Consumer Behaviour - Edinburgh Business School
ConsumerBehaviourJane PriestStephen CarterDavid A. StattCB-A4-engb 1/2013 (1009)
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Consumer BehaviourJane Priest is a Teaching Fellow at Edinburgh Business School and teaches parts of the on-campusMarketing course, as well as the Consumer Behaviour elective by distance learning. She is a key memberof a team exploring how technology can be used to enhance the student learning experience.Before joining Edinburgh Business School, she was a marketing and communications manager for anational health care charity and responsible for the communications strategies of various nationalgovernment funding programmes.In her undergraduate course at Strathclyde University Business School, she won both the Professor MichaelBaker Prize for the single honours student with the highest final weighted average mark, and the ScottishMarketing Awards Prize for the single honours dissertation with the greatest practical application.Professor Stephen Carter is Professor of Marketing at Edinburgh Business School and an acknowledged thought leader in global marketing and social and emotional competencies.An ex-project director at the United Nations, he has authored several books on subjects includinginternational marketing strategy and global agricultural marketing. He has co-authored books such as amarketing guide for voluntary and non-profit organisations as well as written programmes for nationaltelevision and radio.He is co-editor of the American Journal of International Economics and Business Research. His currentresearch interests include: transnational comparisons of social and emotional competences in students,and marketing processes and systems in developing and emerging countries.David A. Statt. The authors are indebted to the late David Statt, formerly Academic Director of theEdinburgh Business School, the author of the original material developed for this course.
First Published in Great Britain in 2001.Original edition David A. Statt 2001, 2003Revised edition David A. Statt, Jane Priest, Stephen Carter 2013The rights of Jane Priest, Stephen Carter and David A. Statt to be identified as Authors of this Work hasbeen asserted in accordance with the Copyright, Designs and Patents Act 1988.All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, ortransmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwisewithout the prior written permission of the Publishers. This book may not be lent, resold, hired out orotherwise disposed of by way of trade in any form of binding or cover other than that in which it ispublished, without the prior consent of the Publishers.
ContentsPrefacexiiPART 1THE CONSUMER IN CONTEXTModule 1People as Consumers1.1Introduction1.2Buyers, Customers and Consumers1.3Consumer Behaviour1.4The Consumer Environment1.5The Consumer and the Marketplace1.6Markets and MarketingLearning SummaryReview QuestionsFurther ReadingModule 2Consumer Society2.1Introduction: Consumer Society in the Twenty-first Century2.2Globalisation and Consumer Behaviour2.3Alternative Markets2.4Marketing and Social ResponsibilityLearning SummaryReview QuestionsFurther ReadingModule 3Market Segmentation3.1Introduction: The Origin of Segmented Markets3.2Why Use Market Segmentation and Target Marketing?3.3Geographic Segmentation3.4Demographic Segmentation3.5Psychographic Segmentation3.6Behavioural Segmentation3.7Segmenting Business Markets3.8PositioningLearning SummaryReview QuestionsFurther ReadingConsumer Behaviour Edinburgh Business /183/183/20v
ContentsModule 4New Products and Innovations4/14.1Introduction4.2Developing New Products4.3The Product Life Cycle4.4The Effects of Personal Influence4.5The Diffusion of New Products and Innovations4.6The Adoption of New Products and Innovations4.7Cultural and Social Implications for InnovationsLearning SummaryReview QuestionsFurther ReadingPART 2THE INDIVIDUAL PERSPECTIVEModule 5Perception5/15.1Introduction: Can We Trust Our Senses?5.2Using Our Senses5.3Common Properties of the Senses5.4Perception: Processing Sensory Information5.5Organising Perceptual Cues5.6Subliminal Perception5.7Self-images, Symbolism and Consumer Behaviour5.8Perceiving RiskLearning SummaryReview QuestionsFurther ReadingModule 6Personality and the Introduction: How Does Our Personality Affect What We Buy?6.2What Is Meant by Personality?6.3Formal Theories of Personality6.4Freudian Psychoanalysis6.5Neo-Freudian Psychoanalysis6.6Trait Theory6.7Self TheoryLearning SummaryReview QuestionsFurther 26/36/46/86/96/116/196/206/21Edinburgh Business School Consumer Behaviour
ContentsModule 7Learning, Memory and Thinking7.1Introduction: How Do We Learn?7.2What Is Learning?7.3The Behaviourist Approach7.4The Cognitive Approach7.5ModellingLearning SummaryReview QuestionsFurther ReadingModule 8Motivation8.1Why Do People Buy What They Buy?8.2What Is Meant by Motivation?8.3Defining Motivation8.4The Fulfilment of Needs8.5The Motivational Mix8.6Unconscious MotivationLearning SummaryReview QuestionsFurther ReadingPART 3THE SOCIAL PERSPECTIVEModule 9Family Influences9.1Introduction: How Does Our Upbringing Affect Us as Consumers?9.2What Is a Family?9.3Socialisation9.4Family Buying Decisions9.5Life-cycle Effects9.6Non-family Households9.7Age and Consumer IdentityLearning SummaryReview QuestionsFurther ReadingConsumer Behaviour Edinburgh Business /199/209/22vii
ContentsModule 10Social and Developmental Influences10/110.1Introduction: How Does Our Psychological DevelopmentAffect Our Consumer Behaviour?10.2 Maturation10.3 Stages of Development10.4 Development of Economic Concepts10.5 External Influences on Consumer SocialisationLearning SummaryReview QuestionsFurther ReadingModule 11The Influence of Small Groups11/111.1 What Are the Effects of Group Pressure on the Individual Consumer?11.2 Types of Group11.3 Properties of Group Life11.4 Reference Groups and Consumer BehaviourLearning SummaryReview QuestionsFurther ReadingModule 12The Influence of Social Classviii11/111/211/711/1611/1811/1911/2012/112.1 How Does Our Social Class Affect What We Buy?12.2 Social Stratification12.3 Social Status and Symbols12.4 Life Chances and Lifestyles12.5 Measuring Social Class12.6 Social Class Categories12.7 Changing Social Class12.8 Marketing and Consumer BehaviourLearning SummaryReview QuestionsFurther ReadingModule 2/512/712/912/1312/1412/1512/1612/17Cultural Influences13/113.113.213.313.413/113/313/413/5How Does Our Culture Affect What We Buy?Similarities across CulturesDifferences between CulturesCultural ValuesEdinburgh Business School Consumer Behaviour
Contents13.5 Subcultures13.6 Changes in CultureLearning SummaryReview QuestionsFurther ReadingModule 14Attitudes14.1 Where Do Our Attitudes Come From and How Do They Change?14.2 What Are Attitudes?14.3 Characteristics and Components of Attitudes14.4 Forming Attitudes14.5 Theories of Attitudes14.6 Changing Attitudes14.7 Attitudes and BehaviourLearning SummaryReview QuestionsFurther ReadingPART 4CONSUMER DECISION MAKINGModule 15Communication and Persuasion15.1 How does Advertising Affect Our Behaviour?15.2 The Importance of Advertising15.3 The Process of Communication15.4 Feedback and Evaluation15.5 Cultural Factors in AdvertisingLearning SummaryReview QuestionsFurther ReadingModule 16Approaching a Decision16.1 How People Make Decisions16.2 Heuristics16.3 The Consumer Decision Process16.4 Marketing ImplicationsLearning SummaryReview QuestionsFurther ReadingConsumer Behaviour Edinburgh Business 2016/21ix
ContentsModule 17The Decision and Its Consequences17/117.1 Introduction17.2 Stage IV: Purchasing Processes17.3 Stage V: Post-purchase ProcessesLearning SummaryReview QuestionsFurther Reading17/117/117/817/1217/1317/14PART 5ADDITIONAL DIMENSIONS IN CONSUMER BEHAVIOURModule 18Models of Consumer Behaviour18/118.1 Approaches to the Study of Consumer Behaviour18.2 Economic Viewpoints of Consumer Behaviour18.3 Contemporary Models in Consumer Behaviour18.4 Why Consumer Behaviour Models?Learning SummaryReview QuestionsFurther ReadingModule 19Appendix 1The Future Consumer19/119/219/619/719/1119/1119/12Practice Final ExaminationsA1/1Answers to Review QuestionsModule 1Module 2Module 3Module 4Module 5Module 6x19/119.1 The Changing Consumer Experience19.2 The Producer19.3 The Marketplace19.4 The ConsumerLearning SummaryReview QuestionsFurther ReadingPractice Final Examination 1Practice Final Examination 2Appendix /52/72/9Edinburgh Business School Consumer Behaviour
ContentsModule 7Module 8Module 9Module 10Module 11Module 12Module 13Module 14Module 15Module 16Module 17Module 18Module 2/26IndexI/1Consumer Behaviour Edinburgh Business Schoolxi
PrefaceUnderstanding consumer behaviour is crucial for effective marketing, helpingmanagers identify appropriate people to target and design and communicateattractive offerings. Every element of the marketing plan benefits from an understanding of the customer, and with the rapid pace of change in consumer marketstoday this is only going to become more important.This course starts by placing the consumer in context. What is a consumer andwhat does it mean to exist in a globalised consumer society? The course then adoptstwo complementary perspectives, individual and social, to study consumer behaviour. The first view is that of the individual consumer facing out into the world,exploring core psychological processes such as perception, personality, learning andmotivation. The second is consumer behaviour from the viewpoint of society facingin towards the individual, exploring influences of family, groups, culture and theformation of attitudes.This course moves on to consider how the consumer makes a decision and theforms of communication and persuasion that surround this. It concludes withdiscussions on how marketing practice is changing in response to trends in consumer behaviour.A wide range of ideas and research findings from psychological and marketingliterature were drawn upon to produce this course. With examples of marketing inpractice, it captures the complementary experience of the individual consumer andthe individual marketer.Consumer Behaviour Edinburgh Business Schoolxii
PART 1The Consumer in ContextModule 1 People as ConsumersModule 2 Consumer SocietyModule 3 Market SegmentationModule 4 New Products and InnovationsConsumer Behaviour Edinburgh Business School
Part 1In Part One of the text we place the consumer within his or her recognised socialcontext, that is in relation to the producer and to the marketplace in which buyingand selling takes place.In doing so we follow Peter Drucker’s view that a business has only two importantfunctions: marketing and innovation. We deal with the way producers market theirproducts to consumers in Module 3, and the way they develop and market newproducts and innovations in Module 4. But before that we set the scene for thepsychological approach to understanding the consumer in Module 1, where wediscuss the importance that being a consumer has to our lives. Module 2 expandson this by putting the study of consumer behaviour into a specifically global context,illustrating its far-reaching implications for both business and society.Edinburgh Business School Consumer Behaviour
Module 1People as ConsumersContents1.1Introduction.1/11.2Buyers, Customers and Consumers .1/41.3Consumer Behaviour .1/41.4The Consumer Environment.1/51.5The Consumer and the Marketplace .1/61.6Markets and Marketing .1/6Learning Summary . 1/10Review Questions . 1/10Further Reading . 1/11Learning ObjectivesWhat you should learn from this module: 1.1To place consumption in the context of human behaviourThe positivist and interpretivist approaches to its studyThe concept of real costThe production orientation and the marketing conceptIntroductionWhatever else we may be in our lives – child, parent, student, worker, lover, joggeror stamp collector – we are all consumers, all of our days. We buy and use goodsand services constantly: to eat, to wear, to read, to watch, to play, to travel in; tokeep us healthy, to make us wealthy and, if not wise, at least better educated. The actof consumption is therefore an integral and intimate part of our daily existence andthat is true whether we have a lot of money to spend on it or very little.The prevalence of consumption is such that we are often unaware of its importance in shaping our lives; exploring the implications this has for us will be oneof the important themes of this text. In every large country in the world billions ofpurchases of goods and services are made every year. In this module we will raisethe basic questions about how and why people behave as consumers, as well as waysin which this behaviour might be studied. We also introduce how marketing as adiscipline came about, and why understanding consumer behaviour is at the heart ofeffective marketing.Consumer Behaviour Edinburgh Business School1/1
Module 1 / People as ConsumersIn brief, a central goal of marketing is to satisfy customer needs, so marketers musthave a good understanding of what their customers’ needs are if they are to satisfythem better than the competition. A thorough understanding of why and how peoplebuy things helps marketers identify appropriate people to target and design andcommunicate attractive offerings. In other words, every element of the marketing planbenefits from an understanding of the customer and, with the rapid pace of change inconsumer markets today, this is only going to become more important.It is also worth making a distinction at this stage between consumer buying behaviourand organisational buying behaviour, as some important differences exist between thetwo. For instance, people within governments and businesses who are responsiblefor buying goods and services tend to work closely with colleagues to make collective decisions. Often formal procedures are in place, there is a heavier reliance onspecifications, and purchases tend to be larger in nature. In addition, the demand fororganisational goods essentially derives from the demand for consumer goods, andthis can make forecasting quite difficult. While these sorts of differences areimportant to bear in mind, this text focuses on consumer behaviour, in other wordsthe purchasing processes of individual consumers.1.1.1Studying People as ConsumersResearch on people as consumers dates only from the mid-1980s. The main impetusfor this research was practical: marketing managers wanted to know how the socialand behavioural sciences could help them find the specific causes of consumer actionsand, in particular, consumer buying decisions. Why did people choose Brand X asopposed to Brand Y or Z? Most importantly, how would the consumer react to a newand improved Brand X? This focus on predicting what the consumer would do undercertain specified conditions was known as a positivist approach to research.1The positivist approach is the traditional form in which scientific research hasbeen conducted. It makes several assumptions about what is being studied, the mostimportant of which are: All behaviour has objectively identifiable causes and effects, which can beisolated, studied and measured. When faced with a problem or a decision, people process all the relevantinformation available to deal with it. After processing this information, people make a rational decision about the bestchoice to take or decision to make.As all the other social and behavioural sciences have found, one of the limitationsof this practical approach is that it leaves a large amount of human behaviour totallyunaccounted for.Precisely because consumption is such a universal and frequent activity, there is atemptation to see virtually all human activity in consumer terms and to view allconsumer activity with a positivist lens. Thus the relationship between a doctor anda patient may be discussed in terms of the provision (by the doctor) and theconsumption (by the patient) of health care, even where the health care may be free1/2Edinburgh Business School Consumer Behaviour
Module 1 / People as Consumersat the point of delivery and there is no direct buying and selling, as in the BritishNational Health Service. Similarly, the relationship between teacher and student maybe characterised as the provision and consumption of education.This is known as a reductionist view of the doctor–patient and teacher–studentrelationships, because it reduces the content of these relationships to the buying andselling of services, just like plumbing or piano tuning. What is missing from thisview is the psychological content of the relationships that are involved. It does notexplain, for example, why so many doctors and teachers do so much more than theyare paid to do. It does not tell us how a doctor’s care and concern, and a patient’sappreciation of it, may do more healing than the imperso
Consumer Behaviour Jane Priest is a Teaching Fellow at Edinburgh Business School and teaches parts of the on-campus Marketing course, as well as the Consumer Behaviour elective by distance learning. She
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