CB - Bba 374

Consumer Behavior BBA 347
MARKETERS’ CONCERNS
• To understand customer behavior, marketing experts usually examine the buying decision processes,
particularly factors that trigger customers to purchase a product.
• A recent study disclosed that an average shopper takes less than 20 minutes for purchasing groceries and
covers only 23% of the store area, giving managers very little time for influencing customers. In fact, more
than 58% of all purchases in a supermarket are unplanned.
• Business managers spend a lot of money and time to discover what compels customers to take such on-spot
decisions.
• Researchers can obtain the most valuable data on customer buying trends through in-store surveys, and
often introduce new products and services in some select stores where they expect to reasonably test an
item’s success. In this way, a company can determine whether there’s a chance of the product to be
successful when launched, before further investing into it.
DEFINITION OF CONSUMER BEHAVIOUR
Consumer behavior can be defined as the decision-making process and physical activity
involved in acquiring, evaluating, using and disposing of goods and services.
American Marketing Association (AMA) defines “The behavior of the consumer or

decision maker in the market place of products and services. It often is used to describe
the interdisciplinary field of scientific study that attempts to understand and describe
such behavior
Schiffman defines consumer buying behavior as “the behavior that consumes

display in searching for, purchasing, using, evaluating, and disposing of products
and services that they expect will satisfy their needs.”
Successful Relationships
High level of
Customer
Customer value customer
retention
satisfaction
Value, Satisfaction,
and Retention • Defined as the ratio between the
customer’s perceived benefits and
• Customer Value the resources used to obtain those
• Customer benefits
Satisfaction • Perceived value is relative and
• Customer subjective
Retention • Developing a value proposition is
critical
Discussion Questions
• How does McDonald’s create

value for the consumer?
• How do they communicate this
value?
Value, Satisfaction,
and Retention • The individual's perception of the
• Customer Value performance of the product or service in
relation to his or her expectations.
• Customer Satisfaction
• Customer Retention
• Customer groups based on loyalty
include loyalists, apostles, defectors,
terrorists, hostages, and mercenaries
Value, Satisfaction, • The objective of providing

and Retention value is to retain highly
satisfied customers.
• Customer Value • Loyal customers are key
• They buy more products
• Customer • They are less price sensitive
Satisfaction • Servicing them is cheaper
• Customer • They spread positive word of
Retention mouth
Need of studying Consumer Behavior
1. Consumer Behaviour (CB) study is very

important to the marketers because it enables
them to Understand and predict buying
behavior of consumers in the marketplace.
2. Study of Consumer Behaviour is

concerned with
• what consumers buy,
• why they buy it,
• when, where and how they buy it,
• how often they buy it,
• how they consume it & dispose it
• how satisfied / dissatisfied they become after
using it.
3. Research shows that two different buyers

buying the same product may have done it for
• different reasons
• paid different prices
• used in different ways
• have different emotional attachments
towards the things and so on.
4. The study of Consumer Behaviour is one

of the most important in business education,
because
• The purpose of a business is to create and

keep customers. Customers are created
and maintained through marketing
strategies.
• And the quality of marketing strategies

depends on knowing, serving, and
influencing consumers.
5. The success of a business is to achieve organizational

objectives, which can be achieved by right knowledge &
information about consumers.
It is critical for developing successful marketing strategies

because it challenges the marketers to think about and analyze
the relationship between the consumers & marketers, and the
consumer behavior & the marketing strategy.
6. A Marketing Manager can design better marketing plans and

those plans would be accepted within the company only when he
is has 100% consumer knowledge.
7. In a non-profit service organization,

such as a hospital, an individual in the
marketing department would like to know
the patients’ needs and how best to serve
those needs.
8. Universities & Colleges now recognize

that they need to know about Consumer
Behaviour to aid in recruiting students.
The Consumer Value Framework (CVF) Babin & Harris
External and internal factors contribute to the formulation of self-concept and lifestyle, which affects the consumer decision process.
During this process, experiences and acquisitions update the original external and internal influences.
The Importance of the Consumer
Research Process
• Marketers must understand customers to design effective:

– marketing strategies
– products
– promotional messages
One of the biggest mistakes people make in business is spending money on product development
BEFORE test marketing the idea. Testing your product/service idea is your key to success in
marketing.
The Consumer Research Process Figure 2.2
Developing Research Objectives
• It is extremely important that research objectives are determined at

the beginning of the process.
• Defining purposes and objectives helps ensure an appropriate
research design.
• A written statement of objectives helps to define the type and level of
information needed.
• Without this agreed-upon roadmap for the research, money can easily
be wasted and research objectives not fulfilled.
• Assume you are planning to open a new pizza

restaurant near campus.
– What are three objectives of your research
plan for your new business?
– How would you gather the data?
The Consumer Research Process
Marketing research:
– Market research methods fall into two categories –
Primary and Secondary Research
– Primary research is gathered to answer a specific marketing question
- You are gathering the data
- Varies based on the problem you are solving
– Secondary research is already gathered for some other purpose
Primary Research Techniques
What do customers think of a new version of a popular product?
To collect primary data a business must carry out field research. The main
methods of field research are:
• Product Tests
• Ethnographic Tests (i.e. observational)
• Face-to-face interviews
• Telephone interviews
• Online surveys
• Questionnaires
• Focus groups and consumer panels – a small group of people meet
together with a “facilitator” who asks the panel to examine a product and
then asks in depth questions. This method is often used when a business is
planning to introduce a new product or brand name.
In most cases it is not possible to ask all existing or potential customers - So
primary research makes use of surveys and sampling to obtain valid results.
What are some of the advantages of
using primary research & What are the disadvantages?
Advantages and Disadvantages of Primary
Research
THE MAIN ADVANTAGES OF PRIMARY RESEARCH AND DATA ARE THAT IT IS:
• Up to date.
• Specific to the purpose – asks the questions the business wants answers to.
• Collects data which no other business will have access to (the results are confidential).
• In the case of online surveys and telephone interviews, the data can be obtained quite
quickly
Advantages and Disadvantages of Primary
Research
THE MAIN DISADVANTAGES OF PRIMARY RESEARCH ARE THAT

IT…
 Can be difficult to collect and/or take a long time to collect.
 Is expensive to collect.
 May provide mis-leading results if the sample is not large enough or chosen with care; or if the
questionnaire questions are not worded properly.
What is the difference between qualitative and
quantitative market research?
Quantitative vs Qualitative Market Research
Quantitative Research:
• By definition, measurement must be objective, quantitative and statistically valid. Simply
put, it's about numbers, objective hard data.
– A scientifically calculated sample of people from a population is asked a set of questions on a
survey to determine the frequency and percentage of their responses.
Qualitative Research:
• Qualitative research, is much more subjective than quantitative research and uses very
different methods of collecting information, mainly individual, in-depth interviews and focus
groups. The nature of this type of research is exploratory and open-ended.
– Participants are asked to respond to general questions, and the interviewer or group moderator
probes and explores their responses to identify and define peoples' perceptions, opinions and
feelings.
Focus Groups
• ADVANTAGES:
▪ Relatively easy to assemble, inexpensive and flexible in terms of format,
▪ Open recording allows participants to confirm their contributions
▪ Provide rich data through direct interaction
▪ Spontaneous, participants not required to answer every question; able to build on one another's
responses
• LIMITATIONS:
▪ Findings may not represent the views of larger segments
▪ Requires good facilitation skills, including ability to handle various roles people may play
(“expert”, “quiet”, “outsider’, “friend”)
▪ Tough rich, data may be difficult to analyze because it is unstructured
▪ Possible conformance, censoring, conflict avoidance, or other unintended outcomes of the group
process need to be addressed as part of the data analysis (Carey, 1995)
Marketing Research – Surveys Quantitative Analytics
Surveys – descriptive.
• Why is consumption falling?
• Who are the consumers of our brand?
• What do they think about it?
• When do they use it?
• How do they use it?
Question types:
– Scalar questions: answered by some sort of scale
• “On a scale of 1 to 5, how do you like this book?”
– Dichotomous questions: only two possible choices
• “Have you shopped here before?”
– Categorical questions: answered by selecting the category
• “What is your ethnicity?”
– Open-ended questions: allows respondents to express themselves
Surveys
ADVANTAGES
• Surveys are relatively inexpensive (especially self-administered surveys).
• Surveys are useful in describing the characteristics of a large population.
• No other method of observation can provide this general capability.
• They can be administered from remote locations using mail, email or
telephone.
LIMITATIONS
• A methodology
• relying on standardization forces the researcher to develop general questions
• Surveys are inflexible in that they require the initial study design (the tool and
administration of the tool) to remain unchanged throughout the data collection.
• The researcher
• must ensure that a large number of the selected sample will reply.
Survey Bias
• Surveys, as any kind of research, are vulnerable to bias.

• The wording of a question can influence the outcome a great deal.
• For example, more people answered no to the question, should speeches against
democracy be allowed, than answered yes to the question should speeches
against democracy be forbidden.
Discussion Questions Personal Privacy
• Many people do not like the fact that their personal

data are used for marketing.
• How can marketers justify their need for data?
• How can they acquire data and maintain customer
privacy?
Discussion Guides for Research
•
Discussion guides are an important part of
focus groups and depth interview.
•
They provide an agenda for the session and
help ensure that the researcher’s objectives
that were established for the research plan
are met.
Some interviewers follow the guide exactly,
•
but most will “go with the flow” and let the
participants partly drive the direction of the
research.
Qualitative Collection Method Projective Techniques
Research procedures designed to identify consumers’ subconscious feelings

•
and underlying motivations Consist of a variety of disguised “tests”
Common Projective Exercises Table 2.1 (excerpt)
Description
Word The researcher has a list of words, some of them to be studied and some just as
Associations “filler.” The researcher asks the respondent(s) to react, one-at-a time, to each word by
stating or (in a focus group setting) writing on a pad the first word that comes to
mind, and to explain the link.
Sentence The researcher has a series of incomplete sentences that the
Completion respondent(s) needs to complete with a word or phrase.
Photo/Visual The researcher creates/selects a series of photos of consumers, different brands or

for Storytelling products, range of print ads, etc., to serve as stimuli. The respondents are asked to
discuss or tell a story based on their response to a photo or some other visual
stimulus.
Role Playing Is quite similar to storytelling; however, instead of telling a story, the participant(s)
will be given a situation and asked to “act out” the role(s), often with regard to a
product or brand, or particular selling situation.
Qualitative Collection Method Metaphor Analysis
• Based on belief that metaphors are the most basic method

of thought and communication
• Zaltman Metaphor Elicitation Technique (ZMET) combines
collage research and metaphor analysis to bring to the
surface the mental models and the major themes or
constructs that drive consumer thinking and behavior.
Qualitative Collection Method “Looking-In”
• Look at information from threads and postings on social media.

• Methodology to capture consumers’ experiences, opinions, forecasts, needs,
and interests
Validity and Reliability
It is important for research to be both valid and reliable.

•It is only with these two characteristics that you can ensure that the data you have
collected is useful for the purpose and can be expanded from the sample to the
population
•Validity asks the question of whether the data is really applying to the objectives you
have set.
•Reliability tells you, the researcher, if the results would be repeated if conducted
on a similar group at the same time.
Sampling and Data Collection
• Samples are a subset of the population used to estimate

characteristics of the entire population.
• A sampling plan addresses:
– Whom to survey
– How many to survey
– How to select them
• Researcher must choose probability or
nonprobabililty sample.
Data Analysis and Reporting Findings
Open-ended questions are coded and quantified. All responses are

tabulated and analyzed.
Final report includes executive summary, body, tables, and graphs.
Types of Secondary Data
External Data
Internal Data •Data collected by an outside
Data generated in- organization
house •Includes federal government,
May include analysis periodicals, newspapers, books, search
of customer files engines
Useful for calculating •Commercial data is also available
customer lifetime from market research firms
value
UNIT 2
Models of consumer behavior
Traditional models
Economic Model
Learning Model
Psychoanalytic Model
Sociological Model
Contemporary models
 Horward Sheth model
 Nicosia
 Webster and Wind
 Engel, Blackwell and Minard model

Economic Model
 Synthesized by Alfred Marshall based on the

Theory of Marginal Utility and Micro-Economic
Theory.
 The Focus is on the “Act of Purchase” of an
“Average Consumer”.
 Explains “What” a Consumer would purchase
and “In What Quantity”.
 This model assumes that with limited
purchasing power and a set of needs and tastes, a
consumer will allocate his/ her expenditure over
different products at a given prices so as to
maximize utility.
Economic Model-Basic Assumptions
 Individual needs are unlimited

 Individual needs cannot be fully satisfied
 Individual is completely aware of his needs
 Individual is a rational buyer
 Individual has the perfect information about
the utility of products available in the market
 The utility of a product or service gets reduced
with each subsequent purchase
 Price of goods are the sole sacrifice involved in
obtaining a product or service
 Market is a collection of homogeneous
individuals
Criticism to Economic Model
Economic Models ignores the

effect of
• Perception
• Attitude
• Motivation
• Personality
• Learning Process
• Social Class
• Culture
Learning model
This model help marketers to promote association of

products with strong drivers and cues, which would
lead to positive reinforcement from the consumers.
In marketing context, ‘learning’ will help marketers

to understand how consumer learn to respond in
new marketing situations, or how they have learned
and respond in the past in similar situations.
As Consumers also learn to discriminate and this

information will be useful in working out different
marketing strategies.
Psychoanalytical Model of Consumer Behaviour
Psychoanalytic theory is attributed to the work of eminent psychologist

Sigmund Freud.
Introduced personality as a motivating force in human behaviour .
This model is concerned with personality and says that human
behaviour to a great extent is directed by a complex set of deep seated
motives.
Mental framework of a human being is composed of three elements
• The Id • The Superego • The Ego
Psychoanalytical Model of Consumer Behaviour
Contd………..
 Id is what an individual is born with.

 Super-ego are formed out of the values
 Ego acts as a balance between the Id and the Super-ego
 Id remains at the core of each need
 Individuals show behaviour as a gratification to their Id
Criticism to Psychoanalytical Model
 All the behaviors cannot be attributed to satisfaction of Id.

 This model views consumers as individuals with minimal influence of the
family, society, reference groups, or other social and group influences.
 Values of individual are liable to change over a period of time through
changes created in perception, learning, attitude building which this model
ignores.
Sociological Model
As per this model, an individual buyer is a part of the institution called society, gets influenced by it
and in turn, also influences it in its path of development.
The interactions with all the set of society leave some impressions on him and may play a role in
influencing his buying behaviour.
The marketers, through a process of market segmentation can work out on the common behaviour
patterns of a specific class and group of buyers and try to influence their buying pattern.
Family, friends and close associates exert the maximum influence
 Opinion Leader influences the life-style and buying behaviour of an individual
CONTEMPORARY THEORIES
The Howard Sheth Model of buying behaviour
It attempts to throw light on the rational brand behaviour shown by buyers when faced with
situations involving incomplete information and limited abilities
The model refers to three levels of decision making:

 Extensive problem solving
 Limited problem solving
 Routinized response behavior
The model has borrowed the learning theory concepts to explain brand choice behavior when
learning takes places as the buyer moves from extensive to routinized problem solving
behaviour.
The model makes significant contribution to understand consumer behaviour

by identifying the variables which influence consumers
Four components involved in the model:

 Input variables
 Output variables
 Hypothetic constructs
 Exogenous variables
Input Variables: these variables acts as stimuli in the environment.

Stimuli can be of Significative, Symbolic & Social
Significative stimuli are those actual elements of brands which the buyer confronts
where as Symbolic stimuli are those which are used by marketers to represent their products in a
symbolic form.
Social stimuli are generated by the social environment such as family, friends, groups etc.
Output variables: These are which buyer’s observable responses to stimulus inputs.
They appear in the sequence as below:
 Attention: Based on the importance of the buyer’s information intake.
 Comprehension: the store of information the buyer has about the brand.
 Attitude: the buyer’s evaluation of the particular brand's potential to satisfy his
or her motives.
 Intention: the brand which the buyer intends to buy.
 Purchase behaviour: the act of actually purchasing, which reflects the buyer’s
predisposition to buy as modified by any of the inhibitors.
Hypothetical Constructs: The model proposes a number of intervening variables

which have been categorised into two major groups: perceptual and learning
constructs.
Perceptual Constructs include:
 Sensitivity to information:the degree to which the buyer regulates the stimulus
information flow.
 Perceptual bias: refers to distorting or altering information
 Search for information:it involves actively seeking information on the brands

or their characteristics.
The buyer’s learning constructs can be defined as:

 Motives are general or specific goals driving action.
 Brand potential of the evoked set refer to the buyer’s perception on the
ability of brands in his pr her evoked set to satisfy his or her goals.
 Decision mediators are based on the motives. The buyer will have certain
mental rules for matching and ranking the purchase alternatives.
 Predisposition refers to a preference towards brand in the evoked set which
expresses an attitude towards them.
 Inhibitors refers to environmental forces like price and time pressure which
may inhibit or put restrain on the purchase of a preferred brand.
 Satisfaction the extent to which, post actual purchase will measure upto the
buyer’s expectation of it.
 Exogenous variables:
These are list of a number of external variables (external to the buyer) which can
significantly influence buyer decisions.
Limitations of the model:
 There is an absence of sharp distinctions between exogenous variables and other

variables.
 Some of the variables, which are not well defined, and are difficult to measure too.
 The model is quite complex and not very easy to comprehend.

The Nicosia Model
Proposed by Francesco Nicosia in 1970s This model attempts to explain buying behaviour by
establishing a link between the organisation and its prospective customer. It analyse human being
as a system with stimuli as the input to the system and the human behaviour as an output of the
system.
The model suggests that message from the first influences the predisposition of the consumer
towards the product or services. Based on the situation, the consumer will have a certain attitude
towards the product. This may result in a search for the product or an evaluation of the product
attributes by the consumer.
If the customer satisfies with above it may result in a positive response, with a decision to buy the
product otherwise the reverse may occur.
The Nicosia Model
The Nicosia Model explains in 4 basic areas:
Field 1:- the consumer attribute and the firm’s attributes. The advt. message sent from the company will
reach the consumer attributes.
Field 2:- it is related to the search and evaluation, undertaken by the consumer, of the advertised
product and also to verify if other alternatives are variable. If the process results in motivation to buy, it
becomes the input for Field 3
Field 3:- it explains how the consumer actually buys the product. Transformation of the motivation into
the act of buying
Field 4:- it is related to the uses of the purchased items. It can also be related to an output to receive
feedback on sales results by organisation.
Limitations:
 The flow is not completed and does not mention the various factors
internal to the consumer.
 The assumption about the consumer being involved in the decision

process with no predisposition about the various brands is restricting
 Overlapping between firm’s attributes and consumers attributes.

Webster and wind
 This Model explains more a B2B buying behavior and it divides the buying process
into several processes
 processes of decision-making are determined by environmental and organizational

factors.
 Final buying process rendered as the mixture of individual and group decision
Engel, Blackwell and Minirad (EBM) Model:
 It shares certain things with Howard-Sheth model.
 The core of the EBM model is a decision process which is augmented with inputs from
information processing and other influencing factors.
 Four sections of the Model:

• Input
• Information Processing
• Decision process and
• Variables influencing decision process.
Information Input : consumer gets information from marketing and nonmarketing sources
 Information Processing : consists of the consumer’s exposure, attention, perception,
acceptance, and retention of incoming information.
Decision Process : Problem recognition, search for alternatives, alternate evaluation purchase, and
outcomes. The central focus of the model.
 Variables influencing the decision process : consists of individual and environmental influences
that affect all five stages of the decision process.
PERCEPTION
• Different individuals tend to see the world in our own ways.
• Individuals act and react on the basis of their thinking , nature & philsophises of life not on
the basis of reality.
• Consumer perception emphasises what consumer think about the product , brand, and
producers.
• Difference in perception is natural in human behaviour.
• Perception is described as persons view of reality.

PERCEPTION DEFINITION
“Perception is a process of
receiving, selecting, organizing,
interpreting, checking and
reacting to sensory stimuli or
data so as to form a meaningful
and coherent picture of the
world”. Davis Keith
ELEMENTS OF PERCEPTION
• Sensation
• Absolute threshold
• Differential threshold
• Subliminal perceptio
SENSATION
The immediate and direct response

of the sensory organs to stimuli.
Stimulus – any unit of input to

any of the senses.
Sensory receptors – Eyes, Ears,

Nose, Mouth and Skin
ABSOLUTE THRESHOLD
The lowest level at which an individual can experience a sensation.

[ Detecting difference between “something and nothing”]
DIFFERENTIAL THRESHOLD
SUBLIMINAL PERCEPTION
• Perception of very weak or rapid stimuli received below the level of conscious
awareness
• Subliminal perception occurs whenever stimuli presented below the threshold

or limen for awareness are found to influence thoughts, feelings, or actions.
• The term subliminal perception was originally used to describe situations in

which weak stimuli were perceived without awareness
ELEMENTS OF PERCEPTION
• Perceptual Selection
• Perceptual Organization
• Perceptual Interpretation
PERCEPTUAL SELECTION
• Stimuli get selected on two factors:–

Consumers previous experience affects their expectation
And Motives at the time
1) Nature of the stimulus – Nature of the product, physical attributes, the package design,
brand name and advertisements (includes copy, choice and sex of the model, positioning, size
of ad) –
CONTRAST – Difference creates more attention towards the ad.
2) Expectations:– People see what they want to see, based on previous experience, familiarity
and preconditioned set of expectations. – Marketers believed that high degree of sexuality
creates more attention
3) Motives – People perceive the things they need and want – Stronger the need – Greater
tendency to ignore unrelated things. – People who are obese see ads related to gyms and diet.
Selective perception
• Selective exposure:– People look for pleasant and sympathetic messages and
avoid painful or threatening ones.
• Selective attention:– People look into ads which will satisfy their need.
• Perceptual Defense:– People avoid psychologically threatening ones. Hence

constantly change the ad nature. [Smoking – warning with words, and now with
images]
• Perceptual Blocking:– People block stimuli which is bombarded

PERCEPTUAL ORGANIZATION

• People see everything as a whole.
• Gestalt Psychology –
Gestalt Psychology
PERCEPTUAL INTERPRETATION
Stimulus are often highly ambiguous or weak
1. Stereotypes
2. Physical Appearances
3. Descriptive terms
4. First Impression
5. Halo Effect

Stereotypes
- People carrying biased pictures in their minds of the meanings of various stimuli.
– People hold meaning related to stimuli
– Stereotypes influence how stimuli are perceived
Physical Appearance
• People associate quality with people in the ads.

– Attractive models have positive influence
– Colors of juices.
– Shape of the package
– Average men are not considered as businessman.
Ex: Bill gates Vs Mr. Raman
Descriptive Terms
• Stereotypes are reflected in Verbal messages.

– Accenture – High Performance, Delivered.
– KFC – Spicy Chicken
– McDonald – Happy price (targeting Indians who are price conscious)
First Impressions
• First impressions are lasting

• The perceiver is trying to determine which stimuli are relevant,
important, or predictive

HALO EFFECT
• Consumers perceive and evaluate product or service or even product line

based on just one dimension.
• Important with spokesperson choice.
• Tampering the halo effect is detrimental to the organization.
• Toyota – Quality
• Sony – Music
• Apple- Sophisticated
Perceived risk Definition:
• The uncertainty that consumer face when they cannot foresee the
consequences of their purchase decision.
• Two relevant aspects of perceived risks are uncertainty and

consequences.
• Perception of risk varies depending on the person, the product, the

situation, and the culture
Reasons For Perceived Risk
• Consumer may not have any previous experience with the product
• The product may be new to the market
• The consumer may feel that he has very limited knowledge on purchasing decision
• Consumer may have an unsatisfactory experience with the other brands of the same
product category
• When the product is technologically complex
• When the consumer has little self confidence

Types of Perceived Risk

• Functional Risk :- Product will not perform as expected
• Physical Risk :- Product can harm self and others
• Financial Risk :- Product will not be worth its cost
• Psychological Risk:-Poor product choice will bruise the consumer’s
ego
• Time Risk :-Time spent in product search may be wasted if the
product does not perform as expected
Methods to Reduce Perceived Risk
• Seek Information
• Remain Brand Loyal
• Rely on Brand Image
• Rely on Store Image
• Buy the Most Expensive Model or Brand
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Copyright © 2015 Pearson Education

Chapter 5 Learning Objectives
5.1 To understand the elements of learning in the context of

consumer behavior.
5.2 To understand behavioral learning, classical conditioning,
and the roles of stimulus generalization and discrimination in
developing and branding new products.
5.3 To understand instrumental conditioning and the
objectives and methods of reinforcement.
5.4 To understand the role of observational learning in
consumer behavior.
Copyright © 2015 Pearson Education Slide 120 of 26

5.5 To understand the elements of information processing, including

receiving, storing, and retrieving consumption-related information.
5.6 To understand cognitive learning as a framework for consumer
decision-making.
5.7 To understand consumer involvement and passive learning, and
their impact on purchase decisions and the retention and recall of
promotional communications.
5.8 To understand how to measure the results of consumer learning.

Learning Objective 5.1
5.1 To understand the elements of learning in the

context of consumer behavior.

Learning
• Intentional vs. incidental
learning
• Four elements:
• Motives
• Cues
• Responses
• Reinforcement
Compare the two

introductions of
Febreze.
5.2 To understand behavioral learning, classical

conditioning, and the roles of stimulus
generalization and discrimination in developing and
branding new products.

Classical Conditioning
Applications of Classical Conditioning
• Associative learning
• Need for repetition
• Advertising wear-out
• Three-hit theory
Why does Fresh Step

use different versions
of its ad?
Stimulus Generalization
• Product line extensions

• Product form extensions
• Family branding
• Licensing
Stimulus Discrimination
Which concept of behavioral learning applies to the
introduction of this product?
5.3 To understand instrumental conditioning and the

objectives and methods of reinforcement.

Instrumental Conditioning
• What is the difference between positive reinforcement

and negative reinforcement?
• What is the difference between negative reinforcement
and punishment?
• What is the difference between extinction and forgetting?
Reinforcement Schedules
Continuous Fixed ratio
Variable
ratio
Other Applications of Instrumental Learning
• Shaping
• Mass vs. distributed learning
When is a distributed learning schedule preferred?

5.4 To understand the role of observational learning in

consumer behavior.

Observational Learning
5.5 To understand the elements of information

processing, including receiving, storing, and retrieving
consumption-related information.

Cognitive Learning
Information Processing
• Storing information
• Sensory store
• Short-term storage
• Long-term storage
• Rehearsal
• Encoding
• Information Retrieval
• Retention
• Chunking
• Retrieval
5.6 To understand cognitive learning as a framework

for consumer decision-making.

Cognitive Learning
Discussion Question
How would the ad influence the

behavior of an individual who
was engaged in a cognitive
learning process?
5.7 To understand consumer involvement and passive

learning, and their impact on purchase decisions and
the retention and recall of promotional
communications.

Hemispheric Lateralization
5.8 To understand how to measure the results of

consumer learning.

Recognition and Recall Measures
• Aided recall (recognition)

• Unaided recall (recall)
How does the Starch Readership Ad Study measure ad

effectiveness?
Brand Loyalty
• Depends on
• Risk aversion/variety seeking
• Brand reputation/ substitute
availability
• Social influence
e d
fi n
D e Brand Equity
The intrinsic value of a brand name. This value

stems from the foundations of brand loyalty: the
consumer’s perception of the brand’s superiority,
the social esteem that using it provides, and the
customer’s trust and identification with the brand.

All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

r 6
p te
a
Ch

6.1 To understand what attitudes are, how they are

formed, and their role in consumer behavior.
6.2 To understand the tri-component attitude model
and its applications.
6.3 To understand the structures of multi-attribute
models and their use in altering consumers’ attitudes.
6.4 To understand how to alter consumers’ attitudes by
making particular needs prominent.

6.5 To understand the role of cognitive elaboration in

altering attitudes.
6.6 To understand how attitudes can precede behavior
in the form of cognitive dissonance and the resolution
of conflicting attitudes.
6.7 To understand the ways people assign causality to
events and apply this knowledge to consumer
behavior.

6.1 To understand what attitudes are, how they are

formed, and their role in consumer behavior.

e d
fi n
D e Attitude
A learned predisposition to behave in a consistently

favorable or unfavorable manner with respect to a
given object.

Attitude Formation
• Consumers learn attitudes

• Sources of attitude formation
• Experience
• Family and friends
• Media/Internet/Social Media
• Role of personality factors
• Need for cognition
• Innovativeness
Role of Attitudes
• Attitudes are consistent with behavior

• How do situations affect attitudes?
6.2 To understand the tri-component attitude model

and its applications.

The Cognitive Component
The Affective Component
The Conative Component
• Explain your attitude toward your college/university based on the

tricomponent attribute model.
• Be sure to isolate the cognitive, affective, and conative elements.
Altering Consumer Attitudes
• Changing beliefs about products
• Changing brand image
• Changing beliefs about competing brands

6.3 To understand the structures of multi-attribute

models and their use in altering consumers’ attitudes.

Attitude-Toward-Object Model
• Used to change attitudes

• Ways
• Add an attribute
• Change perceived importance of
an attribute
• Develop new products
Other Multi-attribute Models
• Theory of Reasoned Action

• Theory of trying-to-consume
• Attitude-toward-the-ad
model
6.4 To understand how to alter consumers’ attitudes by making

particular needs prominent.

Functional Approach
• Utilitarian function
• Ego-defensive function
• Value-expressive
function
• Knowledge function
• Associate brands with
worthy causes and
events
• To which functions do
the ad appeal?
6.5 To understand the role of cognitive elaboration in altering attitudes.

Elaboration Likelihood Model
Central Route Peripheral Route

• High involvement • Low involvement
• Considered thought and cognitive • Little thought and little information
processing processing
• Learning through • Learning through
• Attribute-based information
• Repetition
• High quality arguments
• Passive processing of visual cues
• Exertion of effort to learn, comprehend,
evaluate • Holistic processing
• Comparative ads • Non-comparative ads
• Objective knowledge • Subjective knowledge
6.6 To understand how attitudes can precede behavior

in the form of cognitive dissonance and the resolution
of conflicting attitudes.

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
6.7 To understand the ways people assign causality to

events and apply this knowledge to consumer
behavior.

Which is the internal attribution?
Bradley uses video-editing software for the first time and

his video was well liked.
1. Bradley thinks: “I’m really a natural at editing my
digital videos”
2. Bradley thinks: “The successful digital video editing was
due to a user-friendly video-editing program”
due to the help of someone else”
due to luck.”
e d
fi n
D e Defensive Attribution
People generally accept (or take) credit for success

(internal attribution), but assign failure to others or
outside events (external attribution)


1 0
e r
p t
a
Ch

10.1 To understand the family as a consumer socialization agent

Consumer Socialization
• Pre-adolescent
• Observe parents and older
siblings
• Families more reliable than
advertising
• Teenagers
• Peers most influential
• Like products when parents
disapprove
Socialization = Two Way Process
Socialization Agents
• Mothers stronger socialization

agents than fathers
• Mothers usually:
• more involved
• control children’s exposure to
commercial messages
• regulate spending
Mothers’ Socialization-Related Attitudes
Parental Styles and Socialization
Consumer Socialization is Learning
Intergenerational Socialization
• Socialization is ongoing
• Marriage
• Retirement
• Pet adoption
• Skepticism increases over
time but varies by
demographics
• Preferences and loyalties
are often transferred
between generations
Family’s Supportive Roles
• Economic well being

• Emotional support
Discussion Question:
How does family shape what
people view as a “suitable”
lifestyle?
10.2 To understand family decision-making and its members’

consumption-related roles.

Husband-Wife Decision-Making
• 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 • Consultation
• Exchange • Ingratiation
• Rational
Roles and Measurement
10.3 To understand the role of the family life cycle in market

segmentation and targeting.

Family Life Cycle
• Bachelorhood • Post-parenthood
• Honeymooners • Dissolution
• Parenthood
The bachelorhood stage refers to young single men and women, mostly college educated, who have incomes that allow them to leave home and establish their
own households. Increasingly, though, even employed college graduates continue to live at home and save toward setting up their own
homes. Single persons spend considerable amounts
Which life-cycle stage is targeted with these
two ads?
Which life-cycle stage is targeted with this ad?
10.4 To understand the consumption patterns of nontraditional

families and non-family households.

Nontraditional Households
Targeting Nontraditional Families
• Changes in consumption behavior
• Advertising decisions
• Recognize existence
• Avoid alienating conservative traditional households
Discussion Question: How might the 8 groups
differ in consumption patterns?
10.5 To understand the impact of social stratification on

consumer behavior.

How do material possessions relate to social status?
How does social comparison/social class affect consumption

patterns?
10.6 To understand how to measure social class and segment

consumers accordingly.

Subjective vs. Objective Measures
• Subjective – estimate your social class

• Objective
• Occupation
• Education
• Income
• Multivariable Index
• Index of status characteristics
• Socioeconomic status score
10.7 To understand the demographics, lifestyles, and

consumption patterns of America’s social classes.

Social Class Profiles
Comparing Social Classes
• Spending patterns
• Clothing, fashion and shopping
• Saving, spending and credit card usage
• Media consumption
Discussion Question:
Why should marketers care about downward mobility and its
affect on consumption patterns?
10.8 To understand how to employ geo-demographics to locate

target markets.

Geo-demographic Segmentation
PRIZM ®

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Consumer Behavior BBA 347

American Marketing Association (AMA) defines “The behavior of the consumer or

Schiffman defines consumer buying behavior as “the behavior that consumes

• How does McDonald’s create

Value, Satisfaction, • The objective of providing

1. Consumer Behaviour (CB) study is very

2. Study of Consumer Behaviour is

3. Research shows that two different buyers

4. The study of Consumer Behaviour is one

• The purpose of a business is to create and

• And the quality of marketing strategies

5. The success of a business is to achieve organizational

It is critical for developing successful marketing strategies

6. A Marketing Manager can design better marketing plans and

7. In a non-profit service organization,

8. Universities & Colleges now recognize

• Marketers must understand customers to design effective:

• It is extremely important that research objectives are determined at

• Assume you are planning to open a new pizza

THE MAIN DISADVANTAGES OF PRIMARY RESEARCH ARE THAT

 Can be difficult to collect and/or take a long time to collect.

• Surveys, as any kind of research, are vulnerable to bias.

• Many people do not like the fact that their personal

Research procedures designed to identify consumers’ subconscious feelings

Photo/Visual The researcher creates/selects a series of photos of consumers, different brands or

• Based on belief that metaphors are the most basic method

• Look at information from threads and postings on social media.

It is important for research to be both valid and reliable.

• Samples are a subset of the population used to estimate

Open-ended questions are coded and quantified. All responses are

 Horward Sheth model

 Webster and Wind

 Engel, Blackwell and Minard model

 Synthesized by Alfred Marshall based on the

 Individual needs are unlimited

Economic Models ignores the

This model help marketers to promote association of

In marketing context, ‘learning’ will help marketers

As Consumers also learn to discriminate and this

Psychoanalytic theory is attributed to the work of eminent psychologist

 Id is what an individual is born with.

 All the behaviors cannot be attributed to satisfaction of Id.

The model refers to three levels of decision making:

The model makes significant contribution to understand consumer behaviour

Four components involved in the model:

Input Variables: these variables acts as stimuli in the environment.

Hypothetical Constructs: The model proposes a number of intervening variables

 Perceptual bias: refers to distorting or altering information

 Search for information:it involves actively seeking information on the brands

The buyer’s learning constructs can be defined as:

 There is an absence of sharp distinctions between exogenous variables and other

 The model is quite complex and not very easy to comprehend.

The Nicosia Model explains in 4 basic areas:

 The assumption about the consumer being involved in the decision

 Overlapping between firm’s attributes and consumers attributes.

 processes of decision-making are determined by environmental and organizational

 It shares certain things with Howard-Sheth model.

 Four sections of the Model:

• Different individuals tend to see the world in our own ways.

• Difference in perception is natural in human behaviour.

• Perception is described as persons view of reality.

The immediate and direct response

Stimulus – any unit of input to