MKT 310: Consumer Behavior - Exam 3 (Chapters 8-13)

Social Proof in Marketing

"Salting" goes much farther than tip jars - Laugh tracks on television - Boosting likes on Facebook - Product displays Positioning products as frequently used - "9 out of 10 people" - Identifiable consumption

How do reference groups influence us?

1. Informational: help us make decisions 2. Utilitarian (Normative): meet society's expectations 3. Value-Expression: wish to identify with group/person/hero

Class Structure in the U.S.

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Elaboration Likelihood Model (ELM)

A model of persuasion maintaining that there are two different routes to persuasion: the central route and the peripheral route

Defining the Modern Family

A sociological unit. Extended family and nuclear family. Some considerations: - One definition: Family household contains at least two people related by blood/marriage - Divorces and separations are accepted in our culture...marital breakups are an ever-present theme in books, music, and movies - Many adult females still choose to stay home with family / children (especially among best-educated / highest achieving women)

Reference Groups and Marketing Strategy

Admirational Strategies: Concentrate on highly visible, widely admired figures (athletes or performers) Membership Strategies: Focus on "ordinary" people whose consumption provides informational social influence Avoidance Strategies: Focus on undesirable people using competitor's product

Generation X

Baby Busters: Born between 1965 and 1985 Stereotyped inaccurately as alienated, cynical, and lazy Advertising campaigns that tried to appeal to the stereotype failed Actually an entrepreneurial generation Desire stable families, save portion of income, and view home as expression of individuality

Why are reference groups so persuasive?

Because of the potential social power they have on us

Self-Concept

Beliefs we hold about our own attributes. How we evaluate those qualities: - content - positivity (self-esteem) - stability - complexity

Self- Discrepancy Theory

Comparison between our "selves" influences self-esteem. Ideal/ought selves molded by consumer's culture. Only Actual/Own and Actual/Other are Self-Concepts, the others are Self-Guides. Comparison influences self-esteem. Ideal / ought selves molded by consumer's culture. Products can help us reach ideal or ought self, but need to be consistent with actual self.

PRIZM (Potential Rating Index by Zip Market)

Customer segmentation to help marketers answer: - What are they like? - Where can I find them? - How can I reach them?

Reasons to Seek Advice from Opinion Leaders

Expertise Unbiased knowledge (don't work for company) Highly interconnected in communities (social standing) Hands-on product experience (absorb risk)

Characteristics of Attitudes

Favorability (direction) Accessibility (strength) Confidence (strength) Persistence (strength) Resistance (strength)

Conformity: The Rules

Group size: 3-5 leads to maximum conformity. Initial Disagreement: If one person disagrees, conformity is substantially reduced Mood: People are more likely to conform when they are in good rather than bad mood Self-confidence: People with low self confidence are more likely to conform Culture: Collectivist vs Individualistic

Is income or social class a better predictor of consumer behavior?

It depends! Social class predicts symbolic purchases with low to moderate prices. Income predicts major expenditures with little symbolic meaning. BOTH income and social class needed to predict purchase of expensive, symbolic products.

The Asch Study

Participants were asked to select the line closest in line to length X. When cohorts gave obviously wrong answers, more than 1/3 of the subjects conformed and agreed with the incorrect choices. Depends on group size: 7 is optimal.

Generations

People have many things in common with others because they are ~ the same age (BORN AND RAISED AT THE SAME TIME) The Interbellum Generation - born around 1900 The "Greatest" Generation - born around 1920 The Silent Generation - born between two WW The Baby Boom Generation - born between 1946 and 1964 Generation X - born between 1965 and 1985 Generation Y - born between 1986 and 2002 Generation Z - born 2003 or later

Personality as a Moderator

Personality may temper or accentuate the effects of a given situation Examples: neuroticism accentuates (moderates) the impact of final exams

Factors that Influence Attitude Change

Source --> Message --> Receiver

Zimbardo Study (Stanford Prison Experiment)

Stanford, 1979 Students were assigned to be either Prisoners or Guards (and begin to embody the roles that were randomly asked to portray).

Cognitive Dissonance

The drive to reduce an inconsistency between thoughts, feelings, and behaviors. - Festinger's original experiment

Conditions that Strengthen Obedience

The person giving the orders was close at hand and seen as a legitimate authority figure Authority figure was supported by a prestigious institution The victim was depersonalized- at a distance, in another room No role models for defiance present = nobody else was seen disobeying the authority figure

Fishbein Model

To use it for prediction, one has to make many assumptions: Assume we can specify all the relevant attributes and beliefs. Assume that we can determine importance. Assume that consumers (implicitly) engage in such a calculation. Assume that attitudes are relevant.

How Social Class Changes Over Time

Upward Mobility - raising one's status level Downward Mobility - the lowering of one's social standing Social Class Fragmentation - disappearance of class distinctions

The Consistency Principles

We desire to be consistent with what we have already done. Once we make a choice we will encounter personal and interpersonal pressures to behavior consistently with that commitment.

Opinion Leadership

We don't usually ask just anyone for advice about purchases! We are most likely seek advice from someone who knows a lot about a product **Opinion leaders frequently influence others' attitudes/behaviors Generalized opinion leader vs. monomorphic/polymorphic experts Although opinion leaders exist for multiple product categories, expertise tends to overlap across similar categories - It is rare to find a generalized opinion leader Opinion Seekers: - More likely to talk about products with others and solicit others' opinions - Casual interaction prompted by situation

Social Comparison Theory

We make inferences about ourselves by constantly comparing ourselves to others (Festinger 1954). Upward vs. Downward Comparisons Influence our self concept (and specifically our self-esteem). Ideal, actual, and ought selves come into playBody image example. Important for vicarious learning. Self Monitoring

Social Class ("haves" vs. "have-nots")

Where we are in the social structure determines how much we spend AND how we spend it. - Especially Discretionary Spending How do you assign people to social classes, or do you at all? What consumption cues do you use (e.g., clothing, speech, cars, etc.) to determine social standing? What is a predictors of social class?

Gender: Differences in Acquisition and Consumption Behavior

Women: - More thorough examination of attributes - Like shopping more - More sensitive to negative emotions - Advertisements tend for focus on beauty and youth Men: - Are selective information processors - Shopping is viewed as something functional, not fun - More sensitive to positive emotions - Advertisements tend for focus on ambition and physical strength

Attitude Change:"Tricks" to Get What You Want

- Attitude change through "mindlessness" - Activating "fixed-action patterns" - Take advantage of ingrained habits and principles to produce the sort of behaviors you want - Authority, Consistency, Social proof (validation), Scarcity, Reciprocity, Liking

Self-Concept: Types of "Selves"

- Inner (private) vs. outer (public) self-impression management - Real vs. ideal self - Superego and the id (from Freud) The role of culture (i.e others) in self concept (the "looking glass" self)

ELM: What determines which route is taken?

- Personal relevance of message (Motivation!) - Relevant Knowledge - Cognitive (Mental) Resources - "Need for Cognition"

3 Steps to Reducing Dissonance

1. Eliminating (Reducing Inconsistency) - change the thought, i.e smoking is not that bad 2. Adding Information - new thoughts, i.e. I eat healthy so it's fine that I smoke 3. Change the Attitude - change behaviors, i.e. stop smoking

Opinion Leaders & Marketing

1. Target the opinion leaders 2. Use opinion leaders in marketing communications 3. Develop your own opinion leaders

Attitude

A lasting, general evaluation of people, objects, places, behaviors, or ideas (Ao). - Learned - Enduring - Stored and Constructed

Heider's Balance Theory

A motivational theory that gets people to change their attitude in order to agree with the people they like and disagree with the people they do not like. To keep our triads balanced, we like to see consistency in the world. - Implications for selecting spokespeople People dislike unbalanced attitudes and will change to resolve them. Perception > Reality

Personality

A person's unique psychological makeup and how it consistently influences the way a person responds to his or her environment. How has personality been studied? • Psychoanalytic Approaches: Personality arises from a set of dynamic, unconscious internal struggles w/the mind. (Freud: id, ego, superego, pleasure principle, reality principle). • Trait Approaches: Personality is comprised of characteristics that describe and differentiate individuals. • Phenomenological Approaches: Personality is largely shaped by interpretations of life events, locus of control, etc.

Foot-in-the-Door

A persuasive technique that works with people's tendency who have first agreed to a small request to have an increased likelihood to comply later with a larger request. Example: - First request: Large, ugly "drive carefully" sign - Or, first request: Small "be a safe driver" sign; THEN ask about large, ugly "drive carefully" sign - Or, first request "keep CA beautiful" sign or driving petition; THEN ask about large, ugly "drive carefully" sign

Affects of Social Class

Access to Resources Tastes and Lifestyles

Theory of Reasoned Action

Accounts for social environment. Predicts behavioral intention, not attitudes (like multi attribute attitude model) Beliefs about the behavior and evaluation of the behavior lead to a certain attitude about the behavior which leads to intention and then to behavior. Opinions of referent others and motivation to comply lead to subjective norm which leads to intention and then to behavior.

The Market Maven

Actively involved in transmitting marketplace information of all types. - Just into shopping and staying on top of what's happening in the marketplace - Solid overall knowledge of how and where to get products • "I like introducing new brands/products to friends" • "People ask me for information about products, places to shop, or sales" • "My friends think of me as a good source of information when it comes to new products or sales"

Television: "The Electric Babysitter"

Advertising's influence begins at early age - Many marketers start to push their products on kids to encourage them to build a habit at an early age Materialism?Ethics? - Consumer Psychologists - Children 8-12 collecting habits

Attitude Formation Process: Experiential Hierarchy

Affect --> Behavior --> Cognition --> Attitude (Based on hedonic consumption)

Components of Attitudes: The ABCs

Affect: How a consumer feels about Ao. Behavior: Person's intentions to do something with regards to Ao. Cognition: The beliefs (thoughts) a consumer has about an Ao. **A clever marketer can change each component.

Age Trends

Age cohort influences consumption patterns - Popular people/celebrities - Advertising style - Technology Children make up 3 distinct markets: - Primary market - Influence market (relies on parental yielding) - Future market

Persuasion

An active attempt to change or reinforce attitudes, beliefs, or behaviors.

Reference Groups

An actual or imaginary individual or group conceived of having significant relevance upon an individual's evaluations, aspirations, or behavior. - Provides one "norms" and values Basic assumption: Our desire to 'fit in' or to identify with desirable individuals or groups is the primary motivation for many of our purchases and activities. Consumer socialization: the process by which young people acquire skills, knowledge and attitudes relevant to becoming consumers in the marketplace

Nontraditional Family Structures

Any occupied housing unit is a household. Same-sex households are increasingly common: marketers target them as unit. Rise of single-person households - Singles spend more on rent, alcohol, reading materials, health care, and tobacco/smoking Voluntarily childless women and childless couples are attractive market segments Dual income, no kids (DINKs) are better educated and have more professional/managerial occupations

Sub-Categories of Reference Groups

Aspirational reference group Associative/membership reference group Dissociative/avoidance reference group

Attitude Formation: Multiattribute Attitude Models

Assume that consumers' attitudes depend on the beliefs they hold regarding many attributes of the object, and on how important these attributes are for consumers.

Functions of Attitudes

Attitudes exist because they serve some function for the person. Daniel Katz: 4 Key Attitude Functions - 1. Utilitarian function 2. Value-expressive function (social-identity function) 3. Ego-defensive function

3 Basic Properties of Multiattribute Attitude Models

Attributes are tangible or intangible characteristics of the object. Importance weights reflect the relative priority of an attribute to the consumer. Beliefs refer to the extent to which the consumer perceives that an object possesses a particular attribute.

Importance of Groups

Being accepted by others gives us feelings of belonging, affection, & attention Being accepted by a group usually means following (=conforming to) social norms: standards for how to behave in certain situations - Explicit social norms: spoken or written rules for behavior • Ex: Traffic rules, school dress code - Implicit social norms: unspoken, unwritten rules • Ex: Face forward in an elevator

Generation Y

Born approximately between 1986 and 2002 Make up one-third of U S population Spend $170 billion a year First to grow up with computers in their homes, in a 500-channel TV universe Multi-taskers with cell phones, music downloads, online IM Most diverse generation ever Many raised by single parent and/or working mother Gen-Y-ers value fitting in/ teamwork

Baby Boomers

Born between 1946 and 1964 There are many of them!! Revolution in style, politics, consumer attitudes More active and physically fit Currently in peak earning years - Food, apparel, and retirement programs - "Midlife crisis" products - Heavy consumers of banking and investment services

Kids Consuming

Brand Formation: - 98% of kids aged 9-13 know what car they would like to drive when they grow up - 97% know the highest-rated brand of athletic shoe - 93% know the highest-rated store to buy athletic shoes - 90% know the highest-rated store to buy clothing with sports team logos - 84% know the highest-rated brand of computer - 77% know the highest-rated hotel - 75% know the highest-rated brand of cameras Purchasing Influence: - 93% of kids between 9 and 13 influence what kinds of jeans their parents buy for them - 89% influence the kind of cookies, desserts, soda, chips and cereal purchased for their household - 61% of kids said they helped their parents decide what kind of family car to buy - 41% of kids whose parents bought a new car took the kids with them when car shopping

ELM: Central vs. Peripheral Route

Central Route: - Lots of thought - "Central" route to persuasion - More extensive processing of relevant attributes - Ability of product to meet needs matters here Peripheral Route: - Little thought - "Peripheral" route to persuasion - Not motivated to process arguments - Peripheral cues produce persuasion (e.g., number of arguments presented in ad, expertise of communicator, celebrities)

Attitude Formation Process: Standard Learning Hierarchy

Cognition --> Affect --> Behavior --> Attitude (Based on cognitive information processing)

Attitude Formation Process: Low-Involvement Hierarchy

Cognition --> Behavior --> Affect --> Attitude (Based on behavioral learning processing)

Nature and Type of Influence

Communicated Verbally & Normative: Example - Your friend tells you that you shouldn't wear that outfit again. Communicated Non- Verbally & Normative: Example - Your friend looks at you in a weird way whenever you wear the outfit. Communicated Verbally & Informational: Example - Your friend tells you there is a sale at Nordstrom (WOM). Communicated Non-Verbally & Informational: Example: You see a lot of people walking into Nordstrom and decide to go in.

How does social class influence purchase decisions and consumption?

Consumers perceive different products/stores as appropriate for certain social classes - Working class: Sturdy, comfortable, and familiar products - Affluent people: Appearance/body image. (e.g., diet foods /drinks) Conspicuous Consumption: The acquisition and display of goods and services to show off one's status) Conspicuous Waste: Visibly buying products and services that one never uses, or intentionally abuses Status Symbols: Products or services that tell others about someone's social class standing - Parody Display: status symbols that start in the lower classes and move upward - Fraudulent Symbols: status symbols that become so widely adopted that they lose their status Compensatory Consumption: The consumer behavior of buying products or services to offset frustration or difficulties in life.

Low Income Consumers

Consumers unable to obtain "adequate" and "socially acceptable" standard of living. Marketers often perceive middle-to-high income consumers the most desirable.

VALS Segmentation System

Consumers who are primarily motivated by ideals are guided by knowledge and principles. Consumers who are primarily motivated by achievement look for products and services that demonstrate success to their peers. Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk. Why are they asking about education and income? - Higher (lower) education and higher (lower) income, represent more (less) resources. What about age and gender? What is the rationale? - Age and gender may interact with some items in the scale and provide stronger/weaker evidence of a certain psychographic trait. - Example: younger people are usually more risk-taking (subcategory of self-expression). Therefore, if older people score high on this subcategory it provides even stronger evidence that they are primarily motivated by self-expression. - Example: men may be considered as more "Makers" (subcategory of self-expression). Therefore, if women score high on this subcategory it provides even stronger evidence that they are primarily motivated by self-expression.

Scarcity in Marketing

Creating a sense of urgency through a call to action Utilizing Loss Aversion and Reactance - "Limited offer" - "Offer for this month only" - "Only 3 left at this price" Firms also seeks to create exclusive experiences through products, brands, memberships, and more. - Limited products - "only 10 of these were ever made" - Email signups for exclusive offers - Loyalty programs Scarcity can be contextual as well...examples of limited freedom can be: - Variety - Stock-outs - Store Layout - Number of consumers

Trends in U.S. Household Structure

Delayed Marriage - M = 27, F = 25 Cohabitation Dual-Career Families Divorce Smaller Families Parents caring for parents

Attitudes Can Affect Behavior

Directly: - positive attitude (approach) - negative attitude (avoid) Indirectly: - placebo effects - placebo effects of marketing actions

Life-Cycle Effects on Buying

FLC model categories show marked differences in consumption patterns. - Young bachelors and newlyweds are most likely to exercise, go to bars/concerts/movies - Those in early 20s: apparel, electronics, gas - Families with young children: health foods - Single parents/older children: junk foods - Newlyweds: appliances (e.g., toaster ovens) - Older couples/bachelors: home maintenance services Autonomic vs. Syncretic Decisions

Problems Facing Low Income Consumers

Faulty Assumptions Exchange Restrictions - Supplier has upper hand Low Variety Price Discrimination - Direct: high supermarket prices - Indirect: lack of storage space, bulk buying

Authority in Marketing

Firms often try to signify credibility and expertise through authority... - Endorsements and branded products - Emphasizing firm longevity ("since 1946") - Leveraging existing authority Utilizing authority in marketing: - Influencer marketing

Roles that Household Members Play

Gatekeeper - household member who collects and controls info important to decider Influencer - household members who try to express their opinions and influence the decision Decider - person who actually determines what will be chosen Buyer - person who physically acquires product User - household member who consumes product

Consistency in Marketing

Heavily used in sales tactics ("keep them saying yes") The Bait-and-Switch: - Low Ball Technique - Many different forms Utilizing Social Marketing

Marketing Implications

Helps with market segmentation and defining target market (e.g., single moms and microwaveable foods) Allows marketers to better communicate product attributes Assists in generating new product ideas (Oscar Mayer lunch kits)

In-Group vs. Out-Group

In-Group: group to which a person perceives he/she belongs Out-Group: all other groups Different beliefs about in-groups vs. out-groups - View in- (out-) group members more (less) favorably - Greater complexity for in-group schemas - More variability for in-group members (called outgroup homogeneity bias) - Less extreme overall evaluations

The Rise of Mass Class

Income Distribution: - "affordable luxuries" within reach of many consumers - rising incomes + decreasing prices **Marketers cater to mass class with high quality products

Income vs. Social Class

Income is NOT directly related to social class: - Income increases as age increases but older workers are not in higher social classes than their younger counterparts - Dual-career families may have higher income but not higher status

Dissonance Reduction

Inconsistent attitudes and behaviors (smoking, drunk driving, brainwashing POWs) When there is dissonance, we try to reduce it.

Social Influence

Information and pressures from individuals, groups, and the mass media that affect how a person behaves. General Sources of Influence: • Marketer-dominated vs. Non-marketer-dominated • Delivered via mass-media vs. Delivered personally

The Gray Market: Talking to Seniors

Key values of mature consumers: - Autonomy: want to be self-sufficient - Connectedness: value bonds with friends & family - Altruism: want to give something back to the world Perceived age ("You're only as old as you feel!") - Chronological age - Perceived age (Feel-age and Look-age) Product Adaptations: - Packages sensitive to physical limitations (e.g., larger font sizes) - Serving sizes Mature Marketing Messages: - Abundance of information - Simple language - Single sales message, emphasize brand extensions (familiarity) - Avoid extraneous stimuli (excessive pictures) - Clear, bright pictures - Speak clearly, and keep word count low - Use action to attract attention

Why are some people more influenced than others by reference groups?

Knowledge/Information Individualistic/Collectivist Orientation Level of identification with group Susceptibility to interpersonal influence (personality trait)

Psychographics: Combining values, personality, and lifestyles

Most used psychographic measure is VALS (Value and Lifestyle Survey) Developed by SRI (Strategic Business Insights) Classifies consumers in 8 major segments and two dimensions. Basic 2 dimensions: - Motivations: Ideals (principles oriented), achievement (status oriented), and self-expression (action oriented). - Resources: Age, income, education, energy, self-confidence, intellectualism, novelty seeking, innovativeness, impulsiveness, leadership, and vanity

Freudian Theory

Much of one's adult personality comes from a fundamental conflict between a person's desire to gratify his or her physical needs and the necessity to function as a responsible member of society. • The Id (Immediate gratification, Pleasure principle) • The Superego (Conscience) • The Ego (Balance, Reality principle)

Attitudes and Behavior

Not always linked (attitude does not equal behavior) -Ex: Church attendance Behavior is combination of: • Personal/Dispositional Factors (internal) - Genetics, Personality, Attitudes (strength) • Situational Factors (external) - Sensory stimulation, Rewards/Punishments, Actions of Others (normative), Timing What attitudes are most predictive? Strong (+), Specific (+), Normative (+)

Components of Social Class

Occupational Prestige: - Is stable over time and similar across cultures ** Single best indicator of social class Income: - Wealth not distributed evenly across classes (top fifth controls 75% of all assets) - How money is spent is a better indicator of social class, not income Other Indicators of Social Class: - Inherited Status (status that derives from parents) - Earned Status (status acquired later in life through achievements)

Credibility: Argument Construction

One-Sided vs. Two-Sided Argument: - Two-sided may enhance credibility by reducing reporting bias - Two-sided: Most effective when the audience is well educated Comparative Ads: - Best for new or little known product - Credible source is important - Best with non-brand loyals - Tend to attract attention and increase involvement - Print ads work best where comparisons can be more thorough

Liking: Who do we like?

Our friends - Tupperware parties - "John suggested I call you" Those who like us - Or who seem to even when we know they're flattering us Attractive people: - Halo effect People who are like us - Similar names (Garner, 1999) - "You're from Kentucky? I'm from Kentucky!"

Lifestyle

Patterns of consumption reflecting a person's choices of how one spends time and money - Who are we, what do we like to do? ** Activities (What do you do in your spare time?) ** Interests (What do you find interesting and important?) ** Opinions (What is your attitude toward...social issues, environment, politics, etc?) (AIOs)

Marketing Research and Children

Product Testing: - Involves watching kids play with toys or involving them in focus groups Message Comprehension: - Children differ in their ability to process product-related information - Ethical issues must be considered when directing advertising appeals at children

Reference Group Influences

Reference group effects are more robust for purchases that are: - Luxuries rather than necessities - Socially conspicuous/visible to others

Gender: How does it affect consumer behavior?

Roles have changed (Traditional vs. Modern) Marketing Implications: - Targeted traditional sex roles: toolkit, perfume, tie, motorcycle, hand lotion, facial tissue - Becoming less sex-typed: BMW, cologne Differences in acquisition and consumption behaviors

Sources and Functions of Consumption Symbols

Same product can serve multiple functions: Expensive heirloom as wedding present - Expressiveness function: setting couple apart from others - Emblematic function: social status - Role acquisition function: helping newlyweds internalize new marital roles - Connectedness function: relation to family history

Scarcity

Scarce items tend to be perceived as more valuable. Why? Valuable objects are rare... so rare objects are valuable? Reactance: When free choice is limited, the need to retain our freedom makes us value those limited things all the more.

"You are what you consume"

Social identity as individual consumption behaviors (e.g., "Who am I now?"...to some extent, your possessions!) Importance of self-product congruence Inference of personality based on consumption patterns Symbolic functions of products and consumption rituals help to define and maintain our self-concept. Loss of possessions = loss of identity?

Conformity & Compliance

Tendency to yield to influence Compliance: doing what others want Conformity: Adjusting one's behavior or thinking to coincide (be the same) with a group standard Why conform/comply? - Desire for rewards - More likely to conform in public than in private - Want to be liked/be like another - Assume others have more info than you

Compliance and Conformity

Tendency to yield to influence Why conform/comply? - Desire for rewards (More likely to conform in public than in private) - Want to be liked/be like another - Assume others have more info than you A lot of it is based on "power"... 1. Expert Power: Derived from possessing specific knowledge about a content area 2. Coercive Power: Influencing a person by social or physical intimidation 3. Reward Power: When a person or group has the means to provide positive reinforcement 4. Legitimate Power: Granted to people by virtue of social agreements, sometimes conferred by a uniform

Social Proof (Validation)

The perceived validity or value of an idea or product increases as the number of people supporting the idea increases. Examples: - Lines outside of clubs - Poll results

Social Loafing

The phenomenon of a person exerting less effort to achieve a goal when they work in a group than when they work alone.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone. People tend to perform better on simple or well-rehearsed tasks and worse on complex or new ones.

Connectedness Function

The use of products as symbols of our personal connections to significant people, events, or experiences. Examples: - You may particularly like something because of who you received it from - Ticket stubs/souvenirs/ concert programs - Foods/holidays shared by families and friends

Expressiveness Function

The use of products as symbols to demonstrate our uniqueness - how we stand out as different from others. Example: - use of clothing, home decoration, art, music, food consumption, body piercing, tattooing Marketers can emphasize nostalgia, need to be unique, etc.

Role Acquisition Function

The use of products as symbols to help us feel more comfortable in a new role. Consumers fill many roles in their lives; these roles constantly change (e.g., student, worker, husband/wife, parent, etc.)

Who's Living at Home?

Traditional extended family is alive and well "Sandwich generation" - Many adults are caring for parents as well as children Boomerang Kids - Living with parents longer or are moving back in - Spend less on housing/staples and more on entertainment

The Gray Market

Traditionally neglected by marketers—Most advertising campaigns don't recognize gray market (less competition) People are now living longer/healthier lives - "Zoomers" = active, interested in life, enthusiastic consumers with buying power - Fastest growing group of Internet users Account for over half of all discretionary spending in the U.S. Finished with many financial obligations - Most own their own homes - Child-rearing costs are over - "We're Spending Our Children's Inheritance" Economic health of gray market is good and getting better - Most older people lead more active, multidimensional lives than we assume - Exercise facilities, cruises/tourism, cosmetic surgery/skin treatments, "how-to" books/classes **Most brand-loyal of any age group

Marketing Research and Teens

Transition Childhood → Adulthood: Develop distinct identity and self-image. More globally alike than any other cohort - "MTV" cohort - More well-traveled than their parents - Technology savvy Teens are more "savvy": Sensitive to authenticity. Can be characterized by conflicting goals: - Autonomy vs. Belonging - Rebellion vs. Conformity - Idealism vs. Pragmatism - Narcissism vs. Intimacy

TORA

Used to change attitudes and behavioral intentions. 4 Ways to Change Attitude: 1. Change Belief: • Strengthen beliefs of positive consequences • Lessen the belief that there are negative consequences 2. Change Evaluation/Importance: • Ex: Firestone, UV in Makeup 3. Add a New Belief • Filtered water 4. Target Normative Beliefs • Smoking

Family Life Cycle Models

Useful models take into account the following variables in describing longitudinal changes in priorities and demand for product categories: - Age - Marital status - Presence/absence of children in home - Ages of children Such factors allow use to identify categories of family-situation types (e.g., "Full Nest" vs. "Delayed Full Nest")

The Milgram Study

Was interested in studying whether or not most people would continue to obey an authority figure, even at the expense of another person. - Was influenced by Nazi treatment of Jews during WWII. Procedure: - Told participants he was conducting a study on the effects of punishment on memory. - Every time the "learner" got the question wrong the subject had to give them an electrical shock. - With each mistake made the shock got worse Results: - Found that 35 of the 40 participants continued to shock even after the learner was screaming in pain at 300 volts - 2/3 (majority) of the subject continued to shock all the way to the very end!

Symbolic Interactionism

We assign meaning to any situation or object by interpreting symbols in this environment. Questions to ask: - "Who am I in THIS situation?" - "Who is it that OTHERS think I am?" ("This is the way I will be")

Reciprocity

We try to repay, in kind, what has been given to us. The success of the Hare Krishna Society (e.g., gifts from other charities) Compliance with surveys (James & Bolstein, 1992) Free samplesConsumer Response and debt aversion

Source Factors of Persuasion: Credibility

What makes a source credible? 1. Expertise (Match-up Hypothesis) 2. Trustworthiness and Objectivity

Source Factors of Persuasion: Attractiveness

What makes for an attractive source? - Social value Physical Attractiveness: Beauty - What does a physically attractive source do for the product? - Halo Effect - Attractiveness affects purchase intentions, especially for attractiveness-related goods **Sources can be attractive because they're similar to us. Celebrities are often attractive for many reasons. - Not all famous people are liked, though - Q scores (How many people know the celebrity How many people consider him/her a "favorite?")

Personality Traits

• Internal characteristics of individuals • Individuals differ on these characteristics in a consistent way • Can be measured • Formed at an early age, relatively unchanging Traits most relevant to consumer behavior: - Need for uniqueness - Need for cognition - Susceptibility to influence - Self-monitoring - Frugality - Value consciousness - Maximizers vs. Satisfiers -Visualizers vs. Verbalizers

Limitation of Personality Approaches

• Personality measures aren't always good at predicting particular behaviors. - Level of specificity - Some situational influences are very powerful • May be best thought of as a moderator: Personality traits and situations interact to influence behavior.