose the best photos as winners and gave out small prizes.

Elephantine is a jewelry brand on the popular art product site Etsy. Rachel Ball, the owner, increased traffic by Pinning her new products to her Pinterest boards when listing them for sale at Etsy.

Activision, the manufacturer of video games such as Call of Duty, Destiny, and Skylander, uses YouTube to engage and entertain its audience.

One of the first Facebook Timeline campaigns ran in lsrael with the anti-drug message, “Drugs Set Your Timeline.” The campaign developed by McCann Erickson featured a fictional drug addict Adam Barak and his dual lives as a drug addict and non-addict in a split-section design.

Results People posted 16,000 photos and Ford earned 120,000 new Facebook fans in Europe.

Since using Pinterest, Rachel’s average weekly page views grew 22% and weekly sales increased 20%.

Activision became the leading gaming video franchise on YouTube, with over 2 million subscribers to its channels and half a million video views.

In 8 days, the campaign earned 70,000 tweets, but was shut down by Facebook because it violated the terms of service.

Adam Barak used his own profile page for the visuals and presented fictitious scenes.

Source: Social Media and Mobile Marketing Strategy by Priluck, Randi. (2016). By permission of Oxford University Press, USA. .

Cognitive Learning Defined The premise that learning occurs in the form of sequential, mental processing of information when people face problems that the wish to resolve

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Promotional Goals Table 8.3 Promotional Goals in Social and Mobile Media Goals Awareness Trust

Education

Loyalty Persuasion

Remind

Brands Achieving Goals with Social and Mobile Strategies Hyundai created an iPhone driving app that ran on the giant screen in Times Square in New York City. People could control the onscreen car with their phones.

Procter & Gamble joined the BlogHer conference aimed at female bloggers to “engage with a group of smart women, who are consumers themselves.” The company Promoted Tide, Cover Girl, Pantene, Charmin, Bounty, and Downy among other brands. The purpose was to generate conversations for P&G brands by trusted influencers.

General Electric created the Six Second Science Fair. Participants use Vine to Create a short science video to share on Twitter with the hashtag #6secondsciencefair. The goal is to show GE’s leadership in technology with the slogan, “Follow as we explore the changing worlds of science and technology.”

The Apple Passbook loaded onto iPhones can hold loyalty card information from various vendors. Users simply download loyalty apps from the app store and Organize them with Passbook.

John Deere hired Chip Foose to design a tractor for a giveaway contest and supported the effort with YouTube videos, each with a clear call to action. “Win a classic 4020 tractor customized by the legendary Chip Foose!

Register to Win at your local dealer.” The videos received over 13,000 views in the first hour and thousands of people entered to win the tractor.

Ariel brand detergent set up an interactive glass installation in Central Station, Stockholm, Sweden, where users who were invited through Facebook could Control a robot to stain shirts. Later, the shirts were washed using Ariel Actilift and sent to the players’ homes.

Source:Social Media and Mobile Marketing Strategy by Priluck, Randi. (2016). By permission of Oxford University Press, USA. .

Learning Objective 8.2 8.2 To understand advertising channels and promotional strategies on social media.

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Social Media Ad Platforms Table 8.4 Social Media’s Advertising Platforms Medium Owned media

Ownership of the Content The company or the brand

Examples Websites and mobile sites, blogs on company platforms

Social media

The platform itself

Facebook, Twitter, Pinterest, Tumblr, and Instagram pages

Paid media

The company owns the content of the message, but the medium limits the f ormat.

Earned media

The content exists on various Platforms and is owned by its creators.

Issues The company owns and controls all content and data forever, but the platform does not have a natural audience to view it. Customers may be skeptical of company-sponsored content. There are costs associated with setting up and managing the technology.

These platforms have large audiences, but a brand does not own its posted content or the content posted by users. The platforms do not share data with companies and some are not accessible by outside programmers . Companies pay to develop content, but do not pay for media time directly.

Paid media have preexisting Audiences and companies can Television commercials, create Messages within the network’s parameters. magazine ads, banner Companies have to pay for both media time and content ads, preroll video ads, development. promoted tweets, billboards, and mobile banner ads Reviews, user-generated content, posted comments, blog posts, customer retweets, pins, photos, and viral videos

The company benefits from internet traffic that results in higher search engine rankings, but companies can’t control the content. The company pays to develop original content, but not for content created by others unless requested expressly by the firm.

Source:Social Media and Mobile Marketing Strategy by Priluck, Randi. (2016). By permission of Oxford University Press, USA. .

Owned Social Media Defined Messages sent by marketers and delivered to consumers via channels that the marketers control

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Paid Social Media Defined Messages sent via channels that are not owned by the marketers, who pay for using the channels

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Earned Social Media Defined Channels where consumers pass along messages about brands to one another

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Widely Used Social Media Platforms •Blogs and micro-blogs (e.g. Twitter) •Social networks (e.g. Facebook) •Widgets, games, apps

•Mobile phones

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Google •Web-search ads •Online display ads •Mobile advertising

•Search engine (organic results)

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Google’s Ad Revenues

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Advertising Strategies •Twitter messages from corporate bosses received

favorably •Train and empower employees to participate in social conversations with customers

•Complex and risky –Give up control of brand –Customer complaints

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Effective Tweeting Table 8.5 Effective Tweeting Illustrations Tweets’ Senders Whole Foods Supermarkets

Southwest Airlines

Best Buy

Number of Followers and Tweets’ Contents More than two million consumers receive recipes and answers to questions. A weekly Twitter chat among followers addresses such issues as holiday menu planning.

More than one million travelers receive promotional messages and stranded ones receive help.

Complaints are answered quickly. Tweets reflect the company’s casual and humorous culture, but not always; a social media crisis plan takes over the account during emergencies.

The account has about 40,000 followers. Qualified employees answer technological questions.

Tweets’ Writers One writer from the company’s main account, as well as individual accounts, created and handled by different stores.

A team of about 10 people from the company’s customer Relations department handles the account.

Several thousand employees, who have studied specific guidelines and enrolled via a site that verified their employment status, respond to customers’ questions.

Source:Based on Elizabeth Holmes, “Tweeting Without Fear, How Three Companies Have Built Their Twitter Strategies ” online.wsj.com, December 09, 2011. Wall Street Journal .

Effective Social Media •Planned together with traditional ads •Considers social media’s simultaneous reach of different audiences •Examines clicks on like or mine •Uses bosses to tweet •Has guidelines for employee social media

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Learning Objective 8.3 8.3 To understand they dynamics and potential of mobile advertising.

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Value from Mobile Devices •Monetary value •Convenience value •Emotional value

•Social value

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Promotional Tactics Figure 8.3 Age and Responses to Mobile Advertising

Source: Nielsen Insights, “Mobile Marketers Can Get Generational Clicks with Varied Engagement Tactics,” August 17, 2016. .

Search Advertising Defined Placing online advertisements on Web pages that show results from search engine queries

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Discussion Questions •What are the characteristics of mobile ads?

•What are the advantages of mobile advertising?

•What are the disadvantages?

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Learning Objective 8.4 8.4 To understand audience measurement and media reach

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Design Social Media Campaigns 1.Define objectives and strategic approaches.

2.Examine appropriateness of available platforms for achievement of objectives.

3.Produce the campaign’s content.

4.Examine the pricing models and set expenditures to achieve objectives.

5.Measure effectiveness.

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Analyzing Website Visits •Unique visitors

•Interaction rate

•Cost per unique visitor

• Actions

•Return visits

•Conversation-related measures

•Time spent

•Visitor demographics

•Page views

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Types of Twitter Users • Celebrities • Conversationalists • Spammers

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Google Analytics •Where visitors come from •Actions after landing at initial page •Geographic location and visit lengths

•Assignment into profiles/segmentation

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Media Exposure •Online fraud and unseen ads •Media exposure effects –How many consumers –Who received it •Time shifted viewing

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Learning Objective 8.5 8.5 To understand technology’s impact on traditional broadcast media

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Technology’s Impact Table 8.6 Enhancing Traditional Media Blank Television

Radio

Print

Outdoor

Social Media Run commercials on YouTube.

Announce social media contests on television.

Remind listeners about social media promotions.

Prompt a visit to a social media site with a radio ad.

Publish content on social media sites.

Encourage sharing of brand news with links to articles.

Use signage to encourage “check ins” on social media.

Create a social brand destination for

Mobile Advertising Produce interesting content in ads that people want to share.

Run ads on the social media sites of programs or television stars’ Twitter feeds.

Run radio spots on music streaming sites.

Encourage app downloads with radio spots.

Use QR codes in magazine ads.

Use print to encourage opt-in for SMS campaigns.

Offer games via billboards that drive store visits.

Use beacons to reach customers on their phones

customers to meet in real life.

Source:Social Media and Mobile Marketing Strategy by Priluck, Randi. (2016). By permission of Oxford University Press, USA. .

Interactive TV (iTV) Defined A medium that combines TV broadcasts and the interactivity of the internet

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Discussion Question What is branded content and how can it be used effectively?

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Copyright

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Consumer Behavior Twelfth Edition

Chapter 9 Reference Groups and Communities, Opinion Leaders, and Word-of-Mouth

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Learning Objectives 9.1To understandthe credibility and influence of reference groups.

9.2To understand the persuasive power of spokespersons, endorsers, celebrities, salespersons, vendors, and media.

9.3To understand the dynamics of opinion leadership and word-of-mouth.

9.4To understand word-of-mouth’s online prevalence, strategic applications, and perils.

9.5To understand how consumers adopt innovations over time.

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Personal Contacts are Credible

Source: Campbell Soup Company .

Reference Groups Defined Groups that serve as sources of comparison, influence, and norms for people’s opinions, values, and behaviors

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Culture Defined The collective values, customs, norms, arts, social institutions, and intellectual achievements of a particular society which express its principles, standards, and priorities.

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Learning Objective 9.1 9.1 To understand the credibility and influence of reference groups.

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Source Credibility Defined A source’s persuasive impact, stemming from its perceived expertise, trustworthiness, and believability.

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Source Types and Influence •Formal sources •Informal sources •Normative influence

•Comparative influence

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Reference Group Influence (1 of 2) • Membership group • Symbolic group Table 9.1 Group Membership and Type of Influence Blank Membership Group

Normative Influence High level of conformity to the standards of immediate membership

Comparative Influence Conformity to the standards of groups that the influenced aspires to join, and probably

groups, such as family and peers. The will. The two parties are one or two influencer and influenced belong to socioeconomic groups apart. The influenced same socioeconomic group and are and influencer probably know each other and both aware of the influence. are aware of the influence.

Symbolic Group

No significant influence. The influencer is outside the influenced reference group. The influenced are unaware of the unlikely influencers’ norms.

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High degree of influence, although the influenced know that they will never join the influencers. Socially, the parties are far apart, but the influencers recognize the degree of their influence.

Consumption-Related Reference Groups • Friends •Fellow shoppers •Virtual communities

•Advocacy groups

.

Conformity To influence its members, a reference group must: •Inform members that the brand or

product exists.

•Provide opportunity to compare thinking with the attitudes and behavior of the group.

•Influence individual to adopt attitudes and behavior that are consistent with the group’s norms.

•Legitimize the member’s decision to use the same products as other members.

.

Characteristics of Conformists 1.

2.

They feel that if someone is behaving in a certain way in a group, that it is the right way to behave.

They prefer wearing stylish clothing and they pay attention to what others are wearing.

3.

They try to fit in during social gatherings so as not to be out of place.

4.

They are guided by others’ behavior if they feel unsure how to behave in a situation.

They often behave in a manner they feel others want them to behave.

5.

6.

They change their mannerisms and approaches if they feel that someone they are interacting with disapproves of them.

They often pick up slang expressions from others and start using them.

7.

8.

They always pay close attention to others’ reactions to their behaviors. .

Reference Group Influence (2 of 2) •Group power • Product expertise • Product conspicuousness Table 9.2 Product Conspicuousness and Reference Group Influence

.

Learning Objective 9.2 9.2 To understand the persuasive power of spokespersons, endorsers, celebrities, salespersons, vendors, and media.

.

Conveying Company Credibility •Past performance •Good Reputation •Product Quality

•Good Service •Image and attractiveness of spokespersons •Reputation of retailers that carry offerings

•Media where they advertise

.

Institutional Advertising Defined Advertising that promotes a company’s overall image without referring to specific products.

.

Endorsers and Spokespersons •Synergy between endorser and type of product/service

advertised important •Endorsers with demographics similar to target audience more credible & persuasive

•Consumers must trust the marketer (even if they like the endorser) •Message contents must be congruent with spokesperson’s qualifications

.

Celebrities •Celebrity testimonials •Celebrity endorsements •Celebrity actors

•Celebrity spokespersons

.

Slice-Of-Life Commercials Defined Promotional messages showing typical consumers in everyday situations

.

Credibility •Salesperson credibility •Vendor credibility •Medium credibility

.

Learning Objective 9.3 9.3 To understand the dynamics of opinion leadership and word-of-mouth.

.

Opinion Leader Motivations Table 9.3 The Motivations of Opinion Leaders and Receivers Self-Involvement Opinion Leaders Reduce post-purchase dissonance Gain attention from others Show off expertise Experience “converting” others

Opinion Receivers Reduce perceived risk Reduce search and shopping time

Product Involvement Opinion Leaders Express satisfaction or complain about a product or service

Opinion Receivers Learn additional and more efficient ways to use products Learn about newly introduced products

Social Involvement Opinion Leaders Express friendship by providing others with consumption-related information .

Opinion Receivers Buy products that have the approval of others

Characteristics of Opinion Leaders • Knowledgeable in product category • Self-confident, outgoing, sociable • Read special-interest publications and websites

•Often same socioeconomic & age group as receivers 1.

I am usually the first one in my circle of friends to know about new technologies.

2.

I know more about technologies than most people.

3.

My opinions about technologies count with other people.

4.

When considering buying a new technological product, people turn to me for advice.

I often influence others’ opinions about technologies.

5.

6.

People know that I use the same products that I recommend.

7.

I often influence people to buy the same technological products that I like. .

Measuring Opinion Leadership •Self-designation

method

interactions •Identifying experts

•Online influence

.

•Social

Key Informants Defined Persons who are keenly knowledgeable about the nature of social communications among members of a specific group.

.

Learning Objective 9.4 9.4 To understand word-of-mouth’s online prevalence, strategic applications, and perils.

.

Social Networks Defined Virtual community where people share information about themselves with others, generally with similar interests, with whom they had established relationships that, for the most part, exist only in cyberspace.

.

Engagement in WOM •Tie strength • Similarity •Source credibility

.

Brand Community Defined An online community formed by consumers who share an attachment to a brand

.

Word-of-Mouth Online

.

Viral Advertising Defined A marketing technique that uses social networks to increase brand awareness by encouraging individuals to pass along online email messages or other contents.

.

Learning Objective 9.5 9.5 To understand how consumers adopt innovations over time.

.

Adopter Categories

.

Time to Reach Laggards • Nature of the group involved • Type of innovation decision required •Extent of marketing effort • Strength of felt need

•Compatibility with values • Relative advantage • Complexity • Observability • Ease of trial • Perceived Risk .

Risk Aversion • Reluctance to take risks •Low tolerance for ambiguity

1.

They always read and follow the manufacturers’ warnings about removing products’ tags and back plates and use products exactly as instructed by manufacturers.

2.

When it comes to medications (including over-the-counter products), they always obey the instructions on how to take the medicines and carefully read the restrictions and potential side effects.

3.

They feel reluctant to buy products that they have never used before.

4.

If products come in assembled or unassembled forms, they buy the assembled versions even if these are a bit more expensive.

They do not improvise when they cook and follow recipes fully.

5.

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Consumer Behavior Twelfth Edition

Chapter 10 The Family and Its Social Standing Slides in this presentation contain hyperlinks.

JAWS users should be able to get a list of links by using INSERT+F7

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Learning Objectives (1 of 2) 10.1To understand consumer socialization.

10.2To understand how families make purchase decisions.

10.3To understand the family life cycle.

10.4To understand the consumer behavior of nontraditional families and households.

10.5To understand the impact of social class on consumer behavior.

.

Learning Objectives (2 of 2) 10.6To understand the demographics, lifestyles, and consumption patterns of social classes.

10.7To understand how to employ geo-demographics to locate target markets.

.

Ads by Social Class Figure 10.1A Targeting the Upper Class

Source: ©2018 The Clorox Pet Products Company. Reprinted with permission/Photo courtesy of The Wade Brothers. www.thewadebrothers.com .

Figure 10.1BTargeting the Working Class

Source:©2018 The Clorox Pet Products Company. Reprinted with permission/Photo courtesy of The Wade Brothers. www.thewadebrothers.com

Learning Objective 10.1 10.1 To understand consumer socialization.

.

Consumer Socialization • Pre-adolescent –Observe parents and older siblings –Families more reliable than advertising • Teenagers –Peers most influential –Like products when parents disapprove

.

Two Way Process

.

Socialization Agents • Mothers stronger socialization agents than fathers

• Mothers usually: –more involved –control children’s exposure to commercial messages

–regulate spending

Source: Dr. Pepper Snapple Company .

Mothers’ Attitudes Table 10.1 Mothers’ Socialization-Related Attitudes Marketing Receptive The Balancer: Married. Career woman. Multitasks and teaches children to become good consumers.

Marketing Resistant The Protector: Highest income and education. Rational and teaches her children to shop and spend responsibly. Resents the influence of media on her children.

The Nurturer: Focused on her family and often The Struggler: Does not have the money to indulge sacrifices her her children’s own desires to meet the wants of her children. requests. Very price and value conscious shopper.

Trusts well-known companies and brands.

Views her life negatively.

The Diva: Self-focused and seeks acceptance from others. Is a conspicuous consumer. Views her children as part of her image and often gives in to children’s requests to make her life easier. .

The Stoic: Culturally and socially isolated. Views herself as a caretaker and homemaker. Loves her children but feels emotionally Distanced from them. Deliberates regarding purchases.

Parental Styles Figure 10.4 Parental Styles and Consumer Socialization

Source: Adapted from Kerrane, Ben, Shona, M. Bettany and Katy Kerrane. 2015.

“Siblings as Socialization Agents.” European Journal of Marketing 49(5): 713–735. .

Socialization as Learning (1 of 2)

.

Socialization as Learning (2 of 2)

.

Intergenerational Socialization •Socialization is ongoing •Skepticism increases over time but varies by demographics

•Preferences and loyalties are often transferred between generations

Source: Mothers Against Drunk Driving (MADD), USA .

Family's Supportive Roles •Economic well being •Emotional support •Families, media, and technology

.

“Average” Family Spending

.

Learning Objective 10.2 10.2 To understand how families make purchase decisions.

.

Husband-Wife Decisions •Husband-dominated decisions •Wife-dominated decisions •Joint decisions

•Autonomic decisions What affects the relative influence of a husband and wife on a particular consumer decision?

.

Children's Influence Tactics • Pressure • Exchange • Rational • Consultation • Ingratiation Table 10.2Children as Three Markets Children as Influencers Children request products and brands Examples: items for themselves such as toys, items for the home such as food and cars, items for other family members such as smartphones and laptops, services for the whole family such as Vacations

.

Children as Primary Market Children buy things with their own money

Children as Future Consumers

Examples: snacks, clothes, toys, games, movies, concerts, music, smartphones, online purchases

purchases: “When I grow up I will

Children contemplate future

buy myself . . . ” Examples: cars, houses, smartphones, etc.

Roles and Measurement • Gatekeepers

Example: Children in dual-

• Influencers

income households

• Deciders

• Deciders

• Buyers

• Buyers

• Preparers

• Preparers

• Users

• Maintainers

• Maintenance • Disposers .

Learning Objective 10.3 10.3 To understand the family life cycle.

.

Family Life Cycle • Bachelorhood • Honeymooners • Parenthood

• Post-parenthood • Dissolution

.

Which Life-Cycle Stage is Targeted?

Source: Permission to reproduce this image has been granted by DrewFrank Limited. .

Learning Objective 10.4 10.4 To understand the consumer behavior of nontraditional families and households.

.

Nontraditional Households

.

Targeting •Changes in consumption behavior •Advertising decisions –Recognize existence –Avoid alienating conservative traditional households

.

Taxonomy for Segmentation

.

Learning Objective 10.5 10.5 To understand the impact of social class on consumer behavior.

.

Social Class Defined Division of members of society into a hierarchy of distinct social classes so that members of each class have relatively the same status and members of all other classes have either higher or lower status.

.

What's My Social Class?

Social Class Consciousness Demographics How do material possessions relate to social status?

How does social comparison/social class affect consumption patterns?

.

10 Prestigious US Careers

.

10 Most Honest US Careers

.

10 Least Honest US Careers

.

Indices •Index of Status Characteristics (Warner’s ISC) •Socioeconomic Status Score (SES)

.

Learning Objective 10.6 10.6 To understand the demographics, lifestyles, and consumption patterns of social classes.

.

Measures •Subjective –estimate your social class • Objective – Occupation – Education – Income –Multivariable Index ▪Index of status characteristics ▪ Socioeconomic status score

.

Social Class Profiles •The Upper-Upper Class –Inherited wealth and Privilege •Nouveau Riche –Money is King •Upper-Middle Class –Achieving Professionals

•Lower-Middle Class –Faithful Followers •Upper-Lower Class –Security-Minded •The Working Poor –The Insecure

•The Underclass –Rock Bottom

.

Trickle-Down Effect Defined Originally applied to fashion, the concept states that members of lower classes adopt the fashions of the upper class and maintain them even after the upper class has abandoned these fashions, presumably because they are no longer exclusive to the upper class.

.

Affluent Households •Spending patterns

–Clothing, fashion and shopping –Saving, spending and credit card usage •Media consumption

Table 10.3 Key Trends from Tracking the Affluent from 1977 to 2016 The Democratization of Luxury A much broader segment of the population has access to luxury products and services.

The Abundance of Options There are many more options in the marketplace and media, which can lead to consumers feeling overwhelmed.

The Broadening of Tastes Affluent consumers have a wider variety of preferences in products and brands.

The Transformation of Technology Affluent consumers are traveling less for business due to new communication technologies and are using advanced technologies available in the current marketplace.

Source: Adapted from the Ipsos 40thAnnual Survey of the Affluent.

.

Learning Objective 10.7 10.7 To understand how to employ geo-demographics to locate target markets.

.

Geo-Demographic Segmentation •Combines socioeconomic and demographic factors •Every household belongs to one of 66 segments •Urban density and wealth

•Life stage •Product usage, media exposure, and other consumption factors

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Consumer Behavior Twelfth Edition

Chapter 11 Cultural Values and Consumer Behavior

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Learning Objectives 11.1Tounderstand culture’s dynamics and impact on consumer behavior.

11.2To understand cultural learning.

11.3To understand what it means to study cultural values.

11.4To understand core cultural values and their marketing applications.

.

Which Cultural Value? (1 of 2)

Source: Campbell Soup Company .

Which Cultural Value? (2 of 2)

Source: Campbell Soup Company .

Learning Objective 11.1 11.1 To understand culture’s dynamics and impact on consumer behavior.

.

“Levels” of Cultural Norms • Supranational • National • Group

At the supranational level, youth 14-24 segmented as: • In-crowd •Pop mavericks

•Networked intelligentsia •Thrill renegades

.

Culture and Marketing •Culture’s

continuous

evolution

•Cultural beliefs reflect societal needs

Source: United States Department of Transportation .

Learning Objective 11.2 11.2 To understand cultural learning.

.

Learning Cultural Values •Formal learning •Informal learning •Technical learning

•Enculturation (consumer socialization) versus. acculturation •Marketing’s influence

.

Language and Symbols •Verbal symbols •Nonverbal symbols – Product – Promotion – Price –Stores at which product is available

.

Ritual Defined A type of symbolic activity consisting of a series of steps (multiple behaviors) occurring in a fixed sequence and repeated periodically.

.

Ritualistic Behavior

.

Ritual Artifacts

.

Discussion Questions •What are some rituals (religious, educational, social) that

you have experienced?

•What artifacts or products were part of that ritual?

•How did marketers influence the choice of these artifacts?

.

Learning Objective 11.3 11.3 To understand the means to study cultural values.

.

Measuring Cultural Values •Content analysis •Field observation •Depth interviews

•Focus groups • Questionnaires

.

Rokeach Values Survey

.

World Values Survey •Traditional verus. Secular •Survival verus. Self-Expression

.

Gordon’s Survey Table 11.1 Marketing-Applicable Values from Gordon’s Inventory Personal Values

Social Values

Achievement: Enjoying challenge, growth, and accomplishment. Knowing what one wants to accomplish and doing so in an outstanding manner.

Leadership: Being in charge and having authority and power. Having others work under one’s direction.

Goal Orientation: Preferring to have welldefined objectives and completing tasks.

Knowing exactly what one is aiming for.

Recognition: Being looked up to, considered important, and admired. Having people make favorable remarks. Being noticed.

Variety: Disliking routines and preferring new experiences. Visiting new places.

Trying new and different things. Being able

Conformity: Doing the correct thing and following regulations. Doing what’s accepted and proper. Conforming strictly to rules and moral standards.

to travel. .

Learning Objective 11.4 11.4 To understand core cultural values and their marketing applications.

.

Criteria to Select Core Values •The value must be pervasive •The value must be enduring •The value must be related to consumption behavior

.

American Core Values •Achievement and Success •Time and Activity •Efficiency and Practicality • Progress • Materialism •Individualism and Conformity •Freedom of Choice • Humanitarianism • Youthfulness .

Humanitarianism Benefits to Donors: •Social-practical motivation

• Belongingness

• Prestige

• Trusting

.

Appeal to Progress and Humanitarianism

.

Americans’ Green Attitudes

How do your “Green” attitudes affect your purchase behavior? .

Green Behaviors

.

Three Types of “Green” Consumers •Environmental Activists •Organic Eaters • Economizers

.

Four Groups of “Green” Consumers •True Greens •Donor Greens •Learning Greens

• Non-Greens

.

Core Cultural Values (1 of 2) Core Cultural Values Definition Table 11.2 Working hard and excelling in Core Value of life. other aspects Achievement and Success

Promotional Appeals “Fact: Our car members experience more” “You’re worth it” “For people who are in the best shape they’ve ever been in but still aren’t satisfied”

Time and Activity

Being active and busy in one’s job and life and expanding one’s horizons.

“A new challenge daily—Wow, I’m so fortunate” “Prepare today, to lead for a lifetime”

Efficiency and Practicality

Saving time and effort and finding pragmatic products and solutions.

Less theory, more practice.

“The taste you want, the energy you need” “So easy, even an adult can open our container”

Progress

Seeking and adopting new processes that replace less advanced ones.

“One-step process to a better complexion” “Only 4 minutes to a great family meal”

Comfort and Pleasure

Accumulating possessions that enable a more comfortable and pleasurable life.

“Bring the family together: Create a great backyard” “Even more legroom”

.

Core Cultural Values (2 of 2) Individualism and Conformity

Individualism: Being yourself and marching to the “beat of your own drum,” as opposed to adhering to group norms and being the same as others.

Conformity: Desiring to fit in.

Individualism: “You answered to your own drum in college, now how about a challenging position for your career?”

Conformity: “Drive carefully” “Respect others” “Be included: Vote this November”

Freedom of Choice

Having freedom of choice and

“Almost more colors than hairs on your head”

expression.

“America is about choice”

Humanitarianism

Helping the less fortunate and people in need.

“No kid should go hungry” “We combat natural disasters with human kindness”

Youthfulness

Looking youthful and remaining “young at heart” despite aging chronologically.

“Never look your age again” “Be Young. It’s a state of open-mindedness”

Fitness and Health

Caring about one’s health and ability to be physically active.

Caring about the environment and buying “green” products.

“Relax—It’s the good fat” “Create your perfect body” Clorox Green Works cleaner—“Shockingly Powerful, Naturally” “Planet’s favorite hybrid”

Environmental Concerns

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Consumer Behavior Twelfth Edition

Chapter 12 Subcultures andConsumer Behavior

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Learning Objectives (1 of 2) 12.1To understand the subcultures and consumption globally and within the United States.

12.2To realize the influence of nationality and ethnicity subcultures on consumer behavior.

12.3 To understand the impact of religious affiliations on consumer behavior.

.

Learning Objectives (2 of 2) 12.4To know about the influence of geographic locations and regional characteristics on consumer behavior.

12.5To comprehend age and generational influences on consumer behavior.

12.6 To understand the influence of gender, gender identity, and sexual orientation on consumer behavior.

.

Example Ad

Source: Mothers Against Drunk Driving (MADD), USA .

Subculture Defined A group that shares certain beliefs, values, and customs, stemming from ethnicity, religion, geographic location, age or gender, while also being part of a larger society.

.

Learning Objective 12.1 12.1 To understand the subcultures and consumption globally and within the United States.

.

Society’s Cultural Profile Two elements: •Unique beliefs, values and customs •Central or core cultural values and customs

.

Primary Subcultures Nationality and Ethnicity •Hispanic, Chinese American Religion

•Jewish, Christian, Muslim Geography •Southern, Urban Generations •Millennials, Baby Boomers

Gender and Sexual Orientation •LGBT, Transgender

.

Discussion Questions •To which subcultures do you belong?

•How does it affect your consumer purchases?

.

Learning Objective 12.2 12.2 To realize the influence of nationality and ethnicity subcultures on consumer behavior.

.

Three Ethnic Subcultures 1.Latino Americans (aka Hispanic Americans) 2.African Americans 3.Asian Americans

.

Latino (Hispanic) Consumers •Growing population –53% of foreign-born U.S. citizens –30% of the U.S. population by 2050: 133 million) •Purchasing power of $1.2 trillion in 2011 •Young with large families •77% of Latino Americans live in 7 states •12 distinct Hispanic subgroups •Loyal to name brands and smaller stores

.

African American Consumers •Population of U.S. includes 42 million African American

persons; 70 million by 2050 •Purchasing power of $1 trillion •Young →50% less than 35 years old •Prefer leading brands over private-label brands/ brand loyal •Spend more then other segments on hair, clothing and telephone services

.

Asian American Consumers •U.S. Population includes 21 million Asian Americans •Fastest growing American minority •Diverse group including 6 major ethnicities: Chinese, Filipino, Indian, Vietnamese, Korean, and Japanese •95% live in metropolitan areas •Business ownership and educational attainment are high

.

Educational Attainment Figure 12.5A Educational Attainment of All Americans

Figure 12.5BEducational Attainment of Asian Americans

Source: US Census Bureau, 2010 Population Census, Population AsianAmericans, issued 2012

Source:US Census Bureau, 2010 Population Census, Population Asian-Americans, issued 2012

.

Learning Objective 12.3 12.3 To understand the impact of religious affiliations on consumer behavior.

.

Religious Affiliation Defined A subculture that is based on identification with a religious or faith based group.

.

Religion and Consumer Behavior •Jewish consumers –dietary laws •Muslim consumers -Halal

.

Learning Objective 12.4 12.4 To understand the influence of geographic locations and regional characteristics on consumer behavior.

.

Geographic Subcultures Defined A subculture that is based on geographic locations and differences in consumer behavior based on lifestyle differences because of living in that location

.

Learning Objective 12.5 12.5 To comprehend age and generational influences on consumer behavior.

.

Generational Subcultures

.

Generation Z •Also known as Digital Natives or the Homeland

Generation •Highly connected •Most are children of Generation X •Most diverse American generation ever •Expected to earn less than their parents

.

Teens and Tweens •Fickle customers and changing lifestyles •Teens –develop characteristics and behaviors of adulthood; brand skeptical •Tweens share many traits with younger siblings; brand loyal •Technology at center of both groups’ lives •Buy from social media; prefer Snapchat to Facebook

.

Millennials •Embrace technology • Confident •Want fast product turnover, personally relevant promotions and interactive marketing platforms

Source: Glyde Corporation .

Six Segments of Millenials • Hip-ennials •Millenial Moms • Anti-Millenials

•Gadget Gurus •Clean and Green Millenials •Old-School Millenials

.

Millennials Online Percentages

.

Generation X •Spending power > $1

trillion •Cynical; do not like to be singled out/ marketed to •Do not like labels •Purchase prestigious and pricey brands •Oppose insincerity

.

Baby Boomers •> 40% of the U.S. adult population •Consumption oriented and influential •65-75% of disposable income in the U.S. •Want to look and feel young

•Yuppies = status brand consumers

.

Retirement Segments Table 12.1 Retirement Segments and Marketing Opportunities Retirement Segments Unrewarded: People electing to retire “after unrewarding careers” often look forward to retiring.

They view it as a fresh start and are inspired by the opportunity to pursue activities and interests that they could not pursue while working. Nevertheless, they may need some help in deciding to what to pursue.

Marketing Opportunities Retirees are receptive to professional postretirement counseling Services (e.g., local YMCA or colleges/universities) offering Programs for “adjusting to” and “making discoveries” as to Postretirement living.

They respond positively to advice and training associated with selecting hobbies, travel, and nondegree coursework.

Mixed Feelings: People retiring after satisfying careers have strong mixed feeling about retirement. On the one hand, they are not euphoric about leaving their jobs, but at the same time, they look forward to devoting more time to leisure pursuits.

Retirees seek and respond to advice as to how they can deal with lifestyle issues: travel, nondegree or degree coursework in Educational institutions. They travel, and attend seminars designed to provide guidance in selecting appropriate hobbies and enriching adult education courses.

Resentful:People who are forced to retire (e.g., mandatory retirement at a fixed age) often see leaving their careers as losing their self-esteem or identity.

Retirees would benefit from counseling as to the pros and cons of various retirement options, including many of the ones mentioned earlier.

Slowing Down:These people see retirement as the beginning of old age and a time to slow down.

These retirees have already arranged life after retirement. They would benefit from training sessions for retiring employees designed to help them adjust and replace work with leisure activities.

Source:Christopher D. Hopkins, Catherine A. Roster, and Charles M. Wood, “Making the Transition to Retirement: Appraisals, Post-Transition Lifestyle, and Changes in Consumption Patterns,” Journal of Consumer Marketing, Vol. 23 (2) (2006): 89–101. .

Older Consumers •Cognitive age –Feel age –Look age –Do age –Interest age •Chronological age categories •New-age elderly

.

Marketing to Older Consumers •Promotional appeals

–Promote the right products –Use the right appeals – Focus on the future –Use emotional appeals

•Older people and technology

.

Discussion Question •How might the three senior segments differ in their

consumption of food products?

•How might a marketer of a food product market differently to the three subgroups?

•How might cognitive age affect the consumption of food products? Explain.

.

Learning Objective 12.6 12.6 To understand the influence of gender, gender identity, and sexual orientation on consumer behavior.

.

Men verus Women Men •Superior affect and purchase intentions as a result of ads that are comparative, simple and attribute-oriented.

•Less loyal to local merchants than female counterparts.

.

Women •Superior affect and purchase intentions as a result of ads that are verbal, harmonious, complex and category oriented.

•Shopping motives – Uniqueness –Assortment seeking –Social interaction – Browsing

Role of Gender •Consumer products and sex roles •Depictions of women in media and advertising •Working women –Stay-at-home housewives –Plan-to-work housewives –Just-a-job working women –Career-oriented working women

.

Segmenting Working Women (1 of 3) The Independent

• Single, 28 to 34 years old, with a median income of $33,200 and a college degree.

• Busy building her career and loves it. Puts off marriage and having kids because she does not want to have obligations to others.

Does not believe in being settled by the time she’s 25.

•

• Likes to work late, go out late, and come and go as she pleases.

• Views weddings more as parties than as an obligatory step toward building a family, and may even have a child before marriage.

Fashion is an indication of her success. She aspires to buy luxury brands across • categories such as travel, clothes, jewelry, and automobiles (e.g., Chanel, Prada, Ritz-

Carlton, and BMW). Yet, she loves to shop for bargains.

Considers her virtual image as important as her real-world one. Heavy social media • user, mostly via mobile devices. .

Segmenting Working Women (2 of 3) The Mom Achiever •Working mother, 35 to 45 years old, with a median income of $75,000.

• Highly driven, has advanced degrees, and earned executive jobs.

• Applies her professional knowledge and ethics to being a mom.

• Has a hard time leaving her job behind (can’t wait to get back to work on Monday).

•Would choose a 50% pay raise over 50% more time with her kids.

• Spends a lot of money on herself, mostly on prestige beauty products and services.

Most influenced by online reviews in deciding what to buy.

•

Spends little time on research before buying high-end products, but is also thrifty and

looks for discount websites.

.

Segmenting Working Women (3 of 3) The Alpha Goddess •Working mother, 55 to 64 years old, with a median income of $69,000.

• “With age comes wisdom.” Knows what she wants and has the resources to get it.

• Loves to lavish gifts on her family, but her top purchases are for herself (e.g., luxury cars, travel, prescription drugs).

•

Buys expensive fragrances and is influenced by celebrity endorsements.

•

Confident in her relationships. Whether married, widowed, divorced, or never married, she does not view a single life as a stigma.

•

Very receptive to new technologies, especially smartphones. Some use online sources to find dates and new relationships.

•Watches more TV than other age groups, but is not a captive audience. While watching TV, she shops online, texts, or reads books and magazines.

• Unlikely to compromise on either love or sexual attractiveness in order to have a committed relationship. .

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Consumer Behavior Twelfth Edition

Chapter 13 Cross-Cultural Consumer Behavior: An International Perspective

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Learning Objectives (1 of 2) 13.1To understand how cultural values and customs

impact the buying patterns of consumers in other countries.

13.2To understand how to research the cultures of consumers in other countries.

13.3 To understand localization and standardization of products and promotions.

.

Learning Objectives (2 of 2) 13.4Tounderstand how to evaluate global marketing prospects.

13.5 To understand the applications of psychographics in targeting consumers in other countries.

.

Chinese Brand Names

Source: Michele and Tom Grimm/AlamyStock Photo .

Source: StockSigns/AlamyStock Photo

Learning Objective 13.1 13.1 To understand how cultural values and customs impact the buying patterns of consumers in other countries.

.

Global Brands (1 of 2) Defined Global brands are brands that hold significant market share in their home country as well as other countries.

.

Global Image •Apple –not about products; it is a kind of thinking, a set

of values, and human touch •Disney –cast members help provide safe, courteous, efficient experiences

•Coca-Cola –nostalgia and fun, freedom, refreshment

.

Global Brands (2 of 2) • Characteristics –Quality Signal –Global Myth –Social Responsibility

•Intracountry consumer segments –Global Citizens –Global Dreamers – Antiglobals –Global Agnostics

.

Learning Objective 13.2 13.2 To understand how to research the cultures of consumers in other countries.

.

Cross-Cultural Analysis Defined A form of marketing research that examines the differences and similarities among consumers in different countries.

.

Consumer Styles

.

Measures of Cross-Cultural Aspects (1 of 3) •Product quality judgments •Willingness to buy products • Ethnocentrism

•Perceptions of consumption culture • Acculturation •Ethnic self-identification

•National self-identification

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Measures of Cross-Cultural Aspects (2 of 3) Attitudes toward local and global products (Agree/Disagree) • Entertainment – e.g. I enjoy entertainment that I think is popular in many countries around the world more than traditional entertainment that is popular in my own country.

• Furnishings – e.g. I prefer to have home furnishings that are traditional in my country rather than furnishings that I think are popular in many countries around the world.

• Food – e.g. I enjoy foods that I think are popular in many countries around the world more than my own country’s traditional foods.

• Lifestyles – e.g. I prefer to have a lifestyle that is traditional in my own country rather than one that I think is similar to the lifestyle of consumers in many countries around the world.

• Brands – e.g. I prefer to buy brands that I think are bought by consumers in many countries around the world rather than local brands that are sold only in my country. .

Measures of Cross-Cultural Aspects (3 of 3) • Independence

• Masculinity

• Interdependence

•Gender equality

• Power

• Tradition

•Social inequality

• Prudence

•Risk aversion

• Ethnocentrism

•Ambiguity tolerance

• Innovativeness

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Acculturation Defined Learning a new culture.

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Acculturation: Dual Learning Process 1.Marketers learn everything relevant about the

product/product category in the chosen market 2.Marketers must persuade/teach members of the chosen market to change traditional ways of doing things and adopt the new product

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Consumer Research Difficulties •Large, non-family gatherings banned in some countries •Limited information in some countries •Measurement scales

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Learning Objective 13.3 13.3 To understand localization and standardization of products and promotions.

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Global Marketing Strategy Defined Selling the same product using the same positioning and communication approach globally.

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Customization Examples •Oakley Sunglasses for Chinese people • McDonald’s –Japan: Corn soup and green tea milkshakes –Sweden: Softer design and woodcut packaging –France: McBaguette –Philippines: Rice and spaghetti as side dishes •Burger King black burgers in Japan

•Starbucks coffee in Europe

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Linguistic Barriers •General Motors –Chevy Runs Deep →Find New Roads –Nova “No Go” (Spanish) →Caribe •Parker Pens (Mexico): “It won’t leak in your pocket and make you pregnant” •Vicks cough drops (Germany): sexual penetration •Pepsi (Taiwan): bring ancestors back from the dead

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Promotional Appeals •Humorous advertising: UK verus Greece •Sexual appeals: –Western country verus Muslim or Buddhist countries –South Asian cultures verus the U.S. •Collectivist verus individualistic ad appeals •Comparative advertising – Self-construal –Need for cognition

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Learning Objective 13.4 13.4 To understand how to evaluate global marketing prospects.

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Reasons to Pursue Global Markets •Multinational fever –attractive multinational markets,

products, or services •Overseas markets offer future growth when home markets mature

•Consumers around the globe eager to try “foreign” products

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Spending Power

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Growth in Expenditures

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Clothing, Footwear, Personal Care

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Brand Share (1 of 2) Table 13.1 The Top Ten Shampoo Brands in Four Global Markets Rank

United States Marketer

1

Procter & Gamble

2

P&G

3

Unilever

4

L’Oréal

5

P&G

6

Unilever

7

7 Unilever

8

Johnson & Johnson

9 10

United States Brand Head & Shoulders (14.8%) Pantene (12.2%) Suave (12%) Garnier (7.6%) Clairol (6.7%) TRESemmé

Dove Neutrogena Organix

Vogue

L’Oréal Paris

L’Oréal

.

China Marketer

China Brand

Procter & Gamble

Head & Shoulders (18.5%)

P&G

Rejoice (13.5%)

P&G

Pantene (9%)

Unilever

Clear (6.6%)

Unilever

Lux (5.6%)

Beiersdorf AG

Slek

Jiangsu Longliqi

Longliqi

Unilever

La

International AG & Co KGaA

Fang

Dove

Henkel

La Fang Syoss

Brand Share (2 of 2) Table 13.1 [continued] Rank 1 2 3 4 5 6

7 8 9 10

Germany Marketer Henkel AG & Co KGaA

Germany Brand Schwarzkopf (17.9%)

P&G

Pantene (9.6%)

L’Oréal

L’Oréal Paris (7.4%)

Unilever

Unilever Dove (6.7%)

Beiersdorf AG

Nivea (6.5%)

Kao Corp

Guhl

P&G

Head &Shoulders

L’Oréal

Garnier

Johnson & Johnson

Terzolin

P&G

Clairol

Brazil Marketer

Brazil Brand

Unilever

Sunsilk (19.9%)

Unilever

Clear (10.2%)

L’Oréal

L’Oréal Paris (8%)

L’Oréal

Garnier (8%)

Colgate-Palmolive Co.

Pantene

P&G

Pantene

Unilever

TRESemmé

Unilever

Dove

Niely do Brasil

Niely Gold

Natura Cosméticos SA

Natura

Note: Brands’ market shares (in percentages) from Euromonitor International are available for the top five brands (to lower-tier subsciptions to the service). .

Learning Objective 13.5 13.5 To understand the applications of psychographics in targeting consumers in other countries.

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Global Millennials 1 planet’s population) •1.7 billion people ( 4 •Similar interests, desires and consumption behavior •Global Teens •Middle Class

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Psychographic Segmentation

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Six Global Value Groups • Strivers • Devouts • Altruists

• Intimates •Fun Seekers • Creatives Discussion Question: How do you think these global values affect consumption behavior?

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Copyright

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Consumer Behavior Twelfth Edition

Chapter 14 Consumer Decision-Making and Diffusion of Innovations

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Learning Objectives 14.1 To understand the consumer decision-making process and consumer decision journey.

14.2 To understand the dynamics of buying gifts.

14.3 To understand how new products gain acceptance and how individuals decide whether or not to adopt them.

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Consumer Decision Making

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Consumer Journey Defined The consumer journey is the newest way of describing the stages consumers pass through as they develop relationships with brands before, during, and after purchase.

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Learning Objective 14.1 14.1 To understand the consumer decision-making process and consumer decision journey.

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Input: External Influences •Marketing mix •Sociocultural influences – Family – Peers –Social class –Reference groups – Culture/subculture

• Communications

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Process: Need Recognition •Actual state need recognition •Desired state need recognition Discussion Question:

Provide an example of when you experienced actual state need recognition. Provide an example of when you experienced desired state need recognition. How did you respond to each need?

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Decision Spectrum •Extensive Problem Solving –A lot of information needed –Must establish a set of criteria for evaluation •Limited Problem Solving –Criteria for evaluation established –Fine tuning with additional information •Routinized Response Behavior –Usually make decisions based on what they already know –Frequent, low risk purchases .

Extensive Problem Solving verus. Routinized Response Behavior

Source: Gemological Institute of America .

Source: Pfizer, Inc.

Consumer Involvement Defined The degree of personal relevance that the product or purchase holds for the consumer.

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Pre-Purchase Search •Personal experience and external information •Memory Search •Shopping provides external information –Men and women are different –Seek opinions of friends (e.g. shopping selfies) •Search greatest when product category knowledge is low •Cognitive challenge may limit search

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Information Search: Contextual Factors •Task complexity •Information organization •Time constraints Consumers have limited information-processing capacity

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Factors That Increase Search (1 of 2) Product Factors Long periods of time between successive purchases Frequent changes in product styling

Frequent price changes Volume purchasing (large number of units) High price

Many alternative brands Much variation in features

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Factors That Increase Search (2 of 2) Situational Factors

Experience: First-time purchase; no past experience because the product is new; unsatisfactory past experience within the product category Social Acceptability: The purchase is for a gift; the product is socially visible Value-Related Considerations:The purchase is discretionary rather than necessary; all alternatives have both desirable and undesirable consequences; family members disagree on product requirements or evaluation of alternatives; product usage deviates from important reference groups; the purchase involves ecological considerations; many sources of conflicting information.

Consumer Factors

Demographics: Education, income, occupation, age, wealth, and marital status Personality Traits: One’s degree of dogmatism, willingness to accept risk, product involvement, and novelty seeking

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Evaluation of Alternatives: Brand-Sets •Evoked set

(consideration set) •Inept set •Inert set

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Excluded Products Include •Unknown brands or models •Unacceptable brands of poor quality or inappropriate positioning •Brands that are perceived as not having special benefits •Overlooked brands that have not been clearly positioned •Brands that do not satisfy perceived needs

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Evaluation of Alternatives: Attributes •Product attribute examples – Size – Weight – Sweetness – Color – Packaging •Criteria to assess product may be advertised

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•Price less important when products are “right” •Brand credibility is affected by –Perceived quality –Information costs saved –Perceived risk

Decision Rules Compensatory decision rules •Each relevant attribute weighted •Summated score for each brand Noncompensatory decision rules • Conjunctive • Lexicographic • Disjunctive Affect Referral –no assessment of individual attributes

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Recognition Heuristic Defined Consumers choose the most familiar product or brand

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Application of Decision Rules Table 14.1 Applying the Decision Rules to Downloading Smartphone Apps Decision Rule Compensatory

Rationale “I selected the smartphone app that came out as the best when I balanced the good ratings against the bad ratings.”

“I selected the smartphone app that had no bad features.”

Conjunctive Disjunctive Lexicographic

“I picked the smartphone app that excelled in at least one attribute.”

“I chose the smartphone app that scored the best on the attribute that I consider to be the most important.”

“I bought the smartphone app with the highest overall rating.”

Affect referral

“I downloaded the smartphone app that seemed familiar.”

Recognition

“I downloaded the smartphone app that had the most downloads.”

Majority Vote

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Segmentation by Shopping Strategy •Practical Loyalists •Bottom-Line Price Shoppers •Opportunistic Switchers

•Deal Hunters

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Coping with Incomplete Information •Delay the decision until information is obtained •Ignore missing information •Change the decision strategy to accommodate missing information •“Construct” the missing information

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Decision Making: Output Three types of outputs: • Trial •Repeat purchase/brand loyalty

•Post-purchase evaluation –Positive/negative disconfirmation of expectations –Cognitive dissonance •Discussion Question: How do consumers cope with cognitive dissonance?

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Learning Objective 14.2 14.2 To understand the dynamics of buying gifts.

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Gifting Behavior Defined A gift exchange that takes place between a giver and a recipient. The definition is broad in nature and embraces gifts given voluntarily, gifts that are an obligation, gifts given to (and received from) others and gifts to oneself (“selfgifts”).

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Types of Gifting •Intergroup Gifting •Intercategory Gifting •Intragroup Gifting

•Intrapersonal Gifting Discussion Question: • What questions might one ask during the gifting process?

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Learning Objective 14.3 14.3 To understand how new products gain acceptance and how individuals decide whether or not to adopt them.

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Diffusion of Innovations(1 of 2) Defined The framework for exploring the evolution of consumers’ acceptance of new products throughout the social system.

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Diffusion of Innovations(2 of 2) The process includes four elements: •The innovation •The channels of communication

•The social system • Time

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Innovation Adoption Process Defined Focuses on the stages through which an individual consumer passes when deciding to accept or reject a new product.

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Types of Innovations •Continuous innovation •Dynamically continuous innovation •Discontinuous innovation

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Product Features That Affect Adoption •Relative Advantage • Compatibility • Complexity –Technical fear most widespread concern of innovators –Rapid obsolescence, social rejection and physical harm are other fears • Trial-ability

•Observability (communicability)

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Encourages Trial

Source: Tempur Sealy International, Inc.

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The Adoption Process • Awareness • Interest • Evaluation

• Trial • Adoption •Discussion Question: What is missing from the model of Consumer Adoption?

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Copyright

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Consumer Behavior Twelfth Edition

Chapter 15 Marketers’ Ethics and Social Responsibility

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Learning Objectives (1 of 2) 15.1To understand the importance of marketing ethics and social responsibility.

15.2To understand the wide-ranging abuse of consumers’ privacy.

15.3To understand how marketers exploit and manipulate children and others.

15.4 To understand the harm caused by misleading labels.

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Learning Objectives (2 of 2) 15.5To understand how marketers disguise advertisements.

15.6To understand the damage of false and misleading advertising.

15.7 To understand offensive communications.

15.8 To understand promoting socially beneficial causes.

15.9 To understand consumers’ ethical obligations.

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Learning Objective 15.1 15.1 To understand the importance of marketing ethics and social responsibility.

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Societal Marketing Concept Defined A premise that requires marketers to fulfill the needs of the target audience in ways that improve, preserve, and enhance society’s well-being, while also meeting their business objectives.

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Example: Fast Food Restaurants •Should serve foods that contain less fat and sugar •Marketers should not encourage overeating among young people

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Marketing Ethics Defined Moral principles designed to guide marketers’ behavior

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Learning Objective 15.2 15.2 To understand how marketers abuse consumers’ privacy and the measures that can stop such practices.

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Privacy Issues •Using Wi-Fi signals from smartphones to track

consumers in stores •Smartphone location data •Smart TVs • Facebook –Emotional contagion –Emotional suppression

–Manipulation of news feeds

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E-Score Defined A digital calculation of people’s buying power.

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Privacy Laws •Federal Trade Commission •Blocking tracking

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Discussion Questions (1 of 2) •Should online privacy by self-regulated or governed by legislation? Why or why not?

•Should stores be allowed to track your emotions and behavior using your smartphone? Why or why not?

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Learning Objective 15.3 15.3 To understand how marketers exploit and manipulate children.

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Consumer Socialization •Perceptual stage (3-7 years old) •Analytical stage (7-11 years old) •Reflective stage (11-16 years old) Discussion Question: At what point is it ethical for marketers to communicate with children? Does it depend on other factors besides age (e.g. socioeconomic status; product category)?

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Encouraging Overeating •Concern over link with obesity •Voluntary restrictions to avoid legislation •Online targeting may be unethical and illegal

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Packaging to Increase Consumption •Short, wide glasses

•Multiple offerings

•Clear candy jars

•Minimal variations in serving bowl size

•Transparent sandwich wrap

•Not tracking consumption

•Visible, aromatic food

•Large inventories

•Organized food presentation

•Bundling small packages

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Laws and Regulations •Children’s Advertising Review Unit (CARU) •Stimulus-response theory •Marketers routinely violate practices that are forbidden under federal or safe regulation

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Encouraging Overspending •Cold grocery stores •Moving displays to encourage wandering •Targeting online shoppers who have been drinking

•Designing foods that encourage overeating •Granting easy credit

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Learning Objective 15.4 15.4 To understand the harm caused by misleading labels.

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Nutritional Labeling

Source: Creator: Joe Brunelle. Project managers: Lily Mihalik and Diana Jou, University of California,Berkeley School of Journalism. .

Learning Objective 15.5 15.5 To understand how marketers disguise advertisements.

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Camouflaged Advertising •Context effects •Native advertising •Search engines

•Covert marketing

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Discussion Questions (2 of 2) •Do you think covert marketing is wrong?

•Why might others have a different opinion from you?

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Learning Objective 15.6 15.6 To understand the damage of false and misleading advertising.

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False or Misleading Advertising • Puffery •Truth-in-advertising laws •Deceptive advertising; FTC guidelines

•Corrective advertising •Promotional violations in drug marketing –Unsubstantiated effectiveness claims –Omitted risk information –Unsubstantiated superiority claims

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Learning Objective 15.7 15.7 To understand offensive communications.

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Offensive Marketing Examples •Anheuser-Busch: Bud Light “the perfect beer for

removing ‘no’ from your vocabulary for the night” •Blast by Colt 45: “cocktails on training wheels” •Four Loko: Fruit-flavored malt beverage with 12% alcohol and caffeine •National Mutual Insurance: “Boy” ad featured dead child •Groupon made fun of abused people in Tibet and endangered species

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Learning Objective 15.8 15.8 To understand promoting socially beneficial causes.

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Think before You Speak

Source: GLSEN, Inc. .

Advocating Beneficial Conduct

Source: Print advertisement created by the Vidal Partnership,United States for FEMA. .

Cause-Related Marketing Defined Firms contribute a portion of the revenues they receive from selling certain products to causes that are socially desirable and supported by the American public.

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Cause-Related Marketing Example

Source: The Hertz Corporation, a subsidiary of Hertz Global Holdings Inc. .

Shocking Images

Source: Children’s Defense Fund (CDF) .

Learning Objective 15.9 15.9 To understand consumers’ ethical obligations.

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Consumer Ethics •Consumer returns •Software piracy Discussion Question: Do you think creative consumer practices that avoid baggage fees and charge airlines falsely are ethical?

Why or why not?

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Copyright

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Consumer Behavior Twelfth Edition

Chapter 16 Consumer Research

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Learning Objectives 16.1To understandhow to conduct exploratory research and review secondary data.

16.2To understand the purpose and tools of qualitative research.

16.3To understand the purpose and tools of quantitative research.

16.4To understand how to combine qualitative and quantitative research, sampling, and data analysis.

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Consumer Research Process

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Learning Objective 16.1 16.1 To understand how to conduct exploratory research and review secondary data.

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Exploratory Research Defined An examination of resources and materials that had already been collected and can be of value to the research at hand and consists mostly of reviewing secondary data.

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Secondary Data (1 of 3) Defined Information that was gathered previously and not in the course of the study presently undertaken.

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Secondary Data (2 of 3) •Internal secondary data •External secondary data –Government secondary data – Periodicals –Syndicated market research –Consumer panels Discussion Question: What are the advantages and limitations of secondary data?

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Secondary Data (3 of 3) Advantages •May provide solution •Helps clarify and redefine objectives of the primary study •Helps identify difficulties that are likely to occur in full-scale study •Cheaper and quicker than primary data .

Limitations •Categorization of units may not match what researcher seeks •It may not be accurate; errors may have been made in data collection and/or analysis •Data could be out of date

Learning Objective 16.2 16.2 To understand the purpose and tools of qualitative research.

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Qualitative verus. Quantitative Research •Purpose: New ideas for products or promotional themes

→qualitative research (focus groups, depth interviews) •Purpose: Count number of consumers who match demographics or psychographics of target market → quantitative research (surveys, observational studies)

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Qualitative Research •Rejects idea that consumers are rational decision makers •Motivational researchers –consumers either unaware/unable to express motives •Small sample sizes –not generalizable to population •Ideal for initial ideas (promotional campaigns, products, positioning)

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Motivational Research Defined A “term of art” that refers to qualitative studies conducted

by Dr. Ernest Dichter in the 1950s and 1960, which were designed to uncover consumers’ subconscious or hidden motivations in the context of buying and consumption.

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Key Methods •Depth interview •Focus groups •Projective techniques

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Depth Interviews •Also called one-on-one interview •Usually 20 minutes to 1 hour • Nonstructured

•Interviewer will often probe to get more feedback (see following slide for probing) •Session is usually recorded

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Discussion Guide Defined A step-by-step outline that sets out the line of questioning the researcher needs to cover with the respondent in a depth interview, or a group of respondents in the case of a focus

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Focus Groups •8-10 participants •Respondents are recruited through a screener questionnaire •Lasts about 2 hours •Always taped or videotaped to assist analysis •Often held in front of two-way mirrors •Online focus groups are growing

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Projective Techniques •Unconscious associations •Ambiguous stimuli •Underlying motives projected onto stimuli

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Learning Objective 16.3 16.3 To understand the purpose and tools of quantitative research.

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Quantitative Research •Acceptance of products, brands, promotional messages •Capture satisfaction/unmet needs •Predict future needs or behavior

•Experimentation, surveys, observation •Descriptive and empirical; can be generalized if appropriate sample

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Validity Defined A measure has validity if it does, in fact, collect appropriate data needed to answer the questions or objectives stated in the first (objectives) stage of the research process.

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Reliability Defined A measure has reliability if the same questions, asked of a similar sample, produce the same findings.

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Observational Research •Human observation •Mechanical observation •Physiological observation

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Causal Research •Relative sales of many types of variables •Test marketing •Lab experiments

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Discussion Questions •What might direct marketers test in experiments?

•How can they use the results?

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Surveys •Personal interview surveys •Telephone surveys •Mail surveys

•Email surveys •Internet surveys

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Contacting Respondents Table 16.1 Contacting Respondents Online

Blank

Mail

Cost

Low

Telephone Personal Interview High Moderate

Speed

Slow

Immediate

Slow

Fast

Response Rate

Low

Moderate

High

Self-selected

Geographic Flexibility

Excellent Good

Difficult

Excellent

Interviewer Bias

N/A

Interviewer Supervision N/A

.

Moderate Easy

Low

Problematic N/A Difficult

N/A

Questionnaires •Open-ended questions •Closed-ended questions • Considerations –Avoid leading questions –Avoid two questions in one –Questions must be clear –Use words that consumers routinely use –Ensure respondents can answer the question –Ensure respondents are willing to answer the question –Questions’ sequence .

Attitude Measures •Likert scales •Semantic differential scales •Behavior intention scale

•Rank order scales

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Customer Satisfaction •Customer satisfaction surveys •Mystery shoppers •Complaint analysis

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Learning Objective 16.4 16.4 To understand how to combine qualitative and quantitative research, sampling, and data analysis.

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Sample Defined A presumably representative subset of the population under study that is used to estimate the entire population’s characteristics.

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Sampling •Probability sample –Simple Random Sample –Systematic Random Sample –Stratified Random Sample –Cluster (Area) Sample •Nonprobability sample –Convenience Sample –Judgment Sample –Quota Sample

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Sampling Plan Defined A plan that specifies whom to survey (the sampling unit), how many to survey (the sample size), and how to select them (the sampling procedure).

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Quantitative and Qualitative •Example: New online dating service –Secondary data: population statistics –Sampling unit defined –Focus groups undertaken –Quantitative study to attach numbers to findings from focus group •Research report

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Copyright

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