CONSUMER BEHAVIOR Buying, Having, and Being 12 E M C D O N O U G H , B R I T T A N Y ISBN 1-323-46948-6 5 9 9 2 B U MICHAEL R. SOLOMON Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. M C D O N O U G H , B R I T T A N Y 5 9 9 2 B U ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. Consumer Behavior Buying, Having, and Being TwelfthMEdition C D O N O U G H , B R I T T A N Saint Joseph’s University Y Michael R. Solomon ISBN 1-323-46948-6 5 9 9 2 B U Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. 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Such references are not intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship between the owner and Pearson Education, Inc., or its affiliates, authors, licensees, or distributors. 5 9 9 Library of Congress Cataloging-in-Publication Data 2 Names: Solomon, Michael R., author. Title: Consumer behavior/Michael R. Solomon. B Consumer behavior, 2015.|Includes index. Description: 12 Edition.|Hoboken : Pearson, 2017.|Revised edition of the author’s Identifiers: LCCN 2015041651|ISBN 9780134129938 (student edition) U Subjects: LCSH: Consumer behavior. Classification: LCC HF5415.32 .S6 2017|DDC 658.8/342—dc23 LC record available at http://lccn.loc.gov/2015041651 ISBN-13: 978-0-13-412993-8 ISBN-10: 0-13-412993-8 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 10 9 8 7 6 5 4 3 2 1 BRIEF CONTENTS Section 1 Section 2 ● ● Foundations of Consumer Behavior Chapter 1 Buying, Having, Mand Being: An Introduction to Consumer Behavior Chapter 2 Consumer andCSocial Well-Being Internal Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Section 3 ● ● D O InfluencesN on Consumer Behavior O Perception 74 Learning and U Memory 108 GAffect 150 Motivation and HGender, and Body 178 The Self: Mind, , Personality, Lifestyles, and Values 220 B I T Chapter 9 Decision Making 312 T Chapter 10 Buying, Using, and Disposing 358 A N Consumers in Their Y Social and Chapter 11 Chapter 12 Chapter 13 262 Cultural Settings 391 392 424 ISBN 1-323-46948-6 Chapter 14 5 Income and Social Class 9 Subcultures 456 9 Culture 492 2 B U 73 261 Attitudes and Persuasive Communications Groups and Social Media 4 34 Choosing and Using R Products Chapter 8 Section 4 3 iii Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. M C D O N O U G H , B R I T T A N Y 5 9 9 2 B U ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. CONTENTS About the Author xi New to this Edition! xiii Preface xv Acknowledgments xxi Chapter 2 ● Consumer and Social Well-Being 34 M C D Section 1 ● Foundations of O Consumer Behavior 3 N O Chapter 1 ● Buying, Having, and Being: U An Introduction to Consumer Behavior 4 G Consumer Behavior: People in the Marketplace 5 H What Is Consumer Behavior? 6 , Business Ethics and Consumer Rights 35 Needs and Wants: Do Marketers Manipulate Consumers? 36 Consumer Behavior Is a Process 7 Consumers’ Impact on Marketing Strategy 8 Consumers Are Different! How We Divide Them Up 8 Marketing’s Impact on Consumers 13 Popular Culture Is Marketing Is Popular Culture … 13 All the World’s a Stage 15 What Does It Mean to Consume? 17 What Do We Need—Really? 18 The Global “Always-On” Consumer 19 The Digital Native: Living a Social [Media] Life 19 Consumer Behavior as a Field of Study 22 Where Do We Find Consumer Researchers? 22 Interdisciplinary Influences on the Study of Consumer Behavior 23 Two Perspectives on Consumer Research 24 Should Consumer Research Have an Academic or an Applied Focus? 26 ISBN 1-323-46948-6 Taking It from Here: The Plan of the Book 28 Chapter Summary 29 Key Terms 29 Review 30 Consumer Behavior Challenge 30 Case Study 31 Notes 32 B R I T T A N Y Consumers’ Rights and Product Satisfaction 41 Market Regulation 44 Consumerism 44 Transformative Consumer Research 46 Social Marketing and Corporate Social Responsibility (CSR) 46 Major Policy Issues Relevant to Consumer Behavior 48 Data Privacy and Identity Theft 48 Market Access 50 Sustainability and Environmental Stewardship 51 The Dark Side of Consumer Behavior 56 Consumer Terrorism 56 Addictive Consumption 57 Consumed Consumers 59 Illegal Acquisition and Product Use 60 Chapter Summary 61 Key Terms 62 Review 62 Consumer Behavior Challenge 62 Case Study 63 Notes 65 Section 1 Data Case 69 5 Section 2 ● Internal Influences 9 Consumer Behavior 73 9 2 ● B Chapter 3 Perception 74 U Sensation 74 on Hedonic Consumption 76 Sensory Marketing 77 The Stages of Perception 86 Stage 1: Exposure 86 Stage 2: Attention 91 Stage 3: Interpretation 95 v Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. vi Contents Chapter Summary 102 Key Terms 103 Review 103 Consumer Behavior Challenge 103 Case Study 104 Notes 105 Chapter 4 ● Learning and Memory 108 How Do We Learn? 108 Behavioral Learning Theories 109 Marketing Applications of Classical Conditioning Principles 111 Marketing Applications of Instrumental Conditioning Principles 118 Gamification: The New Frontier for Learning Applications 118 Cognitive Learning Theory 120 How Do We Learn to Be Consumers? 122 Memory 128 How Our Brains Encode Information 129 Memory Systems 130 How Our Memories Store Information 130 How We Retrieve Memories When We Decide What to Buy 134 What Makes Us Forget? 135 How We Measure Consumers’ Recall of Marketing Messages 137 Bittersweet Memories: The Marketing Power of Nostalgia 139 Chapter Summary 141 Key Terms 142 Review 142 Consumer Behavior Challenge 143 Case Study 144 Notes 145 Chapter 5 ● Motivation and Affect 150 The Motivation Process: Why Ask Why? 150 Motivational Strength 151 Motivational Direction 152 How We Classify Consumer Needs 155 Consumer Involvement 163 Types of Involvement 165 Chapter 6 ● The Self: Mind, Gender, and Body 178 M The C Self 178 the Self Exist? 179 D Does Self-Concept 179 O Are We What We Buy? 183 N The Extended Self 186 Embodied Cognition 188 O The Digital Self 189 U Gender Identity 190 G Sex Role Socialization 191 Gender Identity Versus Sexual Identity H Sex-Typed Products 193 ,The Body 199 192 Ideals of Beauty 200 Body Decoration and Mutilation 206 B Chapter Summary 210 R Key Terms 210 IReview 211 T Consumer Behavior Challenge 211 Case Study 213 T Notes 214 A N Y Chapter 7 ● Personality, Lifestyles, and Values 220 5 Personality 221 9 Consumer Behavior on the Couch: Freudian Theory 221 9 Neo-Freudian Theories 224 Trait Theory 227 2 Brand Personality 231 B Lifestyles and Consumer Identity 236 U Product Complementarity and Co-Branding Strategies 239 Psychographics 240 Values 245 Core Values 246 How Do Values Link to Consumer Behavior? 249 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 Affect 158 Types of Affective Responses 158 Positive Affect 159 Negative Affect 161 How Social Media Tap into Our Emotions 163 Chapter Summary 172 Key Terms 172 Review 172 Consumer Behavior Challenge 173 Case Study 174 Notes 175 Contents Cognitive Decision Making 317 Steps in the Cognitive Decision-Making Process 317 Neuromarketing 321 Online Decision Making 324 How Do We Put Products into Categories? 325 Chapter Summary 252 Key Terms 252 Review 253 Consumer Behavior Challenge 253 Case Study 254 Notes 255 Section 2 Data Case 258 Section 3 ● Choosing and Using Products 261 Chapter 8 ● Attitudes and Persuasive Communications 262 The Power of Attitudes 263 The ABC Model of Attitudes 264 Hierarchies of Effects 264 How Do We Form Attitudes? 267 All Attitudes Are Not Created Equal 267 The Consistency Principle 268 Self-Perception Theory 269 Social Judgment Theory 270 Balance Theory 270 Attitude Models 274 Do Attitudes Predict Behavior? 276 Trying to Consume 280 Persuasion: How Do Marketers Change Attitudes? 280 Decisions, Decisions: Tactical Communications Options 281 The Elements of Communication 282 The Source 284 The Message 289 New Message Formats: The Social Media Revolution 293 Reality Engineering 295 Types of Message Appeals 297 The Source Versus the Message: Do We Sell the Steak or the Sizzle? 300 ISBN 1-323-46948-6 Chapter Summary 302 Key Terms 303 Review 304 Consumer Behavior Challenge 304 Case Study 306 Notes 307 Chapter 9 ● Decision Making 312 Habitual Decision Making 330 Priming and Nudging 331 Heuristics: Mental Shortcuts 332 M C D O N O U G H , Collective Decision Making 334 B2B Decision Making 335 How Does B2B Decision Making Compare to Consumer Decision Making? 336 B2B E-Commerce 338 The Intimate Corporation: Family Decision Making 339 How Families Decide 340 The Wife 343 The Husband 344 Chapter Summary 346 Key Terms 347 Review 348 Consumer Behavior Challenge 348 Case Study 351 Notes 353 B R Chapter 10 ● Buying, Using, and I Disposing 358 T Situational Effects on Consumer Behavior 359 T The Consumption Situation 359 Temporal Factors 360 A N The Shopping Experience 363 E-Commerce: Clicks Versus Bricks 366 Y Retailing as Theater 367 5 9 9 2 B U In-Store Decision Making 370 The Salesperson: A Lead Role in the Play 373 Ownership and the Sharing Economy 373 Postpurchase Satisfaction and Disposal 375 Postpurchase Satisfaction 375 Product Disposal 376 Chapter Summary 379 Key Terms 380 Review 380 Consumer Behavior Challenge 381 Case Study 382 Notes 383 Section 3 Data Case 387 What’s Your Problem? 313 Hyperchoice 313 Self-Regulation 314 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. vii viii Contents Section 4 ● Consumers in Their Social and Cultural Settings 391 Chapter 11 ● Groups and Social Media 392 Groups 393 Social Power 393 Reference Groups 394 Conformity 396 Brand Communities 398 Word-of-Mouth Communication 399 Buzz Building 402 Negative WOM 403 Opinion Leadership 404 How Influential Is an Opinion Leader? 405 Types of Opinion Leaders 405 How Do We Find Opinion Leaders? 406 The Social Media Revolution 408 Online Social Networks and Brand Communities 410 Social Games 411 Digital Word-of-Mouth 412 Digital Opinion Leaders 415 Chapter Summary 416 Key Terms 417 Review 417 Consumer Behavior Challenge 418 Case Study 419 Notes 420 Chapter 12 ● Income and Social Class 424 Income and Consumer Identity 425 To Spend or Not to Spend, That Is the Question 425 Income-Based Marketing 429 Social Class and Consumer Identity 432 Pick a Pecking Order 433 Income versus Social Class 435 How Do We Measure Social Class? 435 Social Class Around the World 437 Chapter 13 ● Subcultures 456 Ethnic and Racial Subcultures 457 M Subcultural Stereotypes 458 C Ethnicity and Acculturation 458 The “Big Three” American Ethnic Subcultures 460 D Religious Subcultures 464 O Organized Religion and Consumption 467 N Born Again Consumers 467 O Islamic Marketing 468 The Family Unit and Age Subcultures 470 U Family Structure 470 G Age Cohorts 473 H Children: Consumers-in-Training 473 Gen Y and Gen Z 474 , Gen X 478 The Mature Market 478 Place-Based Subcultures 482 B R Chapter Summary 483 IKey Terms 484 Review 484 T Consumer Behavior Challenge 484 T Study 486 Case Notes A 488 N Chapter 14 ● Culture 492 Y Cultural Systems 493 5 Cultural Systems 493 9 The Yin and Yang of Marketing and Culture 494 Cultural Movement 494 9 High and Low Culture 497 2 Cultural Formulae 498 Cultural Stories and Ceremonies 499 B Myths 500 U Rituals 501 Sacred and Profane Consumption 511 Sacralization 511 Domains of Sacred Consumption 512 From Sacred to Profane, and Back Again 514 The Diffusion of Innovations 515 How Do We Decide to Adopt an Innovation? 515 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 Status Symbols and Social Capital 440 “What Do You Use That Fork For?” Taste Cultures, Codes, and Cultural Capital 440 Social and Cultural Capital 443 Online Social Capital 444 Status Symbols 445 Chapter Summary 450 Key Terms 450 Review 450 Consumer Behavior Challenge 451 Case Study 451 Notes 453 Contents Behavioral Demands of Innovations 517 What Determines If an Innovation Will Diffuse? 517 Review 532 Consumer Behavior Challenge 533 Case Study 534 Notes 535 Section 4 Data Case 540 The Fashion System 518 Behavioral Science Perspectives on Fashion 519 Cycles of Fashion Adoption 522 Global Consumer Culture 524 It’s a BRAND-New World 525 Adopt a Standardized Strategy 527 Adopt a Localized Strategy 527 Does Global Marketing Work? 529 Chapter Summary 530 Key Terms 532 M C D O N O U G H , Appendix I: Sources of Secondary Data 544 Appendix II: Career in Consumer Research 547 Glossary 549 Index 565 B R I T T A N Y ISBN 1-323-46948-6 5 9 9 2 B U Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ix M C D O N O U G H , B R I T T A N Y 5 9 9 2 B U ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ABOUT THE AUTHOR ISBN 1-323-46948-6 Michael R. Solomon, Ph.D., is Professor of Marketing in the Haub School of Business at Saint Joseph’s University in Philadelphia. Before joining the Saint Joseph’s faculty in the fall of 2006, he was the Human Sciences Professor of Consumer Behavior at Auburn University. Before moving to Auburn in 1995, he was chair of the Department of Marketing in the School of Business at Rutgers University, New Brunswick, New Jersey. Professor Solomon began his academic career in the Graduate School of Business M as Associate Director Administration at New York University (NYU), where he also served of NYU’s Institute of Retail Management. He earned his B.A. degrees C in psychology and sociology magna cum laude at Brandeis University and a Ph.D. in social psychology at the D the Fulbright/FLAD University of North Carolina at Chapel Hill. In 1996 he was awarded Chair in Market Globalization by the U.S. Fulbright CommissionOand the Government of Portugal, and he served as Distinguished Lecturer in Marketing at the Technical University N of Lisbon. He held an appointment as Professor of Consumer Behaviour at the University of Manchester (United Kingdom) from 2007 to 2013. O Professor Solomon’s primary research interests include consumer behavior and U the psychology of lifestyle issues; branding strategy; the symbolic aspects of products; fashion, decoration, and image; services marketing; marketing G in virtual worlds; and the development of visually oriented online research methodologies. He has published numerH ous articles on these and related topics in academic journals, and he has delivered invited lectures on these subjects in Europe, Australia, Asia, and Latin , America. His research has been funded by the American Academy of Advertising, the American Marketing Association, the U.S. Department of Agriculture, the International Council of Shopping Bon the editorial or adviCenters, and the U.S. Department of Commerce. He currently sits sory boards of The Journal of Consumer Behaviour, Journal of Marketing Theory and Practice, R Critical Studies in Fashion and Beauty, and Journal for Advancement of Marketing Education, I of the Academy of and he served an elected six-year term on the Board of Governors Marketing Science. Professor Solomon has been recognized as one T of the 15 most widely cited scholars in the academic behavioral sciences/fashion literature, and as one of the T communications. 10 most productive scholars in the field of advertising and marketing Professor Solomon is a frequent contributor to mass media.AHis feature articles have appeared in such magazines as Psychology Today, Gentleman’s Quarterly, and Savvy. He N including Advertising has been quoted in numerous national magazines and newspapers, Age, Adweek, Allure, Elle, Glamour, Mademoiselle, Mirabella, Newsweek, Y the New York Times, Self, Time, USA Today, and the Wall Street Journal. He frequently appears on television and speaks on radio to comment on consumer behavior issues, including appearances on The Today Show, Good Morning America, Inside Edition, Newsweek on5the Air, the Entrepreneur Sales and Marketing Show, CNBC, Channel One, the Wall Street Journal Radio Network, 9 the WOR Radio Network, and National Public Radio. He acts as consultant to numerous companies on consumer behavior and marketing strategy issues9and often speaks to business groups throughout the United States and overseas. In addition to this text, Professor 2 Solomon is coauthor of the widely used textbook Marketing: Real People, Real Choices. B He has three children, Amanda, Zachary, and Alexandra; a son-in-law, Orly; and three granddaughters, Rose, Evey, and Arya. He lives in Philadelphia with his wife Gail and their U “other child,” a pug named Kelbie Rae. xi Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. M C D O N O U G H , B R I T T A N Y 5 9 9 2 B U ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. NEW TO THIS EDITION! The twelfth edition of Consumer Behavior has been extensively revised and updated to reflect the major trends and changes in marketing that impact the study of consumer behavior. The most significant changes to the edition are: t t
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A totally reorganized Contents page that organizes material into four sections. The first section introduces the field of consumer behavior and then devotes an entire chapter M the many commercial, to issues related to consumer well-being to reinforce to students environmental, ethical, and health issues our field touches.C The second section dives deeper into micro influences such as perception and learning, and the third section examines how consumers make decisions and form attitudesD toward products and services. The final section shows how macro variables such as O group dynamics, culture, and communications platforms such as social media influence these decisions. New data feature Data Powered by GfK. New end of part casesN using real consumer data from GfK. O Six new end-of-chapter cases and six updated end-of-chapter cases. U prominent consumer All new “CB As I See It” boxes in every chapter that feature behavior researchers who share their current work with students. G A strong focus on social media and how digital technology influences consumer H behavior. Significant coverage of major emerging topics including Big , Data, the Digital Self, gamification, and contextual influences on decision making such as priming and nudging. New content added to every chapter, including the followingB key terms: Ambicultural R Digital self Automated attention analysis I Disclaimers Bitcoin Dispreferred T marker effect Brand arrogance e-Sports Brand immigrants Embarrassment A Brand storytelling EmbodiedN cognition Brand tourists Empty selfY CEO pay ratio Enclothed cognition Cognitive-affective model Endcap displays Cohabitate Endowed progress effect Consumer fairy tales 5 9 Endowment effect 9 Envy 2 Evaluations B Executive control center U Fatshionistas Consumer hyperchoice Feedback loop Credit score Female-to-male earnings ratio Crytocurrency Glamping Dadvertising Guilt Collaborative consumption College wage premium Conditioned superstition Consumer culture theory (CCT) ISBN 1-323-46948-6 T xiii Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. xiv New to this Edition! Gyges effect Near-field communication (NFC) Happiness Normcore Happiness economy P2P commerce Haul videos Paradox of fashion Homeostatis Phablets Hook Power posing Hybrid products Product authenticity Identity Product personalization M C Imbibing idiot bias Implementation D intentions Incidental brandO exposure Income inequality N Independence hypothesis O Internet trolls U Intersex children G Linkbaiting H Locavore , Reader-response theory Loss aversion Slacktivism Marketplace sentiments Social default IKEA effect B Martyrdom effect R Material accumulation I Material parenting Media snacker T Medical tourism T A Medication adherence N Meerkating Megaphone effectY Red sneakers effect Retail therapy Sadvertising Search engine optimization (SEO) Search engines Selfie Shared endorsements Sharing economy Simple additive rule Spectacles Status anxiety Street art Swatting Swishing Technology acceptance model (TAM) The Personal Data Notification & Protection Act Microfame The Student Digital Privacy Act Mood congruency 5 Third-gender movement Moods Unboxing videos 9 Morning morality 9effect Nanofame 2 Native advertising B Negative state relief U Net neutrality Vanity sizing Virtual makeover Virtual reality Wearable computing Weighted additive rule Neuroendocrinological science ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. PREFACE I love to people-watch, don’t you? People shopping, people flirting, people consuming. Consumer behavior is the study of people and the products that help to shape their identities. Because I’m a consumer myself, I have a selfish interest in learning more about how this process works—and so do you. In many courses, students are merely passive observers; they learn about topics that affect them indirectly, if at all. Not everyone is a plasma physicist, a medieval French scholar, or a marketing professional. But we are all consumers. M Many of the topics in this book have both professional and personal relevance to the reader, C regardless of whether he or she is a student, professor, or businessperson. Nearly everyone can relate to the trials and tribulations of last-minute shopping; primping for a big D night out; agonizing over an expensive purchase; fantasizing about a week in the Caribbean; O celebrating a holiday or commemorating a landmark event, such as graduating or getting a driver’s license; or N (dreaming about) winning the lottery. In this edition, I have tried to introduce you to the latest and O best thinking by some bright scientists who develop models and studies of consumer behavior. But that’s not U lose sight of the role enough. Consumer behavior is an applied science, so we must never of “horse sense” when we apply our findings to life in the real world. G That’s why you’ll find a lot of practical examples to back up these fancy theories. B As this book’s subtitle suggests, my vision of consumer behavior Rgoes well beyond studying the act of buying—having and being are just as important, if not more so. Consumer I behavior is more than buying things; it also embraces the study of how having (or not T the way we having) things affects our lives and how our possessions influence feel about ourselves and about each other—our state of being. I develT oped the wheel of consumer behavior that appears at the beginning of S U M A text sections to underscore the complex—and often inseparable—O N C interrelationships between the individual consumer and his orN her social realities. In addition to understanding why people buy things, we Y E R o In n Co te n s r n al um Influ enc er B ehavi es or R So 3: Choosing ts c and Using Produ 2: also try to appreciate how products, services, and consumption activities contribute to the broader social world we experience. Whether we shop, cook, clean, play basketball, hang 5 out at the beach, or even look at ourselves in the mirror, the 9 marketing system touches our lives. As if these experiences aren’t 9 complex enough, the task of understanding the consumer increases when we take a multicultural perspective. 2 B E H A V I O 4 c ia : Con l a sum e n d Cultu rs in Their ral Sett ings What Makes This Book Different: Buying, Having, and Being H , ns 1: Foundatieohavior of Consumer B ISBN 1-323-46948-6 B U xv Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. xvi 96 Preface SECTION 2 Internal Influences on Consumer Behavior on the right of a frame appear heavier than products that appear on the left of a frame. This interpretation results from our intuition about levers: We know that the farther away an object is from a lever’s fulcrum, the more difficult it is to raise the item. Because we read from left to right, the left naturally becomes the visual fulcrum and thus we perceive objects on the right as heavier. Manufacturers should bear these package schematics in mind because they may influence our feelings about the contents in a package for better or worse. Think, for example, about a diet food marketer who wants shoppers to regard the menu items as lighter.85 As we’ll see in Chapter 7, products often assume a “brand personality” because we tend to assign them common human traits such as sophistication or sexiness. In other words, we anthropomorphize objects when we think of them in human terms, and this thought process may encourage us to evaluate products using schemas we apply to classify other people. A recent study illustrates how this works: Subjects saw an advertisement with a picture of a car that had been modified to make it appear as though it was either “smiling” or “frowning.” In some cases, the text of the ad was written in the first person, to activate a human schema, whereas others saw the same ad written in the third person. When the human schema was active, those who saw the “smiling” car rated it more favorably than when they saw a “frowning” car.86 Stimulus Organization One factor that determines how we will interpret a stimulus is the relationship we assume it has with other events, sensations, or images in memory. When RJR Nabisco introduced a version of Teddy Grahams (a children’s product) for adults, it used understated packaging colors to reinforce the idea that the new product was for grown-ups. But sales were disappointing. Nabisco changed the box to bright yellow to convey the idea that this was a fun snack, and buyers’ more positive association between a bright primary color and taste prompted adults to start buying the cookies.87 The stimuli we perceive are often ambiguous. It’s up to us to determine the meaning based on our past experiences, expectations, and needs. A classic experiment demonstrated the process of “seeing what you want to see”: Princeton and Dartmouth students separately viewed a movie of a particularly rough football game between the two rival schools. Although everyone was exposed to the same stimulus, the degree to which students saw infractions and the blame they assigned for those they did see depended on which college they attended.88 As this experiment demonstrates, we tend to project our own desires or assumptions onto products and advertisements. This interpretation process can backfire for marketers. We recognize patterns of stimuli, such as familiar words. In this Austrian ad consumers will tend to see the word “kitchen” even though the letters are scrambled. Source: Client: XXXLutz; Head of Marketing: Mag. Thomas Saliger; Agency: Demner, Merlicek & Bergmann; Account Supervisor: Andrea Kliment; Account Manager: Albin Lenzer; Creative Directors: Rosa Haider, Tolga Buyukdoganay; Art Directors: Tolga Buyukdoganay, Rene Pichler; Copywriter: Alistair Thompson. Net Profit Do you remember all those crazy Mentos/Diet Coke videos? At least 800 of them flooded YouTube after people discovered that when you drop the quarter-size candies into bottles of Diet Coke, you get a geyser that shoots 20 feet into the air. Needless to say, Mentos got a gusher of free publicity out of the deal, too.35 Probably the biggest marketing phenomenon of this decade is user-generated content, whereby everyday people voice their opinions about products, brands, and companies on blogs, podcasts, and social networking sites such as Facebook and Twitter, and even film their own commercials that thousands view on sites such as YouTube. This important trend helps to define the era of Web 2.0: the rebirth of the Internet as a social, interactive medium from its original roots as a form of one-way transmission from producers to consumers. We’ll explore these ideas with intriguing and current examples as we show how the consumer behavior discipline relates to your daily life. Throughout the twelfth edition, you’ll find up-to-the-minute discussions of topics such as dadvertising, meerkating, the imbibing idiot basis, swatting, and swishing. If you can’t identify all of these terms, I can suggest a textbook that you should read immediately! Going Global The U.S. experience is important, but it’s far from the whole story. This book also M considers the many other consumers around the world whose diverse experiences with buying, having, and being we must understand. C That’s why you’ll find numerous examples of marketing and consumer D practices relating to consumers and companies outside the United States throughout the book. If we didn’t know it before the tragic events of O September 11, 2001, we certainly know it now: Americans also are global N it’s vital that we all appreciate others’ perspectives. citizens, and O U G H , Digital Consumer Behavior: A Virtual Community B Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 R day, there’s no doubt the world is changing—and consumer As more of us go online every behavior evolves faster than I you can say “the Web.” The twelfth edition continues to highlight and celebrate the brave new world of digital consumer behavior. Today, consumers T electronically in ways we have never known before. Rapid and producers come together transmission of information T alters the speed at which new trends develop and the direction in which they travel, especially because the virtual world lets consumers participate in A of new products. the creation and dissemination One of the most exciting N aspects of the new digital world is that consumers can interact directly with other people who live around the block or around the world. As a Y redefine the meaning of community. It’s no longer enough result, we need to radically to acknowledge that consumers like to talk to each other about products. Now we share opinions and get the buzz about new movies, CDs, cars, clothes—you name it—in elec5 tronic communities that may include a housewife in Alabama, a disabled senior citizen in Alaska, or a teen loaded with 9 body piercings in Amsterdam. And many of us meet up in computer-mediated environments (CMEs) such as Facebook, Twitter, and Foursquare. I’m 9 totally fascinated by what goes on in virtual worlds, and you’ll see a lot of material in this edition that relates to these2emerging consumer playgrounds. We have just begun to explore the ramifications for consumer behavior when a Web B surfer can project her own picture onto a Web site to get a virtual makeover or a corporate purchasing agent canUsolicit bids for a new piece of equipment from vendors around the world in minutes. These new ways of interacting in the marketplace create bountiful opportunities for businesspeople and consumers alike. You will find illustrations of the changing digital world sprinkled liberally throughout this edition. In addition, each chapter features boxes that I call Net Profit, which point to specific examples of the Internet’s potential to improve the way we conduct business. Preface But is the digital world always a rosy place? Unfortunately, just as in the “real world,” the answer is no. The potential to exploit consumers, whether by invading their privacy, preying on the curiosity of children, or simply providing false product information, is always there. That’s why you’ll also find boxes called The Tangled Web that point out some of the abuses of this fascinating new medium. Still, I can’t imagine a world without the Web, and I hope you’ll enjoy the ways it’s changing our field. When it comes to the new virtual world of consumer behavior, you’re either on the train or under it. xvii The Tangled Web From ihatestarbucks.com to boycottwalmart.meetup .com, irritated customers have launched hundreds of gripe sites to air their grievances against companies. The practice is so widespread that some firms proactively buy unflattering domain names to keep other people from buying the them. XXerox, for example, ccom xeroxcorporation registered xeroxstinks.com, eerox. sucks.com, and ihatexerox.net. About 20,000 domain names end in “sucks.com. ” About onessuck third of these sites are registered eegis to none other Successful companies thanthat the companies eey sla slam; owners include understand needs are they Walmart Coca-Cola, Cola, Toys “R” Us, Target, C a moving target.Stores, No orgaand Whole Foods Market. eet.32 nization—no matter how renowned for its marketing prowess—can afford to rest on its laurels. Everyone needs to keep innovating to stay ahead of changing customers and the marketplace. BMW is a great example. No one (not even rivals like Audi or Mercedes-Benz) would argue that the German automaker knows how to make a good car (though they may not agree with the company’s claim to be “the ultimate driving machine”). Still, BMW’s engineers and designers know they have to understand how drivers’ needs will change in the future—even those loyal owners who love the cars they own today. The company is highly sensitive to such key trends as: Marketing Opportunity Consumer Research Is a Big Tent: The Importance of a Balanced Perspective M Like most of you who will read this book, the field of consumer C behavior is young, dynamic, and in flux. It is constantly cross-fertilized by perspectives from many different D disciplines: The field is a big tent that invites many diverse views to enter. I try to express O represent virtually the field’s staggering diversity in these pages. Consumer researchers every social science discipline, plus a few from the physical sciences and the arts for good N measure. From this blending of disciplines comes a dynamic and complex research perO spective, including viewpoints regarding appropriate research methods, and even deeply held beliefs about what are and what are not appropriate issues U for consumer researchers to study in the first place. G consumers. Many The book also emphasizes how strategically vital it is to understand (if not most) of the fundamental concepts in marketing emanateHfrom a manager’s ability to know people. After all, if we don’t understand why people behave as they do, how can we identify their needs? If we can’t identify their needs, how can, we satisfy their needs? If we can’t satisfy people’s needs, we don’t have a marketing concept, so we might as well fold up our big tent and go home! B To illustrate the potential of consumer research to inform marketing strategy, the text contains numerous examples of specific applications of consumer behavior concepts by R marketing practitioners, as well as examples of windows of opportunity where we could I use these concepts (perhaps by alert strategists after they take this course!). The Marketing T ways in which marOpportunity boxes you’ll find in each chapter highlight the fascinating keting practitioners translate the wisdom they glean from consumer research into actual T business activities. ISBN 1-323-46948-6 The Good, the Bad, and the Ugly A N Y A strategic focus is great, but this book doesn’t assume that everything marketers do is in the best interests of consumers or of their environment. Likewise, as consumers we do many things that are not so positive, either. We suffer from5addictions, status envy, ethnocentrism, racism, sexism, and many other -isms. Regrettably, 9 there are times when marketing activities—deliberately or not—encourage or exploit these human flaws. This 9 We’ll highlight marketbook deals with the totality of consumer behavior, warts and all. ing mistakes or ethically suspect activities in boxes that I call Marketing 2 Pitfall. On a more cheerful note, marketers create wonderful (or at least unusual) things, B such as holidays, comic books, Krispy Kreme donuts, nu-jazz music, Webkinz, and the many stylistic options that beckon to us in the domains of clothing, U home design, the arts, and cuisine. I also take pains to acknowledge the sizable impact of marketing on popular culture. Indeed, the final section of this book captures recent work in the field that scrutinizes, criticizes, and sometimes celebrates consumers in their everyday worlds. I hope you will enjoy reading about such wonderful things as much as I enjoyed writing about them. Welcome to the fascinating world of consumer behavior! ● ● ● A desire for environmentally friendly products Increasingly congested roadways and the movement by some cities such as London to impose fees on vehicles in central areas New business models that encourage consumers to rent products only while they need them rather than buying them outright BMW’s response: The company committed more than $1 billion to develop electric BMWi models such as its new i3 commuter car and i8 sports car. These futuristic-looking vehicles are largely made from lightweight carbon fiber to maximize the distance they ery charges, and 25 can go between battery percent of the interiorr plastic comes from recycled or renewable raw materials. In addition, BMW started a car-sharing service pean cities as well as (now in several European San Francisco) it calls DriveNow: Drivers use a computer chip in theirir licenses to hire a car and leave it wherever they are when they no orward thinking.4 longer need it. That’s forward Marketing Pitfall When Hurricane Sandy devastated cities on the East Coast in 2012, some marketers rose to the occasion, whereas others stumbled in the wind. Gap, for example, tweeted, “We’ll be doing lots of Gap.com shopping today. How about you?” American Apparel offered an incentive to shoppers: “In case you’re bored during the storm, just Enter SANDYSALE at Checkout.” Many of the storm victims were not amused. One tweeted, “Hey @americanapparel people have died and others are in need. Shut up about your #Sandy sale.” In contrast, Allstate ran radio commercials to let policyholders know how to file claims quickly. JetBlue Airways waived change and cancellation fees for people who had to rebook. How’s this for a relationship builder? Duracell batteries sent a truck to New York City that offered free batteries and access to charging lockers for mobile devices and computers to desperate people who had been without power (or even worse, access to social media).6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. xviii Preface Consumer Behavior in the Trenches CB AS I SEE IT All the World’s a Stage Stefano Putoni-Erasmus, University of Rotterdam Globalization is the defining social phenomenon of our times. Understanding its consequences for consumer behavior is crucial for marketers. A key way in which globalization influences consumer behavior is through the impact that globalization is having on the diversity of the societies in which we live. I think that many tensions associated with globalization stem from two opposing trends in how globalization influences diversity. First, globalization leads to an increase in diversity within countries. Contemporary societies are vastly more diverse than they used to be, as can be easily noticed by taking a walk around Rotterdam—where I live—or most other major cities. Second, globalization leads to a decrease in diversity between countries. Whereas few decades ago people in different countries lived very different lives, we can now observe a remarkable cultural convergence. For example, teenagers today listen to the same music, dress in the same way, and play the same games regardless of whether they live in Hong Kong or New York. A paradox of globalization is thus that it both increases and decreases diversity. On the one hand, you can now eat sushi or Indian food in a sleepy Italian town. On the other hand, these restaurants look pretty much the same as those found in similarly sleepy towns in other countries or continents. These two trends raise important new questions for consumer researchers and I have tried to address some of them in my own work—focusing on both increasing diversity within countries and decreasing diversity between countries. Here I would like to talk about one line of research, which I find especially interesting. It concerns the decrease in diversity between countries. One of the most visible aspects of globalization is the spread of English as the new lingua franca. The recent growth of English as the global language has been extraordinary and I’m a huge believer in the value of up-to-date information. Our field changes so rapidly that often yesterday’s news is no news at all. True, there are “timeless” studies that demonstrate basic consumer behavior constructs as well today as they did 20 years ago or more (I may even have authored some of them!). Still, I feel a real obligation to present students and their professors with a current view of research, popular culture, and marketing activities whenever I can. For this reason, each time I start to contemplate my next edition, I write to colleagues to ask for M copies of papers they have in press that they believe will be imC in the future. Their cooperation with my request allows portant me to include a lot of fresh research examples; in some cases, D these articles will not yet have been published when this book O out. comes N I’ve also taken this initiative to the next level with a feature I call CB As I See It. In every chapter you’ll find a “flesh-and-blood” O consumer behavior professor who shares his or her perspective as aU leading researcher in a particular area of specialization about an appropriate topic. I’ve let these esteemed colleagues largely speak for themselves, so G other voices who chime in on relevant research issues. now students can benefit from the process is still gathering speed. With Bart de Langhe, Daniel Fenandes, and Stijn van Osselaer, I studied the impact of the rise of English as the global language for consumers’ response to both marketing communications and marketing research. The basic contention of our articles is simple, as well as intuitive to any introspective bilingual: one’s native language has special emotional qualities due to the connection of words with meaningful personal experiences. To make a concrete example, to a Dutch speaker, the word “oma” (“grandmother”) is inescapably associated to his or her grandmother, whereas the English word lacks this link to personal memories and it is thus more emotionally neutral. Messages have therefore more emotional impact when expressed in one’s native than second language. Messages in English are common in many countries where English is not an official language. There are good reasons why companies decide to use English in their interactions with consumers who are not native speakers of English. However, our research highlights a potential drawback. For example, delivering emotional experiences is considered central in branding and it is harder to achieve this goal using a language that is not the consumer’s native language. Data Powered H by, GfK For this edition we’ve partnered with GfK, one of the largest market research organizations B in the world, to provide students with actual consumer data to use in the end-of-part cases. Rto “get their hands dirty” with real issues and to develop their This feature allows students analytical skills. The data are real, and the problems are too. Each case presents the stuI dent with a scenario that he or she would face when working in industry and asks them to use that information toTmake decisions and marketing recommendations. Additional chapter level exercises thatTalso incorporate actual GfK data can be found in the Marketing Metrics questions in MyMarketingLab. A N Critical Y Case Study HONDA’S ASIMO Meet ASIMO! He is 4 feet tall, with a pleasant childish voice, and the ability to recognize and interact with people; however, ASIMO is no child. He is the humanoid robot “brainchild” of scientists at Honda. ASIMO’s technology includes two camera eyes to map its environment and recognize unique faces. Its body construction is so humanlike that it can run at 3.5 mph, toss a ball to play with a child, and use its opposable thumbs to open a bottle and serve you a cold drink. ASIMO is the perfect household companion. Honda has not yet made ASIMO available to purchase for home use, but it is only a matter of time until families can have their own humanoid robot. But not everyone is interested. describe wanting to create a social robot with a whimsical appearance, intentionally not human or animal. They believe that “robots will be their own kind of creature and should be accepted, measured, and valued on those terms.” If consumers are not ready for ASIMO, perhaps they are ready for some of its features. Facial recognition technology (FRT), the ability for a computer to “read” your face, is seeing strong development and application. According to some analysts, the FRT market is expected to grow from $1.92 billion to $6.5 billion within the next 5 years. Advertisers and big brands are taking notice of FRT. Imagine a billboard in a mall that advertises Abercrombie to a teen girl and Target to a busy mom. Immersive Labs, recently acquired by Kairos, has developed digital billboards that mea- t
Thinking in Consumer Behavior: Case Study 5Learning by doing is an integral part of the classroom experience. You’ll find a case study at the end of each chapter, along 9with discussion questions to help you apply the case to the 9chapter’s contents. Also included in the twelfth edition are the following items that will enhance the student learning 2experience: B Chapter Objectives at the beginning of each chapter provide an overview of key issues to be covered in U the chapter. Each chapter summary is then organized around the objectives to help you integrate the material you have read. sections: Discuss poses thoughtful issues that encourage you to consider pragmatic and ethical implications of the material you have read. Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 t
Review at the end of each chapter helps you to study key issues. t
The Consumer Behavior Challenge at the end of each chapter is divided into two Preface Apply allows you to “get your hands dirty” as you conduct mini-experiments and collect data in the real world to better grasp the application of consumer behavior principles. Instructor Resources At the Instructor Resource Center, www.pearsonhighered.com/irc, instructors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical support team is ready to help with the M media supplements that accompany this text. Visit http://247.pearsoned.com for answers to frequently asked questions and toll-free user support phone numbers. C The following supplements are available with this text: t
Instructor’s Resource Manual t
Test Bank t
TestGen® Computerized Test Bank t
PowerPoint Presentations D O N O U G H , B R I T T A N Y ISBN 1-323-46948-6 5 9 9 2 B U Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. xix M C D O N O U G H , B R I T T A N Y 5 9 9 2 B U ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ACKNOWLEDGMENTS Sarah Roche, a doctoral student at the University of Texas at San Antonio (and now a faculty member at Texas Wesleyan University), did yeoman service as she helped me to review recently published academic articles. I’m also grateful for the many helpful comments on how to improve the twelfth edition that my peer reviewers provided. Special thanks go to the following individuals: Karen L. Becker, The College of New Jersey Carolyn Bonifield, University of Vermont Dr. Jane Boyd Thomas, Winthrop University Karthikeya Easwar, Georgetown University Xiang Fang, Oklahoma State University Andrew Forman, Hofstra University Curtis P. Haugtvedt, Ohio State University James Mason, Oklahoma State University Carolyn F. Musgrove, Indiana University Southeast Thomas A. Myers, Virginia Commonwealth University Paul Jr., Indiana University Glenna C. Pendleton, Northern Michigan University Carol Salusso, Washington State University Leah Schneider, University of Oregon Gene Steidinger Jr., Loras College Ebru Ulusoy, University of Maine Mary G. Vermillion, DePaul University Tommy E. Whittler, St. Vincent DePaul University Yi-Chia Wu. University of Texas - Pan American Weiling Zhuang, Eastern Kentucky University M C D O N O U G H , ISBN 1-323-46948-6 B R I T These colleagues generously contributed their thoughts to my CB As I See It boxes: T Julie Baker, Texas A&M University A Stacey Menzel Baker, Creighton University N Jonah Berger, University of Pennsylvania Malaika Brengman, Vrije Universiteit Brussel (Belgium) Y Fredric Brunel, Boston University Julien Cayla, Nanyang Business School (Singapore) Pierre Chandon, INSEAD (France) 5 Jean-Charles Chebat, HEC-Montréal (Canada) and Technion (Israel) 9 Paul Connell, Stonybrook University 9 Kingdom) Giana Eckhardt, Royal Holloway, University of London (United Amber Epp, University of Wisconsin–Madison 2 Jennifer Escalas, Vanderbilt University B Eileen Fischer, York University (Canada) Ron Hill, Villanova U Paul Henry, University of Sydney (Australia) Wendy Liu, University of California–San Diego John Lynch, University of Colorado–Boulder Nira Munichor, Hebrew University of Jerusalem (Israel) Cele Otnes, University of Illinois at Urbana–Champaign Michel Tuan Pham, Columbia University Stefano Putoni, Erasmus University of Rotterdam (The Netherlands) xxi Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. xxii Acknowledgments Derek Rucker, Northwestern University Craig Thompson, University of Wisconsin–Madison Debora Thompson, Georgetown University Benjamin Voyer, ESCP Europe Business School (France) & London School of Economics (United Kingdom) Michel Wedel, University of Maryland Jerome Williams, Rutgers University I thank David Nemi, Nassau Community College SUNY, for the creation of the Instructor’s Manual and Test Item Files and Darci Wagner, Ohio University, for her work with the PowerPoints. M the good people at Pearson who, as always, have done great I would also like to thank work on this edition. A special C thanks to Mark Gaffney, Stephanie Wall, Jen Collins, and Lenny Raper for their support; Becca Groves did a great job keeping me on course, and Melissa Pellerano was her D usual conscientious self. Without the tolerance Oof my friends and colleagues, I would never have been able to sustain the illusion that I was still an active researcher while I worked on this edition. N chair, Dave Allan, and to Dean Joe DiAngelo for supportI am grateful to my department ing their high-maintenance Ofaculty member. Also, I am grateful to my students, who have been a prime source of inspiration, examples, and feedback. The satisfaction I garnered Uconsumer behavior motivated me to write a book I felt they from teaching them about would like to read. G Last but not least, I would like to thank my family and friends for sticking by me H during this revision. They know who they are; their names pop up in chapter vignettes throughout the book. My ,apologies for “distorting” their characters in the name of poetic license! My gratitude and love go out to my parents, Jackie and Henry, and my in-laws, Marilyn and Phil. Ditto to my super children, Amanda, Zachary, and Alexandra—and my B always made the sun shine on gray days (not to mention high-tech son-in-law Orly—who my favorite pug, Kelbie Rae). My fabulous granddaughters Rose, Evey, and Arya added a R special thrill. Finally, thanks above all to the love of my life: Gail, my wonderful wife, best I friend, and the hottest grandmother on earth: I still do it all for you. T T A N Y M.R.S. Philadelphia, Pennsylvania August 2015 5 9 9 2 B U ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. M C D O N O U G H , Consumer BR Behavior I T T A N Y ISBN 1-323-46948-6 5 9 9 2 B U Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. M C D O N O U G H , B R I T T A N Y 5 9 9 2 B U ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. 2: I on n C o ter n ns al Infl um er B uences ehavio r R So 3: Choosing ts c and Using Produ C B E H A V I O 4 c ia : Con l a sum e n d Cultu rs in Their ral Sett ings E R S U M O N ions vi o r 1: FoundatB ha of Consumer e M C D O N O U G H , Section 1 Foundations of Consumer Behavior ● This introductory section provides an overview of the field of consumer behavior (CB). In Chapter 1, we look at how consumers influence the field of marketing B and at how marketers influence us. We describe the discipline of consumer behaviorR and some of the different approaches to understanding what makes consumers tick. In Chapter 2 we’ll look at the I broad issue of well-being, at both the positive and negative ways the products we use affect T T A N Y us and we’ll also focus on the central role of ethics in marketing decisions. T E R S A H E A D Buying, Having, and Being: An Introduction to Consumer Behavior Consumer and Social Well-Being ISBN 1-323-46948-6 5 C9 H A P 9 Chapter 1 t 2 B Chapter 2 t U 3 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. Chapter 1 Buying, Having, and Being: An Introduction to Consumer Behavior Chapter Objectives ● When you finish reading this chapter you will understand why: M C Marketers have to understand the wants and needs of D different consumer segments. O Our choices as consumers relate in powerful ways to theN rest of our lives. O Our motivations to consume are complex and varied. U G H , 1-1 Consumer behavior is a process. 1-2 1-3 1-4 G 1-5 Technology and culture create a new “always-on” consumer. 1-6 Many different types of specialists study consumer behavior. 1-7 There are differing perspectives regarding how and what we should understand about consumer behavior. ail has some time to kill before her Accounting class, so she pulls out her trusty iPhone to see what’s going on in her social networks. Between studying for her B R in days—even her Facebook friends around campus have been quiet. Enough of the serious I time for some really educational surfing. stuff, she decides. It’s So, where to T go first? Gail goes straight to Pinterest to see if anyone has pinned any new styles on T her Shoe-aholic Board. Yes, definitely some new stuff to post for her sorority sisters. SheAflicks over to HerCampus (“a collegiette’s guide to lifeSM”) to get the latest 411 on The Bachelor TV show. She’s just about to jump to Gen Y Girl when she N gets a text from Jewelmint.com to notify her that the site has a new jewelry option for Y Accounting and Marketing exams, she hasn’t checked out anything interesting her that’s based on the profile she filled out when she registered. Sweet—it’s a bracelet the actress Allison Williams from Girls recommends. With her PayPal account, it doesn’t 5 the bracelet in the digital cart and order it—and to share a photo take Gail long to throw of her haul on Facebook. 9 Just on a whim, Gail opens the Tinder app on her phone; yes, as usual plenty of 9 guys who want to meet up if she “swipes right.” Not happening with these dweebs—a flurry of left swipes and she’s done.1 As Gail glances at the clock, she 2 B time for one quick post before she runs to catch the campus shuttle: Gail logs on to U and writes a quick but glowing paragraph about how great her RateMyProfessors.com realizes she’d better come back to the real world or she’ll miss her exam. OK, enough Consumer Behavior professor has been this semester … not to mention that awesome Source: Supri Suharjoto/Shutterstock.com. 4 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 textbook they’re using.2 CHAPTER 1 OBJECTIVE 1-1 ISBN 1-323-46948-6 Consumer behavior is a process. Buying, Having, and Being: An Introduction to Consumer Behavior Consumer Behavior: People in the Marketplace This book is about people like Gail—and you. It concerns the products and services we buy and use and the ways these fit into our lives. This introductory chapter describes some important aspects of the field of consumer behavior and some reasons why it’s essential to understand how people interact with the marketing system. For now, though, let’s return to one “typical” consumer: Gail, the business major. The preceding vignette allows us to highlight some aspects of consumer behavior that we will cover in the rest of the book. M For some purposes, Gail is a consumer; so let’s compare her to other consumers. marketers find it useful to categorize her in terms of her age, gender, C income, or occupation. These are descriptive characteristics of a population, or demographics. In other D in clothing or music cases, marketers would rather know something about Gail’s interests or the way she spends her leisure time. Knowledge of consumer Ocharacteristics plays an extremely important role in many marketing applications, such as when a manufacturer defines the market for a product or an advertising agency decidesNon the appropriate techniques to employ when it targets a certain group of consumers. O Gail’s sorority sisters strongly influence her purchase decisions. The conversations U as recommendations we have with others transmit a lot of product information, as well to use or avoid particular brands; this content often is more influential than what we see G on television commercials, magazines, or billboards. The growth of the Web has created H thousands of online consumption communities, where members share opinions and recommendations about anything from Barbie dolls to baseball ,fantasy league team lineups to iPhone apps. Gail forms bonds with fellow group members because they use the same products. There is also pressure on each group member to buy things that will meet with the group’s approval. A consumer may pay a steep price inBthe form of group rejection or embarrassment when he or she doesn’t conform to others’ conceptions of what is R good or bad, “in” or “out.” As members of a large society, such as in the United States,Ipeople share certain cultural values, or strongly held beliefs about the way the world should T function. Members of subcultures, or smaller groups within the culture, also share values; these groups include TArcade Fire, wear Band Hispanics, teens, Midwesterners, and even hipsters who listen to of Outsiders clothing, and eat vegan tacos. A Everyday Gail comes into contact with information about many competing brands. Na turnoff because they Some don’t capture her attention at all, whereas others are just don’t relate to “looks,” people, or ideas with which she identifies.YThe use of market segmentation strategies means an organization targets its product, service, or idea only to specific groups of consumers rather than to everybody—even if it means that other consumers who don’t belong to this target market aren’t attracted to5it. That’s why they make chocolate and vanilla ice cream (and even candied bacon flavor!). 9 Brands often have clearly defined images, or “personalities,” that advertising, packaging, branding, and other marketing elements help to9shape. Even the choice of a favorite Web site is very much a lifestyle statement: It says a lot about a person’s 2 interests, as well as something about the type of person he or she would like to be. People often purchase a product because they like its imageB or because they feel its “personality” somehow corresponds to their own. This is true U even when they evaluate other people; after all, each of us is in a way a “brand” that others like or not—thus the popularity of dating apps such as Tinder that let people quickly choose among competing alternatives! Moreover, a consumer may believe that if he or she buys and uses the product or service, its desirable qualities will “magically” rub off on to him or her. When a product or service satisfies our specific needs or desires, we may reward it with many years of brand loyalty, which is a bond between product and consumer that is difficult for competitors to break. Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. 5 6 SECTION 1 Foundations of Consumer Behavior Consumers form strong loyalties with their favorite brands or stores. If necessary, many are willing to camp out for a new product introduction, much like they would for scarce tickets at a big concert. Source: Jeffrey Blackler/Alamy. M C D O N O U G H , The appearance, taste, texture, or smell of the item influences our evaluations of products. A good Web site helps people to feel, taste, and smell with their eyes. We may B color of a package on the store shelf, as well as by more be swayed by the shape and subtle factors, such as the Rsymbolism in a brand name, in an advertisement, or even in the choice of a cover model for a magazine. These judgments are affected by—and I feels people should define themselves at that point in time. often reflect—how a society Many product meanings lurk T below the surface of packaging and advertising; we’ll discuss some of the methods marketers and social scientists use to discover or apply these T meanings. Like Gail, we shape our A opinions and desires based on a mix of voices from around the world, which is becoming a much smaller place as a result of rapid advancements in N communications and transportation systems. In today’s global culture, consumers often prize products and services that “transport” them to different places and allow them to Y experience the diversity of other cultures—even if only to watch others brush their teeth on YouTube. 5 9 Behavior? What Is Consumer 9 The field of consumer behavior covers a lot of ground: It is the study of the processes 2 involved when individuals or groups select, purchase, use, or dispose of products, services, B needs and desires. Consumers take many forms, ranging ideas, or experiences to satisfy from an 8-year-old child U who begs her mother for a Frozen Elsa doll to an executive in Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 a large corporation who helps to decide on a multimillion-dollar computer system. The items we consume include anything from canned peas to a massage, democracy, Juicy jeans, Reggaeton music, or a celebrity like Taylor Swift. The needs and desires we satisfy range from hunger and thirst to love, status, and even spiritual fulfillment. Also, as we’ll see throughout this book, people get passionate about a broad range of products. Whether it’s vintage Air Jordans, that perfect yoga mat, or the latest computer tablet, there’s no shortage of brand fans who will do whatever it takes to find and buy what they crave. CHAPTER 1 Buying, Having, and Being: An Introduction to Consumer Behavior Consumer Behavior Is a Process In its early stages of development, researchers referred to the field as buyer behavior; this reflected the emphasis at that time (1960s and 1970s) on the interaction between consumers and producers at the time of purchase. Most marketers now recognize that consumer behavior is in fact an ongoing process, not merely what happens at the moment a consumer hands over money or a credit card and in turn receives some good or service. The exchange, a transaction in which two or more organizations or people give and receive something of value, is an integral part of marketing.3 Although exchange theory remains an important part of consumer behavior, the expanded view emphasizes the entire consumption process, which includes the issues that influence M the consumer before, during, and after a purchase. Figure 1.1 illustrates some of the issues that we address durC ing each stage of the consumption process. A consumer is a person who identifies a need or desire, makes D a purchase, and then disposes of the product during the three stages of the consumption process. In many O cases, however, different people play a role in this sequence of events. The purchaser and N picks out clothes for user of a product might not be the same person, as when a parent a teenager (and makes selections that can result in “fashion suicide” O in the view of the teen). In other cases, another person may act as an influencer when he or she recommends certain products without actually buying or using them.U A friend’s grimace when you try on that new pair of pants may be more influential than G anything your mother might say. Hgroups. One or several Finally, consumers may take the form of organizations or persons may select products that many will use, as when a purchasing agent orders a , company’s office supplies. In other organizational situations, a large group of people may make purchase decisions: for example, company accountants, designers, engineers, sales personnel, and others—all of whom will have a say in the B various stages of the consumption process. As we’ll see in Chapter 11, one important type of organization is R the family, in which different family members weigh in about products and services that all will use. I Figure 1.1 STAGES IN THE CONSUMPTION PROCESS ISBN 1-323-46948-6 CONSUMER’S PERSPECTIVE PREPURCHASE ISSUES How does a consumer decide that he/she needs a product? What are the best sources of information to learn more about alternative choices? PURCHASE ISSUES Is acquiring a product a stressful or pleasant experience? What does the purchase say about the consumer? POSTPURCHASE ISSUES Does the product provide pleasure or perform its intended function? How is the product eventually disposed of, and what are the environmental consequences of this act? T T A N Y 5 9 9 2 B U MARKETER’S PERSPECTIVE How are consumer attitudes toward products formed and/or changed? What cues do consumers use to infer which products are superior to others? How do situational factors, such as time pressure or store displays, affect the consumer’s purchase decision? What determines whether a consumer will be satisfied with a product and whether he/she will buy it again? Does this person tell others about his/her experiences with the product and influence their purchase decisions? Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. 7 8 SECTION 1 Foundations of Consumer Behavior Marketing Opportunity Successful companies understand that needs are a moving target. No organization—no matter how renowned for its marketing prowess—can afford to rest on its laurels. Everyone needs to keep innovating to stay ahead of changing customers and the marketplace. BMW is a great example. No one (not even rivals like Audi or Mercedes-Benz) would argue that the German automaker knows how to make a good car (though they may not agree with the company’s claim to be “the ultimate driving machine”). Still, BMW’s engineers and designers know they have to understand how drivers’ needs will change in the future—even those loyal owners who love the cars they own today. The company is highly sensitive to such key trends as: ● ● ● A desire for environmentally friendly products Increasingly congested roadways and the movement by some cities such as London to impose fees on vehicles in central areas New business models that encourage consumers to rent products only while they need them rather than buying them outright BMW’s response: The company committed more than $1 billion to develop electric BMWi models such as its new i3 commuter car and i8 sports car. These futuristic-looking vehicles are largely made from lightweight carbon fiber to maximize the distance they can go between battery charges, and 25 percent of the interior plastic comes from recycled or renewable raw materials. In addition, BMW started a car-sharing service (now in several European cities as well as San Francisco) it calls DriveNow: Drivers use a computer chip in their licenses to hire a car and leave it wherever they are when they no longer need it. That’s forward thinking.4 Consumers’ Impact on Marketing Strategy Why should managers, advertisers, and other marketing professionals bother to learn about consumer behavior? Simply, it’s good business. The basic marketing concept that you (hopefully) remember from your basic Marketing class states that organizations exist to satisfy needs. Marketers can satisfy these needs only to the extent that they understand the people or organizations that will use the products and services they sell. Voila! That’s why we study consumer behavior. OBJECTIVE 1-2 Marketers have to understand the wants and needs of different consumer segments. Consumers Are Different! How We M Divide Them Up C Our society is evolving from a mass culture in which many consumers D share the same preferences to a diverse one in which we each have almost an infinite number of choices—just think O about how many shades of lipstick or necktie patterns compete N makes it more important than ever to identify distinct marfor your attention. This change ket segments and to develop Ospecialized messages and products for those groups. As we’ll see later, building loyalty to a brand is a smart marketing strategy, so someU segments when they identify their most faithful customers times companies define market or heavy users. As a ruleG of thumb, marketers use the 80/20 rule: 20 percent of users account for 80 percent of sales. This guideline often holds up well, and in some cases even this lopsided split isn’t bigHenough: A study of 54 million shoppers reported that only 2.5 percent of consumers,account for 80 percent of sales for the average packaged-goods brand. The 1 percent of pet owners who buy 80 percent of Iams pet food spend $93 a year on the brand, and the 1.2 percent of beer drinkers who account for 80 percent of Budweiser sales spend $170 B on Bud each year. Of the 1,364 brands the researchers studied, only 25 had a consumer base of more than 10 percent that accounted for 80 percent R of volume.5 So, just think of the 80/20 rule as a guideline rather than set in stone. Aside from heavy usage I of a product, we use many other dimensions to divide up a larger market. As we’ve already seen, demographics are statistics that measure observable T aspects of a population, such as birth rate, age distribution, and income. The U.S. Census Bureau is a major sourceT of demographic data on U.S. families, but many private firms gather additional data on specific population groups as well. The changes and trends that A demographic studies reveal are of great interest to marketers because they can use the N size of markets for many products, ranging from home mortdata to locate and predict the gages to brooms and can openers. Imagine trying to sell baby food to a single male or an Y around the world cruise to a couple making $15,000 a year! 5 9 9 2 B U Source: BMW of North America, LLC. Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 BMW anticipated changes in consumer behavior as it develops electric car models like the i8 that satisfy dual desires for style and environmental responsibility. CHAPTER 1 Buying, Having, and Being: An Introduction to Consumer Behavior In this book we explore many of the important demographic variables that make one consumer the same as or different from others. We also consider other important characteristics that are a bit subtler, such as differences in consumers’ personalities and tastes that we can’t objectively measure, yet may hugely impact our product choices. For now, let’s summarize a few of the most important demographic dimensions, each of which we’ll describe in more detail in later chapters. Age Consumers of different age groups obviously have different needs and wants. Although people who belong to the same age group differ in many other ways, they do tend to share a set of values and common cultural experiences that they carry throughout life.7 Mone age group and then In some cases, marketers initially develop a product to attract try to broaden its appeal later on. That’s what the high-octane energy C drink Red Bull does. The company aggressively introduced it in bars, nightclubs, and gyms to the product’s Dother contexts, and the core audience of young people. Over time, it became popular in company began to sponsor the PGA European Tour to broadenO its reach to older golfers (who probably aren’t up partying all night). It also hands out free cans to commuters, cab drivers, and car rental agencies to promote the drink as a way toN stay alert on the road.8 O U come in pink versions We start to make gender distinctions at an early age—even diapers for girls and blue for boys. Many products, from fragrances to footwear, target either men G H , Gender 9 Marketing Pitfall When Hurricane Sandy devastated cities on the East Coast in 2012, some marketers rose to the occasion, whereas others stumbled in the wind. Gap, for example, tweeted, “We’ll be doing lots of Gap.com shopping today. How about you?” American Apparel offered an incentive to shoppers: “In case you’re bored during the storm, just Enter SANDYSALE at Checkout.” Many of the storm victims were not amused. One tweeted, “Hey @americanapparel people have died and others are in need. Shut up about your #Sandy sale.” In contrast, Allstate ran radio commercials to let policyholders know how to file claims quickly. JetBlue Airways waived change and cancellation fees for people who had to rebook. How’s this for a relationship builder? Duracell batteries sent a truck to New York City that offered free batteries and access to charging lockers for mobile devices and computers to desperate people who had been without power (or even worse, access to social media).6 B R I T T A N Y ISBN 1-323-46948-6 5 9 9 2 B U Red Bull targets different age groups with its promotions. Source: picturesbyrob/Alamy. Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. 10 SECTION 1 Foundations of Consumer Behavior or women. The popular sunglass and athletic apparel brand Oakley now makes a concerted effort to boost the paltry 10 percent of its’ revenue from women’s products. The new “Made for More” campaign offers a revitalized line of workout gear; it actually asks women to sign an agreement that they will wear the clothing specifically for exercising rather than just running errands after Oakley learned that a majority of women agree that exercise and fitness are important to them. 9 Family Structure A person’s family and marital status is yet another important demographic variable because this has a huge effect on consumers’ spending priorities. Not surprisingly, young bachelors and newlyweds are the most likely to exercise; go to bars, concerts, and movies; and consume alcohol M (enjoy it while you can!). Families with young children are big purchasers of health foods Cand fruit juices, whereas single-parent households and those with older children buy more junk food. Older couples and bachelors are most likely to use D 10 home maintenance services. O N social class are approximately equal in terms of income and People who belong to the same social standing in the community. They work in roughly similar occupations, and they O tend to have similar tastes in music, clothing, leisure activities, and art. They also tend to U G H , Social Class and Income The Redneck Bank takes a unique approach to social class segmentation (yes, this is a real bank). Source: Courtesy of www.redneckbank.com. B R I T T A N Y 5 9 9 2 B U ISBN 1-323-46948-6 Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. CHAPTER 1 Buying, Having, and Being: An Introduction to Consumer Behavior socialize with one another, and they share many ideas and values regarding the way they should live.11 The distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power and market potential. Race and Ethnicity African Americans, Hispanic Americans, and Asian Americans are the three fastestgrowing ethnic groups in the United States. As our society becomes increasingly multicultural, new opportunities develop to deliver specialized products to racial and ethnic groups and to introduce other groups to these offerings. McDonald’s regards ethnic consumers as trendsetters. The restaurant chain often assesses their reactions to new menu items or advertisements before it rolls them out to the Caucasian market. For example, the fruit combinations in McDonald’s smoothies are based on preferencesM the company’s researchers discovered in ethnic communities.12 C Geography D Many national marketers tailor their offerings to appeal to consumers O who live in different parts of the country. Some southerners are fond of a “good ol’ boy” image that leaves N the name “Bubba” as others scratching their heads. Although many northerners regard a negative term, businesses in Dixie proudly flaunt the name. Bubba O Co. is a Charlestonbased firm that licenses products such as Bubba-Q-Sauce. In Florida, restaurants, sports bars, nightclubs, and a limousine firm all proudly bear the nameU Bubba.13 G H Consumers also have different lifestyles, even if they share other demographic characteristics such as gender or age. The way we feel about ourselves, the things , we value, the things Lifestyles we like to do in our spare time—all of these factors help to determine which products will push our buttons or even those that make us feel better. Procter & Gamble developed its heartburn medicine Prilosec OTC with an ideal customer in mindBbased on a lifestyle analysis. Her name is Joanne, and she’s a mother older than age 35 who’s more likely to get R heartburn from a cup of coffee than from an overdose of pizza and beer. A P&G executive observed, “We know Joanne. We know what she feels. We knowI what she eats. We know what else she likes to buy in the store.”14 T ISBN 1-323-46948-6 Segmenting by Behavior: Relationships and “Big Data”T Marketers carefully define customer segments and listen to people A in their markets as never before. Many of them now realize that a key to success is building relationships N who subscribe to this between brands and customers that will last a lifetime. Marketers philosophy of relationship marketing interact with customers Y on a regular basis and give them solid reasons to maintain a bond with the company over time. A focus on relationships is even more vital, especially during the nasty economic conditions we’ve recently experienced; when times are tough, people tend to rely5on their good friends for support! 9 Database marketing tracks specific consumers’ buying habits closely and crafts products and messages tailored precisely to people’s wants and 9 needs based on this information. Walmart stores massive amounts of information on the 100 million people who 2 visit its stores each week, and the company uses these data to fine-tune its offerings. For B example, when the company analyzed how shoppers’ buying patterns react when forecasters predict a major hurricane, it discovered that people do a lot more than simply stock U up on flashlights. Sales of strawberry Pop-Tarts increase by about 700 percent, and the top-selling product of all is … beer. Based on these insights, Walmart loads its trucks with toaster pastries and six-packs to stock local stores when a big storm approaches.15 At this very moment (and every moment thereafter until we croak), we all generate massive amounts of information that holds tremendous value for marketers. You may not see it, but we are practically buried by data that comes from many sources—sensors that collect climate information, the comments you and your friends make to your favorite social media sites, the credit card transactions we authorize, and even the GPS signals in Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. 11 12 SECTION 1 Foundations of Consumer Behavior Forward-looking companies are beginning to mine the gold they find in “Big Data.” Source: Copyright © 2012, SAS Institute Inc. All rights reserved. Reproduced with permission of SAS Institute Inc., Cary, NC, USA. M C D O N O U G H , B R I T T A N Y 5 9 9 2 our smartphones that let organizations know where most of us are pretty much anytime B amount of information has created a new field that causes day or night. This incredible tremendous excitement among U marketing analysts (and other math geeks). The collec- Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 tion and analysis of extremely large datasets is called Big Data, and you’ll be hearing a lot more about it in the next few years. Hint: If you have aptitude or interest in quantitative topics, this will be a desirable career path for you. In a single day, consumers create 2.5 quintillion bytes of data (or 2.5 exabytes). New data pops up so quickly that this number doubles about every 40 months—and 90 percent of the data in the world today was created in the last 2 years alone. In addition to the huge volume of information marketers now have to play with, its velocity (speed) also enables companies to make decisions in real time that used to take months or years. For CHAPTER 1 Buying, Having, and Being: An Introduction to Consumer Behavior example, one group of researchers used the GPS phone signals that were coming from Macy’s parking lots on Black Friday to estimate whether the department store was going to meet or exceed its sales projections for the biggest shopping day of the year—before the stores even reported their sales. This kind of intelligence allows financial analysts and marketing managers to move quickly as they buy and sell stocks or make merchandising decisions. It’s safe to say this data explosion will profoundly change the way we think about consumer behavior. Companies, nonprofits, political parties, and even governments now have the ability to sift through massive quantities of information that enables them to make precise predictions about what products we will buy, what charities we will donate to, what candidates we will vote for, and what levers they need to push to make this even M of data every hour more likely to happen. Walmart alone collects more than 2.5 petabytes from its customer transactions (the equivalent of about 20 million C filing cabinets’ worth of text). Here are a few varied examples that illustrate how Big Data influences what we D know and do:16 O at the Centers for Disease Control can identify specific areasN of the United States that have been hit by flu outbreaks even before the local authorities Onotice a rise in hospital admissions. Analysts for city police departments use massive amounts U of crime data to identify “hot zones,” where an abnormal amount of crimes occur.G This intelligence enables them to assign and reassign law enforcement agents exactly where they need them. H Although the Republicans outspent the Democrats during the 2012 presidential campaign, many attribute President Barack Obama’s reelection ,to his campaign’s master- ● When they monitor blips in Google queries for words like flu and fever, epidemiologists ● ● ful use of Big Data. The Democratic campaign systematically used huge datasets to help it decide exactly which voters needed an extra “nudge” to go to the polls and pull Bfigured out how importhe lever for Obama. In subsequent elections the Republicans tant it is to play catch-up and adopt their own Big Data strategies! OBJECTIVE 1-3 Our choices as consumers relate in powerful ways to the rest of our lives. R I Marketing’s Impact onTConsumers Does marketing imitate life, or vice Tversa? After the movie Wedding Crashers became a big hit, hotels, A wedding planners, and newlyweds reported an outbreak of uninvited guests who tried to gain access to parties across the UnitedN States.17 For better or for worse, we all live in a world that the actions Y of marketers significantly influence. 5 … Popular Culture Is Marketing Is Popular Culture ISBN 1-323-46948-6 9 Marketing stimuli surround us as advertisements, stores, and products compete for 9 learn about the world, our attention and our dollars. Marketers filter much of what we whether through the affluence they depict in glamorous magazines, the roles actors play 2 in commercials, or maybe the energy drink a rock star just “happens” to hold during a B alcohol consumpphoto shoot. Ads show us how we should act with regard to recycling, tion, the types of houses and cars we might wish to own—and U even how to evaluate others based on the products they buy or don’t buy. In many ways we are also at the mercy of marketers, because we rely on them to sell us products that are safe and that perform as promised, to tell us the truth about what they sell, and to price and distribute these products fairly. Popular culture—the music, movies, sports, books, celebrities, and other forms of entertainment that the mass market produces and consumes—is both a product of and an inspiration for marketers. It also affects our lives in more far-reaching ways, ranging from how we acknowledge cultural events such as marriage, death, or holidays to how we view Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. 13 14 SECTION 1 Foundations of Consumer Behavior We are surrounded by elements of popular culture—the good, the bad, and the ugly. This ad for the Museum of Bad Art reminds us of that. Source: With permission of Museum of Bad Art. M C D O N O U G social issues such as climate change, gambling, and addictions. Whether it’s the Super Bowl, Christmas shopping,H national health care, newspaper recycling, medical marijuana, body piercing, vaping, tweeting, or online video games, marketers play a significant role in , our view of the world and how we live in it. This cultural impact is hard to overlook, although many people do not seem to realize how much marketers influence B their preferences for movie and musical heroes; the latest fashions in clothing, food, and decorating choices; and even the physical features that they R find attractive or ugly in men and women. For example, consider the product icons that companies use to create an I identity for their products. Many imaginary creatures and personalities, from the Pillsbury Doughboy to the Jolly Green Giant, at one time or another T have been central figures in popular culture. In fact, it is likely that more consumers could recognize such charactersTthan could identify past presidents, business leaders, or artists. A N Y Source: Alex_Mac/Fotolia. Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 Marketers exert a huge impact on the way we live, for better and worse. Many companies and entrepreneurs are jumping on the new vaping bandwagon although the jury is still out as to whether this substitute for cigarette smoking is a good thing for smokers or simply a way to entice more young people to take up the smoking habit. 5 9 9 2 B U CHAPTER 1 Buying, Having, and Being: An Introduction to Consumer Behavior Although these figures never really existed, many of us feel as if we “know” them, and they certainly are effective spokescharacters for the products they represent. All the World’s a Stage The sociological perspective of role theory takes the view that much of consumer behavior resembles actions in a play.19 We as consumers seek the lines, props, and costumes necessary to put on a good performance. Because people act out many different roles, they sometimes alter their consumption decisions depending on the particular “play” they are in at the time. The criteria they use to evaluate products and services in one of their roles may be quite different from those they use in other roles. That’s why it’s important for M marketers to provide each of us “actors” with the props we need to play all of our varied roles; these might include “up-and-coming executive,” “geek,” C “hipster,” or “big man on campus.” D O N O U G H , 15 Marketing Opportunity The interplay between marketing and/media and “real life” is obvious when you consider the history of the cultural observance American U.S. college students know as “Spring Break.” Back in 1958 an English professor at Michigan State University heard some students talking about their Easter trip to Fort Lauderdale, Florida. He decided to go along to observe (they probably loved that), and upon his return he wrote a novel he called Where the Boys Are. That turned into a hit movie and the title song by Connie Francis rocked the charts. The year after the movie debuted in 1960, the number of students who visited Florida on their spring vacation ballooned from 20,000 to 50,000. MTV hosted a concert at Daytona Beach in 1986 that attracted major advertisers, and—thus began the commercialization of a rite that now attracts hundreds of thousands of devotees every year—maybe even you.18 B R I T T A N Y ISBN 1-323-46948-6 5 9 9 2 B U Technologies like Bluetooth connectivity allow consumers to interact with products more intimately, which in turn strengthens their relationships. Source: Courtesy of The Procter & Gamble Company. Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. 16 SECTION 1 Foundations of Consumer Behavior As we have seen, one trademark of marketing strategies today is that many organizations try very hard to build relationships with customers. The nature of these relationships can vary, but these bonds help us to understand some of the possible meanings products have for us. Furthermore, researchers find that, like friendships and love affairs with other people, our relationships with brands evolve over time. Some resemble deep friendships, whereas others are more like exciting but short-lived flings.20 Here are some of the types of relationships a person might have with a product: ● ● ● ● Self-concept attachment—The product helps to establish the user’s identity. Nostalgic attachment—The product serves as a link with a past self. Interdependence—The product is a part of the user’s daily routine. M emotional bonds of warmth, passion, or other strong Love—The product elicits emotion.21 C D O CB AS I SEE IT N Stefano Putoni-Erasmus, University of Rotterdam O U most other major cities. Second, globalization leads to G a decrease in diversity between countries. Whereas H few decades ago people in different , countries lived very different lives, we Globalization is the defining Consumer Behavior: Buying, Having, and Being, Twelfth Edition, by Michael R. Solomon. Published by Pearson. Copyright © 2017 by Pearson Education, Inc. ISBN 1-323-46948-6 social phenomenon of our times. Understanding its consequences for consumer behavior is crucial for marketers. A key way in which globalization influences consumer behavior is through the impact that globalization is having on the diversity of the societies in which we live. I think that many tensions associated with globalization stem from two opposing trends in how globalization influences diversity. First, globalization leads to an increase in diversity within countries. Contemporary societies are vastly more diverse than they used to be, as can be easily noticed by taking a walk around Rotterdam—where I live—or can now observe a remarkable cultural convergence. For example, teenagers today listen to the same B music, dress in the same way, and play the same R games regardless of whether they live in Hong Kong or New York. I A paradox of globalization is thus T that it both increases and decreases diversity. On the one hand, T you can now eat sushi or Indian food in a sleepy Italian town. OnAthe other hand, these restaurants N look pretty much the same as those found Y in other in similarly sleepy towns countries or continents. These two trends raise important new questions 5 and I for consumer researchers have tried to address 9 some of them in my own work—focusing on both 9 countries increasing diversity within and decreasing diversity 2 between countries. Here I would like toB talk about one line of research, whichUI find especially interesting. It concerns the decrease in diversity between countries. One of the most visible aspects of globalization is the spread of English as the new lingua franca. The recent growth of English as the global language has been extraordinary and the process is still gathering speed. With Bart de Langhe, Daniel Fenandes, and Stijn van Osselaer, I studied the impact of the rise of English as the global language for consumers’ response to both marketing communications and marketing research. The basic contention of our articles is simple, as well as intuitive to any introspective bilingual: one’s native language has special emotional qualities due to the connection of words with meaningful personal experiences. To make ...
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