LEARNING AND MEMORY

LEARNING
A POSITIVE AND LONG LASTING CHANGE IN BEHAVIOUR OF
A PERSON ON ACQUIRING KNOWLEDGE OR SKILLS VIA
READING , LISTENING, DISCUSSION, DIALOGUE, OBSERVING,
TRAINING, EXPERIENCE etc.
A PERSON WHO HAS LEARNT SOMETHING BEHAVES
DIFFERENTLY.

LEARNING PROCESS

BEFORE LEARNING

POSITIVE CHANGE IN
BEHAVIOUR AFTER LEARNING

LEARNING PROCESS
THREE STEPS
OBSERVE

CREATE

LEARNING
SITUATION
VISIBLE
5 COMPONENTS

LEARNING
PROCESS
NOT VISIBLE

+VE CHANGE
IN BEHAVIOUR
VISIBLE

1. TEACHER / TRAINER
2. PARTICPANTS (SUITABLE NUMBER, QUALITY)
3. PHYSICAL / OPEN ENVIRONMENT
4. FACILITATING EQUIPMENT
5. TEACHING METHODOLOGY. LECTURE, DISCUSSION, WORKSHOPS,
CASE STUDY, EXERCISES

CHANGE IN JOB BEHAVIOUR

A PERSON WHO HAS LEARNT SOMETHING BEHAVES DIFFERENTLY

20% CHANGE JOB

BEHAVIOUR THEMSELVES
80% NEED A COURSE
CHAMPION FOR REGULAR
FOLLOW UP FOR CHANGE

HOW DO PEOPLE LEARN?

THROUGH FIVE SENSES. ALL SENSES ARE NOT
EQUALLY EFFECTIVE IN LEARNING.
SPECIALLY BY HEARING, SEEING AND DOING i.e.
EXPERIENCE

FOUR TYPES OF LEARNT BEHAVIOURS

1. PHYSICAL LEARNING:
a) HOW TO WALK, TALK, INTERACT, LISTEN etc

2. SYMBOLIC LEARNING:
a) VERBAL CODES, NON-VERBAL CODES
b) MEANING OF WORDS, BODY LANGUAGE, GESTURES, 3Ps OF
VOICE

3. PROBLEM SOLVING LEARNING:

a) HOW TO IDENTIFY THE PROBLEM AND SUGGEST ITS SOLUTION

4. AFFECTIVE LEARNING:
DEVELOPING A FAVOURABLE OR AN UNFAVOURABLE ATTITUDE
TOWARDS A COMPANY AND ITS PRODUCTS.
AFFECTS PURCHASE AND USE OF A PRODUCT
DONE VIA PROMOTION

FACTORS WHICH AFFECT LEARNING

FOR LEARNING TO TAKE PLACE (SPEED OF LEARNING,
EXTENT OF LEARNING, WHAT IS LEARNT), THE FOLLOWING
FACTORS MUST BE PRESENT
1. MOTIVE TO LEARN A SKILL OR GAIN KNOWLEDGE
A MOTIVE MOVES AND STIMULATES A PERSON TO WORDS A
SPECIFIC GOAL.
EXTENT OF INVOLVEMENT DETERMINES A PERSONS LEVEL OF
MOTIVATION TO SEEK KNOWLEDGE ABOUT A PRODUCT, SERVICE OR
ON A SPECFIC TOPIC
UNCOVERING A CONSUMERS (PERSONS) MOTIVE IS THE PRIME
TASK OF A MARKETER AND THEN SHOW HOW THE PRODUCT
FULFILLS THE MOTIVE

FACTORS WHICH AFFECT LEARNING

2. CLUE , HINT
A STIMULUS WHICH PROVIDES A DIRECTION TO SATISFY A
NEED e.g. IN A HUNGRY STATE, AROMA OF FOOD, A
RESTAURANT SIGN, AN ADVERTISMENT ACTS AS A CLUE

3. RESPONSE
A MENTAL OR A PHYSICAL, POSITIVE OR NEGATIVE, VERBAL
OR NONVERBAL REACTION OF A CONSUMER (PERSON)
TOWARDS A STIMULUS.
THERE MUST INTERACTIVE LEARNING

4. REINFORCEMENT
ANY FORCE WHICH HAS THE POWER TO GET SOMETHING
LEARNT, DONE AND GET REPEATED IS CALLED
REINFORCEMENT.
REINFORCEMENT MAY BE POSITIVE OR NEGETIVE
REINFORCEMENT

HOW MUCH DO WE RETAIN?

(AFTER 6 HOURS)
10 % OF WHAT YOU READ
20 % OF WHAT YOU HEAR
30 % OF WHAT YOU SEE
50 % OF WHAT YOU HEAR AND SEE
70 % OF WHAT YOU SAY
90 % OF WHAT YOU SAY AND DO

RETENTION IMPROVEMENT
RETENTION CAN BE IMPROVED BY A TEACHER, TRAINER OR
A SALES REPRESENTATIVE IN THE FOLLOWING WAYS:
1. DEVELOPING MOTIVATION TO LEARN
2. USING INTERESTING LEARNING MATERIAL ENTHUSIASTICALLY
3. ENSURING ATTENTION / CONCERTATION WITH NO / FEW
DISTRACTION S
4. ADDRESSING MORE SENSES, SPECIALLY SIGHT , HEARING, 3Ps
OF VOICE
5. SEQUENTIAL BUILD-UP

MEMORY
MEMORY MEANS ABILITY TO STORE PRIOR
KNOWLEDGE AND RETRIEVE (USE IN FUTURE)
INFORMATION / KNOWLEDGE AFTER IT HAS BEEN
ACQUIRED AND UNDERGONE PROCESSING

TYPES OF MEMORY
ULTRA SHORT-TERM MEMORY
INFORMATION IS RETAINED FOR A FEW SECONDS / MINUTES.
e.g.
TRAFFIC SIGNS
SUBTOTAL IN MENTAL ARITHMETIC, UNPOPULAR BRANDS

TYPES OF MEMORY
SHORT-TERM MEMORY
INFORMATION IS RETAINED FOR A FEW DAYS / MONTHS
e.g.
SCHOOL LEARNING

TYPES OF MEMORY
LONG-TERM MEMORY
INFORMATION IS RETAINED FOR MANY MONTHS / YEARS
e.g.
SYMBOLIC LEARNING
PROFESSIONAL KNOWLEDGE
PROBLEM SOLVING LEARNING / INFORMATION
SKILLS LEARNING
POPULAR BRANDS NAMES
LOCATION OF MERCHANDISE IN A SUPERMARKET / DEPARTMANTAL
STORE

OBJECT , PERCEPTION, ATTITUDE AND BEHAVIOUR

15

16

ATTITUDE AND BEHAVIOUR

OBJECT
FOCAL POINT OF EXPOSURE AND INFORMATION.
CAN BE TANGIBLE, INTANGIBLE (ABSTRACT), A PERSON, A
GROUP OF PERSONS, A GROUP OF SIMILAR PROUCTS
(PRODUCT CLASS), A BRAND, ADVERTISMENT, MEDIA
VEHICLE, A JOB, A COMPANY etc.

16

ATTITUDE AND BEHAVIOUR

PERCEPTION:
UNDERSTANDING OF INFORMATION ABOUT AN OBJECT, RECEIVED
THROUGH FIVE SENSES, RESULTING IN A STATE OF MIND TOWARDS
THE OBJECT, IS CALLED PERCEPTION.
POSITIVE, NEGTIVE, FAVIOURABLE OR UNFAVIOURABLE.
ALTHOUGH DIFFICULT, PERCEPTION CAN BE CHANGED, THUS,
ATTITUDE CAN BE CHANGED.

18

ATTITUDE AND BEHAVIOUR

ATTITUDE
A PERSONS FAVOURABLE OR UNFAVOURABLE STATE OF MIND
TOWARDS AN OBJECT, BASED ON HIS PERCEPTION /
UNDERSTANDING.
THE EXTENT TO WHICH A PERSON LIKES OR DISLIKES AN OBJECT
CAN BE MILD, SOMEWHAT STRONG OR VERY STRONG.
TENDS TO BE STABLE BUT CAN BE CHANGED OVER A PERIOD OF
TIME IF IT IS OF MILD EXTENT AND OF SHORT DURATION.
IN SALES, ATTITUDE IS FORMED BEFORE PURCHASE
ATTITUDE IS INVISIBLE.

18

19

ATTITUDE AND BEHAVIOUR

BEHAVIOUR
EXPRESSION OF ONES STATE OF MIND (ATTITUDE) THROUGH:1) WORDS
VERBAL OR WRITTEN LANGUAGE

2)

FACIAL / BODY EXPRESSIONS / DISTANCE

3)
4)

NON-VERBAL LANGUAGE, BODY LANGUAGE.

THREE Ps OF VOICE
VISUALS

BEHAVIOUR IS VISIBLE

NORMALLY, BEHAVIOUR MATCHES WITH ATTITUDE.

SITUATIONAL INFLUENCES CAN MAKE BEHAVIOUR NOT
MATCHING ATTITUDE.

MANAGE PEOPLE BY LISTENING AND OBSERVING

THEIR BEHAVIOUR. LISTEN AND OBSERVE WHAT
PEOPLE SAY AND DO ON JOB

19

SEQUENCE OF STEPS
IN A HIGH INVOLVEMENT PURCHASE SITUATION
EXPOSURE TO AN OBJECT
INFORMATION PROCESSING / PERCEPTION
(RECEIVED FROM DIFFERENT SOURCES)
ATTITUDE
(MILD, MODERATE, STRONG)
BEHAVIOUR
(MAKING CHOICE BASED ON ATTITUDE)

SOURCE CREDIBILITY

LIKABILITY
EXPERTISE
TRUSTWORTHINESS

CHARACTERISTICS OF ATTITUDE
SEVEN CHARACTERISTICS
1.
2.

ATTITUDE HAS AN OBJECT, A FOCAL POINT

ATTITUDE HAS A DIRECTION
HOW A PERSON FEELS TOWARDS AN OBJECT?
FAVOURABLE OR UNFAVIOURABLE.
ATTITUDE EXPRESSES A PERSONS LIKES / DISLIKES OF AN
OBJECT
e.g. SUZUKI MEHRAN IS POORLY MADE.

CHARACTERISTICS OF ATTITUDE
3. ATTITUDE SHOWS A DEGREE / AN EXTENT OF LIKING / DISLIKING.
MILD, MODERATE , STRONG
e.g.
SUZUKI MEHRAN IS MILDLY / MODERATLY / STRONGLY POORLY
MADE

CHARACTERISTICS OF ATTITUDE
4. ATTITUDE SHOWS INTENSITY OF SURENESS OF LIKING / DISLIKING.
EXTENT OF SURENESS OR EXTENT OF CONFIDENCE OF A PERSON
ABOUT THE OBJECT.
HOW SURE A PERSON FEELS ABOUT HIS / HER CINVICTION REGARDING
THE OBJECT.
DEGREE OF LIKING / DISLIKING AND INTENSITY OF SURENESS OF
ATTITUDE ARE NOT THE SAME
e.g.
A PERSON SAYS:
SUZUKI MEHRAN IS STRONGLY POORLY MADE.
THIS INDICATES:
a)
b)
c)

PERSONS NEGATIVE ATTITUDE

DEGREE OF NEGATIVE ATTITUDE IS STRONG
THE PERSON MAY HAVE LOW LEVEL OF SURENESS / CONVICTION THAT HE IS RIGHT.
A PERSONS NEGATIVE ATTITUDE CAN BE CHANGED TO A POSITIVE ATTITUDE IF HE FEELS
WEAK ABOUT HIS CONVICTION AND THE ATTITUDE IS OF SHORT DURATION

CHARACTERISTICS OF ATTITUDE
5. ATTITUDE HAS CONSISTENCY :
THIS MEANS ATTITUDE TENDS TO BE STABLE / CONSISTANT
OVER A PERIOD OF TIME.
THE LENGTH OF TIME IS NOT INFINITE. IT IS NEITHER VERY
TEMPORARY NOR PERMANENT.
THE LONGER AN ATTITUDE IS HELD, THE MORE STONGER
IT BECOMES AND SHOWS MORE RESISTANT TO CHANGE.
NEWLY FORMED ATTITUDE IS EASIER TO CHANGE BECAUSE
IT IS LESS STABLE

CHARACTERISTICS OF ATTITUDE
6. ATTITUDE IS LEARNT:
LIKE VAIOUS SPORTS , PROFESSIONS etc
ATTITUDE IS LEARNT FROM:
a)
b)

PERSONAL EXPERANCE WITH AN OBJECT

INFORMATION FROM OTHERS
e.g.
FRIENDS, RELATIVES, ADVERTISMENTS, OPNION, LEADERS, MEDIA etc

CHARACTERISTICS OF ATTITUDE
7. ATTITUDE CAN BE MEASURED:
LIKERT SCALE
A STATISTICAL FIVE POINTS SCALE USED TO MEASURE THE
ATTITUDE OF A PERSON TOWARDS AN OBJECT.
OFFER AN ATTRIBUTE BASED STATEMENT TO A RESPONDENT IN
ORDER TO EXPRESS HIS EXTENT OF AGREEMENT OR
DISAGREEMENT ON A FIVE POINTS SCALE

FACTORS
WHICH AFFECT ATTITUDE FORMATION
1. PERSONAL EXPERIENCE WITH AN OBJECT
PRODUCTS, REPRESENTATIVES, STORES, etc
SOME OBJECTS ARE FAMILIAR, OTHERS ARE NEW
EVALUATE THE NEW AND RE-EVALUATE THE FAMILIAR OBJECTS.
EVALUATION / RE-EVALUATION DEVELOPES AN ATTITUDE
TOWARDS THE OBJECT
PERSONAL EXPERIENCE IS THE STRONGEST / PRIMARY
SOURCE WHICH AFFECTS THE ATTITUDE.

FACTORS
WHICH AFFECT ATTITUDE FORMATION
PERSONAL EXPERIENCE IS INFLUENCED BY:
CHANGING NEEDS OVERTIME (FLC)
PERSONALTY / SELF CONCEPT OF THE PERSON
AGGRESSIVE / PASSIVE , INTEROVERT / EXTROVERT

DIFFERENT PERCEPTION OF THE OBJECT BY OTHERS

FACTORS
WHICH AFFECT ATTITUDE FORMATION
2. REFERENCE GROUPS:
a)

3.
4.
5.
6.

MEMBERSHIP GROUPS.

PRIMARY AND SECONDRY GROUPS

b) ASPIRATIONAL GROUPS
CULTURE / SUBCULTURE, SOCIAL CLASS OF THE
CONSUMER
OPENION LEADERS
MEDIA / PROMOTION
SITUATIONAL FACTORS

CHANGING ATTITUDE

LEVEL OF CUSTOMER INVOLVEMENT

LEVEL OF INVOLVEMENT MEANS:

A) TIME INVESTED
B) EFFORTS MADE
LEVEL OF INVOLVEMENT DEPENDS UPON.
1) SIMPLE OR COMPLEX PRODUCT
2) NEED FOR INFORMATION
3) BRAND DIFFERENCES (FEW , MANY & SIGNIFICANT).
4) RISK LEVEL.
5) PRICE LEVEL.
6) PRICE DIFFERENCE BETWEEN BRANDS.
7) FREQUENCY OF PURCHASE.
8) SOCIAL SIGNIFICANCE OF PRODUCT.
9) IMPORTANCE OF STYLE OF THE PRODUCT

HIGH, MEDIUM AND LOW LEVEL OF CUSTOMER INVOLVEMENT.

FACTORS WHICH DETERMINE

SUCCESS OF CHANGING CONSUMER ATTITUDE
TOWARDS AN OBJECT
1. HOW STRONGLY AN ATTITUDE IS HELD
a) STRONGLY HELD ATTITUDE IS DIFFICULT CHANGE
b) WEAKLY HELD ATTITUDE IS EASY TO CHANGE

2.
3.
4.
5.

LENGTH OF ATTITUDE PERIOD

DEGREE OF SURENESS
SOURCE CREDIBILITY
FREQUENCY OF EXPOSURE TO A PROMOTIONAL MESSAGE

STRATEGIES FOR CHANGING ATTITUDE

TWO TYPES OF STRATEGIES FOR CHANGING ATTITUDE
a) LOW INVOLVEMENT STRATEGIES
b) HIGH INVOLVEMENT STRATEGIES

LOW INVOLVEMENT STRATEGIES

FOUR LOW INVOLVEMENT STRATEGIES

THESE STRATEGIES ARE USED WHEN CONSUMER INTEREST IN

THE PRODUCT (OBJECT) IS LOW AND THEREFORE THE
CONSUMER SPENDS LESS TIME AND LESS EFFORTS IN
THINKING ABOUT / EVALUATING A PURTICULAR BRAND.
LOW INVOLVEMENT CONDITION
THUS, A MARKETER SHOULD NOT DEVELOP TO MUCH DETAILED
PROMOTIONAL COMMUNICATION ABOUT THE BRAND TO
CHANGE THE ATTITUDE

LOW INVOLVEMENT STRATEGIES

1. LINK THE USE OF A BRAND TO A FAMILIAR GENERAL ISSUE
RELATED WITH IT.
THIS MAY INCREASE CONSUMERS INVOLVEMENT
e.g.
ENGAGEMENT (FAIR AND LOVELY CREAM)
2. LINK THE USE OF A BRAND TO A PERSONAL SITUATION
e.g.
SEND A PROMOTIONAL MESSAGE TO TARGET CUSTOMERS AT THE
TIME WHEN THEY ARE BUSY IN AN ACTUAL ACTIVITY RELATED
WITH THE PRODUCT.
AT THIS TIME, THEIR INTREST MY BE HIGH TO GET THEM INVOLVED.
e.g.
SUNTAN LOTION PROMOTIONAL MESSAGE DURING MID-DAY
HOURS OF SUMMER WEEKENDS

LOW INVOLVEMENT STRATEGIES

3. INTRODUCE A NEW IMPORTANT PRODUCT CHARACTERISTIC (Fs)
AND ITS BENEFITS
e.g. ADDITION OF CALCIUM IN MILK
4. INFORM CONSUMER OF THE ABSENCE OF A PRODUCT
CHARACTERISTICS (Fs)
e.g. ABSENCE OF SUGAR, CAFFEINE IN A PRODUCT

HIGH INVOLVEMENT STRATEGIES

FOUR HIGH INVOLVEMENT STRATEGIES

THESE STRATEGIES ARE USED WHEN CONSUMER INTEREST IN

THE PRODUCT (OBJECT) IS HIGH AND THEREFORE THE
CONSUMER SPENDS MORE TIME AND MORE EFFORTS IN
THINKING ABOUT / EVALUATING A PURTICULAR BRAND.
HIGH INVOLVEMENT CONDITION
THUS, A MARKETER SHOULD DEVELOP A MUCH DETAILED
PROMOTIONAL COMMUNICATION ABOUT THE BRAND TO
CHANGE THE ATTITUDE

HIGH INVOLVEMENT STRATEGIES

1. CHANGING EXISTING BELIEF ABOUT THE PRODUCT BASED ON
INCORRECT / INCOMPLETE INFORMATION
2. INCREASE CONSUMERS LEVEL OF EVALUATION OF THE BENEFITS
OF A PERTICULER PRODUCT
e.g. LISTERINE MOUTHWASH
TASTES STRONG BECAUSE IT IS STRONG

HIGH INVOLVEMENT STRATEGIES

3. INTRODUCE A MAJOR FEATURE OR INFORM WHAT IT DOES NOT
HAVE
e.g. ADDITION OF FLOURIDE IN CREST TOOTHPAST TO PERVENT
TOOTH DECAY
COKE SUGAR FREE
4. STRESS THE IMPORTANCE OF BEING AN INDIVIDUAL PERSONALTY
AND NOT BEING LIKE OTHERS

COMMUNICATION PROCESS

INTERPERSONAL SKILLS
MAJOR INTERPERSONAL SKILLS
1. COMMUNICATION SKILLS
2. LEADERSHIP SKILLS OR INFLUENCING SKILLS
3. MOTIVATIONAL SKILLS
4. GRIEVANCES HANDLING SKILLS
5. CONFLICTS HANDLING SKILLS

PROMOTIONAL PROCESS
COMMUNICATION PROCESS
A PROCESS OF VERBAL AND NON-VERBAL
TRANSMISSION OF INFORMATION ( THOUGHTS ,
MESSAGE ) BETWEEN THE SENDER AND THE
RECEIVER , TO ACHIEVE PROMOTIONAL AND
MARKETING OBJECTIVES; AND ALSO TO
ESTABLISH AND MAINTAIN GOOD PERSONAL
RELATIONSHIP
SENDER AND THE RECEIVER ARE THE PARTICIPANTS.
BOTH USE VERBAL AND NON-VERBAL CODES

ELEMENTS OF COMMUNICATION PROCESS

SENDER

ENCODING

MESSAGE

MEDIA

DECODING

NOISE
DISTURBANCES AND
COMPETING MESSAGES

FEEDBACK

RESPONSE

USE EFFECTIVE AND EFFICIENT MEDIA:

A) REACHES THE TARGET AUDIENCE
B) REACHES FREQUENTLY
C) HAS GOOD IMPACT

RECEIVER

PROMOTIONAL AND MARKETING OBJECTIVES

A) PROMOTIONAL OBJECTIVES
TO CREATE:1)
2)
3)
4)
5)
6)

AWARENESS
KNOWLEDGE
UNDERSTANDING
LIKING
PREFERNCE
TO HAVE BRAND NAME AT THE TOP OF CUSTOMERS MIND

B) MARKETING OBJECTIVES
1) COMMERCIAL OBJECTIVES
SALES, GR, MS, RANKING, NEW CUSTOMERS DEVELOPMENT

2) FINANCIAL OBJECTIVES
PROFIT, ROI

COMMUNICATION PROCESS
SENDER:
THE INITIATOR OF COMMUNICATION
ENCODING:
CONVERTING OR EXPRESSING THOUGHTS INTO VERBAL AND
NON-VERBAL SYMBOLS / CODES FOR TRANSMISSION TO A
RECEIVER
MESSAGE:
ENCODED INFORMATION OR THOUGHTS SENT BY THE SENDER
TO THE RECEIVER
MEDIUM / CHANNEL :
MEDIUM:
THE VEHICLE USED TO CONVEY THE MESSAGE.
CHANNEL:
THE ROUTE TRAVELED BY THE MESSAGE. MESSAGES ARE
TRANSMITTED BY SENSORY ROUTES. FIVE SENSORY
CHANNELS

ELEMENTS OF COMMUNICATION PROCESS

SENDER

ENCODING

MESSAGE

MEDIA

DECODING

NOISE
DISTURBANCES AND
COMPETING MESSAGES

FEEDBACK

RESPONSE

USE EFFECTIVE AND EFFICIENT MEDIA:

A) REACHES THE TARGET AUDIENCE
B) REACHES FREQUENTLY
C) HAS GOOD IMPACT

RECEIVER

ENCODING

CONVERTING THOUGHTS INTO CODES / SYMBOLS

FOR THE CREATION OF A MESSAGE .
CODES / SYMBOLS USED IN COMMUNICATION :
A) WORDS
B) BODY LANGUAGE / FACIAL EXPRESSIONS
C) PITCH , PACE AND PAUSE OF VOICE
D) VISUALS
E) COLOURS

THESE CODES MUST BE KNOWN TO THE RECEIVER

NON-VERBAL OR BODY LANGUAGE

MEANS CONVEYING INFORMATION THROUGH:

A) BODY ACTIONS AND MOVEMENTS
B) FACIAL EXPRESSIONS
C) PHYSICAL DISTANCE BETWEEN THE SENDER AND
THE RECEIVER
D) POSITION OF ARMS, HANDS AND LEGS
E) POSTURE / BODY ANGLE
F) EYE TO EYE CONTACT
G) DRESS, APPEARANCE, HANDSHAKE

COMMUNICATION

SPEAK IN THE LANGUAGE OF

THE RECEIVER OR THE CUSTOMER

COMMUNICATION PROCESS
DECODING:
INTERPRETATION OF MESSAGE INTO THOUGHTS
OR INFORMATION BY THE RECEIVER
RECEIVER
THE INDIVIDUAL WHO RECEIVES THE
INFORMATION THROUGH VARIOUS SENSES.
FEEDBACK :
RESPONSE OF THE RECEIVER,
VERBAL OR NON-VERBAL, +VE OR
VE, TO THE MESSAGE RECEIVED AND WHICH IS
CONVEYED BACK TO THE SENDER.

COMMUNICATION PROCESS
NOISE :
FACTORS WHICH DISTRACT OR DISTURB THE
COMMUNICATION PROCESS. COMMUNICATION BARRIERS.
CAN BE EXTERNAL NOISES OR INTERNAL THOUGHTS
COMMUNICTION SETTING/ ENVIRONMENT

PHYSICAL ENVIRONMENT
PLACE, TEMPERATURE, LIGHTING, NOISE LEVEL

DISTANCE BETWEEN THE PARTICIPANTS

SEATING ARRANGMENT
TIME OF THE DAY (APERTURE)

MOOD OF THE RECEIVER / PARTICIPANT

CULTURE OF THE RECEIVER / PARTICIPANT

PERFECT COMMUNICATION
IT MEANS
THE MENTAL PICTURE PERCEIVED BY THE RECEIVER

EXACTLY MATCHES
WITH THAT OF THE SENDER
ON A SUBJECT OR PRODUCT UNDER DISCUSSION

EFFICTIVE COMMUNICATION PROCESS

EFFECTIVE COMMUNICATION PROCESS DEPENDS

UPON :-

1) RIGHT TARGET RECIEVER

2)
3)
4)
5)

MOOD OF THE RECEIVER

NUMBER OF SENSES ENGAGED
CREDIBILITY OF SOURCE (SENDER, MEDIA, CELEBRITY )
QUALITY AND LENGTH OF MESSAGE, MATCHING WITH
RECEIVERS NEEDS
6) MESSAGE SUPPORTED BY AN OPINION LEADER
7) RIGHT WAY OF MESSAGE DELIVERY
8) RIGHT FREQUENCY

SOURCE CREDIBILITY
OF REP, CO, CELEBRITY, MEDIA ETC.

LIKEABILITY

EXPERTISE

TRUSTWORTHINESS

EFFECTIVE COMMUNICATION PROCESS

THE RIGHT PERSON SHOULD GIVE
THE RIGHT MESSAGE, IN THE RIGHT WAY,
TO THE RIGHT TARGET CUSTOMER,
AT THE RIGHT TIME AND IN THE
RIGHT NUMBER OF TIMES.

DESIGNING MESSAGE AND SELECTING MEDIA

AIDA MODEL

THE AIDA MODEL EXPLAINS WHAT A MESSAGE

AND THE MEDIA SHOULD DO TO THE RECEIVER,
CUSTOMER I.E. SUGGESTS QUALITIES OF A
GOOD MESSAGE AND MEDIA.
QUALITIES OF A GOOD MESSAGE AND MEDIA
A)
B)
C)
D)

GAINS ATTENTION
CREATES INTEREST
STIMULATES DESIRE TO POSSESS THE PRODUCT
TRIGGERS ACTION

WHY DOESNT
A SALES MESSAGE GET ACROSS?

1)
2)
3)
4)
5)
6)
7)

SEVEN MAIN REASONS

PEOPLE LISTENS SELECTIVELY.
IF A MESSAGE DOES NOT MATCH WITH HIS NEEDS, IT
WILL NOT HOLD HIS ATTENTION / INTEREST.
THE MESSAGE IS TOO LONG AND BIAS.
LACK OF EVIDENCE TO SUPPORT THE MESSAGE.
THE MESSAGE IS GIVEN AT THE TIME WHEN THE
CUSTOMER IS MENTALLY NOT IN MOOD TO LISTEN.
POOR CREDIBILITY OF SOURCE.
POOR MESSAGE DELIVERY PROCESS.
INFRENQUENCLY OF MESSAGE

FOUR ASPECTS OF MESSAGE

59

FOUR ASPECTS OF A MESSAGE

WHICH
DETERMINE ITS EFFECTIVENESS

MESSAGE CONTENTS
MESSAGE STRUCTURE
MESSAGE FORMAT
MESSAGE SOURCE CREDIBILITY

60

FOUR ASPECTS OF A MESSAGE

1)

MESSAGE CONTENTS
WHAT TO SAY TO THE TM AUDIENCE TO PRODUCE THE
DESIRED RESPONSE I .E :WHICH BENEFITS TO USE?

A)

- TYPES OF BENEFITS
RATIONAL BENEFITS
LOGICAL . BASED ON REASONS (SPACED).
HARD SELLING APPROACH
EG: PERFORMANCE QUALITY, DURABILITY, RELIABILITY,
OPTIONS, AVAILABILITY, ATTRACTIVE PRICE, PSS ETC.

B)

EMOTIONAL BENEFITS
STIR +VE OR VE EMOTIONS WHICH MAKE A CUSTOMER BUY
A PRODUCT .
SOFT SELLING APPROACH
EG: STATUS, BEAUTIFUL, PRIDE, LOVE, FEAR, SHAME ETC. 61

FOUR ASPECTS OF A MESSAGE

2)

MESSAGE STRUCTURE
HOW TO CONVEY THE MESSAGE ?
- SEQUENTLY
ORDER OF PRESENTING BENEFITS
- WHETHER THE MESSAGE SHOULD BE ONE OR TWO
SIDED (BALANCED MESSAGE ) ?
a)

IN ONE-SIDED MESSAGE, STRONGEST BENEFITS SHOULD

BE PRESENTED FIRST TO GAIN ATTENTION AND
INTEREST.
USED WHEN AUDIENCE IS LESS INFORMED .
LAY PUBLIC.

b)

TWO SIDED MESSAGE IS USED WHEN THE AUDIENCE IS

WELL INFORMED. PROFESSIONALS.
62

FOUR ASPECTS OF A MESSAGE

3)

MESSAGE FORMAT
HOW TO SAY MESSAGE SYMBOLICALLY IN DIFFERENT SYMBOLS OR
CODES.
WORDS, BODY LANGUAGE , ACTING, VISUALS , THREE Ps OF VOICE ,
COLOURS ETC
USE CREATIVE CODES OR SYMBOLS.

PAY ATTENTION TO :a) IN A PRINT PROMOTION:ATTENTION GETTING CATCHY WORDS FOR CREATIVITY IN THE HEADLINE ,SLOGAN,
BODY TEXT, VISUALS AND COLOURS (ESPECIALLY IN FOOD PRODUCTS)
b) IN A RADIO COMMERCIAL :WORDS, THREE Ps OF VOICE
c) IN A TV COMMERCIAL OR IN PERSONAL SELLING :WORDS, VISUALS, COLOURS, THREE Ps OF VOICE,
BODY LANGUAGE, ACTING, DRESS, APPEARANCE ETC.

63

FOUR ASPECTS OF A MESSAGE

4)

MESSAGE SOURCE CREDIBILITY

CREDIBILTY OF THE COMPANY OR THE PERSON

WHICH SAYS OR DELIVERS THE MESSAGE?
COMPANY, SALESMAN, CELEBRITY.
THE MESSAGE SOURCE SHOULD BE CREDIBLE.
LIKEABLE (GRACEFUL), EXPERT, TRUSTWORTHY,
GOOD COMMUNICATOR ETC.
A DOCTOR LISTENS, HAS FAITH AND BUYS FROM
CREDIBLE REPRESENTATIVE.
THE CUSTOMER SHOULD SHOW +VE ATTITUDE
BOTH TOWARDS THE MESSAGE AND THE
SOURCE FOR MESSAGE EFFECTIVENESS .
64

PRINT PROMOTION
MUSTS OF A MESSAGE

FOR A MESSAGE TO BE ACCEPTED,RETAINED, RECALLED

AND BE EFFECTIVE, IT MUST;
1- FIVE SENSES, INVOLVE ATLEAST TWO SENSES. BE SEEN
AND HEARD BY THE RECEIVER AT THE SAME TIME.
2- GET ATTENTION AND CREATE INTEREST VIA
CREATIVITY AND CREDIBILITY OF THE
SOURCE.
3- BE EASILY UNDERSTOOD AND MUST
STIMULATE DESIRE TO HAVE THE PRODUCT.
4- CREATE A POSITIVE ATTITUDE AND MAKE THE
CUSTOMER TO TAKE ACTION
65

PROBLEM RECOGNITION

STAGES IN
CONSUMER BUYING PROCESS
CONSUMER READINESS PROCESS
PROBLEM RECOGNITION / NEED RECOGNITION
AWARENESS OF ALTERNATE PRODUCTS
INFORMATION SEARCH
COMPREHENSION , EVALUATION , CONVICTION
PURCHASE DECISION
POSTPURCHASE BEHAVIOUR

WHEN SATISFIED
WHEN UNSATISFIED
DISPOSES OF PRODUCT AFTER USE

PROBLEM RECOGNITION
A CONSUMER RECOGNISING A DIFFERENCE OF SUFFICIENT
MAGNITUDE BETWEEN:
IS LEVEL / ACTUAL STATE OF SATISFACTION BEING PROVIDED
BY THE CURRENT PRODUCT AND
SHOULD / DESIRED LEVEL OF SATISFACTION WANTED FROM
THE NEW PRODUCT
IS CALLED PROBLEM RECOGNITION

PROBLEM
SHOULD / DESIRED LEVEL OF SATSFACTION WANTED FROM THE NEW PRODUCT

)
IS

GAP / PROBLEM

/A
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NP

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PROBLEM RECOGNITION

THE BIGGER IS THE MAGNITUDE OF DIFFERENCE

BETWEEN THE IS AND THE SHOULD LEVEL OF
SATISFACTION,
THE MORE WILL BE THE CONSUMER MOTIVATED TO
PURCHASE THE NEW PRODUCT.

FACTORS WHICH DETERMINE

MOTIVATION TO SOLVE THE PROBLEM

MAGNITUDE OF DIFFERENCE BETWEEN THE IS AND THE

SHOULD LEVEL OF SATISFACTION
ECONOMIC IMPORTANCE OF THE PROBLEM

HOW CONSUMER RECOGINZE THE PROBLEM

FIVE WAYS
1. INADEQUATE STOCK OF PRODUCT.
MOST FREQUENT REASON
e.g. CONSUMER RUNNING OUT OF STOCK OF GROCERY, PETROL
HEALTH / GROOMING PRODUCTS
2. DISSATISFACTION WITH THE EXISTING PRODUCT DUE TO ANY REASON
e.g. JACKET BEING OLD STYLE / OUT OF FACTION. MAY CAUSE
EMBARRASSMENT TO CONSUMER.
BUYS A JACKET OF LATEST FASHION

HOW CONSUMER RECOGINZE THE PROBLEM

3. CHANGES IN PERSONAL DEMOGRAPHICS AND ENVIRONMENTAL
CIRCUMSTANCES:
e.g. CHANGE IN:
STAGE OF FLC
CHANGE IN SOCIAL CLASS
INFLUENCE OF REFERENCE GROUP
CHANGE IN ENVIORNMENT
4. CHANGES IN FINANCIAL STATUS. UPWARD / DOWNWARD.
5. PROMOTIONAL ACTIVITIES BY COMPANIES OF A NEW PRODUCT

APPLICATION OF PROBLEM RECOGNITION IN MARKETING

TWO MARKETING APPLICATIONS OF CONSUMER PROBLEM
RECOGNITION:
1. MEASURES PURCHASE INTENTION.
THE MAGNITUDE OF PROBLEM RECOGNITION OF A CONSUMER
CAN BE MEASURED ON THE LIKERT SCALE

LIKERT SCALE
DEGREE OF INTENTION TO BUY A PRODUCT TO SOLVE THE
PROBLEM
1. FIRM AND IMMEDIATE INTENTION TO BUY A SPECFIC BRAND
2. POSITIVE INTENTION WITHOUT A DEFINITE BUYING PLAN
(TIME, BRAND , QUANTITY, OUTLET etc)
3. NETURAL INTENTION. MIGHT, MIGHT NOT BUY
4. INTENTION TO BUY IS NOT DEFINITE
5. FIRM INTENTION NOT TO BUY

APPLICATION OF PROBLEM RECOGNITION IN MARKETING

2. DECISION TO USE PROBLEM RECOGINTION PROMOTION.
PROMOTION IS USED TO ACTIVATE PROBLEM RECOGINTION
AMONG POTENTIAL CONSUMERS.
FOCUS PROMOTION ON:
a) CONSUMERS DESIRED STATE OF SATISFACTION TO BE
ACHIEVED WITH A NEW PRODUCT
b) ACTUAL STATE OF SATISFACTION WITH THE EXISTING
PRODUCT.
SHOW DIFFERENCE OF SUFFICIENT MAGNITUDE

TYPES OF CONSUMER PROBLEM SOLVING APPROACHES

BASED ON SIMPLICITY OR COMPLEXICITY OF A PRODUCT ,
THERE ARE FIVE TYPES OF CONSUMER PROBLEM SOLVING
APPROACHES.
1. ROUTINE PROBLEM SOLVING (RPS) / HABITUAL BUYING
BEHAVIOUR
BUYING A CERTAIN BRAND / STAPLE FOOD ITEM / SIMPLE
PRODUCT ON ROUTINE AND FREQUENT BASIS. INVOLVES
LITTLE / NO INFORMATION SEEKING.
QUICK APPROACH.
CONSUMERS ARE LOYAL TO A BRAND, AUTOMATIC AND
HABITUAL BUYING.
LOW INVOLVEMENT

TYPES OF CONSUMER PROBLEM SOLVING APPROACHES

2. VARIETY SEEKING BUYING BEHAVIOUR (VSBB)
SIMPLE AND FREQUENTLY PURCHASED ITEMS WITH LOT OF
VARIETY.
LOW PRICE.
LOW INVOLVEMENT.
3. LIMITED PROBLEM SOLVING (LPS)
THIS APPROACH IS FOLLOWED WHEN CONSUMERS BUY A
NEW BRAND IN A FAMILIAR DURABLE PRODUCT CALSS /
CATEGORY.
MODERATE INVOLVEMNET

TYPES OF CONSUMER PROBLEM SOLVING APPROACHES

4.

5.

EXTENSIVE PROBLEM SOLVING (EPS) / COMPLEX BUYING BEHAVIOUR.

THIS APPROACH IS FOLLOWED WHEN CONSUMER BUYS A BRAND IN AN
UNFAMILIAR PRODUCT CLASS / CATEGORY, A VERY COMPLEX / EXPENSIVE
DURABLE PRODUCT WITH MANY DIFFERENCES.
e.g. HOUSE, A CAR.
SUBSTANTIAL AMOUNT OF INFORMATION, TIME AND EFFORTS ARE NEEDED.
HIGH INVOLVEMENT
DISSONANCE REDUCING BUYING BEHAVIOUR.
AFTER PPURCHASE THE CONSUMER HAS DISCOMFORT ( DISSONANCE)
WHEN HE HEARS POSITIVE REMARKS ABOUT OTHER BRANDS.
SHOWN WHEN THE PRODUCT IS EXPENSIVE, RISKY, FEW BRAND
DIFFERENCES etc
THE BUYERS NEEDS ASSURANCE FROM THE SELLER TO REDUCE HIS
DISCOMFORT

MAJOR CHARACTERISTICS
OF CONSUMER PROBLEM SOLVING APPROACHES
CHARACTERISTIC

RPS / HBB

VSBB

LPS

EPS / CBB

DRBB

INVOLVEMENT
LEVEL

LOW

LOW

MODERATE

HIGH

HIGH

INFORMATION
SEARCH

MIN

MIN

MODERATE

EXTENSIVE

EXTEMSIVE

TYPES OF CONSUMER PURCHASE DECISIONS

FIVE TYPES OF DECISIONS IN PURCHASE TO SOLVE THE PROBLEM

1. WHAT TO BUY?
DECIDE PRODUCT CLASS , BRAND WITH CERTAIN DESIRED Fs / Bs
2. HOW MUCH TO BUY?
QUANTITY
3. WHEN TO BUY / TIME DECISION ?
THIS DECISION IS INFLUENCED BY:
a) URGENCY OF NEED
b) AVAILIBILITY OF CHOSEN ITEM
c) CLEARENCE SALES (SITUATIONAL FACTOR)

TYPES OF CONSUMER PURCHASE DECISIONS

4. WHERE TO BUY?
STORE.
NOT ALL STORES ARE ALIKE.
STORE LOCATION, OUTLOOK, SERVICES OFFERED (FULL OR NARROW, FULL OR
FEW PRODUCT LINES, PRICES, PHYSICAL ENVIRONMENT, SERVICES
PERSONNNEL.
TWO EXACTLY THE SAME BRANDS
e.g. SAME BRAND OF AN AIR CONDITIONER.
a)
b)

SOLD WITH HOME DILLVIERY, INSTALLATION, WARRANTY etc. BY A DEPARTMENTAL

STORE.OR
SOLD WITHOUT PSS BY A DISCOUNT STORE.
LOW PRICE

5. DECIDE SHOP SEARCH AND PAYMENT TERMS

EXTENSIVE SERACH OR BUY FROM THE FIRST OUTLET
MOP
TOP
MOD

SEARCH AND EVALUATION OF INFORMATION

INFORMATION
INFORMATION MEANS KNOWLEDGE ON PRODUCT, PRICE,
STORE, AVAILABILITY.
SEARCH CAN BE MENTAL AND PHYSICAL.

TYPES OF CONSUMER INFORMATION SEARCH ACTIVITIES

1. PREPURCHASE OR ONGOING SEARCH ACTIVITIES.
SEARCH ACTIVITIES CARRIED OUT INDEPENDENT OF
INTENTION TO PURCHASE
e.g.: A CONSUMER READING A MAGAGINE ON AUTOMOBILES
2. INTERNAL SEARCH ACTIVITIES:
RECALLING AND REVIEWING INFORMATION ALREADY
STORED IN MEMORY WHICH MAY RELATE TO THE
PURCHASE SITUATION
e.g.: RECALLING A FRIENDS VE COMMENTS ON A COFFEE
BRAND

TYPES OF CONSUMER INFORMATION SEARCH ACTIVITIES

3. EXTERNAL SEARCH ACTIVITIES:
SEARCHING INFORMATION FROM OUTSIDE SOURCES
e.g.: ADS, FRIENDS, SALESPEOPLE, DISPLAYS, MAGAZINES
etc

TYPES AND SOURCES OF INFORMATION

TYPES OF INFORMATION:
1. INFORMATION ON AVAILABILITY OF VARIOUS
ALTERNATE PRODUCTS / BRANDS AND SERVICES
2. EVALUATION INFORMATION.
TECHNICAL, Fs / Bs
3. OPERATIVE INFORMATION

TYPES AND SOURCES OF INFORMATION

SOURCES OF INFORMATION
1. PERSONAL SOURCE.
MOST EFFECTIVE SOURCE
2. COMMERCIAL / COMPANY SOURCE.
REP, ADS, PACKAGE.
FREQUENT SOURCE
3. PUBLICE SOURCE / NEUTRAL SOURCE.
GOVT REPORTS, INDEPENDENT PUBLICATIONS,
BOOKS, INTERNET etc

AMOUNT OF EXTERNAL INFORMATION SEARCH ACTIVITY

DEPENDS UPON:
1. MARKET CONDITIONS

PRICE LEVEL
PRICE DIFFERENCE BETWEEN BRANDS
IMPORTANCE OF PRODUCT STYLE
SUBSTANTIAL DIFFERENCES BETWEEN ALTERNATE
PRODUCTS
NATURE OF PRODUCTS.
SIMPLE / COMPLEX

AMOUNT OF EXTERNAL INFORMATION SEARCH ACTIVITY

2. STORE LOYALTY
3. INDIVIDUAL FACTORS
PERSONAL EXPERIENCE WITH A BRAND
SOCIOECONOMIC CHARACTERISTIC OF THE BUYER:
e.g. EDUCATION, INCOME
INVOLVEMENT LEVEL

AMOUNT OF EXTERNAL INFORMATION SEARCH ACTIVITY

4. SITUATIONAL FACTORS:
URGENCY OF NEED / TIME AVAILABLE
STORE CONDITION.
CROWDED, NOTCROWDED
SPECIAL OCCASION TO BUY AT AN ATTRACTIVE PRICE

5. EXTENT OF PERCEIVED RISK IN A NP

TYPES OF RISK

FUNCTIONAL / PERFORMANCE RISK

FINANCIAL
PHYSICAL
SOCIAL
PSYCHOLOGICAL.
THE PRODUCT DOES NOT FIT INTO THE PERSONALITY / SELF IMAGE
OF A PERSON

DEALING WITH PERCEIVED RISK

HOW CONSUMERS REDUCE RISK
1. BUYING A BRAND ENDORSED BY AN OPINION LEADER / EA /
CELEBRITY
2. BUYING A PERVIOUSLY PURCHASED BRAND
3. BUYING A REPUTED BRAND
4. BUYING A BRAND APPROVED BY A WELL KNOWN
INSTITUTION
5. A BRAND OFFERING MONEY-BACK GUARANTEE
6. A BRAND APPROVED BY GOVERNMENT
7. HIGH PRICE BRAND

EVALUATION PROCESS OF BRANDS

IN A PRODUCT CLASS
DECIDE EVALUATION CRITERIA IN TERMS OF Fs AND Bs
WANTED BY THE CUSTOMERS.
RATIONAL / EMOTIONAL
a) MANY CRITERIA FOR HIGH INVOLVEMENT PRODUCTS (CSPs).
LESS CRITERIA FOR STAPLE OR GROCERY PRODUCTS
b) CRITERIA MAY BE OF DIFFERENT IMPORTANCE.
MEANING FUL, BELIEVABLE, AFFORDABLE, DIFFERENT,
SUSTAINABLE

EVALUATION PROCESS OF BRANDS

IN A PRODUCT CLASS
c) USUALLY THERE ARE 1 - 2 DOMINANT OR CRITICAL CRITERIA
d) EVALUATION CRITERIA MAY DIFFER FROM CONSUMER TO
CONSUMER
e) EVALUATION CRITERIA MAY CHANGE OVER TIME

TOTAL SET OF BRANDS

RANGE OF BRANDS IN A PRODUCT-CLASS IS CALLED TOTAL
SET OF BRANDS.
CONSUMERS ARE NOT AWARE OF ALL THE BRANDS

CLASSIFICATION OF TOTAL SET OF BRANDS

IN A PRODUCT-CLASS

AWARENESS SET
EVOKED SUB SET*
INSERT SUB SET
INEPET SUB SET

* BRAND IS CHOSEN FROM THIS SUB SET

UNAWARENESS SET

CLASSIFICATION OF TOTAL SET OF BRANDS

IN A PRODUCT-CLASS
1.

2.

3.

EVOKED SUBSET:
BRANDS EVALUATED POSITIVELY FOR PURCHASE AND
CNSUMPTION.
1/3rd OF AWARENESS SET
INSERT SUBSET :
BRANDS EVALUATED NEITHER POSITIVELY NOR NEGATIVELY. NO
DIFFERENTIAL ADVANTAGE OVER BRANDS IN EVOKED SUBSET
THIS MAYBE DUE TO INSUFFICIENT INFORMATION ON THE INSERT
BRANDS.
1/3 rd
OF AWARENESS SET.
INEPT SUBSET:
BRANDS REJECTED BY THE CONSUMER BECAUSE OF:
a. PERSONAL UNPLEASANT EXPERIENCE
b. -VE FEED BACK FROM OTHERS.
SLIGHTLY LESS THAN 1/3rd AWARENESS SET

PURCHASE PROCESS

TYPES OF RETAILING
1.
2.

STORE RETAILING
85%
NON-STORE RETAILING
15%

CHOOSING THE STORE

NOT ALL STORES ARE ALIKE. SEVERAL FACTORS INFLUENCE
CHOICE OF A STORE BY A CONSUMER:
7 GROUPS OF FACTORS:
1. STORE LOCATION, SIZE AND ITS SURROUNDINGS
a. CLOSE LOCATION FOR SURROUNDING POPULATION
b. DRIVING TIME > THAN 20 MINUTES APPERRS TO BE A BARRIER
FOR SHOPPERS
c. STORE SIZE AND TYPE
SPECIALITY ,DEPARTMENTAL STORE, SUPER MARKET, DISCOUNT
STORE, FACTORY OUTLET etc
d. STORES SURROUNDING. ATTRACTIVE, UNATTRACTIVE

CHOOSING THE STORE

2. STORE DESIGN, FACILITIES AND PHYSICAL ENVIRONMENT
EXTERNAL APPEARANCE
INTERIOR APPEARANCE AND LAYOUT

WIDTH OF AISLES
RACKS AND TABLES
ELEVATORS
LIGHTING
AIR CONDITIONING
WASHROOMS
NOISE LEVEL
MUSIC
CHILDRENS FACILITIES
RESTAURANT

CHOOSING THE STORE

3. MERCHANDISE-MIX AND PRICES

NUMBER OF PRODUCT LINES. BREADTH. WIDE OR NARROW

VARIETY / DEPTH WITHIN EACH PRODUCT LINE
QUALITY
PRICES. MSPS OR MPPS
VISIBLE AND WELL DIRECTED LOCATION OF PRODUCT LINES

CHOOSING THE STORE

4. ADVERTISING AND CONSUMER SALES PROMOTION
a. INFORMATIVE ADVERTISING.
Eg. NEW STORE OPENING, FEATURES AND BENEFITS OF THE
STORE
b. PERSUASIVE ADVERTISING.
TO PATRONIZE THE STORE. TO INCREASE CUSTOMER TRAFFIC,
PURCHASES
c. REMINDER ADVERTISING.
APPRECIATION OF CUSTOMERS BY THE STORE FOR
PATRONIGING
d. SALES PROMOTION TOOLS.
COUPONS, PRICE REDUCTION , DISCOUNT, GIFTS

CHOOSING THE STORE

5. STORE PERSONNEL
LIKEABLE.
GOOD OUTLOOK, GOOD COMMUNICATION, HELPFUL,
FRIENDLY, COURTEOUS, CUSTOMER CARING,
KNOWLEDGABLE.
TRUSTWORTHY

CHOOSING THE STORE

6. CUSTOMER SERVICES-MIX OFFERED.
THREE TYPES OF SERVICES:
a. SERVICES WHICH INCREASE PRODUCT SATISFACTION.
eg. PRODUCT INFORMATION SERVICES (EVALUATION AND
OPERATIVE INFORMATION)
GIFT WRAPPING, MERCHANDISE RETURN SERVICE,
MOP, TOP
INSTALLATION SERVICES

CHOOSING THE STORE

b. SERVICES WHICH INCREASE CONVENIENCE FOR THE
CUSTOMER
e.g. HOME DELIVERY, TELEPHONE ORDERING, PARKING,
CONVENIENT AND LONGER SHOPPING HOURS, PRODUCT
DISPLAYS
c. SERVICES WHICH PROVIDE SPECIAL BENEFITS
e.g. GIFT WRAPPING, RETURN POLICY, TRADE-IN FACILITY,
COMPLAINT OFFICE, ENGRAVING FACILITY
d. CLIENTELE
ALIKE PERSONS ARE THE CUSTOMERS OF THE STORE.
FIT BETWEEN CONSUMERS SELF-IMAGE AND THE STORE
IMAGE.

BRAND LOYALTY

WHAT IS IT?
THE EXTENT TO WHICH A CONSUMER REPEATS PURCHASING OF A
CERTAIN BRAND, DUE TO RATIONAL AND EMOTIONAL LIKING OF THE
BRAND OR A STORE.
THERE ARE THREE LEVELS OF BRAND LOLYATY.
HIGH, MEDIUM AND LOW BRAND LOYALTY.
DIFFICULT ACHIEVE BRAND LOYALTY DUE TO HYPER COMPETITION

BRAND LOYALTY
BRAND / STORE LOYALTY DEPENDS UPON :
PRODUCT PERFORMANCE PERCEIVED RISK
ECONOMIC RISK IN CHANGING,
PHYSICAL RISK
PSYCHOSOCIAL RISK

BRAND LOYALTY
THREE LEVELS OF BRAND LOYALTY
1. HIGH BRANDS LOYALTY.
GLUED TO 1-2 BRAND OR STORES, ON RATIONAL AND
EMOTIONAL BASIS
2. MEDIUM BRAND / STORE LOYALTY.
SWITCHING BETWEEN 3-5 BRANDS OR STORES ON RATIONAL
BASIS
3. LOW BRAND / STORE LOYALTY
SWITCHING BETWEEN MANY BRANDS / STORES.
NO RATIONAL OR EMOTION LIKING FOR A PARTICULAR
BRAND OR STORE

BRAND LOYALTY
BENEFITS OF BRAND LOYALTY
a.
b.
c.
d.
e.
f.
g.

REPURCHASE
WOM PROMOTION
EASY TO INTRODUCE A NEW PRODUCT
BRAND EXTENSION
LESS ATTENTION TO COMPETITORS BRANDS / STORE
EASY TO INCRESE PRICE
RELATIONSHIP BUILDING

TYPES OF BUYING
PLANNED BUYING.
BUYING PERDETRMIND PRODUCTS. 2/3RD

UNPLANNED BUYING. IMPULSE BUYING

1/3RD OF TOTAL PURCHASING.
NEEDS DISPLAYS, ATTRACTIVE PACKAGE etc.

NONSTORE PURCHASING

15% OF TOTAL RETAIL PURCHASES

ON THE FOOTPATH
VENDING MACHINES
PUSHCART
AT THE CUSTOMER HOME
TELEMARKETING
DIRECT MARKETING
ETC

POSTPURCHASE BEHAVIOUR

INTRODUCTION
CONSUMER DECISIONS DO NOT END WITH PRODUCT
PURCHASE BUT CONTINUE AS THE CONSUMER USES THE
PRODUCT AND EVALUATES HIS EXPERIENCE AND PRODUCT
PERFORMANCE

FOUR POST PURCHASE DECISIONS

1. DECISION ON PRODUCT SET-UP / INSTALLATION AND USE
OF A CONSUMER DURABLE PRODUCT.
e.g. TV, A/Cs, MICROWAVE OVEN
a. DEVELOP PRODUCT INSTRUCTIONS BOOKLET
b. PROVIDE PRODUCT WARRANTY.
PROMISE. PRODUCT / SERVICE IS FREE FROM DEFECTS AND
WORKMANSHIP.
PROBLEM WILL BE CORRECTED IF FAILURE OCCURS DURING
THE WARRANTY PERIOD.

BENEFITS OF WARRANTY
ASSURANCE OF PRODUCT PERFORMANCE / QUALITY
REDUCTION OF FINANCIAL RISK
REDUCTION OF DISSONANCE (DOUBT).

FOUR POST PURCHASE DECISIONS

2. DECISION ON PURCHASING RELATED PRODUCTS /
OPTIONAL PRODUCTS / SERVICES.
BUYER OF THE MAIN PRODUCT BECOMES A CANDIDATE
FOR BUYING MANY RALATED PRODUCTS / ACCESSORY /
OPTIONAL PRODUCTS OR SERVICES
e.g. A CAMERA BUYER BUYS OPTIONAL LENSES, FILMS,
FILTERS etc.
MANY A TIME BIG PROFIT COMES FROM OPTIONAL /
ACCESSORY PRODUCTS

FOUR POST PURCHASE DECISIONS

3. POST PURCHASE EVALUATION.
CONSUMER SATISFACTION / DISSATISFACTION, POST
PURCHASE DISSONANCE (DOUBT).
WHAT IS CS? APP VS EPP
LEVELS OF CS.
JUST SATISFIED
HIGHLY SATISFIED / DELIGHTED,
DIS-SATISFIED CUSTOMERS

METHODS OF FINDING CS

COMPLAINT AND SUGGESTION SYSTEM

CUSTOMER SURVEY METHOD
GHOST / MYSTRY SHOPPING METHOD
CUSTOMER LOSS RATE AND INTERVIEW WITH EX- CUSTOMER

FOUR POST PURCHASE DECISIONS

4. DISPOSAL OF THE PRODUCT

THROW AWAY
GIVE IT TO SOMEBODY
TRADE-IN
SELL
KEEP IT FOR NEW USE
RENT / LOAN IT