Consumer Behaviour

Module – 2
Dr Virupaksha Goud

Topics to be covered :
Role of Research in understanding consumer behaviour: Consumer Research: Consumer Research
Paradigms (Qualitative & Quantitative Research Methods) Developing research objectives, collecting
secondary data, designing primary research, data analysis and reporting research findings. Models of
Consumer Behaviour: Input-Process-Output Model, Nicosia Model, Howard Sheth Model, Engel-
Kollat-Blackwell Models of Consumer Behaviour, Internal Influences: Motivation, Personality,
Perception, Learning, Attitude, Communications, External Influences: Social Class, Culture,
REFERENCE Groups, Family members. Levels of Consumer Decision Making – Consumer Buying
Decision Process, Complex Decision Making or Extensive Problem Solving Model, Low Involvement
Decision Making or Limited Problem Solving Model, Routinised Response Behaviour, Four views of
consumer decision making. On-line Decision Making: Meaning & Process/Stages Situational
Influences- Nature of Situational Influence (The communication Situation, The Purchase Situation,
The usage situation, The disposition situation) Situational Characteristics and consumption
behaviour (Physical features, Social Surroundings, Temporal Perspectives, Task Definition,
Antecedent States.)

Role of Research in understanding consumer behaviour :

Consumer Research is very much an integral part of the marketing research and enables the
marketer to :
a) Provides information on how the consumers are behaving at the market place.
b) It can be used as a means of identifying future consumer needs or marketing opportunities.
Thus consumer research provides marketers with various information useful in making marketing
decisions.
Some of the typical marketing questions which can be answered by consumer research includes :
1) What is the current consumer trend in the market?
2) Who are the potential customers? (what is their number or size, characteristics features,
needs, wants, buying motives, buyers, users, influences, time of purchase, buying behaviour,
their attitudes, beliefs etc.)
3) What is the consumer satisfaction level of their products / services?

An overview of Consumer Research Process

The two categories of primary consumer research that we focus on are : qualitative research (i.e.
focus groups, depth interviews, and specific associated research approaches), and quantitative
research (i.e. observational research, experimentation and survey research, and their associated
research approaches for collecting information from consumers. There are following six steps of
consumer research process :
The Consumer Research Process

Develop and define

the Objectives

Collect and evaluate

Secondary data

Design a primary
research study

Collect Primary Data

Analyze the data

Prepare a report of the

findings

The Consumer Research Process

The major steps in the consumer research process include 1) defining the objectives of the research,
2) collecting and evaluating secondary data, 3) designing a primary research study, 4) collecting
primary data, 5) analyzing the data, and 6) preparing a report on the findings.

Developing Research objectives

It is important for the marketing manager and the research manager to agree at the outset on the
purpose and objectives of the study to ensure that the research design is appropriate. A carefully
thought out statement of objectives helps to define the type and level of information needed.
For eg. If the purpose of the study is to come up with new ideas for products or promotional
campaigns, then a qualitative study is usually undertaken, in which respondents spend a significant
amount of time face-to-face with a highly trained professional interviewer-analyst who also does the
analysis. If the purpose of the study is to find out how many people in the population use certain
products and how frequently they use them, then a quantitative study that can be computer
analyzed is undertaken.

Collecting Secondary Data

Secondary information is any data originally generated for some purpose other than the present
research objectives. Secondary data includes both internal and external data. Internal secondary
data consists of such information as data generated in-house for earlier studies as well as analysis of
customer files, such as past customer transactions, letters from customers, sales call reports, and
data collected via warranty cards.
External secondary data consists of any data collected by an outside organization. The Indian Census
Bureau collects data on the age, education, occupation and income of Indian residents by state and
region and also provides projections on the future growth or decline of various demographic
segments.
Commercial data is available from marketing research companies that routinely monitor specific
aspects of consumer behaviour and sell the data to marketers. For eg. AC Nielsen.

Qualitative and Quantitative Research Methods

The selection of a research design depends on the purpose of the study. If a marketer needs
descriptive information, then a quanitative research study is called for, but if the purpose is to
generate new ideas, then a qualitative study is appropriate.
Exploratory Research
 Provides insights into and comprehension of an issue or situation.
 Often relies on secondary research such as reviewing available literature and/or data, or
qualitative approaches such as informal discussions with consumers, employees,
management or competitors and more formal approaches through in-depth interviews,
focus groups, case studies or pilot studies.
 Carried out at the very beginning when the problem is not clear or is vague.
 Example : Exploring the reasons for sales decline of a product in a company.

Qualitative Research Design

Data collection techniques for qualitative studies include focus group, depth interviews and
projective techniques.
Depth Interview : A depth interview is lengthy, unstructured and informal, and is between a
respondent and a trained researcher. It generally lasts anywhere between 30 minutes to an hour.
After establishing the general subject to be discussed, the researcher keeps his own participation to
the minimum possible level. The questions are general and respondents are encouraged to talk
freely about their activities, interests, needs, desires, motives, emotions and attitudes, in addition to
the product or brand under study.

Focus Groups : It brings together about eight to ten people with similar backgrounds to meet with a
moderator / analyst for a group discussion. The discussion is focused on a product, service or any
other subject for which the research is conducted. The moderator guides the discussion encouraging
the participants to freely discuss their interests, attitudes, reactions, motives, lifestyles, feelings
about the product and usage experience etc. These sessions generally last for two hours and are
videotaped.

A) Thematic Apperception Techniques : Respondents are shown pictures or cartoons

concerning the product or the topic under study and asked to describe what is happening in
the picture.
B) Word Association Test : Respondents are asked to read a series of words or phrases, one at
a time and asked to answer quickly with the first word that comes into mind after hearing
each one.
C) Sentence Completion Test : The interviewer reads the beginning of a sentence and the
respondent is required to finish it.

Quantitative Research Design

Descriptive Research
 Describes data and characteristics about the population or phenomenon being studied.
 Answers the questions who, what, where, when and how.
  Describes the characteristics of the respondent in relation to a particular product. Deals with
demographic characteristics of the consumer.
 Example : Degree of viewing TV Channels, its variation with age, income level, profession of
respondent as well as time of viewing.

Causal Research
 Conducted to determine the cause and effect relationship between the two variables.
 Way of seeing how actions now will affect a business in the future.
 Example: A clothing company selling blue denim jeans, causal research can measure the
impact of the company changing the product design to the color white. The company bosses
will be able to decide whether changing the color would be profitable.

Three basic approaches to collect data in quantitative study :

Observation : To gain an in-depth understanding of consumers is to observe their behaviour
in the process of buying and using products. Observational research provides valuable
information, which is used in product advertising. For eg. Banks use security cameras to
observe problems customers may have in using ATM. An electronic eye camera may be used
to monitor the eye movements of subjects looking at a series of advertisements.
Experiment : Experiments can be conducted in a laboratory or in the field. The researcher
can test the relative sales appeals for package designs, prices, promotional offers and copy
themes etc. by designing suitable experiments to identify cause and effect.
Survey : In a survey for data collection, consumers are aware of the fact that they are being
studied and participate actively. A survey can be conducted by personal interview (direct
face to face interaction between interviewer and the respondent in home or in a retail
shopping area.), by mail (sending questionnaires directly to individuals who complete it at
their leisure and return it, usually in a postage paid envelope), by telephone or through
Internet (e-mail and cookies etc.).

Quantitative Research Data Collection Instruments

a) Questionnaires : It can be sent through the mail to selected respondents for self-
administration or can be administered by field interviews in person or by telephone.
Questions can be open-ended (requiring answers in the respondent’s own words) or
closed-ended (the respondent merely checks the appropriate answer from a list of
options).
b) Attitude Scales : The most frequently used attitude scales are Likert scales, semantic
differential scales, behaviour intention scales and rank order scales.
LIKERT SCALE
For each of the following statements, please record the number that best describes the
extent to which you agree or disagree with each statement.
1. Strongly agree 2. Somewhat agree 3. Neutral 4. Somewhat disagree 5. Strongly
disagree

------------ Its fun to shop online.

------------I am afraid to give my credit card number online.
Two widely used applications of the Likert Scale are to measure Satisfaction Level
and Scale of Importance.

SEMANTIC DIFFERENTIAL SCALE

For each of the following features, please check one alternative that best expresses
your impression of how that feature applies to online banking:
 Reliable ----------------------------------------------------- Unreliable

BEHAVIOUR INTENTION SCALES

How likely are you to continue using Axis Bank’s online banking for the next six
months?
1. Definitely will continue 2. Probably will continue 3. Might or might not continue
4. Probably will not continue 5. Definitely will not continue

Rank Order Scale

We would like to find out about your preferences regarding banking methods. Please rank the
following banking methods by placing a “1” in front of the method that you prefer most and “5” that
you prefer the least.

--------- Inside the bank ------------Online Banking ----------- Banking by Telephone --------- ATM ---
------ Banking by mail.

Sampling and data collection

A sample is a subset of the population that is used to estimate the characteristics of the entire
population.
Probability Sample : Every member of the population has a known chance of being selected.
a) Simple Random Sample : Every member of the population has a known and equal chance of
being selected.
b) Systematic Random Sample : A member of the population is selected at random and then
every nth person is selected.
c) Stratified Random Sample : The population is divided into mutually exclusive groups and
random samples are drawn from each group.
d) Cluster Sample : The population is divided into mutually exclusive groups and the researcher
draws a sample of the groups to interview.
NonProbability Sample : Specific elements from the population have been predetermined on the
basis of the researcher’s judgement to select a given number of respondents.
a) Convenience Sample : Researcher selects the most accessible population.
b) Judgement Sample : Researcher uses his or her judgement to select population members.
c) Quota Sample : Researcher interviews a prescribed number of people in each of several
categories.

Data analysis and reporting research findings

Data is suitably analysed by using statistical tools like graphs and charts.
The research report includes a brief executive summary of the findings, include recommendations
for marketing action. The body of the report includes a full description of the methodology used and
includes tables and graphs to support the findings. A sample of questionnaire is usually included in
the appendix.

Consumer Behaviour Model : Input-Process-Output Model

Input (Product, Price, Process Output (Action to Buy

Place, Promotion, Social or not to buy)
Circle)
  Input : Input is being given to the consumer in the form of product quality and features,
price (economic pricing or premium pricing), place (accessibility) and Promotion
(Advertisements, Sales promotion offers). Consumer also gets influenced by his friends,
relatives and society in which he stays.
 Process : The input is being processed by the attitude, beliefs, perception, cultural values of
the consumer.
 Output : The final output arises when the consumer takes the decision either to buy the
product or not to buy the product.

Nicosia Model
Field- I
Subfield – I Subfield – II
Firm’s Attributes Message
Consumer’s
Exposure
Attributes

Field – II
Search for &
Attitude evaluation of
means-end
relations

Search
Experience Evaluation
Field – IV

Feedback Motivation

Consumption
Field – III
Storage Decision The act
(Action) purchase

Purchasing
Behaviour

Model was developed in 1966, by Francesco Nicosia. The model suggests that messages from the
firm first influences the predisposition of the consumer towards the product or service. Based on the
situation, the consumer will have a certain attitude towards the product. This may result in a search
for the product or an evaluation of the product attributes by the consumer. If the above step
satisfies the consumer, it may result in a positive response, with a decision to buy the product
otherwise the reverse may occur.
The Nicosia Model, groups the above activity into four basic areas:
Field one has two sub areas – the consumer’s attributes and the firm’s attributes. The advertising
message sent from the company will reach the consumer’s attributes. Depending on the way, the
message is received by the consumer, a certain attribute may develop.
The second area is related to the search and evaluation, undertaken by the consumer, of the
advertised product and also to verify if other alternatives are available.
The third area explains how the consumer actually buys the product.
And area four is related to the uses of the purchased items. This fourth area can be used as an
output to receive feedback on sales results to the firm.

Howard – Sheth Model

Input Perceptual constructs Learning constructs Outputs

Stimulus Display
Intention
Confidence
SIGNIFICATIVE
a. Quality Purchase
b. Price Overt
c. Distinctive
Search
ness
d. Service Intention
e. Availability

Attitude
SYMBOLIC
a. Quality
b. Price Brand
c. Distinctive Stimulus Attitude
Compreh
ness Ambiguity ension
d. Service
e. Availability
Brand
Choice
SOCIAL Comprehe Attention
Motives Criteria
a. Family nsion
b. Reference
Group Perceptual
c. Social Attention Bias Satisfaction
Class

This model basically serves two purposes :

1. It indicates how complex the whole question of consumer behaviour really is.
2. It provides the framework for including various concepts like learning, perception, attitudes
etc. which play a role in influencing consumer behaviour.
Inputs : In the Howard Sheth theory, the most significant stimulus affecting the buying behaviour are
the information cues about the characteristics of the product. These cues may be significative if it
comes to the buyer from the product itself when he is involved in a shopping behaviour. A similar set
of cues, which are symbolic in nature may also act as information sources. The product or broad
characteristics acting as information cues are quality, price, distinctiveness, service and availability.
There are impersonal sources like mass media, communication and advertising over which the firm
has no control. The third source is social information cues which could affect buying behaviour
towards the product or brand and these include family, friends or other members of the groups with
whom buyer comes into contact or to which he aspires to be in.

Perceptual Constructs : This refers to all the complex states or psychological processes and how the
individual deals with the information cues received from various sources. All information available is
not attended to (attention) and may not always be crystal clear in its meanings (stimulus ambiguity).
The individual may be engaged in an overt search for information and sometimes the information
cues to which the individual may attend may be distorted (perceptual bias) .

Learning Constructs :Motives refers to the goals the individual attempts to achieve through his or
her buying behaviour. More closely related to the buyers intention is his attitude towards the
product/brand. Other learning constructs include ‘brand comprehension’ i.e, knowledge/awareness
about the brand characteristic features that forms the basis for the buyers evoked set of
alternatives; choice criteria, and the confidence the individual has about his/her brand
comprehension, attitudes or intentions. Finally the model includes a construct, ‘satisfaction’. This
refers to feedback mechanism, i.e. the post purchase and post use evaluation of the output of the
process.

External Variables : These variables are not directly involved in the decision making process. The
relevant external variables include importance of the purchase, consumer’s personality traits, time
pressure and availability of funds.

Engel-Kollat, Blackwell Model (EKB Model)

The figure shows the model as consisting of four sections: 1) Information input, 2) Information
processing, 3) Decision process stages, and 4) Variables influencing the decision process. The start is
the decision process stage when the consumer recognizes an unfulfilled or partially fulfilled needs.

Decision process Stage : The starting point of any purchase decision is consumer need. This occurs
when a consumer perceives a difference between his ideal desired state and actual state of affairs.
Consumers buy products or services when they believe the product or service would be able to solve
the problem. Marketers often attempt to make customers aware of unperceived needs and
problems through marketing communications. Further steps in the decision-making include
information search, evaluation of alternatives, purchase, consumption and post consumption
evaluation.

Information input : Information from marketing and non-marketing sources feed into the
information processing section of the model. After passing through consumer’s memory, which
serves as a filter, the information has initial influence at the problem recognition stage of the
decision making process. If the available information is insufficient, there may be more deliberate
search for information.

Information processing : The information processing section of the model consists of consumer’s
exposure, attention, comprehension, acceptance and retention of marketer controlled or non-
marketing information. Before a message can be used, the consumer must first be exposed to it,
allocate information processing capacity to it, interpret the stimulus, be persuaded by it and retain
the message in the long term memory.

Variables influencing the decision process : The last section of the model consists of individual and
environmental influences that affect all the five stages in the decision process. Individual differences
 include motives, values, lifestyle, personality and attitudes. The environmental influences are
culture, social class, family and reference groups.

Variables influencing Decision

Input Information Decision Process
process
processing
Need
Recognition
Exposure Environmental
Information Influences
Mem Search Culture
Attention
ory Social class
Stimuli Personal influences
Marketer Comprehension Evaluation of Family
dominated m alternatives Situation
Nonmarketer
dominated Acceptance
Purchase

Individual differences
Retention Consumer resources
Consumption
Motivation
Knowledge
Attitude
Post Personality
External Search consumption Values
evaluation Lifestyle

Dissatisfaction Satisfaction
Consumer Buying Decision Process

Problem Recognition (Bobby realizes

that he is fed up with a black and
white TV that has bad sound system.)

Information search (Bobby surfs the

Internet to learn about TVs.)

Evaluation of alternatives and

selection (Bobby compares several
models in the store in terms of
reputation and available features.)

Outlet selection and purchase (Bobby

chooses one model it has a feature
that really appeals to him and buys it.)

Post-purchase action (Highly satisfied

with the performance of TV and
recommends it to friends also.)

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. At this level, the consumer needs a great deal of information.
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. They must gather
additional brand information to discriminate among the various brands.
Routinized Response Behaviour : 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. In some situations, they may search for a small amount of additional information; in
others, they simply review what they already know.
Continuum of consumer decision-making

Routinized Response Limited Problem Solving Extensive Problem Solving

Behaviour

Low-cost products More expensive products

Frequent purchases Infrequent purchases

Low-involvement High-involvement

Familiar product/brand Unfamiliar product/brand

Little thought, search or time given to purchase Extended thought, search

Models of consumers : four views of consumer decision making

An economic view : In the field of theoretical economics, which portrays a world of perfect
competition, the consumer has often been characterized as making rational decisions. This model is
called the economic man theory. To behave rationally in the economic sense, a consumer would
have to 1) be aware of all available product alternatives, 2) be capable of correctly ranking each
alternative in terms of its benefits and disadvantages, 3) be able to identify the one best alternative.

A passive view : It depicts the consumer as basically submissive to the self-serving interests and
promotional efforts of marketers. In the passive view, consumers are perceived as impulsive and
irrational purchasers, ready to yield to the aims and into the arms of marketers. Salespeople regard
the consumer as an object which can easily be manipulated.

A cognitive view : This model portrays the consumer as a thinking problem solver. Within this
framework, consumers frequently are pictured as either receptive to or actively searching for
products and services that fulfil their needs and enrich their lives. The cognitive model focuses on
the processes by which consumers seek and evaluate information about selected brands and retail
outlets.

An emotional view : This model depicts that each of us is likely to associate deep feelings or
emotions, such as joy, fear, love, hope, sexuality, fantasy and even a little magic with certain
possessions or purchases. These feelings or emotions are likely to be highly involving. For instance, a
person who misplaces a favourite fountain pen might go to great lengths to look for it, despite the
fact that he or she has six others at hand.
Online Decision Making Process

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-purchase Decision CRM

A unique characteristic of online shopping environments is that they allow vendors to create retail interfaces with
highly interactive features. One desirable form of interactivity from a consumer perspective is the implementation
of sophisticated tools to assist shoppers in their purchase decisions by customizing the electronic shopping
environment to their individual preferences. The availability of such tools, which we refer to as interactive decision
aids for consumers, may lead to a transformation of the way in which shoppers search for product information
and make purchase decisions.

While making purchase decisions, consumers are often unable to evaluate all available alternatives in great
depth and, thus, tend to use two-stage processes to reach their decisions. At the first stage, consumers typically
screen a large set of available products and identify a subset of the most promising alternatives. Subsequently,
they evaluate the latter in more depth, perform relative comparisons across products on important attributes, and
make a purchase decision. Given the different tasks to be performed in such a two-stage process, interactive
tools that provide support to consumers in the following respects are particularly valuable: (1) the initial screening
of available products to determine which ones are worth considering further, and (2) the in-depth comparison of
selected products before making the actual purchase decision.

The first interactive tool, a recommendation agent (RA), allows consumers to more efficiently screen the
(potentially very large) set of alternatives available in an online shopping environment. Based on self-explicated
information about a consumer's own utility function (attribute importance weights and minimum acceptable
attribute levels), the RA generates a personalized list of recommended alternatives. For example, While doing
Online shopping for Dresses, Filtering by Size, Price Range, Sales offers, New Collection or Fresh Arrivals
help customers in shortlisting the items. The second decision aid, a comparison matrix (CM), is designed to
help consumers make in-depth comparisons among selected alternatives. The CM allows consumers to organize
attribute information about multiple products in an alternatives × attributes matrix and to have alternatives sorted
by any attribute.

Nature of Situational Influence

Situational influences are temporary conditions or settings that occur in the environment at a
specific time and place and have a demonstrable and systematic effect on current behaviour.
The consumption situation can become the basis for developing and positioning new products for
specific consumer segments. For eg. One of the models of Timex, Ironman Triathlon, is designed for
joggers and swimmers and has features such as stopwatch to count time and laps and is water
resistant upto 100 m.
As computer usage spread in business, industry and government offices in India, Timex introduced a
new line of watches, Timex Data Link watches, targeted at busy executives. These watches have the
features of uploading phone numbers and appointments from an electronic day-planner on a
personal computer to the watch’s memory.
There are three broad types of situation variables:
1. Communications situation
2. Purchase situation
3. Usage or consumption situation
The Communication Situation
The communication situation refers to the setting in which consumers are exposed to information
from interpersonal or commercial sources that has an impact on their behaviour.
Three types of communication situations may influence consumer response:
1. The exposure situation
2. The context of the communication
3. The consumer’s mood while exposure to communication occurs.
Considering the exposure situation to advertising, there may exist several possibilities, such
as:
1. The consumer may read a certain magazine when at home or outside.
2. The consumer views a TV commercial alone, with family members, or friends.
3. He hears a radio commercial while driving his car or while relaxing in his living room.
4. He will appear for his final exam tomorrow.
The context of communication is another variable that is likely to influence the reaction of
consumers. For eg. The nature of programme in which the commercial appears may significantly
affect information processing. Coca Cola has a policy of not advertising during any sad programmes.
The mood of consumers is also an important variable when they are exposed to marketing
communications. Research shows that pleasant mood tends to positively influence processing and
recall of brand-related information.

Purchase Situation
Three factors particularly influence marketing strategy with regard to purchase situation:
1. In-store purchase situation
2. Whether or not the purchase situation relates to gift giving.
3. Whether or not the purchase situation is anticipated or unanticipated.
In-store environment : Several stimuli present in the in-store environment which influence
customer’s mood and their willingness to visit and move around include décor, sounds, aroma,
lighting, dress and behaviour of sales personnel; product availability, shelf position, price deals,
displays and physical space are important factors. Music also increased the customer’s perception of
how long they waited for a service.

Gift-giving Situation : Whether the product is being purchased for personal consumption or for
giving a gift also influences purchases. Marketers offer a wide range of products for gift-giving
occasions. Consumers are likely to be more involved while purchasing a gift than purchasing the
same item for personal consumption. On the one hand, the gift reflects the giver’s image and
thoughtfulness and on the other hand, it implies the giver’s impression of the receiver’s personality
and image as reflected by the gift’s image and functionality.

Unanticipated purchase Situations: A common situation is when unexpected guests arrive and
consumers have to rush for special shopping. A product failure or going out-of-stock are important
situations and precipitate the need for making purchase decisions. For eg. The cooler fan suddenly
stops working on a hot summer day, or the consumer finds a food item out of stock and may have to
make a purchase trip immediately if the item is really important.

Usage or Consumption Situations

The consumption situation refers to the occasion of consumer’s product use. When guests arrive,
the type and number of items served during meals change than what is generally consumed in the
family. People use different dresses to wear at home and at work. A consumer may use a particular
brand of deodorant for a special occasion and another one for everyday use.
Seven consumption situations for cold drinks:
1. Entertaining close friends at home
2. Going to a hotel on Saturday night
3. Watching a favourite sports event or TV programme
4. Engaging in a sports activity or hobby
5. Taking a weekend pleasure trip
6. Working at home
7. Relaxing at home
Most of these situations are not unanticipated. Consumers know in advance that they would
entertain friends or visit a hotel. However, if friends drop in unexpectedly or the consumers take an
unplanned trip, these situations may compel them to take some unplanned purchases quickly and
even pay more than they ordinarily do.

The amount of time available for purchase has a significant effect on consumer decision process.
Generally, the lesser the time available, the shorter will be the information search. The less available
information will most likely form the basis for decision and less than optimal purchase will be made.

Social surroundings refer to the presence of other individuals during the purchase or consumption
process. Presence of guests, the social occasion, the importance of friends and neighbours at the
time of a purchase or consumption influence behaviour. Individuals tend to meet group
expectations, particularly when the behaviour is visible.

Antecedent states are momentary conditions such as shopping when in a bad mood, tired or
anxious, or buying on impulse. Moods both affect and get affected by the consumption process.
They also influence consumer’s decision processes and the purchase and consumption of various
products. Consumer’s perception of service and waiting time is also influenced by moods.

Self and Self – Image

Each individual has an image of himself or herself as a certain kind of person, with certain traits,
skills, habits, possessions, relationships, and ways of behaving. As with other types of images and
personality, the individual’s self-image is unique, the outgrowth of that person’s background and
experience. Individuals develop their self-images through interactions with other people – initially
their parents, and then other individuals or groups with whom they relate over the years.

A variety of different self-images have been recognized in the consumer behaviour literature for a
long time. In particular, many researchers have depicted some or all of the following kinds of self-
image: 1) actual self-image (how consumers in-fact see themselves), 2) ideal self-image (how
consumers would like to see themselves), 3) social self-image (how consumers feel others see
them), and 4) ideal social self-image (how consumers would like others to see them).
In different contexts, consumers might select a different self-image to guide their attitudes or
behaviour. For eg. With some everyday household products, consumers might be guided by their
actual self-image, whereas for some socially conspicuous products, they might be guided by their
social self-image. When it comes to an important and a strong personal goal or wish, like losing
weight and feeling better about oneself and one’s appearance, an individual might be guided by
either their ideal self-images or ideal social self-images.

One or Multiple Selves

Individuals have been thought to have a single self-image and to be interested, as consumers, in
products and services that satisfy that single self. However, it is more accurate to think of consumers
as having multiple selves. This thinking reflects the understanding that a single consumer is likely to
act quite differently with different people and in different situations. For eg. A person is likely to
behave in different ways with parents, at school, at work, at a museum opening, or with friends at a
nightclub.

The Extended Self

Consumers’ possessions can be seen to confirm or extend their self-images. For eg. Acquiring a
desired pair of Levis Jeans might serve to expand an Indian teenager’s image of self. The teenager
might now see herself as being more desirable, more fashionable, and more successful because she
has a pair of desirable jeans.
It has been proposed that possessions can extend the sell in a number of ways: 1) actually, by
allowing the person to do things that otherwise would be very difficult to accomplish (eg. Problem
solving by using a computer), 2) symbolically, by making the person feel better or bigger (receiving
an employee award for excellence), 3) by conferring status or rank (eg.among Collectors of antique
paintings because of the ownership of a masterpiece).

Altering the Self

Sometimes consumers wish to change themselves to become a different or improved self. Clothing,
grooming aids or cosmetics, and all kinds of accessories (such as sunglasses, jewellery, tattoos or
even colored contact lenses) offer consumers the opportunity to modify their appearances and
thereby to alter their selves.

Dynamics of Perception
The combination of physical stimuli from the outside environment and previous experience produce
for each of us a very private, very personal picture of the world. Because each person is a unique
individual, with unique experience, needs, wants, desires and expectations, it follows that each
individual’s perceptions are also unique.
Perceptual Selection : Consumers subconsciously exercise a great deal of selectivity as to which
aspects of the environment they perceive. Consider, for example a woman in a supermarket. She
may be exposed to over 20000 products of different colours, sizes and shapes. Yet she manages on a
regular basis to visit her local supermarket, select the items she needs, pay for them and leave all
within a relatively brief period of time. This is because she exercises selectivity in her perception.
Marketing stimuli include an enormous number of variables that affect the consumer’s perception
such as the nature of the product, its physical attributes, the package design, the brand name, the
advertisements and commercials.
People usually see what they expect to see, and what they expect to see is usually based on
familiarity, previous experience, or expectations. A student who has been told by his friends that a
particular professor is interesting and dynamic will probably perceive the professor in that manner
when the class begins.
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. A student who is looking for a new cell
phone provider is more likely to notice and read carefully ads for deals and special offers than his
roommate.
Perceptual organization : People do not experience the numerous stimuli they select from the
environment as separate and discrete sensations; rather, they tend to organize them into groups
and perceive them as unified wholes.
The simplest visual illustration consists of a figure on a ground. The figure is perceived more clearly
because in contrast to its ground, it appears to be well defined, solid and in the forefront. The
ground is usually perceived as indefinite, hazy and continuous. Advertisers have to paln their
advertisements carefully to make sure that the stimulus they want noted is seen as figure and not as
ground. Individuals tend to group stimuli so that they form a unified picture. For eg. Advertisement
for tea may show a young man and woman sipping tea in a beautiful room before a heater. The
overall mood implied by the grouping of stimuli leads the consumer to associate the drinking of tea
with romance, fine living and winter warmth.
Individuals have a need for closure. For eg. Hearing the beginning of a message leads to the need to
hear the rest of it.
Perceptual Interpretation : Individuals interpret the stimuli in such a way that they serve to fulfil
personal needs, wishes, interests and so on.
People tend to attribute the qualities they associate with certain people to others who may
resemble them. For this reason, the selection of models for print advertisements and for television
commercials can be a key element in their ultimate persuasiveness.
Many people tend to jump to conclusions before examining all the relevant evidence. For eg. The
consumer may hear just the beginning of a commercial message and draw conclusions regarding the
product or service being advertised.

Perceived Price
How a consumer perceives a price- as high, as low, as fair-has a strong influence on both purchase
intentions and purchase satisfaction. Customers do pay attention to the prices paid by other
customers and that the differential pricing strategies used by some marketers are perceived as
unfair by others.
Products advertised as on sale tend to create enhanced customer perceptions of savings and value.
Different formats used in sales advertisements have different impacts, based on consumer reference
prices. A reference price is any price that a consumer uses as a basis for comparison in judging
another price.

Perceived Quality of Products

Consumers often judge the quality of a product or service on the basis of a variety of informational
cues that they associate with the product. Cues that are intrinsic concern physical characteristics of
the product itself such as size, colour, flavour, or aroma. In some cases, consumers use physical
characteristics (e.g. the flavour of ice cream or cake) to judge product quality. In few of the cases ,
they judge the products based on extrinsic cues such as packaging, pricing, advertising and even
peer pressure.

Perceived Quality of Services

Because of its intangibility, consumers rely on extrinsic cues to evaluate service quality. In evaluating
a doctor’s services, for eg. They note the quality of the office and examining room furnishings, the
number of framed degrees on the wall, the pleasantness of the receptionist and the professionalism
of the nurse; all contribute to the consumer’s overall evaluation of the quality of a doctor’s services.
Because the actual quality of services can vary from day to day, from service employee to service
employee and from customer to customer, marketers try to standardize their services in order to
provide consistency of quality.
Price/Quality Relationship
Perceived product value has been described as a trade off between the product’s perceived benefits
or quality and the perceived sacrifice-both monetary and non-monetary – necessary to acquire it.
Consumers rely on price as an indicator of product quality, that consumers attribute different
qualities to identical products that carry different price tags, and that such consumer characteristics
as age and income affect the perception of value. Consumers using price/quality relationship are
actually relying on a well-known brand name as an indicator of quality without actually relying
directly on price.

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