Consumer behavior and marketing strategy 12e hawkins motherbaugh chapter 06

PART ONE Introduction Chapter One Consumer Behavior and Marketing Strategy PART TWO External Influences Chapter Two Cross-Cultural Variations in Consumer Behavior Chapter Three The Changing American Society: Values Chapter Four The Changing American Society: Demographics and Social Stratification Chapter Five The Changing American Society: Subcultures Chapter Six The American Society: Families and Households Chapter Seven Group Influences on Consumer Behavior PART TWO Cases Cases 2–1 through 2–9 PART THREE Internal Influences Chapter Eight Perception Chapter Nine Learning, Memory, and Product Positioning Chapter Ten Motivation, Personality, and Emotion Chapter Eleven Attitudes and Influencing Attitudes Chapter Twelve Self-Concept and Lifestyle PART THREE Cases Cases 3–1 through 3–9 PART FOUR Consumer Decision Process Chapter Thirteen Situational Influences Chapter Fourteen Consumer Decision Process and Problem Recognition Chapter Fifteen Information Search Chapter Sixteen Alternative Evaluation and Selection Chapter Seventeen Outlet Selection and Purchase Chapter Eighteen Postpurchase Processes, Customer Satisfaction, and Customer Commitment PART FOUR Cases Cases 4–1 through 4–7 PART FIVE Organizations as Consumers Chapter Nineteen Organizational Buyer Behavior PART FIVE Cases Cases 5–1 and 5–2 PART SIX Consumer Behavior and Marketing Regulation Chapter Twenty Marketing Regulation and Consumer Behavior PART SIX Cases Cases 6–1 and 6–2 Appendix A Consumer Research Methods Appendix B Consumer Behavior Audit

PART II: EXTERNAL INFLUENCES

Understand the family decision process

Describe the role that households play in child socialization

Explain the sources of ethical concern associated with marketing to children

Learning Objectives

Can Kid’s Movies be Big Business?

 Which movie do you think was the highest

Can Kid’s Movies be Big Business?

 Which movie do you think was the highest

grossing film of 2011?

 Rango – if you said Rango you were correct!

 Animated films dominated in 2011.

 As one source says, “When you have a movie…that

entertains both parents a kids alike, positive mouth will spread…”

word-of- Relates to children’s roles as decision influencers

Consumer Behavior In The News…

The Household Influences Most Consumption Decisions

The Nature of American Households

Types of Households 1

Household

 Consists of all the people who occupy a housing unit (a house,

apartment, group of rooms, or single room designed to be

occupied as a separate living quarters).

Family Household

 One having at least two members related by birth, marriage, or

adoption, one of whom is the householder (householder owns or

rents the residence).

Nonfamily Household

 A householder living alone or exclusively with others to whom he

or she is not related.

The Nature of American Households

The Nature of American Households

The traditional family refers to a

married opposite-sex couple and

their own or adopted children

living at home

A step family is a

married-couple family household with at

least one child under the age of

18 who is a stepchild (i.e., a son

or daughter through marriage)

The Nature of American Households

A multigenerational family is a

family household containing

(a) At least two adult generations,

or

(b) A grandparent and at least

one other generation

Fox News Reports on the Multigenerational Family

YouTube Spotlight

The Nature of American Households

1

People married

by their early 20s

2

Couple had several children

3

Their children grew up and started their own families

4

The original couple retired

The Traditional view of Family Life Cycle

The Household Life Cycle

American households follow much more complex and

varied cycles today Therefore, researchers have

developed several models of the household lifecycle

(HLC).

Each HLC stage presents unique needs and wants as

well as financial conditions and experiences

HLC provides marketers with relatively homogeneous

household segments that share similar needs with

respect to household-related problems and purchases

The Household Life Cycle

The following Video Clip demonstrates

how Act II fits into today’s households

with its Microwave Popcorn!

Video Application

Stages of the Household Life Cycle

The Household Life Cycle

 HLC can be an important segmentation

variable

 The purchase and consumption of many

products are driven by the HLC, with each stage

posing unique problems and opportunities.

Marketing Strategy Based on the Household

Life Cycle

 Factors such as income, occupation, and

education heavily influence how an individual

meets his/her needs

 So, it makes sense to combine stage in the HLC

with one of these variables to aid in market

segmentation and strategy formulation.

Marketing Strategy Based on the Household

Life Cycle

HLC/Occupational Category Matrix

Marketing Strategy Based on the Household

Life Cycle

Family decision making is the process by which decisions

that directly or indirectly involve two or more family members

are made.

Family purchases are often compared to organizational buying

decisions However, with family purchasing, there is usually

less explicit criteria, and most family purchases directly affect

the other members of the family.

Most important, many family purchases

are inherently emotional and affect the

relationships between the family

members.

Family Decision Making

Family Purchase Roles

Determinants of Family Purchase Roles

Conflict Resolution

Marketing Strategy and Family Decision Making

Consumer Socialization and Marketing to Children

Family Decision Making

The American Home

The Household Decision-Making Process for Children’s Products

Family Decision Making

Determinants of Family Purchase Roles

How families interact in a purchase decision is largely

dependent on the

culture and subculture in which the family exists

the role specialization of different family members

the degree of involvement each has in the product area of

concern, and

the personal characteristics of the family members

Family Decision Making

Decision-Making Influence and Relative Income

Husband Earns More Wife Earns More

Family Decision Making

Conflict Resolution

One study revealed six basic approaches that individuals use to

resolve purchase conflicts 1

Approach Description

Bargaining Trying to reach a compromise.

Impression

Management Misrepresenting the facts in order to win.

Use of Authority Claiming superior expertise or role appropriateness (the

husband/wife should make such decisions).

Reasoning Using logical argument to win.

Playing on

Emotion Using the silent treatment or withdrawing from the discussion.

Additional

Information

Getting additional data or a third-party opinion.

Family Decision Making

Marketing Strategy and Family Decision Making

The family provides the basic framework in which

consumer socialization occurs

Consumer socialization is the process by which

young people acquire skills, knowledge, and attitudes

relevant to their functioning as consumers in the

marketplace

Understanding the content and the process of

consumer socialization.

Consumer socialization content refers to what children learn

with respect to consumption.

Consumer socialization process refers to how they learn it.

Consumer Socialization

Piaget’s Stages of Cognitive Development

Stage 1 The period of sensorimotor intelligence (0-2 yrs.)

- behavior is primarily motor

- the child does not yet “think” conceptually, though cognitive development is seen

Stage 2 The period of preoperational thoughts (3-7 yrs.)

- Characterized by the development of language and rapid conceptual development

Stage 3 The period of concrete operations (8-11 yrs.)

- the child develops the ability to apply logical thought to concrete problems

Stage 4 The period of formed operations (12-15 yrs.)

- the child’s cognitive structures reach their greatest level of development, and the child becomes able

to apply logic to all classes of problems.

Consumer Socialization

Consist of three categories:

1 Consumer skills—are those capabilities necessary for

purchases to occur such as understanding money,

budgeting, product evaluation, etc.

2 Consumption-related preferences—are the knowledge,

attitudes, and values that cause people to attach differential

evaluations to products, brands, and retail outlets.

3 Consumption-related attitudes—are cognitive and

affective orientations toward marketplace stimuli such as

advertisements, salespeople, warranties, etc.

The Content of Consumer Socialization

Consumer Socialization

Consumer socialization occurs primarily through family, as well

as through a number of avenues including advertising and friends Parents socialize their children through the following:

The Process of Consumer Socialization

1 Instrumental training—occurs when a parent or sibling

specifically and directly attempts to bring about certain

responses through reasoning or reinforcement.

2 Modeling—occurs when a child learns appropriate, or

inappropriate, consumption behaviors by observing others.

3 Mediation—occurs when a parent alters a child’s initial

interpretation of, or response to, a marketing or other stimulus.

Consumer Socialization

Children are a large and growing market.

However, marketing to children is fraught with ethical

concerns, including:

The limited ability of younger children to process

information and to make informed purchase decisions

Marketing activities, particularly advertising, can

produce undesirable values in children, resulting in

inappropriate diets, and cause unhealthy levels of family conflict

Marketing to Children