...CHAPTER 1 Understanding Consumer Behavior CHAPTER SUMMARY The goal of this chapter is to introduce students to the topic of consumer behavior. The chapter defines what consumer behavior is, what factors affect it, and why it should be studied. Consumer behavior is defined as involving (1) the set of decisions (whether, what, why, how, when, where, how much, how often, how long), (2) made about the acquisition, use, or disposition (3) of products, services, activities, ideas, people or time (4) made by one or more decision-making entities (5) over time. Consumers’ motivation, ability, and opportunity affect their decisions. These factors influence what consumers are exposed to, what they attend to and what they perceive, how they categorize or interpret information, how they form and change attitudes, and how they form and retrieve memories. Each of these aspects of the psychological core has a bearing on consumer decision making. Decision making itself is based on problem recognition and the search for information, involves some judgment and decision-making processes, and affects others’ decisions as well as one’s own post-decision satisfaction level. Furthermore, consumer decisions are affected by the consumer’s culture, defined as the myriad groups and social systems to which individuals belong, that influence the values and beliefs they hold and the symbols they use to communicate group membership. Factors associated with both the psychological core and culture can influence...
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...action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. Various advertising concepts are in the stream of the media but still there is a little evidence that advertising can significantly help the organization boosts it performance or sale of goods and services. In terms of sales, it is true that the application of the marketing and it associate strategies can gain the consumer trust and loyalty and in return, can enjoy the benefits of the market share. Impact of Advertising can be summed as one that is significant in a society. Advertising can have wide-ranging repercussions on a society more especially youth. Some critics suggest that advertising promotes a materialistic way of life by leading people to believe that happiness is achieved by purchasing products. They argue that advertising creates a consumer culture in which buying exciting new products becomes the foundation of the society’s values, pleasures, and goals. Youth advertising is an important determinant of consumer behavior; it has been shown to have an influence on a youths' product preference and purchase requests. There are some scientists that believe studying youth consumer behavior is a negative thing because it impacts their beliefs, values, and moral judgments. They argue this because they believe that youth are more influenced by advertising messages than adults are. On the other hand, there...
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...CHAPTER – I INTROUDCTION 1. What is Marketing? 2. Marketing Mix 3. Advertising 4. Ethics in Advertising and self Control. 5. Marketing Scenario in India at Present. 6. Aims and Objectives of the study 7. Significance and Relevance of the study 8. Definitions 9. Hypotheses of the study 10. Assumptions of the study 11. Limitations of the study 7 CHAPTER – I INTROUDCTION The present study is titled “ Study of Advertising Standards Council of India (ASCI) and its role in curbing unethical marketing communication with specific reference to the portrayal of women by the advertisers.” To begin with , it is felt that it would be appropriate to state what is marketing, what is the present marketing scenario in India , what is advertising , what kind of marketing communication and advertising is taking place and how the women are portrayed in the advertisements. 1. What is Marketing? There are a number of definitions and a huge amount of literature available on marketing . According Philip Kotler , world renowned marketing expert, the simplest definition states “Marketing is managing profitable customer relationships”. The process of marketing aims at growing current customers by delivering satisfaction and attracting new customers by promising superior values. Yet another definition as per Philip Kotler is “Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return”. The American...
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...the consumer as it relates to advertising and communications law and bait and switch. The publications all agree with their definitions and uses of advertising and communications law and bait and switch. The Advertiser is required to follow the advertising and communications law. Bait advertising is created to allure a consumer to an insincere offer to purchase a product or service which the advertiser does not intend to sell or want to sell. The purpose of bait advertising is to switch a consumer from buying the advertised product or service, in order to sell that consumer another product or service that usually is a higher price or is more advantageous to the advertiser. The scenario that has been presented, demonstrates how the advertiser, the car dealership advertised a truck that possible was unavailable, that resulted in alluring the consumer, Betty, to the dealership in order to purchase that vehicle. The switch occurs when Tony, the salesperson of the advertiser, tried everything not to sell her that truck in order to sell that consumer another product or service that usually is a higher price or is more advantageous to the advertiser. This is an ideal case of Bait and Switch. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not dealer must perform in accordance with the published advertisement. The dealer must perform in accordance with the published advertisement; it is not a factor that the consumer has...
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...described as "non-materialistic," or "not materialistic," does not consider acquiring possessions to be particularly important, although they vary in the extent to which they acquire material possessions in order to meet other objectives, such as social acceptance. Advertisers are often blamed for promoting a materialistic society by making their products as desirable as possible, yet, they have their own reason. Everyone has needs. A need is something that is necessary for organisms to live a healthy life. It is a biological motive. For example, water, air and food are needs. The function of marketing is satisfying needs of customers. It plays an important role in making the consumers aware of the products and services. At business level, marketing functions to integrate the departments of the company. In this way company integrates to serve the market. For existing companys, they are essential to be able to satisfy the needs of customers. In the business view, a satisfied customer is a profitable one. To be able to satisfy the customer's needs, the companys thus try to understand it's customer's needs and then attempt try to deliver it. Human needs will be saturated in the foreseeable future. If the customers have a perception that they do not need it, they may not purchase the product. Nowadays, marketing are responsible to open a bigger market. That is the reason why the Marketers attempt to 'create' needs. By doing so, the customer have a reason to buy the product...
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...Creative Advertising: What is it and can it Create Positive Brand Images and Purchasing Possibilities Marketers have been challenged to produce the effective strategy to produce value to customers, create long lasting relationship that would result into profitable customer relationship, and servicing them through a good after sales services. With these, companies are not only creating value for their products they are also able to increase their profit through proper promotions. Too much spend into these department will bloat the fixed overheads and will result into lower profit and does not guarantee to capture value from customers. For many decades of our time, print/radio/TV advertisements have been the key that played out in communicating message to the target consumers, however people have come to a certain point that it became its nature to constantly seek new things. And with that being said, marketers were called in to the era of promoting their products, the creative advertising. Many studies have defined creative advertising such as “Something that makes people stop what they are doing and pay attention, even when they know they are looking at an ad” and “The soul of advertising and branding”, and “The extent to which the advertisement contains brand or executional elements that are different, novel, unusual, unique and original”. All of which based their core concepts into Originality, Attraction, Strategy and Persuasiveness. Advertising agencies regard creativity...
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...product lines, service and business units to achieve clarity in product offerings, facilitate awareness and help allocate resources. Define who YOU are System Brand Position Communicate who YOU are Strategies Marketing Plan Tactics © 2011 KBM Group CONFIDENTIAL & PROPRIETARY Brand Continuum – Rational to Emotional 1 Awareness 2 Familiarity 3 Consideration 4 Preference 5 Loyalty Have I heard of you? Do I know what you are? (Long list) Do you meet my needs? (Short list) Do you meet my needs better than anyone else? (Win) Do you deliver on your promises? (Retain) Loyalty [Emotional] Preference [Emotional Rational] Perception [Rational Emotional] Awareness [Rational] Brand Attributes What makes a strong brand? Believable Believable Your brand should be based on reality and truth. Can’t promise and not deliver. Brand Defendable Relevant Defendable Your brand should be one that only you can own. Something your competitors can’t easily create. Relevant Your brand should represent something...
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...communications environment Kevin Lane Keller* E.B. Osborn Professor of Marketing, Tuck School of Business, Dartmouth College, 100 Tuck Hall, Hanover, NH 03755, USA To help marketers to build and manage their brands in a dramatically changing marketing communications environment, the customer-based brand equity model that emphasizes the importance of understanding consumer brand knowledge structures is put forth. Specifically, the brand resonance pyramid is reviewed as a means to track how marketing communications can create intense, active loyalty relationships and affect brand equity. According to this model, integrating marketing communications involves mixing and matching different communication options to establish the desired awareness and image in the minds of consumers. The versatility of on-line, interactive marketing communications to marketers in brand building is also addressed. Keywords: customer-based brand equity; brand resonance; brand building; integrated marketing communications; interactive marketing communications Introduction The marketing communications environment has changed enormously from what it was 50, 30 or perhaps even as few as 10 years ago. Technology and the Internet are fundamentally changing the way the world interacts and communicates. At the same time, branding has become a key marketing priority for most companies (Aaker and Joachimsthaler 2000; Kapferer 2005). Yet, there is little consensus on how brands and branding can or should be developed...
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...advertisement. The bias of advertising has existed as long as advertising has. Advertising is the art of applying bias to sell. It is the designed to make something attractive, to make something desired, or needed through the act of creating simple psychological games. The creation of fallacies to stimulate a sense of need is the very foundation of advertising. The pseudo logical appeal to emotion presented in such ads stimulates us to buy things like soft drinks, of which none admit to their product as being merely carbonated sugar water, in doing so they create an image, an image we are told is an ideal. (Cline 1) Under law, bait and switch advertising is considered illegal if the seller has no "intent or want to sell" the advertised item. The fact of the matter is, though, that proving such a bait and switch practice can be fairly difficult, as there must be clear proof that there has been an intention to defraud by the seller. That is not to say, however, that such fraud cannot be caught. Bait and switch advertising occurs when a particular item is priced so low that consumers are lured into the store to buy it. This is known as the bait. Once the customer tries to buy the advertised item, they are told that it is sold or they are discouraged from buying it by the salesperson. The store employee may tell customers that the product is actually inferior and try to convince you to buy a more expensive product. This is the switch. This type of advertising is illegal in most states...
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...Impact of advertisement on consumers purchasing behaviour – Case study of Black Berry phone advertisement "They are the Black Berry boys" Index 1. Impact of advertisement on consumers purchasing behaviour 2. Case study of Black Berry phone advertisement "They are the Black Berry boys" 3. Conclusion 1. Impact of advertisement on consumers purchasing behaviour Every organization, or rather, Brand, invests a lot of capital on marketing, a major chunk of which is spent on making ads and this creates an influence on the consumer. Getting an iconic celeb like Amitabh Bachchan to speak about a product like Navratna Hair Oil, it seems like a piece of cake nowadays. But, to how much extent does these ads actually affect the consumers? Do they actually buy a product just because their favourite film-star is endorsing it? Is it possible that a product can change its image on the consumers overnight, just because of the flashy ads they just released? As being incorporated or associated with the Marketing process, advertising finds its position in every organization. Advertising can be defined as another strategy as an approach towards competitive advantage. Various advertising concepts are in the stream of the media and papers but still there is a little evidence that advertising can significantly help the organization boosts its performance. In terms of sales, it is true that the application of the marketing...
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...CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Advertisement plays a vital role in the marketing of products as it provides a buying power for various product operations by affecting the behavior of consumers. Different media have been used for advertising products such as news papers, magazines and radio. Television however occupies an important place of products due to its extensive spread worldwide. In addition, television plays an important role on changing the consumer behavior and also provides new patterns for consumption. The present context of business organization is situated in increasingly complex, uncertain, and dynamic business environments with multiple realities based on various values, priorities, and requirements. As a result, the challenges demanded by globalization, increased competition, far-reaching socio-cultural and technological developments, and acceleration of changes are bringing about new complexities for organizations. Therefore sustenance of existing customers and attracting new ones in recent times has become a critical factor in business. In fact the seeming growth of many advertising industries is instructive of the fact that, complex and uncertain business environment has lead many organizations to device multifaceted approaches to market their products and services through various techniques of advertisements. Moreover, the essence of being in business by any business outfits...
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...video. Betty drove three hours in one hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. The statutes responsible of regulate advertisements are the Federal Trade Commission (FTC) and the Lanham Act, and these are the ones whose can determinate the issue whether the customer has the right to claim the published advertisement since the fact that she drove many hours in uncomfortable conditions to the dealer expecting to buy the product advertised. The FTC is in charge to protect consumers from false or misleading advertising. The Lanham Act is a series of laws regulating trademark registration and protection. In this case, the fact that Betty drove three hours in one-hundred degree heat is not regulate in the FTC neither in the Lanham Act, therefore, it has no relevance to the dealer. The dealers need not to take care about the difficulties the people face on reaching the venue given in the advertisement. The people who read the advertisement must make sure that the advertisement meets the requirements that they are interested in. Whenever an advertisement is published, numerous people may contact the advertiser. If the advertiser will start taking care of the sufferings and hardships of the people who visit the venue of advertiser, his budget will become difficult to manage. The dealer may give some discounts to the person depending on his personal thinking, however it is...
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...Package to Accompany Essentials of Marketing Lecture Script 20-2 This slide relates to material on p. 498. Summary Overview This chapter suggests that satisfaction and costs serve as criteria for evaluating the impact of marketing. Key Issues • A nation’s objectives affect the evaluation of marketing. • The social and economic objectives of a nation may differ depending on that nation’s socio-political structure. • Consumer satisfaction is the objective in the United States. • This objective is derived from a market-based economic system, and it implies that political freedom and economic freedom go hand in hand. • In the U. S., people have the right to live as they choose and to satisfy their economic and social needs as they choose. Discussion Question: How is the marketing concept related to the marketing objectives and realities that characterize the United States? Multimedia Lecture Support Package to Accompany Essentials of Marketing Lecture Script 20-3 This slide refers to material on p. 499-501. Summary Overview Since consumer satisfaction is such an...
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...building or managing a brand must carefully develop and implement creative brand strategies. To aid in that planning, three tools or models are helpful. Like the famous Russian nesting “matrioshka” dolls, the three models are inter-connected and become larger and increasing in scope: The first model is a component into the second model; the second model, in turn, is a component into the third model. Combined, the three models provide crucial micro and macro perspectives to successful brand building. Specifically, the three models are as follows, to be described in more detail below: 1. Brand positioning model describes how to establish competitive advantages in the minds of customers in the marketplace; 2. Brand resonance model describes how to create intense, activity loyalty relationships with customers; and 3. Brand value chain model describes how to trace the value creation process to better understand the financial impact of marketing expenditures and investments. Collectively, these three models help marketers devise branding strategies and tactics to...
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...what they are looking for as well as what they want to pay. An organisation's pricing policy will vary according to time and circumstances. Crudely speaking, the value of water in the Lake District will be considerably different from the value of water in the desert. The place Although figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the customer. 'Place' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers. The promotion Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal business activities. The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a...
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