Consumer- Behavior- Dr.

Hoyer

OBJECTIVES
Understand basic concepts of consumer
behavior in theory and practice.
Consumer Behavior Know how to apply practical knowledge into
Strategic Marketing Management decision
Dr. Truong Dinh Quoc Bao
making.
[email protected] Use the knowledge of Consumer Behavior, as a
Meeting by request consumer, to become a better consumer with a
higher awareness of the influences of market
forces on individuals.

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APPROACH METHODS STRUCTURE

Micro orientation: psychological consumer Part 1: An Introduction to Consumer

behaviors topics Behavior
Macro orientation: sociological consumer Part 2: The Psychological Core
behavior topics Part 3: The Process of Making Decisions
Micro è Macro approach. Part 4: The Influences of External and
Individual factors
Part 5: Consumer Behavior Outcomes

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Consumer- Behavior- Dr. Hoyer

STRUCTURE STRUCTURE
Chapter 1: UNDERSTANDING CONSUMER BEHAVIOR Chapter 9: CULTURAL AND SOCIAL CLASS INFLUENCES
Chapter 1 (extend): DEVELOPING AND USING ON CONSUMER BEHAVIOR
INFORMATION ABOUT CONSUMER BEHAVIOR Chapter 10: AGE, GENDER, HOUSEHOLD AND SOCIAL
Chapter 2: MOTIVATION, ABILITY, AND OPPORTUNITY INFLUENCES ON CONSUMER BEHAVIOR
Chapter 3: PERCEPTION (From exposure to comprehension) Chapter 11: VALUES, PERSONALITY, AND LIFESTYLES
INFLUENCES ON CONSUMER BEHAVIOR
Chapter 4: KNOWLEDGE AND MEMORY
Chapter 5: ATTITUDES Chapter 12: SYMBOLIC CONSUMER BEHAVIOR
Chapter 6-7: PROBLEM RECOGNITION AND Chapter 13: ADOPTION OF, RESISTANCE TO, AND
INFORMATION SEARCH, JUDGMENT AND DECISION DIFFUSION OF INNOVATIONS
MAKING
Chapter 8: POST-DECISION PROCESSES

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STRUCTURE Textbook and References

Consumer Behaviour, HOYER MACINNIS
CONSUMER’S
EXTERNAL AND
THE
PSYCHOLOGICAL
DECISION
MAKING
CONSUMER
BEHAVIOR
PIETERS CHAN NORTHEY, 2nd edition (Asia),
INDIVIDUAL CORE PROCESS OUTCOMES Cengage, 2021.
FACTORS
Hành vi người tiêu dùng, Nguy ễn Xuân Lãn, Ph ạm
- Motivation, ability, -Problem -Symbolic Consumer
- culture, social and opportunity recognition and Behavior
class,
- Perception
information search
-Adoption, Resistance, Th ị Lan H ương, Đ ường Th ị Liên Hà, Nhà xu ất b ản
tài chính, 2011.
-Age, gender, -Judgment and and Diffusion of
- Knowledge and
household, decision making innovation
memory
(optional) Consumer behavior: buying, having, and
social
-Post-Decision
- Attitudes
-Psychographics: Processes
Values, being, Michael R. Solomon, Solomon, Michael R,
Pearson Education Limited.
Personality, and
Lifestyles

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Consumer- Behavior- Dr. Hoyer

REQUIREMENTS KEY RULES

Attend all the classes

Be serious in class 1. Be always a dynamic learner.
Complete all the assignments and 2. Link the lessons with your own
projects that lecturer assign. situations or other’s situations
Get involve in discussing during 3. Figure out the relationship between
classes. the topics in the course, and between
this course and other Marketing
Study regularly practical issues that
subjects.
are related to the lessons.
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How do I grade you?

Chapter 1

Understanding Consumer
Behavior

by Bao T ruong 2023 by Bao T ruong 2023

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Consumer- Behavior- Dr. Hoyer

Learning Objectives What Is Consumer Behavior?

1. Define consumer behavior and explain the Consumer behaviour reflects
components that make up the definition the totality of consumers’
2. Identify the four domains of consumer behavior decisions with respect to the
that affect acquisition, usage, and disposition acquisition, consumption and
decisions
disposition of goods, services,
3. Discuss the benefits of studying consumer activities, experiences, people
behavior
and ideas by (human) decision-
4. Explain how companies apply consumer
making units [over time].
behavior concepts when making marketing
decisions by Bao T ruong 2023 by Bao T ruong 2023

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Exhibit 1.1 - What Is Consumer Behavior? Consumer Behavior

Acquisition, consumption, and disposition of

goods, services, time, and ideas by human
decision-making units
– Acquisition: Consumer comes to own an
offering
– Usage: Consumer uses an offering
– Disposition: Consumer discards an offering

How does this relate to marketing strategies and

tactics?
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Consumer- Behavior- Dr. Hoyer

Consumer Behavior (continued 1) Disposition

Dynamic process
Can involve many people
Involves many decisions
Involves consumer emotions and coping

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Exhibit 1.4 - Eight Ways to Acquire an What Affects Consumer

Offering Behavior?
Psychological core

• Motivation, ability, and opportunity

• From exposure to comprehension
• Memory and knowledge
• Attitude formation and change

Process of making decision

• Problem recognition and information search

• Judgment and decision making
• Post-decision processes

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Consumer- Behavior- Dr. Hoyer

What Affects Consumer

Forming and Retrieving Memories
Behavior? (continued)
Consumer behavior outcomes and issues

• Innovations: Adoption, resistance, and diffusion

• Symbolic consumer behavior
• Marketing, ethics, and social responsibility

Consumer’s culture

• Social influences on consumer behavior

• Consumer diversity
• Household and social class influences
• Psycholgraphics: Values, personality, and lifestyle

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Beneficiaries of Consumer
Influence of Reference Groups
Behavior Studies
Marketing managers
Ethicists and advocacy groups
Public policy makers and regulators
Academics
Consumers

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Consumer- Behavior- Dr. Hoyer

Marketing Implications
Marketing
of Consumer Behavior
Activity, set of institutions, and processes for Developing or implementing customer-
creating, communicating, delivering, and oriented strategy
exchanging offerings that have value – Segmentation of the market
Aimed at individuals, groups, and society – Profitability of each segment
– Characteristics of consumers in each segment
– Customer satisfaction with existing offerings
Selecting target market

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Marketing Implications Marketing Implications

of Consumer Behavior (continued 1) of Consumer Behavior (continued 2)
Developing products Positioning decisions
– Consumer ideas for new products – Positioning of competitive offerings
– Attributes that can be added or changed in – Positioning of one’s own offerings
existing products – Need for repositioning offerings
– Branding of offering
– Appearance of package and logo

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Consumer- Behavior- Dr. Hoyer

Marketing Implications Marketing Implications

of Consumer Behavior (continued 3) of Consumer Behavior (continued 4)
Promotion and marketing communication Pricing decisions
decisions – Price range of a product or service
– Communication objectives – Consumer sensitivity to price and price
– Appearance of marketing communications changes
– Location, time, and effectiveness of – Pricing tactics be used
advertisement Distribution decisions
– Sales promotion objectives and tactics – Time and convenience of consumers
– Effectiveness of sales promotion – Assortment of merchandise
– Number of sales personnel required to best – Store design
serve customers
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Chapter 2

Motivation, Ability, and

Opportunity (MAO)

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Consumer- Behavior- Dr. Hoyer

Learning Objectives Learning Objectives (continued)

1. Show how motivation influences high-effort 3. Explain how financial, cognitive, emotional,
behavior, high-effort information processing and physical, and social and cultural resources, plus
decision-making, and felt involvement age and education, can affect the individual’s
2. Discuss the four types of influences that ability to engage in consumer behaviors
determine the consumer’s motivation to process 4. Identify the three main types of influences on
information, make a decision, or take an action the consumer’s opportunity to process
information and acquire, consume, or dispose of
products

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Consumer Motivation
Motivation
and Effects
Inner state of activation that provides energy High-effort behavior
needed to achieve a goal – Drives that bring a goal closer and create a
Consumers can be motivated to acquire, use, willingness to spend time and money
or dispose of an offering High-effort information processing and
Are you a motivated person? decision-making
Can one change others’ motivation state in Motivated reasoning: Processing
general? Or in the marketplace? information in a way that allows consumers to
reach the conclusion they want to reach

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Consumer- Behavior- Dr. Hoyer

Consumer Motivation Consumer Motivation

and Effects (continued 1) and Effects (continued 2)
Felt involvement Objects of involvement
– Consumer's experience of being motivated – Product or retail category
with respect to products or services, or – Experiences
decisions and actions regarding these – Brands
– Types of involvement
– Ads
• Enduring
– Medium
• Situational (temporary)
• Cognitive
• Affective
• Response
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Drivers of Motivation Drivers of Motivation (continued)

Personal relevance
Need
• Something that has direct bearing on self that has
potentially significant consequence or implication • Internal state of tension experienced as a
discrepancy between current and ideal state
(physical or psychological)
Self-concept
Goal
• Mental view of who one is
• Outcome one would like to achieve
Values • Can be concrete or abstract and promotion-
focused or prevention-focused
• Abstract, enduring beliefs about what is right or wrong,
important, or good or bad
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Consumer- Behavior- Dr. Hoyer

Exhibit 2.3 - Maslow’s Hierarchy of Needs Exhibit 2.4 - Categorizing Needs

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Characteristics of Needs Types of Need Conflicts

Approach-avoidance conflict
Internally or externally activated • About acquiring or consuming an offering that fulfills one need
but fails to fulfill another

Need satisfaction is dynamic Approach-approach conflict

• About which offering to acquire when each can satisfy an

Exist in hierarchy important but different need

Avoidance-avoidance conflict

Can cause conflict • About which offering to acquire when neither can satisfy an
important and different need

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Consumer- Behavior- Dr. Hoyer

Goals and Emotions Goals and Emotions (continued 1)

Appraisal theory Self-control conflicts arise when individuals
– Proposes that emotions are based on individuals’ face decisions about actions related to goals
assessment of a situation or an outcome and its that are in conflict
relevance to his or her goals – Self-control: Regulates feelings, thoughts,
– Posits that emotions are affected by the and behavior in line with long-term goals
normative or moral compatibility, certainty, and
– Ego depletion: Outcome of decision-making
agency
effort that results in mental resources being
Positive and negative emotions experienced exhausted
during or after consuming a product or
service change in time or get satiated
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Marketing Implications
Goals and Emotions (continued 2) of Needs and Goals
Challenges in information processing and Enhancing motivation to process
emotional regulation communications
– Psychological conflict between desire and Product development and positioning
willpower Encouraging specific behaviors
– More focus on short-term pleasure and less on
long-term cost and unpleasurable experience

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Consumer- Behavior- Dr. Hoyer

Perceived Risk Perceived Risk (continued)

Extent to which the consumer anticipates: – Complex technology

– Negative consequences of an action to – Brand differentiation
emerge – Little confidence or experience in evaluation
– Positive consequences to not emerge – Opinions of others and fear of judgment
Tends to be high because of: What else increases risk of your
– New offering buying/consumption?
– High price

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Types of Perceived Risk Inconsistency with Attitudes

Performance Motivation to process information is:

Financial – High when information is moderately
Physical or safety inconsistent with one’s attitude
Social – Low when information is highly inconsistent
with one’s prior attitude
Psychological
Any examples of this?
Time

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Consumer- Behavior- Dr. Hoyer

Consumer Ability and Marketing Implication of Enhancing

Opportunity Information Processing

Ability Repeating marketing communications

– Factors that affect consumers' ability to Reducing time pressure
process information and make decisions Reducing time needed for purchase and
• Financial, cognitive, emotional, physical, social, learning about a product or service
cultural resources, education, and age
Providing information
Key influences in consumer opportunity
– Lack of time, distraction, and the amount,
complexity, repetition, and control of
information

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Chapter 1
(extend)
Developing Information About
Consumer Behavior

by Bao T ruong 2023 by Bao T ruong 2023

© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Consumer- Behavior- Dr. Hoyer

Key Concepts Types of Data

1. Consumer behavior research methods Primary— Secondary—

Originated from Collected for some
2. Types of consumer researchers researcher and other purpose that
collected to is subsequently
3. Ethical issues in consumer research provide relevant used in research
information to project
specific project

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Consumer Behavior
Research Methods
Surveys
Surveys Conjoint analysis
Observations and Written instrument that asks
Focus groups
Interviews
ethnographic research consumers to respond to a list of
Purchase panels predetermined questions
Storytelling
Database marketing
Photography and Good for asking “how many?” behave
Netnography
pictures Psychophysiological
or feel a certain way
Diaries reactions and Drawbacks:
Experiments neuroscience
• Self-report data
Field experiments • Non-response bias

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Consumer- Behavior- Dr. Hoyer

Focus Groups Interviews

Group of 6-12 lead by trained moderator Involve one-on-one contact with consumer
Express opinions and experiences in More appropriate than focus groups when topic
consumers’ own words is sensitive
Qualitative Requires trained interviewer
Drawbacks:
Often recorded/transcribed so answers can be
• Self-report data
• Generalizability/representativeness
studied through qualitative/quantitative
• Group think analysis
• Dominant members/free riders Drawbacks: very expensive, self-report data

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Interview Method
Identifying Customer Need Storytelling
Why When Where How Who
I (goal/purpose) (occasion) (location) (method/ procedure) (complementary/ (main user)

When consumer either cannot or will not

Current Why are you In what occasion Where do you (per specific purpose supplementary Who are the usual
Needs using this do you use this usually use and occasion shown in products) users?
product and product? this product? the examples in the When using for the
what is the guide) said purpose and

respond to a direct question

utility of it? Please state in detail occasion, are there
the method and other or additional
procedure of using this products you use with
product. this product?
II (new goal/ (new motivation) (new location) (new method/ (new complementary/ (new main user)

Real stories or hypothetical stories

Latent purpose) In addition to the In addition to procedure) supplementary In addition to the
Needs In addition to occasions you what you have In addition to what you products) heavy users you
the reasons have already already stated, have already stated, In addition to the have already stated,
you have stated, are there are there any are there any other products you have could there be any

Drawback
already stated, any other new locations new methods or already stated, are other heavy users?
are there any occasions in where you procedures people can there any other
other new which you want want to use apply? products you want to
reasons you to use this this product? use with this product?
can think of? product?

• Difficult to analyze data

III When you use When you use When you use When you use this When you use this When the usual
Problem this product this product (for this product product (for the product (for the users use this
Needs (for the goal/ the occasion (for the method/ procedure complementary/ product (for the
utility stated stated in I) what location stated stated in I) what supplementary main users stated in
in I) what problems and in I) what problems and products stated in I) I) what problems
problems or discontent do problems and discontent do you what problems and and discontent do
discontent do you have? discontent do have? discontent do you you think they
you have? you have? have? would have?
IV When you use When you use When you use When you use this When you use this When the usual
Potential this product this product (for this product product (for the product (for the users use this
Problem (for the goal/ the occasion (for the method/ procedure complementary/ product (for the
Needs utility stated stated in I), are location stated stated in I), are there supplementary main users stated in
in I), are there there any in I), are there any improvements products stated in I), I), are there any
any improvements any (effort, time, cost) you are there any improvements you
improvements you can suggest? improvements can suggest? improvements you can can suggest for
you can you can suggest? them?
suggest? suggest?

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Consumer- Behavior- Dr. Hoyer

Photography and Pictures Diaries

Autodriving Record of consumer’s behavior

Drawing, photographs, collages • Purchasing, consumption, media usage
Can be supported by essays Drawbacks
Drawbacks • Self-report data
• Difficult to analyze data • Attrition

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Experiments Independent Variable

Consumers randomly assigned to receive Entity that is studied or that varies in a

different “treatments”; e.g., shown research project (especially an
different brand names experiment)
Treatment is called “independent variable”;
e.g., in a taste-test experiment, only the
taste of the food/beverage is varied

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Consumer- Behavior- Dr. Hoyer

Field Experiments Conjoint Analysis

One type of field experiment is known as the Relative importance and desired levels of an
“market test” offering’s attributes
Studies the effectiveness of one or more elements Consumers’ reactions to various
of the marketing mix evaluating sales of the combinations and levels of attributes
product in an actual market (e.g., a specific city).

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Observations and
Purchase Panels
Ethnographic Research
Watch consumers use products in Longitudinal studies of a group of
natural environment or laboratory consumers’ attitudes and behaviors
Methods Drawback
• Personal (participant observation, • Attrition
ethnography),
• Electronic (video)
• Online (tracking software)

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Consumer- Behavior- Dr. Hoyer

Database Marketing Netnography

Combine different forms of consumer Ethnographic research technique

research in a common database Observing and analyzing the online behavior
Demographics, lifestyle, purchases, and comments of consumers.
opinions – Social media, brand forums, websites
Data mining
Big data
– Used a lot by online companies
– Analysis of consumer browsing patterns can
lead researchers to determine how to make
websites more user-friendly

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Psychophysiological Reactions Types of Consumer

and Neuroscience Researchers
Analysis of physiological reactions (such as eye and In-house marketing Research foundations
muscle movements) and applying neuroscience research departments and trade groups
techniques (such as measuring brain activity) to External marketing Government
understand consumer behavior. research firms Consumer
Neuroscience is the scientific study of the nervous Advertising agencies organizations
system. and media planning Academics and
– Brain, spinal cord, and the retina firms academic research
What part of brain is activated during consumers’ Syndicated data centers
acquisition, consumption, and disposal activities? services
Questions of manipulation? Retailers

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Consumer- Behavior- Dr. Hoyer

Who Conducts Consumer Research? Types of Consumer Researchers (cont.)

(Exhibit A.4)

In-house Marketing Research Departments

– Benefits of conducting marketing research in-house
include minimalizing opportunities for information to leak
to competitors
External Marketing Research Firms
– Some marketing research firms are full service, while
others specialize in a particular type of research.
Advertising Agencies
– Ad agencies may test advertising concepts as part of the
service they provide to clients.
– Agencies may also conduct advertising pretesting.

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Types of Consumer Researchers (cont.) Types of Consumer Researchers (cont.)

Syndicated Data Services
Government
– Companies may collect and then sell the information that
they collect, usually to firms that market products and – Government data, such as census data, are often used by
services to consumers. marketing researchers to estimate market size.
– For example, Nielsen is a syndicated data service that – Government studies by agencies such as CPSP, DOT, FDA
tracks the TV viewing habits of the US population. and FTC are designed for consumer protection.
Retailers Consumer Organizations
– Large retail chains may conduct their own consumer – Independent consumer organizations also conduct
research by using electronic scanners to track sales. research, generally for the purpose of protecting or
Research Foundations and Trade Groups
informing consumers.
Academics and Academic Research Centers
– A research foundation is a nonprofit organization that
sponsors research on topics relevant to the foundation’s – Studies are usually designed to enhance the general
goals. understanding of consumer behavior.
– A trade group is an organization formed by people who
work in the same industry.

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Consumer- Behavior- Dr. Hoyer

Ethical Issues in
Consumer Research
Positive Aspects Negative Aspects
Better consumption Studying consumer
experiences behavior in different
countries
Potential for building
customer Potentially higher
relationships marketing costs
Invasion of consumer
privacy
Deceptive research
practices

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