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Complexity. The degree to which the innovation is difficult to understand or use. HDTVs
are not very complex. Therefore, as more programming became available and prices fell,
the rate of HDTV adoption increased faster than that of more complex innovations.

Divisibility. The degree to which the innovation may be tried on a limited basis. Early
HDTVs and HD cable and satellite systems were very expensive, which slowed the rate
of adoption. As prices fell, adoption rates increased.

Communicability. The degree to which the results of using the innovation can be observed
or described to others. Because HDTV lends itself to demonstration and description, its
use spread faster among consumers.

Other characteristics influence the rate of adoption, such as initial and ongoing costs,
risk and uncertainty, and social approval. The new product marketer must research all these
factors when developing the new product and its marketing program.

5 Reviewing the Concepts

OBJECTIVES REVIEW AND KEY TERMS

Objectives Review

The American consumer market consists of more than 317 mil- distinct values and lifestyles and can be based on anything from
lion people who consume over $15 trillion worth of goods and age to ethnicity. Many companies focus their marketing programs
services each year, making it one of the most attractive consumer on the special needs of certain cultural and subcultural segments,
markets in the world. Consumers vary greatly in terms of cultural, such as Hispanic American, African American, and Asian Ameri-
social, personal, and psychological makeup. Understanding how can consumers.
these differences affect consumer buying behavior is one of the
biggest challenges marketers face. Social factors also influence a buyer’s behavior. A person’s
reference groups—family, friends, social networks, professional
OBJECTIVE 1 Define the consumer market and associations—strongly affect product and brand choices. The
construct a simple model of consumer buyer’s age, life-cycle stage, occupation, economic circum-
buyer behavior. (pp 166–167) stances, personality, and other personal characteristics influence
his or her buying decisions. Consumer lifestyles—the whole pat-
The consumer market consists of all the individuals and house- tern of acting and interacting in the world—are also an impor-
holds that buy or acquire goods and services for personal con- tant influence on purchase decisions. Finally, consumer buying
sumption. The simplest model of consumer buyer behavior is the behavior is influenced by four major psychological factors: mo-
stimulus-response model. According to this model, marketing tivation, perception, learning, and beliefs and attitudes. Each of
stimuli (the four Ps) and other major forces (economic, techno- these factors provides a different perspective for understanding
logical, political, cultural) enter the consumer’s “black box” and the workings of the buyer’s black box.
produce certain responses. Once in the black box, these inputs
produce observable buyer responses, such as brand choice, OBJECTIVE 3 List and define the major types of
purchase location and timing, and brand engagement and rela- buying decision behavior and the stages
tionship behavior. in the buyer decision process. (pp 182–186)

OBJECTIVE 2 Name the four major factors that Buying behavior may vary greatly across different types of prod-
influence consumer buyer behavior. ucts and buying decisions. Consumers undertake complex buy-
ing behavior when they are highly involved in a purchase and
(pp 167–181) perceive significant differences among brands. Dissonance-
reducing behavior occurs when consumers are highly involved
Consumer buyer behavior is influenced by four key sets of buyer but see little difference among brands. Habitual buying behavior
characteristics: cultural, social, personal, and psychological. Al- occurs under conditions of low involvement and little significant
though many of these factors cannot be influenced by the mar- brand difference. In situations characterized by low involvement
keter, they can be useful in identifying interested buyers and but significant perceived brand differences, consumers engage in
shaping products and appeals to serve consumer needs better. variety-seeking buying behavior.
Culture is the most basic determinant of a person’s wants and
behavior. Subcultures are “cultures within cultures” that have When making a purchase, the buyer goes through a deci-
sion process consisting of need recognition, information search,