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MMK266 Consumer Behaviour

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Learning Objectives

Topic 1 – Needs and Goals (chapter 3)

• Define needs and recognise how they can be activated

• Understand how needs influence goals

• Distinguish between

o Superordinate goals o Focal goals

o Subordinate goals

• Describe how marketers can use needs/goals to sell products and services

Topic 2 – Self-Concept and Personality (chapter 4)

• Define self-concept

• Examine how products can be used to define and maintain self-concept

• Define personality

• Understand the trait approach to personality

Topic 3 – Perception (chapter 5)

• How we perceive various sensations

• How we interpret our perceptions

• Strategic applications of perception, including:

o Positioning o Perceived risk

Topic 4 – Learning and involvement (chapter 6)

• Examine two forms of behavioural learning theory:

o Classical conditioning o Instrumental conditioning

• Explore cognitive learning theory

• Examine the influences of involvement on learning

Topic 5 – Attitudes and Attitude Change (chapter 7)

• Examine various models of attitude

• Understand how attitudes are formed

• Outline strategies for changing attitudes

• Review attribution theory

Topic 6 – Social Influence and Persuasion (chapter 7-8)

• Who is doing the communicating (the sender)

• What the sender is communicating (the message)

• Who is receiving the communication (the receiver)

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Topic 7 – Family and Social Class (chapters 9-10)

• Family

o Define the concept of family

o Understand the consumer socialisation process o Discuss the various roles in family decision-making

• Social class

o Explain what is meant by social class

o Understand how social class can be measured

o Describe how social class can influence consumption patterns

Topic 8 – Culture, Sub-Culture and Cross-Culture (chapter 11-13)

• Understand what culture is and how it influences consumer behaviour

• Explore how culture is expressed

• Define subculture and examine various subcultural groups

• Describe the importance of cross-cultural differences, particularly in terms of the decision to standardise/localise

Topic 9 – Automatic and Conscious Decision Making (chapter 14)

• Understand what consumer decision making involves

• Explain the three levels of consumer decision making

• Describe the input, process, and output components of the conscious model of decision making

• Understand what is meant to by the term ‘automaticity’ within the context of decision making

Topic 10 – Consumer Influence and Diffusion of Innovations (chapter 15)

• Understand the basic elements of diffusion

• Explore the features of consumer innovators

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Topic 1 – Needs and Goals

L1: Define needs and recognise how they can be activated

Needs: refer to any human requirement

- Innate (biogenic) needs: primary needs required to sustain life (food, water, shelter) - Acquired (psychogenic): secondary needs we learn in response to our family, social

class, culture etc. education, status

Goals: are how consumers seek to satisfy their unfulfilled needs

• All behaviour is oriented towards achieving goals o Generic goals e.g. track daily exercise

o Product-specific goals e.g. track steps using a FitBit

• Marketers are particularly interested in product-specific goals, but they need to know how product-specific goals align generic goals

L2: Understand how needs influence goals

Properties of needs and goals: in evaluating needs and goals, it’s important to recognise that:

• Consumers have many needs and goals

• Needs are often dormant

• Needs and goals vary between people

• Needs and goals vary over time

• Goals may be positive or negative

Needs are often dormant: most needs are latent; must be activated before they are acted upon

• Needs can be activated

o Physiologically e.g. feeling tired may trigger desire to travel o Emotionally e.g. feeling unfulfilled may trigger a desire to travel

o Cognitively e.g. thinking about a friend overseas may trigger desire to travel o Environmentally e.g. sensing winter is approaching may trigger desire to travel

• Need activation is an important function of advertising, packaging, point-of-sale displays

Needs/goals vary between people: basis of segmentation is to divide market into group of people with similar needs/goals

Needs/goals vary over time: we periodically assess our goals to see whether they satisfy our unfulfilled needs

- Goals that fulfil needs can lead to more aspirational goals

- Goals that don’t fulfil needs can lead to substitute/less aspirational goals

E.g. buy bitcoin – make money – buy more bitcoin/lose money – save money; ignore bitcoin

• Frustration – when we can’t achieve our goals

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Defence mechanisms are used to cope with frustration; they protect our ego/self-concept from feelings of failure

• Rationalisation – whereby the original goal is reshaped as being unworthy of pursuit e.g. can’t afford to go overseas, so believe that there are more interesting things in Aus

• Projection – where blame for not being able to achieve a goal is projected onto

someone or something else e.g. can’t afford to go overseas because boss doesn’t give me enough shifts at work

Positive goals: referred to as approach objects because we direct our behaviour towards them - E.g. Work at café – save money

Negative goals: referred to as avoidance objects because we direct our behaviour away from them

- E.g. Avoid spending – save money

L3: Distinguish between Superordinate, Focal and Subordinate goals

Superordinate goals

- Are the reasons why we pursue certain focal goals - We are sometimes unaware of our superordinate goals

- The superordinate goals we select are based on our values, which are relatively enduring beliefs about appropriateness of certain actions

- Schwartz identified 10 universal values that vary in importance based on our:

Family upbringing, social class, culture

Achievement: Strive to be successful and to bolster sense of self-respect

• Success arises from demonstrating competence on socially-approved standards

• Superordinate goal – earn a Uni degree Focal goal – earn more money

Power: Look to acquire wealth, status, authority and prestige as these represent an ability to control valued social and physical resources

• Superordinate goal – get a luxury car Focal goal – earn more money

Hedonism: look for pleasure and indulgence and seek to enjoy life

• Superordinate goal – travel Focal goal – earn more money

Stimulation: Want an exciting life – desire novelty because novelty means having a varied life

• Superordinate goal – participate in adventure sports Focal goal – earn more money

Self-direction: Look for and value freedom, creativity and the choice to be whatever they want to be – value independence and curiosity

• Superordinate goal – retire early Focal goal – earn more money

Universalism: Social justice and equality, try to understand appreciate and protect nature and the welfare of all people

• Superordinate goal – effective altruism Focal goal – earn more money

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Benevolence: Enhance the welfare of the people with whom one has frequent personal contact, true friendship and mature love

• Superordinate goal – educate kids Focal goal – earn more money

Tradition: Respect and accept traditional customs and values. Humble, accept one’s lot in life

• Superordinate goal – collect old objects Focal goal – earn more money

Security: Look for safety, harmony and stability in society

• Value family security, national security and social order

• Seek a sense of belonging

• Superordinate goal – buy house in safe area Focal goal – earn more money

Conformity: Look to restrain actions or ideas that could upset or cause harm to others

• Value self-discipline, obedience, and politeness

• Superordinate goal – buying material items to impress Focal goal – earn more money

Focal goals

- Aim to compensate for (or address) unfulfilled needs - Needs = human requirements

- Human requirements vary from person to person and are determined, in part, by our values

- We desire the human requirements we lack; results in unfulfilled needs

Subordinate goals

- Relate to the actions we take to achieve our focal (and superordinate) goals

- For every focal goal, there are many potential subordinate goals from which we can choose

Means-ends analysis: An approach that links motives to the means of satisfying those in understanding the ultimate values that drive a behaviour

• In this approach, laddering interview technique is applied where consumers are asked to provide an account of their behaviour.

• Every answer is counter-asked by another question for further elaboration to arrive at the ultimate reason/value behind the behaviour

• Consequently, performed to select our subordinate goal. This involves evaluating each subordinate goal in terms of their:

- Attributes: features or characteristics of a product, service, or action

- Consequences: outcome of each attribute; these will either satisfy or conflict with our focal (and superordinate) goals

- Values: whether those outcomes are consistent or inconsistent with our underlying values

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EXAMPLE: Eating bread Attributes – Filling & tasty

Filling Consequence – Feel energetic, reduced temptation Value – Achievement, self-direction, benevolence

L4: Describe how marketers can use needs/goals to sell products and services

Products provide more than just functional benefits; they also satisfy our psychological needs

- E.g. differences between branded products vs non-branded

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Topic 2 – Self-Concept and Personality

L1: Define self-concept

Self-concept: is the totality of a person’s thoughts and feelings about themselves

Actual self-image: How consumers see themselves

• Actual self-image – lover of food

• Behaviour response – like ‘Lard Lad Donuts’

Ideal self-image: How consumers would like to see themselves

• Fit

• BR – use a treadmill

Social self-image: How consumers feel others see them

• Incompetent at work

• BR – study

Ideal social self-image: How consumers would like others to see them

• Classy and sophisticated

• BR – buy a new suit

Family self-identity: Defining oneself in terms of one’s family

• Family man

• BR – take family to a theme park

Group self-identity: Defining oneself in terms of one’s membership or affiliation with particular groups

• Regular at Moe’s tavern (Simpsons)

• BR – buy Duff beer

Subcultural self-identity: Defining oneself in terms of one’s subcultural membership

• Christian

• BR – going to church

National self-identity: Defining oneself in terms of one’s membership or affiliation of particular groups

• American

• BR – engage in American hobbies or traditions

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L2: Examine how products can be used to define and maintain self-concept

Multiple selves: marketers can activate a particular self-image

- Segment consumers on the basis of their self-images and then position their offerings as symbols of those self-images

- Assess the discrepancy between actual and ideal self-images and then use this information to position their offerings as a way of reducing such discrepancies

Extended self: self-concept is often supported through the consumption of particular products and services

• Extended self is based on the idea that we known who we are by looking at what we have/own/use

• From this perspective, we use possessions to o Remind us of our self-concept

o Define and shape our self-concept o Communicate our self-concept to others

• Downside can lead to ‘commodity fetishism’ where products are worshipped for their supposed ability to bring us happiness

Four ways that objects become integrated with self

Extended Self Controlling: the more control we have over an object, the more likely that object will become part of the self – control can arise from:

- Owning an object

- Overcoming an object e.g. climbing mountain, riding a bike

Extended Self Creating: We invest part of ourselves in things we create e.g. IKEA effect Extended Self Knowing: Intimately knowing an object increases our sense of identification with it e.g. hidden restaurant or unique brands that only you know about

Extended Self Contaminating: Attempt to incorporate traits of others through symbolic contamination e.g. The Beatles’ White Album

- Handcrafted objects store more of the original maker’s sense of self than mass-produced objects

L3: Define personality

Personality

• Describes the inner characteristics that differentiate one person from another

Difference between personality and self-concept:

Consumers generally have some awareness of their self-concept

Consumers are not always aware of their personality

References

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