Marketing exam paper

HI there are exam paper, please follow the requirement below the exam paper and answer all questions accounting below ppt, self concept have all guide about all questions. please finish like a exam thank you!

204MKT

January 2013

Coventry University

Coventry Business School

204MKT Consumer Behaviour

Instructions to candidates

Time allowed:

2 hours

Answer FOUR questions out of six.

You may take this question paper away at the end of the examination: please keep it in a safe place for future reference.

Please answer FOUR questions.

1. Define “Culture”. What are its characteristics? Discuss why it is important to study culture in order to understand consumer behaviour. Please use examples to support your answer. (25%)

2. Explain the AIDA model and its significance in the adoption of a new product by consumers. (25%)

3. Explain the differences in the psychological makeup of consumers who are a) Gen X and b) Gen Y. How do these differences impact the way marketers target these consumers? Give examples to support your answer. (25%)

4. Is wealth or social class the better predictor of consumer behaviour? Use theories and examples to support your answer. (25%)

5. What are values and what role do they play in consumer behaviour? Use theories and examples to support your answer. (25%)

6. What components make up a consumer’s self-concept? Explain each concept briefly. What is meant by the extended self and what role does consumption play in this concept? (25%)

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Continued/…..

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CONSUMER BEHAVIOUR
AGE IN CONSUMPTION
Dr L. Spiteri Cornish

Last Lecture we discussed:
That it’s important for marketers to recognize that products can satisfy a range of consumer needs.
That the way we evaluate and choose a product depends upon our degree of involvement with the product, the marketing message, and/or the purchase situation.

After this lecture, you should understand that
There are 6 main age segments for marketers
People of about the same age have many things in common.
Tweens is a recent age cohort but one that is become more and more powerful.
Baby boomers continue to be the most powerful age segment economically.
Seniors will increase in importance as a market segment.

Age exerts a significant influence on identity
Consumers undergo predictable changes in their values, lifestyles, and consumption patterns as they move through their life cycle
Possessions let consumers identify with others of a certain age/life stage
Marketers need to know how to communicate with members of an age group in their own language.
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

You have probably heard these terms before. Marketers and other researchers divide the population into groups depending on the year they were born. There are many differences between these age subcultures, which will be explored in the following slides.
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Roughly 65 years and older
Traditionally neglected by marketers
Large proportion of population: Growing segment due to better medical care, declining birthrate and the aging of the large baby boomer segment
More affluent than previous seniors
Perceived age more important than actual age (Chronological vs cognitive age)
Fastest growing group of Internet users
Three segments by age
The Young-Old (65-74)
The Old (75-84)
The Old-Old (85 and older)
Coates, Julie. Generational learning styles. River Falls, WI: Lern books, 2007.

The older consumer is an important and growing segment. People are living longer and are healthier and more active at an older age. Many people tend to clump seniors together when, in fact, there are several segments within this group. The young-old tend to travel and purchase at a very high rate.
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Vuori, S., & Holmlund-Rytkönen, M. (2015). 55+ people as internet users. Marketing Intelligence & Planning, 23(1), 58-76.

Older consumers are very active online and are more connected than you might think at first. This graph shows the most common reasons that seniors use the internet and the online activities in which they engage.
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Women outnumber men
Tend to be brand loyal
Lower information processing skills (Impaired senses); Simpler, more schematic processing
Truth effect (trusting)
Shop at discount stores
Fairly resistant to the adoption of new products
Hate queuing

Most older people lead more active, multidimensional lives than we assume

https://
www.youtube.com/watch?v=dQmaC_dMGVg
Older consumers are finished with many financial obligations
Most own their own homes
Child-rearing costs are over
“We’re Spending Our Children’s Inheritance”
Sector important for health and medical products in store
Interest in home and leisure based products
Grandparent consumers
Lu, Y., & Seock, Y. K. (2008). The influence of grey consumers’ service quality perception on satisfaction and store loyalty behavior. International Journal of Retail & Distribution Management, 36(11), 901-918.

Ads with positive older role models
Traditional brands – nostalgia.
Favour informative ad messages over imagery
Simple messages – bigger, louder and slower
Avid readers of media
Store designs to make life easier
Respond to discounts
Mobility, parking and transport important.
Offer higher level of service
Mumel, D., & Prodnik, J. (2005). Grey consumers are all the same, they even dress the same-myth or reality?. Journal of Fashion Marketing and Management: An International Journal, 9(4), 434-449.

Born between 1946 – 1964
More than 40 percent of the adult population
Motivated consumers
Not anxious to retire and handle it as:
Opportunity for a new start
A continuation of preretirement life
Unwelcome disruption
Transition to old age

The baby boomers have a lot of purchasing power due to their size and their propensity to purchase for themselves, others, and their homes. They are mixed on their views of retirement and will therefore purchase in different ways during these golden years.
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Very idealistic – banned together and walked through life with their fists held high
Generation gap occurred between them and their parents
Captured phrases like “why be normal” and “question authority”
They weren’t friendly toward authority figures
Did not get along with their parents and swore they would not raise their kids like they were raised
Coates, Julie. Generational learning styles. River Falls, WI: Lern books, 2007.

Influential segment because of size and buying power
Value individualism and freedom
Peak earning years. Planning to work till they’re 70!
Lived through political, social and fashion changes
Trying to stay young and healthy
More educated/open-minded/diverse than previous generations.
Sceptical of authority
Self-obsessed
Interested in time-saving convenience
Parment, Anders. “Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing.” Journal of retailing and consumer services 20.2 (2013): 189-199.

Heavy consumers of financial services
Like retro products and nostalgia
Delayed leaving school, getting married, buying a home, child rearing, middle-age, retirement! Growing Up!
Concern about safety for the family
Ageing population
Youth preservation products popular
Playful and nostalgic ad messages
Use of selective media
Baby Boomers will spend and keep spending!
Parment, A. (2013). Generation Y vs. baby boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services, 20(2), 189-199.

Target for cars, housing, travel, entertainment, recreation equipment, motor homes
Heavy consumers of financial services
Gourmet fast food
Comfortable clothing
Anti-aging products

Power in Numbers.
They created a revolution in style, politics, and consumer attitudes.
Consumers aged 45 to 54 spend the most of any age on food, apparel, and retirement programs
one of the most affluent sections of the population, controlling over $7 trillion in wealth
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Reisenwitz, T. , and Rajesh I. . “A comparison of younger and older baby boomers: investigating the viability of cohort segmentation.” Journal of Consumer Marketing 24.4 (2007): 202-213.

Born 1965–1982
A Lost Generation… A Nomadic Generation…
Half the Size of the Baby Boomers

Core Values
Dedication
Hard Work
Conformity
Law and Order
Patience
Delayed reward
Duty before pleasure
Adherence to rules
Honor
Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour. Prentice Hall: London

Divorce reached an all-time high
Single-parent families became the norm
Latch-key kids were a major issue of the time
Children not as valued – looked at as a hardship
Families spread out (miles apart)
Family size = 1.7 children (many only-children)
Perception of the world as “unsafe”
Average 10 year old spent 14 ½ minutes a day with a significant adult role model
Mitchell, M. ; McLean, P. and Turner, G. (2005): Understanding Generation X… Boom or Bust Introduction. Business Forum 27.1, pp. 26-30.

This is the conscientious, extremely pragmatic, self-sufficient generation that has a ruthless focus on the bottom-line.
Born and raised at a time when children were at the bottom of our social priorities, Gen Xers learned that they could only count on one thing – themselves. As a result, they are very “me” oriented.
They are not active voters, nor are they deeply involved in politics in general.
Are hands-on – like to get physically involved

Desire stable families, save portion of income, and view home as expression of individuality.
Less materialistic
Full of angst (like hard rock, rap, tattoos)
Entrepreneurial
Delayed marriage
Mitchell, M. ; McLean, P. and Turner, G. (2005): Understanding Generation X… Boom or Bust Introduction. Business Forum 27.1, pp. 26-30.

High spending power
Important segment for many products (e.g. fast food, clothing, jeans, trainers, music)
Born and bred on TV – cynical
Respond to marketing that reflects own values and attitudes
Cult TV shows (The A-team, Star Trek)
Communication via Internet promotion sites
Williams, Kaylene C., and Robert A. Page. “Marketing to the generations.” Journal of Behavioral Studies in Business 3 (1).
Călin Gurău, (2012) “A life‐stage analysis of consumer loyalty profile: comparing Generation X and Millennial consumers”, Journal of Consumer Marketing, Vol. 29 Iss: 2, pp.103 – 113
.

Generation Y
Echo Boom
Net Generation
Millennials

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Much is expected of the children born between 1982 and 1998, a cohort variously called :
“Millennial” – children of the new “millennium”
Generation Y – follow Gen X
Net Generation – internet, cell phones, computers, infinitely comfortable with technology
The Echo Boom – “population momentum”
Howe, Neil and William Strauss. 2000. Millennials Rising: The Next Great Generation.
Vintage Books: New York
Lancaster, Lynne C. and David Stillman. 2002. When Generations Collide. HarperCollins Publishers, Inc.: New York.
O’Briant, Don. 2003. “Millennials: The Next Generation.” The Atlanta Journal Constitution. (September).
Paul, Pamela. 2001. “Getting Inside Gen Y.” American Demographics. Vol. 23 Issue 9, pp. 42-50.
Tapscott, Don. 1998. Growing Up Digital: The Rise of the Net Generation. McGraw- Hill: New York.
Zemke, Ron, Claire Raines and Bob Filipczak. 2000. Generations at Work: Managing the Clash of Veterans, Boomers, Xers, and Nexters in Your Workplace. AMA Publications: Broadway, New York.

Are the Millennials Special?

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The term Millennials is usually considered to apply to individuals who reached adulthood around the turn of the 21st century. Neil Howe and William Strauss, authors of the book “Generations: The History of America’s Future, 1584 to 2069” (1991) are credited with coining the term.
The precise delineation varies from one source to another:
Howe and Strauss define the Millennial cohort as consisting of those born between 1982 and 2004.
According to Iconoclast, a consumer research firm, the first Millennials were born in 1978.
Newsweek magazine reported that the Millennial generation was born between 1977 and 1994.
In separate articles, the New York Times pegged the Millennials at 1976-1990 and 1978-1998.
A Time magazine article placed the Millennials at 1980-2000.

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1 in 5 has at least one parent who is an immigrant
Most diverse generation ever
Have the best educated mothers in history
Have better educated parents
Came out of the infertility era – were very wanted as children
Born to older parents and raised in smaller families (lots of only children) – many have never shared a room
Many raised by single parent and/or working mother
Value fitting in/teamwork
Are as interested in where they live as what they do – so cities are working to attract them
Boomerang kids?

Expect what they pay for
Everyone should be concerned that they are satisfied and happy
If they are not happy with your answer, they will go over your head
Expect companies to bend over backwards to please them
Multitaskers with mobile phones, music downloads, IM on Internet: Been plugged in since they were babies; Have had mobile phones since they were children
Expect technology to be free
Most of many billion dollars that millennials spend go toward “feel good” products
Are much less brand loyal
Think it is cool to be smart
Hewlett, S. A., Sherbin, L., & Sumberg, K. (2009). How Gen Y and boomers will reshape your agenda. Harv Bus Rev, 87(7-8), 71-6.
Jackson, V., et al. (2011). Mall attributes and shopping value: Differences by gender and generational cohort. Journal of Retailing and Consumer Services, 18(1), 1-9.
Lazarevic, V., (2012). Encouraging brand loyalty in fickle generation Y consumers. Young Consumers, 13(1), 45-
61.

Millennials are becoming parents — and it’s creating shockwaves in the retail, restaurant, automotive, and home-buying industries.
The 18- to 35-year-old generation is notorious for renting homes instead of buying, spending on experiences over apparel, and dining at restaurants instead of at home.
But now – more than 80% of the generation will become parents in the next decade, according to a study by marketing platform Crowdtap.
Millennials currently spend $170 billion a year and are projected to spend $200 billion annually starting in 2017 and $10 trillion in their lifetimes, according to a study by Exponential.
(Business Insider, 2016: https://flipboard.com/@flipboard/flip.it%2F_ThQfr-everything-you-know-about-millennial-sp/f-04fd95c24e%2Fbusinessinsider.com

http://www.inc.com/justin-bariso/why-everything-you-know-about-millennials-is-about-to-change-infographic.html

)
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In 2016, the Department for Work and Pensions (DWP)’s surveyed more than 20,000 households in the UK. It found that:
Britain’s vote to leave the European Union will leave economic uncertainty and reduced opportunities for young people.
While incomes rose by 2% since 2008, most of the wealth went to the older generation.
The income disparity between age brackets means that Millennials are suffering- people 22 to 30 years old — income fell by 7%.
Millennials have stagnant wages and higher living costs, they are also struggling to get into the jobs markets, despite record low unemployment,.
Millennials and those aged up to 60, do not have subsidies like older people. They are less likely to own a home, have savings, and therefore pour most of their money into rent, transport, utility bills, and food.

http://
uk.businessinsider.com/ifs-income-poverty-report-young-people-versus-old-people-and-brexit-impact-2016-7?r=US&IR=T
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“Teenage” first used to describe youth generation in 1950s
Youth market often represents rebellion
First to grow up with internet, mobile technology and a 500-channel TV universe in their homes
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

Four basic conflicts common among all teens:
Autonomy versus belonging: break from family but attach to peers
Rebellion versus conformity: rebel against social standards but want to be accepted by society
Idealism versus pragmatism: view adults as hypocrites and see themselves as sincere
Narcissism versus intimacy: obsessed with own needs but want to connect with others
Dotson, M. and Hyatt, E. (2005) “Major influence factors in children’s consumer socialization”, Journal of Consumer Marketing, 22(1), pp.35 – 42

Who is Gen Z?

Who is Gen Z II?

Who is Gen Z III?

The brands and influences Gen Z can’t live without

Link to PDF

Relatively newly defined cohort
More affluent than ever before
Highly influential in household decision making
Variety seekers – not very brand loyal
Brand perceptions built up now can persist into adulthood.
Peer pressure is critical – belonging is essential.
Exhibit characteristics of both children and adolescents
Lundby, E. (2011) Consumer research on tweens: putting the pieces together. Young Consumers: Insight and Ideas for Responsible Marketers, 12(4): 326-336

New products and product updates needed fast.
Ethics are important – they are children
Peer-to-peer marketing more important (viral)
24/7 availability essential
Interactive communications more important
Lundby, E. (2011) Consumer research on tweens: putting the pieces together. Young Consumers: Insight and Ideas for Responsible Marketers, 12(4): 326-336

Is it ethical for marketers of high-priced goods, an iPhone for example, to target tweens?
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There are many consumer groups who feel that their young tweens are too heavily marketed to by clothing, entertainment, and technology firms. Do you agree?
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Is it ethical for marketers to market beauty products to tweens?
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There are many consumer groups who feel that their young tweens are too heavily marketed to by clothing, entertainment, and technology firms. Do you agree?
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SELF CONCEPT and self-esteem

How would you define self-concept and self-esteem? How are the two concepts related? How do marketers use self-esteem sell products?

Self concept: the beliefs of a man or women have their own attributes and how they evaluates these qualities. Self concept always come with five dimensions: content, positivist, intensity, stability over time, and accuracy.

AGE

Explain the differences in the psychological makeup of consumers who are a) Gen X and b) Gen Y. How do these differences impact the way marketers target these consumers? Give examples to support your answer.

Income and Social class

Is wealth财富 or social class the better predictor of consumer behaviour? Use theories and examples to support your answer.

CULTURE

Define “Culture”. What are its characteristics? Discuss why it is important to study culture in order to understand consumer behaviour. Please use examples to support your answer.

AIDA

Explain the AIDA model and its significance in the adoption of a new product by consumers.

Example: one Chinese restusrants 汉朝伯明翰新开的火锅店《熬》

1.意识：在开门四个月前进行公关活动，推广奖励，特色菜介绍通过微信平台，推行一人推荐一人的优惠活动并通过DM活动加强针对性的客户群体。

2.兴趣：执行直接邮寄活动，免费咨询或试吃完成。他们用研究来支持这一点，因为如果报价和产品质量是令人信服的，客户是忠诚的。

3.欲望：接近的开幕，他们进行了当地的独家发布活动，通过当地媒体和社交媒体进行广告宣传。这为“想要邀请的人”创造了一个当地的嗡嗡声，并兴奋地看到这家餐馆的开张。

4.行动：明确CTAS定位在Facebook网站微博（电话预约），网站（致电预订）和本地广告（打电话接受折扣或报价。

案例研究没有强调保留，虽然有很多方法可以提高邮件列表或社交平台的忠诚度，这些邮件列表或社交平台提供有关优惠和活动的消息，产品范围的折扣，根据访问频率的折扣等。

CUSTOMER BEHAVIOUR

Motivation and values

What are values and what role do they play in consumer behaviour? Use theories and examples to support your answer.

The Self

Dr L Spiteri Cornish

Last Lecture…
We discussed that:
Perception is a three-stage process that translates stimuli into meaning.
Products and persuasion messages often appeal to our senses, but we won’t be influenced by most of them.
The design of a product today is a key driver of its success or failure.

Lecture Objectives
After this lecture, you should understand why:
Self-concept strongly influences consumer behavior.
Products often play a pivotal role in defining the self-concept.
The role of self-esteem in buying behavior
The difference between real and actual self and the role of products in bridging this gap
The role of extended self in our buying decisions

A relatively new concept that regards people and their relationship to society.
Takes the idea that each human life is unique, rather than a part of a group.
Accepts the notion that the self is an object to be pampered.
The self is divided into an inner, private self and an outer, public self.
What is the Self?
Hamachek, Don E. (1992). Encounters with the self, 4th ed. San Diego, CA, US.
van Dijck, J. (2013) ‘You have one identity’: performing the self on Facebook and LinkedIn”, Culture & Society 35(2) 199–215 .

The Self – First Theories
Freudian Theory –much of one’s adult personality stems from a
fundamental conflict between a person’s desire to gratify
her physical needs and the necessity to function as a
responsible member of society.
This struggle is carried out in the mind among three systems:
The ID – about immediate gratification, which operates according to the pleasure principle. Our basic desire is to maximise pleasure and avoid pain. Guides a person towards pleasurable acts without regard for consequences
The SUPEREGO – This is counter to the id. This is also known as the person’s conscience. It internalises society’s rules (parents teaching) and prevents the id from seeking selfish gratification. (a referee in the fight between temptation and virtue)
The REALITY PRINCIPLE – The ego tried to balance these opposing forces according to the reality principle, which means it finds a way to gratify the id that the outside world will find acceptable. (this is where Freudian theory applies to Marketing)
Lapsley, D. K. and Stey, P. C. (2011). Id, Ego, and Superego, in V.S. Ramachandran (Ed.), Encyclopedia of Human Behavior, 2nd Ed. Elsevier.
Meissner, W. W. (2000). The self as structural. Psychoanalysis & Contemporary Thought, 23(3), 373-416.

Self-Concept
Self-concept: the beliefs a person holds about his/her own attributes, and how he/she evaluates these qualities
Attribute dimensions: content, positivity, intensity, stability over time, and accuracy
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

Self-Esteem
Self-esteem: the positivity of a person’s self-concept
Low self-esteem: think they will not perform well
High self-esteem: think they will be successful and will take risks

Marketing & Self-Esteem

Self-Esteem Advert 2

Self-Esteem Advert 3

Self-Esteem_Fat Models

Self-Esteem Advert

Ideal
Actual
Many consumers engage in the process of impression management where they work hard to manage what others think of them by strategically choosing clothing and other cues that will put them in a good light. Although most people experience a discrepancy between their real and ideal selves, for some consumers this gap is larger than for others.

IDENTITY

Real and Ideal Selves
Ideal self: our conception of how
we would like to be
Actual self: our more realistic appraisal of the qualities we have
Products can:
Help us reach ideal self
Be consistent with actual self
Impression management means that we work to “manage” what others think of us

Lucia Malär, L., Krohmer, H., Hoyer, W.D. and Nyffenegger, B. (2011). Emotional Brand Attachment and Brand Personality: The Relative Importance of the Actual and the Ideal Self. Journal of Marketing: 75(4), pp. 35-52

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We choose some products because we think they are consistent with our actual self, while we buy others to help us reach an ideal standard. We may strategically choose clothing and other products to show off to others. In other words, we are managing their impression of us with our product choices.

You Are What You Consume
Social identity as individual consumption behaviors.
Products can shape the self – you are what you consume.
Question: Who am I now?
Answer: To some extent, your possessions!
Inference of personality based on consumption patterns
Consumers may attach themselves to product to maintain self-concept
Surbhi, D. (2016). Real vs ideal self: A study of identity creation and desired images on Facebook, Journal of Applied Journalism & Media Studies, 5(1), 85-102(18)

Identity Marketing
A person exhibits attachment to an object to the extent that it is used by that person to maintain his or her self-concept. Objects act as security blankets by reinforcing our identities, especially in unfamiliar situations.
Symbolic self-completion theory predicts that people who have an incomplete self-definition, or lack of confidence tend to complete this identity by acquiring and displaying symbols associated with it (e.g., men and “macho” products).
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

Self/Product Congruence
Consumers demonstrate their values through their purchase behavior
Self-image congruence models: we choose products when attributes matches the self
Product Usage
Self-Image
=
Leilei G., Wheeler, C. and Shiv, B. (2008) ,”The “Shaken Self”: Product Choices As a Means of Restoring Self-View Confidence”, Advances in Consumer Research, 35,, 776-777.

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Research supports this idea that there is a match between product usage and self-image. In one study, car owners’ rating of themselves tended to match their perceptions of their cars. In another study, observers were able to match photos of male and female drivers to the cars they drove 70% of the time.

Self/Product Congruence

Product

Self
More overlap – better
you like the product

OBJECTIVE: It is important to understand how products play a key role in defining the self-concept
Self-image congruence models predict that products will be chosen when their attributes match some aspect of the self. These models assume a process of matching between product image and the consumer self-image.
Although research results are mixed, the ideal self appears to be more relevant than the actual self as a comparison standard for highly expressive social products.

The Extended Self
Extended self: external objects that we consider a part of us
Levels of extended self:
Individual: personal possessions (cars, clothing)
Family: residence and furnishings
Community: neighborhood or town where you live
Group: social or other groups
Belk, R.W. (1988) Possessions and the Extended Self, Journal of Consumer Research, September p139-68

The ideal – many consumers are motivated to match up to an ideal appearance and often go to great lengths to change aspects of their physical selves.
Size – the pressure to be slim is continually reinforced by advertisers and by peers.
Image distortions – many people perceive a strong link between self-esteem and appearance and some exaggerate this connection even more and sacrifice greatly to attain what they consider to be a desirable body image.
Cosmetic surgery and body decoration and mutilation changes a person’s perception of their body image.
Body Image
Noh, M. and Mosier, J. (2014) Effects of young consumers’ self-concept on hedonic/utilitarian attitudes towards what is ‘cool’, Journal of Fashion and Marketing and Management, 9(4), 450–467.
Law, D., Wong, C. and Yip, J. “2012” How does visual merchandising affect consumer affective response? An intimate apparel experience, European Journal of marketing, 46(1/2), pp.112 – 133.

Ideals of Beauty
Female: high forehead, full lips, short jaw, small chin and nose
Male: Heavy lower face, slightly above average height and prominent brow.
Models becoming thinner/more muscular over last 3 decades (waif look)
Consumers willing to endure to achieve ideal e.g.corsets, high heels, waxing, cosmetics, health clubs
Male/Female ideal different for men than for women/Men
Noh, M. and Mosier, J. (2014) Effects of young consumers’ self-concept on hedonic/utilitarian attitudes towards what is ‘cool’, Journal of Fashion and Marketing and Management, 9(4), 450–467.

Beauty Ideals over time

Beauty ideals have shifted over time. A study of 50 years of Playboy centerfolds shows that women have become less shapely and more androgynous since Marilyn Monroe graced the first edition.
The ideal body type of Western women has changed radically over time, and these changes have resulted in a realignment of sexual dimorphic markers—those aspects of the body that distinguish between the sexes.

Working on the Body
Fattism
Cosmetic surgery
Body decoration and mutilation
Body piercing

Society is obsessed with weight. Though it began as America’s obsession, the cultural priority on thinness is spreading to other countries. Still, even with the ideal of thin, the U.S. consumer today is larger than 60 years ago. The typical woman’s body is not as petite as it used to be.
Consumers increasingly choose to have cosmetic surgery to change a poor body image or to enhance appearance. These may include breast augmentation, liposuction, nose jobs, face lifts, and other enhancements.
Decorating the self can serve several purposes. Some of these are to:
Distinguish group members from nonmembers
Place the individual in the social organization
Place the person in a gender category
Enhance sex-role identification
Indicate desired social conduct
Indicate high status or rank
Provide a sense of security
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Virtual Identity
People are assuming virtual identities in cyberspace
Avatars represent visual identity

To do…
Read Chapter on “The Self”
Read the following article:
Belk, R.W. (1988) Possessions and the Extended Self, Journal of Consumer Research, September p139-68

OBJECTIVE: It is important to understand that culture is like a society’s personality and it shapes our identities as individuals

Culture includes both abstract ideas, such as values and ethics, and material objects and services, such as the automobiles, clothing, food, art, and sports a society produces. Put another way, it’s the accumulation of shared meanings, rituals, norms, and traditions among the members of an organization or society.
We simply can’t understand consumption unless we consider its cultural context: Culture is the “lens” through which people view products.
Our culture determines the overall priorities we attach to different activities and products, and it also helps to decide whether specific products will make it. A product that provides benefits to members of a culture at any point in time has a much better chance to achieve marketplace acceptance.

Last Lecture…
We discussed :
That self-concept strongly influences consumer behavior.
That products often play a pivotal role in defining the self-concept.
The role of self-esteem in buying behavior
The difference between real and actual self and the role of products in bridging this gap
The role of extended self in our buying decisions

Lecture Objectives
After this lecture, you should understand that
A culture is a society’s personality; it shapes our identities as individuals.
Myths are stories that express a culture’s values, and in modern times marketing messages convey these values.
Rituals play an important part in our lives and marketers adopt them as part of their targeting strategies.

https://www.youtube.com/watch?v=6_WAmt3cMdk

Culture and ‘weird’ foods

What is Culture?
Characteristics of Culture
Culture is learned
Culture is unconscious
Culture is Symbolic
Culture is a way of life
Culture is Dynamic
“Everything that people have, think, and do as members of a society” (Ferraro, 2005)
Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour. Prentice Hall: London

Values
Norms
Ideas/Beliefs
Attitudes
Symbols
Traditions
Artifacts
Dimensions of Culture

Defining Culture
The accumulation of shared meanings, rituals, norms, and traditions among members
Defines a human community, its individuals, its social organizations, its economic and political system.
Includes both abstract ideas, such as values and ethics, as well as the material objects and services, such as cars, clothing, food, art and sports.
Individual consumers and groups of consumers are but part of culture, and culture is the overall system within which other systems are organized.”
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

What do these products say about today’s culture?

Hong Kong Secret Night Meal

Studying Culture in CB
Culture is the lens through which consumers view products and try to make sense of their own and other people’s behaviour.
Consumption choices cannot be understood without considering the cultural context in which they are made.
Culture determines
the overall priorities that a consumer attaches to different activities and products.
the success or failure of specific products and services.

The material evidence of what a cultures does
What its people value
What attitudes prevail, how they conduct their lives
Usually embody the ideas and traditions of a society
Cultural Artifacts

De Mooij, M. and Hofstede, G. (2011) Cross-Cultural Consumer Behavior: A Review of Research Findings Journal of International Consumer Marketing, 23, pp. 181–192, 2011 Copyright �

Norwegians Don’t Believe in God

Hersey Struggles with China Weak Chocolate Appetite

Understanding Culture
Norms: rules dictating what is right or wrong
Enacted norms: explicitly decided on (e.g., green light equals “go”)
Crescive norms: Embedded into a culture and only discovered through interaction with other members of that culture:
Customs: norms handed down from the past that control basic behavior (e.g. household roles or special ceremonies)
Mores: custom with a strong moral overtone (e.g. incest; sexuality)
Conventions: norms regarding the conduct of everyday life (e.g. correct way to host a dinner party).
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

The Italians Who Prefer American Coffee

Culture is the lens through which people view products as well as companies and brands!
Culture channels consumer values, attitudes, motives and goal directed behavior, as well as their personalities.
Culture influences the overall priorities consumers attach to different activities and products
Consumption choices cannot be understood without considering the cultural context in which they are made
Determines the success or failure of specific products or services
Determines the success or failure of marketing communications
Why should Marketers Understand Culture?

Luna, D. and Forquer Gupta, S. (2001) “An integrative framework for cross‐cultural consumer behavior”,International Marketing Review, Vol. 18 Iss: 1, pp.45 – 69

Chocolate Fries in Japan

Hiring Millenials in Japan

Culture & Marketing
Colgate’s Cue toothpaste had problems in France as cue is a crude term for “butt” in France.
Parker pen mistook embarazar (to impregnate) to mean to embarrass and ran an ad in Mexico stating “It won’t leak in your pocket and make you pregnant”.
Ikea removed women from its catalogue in Saudi Arabia which was met by worldwide protests and complaints.
American Airlines introduced its new leather first-class seats in Mexico by saying “Fly in leather” which literally translates to “fly naked“.
Many companies have had to learn that white is the colour of mourning in the Far East while it means purity in many Western countries and change their packaging and advertising accordingly.

China Racist Whitewashing Advert

Brand Names Outside the USA

Chevrolet Nova didn’t do well in Spanish speaking countries …Nova means ‘No Go’
In Brazil the Ford Pinto flopped because Pinto was Brazilian slang for “tiny male genitals.” Ford pried all the nameplates off and substituted Corcel, which means horse.
Bacardi concocted a fruity drink with the name ‘Pavian’ to suggest French chic … but ‘Pavian’ means ‘baboon’ in German.
A peanut-packed chocolate bar targeted at Japanese teenagers needing energy while cramming for exams ran into a belief that eating peanuts and chocolate causes nosebleeds.
Coors slogan, “Turn it Loose,” translated into Spanish as “Suffer From Diarrhea.”
Jolly Green Giant translated into Arabic means “Intimidating Green Ogre.”

Puffs tissues had a bad name in Germany since “Puff” is a colloquial term for whorehouse.
Chicken magnate Frank Perdue’s slogan “It takes a tough man to make a tender chicken, “translated into Spanish came out as “It takes a sexually stimulated man to make a chicken affectionate.”
In Italy, a campaign for Schweppes Tonic Water translated the name into”Schweppes Toilet Water.”
Beta Systems of Germany prefaced all its software products in North America with the word Beta, which in the Software business is pre-release testing phase of the product meaning it’s not ready for general use.
Japan’s 2nd-largest tourist agency, the Kinki Nippon Tourist Co., changed its name after it began receiving requests for unusual sex tours when it entered English-speaking markets.
Scandinavian vacuum manufacturer Electrolux used the following in an American campaign, “Nothing sucks like an Electrolux”.

Hofstede’s 4 Dimensions of Culture
Power
Distance
Uncertainty
Avoidance
Masculine
versus
Feminine
Individualism
versus
Collectivism
Way members perceive differences in power when they form interpersonal relationships
Degree to which people feel threatened by ambiguous situations
Degree to which sex roles are clearly delineated
Extent to which culture values the welfare of the individual versus that of the group

Discussion of Theory
Study based on IBM: 64 national subsidiaries, 116,000 workers (not just managers), three world regions
Reports averages; does not describe exact individual situations
IBM values may overwhelm national values
Privileged group
Researcher bias? Western stereotypes and culturally biased conclusions?
Many recent studies validate Hofstede’s dimensions
De Mooij, M. and Hofstede, G. (2011) Cross-Cultural Consumer Behavior: A Review of Research Findings Journal of International Consumer Marketing, 23, pp. 181–192, 2011 Copyright �

MYTHS AND RITUALS

A Myth is a Story Containing Symbolic Elements That Express the Shared Emotions and Ideals Of a Culture.
Mythic Characters and symbols are often used in advertising

Myths
Myth: a story containing symbolic elements that represent the shared emotions/ideals of a culture

Myths in Modern Popular Culture
Myths are often found in comic books, movies, holidays, and commercials
Consumer fairy tales: Disney weddings
Monomyths: a myth that is common to many cultures (e.g. superhero). Many present characters and plot structures that follow mythic patterns

Victory
Liberation
The raising of the flag
Good guys coming making the world safe for democracy
Conquering repressive evil
America coming together and struggling against insurmountable odds
Freedom to buy
Freedom to choose the clothes that free them from the “trends” of the masses
Freedom is a style, not a struggle
Is this what Freedom has Bought?
Symbol
Myth &
Advertising

Rituals
Rituals are sets of multiple, symbolic behaviors that occur in a fixed sequence and that tend to be repeated periodically
Grooming
Gift-giving
Holiday
Rites of passage
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

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When you hear the word, ritual, you may think of something formal and serious like the ritual of taking communion at church. In reality, consumers have many ritualistic activities. Having Sunday brunch, going daily to Starbucks, and tailgating before football games are all examples of commonplace rituals.

Rituals
Businesses supply ritual artifacts (items needed to perform rituals) to consumers
Wedding rice, birthday candles, diplomas, online gift registries

Grooming Rituals
All consumers have private grooming rituals
Aid transition from private to public self (or back again)
Inspires confidence, cleanses body of dirt
Before-and-after phenomenon
Private/public and work/leisure personal rituals
Beauty rituals reflect transformation from natural state to social world or vice versa
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

Gift-Giving Rituals
Gift-giving ritual: consumers procure the perfect object, meticulously remove price tag, carefully wrap it, then deliver it to recipient
Gift giving is a form of:
Economic exchange
Symbolic exchange
Social expression
Every culture prescribes certain occasions and ceremonies for giving gifts
Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour. Prentice Hall: London

Gift-giving stages
Gestation: procures an item to mark some event
Reformulation: giver and receiver redefine the bond between them
Presentation: process of gift exchange
Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour. Prentice Hall: London

The gift-giving ritual proceeds in three distinct stages:
During gestation the giver procures an item to mark some event. This event may be either structural (i.e., prescribed by the culture, as when people buy Christmas presents) or emergent (i.e., the decision is more personal and idiosyncratic).
The second stage is presentation, or the process of gift exchange. The recipient responds to the gift (either appropriately or not), and the donor evaluates this response.
In the reformulation stage the giver and receiver redefine the bond between them (either looser or tighter) to reflect their new relationship after the exchange. Negativity can arise if the recipient feels the gift is inappropriate or of inferior quality. For example, the hapless husband who gives his wife a vacuum cleaner as an anniversary present. The donor may feel the response to the gift was inadequate or insincere or a violation of the reciprocity norm, which obliges people to return the gesture of a gift with one of equal value.

Harvey Nichols_Avoiding Gift Face

Holiday Rituals- Use ritual artifacts and scripts.

On holidays, we step back from our everyday lives and perform ritualistic behaviors unique to those occasions.
These special events require tons of ritual artifacts and scripts. The Thanksgiving holiday script includes serving foods such as turkey and cranberry sauce that many of us consume only on that day, complaining about how much we’ve eaten (yet rising to the occasion to find room for dessert), and (for many) a postmeal trip to the couch for the obligatory football game.

Holiday Rituals
Consumers perform rituals unique to those occasions (Christmas; Halloween; Easter)
Marketers find ways to encourage gift giving
Businesses invent new occasions to capitalize on need for cards/ritual artifacts
Secretaries’ Day and Grandparents’ Day
Retailers elevate minor holidays to major ones to provide merchandising opportunities
Valentine’s Day

http://www.whychristmas.com/cultures/

To do…

Read chapter on “Culture”
Read the following paper:
Craig and Douglas (2006) “Beyond national culture: implications of cultural dynamics for consumer research”, International Marketing Review, 23(3), p. 322-342

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OBJECTIVE: It is important to understand that culture is like a society’s personality and it shapes our identities as individuals

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When you hear the word, ritual, you may think of something formal and serious like the ritual of taking communion at church. In reality, consumers have many ritualistic activities. Having Sunday brunch, going daily to Starbucks, and tailgating before football games are all examples of commonplace rituals.
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The gift-giving ritual proceeds in three distinct stages:
During gestation the giver procures an item to mark some event. This event may be either structural (i.e., prescribed by the culture, as when people buy Christmas presents) or emergent (i.e., the decision is more personal and idiosyncratic).
The second stage is presentation, or the process of gift exchange. The recipient responds to the gift (either appropriately or not), and the donor evaluates this response.
In the reformulation stage the giver and receiver redefine the bond between them (either looser or tighter) to reflect their new relationship after the exchange. Negativity can arise if the recipient feels the gift is inappropriate or of inferior quality. For example, the hapless husband who gives his wife a vacuum cleaner as an anniversary present. The donor may feel the response to the gift was inadequate or insincere or a violation of the reciprocity norm, which obliges people to return the gesture of a gift with one of equal value.
On holidays, we step back from our everyday lives and perform ritualistic behaviors unique to those occasions.
These special events require tons of ritual artifacts and scripts. The Thanksgiving holiday script includes serving foods such as turkey and cranberry sauce that many of us consume only on that day, complaining about how much we’ve eaten (yet rising to the occasion to find room for dessert), and (for many) a postmeal trip to the couch for the obligatory football game.
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Understanding the
Consumer
Income and Social Class

Dr L. Spiteri Cornish

Last Lecture…
We discussed:
The historical advancement of women from a marketing/consumer behavior perspective
The role of women in contemporary societies and the way they are portrayed in advertising
The role of men in contemporary society and the way they are portrayed in advertising
How men and women differ in their buying behavior.

Lecture Objectives
After this lecture, you should understand :
That both personal and social conditions influence how we spend our money.
How we group consumers into social classes and how this defines where they stand in society.
That a person’s desire to make a statement about his social class, or the class to which he hopes to belong, influences the products he likes and dislikes.

What is Social Class?
Social class refers to an individual’s standing in society.
Social class can be classified with various market segments, such as upper, middle, and lower class.
Social class groups relate their purchase decisions to their purchasing power, which is dependent upon the group’s disposable income.

Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

What is Social Class?
Virtually all groups make distinctions among members in terms of relative superiority, power, and access to valued resources.
Every individual senses that he is more at home with and more acceptable to some groups than to others
Consumers often use external symbols of status to indicate their position in society.
Can you give me examples of external symbols?
Zubin, S and Blythe, J. (2016) Consumer behaviour. Sage: London.

Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour. Prentice Hall: London

Social Classes in UK

Savage M, Devine F, Cunningham N, et al. (2013) A new model of social class? Findings from the BBC’s Great British Class Survey Experiment. Sociology 47(2): 219–250

Social Class
Social class structures begin to evolve from the moment an individual is born into a particular family structure.
Many societies are divided into the “haves” and the “have-nots”, resulting in social stratification.
Social stratification is the process by which scarce and valuable resources are distributed unequally to status positions (Solomon, Zaichkowsky, Polegato, 2004).

Social Class Components
Social class is comprised of three major components: occupation, income, and education.
Educational attainment is strongly linked to income and occupation (Solomon, Zaichkowsky, Polegato, 2004), since a good education tends to lead to better and higher paying jobs.
Occupation plays a critical factor in consumer spending: it specifies their leisure & living patterns ; This helps marketers understand which products appeal to a specific social class.
Income itself is not a strong indicator of social class, but how that income is spent is.
Partha Dasgupta, P., Southerton, D., Ulph, A. and Ulph, D. (2016). Consumer Behaviour with Environmental and Social Externalities: Implications for Analysis and Policy, Environmental and Resource Economics, 65(1),191–226

Social Mobility

Climbing Up the Ladder (0.30 – 3.50)
Barki, E. and Parente, J. (2010) Consumer behaviour of the base of the pyramid market in Brazil, Greener management international, 11-23

Socio-Economic Groupings
A Upper Middle Class High managerial/ professional
e.g.company director, doctor, solicitor
B Middle Class Intermediate managerial/admin/professional
C1 Lower Middle Class Supervisory/clerical/junior managerial
C2 Skilled Working Class Skilled manual workers
D Working Class Semi-skilled or unskilled workers
E Pensioners, casual workers Pensioners, unemployed, homeless

A basic assumption of economic psychology is that consumer demand for goods and services depends on their ability and willingness to buy.
Discretionary spending only occurs when people are able and willing to spend money on items above and beyond their basic needs.
Consumer confidence or the state of mind consumers have about their own personal situation, as well as their feelings about their overall economic prospects helps to determine whether they will purchase goods, take on debt or save their money.
Factors Influencing Consumer Spending
Durmaz, Y., Kalyoncu, H., Üzeri, Y., Taşdemir, A. and Kalyoncu, H. (2014). A Theoretical Approach to the Influence of Social Class on Consumer Behavior, International Journal of Social Science, 3(3).

Targeting the Affluent
Marketers focus on targeting the affluent (upper) social class as this upscale market is comprised of individuals with significant resources to spend on expensive products.
An affluent social class is defined by their standard of living, where they receive their income, how they got it, and how long they have had it.
Solomon, M., Zaichkowsky, J. L. and Polegato, R. (2011) Consumer Behaviour: Buying, Having, Pearson: London.

Targeting the Affluent
Affluent people are more likely to buy:
Theatre, art, books, travel (especially unusual foreign) donations to good causes, prestige schooling, membership of private clubs, high quality prestige brands.
More likely to engage in careful information search.
Less likely to use price as an indicator of quality but rely on actual product characteristics
More concerned about long term purchases

Targeting the Affluent
The affluent social class can be divided further into three groups based on their attitudes toward luxury:
Luxury is a functional need:
Luxury is a reward:
Luxury is an indulgence:

O’Cass, A. (2012). Exploring consumer status and conspicuous consumption, Journal of Consumer Behaviour, 4(1), 25–39

Targeting the Middle Classes
Those in the middle classes work with their minds.
Often provide professional service to the upper classes e.g. healthcare, education.
More than one segment.
Secure jobs, long hours, high psychological demands.
Well educated/ educated parents.
Becoming more diverse: more multi-cultural (immigration),
Motohashi, K. (2015) Marketing Theory in Global Business Strategy, Springer: USA.

Targeting the Middle Class
More likely to spend on:
Housing (location important), education, quality branded clothes, home furnishings, wine, eating out, golf, tennis, squash, skiing, buy on credit
Spend on comfort, pleasure, youth, time-savers.
Value substance over style and quality over show.
Look to Upper Classes (Cultural trickle-down)for guidance on dining etiquette, apparel selection etc.
Williams, T. G. 2002) “Social class influences on purchase evaluation criteria “, Journal of Consumer Marketing,19(3), pp.249 – 276

Targeting the Working Class
People who work with their hands; Routine, mechanised jobs with little job security.
Becoming more ethnic, more female, more educated.
More unemployment, illness and shorter lives.
Children aspire to fashion brands as a means of symbolic self-completion.
Resistant to change, traditional gender roles exist: Women in home, men the breadwinners, men go hunting, fishing, to the pub, mend the car.
More limited horizons: socially, psychologically and geographically.

Motohashi, K. (2015) Marketing Theory in Global Business Strategy, Springer: USA.

Targeting the Working Class
More likely to:
Eat at home, spend rather than save, judge quality by price, shop in mass retail/discount stores, buy domestic vehicles over foreign
Be more brand loyal – look for popular brands, often spend more than they need to.
Be more concerned with short term needs
Believe in external control of their lives.
Smoke, drink and eat fast food.
Lively ads and promos work well as they break the monotony of their mundane lives.
Motohashi, K. (2015) Marketing Theory in Global Business Strategy, Springer: USA.

Targeting the Poor?
Approximately 14 million people families live in poverty in the UK (Oxfam 2015).
Although they obviously spend significantly less than the more affluent classes, they have the same basic needs as all social classes (i.e. food, housing, etc.).
Unfortunately, most businesses are reluctant to open in low-income areas. Many residents of very poor neighbourhoods must travel vast distances to have access to supermarkets, drug stores, etc.
Solomon, M., Zaichkowsky, J. L. and Polegato, R. (2011) Consumer Behaviour: Buying, Having, Pearson: London.
Rogers, H. P., Peyton, R., and Berl, R. L. (2012) The Notion of Social Class and the Minority Buyer, Minority Marketing: Issues and Prospects, Proceedings of the Academy of Marketing Science, pp 28-32.

Status Symbol
A major component of social class is impacted by the status symbols associated with certain products.
Can you think of any??
Members of affluent social classes purchase these status symbols to display their wealth.
Keeping up with the Jones’s
Status-seeking: motivation to obtain products that will let others know that you have “made it”
Status symbols vary between countries, based on the states of their economic and technological development, and common status symbols change over time with societal and cultural changes.
Luxury Global Consumers 2015

Social Class Marketing Implications
Social class has a significant impact on purchasing decisions. Consumer behaviour is heavily reliant on the concept of social class, which defines consumer consumption patterns.
As such, social class is associated with the values and life-styles of consumers, both of which significantly determine the consumption structure and behaviour for numerous products.
It is becoming increasingly important for marketers to begin marketing to lower income earners, especially in rapidly developing areas (i.e. China, India, etc.). By developing ways of producing high quality products at a lower cost, lower-income consumers will be able to purchase products that were until then out of their price range.
Williams, T. G. 2002) “Social class influences on purchase evaluation criteria “, Journal of Consumer Marketing,19(3), pp.249 – 276

Income & Social Class
Income is NOT strongly related to social class because:
Income levels overlap between social classes
Incomes increase with age but older people are not of a higher social class
Dual career families generate higher incomes but not necessarily higher status
Income cannot explain social class but social class can explain how income is used
Status is more closely related to occupation than income.
Classes are mostly to do with social networks and peer judgements of “people quality”
Also : what about future aspirations?

Relative value of social class versus income in predicting consumer behaviour:
Social class appears to be a better predictor of purchases that have symbolic aspects.
Income is a better predictor of major expenditures that do not have status or symbolic aspects.
Social class and income data together are better predictors of purchases of expensive, symbolic products.
Income and Social Class
Zubin, S and Blythe, J. (2016) Consumer behaviour. Sage: London.

Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour. Prentice Hall: London

To Do…
Read the chapter on “Income and Social Class.”
ONLY if you have time (Coursework comes first!!!) read the following:
Sobel, M.E., De Graaf, N.D, Heath, A. & Zou, Y (2003) Men matter more: the social class identity of married British women 1985-1991, Journal of Royal Statistical Society, pp37-52

Motivation and Values
Dr L Spiteri Cornish

We discussed:
That both personal and social conditions influence how we spend our money.
How we group consumers into social classes and how this defines where they stand in society.
That a person’s desire to make a statement about his social class, or the class to which he hopes to belong, influences the products he likes and dislikes.

After this lecture, you should understand :
That it’s important for marketers to recognize that products can satisfy a range of consumer needs.
That the way we evaluate and choose a product depends upon our degree of involvement with the product, the marketing message, and/or the purchase situation.

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Making more Babies

Marketers to recognize that products can satisfy a range of consumer needs.
Marketers give us solutions!

Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. The need creates a state of tension that drives the consumer to attempt to reduce or eliminate it. This need may be utilitarian (i.e., a desire to achieve some functional or practical benefit, as when a person loads up on green vegetables for nutritional reasons) or it may be hedonic (i.e., an experiential need, involving emotional responses or fantasies). The desired end state is the consumer’s goal . Marketers try to create products and services to provide the desired benefits and help the consumer to reduce this tension.
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A need creates a state of tension that drives the consumer to attempt to reduce or eliminate it.
The desired end state is the goal
The degree of arousal is drive
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

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This need may be utilitarian (i.e., a desire to achieve some functional or practical benefit, as when a person loads up on green vegetables for nutritional reasons) or it may be hedonic (i.e., an experiential need, involving emotional responses or fantasies, as when Basil longs for a juicy steak). The desired end state is the consumer’s goal.
Marketers try to create products and services to provide the desired benefits and help the consumer to reduce this tension. Whether the need is utilitarian or hedonic, the magnitude of the tension it creates determines the urgency the consumer feels to reduce it. We call this degree of arousal a drive. We can satisfy a basic need in any number of ways, and the specific path a person chooses is influenced both by her unique set of experiences and by the values his or her culture instills. These personal and cultural factors combine to create a want, which is one manifestation of a need.

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Stimulus
Need
Recognition
Drive
State
Goal
Directed
Behavior
Actual state
Desire State
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

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NEED FOR ACHIEVEMENT
Value personal accomplishment
Place a premium on products that signify success (luxury brands, technology products)
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NEED FOR AFFILIATION
Want to be with other people
Focus on products that are used in groups (alcoholic beverages, sports bars)
NEED FOR POWER
Control one’s environment
Focus on products that allow them to have mastery over surroundings (muscle cars, loud boom-boxes)
NEED FOR UNIQUENESS
Assert one’s individual identity
Enjoy products that focus on their unique character (perfumes, clothing)
Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour. Prentice Hall: London

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Need for achievement refers to the desire to accomplish something. Sometimes people will express a need for achievement with premium products that express success.
Need for affiliation is the desire to be with other people. Products that express emotion and aid in group activities are relevant.
Need for power is the need to control one’s environment. Products that allow us to feel mastery over our surroundings and situation meet this need.
Need for uniqueness is the need to assert one’s individual identity. Products that pledge to illustrate our distinct qualities meet this need.

Motivation satisfies either utilitarian or hedonic needs.
Satisfying utilitarian needs implies that consumers emphasize the objective, tangible attributes of products e.g. fuel economy in a car.
Satisfying hedonic needs implies that consumers emphasize subjective and experiential aspects, e.g. self confidence, excitement, etc.
Overby, J. and Lee, E. (2006). The effects of utilitarian and hedonic online shopping value on consumer preference and intentions, Journal of Business Research 59, 1160–1166.
Kelley C., Anderson, D., et al. (2008). Inﬂuence of hedonic and utilitarian motivations on retailer loyalty and purchase intention: a Facebook perspective. Journal of Retailing and Consumer Services, 21, 773–779.

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Motivational Conflict
APPROACH/AVOIDANCE
APPROACH/APPROACH
AVOIDANCE/AVOIDANCE

A goal has valence, which means that it can be positive or negative. Therefore, goals can be sought or avoided. There are three general types of conflicts:
Approach-approach conflict—a person must choose between two desirable alternatives such as choosing between two favorite brands of automobiles.
Approach-avoidance conflict—many products or services we desire have negative consequences attached to them. An example is having to undergo a root canal procedure in order to rectify tooth decay.
Avoidance-avoidance conflict—a choice between two undesirable alternatives such as having to spend more on an older car or buy a newer more expensive car.

Two desirable alternatives
Cognitive dissonance
Positive & negative aspects
of desired product
Guilt of desire occurs
Facing a choice with two
undesirable alternatives
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

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A person has an approach–approach conflict when she must choose between two desirable alternatives. The theory of cognitive dissonance is based on the premise that people have a need for order and consistency in their lives and that a state of dissonance (tension) exists when beliefs or behaviors conflict with one another. We resolve the conflict that arises when we choose between two alternatives through a process of cognitive dissonance reduction, where we look for a way to reduce this inconsistency (or dissonance) and thus we eliminate unpleasant tension.
Dissonance occurs when a consumer must choose between two products, both of which possess good and bad qualities. When he chooses one product and not the other, the person gets the bad qualities of the product he buys and loses out on the good qualities of the one he didn’t buy. This loss creates an unpleasant, dissonant state he wants to reduce. We tend to convince ourselves, after the fact, that the choice we made was the smart one as we find additional reasons to support the alternative we did choose—perhaps when we discover flaws with the option we did not choose (sometimes we call this “rationalization”). A marketer can bundle several benefits together to resolve an approach–approach conflict.

Types of Motivational Conflict

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Maslow’s Hierarchy of Needs: Does It Apply In A Collectivist Culture
Gambrel, P.A. and Cianci, R. (2003). Maslow’s Hierarchy of Needs: Does It Apply in A Collectivist Culture Journal of Applied Management and Entrepreneurship 8.2, 143-161
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This exhibit illustrates Maslow’s Hierarchy of Needs. The hierarchy includes five levels: 1) physiological, 2) safety, 3) belongingness, 4) ego needs, and 5) self-actualization. Marketers’ application of this hierarchy has been somewhat simplistic, especially as the same product or activity can gratify different needs. For example, one study found that gardening could satisfy needs at every level of the hierarchy:
• Physiological—“I like to work in the soil.”
• Safety—“I feel safe in the garden.”
• Social—“I can share my produce with others.”
• Esteem—“I can create something of beauty.”
• Self-actualization—“My garden gives me a sense of peace.”

Koltko-Kulik, W. (2005). Rediscovering the later version of Maslow’s hierarchy of needs: Self-transcendence and opportunities for theory, research, and unification. Review of General Psychology, 10(4), 302-317

History will see advertising “as one of the real evil things of our time. It is stimulating people constantly to want things, want this, want that.”
Malcolm Muggeridge, quoted in Eric Clark, The Want Makers: Inside the World of Advertising, 1988, New York: Penguin Books, p. 371

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PMS Chocolate_Wants Needs

Solomon’s Wants vs Needs for Marketers

Got Milk?

Involvement: perceived relevance of an object based on one’s needs, values and interests
Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

OBJECTIVE: It is important to understand why the way we evaluate and choose a product depends upon our degree of involvement with the product, the marketing message, and/or the purchase situation
We use the word object in the generic sense to refer to a product (or a brand), an advertisement, or a purchase situation. Consumers can find involvement in all these objects.

INERTIA

FLOW

Because a person’s degree of involvement can be conceived as a continuum, consumption at the low end of involvement is characterized by inertia. In this state, decisions are made out of habit because the consumer lacks the information to consider alternatives. To the contrary, decisions can be very passionate and carry great meaning for a person. In consumer situations of high involvement, the consumer enters a flow state, where the consumer is in an elated state of focus and concentration and loses track of time.

Inertia: consumption at the low end of involvement (Decisions made out of habit (lack of motivation)
Flow : consumers are truly involved
Sense of control
Concentration
Mental enjoyment
Distorted sense of time
Carù, A., & Cova, B. (2003). Revisiting consumption experience: A more humble but complete view of the concept. Marketing Theory, 3(2), 267.

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Cult product: command fierce consumer loyalty, devotion, and even worship by consumers who are highly involved

Cult Branding_China

Cult Branding Done Right

Value: a belief that some condition is preferable to its opposite (E.g. looking younger is preferable to looking older)
People’s values play an important role in their consumption activities, since many products and services are purchased because it is believed that they will help attain a certain goal.
Products/services = help in attaining value-related goal

Lynn R. K. and Kennedy, P. (2013). “Using the list of values (LOV) to understand consumers”, Journal of consumer Marketing, Vol. 2 Iss: 4, pp. 49 – 56.

Values change over time. Values can be challenged.
Cultures differ in the relative importance they assign to universal values e.g. security, relationships/ This determines a country’s value system
Children learn their cultures core values from socialization agents such as parents, teachers and friends
The meaning of core values is dependent on the local cultural context
In many cases values can be universal – desire for health, wisdom, etc.

Brosch, T., and Sander, D. (2014). Appraising value: the role of universal core values and emotions in decision-making. Cortex, 59, 203-205.
Madhavan P., Lane, V. and Stansifer M.L. (2015) “A time-based analysis of changing consumer values in India”, Journal of Indian Business Research, 7(3), pp.271 – 291

Conscientious consumerism: consumer’s focus on personal health merging with a growing interest in global health
LOHAS (lifestyles of health and sustainability): Consumers who:
Worry about the environment
Want products to be produced in a sustainable way
Spend money to advance what they see as their personal development and potential
Menzel, S. and Green, T. L. (2013). Sovereign Citizens and Constrained Consumers: Why Sustainability Requires Limits on Choice. Environmental Values 22, pp. 59-79

https://www.gov.uk/government/statistics/uks-carbon-footprint

The carbon footprint measures, in units of carbon dioxide, the impact human activities have on the environment in terms of the amount of greenhouse gases they produce. The average American is responsible for 9.44 tons of CO2 per year! As the figure shows, a carbon footprint comes from the sum of two parts, the direct, or primary, footprint and the indirect, or secondary, footprint:
1) The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels, including domestic energy consumption and transportation (e.g., cars and planes).
2 The secondary footprint is a measure of the indirect CO2 emissions from the whole life cycle of products we use, from their manufacture to their eventual breakdown.
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Materialism refers to the importance people attach to worldly possessions.
Materialists: value possessions for their own status and appearance
The pursuit of happiness through acquisition rather than other means.
Judging others’ success by their material possessions.
Consumers either justify their own materialism or make excuses for it.
“The good life”…“He who dies with the most toys, wins”
Non-materialists: value possessions that connect them to other people or provide them with pleasure in using them
Goldsmith, R. E. (2012) Materialism, Status Consumption, and Consumer Independence. Journal of Social Psychology, 152(1), pp43-60.

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