Consumer Behavior

STUDY GUIDE BMCB5103 Consumer Behaviour
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OUM BUSINESS SCHOOL
STUDY GUIDE
BMCB5103
Consumer Behaviour

Writer: Prof Dr AKM Ahasanul Haque
International Islamic University Malaysia

Developed by: Centre for Instructional Design and Technology
Open University Malaysia

First Edition, April 2014

Copyright Open University Malaysia (OUM), April 2014, BMCB5103
All rights reserved. No part of this work may be reproduced in any form or by any means
without the written permission of the President, Open University Malaysia.

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INTRODUCTION TO STUDY GUIDE
This Study Guide is intended for the Open University Malaysia's BMCB5103
Consumer Behaviour course. It comes in TWO parts, as described below:

Part One comprises the Course Introduction, which gives you an overview
of the course. More specifically, it provides you with the course synopsis,
objectives, learning outcomes and study load. There is a brief description of
the main textbook(s), which you must read to fulfil the course requirements.
There is also a list of additional reading references. You are encouraged to
go into myVLE to check out the assessment, assignment and final
examination formats.

Part Two comprises the Learning Guide. This starts with an overview, a
recommended weekly study schedule to guide your learning process, and a
brief description of the various elements in the Learning Guide. There is also
a list of topics to be covered. For each topic, you are given the specific
learning outcomes, a topic overview and a listing of the focus areas, together
with assigned readings and the pages where information on the focus areas
is found. To consolidate your learning and test your understanding, a brief
summary of the main content covered and study questions are provided at
the end of each topic.

Finally, there are two appendices, Learning Support and Study Tips, to
help you walk through the course successfully.

Please read through this Study Guide before you commence your course.
We wish you a pleasant study experience.

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Contents

Part One: Course Introduction ................................................................... 5
Synopsis ............................................................................................ 5
Objectives .......................................................................................... 5
Learning Outcomes ........................................................................... 5
Study Load ......................................................................................... 6
Main Textbook(s) .............................................................................. 6
Additional Recommended Readings.................................................. 6
Assessment ...................................................................................... 7

Part Two: Learning Guide .......................................................................... 8
Overview ............................................................................................ 8
Topic 1 ............................................................................................ 10
Topic 2 ............................................................................................ 13
Topic 3 ............................................................................................ 17
Topic 4 ............................................................................................ 20
Topic 5 ............................................................................................ 23
Topic 6 ............................................................................................ 26
Topic 7 ............................................................................................ 29
Topic 8 ............................................................................................ 32
Topic 9 ............................................................................................ 36
Topic 10 .......................................................................................... 39

Appendices ............................................................................................... 43
Appendix A: Learning Support ........................................................ 43
Appendix B: Study Tips .................................................................. 44

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PART ONE: COURSE INTRODUCTION
Synopsis
This course introduces you to the nature of consumer behaviour. It begins
with an overview of consumer behaviour, consumer-marketer relationships,
marketing ethics and policies as well as consumer behaviour as a discipline.
The course then goes on to describe ways in which consumers get
information on products and services, process this information and build
consumption behaviour. Next, we will cover the decision-making process of a
consumer and the types and stages of buying decisions of individual and
group consumers. Finally, we will discuss the external factors that influence
consumer behaviour and marketers actions that capitalise on these factors.
Objectives
The general aims of this course are to:
1. Present the fundamentals of consumer behaviour;
2. Expose learners to the process of understanding the self, receiving
information and shaping consumption behaviour;
3. Provide learners with the approaches of purchasing decisions, covering
both individual and group members; and
4. Describe the external factors that affect and influence consumer
behaviour.
Learning Outcomes
By the completion of this course, you should be able to:
1. Describe consumer behaviour concepts, processes, issues and
applications;
2. Evaluate various theories, researches and marketing applications from
various perspectives;
3. Formulate and conduct activities and researches related to consumer
behaviour;
4. Demonstrate the importance of consumer behaviour and its impact to
individuals, marketers and society as a whole; and
5. Apply the knowledge of consumer behaviour for self-reflection and
development.


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Study Load
It is a standard OUM practice that learners accumulate 40 study hours for
every credit hour. As such, for a three-credit hour course, you are expected
to spend at least 120 hours of learning. Table 1 gives an estimation of how
the 120 hours can be accumulated.

Table 1: Allocation of Study Hours
Activities No. of Hours
Reading course materials and completing exercises 60
Attending 5 seminar sessions (3 hours for each session) 15
Engaging in online discussions 15
Completing assignment(s) 20
Revision 10
Total 120
Main Textbook(s)
Solomon, M. R. (2013). Consumer behavior: Buying, having, and being (10th
ed.). Edinburgh Gate, London: Pearson Education.
Additional Recommended Readings
Blackwell, R. D., Miniard, P. W., & Engel, J . F. (2005). Consumer behavior
(10th ed.). Cincinnati, OH: South-Western College.
Cialdini, R. B. (2006). Influence: The psychology of persuasion (Rev.ed.).
New York, NY: Harper Collins.
Dietrich, G., & Livingston, G. (2012). Marketing in the round: How to develop
an integrated marketing campaign in the digital era. Indianapolis, IND:
Que.
Hoyer, W. D., MacInnis, D. J ., & Pieters, R. (2012). Consumer behavior (6th
ed.). Mason, OH: Cengage Learning.
Schiffman, L., & Kanuk, L. (2010). Consumer behavior (10th ed.). New
J ersey, NJ : Prentice Hall.
Shimp, T. A. (2010). Advertising, promotion, and other aspects of integrated
marketing communications. Mason, OH: Cengage Learning.
Sorger, S. (2012). Marketing planning. New J ersey, NJ : Prentice Hall.

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Underhill, P. (2008). Why we buy: The science of shopping. New York, NY:
Simon & Schuster Paperbacks.
Winer, R., & Dhar, R. (2011). Marketing management (4th ed.). New J ersey,
NJ : Prentice Hall.
Assessment
Please refer to myVLE for information on the assessment format and
requirements.


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PART TWO: LEARNING GUIDE
Overview
This Learning Guide is arranged by topic. It covers essential content in the
main textbook and is organised to stretch over TEN study weeks, before the
examination period begins. Use this Learning Guide to plan your
engagement with the course content. You may follow the recommended
weekly study schedule in Table 2 to help you progress in a linear fashion,
starting with Week 1.

Table 2: Recommended Weekly Study Schedule
Topics Week
Topic 1: Buying, Having and Being 1
Topic 2: Perception, Learning and Memory 2
Topic 3: Motivation and Global Values 3
Topic 4: The Self, Personality and Psychographics 4
Topic 5: Attitudes and Persuasion 5
Topic 6: Decision Making 6
Topic 7: Buying and Disposing 7
Topic 8: Organisational and Household Decision Making 8
Topic 9: Groups and Social Media 9
Topic 10: Other External Factors Influencing Decision Making 10

Each topic in the Learning Guide comprises the following sections (refer to
Figure 1):
Learning Outcomes: Outline the specific tasks to be accomplished;
Topic Overview: Briefly explains what the topic touches on so as to
provide a general interpretative framework for understanding topic
content;
Focus Areas: Identify the main and subareas to be covered;
Assigned Readings: Help you to navigate the main textbook and reading
materials;


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Content Summary: Provides an interpretative framework for
understanding the core content; and
Study Questions: Help you to focus on key subject areas.

Figure 1: Organisation of the Learning Guide

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Topic 1: Buying, Having and Being
Learning Outcomes
By the end of this topic, you should be able to:
1. Define consumer behaviour and describe its process;
2. Make sense of the behaviour of consumers and its impact towards
marketers decisions;
3. Make sense of the role of the market and its impact towards
consumers;
4. Evaluate marketing ethics and public policy as well as the current
policy efforts; and
5. Recognise the interdisciplinary field of consumer behaviours and its
major perspectives.
Topic Overview
This topic introduces an overview on the study of consumer behaviour. It will
cover chapter 1 from the main textbook. The introduction covers definition
and concepts, its processes, consumer and market impacts towards one
another, ethics and public policy and consumer behaviour as a field of study.
Focus Areas and Assigned Readings
Focus Areas Assigned Readings

1.1 Consumer Behaviour

1.2 Consumers Impact on Marketing
Strategy

1.3 Marketings Impact on Consumers

1.4 Marketing Ethics and Public
Policy

1.5 Consumer Behaviour as a Field of
Study

Solomon, M R. (2013). Consumer
behavior: Buying, having, and being
(10th ed.). Edinburgh Gate, London:
Pearson Education.

Chapter 1, pp 29-32.





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Content Summary
1.1 Definition of Consumer Behaviour
It is the process where individuals or groups select, purchase, use or
dispose of products, services, ideas or experiences to satisfy needs
and desires. The study of consumer behaviour is an ongoing
process.

1.2 Consumers Impact on Marketing Strategy
Understanding consumers behaviour helps organisations define
their market and recognise the opportunities for and threats to
their products and/or services.
Organisations define their market by heavy users and
demographic variables.

1.3 Marketings Impact on Consumers
Popular culture Mass market products that affect and influence
the mass culture and lifestyle.
The types of relationship between a person and a product include
self-concept attachment, nostalgic attachment, interdependence
and love.
The marketplace is moving towards global consumerism that
connects people globally and pushes them towards common
consumption preferences.
The Internet and social media have become important tools in
influencing consumer behaviour.

1.4 Marketing Ethics and Public Policy
Marketing ethics vary among people, organisations and cultures.
Many policies are developed to regulate the marketplace and
current efforts such as social marketing and green marketing.

1.5 Consumer Behaviour as a Field of Study
An interdisciplinary field covering various topics related to consumers
it categorises consumption in term of focus area at the micro or
macro level. Consumer research is divided into the positivist and
interpretivist approaches.

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Study Questions
1. Define consumer behaviour. Then, describe ways to define a market.

2. Analyse the importance of the web and social media towards consumer
behaviour.

3. Discuss some issues in regards to ethical marketing.

4. Case for discussion: Linking British Popular Culture and Brand-
Building Strategies (p. 62, Solomon, 2013).


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Topic 2: Perception, Learning and Memory
Learning Outcomes
1. Explain the concepts of sensation and perception as well as their
significances when designing a product;
2. Describe the elements of sensory threshold and assess the
effectiveness of subliminal perception;
3. Discuss the effect of sensory overload towards advertisers and explain
the importance of personal and stimulus selection factors to marketers;
4. Deduce how consumers interpret products and how marketers create
meaning for their products;
5. Evaluate various learning theories and how those theories are applied
in marketing strategy; and
6. Describe the memory process and memory systems.
Topic Overview
This topic will cover chapter 2 and chapter 3 from the main textbook. It will
focus mainly on the internal state of the consumers or the cognitive factors,
namely, perception, learning and memory. For perception, the discussion
includes the sensory system, exposure, attention and interpretation. For
learning, the topic will touch on the theories of learning and how it is applied
in marketing. As for memory, the discussion includes memory process,
memory systems, why people forget and how consumers recall of marketing
messages is measured.

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2.1 Sensory System

2.2 Exposure

2.3 Attention

2.4 Interpretation

2.5 Learning

2.6 Memory

Pearson Education.

Chapter 2, pp 6981.

Chapter 2, pp 8186.

Chapter 2, pp 8692.

Chapter 2, pp 92100.


Content Summary
2.1 Sensory System
Marketers make use of sensation and perception, also known as
sensory marketing, to draw consumers to their products.
When selecting products, more and more consumers are seeking
hedonic values such as fantasies and emotions and multisensory
products.
Product design is an important element to consider as consumers
are increasingly seeking aesthetic designs when selecting
products.

2.2 Exposure
Consumers are exposed to many stimuli in the environment, but
only a few are selected and interpreted while others are ignored
or unnoticed.
Marketers should take into consideration the absolute threshold
and the differential threshold when designing marketing stimuli.
The issue on whether subliminal perception really works on
consumers is still debatable.

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2.3 Attention
Consumers are often exposed to an overload of information from
advertisements. Thus, they pay attention to only a few through
the process of perceptual selection.
Marketers need to consider the personal selection factors and
stimulus selection factors to get consumers attention.

2.4 Interpretation
Consumers assign meaning to the stimulus that they are exposed
to based on experiences, expectations and needs.
The Gestalt theory and semiotics can explain the factors that
determine how consumers interpret a stimulus.
Understanding how consumers interpret a stimulus helps
marketers develop perceptual positioning strategies and create a
state called hyper-reality.

2.5 Learning
There are two major perspectives that explain the learning
process, which are, behavioural and cognitive perspectives.
Behavioural learning theory includes classical conditioning and
instrumental conditioning.
Cognitive learning theory focuses on observational learning.
Both perspectives help marketers understand how consumers
learn about products and services, thus applying these principles
to their marketing strategy.

2.6 Memory
Memory process: external input encoding storage
retrieval.
Memory systems: sensory memory short-term memory long-
term memory.
Marketers rely on consumers to store information on a product or
service so that they can apply it for future purchase decisions.
To reduce the chance of consumers forgetting about a product or
service, the following methods are used: state-dependant
retrieval, familiarity and recall, salience and recall and viewing
context.

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Problems in measuring consumers recall of marketing messages
include: recognition vs. recall, memory relapse and measurement
accuracy.
Study Questions
1. Differentiate between absolute threshold and differential threshold, and
then discuss whether subliminal perception is as effective as claimed
by others.

2. Assess the effectiveness of marketing application on stimulus
generalisation.

3. Elaborate on the memory systems of when external information enters
sensory memory to how it is stored in long-term memory.

4. Case for discussion: Do Avatars Dream About Virtual Shopping? (pp.
136-137, Solomon, 2013).

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Topic 3: Motivation and Global Values
Learning Outcomes
1. Discuss the motivational process and some theories to explain
motivation;
2. Explain consumers level of involvement and types of involvement;
3. Make sense of the role of values to consumer consumption activities;
and
4. Assess the emergence of cross-cultural values due to globalisation.
Topic Overview
This topic will cover chapter 4 from the main textbook. The topic will first start
with a discussion on the motivational process, the importance of emotion in
advertisements and some theories on motivation. Next, it will explain the
level of consumers involvement and types of involvement. Then, it will move
on to explain the role of values in consumption activities and cultural values
measurement. The topic will end with a discussion on issues related to
cross-cultural values due to globalisation.

3.1 The Motivational Process

3.2 Consumer Involvement

3.3 Values

3.4 Cross-Cultural Values

Pearson Education.






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Content Summary
3.1 The Motivational Process
The study of consumers motivation is important to understand
their basic and learned needs.
The drive theory explains biological needs while the expectation
theory explains learned needs.
Emotion plays an important role in driving motivations which could
also cause motivational conflict.
Maslows hierarchy of needs is frequently used in marketing.
However, some issues arise simply by adapting the theory
without considering other factors and cultural boundaries.

3.2 Consumer Involvement
The consumers level of involvement is influenced by personality
as well as by the situation and object factor.
The level of involvement at the low end of the continuum is inertia
while the high end of the continuum is a flow state.
Types of involvement include product involvement, message-
response involvement and purchase situation involvement.

3.3 Values
Value plays a big role in an individuals consumption activities.
Cultural values are measured using Hofstedes Cultural
Dimensions, The Rokeach Value Survey, The List of Values
(LOV) scale, The Means-End Chain Model and Syndicated
Survey.

3.4 Cross-Cultural Values
Multinational companies should learn about cultural differences in
terms of norms and preferences before venturing out.
Marketers should decide whether to adapt a standardised
strategy (etic perspective) or localised strategy (emic
perspective), However, the most ideal strategy is to combine
both.
Some issues emerging from global marketing include diffusion of
consumer culture, resistant to globalisation and creolisation.

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Study Questions
1. Explain why marketers emphasise emotional factors in their
advertisements.

2. What is inertia?

3. Explain the Means-End Chain Model. Include example(s) in your
explanations.

4. Case for discussion: Slim Wave in Singapore (pp. 182-183, Solomon,
2013).


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Topic 4: The Self, Personality and Psychographics
Learning Outcomes
1. Identify the dimensions of self-concept and its relationship to
consumption behaviours;
2. Describe the theories of personality and the use of brand personality by
marketers;
3. Explain the techniques of psychographics and what it is used for; and
4. Identify consumer activities that are harmful to consumers and society.
Topic Overview
This topic covers chapter 5 and chapter 6 from the main textbook. This topic
focuses on the self-aspects of consumers. It will touch on the dimension of
self-concept, personality theories and their problems as well as techniques in
studying the unique characters of consumers. Lastly, it will explore and
expose the dark side of consumer behaviour.

4.1 The Self

4.2 Sex Roles

4.3 Body Image

4.4 Personality

4.5 Psychographics

4.6 The Dark Side of Consumer
Behaviour

Pearson Education.








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Content Summary
4.1 The Self
The study of self-concept helps marketers understand
consumers buying decisions.
Some dimensions of self-concept include self-esteem, real and
ideal selves, multiple selves, extended self, symbolic
interactionism, the Looking Glass Self and self-consciousness.
Theories explaining the relationship between self and
consumption include symbolic self-completion theory and self-
image congruence models.
Other important dimensions that provide feedback about self-
concept are sex roles and body image.

4.2 Sex Roles
The expectation of how females or males should act in society
helps determine what types of products and services they would
consume relative to their gender roles.

4.3 Body Image
The subjective evaluation of ones own physical self.
Media portrayals of ideal beauty result in consumers idealising
these images for themselves doing anything to achieve their
goals even if they prove to be harmful to them.

4.4 Personality
Consumer behaviour is determined by the relative stable or
consistent characters or traits of a person. However, some argue
that behaviour is also determined by situational factors.
Marketers use some aspects of personality in their marketing
strategies.
Theories of personality: Freudian System, Neo-Freudian Theories
and Trait Theory.
Some of the recommendations to improve the validity of
personality measures include specifying the behaviours or
personality, using multiple measures of personality and other
dimensions such as social and economic factors.
Brand personality is used by marketers to make their product
stand out from the rest and to gain loyal customers.

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4.5 Psychographics
Techniques used to segment and label consumers are based on
psychological, sociological and anthropological factors.
These techniques include: Psychographic Segmentation
Typologies, Geodemography and Behavioural Targeting.

4.6 The Dark Side of Consumer Behaviour
Consumers dark sides emerge when desires, choices and
actions cause harmful effects to themselves and the society.
These behaviours include consumer terrorism, addictive
consumption, compulsive consumption, consumed consumers
and illegal activities.
Study Questions
1. Give examples of consumer activities to achieve ideal beauty.

2. Explain some of the main personality theories and their criticisms.

3. What are activities, interests and opinions (AIO)?

4. What are the illegal activities that consumers may commit?

5. Case for discussion: Riding the Plus-Size Wave (pp. 230-231,
Solomon, 2013).


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Topic 5: Attitudes and Persuasion
Learning Outcomes
1. Explain the components and functions of attitudes;
2. Make sense of how attitudes are formed; and
3. Explain the importance of persuasion and the element of
communication in changing consumer behaviour.
Topic Overview
This topic will cover chapter 7 from the main textbook. It will start with a
discussion on components of attitudes, theoretical explanations on its
functions and the impact of attitudinal components. Next, it will explain
theoretically how attitude components should be uniform. It will also explain
the function of multi-attribute models and some problems regarding the
model. Lastly, it will discuss the function of persuasion and the importance of
communication elements in changing consumers behaviour.

5.1 The Power of Attitudes

5.2 Forming Attitudes

5.3 How Marketers Change
Attitudes

Pearson Education.





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Content Summary
5.1 The Power of Attitudes
Attention is the tendency to respond positively or negatively
towards the attitude object.
The components of attitude or the ABC model include: affect (A),
behaviour (B) and cognition (C).
The functional theory of attitudes include the utilitarian, value-
expressive, ego-defensive and knowledge functions.
Hierarchy of effect:
The standard learning hierarchy Cognition Affect
Behaviour
The low-involvement hierarchy Cognition Behaviour
Affect
The experiential hierarchy Affect Behaviour Cognition

5.2 Forming Attitudes
Consumers commitment to an attitude depends on their level of
involvement towards the attitude object.
The components of attitudes should be consistent or in harmony.
If not, then the attitudes should be altered to reach conformity.
Theories explaining attitudinal components uniformity are
consistency principle, self-perception theory, social judgment
theory and balance theory.
The multi-attribute attitude model explains consumer attitudes
based on several attributes.
The Fishbein model is the most popular multi-attribute model
which contains salient beliefs, object-attribute linkage, evaluation
of attributes, behavioural intentions, subjective norm (SN) and
attitude toward the act of buying.
The latter three components are added to improve the model.
Even so, problems still arise such as misapplication of the model
and cultural differences.

5.3 How Marketers Change Attitudes
Marketers use persuasion to change attitudes.

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The elements of communication are sources, message, medium,
receivers and feedback.
Important characteristics for sources are credibility and
attractiveness.
Important features of messages are unique attributes and
benefits.
Types of message appeals include emotional vs. rational appeals,
humorous appeal, fear appeal and the art appeal.
The elaboration likelihood model (ELM) explains that when
consumers are highly involved with a product, then the message
aspect is important, while low involvement consumers would
focus on the sources rather than the message.
Study Questions
1. Explain the hierarchy of effect with suitable example(s) for each effect.

2. Describe the obstacles in predicting behaviours.

3. Differentiate between central routes to persuasion and peripheral
routes to persuasion.

4. Case for discussion: Dominos Dilemma (p. 312, Solomon, 2013).

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Topic 6: Decision Making
Learning Outcomes
1. Describe how consumers make purchasing decisions;
2. Classify the types of consumer decision making; and
3. Identify the stages of consumer decision making.
Topic Overview
This topic will cover chapter 8 from the main textbook. This topic will start
with describing consumer decision making as well as the different
perspectives related to it. Then, it will distinguish the different types of
consumer decisions and its characteristics. Finally, it will examine the four
stages of how consumers make buying decisions.

6.1 Consumer Decision Making

6.2 Continuum of Buying Decision
Behaviour

6.3 Steps in the Decision- Making
Process

Pearson Education.

Chapter 8, pp 319 322.



Content Summary
6.1 Consumer Decision Making
Consumer decision making is a main part of consumer behaviour.
The amount of effort in evaluating and choosing products differ
from one consumer to another.

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Consumers are problem solvers. They arrive at a decision after
going through a series of steps (see 6.3 below).
There are several perspectives on decision making which include
rational perspective, purchase momentum, cognitive processing
style, behavioural influence perspective and experiential
perspective.

6.2 Continuum of Buying Decision Behaviour
Understanding the continuum of the buying decision behaviour
helps to perceive the amount of effort put into a decision.
The continuum consists of one extreme end which consists of the
choices consumers make without any conscious effort known as
Routine Response Behaviour and the other extreme end which is
the Extensive Problem Solving which consists of the choices
consumers make with rigorous effort. The Limited Problem
Solving is the medium effort in between these two extremes.

6.3 Steps in the Decision-Making Process

First Step: Problem Recognition
Problem recognition is the difference between consumers
current state of affairs and the state of their desires.
Problem involves an actual state (need recognition) or an
ideal state (opportunity recognition).

Second Step: Information Search
Consumers make reasonable decisions through examining
the environment for suitable data.
The two types of information searches are internal and
external searches.
Consumers often do not make rational decisions. They
usually make decisions based on satisfying solutions or
bounded rationality.
Biases could also affect the decision-making process known
as mental accounting. It includes behavioural economics, the
amount of information search and the perceived risk on a
product or service.


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Third Step: Evaluation of Alternatives
Evaluation among the alternative products or services
depends on the decision-making process consumers use
which include habitual, limited or extended decision making.
Categorising a product or service helps in the evaluation
process of alternatives.

Fourth Step: Product Choice
Product choice means choosing a product among the
alternatives through evaluative criteria and determinant
features.
Neuromarketing explains how a consumers brain responds to
alternatives.
Consumers usually turn to cybermediaries which help to bring
an efficient search result.

Consumers often create heuristics or follow the rules-of-thumb to
make decisions which may be general, specific or may not even
be of their best interests. They usually rely on product signals in
making these decisions which includes market beliefs, country of
origin and brand loyalty or habit.

Compensatory and non-compensatory decision rules are the two
different methods consumers use when evaluating competing
options.
Study Questions
1. Explain the concept of behavioural influence perspective.

2. Differentiate between routine response behaviour and extensive
problem solving.

3. Describe the different types of perceived risk with example(s).

4. What does the statement fall back on mental rules-of-thumb mean?

5. Case for discussion: Mac vs. PC (pp. 354-355, Solomon, 2013).

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Topic 7: Buying and Disposing
Learning Outcomes
1. Explain the factors that affect consumer behaviour on purchasing a
product or service;
2. Identify the various issues related to antecedent, purchase and post
purchase states; and
3. Discuss marketers actions related to issues on antecedent, purchase
and post purchase activities.
Topic Overview
This topic will cover chapter 9 from the main textbook. This topic will first
discuss the factors that affect consumer behaviour when making a
purchasing decision. Next, it examines the different issues of antecedent,
purchase, and post purchase states. Lastly, it will outline the actions taken
by marketers in each issue related to antecedent, purchase and post-
purchase situations.

7.1 Factors Effecting Consumer
Behaviour

7.2 Antecedent States

7.3 Purchase Environment

7.4 Post purchase Processes

Pearson Education.






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Content Summary
This topic highlights the issues related to antecedent, purchase, and post-
purchase activities as well as marketers concern over these issues.

7.1 Factors Effecting Consumer Behaviour
There are various contextual factors influencing consumers
choice of purchase.
The issues related to purchase and post-purchase activities are
antecedent states, purchase environment and post-purchase
processes.

7.2 Antecedent States
Situational Factors a consumption situation which involves a
buyer, a seller, a product or service and other factors including
the reason of purchase, social and physical surroundings, etc.
Marketers focus more on situations in which consumers are more
inclined to purchase.
Usage Contexts marketers tailor market segmentation
strategies by matching the specific needs of people to adaptable
situations.
Time Pressure temporal factors which includes economic and
psychological time. Marketers reduce consumers psychological
waiting time by using tricks such as changing their perceptions
or providing distractions.
Mood a consumers positive or negative mood creates a bias
judgement of products and services. Marketers craft appliances
that have positive results.
Shopping Orientation marketers measure a shoppers
motivation that affects the type of shopping environment they may
experience to be attractive or annoying. That is why retail theming
and store image are important. Online marketers also benefit from
this by giving extra value to their customers through e-commerce.

7.3 Purchase Environment
The Shopping Experience information from a store or website
often influences consumers decision making as they can engage
in spontaneous shopping. Marketers encourage shoppers to
spend through creating purchasing environments, for example,
offering samples.

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Point-of-Purchase (POP) Stimuli in-store displays such as free
samplings, coupon-dispensing machines or detailed product
displays.
Sales Interactions a salesperson plays a crucial role in making
the shoppers choice easier by giving his or her proficient advice.

7.4 Post purchase Processes
Consumer Satisfaction marketers should be concerned with
product evaluations from consumers as it could help them to
improve in the future. They can improve by understanding the
meaning of a quality product or service, solving complaints of a
product or service that are dissatisfying and following the total
quality management (TQM) approach.
Product Disposal products are disposed when they are no
longer usable or fit the views of consumers. This poses a major
concern to marketers and public policy makers as they struggle to
overcome this problem by looking into disposable options and
encouraging consumers to recycle.
Alternative Markets the consumers demand for sustainable
products creates alternative or new markets.
Study Questions
1. Discuss how marketers develop segment strategies on usage
situations.

2. Describe point-of-purchase (POP) stimuli.

3. Discuss the issues of product disposal.

4. Case for discussion: Giving and Receiving on Freecycle.org (pp. 387,
Solomon, 2013).

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Topic 8: Organisational and Household Decision
Making
Learning Outcomes
1. Describe collective decision making;
2. Explain how organisational buyers make purchasing decisions;
3. Make sense of each family members influence on the decision-making
process; and
4. Discuss children development in making consumption decisions.
Topic Overview
This topic will cover chapter 10 from the main textbook. This topic starts with
a discussion on collective decision making. It will then touch on
organisational purchasing decisions and its features in comparison to
individual decision making. Next, it will identify the different roles each family
member has on making a collective purchasing decision. Lastly, this topic
will discuss childrens role in making a purchasing decision, the stages of
their development and the ethical issues that should be considered by
marketers.

8.1 Collective Decision Making

8.2 Organisational Buyers and
Decision Making

8.3 Family Unit

8.4 Consumers-in-Training

Pearson Education.

Chapter 10, pp 393 394.

Chapter 10, pp 394 399.

Chapter 10, pp 399 412.

Chapter 10, pp 412 418.


33
Content Summary
This topic focuses on collective decision making in terms of organisational
buyers, family units and children as consumers:

8.1 Collective Decision Making
More than one person is involved in the decision-making process
of a product or service that is used by multiple consumers.
Individuals or groups are assigned specific roles in choosing a
product or service for their organisational unit. These roles
include initiator, gatekeeper, influencer, buyer and user.

8.2 Organisational Buyers and Decision Making
Organisational Buyers buyers who purchase goods and
services from business-to-business (B2B) marketers on behalf of
a company for the companys use in manufacturing, distribution or
resale.
The important features of organisational and industrial purchasing
decisions in comparison to individual decision making are that it
involves many people, it uses precise technical specifications,
decisions are based on past experiences and alternatives are
carefully weighed, careful decisions must be made at all times as
it involves a buyers career, buyers normally have a huge
influence over the suppliers and it requires more face-to-face
contact.
Organisational buyers are influenced by their internal and external
stimuli as well as cultural factors.
The three types of organisational purchases are straight rebuy,
modified rebuy and new task. Each type corresponds to the three
types of decisions which are habitual decision making, limited
decision making and extensive problem solving respectively.
B2B e-commerce is popular among organisational buyers. The
B2B e-commerce approaches include open-source, prediction
markets and crowdsourcing.


34
8.3 Family Unit
Family Life Cycle (FLC) is used to segment households as family
needs and expenditures change over time. Research in the life-
cycle effects includes the differences in consumers consumption
patterns.
Each family member plays a different role and exerts a different
amount of influence over purchasing decisions.
Family decision making composes of two basic types which are
consensual purchase decision and accommodative purchase
decision. A family unit can also be classified as a customer
network.
Marketers need to carefully look at a familys sex roles and their
decision-making responsibilities (which are either based solely on
the choices of the husband, wife, or both and may also include
other family members) by examining which family members make
purchasing decisions and hold the responsibility of their familys
finances.

8.4 Consumers-in-Training
Children learn to consume over time. They form three distinct
markets which are primary market, influence market and future
market.
Children are mostly influenced (consumer socialisation) by their
family and the media of their desired product. Sex-role conception
also influences a childs product choices.
Children develop through time in different stages of their
understandings and perceptions of a product or service.
As children usually follow the behaviours and preferences of their
parents, marketers look closely at this passing down behaviour
as it creates brand loyalty. Marketers also look at the cognitive
development of a child in terms of how and when they start to
develop the understanding of a product.
The ethical aspects of marketing needs to be monitored as
children are not able to distinguish between reality and media

35
depictions since their thinking patterns are not the same as
adults.
Study Questions
1. Describe the different roles of group members when making a
collective purchasing decision.

2. Explain the characteristics of modified rebuy.

3. Discuss why a family financier officer is important to marketers.

4. Explain why parents should monitor their childrens exposure to the
media.

5. Case for discussion: The Turkish Coffee Experience: Tesco/Kipa vs.
Coffee Shops (p. 422, Solomon, 2013).

36
Topic 9: Groups and Social Class
Learning Outcomes
1. Make sense of reference groups and their influences on their members
purchasing decisions;
2. Make sense of opinion leaders roles in influencing consumer
behaviour;
3. Describe how communication from word-of-mouth affects an
individuals consumption decision; and
4. Discuss the revolution of social media and how marketers benefit from
it.
Topic Overview
This topic will cover chapter 11 from the main textbook. This topic explores
the externals factors that influence consumers social identities. It starts by
explaining reference groups influence on their members consumption
decisions. It will then describe how opinion leaders influence the behaviour
of consumers. Next, it will discuss the effects word-of-mouth has on
consumers decision making. Lastly, it will highlight social medias effects on
the community and marketers actions to promote their products and
services through this medium.

9.1 Reference Groups

9.2 Opinion Leadership

9.3 Word-of-Mouth (WOM)
Communication

9.4 Social Media

Pearson Education.

Chapter 11, pp 430 439.

Chapter 11, pp 439 445.

Chapter 11, pp 445 452.

Chapter 11, pp 452 457.


37
Content Summary
This topic focuses on external factors that influence consumer decision
making that are reference groups, ordinary leadership, word-of-mouth
communication and social media.

9.1 Reference Groups
Consumers are often influenced by other people and groups on
their purchasing decisions especially when they have a significant
relevance to a consumers preferences of a product or service.
Reference groups influence a consumer through three forms:
informational, utilitarian and value-expressive.
When groups are formed, social power, referring to those who
have the power to change the actions of others, usually have a
major impact on a members purchasing decisions.
There are various types of reference groups such as brand
communities and consumer tribes. Reference groups consist of
membership or aspirational groups. There can also be positive or
negative reference groups. Groups are normally formed because
consumers prefer to do things in groups.
Conformity also influences a consumers purchasing decisions as
unspoken rules or following norms often govern a consumers
behaviour.

9.2 Opinion Leadership
Opinion leaders are those who are likely to influence a
consumers product choice.
These opinion leaders possess social power and have an
excessive amount of information on a certain product.
Marketers also look into groups who have similar functions to
opinion groups such as the market mavens (those who transmit
all types of marketplace information) and the surrogate
consumers (those who are often sought by consumers to give
advice on a product or service).

9.3 Word-of-Mouth (WOM) Communication
Other consumers information on a product are often more
influential than an advertisement they stumble upon, as words

38
from those they know are more powerful and trustworthy than the
words from an advertising channel.
Consumers usually depend on WOM at the evaluation and
adoption stage. It is also powerful when a product is new or has
complex functioning.
Marketers often create a buzz to promote and spread their
products to the masses with various strategies such as guerrilla
marketing (using unconventional methods to push products).

9.4 Social Media
Companies can now interact directly with consumers using social
media.
Marketers who understand the platforms of social media can use
it to introduce their products to Internet users.
Study Questions
1. Explain the different types of social power.

2. Compare between an opinion leader and surrogate consumer.

3. Discuss the effectiveness of guerrilla marketing to promote a product or
service.

4. Discuss how marketers promote their products and services through
social media.

5. Case for discussion: Mighty Reds Go For It! (pp. 461-462, Solomon,
2013).

39
Topic 10: Other External Factors Influencing Decision
Making
Learning Outcomes
1. Make sense of the importance of classifying consumers into social
classes for marketers;
2. Explain how consumers lifestyles create marketing strategies for
companies;
3. Discuss different subcultures and how they influence an individuals
purchasing decision; and
4. Identify various cultures and its impact on markets.
Topic Overview
This topic will cover chapters 12, 13 and 14 from the main textbook. This topic
focuses on other external factors influencing consumer decision making. It will
start with a discussion on social class and its importance to marketers. It will
then touch on the marketing strategies pursued by companies through their
understanding of consumers lifestyles. This topic will then explain the different
types of subcultures and how marketers can benefit through observing and
studying different subcultures. Lastly, it will discuss the influences cultures
have on an individuals consumption decision and how marketers promote
their products and services by following its trends.

10.1 Social Class

10.2 Lifestyle

10.3 Subcultures

10.4 Culture

Pearson Education.

Chapter 12, pp 467 493.

Chapter 12, pp 493 500.

Chapter 13, pp 507 539.

Chapter 14, pp 549 590.


40
Content Summary
This topic focuses on other external factors that affect consumer purchasing
decisions which are social class, lifestyle, subcultures and culture.

10.1 Social Class
Consumers are grouped into social classes to determine their
standing in a society and how they gain access to resources. By
this, marketers can easily focus on the different classes to target
on certain products or services.
As economies have changed in recent years, many consumers
are now able to afford what past consumers have had trouble
affording. These consumers are labelled as mass class.
Occupation and income are the two major components of social
class. Though the former is a better indicator than the two,
income is still an important indicator as consumers use money to
purchase goods and services.

10.2 Lifestyle
Marketers observe a consumers lifestyle to develop marketing
strategies as it presents the basis of what consumers like to do,
the way they spend their money and the things they do in their
leisure time.
Consumers usually choose products that suit their lifestyles. On
that account, marketers try to arrange a product that fits to an
existing pattern of consumption so that it can create a brand
personality that many consumers can relate to.

10.3 Subcultures
Being part of a micro culture that shares an interest in some
activity or organisation can influence purchasing decisions.
Members of ethnic, racial and religious subcultures also influence
the consumers decision making.
Age subcultures are also factors that influence decision making
as people from different eras have different needs and
preferences as they age.
Marketers often have to cater for different groups of subcultures
based on their needs and wants.


41
10.4 Culture
Culture is viewed as a societys personality.
Cultural systems consist of ecology, sociology and ideology.
Every culture consists of its own stories and ceremonies including
myths and rituals.
Marketers take note of products or services that are considered
as sacred or profane. They also take into account high and
popular cultures.
Study Questions
1. Explain how income is an important indicator of social class.

2. Discuss the different marketing strategies on consumers lifestyles.

3. Identify the issues marketers face when making marketing strategies
on ethnic subcultures.

4. Distinguish between high and popular cultures.

5. Case for Discussion: Doritos A La Turca and the CEM Yilmaz Fan
Club (pp. 543-544, Solomon, 2013).

42

43
Appendices

Appendix A: Learning Support
Seminars
There are eight hours of face-to-face facilitation, in the form of FOUR
tutorials of two hours each. You will be notified of the date, time and location
of these tutorials, together with the name and e-mail address of your
facilitator, as soon as you are allocated a group.
Discussion and Participation
Besides the face-to-face tutorials, you have the support of online discussions
in myVLE with your facilitator and coursemates. Your contributions to online
discussions will greatly enhance your understanding of the course content,
and help you do the assignment(s) and prepare for the examination.
Feedback and Input from Facilitator
As you work on the activities and the assigned text(s), your facilitator will
provide assistance to you throughout the duration of the course. Should you
need assistance at any time, do not hesitate to contact your facilitator and
discuss your problems with him or her.

Bear in mind that communication is important for you to be able to get the
most out of this course. Therefore, you should, at all times, be in touch with
your facilitator, e-facilitator and coursemates, and be aware of all the
requirements for successful completion of the course.
Tan Sri Dr Abdullah Sanusi (TSDAS) Digital Library
The TSDAS Digital Library has a wide range of print and online resources for
the use of its learners. This comprehensive digital library provides access to
more than 30 online databases comprising e-journals, e-theses, e-books and
more. Examples of databases available are EBSCOhost, ProQuest,
SpringerLink, Books24x7, InfoSci Books, Emerald Management Plus and
Ebrary Electronic Books. As an OUM learner, you are encouraged to make
full use of the resources available through this library.


44
Appendix B: Study Tips
Time Commitment for Study
You should plan to spend about 12 hours of study time on each topic, which
includes doing all assigned readings and activities. You must also set aside
time to discuss work online. It is often more effective to distribute the study
hours over a number of days rather than spend a whole day studying one
topic.
Study Strategy
The following is a proposed strategy for working through the course. If you
have difficulty following this strategy, discuss your problems with your
facilitator either through the online forum or during the seminars.

(i) The most important step is to read the contents of this Study Guide
thoroughly.

(ii) Organise a study schedule (as recommended in Table 2). Take note of
the amount of time you spend on each topic as well as the dates for
submission of assignment(s), seminars and examination.

(iii) Once you have created a study schedule, make every effort to stick to
it. One reason learners are unable to cope with postgraduate courses
is that they procrastinate and delay completing their coursework.

(iv) You are encouraged to do the following:
Read the Study Guide carefully and look through the list of topics
covered. Try to examine each topic in relation to other topics.
Complete all assigned readings and go through as many
supplementary texts as possible to get a broader understanding of
the course content.
Go through all the activities and study questions to better
understand the various concepts and facts presented in a topic.
Draw ideas from a large number of readings as you work on the
assignments. Work regularly on the assignments as the semester
progresses so that you are able to systematically produce a
commendable paper.


45
(v) When you have completed a topic, review the Learning Outcomes for
the topic to confirm that you have achieved them and are able to do
what is required.

(vi) After completing all topics, review the Learning Outcomes of the course
to see if you have achieved them.

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