Consumer behavior
Week 1
Consumer behavior = the totality of consumers’ decisions with respect to the acquisition, consumption, and
disposition of goods, services, activities, experiences, people, and ideas by (human) decision-making units [over
time]
decision people make in their role as consumers
CB for marketing Developing and Implementing Customer Oriented Strategies
Segmentation
- Demographic
- Psychographic
- Geographic
- Behavioral
Targeting
Your ideal target group is one that is actively growing, has high profitability, and has a low cost of
acquisition:
1. Size: Consider how large your segment is as well as its future growth potential.
2. Profitability: Consider which of your segments are willing to spend the most money on your product
or service. Determine the lifetime value of customers in each segment and compare.
3. Reachability: Consider how easy or difficult it will be for you to reach each segment with your
marketing efforts. Consider customer acquisition costs (CACs) for each segment. Higher CAC means
lower profitability.
Positioning
Consumer culture = the commonly held social beliefs that define what is socially gratifying within a specific
society
culture has important functions that shape the value of consumer activities
- Meaning of objects
- Meaning of activities
- Facilitating communication
1
,Cultural norms = rules that specify the appropriate behavior in a situation within a specific culture
cultural sanction = penalty associated with performing non gratifying culturally inconsistent behavior
Culture influences consumption:
- Ecology = physical characteristics
that describe the physical environment and habitat of the particular place
- Culture = custom and accepted way of structuring society
Culture is learned
Social interaction modeling reinforcement
Enculturation = way people learn their native culture
Acculturation = process by which consumers come to learn a culture other than their natural native culture
Each culture has certain role expectations for its members (sex roles)
- Role conflict = situation where a consumer experiences conflicting expectations based on cultural
expectations
- Divergence = situation in which consumers choose membership in microcultures in order to stand out
or define themselves
Values = abstract, enduring beliefs about what is right, wrong, important or good/bad
value system = our total value and relative importance
Core societal values:
Lifestyle = distinctive modes of living, including how people spend their time and money
psychographics = quantitative investigation of consumer lifestyle
2
,Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition, consumption,
and disposition of goods, services, activities, experiences, people and ideas by human decision-making units
the decisions people make in their roles as consumers
VALS technique = forms group descriptions of consumers. classification
Geodemographic technique = provides data on consumer expenditures and socioeconomic variables with
geographic info in order to identify commonalities in consumption patterns of households in various regions.
Or of course, demographics = age, ethnicity, income
Self-congruency theory = behavior can be explained by congruency between a consumer’s self-concept and the
image of a typical user of the product
marketers can use this by segmenting markets into groups who perceive high-self-concept congruence with
the product-user image
dark side of this theory. Example is Victoria’s Secret
Argo & Dahl 2018: standards of beauty: the impact of mannequins in the retail context
Interception of self-esteem with standard of beauty.
The appearance of female mannequins has mirrored society’s current notion of feminine perfection
Consumers are inundated with visuals of what society deems as beautiful through media and entertainment,
and the fashion industry
communication channels define, evolve and bring to life the standards of beauty
Mannequins serve as normative signals of beauty, that make salient a standard consumers compare
themselves to this standard
Mannequins represent and communicate society’s current views on what constitutes the perfect physical
appearance
Appearance self-esteem = self-worth one derives from his/her body weight and image
Results:
3
, - Participants lower in self-esteem evaluate bikini less favorably (on ‘perfect’ body)
- Participants low in self-esteem evaluate product less favorably when shown on mannequin than not
on mannequin
- Participants high in self-esteem evaluate product no different
- Participants low in self-esteem evaluate appearance-related product less favorably when shown on
mannequin, than a non-appearance-related product
- Participants high in self-esteem evaluate different products no different
- Participants low in self-esteem evaluate product more favorably when they got a self-affirmation
- Participants high in self-esteem evaluate product less favorably when getting a self-affirmation
- Participants low in self-esteem evaluate product more favorably the mannequin showed imperfection
- Participants high in self-esteem evaluate product less favorably the mannequin showed imperfection
Culture is universal
individuals belong to many cultural groups at once. These groups may fluctuate/change
culture is hierarchical, smaller cultural groups link to larger cultural group
Microculture = group of people who share similar values and tastes that are subsumed within a larger culture
Sex roles = societal expectations for men and women among members of a cultural group
marketing communications were always carefully segmented towards males/females and their cognitive
structuring
marketing is becoming less binary, more inclusive
Aged-based microculture
- People of same age tend to share similar values/preferences
- Especially true for teens
generation microculture (generation X, Gen Z, baby boomers, millennials)
Cohort = group of people who live the same major experiences, which end up shaping their core values
Religious microculture
religion affects consumer culture since beliefs affect all manner in daily life
(weekend days, budget, material, food and beverage, clothing choices)
Crockett & Wallendorf 2004: the role of normative political ideology in consumer behavior
Qualitative paper
Ideology = system of beliefs/values created and promulgated by a given society’s most dominant group
Political ideology = worldview readily found in population, including sets of ideas and values that cohere, that
are used publicly to justify political stances, and that shape and are shaped by society
Article focuses on differences between black and white.
- black African American liberals = close to American liberalism. Hopes for full integration in society
- black African American nationalist = different views/separation. Race is important
Shop inside or outside the ghetto?
4
Week 1
Consumer behavior = the totality of consumers’ decisions with respect to the acquisition, consumption, and
disposition of goods, services, activities, experiences, people, and ideas by (human) decision-making units [over
time]
decision people make in their role as consumers
CB for marketing Developing and Implementing Customer Oriented Strategies
Segmentation
- Demographic
- Psychographic
- Geographic
- Behavioral
Targeting
Your ideal target group is one that is actively growing, has high profitability, and has a low cost of
acquisition:
1. Size: Consider how large your segment is as well as its future growth potential.
2. Profitability: Consider which of your segments are willing to spend the most money on your product
or service. Determine the lifetime value of customers in each segment and compare.
3. Reachability: Consider how easy or difficult it will be for you to reach each segment with your
marketing efforts. Consider customer acquisition costs (CACs) for each segment. Higher CAC means
lower profitability.
Positioning
Consumer culture = the commonly held social beliefs that define what is socially gratifying within a specific
society
culture has important functions that shape the value of consumer activities
- Meaning of objects
- Meaning of activities
- Facilitating communication
1
,Cultural norms = rules that specify the appropriate behavior in a situation within a specific culture
cultural sanction = penalty associated with performing non gratifying culturally inconsistent behavior
Culture influences consumption:
- Ecology = physical characteristics
that describe the physical environment and habitat of the particular place
- Culture = custom and accepted way of structuring society
Culture is learned
Social interaction modeling reinforcement
Enculturation = way people learn their native culture
Acculturation = process by which consumers come to learn a culture other than their natural native culture
Each culture has certain role expectations for its members (sex roles)
- Role conflict = situation where a consumer experiences conflicting expectations based on cultural
expectations
- Divergence = situation in which consumers choose membership in microcultures in order to stand out
or define themselves
Values = abstract, enduring beliefs about what is right, wrong, important or good/bad
value system = our total value and relative importance
Core societal values:
Lifestyle = distinctive modes of living, including how people spend their time and money
psychographics = quantitative investigation of consumer lifestyle
2
,Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition, consumption,
and disposition of goods, services, activities, experiences, people and ideas by human decision-making units
the decisions people make in their roles as consumers
VALS technique = forms group descriptions of consumers. classification
Geodemographic technique = provides data on consumer expenditures and socioeconomic variables with
geographic info in order to identify commonalities in consumption patterns of households in various regions.
Or of course, demographics = age, ethnicity, income
Self-congruency theory = behavior can be explained by congruency between a consumer’s self-concept and the
image of a typical user of the product
marketers can use this by segmenting markets into groups who perceive high-self-concept congruence with
the product-user image
dark side of this theory. Example is Victoria’s Secret
Argo & Dahl 2018: standards of beauty: the impact of mannequins in the retail context
Interception of self-esteem with standard of beauty.
The appearance of female mannequins has mirrored society’s current notion of feminine perfection
Consumers are inundated with visuals of what society deems as beautiful through media and entertainment,
and the fashion industry
communication channels define, evolve and bring to life the standards of beauty
Mannequins serve as normative signals of beauty, that make salient a standard consumers compare
themselves to this standard
Mannequins represent and communicate society’s current views on what constitutes the perfect physical
appearance
Appearance self-esteem = self-worth one derives from his/her body weight and image
Results:
3
, - Participants lower in self-esteem evaluate bikini less favorably (on ‘perfect’ body)
- Participants low in self-esteem evaluate product less favorably when shown on mannequin than not
on mannequin
- Participants high in self-esteem evaluate product no different
- Participants low in self-esteem evaluate appearance-related product less favorably when shown on
mannequin, than a non-appearance-related product
- Participants high in self-esteem evaluate different products no different
- Participants low in self-esteem evaluate product more favorably when they got a self-affirmation
- Participants high in self-esteem evaluate product less favorably when getting a self-affirmation
- Participants low in self-esteem evaluate product more favorably the mannequin showed imperfection
- Participants high in self-esteem evaluate product less favorably the mannequin showed imperfection
Culture is universal
individuals belong to many cultural groups at once. These groups may fluctuate/change
culture is hierarchical, smaller cultural groups link to larger cultural group
Microculture = group of people who share similar values and tastes that are subsumed within a larger culture
Sex roles = societal expectations for men and women among members of a cultural group
marketing communications were always carefully segmented towards males/females and their cognitive
structuring
marketing is becoming less binary, more inclusive
Aged-based microculture
- People of same age tend to share similar values/preferences
- Especially true for teens
generation microculture (generation X, Gen Z, baby boomers, millennials)
Cohort = group of people who live the same major experiences, which end up shaping their core values
Religious microculture
religion affects consumer culture since beliefs affect all manner in daily life
(weekend days, budget, material, food and beverage, clothing choices)
Crockett & Wallendorf 2004: the role of normative political ideology in consumer behavior
Qualitative paper
Ideology = system of beliefs/values created and promulgated by a given society’s most dominant group
Political ideology = worldview readily found in population, including sets of ideas and values that cohere, that
are used publicly to justify political stances, and that shape and are shaped by society
Article focuses on differences between black and white.
- black African American liberals = close to American liberalism. Hopes for full integration in society
- black African American nationalist = different views/separation. Race is important
Shop inside or outside the ghetto?
4
