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Consumer Behavior: An Applied Approach

Author(s): Nessim Hanna, Richard Wozniak, Margaret Hanna

Edition: 5

Copyright: 2017

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The positive turn in our economy since the Great Recession of 2007 through 2009 has reconfigured our outlook with regard to employment, inflation, and energy prices, as well as our willingness to spend and consume ...

The recent trend toward increasing global cooperation among blocks of countries was designed to obtain high standards of living for all participants. The authors of Consumer Behavior: An Applied Approach apply this successful principle of interdependency to the field of marketing.

  • Every chapter features a cross-functional debate exercise tied to the chapter’s opening vignette. These help students apply the chapter’s principles to other business-related disciplines such as accountancy, management, finance, production, and law.
  • Each chapter contains three cross-functional points of view in the Website material. These segments expose students to related disciplines and show them the interrelationship of marketing and consumer behavior to the other functional areas of business: Finance and Economics, Politics, and Strategy and Ethics.

The new 5th edition of Consumer Behavior: An Applied Approach gets the reader involved by featuring:

  • An orderly approach to consumer influences. The book starts with the individual influences on behavior and then broadens the perspective to include relevant social/cultural forces.
  • Opening vignettes and corresponding Internet exercises to ease readers into each chapter topic.
  • “Consumer Behavior in Practice”, “Global Opportunity” and “Ethical Dilemma” vignettes are entertaining and informative applications that tie in the chapter material with thought-provoking questions.
  • A running glossary of terms is provided in the page margins to highlight key terms and help students review chapters at a glance.
  • A completely integrated online learning website that includes original chapter cases, video links, interactive self-tests, PowerPoint presentations, along with instructor’s resources such as answers to review questions, case solutions, and test bank.

Foreword

Preface

Acknowledgments

About the Authors

PART 1 Groundwork of the Text
CHAPTER 1 Introduction to Consumer Behavior

Learning Objectives
Key Terms
What Is Consumer Behavior?
Approaches to the Discipline of Consumer Behavior
What Do Buying Decisions Involve?
Consumer Behavior: The Forces Behind Human Actions
The Role of the Marketing Concept in Exchange Processes
The Influence of Macro Forces on Consumer Behavior
Emerging Trends in Contemporary Society
The Dawn of Marketing-Related Innovations
Safety, Security, and Heightened Anxiety
Global Interdependency and Connectivity
Concern Over Affordability of College Education
Ramifications of Current Trends for Consumers and Marketers
Summary
Case Synopsis: What’s in Your Burger?
Notes

CHAPTER 2 Segmentation, Targeting, and Positioning
Learning Objectives
Key Terms
Mass Marketing
Segmenting Consumer Markets
Market Segmentation
Geographic Segmentation
Demographic Segmentation
Geodemographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Market Targeting
Undifferentiated Strategy
Multisegment Strategy
Concentration Strategy
Customization Strategy
Targeting Considerations
Positioning
Irrelevant Attributes and Positioning
Repositioning
Summary
Case Synopsis: A Starbucks Lifestyle Experience
Notes

PART 2 Individual Influences on Behavior
CHAPTER 3 Consumer Perception

Learning Objectives
Key Terms
What Is Perception?
Exposure, Attention, and Sensation
Sensory Systems
Vision
Smell
Taste
Sound
Touch
Input Variation and Its Effect on Sensation
Perceptual Selectivity
Selective Exposure and Attention
Selective Interpretation
Attention Stimulation
Adaptation Levels
Stimulus and Individual Factors of Perception
Bottom-Up and Top-Down Processing
Threshold Levels
What the JND Means to Marketers
Situational Influences on Perception
Physical Surroundings
Social Surroundings
Task Definition
Time Perspective
Antecedent State
Gestalt Psychology
Perceptual Categorization
Surrogate Indicators
Prototype Matching
Perceptual Inference
Schema and Scripts
Perception and Images
Imagery and Promotion
Image Change
Brand Equity
Risk Perception
Summary
Case Synopsis: Guns Anyone?
Notes

CHAPTER 4 Consumer Learning and Memory
Learning Objectives
Key Terms
What Is Learning?
Definition of Learning
Range of Learning Situations
Learning Theories
Classical Conditioning
Operant (Instrumental) Conditioning
Applications of Conditioning Theories: Stimulus Generalization and Discrimination
Cognitive Learning
Neo-Pavlovian Conditioning
Which Learning Theories Do Marketers Employ?
Learning and Hemispheric Specialization of the Brain
Learning in a Social Context: Vicarious Learning
Learning Curves
Habit and Brand Loyalty
Memory and Retention
The Structure of Memory
Information Retrieval
Extinction and Forgetting
Message Interference and Likelihood of Recall
Summary
Case Synopsis: The Attractiveness of Lottery Tickets
Notes

CHAPTER 5 Consumer Attitudes
Learning Objectives
Key Terms
What Are Attitudes?
Valence, Intensity, and Centrality of Attitudes
Sources of Attitudes
Personal Experience with Objects
Social Interaction
Exposure to Mass Media, the Internet, and Social Media
The Functions of Attitudes
Utilitarian Function
Ego-Defensive Function
Value-Expressive Function
Knowledge Function
Do Attitudes Determine Behavior?
The Traditional Model of Attitudes
Cognitive Component
Affective Component
Behavioral or Conative Component
Attitude Components and Marketing Strategy
Fishbein’s Multiattribute Model of Attitudes
Limitations of the Fishbein Model
The Theory of Reasoned Action
Theories of Goal Pursuit and Trying
How Attitudes Are Formed
Attribution Theory
How Attitudes Are Changed
The Role of Cognitive Consistency in Attitude Change
Cognitive Dissonance Theory
The Role of Information Processing in Attitude Change
Consumer Reaction to Marketers’ Attitude-Related Strategies
Summary
Case Synopsis: Inside the War on Coal
Notes

CHAPTER 6 Motivation and Emotion
Learning Objectives
Key Terms
What Is Motivation?
Classifying Consumer Motivations
Conscious versus Unconscious
High versus Low Urgency
Positive versus Negative Polarity
Intrinsic versus Extrinsic
Rational versus Emotional
Elements of Motivation
Needs
Motives
Goals
Desires
Theories of Motivation
Instinct Theories
Drive Theories
Arousal Theories
Cognitive Theories
Motivational Conflict
Approach–Approach
Approach–Avoidance
Avoidance–Avoidance
Motivation Research
Projective Techniques
Association Tests
Other Motivation Research Techniques
Emotions
The Nature of Human Emotions
Emotion versus Mood
Marketing and Promotional Applications of Emotion
How Emotional Ads Work
Measuring Emotion
Summary
Case Synopsis: You Have Nothing to Lose but Your Weight
Notes

CHAPTER 7 Personality, Lifestyle, and Self-Concept
Learning Objectives
Key Terms
What Is Personality?
Diversity of Personality Theories
Freudian Theory of Personality
Marketing Applications of Freudian Theory
Neo-Freudian Personality Theory
Marketing Applications of Neo-Freudian Theory
Trait Theory
Measuring Traits
Marketing Applications of Trait Theory
Psychographics
The VALS™ System
Marketing Applications of VALS™
The Self-Concept
Variety of Self-Concepts
Measuring the Self-Concept
Self-Concept and Social Roles
Self-Concept and Consumption
Summary
Case Synopsis: Beauty for Billions or Billions for Beauty?
Notes

CHAPTER 8 Consumer Decision Making
Learning Objectives
Key Terms
The Decision Process
Are Consumers Rational?
Effort Variations in Consumer Decision Making
Nonprogrammed Decisions
Programmed Decisions
The Nature of the Consumer Decision Process
Problem Recognition
Search Activity
Types of Search
Internal Search
External Search
Identifying and Evaluating Alternative Solutions
Identifying Alternatives
Evaluating Alternatives
Purchase or Commitment
Choosing Among Alternatives
The Selection Process
Postpurchase Considerations
Determinants of Consumer Satisfaction
Consumer Complaint Intentions and Behavior
Measurement Standards for Customer Satisfaction
To Whom Do Consumers Complain?
What Can Be Done?
Summary
Case Synopsis: An Inquiry into the College Choice Process
Notes

PART 3 SOCIAL AND CULTURAL INFLUENCES ON BEHAVIOR 
CHAPTER 9 Diffusion of Innovation

Learning Objectives
Key Terms
Where Did It All Begin?
The Diffusion Process
The Innovation
Classifying Innovations
What Is a “New” Product?
Multiplicity of New-Product Strategies
Factors That Influence Consumer Acceptance of New Products
Relative Advantage
Compatibility
Simplicity–Complexity
Observability
Trialability and Divisibility
The Channel of Communication
The Social System
Time
Time and the Adopter Categories
The S-Shaped Diffusion Curve
The Adoption Process
Stages of the Adoption Process
Knowledge
Persuasion
Decision
Implementation
Confirmation
How Typical Are the Stages of Adoption?
Resistance to Adoption
Value Barriers
Usage Barriers
Risk Barriers
Tradition Barriers
Image Barriers
Summary
Case Synopsis: Drones: The Pros and the Cons
Notes

CHAPTER 10 Group Influence
Learning Objectives
Key Terms
The Meaning and Importance of Groups
Selected Types of Social Groups
Primary versus Secondary
Formal versus Informal
Planned versus Emergent
Online Communities and Social Networks
Consumption Subcultures
Brand Communities
Brand Tribes
Roles
Status
Social Power
Types of Social Power
Reward Power
Coercive Power
Legitimate Power
Referent Power
Expert Power
Social Power Used by Marketers
Reference Groups
Types of Reference Groups
Membership
Aspirational
Dissociative
Degrees of Reference Group Influence
Compliance
Identification
Internalization
Reference Group Influence on Consumer Behavior and Marketing Strategy
Summary
Case Synopsis: Teen Peer Pressure
Notes

CHAPTER 11 The Family and Generational Cohorts
Learning Objectives
Key Terms
The Family
Socialization
Family Consumption Roles
The Family Decision Process
Egalitarianism
Involvement
Empathy
Recognized Authority
Children’s Influence on Family Decision Making
Characteristics of Children’s Shopping
The Family Lifecycle
A Modernized Family Lifecycle
Nontraditional Living-Arrangement Patterns
Boomerang Children
Single Parenthood
The Live Alones
Generational Marketing
Classification of Consumers by Life Experiences
Boomers I Cohort
Boomers II Cohort
Generation X Cohort
Generation Y Cohort (The Millennials)
Generation Z Cohort
Marketing Applications of Generational Cohorts
Summary
Case Synopsis: The Issue of Employing Older Workers
Notes

CHAPTER 12 Personal Influence and Word of Mouth
Learning Objectives
Key Terms
Personal Influence
Who Are the Opinion Leaders?
Unleashing the Power of Personal Influence and Word of Mouth
Vividness and Impact of Word-of-Mouth Communication
Models of the Influence Process
The Hypodermic Needle Model
The Trickle-Down Model
The Trickle-Across Model
The Two-Step Model
The Multistep Model
Influencer Identification
Objectives of Influencer Identification
Identifying Influencers
Engaging Influencers
Measuring the Effectiveness of Influencers
Are There Other Sources of Personal Influence?
Shopping Pals
Market Mavens
Surrogate Consumers
Strategic Applications of Personal Influence and Word of Mouth
Creating Various Types of Influencers
Stimulating Influencers
Simulating Influencers
Combating Negative Word of Mouth
Summary
Case Synopsis: Obesity ... and the Expanded Role of Healthcare Providers
Notes

CHAPTER 13 Social Class
Learning Objectives
Key Terms
Introduction to Social Class
The Concept of Social Class
How U.S. Consumers View Social Class
Factors Obscuring the Recognition of Social Class in the United States
Egalitarianism
Size of the Middle Class
Social Mobility
Social Class versus Income
Why Learn about Social Class?
Class Structure in the United States
Multitiered Social Class Structure of the United States
The Upper Class
The Middle Class
The Working Class
The Under Class
The Evolving Social Class Structure of the United States
Implications of Evolving Social Class Trends
Measuring Social Class
Subjective Measures
Reputational Measures
Objective Measures
Issues Relevant to the Social Class Structure in the United States
The Changing Class Stature of Women
Social Class versus Income
Status Crystallization versus Incongruity
The Over- and Underprivileged
Social Mobility
The Impact of Social Class on Consumer Behavior
Summary
Case Synopsis: Walmart Chases the Affluent
Notes

CHAPTER 14 Culture and Subcultures
Learning Objectives
Key Terms
The Meaning of Culture
How Is Culture Learned?
Cultural Sensitivity versus Ethnocentrism
How to Assess Culture
Hofstede’s Cultural Dimensions
Power Distance
Uncertainty Avoidance
Individualism
Masculinity
Term Orientation
Consumer Behavior in a Cultural Setting
Communication and Language
Beliefs and Attitudes
Values and Norms
Sense of Self
Relationships
Time Consciousness
Mental Processes and Learning
Rewards and Recognition
Dress and Appearance
Food and Eating Habits
Subcultures
Ethnic Subcultures
Black (African-American) Consumers
Hispanic-American (Latino) Consumers
Asian-American Consumers
Marketing Implications of Culture and Subcultures
Summary
Case Synopsis: Enabling the Disabled
Notes

Glossary

Index

Nessim Hanna

Dr. Nessim Hanna received his Ph.D. in Marketing from the University of Illinois at Urbana. He is Professor Emeritus of Marketing, Northern Illinois University, DeKalb, and former Vice President and Chief Marketing Officer of Efficient BioSystems, Inc., located in Darien, Illinois. His areas of expertise in the fields of consumer behavior, pricing, international marketing, and cross-functional business disciplines prompted many domestic and international universities to invite him as Visiting Professor to teach and to help in establishing their curricula. Included in this group are schools such as The American Graduate School of International Management (Thunderbird, AZ); Norwegian School of Management (Oslo, Norway); Hong Kong Baptist University (Hong Kong, China); the University of Petroleum and Minerals (Saudi Arabia); and the University of Cairo (Egypt).

Dr. Hanna has published intensively in the fields of consumer behavior, marketing management, pricing, and international marketing. He has over thirty-five articles published in refereed journals, such as Journal of Marketing, Psychology and Marketing, and Journal of Academy of Marketing Science. In addition, he has published over forty refereed conference papers. He is also the author of several textbooks on pricing and principles of marketing, as well as global business operations and institutions. His Pricing Policies and Procedures textbook has been translated into the Czech, Polish, and Russian languages.

Dr. Hanna is on the editorial board of numerous domestic and international professional business journals. He has done consulting for and has conducted executive seminars on behalf of many companies and organizations, such as General Motors, Motorola, Honeywell, ServiceMaster, ARAMCO, Petromin, and Saudi Airline Top Management Group, as well as most recently for the Middle East Securities Executive Training Center. He has served as a keynote speaker for many organizations, including SAMMY, The National Association of Purchasing Managers, The American Management Association, and The American Marketing Association.

Dr. Hanna was appointed by The American Marketing Association Global Division as Coordinator of the International Activity Group (IAG) for the entire Middle East. He also established a number of faculty student exchange programs between U.S. universities and other overseas institutions, such as the Norwegian School of Management and the Hong Kong Baptist University, among others. Presently, research, writing, and consulting occupy the majority of his time.

Richard Wozniak

Mr. Richard Wozniak received his B.S. in Marketing, B.A. in Spanish, and M.S. in Marketing from Northern Illinois University. He was a faculty member in the Department of Marketing, College of Business, at Northern Illinois University, in DeKalb, from which he has now retired. He has taught undergraduate and graduate marketing and business related courses for the past thirty-five years. In addition to his teaching, Mr. Wozniak has extensive business experience in the fields of retailing and wholesaling, working with companies such as Masterpiece Studios, Marshall Fields (now Macy’s), A. Marcus, and Rockford Tool.

Mr. Wozniak also does consulting for various not-for-profit organizations, including the Roman Catholic Archdiocese of Chicago. Mr. Wozniak has presented a number of papers on the topics of teaching statistics and research methods at regional conferences and has coauthored journal articles on retail pricing. 

Margaret Hanna

Supporting author Ms. Margaret Hanna, APN, WHNP-BC, CCHP, is presently a healthcare provider at San Quentin Correctional Facility in San Quentin, California, a position she has held since 2006 after leaving her previous post as President of DermaCare Clinic, Inc., in westsuburban Chicago.

In addition to her demanding career, she has authored and published many articles on various business issues related to the field of healthcare marketing. She has also presented papers on healthcare issues at business and medical conferences, both domestically and abroad. Ms. Hanna has conducted seminars for healthcare administrators, has served as a consultant for a number of medical groups and U.S. hospitals, as well as contributed her time and effort as a faculty advisor and mentor to medical interns from the University of California–San Francisco and Samuel Merritt University in Oakland. 

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