Consumer Behavir Complete

INTRODUCTORY: LECT 1
Sanjeev Kumar
WELCOME
Dear Students
Welcome to First class of Consumer behavior, one of the
major subject of marketing specialization
Consumer Behavior comprises of Five Units
Unit 1: Fundamentals of Consumer Behavior
Unit 2: Consumer as an Individual
Unit 3: Consumer in Social Settings
Unit 4: Consumer Decision Making Process
Unit 5:Consumer Psychographics and Research.
INTRODUCTORY CLASS
Recommended TEXT
Consumer Behavior : Schiffman, Kanuk and Kumar
Consumer Behavior: Loudon and Della Bitta
Consumer Behavior: Hawkins, Mothersbaugh and
Mookerjee
Evaluation System
Mid Term :30
End Term: 60
Internal : 10
INTRODUCTION:
Though similar, consumers are unique in themselves;
they have needs and wants which are varied and
diverse from one another
The marketer helps satisfy these needs and wants
through product and service offerings.
A comprehensive yet meticulous knowledge of
consumers and their consumption behavior is essential
for a firm to succeed.
Herein, lies the essence of Consumer Behavior, an
interdisciplinary subject, that emerged as a separate
field of study in the 1960s.
CONSUMER BEHAVIOR DEFINED

Consumer behavior reflects the totality of consumers
decisions with respect to the acquisition, usage, and
disposition of goods, services, activities, experiences, people,
and ideas by (human) decision-making units [over time].
DEFINITION OF CONSUMER BEHAVIOR

The behavior that consumers display in searching
for, purchasing, using, evalauting and disposing of
products and services that they expect will satisfy
their needs. Schiffman and Kanuk
..the decision process and physical activity
engaged in when evaluating, acquiring, using or
disposing of goods and services. - Loudon and
Bitta
The study of consumers as they exchange

something of value for a product or service that
satisfies their needs-- Wells and Prensky
DEFINITION OF CONSUMER BEHAVIOR

Those actions directly involved in obtaining,
consuming and disposing of products and
services including the decision processes that
precede and follow these actions. -Engel,
Blackwell, Miniard
the dynamic interaction of effect and
cognition, behavior and the environment by
which human beings conduct the exchange
aspects of their lives--American Marketing
Association
NATURE OF CONSUMER BEHAVIOR

The subject deals with issues related to cognition, affect
and behavior in consumption behaviors, against the
backdrop of individual and environmental determinants.
The subject can be studied at micro or macro
levels depending upon whether it is analyzed at the
individual level or at the group level.
The subject is interdisciplinary.
Consumer behavior is dynamic and interacting in nature.
Consumer
behavior
involves
the
process
of exchange between the buyer and the seller, mutually
beneficial for both.
As a field of study it is descriptive and also analytical/
interpretive
It is a science as well as an art.
SCOPE OF CONSUMER BEHAVIOR:

The study of consumer behavior deals with understanding
consumption patterns and behavior. It includes within its ambit the
answers to the following:
- What the consumers buy: goods and services
- Why they buy it: need and want
- When do they buy it: time: day, week, month, year,
occasions etc.
- Where they buy it: place
- How often they buy it: time interval
- How often they use it: frequency of use
The scope of consumer behavior includes not only the actual
buyer but also the various roles played by him/ different
individuals
BUYING ROLES
The scope of consumer behavior includes not only the actual buyer but
also the various roles played by him/ different individuals. There are
five buying roles, viz., Initiator, Influencer, Decider, User, Buyer.
The initiator is the person who identifies that there exists a need or want
the influencer is the one who influences the purchase decision, the actual
purchase activity and/or the use of the product or service;
the decider is the one who decides whether to buy, what to buy, when to
buy, from where to buy, and how to buy;
the buyer is the one who makes the actual purchase; and, the user is the
person (s) who use the product or service.
The user is the person (s) who use the product or service.
These five roles may be played by one person or by different persons.
A person may assume one or more of these roles. This would depend on
the product or service in question.
BUYING ROLES
A child goes to a kindergarten school. She comes
back home and asks her parents to buy her a set
of color pencils and crayons. Now the roles played
are:
1. Initiator: the child in nursery school
2. Influencer: a fellow classmate
3. Decider: the father or the mother
4. Buyer: the father or the mother
5. User: the child
WHY STUDY CONSUMER BEHAVIOR?

Understanding the reasons for studying a discipline enables one to better
appreciate its contributions; therefore, this section presents a justification
for the time and effort that the reader will expend in learning about
consumers.
Significance in Daily Lives
Application to Decision Making
Micro Perspective
Societal Perspective
Perceptions
Attitudes
Cultures
Lifestyles
Experience
CONSUMER BEHAVIOR AND MARKETING CONCEPT
Production
Concept
Product
Concept
Selling
Concept
Marketing
Concept
APPLICATION OF CONSUMER BEHAVIOR IN

MARKETING
An understanding of consumer behavior is necessary for long term success

and survival of a firm. It is viewed as the edifice of the marketing concept,
an important orientation in marketing management
An understanding of the study of consumer behavior helps formulate
appropriate marketing strategies for a firm keeping in view the consumer
and his environment.
It has a number of applications; the main application bases are as follows
Analyzing market opportunity
Segmentation, Targeting and Positioning
Marketing-mix decisions
Product
Price
Distribution
Promotion
Interdisciplinary Nature of Consumer Behavior
Consumer behavior was a relatively new field of study in the

mid- to late-1960s. Because it had no history or body of
research of its own, marketing theorists borrowed heavily from
concepts developed in other scientific disciplines.
The below mentioned discussion states how various disciplines
are interrelated to consumer behavior
Psychology: This includes the study of the individual as well as the
individual determinants in buying behavior
Sociology: includes the study of groups as well as the group dynamics
in buying behavior
Social psychology: This includes the study of how an individual
operates in group/groups
Anthropology: This is the influence of society on the individual viz.,
cultural and cross-cultural issues in buying behavior
Economics :This is the study of income and purchasing power, and its
impact on consumer behavior
THE IMPACT OF DIGITAL TECHNOLOGIES ON MARKETING STRATEGIES
Digital technologies allow much greater customization of products,

services, and promotional messages than older marketing tools.
They enable marketers to adapt the elements of the marketing mix to
consumers needs more quickly and efficiently, and to build and maintain
relationships with customers on a much greater scale.
Online communication and emerging digital technologies have
introduced several drastic changes into the business environment.
Consumers have more power than ever before.

Consumers have access to more information then ever before.
Marketers can offer more services and products than ever before.
The exchange between marketers and customers is increasingly interactive
and instantaneous.
Marketers can gather more information about consumers more quickly and
easily.
Impact reaches beyond the PC-based connection to the Web
Consumer Research
Sanjeev Kumar
Consumer Research
Consumer research, has developed as an extension of the field of
marketing research with more emphasis on the consumer behavioral
aspects. The initial thrust on studying consumer behaviour, by
marketers was done for two reasons.
To determine as to why consumers made the purchase decisions.
To understand how consumers would react to promotional
messages.
It was presumed that if they (the marketers) could have access to all
the information about the consumer decision making process, it will
help them in formulating various marketing strategies and in
developing appropriate promotional messages, which could induce
consumers to take a positive purchase decision.
Type of Consumer Research

Qualitative Research
Qualitative research findings enable marketers to gain insights into some of
the psychological aspects of consumer behaviour which will help in the
generation of new product ideas.
The research methodologies used by them are ethnography, semiotics and
in-depth interviews.
Ethnography - is related to cultural anthropology, where in the researchers
put themselves in the society under study so as to absorb all the
implications of the cultural practices.
Semiotics - The study of symbols and their interpretations or meanings.
In-depth Interviews- It is a method where the questions are asked to
obtain a gainful insight into the understanding of consumer behaviour
Type of Consumer Researches

Quantitative research
Quantitative research deals with numbers and answers questions

about how many, how much, or how often.
Quantitative-oriented survey research generally relies on closeended questions--questions that can be answered briefly, often with
a yes, a no, or a number.
It is descriptive in nature and is used by researcher to understand the
effects of various promotional inputs on the consumer, thus enabling
marketers to predict consumer behaviour.
Consumer Research Process
The consumer research process can be studied as a 6 staged

procedure. The various stages are not mutually exclusive; neither
are these essentially sequential. However, for purposes of ease,
such a procedure exists. The various stages of the research process
are as follows:
1.Developing objectives
2.Collecting Secondary Data: Internal and External
3. Designing primary research: Qualitative and Quantitative
4.Sampling & data collection
5.Data analysis and reporting research findings
6.Report Preparation
Consumer Research Process
Factor Influencing
Consumer Decision Making
Sanjeev Kumar
Factor Influencing Decision Making

Consumer purchases are influenced strongly by or there are four factors.
Cultural Factor
Social Factor
Personal Factor
Psychological Factor.

Culture Factor
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii)
Social Class
** Culture:-
The set of basic values perceptions, wants, and behaviors learned by a member of society
from family and other important institutions.
Culture is the most basic cause of a person's wants and behaviour.
Every group or society has a culture, and cultural influences on buying behaviour may
vary greatly from country to country.
Sub Culture : A group of people with shared value systems based on common life experiences and
situations.
Each culture contains smaller sub cultures a group of people with shared value system
based on common life experiences and situations. Sub culture includes nationalities,
religions, racial group and geographic regions. Many sub culture make up important
market segments and marketers often design products.

Social Class: *** Almost every society has some form of social structure, social classes are
society's relatively permanent and ordered divisions whose members share
similar values, interests and behaviour

Social Factors : A consumer's behaviour also is influenced by social factors, such as
the (i) Groups (ii) Family (iii) Roles and status
** Groups :-
Two or more people who interact to accomplish individual or mutual goals.
A person's behavious is influenced by many small groups. Groups that have a direct
influence and to which a person belongs are called membership groups.
Some are primary groups includes family, friends, neighbours and

coworkers. Some are secondary groups, which are more formal and
have less regular interaction. These includes organizations like
religious groups, professional association and trade unions.

Family: Family members can strongly influence buyer behaviour.
The family is the most important consumer buying organization society and it
has been researched extensively.
Marketers are interested in the roles, and influence of the husband, wife and
children on the purchase of different products and services.
Roles and Status : A person belongs to many groups, family, clubs, organizations.
The person's position in each group can be defined in terms of both role and status.
For example. M plays the role of father in his family, in his company, he plays the role
of manager, etc. A Role consists of the activities people are expected to perform
according to the persons around them.

Personal Factors : It includes
i) Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life
Style (v) Personality and self concept.
Age and Life cycle Stage:-
People changes the goods and services they buy over their lifetimes.
Tastes in food, clothes, furniture, and recreation are often age related. Buying is also
shaped by the stage of the family life cycle.
Occupation : A person's occupation affects the goods and services bought.
Blue collar workers tend to buy more rugged work clothes, whereas white-collar
workers buy more business suits. A Co. can even specialize in making products needed
by a given occupational group.
Thus, computer software companies will design different products for brand
managers, accountants, engineers, lawyers, and doctors.
Economic situation :A person's economic situation will affect product choice

Life Style :Life Style is a person's Pattern of living, understanding these forces involves
measuring consumer's major AIO dimensions.
i.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion, family
recreation) and opinions (about themselves, Business, Products)
Personality and Self concept : Each person's distinct personality influence his or her buying behaviour. Personality
refers to the unique psychological characteristics that lead to relatively consistent
and lasting responses to one's own environment.

Psychological Factors : It includes these Factors. i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and
attitudes
Motivation :- Motive (drive) a need that is sufficiently pressing to direct the
person to seek satisfaction of the need
Perception :- The process by which people select, Organize, and interpret
information to form a meaningful picture of the world.
Learning:- Changes in an individuals behaviour arising from experience.
Beliefs and attitudes :- o Belief is a descriptive thought that a person holds about
something
o Attitude, a Person's consistently favourable or unfavourable evaluations,
feelings, and tendencies towards an object or idea
Thank You

Sanjeev Kumar

The consumers decision to purchase or not to
purchase a product or service is an important
moment for most marketers.
It can signify whether a marketing strategy has
been wise, insightful, and effective, or whether it
was poorly planned and missed the mark.
Thus, marketers are particularly interested in the
consumers decision-making process.
DECISION
In the most general terms, a decision is the selection of an option from
two or more alternative choices.
When a person has a choice between making a purchase and not making a
purchase, a choice between brand X and brand Y, that person is in a
position to make a decision.
If the consumer has no alternatives from which to choose and is literally
forced to make a particular purchase or take a particular action (e.g., use a
prescribed medication), then this does not constitute a decision and is
commonly referred to as a Hobsons choice.
Types of Decision Making
Decisions Making can be of two types,

a) Programmed decision making and b) Non-programmed
decision making
Programmed decision making
This is applied for problems that are routine and regular
Such decisions are made without much thought.
With respect to marketing, these are decisions related to
day to day purchases or convenience and shopping goods;
these are generally low involvement purchases.
Examples: Purchases made for staples, toiletries etc.
Type of Decision Making

Non-programmed decision making
This is applied for problems that arise suddenly and are unique or
novel.
As the problem is sudden and novel, it is complex and requires a lot
of information gathering, deliberation and thought.
With respect to marketing, these are decisions related to infrequent
purchases or specialty goods and emergency goods; these are high
involvement purchases.
Examples: Purchases made for laptops, real estate etc
Levels of Consumer Decision-Making:
Not all consumer decision-making situations receive (or

require) the same degree of information search.
If all purchase decisions required extensive effort, then
consumer decision-making would be an exhausting process
that left little time for anything else.
One way to characterize consumer decision making is on
an effort continuum, ranging from very low to very high.
We can distinguish three specific levels of consumer
decision-making on continuum level:
Levels of Consumer Decision-Making

Extensive Problem solving: When consumers have no established criteria
for evaluating a product category or specific brands in that category or have
not narrowed the number of brands they will consider to a small
manageable subset, their decision making efforts can be classified as
extensive problem solving
Limited Problem Solving: At this level of problem solving, consumers
already have established the basic criteria for evaluating the product
category and the various brands in the category. However, they have not
fully established preferences concerning a select group of brands.
Routinised Response Behavior: At this level, consumers have experience
with the product category and a well-established set of criteria with which
to evaluate the brands they are considering .
Levels of Consumer Decision-Making

Another and more complete way to think about consumer decision making
considers two separate factors: processing effort and involvement.
The first factor, processing effort, represents a continuum from automatic
to systematic processing.
At one extreme, consumers may process no information and simply
respond intuitively. At the other extreme, consumers gather and evaluate a
great deal of product information prior to choice.
The second dimension, involvement, represents a continuum ranging from
decisions that entail low levels of consumer involvement or personal
relevance to decisions that elicit much higher levels of interest and
concern.
It may be helpful to think of processing effort as primarily cognitive or
thinking-oriented and involvement as more affective or feeling-oriented.
Type of Consumer Decision Making
Type of Consumer Decision Making

Brand Laziness :When both involvement and information processing are
low (Figure 1, quadrant 1), consumers typically make choices as a matter of
habit, requiring little effort. This is referred to as brand laziness
In contrast, brand loyalty involves intrinsic commitment to a brand based
on the benefits or values it provides consumers.
Low levels of interest, consumers limited past experience with brands
requires moderate to high levels of information processing. We refer to this
type of decision as variety seeking.
The fourth type of decision combines high involvement with high levels of
information processing. Represented in quadrant 4 of Figures 1 and 2, this
is referred to as problem solving. Decision making of this type typically
involves unfamiliar, expensive products that are purchased infrequently.
Models of Consumers: Four Views of Consumer Decision Making

The term models of consumers refer to a general view or perspective as
to how and why individuals behave as they do. Four views will be
examined:
An Economic View
A Passive View
A Cognitive View
An Emotional View
Stages in Consumer Decision Making

Process
Marketers are interested in consumers purchase behaviors, i.e., the decision
making process. The consumers decision making is a choice amongst
various alternatives that address problematic issues like:
- what to buy; - where to buy; - when to buy;
- how to buy; - how much to buy.
Consumer decision making involves a continuous flow of interactions among
environmental factors, cognitive and affective processes and behavioral
actions.
A consumers decisions are based on knowledge, affect and behavior related
to the marketing mix.

Process
There are five stages in the consumer decision making process. These
are
Need recognition/Problem recognition
Pre-purchase information search
Evaluation of alternatives
Purchase decision
Post-purchase outcome and reactions

Process
1. Need recognition/Problem recognition:
This is a stage of perceiving a deficiency/need.
A need could be triggered off by an internal stimulus or an
external stimulus.
For example, a person is thirsty and feels like having a cola drink.
The stimulus is internal. On the other hand, while walking across
the street, he sees a hoarding which shows a person having a
frosted, chilled cola, and he too desires to have the same, the
need is said to have been stimulated by an external stimuli.
A need or problem recognition could be simple or complex

Process
A need or problem recognition could result when:
a) The Actual State changes (AS type):- the product is failing, or the
consumer is running short of it;
Example: A product stops functioning and the customer needs a
replacement; e.g.. A refrigerator; Samsung One door: Standard;
b) The Desired State changing (DS type):
- there is an imbalance between the actual state and the desired state
-another product seems better and superior to the one that is being currently used;
-consumers who react in such situations are called DS Types.
Example: The product is functioning properly; but the consumer wants to buy an upgraded
model; eg., The refrigerator is functioning properly; However, the customer wants to buy
another one which has more features and is more modern; Samsung Two doors

Process
2: Pre purchase Information Search :
After a need is recognized, the consumer goes for an information search, so as to

be able to make the right purchase decision. He gathers information about the:
(i) Product category and the variations
(ii) Various alternatives
(iii) Various brands.
The amount of information a consumer will gather depends on the following:
the consumer: demographics (age, gender, education),

psychographics (learning, attitudes, involvement, personality type)
product category: differentiation and alternative brands available,
risk, price, social visibility and acceptance of the product.
Situation: time available at hand, first time purchase, quantity of
information required, availability of information.

Process
Types of Search Activity:
Specific: This type of search activity is specific to the problem and/
immediate purchase; it is spurred as the need arises, and the consumer
actively seeks information.
Ongoing: Here the search activity is a gradual process that could span
over time
Incidental: This is a byproduct of another search activity or
experiences. Consumers absorb information from their day to day
routine activities and experiences.

Process
. Information Sources:
The information sources are of two types:
Internal sources: This includes the consumer and his self. He recalls information that is
stored in his memory (comprising information gathered and stored, as well as his
experiences, direct and indirect). Internal sources seem sufficient when:
- it is a routine purchase
- the product is of low involvement
ii) External sources: Here the consumer seeks information from the external
environment. External sources of information include:
-Interpersonal communication (family, friends, work peers, opinion leaders etc.)
-Marketing communication or commercial information (advertisements, salespeople,
company websites, magazines etc.)

Process
Evaluation of alternatives:
Once the consumer has gathered information and identified the
alternatives, he compares the different alternatives available on
certain criteria. This involves:
Generation of choice alternatives;
Identification of evaluative criteria: Attributes and Benefits;
Application of Decision Rules.

Process
Generation of choice alternatives:
While generation of alternatives, a consumer moves from an evoked set towards the
choice set.
- Evoked set/Consideration set: This is the set of alternatives that he actively

considers while making a purchase decision; these exist either in his memory
or feature prominently in the environment. The consumer perceives them to
be acceptable.
- Inept set: These are those alternatives from the evoked set that the
consumer excludes from further consideration, as he perceives them to be
inferior and unacceptable.
-Inert set: These are those alternatives from the evoked set that the
consumer excludes from further consideration, as he is indifferent towards
them and perceives them as ones without much advantages or benefits.
- Choice set: This comprises the final set of one or two brands from which he
finally decides.

Process
Identification of Evaluative Criteria: Attributes and Benefits:
These are objective and subjective parameters of the brand that the
consumer regards as important, and uses as standards to discriminate
among the various alternatives.
They are features that a consumer considers in choosing among
alternatives; these could be functional/utilitarian in nature (benefits,
attributes, features), or subjective/emotional/hedonic (emotions,
prestige etc.). The major evaluative criteria are:
- Economic: Price, Value (Product Attributes, Brand image,
Evaluation of Quality, Price, & Features).
- Behavioral: Need/motivation, Personality, self-concept and selfimage, Lifestyle etc.
- Social influences: Group influences, environmental issues etc.

Process
Application of Decision Rules to make a final choice amongst alternatives:
The consumer uses certain decision rules. The decision rules help a consumer
simplify the decision process; the various evaluative criteria are structured
and integrated so as to simplify the evaluation process.
There can be two kinds of Decision Rules, viz.,
Compensatory rules and
Non-compensatory rules.

Process
Compensatory rules: Under compensatory rules, the various evaluative
criteria are listed as attributes. These attributes are scored and rated for the
various alternative brands.
A lower rating on an attribute may be offset by a higher rating on another;
i.e. a higher rating on one attribute would compensate for a lower rating on
another
Compensatory rules could assume two forms: simple and weighted.
Simple summated: The attributes are rated for each brand and the scores
are totaled.
Weighted: The attributes are first given weights relatively based on the
level of importance; thereafter, the attributes are rated and finally scored
after multiplication with the weights. The weighted scores are then totaled.

Process
Non-Compensatory rules: Here, a negative evaluation of any one attribute
eliminates the brand from consideration.
Conjunctive rule: A minimally acceptable cut off point is established for each
attribute. The brands are evaluated, and, the brand that falls below the minimally
acceptable limit on any of the attributes is eliminated/rejected.
Disjunctive rule: a minimally acceptable cut off point is established for each
attribute. The brands are evaluated, and, the brand that falls above the cutoff
point on any of the attributes is selected.
Lexicographic rule: The various attributes are ranked in terms of perceived
importance. First, the brands are evaluated on the attribute that is considered the
most important. If a brand ranks considerably high than the others on this
attribute, it is selected. In case the scores are competitive, the process may be
repeated with the attribute considered next in importance.

Process
Purchase decision
After the consumer has evaluated the various alternatives, he selects a particular
brand. Consumer purchases may be trials/first purchases or repeat purchases.
Trials/First purchase: Trials could be elicited through market testing, or through
promotional tactics such as free samples, coupons, etc.
Repeat purchases: If the consumer is satisfied, he would buy the brand again.
Repeat purchases lead to brand loyalty
It is noteworthy that a purchase intention (desire to buy the most preferred brand)
may not always result in a purchase decision in favor of the brand; it could get
moderated by
(1) Attitudes of others; and (2) Unexpected situational factors.

Process
Post-purchase outcome and reactions
The post purchase outcome and reactions contains two stages;
Stage I comprises Post purchase Cognitive Dissonance: This is a
feeling of tension and anxiety that a consumer experiences after the
purchase of a product. The consumer begins to have a feeling of
uncertainty with respect the performance of the product and begins to
doubt his purchase decision whether the decision was the right one?.
He begins to ask himself the following questions:
a) Have I made the right choice?
b) Have I purchased the right brand?
c) Have I got value for money?

Process
Cognitive dissonance generally occurs in cases where:
(i) the decision making and purchase relates to a high involvement product;
(ii) the consumer cannot return the product;
(iii) the various alternatives have desirable features and are all comparable;
(iv) the alternatives are also unique in some way or the other.
Consumers try to reduce this dissonance by:
(i) Gaining more product information; (ii) Discussing with other satisfied
customers who have bought the same product/brand; (iii) Going back to the
dealer and asking for reassurances.

Process
Stage II: Product usage and reaction
After the purchase, the consumer uses the product and reevaluates the
chosen alternative in light of its performance viz. a viz. the expectations.
This phase is significant as it
acts as an experience and gets stored in the memory;
affects future purchase decisions;
acts as a feedback. There could be three situations that can arise:

Process
Performance meets expectations: This leads to a neutral feeling;
Customer may think of more suitable alternatives next time.
-Performance exceeds expectations: The customer is satisfied and
this leads to a positive feeling. He would tend to repeat purchase and
it would lead to brand loyalty. He would also spread positive word of
mouth.
-Performance falls short of expectations: Here, the customer is
dissatisfied and this leads to a negative feeling. The customer would
search for other alternatives, express grievances, spread negative
word of mouth and may even resort to legal action.

Process
It is important to note that the five staged decision making process is
not so simple; it is complex.
The decision making process is an interplay of reactions amongst a
consumer and his cognition, affect and behavior on the one hand, as
well as the environmental forces on the other hand.
Further, the procedure may not always follow a linear order, and
the decision making may not always proceed through all the five
stages; it would vary across
the nature of the product (high and low involvement);
the purchase situation (emergency or planned or routine);
the personal characteristics of the consumer; and
the type of problem solving (EPS, LPS and RPS).
CONSUMER MOTIVATION
SANJEEV KUMAR
CONSUMER MOTIVATION
While making decisions related to purchase activity, consumers vary
amongst each other because the dynamics that operate while consumer
decision making are significantly different
The consumer decision making process is impacted by individual
determinants (psychological influences)and, group influences (sociological
influences)
The psychological influences include the forces that impact consumer
decision making; these are (i) Consumers Needs & Motivation, Emotions
and Mood, Consumer Involvement; (ii) Consumer Learning; (iii) Personality,
Self-concept and Self-image; (iv) Consumer Perception, Risk and Imagery;
(v) Consumer Attitude; and (vi) Consumer Communication.
In this lecture we will study consumer motivation.
The Motivation Process: A Psychological Perspective
Motivation is the driving force that impels people to act. It represents

the reasons one has for acting or behaving in a particular way.
Needs and Goals

'Needs' can be defined as a felt state of deprivation of some basic
satisfaction.
Every person has needs.
Some of these needs are innate and are born with individuals and
some are acquired.
Innate needs are physiological or biogenic, and include food, water, air,
clothing, shelter, and sex. These needs (innate) are considered primary needs or
motives.
Acquired needs are needs that we learn in response to our culture or
environment and include the need for self-esteem, prestige, affection, power,
and learning.
Needs and Goals

Needs may also be classified even more basically utilitarian or hedonic.
A consumer's utilitarian needs focus on some practical
benefits and are identified with product attributes that
define product performance such as economy or durability
etc.
Hedonic needs relate to achieving pleasure from the
consumption of a product or service and are often
associated with emotions or fantasies.
Needs and Goal

Goals are the sought-after results of motivated behavior, and all
human behavior is goal oriented.
There are two types of goals:
Generic goals are outcomes that consumers seek in order to
satisfy physiological and psychological needs.
Product-specific goals are outcomes that consumers seek by
using a given product or service.
When a consumer states they want a pair of jeans, they have
stated a generic goal. When they announce they really want a
pair of Calvin Klein jeans, then they have stated productspecific goals.
Application: Goals
Discussion Questions
What is the generic goal?
What is the product-specific
goal?
Selecting Goals
For a given need choice of the goal to satisfy the need will
depend on a number of things such as:
personal experience,
social and cultural norms & values
personal norms and values
physical and intellectual capacity,
accessibility of goal
self image
Motives and Motivation

Several schemes of classifying motives have been
suggested which group motives on the basis of one unique
characteristic of interest.
Motives can be rational as well as emotional.
According to another scheme, motives are classified as
conscious versus unconscious
Motivation can take a positive as well as a negative form
and correspondingly a positive and negative direction
respectively.
Motivational Conflicts
A consumer may often find himself amidst conflicting needs

and goals at the same time or at various times, and this leads to
what is referred to as an intra individual conflict, something that
the person feels within himself.
Conflicting goals could lead to three types of intra individual
conflict:
Approach-approach conflict :to make a choice between two
desirable alternatives each of which are equally attractive
Approach-avoidance conflict :Here the consumer is faced with
an option that has both a positive and a negative to it
Avoidance-avoidance conflict :conflict involves choosing
between two equally unattractive and undesirable alternatives
The Dynamic Characteristics of Motivation
Motivation is a highly dynamic process. It continuously

changes, to adapt to the changing life experiences of the
individual. Under the dynamic constructs of motivation
there are broadly three aspects which will be discussed:
Role of needs & goals to adapt to the changes in
motivation
Frustration and defence mechanism in the needs satisfaction chain
Arousal of motive and motivation
Role of Needs & Goals to Adapt to the

Change in an Individual's Motivation
Whenever there are changes in an individual's physical condition,
environment (or situation), experience etc., his or her needs & goals
will change accordingly.
Some of the characteristic features of needs & goals are:
Needs are never fully satisfied
New needs emerge as old needs are satisfied
Success and failure influence goals
Substitute goals
Frustration and Defence Mechanism in the

Needs-Satisfaction Chain
Frustration is the feeling experienced by an individual when he or she fails
to achieve a goal. There are various reasons which come in the individuals
way in the attainment of a goal.
While some may go for substitute goals, others may adopt a defence
mechanism like behaviour to protect their self-image and self-esteem.
While taking a defensive reaction to frustration the individual may react in
different ways.
The defence mechanism may be in the form of aggression, compromise or
rationalisation regression, withdrawal, projection autism identification or
repression.
Frustration and Defence Mechanism in the NeedsSatisfaction Chain

Aggression: Individuals while trying to cope up with frustration may resort to
aggressive behaviour as an attempt to protect their self-esteem.
Rationalisation or compromise: At times individuals try to rationalize by inventing
plausible reasons for not being able to achieve their goal. He will be ready to
compromise (with himself) by self-convincing that it (goal) is not really worth
pursuing.
Regression: Sometimes people react to frustrating situations with childish behaviour
Withdrawal: A person may try to handle frustration by slowly withdrawing from the
situation. A person who was expecting a promotion to a higher status and being
denied the same will put in his papers and quit the organisation.
Frustration and Defence Mechanism in the NeedsSatisfaction Chain

Projection: Under this an individual may re-define a frustrating situation by projecting
blame (or putting blame) for his or her draw back or inabilities on other persons or object.
Autism: Autism or autistic thinking refers to fictitious thinking evolved around needs and
emotions with very less association with reality
Identification: People have been found to be resolving their feelings of frustration by
subconsciously identifying themselves with other persons or situations whom they
consider relevant
Repression: Another method adopted by individuals as a defence mechanism to
frustration is by repressing their unsatisfied needs. That is, they may try to forget the
need or force their need out of their minds.
Sublimation: Substitute socially acceptable behavior for unacceptable impulses
Which Defense Mechanism is used?
Arousal of Motives and Motivations
An individual's specific needs are dormant most of the time. The

arousal of any particular need (or needs) may be as a result of an
individuals:
Internal stimuli (Physiological, emotional or cognitive
processes).
External environment. (Environmental)..
Theories of Motivation
There are many motivation theories yet none ot them explains all
aspects of motivation. Two major theories are discussed here
McClelland's Theory of Trio of needs and Maslow's Hierarchy of
Needs theory.
McClelland's Theory of Trio of Needs :McClelland has given
simplistic way of classifying the needs in three categories.
Needs for power
Need for affiliation
Need for achievement:
Trio of Needs
Which of the trio of

needs does the ad
appeal to?
Maslow's Hierarchy of Needs Theory
The hierarchy of needs proposed by Abraham H Maslow is perhaps the best

known.
Maslow classified needs into five groupings, ranking in order of importance from
low-level (biogenic) needs to higher-level (psychogenic) needs and suggested
the degree to which each would influence human behaviour.
According to this scheme, individuals strive to fulfil lower-level needs first,
before, higher-level needs become active.
The lowest level unfulfilled need of an individual serves to motivate her/his
behaviour.
When this need is fairly satisfied, a new higher-order need becomes active and
motivates the individual. If a lower-order need again becomes active due to
renewed deprivation, it may temporarily become more active again.
Maslows Hierarchy of Needs
To Which of Maslows Needs Does This Ad

Appeal?

Appeal?

Appeal?

Appeal?
What are three types of products related to more then one level of
Maslows Hierarchy of Needs?
For each type of product, consider two brands. How do marketers
attempt to differentiate their product from the competition?
THANK YOU
Consumer Perception
Sanjeev Kumar
Perception:Defination
Individuals act and react on the basis of their perceptions, not on the basis
of objective reality.
Therefore, consumers perceptions are more important to a marketer than
their knowledge of objective reality because people make decisions based
on their perceptions.
This perception may be based on sensations from the outside world which
in turn may be influenced by past experience or learning, expectations,
fantasies beliefs, values, personality etc.
Thus, for having a better understanding of the buying behaviour of
individuals marketers must examine the importance of perception and its
integration with the related concepts.
Consumer Perception
Perception is the process by which an individual
selects, organizes, and interprets stimuli into a
meaningful and coherent picture of the world.
. It can be described as how we see the world around
us.
Perception is determined by both physiological and
psychological factors.
This is because perception is developed based on
previous experience (learning), feeling and motives.
Elements of Perception
Sensation is the immediate and direct response of the sensory
organs to stimuli.
A stimulus may be any unit of input to any of these senses. Examples
of stimuli include products, packages, brand names, advertisements
and commercials.
Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
Elements of Perception: Absolute Threshold :

This is the minimum level of marketing stimuli that is required to get
noticed by the receptors of the customers.
In other words, below this level individual receptors would fail to
recognize the stimuli or sensation.
This is not only dependent on the stimuli but also on the capability of
the receptors.
For example, the distance at which a driver can note a specific
billboard on a highway is that individuals absolute threshold.
After an hour of driving any it is likely that no bill board will make
impression because we get used to it.
Getting used to in field of perception refers to adaptation.
Sensory adaptation is a problem that causes many advertisers to
change their advertising campaigns regularly.
Elements of Perception: Differential

Threshold
Differential threshold is the smallest detectable difference between two
values of the same stimulus. This is also referred as JND (Just Noticeable
Difference).
A German scientist of nineteenth-century, Ernst Weber discovered that
the just noticeable difference between two stimuli was an amount
relative to the intensity of the initial stimulus.
The more intense the stimulus, the more it will need to change before we
notice the difference.
If you are lifting ten pounds, you only need a little more weight added on
to notice the difference (1 pound to be exact). But if you were lifting 100
pounds, you will need more weight to notice the difference (10 pounds
Elements of Perception: Subliminal

Perception
When customers are not consciously aware that they are
receiving marketing stimuli yet they get influenced. However,
level of stimuli remains above the absolute threshold level.
That is, customers receptors receive the stimuli without
being consciously aware that they are doing so. This process is
called as subliminal perception.
In simple words, It is the process of being exposed to and
becoming aware of stimuli of which you did not consciously
pay attention.
Discussion Question
How might a cereal manufacturer
such as Kelloggs use the j.n.d. for
Frosted Flakes in terms of:
Product decisions
Packaging decisions
Advertising decisions
Sales promotion decisions
Dynamics of Perception
Human beings are constantly bombarded with stimuli during every minute and every hour
of every day.
Perception is not a function of sensory input alone; rather, perception is the result of two
different kinds of Physical stimuli from the outside environment and internal stimuli based
on expectations, motives, and learning are based on previous experiences.
Because each person is a unique individual, with unique experiences, needs, wants, desires,
and expectations, it follows that each individuals perceptions are also unique.
There are three aspects to perceptionselection, organization, and interpretation of
stimuli.
Individuals are very selective as to which stimuli they recognize.
They subconsciously organize the stimuli they do recognize according to widely held psychological
principles.
They interpret such stimuli (i.e., they give meaning to them) subjectively in accordance with their
needs, expectations, and experiences.
Perceptual Selection
Consumers subconsciously exercise selectivity as to the stimuli they
perceive. This depends on two major factors in addition to the nature
of the stimulus itself first consumers previous experience as it affects
their expectations and second on their motives at the time.
Each of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Perceptual Selection
Nature of the stimulus
Marketing stimuli include an enormous number of variables that affect the
consumers perception, such as nature of the product, its physical attributes,
the package design, the brand name, the advertisements and commercials
including copy claims, choice and sex of model, size of ad, topography, the
position of print ad or a commercial, and the editorial environment.
Expectations
People usually see what they expect to see, and what they expect to see is
usually based on familiarity. Previous experience, or preconditioned set. In a
marketing context, people tend to perceive products and product attributes
according to their own expectations.
Motives
People tend to perceive the things they need or want; the stronger the need
the greater the tendency to ignore unrelated stimuli in the environment. In
general, there is heightened awareness of stimuli that are relevant to ones
needs and interests and a decreased awareness of stimuli that are irrelevant
to those needs.
External factors
External factors that may effect stimuli
Size - A larger size makes it more likely an object will be selected.
Intensity - Greater intensity, in brightness, for example, also increases
perceptual selection.
Contrast - When a perception stands clearly out against a background, there
is a greater likelihood of selection.
Motion - A moving perception is more likely to be selected.
Repetition - Repetition increases perceptual selection.
Novelty and familiarity - Both of these increase selection. When a
perception is new, it stands out in a person's experience. When it is familiar, it
is likely to be selected because of this familiarity.
Selective perception
The consumers selection of stimuli from the environment is based on the interactions of
expectations and motives with the stimulus itself. These factors give rise to four important
concepts concerning perception.
Selective Exposure : Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening ones. They also
selectively expose themselves to advertisements that reassure them of the wisdom of their
purchase decisions.
Selective attention: Consumers exercise a great deal of selectivity in terms of the attention
they give to commercial stimuli. They have a heightened awareness of stimuli that meet
their needs or interests and minimal awareness of stimuli irrelevant to their needs. Thus,
consumers are likely to note ads for products that would satisfy their needs and disregard
those in which they have no interest.
Selective perception
Perceptual Defense
Consumers subconsciously screen out stimuli that they find psychologically threatening,
even though exposure has already taken place. Thus, threatening or otherwise
damaging stimuli are less likely to be consciously perceived than are neutral stimuli at
the same level of exposure.
Perceptual Blocking
Consumers protect themselves from being bombarded with stimuli by simply tuning
out blocking such stimuli from conscious awareness. They do so out of self
protecting because of the visually overwhelming nature of the world in which we live.
The popularity of such devices as TiVo and Replay TV, which enable viewers to skip over
TV commercials with great ease, is, in part, a result of perceptual blocking.
Perceptual Organization
People do not experience the numerous stimuli they select from the
environment as separate and discrete sensations. People tend to
organize stimuli into groups and perceive them as unified wholes.
This methods of perceptual organization simplifies file considerably
for the individual. This principle of perceptual organization is referred
as Gestalt psychology. Gestalt is a German word and means pattern
or configuration.
Three of the most basic principles of perceptual organization are
figure and ground, grouping, and closure.
Perceptual Organization
Figure and ground refers to the interrelationship between the stimulus itself
(i.e., figure) and the environment or context within which it appears (i.e.,
ground). Contrast is an application of figure and ground. Product placement
tries to obscure the difference between figure and ground.
Grouping refers to peoples instinctive tendency to group stimuli together so
that they become a unified picture or impression. The perception of stimuli as
groups or chunks of information, rather than as discrete bits of information,
facilitates memory and recall.
Closure is peoples instinct to organize pieces of sensory input into a
complete image or feeling. Individuals need closure, which means that if they
perceive a stimulus as incomplete, they are compelled to figure out its
complete meaning. If a message they receive is incomplete, they consciously
or subconsciously fill in the missing pieces (like answering the questions in the
ad shown in Figure 4.10).
Figure and Ground
Grouping
Perceptual Interpretation
Individuals, in their own unique manner, interpret the stimuli. As the old
saying goes, a person sees what he/she expects to see,
Interpretation of stimuli by individuals is based on their earlier
experiences, plausible explanations they can assign, their motives,
beliefs and interests at the time of perception.
For a number of reasons, stimuli can often be weak or strong and may
prove to be quite ambiguous to individuals. Individuals usually interpret
highly ambiguous stimuli in a way that seem to fulfil personal needs,
desires, aspirations, interests, or wishes etc.
The interpretation of ambiguous stimuli by individuals reveals quite a lot
about them.
Perceptual Distortion
Physical Appearance: People may or may not consciously
recognise that they tend to attribute the qualities, which in their
opinion are associated with certain individuals, to others who may
resemble those persons.
Stereotyping Stimuli: People tend to form pictures in their
minds of the meanings of different types of stimuli. This
stereotyping the stimuli helps them develop expectations about
how specific events, people, or situations will turn out to be.
Irrelevant Stimuli: In certain situations consumers are faced with
difficult perceptual judgements. In such circumstances they often
respond to somewhat irrelevant stimuli. For instance, they may
consider the colour of washing machine in making the final
purchase decision.
Perceptual Distortion
First Impression: First impressions are often lasting even when the
perceiver is not exposed to sufficient relevant or predictive information.
Jumping to Conclusions: Some people seem to have a strong tendency
to draw conclusions based on insufficient information. They seem to be
impatient about examining all the relevant evidence, which may be
necessary to draw a balanced conclusion. This is often the reason that
strong arguments about a product or service are presented first in ads.
Halo Effect: This refers to a tendency to evaluate one attribute or aspect
of stimulus to distort reactions to its other attributes or properties
Consumer Imagery
An image is a total perception of something that individuals form by

processing all the information they are exposed to over time.
These inferences are consumers beliefs about products or services.
Consumers have a number of enduring perceptions, or images, that are
particularly relevant to the study of consumer behavior.
Products and brands have symbolic value for individuals who evaluate
them on the basis of their consistency with their personal pictures of
themselves.
The following section examines consumers perceived images of
products, brands, services, prices, product quality, retail stores, and
manufacturers.
Perceived Price
How a consumer perceives a price (perceived price)as high, as low, as

fairhas a strong influence on both purchase intentions and purchase
satisfaction.
Perception of price fairnesscustomers pay attention to the prices paid
by other customers (e.g., senior citizens, frequent fliers, affinity club
members).
There is evidence that customers perceive differential pricing strategies
used by some marketers as unfair to those not eligible for the special
prices. Perceptions of price unfairness affect consumers perceptions of
product value, and ultimately, their willingness to patronize a store or a
service.
Perceived Quality of Product

Consumers often judge the quality of a product (perceived quality) on the basis of a
variety of informational cues.
Some of these cues are intrinsic to the product or service; others are extrinsic.
Intrinsic cues are concerned with physical characteristics of the product itself: size,
color, flavor or aroma.
In the absence of actual experience with a product, consumers often evaluate quality on
the basis of extrinsic cues, price, brand image, store image, etc.
Many consumers use country-of-origin stereotypes to evaluate products.
Lacking previous purchase experiences may lead to an awareness that higher-quality
products tend to cost more and high-price may become an indicator of higher-quality
and suspect the quality of low-priced products.
In India a little over a decade ago foreign make meant superior quality.
Perceived Quality of Services
It is more difficult for consumers to evaluate the quality of services than the
quality of products.
This difficulty arises because of certain unique characteristics of services.
Researchers have concluded that the service quality that a customer
perceives is a function of the magnitude and direction of the gap between
expected service and the customers assessment of the service actually
delivered.
SERVQUAL, measures the gap between these two services.
Perceptions of high service quality and high customer satisfaction lead to
higher levels of purchase intentions and repeat buying. Service quality is a
determinant of whether the consumer ultimately remains with the company
or defects to a competitor.
Retail Store Image

Retail stores have their own images that influence the perception of the
quality of the products they carry.
A study that examined the effects of specific store environmental factors
on quality inferences found that consumer perceptions were more heavily
influenced by ambient factors than by store design features.
Studies show consumers perceive stores with small discounts on a large
number of products as having lower-priced items than stores that offer
large discounts on a small number of products.
One study showed that frequent advertising that presents large numbers
of price specials reinforces consumer beliefs about the competitiveness of
a stores prices.
The type of product the consumer wishes to buy influences his or her
selection of retail outlet; conversely, the consumers evaluation of a
product often is influenced by the knowledge of where it was bought.
Manufacturers Image
Consumer imagery extends beyond perceived price and store image to the
producers themselves.
Manufacturers who enjoy a favorable image generally find that their new
products are accepted more readily than those of manufacturers who have
a less favorable or even a neutral image.
Researchers have found that consumers generally have favorable
perceptions of pioneer brands (the first in a product category), even after
follower brands become available.
Studies show that consumers choose brands perceived as similar to their
own actual, ideal, social, ideal-social and situational-ideal social images.
These findings have important implications regarding the possible perils of
repositioning brands.
Perceived Risk
Whenever consumers make decisions to purchase any new brands,
there is an element of uncertainty about the consequences and a
perception of risk is involved in most such purchases.
Perceived risk is the uncertainty that consumers face when they
cannot foresee the consequences of their purchase decision. T
he degree of risk that consumers perceive and their own tolerance for
risk taking are factors that influence their purchase strategies.
Consumers are influenced by risks that they perceive, whether or not
such risks actually exist. Types of risk include: functional risk,
physical risk, financial risk, social risk, psychological risk, and time
risk
How Consumers Handle Risk
Consumers seek information

Consumers are brand loyal:.
Consumers select by brand image:.
Consumers rely on store image.
Consumers buy the most expensive model
Consumers seek reassurance
Perception and Marketing Strategy
Make perceptual selection work in your favour

Increase accidental exposure Use the j.n.d
Draw attention to your ad using contrast and other principles Find
creative ways to reduce blocking
Ensure that consumers organize and interpret messages correctly
Develop suitable consumer imagery Find ways to reduce perceived
risk
CONSUMER LEARNING
Consumer Learning I Sanjeev Kumar
Consumer Learning
Marketers are concerned with how individuals
learn because they want to teach them, in their
roles as consumers, about products, product
attributes.
Marketers want their communications to be
noted, believed, remembered, and recalled.
For these reasons, they are interested in every
aspect of the learning process.
The process by which individuals acquire the

purchase and consumption knowledge and
experience that they apply to future related
behavior
6
Elements of Learning Theories
Motivation
Unfilled needs
lead to motivation
Cues
Response
Stimuli that direct

motives
Consumer
reaction to a drive
or cue
Reinforcement
Increases the
likelihood that a
response will occur
in the future as a
result of a cue
Two Major Learning Theories

Behavioral Learning
Based on observable behaviors (responses)
that occur as the result of exposure to stimuli
Cognitive Learning
Learning based on mental information
processing
Often in response to problem solving
Behavioral Learning
It is a process of
behavior modification
made famous by Ivan
Pavlov and his
experiments
conducted with dogs.
Classical/Pavlovian
Conditioning
Ivan Pavlov
It is a type of learning
in which an individual's
behavior is modified by
its antecedents and
consequences.
Operant/Instrumental
Conditioning
B. F. Skinner
Classical Conditioning by Ivan Pavlov
A behavioral learning theory according to which

a stimulus is paired with another stimulus that
elicits a known response that serves to produce
the same response when used alone.
Model of Classical Conditioning

Food and water
12
Example
Dinner aroma
You are hungry
8 O'clock News
8 O'clock News
13
You are hungry
Consumer Learning I Prof. Abhipsa Mishra
For Coca-Cola (or any other beverage company):
How have they used classical conditioning in their marketing
Identify the unconditioned and conditioned stimuli, the conditioned and
unconditioned response.
How effective conditioning can create a very

favourable strategy for marketers...
The colas (Pepsi and Coke) have used Classical Conditioning very effectively
over the years.
Thirst (An Unconditioned Response) is generated by various environmental and
physical factors like heat, sports, workout, dehydration etc. (These
are Unconditioned Stimuli).
Pepsi and Coke have strategically placed and associated their products with all the
above Unconditioned Stimuli like heat, sports, etc repeatedly.
They have also used key words in their branding like Thanda Matlab Coca Cola.
This has played the part of a Conditioned Stimulus which is placed along with
the Unconditioned Stimuli every time (hence the sponsorships for major sporting
events).
Over time the Conditioned Stimulus (Cola drink) becomes a signal for the
arrival of the Unconditioned Stimulus (heat, dehydration) for the brain and we
feel thirsty just by seeing a big poster of Coke or Pepsi without actually
experiencing any of the above environmental or physical factors. Thus, we dont
only have a Coke/Pepsi when we are thirsty, we feel thirsty when we see a
Coke/Pepsi!
Other examples
Dermi cool Aaya mausam thande thande Dermi cool ka

Fair n Lovely winter fairness cream Sardiyon mein
nikhar ghatega nahin badhega
Strategic Applications of Classical Conditioning
Basic Concepts
Repetition
Stimulus
generalization
Stimulus
discrimination
Increases the association

between the conditioned
and unconditioned
stimulus
Slows the pace of
forgetting
Advertising wear out is
a problem
17
Why Did Amul Use Different Ads to Advertise the

Same Product?
Repetition of the Message with Varied Ads Results in

More Information Processing by the Consumer
Strategic Applications of
Classical Conditioning
Basic Concepts
Repetition
Stimulus
generalization
Stimulus
discrimination
22
Having the same

response to slightly
different stimuli
Helps me-too products
to succeed
Useful in:
Product extensions
Family branding
Licensing
Stimulus generalization
Product line extensions: In product line extensions, the
marketer adds related products to an already established brand,
Example: Palmolive soap is available in pink, white and light
bluish pack. Maggi noodles are available in different flavors
Product form extensions: Marketers offer product form
extensions means that the same product is available in different
physical forms such as Dettol soap cake and Dettol liquid soap.
Product category extensions generally target new market
segments. For examples: Maggi noodles and Maggi tomato
chilli sauce.
Family Branding: Family branding refers to the practice of
marketing a whole line of company products under the same
brand name. . Example: Lakme ,Ponds
4
What Is the
Name of the
Marketing
Application
Featured Here
and Which
Concept of
Behavioral
Learning Is It
Based On?
Product
Category
Extension
Stimulus
Generalization
Strategic Applications of
Classical Conditioning
Basic Concepts
Repetition
Stimulus
generalization
Stimulus
discrimination
26
Selection of a specific
stimulus from similar
stimuli
Opposite of stimulus
generalization
This discrimination is
the basis of positioning
which looks for unique
ways to fill needs
Instrumental (Operant) Conditioning Burrhus Frederic Skinner

Skinner believed that the best
way to understand behaviour is
to look at the causes of an
action and its consequences. He
called this approach operant
conditioning
A behavioral theory of learning

based on a trial-and-error process,
with habits forced as the result of
positive experiences
(reinforcement) resulting from
certain responses or behaviors
28
A Model of Instrumental Conditioning
30
Reinforcement of Behavior
Positive
Negative
Positive outcome
Negative outcome
Strengthen likelihood
Encourages behavior
Positive reinforcement is a good thing that happens which rewards a

behavior Going to the gym made you feel good so you go every other
day.
Negative outcome is a bad thing that happens which encourages a
behavior. You ate a donut every morning for breakfast so gained a lot
of weight over the past week. This causes you to go to the gym every
other day and to stop eating donuts.
Reinforcement of Behavior
Extinction
Forgetting
A learned response is no longer The reinforcement is forgotten

reinforced
The link is eliminated between
stimulus and reward
Extinction and forgetting are easily confused. But think of what the
words mean. If the response, is forgotten it can be brought back just by
remembering. If it is extinct, it is unlearned. The link between the
stimulus and the response is destroyed.
Strategic Applications of Instrumental Conditioning
Customer Satisfaction (Reinforcement) It

means that each time the customer has an
experience with the product or company, there
has been positive reinforcement
This is the reason relationship marketing is so
important.

Reinforcement Schedules can vary
They can be (otherwise called Schedules of
reinforcements
Total (or continuous) reinforcement
Systemic (fixed ratio) reinforcement
Random (variable ratio) reinforcement schedule
Marketers will often use random reinforcement as a
bonus for the customer and fixed reinforcement as
loyalty points or rewards.
Shaping is a procedure in which reinforcement is

used to guide a response closer and closer to a desired
response.
Shaping occurs by having the reinforcement
BEFORE the behavior occurs.
In this situation, the consumer can be given the offer
of a reward before they actually make their decision
and purchase a product.
35
Massed versus distributed learning: Should the

learning and the exposure to the stimuli happen in a
relatively short period of time or be drawn out?
Media planners are often faced with this decision
when putting together an advertising campaign.
Observational Learning
(modeling or vicarious
learning)
A process by which individuals
learn behavior by observing the
behavior of others and the
consequences of such behavior
Observational Learning
(modeling or vicarious learning
A process by which
individuals learn
behavior by observing
the behavior of others
and the consequences of
such behavior
Albert Bandura
Cognitive learning
Cognitive learning approach has dominated the
field of consumer behaviour in recent years.
Learning that takes place as a result of mental
activity is termed as cognitive learning.
Cognitive theorists do not endorse the view
that learning is based on repetitive trials
leading to the development of links between
stimuli and responses because consumer
behaviour typically involves choices and
decision-making.
Cognitivism
Grew in response to Behaviorism
Knowledge is stored cognitively as symbols
Learning is the process of connecting symbols
in a meaningful & memorable way
Studies focused on the mental processes that
facilitate symbol connection
Cognitivism in the Classroom

Inquiry-oriented
projects
Opportunities for the
testing of hypotheses
Curiosity encouraged
Staged scaffolding
Theoretical Models of Cognitive Learning
Promotional Tricompetent
Generic
Model
Model
Framework
Knowledge
Evaluation
Behavior
Attention
Interest
Desire
Action
Cognitive
Affective
Conative
DecisionMaking
Model
Innovation
Adoption
Model
Awareness
Knowledge
Awareness
Innovation
Decision
Process
Knowledge
Interest
Evaluation Evaluation Persuasion
Purchase
Trial
Decision
Postpurchase Adoption Confirmation
Evaluation
Measures of Consumer Learning
Recognition and Recall Measures

Cognitive Response to add
Brand Loyalty
Brand Equity
Recognition and recall

Recognition and recall tests determine
whether consumers remember seeing an ad and
the extent to which they can recall the ad.
The researcher can use aided recall, which
would rely on recognition as opposed to
unaided recall.
There are a number of services which conduct
these tests, including Starch Research which
you can reach with the web link on this page.
Cognitive Response to add

To ensure a high level of comprehension, many marketers
conduct copy testing either before the advertising is actually
run in media (called pre-testing) or after it appears (posttesting).
Pre-tests are used to determine which, if any, elements of an
advertising message should be revised before major media
expenses are incurred.
Post-tests are used to evaluate the effectiveness of an ad that
has already run, and to identify which elements, if any, should
be changed to improve the impact and memorability of future
ads.
Measures of Consumer Learning Brand Loyalty
Three groups of factors

Personal degree of risk aversion or
variety seeking
The brands reputation and availability
of substitutes
Social group influences
Four types of loyalty
No loyalty
Covetous loyalty
Inertia loyalty
Premium loyalty
Brand Equity the value inherent

in a well-known brand name
Consumer Learning
PERSONALITY AND CONSUMER

BEHAVIOR
Personality and Consumer Behavior I
Sanjeev Kumar
Learning Objectives
1.
2.
3.
To Understand How
Personality Reflects
Consumers Inner
Differences.
To Understand How
Freudian, Neo-Freudian, and
Trait Theories Each Explain
the Influence of Personality
on Consumers Attitudes and
Behavior.
To Understand How
Personality Reflects
Consumers Responses to
Product and Marketing
Messages.
Personality and Consumer Behavior I Sanjeev Kumar
Learning Objectives (contd..)

4.
To Understand How
Marketers Seek to Create
Brand Personalities-Like
Traits.
5.
To Understand How the

Products and Services That
Consumers Use Enhance
Their Self-Images.
6.
To Understand How
Consumers Can Create Online
Identities Reflecting a
Particular Set of Personality
Traits.
Personality and its nature

Personality refers to the relatively enduring
characteristics that differentiate one person from
another and that lead people to act in a consistent and
predictable manner, both in different situations and
over extended periods of time.
Personality is defined as those inner psychological
characteristics that both determine and reflect how a
person responds to his or her environment.
The emphasis in this definition is on inner
characteristicsthose specific qualities, attributes,
traits, factors, and mannerisms that distinguish one
individual from other individuals.
Personality and its nature

The Nature of Personality:
Personality reflects individual differences
Personality is consistent and enduring
Personality can change
Personality Reflects Individual

Differences
An individuals personality is a unique
combination of factors; no two individuals are
exactly alike.
Personality is a useful concept because it
enables us to categorize consumers into
different groups on the basis of a single trait
or a few traits.
Personality is Consistent and Enduring

Marketers
learn
which
personality
characteristics influence specific consumer
responses and attempt to appeal to relevant
traits inherent in their target group of
consumers.
Even though an individuals personality may
be consistent, consumption behavior often
varies considerably because of psychological,
sociocultural, and environmental factors that
affect behavior
Personality Can Change

An individuals personality may be altered by
major life events, such as the birth of a child,
the death of a loved one, a divorce, or a major
career change.
An individuals personality also changes as
part of a gradual maturing process.
Theories of Personality
Freudian theory
Unconscious needs or drives are at the heart of human motivation
Neo-Freudian personality theory
Social relationships are fundamental to the formation and

development of personality
Carl Jungs personality theory

-Carl Jung's proposed a typology based upon four bipolar
dimensions, where each pole represents an opposite preference
and thus illustrates four dichotomies, viz, Extraversion
Introversion, Sensing Intuition, Thinking Feeling, and Judging
Perceiving.
Trait theory
Quantitative approach to personality as a set of psychological traits
Freudian Theory
Id: Warehouse of primitive or instinctual needs for which

individual seeks immediate satisfaction
Superego: Individuals internal expression of societys
moral and ethical codes of conduct
Ego: Individuals conscious control that balances the
demands of the id and superego
Freuds Theory: The ID

The id uses the most primitive of thinking process.
Basic biological urges (e.g., hunger, self-protection).
Operates on the Pleasure Principle.
Seeks pleasure and avoids pain:I want what I want
NOW!
The id operates completely at an unconscious level.
No direct contact with reality.
Freuds Theory: The Superego

Superego: the moral part of personality.
Internalized rules of parents and society.
Superego consists of two parts:
Conscience: notions of right/wrong.
Ego Ideal: how we ideally like to be.
Superego: constrains us from gratifying every
impulse (e.g., murder) because they are immoral,
and not because we might get caught.
It is partly conscious, partly unconscious.
Freuds Theory: The Ego

The ego consists of a conscious faculty for
perceiving and dealing intelligently with reality.
The ego acts as a mediator between the id and
the superego.
The ego is partly conscious.
Deals with the demands of reality.
Makes rational decisions.
Carl Jungs personality theory
According to Jung, we all use the S,N,T and F; however each

one of us varies in their usage and frequency. The
combination of our "preferences" defines our personality
type.
S and N determine how a consumer gathers and processes
information about products, while the T and F determine how
he makes a purchase decision.
By cross-tabulating the two pairs of psychological dimensions,
we can derive four different personality types, viz. SensingThinking (S-T), Sensing-Feeling (S-F), Intuiting-Thinking (N-T)
and Intuiting-Feeling (N-F).
Each of these reflects variedly in purchase decisions and
consumption processes. The marketer could benefit
immensely by gaining insights as to the varying types so as to
design his marketing strategy to be able to serve consumers
effectively and efficiently.
Neo-Freudian Personality Theories

Social relationships are fundamental to personality
Alfred Adler
Style of life
Feelings of inferiority
Harry Stack
Sullivan
We establish relationships with others to

reduce tensions
Karen Horneys
three personality
groups
Compliant: move toward others (Close Up)

Aggressive: move against others (Boost)
Detached: move away from others (Meditation)
Trait Theory
Focus on
measurement of
personality in terms of
traits identifiable
characteristics that
define a person
Trait - any
distinguishing,
relatively enduring
way in which one
individual differs from
another. Eg. Extrovert,
introvert
Personality and Understanding

Consumer Behavior
Consumer
innovativeness
Dogmatism
Social
character
Need for
uniqueness
Optimum
stimulation
level
Sensation
seeking
Varietynovelty
seeking
Personality and Understanding

Consumer Behavior
Consumer Innovativeness
Willingness to innovate
Further broken down for hitech products
Global innovativeness
Domain-specific
innovativeness
Innovative behavior
Dogmatism
Reflects the
degree of
rigidity a
person displays
towards the
unfamiliar and
towards
information
that is contrary
to his or her
own
established
beliefs
Social Character
Social character is a personality trait that ranges

on a continuum from inner-directed to otherdirected.
Inner-directed consumers tend to rely on their
own inner values or standards in evaluating
new products and are innovators. They also
prefer ads stressing product features and
personal benefits.
Other-directed consumers tend to look to others
for direction and are not innovators. They prefer
ads that feature social environment and social
acceptance
Contd..
Need for Uniqueness
Sensation Seeking
Consumers who avoid

conforming to expectations
or standards of others
The need for varied, novel,

and complex sensations and
experience. And the
willingness to take social
and physical risks for the
sensations.
Contd..
Optimum Stimulation Level
Variety-Novelty Seeking
A personality trait that

measures the level or
amount of novelty or
complexity that individuals
seek in their personal
experiences
Measures a consumers
degree of variety seeking
Examples include:
High OSL consumers tend to

accept risky and novel
products more readily than
low OSL consumers.
Exploratory Purchase
Behavior
Use Innovativeness
Vicarious Exploration
From Consumer Materialism to

Compulsive Consumption
Fixated consumption behavior
Consumers fixated on certain products or
categories of products
Characteristics:
Passionate interest in a product category
Willingness to go to great lengths to secure
objects
Dedication of time and money to collecting
Compulsive consumption behavior

Addicted or out-of-control consumers
Cognitive Personality Factors

Market researchers want to understand how
cognitive personality influences consumer
behavior.
Two cognitive personality traits have been
useful in understanding selected aspects of
consumer behavior. They are:
Need for cognition
Visualizers versus verbalizers
Need for Cognition

This is the measurement of a persons craving for or
enjoyment of thinking.
Consumers who are high in NC (need for cognition) are more
likely to be responsive to the part of an advertisement that is
rich in product-related information of description.
They are also more responsive to cool colors.
Consumers who are relatively low in NC are more likely to be
attracted to the background or peripheral aspects of an ad.
They spend more time on print content and have much
stronger brand recall.
Need for cognition seems to play a role in an individuals use
of the Internet.
Visualizers versus Verbalizers

Visualizers are consumers who prefer visual
information and products that stress the
visual.
Verbalizers are consumers who prefer written
or verbal information and products that stress
the verbal.
This distinction helps marketers know whether
to stress visual or written elements in their
ads.
Consumer Ethnocentrism and

Cosmopolitanism
Ethnocentrism
Ethnocentric consumers feel it is wrong to purchase
foreign-made products because of the impact on the
economy. They can be targeted by stressing
nationalistic themes
Cosmopolitanism
A cosmopolitan orientation would consider the world
to be their marketplace and would be attracted to
products from other cultures and countries.
Brand Personality
Personality-like traits
associated with brands
Examples
Tetrapack and freshness
Nike and athlete
BMW is performance driven
Brand personality which is

strong and favorable will
strengthen a brand but not
necessarily demand a price
premium
A Brand Personality Framework
Product Personality Issues

Gender
Some products perceived as masculine (coffee and toothpaste)
while others as feminine (bath soap and shampoo)
Geography
Actual locations, like Philadelphia cream cheese and Arizona iced
tea
Fictitious names also used, such as Hidden Valley and Bear Creek
Color
Color combinations in packaging and products denotes personality
Pick three of your favorite food brands.
Describe their personality. Do they have a
gender? What personality traits do they
have?
SELF AND SELF-IMAGE

Self-images, or perceptions of self, are very
closely associated with personality.
Individuals tend to buy products and services
and patronize retailers with images or
personalities that closely correspond to
their own self-images.
Such concepts as one or multiple selves, selfimage, and the notion of the extended self is
explored by consumer behavior researchers.
One or Multiple Selves

Historically, individuals were thought to have a single
self-image and focused on products accordingly.
Research indicates a consumer is quite likely to be or act
differently with different people and in different situations.
The idea that an individual embodies a number of

different multiple selves suggests that marketers
should target their products and services to consumers
within the context of a particular self.
The healthy or normal person is likely to display a
somewhat different personality in various situations or
social roles
The Makeup of the Self-Image

Four aspects of self-image are:
Actual self-imagehow consumers see themselves

Ideal self-imagehow consumers would like to see themselves
Social self-imagehow consumers feel others see them
Ideal social self-imagehow consumers would like others to
see them
Some marketers have identified a fifth and sixth self-image.
Expected self-imagehow consumers expect to see themselves

at some specified future time
Ought-to selftraits or characteristics that an individual
believes it is his or her duty or obligation to possess
In different contexts, consumers might select different selfimages to guide their attitudes and behavior.
The concept of self-image has strategic implications for

marketers.
Marketers can segment their markets on the basis of
relevant consumer self-images and then position their
products or stores as symbols for such self-images.
Consumer Behavior and

Attitude
Sanjeev Kumar
Attitude
An attitude may be defined as a feeling of favorableness or
unfavorableness that an individual has towards an object (be it a
person, thing or situation).
It is a learned predisposition to exhibit and act based on
evaluation resulting in a feeling of like or dislike towards and
object.
In terms of consumer behavior, consumer attitudes may be
defined as an inner feeling of favorableness or unfavorableness
towards a product or service offering and the 4Ps
Nature of Attitudes
Attitudes are directed towards an object
Attitudes have a direction; they could be positive or negative
Attitudes are consistent in nature
Attitudes are a learned predisposition.
Attitudes cannot be observed directly
Attitudes are situation specific
Functions of Attitude
Apart form helping a consumer make evaluations about a
product/service offering ending up in purchase decisions (to buy/not
to buy)
Attitudes play other functions as well.
They perform four basic functions, viz.,
utilitarian function,
ego defensive function,
value expressive function, and
knowledge function.
Utilitarian function: Consumers form positive attitudes towards
product/service offerings because they provide a utility, in other
words, they provide a rewarding experience through the benefits
that they provide.
Complan helps children grow faster and better
Ego defensive function: Consumers form attitudes as they help
defend their ego, self-image and self-concept.
-Rexona Deo prevents body odour whole day long.
Value expressive function: Positive attitudes are formed when a
product or service expresses a personss values and lifestyle, personality
and self image, and self concept. This is because attitudes provide
people with a basis for expressing their values.
Mercedes Benz, a car for the CEO or for the successful businessman.
Dove soap depicts softness and sophistication.
Knowledge function: Attitudes are formed when consumers want to
reaffirm their knowledge base, to finally help them simplify purchase
decision making.
Odomos mosquito repellant is safe for skin
Structural
Models Of Attitudes
Psychologists have developed a number of models in order to

understand consumer attitudes.
Each of these models provides a somewhat different perspective on
the number of component parts of an attitude and how those parts
are arranged or interrelated.
Tricomponent Attitude Model

According to the tricomponent attitude model, attitudes consist of three
major components: cognition, affect, and conation.
The Cognitive Component: Cognitions are previous knowledge or
experiences with or about the object. This previous knowledge/experience
allows the consumer to form perceptions or beliefs about the product.
The Affective Component: The affective component of an attitude
consists of the consumers emotions or feelings.
The Conative Component: Conation, the final component of the
tricomponent attitude model, is concerned with the likelihood or tendency
that an individual will undertake a specific action or behave in a particular
way with regard to the attitude object.
The Cognitive Component
The Affective Component
The Conative Component
Multi-Attribute Attitude Models
Multi-attribute attitude models examine attitudes in terms of selected

product attributes or beliefs.
According to these models, consumers attitudes about an attitude
object is a function of consumers perception and assessment of
important attributes or beliefs held about a certain attitude object.
In other words, many beliefs about attributes are evaluative in nature.
For example, in case of an automobile, more mileage per litre of petrol,
attractive styling, reliable performance etc.
The Attitude-Toward-Object Model
According to the attitude-toward-object model, the consumers

attitude toward a product or specific brands of a product is a function
of the presence (or absence) and evaluation of certain productspecific beliefs and/or attributes.
What consumers will purchase is a function of how much they know.
What they feel are the important features for them, and their
awareness as to whether particular brands possess (or lack) these
valued attributes.
The Attitude-Toward-Behavior Model

The attitude-toward-behavior model is the individuals attitude toward
behaving or acting with respect to an object, rather than the attitude
toward the object itself.
The appeal of this model is that it seems to correspond somewhat more
closely to actual behavior than does the attitude-toward-object model.
Example, a consumers attitude towards Omega watch (object) may
be very positive, but her/his attitude towards the act of purchasing
such an expensive watch may be negative.
The appeal of this model is that it seems to be a better predictor of
an individuals actual behaviour than the attitude-toward-object
model.
Theory-of-Reasoned-Action Model
The theory-of-reasoned-action is a comprehensive integration of attitude
components into a structure that is designed to lead to both better
explanation and better predictions of behavior.
Like the basic tri component attitude model, the theory-of-reasoned-action
model incorporates a cognitive component, an affective component, and a
conative component; however, these are arranged in a pattern different
from that of the tri component model.
To understand intention we also need to measure the subjective norms that
influence an individuals intention to act.
A subjective norm can be measured directly by assessing a consumers
feelings as to what relevant others (family, friends, roommates, co-workers)
would think of the action being contemplated.
Theory of Trying-to-Consume
The theory of trying-to-consume is designed to account for the cases
where the action or outcome is not certain but reflects the consumers
efforts to consume.
Attitude-Toward-the-Ad Models
As the attitude-toward-the-ad model depicts, the consumer forms
various feelings (affects) and judgments (cognitions) as the result of
exposure to an ad. These feelings and judgments in turn affect the
consumers attitude toward the ad and beliefs about the brand
acquired from exposure to the ad.
Attitude Formation
How do people, especially young people, form their initial general attitudes
toward things?
How do family members and friends, admired celebrities, mass media
advertisements, even cultural memberships, influence the formation of
their attitudes concerning consuming or not consuming each of these types
of apparel items?
Why do some attitudes seem to persist indefinitely, while others change
fairly often?
The answers to the above are of vital importance to marketers, for without
knowing how attitudes are formed, they are unable to understand or to
influence consumer attitudes or behavior.
How Attitudes Are Learned

When we speak of the formation of an attitude, we refer to the shift from
having no attitude toward a given object to having some attitude toward
it.
Consumers often purchase new products that are associated with a
favorably viewed brand name.
In situations in which consumers seek to solve a problem or satisfy a
need, they are likely to form attitudes (either positive or negative) about
products on the basis of information exposure and their own cognition
(knowledge and beliefs).
Sources of Influence on Attitude

Formation
The formation of consumer attitudes is strongly influenced by personal experience,
the influence of family and friends, direct marketing, mass media and the Internet.
The primary means by which attitudes toward goods and services are formed is
through the consumers direct experience in trying and evaluating them.
Direct marketing efforts have an excellent chance of favorably influencing target
consumers attitudes.
Mass media communications provide an important source of information that
influences the formation of consumer attitudes.
Personality also plays a critical role in attitude formation.
Individuals with a high need for cognition (information) are likely to form positive
attitudes in response to ads that are rich in product-related information. Consumers
who are relatively low in need for cognition are more likely to form positive attitudes
to ads that feature attractive models or well-known celebrities.
Strategies Of Attitude Change
It is important to recognize that much of what has been said about attitude formation is
also basically true of attitude change.
Attitude changes are learned; they are influenced by personal experience and other
sources of information, and personality affects both the receptivity and the speed with
which attitudes are likely to be altered.
Altering attitudes is a key strategy for marketers, especially when taking aim at market
leaders. Marketers have several attitude-change strategies from which to choose:
Changing the consumers basic motivational function
Associating the product with an admired group or event
Resolving two conflicting attitudes
Altering components of the multi-attribute model
Changing consumer beliefs about competitors brands
Elaboration Likelihood Model (ELM)
Compared to various specific strategies of attitude change that we have reviewed, the
elaboration likelihood model (ELM) involves a more global view that two different
persuasive routes change attitudes.
The central route is particularly relevant to attitude change when a consumers
motivation or ability to assess the attitude object is high; that is, attitude change occurs
because the consumer actively seeks out information relevant to the attitude object itself.
When consumers are willing to exert the effort to comprehend, learn, or evaluate the
available information about the attitude object, learning and attitude change occur via the
central route.
In contrast, when a consumers motivation or assessment skills are low (e.g., lowinvolvement), learning and attitude change tend to occur via the peripheral route without
the consumer focusing on information relevant to the attitude object itself.
In such cases, attitude change often is an outcome of secondary inducements (e.g., centsoff coupons, free samples, beautiful background scenery, great package, or the
encouragement of a celebrity endorsement).
Behavior Can Precede or Follow Attitude

Formation
Our discussion of attitude formation and attitude change has
stressed the traditional rational view that consumers develop their
attitude before taking action. There are alternatives to this attitude
precedes behavior.
Cognitive dissonance theory and attribution theory each provide a
different explanation as to why behavior might precede attitude
formation.
Cognitive Dissonance Theory
According to cognitive dissonance theory, discomfort or dissonance occurs when a consumer holds
conflicting thoughts about a belief or an attitude object (either before or after the purchase).
Post purchase dissonance occurs after the purchase. The consumer is not happy with the purchase,
so they adjust their attitudes to conform to their behavior.
Dissonance propels consumers to reduce the unpleasant feelings created by the rival thoughts.
Tactics that consumers can use to reduce dissonance include:
By rationalizing the decision as being wise.
By seeking out advertisements that support the original reason for choosing the product.
By trying to sell friends on the positive features of the brand.
By looking to known satisfied owners for reassurance.
Marketers can help reduce post purchase uncertainty by aiming specific messages at reinforcing
consumer decisions.
Attribution Theory
Attribution theory attempts to explain how people assign causality to events on the
basis of either their own behavior or the behavior of others. Of the various
perspectives on attribution theory that have been proposed Self-perception theory is
a good point for discussion of attribution.
Self-Perception Theory
Self-perception theory addresses individuals inferences or judgments as to the
cause of their own behavior. In terms of consumer behavior, self-perception theory
suggests that attitudes develop as consumers look at and make judgments about
their own behavior. Drawing inferences from ones own is not as simple as it might
suggest. To appreciate the complexity of self-perception theory, it is useful to
distinguish between internal, external and defensive attributions.
Internal attributiongiving yourself credit for the outcomesyour ability, your skill,
or your effort.
External attributionthe purchase was good because of factors beyond your
controlluck, etc.
Defensive attributionconsumers are likely to accept credit personally for success,
and to credit failure to others or to outside events.
Consumer Behavior and

Communication
Sanjeev Kumar
INTRODUCTION
Communication is the link between the individual and society.
Communication is the tool that marketers use to persuade
consumers to act in a desired way.
Today, the media and communication models that have been
used for decades are undergoing fundamental changes.
COMPONENTS OF COMMUNICATION
Most marketers would agree that communication is the transmission

of a message from a sender to a receiver via a medium (or channel) of
transmission.
Elements of the Communication Process

The Message Initiator (the Source)
The Sender
The Receiver
The Medium
The Message
The Target Audience (the Receivers)
Feedback - the Receivers Response
The Sender
The sender is the initiator of the communication and can be a formal

or informal source.
A formal communications source might be the organization
communicating the message.
An informal source might be a parent or a friend who gives product
information or advice.
The Receiver
The receiver is the targeted prospect or a customer.
There are also intermediary audiences for a message, such

as wholesalers, distributors, and retailers who receive
trade.
There are also unintended audiences, which include
everyone who is exposed to the message, whether or not
they are specifically targeted by the source.
The Medium
The medium is the channel or way the message is

communicated.
It can be an impersonal communications channel, such as a
mass medium like a newspaper or television program.
It can be an interpersonal communications channelan
informal conversation between two friendsor a formal
conversation between a salesperson and a customer
Message
The message can be a verbal message, spoken or written, and usually can
contain more specific product information than a nonverbal message.
Or, it can be a nonverbal message in the form of symbolic communication.
Nonverbal communication takes place in interpersonal channels as well as
in impersonal channels.
Feedback
Feedback is an essential component of both interpersonal and

impersonal communications.
Prompt feedback permits the sender to reinforce, to change, or to

modify the message to ensure that it is understood in the intended
way.
Generally, it is easier to obtain feedback (both verbal and nonverbal)
from
interpersonal
communications
than
impersonal
communications.
Factors Affecting Communication Process

Characteristics of the source
Message characteristics
Characteristics of the receiver
Characteristics of the medium
Characteristics of Source
Credibility
Reputation of the retailer

Consumers previous experience with product
Reputation of the medium
Effect of time: The Sleeper Credibility
Message Characteristics
Message Structure and Presentation
Resonance or wordplay
Message Framing: positive or negative
One-sided versus Two-sided Messages
Comparative Advertising
Order Effects
Repetition
Comparative
ad scenario
between GoAir
and
KingFisher
Airlines
Characteristics of the Medium Newspaper

Access to large audiences
Not selective
Effective for local reach
Short message life
Flexible
Clutter
Fast
Cost varies based on ad size

and vehicle circulation
Feedback possible through

coupon redemption, etc.
Characteristics of the Medium Magazines

Highly selective
High clutter
Selective binding possible
Delayed and indirect feedback
High quality production
Rates vary based on circulation

and selectivity
High credibility
Long message life
High pass along rate
Characteristics of the Medium Television

Large audiences possible
Long lead time
Appeals to many senses
High clutter
Emotion and attention possible
Short message life
Demonstration possible
Viewers can avoid exposure

with zapping
Very high costs overall
Day-after recall tests for

feedback
Characteristics of the Medium Direct

Mail
High audience selectivity
Perception of junk mail
Personalization possible
Feedback possible through

response
Novel, interesting stimuli

possible
Low clutter
Characteristics of the Medium

Direct Marketing
Development of databases
Privacy concerns
High audience selectivity
Measurable responses
Relatively free of clutter
Cost per inquiry, cost per sale,

revenue per ad can be
calculated
Characteristics of the Target Market

Personal characteristics and comprehension
Involvement and congruency
Mood
Barriers to communication
Selective exposure to messages
Psychological noise
Psychological Noise
Things that impair reception of a message, such as competing advertising

messages or distracting thoughts, are called psychological noise.
The best way for a sender to overcome psychological noise is to:
Repeat exposure to the message.

Use contrast.
Use teasers.
Use customized ads.
Shift advertising from TV to internet advertising.
The most effective way to ensure that a promotional message stands out and is
received and decoded appropriately by the target audience is through effective
positioning and a unique selling proposition.
Message Effectiveness
Market communications are designed for a target audience
The effectiveness can be measured through communication
feedback
Communication Feedback
Exposure effects :How many consumer were exposed to the

message?
Persuasion effects : Was the message perceived, understood and
interpreted correctly?
Sales effects :Did the ad increase the sales?
Reference Groups and

Family Influences
Sanjeev Kumar
Reference Groups and Family Influences

Almost all individuals regularly interact with other people who directly
or indirectly influence their purchase decisions.
Thus, the study of groups and their impact on the individuals is of great
importance to marketers concerned with influencing consumer
behavior.
Group Defined
A group is two or more people who interact to

accomplish either individual or mutual goals.
This broad definition covers everything from intimate
groups to formal work groups.
Sometimes groups are classified by membership status.
A group to which a person either belongs or would
qualify for membership is called a membership group.
There are also groups in which an individual is not likely
to receive membership, despite acting like a member by
adopting the groups values, attitudes, and behavior
this is considered to be symbolic groups.
UNDERSTANDING THE POWER OF REFERENCE GROUPS
A reference group is any person or group that serves as a point of

comparison (or reference) for an individual in forming either general or
specific values, attitudes, or a specific guide for behavior.
They help us understand the impact of other people on an individuals
consumption beliefs, attitudes, and behavior.
It helps marketers choose their methodology to affect desired changes
in consumer behavior.
From a marketing perspective, reference groups are groups that serve
as frames of reference for individuals in their purchase or consumption
decisions.
Types of Reference Groups

Reference groups can be divided into two major types:
A normative reference group influences your norms, attitudes and
values through direct interaction. Examples of your normative reference
groups include your parents, siblings, teachers, peers, associates and
friends.
A comparative reference group is a group of individuals whom you
compare yourself against and may strive to be like. Examples include
celebrities and heroes.
Factors That Affect Reference Group

Influence
The degree of influence that a reference group exerts on an

individuals behavior usually depends on the nature of the
individual and the product and on specific social factors.
Information and Experience
Credibility, Attractiveness, and Power of the Reference
Group
Conspicuousness of the Product
SELECTED CONSUMER-RELATED REFERENCE GROUPS
Five specific reference groups are considered because they give us

a kind of cross-section of the types of groups that influence
consumers attitudes and behavior. They are:
Friendship groups.
Shopping groups.
Work groups.
Virtual groups or communities.
Consumer-action groups.
Friendship Groups
Friendship groups are classified as informal groups

because they are usually unstructured and lack specific
authority levels.
Seeking and maintaining friendships is a basic drive of
most people.
The opinions and preferences of friends are an important
influence in determining the products or brands a
consumer ultimately selects
Shopping Groups
Two or more people who shop together can be called a
shopping group.
The motivations range from primarily social to
reducing risk.
A special form of a shopping group is the in-home
shopping party.
Early purchasers tend to create a bandwagon effect.
Work Groups
Both the formal work group and the informal friendship/work group
have potential for influencing consumer behavior.
The formal work group consists of individuals who work together as
part of a team and, thus, have the opportunity to influence each others
consumption-related attitudes and actions.
Members of informal work groups may influence the consumption
behavior of other members during coffee or lunch breaks or after-hours
meetings.
Recognizing that work groups influence consumers brand choices and
that most women now work outside the home, firms are redirecting
their sales efforts to the workplace rather than the home.
Virtual Groups or Communities

Thanks to computers and the Internet, we are witnessing the
beginnings of a new type of groupvirtual groups or communities.
The anonymity of the Internet gives its users the freedom to
express whatever views they wish, and to also benefit from
savoring the views of others.
Because of this anonymity, Internet users can say things to others
that they would not say in face-to-face interactions.
Communicating over the Internet permits people to explore the
boundaries of their personalities.
Consumer-Action Groups
A consumer-action group has emerged in response to the
consumerist movement.
They can be divided into two broad categories:
Those that organize to correct a specific consumer abuse and then
disband;
And, those that organize to address broader, more pervasive,
problem areas and operate over an extended or indefinite period
of time.
The overriding objective of many consumer-action groups is to bring
sufficient pressure to bear on selected members of the business
community to make them correct perceived consumer abuses.
CELEBRITY AND OTHER REFERENCE GROUP APPEALS
Appeals by celebrities and other similar reference groups

are used very effectively by advertisers to communicate
with their markets.
Celebrities can be a powerful force in creating interest or
actions with regard to purchasing or using selected goods
and services.
This identification may be based on admiration, on
aspiration, on empathy, or on recognition
CELEBRITY AND OTHER REFERENCE GROUP

APPEALS
Trade or Spokes-Characters :
The Executive and Employee Spokesperson
The Common Man
The Expert
Celebrities
Family AND Family

Influence
Sanjeev Kumar
INTRODUCTION
A family is a group of two or more persons related by
blood, marriage, or adoption who reside together.
Family has great implication for marketing as it has one
of the strongest, most immediate and pervasive effects
on a consumer's personality, motivation, and attitudes.
Family might be described as the most basic social group
of individual members who live together and interact to
satisfy their personal and mutual needs.
Types of Family
Family of Orientation
Consist of ones parents and elders
Provides orientation towards
Social: Religion, Politics, Economics
Emotional: Self Worth, Ambition, Love and Care
Family of Procreation
Consist of ones spouse and children
Most important buying unit in a market
The influence of Family of Orientation decreases with Age
Types of Family
Traditional Family Types:
Married Couple:
Simplest type of family consisting of husband and wife
Nuclear Family:
Consist of Husband Wife and at least one child
Extended Family:
Consist of a nuclear family with at least one grand parent
Joint Family:
Blood relatives and their spouses with kids staying together
Types of Family
New Modes of Family
Blended Family:
A family in which either or both partner were previously
married
Single Parent Family:
A family in which only one of the parent is present
Unmarried Family:
Parents, unmarried, but living together
Communal Family:
A group of families living together and sharing
responsibility
Significance of the Family in

Consumer Behaviour
Primary and strongest reference group: because bonds within
the family are more powerful than any other type of groups.
From the marketing point of view, investigating the family
becomes important since attitudes towards saving and
spending, brands and products are often moulded by the
family.
Many products are some time together purchased or
consumed by family unit.
Even when an individual makes purchases, other members of
the family may heavily influence the buying decision of the
individual.
Functions of a Family
Provides Economic Well Being
Provides Emotional Support
Provides Suitable Life Style
Provides Social Relationships
Provides Morals and Ethical Values
Provides Religious Values
Provides Interpersonal Skills
Family Life Cycle (1/2)

Stage 1 :Bachelorhood
Few Financial Burdens
Fashion and Recreation Oriented
Stage 2: Newly Married Couple

Financially better off
Highest purchase rate of consumables and durables
Romantically inclined
Stage 3 : Parenthood
Elementary school stage (Full nest 1)
Youngest child < 6 years of age
Low Liquid Assets
High purchase of baby food & baby oriented products
High school stage (Full Nest 2)
Youngest child >= 6 years of age
Financially better off
College Phase (Full Nest 3)
All children still financially dependent
High family influence on purchases
Major expense on higher education
Family Life Cycle (2/2)

Stage 4: Post Parent Hood
Empty Nest 1
Head of the family in labour force
No Dependent Children
Expenditure in self development
Empty Nest 2
Household head has retired
Expenditures become more health oriented
Stage 5 :Dissolution :
Solitary Survivor I
Single Surviving head of family in labor force
Supported by family and friends
Have high expendable income
Spent on loneliness reducing products and services
Solitary Survivor II:

Single Surviving wife
Low levels of income and savings
Expenditure on medical products, security, affection
Bachelors
Newly Married Couples
Full Nest-I
Full Nest-II
Full Nest-III
Empty Nest-I
Empty Nest-II
Modern Family Life Cycle
During recent years, many changes in the family have occurred,

particularly in smaller family size, postponement of marriage,
and rising divorce rates.
Thus, another conception of the family life cycle, which includes
such stages as divorced, single parents and middle-aged married
without children, has been offered.
Non Traditional Family Cycle
Types of Family Decisions

Husband Dominated Decisions
Husband takes the purchase decisions

Traditionally in products like Automobiles, Alcohol, Insurance
Wife Dominated Decisions
Wife takes the purchase decisions

Traditionally in products like household maintenance items, food and kitchen
appliances
Joint Decision Making
Both husband and wife make the decision

Traditionally in School choice, living room furniture, vacations
Child Dominated Decision Making
Child makes the final product decision

Traditionally on children related items
Unilateral Decision Making
Taken by any member of the family

Traditionally on Personal Care items, low priced goods
These Traditional Roles are Changing
Wife Dominant Ad
Husband Dominated
Roles in the Family Decision-Making Process

ROLE
Influencers
DESCRIPTION
Family member(s) who provide information to other members about a
product or service
Gatekeepers
Family member(s) who control the flow of information about a product

or service into the family
Deciders
Family member(s) with the power to determine unilaterally or jointly

whether to shop for, purchase, use, consume, or dispose of a specific
product or service
Buyers
Family member(s) who make the actual purchase of a particular product

or service
Preparers
Family member(s) who transform the product into a form suitable for
consumption by other family members
Users
Family member(s) who use or consume a particular product or service
Maintainers
Family member(s) who service or repair the product so that it will provide
continued satisfaction.
Disposers
Family member(s) who initiate or carry out the disposal or

discontinuation of a particular product or service
Socialization of Family Members

Socialization refers to the process of making people behave in a way that is
acceptable to their society.
In fact, socialization of members right from childhood to adulthood is the
primary function that a family plays.
The socialization takes place at two stages, one during childhood, as family of
orientation, and two after marriage as family of procreation.
This reflects itself in the values, lifestyles and overall modes of behavior of
individuals; e.g.. the kind of food to eat, dresses to wear, customs and
practices to follow etc. are all a result of the socialization process.
Such socialization can be discussed at three levels: socialization at childhood,
socialization at adulthood, and intergenerational socialization.
Socialization of Family Members

Socialization at childhood:
Socialization during childhood takes place when children observe and later on
replicate the behavior of the elders (grandparents, parents and older siblings) at
home.
Socialization at adulthood:
Socialization does not get restricted to childhood. It extends throughout the life of
an individual, as an ongoing process.
As a person grows up into adulthood, he interacts with his friend, colleague and
work peers and is influenced by them.
Intergenerational socialization
Values, lifestyles and behavior get transferred from one generation to another. So
do preferences for product and services as also brands.
We often see that people prefer certain brands, just because their parents
preferred it over others and brand loyalty as get transferred from one generation
to another. This is referred to as intergenerational socialization.
Conflict Resolution
Family Decisions are bound to create conflict
Conflicts are resolved by:
Bargaining:
Reaching a compromise on which product to buy
Impression Management:
Misrepresentation of facts in order to create favorable impressions
Use of Authority:
Claiming superior authority to resolve the conflict
Reasoning:
Using logical arguments to resolve the conflict
Playing on Emotions:
Using emotions to resolve the conflict
Additional Information:
Getting additional Data or Third Party Information
Social Class
Sanjeev Kumar
SOCIAL CLASS DEFINITION

Social class is a sociological concept, which is a part of
culture.
This is commonly used in research for understanding
consumption patterns and behavior.
Sociologist have defined social class differently few of them
are given below:
"Social class is the relatively permanent and homogenous
division in society into which individuals and families sharing
similar values life styles, interest, and behavior can be
categorized" .
Social Class and Social Status
Researchers define each social class by the amount of status

(social status) the members of that class have in comparison
to members of other social classes.
In social class research (sometimes called social
stratification), status is frequently thought of as the relative
rankings of members of each social class in terms of specific
status factors. Examples include:
Relative wealthamount of economic assets
Powerdegree of personal choice
Prestigethe degree of recognition received from others
Social Class Measurement

There are three types of measures that are used by the
researchers to measure social class, viz., subjective measure,
reputational measure, and objective measure.
In subjective measure individual are asked to rate their own
social class based on their perception.
In reputational method approach social class is measured by
selecting certain informants from the society. These informants
are asked to make judgement about the person class within the
community.
Third approach is objective method, which takes into
consideration various socioeconomic
and demographic
variables to arrive at the class of the customers.
Social Class Measurement

Objective measure falls under two category, single variable index and
composite index.
Single Variable Index
A single variable index uses only single variable for measurement. Some of
the important variables : Such as occupation, education, income and caste are
discussed next.
Composite Variable Index
Composite index combines a number of socioeconomic factors to overall
standing of member in society.
One of this type of measure used in India is called as SEC (socioeconomic
classification) this combines occupation and education and classify the
respondent in SEC AI, A2, Bl, B2, Cl, C2, and 0 classes.
Social Class Categories
Society is divided in the homogeneous class these classes are

mutually exclusive, exhaustive and influential.
These classes are classified based on some variables.
One There are two-category scheme, three-category scheme,
four-category scheme, five-category scheme,. six, seven and.
sometimes more category schemes.
Nine Category Social-Class Scheme: this is highest level of
classification based on income level
The classification is real lower i.e. lower-lower, lower-middle,
lower-upper, middle lower, middle-middle, middle-upper, upperlower, upper-middle, upper-upper.
SELECTED CONSUMER BEHAVIOR APPLICATIONS

OF SOCIAL CLASS
Social-class profiles provide a broad picture of the values,

attitudes, and behavior that distinguish the members of various
social classes.
Clothing, Fashion, and Shopping
The Pursuit of Leisure
Saving, Spending, and Credit
Diffusion and Adoption

of Innovations
Sanjeev Kumar
Introduction
Faced with a dynamically changing environment, marketers are always obsessed with
regard to new product development.
This could result in modification ranging from slight to moderate to large or the
continuum, or even result in totally new product and service offerings.
The two questions that face a marketer are,
i) whether the modified/new product and service offering would be accepted by the
segment(s), and
ii) how quickly would the product and service offering be accepted by the segment(s).
While the first pertains to what is referred to as diffusion, the second pertains to what
is known as adoption.
The two concepts, the dynamics and the implications for a marketer are explained in
this lecture
THE DIFFUSION PROCESS
The diffusion process is concerned with how

innovations spread and how they are assimilated within
a market.
Diffusion is the process by which the acceptance of an
innovation is spread by communication to members of
a social system over a period of time.
There are four elements to the definition:
The innovation
The channel of communication
The social system
Time
The diffusion process
The innovation
The channels of
communication
The social system
Time
Various approaches
have been taken to
define new product:
1.Firm oriented
2.Product oriented
3.Market oriented
4.Consumer oriented
Firm-Oriented Definitions
A firm-oriented approach treats the newness of a

product from the perspective of the company
producing or marketing it.
When the product is new to the company, it is
considered new.
This ignores whether or not the product is actually
new to the marketplace.
This definition is not very useful when the goal is to
understand consumer acceptance of a new product.
Product-Oriented Definitions
This approach focuses on the features of the product itself and the
effects these features are likely to have on consumers established
usage patterns.
There are three types of product innovations:
Continuous innovation: it is a modification over an existing product;
it is not essentially a new product, but an improvement over the
already existing one
Dynamically continuous innovation : , if it exerts some influence on
usage and behavior patterns, but this influence is not totally disruptive;
it does not totally change behavior patterns
Discontinuous innovation : Discontinuous innovations lead to
disruption of usage and consumption behavior patterns; there is a
change not only in the technology, but also requires consumers to
change to new behavioral patterns in terms of usage and consumption
Market-Oriented Definitions
This approach judges the newness of a product in terms of
how much exposure consumers have to the new product.
There are two ways of looking at this orientation:
The product could be considered to be new if it has been
purchased by only a small percentage of the potential
market.
The product could be considered to be new if it has been
on the market for a relatively short period of time.
These are both subjective measurements because the
research has to establish the degree of market penetration
involved.
Consumer-Oriented Definitions
Some market researchers favor this approach
to defining an innovation.
A new product is any product that a potential
consumer judges to be new.
The newness is based on consumer
perception.

The innovation
The social system

Time
how quickly
innovation spread
depends on channel
on communication.
There are two
sources for
communication:
I. Impersonal
II.Interpersonal
The innovation
The channels of
communication
Time
It is a physical, social or
cultural environment in
which people belong
and within which they
function:
It can be of two type :
I. Traditional social
system
II.Modern social system
The innovation
The channels of
communication
The social system
Backbone of diffusion
process.
it pervades the study of
diffusion in three
distinct ways :
1.The amount of purchase
time.
2.The identification of
adopter categories
3.The rate of adoption.
Purchase Time
This form of time has been characterized as the

amount of time that elapses between the
consumers initial awareness of the new product
and the point at which they purchase or reject
the product.
Purchase time is an important concept because
the average time a consumer takes to adopt a
new product is a predictor of the overall length of
time it will take for the new product to achieve
widespread adoption
Adopter Categories
The concept of adopter

categories
involves
a
classification scheme that
indicates where a consumer
stands relative to other
consumers when he or she
adopts a new product.
Consumers are classified into

five adopter categories;
innovators, early adopters,
early
majority,
late
majority, and laggards.
Rate of Adoption
The rate of adoption is concerned with how long it takes a new
product or service to be adopted by members of a social
system.
Marketers desire a rapid rate of product adoption to penetrate
the market and quickly establish market leadership (obtain the
largest share of the market) before competition takes hold.
A Under certain circumstances, marketers might prefer to
avoid a rapid rate of adoption for a new product.
For example, marketers who wish to use a pricing strategy
that will enable them to recoup their development costs
quickly might follow a skimming policy.
Product Characteristics That Influence

Diffusion
Not all new products have equal consumer acceptance potential. As a
consequence, marketers try to anticipate consumer acceptance.
Researchers have identified five product characteristics that seem to
influence consumer acceptance of new products:
Relative advantagedegree to which potential customers perceive a
new product as superior to existing substitutes.
Compatibilitydegree to which the customer feels the new product is
consistent with their present needs, values, and practices.
Complexitydegree to which a new product is difficult to understand or
use. Complexity is especially important in dealing with technological
fear.
Trialabilitydegree to which a new product is capable of being tried on
a limited basis.
Observabilityease with which a products benefits or attributes can
be observed, imagined, or described to potential consumers.
THE ADOPTION PROCESS
The second major process in the diffusion of innovations is

adoption.
The focus of this process is the stages through which an
individual consumer passes: in arriving at a decision: to try
or not to try; to continue using or to discontinue using a new
product.
It is often assumed that the consumer moves through five
stages in arriving at a decision to purchase or reject a new
product: (1) awareness, (2) interest, (3) evaluation, (4) trial,
and (5) adoption (or rejection).
These are called the stages in the adoption process
Adoption process
Interest
Evaluation
Trial
Adoption or Rejection
Consumer in first
expose to the product
innovation.
Lacks in information
about the product
May only know the
name of product and
its basic features.
Adoption process
Awareness
Evaluation
Trial
Consumer is interested
in product and search
for additional
information.
He wants to know
what is it, how it works
and what its
potentialities are.
Adoption process
Awareness
Interest
Trial
Consumer decides
whether or not to
believe this product or
service.
Will it satisfy his needs
and requirements.
Individual makes a
mental trial of the idea
Adoption process
Awareness
Interest
Evaluation
Consumer uses the product

on a limited basis.
During this stage the
individual determines the
usefulness of the innovation
and may search for further
information about it.
The
trial
stage
is
characterized by small-scale
experimental use, when its
possible.
Adoption process
Awareness
Interest
Evaluation
Trial
If trail in favorable
consumer decides to
use the product
If unfavorable the
consumer decides to
reject it.
Opinion Leadership
Sanjeev Kumar
Opinion
Leadership
The process by which

one person (the
opinion leader)
informally influences
the consumption
actions or attitudes of
others who may be
opinion seekers or
opinion recipients.
What Is Opinion Leadership?
Opinion
Leader
Opinion
Receiver
Opinion
Seeker
ROLE PLAYED BY OPINION LEADERS:

Opinion leaders play a key role and act as a vital role
between the marketer and the consumer.
He communicates informally about product and service
offerings and/or brands; he gives product news and
advice to consumers (current and potential) and also
narrates his personal experience to others.
The major roles played by opinion leaders are,
i) authority figure;
ii) trend setter; and
iii) local opinion leader.
Dynamics of the
Process
Opinion Leadership
Credibility
Positive and Negative Product Information
Information and Advice
Opinion Leadership Is Category-Specific
Opinion Leadership Is a Two-way Street
Motivations Behind Opinion

Leadership
Issues
The Needs of Opinion
Leaders
The Needs of Opinion Receivers
Purchase Pals
Surrogate Buyers versus
Opinion Leaders
Self-involvement
Social involvement
Product involvement
Message involvement

Leadership
Issues
The Needs of Opinion Leaders
New product
information
or
new
usage
The Needs of Opinion

Receivers
Reduction of perceived risk
Purchase Pals
Reduction of search time

Opinion Leaders
Receiving the approval of the

opinion leader

Leadership
Issues
Purchase Pals
Opinion Leaders
Actually
accompany
consumers on shopping
trips
Used 25 percent of the
time for purchases of
electronic equipment

Leadership
Issues
Purchase Pals

Opinion Leaders
Surrogate buyers may replace

opinion leaders
An example is a wardrobe
consultant who helps in the
purchase of business clothes
Measuring Opinion Leadership
OPINION LEADERSHIP
MEASUREMENT
METHOD
DESCRIPTION OF METHOD
SAMPLE
QUESTIONS ASKED
SELF-DESIGNATING
METHOD
Each respondent is asked a

Do you influence
series of questions to
other people in their
determine the degree to which selection of
he or she perceives himself or products?
herself to be an opinion leader.
SOCIOMETRIC
METHOD
Members of a social system

Whom do you
are asked to identify to whom ask?Who asks you
they give advice and to whom for info about that
they go for advice.
product category?
OPINION
LEADERSHIP
MEASUREMENT
METHOD
KEY
INFORMANT
METHOD
OBJECTIVE
METHOD
DESCRIPTION OF METHOD
Carefully selected key

informants in a social system
are asked to designate
opinion leaders.
Artificially places individuals
in a position to act as opinion
leaders and measures results
of their efforts.
SAMPLE
QUESTIONS ASKED
Who
are the
most influential
people in the
group?
Have you tried
the product?
Personality traits
Personality traits that have been useful in

differentiating consumer innovators and non
innovators include:
Consumer innovativeness
Dogmatism
Social character
Need for uniqueness
Optimum stimulation level
Market
Maven
Individuals whose
influence stems from a
general knowledge or
market expertise that
leads to an early
awareness of new
products and services.
The Interpersonal Flow of

Communication
Two-Step Flow
A communication model that portrays opinion
leaders as direct receivers of information from
mass media sources who, in turn, interpret and
transmit this information
Multistep Flow
A revision of the traditional two-step theory
that shows multiple communication flows
Issues in Opinion Leadership and

Marketing Strategy
Advertisements Stimulating Opinion

Leadership
Word of Mouth May Be Uncontrollable
Marketers Seek to Take Control of the

Opinion Leadership Process
Creating products with built-in buzz

potential
Strategy designed to stimulate buzz
Viral marketing
Weblogs
Culture and Sub Culture

Sanjeev Kumar
INTRODUCTION
The study of culture is a challenging undertaking

because its primary focus is on the broadest
component of social behavior in an entire society.
In contrast to the psychologist, who is principally
concerned with the study of individual behavior, or the
sociologist, who is concerned with the study of groups,
the anthropologist is primarily interested in identifying
the very fabric of society itself.
Culture
Culture is the sum total of learned beliefs, values, and
customs that serve to direct the consumer behavior of
members of a particular society.
It is broad and all pervasive innature, inclusive of language,
customs and traditions, norms and laws, religion, art and
music, etc.
It also includes the interests of people, the work practices
and orientations, as also their attitudes towards general
and specific issues
Beliefs, Values and Customs

Beliefs consist of the very large number of mental or verbal
statements that reflect a persons particular knowledge and
assessment of something.
Values also are beliefs, however, values differ from other beliefs
because they must meet the following criteria:
They are relatively few in number.
They serve as a guide for culturally appropriate behavior.
They are enduring or difficult to change.
They are not tied to specific objects or situations.
They are widely accepted by the members of a society
Customs are overt modes of behavior that constitute culturally
approved or acceptable ways of behaving in specific situations.
Ritual, Language and Symbols

Ritual
A ritual is a series of symbolic behaviors that occur in fixed
sequence and are repeated most often.
Language and Symbols
A language is considered to be a system of communicating with
other people using sounds, symbols and words in expressing a
meaning, idea or thought.
Many languages use gestures, sounds, symbols, or words, and
aim at communicating concepts, ideas, meanings, and thoughts.
CHARACTERISTICS OF CULTURE
Culture is Learned :
There are three distinct forms of learning:
Formal learningadults and older siblings teach a young family
member how to behave.
Informal learninga child learns primarily by imitating the
behavior of selected others.
Technical learningteachers instruct the child in an educational
environment as to what, how, and why it should be done
Culture is dynamic
Cultural is not static it is dynamic. It evolves according to changing
social, political,
economical and technical environment.
Culture is shared
Culture is socially shared, based on social interaction and creation.
It cannot exist by itself.
INDIAN CORE VALUES
Harmony and Respect for Others

Savings
Bargaining
Family Bonds
High on Masculinity
Uncertainty Avoidance
THE MEASUREMENT OF CULTURE
There are a variety of measures of culture: projective tests,

attitude measurement techniques, content analysis, consumer
fieldwork, and value measurement instruments.
Content Analysis
Content analysis focuses on the content of verbal, written, and
pictorial communications.
Consumer Fieldwork
When examining a specific society, anthropologists frequently
immerse themselves in the environment under study through
consumer fieldwork.
THE MEASUREMENT OF CULTURE

Value Measurement Survey Instruments
Value instruments ask people how they feel about such basic
personal and social concepts as freedom, comfort, national
security, and peace.
A variety of popular value instruments have been used in
research:
The Rokeach Value Survey
List of Values
Values and LifestylesVALS
SUBCULTURE
In India society is strongly driven by differences of caste, religion,
language, gender, ethnicity, occupation as well as geographic divide.
This give rises to the subcultural differences in India culture.
The great India divide is multi layered.
There are division of 1500 dialects,18 officially recognized language and
several religions communities including Hindu, Muslim, Christian,
Buddhist, jains, Parsi etc.
India is a land of composite culture, a loose unity in diversity.
SubCulture
Subcultures are groups of people within a larger society.
They are segments within the culture share and preserve their own customs
and lifestyles, common characteristics and identifiable patterns of behaviour
making them significantly different from other groups within the larger
culture of which they are a part.
There may be certain common aspects in the Indian culture but almost each
State in the country reflects a sub-culture.
Dress varies, so do eating habits; festive customs are different and the manner
of religious worship is, too.
Subcultures in India can be based on:
Religion (Hindu, Muslim, Sikh, Christian)
Geographic region (North Indian, South Indians, North-east etc.)
Language (Punjabis, Bengalis, Tamilians etc.)
Models in Decision Making

Sanjeev Kumar
NICOSIA MODEL
This model focuses on the relationship between the firm

and its potential consumers.
The firm communicates with consumers through its
marketing messages (advertising), and the consumers
react to these messages by purchasing response.
Looking to the model we will find that the firm and the
consumer are connected with each other, the firm tries to
influence the consumer and the consumer is influencing
the firm by his decision.
Nicosia Model
Nicosia Model
Field 1: The consumer attitude based on the firms messages.
The first field is divided into two subfields.
The first subfield deals with the firms marketing environment and
communication efforts that affect consumer attitudes, the competitive
environment, and characteristics of target market.
Subfield two specifies the consumer characteristics e.g., experience,
personality, and how he perceives the promotional idea toward the product in
this stage the consumer forms his attitude toward the firms product based on
his interpretation of the message.
Field 2: search and evaluation
The consumer will start to search for other firms brand and evaluate the firms
brand in comparison with alternate brands. In this case the firm motivates the
consumer to purchase its brands.
Nicosia Model
Field 3: The act of the purchase
The result of motivation will arise by convincing the
consumer to purchase the firm products from a specific
retailer.
Field 4: Feed back
This model analyses the feedback of both the firm and
the consumer after purchasing the product. The firm
will benefit from its sales data as a feedback, and the
consumer will use his experience with the product
affects the individuals attitude and predispositions
concerning future messages from the firm.
Nicosia Model
The Nicosia model offers no detail explanation of the internal factors,
which may affect the personality of the consumer, and how the
consumer develops his attitude toward the product.
For example, the consumer may find the firms message very
interesting, but virtually he cannot buy the firms brand because it
contains something prohibited according to his beliefs.
Apparently it is very essential to include such factors in the model,
which give more interpretation about the attributes affecting the
decision process.
HOWARD-SHETH MODEL
This model suggests three levels of decision making:

The first level describes the extensive problem solving : At this level the
consumer does not have any basic information or knowledge about the brand
and he does not have any preferences for any product
The second level is limited problem solving. This situation exists for consumers
who have little knowledge about the market, or partial knowledge about what
they want to purchase. In order to arrive at a brand preference some
comparative brand information is sought.
The third level is a habitual response behavior. In this level the consumer knows
very well about the different brands and he can differentiate between the
different characteristics of each product, and he already decides to purchase a
particular product
Howard Seth model

According to the Howard-Seth model there are four major sets of
variables; namely:
Inputs,
Perceptual and Learning Constructs
Outputs
Exogenous(External) variables
Howard Seth model
Howard Seth Model: Inputs

These input variables consist of three distinct types of stimuli
(information sources) in the consumers environment.
The marketer in the form of product or brand information
furnishes physical brand characteristics (significative stimuli) and
verbal or visual product characteristics (symbolic stimuli).
The third type is provided by the consumers social environment
(family, reference group, and social class).
All three types of stimuli provide inputs concerning the product
class or specific brands to the specific consumer.
Perceptual and Learning Constructs,
The central part of the model deals with the psychological variables involved when
the consumer is contemplating a decision.
Some of the variables are perceptual in nature, and are concerned with how the
consumer receives and understands the information from the input stimuli and
other parts of the model.
For example, stimulus ambiguity happened when the consumer does not
understand the message from the environment. Perceptual bias occurs if the
consumer distorts the information received so that it fits his or her established
needs or experience.
Learning constructs category, consumers goals, information about brands, criteria
for evaluation alternatives, preferences and buying intentions are all included.
The proposed interaction In between the different variables in the perceptual and
learning constructs and other sets give the model its distinctive advantage.
Perceptual and Learning Constructs

Outputs
The outputs are the results of the perceptual and learning variables and how the
consumers will response to these variables (attention, brand comprehension,
attitudes, and intention).
Exogenous(External) variables
Exogenous variables are not directly part of the decision-making process.
However, some relevant exogenous variables include the importance of the
purchase, consumer personality traits, religion, and time pressure.
The decision-making process, which Howard-Seth Model tries to explain, takes
place at three Inputs stages: Significance, Symbolic and Social stimuli.
In both significative and symbolic stimuli, the model emphasizes on material
aspects such as price and quality. These stimuli are not applicable in every society.
While in social stimuli the model does not mention the basis of decision-making
in this stimulus, such as what influence the family decision? This may differ from
one society to another.
ENGEL-KOLLAT-BLACKWELL MODEL
This model was created to describe the increasing fast-growing
body of knowledge concerning consumer behavior.
This model, like in other models, has gone through many revisions
to improve its descriptive ability of the basic relationships between
components and sub-components.
This model consists of four stages;
First stage: decision-process stages
The central focus of the model is on five basic decision-process
stages:
Problem recognition, search for alternatives, alternate evaluation
(during which beliefs may lead to the formation of attitudes, which
in turn may result in a purchase intention) purchase, and outcomes.
But it is not necessary for every consumer to go through all these
stages; it depends on whether it is an extended or a routine problemsolving behavior.
The Engel-Kollat-Blackwell Model of

Consumer Behavior
Second stage: Information input
At this stage the consumer gets information from
marketing and non-marketing sources, which also
influence the problem recognition stage of the decisionmaking process.
If the consumer still does not arrive to a specific decision,
the search for external information will be activated in
order to arrive to a choice or in some cases if the
consumer experience dissonance because the selected
alternative is less satisfactory than expected.
Third stage: information processing
This stage consists of the consumers exposure, attention,
perception, acceptance, and retention of incoming
information.
The consumer must first be exposed to the message,
allocate space for this information, interpret the stimuli,
and retain the message by transferring the input to longterm memory.
Fourth stage: variables influencing the decision

process
This stage consists of individual and environmental
influences that affect all five stages of the decision
process.
Individual characteristics include motives, values,
lifestyle, and personality; the social influences are
culture, reference groups, and family. Situational
influences, such as a consumers financial
condition, also influence the decision process.
Limitation
This model incorporates many items, which influence
consumer decision-making such as values, lifestyle,
personality and culture.
The model did not show what factors shape these items,
and why different types of personality can produce
different decision-making?
How will we apply these values to cope with different
personalities?
Religion can explain some behavioral characteristics of
the consumer, and this will lead to better understanding
of the model and will give more comprehensive view on
decision-making.
Consumer Psychographics
Sanjeev Kumar
INTRODUCTION
Lifestyle marketing is a process of establishing relationships
between products offered in the market and targeted lifestyle
groups.
It involves segmenting the market on the basis of lifestyle
dimensions, positioning the product in a way that appeals to the
activities, interests and opinions of the targeted market
A consumer's lifestyle is seen as the sum of his interactions with
his environment.
Lifestyle studies are a component of the broader behavioural
concept called psychographics.
DEMOGRAPHICS, PSYCHOGRAPHICS AND

LIFESTYLE
Demographic variables help marketers " locate" their target market and
psychographic variables provide the marketer with more insight about the
segment.
Psychographics is, in common parlance, lifestyle analysis or AIO research.
A consumer psychographic is a profile of a potential consumer based on
interests, activities and opinions.
It is a snapshot into a consumer's lifestyle organizations often use to quickly
identify potential customers.
In its most widely practiced form, a psychographic study consists of a long list
of statements designed to capture relevant aspects of a consumer, like
personality, hinting motives, interests, attitudes, beliefs and values.
When the study becomes oriented towards a particular product, the
consumers have to respond to statements which are selected for the purpose
i.e. on products, brands, services, competitive situations etc.
Companies then can use this information to create and implement highly
targeted advertising campaigns.
CHARACTERISTICS OF LIFESTYLE
LIFESTYLE IS A GROUP PHENOMENON
LIFESTYLE PERVADES VARIOUS ASPECTS OF LIFE
LIFESTYLE IMPLIES A CENTRAL LIFE INTEREST
LIFESTYLES VARY ACCORDING TO SOCIOLOGICALLY
RELEVANT VARIABLES
APPROACHES TO STUDY LIFESTYLE

The study of lifestyle is interdisciplinary. It draws on a variety of disciplines such as
anthropology, psychology, sociology and economics.
Marketing uses this eclectic approach for segmenting, targeting and positioning
which forms the core of marketing strategy.
Because lifestyle refers to the way in which people live and spend money,
consumers psychographic profiles are derived by measuring different aspects of
consumer behavior such as:
1 Products and services consumed
2 Activities, interests and opinions
3 Value systems
4 Personality traits and self-conception
5 Attitude towards various product classes
Many approaches are available to the study of psychographic variables.
One of the ways is to study the lifestyle variables by an AIO inventory for use in
segmenting, targeting and positioning. Another lifestyle approach is by using
VALS typology. We will expand on these concepts now.
AIO or Activities interests and

opinions
AIO or Activities interests and opinions is one of the methods to carry out
psychographic segmentation.
AIO is mainly used to define an individuals psychographic profile.
It tells a marketer of what a consumer likes, what are his interests and how
does his thought process work.
This is deduced through a series of questions asked by a market researcher
which ultimately gives the consumers psychographic profile.
What are activities? Activities indicate how a consumer/family spends
his/her/their time.
What are interests? Interests are a family's or consumer's preferences or
priorities.
What are opinions? Opinions are how a consumer feels about a wide
variety of events and things.
Psychographic Segmentation
Process Methodology
Marketers gives respondents long list of statements.

Ask them to indicate how much they agree or disagree with each of
the statements
Marketers then create profiles of customers in terms of activities and
patterns of product usage using data from large samples
Advantages of AIO based psychographic

analysis
Defining the target market This method facilitates defining the target market
beyond simple demographic or product usage variations
Create a new view of the existing market Creating strategies with stereotyping in
mind about a typical customer in mind may not always match assumptions.
Position the Product Marketers can use psychographic information to emphasize
features in a product that fits with a persons lifestyle
Communicating product attributes in better way - Provides useful input to
advertisers regarding a much richer mental image of target consumer who are in
the process of communicating something useful about the product.
Product strategy development Helps marketers identify new product
opportunities, draft media strategies by understanding how a product fits or does
not fit into consumer lifestyle.
Marketing Social and Political Issues Psychographic segmentation becomes
important in political campaigns and policy makers for finding commonalities
among consumers
VALS
VALS ("Values and Lifestyles") is a proprietary research
methodology used for psychographic market segmentation.
The VALS . 2 typology draws heavily on Maslow's need hierarchy
and tries to explain the lifestyle orientation of the various
segments based on the values sought by each of them in their
life.
VALS 2 typology classifies the population into 3 - major
consumer groups-the principle oriented, the status oriented, and
the action oriented.
These are then further sub-divided into eight distinctive lifestyle
segments.
VALS-2 CLASSIFICATION
The principles oriented represent consumers whose choices are
governed by their beliefs rather than their need for other
peoples, approval.
The choices of status oriented consumers, on the other hand, are
directed by the action, approval and opinion of other people.
The action oriented consumers are those who are motivated by
a need for social or physical activity, variety and risk bearing.
The eight sub-divisions that these major self orientations have
been divided into also differ in terms of their resources.
Resources in this typology have been defined as physical,
psychological, and demographical factors that become enabling
variables in consumer ' s choice making behaviour
VALS-2 CLASSIFICATION
The principle oriented people have been divided into 2 classes,
the fulfilleds and the believers.
The status oriented people have been further subdivided into 4
classes, the actualizers, the achievers the strivers and the
strugglers.
The action oriented segment comprises of two sub segments of
Experiencers and Makers.
VALS 2 Classification
VALS Framework and Segment

Innovators: Innovators are successful, sophisticated, take-charge people with high self-esteem.
Fullfilleds/Thinkers: Thinkers are mature, satisfied, comfortable, and reflective people who value
order, knowledge, and responsibility.
Achievers: Achievers are motivated by the desire for achievement. Achievers have goal-oriented
lifestyles and a deep commitment to career and family.
Experiencers: Experiencers are motivated by self-expression. As young, enthusiastic, and
impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are
equally quick to cool.
Believers: Like Thinkers, Believers are motivated by ideals. They are conservative, conventional
people with concrete beliefs based on traditional, established codes: family, religion, community,
and the nation.
Strivers: Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers
are concerned about the opinions and approval of others.
Makers: Makers are practical, down-to-earth, self sufficient people who like to work with their
hands. They search products for practical or functional purpose.
Survivors: Survivors live narrowly focused lives. With few resources with which to cope, they
often believe that the world is changing too quickly.
APPLICATIONS OF VALS CLASSIFICATION

Marketers have put to good use this concept which is
based on the idea that individuals pass through a number
of developmental stages" with each stage affecting the
person's attitudes, behaviour and psychological needs. As
the preceding portraits have revealed,
VALS can be used to
Identify target market characteristics and usage.
Guide executional and strategic approaches.
Identify key media for target groups.
Guide merchandising efforts.
Cross Culutre
Sanjeev Kumar
Cross Culture
Cross culture is the interaction of people from different backgrounds
in the business world.
Cross culture is a vital issue in international business, as the success
of international trade depends upon the smooth interaction of
employees from different cultures and regions.
Consumers Cultural View

Consumer Ethnocentrism
Cultural Animosity
Cultural Relativism
Cross Cultural Influences

Consumer Customs and Values
Product Preferences
Language
Symbols
Economic Environment
Variation in Cultural Values

Individual/collective: Individual emphasizes individual initiative and activity,
while collective appreciates group cooperation and conformity.
Performance/status: In performance orientation, opportunities, rewards, and
prestige are based on an individual's performance, while in a status orientation
those things are based on the status associated with the person's family,
position, or class.
Tradition/change: Tradition values no or little change, while a change
orientation sees change or progress as good.
Limited/extended family: Limited defines a family more tightly in terms of
immediate relatives and imposes fewer obligations to respond to the needs of
other family members than does an extended family orientation.
Active/passive: An active orientation reflects the expectation that people will
take a physically active approach to work and play. Passive simply means much
less of that expectation.
Values
Material/nonmaterial: Whether the accumulation of material wealth
is valued (material) or not (nonmaterial).
Hard work/leisure: Is work valued for itself, independent of external
rewards (hard work), or is work merely a means to an end (leisure)?
Risk taking/security: Is the person who risks his established position
or wealth on a new venture admired (risk taking) or considered fool
hardy (security)?
Masculine/feminine: Are rank, prestige, and important social roles
assigned primarily to men (masculine) or women (feminine)?
Competitive/cooperative: Is the path to success found by outdoing
other individuals or groups, or is success to be achieved by forming
alliances with other individuals and groups?
Youth/age: Are prestige, rank, and important social roles assigned to
younger (youth) or older (age) members of society?
Values
Problem-solving/fatalistic: Do people react to obstacles and disasters as
challenges to be overcome (problem-solving), or do they take a what will
be, will be attitude (fatalistic)?
Diversity/uniformity: does the culture embrace variation in religious beliefs,
ethnic background, political views, and so forth?
Postponed gratification/immediate gratification: Is one encouraged to
save for a rainy day (postponed), or should you live for today
(immediate)?
Sensual gratification/abstinence: Is it acceptable to pamper oneself, to
satisfy one's desires for food, drink, or sex beyond the minimum
requirement (sensual) or not (abstinence)?
Religious/Secular: To what extent are daily activities determined by
religious doctrine?
Considerations in Approaching a Foreign Market
Is the Geographic Area Homogeneous or Heterogeneous with Respect

to Culture?
What Needs Can This Product or a Version of It Fill in This Culture?
Can Enough of the People Needing the Product Afford the Product?
What Values or Patterns of Values Are Relevant to the Purchase and
Use of This Product?
What Are the Distribution, Political, and Legal Structures for the
Product?
In What Ways Can We Communicate about the Product?
What Are the Ethical Implications of Marketing This Product in This
Country?

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INTRODUCTORY: LECT 1

Mid Term :30

CONSUMER BEHAVIOR DEFINED

DEFINITION OF CONSUMER BEHAVIOR

The study of consumers as they exchange

DEFINITION OF CONSUMER BEHAVIOR

NATURE OF CONSUMER BEHAVIOR

SCOPE OF CONSUMER BEHAVIOR:

WHY STUDY CONSUMER BEHAVIOR?

CONSUMER BEHAVIOR AND MARKETING CONCEPT

APPLICATION OF CONSUMER BEHAVIOR IN

An understanding of consumer behavior is necessary for long term success

Interdisciplinary Nature of Consumer Behavior

Consumer behavior was a relatively new field of study in the

THE IMPACT OF DIGITAL TECHNOLOGIES ON MARKETING STRATEGIES

Digital technologies allow much greater customization of products,

Consumers have more power than ever before.

Type of Consumer Research

Type of Consumer Researches

Quantitative research deals with numbers and answers questions

Consumer Research Process

The consumer research process can be studied as a 6 staged

Consumer Research Process

Factor Influencing Decision Making

Factor Influencing Decision Making

Factor Influencing Decision Making

Factor Influencing Decision Making

Two or more people who interact to accomplish individual or mutual goals.

Some are primary groups includes family, friends, neighbours and

Factor Influencing Decision Making

Factor Influencing Decision Making

Factor Influencing Decision Making

Economic situation :A person's economic situation will affect product choice

Factor Influencing Decision Making

Consumer Decision Making

Consumer Decision Making

Types of Decision Making

Decisions Making can be of two types,

Type of Decision Making

Levels of Consumer Decision-Making:

Not all consumer decision-making situations receive (or

Levels of Consumer Decision-Making

Levels of Consumer Decision-Making

Type of Consumer Decision Making

Type of Consumer Decision Making

Models of Consumers: Four Views of Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

After a need is recognized, the consumer goes for an information search, so as to

the consumer: demographics (age, gender, education),

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

- Evoked set/Consideration set: This is the set of alternatives that he actively

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making

Stages in Consumer Decision Making