CHAPTER 3 THE CONSUMER DECISION-MAKING PROCESS, Lecture notes of Decision Making

Download CHAPTER 3 THE CONSUMER DECISION-MAKING PROCESS and more Lecture notes Decision Making in PDF only on Docsity! :n""...Tar 3 CHAPTER 3 THE CONSUMER DECISION-MAKING PROCESS 3.1 INTRODUCTION Consumer behaviour from a marketing perspective was discussed in Chapter 2. Different models of human behaviour were briefly discussed, explaining the relevance thereof in consumer behavioural studies. The predominant objective of Chapter 2 was to form an understanding of consumer behaviour by discussing a number of different models of consumer behaviour, detailing different theories 011 how consumer purchase decisions are formed and influenced by external and internal factors. Chapter 3 will provide clarity on the consumer decision-making process. The discussion commences by distinguishing different types of decision-making processes that consumers can follow. This will be followed by a detailed discussion on the different stages of the decision-making process together with the environmental influences and individual differences influencing the decision­ making process. The stages of the consumer decision-making process that will be discussed, based on the model of consumer behaviour proposed by Engel , Blackwell & Miniard (EBM){1995 version), are need recognition, search, pre-purchase alternative evaluation and purchase and its outcomes. Three outcomes of purchase will be discussed, namely consumption, post-purchase alternative evaluation and divestment. The consumer information-processing process, that considers how external stimuli are processed, retained in and recalled from consumer memory, is Page 96 Chapter 3 regarded an important component of the consumer decision-making process and will be discussed in Section 3.4 as part of the search-stage. Finally, Chapter 3 will be concluded by a summary of the main findings on the discussion of the consumer decision-making process together with conclusions that can be derived from the process. Important to note is that Chapter 3 will focus on theoretical findings on the consumer decision-making process. The influence of the Internet on the consumer decision-making process, with specific reference to the influence on different stages of the process, will be discussed in Chapter 4. 3.2 TYPES OF DECISION-MAKING PROCESSES The discussion on models of consumer behaviour in Chapter 2, with specific reference to the EBM model (Section 2.4.3.5), identified a number of different decision-making processes that consumers could follow when purchasing a product or service. The Assael model (Appendix 5) identified four different decision-making processes, namely complex decision-making, brand loyalty, limited decision-making and inertia, whereas the EBM model identified extended problem-solving, limited problem-solving and midrange problem-solving. In addition to the three decision-making processes listed in the EBM model, Engel et a!. (1995: 155) provide an additional decision-making process, applicable to repeat purchases, namely habitual decision-making. Section 3.2.1 will clarify the different types of decision-making processes by discussing them as a continuum ranging from high to low involvement. It should be noted that although Engel et al. (1995: 155) refer to problem-solving, the researcher decided to refer to decision-making, as used by other authors (including Assael, 1995: 19). Page 97 Chapter 3 set of criteria for evaluation purposes. Engel et al. (1995: 155) continue by stating that extended decision-making occurs when the decision-making process followed by the consumer is especially detailed and rigorous. Consumers use an extended decision-making process when purchasing motor vehicles, expensive items and products and services for which the cost and perceived risk is high for making an incorrect purchase decision. Solomon (1996: 271) adds by explaining that extended decision-making is characterised by high risk and involvement by the consumer, resulting in extensive search for information from multiple sources prior to store visits. Hawkins et al. (2001: 507) note that extended decision-making may also occur without measuring and evaluating attributes, where the criteria being evaluated by consumers are emotions, for example the decision whether or not to embark on a boat cruise for a vacation. Engel et al. (1995: 156) suggest that all stages of the decision-making process are involved with extended decision-making, although not necessarily in any precise order. In addition to the extensive search for information and evaluation of multiple alternatives, consumers may seek additional information regarding where and how to purchase a product. Engel et al. (1995: 156) summarise extended decision-making by stating that: " thought and evaluation precede the act of purchase and use because of the importance of making the right choice". According to Engel et al. (1995: 156), midrange decision-making falls somewhere between extended and limited decision-making. Limited information is therefore required and can be easily found. Since a number of alternatives are available, the consumer has to evaluate and choose one option. The process usually requires limited time and deliberation and an alternative can be chosen relatively easily. An example of midrange decision-making is deciding which Page 100 'h""l"ItQr 3 movie to see, with a number of alternatives available. The information is easily obtainable in newspapers and the evaluation of the options is usually done quickly, often influenced by the opinion of a friend or an article by a critic. According to Engel et al. (1995: 156), the final decision-making process on the continuum applicable to initial purchases is limited decision-making. This process of decision-making is characterised by little information search and evaluation before purchase and the consumer not having the time, resources or motivation to engage in extended decision-making. The consumer will, therefore, simplify the process by reducing the number and variety of information sources and alternatives as well as the evaluation criteria. Schiffman & Kanuk (1997: 559) add to the above by stating that for limited decision-making, consumers already have established criteria for evaluating both the product category and individual brands within the category. Consumers will often apply a decision rule when engaging in limited decision­ making, for example to purchase a brand that is recognised or alternatively to simply purchase the cheapest option available. The consumer may also decide to purchase a new brand (a ''why not try it" response), resulting in brand switching. Engel et al. (1995: 156) conclude the discussion on initial purchases by stating that for limited decision-making: "... need recognition leads to buying action; extensive search and evaluation are avoided because the purchase does not assume great importance". A competitive product, regardless how small the difference, can therefore gain temporary advantage when the consumer identifies the product at the point of purchase and decides to change brands as a result of a ''why not try it" response. Chapter 3 3.2.1.2 Repeat purchases Repeated purchases imply purchase decisions made over a period of time and comprise repeated and habitual decision-making. According to Engel et al. (1995: 158), repeated decision-making occurs when the consumer continuously needs to make a decision regarding repeated purchases, often as a result of dissatisfaction with a previously purchased alternative. In addition to the above, repeated decision-making occurs when, for example, the retail outlet usually supported by the consumer is out of stock, or when the situation changes in some other way. The consumer now has to weigh the consequences of investing effort and time in finding another acceptable alternative. The second decision-making process associated with repeat purchases is habitual decision-making, taking many forms depending on the initial decision­ making process followed by the consumer (Engel et aI., 1995: 158). Habitual decision-making comprises brand or company loyalty and inertia. It should be noted that habitual decision-making is a process more likely to be followed by consumers for repeat purchases than repeated decision-making, since consumers will engage in repeat purchases on a basis of habits or routines that are formed in an effort to cope more effectively with the pressures of life. Engel et al. (1995: 158) explain brand or company loyalty by stating that if a consumer has been purchasing the same product or service over a period of time due to satisfaction with the purchase and service received, the consumer will reward the organisation selling the product or rendering the service by means of continued support over a period of time. Belch & Belch (2001: 121) support this view by stating that brand loyalty refers to the preference for a particular brand that results in its repeated purchase. An example of brand or company loyalty is Page 102 3 3.2.2 Factors influencing the extent of decision-making The extent of decision-making is determined by three factors, namely the degree to which the consumer is involved in the purchase, the differentiation of alternatives and time available for deliberation (Engel et at., 1995: 161). The degree of personal involvement is considered the most important factor influencing the type of decision-making process. The consumer will act with deliberation to maximise the benefits and minimise the risk of a purchase and the use thereof, depending on the extent of involvement. Involvement is furthermore a function of the person, object and situation. The starting point for involvement is always the person with underlying motives, values and needs, activated by an object that is being perceived as important in satisfying needs, goals and values. Examples of the object include a product, service and promotional message. The significance of the object in satisfying a need is determined by the situation that differs from time to time, resulting in consideration for all three factors (person, object and situation) when reflecting on involvement. Peter & Olson (1994: 172) add that the degree of decision-making from extensive to routine purchasing behaviour depends to a great extent on the knowledge of the consumer regarding the need identified and the level of involvement with the identi'fied need. Assael (1995: 72) notes that consumers are most likely to be involved with a product and therefore a purchase decision if one or more of the following applies (the presence of these conditions will most probably lead to extended decision­ making): • the product purchase is important to the consumer, Page 105 Chapter 3 • the product is of interest to the consumer; • the purchase entails significant risks; • the product has some form of emotional appeal; and • the product can be identified with the norms of a group. The extent to which alternatives are perceived to be different, forms the second factor determining the extent of decision-making. Extended decision­ making is therefore the most probable decision-making process when alternatives are perceived as being Significantly differentiated and limited and midrange decision-making when alternatives are considered to be similar. The final factor influencing the extent of decision-making is time availability. The more time the consumer has available to make a purchase decision, the greater the chance is of extended decision-making. For example, a consumer deciding to purchase a new television to replace an existing older model may engage in extended decision-making, while for the same example the consumer may engage in midrange or limited decision-making when the current television breaks the day before a major soccer or rugby game. As was noted in Section 3.2, consumers can follow different consumer decision­ making processes when purchasing a product or service. The remaining sections of this chapter will provide a discussion on all the stages of the consumer decision-making process together with the factors influencing each stage in the process. As mentioned before, the decision-making process proposed by Engel et a!. (1995) will be used as the basis for the discussion. The decision-making model Page 106 UNIVERSITEIT VAN PRETORIA UNIVERSITY OF PRETORIA YUNIBESITHI YA PRETORIA 3 uw Chapter 3 (illustrated in Figure 3.2) suggested by Engel et al. (1995: 146-154), comprises need recognition, search for information, pre-purchase alternative evaluation and purchase and its outcomes. The final stage, purchase and its outcomes, comprise four stages, namely consumption, post-purchase altemative evaluation and divestment. It should be noted that other authors (including Belch & Belch, 2001: 107 and Assael, 1995: 81) view the decision-making process as comprising of five stages, although the terminology ascribed to the stages differ somewhat to that of the process offered by Engel et al. (1995: 146-154). FIGURE 3.2: THE CONSUMER DECISION-MAKING PROCESS Perceive a difference between the actual and the ideal state of affairs ‘Seek information from the external knowledge stored in memory Page 107 Chapter 3 According to Engel et al. (1995: 176) two factors influence the desire of consumers to activate action once a need has been identified, namely the need has to be sufficiently important to the consumer and the solution has to be within the consumer's means. For example, if the solution to the need is above the consumer's economic means, action is most probably unlikely. Hawkins et al. (2001: 510) add to the above by stating that the magnitude of the difference between the actual and desired states will also influence the consumer's willingness to respond to the need. For example, a consumer may desire to own a motor vehicle using less than 10 litres of fuel per 100 kilometres, while still meeting certain power and aesthetic requirements. The consumer may not be willing to proceed to the next stage of the decision-making process if the current motor vehicle uses 10.5 litres per 100 kilometres, even though a discrepancy exists. Two different types of need recognition styles can be identified among consumers (Schiffman & Kanuk, 1997: 567), namely actual state or desired state types. Actual state types refer to need identification as a result of current unsatisfactory product performance, for example a wrist-watch failing to keep accurate time. Desired state types refer to problem and need recognition for something new that may trigger the decision-making process. Hawkins et al. (2001: 511) add to the above by stating that needs can either be active or inactive, where active needs imply that consumers are aware of the need or will become aware thereof in the normal course of events. Inactive needs simply represent needs the consumer is not yet aware of. According to Schiffman & Kanuk (1997: 567) need recognition can also be viewed as either simple or complex. Needs occurring frequently and that can be dealt with almost immediately are termed simple need recognition, for example a consumer feeling hungry and purchasing crisps at a cafe. Where a need develops over a period of time as the actual state and desired state move apart, complex need recognition applies. For example, a wrist-watch failing to keep the a @ ee UNIVERSITEIT VAN PRETORIA UNIVERSITY OF PRETORIA YUNIBESITHI YA PRETORIA = Chapter 3 correct time over a certain period, may result in the consumer recognising the need for a new wrist-watch. Solomon (1996: 271) adds to the above by stating that need recognition can also be viewed as an “opportunity recognition” when the consumer's ideal state is moved upwards. For example, a consumer who has always been satisfied with the Hi-Fi at home may recognise the need for a better, high-quality Hi-Fi after listening to a better quality system of a friend. According to Engel et al. (1995: 146-148), two categories of factors influence need recognition, namely environmental influences and individual differences. The factors influencing need recognition are illustrated in Figure 3.4 below. FIGURE 3.4: NEED RECOGNITION Beich & Belch (2001: 109), Solomon (1996: 272) and Assael (1995: 83) add to the factors influencing need recognition by stating that it may also be spurred by Page 111 3 the marketing efforts of organisations. Figure 2.6 in Chapter 2 (detailing the EBM model of consumer behaviour) showed the influence of marketing stimuli on memory, once processed. The memory component as influence to need recognition will be discussed under the second stage of the consumer decision­ making process, search, when the information-processing process is discussed (Section 3.4.2). This discussion will indicate how marketing stimuli influence consumer behaviour, how they are processed, retained and recalled from memory. The two influences on need recognition will be discussed in Sections 3.3.1 and 3.3.2. 3.3.1 Environmental influences The relevance of environmental influences in consumer decision-making, according to Engel et al. (1995: 607), is that consumers are shaped by the environments they operate and live in. In addition to the environment shaping consumers, consumers change the environment through their behaviour. The main environmental influences shaping the consumer decision-making process are culture, social class, personal influences, family and the situation. 3.3.1.1 Culture According to Engel et al. (1995: 615), culture has a profound impact on why consumers buy, since it affects the individual decision-making process, communication within a society and the specific products consumers purchase. More specifically, culture influences certain attitudes and behaviours, for example food and feeding habits, sense of self and space, dress and appearance, time and time consciousness, mental processes and relationships. From a need recognition perspective, culture influences product meanings through advertising and other marketing-dominated mediums, as well as other ways not influenced by marketing, yet important to the consumer. Page 112 Chapter 3 in relation to the frame of reference of the reader. Verbal symbols, for example, include an announcement on television or a print advertisement in a magazine, whereas non-verbal symbols include, for example, figures, shapes, trademarks and product design. Schiffman & Kanuk (1997: 411) add to the above by stating that symbols can assist consumers in the decision-making process through product offerings and marketing appeals. For example, the price of a product or even the store where it is sold, could be a symbol of the quality a consumer can expect when purchasing a product. Solomon (1996: 543) explains that every society possesses a set of myths that defines that culture. A myth refers to stories that contain symbolic elements expressing the shared emotions and ideals of culture. Four functions of myths within cultures can be distinguished, namely they assist with the explanation of the origins of existence (metaphysical), they emphasise that all components of the universe are a part of a single picture (cosmological), they maintain social order by authorising a social code to be followed by the members of a culture (sociological) and they provide models for personal conduct (psychological). Schiffman & Kanuk (1997: 411) add by stating that rituals can be defined as: " a type of symbolic activity consisting of a series of steps (multiple behaviours) occurring in a fixed sequence and repeated over time". More practically, rituals extend over a person's life cycle from birth to death and for example include christening of babies, graduations and weddings. Rituals are, therefore, rather formal and can be very public, elaborate or religious. Rituals can also be less formal, for instance painting eggs for Easter, decorating a tree for Christmas or drinking Jack Daniel's only when a favourite rugby or football team is playing. Rituals can, from a consumer decision-making perspective, lead to need recognition, for example purchasing a wedding ring, a suit for a graduation ceremony or a gift for a friend's wedding. Page 115 Chapter 3 informal and technical learning. Formal learning implies that adults or older siblings teach young family members "how to behave". Informal learning refers to learning through imitating the behaviour of selected others, including family members and television heroes. The final method of learning, technical learning, refers to the educational environment, where teachers instruct children what should be done, how it should be done and why it should be done. Schiffman & Kanuk (1997: 412 - 414) add to the characteristics of a culture by stating that a particular value, practice or belief has to be shared by a significant portion of society. The critical component enabling people to share values, customs and experiences is a common language. As discussed above, referring to cultures being learned, the family and other institutions within society (for example educational institutions and houses of worship) share held beliefs, values and customs with the young. Schiffman & Kanuk (1997: 414) explain the final characteristic of cultures discussed in this section, namely that cultures are dynamic, by stating that cultures need to continually evolve to function in the best interests of a society. Examples of influences changing cultures include new technology, a shift in population, wars and adoption of customs from other cultures. Assael (1995: 456) adds to the above by stating that although cultures change as society changes, it is also permanent since parents continue to share values with their children. It is clear from the discussion above that culture plays an important part in the purchasing behaviour and decision-making activities of consumers. The discussion showed many examples of how cultural phenomena and influences can lead to consumer need recognition. One aspect that has not been discussed is the influence of subcultures as possible influence to both consumer decision­ making and need recognition. The influence of subculture and cross-culture will be discussed in more detail below. Page 117 3 A) Subculture and cross-culture According to Assael (1995: 484), differences in values among groups in the same country refer to subculture and can be defined as: ".. broad groups of consumers who have similar values that distinguish them from society as a whole". Peter & Olson (1994: 360) provide a different perspective by defining subculture as: " ... a distinctive group of people in a society who share cultural meaning". Schiffman & Kanuk (1997: 440) provide clarity on subculture by stating that members of a subculture possess customs, values and beliefs that distinguish them from other members of the same society, while still adhering to the cultural values, beliefs and behavioural patterns of the larger society. In contrast to subculture, cross-culture refers to differences in values, beliefs and behaviour across countries. Schiffman & Kanuk (1997: 474) explain the relevance of viewing cross-cultural influences on consumer behaviour by stating that an analysis of the culture of other nations will provide clarity on the psychological, cultural and social characteristics of foreign consumers. An understanding of commonalities between cultures of different nations (and the differences thereof) will provide marketers with valuable information to sell products to consumers of other countries. A number of subculture characteristics influencing consumer behaviour can be identified. According to Assael (1995: 500), these characteristics are: • subcultural distinctiveness, implying that the more a subculture attempts to maintain a separate identity, the greater the potential influence thereof will be; • subcultural homogeneity, suggesting that a subculture with homogeneous values is more likely to influence its members; and Page 118 3 way in which they spend their time. Solomon (1996: 432) expands on this view by stating that social class does not only influence how much money is spent with a particular purchase but also how the money is spent. Assael (1995: 358) adds by stating that the social class influences consumers indirectly and is likely to indicate common values and matching purchasing patterns. A formal definition will provide greater clarity of what is implied when referring to social class. Schiffman & Kanuk (1997: 376) define social class as: " ... the division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either more or less status". Considering the definition, Assael (1995: 357) provides particular clarity on the hierarchy within social classes by defining it as: " ... the ranking of people in a society into a hierarchy of upper, middle, and lower level classes based on their power and prestige". As can be seen from the definitions above, social classes are grouped in a hierarchy ranging from high to low. Important to note is that different levels can be identified within the social class hierarchy (for example the upper-upper, upper­ middle, middle, working, lower, lower-lower, etc.) Engel et a\. (1995: 681) add to the above by explaining that status groups also identify social class. Status groups, as an integral part of social class, reflects a community's expectations for styles of living for each class as well as the positive or negative social appraisal of honour granted to each class. Schiffman & Kanuk (1997: 376) support this view by stating that status is frequently used in social class research to identify the relevant members of each social class in terms of specific status factors. These factors or variables determining a consumer's position in the social class hierarchy include, amongst others, income, occupation, education, possessions and personal performance. Income, together with occupation and education, are frequently used to identify and distinguish between different social classes. Hawkins et al. (1995: 130) Page 122 Chapter 3 explain that income is viewed from a purchasing power and status perspective and can be measured in a number of ways, including individual or family income, before or after tax deductions and salary or total income. Solomon (1996: 438) adds by stating that the identification of income within a social class is very important to marketers, since it identifies the groups with the greatest purchasing power. Although income is often perceived as the single most important factor in identifying social classes, Engel et al. (1995: 683) caution that marketers should not consider to equate social class with income. As an example, although a senior personnel officer may earn a higher income than a professor of history, the professor would most probably be ascribed to a higher social class. Schiffman & Kanuk (1997: 381), Engel et al. (1995: 683) and Hawkins et al. (1995: 130) suggest that occupation is the single most widely used factor in marketing to identify social class. The importance of occupation as an indicator of social class becomes clear when considering how often the question, "what do you do for a living?", is asked when people meet for the first time. The response to this question serves as a guide to infer about the life-style and, therefore, the social class of a person. Engel et al. (1995: 683) add that the work people perform greatly influences their life-styles and is the single most important basis for according honour, prestige and respect. From a marketing perspective, occupation often serves as a tool to define a market for products, for example Waterman pens for professionals or vacation resorts for executives and professionals. Education is a third indicator of social class, often an indicator of income and occupation. Schiffman & Kanuk (1997: 383-384) explain the relevance of examining education by stating that, generally speaking, the more educated a person is, the higher the probability will be that that person receives a higher income and has a high occupational status. Hawkins et aJ. (1995: 129) adds by stating that education influences an individual's values, tastes and the manner in which information is processed. Education does, however, not provide a Page 123 Chapter 3 complete understanding of buying patterns of consumers. For example, a graduate in political science may earn a total salary package of R 180 000 per annum whereas a marketing graduate, studying for the same length of time and with equal year's experience, could earn R 300 000. Although the level of education is the same (both obtaining a three-year degree), the buying power and patterns, status and social classes of the two graduates would most probably be different. Schiffman & Kanuk (1997: 385) expressed the opinion that possessions have been used by sociologists as an index of social class. Engel et al. (1995: 685) support this view by stating that social class can be derived by not only looking at the number of possessions but also the nature thereof. For example, the area in which an individual's house is situated (an upper residential area, for instance a golf estate, versus a block of flats) can give an indication of the social class. In addition to the house itself, the presence of a number of furniture items and accessories in an individual's house could provide an indication of the social class the person belongs to, e.g. wall-to-wall carpets versus Oriental rugs or Defy appliances versus AEG and Siemens appliances. From a consumer purchasing and need recognition point of view, consumers may often aspire to a higher social class by purchasing items perceived to be directed at the more affluent members of society. For example, a consumer in a lower social class will purchase clothes at boutiques and spend as much money as possible on a more expensive motor vehicle to create an image of higher status. A final factor, but by no means the final determinant, that may indicate social class is personal performance. Engel et al. (1995: 683) explain that the personal performance of an individual, when compared to others in the same occupation, may indicate the social class of a person. Examples of personal performance are where a certain medical professor is making the most progress in finding a cure for cancer or AIDS, or a stock-market broker achieving the best returns on investments for a considerable time period. In addition to status Page 124 3 Assael (1995: 528) clarify the involvement of a person in reference groups by distinguishing between membership and aspiration groups. Membership groups imply that the individual forms part of the group, for example the family or a science club. A person who would like to be part of a group, therefore not currently a member of the group, forms part of an aspiration group, for example a league rugby or soccer player that would like to be part of the National team. Assael (1995: 528) continues by stating that a reference group can also be viewed negatively. An individual belonging to a group may reject the values and behaviour of the group and its members, termed a disclaimant group for the individual. Secondly, an individual may regard membership to a specific group as something to be avoided, called a dissociative group. Peter & Olson (1994: 385) agree with this view by stating that dissociative reference groups embody undesirable meanings and will act as a negative reference group that an individual would avoid dealing with. Furthermore, primary and secondary reference groups, according to Engel et al. (1995: 717 - 718), as well as formal and informal groups can be distinguished. Primary groups, for example the family, refer to small groups that permit and facilitate unrestricted face-to-face interaction. A characteristic of primary groups is cohesiveness and motivated participation, resulting in similar beliefs and behaviour by the members of the group. Secondary groups, for example professional associations, are characterised by less comprehensive and more sporadic face-to-face interaction between members, therefore exerting less influences to shape thought and behaviour. Schiffman & Kanuk (1997: 320) explain that primary groups can be distinguished from secondary groups by considering both the perceived importance of the group to the individual and the frequency with which the individual interacts with the group. Schiffman & Kanuk (1997: 320 - 321) and Engel et al. (1995: 718) explain that formal reference groups are characterised by a defined and known Page 127 Chapter 3 membership list, a defined structure with specific roles and authority levels and specific goals. The influence of formal reference groups on individual behaviour depends on the motivation and willingness of the individual to accept and comply with the group's standards. Examples of formal groups include churches and community service organisations. Informal reference groups, characterised as being less formal and likely to be based on friendship, can have a strong impact on behaviour if individuals within the group are motivated by social acceptance. The influence is further strengthened by a high degree of intimate and face-to-face interaction between members. Schiffman & Kanuk (1997: 324) identify another possible reference group, indirect reference groups, by explaining them as groups with whom an individual does not have direct face-to-face contact, for example sport heroes, television personalities, politicians and movie stars. As will be noted from the discussion on different reference groups, individual behaviour and decision-making can be influenced by these groups. According to Engel et al. (1995: 719) three forms of reference group influences on consumer choice can be identified, namely normative compliance, value-expressive influences and informational influences. Normative compliance refers to the influence exerted by groups on individual behaviour through pressure for conformity and compliance. Schiffman & Kanuk (1997: 323) add by explaining that through normative compliance, general and broadly defined values and behaviour are transferred to members of the reference group. An example of normative compliance is the influence of the family on the behaviour of a child. Peter & Olson (1994: 384) add to the above, referring to utilitarian influences, by stating that changes in individual behaviour can occur when the reference group is perceived to be in charge of reward and punishment. Individuals will, therefore, comply with the guidelines and desires of Page 128 Chapter 3 a reference group if they believe the group can control rewards and punishment, when behaviour is visible to the group and when they are motivated to receive rewards or avoid punishment. Engel et at. (1995: 724) explain that value-expressive influences imply the need of an individual for psychological association with a group by accepting the norms, values and behaviour of the group, although there may not be any motivation to become a member of the group. The reasons for this can be attributed to the desire to be associated with people who are admired and respected and also to enhance image in the eyes of others. The final influence on consumer choice exerted by reference groups is information influence. Peter & Olson (1994: 385) state that informational influences imply that reference groups transmit information to members about other people or aspects of the environment, including products, services and retail outlets. Information can be shared directly through words or demonstration, for example showing how a specific coffee percolator works. It should be noted, in conclusion to the discussion on reference groups, that three factors determine the extent to which reference groups influence consumer behaviour. Schiffman & Kanuk (1997: 327) and Assael (1995: 527) list these influences as information and experience (the individual's attitude towards the group), credibility, attractiveness and power of the reference group (nature of the group) and conspicuousness of the product (nature of the product). An individual with firsthand experience with products and services or who can easily obtain information on it, is less likely to be influenced by the advice of others. On the other hand, a person without the necessary experience or finding it difficult to obtain relevant information will more likely consult others for advice. A reference group characterised by its credibility, attractiveness and power can directly influence individual member attitudes and behaviour, since Page 129 Chapter 3 Word-ot-mouth can be described as a communication tlow between opinion leaders and followers in either a trickle-down, two-step flow or multistage process. The trickle-down process, according to Engel et al. (1995: 726), is considered the oldest theory of personal influence and implies that lower classes imitate the behaviour of higher classes. Influence is, therefore, transmitted vertically through social classes, for example fashion and style. This process of information flow is rarely seen in economically developed countries, since the influence of the mass media and copying of fashion through mass merchandise place these kinds of items within the reach of the masses in a relatively short period of time. Trickle­ down influences are far more likely to occur between peers in modern society, referred to as homophilous influences (referring to information transmission between those who are similar in age, education, social class and other demographic characteristics). According to the two-step flow process, information and new ideas flow through mass media to opinion leaders, who pass the information to others and who in turn are more passive in information seeking through word-ot-mouth (Assael, 1995: 636 and Engel et aI., 1995: 727). Assael (1995: 636) adds by stating that the opinion leaders can be viewed as the intermediaries between the information source and other consumers, while the followers (those receiving the information from the opinion leaders) are viewed as passive recipients of information. In contrast to the views ot the two-step tlow process, multistage interaction, referred to by Assael (1995: 637) as multistep flow of communication, suggests that both the opinion leader and the follower are exposed to mass media. Through the information obtained from mass media, the seeker of information can approach someone else, rather than the opinion leader approaching the follower in an attempt to share information. Engel et al. (1995) add that the opinion leader rarely acts as mediator for the flow of information from mass Page 132 Chapter 3 media as with the two-step approach. Assael (1995: 637 - 638) supports this point of view by stating that, although the two-step flow is important in understanding the process of personal influence, it is not accurate in presenting the flow of information and influence for a number of reasons. Firstly, followers are not passive, since they may initiate requests for information and obtain the opinions of others. Secondly, opinion leaders are influenced by followers, with word-of-mouth influences being a two-directional flow between the transmitter and receiver. Finally, opinion leaders are not the only receivers of information, since followers are also influenced by advertising. In addition, opinion leaders may not control the flow of information, since others (called "gatekeepers") may perform the function of introducing ideas and information to 'the group without influencing the group. Schiffman & Kanuk (1997: 518) and Assael (1995: 638 - 639) conclude that the recognition in the multistage model, where opinion leaders and followers receive and transmit information, leads to four possibilities, namely a socially integrated consumer (both an opinion leader and an information seeker); a socially independent consumer (more an opinion leader than an information seeker); a socially dependent consumer (less of an opinion leader and more of an information seeker) and a SOCially isolated consumer (considered neither an opinion leader nor an information seeker). From the discussion on word-of-mouth influences above, the importance of the opinion leader frequently emerges as the individual most likely to influence others. The function and influence of the opinion leader will briefly be discussed below. Solomon (1996: 358) explains the opinion leader as a person who is able to frequently influence the attitudes and behaviour of others. Assael (1995: 652) continues by stating that opinion leaders tend to be product-specific, implying Page 133 Chapter 3 that an opinion leader for one category is unlikely to be inHuential across unrelated categories with the exception of closely-related categories. For example, an opinion leader with regard to ovens may carry the influence over to microwave ovens and loose-standing stoves. Assael (1995: 652) notes that although past research studies show that general opinion leaders do not exist, three categories of consumers suggest generalised influence across product categories, namely influencials, market mavens and surrogate consumers. Influencials refer to individuals that are active in public and community affairs. Assael (1995: 653) suggests that influencials tend to be of higher social class and are well educated. The influence of influencials tends to be important for products and services that depend on word-of-mouth recommendations. Assael (1995: 654) notes that market mavens tend to be closer to general gatekeepers than opinion leaders. Market mavens tend to hold information on many kinds of products, outlets to purchase and other information of markets. Solomon (1996: 361) supports the above by stating that market mavens tend to have a solid overall knowledge of how and where to purchase products. Schiffman & Kanuk (1997: 513) add an additional characteristic of market mavens by stating that they are keen shoppers and they enjoy sharing their purchasing experiences with others. They are, therefore, likely to influence and inform others by responding to requests from consumers regarding market information. Surrogate consumers assist other consumers by guiding and directing them with marketplace activities, for example tax consultants and financial advisers. Solomon (1996: 361) clarifies the above by stating that surrogate consumers are hired to provide input to purchase decisions. According to Assael (1995: 654) surrogate consumers, although not perceived as general opinion leaders, play an Page 134 Chapter 3 blood) as the family of orientation, whereas the family established by marriage is called the family of procreation. From a marketing perspective it is also important to consider the household and the influence thereof, since many people live together and although they are not married, still function as though they were. Engel et al. (1995: 743) refer to the household as people, related or unrelated, who occupy a housing unit. Schiffman & Kanuk (1995: 346) add to the above by stating that households may include individuals who are not related by blood, marriage or adoption and include unmarried couples, friends, room-mates or boarders. The influence of the family on individual members can be better understood by focusing on the sociological dimensions of families. According to Engel et at (1995: 744), three variables can be identified that can explain how families function, namely cohesion, adaptability and communication. The emotional bonding between family members is called cohesion. It reflects the sense of connectedness to or separateness from other members of the family. Adaptability refers to the ability of the family to change its structure, roles and rules in response to situational changes and developmental stress. The degree of adaptability re'flects the manner in which a family can meet challenges presented by changing needs. Communication portrays a facilitating dimension and is critical to movement on the other two dimensions. Positive communication skills, for example supportive comments and empathy, enable family members to share their changing needs as they relate to cohesion and adaptability, whereas negative communication skills (for example double messages and criticism) restrict the ability to share feelings and needs. Schiffman & Kanuk (1997: 347) support the above by adding four functions performed by the family relevant to consumer behaviour, namely economic well­ being, emotional support, suitable family life-style and socialisation of family members. Page 137 Chapter 3 Five different roles can be identified within the family when purchasing products or services (Engel et aI., 1995: 744 - 745). Before looking at the individual roles identified, it is important to note that two different kinds of role behaviour of the family can be identified, namely instrumental and expressive role behaviours. Instrumental roles, also termed functional or economic roles, involve performance, financial and functional attributes (for example the condition of purchase), whereas expressive roles imply the support of other family members in the decision-making process by expressing family norms and needs. As noted above, five individual roles can be identified in family purchases, namely the initiator or gatekeeper, influencer, decider, purchaser (or buyer) and user. Important to note is that although these different roles are distinguished, they can be performed by any member of the family (husband, wife or children) and can be different for every decision. Ward & Sturrock (1998: 327 - 336) add to the above by stating that the nature of the purchase can possibly affect the roles and approaches adopted by partners within a household. The five identified roles are briefly discussed below. The initiator or gatekeeper is the person in the family who thinks about purchasing new products and also gathers information to aid the decision process. The opinion of the influencer is sought with respect to the criteria that should be used for evaluation and also which products would most probably fit the criteria. The decider is responsible for the financial matters of the family and decides how and on which products or brands the family's money will be spent. The purchaser (buyer) is the person responsible for visiting the store, calling suppliers and physically purchasing the product and taking it home. Finally, the user is the person or people who consume the product. It is clear from the discussion above that marketers need to influence all the different role players in the family decision-making process, since different roles and influences can be portrayed by any member of the family at a given time. Page 138 Chapter 3 Schiffman & Kanuk (1997: 346) support this statement by viewing the family composition and structure as always being in transition. Needs can, therefore, be recognised by any member of the family, who will influence the decision­ making process directly or indirectly. 3.3.1.5 Situational influences Situational influences, as could be seen from Figure 3.4, form the final environmental influence affecting need recognition and the decision-making process and refer to influences that are specific to a time and place and are independent of the consumer and object characteristics (Engel et aI., 1995: 794). Three situational influences can be grouped into broad categories, namely communication, purchase and usage situations. A) Communication situation The communication situation refers to the setting to which the consumer is exposed, either personal or non-personal communication. Engel et al. (1995: 794) explain personal communication as conversations consumers may have with others, including other consumers and sales people. Non-personal communication refers to a broad spectrum of stimuli, including advertising and consumer-oriented programmes and publications. In the context of television advertising, for example, many situational influences can affect the effectiveness thereof. Firstly, the presence of other advertisements during message exposure may result in the advertisement receiving little or no attention. Important to note is that consumers often use commercial breaks to interact with others in their immediate surroundings or use the time to quickly get something to eat or drink or go to the toilet. Secondly, the pOSition of the advertisement during the commercial break can also affect the effectiveness, for example the first ad shown when the commercial break Page 139 3 Need recognition is often inspired by the usage situation. For example, while eating a curry dish in a restaurant, a consumer may recognise a need for a cold beverage. Product usage and the factors influencing it will be discussed in Section 3.6.1 (consumption) of this chapter. 3.3.2 Individual differences Section 3.3.1 considered environmental influences affecting consumer decision­ making and specifically need recognition. The objective of this sUb-section (individual differences) is to indicate the most important personal influences on consumer behaviour and consumer decision-making. The importance of considering individual differences from a consumer behaviour perspective is that no two individuals are created the same and will therefore be influenced in the same way. By discussing a number of differences, an understanding will be formed regarding the type of influences that will impact on the consumer choice process. As could be seen from Figure 3.4, individual differences comprises consumer resources, motivation and involvement, knowledge, attitudes and personality, values and life-style. 3.3.2.1 Consumer resources Consumers are concerned about their time and money, both resources that have to be considered in any purchase decision. According to Engel et al. (1995: 295) three categories of consumer resources can be identified, namely economic, temporal and cognitive resources. Page 142 Chapter 3 A) Economic resources Money most probably represents the most important variable, influencing whether or not people buy and what they buy. The amount of money available to consumers (including credit facilities) will determine which needs can be satisfied and to what extent. For example, the spending patterns of a person earning R 80 000 per annum versus one who earns R 350 000 will be totally different. The person with a higher income will most probably be able to spend more money on education, security, lUxury items and entertainment. Continuing with the example, the two individuals may both recognise the need to purchase a Hi-Fi and washing machine. The influence of more available financial resources to the one consumer will lead to the purchase of an AEG or Siemens washing machine and a Yamaha component Hi-Fi, whereas the consumer with less money available will purchase a Mercury washing machine and an all-in-one Aiwa Hi-Fi. From the example above can be clearly noted that economic resources (financial means) of the consumer play an extremely important role in decision-making. Once a need has been identified, the consumer first has to determine whether money or credit is available to purchase a product that will satisfy the need. Of equal importance to the consumer is to determine how much money can be spent, since that will determine what quality and brand will be purchased. From a marketing pOint of view, conSidering consumer behaviour, it is important to understand what comprises an individual's economic resources and how it is measured. Engel et at. (1995: 295) note that a criteria for measuring economic resources is that it should define a variable with the same meaning for everyone that will permit comparison over time and market segments. Three economic resources can be identified, namely income, wealth and credit. Page 143 Chapter 3 Schiffman & Kanuk (1997: 55) explain the importance of considering income as influence in consumer decision-making by stating that income indicates the ability (or inability) to pay for products and services. According to Engel et al. (1995: 296), income refers to money earned from salaries and wages, interest earned on investments and welfare payments. Important to note is that income refers to money available and not future available income, for example pension, unless pension payments are a source of income or the only income. From a consumer behaviour perspective it is important to consider (although the focus is on individual behaviour) the income of the family or household, since economic resources are often shared. For example, the income of one spouse may only be R 80 000. An immediate reaction is that such an individual will not be in a position to purchase lUxury items, such as a BMW Z3. The other spouse, however, may earn R 500 000, resulting in the spouse with less income being able to purchase the BMW Z3 if income is shared in the family. Engel et al. (1995: 311) explain that wealth, measured by net worth or assets, correlates with income. Wealthy individuals and families may recognise different needs (for example services, travel and investments) than people that are not considered wealthy. Schiffman & Kanuk (1997: 384) support this view by stating that the way in which consumers spend their money is often influenced by their values. Credit, the final economic resource category, extends the income resource for at least a short period of time. Engel et at. (1995: 312) list an important aspect of credit by stating that the use of credit actually reduces the ability to purchase products and services in the long run, since the cost of credit in the form of interest has to be subtracted from the consumer's income. Credit, however, forms an important influence in decision-making because it enables consumers to satisfy recognised needs without having the necessary funds readily available to pay for such purchases. Schiffman & Kanuk (1997: 399) support this view by Page 144 3 3.3.2.2 Motivation and involvement Engel et al. (1995: 404) explain that motivation occurs when an individual's system is activated or aroused with behaviour directed towards a desired goal. Engel et al. (1995: 404) continue by stating that motivation starts with need activation. As discussed with need recognition before, a need is activated when there is a discrepancy between the consumer's current state and some desired or preferred state. As the discrepancy increases, the outcome is activation of a condition of arousal referred to as drive. The urgency to respond increases as the drive gets stronger. Overt time, certain behaviour patterns prove more effective than others to satisfy needs, becoming wants. Solomon (1996: 126) clarifies motivation by explaining it as a process that causes people to behave the way they do. The motivation process therefore commences when a need is aroused that the consumer would like to satisfy. According to the motivation process, there is a state of tension that drives the consumer to attempt to eliminate the need once a need has been activated. The desired end state represents the goals of the consumer. From the discussion a number of concepts, such as tension, drive and need emerged that should be briefly described to form a better understanding of the relevance thereof in the motivation process. The working of these concepts in the motivation process can most probably best be shown graphically (see Figure 3.5). Page 147 a @ ee UNIVERSITEIT VAN PRETORIA UNIVERSITY OF PRETORIA YUNIBESITHI YA PRETORIA Chapter 3 FIGURE 3.5; THE MOTIVATION PROCESS As can be seen in Figure 3.5, the motivation process always commences with need recognition and ends with a goal, representing the consumer's desired end state. Solomon (1996: 126) distinguishes between two different categories of needs, namely utilitarian and hedonic needs. Utilitarian needs refer to functional or practical benefits, whereas hedonic needs imply experiential needs that involve emotional responses. When needs are recognised, the discrepancy between the consumer's actual and desired states creates tension. The urgency of the consumer to reduce the tension is determined by the magnitude of the tension, called “drive”. Solomon (1996: 126) continues by stating that consumer needs can be satisfied in a number of ways, influenced by amongst others the consumer's culture and experience. When all these factors are combined, a manifestation of a need is formed, called a “want”. The motivation process is completed when the goal is achieved, leading to reduced tension. Schiffman & Kanuk (1997: 83) define motivation as: “... the driving force within individuals that impels them to action”. This so-called driving force is a result of an unfulfilled need. Also, the specific course of action that consumers pursue Page 148 Chapter 3 together with the special goals are selected on the basis of cognition (their thinking process) and previous learning. Two terms used in the discussion above, needs and goals, need to be discussed briefly to provide a beUer understanding of their role in motivation. According to Schiffman & Kanuk (1997: 84) every individual has needs, comprising either innate or acquired needs. Innate needs refer to physiological or biogenic needs and include the need for air, food, water, shelter and sex. Since these needs are considered essential to sustain biological life, the biogenic needs are considered primary needs or motives. Acquired needs are learned in response to the individual's culture and environment, for example the need for power, prestige and self-esteem. Acquired needs are, therefore, generally psychological or psychogenic and are considered secondary needs or motives, resulting from the individual's subjective psychological state and from relationships with others. For example, an executive being transferred needs accommodation (a need for shelter - a primary need). The residence selected may, however, fulfil secondary needs when a residence is selected in a golf estate (need for prestige) with a large entertainment area (to fulfil social needs). Schiffman & Kanuk (1997: 84) describe goals as the sought-after results of motivated behaviour. It is therefore important to note that all behaviour is goal­ orientated. Two different kinds of goals are identified, namely generic and product-specific goals. Generic goals refer to the general categories of goals that consumers select to satisfy needs and product-specific goals imply specific labelled or branded products that can fulfil needs. Schiffman & Kanuk (1997: 85) continue by stating that for any need there are a number of different appropriate goals. The goals selected by consumers, Page 149 Chapter 3 3.3.2.3 Knowledge An understanding of consumer knowledge is important from a consumer decision-making point of view, since the consumer's knowledge determines what products are bought, how much will be spend on the purchase and where and when it will be purchased. It is important to define knowledge and distinguish between knowledge and consumer knowledge before discussing the content thereof. Engel et al. (1995: 337) define knowledge as: ..... the information stored within memory", whereas consumer knowledge, derived from knowledge, can be defined as: ..the subset of total information relevant to consumers functioning in the marketplace ... " (Engel et al. 1995: 337). Assael (1995: 310) adds to the above by stating that knowledge as a function organises and classifies information, therefore facilitating the consumer information-processing task. It can therefore be derived from the definitions above that, from a consumer behaviour point of view, knowledge can be applied to specific purchase decisions. Engel et al. (1995: 338) suggest that there are two basic types of knowledge, namely declarative and procedural knowledge. Declarative knowledge refers to known subjective facts, for example, eggs, water and flour are ingredients for making a cake. Peter & Olson (1994: 71) add to the above by stating that general knowledge (declarative knowledge) is concerned with consumer's interpretations of the enVironment, for example knowledge regarding a product category (compact discs and fast-food hamburger franchises), particular behaviour (ordering at restaurants and shopping in malls), other people (a friend or a sales person) or oneself (shy and honest). Page 152 Chapter 3 Two categories of declarative knowledge are distinguished, namely episodic and semantic knowledge. Episodic knowledge refers to information that is bound by the passage of time, whereas semantic knowledge refers to generalised knowledge that provides meaning to a person's wond and would be used, as an example, to describe a video machine. The understanding of how subjective facts can be used is called procedural knowledge, for example knowing how eggs, water and flour are combined in making a cake. Peter & Olson (2002: 56) clarify procedural knowledge by describing it as knowledge about how to do things. Important to note is that facts are seen as being subjective, since the knowledge held by consumers need not correspond to objective reality. For example, a consumer may consider price as an indicator for quality although it may not necessarily be related. Consumer knowledge can typically be viewed from three perspectives when considering consumer behaviour and decision-making, namely product, purchase and usage knowledge. According to Engel et al. (1995: 338), product knowledge includes a variety of different types of information, including awareness of the product category and brands within the category, product terminology, product attributes as well as features and beliefs regarding the product category and specific brands. Peter & Olson (1995: 82) add by noting four different levels of product knowledge, namely product class, product form, brands and models. In addition to the above, knowledge regarding price plays an important role in product knowledge, since marketers may be forced to reduce prices for their service offerings if consumers are price conscious and knowledgeable about prices charged in the market for competitive products. If consumers, however, are uninformed about relative price differences, marketers may exploit the ignorance by charging more for their products. Page 153 Purchase knowledge includes infonnation consumers have that is necessary to obtain products and includes knowledge of where and when to purchase. A major issue that needs to be addressed during decision-making is where to purchase products. Knowledge regarding where products can be purchased directly impacts on the decision-making process. A consumer typically has to choose between different stores that will sell the selected brand. For example, a consumer who has decided to purchase Revlon lipstick has to decide at which of the following competing stores the lipstick has to be purchased: Edgars or Red Square, Truworths, Clicks or Link Pharmacy. Once a store has been selected, the consumer needs to decide at which branch of the selected retail outlet should the lipstick be purchased. For example, the Edgars store in the local shopping mall may have a greater variety and friendlier shop assistants than the Edgars store in the centre of town. In addition to the store selection, purchase knowledge also includes infonnation regarding where in the specific store the selected product can be found. The decision when to purchase fonns part of purchase knowledge, since consumers may decide to prolong a purchase decision based on the expectation of a future sale of the chosen product. The decision when to purchase may also be a factor when new products are launched since some consumers may not purchase new products until the prices thereof have dropped. For example, a consumer may decide to purchase a DVD player but decides to wait until more competitors enter the market, most likely resulting in price reductions. The final perspective on consumer knowledge is that of usage knowledge, involving infonnation regarding how to use a product and what is required to actually use the product. For example, a consumer may know what a welding machine is used for but lacks the knowledge to actually operate it. The importance of considering consumer knowledge regarding the usage of a product is two-fold. Firstly, consumers will be less likely to purchase a product that they Page 154 Chapter 3 model (Schiffman & Kanuk, 1997: 239), will be briefly discussed below to form a better understanding of their influence on consumer behaviour and the way they influence consumer-decision making. Hawkins et al. (2001: 395) explain that the cognitive component consists of consumer beliefs about an object. Schiffman & Kanuk (1997: 236) clarify the term "object" by stating that it should be interpreted broadly to include specific consumption and marketing-related concepts, for example product, product category, brand, possessions, product use, advertisements, people, price and retailer. Consumers, therefore, have a number of beliefs regarding attitude objects. A consumer may have the following beliefs of a BMW 3301 for example. It has a powerful engine, it is competitively priced to similar products, it is relatively heavy on fuel and is manufactured by a world-class company. Schiffman & Kanuk (1997: 240) explain the affective component as comprising emotions and feelings of consumers regarding a particular product or brand. Assael (1995: 268) adds that the affective component can be viewed as one­ dimensional (as opposed to beliefs being multi-dimensional), where consumer evaluations of a brand can be measured by rating a brand as either "good" or "bad" or "most preferred" to "least preferred". For example, a consumer who states, "I like Coke", is expressing the result of an emotional or affective evaluation of the product. Hawkins et al. (2001: 398) note that since products are evaluated in the context of a specific situation, the affective reaction to a product (as well as the beliefs about a product) may change as the situation changes. For example, a consumer may believe that Coke has caffeine and that caffeine keeps one awake. Such beliefs may have a positive affective response when the consumer needs to stay awake while working on night duty. They may also have a Page 157 Chapter 3 negative response when the consumer would like something to drink at night that won't result in staying awake. Assael (1995: 268) continues by explaining that the conative component represents the consumers' tendency to act towards an object, generally measured in terms of intention to purchase. Hawkins et al. (2001: 399) explain the conative (behavioural) component by stating that a series of decisions to purchase, or not to purchase, a particular brand or to recommend that brand or other brands to others (for example family, friends and colleagues) would reflect the behavioural component of attitudes. From a marketing research pOint of view, the intention of consumers to purchase can, for example, be derived from some of the following statements portraying intentions: "I probably will purchase one", "I am uncertain whether I will buy one" and "I definitely will not buy one". Intention to purchase can also be established by posing a question to which consumers could respond. For example: "How likely are you to purchase a new cellular phone during the next month?" with consumers responding to one of the following measurements: "very likely", "likely", "unlikely" or "very unlikely". It is important to understand the way in which attitudes are formed (referred to as attitude formation). Schiffman & Kanuk (1997: 258) explain that attitude formation, from having no attitude towards an object (for example a notebook computer) to having some form of attitude towards an object (for example a notebook is useful when travelling), is a result of learning. Schiffman & Kanuk (1997: 258 - 259) note three possible learning theories relating to attitude formation, namely classical conditioning, instrumental conditioning and cognitive learning theory. Classical conditioning: Consumers often purchase new products that are associated with a brand name that is perceived to be favourable based on repeated satisfaction with other products produced by the same manufacturer. The brand name, therefore, represents the unconditioned stimulus that results in Page 158 Chapter 3 a favourable attitude (the unconditioned response) due to repetitive purchases and a positive reinforcement from purchasing the brand. Marketers often attempt to create a stimulus generalisation from the brand name to the new product, resulting in the consumer purchasing the new product based on a positive attitude towards the brand. The same principle is also followed by marketers whose products are endorsed by celebrities, where they attempt to create a positive attitude for the product based on the existing positive attitude towards the celebrity. For example, young tennis players may have a positive attitude towards Andre Agassi. Marketers may attempt to create the same positive attitude for a new tennis racquet by letting Andre Agassi endorse it. Instrumental conditioning: Attitudes sometimes follow only after purchase and consumption. For example, a consumer may purchase a product without having a prior attitude towards it (for example the only brand of toothpaste sold at a holiday resort). Consumers also purchase new products from product categories in which they have little involvement, for example a consumer starting a new hobby building and painting model aircraft may purchase a brand of paints without having an attitude towards the brand. If the consumer is satisfied with the performance of the purchased brand, a favourable attitude is likely to be developed for it. Cognitive learning theory: Consumers are likely to form attitudes (positive or negative) when solving a problem or satisfying a need on the basis of information exposure and their own knowledge and beliefs. For example, a consumer experiencing hay fever may learn that Bioforce AG sells a product that reduces the symptoms (without the accustomed drowsiness and side-effects of similar remedies). thereby creating a positive attitude towards Bioforce Echinaforce, especially if the consumer had a positive experience with other products sold by Bioforce AG. Page 159